MIRA INFORM REPORT
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Report Date : |
06.05.2011 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI HE WEI DIAMOND TRADING CO., LTD. |
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Registered Office : |
Room 704, Building A, Sde Tower, No. 1701 Century Bldg., Pudong New District, Shanghai, 200120 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
21.05.2002 |
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Com. Reg. No.: |
310115000676946 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Selling Jewelry, Handicrafts and Collections |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Poor |
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Payment
Behaviour : |
Unknown |
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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 – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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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 |
Company name & address
SHANGHAI
HE WEI DIAMOND TRADING CO., LTD.
ROOM 704, BUILDING A, SDE TOWER, NO. 1701
CENTURY BLDG., PUDONG NEW DISTRICT, SHANGHAI, 200120 PR CHINA
TEL: 86 (0) 21-64515675 FAX: 86 (0) 21-50158125/ 64515523
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY
21, 2002
REGISTRATION NO. :
310115000676946
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 20
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 48,000 (AS OF DEC. 31, 2009)
EQUITIES :
CNY -1,900,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : C.O.D.
MARKET CONDITION :
FAIR
FINANCIAL CONDITION :
POOR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.4981=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
SC was registered as a limited liabilities co. at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on May 21, 2002.
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 selling gold and silver jewelry, crafts, building materials, decoration materials, needles textiles, department, electronic computers and accessories, cultural office machinery, communication equipment, abrasive, mould, auto parts, motorcycle accessories; economic information consultation; engaged in import and export of goods and technology import and export business, (with permit if needed).
SC is mainly engaged in selling jewelry, handicrafts and
collections.
Ms. Ding Jie has been legal representative and chairman of SC since 2002.
SC is known to have approx. 20 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Shanghai. The detail information of the total premise is unspecified.
SC is not known to have website of its own at present.
Changes
of its registered information:
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Date Of Change |
Item |
Before The Change |
After The Change |
|
2007-4 |
Registered Capital |
CNY 500,000 |
Present amount |
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Shareholders |
Zheng Hanqin 60% Ding Jie 40% |
Present ones |
Tax Registration Certificate No.:
310115739024684
Organization Code: 73902468-4
Name
% of shareholdings
Yu Zhenguo
75
Zheng Hanqin
15
Ding Jie
10
l
Chairman & Legal Representative:
Ms. Ding Jie currently responsible for the overall management of SC
Working Experience(s):
From 2002 to present Working in SC as chairman & legal representative
Supervisor:
Mr. Zheng Hanqin
SC
is mainly engaged in selling jewelry, handicrafts and collections.
SC’s products
mainly include: jewelry, handicrafts, collections, etc.
SC sources its materials 100% from overseas
market. SC sells 95% of its products in domestic market, and 5% to overseas
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 refused to release its main
customers 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.
Bank of Shanghai
Caohejing Sub-branch
AC#:
316874-00009048622
Relationship:
Normal
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2008 |
As of Dec. 31,
2009 |
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Cash & bank |
229 |
189 |
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Short-term
investments |
0 |
0 |
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Inventory |
2,632 |
653 |
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Accounts
receivable |
374 |
342 |
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Advances to
suppliers |
0 |
0 |
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Other accounts
receivable |
410 |
411 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
3,645 |
1,595 |
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Fixed assets net
value |
151 |
129 |
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Project under
construction |
0 |
0 |
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Long term
investment |
100 |
100 |
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Intangible and other
assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
3,896 |
1,824 |
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============= |
============= |
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Short loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
0 |
0 |
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Advances from
clients |
0 |
0 |
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Welfare payable |
223 |
223 |
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Taxes payable |
-20 |
-18 |
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Surcharge payable |
0 |
0 |
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Other accounts
payable |
5,227 |
3,519 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
5,430 |
3,724 |
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Long-term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
5,430 |
3,724 |
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Equities |
-1,534 |
-1,900 |
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------------------ |
------------------ |
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Total
liabilities & equities |
3,896 |
1,824 |
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============= |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2008 |
As of Dec. 31,
2009 |
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Turnover |
1,353 |
48 |
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Cost of goods sold |
1,554 |
14 |
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Sales expense |
672 |
172 |
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Management expense |
569 |
226 |
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Finance expense |
-30 |
1 |
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Subsidy income |
230 |
0 |
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Profit before
tax |
-1,182 |
-365 |
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0 |
0 |
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Profits |
-1,182 |
-365 |
Important
Ratios
=============
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As
of Dec. 31, 2008 |
As
of Dec. 31, 2009 |
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*Current ratio |
0.67 |
0.43 |
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*Quick ratio |
0.19 |
0.25 |
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*Liabilities
to assets |
1.39 |
2.04 |
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*Net profit
margin (%) |
-87.36 |
-760.42 |
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*Return on
total assets (%) |
-30.34 |
-20.01 |
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*Inventory
/Turnover ×365 |
710 days |
4,958 days |
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*Accounts
receivable/Turnover ×365 |
101 days |
2,601 days |
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*Turnover/Total
assets |
0.35 |
0.03 |
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* Cost of
goods sold/Turnover |
1.15 |
0.29 |
PROFITABILITY: POOR
l
The turnover of SC appears average in 2008 but poor
in 2009.
l
SC’s net profit margin appears poor in both years.
l
SC’s return on total assets appears poor in both
years.
l
SC’s cost of goods sold is too high in 2008 and low
in 2009, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in 2008 but poor in 2009.
l
SC’s quick ratio is maintained in a poor level in
both years.
l
The inventory of SC appears large in both years.
l
The accounts receivable of SC appears average in
both years.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a poor level in both years,
comparing with the size of its total assets.
LEVERAGE: POOR
l
The debt ratio of SC is too high.
l
The risk for SC to go bankrupt is high.
Overall financial
condition of the SC: Poor
SC is considered small-sized in its line with poor financial conditions.
The large amount of inventory could be a threat to SC’s financial condition. Great
caution is required in providing credit to SC & C.O.D. is recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.57 |
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UK Pound |
1 |
Rs.73.58 |
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Euro |
1 |
Rs.66.23 |
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.