MIRA
INFORM REPORT
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Report Date : |
14.03.2012 |
IDENTIFICATION DETAILS
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Name : |
SHENZHEN ZHOUTAFU JEWELRY LIMITED |
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Registered Office : |
Second Floor, Block 5, Shuibei Industrial Park, 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 : |
28.04.2004 |
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Com. Reg. No.: |
440301103413351 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and processing gold, platinum, palladium, K gold, silver jewelry |
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No. of Employees : |
144 |
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 – September 30, 2011
|
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 ANDA DDRESS
SHENZHEN ZHOUTAFU JEWELRY LIMITED
SECOND FLOOR, BLOCK 5, SHUIBEI INDUSTRIAL PARK, SHENZHEN
GUANGDONG PROVINCE 518020 PR CHINA
TEL: 86 (0) 755-25607666-808
FAX: 86 (0) 755-25177470
EXECUTIVE SUMMARY
Date of Registration : april 28, 2004
REGISTRATION NO. : 440301103413351
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 10,000,000
staff :
144
BUSINESS CATEGORY : processing
Revenue :
CNY 69,710,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 10,200,000 (AS OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly
stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.32 = 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
***Note: SC’s
name should be the above stated one, while the given name (Zhouliufu Jewellery) is the trade name.
SC was established
as a limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 440301103413351 on April 28, 2004.
SC’s Organization Code Certificate No.:
76195725-3
SC’s registered capital: cny 10,000,000
SC’s paid-in capital: cny 10,000,000
Registration Change Record:
|
Date |
Change of Contents |
Before the change |
After the change |
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Shareholder (s) (% of Shareholding) |
Chen Chuangjin50% Li Weipeng50% |
Li Weizhu50% Li Weipeng50% |
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|
Legal Representative |
Li Weipeng |
Zhou Zhenrun |
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|
Legal Representative |
Zhou Zhenrun |
Li Weipeng |
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Registration No. |
4403012140796 |
440301103413351 |
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Registered Capital |
CNY 1,000,000 |
cny 10,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Li Weizhu |
50 |
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Li Weipeng |
50 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Li Weipeng |
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Supervisor |
Li Weizhu |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Li Weizhu 50
Li Weipeng 50
MANAGEMENT
Li Weipeng , Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present,
working in SC as legal representative, chairman and general manager
Li Weizhu ,
Supervisor
-----------------------------------------
Ø
Gender: M
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
and processing gold, platinum, palladium, K gold, silver jewelry and jewelry
inlaid jewelry; purchasing and selling jade jewelry, aluminum products,
platinum inlaid jewelry, diamond inlaid jewelry, jade jewelry, importing and
exporting various goods and technology.
SC is mainly
engaged in manufacturing and processing gold,
platinum, palladium, K gold, silver jewelry.
Brand: Zhouliufu
SC’s products
mainly include: gold, silver, jewelry
SC sources its materials 100% from domestic market,
mainly Shenzhen. SC sells 80% of its products in domestic market, and 20% to
overseas market, mainly Hong Kong.
The buying terms
of SC include T/T and Credit of 30-60 days. The payment terms of SC include
T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is known
to have approx. 144 staff at
present.
SC rents an area
as its operating office & factory of approx. 2,000 sq. meters at the
heading address.
RELATED COMPANY
SC is known to have two
branches at present:
n
Shenzhen Zhoutafu Jewelry Limited Xili Branch
n
Shenzhen Zhoutafu Jewelry Limited Cuizhu Branch
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 records 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 SAIC.
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2011 |
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4,350 |
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Accounts
receivable |
8,020 |
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Advances to
suppliers |
0 |
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Other receivable |
2,050 |
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Inventory |
114,990 |
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Non-current
assets within one year |
0 |
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Other current
assets |
330 |
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------------------ |
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Current assets |
129,740 |
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Fixed assets |
360 |
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Construction in
progress |
0 |
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Long-term
prepaid expenses |
0 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
880 |
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------------------ |
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Total assets |
130,980 |
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============= |
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Short-term loans |
64,180 |
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Notes payable |
0 |
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Accounts payable |
-130 |
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Wages payable |
0 |
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Advances from
clients |
0 |
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Other payable |
61,630 |
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Other current
liabilities |
-4,900 |
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------------------ |
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Current
liabilities |
120,780 |
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Non-current
liabilities |
0 |
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------------------ |
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Total
liabilities |
120,780 |
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Equities |
10,200 |
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------------------ |
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Total
liabilities & equities |
130,980 |
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============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
69,710 |
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Cost of sales |
63,780 |
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Sales expense |
710 |
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Management expense |
2,190 |
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Finance expense |
2,870 |
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Profit before
tax |
100 |
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Less: profit tax |
30 |
|
70 |
Important Ratios
=============
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As
of Dec. 31, 2011 |
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*Current ratio |
1.07 |
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*Quick ratio |
0.12 |
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*Liabilities
to assets |
0.92 |
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*Net profit
margin (%) |
0.10 |
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*Return on
total assets (%) |
0.05 |
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*Inventory /
Revenue ×365 |
603 days |
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*Accounts
receivable/ Revenue ×365 |
42 days |
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*
Revenue/Total assets |
0.53 |
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* Cost of
sales / Revenue |
0.91 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears average 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 fairly high, comparing with
its revenue.
LIQUIDITY: FAIR
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 a fair level, comparing with the
size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-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. A credit line up to USD 50,000 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.84 |
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|
1 |
Rs.77.97 |
|
Euro |
1 |
Rs.65.61 |
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 |
|
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 |
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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 |
-- |
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.