MIRA
INFORM REPORT
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Report Date : |
18.02.2012 |
IDENTIFICATION DETAILS
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Name : |
GAP (SHANGHAI) COMMERCIAL CO., LTD. |
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Registered Office : |
4/F, Building 6, No. 800 Changde Road, Jing’an District, Shanghai,
200041 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
10.06.2010 |
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Com. Reg. No.: |
310000400623552 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Mainly Engaged in Selling Clothing, Apparel and so on |
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No. of Employees : |
100 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Poor |
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Payment Behaviour : |
Unknown |
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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 – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 and address
GAP (SHANGHAI) COMMERCIAL CO., LTD.
4/F, BUILDING 6, NO. 800 CHANGDE ROAD, JING’AN DISTRICT, SHANGHAI,
200041 PR CHINA
TEL: 86 (0) 21-60934300
FAX: 86 (0) 21-60934311
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 10, 2010
REGISTRATION NO. :
310000400623552
REGISTERED LEGAL FORM : Wholly
foreign-owned enterprise
CHIEF EXECUTIVE :
MR. YANG DEMING (CHAIRMAN)
STAFF STRENGTH :
100
REGISTERED CAPITAL : USD 19,000,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 43,811,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY -22,973,000 (AS OF DEC. 31, 2010)
PAYMENT :
UNKNOWN
RECOMM. CREDIT RANGE : C.O.D.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.30 = 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
%20COMMERCIAL%20CO%20,%20LTD%20%20-%20169306%2018-Feb-2012_files/image013.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 June 10, 2010.
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 clothing, apparel, footwear,
perfume, cosmetics, hosiery, luggage, home decor, jewelry, toys, children's
supplies, baby stroller, daily necessities, stationery, tableware, household
cleaning supplies, furniture, retail, wholesale, commission agency (excluding
auction), import, export and ancillary services; the above commodity-related
consulting, product design, maintenance service, business management
consulting, investment consulting. (with permit if needed)
SC is mainly engaged in selling clothing, apparel and so on.
Mr. Yang Deming has been the legal representative, chairman and general
manager of SC since 2010.
SC is known to have approx. 100 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. SC’s management
declined to release the detailed information of the premise.
%20COMMERCIAL%20CO%20,%20LTD%20%20-%20169306%2018-Feb-2012_files/image014.gif){kind=small}
SC is not known to host website of its own at present.
%20COMMERCIAL%20CO%20,%20LTD%20%20-%20169306%2018-Feb-2012_files/image015.gif){kind=small}
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2011-3 |
Registered capital |
USD 12,000,000 |
USD 19,000,000 |
%20COMMERCIAL%20CO%20,%20LTD%20%20-%20169306%2018-Feb-2012_files/image016.gif){kind=small}
MAIN SHAREHOLDERS:
Name %
of Shareholding
The Gap, Inc. (U.S.A.) 100
Website: http://www.gapinc.com/
%20COMMERCIAL%20CO%20,%20LTD%20%20-%20169306%2018-Feb-2012_files/image017.gif){kind=small}
Legal Representative, Chairman and General manager:
Mr. Yang Deming is currently responsible for the overall management of
SC.
Working Experience(s):
From 2010 to present Working in SC as legal representative, chairman and
general manager;
Also working in Gap (Beijing) Commercial Co., Ltd. as legal
representative, working in Gap (Shanghai) Commercial Co., Ltd. Hongkou Branch,
Gap (Shanghai) Commercial Co., Ltd. Hongyi International Plaza Branch, Gap
(Shanghai) Commercial Co., Ltd. Huashan Road Branch, Gap (Shanghai) Commercial
Co., Ltd. Jing’an Branch as principal
%20COMMERCIAL%20CO%20,%20LTD%20%20-%20169306%2018-Feb-2012_files/image018.gif){kind=small}
SC is mainly engaged in selling clothing, apparel and so on.
SC’s products mainly include clothing, apparel, footwear, etc.
SC sources its materials and products 20% from domestic market, and 80%
from overseas market, mainly America. SC sells 70% of its products in domestic
market, and 30% to overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Major supplier:
…………………
Gap International Sourcing Inc.
Major client:
……………..
Gap (Beijing) Commercial Co., Ltd.
%20COMMERCIAL%20CO%20,%20LTD%20%20-%20169306%2018-Feb-2012_files/image019.gif){kind=small}
Gap (Beijing) Commercial Co., Ltd.
Branches:
=======
Gap (Shanghai) Commercial Co., Ltd. Hongkou Branch
Gap (Shanghai) Commercial Co., Ltd. Hongyi International Plaza Branch
Gap (Shanghai) Commercial Co., Ltd. Huashan Road Branch
Gap (Shanghai) Commercial Co., Ltd. Jing’an Branch
Etc.
%20COMMERCIAL%20CO%20,%20LTD%20%20-%20169306%2018-Feb-2012_files/image020.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’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.
%20COMMERCIAL%20CO%20,%20LTD%20%20-%20169306%2018-Feb-2012_files/image021.gif){kind=small}
The bank information is not found in local AIC.
%20COMMERCIAL%20CO%20,%20LTD%20%20-%20169306%2018-Feb-2012_files/image022.gif){kind=small}
Balance Sheet
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Unit: CNY’000 |
as
of Dec. 31, 2010 |
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Cash & bank |
114,978 |
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Inventory |
60,289 |
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Accounts receivable |
22,837 |
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Advances to suppliers |
1,191 |
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Other accounts receivable |
38,959 |
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Other current assets |
103 |
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------------------ |
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Current assets |
238,357 |
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Fixed assets net value |
72,250 |
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Projects under construction |
7,050 |
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Long term investment |
0 |
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Other non-current assets |
0 |
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------------------ |
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Total assets |
317,657 |
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============= |
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Short loans |
117,341 |
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Accounts payable |
74,107 |
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Advances from clients |
0 |
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Other accounts payable |
82,427 |
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Salaries payable |
8,181 |
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Welfare payable |
2,607 |
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Tax payable |
-2,954 |
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Other current liabilities |
23,927 |
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------------------ |
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Current liabilities |
305,636 |
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Long term liabilities |
34,994 |
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------------------ |
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Total liabilities |
340,630 |
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Equities |
-22,973 |
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------------------ |
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Total liabilities & equities |
317,657 |
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============= |
Income Statement
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Unit: CNY’000 |
as of Dec. 31, 2010 |
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Turnover |
43,811 |
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Cost of goods sold |
28,300 |
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Add: Income from other operations |
1,446 |
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Sales expense |
112,753 |
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Management expense |
5,915 |
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Finance expense |
3,989 |
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Non-operating income |
0 |
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Non-operating expenses |
420 |
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Other income |
69 |
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Profit before tax |
-106,051 |
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Less: profit tax |
0 |
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Profits |
-106,051 |
Important Ratios
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as of Dec. 31, 2010 |
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*Current ratio |
0.78 |
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*Quick ratio |
0.58 |
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*Liabilities to assets |
1.07 |
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*Net profit margin (%) |
-242.06 |
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*Return on total assets (%) |
-33.39 |
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*Inventory /Turnover ×365 |
502 days |
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*Accounts receivable/Turnover ×365 |
190 days |
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*Turnover/Total assets |
0.14 |
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* Cost of goods sold/Turnover |
0.65 |
%20COMMERCIAL%20CO%20,%20LTD%20%20-%20169306%2018-Feb-2012_files/image023.gif){kind=small}
PROFITABILITY:
POOR
The turnover of SC appears average.
SC’s net profit margin is poor.
SC’s return on total assets is poor.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears fairly large.
The accounts receivable of SC appears fairly large.
The short-term loan of SC appears large.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: POOR
The debt ratio of SC is too high.
The risk for SC to go bankrupt is fairly high.
Overall financial condition of the SC: Fair.
%20COMMERCIAL%20CO%20,%20LTD%20%20-%20169306%2018-Feb-2012_files/image024.gif){kind=small}
SC is considered medium-sized in its line with fair financial
conditions. The large amount of short-term loan could be a threat to SC’s financial
condition. Great caution is required in providing credit to SC & C.O.D. is
recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.21 |
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|
1 |
Rs.77.75 |
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Euro |
1 |
Rs.64.58 |
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.