MIRA INFORM REPORT
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Report No. : |
337500 |
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Report Date : |
24.08.2015 |
IDENTIFICATION DETAILS
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Name : |
ZHANGJIAGANG
CORTEX TEXTILE LIMITED |
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Registered Office : |
No. 30, Zhongxing Road, Economic Development Zone, Yangshe Town,
Zhangjiagang City, Jiangsu Province, 215600 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
11.10.2010 |
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Com. Reg. No.: |
320582000218220 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing, Processing
and Selling of Garments. |
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No. of Employees : |
200 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, growth of the private sector, development of stock markets and a modern banking system, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. In 2014 the People’s Bank of China (PBOC) doubled the daily trading band within which the RMB is permitted to fluctuate. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2014 stood as the largest economy in the world, surpassing the US that year... Still, per capita income is below the world average.
The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2014 more than 274 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development.
Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
Name and address
ZHANGJIAGANG
CORTEX TEXTILE LIMITED
NO. 30, ZHONGXING ROAD, ECONOMIC DEVELOPMENT
ZONE, YANGSHE TOWN, ZHANGJIAGANG CITY, JIANGSU PROVINCE, 215600 PR CHINA
TEL: 86 (0) 512-82568808 FAX:
86 (0) 512-58682456
EXECUTIVE
SUMMARY
INCORPORATION DATE :
OCT. 11, 2010
REGISTRATION NO. : 320582000218220
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE : MS. MAO HAILING
(LEGAL REPRESENTATIVE)
STAFF STRENGTH : 200
REGISTERED CAPITAL :
CNY 1,000,000
BUSINESS LINE :
MANUFACTURING, PROCESSING AND TRADING
TURNOVER : CNY 41,390,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY
910,000 (AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY
6.3902 = USD 1
Adopted abbreviations:
ANS - amount not
stated
NS - not stated
SC - subject
company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a limited liabilities
company at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on Oct. 11, 2010.
Company Status: Limited
liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes licensing project: None General
management project: manufacturing, processing
and selling garments; buying and selling shoes and hats, needles textiles,
textile materials, daily provisions, clothing textiles, handicrafts, bags;
self-management and agent of import and export business of all kinds of goods
and technology (but excluding the goods and technology limited or prohibited by
state).
SC is mainly
engaged in manufacturing, processing and selling garments.
Ms. Mao Hailing is
legal representative, executive director and general manager of SC at present.
SC is known to have approx. 200 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the economic development zone of Zhangjiagang.
Detailed premise information is not available at present.
www.cortextextiles.com
The website belongs to Cortex Textiles Limited. The design is professional and
the content is well organized. At present it is in English version.
E-mail: dheeraj@cortexchina.com
No significant changes were found during our
checks with the local Administration for Industry and Commerce.
Organization Code: 56293952X
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Mao Hailing 97
Mao Haizhou 3
l Legal Representative,
Executive director and General manager:
Ms. Mao Hailing is currently responsible for
the overall and daily management of SC.
Working Experience(s):
At present Working in SC as legal
representative, executive director and general manager.
l Supervisor:
Mao Haizhou
SC is mainly engaged in manufacturing, processing and selling garments.
SC’s products mainly include: woven shirts, performance knitwear, etc.
SC sources its materials 95% from domestic
market, and 5% from overseas market. SC sells 20% of its products in domestic
market, and 80% to overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note:
SC’s management declined to release its major clients and suppliers.
According to the website:
Cortex Textile Limited (Hong Kong)
=============================
Incorporation Date : 2006-9-26
Registration No. : 1076542
Registered Legal Form : Private company limited by shares
Active Status :
Live
Overall payment appraisal:
( ) Excellent (
) Good (X) Average (
) Fair ( ) Poor
( ) Not yet determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment
experience (through current enquiry with SC's suppliers), our delinquent
payment and our debt collection record concerning SC.
Trade payment experience: SC did not
provide any name of trade/service suppliers and we have no other sources to
conduct the enquiry at present.
Delinquent
payment record: None in our database.
Debt collection record: No overdue amount
owed by SC was placed to us for collection within the last 6 years.
SC’s bank details are not available at present.
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2014 |
|
Cash & bank |
4,360 |
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Inventory |
920 |
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Accounts
receivable |
2,230 |
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Advances to
suppliers |
840 |
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Other accounts
receivable |
450 |
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Notes receivable |
0 |
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|
----------------- |
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Current assets |
8,800 |
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Fixed assets net
value |
670 |
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Project under
construction |
0 |
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Long term
investment |
0 |
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Intangible and
other assets |
0 |
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------------------ |
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Total assets |
9,470 |
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============= |
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Short loans |
0 |
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Accounts payable
|
3,830 |
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Advances from
clients |
190 |
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Taxes payable |
-580 |
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Other accounts
payable |
2,380 |
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Payroll payable |
480 |
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Notes payable |
2,260 |
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------------------ |
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Current
liabilities |
8,560 |
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Long-term
liabilities |
0 |
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|
------------------ |
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Total
liabilities |
8,560 |
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Equities |
910 |
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|
------------------ |
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Total
liabilities & equities |
9,470 |
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|
============= |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2014 |
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Turnover |
41,390 |
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Cost of goods sold |
36,360 |
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Taxes and
additional of main operations |
160 |
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Sales expense |
2,060 |
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Management expense |
2,350 |
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Finance expense |
-10 |
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Non-operating
income |
0 |
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Non-operating expense |
0 |
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Profit before
tax |
470 |
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Profits |
460 |
Important Ratios
=============
|
|
as of Dec. 31, 2014 |
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*Current ratio |
1.03 |
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*Quick ratio |
0.92 |
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*Liabilities
to assets |
0.90 |
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*Net profit margin
(%) |
1.11 |
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*Return on
total assets (%) |
4.86 |
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*Inventory
/Turnover ×365 |
9 days |
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*Accounts
receivable/Turnover ×365 |
20 days |
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*Turnover/Total
assets |
4.37 |
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* Cost of
goods sold/Turnover |
0.88 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short loans in 2014.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.83 |
|
|
1 |
Rs.103.39 |
|
Euro |
1 |
Rs.74.27 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major sections
of this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.