MIRA
INFORM REPORT
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Report Date : |
15.03.2012 |
IDENTIFICATION DETAILS
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Correct Name : |
Shenzhen
MATIS Jewelry Co., Ltd. |
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Registered Office : |
East 1/F, Bldg. 12 Factory, Teli Industrial Zone, No. 54,
Shuibei Second 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 : |
01.06.2005 |
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Com. Reg. No.: |
440301103138889 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling Jewellery. |
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No. of Employees : |
70 |
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 : |
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 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
Shenzhen MATIS Jewelry Co., Ltd.
East 1/F, bldg. 12 factory, teli
industrial zone,
no. 54, shuibei second road, luohu
district,
SHENZHEN, GUANGDONG PROVINCE,
518020 PR CHINA
TEL: 86 (0) 755-25618277
FAX: 86 (0) 755-25633979
EXECUTIVE SUMMARY
INCORPORATION DATE : june 1, 2005
REGISTRATION NO. :
440301103138889
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 70
REGISTERED CAPITAL :
CNY 1,000,000
BUSINESS LINE : MANUFACTURING &
processing
TURNOVER : CNY 30,000,000 (UNaudited, AS OF DEC. 31, 2011)
EQUITIES : CNY 1,210,000 (UNaudited, AS OF DEC. 31, 2011)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.34 = 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 complete name and address
should be the heading ones.
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 June 1, 2005.
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 design, processing, manufacturing and selling
jewellery, gold and silver jewelry, platinum jewelry, diamond jewelry, jewelry, crafts, gifts; domestic commerce; supplying and
selling of commodities (excluding the products privileged, prohibited or
franchised).
SC is mainly
engaged in processing, manufacturing and selling jewellery.
Mr.
Tu Xingcai is legal representative, chairman and general manager of SC at
present.
SC is known to have approx. 70 employees at
present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Shenzhen. Our checks reveal that SC rents the total premise, but SC’s accountant refused to release the gross area of the premise.
http://www.cnmatis.com The design
is professional and the content is well organized. At present it is in both
Chinese and English versions.
Email: cnmatis@cnmatis.com sum@cnmatis.com
SC’s former registration no. was 4403012177928, and in Jan. of
2008, it was changed to the present one.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Tu Baozhu 10
Tu Xingcai
70
Chen Jinyi 20
l
Legal representative, Chairman and General manager:
Mr. Tu Xingcai, in his
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
SC is mainly
engaged in processing, manufacturing and selling jewellery.
SC’s products mainly
include: pearl rings, pearl pendant for necklace, ear clips, rope, brooch,
laser beads, circle beads, etc.
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 customer and supplier details.
SC is not known to have any subsidiary at present.
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.
SC’s management
declined to release its bank details.
Balance Sheet (as of Dec. 31, 2011)
Unit: CNY’000
|
Cash & bank |
2,480 |
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Inventory |
340 |
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Accounts
receivable |
590 |
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Advances to
suppliers |
3,640 |
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Other
receivables |
10 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
7,060 |
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Fixed assets net
value |
10 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
160 |
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------------------ |
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Total assets |
7,230 |
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============= |
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Short loans |
0 |
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Accounts payable |
0 |
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Other payable |
0 |
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Taxes payable |
10 |
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Advances from
clients |
-470 |
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Accrued payroll |
240 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
-220 |
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Long term
liabilities |
6,240 |
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------------------ |
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Total
liabilities |
6,020 |
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Equities |
1,210 |
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------------------ |
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Total liabilities
& equities |
7,230 |
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============= |
Income Statement (as of Dec. 31, 2011)
Unit: CNY’000
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Turnover |
30,000 |
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Cost of goods
sold |
28,090 |
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Sales expense |
160 |
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Management expense |
1,100 |
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Finance expense |
440 |
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Profit before
tax |
120 |
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Less: profit tax |
70 |
|
Profits |
50 |
Note:
The above financial records have not been audited.
Important Ratios
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as
of Dec. 31, 2011 |
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*Current ratio |
/ |
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*Quick ratio |
/ |
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*Liabilities
to assets |
0.83 |
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*Net profit
margin (%) |
0.17 |
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*Return on
total assets (%) |
0.69 |
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*Inventory
/Turnover ×365 |
5 days |
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*Accounts
receivable/Turnover ×365 |
8 days |
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*Turnover/Total
assets |
4.15 |
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* Cost of goods
sold/Turnover |
0.94 |
PROFITABILITY:
AVERAGE
l
The turnover 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 goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: AVERAGE
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loan
in 2011.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
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. A credit line up to USD 10,000 appears to be within SC’s
capacities.
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.49.90 |
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|
1 |
Rs.78.14 |
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Euro |
1 |
Rs.65.08 |
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 |
-- |
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.