MIRA INFORM REPORT
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Report Date : |
13.05.2011 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI TIANZHONG HEAVY-DUTY MACHINERY CO.,
LTD. |
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Registered Office : |
Room 904, Yuanmao Jinhao Building, No. 1018 Xikang Road, Putuo District, Shanghai, 200060 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
07.01.2003 |
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Com. Reg. No.: |
310114000662447 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling
heavy-duty machinery |
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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Maximum Credit Limit : |
usd 400,000 |
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Status : |
Moderate |
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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 – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
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 TIANZHONG
HEAVY-DUTY MACHINERY CO., LTD.
ROOM 904, YUANMAO JINHAO BUILDING, NO. 1018
XIKANG ROAD,
PUTUO
DISTRICT, SHANGHAI, 200060 PR CHINA
TEL: 86 (0) 21-62987858/62986361 FAX: 86 (0) 21-32270452
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 7, 2003
REGISTRATION NO. : 310114000662447
REGISTERED LEGAL
FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
80
REGISTERED CAPITAL : CNY 60,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 239,420,000 (AS OF DEC. 31, 2010)
EQUITIES :
cny 63,780,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 400,000 (periodical review)
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.50= USD1
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: the given address “No. 1080 Xikang Road”
should be “No. 1018 Xikang Road”.
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 Jan. 7, 2003.
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 and selling
machinery, machine; selling electrical equipment and accessories, hardware,
household appliances, construction and decoration materials, wood and wood
products, paper and paper raw materials, merchandise, chemical raw materials
(excluding toxic and dangerous goods), rubber products, metal materials (except
precious metals); metallurgical equipment design; import and export of goods
and technology. (with permit if needed)
SC is mainly
engaged in manufacturing and selling heavy-duty machinery.
Mr. Cai Zhenzhong
is the legal representative and chairman of SC at present.
SC is known
to have approx. 80 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and head office in the commercial zone of
Shanghai. Our checks reveal that SC rents the
total premise, but SC’s employee refused to release the gross area of the
premise.
SC’s
factory is located at No. 4278 Zhennan Road, Shanghai.
http://www.shtzco.com/ The design
is professional and the content is well organized. At present, the web is in
Chinese version.
E-mail: manager@shtzco.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2009 |
Company name |
Shanghai Tianzhong Heavy-Duty Machinery Equipment
Co., Ltd. |
Present one |
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Cai Zhenzhong 65
Liu Lilin and other 8 individuals 35
l
Legal representative and Chairman:
Mr. Cai Zhenzhong is currently responsible for the
overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman
Also working in Shanghai Tianzhong Heavy-Duty Mechanical Co., Ltd., Shanghai Tian Chuan Electric Co., Ltd., Yangzhou Tianzhong Metalurgical Equipment Co., Ltd. as legal representative
SC is mainly
engaged in manufacturing and selling heavy-duty machinery.
SC’s products
mainly include aluminum hot rolling mill, aluminum continuous casting machine,
aluminum cold rolling mill, foil rolling mill, and various aluminum finishing
equipment, etc.
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 T/T, L/C and Credit of 30-60 days.
Note:
SC’s management declined to release its major clients and suppliers.
· Shanghai Tianzhong Heavy-Duty Mechanical Co., Ltd.
· Shanghai Tian Chuan Electric Co., Ltd.
· Yangzhou Tianzhong Metalurgical Equipment Co., Ltd.
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 records 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 bank details.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2010 |
|
Cash & bank |
12,630 |
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Inventory |
71,820 |
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Accounts
receivable |
115,110 |
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Advances to
suppliers |
66,480 |
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Other
receivables |
11,140 |
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Other current
assets |
20,920 |
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------------------ |
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Current assets |
298,100 |
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Fixed assets |
6,590 |
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Projects under
construction |
0 |
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Other assets |
79,050 |
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------------------ |
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Total assets |
383,740 |
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============= |
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Short loans |
10,000 |
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Accounts payable |
26,190 |
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Advances from
clients |
267,980 |
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Other payable |
11,390 |
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Salaries and
welfare payable |
0 |
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Taxes payable |
4,280 |
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Other current
liabilities |
120 |
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------------------ |
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Current
liabilities |
319,960 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
319,960 |
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Equities |
63,780 |
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----------------- |
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Total
liabilities & equities |
383,740 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31,
2010 |
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Turnover |
239,420 |
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Cost of goods
sold |
212,640 |
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Sales expense |
170 |
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Management expense |
16,880 |
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Finance expense |
830 |
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Profit before
tax |
7,870 |
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Less: profit tax |
1,970 |
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Profits |
5,900 |
Important Ratios
=============
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as
of Dec. 31, 2010 |
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*Current ratio |
0.93 |
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*Quick ratio |
0.71 |
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*Liabilities
to assets |
0.83 |
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*Net profit
margin (%) |
2.46 |
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*Return on total
assets (%) |
1.54 |
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*Inventory
/Turnover ×365 |
109 days |
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*Accounts
receivable/Turnover ×365 |
175 days |
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*Turnover/Total
assets |
0.62 |
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* Cost of
goods sold/Turnover |
0.89 |
PROFITABILITY: AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears large.
l
The short-term loan of SC appears average in 2010.
l
SC’s turnover is in a fair level in 2010, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable could be a threat to SC’s
financial condition. A credit line up to USD 400,000
would appear to be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.79 |
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UK Pound |
1 |
Rs.73.19 |
|
Euro |
1 |
Rs.63.59 |
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.