MIRA
INFORM REPORT
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Report Date : |
25.10.2012 |
IDENTIFICATION DETAILS
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Name : |
H. K. EXPORTS SHANGHAI LTD. |
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Registered Office : |
Room A807a, No. 1701 Century Avenue, Pudong New Area Shanghai 200122 Pr |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
25.10.2007 |
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Com. Reg. No.: |
310115400234619 |
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Legal Form : |
Wholly
foreign-owned enterprise |
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Line of Business : |
Subject is engaged in diamond trading in shanghai diamond exchange |
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No. of Employees : |
5 |
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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 : |
Slow but Correct |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
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
H. K. EXPORTS
SHANGHAI LTD.
ROOM A807A, NO. 1701 CENTURY AVENUE, PUDONG NEW AREA
SHANGHAI 200122 PR CHINA
TEL: 86 (0) 21-61600228/34250221
FAX: 86 (0) 21-61600229
EXECUTIVE SUMMARY
Date of Registration : october 25, 2007
REGISTRATION NO. : 310115400234619
LEGAL FORM : Wholly foreign-owned enterprise
CHIEF EXECUTIVE :
LUNAGARIA, BHAGWANJI VIRJI (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : usd 200,000
staff :
5
BUSINESS CATEGORY : trading
Revenue :
CNY 52,994,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 2,377,000 (AS OF DEC. 31, 2011)
WEBSITE : www.diamondbyhk.com
E-MAIL :
china@diamondbyhk.com
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.25 = 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.:
310115400234619 on October 25, 2007.
SC’s Organization Code Certificate No.:
66775865-3
SC’s registered capital: usd 200,000
SC’s paid-in capital: usd 200,000
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:-
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Name of Shareholder (s) |
% of Shareholding |
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H.K.IMPEX Limited |
100 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative and Chairman |
Lunagaria, Bhagwanji Virji |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
H.K.IMPEX Limited 100
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Registration No.: 1568719
Legal Form: Private
MANAGEMENT
Lunagaria,
Bhagwanji Virji, Legal Representative and
Chairman
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Gender: M
Nationality: India
Qualification: University
Working experience (s):
From 2007 to present, working in SC as legal representative and chairman
BUSINESS OPERATION
SC’s registered business scope includes diamond trading in shanghai
diamond exchange; importing and exporting diamond.
SC is mainly engaged in diamond trading in shanghai diamond exchange.
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 L/C and Credit of 30-60 days. The payment
terms of SC include T/T and Credit of 30-60 days.
Staff &
Office:
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SC is known to have approx. 5
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED COMPANY
HARI KRISHNA EXPORTS Pvt. Ltd. (India)
H. K. INTERNATIONAL (U.S.A.)
H. K. DIAM bvba (Belgium)
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 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
Financial Summary
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Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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Inventory |
0 |
0 |
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Current assets |
3,525 |
6,599 |
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Long term investment |
0 |
0 |
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Fixed assets |
0 |
0 |
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Intangible assets |
0 |
0 |
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Total assets |
3,525 |
6,599 |
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Current liabilities |
2,477 |
4,222 |
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Non-current liabilities |
0 |
0 |
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Total liabilities |
2,477 |
4,222 |
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Equities |
1,048 |
2,377 |
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Revenue |
18,443 |
52,994 |
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Cost of sales |
20,440 |
58,723 |
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Profit before tax |
-71 |
1,654 |
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Less: profit tax |
0 |
33 |
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Profits |
-71 |
1,621 |
Note: The detailed financials for Y2010 & Y2011 are not available in
SAIC.
Important Ratios
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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*Current ratio |
1.42 |
1.56 |
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*Quick ratio |
1.42 |
1.56 |
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*Liabilities to assets |
0.70 |
0.64 |
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*Net profit margin (%) |
-0.38 |
3.06 |
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*Return on total assets (%) |
-2.01 |
24.56 |
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* Revenue/Total assets |
5.23 |
8.03 |
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* Cost of sales / Revenue |
1.11 |
1.11 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears average, and it was rising in 2011.
SC’s net profit margin is fair in 2010 and average in 2011.
SC’s return on total assets is fair in 2010 and average in 2011.
SC’s cost of sales is high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fairly good level.
SC has no inventory in both years.
SC’s revenue is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.59 |
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1 |
Rs.85.81 |
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Euro |
1 |
Rs.69.91 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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.