MIRA
INFORM REPORT
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Report No. : |
353109 |
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Report Date : |
10.12.2015 |
IDENTIFICATION DETAILS
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Name : |
WUXI RUBY ALLOYS CO.,
LTD. |
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Registered Office : |
7-511, 7-512, Ruigang Commercial Plaza, Tongxiang Road, Shuofang Town, New District, Wuxi City, Jiangsu Province, 214142 Pr |
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Country : |
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Financials (as on) : |
30.09.2015 |
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Date of Incorporation : |
22.10.2014 |
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Com. Reg. No.: |
320213000225749 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is
engaged in selling alloys, metal materials and products, building materials
and other related products |
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No. of Employee : |
32 |
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
|
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.
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 for the first time
in modern history. Still, China's per capita income is below the world average.
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
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 also 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.
|
Source
: CIA |
Company name and
address
WUXI RUBY ALLOYS CO., LTD.
7-511, 7-512,
ruigang commercial plaza, tongxiang road,
shuofang town, new
district, WUXI city,
jiangsu province,
214142 PR CHINA
TEL: 86 (0)
510-81893981/81893985 FAX: 86 (0)
510-81893982
EXECUTIVE SUMMARY
INCORPORATION DATE :
OCTOBER 22, 2014
REGISTRATION NO. : 320213000225749
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 32
REGISTERED CAPITAL :
CNY 5,000,000
BUSINESS LINE :
TRADING
TURNOVER : CNY 6,170,000 (JAN. 1 TO SEP. 30, 2015)
EQUITIES : CNY 5,030,000 (AS OF SEP. 30, 2015)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.4163 = 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
Note: SC’s operating address is the
heading one, while the belongs to SC’s related company Wuxi Goldcoral Steel
Co., Ltd.
SC was registered as a limited liabilities co.
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on October 22, 2014.
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 researching,
developing and selling alloys; selling metal products, construction materials,
decoration materials, general machinery and accessories, furnace burden
(excluding coal), textiles; Foreign investment using its own funds; processing
alloys, metal materials and products (branch only); self-support and agent importing and exporting goods and technology
(except goods and technology prohibited by the State) (with permit if needed)
Ms. Zhu Juxian has been legal representative of SC since
October 22, 2014.
SC is known to
have approx. 32 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the development zone of Wuxi. The detailed information of the premise is unspecified.
SC is not known to host its own website.
SC was taken into operation in November 2014, no significant changes
were found during our checks with the local Administration for Industry and
Commerce.
Organization code: 321318781
Credibility Code: 91320213321318781X
There is no litigation record of SC for the past two years.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Yang Jun 78
Liu Shuai 10
Ding Wenjie 10
Zhu Juxian 2
l
Legal Representative and executive director:
Ms. Zhu Juxian is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as
legal representative and executive director.
Also working in Wuxi Goldcoral Steel Co., Ltd. as
legal representative and executive director.
l
General manager:
Mr. Liu Shuai is currently responsible for the daily
management of SC.
Working Experience(s):
At present Working in SC as
general manager.
l
Supervisor:
Ding Wenjie
SC is mainly
engaged in selling alloys, metal materials and products, building materials and
other related products.
SC’s products mainly include: alloys, metal materials, building materials,
decoration materials, general machinery and accessories
SC sources its materials 100% from domestic
market. SC sells its products in domestic market and overseas market.
The buying terms of SC include Check, T/T 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 refused to release its major clients and suppliers.
Wuxi
Goldcoral Steel Co., Ltd.
=============================
Registration number: 320213000201105
Legal representative: Zhu Juxian诸菊仙
Incorporation date:
Website: http://www.goldcoral.cn/
Branch:
Wuxi Ruby Alloys Co., Ltd. Dongbeitang Branch
======================================
Registration number: 320205000224580
Principal: Ding Wenjie
Incorporation date:
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.
N/A
Balance Sheet
|
Unit:
CNY’000 |
As of Sep. 30, 2015 |
|
Cash
& bank |
140 |
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Inventory |
0 |
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Accounts
receivable |
0 |
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Other
accounts receivable |
5,010 |
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|
------------------ |
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Current assets |
5,150 |
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Fixed
assets net value |
560 |
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|
------------------ |
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Total
assets |
5,710 |
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|
=========== |
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Short
loans |
0 |
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Accounts
payable |
90 |
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Accounts
advanced from customers |
620 |
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Taxes
payable |
-30 |
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|
------------------ |
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Current
liabilities |
680 |
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Long
term liabilities |
0 |
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|
------------------ |
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Total
liabilities |
680 |
|
Equities |
5,030 |
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|
------------------ |
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Total
liabilities & equities |
5,710 |
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|
=========== |
Income Statement
|
Unit:
CNY’000 |
Jan. 1 to Sep.
30, 2015 |
|
Turnover |
6,170 |
|
Cost of goods
sold |
|
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Taxes and additional of main operation |
10 |
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Sales expense |
180 |
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Management expense |
650 |
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Profit
before tax |
100 |
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Less:
profit tax |
0 |
|
Profits |
100 |
Important Ratios
|
|
As of Sep. 30,
2015 |
|
*Current ratio |
7.57 |
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*Quick ratio |
7.57 |
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*Liabilities to assets |
0.12 |
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*Net profit margin (%) |
1.62 |
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*Return on total assets (%) |
1.75 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
/ |
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*Turnover/Total assets |
1.08 |
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* Cost of goods sold/Turnover |
0.85 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears
average.
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
in an average level.
LIQUIDITY: AVERAGE
l
The current ratio of SC is
maintained in a normal level.
l
SC’s quick ratio is
maintained in a normal level.
l
SC has no inventory in the
past three quarters of 2015.
l
SC has no accounts
receivable in the past three quarters of 2015.
l
SC has no short term loan in
the past three quarters of 2015.
l
SC’s turnover is in an
average level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
l
The debt ratio of SC is low.
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 a short operating history
and fairly stable financial conditions. After
our research and based on the information obtained.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.75 |
|
|
1 |
Rs.100.29 |
|
Euro |
1 |
Rs.72.89 |
|
CNY |
1 |
Rs.10.37 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
ANK |
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
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.