MIRA INFORM REPORT
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Report No. : |
339591 |
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Report Date : |
10.09.2015 |
IDENTIFICATION DETAILS
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Name : |
FOSHAN TEXTILE
MACHINERY CO. LTD |
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Registered Office : |
Shangbai Sanjiao Park, Luocun Town, Nanhai District, Foshan City, Guangdong
Province, 528226 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
15.04.1958 |
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Com. Reg. No.: |
440600000006823 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing & selling textile machinery
and spare parts products mainly include: Towel rapier loom, Tappet rapier
loom, rereeling machine, coated wire machine. |
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No. of Employee : |
55 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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
In the years following World War II, government-industry cooperation,
a strong work ethic, mastery of high technology, and a comparatively small
defense allocation (1% of GDP) helped Japan develop an advanced economy. Two
notable characteristics of the post-war economy were the close interlocking
structures of manufacturers, suppliers, and distributors, known as keiretsu,
and the guarantee of lifetime employment for a substantial portion of the urban
labor force. Both features are now eroding under the dual pressures of global
competition and domestic demographic change. Scarce in many natural resources,
Japan has long been dependent on imported raw materials. Since the complete
shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster
in 2011, Japan's industrial sector has become even more dependent than it was
previously on imported fossil fuels. A small agricultural sector is highly
subsidized and protected, with crop yields among the highest in the world.
While self-sufficient in rice production, Japan imports about 60% of its food
on a caloric basis. For three decades, overall real economic growth had been
impressive - a 10% average in the 1960s, a 5% average in the 1970s, and a 4%
average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%,
largely because of the aftereffects of inefficient investment and an asset
price bubble in the late 1980s that required a protracted period of time for
firms to reduce excess debt, capital, and labor. Modest economic growth
continued after 2000, but the economy has fallen into recession four times
since 2008. Government stimulus spending helped the economy recover in late
2009 and 2010, but the economy contracted again in 2011 as the massive 9.0
magnitude earthquake and the ensuing tsunami in March of that year disrupted
manufacturing. The economy has largely recovered in the four years since the
disaster, although reconstruction in the affected Tohoku region has lagged, in
part due to a shortage of labor in the construction sector. Japan enjoyed a
sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s
“Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of
monetary easing, “flexible” fiscal policy, and structural reform. Abe’s
government has replaced the preceding administration’s plan to phase out nuclear
power with a new policy of seeking to restart nuclear power plants that meet
strict new safety standards, and emphasizing nuclear energy’s importance as a
base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP)
negotiations in 2013, a pact that would open Japan's economy to increased
foreign competition and create new export opportunities for Japanese
businesses. Measured on a purchasing power parity (PPP) basis that adjusts for
price differences, Japan in 2014 stood as the fourth-largest economy in the
world after first-place China, which surpassed Japan in 2001, and third-place
India, which edged out Japan in 2012. While seeking to stimulate and reform the
economy, the government must also devise a strategy for reining in Japan's huge
government debt, which amounts to more than 230% of GDP. To help raise
government revenue, Japan adopted legislation in 2012 to gradually raise the
consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8%
implemented in April 2014. That increase had a contractionary effect on GDP,
however, so PM Abe in late 2014 decided to postpone the final phase of the
increase until April 2017 to give the economy more time to recover. Led by the
Bank of Japan’s aggressive monetary easing, Japan is making progress in ending
deflation, but demographics - low birthrate and an aging, shrinking population
- pose major long-term challenges for the economy.
|
Source
: CIA |
company
name and address
FOSHAN TEXTILE MACHINERY
CO. LTD
shangbai sanjiao park, luocun town, NANHAI
DISTRICT, FOSHAN CITY, GUANGDONG PROVINCE, 528226 PR CHINA
TEL: 86 (0) 757-81801136 FAX: 86 (0) 757-81801100
EXECUTIVE
SUMMARY
INCORPORATION DATE :
APRIL 15, 1958
REGISTRATION NO. :
440600000006823
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : MR. ZHOU PEIBIAO (LEGAL REPRESENTATIVE)
STAFF STRENGTH :
55 (APPROXIMATELY)
REGISTERED CAPITAL : CNY 3,800,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 50,240,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY -24,720,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.3645 = 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 is registered as a limited liabilities co. 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 design, manufacture, sales of
textile machinery and spare parts; manufacture and sale of various types of
machinery equipment and spare parts (with permit if needed)
SC is mainly engaged in manufacturing & selling textile machinery
and spare parts.
Mr. Zhou Peibiao is legal representative and executive director of SC at
present.
SC is known to have approx. 55 employees at present.
The “No. 1, Hegui Road, Luocun Neighbourhood Industry Park Nanhai
District, Foshan City, Guangdong Province” is SC’s former operating address, SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Foshan.
http://www.fsffj.com
The design is professional and the content is well organized, and now it is in
Chinese and English version.
E-mail: fsffja@163.com
SC’s predecessor was “Foshan Textile Machinery Manufacturer”,
established in 1958, is a wholly-funded subsidiary of China Textile Machinery
(Group) Co., Ltd.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2011-8-5 |
Legal representative |
Ling Youxie |
Zhou Peibia |
|
2008-2-1 |
Registered capital |
CNY 23,200,000 |
CNY 3,800,000 |
|
Registered number |
4406001003387 |
440600000006823 |
|
|
Company name |
Foshan Textile Machinery Manufacturer |
Foshan Textile Machinery Co. Ltd |
Organization code: 193528222
Patents:
There is no litigation record of SC for the past two years.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ling Youxie 10
Ling Zijian 15
Su Shangqin 15
Zhou Peibiao 20
Fang Yanshan 10
Liao Weiqi 10
Yuan Guibin 10
Chen Wensheng 10
Legal
Representative and Executive Director:
Mr. Zhou Peibia he is currently responsible for the overall management
of SC.
Working
Experience(s):
At present
Working in SC as legal representative and executive director.
General
Manager:
Mr. Ling Zijian he is currently responsible for the daily management of
SC.
Working
Experience(s):
At present
Working in SC as general manager.
Vice President:
Chen Wensheng
Liao Weiqi
Yuan Guibin
Supervisor:
Fang Yanshan
SC is mainly engaged in manufacturing & selling textile machinery
and spare parts.
SC’s products mainly include: Towel rapier loom, Tappet rapier loom,
rereeling machine, coated wire machine.
SC sources its materials 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 refused
to release its major clients and suppliers.
Trademark:
Registration No.: 3164167
Registration Date:
According to SC’s website, SC has a subsidiary as following, but we didn’t find
its registration information at local AIC.
Foshan Lijia Textile Machinery
Co. Ltd (literal translation)
Tel: 0757-82822488
Fax: 0757-82826903
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.
NA
Balance Sheet
|
Unit: CNY’000 |
as of Dec. 31, 2014 |
|
Cash & bank |
680 |
|
Inventory |
|
|
Notes receivable |
1,030 |
|
Accounts receivable |
820 |
|
Other receivable |
140 |
|
Advanced to suppliers |
390 |
|
Other current assets |
80 |
|
|
------------------ |
|
Current assets |
7,240 |
|
Fixed assets net value |
2,340 |
|
|
------------------ |
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Total assets |
9,580 |
|
|
=========== |
|
Short loans |
2,860 |
|
Accounts payable |
4,920 |
|
Accounts advanced from customers |
2,610 |
|
Tax payable |
60 |
|
Other accounts payable |
11,210 |
|
Other current liabilities |
4,630 |
|
|
------------------ |
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Current liabilities |
26,290 |
|
Long term liabilities |
8,010 |
|
|
------------------ |
|
Total liabilities |
34,300 |
|
Equities |
|
|
|
------------------ |
|
Total liabilities & equities |
9,580 |
Income Statement
|
Unit: CNY’000 |
as of Dec. 31, 2014 |
|
Turnover |
50,240 |
|
Cost of goods sold |
40,470 |
|
Taxes and additional of
main operation |
70 |
|
Sales expense |
350 |
|
Management expense |
2,640 |
|
Finance expense |
20 |
|
Profit before tax |
6,690 |
|
Less: profit tax |
0 |
|
Profits |
6,690 |
Note: According to SC’s accountant Mr. Yu, SC’s main business income of
2014 was amount to CNY 13,000,000, the turnover CNY 50,240,000 contains its
relocation income.
Important Ratios
|
|
as of Dec. 31, 2014 |
|
*Current ratio |
0.28 |
|
*Quick ratio |
0.12 |
|
*Liabilities to assets |
3.58 |
|
*Net profit margin (%) |
13.32% |
|
*Return on total assets (%) |
69.83% |
|
*Inventory /Turnover ×365 |
30 days |
|
*Accounts receivable/Turnover ×365 |
6 days |
|
*Turnover/Total assets |
5.24 |
|
* Cost of goods sold/Turnover |
0.81 |
PROFITABILITY:
GOOD
The turnover of SC appears average in 2014.
SC’s net profit margin is good in 2014.
SC’s return on total assets is good in 2014.
SC’s cost of goods sold is average in 2014.
LIQUIDITY: POOR
The current ratio of SC is maintained in a poor level in 2014.
SC’s quick ratio is maintained in a poor level in 2014.
The inventory of SC appears average in 2014.
SC’s accounts receivable is small in 2014.
SC’s short-term loan is large in 2014.
SC’s turnover is in a good level in 2014, comparing with the size of its
total assets.
LEVERAGE: POOR
The debt ratio of SC is high in 2014.
The risk for SC to go bankrupt is fairly high.
Overall financial
condition of the SC: Fair
SC is considered medium-sized in its line with fair financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.29 |
|
|
1 |
Rs.101.89 |
|
Euro |
1 |
Rs.73.98 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
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.