MIRA INFORM REPORT
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Report Date : |
18.08.2012 |
IDENTIFICATION DETAILS
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Correct Name : |
SHENZHEN DIAMOND CHARM JEWELRY LTD. |
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Registered Office : |
1/F, Building 21, Shuibei
Industrial Park, Cuizhu North Road, Luohu District, Shenzhen, Guangdong Province, 518020 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
28.04.2000 |
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Com. Reg. No.: |
440301103151235 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
processing and selling
gold and diamond ornaments |
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No. of Employees : |
400 |
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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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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
Shenzhen Diamond Charm Jewelry Ltd.
1/f, building 21,
shuibei industrial PARK, cuizhu north road,
luohu DISTRICT,
SHENZHEN, GUANGDONG PROVINCE, 518020 PR CHINA
TEL: 86 (0)
755-25500888/25538639 FAX: 86 (0)
755-25500222/25539015
EXECUTIVE SUMMARY
INCORPORATION DATE : april 28, 2000
REGISTRATION NO. : 440301103151235
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 400
REGISTERED CAPITAL : CNY 142,860,000
BUSINESS LINE : PROCESSING
TURNOVER : CNY 1,159,770,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 152,170,000 (AS OF DEC. 31, 2011)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.3708 = USD
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
Note: SC’s complete English name should be the
heading one.
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 Apr. 28, 2000.
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, platinum jewelry, diamond jewelry, jade, gemstone
jewelry, silver jewelry, watches, glasses, arts and crafts, designing and
selling gifts and souvenirs and other domestic commerce, materials supply
industry (excluding the franchise, the exclusive control and monopoly of
goods); importing and exporting goods and technology (excluding prohibited by
the state and special license); invest in industrial projects (specific
projects to be declared separately); business management consulting and
information (excluding securities consulting, talent intermediary services and
restrictions on the project); processing and selling gold, platinum jewelry and
jewelry crafts (limited in branch operation of Shenzhen Diamond Charm Jewelry
Ltd. Jewelry Factory).
SC is mainly
engaged in processing and selling gold and diamond ornaments.
Mr. Geng Diangui is legal representative, chairman and general
manager of SC at present.
SC is
known to have approx. 400 employees at present.
SC
is currently operating at the above stated address,
and this address houses its operating office in the industrial park of
Shenzhen. Our checks reveal that SC rents the total premise, but the gross area of the premise
is unspecific.
http://www.zuanzhiyun.com/ The design
is professional and the content is well organized. At present it is in Chinese
version.
Email: service@zuanzhiyun.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
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Shareholders and
shareholding |
Lin Zhizhi 10% Geng Diangui 90% |
Zhang Peijian 10% Geng Diangui 90% |
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Registered capital |
CNY 500,000 |
CNY 1,500,000 |
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|
CNY 1,500,000 |
CNY 3,000,000 |
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CNY 3,000,000 |
CNY 5,000,000 |
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Shareholders and
shareholding |
Zhang Peijian 10% Geng Diangui 90% |
Zhang Peijian 6% Geng Diangui 54% Zhang Ying 20% Wu Liya 20% |
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Registered capital |
CNY 5,000,000 |
CNY 10,000,000 |
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CNY 10,000,000 |
CNY 20,000,000 |
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CNY 20,000,000 |
CNY 40,000,000 |
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Shareholding |
Zhang Peijian 6% Geng Diangui 54% Zhang Ying 20% Wu Liya 20% |
Zhang Peijian 20% Geng Diangui 40% Zhang Ying 20% Wu Liya 20% |
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Registration no. |
4403012045379 |
Present one |
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Registered capital |
CNY 40,000,000 |
CNY 50,000,000 |
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CNY 50,000,000 |
Present amount |
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Shareholders and shareholding |
Zhang Peijian 20% Geng Diangui 40% Zhang Ying 20% Wu Liya 20% |
Yihe Gold Products Co., Ltd. 65% Zhang Peijian 7% Geng Diangui 14% Zhang Ying 7% Wu Liya 7% |
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Yihe Gold Products Co., Ltd. 65% Zhang Peijian 7% Geng Diangui 14% Zhang Ying 7% Wu Liya 7% |
Present ones |
SC has got the certificates of “Famous Chinese Trademark”, “China Top
Brand”, “China Gold and Silver Jewelry Famous Brand”, “China Jewelry Industry
Well-Known Brand”, etc.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Geng Diangui 40
Zhang Peijian 20
Zhang Ying 20
Wu Liya 20
Legal
Representative, Chairman
and General Manager:
Mr. Geng Diangui, born in 1960, with university education. He is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative, chairman and general manager.
Supervisor:
Lin Zhizhi
SC is mainly
engaged in processing and selling gold and diamond ornaments.
SC’s products
mainly include ornaments.
Brand: Diamond Charm
SC sources its materials 100%
from domestic market. SC sells 100% of its products in domestic market.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T and Credit of 30-60
days.
Note: SC’s management declined to release its main clients and
suppliers.
SC
is known to invest in the following company:
Shenzhen
Yinlianbao Financing Guarantee Co., Ltd.
SC is also known to have
the following processing branch:
Shenzhen Diamond Charm
Jewelry Ltd. Jewelry Factory
========================================
Add: 1-3/F, FAW Building, Building 22, No. 20, Beili
North Road, Luohu District, Shenzhen, Guangdong
Province
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.
Industrial & Commercial Bank of China Shenzhen Hongwei Sub-branch
AC#：4000021219200440543
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
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as of Dec. 31, 2010 |
as of Dec. 31, 2011 |
|
Cash & bank |
6,340 |
7,300 |
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Inventory |
160,160 |
286,830 |
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Accounts
receivable |
24,270 |
47,230 |
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Advances to
supplies |
250 |
0 |
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Other
receivables |
31,100 |
47,810 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
222,120 |
389,170 |
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Long-term
investments |
401,600 |
10,000 |
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Fixed assets net
value |
16,530 |
14,570 |
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Projects under
construction |
0 |
0 |
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Intangible
assets |
220 |
240 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
640,470 |
413,980 |
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============= |
============= |
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Short loans |
74,500 |
212,500 |
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Accounts payable |
22,350 |
5,100 |
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Advances from
customers |
0 |
0 |
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Accrued
Payroll |
1,320 |
2,190 |
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Taxes payable |
820 |
1,020 |
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Other accounts
payable |
41,760 |
0 |
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Other
current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current
liabilities |
140,750 |
220,810 |
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Long term
liabilities |
50,000 |
41,000 |
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------------------ |
------------------ |
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Total
liabilities |
190,750 |
261,810 |
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Shareholders
equities |
449,720 |
152,170 |
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------------------ |
------------------ |
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Total
liabilities & equities |
640,470 |
413,980 |
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============= |
============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2010 |
as of Dec. 31, 2011 |
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Turnover |
900,520 |
1,159,770 |
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Cost of goods
sold |
882,900 |
1,123,710 |
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Taxes
and additional of main operation |
500 |
1,270 |
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Sales expense |
-860 |
6,960 |
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Management expense |
9,280 |
12,820 |
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Finance expense |
7,880 |
15,990 |
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Investment
income |
1,940 |
0 |
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Non-operating
income |
570 |
2,720 |
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Non-operating expense |
200 |
50 |
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Profit before
tax |
3,130 |
1,690 |
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Less: profit tax |
390 |
510 |
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Net profit |
2,740 |
1,180 |
Important Ratios
=============
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as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
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*Current ratio |
1.58 |
1.76 |
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*Quick ratio |
0.44 |
0.46 |
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*Liabilities
to assets |
0.30 |
0.63 |
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*Net profit
margin (%) |
0.30 |
0.10 |
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*Return on
total assets (%) |
0.43 |
0.29 |
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*Inventory
/Turnover ×365 |
65 days
|
91 days
|
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*Accounts
receivable/Turnover ×365 |
10 days |
15 days
|
|
*Turnover/Total
assets |
1.41 |
2.80 |
|
* Cost of
goods sold/Turnover |
0.98 |
0.97 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line
in 2010 and good in 2011.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears large in both years.
l
The accounts receivable of SC is maintained in an
average level in both years.
l
The short-term loan of SC appears average in 2010
but large in 2011.
l
SC’s turnover is in an average level in both years,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low in 2010 but average in
2011.
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 inventory and short loans could be a threat to
SC’s financial condition.
DIAMOND INDUSTRY –
INDIA
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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.
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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.
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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.
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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.
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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.
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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.
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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.55.70 |
|
UK Pound |
1 |
Rs.87.55 |
|
Euro |
1 |
Rs.68.85 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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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 |
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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 |
|
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 |
|
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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.