MIRA INFORM REPORT
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Report No. : |
344802 |
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Report Date : |
13.10.2015 |
IDENTIFICATION DETAILS
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Name : |
ANHUI JUXING STEEL INDUSTRY CO., LTD. |
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Registered Office : |
No. 4 Yongqiang Road, Ecology Industrial Park, Jixi County, Xuancheng City,
Anhui Province, 245300 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
07.11.2007 |
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Com. Reg. No.: |
342531000004781 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing, processing and selling stainless steel pipes, stainless
steel welded pipes, stainless steel wire, stainless steel machinery and
equipment, valves, flanges, pipe fittings, round steel, tube billet, steel
ingots and steel plate |
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No. of Employee : |
45 |
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 : |
Small company |
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Payment Behaviour : |
No complaints |
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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
ANHUI JUXING STEEL INDUSTRY CO., LTD.
NO. 4 YONGQIANG ROAD, ECOLOGY INDUSTRIAL PARK,
JIXI COUNTY, XUANCHENG CITY, ANHUI PROVINCE, 245300 PR CHINA
TEL: 86 (0) 563-8156933/ 8156911 FAX: 86 (0) 563-8156778
EXECUTIVE
SUMMARY
INCORPORATION DATE : nov. 7, 2007
REGISTRATION NO. : 342531000004781
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : Wang Caixiang (CHAIRMAN)
STAFF STRENGTH : 45
REGISTERED CAPITAL : CNY
8,080,000
BUSINESS LINE : manufacturing
& tRADING
TURNOVER : CNY 35,980,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 9,500,000 (AS OF DEC. 31, 2014)
PAYMENT : no complaints
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
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 Ren Min Bi
Note: SC’s complete address should be the heading one.
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 Nov. 7, 2007.
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 manufacturing, processing and
selling stainless steel pipes, stainless steel welded pipes, stainless steel wire,
stainless steel machinery and equipment, valves, flanges, pipe fittings, round
steel, tube billet, steel ingots and steel plate (with permit if needed);
import and export of goods and technology (excluding the goods and technology
prohibited or limited by the country).
SC is mainly engaged in manufacturing and selling various kinds of
stainless steel tube.
Wang Caixiang has been the legal
representative and chairman of SC since July of 2014.
SC is known to have approx. 45 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the Ecology Industrial Park of Jixi
County. SC’s management declined to release the detailed information of the
premise.
http://www.juxinggy.com/
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
E-mail: yexiaojun@juxinggy.com
wangmichael.82@gmail.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
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|
Legal representative |
Li Zhenqiao |
Present one |
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Shareholders |
Li Zengwang 90% Wang Caixiang 10% |
Present ones |
SC has obtained ISO9001:2008 certificate.
Organization Code: 667933917
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Wang Caixiang 10
Li Zhong’en 90
Legal
representative and Chairman:
Wang Caixiang is currently responsible for the overall management of SC.
Working
Experience(s):
From 2014 to present Working
in SC as legal representative and chairman
General
Manager:
Ni Shiyi is currently
responsible for the daily management of SC.
Working
Experience(s):
At present Working
in SC as general manager
Supervisor:
…………..
Li Zhong’en
SC is mainly engaged in manufacturing and selling various kinds of
stainless steel tube.
SC’s products mainly include: Titanium Pipe, Round bar, Pipe for
shipbuilding, Pipe for Boiler
Trademarks &
patents
Registration no.: 7130106
Registration date:
Trademark design: 
SC sources its materials and products 95% from domestic market and 5%
from overseas market. SC sells 20% of its products to the overseas market, and
80% in domestic 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’s
management declined to release its major clients and suppliers.
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 banking information.
Balance
Sheet
Unit: CNY’000
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as of Dec. 31,
2014 |
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Cash & bank |
3,010 |
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Inventory |
7,350 |
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Accounts receivable |
4,630 |
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Advances to suppliers |
1,060 |
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Other receivables |
2,480 |
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Other current assets |
20 |
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------------------ |
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Current assets |
18,550 |
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Fixed assets net value |
9,170 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Intangible assets |
700 |
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Other assets |
0 |
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------------------ |
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Total assets |
28,420 |
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============= |
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Short loans |
10,800 |
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Notes payable |
3,200 |
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Accounts payable |
90 |
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Other payable |
2,700 |
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Taxes payable |
60 |
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Accrued payroll |
180 |
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Advances from clients |
1,080 |
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Other current liabilities |
810 |
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------------------ |
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Current liabilities |
18,920 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
18,920 |
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Equities |
9,500 |
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Total liabilities & equities |
28,420 |
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Income
Statement
Unit: CNY’000
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as of Dec. 31,
2014 |
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Turnover |
35,980 |
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Cost of goods sold |
31,270 |
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Sales expense |
1,210 |
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Management expense |
1,690 |
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Finance expense |
1,190 |
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Profit before tax |
600 |
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Less: profit tax |
70 |
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Profits |
530 |
Important
Ratios
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as of Dec. 31,
2014 |
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*Current ratio |
0.98 |
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*Quick ratio |
0.59 |
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*Liabilities to assets |
0.67 |
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*Net profit margin (%) |
1.47 |
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*Return on total assets (%) |
1.86 |
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*Inventory /Turnover ×365 |
75 days |
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*Accounts receivable/Turnover ×365 |
47 days |
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*Turnover/Total assets |
1.27 |
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* Cost of goods sold/Turnover |
0.87 |
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: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears fairly large in 2014.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loan appears large in 2014.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
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 short loans and inventory could be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.73 |
|
|
1 |
Rs.99.30 |
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Euro |
1 |
Rs.73.60 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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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.