MIRA INFORM REPORT
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Report No. : |
324786 |
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Report Date : |
02.06.2015 |
IDENTIFICATION DETAILS
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Name : |
TIANCHANG FUDA ELECTRON CO., LTD. |
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Registered Office : |
No. 127 Xinhua Street,
Qinlan Town, Tianchang City, Anhui
Province, 239341 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
06.01.2004 |
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Com. Reg. No.: |
341181000011752 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling of Electronic Products. |
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No. of Employees : |
100 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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.
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Source
: CIA |
Company
Name and address
TIANCHANG FUDA ELECTRON CO., LTD.
NO. 127 XINHUA
STREET, QINLAN TOWN, TIANCHANG CITY,
ANHUI province,
239341 PR CHINA
TEL: 86 (0)
550-7623118/7623122 FAX: 86 (0)
550-7623105
EXECUTIVE
SUMMARY
INCORPORATION DATE : JAN. 6, 2004
REGISTRATION NO. : 341181000011752
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 100
REGISTERED CAPITAL : cny 10,000,000
BUSINESS LINE : PROCESSING,
MANUFACTURING AND TRADING
TURNOVER : CNY 12,324,000 (AS OF DEC. 31, 2009)
EQUITIES : CNY 1,205,000 (AS OF DEC. 31, 2009)
PAYMENT : average
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.20 =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 is also known as Tianchang Fuda
Electronics Co., Ltd. and Fidelity Electronics Co., Ltd.
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 Jan. 6, 2004.
Company Status: Limited liabilities
company 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 processing, manufacturing and selling TV display board,
line output, compiled turn coil, remote control and plastic parts; processing,
manufacturing and selling wire and cable, hardware manufacturing, and
electronic components; import and export of self-made products and technology
(excluding the goods and technology prohibited or limited by the country).
SC is mainly
engaged in processing, manufacturing and selling electronic products.
Mr. Lin Wenlu has been the legal representative and
chairman of SC since 2006.
SC is known
to have approx. 100 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Tianchang. SC’s
management declined to release the detailed information of the premise.
SC has an office at No. 99 Jingsan Road North, Economic Development
Zone, Tianchang City.
SC is not known to host website of its own at present.
Email: tcfddz@163.com
SC has obtained the Certificates of ISO 9001: 2000.
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2006-7-24 |
Legal representative |
Dong Fuchang |
Lin Wenlu |
|
Unknown |
Registration No. |
3411812309177 |
341181000011752 |
*To what extent is
your company affected by the current Credit Crisis?
SC’s management declined to make any comments.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Lin Wenshu ID#: 34232119680125xxxx 70
Chen Dasong 10
Lin Wenlu 20
l
Legal Representative and Chairman:
Mr. Lin Wenlu, ID#:
342321621111461, born in 1962 with junior middle school
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working in SC as legal
representative and chairman
l General Manager:
Mr. Lin Wenshu, ID#:
34232119680125463X, born in 1968. He is currently responsible for the daily management
of SC.
Working Experience(s):
At present Working in SC as general manager
Also working in Tianchang Fuxin Electron Co.,
Ltd. as legal representative.
Supervisor:
---------------
Chen Dasong ID#:
342321560508461
SC is mainly
engaged in processing, manufacturing and selling electronic products.
SC’s products mainly include: enameled wire, remote control, degaussing coil, etc.
SC sources its materials 95% from domestic
market, and 5% from overseas market. SC sells 70% of its products in domestic
market, and 30% to overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of 15-30 days.
The payment terms of SC include Check, L/C, T/T, and Credit of 15-30 days.
Tianchang Fuxin Electron Co., Ltd.
----------------------------
Incorporation Date: 2006-10-23
Registration No.: 341181000006224
Registered Legal Form: Limited Liabilities
Company
legal representative： Lin Wenshu
Web: http://www.fddz.cn/
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.
State
Bank of India, Shanghai Branch
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2008 |
as of Dec. 31, 2009 |
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Cash & bank |
703 |
4,513 |
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Inventory |
3,435 |
2,285 |
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Accounts receivable |
3,237 |
2,014 |
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Advances to supplies |
0 |
0 |
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Notes receivables |
54 |
243 |
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Other receivables |
10 |
10 |
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Other current assets |
14 |
17 |
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------------------ |
------------------ |
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Current assets |
7,453 |
9,082 |
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Fixed assets net value |
3,446 |
3,679 |
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Projects under construction |
0 |
0 |
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Long term investment |
0 |
0 |
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Intangible assets |
0 |
0 |
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Other assets |
67 |
66 |
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------------------ |
------------------ |
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Total assets |
10,966 |
12,827 |
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============= |
============= |
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Short loans |
1,000 |
500 |
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Accounts payable |
5,599 |
6,269 |
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Advances from clients |
0 |
0 |
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Notes payable |
0 |
700 |
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Other accounts payable |
3,227 |
4,145 |
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Taxes unpaid |
0 |
8 |
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Other current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current liabilities |
9,826 |
11,622 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
9,826 |
11,622 |
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Shareholders equities |
1,140 |
1,205 |
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------------------ |
------------------ |
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Total liabilities & equities |
10,966 |
12,827 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2009 |
|
Turnover |
12,324 |
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Cost of goods sold |
11,346 |
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Taxes and additional of main operation |
31 |
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Sales expense |
201 |
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Management expense |
516 |
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Finance expense |
88 |
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Non-operating income |
0 |
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Non-operating
expense |
43 |
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Total profits before tax |
99 |
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Less: profit tax |
33 |
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Net profit |
66 |
Note: SC’s accountant refused to disclose latest
financial.
Important Ratios
=============
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as of Dec. 31, 2008 |
as of Dec. 31, 2009 |
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*Current ratio |
0.76 |
0.78 |
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*Quick ratio |
0.41 |
0.58 |
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*Liabilities to assets |
0.90 |
0.91 |
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*Net profit margin (%) |
/ |
0.54 |
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*Return on total assets (%) |
/ |
0.51 |
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*Inventory /Turnover ×365 |
/ |
68 days |
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*Accounts receivable/Turnover ×365 |
/ |
60 days |
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*Turnover/Total assets |
/ |
0.96 |
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* Cost of goods sold/Turnover |
/ |
0.92 |
PROFITABILITY: AVERAGE
The turnover of
SC appears average in its line in 2009.
SC’s net profit
margin is average in 2009.
l SC’s return on
total assets is average in 2009.
l
SC’s cost of goods sold is fairly high in 2009,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in both 2 years.
l
SC’s quick ratio is maintained in a fair level in
both 2 years.
l
The accounts receivable of SC appears average in
both 2 years.
l
The inventory of SC appears average in both 2
years.
l
The short term loan of SC appears average in both 2
years.
l
SC’s turnover is in a fair level in 2009, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is HIGH in both 2 years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable
SC is considered small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.61 |
|
|
1 |
Rs.97.27 |
|
Euro |
1 |
Rs.69.63 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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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 |
|
|
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.