MIRA INFORM REPORT
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Report No. : |
342711 |
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Report Date : |
01.10.2015 |
IDENTIFICATION DETAILS
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Name : |
Wuxi Pingsheng
Science and Technology Co., Ltd. |
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Registered Office : |
98-1, Nankai Road, Shuofang Industrial Park Phase Iii, New Area, Wuxi,
Jiangsu Province, 214142 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
09.05.1985 |
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Com. Reg. No.: |
320213000072549 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Research and development, manufacturing, and processing of wire
drawing machine, auxiliary machine and accessories, metal products, textile; machine
tool electrical assembly; self-management in importing and exporting business
of all kinds of goods and technology (except the goods and technology limited
or forbidden by the state) (With permit if needed) |
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No. of Employees : |
87 |
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.
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Source
: CIA |
Company
name & address
Wuxi Pingsheng Science and Technology Co., Ltd.
98-1, NANKAI ROAD, SHUOFANG INDUSTRIAL PARK PHASE III,
NEW AREA, WUXI, JIANGSU PROVINCE, 214142 PR CHINA
TEL: 86 (0) 510-85260538 FAX: 86 (0) 510-85260538
EXECUTIVE
SUMMARY
INCORPORATION DATE :
MAY 9, 1985
REGISTRATION NO. :
320213000072549
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MS. GU XUEYING (LEGAL
REPRESENTATIVE)
STAFF STRENGTH :
87
REGISTERED CAPITAL :
CNY 12,000,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 27,380,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 14,960,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.3885= 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).
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 research and development,
manufacturing, and processing of wire drawing machine, auxiliary machine and
accessories, metal products, textile; machine tool electrical assembly;
self-management in importing and exporting business of all kinds of goods and
technology (except the goods and technology limited or forbidden by the state)
(With permit if needed)
SC is mainly engaged in manufacturing and trading
of various drawing machines.
Ms. Gu Xueying is legal representative, executive director and general
manager of SC at present.
SC is known to have approx. 87 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial park of Wuxi. SC’s
accountant refused to release the detailed information of the premise.
www.psjx.com
The design is professional and the content is well organized. At present it is
in English and Chinese versions.
E-mail: sales@psjx.com
Organization Code:
136320353
According to SC’s website, SC was formerly known as
Wuxi New District Ping Sheng Machinery Plant
MAIN SHAREHOLDERS:
Name %
of Shareholding
Gu Xueying 50
Gu Kangjian 50
Legal
representative, Executive Director and General Manager:
Ms. Gu Xueying is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working
in SC as legal representative, executive director and general manager.
Supervisor:
Gu Kangjian
SC is mainly engaged in manufacturing and trading of various drawing machines.
SC’s products mainly include:
Straight Line wire drawing machine series
Wet/Water tank drawing machine series
Combined drawing machine
Inverted Vertical Drawing Machine
Pulley drawing Machine
Auxiliary Engine
Other products and auxiliary machines
SC sources its merchandise 100% from domestic market. SC sells 70% of
its products in domestic market, and 30% 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.
Note: SC’s
management declined to release its major clients and suppliers.
TRADEMARKS & PATENTS:
Registration No. 4723379
Registration Date
Trademark Design 
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’s management declined to release its bank information.
Balance
Sheet
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Unit: CNY’000 |
as of Dec. 31,
2014 |
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Cash & bank |
7,020 |
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Inventory |
2,040 |
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Accounts receivable |
11,800 |
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Advances to suppliers |
780 |
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Other Accounts receivable |
570 |
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Notes receivable |
620 |
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------------------ |
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Current assets |
22,830 |
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Fixed assets net value |
5,180 |
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Other assets |
2,320 |
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------------------ |
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Total assets |
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============= |
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Short loans |
0 |
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Accounts payable |
7,400 |
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Advances from clients |
7,490 |
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Taxes payable |
100 |
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Other Accounts payable |
50 |
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Accrued payroll |
330 |
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------------------ |
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Current liabilities |
15,370 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
15,370 |
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Equities |
14,960 |
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------------------ |
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Total liabilities & equities |
30,330 |
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Income
Statement
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Unit: CNY’000 |
as of Dec. 31,
2014 |
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Turnover |
27,380 |
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Cost of goods sold |
24,450 |
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Tax and additional of main
operation |
110 |
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Sales expense |
290 |
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Management expense |
2,210 |
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Finance expense |
0 |
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Subsidy income |
70 |
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Non-operating expense |
20 |
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Profit before tax |
370 |
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Less: profit tax |
50 |
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Profits |
320 |
Important
Ratios
=============
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As of Dec. 31,
2014 |
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*Current ratio |
1.49 |
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*Quick ratio |
1.35 |
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*Liabilities to assets |
0.51 |
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*Net profit margin (%) |
1.17 |
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*Return on total assets (%) |
1.06 |
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*Inventory /Turnover ×365 |
28 days |
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*Accounts receivable/Turnover ×365 |
158 days |
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*Turnover/Total assets |
0.90 |
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* Cost of goods sold/Turnover |
0.89 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line.
SC’s net profit margin is average in 2014.
SC’s return on total assets is average2014.
SC’s cost of goods sold is average in 2014, 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 appears average.
The accounts receivable of SC appears fairly large.
SC has no short-term loan in 2014.
SC’s turnover is in a fair level in 2014, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average in 2014.
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.65.74 |
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|
1 |
Rs.99.53 |
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Euro |
1 |
Rs.73.80 |
INFORMATION DETAILS
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Analysis Done by
: |
KIN |
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Report Prepared
by : |
TPT |
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.