MIRA INFORM REPORT

 

 

Report Date :           

20.10.2011

 

IDENTIFICATION DETAILS

 

Name :

SPROCOMM TECHNOLOGIES (WUXI) CO., LTD.

 

 

Registered Office :

Bldg. 1, China Sensing Network Park, No. 200 Linghu Street, New District, Wuxi, Jiangsu Province 214000 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

19.03.2010

 

 

Com. Reg. No.:

320213000128774

 

 

Legal Form :

Limited Liabilities Company

 

 

Line of Business :

Selling Communication Equipment

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 40,000

Status :

Small Company 

Payment Behaviour :

Usually Correct  

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

China

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name & address 

 

 Bottom of Form

 

sprocomm technologies (wuxi) co., ltd.

bldg. 1, china sensing network park, no. 200 linghu street

new district, wuxi, jiangsu province 214000 PR CHINA

TEL: 86 (0) 510-85386295

FAX: 86 (0) 510-85386295

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : march 19, 2010

REGISTRATION NO.                  : 320213000128774

LEGAL FORM                           : Limited liabilities company

CHIEF EXECUTIVE                                                 : li chengjun (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 10,000,000

staff                                      : 11

BUSINESS CATEGORY : trading

Revenue                                : CNY 4,800,000 (AS OF DEC. 31, 2010)

EQUITIES                                 : CNY 4,590,000 (AS OF DEC. 31, 2010)

WEBSITE                                 : N/A

E-MAIL                                     : N/A

PAYMENT                                : AVERAGE

Recommended Credit Limit: UP TO USD 40,000 (PERIODICAL REVIEW)

MARKET CONDITION                : average

FINANCIAL CONDITION             : FAIRly stable

OPERATIONAL TREND  : ORDINARY

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                     : CNY 6.39 = USD 1

 

 

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

 

Note: SC’s contact ways should be the heading ones, while the given telephone/fax numbers (8675588292656/8675583404993) belong to SC’s parent company-Shenzhen Sprocomm Technologies Co., Ltd.

 

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 320213000128774 on march 19, 2010.

 

SC’s Organization Code Certificate No.: 552477106

 

SC’s registered capital: cny 10,000,000

 

SC’s current paid-in capital: cny 10,000,000

 

No significant changes of SC have been noted in SAIC since its incorporation.

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Hua Longxing

10

Shenzhen Sprocomm Technologies Co., Ltd.

65

Wuxi Guolian Venture Capital Co., Ltd.

25

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative and Chairman

Li Chengjun

General Manager

Chen Aihui

Directors

Chen Aihui

Miao Qiang

Supervisor

Hua Longxing

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                                                                  % of Shareholding

Hua Longxing                                                                                                    10

Shenzhen Sprocomm Technologies Co., Ltd.                                                       65

Wuxi Guolian Venture Capital Co., Ltd.                                                                25

 

*         Shenzhen Sprocomm Technologies Co., Ltd.

=====================================

Date of Registration                    : September 16, 2009

Registration No.                         : 440301104272765

Legal Form                                : Limited Liabilities Company

Chief Executive                                                                                                                                      : Li Chengjun (Legal Representative)

Registered Capital                      : CNY 3,500,000

Tel: 86 (0) 755-88292656

Fax: 86 (0) 755-83404993

Web: www.sprocomm.com

E-mail: edwin.chen@sprocomm.com

 

 

*         Wuxi Guolian Venture Capital Co., Ltd.

==================================

Registration No.                         : 320213000007292

Legal Form                                : Limited Liabilities Company

Chief Executive                                                                                                                                      : Wan Guanqing (Legal Representative)

 

 

MANAGEMENT

 

Li Chengjun, Legal Representative and Chairman

----------------------------------------------------------------------------

Ø         Gender: M

Ø         Age: 39

Ø         ID# 513101197205040513

Ø         Qualification: University

Ø         Working experience (s):

 

From 2010 to present, working in SC as legal representative and chairman

 

Also working in Shenzhen Sprocomm Technologies Co., Ltd. as legal representative

 

Chen Aihui, General Manager

---------------------------------------------------

Ø         Gender: M

Ø         Age: 38

Ø         ID# 360102197306036316

Ø         Qualification: University

Ø         Working experience (s):

 

From 2010 to present, working in SC as general manager

 

Also as director in SC and Shenzhen Sprocomm Technologies Co., Ltd.

 

Miao Qiang, Director

-------------------------------------

Ø         Gender: M

Ø         Age: 40

Ø         ID# 320502197111162018

Ø         Qualification: University

 

Hua Longxing, Supervisor

----------------------------------------------

Ø         Gender: M

Ø         Age: 70

Ø         ID# 440301194110263817

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes designing, developing and selling communication equipment, mobile terminal equipment, digital media set-top box, computer hardware and software, intelligent equipment, monitoring equipment, sensing equipment, electronic components, networking equipment; system integration, operating and acting as an agent of importing and exporting various kinds of commodities and technology.

 

SC is mainly engaged in selling communication equipment.

 

SC’s products mainly include: mobile phones, smart phones, tablet PC, networking equipment.

  

SC sources its materials 100% from domestic market, mainly Beijing. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly India.

 

The buying terms of SC include T/T and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.

 

*Major Customers:

=============

Hangzhou Yinglun Information Technology Co., Ltd.

Micromax (India)

 

*Major Supplier:

=============

Beijing Suntechlink Technology Co., Ltd.

 

Staff & Office:

--------------------------

SC is known to have approx. 11 staff at present.

 

SC rents an area as its operating office of approx. 150 sq. meters at the heading address.

 

 

RELATED COMPANY

 

u        Shanghai Sprocomm Technologies Co., Ltd.

Date of Registration                    : 310112000936590

Registration No.                         : November 24, 2009

Legal Form                                : One-person Limited Liabilities Company

Chief Executive                                                                                                                                      : Li Hongxing (Legal Representative)

Registered Capital                      : CNY 2,000,000

 

u        Sprocomm Technologies Co., Limited (Hong Kong)

Company File No.                      : 1374863

Date of Registration                    : September 18, 2009

Legal Form                                : Private

Status                                                                                                                                                   : Live

 

 

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’s suppliers declined to make any comments.

 

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:

Agricultural Bank of China Wuxi Branch

AC#：653401040007957

 

 

FINANCIALS

 

Balance Sheet

Unit: CNY’000

As of Dec. 31, 2010

Cash

2,140

Accounts receivable

3,100

Advances to suppliers

14,090

Other receivable

60

Inventory

120

Non-current assets within one year

0

Other current assets

10

 

------------------

Current assets

19,520

Fixed assets

50

Long-term prepaid expenses

0

Deferred income tax assets

0

Other non-current assets

0

 

------------------

Total assets

19,570

 

=============

Short-term loans

13,400

Notes payable

0

Accounts payable

20

Advances from clients

0

Other payable

250

Other current liabilities

1,310

 

------------------

Current liabilities

14,980

Non-current liabilities

0

 

------------------

Total liabilities

14,980

Equities

4,590

 

------------------

Total liabilities & equities

19,570

 

=============

 

Note: Until December 31, 2010, SC’s paid-in capital was CNY 4,500,000

 

Income Statement

Unit: CNY’000

As of Dec. 31, 2010

Revenue

4,800

Cost of sales

3,170

    Sales expense

0

    Management expense

1,420

    Finance expense

80

Profit before tax

120

Less: profit tax

30

Profits

90

 

Important Ratios

=============

 

As of Dec. 31, 2010

*Current ratio

1.30

*Quick ratio

1.30

*Liabilities to assets

0.77

*Net profit margin (%)

1.88

*Return on total assets (%)

0.46

*Inventory / Revenue ×365

10 days

*Accounts receivable/ Revenue ×365

236 days

* Revenue/Total assets

0.25

* Cost of sales / Revenue

0.66

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: AVERAGE

l         The revenue of SC appears fair 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 revenue.

 

LIQUIDITY: FAIR

l         The current ratio of SC is maintained in a normal level.

l         SC’s quick ratio is maintained in a fairly good level.

l         The inventory of SC is maintained in an average level.

l         The accounts receivable of SC appears large.

l         The short-term loans of SC appear large.

l         SC’s revenue is in a fair level, comparing with the size of its total assets.

 

LEVERAGE: AVERAGE

l         The debt ratio of SC is average.

l         The risk for SC to go bankrupt is average.

 

Overall financial condition of the SC: Fairly Stable.

 

 

CONCLUSIONS

 

SC is considered small-sized in its line with fairly stable financial conditions. The large amount of accounts receivable and short-term loans may be a threat to SC’s financial condition. A credit line up to USD 40,000 is recommended upon a periodical review basis.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.18

UK Pound

1

Rs.77.49

Euro

1

Rs.67.96

 

 

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%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.