MIRA
INFORM REPORT
|
Report Date : |
09.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
MICROMATIC MACHINE TOOLS (SHANGHAI) CO., LTD. |
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Registered Office : |
4/F, No. 475 Fute (West) 1st Road, Waigaoqiao Free Trade
Zone Shanghai 200131 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
16.04.2007 |
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Com. Reg. No.: |
310115400221391 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Selling CNC lathe |
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No. of Employees : |
13 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China has
moved from a closed, centrally planned system to a more market-oriented one
that plays a major global role - in 2010 China became the world's largest
exporter. Reforms began with the phasing out of collectivized agriculture, and
expanded to include the gradual liberalization of prices, fiscal
decentralization, increased autonomy for state enterprises, creation of a
diversified banking system, development of stock markets, rapid growth of the
private sector, and opening to foreign trade and investment. China has
implemented reforms in a gradualist fashion. In recent years, China has renewed
its support for state-owned enterprises in sectors it considers important to
"economic security," explicitly looking to foster globally
competitive national champions. After keeping its currency tightly linked to
the US dollar for years, in July 2005 China revalued its currency by 2.1%
against the US dollar and moved to an exchange rate system that references a
basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the
renminbi against the US dollar was more than 20%, but the exchange rate
remained virtually pegged to the dollar from the onset of the global financial
crisis until June 2010, when Beijing allowed resumption of a gradual
appreciation. The restructuring of the economy and resulting efficiency gains
have contributed to a more than tenfold increase in GDP since 1978. Measured on
a purchasing power parity (PPP) basis that adjusts for price differences, China
in 2010 stood as the second-largest economy in the world after the US, having
surpassed Japan in 2001. The dollar values of China's agricultural and
industrial output each exceed those of the US; China is second to the US in the
value of services it produces. Still, per capita income is below the world
average. The Chinese government faces numerous economic challenges, including:
(a) reducing its high domestic savings rate and correspondingly low domestic
demand; (b) sustaining adequate job growth for tens of millions of migrants and
new entrants to the work force; (c) reducing corruption and other economic
crimes; and (d) containing environmental damage and social strife related to
the economy's rapid transformation. Economic development has progressed further
in coastal provinces than in the interior, and by 2011 more than 250 million
migrant workers and their dependents had relocated to urban areas to find work.
One consequence of population control policy is that China is now one of the
most rapidly aging countries in the world. Deterioration in the environment -
notably air pollution, soil erosion, and the steady fall of the water table,
especially in the North - is another long-term problem. China continues to lose
arable land because of erosion and economic development. The Chinese government
is seeking to add energy production capacity from sources other than coal and
oil, focusing on nuclear and alternative energy development. In 2010-11, China
faced high inflation resulting largely from its credit-fueled stimulus program.
Some tightening measures appear to have controlled inflation, but GDP growth
consequently slowed to near 9% for 2011. An economic slowdown in Europe is
expected to further drag Chinese growth in 2012. Debt overhang from the
stimulus program, particularly among local governments, and a property price
bubble challenge policy makers currently. The government's 12th Five-Year Plan,
adopted in March 2011, emphasizes continued economic reforms and the need to
increase domestic consumption in order to make the economy less dependent on
exports in the future. However, China has made only marginal progress toward
these rebalancing goals.
Source : CIA
Company name and address
MICROMATIC MACHINE TOOLS (SHANGHAI) CO., LTD.
4/F, NO. 475 FUTE (WEST) 1ST ROAD, WAIGAOQIAO FREE TRADE ZONE
SHANGHAI 200131 PR CHINA
TEL: 86 (0) 21-58665031/58665032
FAX: 86 (0) 21-58665033
EXECUTIVE SUMMARY
Date of Registration : april 16, 2007
REGISTRATION NO. : 310115400221391
LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
REGISTERED CAPITAL : USD 720,000
staff :
13
BUSINESS CATEGORY : trading
Revenue :
CNY 29,200,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 4,780,000 (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 6.29 = 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 wholly foreign-owned enterprise of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 310115400221391 on April 16, 2007.
SC’s Organization Code Certificate No.:
66076136-6
%20CO%20,%20LTD%20%20-%20195825%2009-Oct-2012_files/image002.jpg)
SC’s registered capital: USD 720,000
SC’s paid-in capital: USD 720,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Micromatic
Machine Tools Pvt. Ltd. (India) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Srinivas G.Shirgurkar |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Micromatic Machine Tools Pvt. Ltd. (India) 100
----------------------------------------------------
Contact: Mr. A.K. Nandan
Mobile: 9845995430
Email: mmtblr@acemicromatic.com
MANAGEMENT
Srinivas
G.Shirgurkar, Legal Representative, Chairman
and General Manager
-----------------------------------------------------------------------------------------------------
%20CO%20,%20LTD%20%20-%20195825%2009-Oct-2012_files/image004.jpg)
Ø
Gender: M
Ø
Nationality: India
Ø
Qualification:
University
Ø
Working
experience (s):
From 2007
to present, working in SC as legal representative, chairman and general manager
Mr.
Shrinivas G. Shirgurkar serves as the Managing Director at Ace Designers
Limited. He is a Co- Founder of the company. In 1970, Mr. Shirgurkar started
his career as a Machine Tool designer and in 1979 set up Ace Designers as a
partnership firm offering machine tool design consultancy.
BUSINESS OPERATION
SC’s registered business scope includes wholesaling, importing and exporting machinery, mechanical equipment,
components, assorted software, electric machinery, electrical equipment &
parts, and steel products, and its commission agency & other assorted
services; international trade & entrepot trade for CNC machinery in free
trade zone, trade & trade agency; storage & exhibition; processing
simply; and trade consulting services in free trade zone.
SC is mainly
engaged in selling CNC lathe.
SC’s products mainly include: CNC lathe.
SC sources its products
100% from overseas market, mainly India. SC sells 100% in domestic 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 and Credit of 30-60 days.
*Major Supplier:
============
Micromatic Machine
Tools Pvt. Ltd. (India)
Staff & Office:
--------------------------
SC is known
to have approx. 13 staff at
present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
n
Ace Micromatics Group
n
Machinery Emporium (1995) Co., Ltd.
2103
Moo 4 Teparak Rd., Amphur Maung Samutprakarn 10270 Thailand
Ph:
+662 710 1125 / 755 6387
Contact:
Ms.Sam / Mr. Tee Sang / Ms. Koong
Email:
teesang@machinery.co.th
mecl_marketing@machinery.co.th
Web:
www.machinery.co.th/index.php
Etc.
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’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.
BANKING
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
2,880 |
2,440 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
1,600 |
1,210 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
170 |
200 |
|
Inventory |
5,180 |
11,980 |
|
Prepaid expenses |
0 |
0 |
|
Other current
assets |
930 |
60 |
|
|
------------------ |
------------------ |
|
Current assets |
10,760 |
15,890 |
|
Fixed assets |
100 |
100 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
10 |
10 |
|
|
------------------ |
------------------ |
|
Total assets |
10,870 |
16,000 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
6,510 |
10,350 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
0 |
0 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
60 |
10 |
|
Accrued expenses |
0 |
0 |
|
Other current
liabilities |
1,060 |
860 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
7,630 |
11,220 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
7,630 |
11,220 |
|
Equities |
3,240 |
4,780 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
10,870 |
16,000 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
29,200 |
|
Cost of sales |
21,970 |
|
Sales expense |
1,790 |
|
Management expense |
3,520 |
|
Finance expense |
-330 |
|
Profit before
tax |
2,160 |
|
Less: profit tax |
560 |
|
1,600 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.41 |
1.42 |
|
*Quick ratio |
0.73 |
0.35 |
|
*Liabilities
to assets |
0.70 |
0.70 |
|
*Net profit
margin (%) |
-- |
5.48 |
|
*Return on
total assets (%) |
-- |
10.00 |
|
*Inventory /
Revenue ×365 |
-- |
150 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
16 days |
|
*
Revenue/Total assets |
-- |
1.83 |
|
* Cost of
sales / Revenue |
-- |
0.75 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears average in 2011.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is good.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears large in 2011.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans.
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 may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.21 |
|
|
1 |
Rs.84.00 |
|
Euro |
1 |
Rs.67.75 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
<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.