April. 2007

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WAD Mid Term Meeting will be held at the Loews Coronado Bay Hotel, San Diego , California , U.S.A. from 12th -14th April 2007.

The president of CGM & Associates, LLP has visited the office of SBCS and discussed business cooperation with SBCS. 

The IL Sole-24ORE reports: University of Bologna (Universita Deglistudi Di Bologna) has cooperated with China University of Political Science and Law to establish “database of China Patent and Trademark Intellectual Property Protection”, which will be unveiled in June this year. The establishment of the database will provide information support to Italian companies in protecting their intellectual property in China .

Since March 6, the grass root courts in Dongcheng, Xicheng, Fengtai districts of Beijing have the authority to accept and hear some of the civil disputes on intellectual property. Hence, the intellectual property tribunals of Beijing grass root courts increased from 2 to 5. Three Levels Courts and Eight Intellectual Property Tribunals, the new structure of the intellectual property right trial, has been formed in Beijing City .

Violating traffic laws and regulations will be recorded in individuals’ credit system in Shanghai .  According to the report in Shanghai Evening Post, violating traffic laws and regulations may ruin your credit.

How Do New Companies Establish Credit Rating?

The credit rating of companies may be regarded as the lifeline of their survival and development.

A successful company must be a company with high credit rating. Since its establishment, a credit status of a company includes the authenticity of the information on its investors. The credit status of a company essentially pivots on that of its investors. If a company is founded on the basis of false information, it is born of a false carrier. And of course building a magnificent mansion on such a carrier is out of the question.

Without scientific management, good corporate culture, and wide social network, the development of a company is just a castle in the air. The credit rating of a company faces its clients, shareholders, employees, industrial and commercial department and related industries in the whole society system. However, it is just the credit standing of a company that sometimes hinders the development of the company, for the credit standing of the corporate owner is the key element to attract the capital of bank and in society. Nowadays, many non-standard market behaviors have led to individual credit decline and increase of social cost. For example, the mortgage means of bank, as the most popular financing means nowadays, is making boundary between bank and real estate agent blurring gradually.

Secondly, every company has to face the tax department. Now, many corporate owners try to evade tax to increase profit, which result in all kinds of fictitious cost, forged receipt, false accounting and forged statement. In order to stop these behaviors, the tax department has enhanced the examining force. The credit standing of corporate is confronted with censure again.

The experts believe that credit rating of a company, first of all, should be authenticity of its accounting information, and only with authentic accounting information the corporate credit rating could be realized, and the authenticity of accounting information, must totally represented in the authenticity of its capital. In modern corporations, the definition of capital includes equity capital and borrowed capital, if both the equity capital and borrowed capital are false, the correspondent assets are definitely false, and in turn jeopardize the authenticity of relevant assets, income and cost information of the company.

Every entrepreneur, only endeavor to build authentic accounting information, could establish good credit among the shareholders, banks, social financing and security institutes, competent industrial and commercial department, government, corporate relation network and its employees, so that the corporation could realize its real development.

Explanation of Professional Glossary  

Credit checking is the common name of due diligence investigation. Its main function is to verify the basic information on the fiduciary, estimate his credit value, so to help the credit grantor and the employer to make correct decision on credit extension, credit sale, recruitment and appointment.

Credit management, an interdisciplinary based on credit economics, is a management method used for increasing the success ratio of scientific credit extension. Based on large-scale credit checking database with credit scoring model as core, it provides correct, fair and quick service with high quality to relieve the information asymmetry in credit transaction.

Credit checking service, based on the business investigation or large-scale credit checking database, through integrating and processing the credit record by modern credit management technology, provide industrialized credit information products for legal unit or individual.

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