MIRA INFORM REPORT
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Report Date : |
12.01.2012 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI DIAMERSON DIAMOND TRADING CO., LTD |
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Registered Office : |
Room 709b, Tower A, China
Diamond Exchange Centre, No. 1701 Century Avenue, Pudong New Area, Shanghai,
200120 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
24.01.2010 |
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Com. Reg. No.: |
310115001194264 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Diamond |
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No. of Employees
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10 |
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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Maximum Credit Limit : |
usd 80,000 |
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Status : |
Small Company |
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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 – September 30th, 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 & address
shanghai diamerson diamond trading co., ltd.
Room 709B, Tower A,
China Diamond Exchange Centre, NO. 1701 CENTURY avenue, PUDONG NEW AREA,
SHANGHAI, 200120 PR CHINA
TEL: 86 (0)
21-50158333-70902/61820728 Fax: 86 (0) 21-61820728/61820718
EXECUTIVE SUMMARY
INCORPORATION DATE :
january 24, 2010
REGISTRATION NO. : 310115001194264
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 15,000,000
BUSINESS LINE : trading
TURNOVER :
CNY 65,410,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 22,400,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 80,000 (periodical review)
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.3147 = 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
Note: SC’s current operating address should be “Room 709B, Tower A”, while the given office “Room 908, Tower A” was SC’s former 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 January 24, 2010.
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 diamonds and jewelry, importing and exporting goods and
technology. (with permit if needed)
SC is mainly
engaged in selling diamond.
Mr. Gao Bo has
been the legal representative and chairman of SC since 2010.
SC is known to
have approx. 10 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 is unspecified.
http://www.diamerson.com/ The design is
professional and the content is well organized. At present it is only in
Chinese version.
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang MCLON Jewellery Co., Ltd. 80
Xu Qiaofen 20
Zhejiang MCLON Jewellery Co., Ltd.
===========================
Registration No.: 330000000045009
Registered Capital: CNY 80,000,000
Chairman: Sun Songhe
Address: No. 38 Tiyu Road, Xiaoshan
District, Hangzhou, Zhejiang Province
Tel: 86 0571-82823666
Legal
Representative and Chairman:
Mr. Gao Bo, born in 1977, with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2010 to present Working
in SC as legal representative and chairman.
Also working in Shanghai Diamerson Diamond Trading Co., Ltd. Shenzhen Branch as principal.
General Manager:
Ms. Xu Fenghua, with university education, she is currently responsible
for the daily management of SC.
Working Experience(s):
From 2010 to present
Working in SC as general
manager.
Supervisor:
Yao Laichun
SC is mainly
engaged in selling diamond
SC’s products
mainly include: diamond.
SC sources its materials 100% from overseas
market. SC sells 100% of its products in domestic market, mainly Shanghai.
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 and Credit of 30-60
days.
Note:
SC’s management declined to release its major clients and suppliers.
Branch:
======
Shanghai Diamerson Diamond Trading Co., Ltd. Shenzhen Branch
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 and Commercial
Bank of China Shanghai Diamond Exchange Centre Sub-branch
AC#:
1001358109004600158
Relationship:
Normal
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2010 |
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Cash & bank |
3480 |
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Inventory |
44,220 |
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Accounts
receivable |
1,310 |
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Advances to
suppliers |
30 |
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Other
receivables |
310 |
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Dividends
receivable |
0 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
49,350 |
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Fixed assets net
value |
150 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Deferred assets |
440 |
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Other assets |
0 |
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------------------ |
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Total assets |
49,940 |
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============= |
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Short loans |
0 |
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Accounts payable |
29,800 |
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Other accounts
payable |
1,780 |
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Notes payable |
0 |
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Taxes payable |
-7,480 |
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Advances from
clients |
0 |
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Accrued payroll |
40 |
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Dividends
payable |
0 |
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Other payable |
0 |
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Other current
liabilities |
3,400 |
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------------------ |
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Current
liabilities |
27,540 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
27,540 |
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Equities |
22,400 |
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Total
liabilities & equities |
49,940 |
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Income Statement
Unit: CNY’000
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as of Dec. 31,
2010 |
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Turnover |
65,410 |
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Cost of goods
sold |
66,490 |
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Sales expense |
2,170 |
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Management expense |
1,710 |
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Finance expense |
-760 |
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Non-operating
income |
9,390 |
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Non-operating expense |
0 |
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Profit before
tax |
144,410 |
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Less: profit tax |
170 |
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Profits |
5,020 |
Important Ratios
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as
of Dec. 31, 2010 |
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*Current ratio |
1.79 |
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*Quick ratio |
0.19 |
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*Liabilities
to assets |
0.55 |
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*Net profit
margin (%) |
7.67 |
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*Return on
total assets (%) |
10.05 |
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*Inventory
/Turnover ×365 |
247days |
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*Accounts
receivable/Turnover ×365 |
8days |
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*Turnover/Total
assets |
1.31 |
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* Cost of goods
sold/Turnover |
1.02 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears average in 2010.
l
SC’s net profit margin is fairly good in 2010.
l
SC’s return on total assets is fairly good in 2010.
l
SC’s cost of goods sold is too high, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is normal in 2010.
l
SC’s quick ratio is maintained in a poor level in 2010.
l
SC’s inventory is large in 2010.
l
The accounts receivable of SC appears average in 2010.
l
SC has no
short-term loan in 2010.
l
SC’s turnover is average in 2010, 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.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
conditions. The given credit line appears to be beyond SC’s capacities, while a
credit line up to USD 80,000 is recommended upon a periodical review basis.
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
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.51.75 |
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UK Pound |
1 |
Rs.80.01 |
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Euro |
1 |
Rs.65.99 |
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.