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MIRA INFORM REPORT
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Report No. : |
484328 |
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Report Date : |
08.01.2018 |
IDENTIFICATION DETAILS
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Name : |
V P
CHINA LTD. |
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Registered Office : |
Room 712, No. 1717 North Sichuan Road, Hongkou
District, Shanghai 200080 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
10.10.2012 |
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Com. Reg. No.: |
913100000512769395 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Importing
and exporting textiles and raw materials, leather products, chemical products
and raw materials, daily necessities, hardware, building materials,
electronic products, home furnishing care products, packaging materials,
plastic products, clothing and accessories, textile fabrics, textile
auxiliaries, feather products, handicrafts, paper products, bedding, sanitary
ware, lighting appliances, machinery and equipment fittings, mechanical and
electrical products, environmental protection equipment, metal materials,
construction machinery and equipment and accessories, motorcycles, electric
vehicle; international trade; providing related supporting services |
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No. of Employees : |
2 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
C |
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Credit Rating |
Explanation |
Rating Comments |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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Status : |
Poor |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state-support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.
After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, 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 liberalization. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi (RMB) after the currency was accepted as part of the IMF’s special drawing rights basket. After engaging in one-way, large-scale intervention to resist appreciation of the RMB for a decade, China’s 2016 intervention in foreign exchange markets has sought to prevent a rapid RMB depreciation that would have negative consequences for the United States, China, and the global economy.
China’s economic growth has slowed since 2011. The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) servicing its high corporate debt burdens to maintain financial stability; (c) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (d) dampening speculative investment in the real estate sector; (e) reducing industrial overcapacity; and (f) raising productivity growth rates through the more efficient allocation of capital. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.
The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. Under President XI Jinping, Beijing has signaled its understanding that China's long-term economic health depends on giving the market a more decisive role in allocating resources, but has moved slowly on market-oriented reforms because of potential negative consequences for stability and short-term economic growth. He has also increased state-control over key sectors and Party control over state-owned enterprises. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time.
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Source
: CIA |
Company
Name And Address
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COMPANY NAME |
V P China Ltd. |
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CURRENT ADDRESS/ REGISTERED ADDRESS |
Room 712, No. 1717 North Sichuan
Road, Hongkou District, Shanghai 200080 PR China |
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TEL. NO. |
86 (0) 21-60748200 |
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FAX NO. |
N/a |
EXECUTIVE
SUMMARY
Date of Registration : OCTOBER 10, 2012
Unified social credit code : 913100000512769395
LEGAL FORM : Wholly
foreign-owned enterprise
REGISTERED CAPITAL : usd 140,000
staff : 2
BUSINESS CATEGORY : TRADING
Revenue : CNY 2,398,000 (AS OF DEC. 31, 2016)
EQUITIES : CNY -2,488,000 (AS OF DEC. 31, 2016)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : fair
FINANCIAL CONDITION : poor
OPERATIONAL TREND : fair
GENERAL REPUTATION : fair
Adopted abbreviations (as follows)
SC -
Subject Company (the company inquired by you)
N/A – Not
available
CNY –
China Yuan Ren Min Bi
OPERATIONAL
TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC
in respect of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL
STATUS & HISTORY
SC was established as wholly foreign-owned enterprise of PRC with State Administration
of Industry & Commerce (SAIC) under unified social credit code: 913100000512769395.
SC’s registered capital: USD 140,000
SC’s paid-in capital: USD 140,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No./ Unified
Social Credit Code |
310000400694425 |
913100000512769395 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
V.P.UDYOG LIMITED |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Om
Prakash Jasarasaria |
|
Supervisor |
Chen
Zhongping |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
V.P.UDYOG LIMITED 100
-----------------------------
4 Synagogue Street 10th Floor,
Room 1004, Kolkata, 700001 INDIA.
Phone: +91 (33) 2242 9373/ +91 (33) 4008 8959
Fax: +91 (33) 2242 5367
Email: vpudyog@vpudyog.com
Web: www.vpudyog.com
MANAGEMENT
Om Prakash Jasarasaria, Legal Representative and Chairman
--------------------------------------------------------------------------------
Ø Gender:
M
Ø Working
experience (s):
At present, working in SC
as legal representative and chairman
Chen Zhongping , Supervisor
------------------------------------------------
Ø Gender:
F
Ø Nationality:
China
Ø Qualification:
University
Ø Working
experience (s):
At present, as supervisor
of SC
BUSINESS
OPERATION
SC’s registered business scope
includes importing and exporting textiles and raw materials, leather
products, chemical products and raw materials, daily necessities, hardware,
building materials, electronic products, home furnishing care products,
packaging materials, plastic products, clothing and accessories, textile
fabrics, textile auxiliaries, feather products, handicrafts, paper products,
bedding, sanitary ware, lighting appliances, machinery and equipment fittings,
mechanical and electrical products, environmental protection equipment, metal
materials, construction machinery and equipment and accessories, motorcycles,
electric vehicle; international trade; providing related supporting services.
SC is
mainly engaged in selling textiles and raw materials.
SC’s
products mainly include: textiles, cotton, etc.
SC sources the products 60% from domestic market, and 40% from overseas market. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly U.S.A., etc.
The
buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms
of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers*
==============
Champs
Canada Inc.
Electrc
Motive Canada Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 2
staff at present.
SC rents
an area as its operating office, but the detailed information is unknown.
RELATED
COMPANY
SC is not known to have any subsidiary at present.
PAYMENT
Overall payment appraisal:
( ) Excellent ( )
Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
China Merchants Bank Shanghai Chuanbei Sub-branch
AC#: 121910512510801
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2015 |
As of Dec. 31, 2016 |
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0 |
0 |
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Notes receivable |
0 |
0 |
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Accounts
receivable |
0 |
0 |
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Advances
to suppliers |
0 |
0 |
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Other
receivable |
8 |
7 |
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Inventory |
596 |
0 |
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Non-current
assets within one year |
0 |
0 |
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Other
current assets |
0 |
0 |
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------------------ |
------------------ |
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Current
assets |
604 |
7 |
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Fixed
assets |
0 |
3 |
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Construction
in progress |
0 |
0 |
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Intangible
assets |
0 |
0 |
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Long-term
prepaid expenses |
0 |
0 |
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Deferred
income tax assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total
assets |
604 |
10 |
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|
============= |
============= |
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Short-term
loans |
0 |
0 |
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Notes
payable |
0 |
0 |
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Accounts
payable |
381 |
379 |
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Wages
payable |
0 |
16 |
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Taxes
payable |
-103 |
-1 |
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Advances
from clients |
709 |
0 |
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Other
payable |
2,517 |
2,104 |
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Other
current liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Current
liabilities |
3,504 |
2,498 |
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Non-current
liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total
liabilities |
3,504 |
2,498 |
|
Equities |
-2,900 |
-2,488 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
604 |
10 |
|
|
============= |
============= |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2016 |
|
Revenue |
2,398 |
|
Cost of sales |
2,302 |
|
Sales expense |
81 |
|
Management expense |
525 |
|
Finance expense |
38 |
|
Profit
before tax |
-548 |
|
Less:
profit tax |
0 |
|
-548 |
Important
Ratios
=============
|
|
As of Dec. 31, 2015 |
As of Dec. 31, 2016 |
|
*Current
ratio |
0.17 |
0.003 |
|
*Quick
ratio |
0.002 |
0.003 |
|
*Liabilities
to assets |
5.80 |
249.80 |
|
*Net
profit margin (%) |
-- |
-22.85 |
|
*Return
on total assets (%) |
-- |
-5,480.00 |
|
*Inventory
/ Revenue ×365 |
-- |
-- |
|
*Accounts
receivable/ Revenue ×365 |
-- |
-- |
|
*Revenue/Total
assets |
-- |
239.80 |
|
*Cost
of sales / Revenue |
-- |
0.96 |
FINANCIAL
COMMENTS
PROFITABILITY:
POOR
l The
revenue of SC appears fair in its line.
l SC’s
net profit margin is poor.
l SC’s
return on total assets is poor.
l
SC’s cost of sales is fairly high,
comparing with its revenue.
LIQUIDITY:
POOR
l
The current ratio of SC is maintained in
a poor level.
l
SC’s quick ratio is maintained in a
poor level.
l
SC has no inventory in 2016.
l
SC has no accounts receivable in 2
years.
l
SC has no short-term loans in 2 years.
l
SC’s revenue is in an average level,
comparing with the size of its total assets.
LEVERAGE:
POOR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is
fairly high.
Overall
financial condition of the SC: Poor.
CONCLUSIONS
SC is considered small-sized in its line with poor financial
conditions. Great caution is required in providing credit to SC
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.38 |
|
|
1 |
INR 86.02 |
|
Euro |
1 |
INR 76.50 |
|
CNY |
1 |
INR 9.76 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.