MIRA INFORM REPORT
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Report No. : |
349826 |
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Report Date : |
19.11.2015 |
IDENTIFICATION DETAILS
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Name : |
Changzhou Wisdom
Chemical CO., LTD. |
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Registered Office : |
Room 501, Fudu Business Apartment, No. 398-1 Tongjiang Middle
Avenue,Xinbei District, Changzhou, Jiangsu Province, 213000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
02.09.2011 |
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Com. Reg. No.: |
320407000173678 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling chemical products. |
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No. of Employee : |
11 |
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.
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
Changzhou Wisdom Chemical CO., LTD.
Room 501, Fudu Business Apartment, no. 398-1
Tongjiang middle Avenue,xinbei District, Changzhou, Jiangsu province, 213000 PR
CHINA
TEL: 86 (0) 519-85138993 FAX: 86 (0) 519-85138993
EXECUTIVE
SUMMARY
INCORPORATION DATE : sep. 2, 2011
REGISTRATION NO. : 320407000173678
REGISTERED LEGAL FORM : Limited liabilities
company
chief executive : fu yongrong (CHAIRMAN)
STAFF STRENGTH : 11
REGISTERED CAPITAL : CNY
500,000
BUSINESS LINE :
TRADING
TURNOVER : CNY 5,760,000
(unaudited, AS OF DEC. 31, 2014)
EQUITIES : CNY 530,000
(unaudited, AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : Fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.34 = 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 co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Sep. 2, 2011.
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 selling chemical products and
raw materials (except for dangerous goods), classⅠmedical device and accessories; information consulting services; importing and
exporting commodities and technology, excluding the items prohibited or limited
by the country.
SC is mainly engaged in selling chemical products.
Fu Yongrong is legal representative, chairman and general manager of SC
at present.
SC is known to have approx. 11 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Changzhou. SC’s employee refused to release the detailed information
of the premise.
SC is not known to host website of its own at present.
No significant changes were found during our checks with the local AIC.
Organization Code: 582252821
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Fu Yongrong 60
Hong Yingnan 40
Legal
representative, chairman and general manager:
Fu Yongrong is currently responsible for the overall management of SC.
Working
Experience(s):
At present
Working in SC as legal representative, chairman and general manager.
Supervisor:
Hong Yingnan
SC is mainly engaged in selling chemical products.
SC’s products mainly include: chemical products.
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 refused to release its main suppliers and clients.
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 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 declined to release its banking details.
Balance
Sheet
Unit: CNY’000
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|
As of Dec. 31, 2014 |
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Cash & bank |
600 |
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Inventory |
70 |
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Accounts receivable |
2,160 |
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Bills receivable |
0 |
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Other Accounts receivable |
50 |
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Advances to suppliers |
0 |
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To be apportioned expense |
0 |
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Other current assets |
0 |
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------------------ |
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Current assets |
2,880 |
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Fixed assets net value |
270 |
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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 |
3,150 |
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============= |
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Short loans |
0 |
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Accounts payable |
1,660 |
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Advance from customers |
0 |
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Other Accounts payable |
970 |
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Notes payable |
0 |
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Taxes payable |
-20 |
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Surcharge payable |
10 |
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Other current liabilities |
0 |
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------------------ |
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2,620 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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------------------ |
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Total liabilities |
2,620 |
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Equities |
530 |
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------------------ |
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3,150 |
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============= |
Income
Statement
Unit: CNY’000
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As of Dec. 31, 2014 |
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Turnover |
5,760 |
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Cost of goods sold |
4,720 |
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Taxes and additional of main operation |
4 |
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Profit from other business |
180 |
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Sales expense |
410 |
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Management expense |
660 |
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Finance expense |
22 |
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Non-operating income |
10 |
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Non-operating expense |
0 |
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Profit before tax |
130 |
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Less: profit tax |
0 |
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Profits |
130 |
Note: The above Financial Report hasn’t been audited.
Important
Ratios
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|
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As of Dec. 31, 2014 |
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*Current ratio |
1.10 |
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*Quick ratio |
1.07 |
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*Liabilities to assets |
0.83 |
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*Net profit margin (%) |
2.26 |
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*Return on total assets (%) |
4.13 |
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*Inventory /Turnover ×365 |
5 days |
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*Accounts receivable/Turnover ×365 |
137 days |
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*Turnover/Total assets |
1.83 |
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* Cost of goods sold/Turnover |
0.82 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is fairly large.
SC has no short-term loan in 2014.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly 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. The large amount of accounts receivable could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.11 |
|
|
1 |
Rs.100.51 |
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Euro |
1 |
Rs.70.39 |
INFORMATION DETAILS
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Analysis Done by
: |
KIN |
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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 |
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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 |
-- |
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.