MIRA
INFORM REPORT
|
Report Date : |
07.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
RAPAPORT DIAMOND ( |
|
|
|
|
Registered Office : |
Room A710, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2009 |
|
|
|
|
Date of Incorporation : |
25.12.2007 |
|
|
|
|
Com. Reg. No.: |
310115400238542 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned Enterprise |
|
|
|
|
Line of Business : |
Engaged
in selling diamonds. |
|
|
|
|
No. of Employees : |
5 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No complaints |
|
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 30, 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 and address
RAPAPORT
DIAMOND (SHANGHAI) LTD.
ROOM A710, CHINA DIAMOND
EXCHANGE CENTER, NO. 1701 CENTURY AVENUE, PUDONG NEW DISTRICT, SHANGHAI, 200120
PR CHINA
TEL: 86 (0)
21-61602380/50811258
FAX: 86 (0) 21-61602385
EXECUTIVE SUMMARY
INCORPORATION DATE :
DEC. 25, 2007
REGISTRATION NO. :
310115400238542
REGISTERED LEGAL FORM :
WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. MORDECHAI RAPAPORT (CHAIRMAN)
STAFF STRENGTH :
5
REGISTERED CAPITAL : USD 200,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 315,530,000 (UNAUDITED, AS OF
DEC. 31, 2009)
EQUITIES :
CNY 17,500,000 (UNAUDITED, AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.31 = 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 Renminbi
%20LTD%20%20%20-%20175540%2007-Apr-2012_files/image001.gif){kind=small}
SC was registered as a
wholly foreign-owned enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Dec. 25, 2007.
Company Status:
Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered business scope includes operating diamonds
(excluding gold and silver), importing and exporting diamonds (including
transit trade and processing trade) in Shanghai diamond exchange (with permits
if needed).
SC is
mainly engaged in selling diamonds.
Mr.
Mordechai Rapaport has been legal representative and chairman of SC since 2007.
SC is known to have approx. 5 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.
Our checks reveal that SC rents the total premise, but the gross area of the
premise is unspecified.
%20LTD%20%20%20-%20175540%2007-Apr-2012_files/image002.gif){kind=small}
http://www.cnsde.com/com/index.asp?comUsername=0187
The design
is professional and the content is well organized. At present it is in Chinese
version.
E-Mail: julius@diamonds.net
%20LTD%20%20%20-%20175540%2007-Apr-2012_files/image003.gif){kind=small}
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Shareholder |
Rapaport Diamond Corporation (U.S.A.) 100% |
Present one |
%20LTD%20%20%20-%20175540%2007-Apr-2012_files/image004.gif){kind=small}
MAIN SHAREHOLDERS:
Name %
of Shareholding
Rapaport Holdings LLC 100
%20LTD%20%20%20-%20175540%2007-Apr-2012_files/image005.gif){kind=small}
l
Legal representative and
chairman:
Mr. Mordechai Rapaport, with university education, he is
currently responsible for the overall management of SC.
Working Experience(s):
From 2007 to present Working
in SC as chairman and legal representative
%20LTD%20%20%20-%20175540%2007-Apr-2012_files/image006.gif){kind=small}
SC is
mainly engaged in selling diamonds.
SC’s products mainly include: diamonds.
SC sources its merchandises 100% from the overseas market. SC
sells 100% of its merchandises in domestic market.
The buying terms of SC include Check, L/C, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, and Credit of 30-60
days.
%20LTD%20%20%20-%20175540%2007-Apr-2012_files/image007.gif){kind=small}
SC
is not known to have any subsidiary at present.
%20LTD%20%20%20-%20175540%2007-Apr-2012_files/image008.gif){kind=small}
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.
%20LTD%20%20%20-%20175540%2007-Apr-2012_files/image009.gif){kind=small}
SC declined to
release its banking details.
%20LTD%20%20%20-%20175540%2007-Apr-2012_files/image010.gif){kind=small}
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2009 (unaudited) |
as
of Dec. 31, 2008 |
|
Cash
& bank |
8,590 |
16,160 |
|
Bills
receivable |
0 |
0 |
|
Accounts
receivable |
0 |
-3,230 |
|
Other
receivables |
660 |
0 |
|
Advances to
suppliers |
0 |
0 |
|
Inventory |
30 |
3,040 |
|
Prepaid expenses |
0 |
0 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
9,280 |
15,970 |
|
Fixed
assets net value |
200 |
120 |
|
Projects
under construction |
0 |
0 |
|
Long
term investment |
0 |
0 |
|
Other
assets |
2,420 |
0 |
|
|
------------------ |
------------------ |
|
Total
assets |
11,900 |
16,090 |
|
|
============= |
============= |
|
Short
loans |
0 |
0 |
|
Bills
payable |
0 |
0 |
|
Accounts
payable |
0 |
3,020 |
|
Welfare
payable |
0 |
0 |
|
Advances from
clients |
0 |
0 |
|
Accrued
payroll |
0 |
0 |
|
Tax
payable |
-5,770 |
-780 |
|
Other
payable |
170 |
0 |
|
Surcharge
payable |
0 |
0 |
|
Other
current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
-5,600 |
2,240 |
|
Long
term liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
-5,600 |
2,240 |
|
Equities |
17,500 |
13,850 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
11,900 |
16,090 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2009 (unaudited) |
|
Turnover |
315,530 |
|
Cost of goods
sold |
349,100 |
|
Sales expense |
760 |
|
Management expense |
4,790 |
|
Finance expense |
970 |
|
Subsidy income |
44,990 |
|
Profit before
tax |
4,870 |
|
Less: profit tax |
1,220 |
|
Profits |
3,650 |
Note: SC’s financial reports for Yr2010 can not be
found in local AIC.
Important Ratios
=============
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2008 |
|
*Current ratio |
/ |
7.13 |
|
*Quick ratio |
/ |
5.77 |
|
*Liabilities
to assets |
/ |
0.14 |
|
*Net profit
margin (%) |
1.16 |
/ |
|
*Return on
total assets (%) |
30.67 |
/ |
|
*Inventory
/Turnover ×365 |
1 day |
/ |
|
*Accounts
receivable/Turnover ×365 |
/ |
/ |
|
*Turnover/Total
assets |
26.52 |
/ |
|
* Cost of
goods sold/Turnover |
1.11 |
/ |
%20LTD%20%20%20-%20175540%2007-Apr-2012_files/image011.gif){kind=small}
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good
in its line in 2009.
l
SC’s net profit margin is average in 2009.
l
SC’s return on total assets is good in
2009.
l
SC’s cost of goods sold is too high in
2009, comparing with its turnover.
LIQUIDITY:
AVERAGE
l
The inventory
conversion period of SC appears average in 2009.
l
SC has no accounts receivable in 2009.
l
SC has no short-term loan in both 2
years.
l
SC’s turnover is in a good level in
2009, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is low in 2008.
l
The risk for SC to go bankrupt is
average.
Overall
financial condition of the SC: Fairly Stable.
%20LTD%20%20%20-%20175540%2007-Apr-2012_files/image012.gif){kind=small}
SC is considered small-sized in its line with fairly stable
financial conditions. A credit line up to USD 100,000 would appear to be
within SC’s capacities.
DIAMOND INDUSTRY –
INDIA
-
From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
-
The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
-
Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
-
Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
-
The diamond jewellery industry in India today may be
more than Rs 60000 mil and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
-
Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
-
Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.04 |
|
|
1 |
Rs.81.08 |
|
Euro |
1 |
Rs.67.39 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.