MIRA INFORM REPORT
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Report No. : |
309500 |
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Report Date : |
02.03.2015 |
IDENTIFICATION DETAILS
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Name : |
GUANGZHOU GENTLE
FOREIGN TRADE CO., LTD. |
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Registered Office : |
Room 501, No. 23, Songbai East Street, Guangyuan Middle Road, Baiyun District, Guangzhou, Guangdong Province 510405 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
18.10.2004 |
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Com. Reg. No.: |
440111000267472 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is mainly engaged in Selling of Knitted
Fabrics, Chemical Fabric, Printed Fabric |
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No. of Employees : |
15 |
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 and expanded
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 2013 stood as
the second-largest economy in the world after the US, having surpassed Japan in
2001. The dollar values of China's agricultural and industrial output each
exceed those of the US; China is second to the US in the value of services it
produces. 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 2011 more than 250 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.
|
Source
: CIA |
Company
Name and address
GUANGZHOU GENTLE FOREIGN TRADE CO., LTD.
ROOM 501, NO. 23, SONGBAI
EAST STREET, GUANGYUAN MIDDLE ROAD,
BAIYUN DISTRICT,
GUANGZHOU, GUANGDONG PROVINCE 510405 PR CHINA
TEL: 86 (0)
20-86185408 FAX: 86 (0) 20-86185792
EXECUTIVE
SUMMARY
INCORPORATION DATE : OCT 18, 2004
REGISTRATION NO. : 440111000267472
REGISTERED LEGAL
FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 15
REGISTERED CAPITAL :
CNY 500,000
BUSINESS LINE : TRADING
TURNOVER : CNY 384,969,000 (AS OF
DEC. 31, 2013)
EQUITIES : CNY 1,142,000 (AS
OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION
: FAIRly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.2652= 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. 18, 2004.
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 wholesale commercials; importing
and exporting goods and technologies; trade agent.
SC is mainly engaged in selling knitted fabrics.
Mr. Zeng Lingbo has been legal representative and chairman of SC since
2004.
SC is known to have approx. 15 employees at present.
SC is currently operating
at the above stated address, and this address houses its operating office in
the commercial zone of Guangzhou. Our checks reveal that SC rents the total
premise about 100 square meters.
SC is not known to host website of its own
at present.
Changes of its registered information are as
follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Reg. No. |
4401112007975 |
Present one |
Organization code: 767689966
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zeng Lingbo 10
Gao Yuni 90
l Legal
representative & chairman:
Mr. Zeng Lingbo, with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working in SC as
legal representative and chairman
SC is mainly engaged in selling knitted fabrics.
SC’s products mainly include: knitted
fabric, chemical fabric, printed fabric, etc.
SC sources its
materials 100% from domestic market. SC sells 100% of its products to 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.
SC is not known to have any
subsidiary at present.
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 refused to release any information of its suppliers and the trade
reference was not available.
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 refused to release its banking
information.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
13,741 |
7,189 |
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Accounts receivable |
0 |
0 |
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Inventory |
0 |
0 |
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Export drawback receivable |
10,230 |
3,847 |
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Other receivables |
0 |
0 |
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Other current assets |
0 |
0 |
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|
------------------ |
------------------ |
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Current assets |
23,971 |
11,036 |
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Fixed assets net value |
61 |
0 |
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Projects under construction |
0 |
0 |
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Long term investment |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
24,032 |
11,036 |
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|
============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
22,564 |
9,280 |
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Tax payable |
-27 |
-86 |
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Other payable |
292 |
324 |
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Unpaid profit |
376 |
376 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
23,205 |
9,894 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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23,205 |
9,894 |
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Shareholders equities |
827 |
1,142 |
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------------------ |
------------------ |
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Total liabilities & equities |
24,032 |
11,036 |
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============= |
Income Statement
Unit: CNY’000
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
*Current
ratio |
1.03 |
1.12 |
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*Quick
ratio |
1.03 |
1.12 |
|
*Liabilities
to assets |
0.97 |
0.90 |
|
*Net profit
margin (%) |
/ |
0.06 |
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*Return on
total assets (%) |
/ |
2.06 |
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*Inventory
/Turnover ×365 |
/ |
/ |
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*Accounts receivable/Turnover
×365 |
/ |
/ |
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*Turnover/Total
assets |
/ |
34.88 |
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*Cost of
goods sold/Turnover |
/ |
0.99 |
PROFITABILITY: AVERAGE
·
The
turnover of SC appears fairly good in its line in 2013.
·
SC’s
net profit margin is average in 2013.
·
SC’s
return on total assets is average in 2013.
·
SC’s
cost of goods sold is high in 2013, comparing with its turnover.
LIQUIDITY: AVERAGE
·
The
current ratio of SC is maintained in a normal level in both years.
·
SC’s
quick ratio is maintained in a normal level in both years.
·
SC
has no inventory in both years.
·
SC
has no accounts receivable in both years.
·
SC
has no short-term loan in both years.
·
SC’s
turnover is in a good level in 2013, comparing with the size of its total assets.
LEVERAGE: AVERAGE
·
The
debt ratio of SC is high.
·
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.61.79 |
|
|
1 |
Rs.95.42 |
|
Euro |
1 |
Rs.69.29 |
INFORMATION DETAILS
|
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.