MIRA
INFORM REPORT
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Report Date : |
20.08.2012 |
IDENTIFICATION DETAILS
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Name : |
OCA JEWELLERY CO., LTD. |
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Registered Office : |
C Fifth Floor, Block 3, Shuibei Industrial Park No. 2135 Cuizhu North Road, Luohu Districtshenzhen, 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 : |
22.03.2004 |
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Com. Reg. No.: |
440301104605249 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Purchasing and selling of garment, watches, jewelry, gold & silver jewelry |
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No. of Employees : |
160 |
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 and address
OCA JEWELLERY CO., LTD.
C FIFTH FLOOR, BLOCK 3, SHUIBEI INDUSTRIAL PARK
NO. 2135 CUIZHU NORTH ROAD, LUOHU DISTRICTSHENZHEN, GUANGDONG PROVINCE 518020 PR CHINA
TEL: 86 (0) 755-25777937/25777877
FAX: 86 (0) 755-25777917
EXECUTIVE SUMMARY
Date of Registration : MARCH 22, 2004
REGISTRATION NO. : 440301104605249
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 16,000,000
staff :
160
BUSINESS CATEGORY : manufacturing & processing & trading
Revenue :
CNY 186,000,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 20,540,000 (AS OF DEC. 31, 2011)
WEBSITE : www.ocajewellery.com
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.37 = 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
SC was established
as a limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 440301104605249 on March 22,
2004.
SC’s Organization Code Certificate No.:
76045686-0
SC’s registered capital: CNY 16,000,000
SC’s paid-in capital: CNY 16,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Legal Representative |
Jin Liang |
Jin Honghui |
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|
Registration No. |
4403011136837 |
440301104605249 |
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Registered Capital |
CNY 8,000,000 |
CNY 16,000,000 |
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|
Shareholder (s) (% of Shareholding) |
Shanghai OCA Investment & Management Co., Ltd. 50% Shanghai OCA Economy & Trade Co., Ltd. 50% |
Bao Ziguang 9.375% Jin Liang
9.375% Shanghai OCA Investment & Management Co., Ltd. 25.000% Jin Honghui
31.250% Shanghai OCA Economy & Trade Co., Ltd. 25.000% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Bao Ziguang |
9.375 |
|
Jin Liang |
9.375 |
|
Shanghai OCA Investment & Management Co., Ltd. |
25.000 |
|
Jin Honghui |
31.250 |
|
Shanghai OCA Economy & Trade Co., Ltd. |
25.000 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Jin Honghui |
|
Supervisor |
Jin Liang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Bao Ziguang 9.375
Jin Liang 9.375
Shanghai OCA Investment & Management
Co., Ltd. 25.000
Jin Honghui 31.250
Shanghai OCA Economy & Trade Co., Ltd. 25.000
n
Shanghai OCA Investment & Management Co., Ltd.
----------------------------------------------------------------------
Registration No.: 310106000141047
Date of Registration: December 20, 2002
Legal Form: Limited Liabilities Company
Registered Capital: CNY 78,400,000
Legal Representative: Jin Liang
n
Shanghai OCA Economy & Trade Co., Ltd.
-----------------------------------------------------------
Registration No.: 310227000949430
Date of Registration: September 17, 2003
Legal Form: Limited Liabilities Company
Registered Capital: CNY 8,000,000
Legal Representative: Zheng
Congqin
MANAGEMENT
Jin Honghui , Legal Representative, Chairman, and General
Manager
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Ø
Gender: M
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman,
and general manager
Jin Liang , Supervisor
-------------------------------------
Ø
Gender: M
Ø
Working
experience (s):
At present, working in Shanghai OCA Investment &
Management Co., Ltd. as legal representative
BUSINESS OPERATION
SC’s registered
business scope includes industry development (projects need to be reported for
authorization); purchasing and selling garment, watches, jewelry, gold &
silver jewelry; other domestic commerce; supplying and selling of commodities
(excluding the products previlaged, prohibited or
franchised); economic information consulting (excluding limited items).
SC is mainly
engaged in manufacturing, processing and selling jewelry.
SC’s products
mainly include: Ring, etc.
Brand: “RC” “RIORIO”, etc.
SC sources its merchandises 100% from domestic market. SC sells 40% of its
merchandises in domestic market and 60% to overseas 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, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is known
to have approx. 160 staff at
present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
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 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.
BANKING
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
790 |
|
|
Notes receivable |
0 |
|
Accounts
receivable |
2,630 |
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Advances to
suppliers |
2,620 |
|
Other receivable |
130 |
|
Inventory |
57,400 |
|
Non-current
assets within one year |
0 |
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Other current
assets |
90 |
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|
------------------ |
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Current assets |
63,660 |
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Fixed assets |
1,310 |
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Construction in
progress |
0 |
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Intangible
assets |
0 |
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Long-term
investment |
0 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
10,510 |
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------------------ |
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Total assets |
75,480 |
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============= |
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Short-term loans |
34,820 |
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Notes payable |
0 |
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Accounts payable |
9,300 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Advances from
clients |
0 |
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Other payable |
8,910 |
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Other current
liabilities |
1,910 |
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------------------ |
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Current
liabilities |
54,940 |
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Non-current
liabilities |
0 |
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------------------ |
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Total
liabilities |
54,940 |
|
Equities |
20,540 |
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------------------ |
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Total
liabilities & equities |
75,480 |
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============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2011 |
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Revenue |
186,000 |
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Cost of sales |
164,670 |
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Sales expense |
4,890 |
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Management expense |
3,410 |
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Finance expense |
9,010 |
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Profit before
tax |
1,900 |
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Less: profit tax |
480 |
|
1,420 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
|
*Current ratio |
1.16 |
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*Quick ratio |
0.11 |
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*Liabilities to
assets |
0.73 |
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*Net profit
margin (%) |
0.76 |
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*Return on
total assets (%) |
1.88 |
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*Inventory /
Revenue ×365 |
113 days |
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*Accounts
receivable/ Revenue ×365 |
6 days |
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*
Revenue/Total assets |
2.46 |
|
* Cost of
sales / Revenue |
0.89 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue 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 sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC appears large.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear large.
l
SC’s revenue is in an average 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 inventory and short-term loans may 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.
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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.
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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 |
|
|
1 |
Rs.87.54 |
|
Euro |
1 |
Rs.68.85 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
|
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.