MIRA
INFORM REPORT
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Report Date : |
23.04.2013 |
IDENTIFICATION DETAILS
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Name : |
TOWA DENKI (SHANGHAI) CO., LTD. |
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Registered Office : |
Room 1403 Shanghai
International Trade Centre, No.
2201 Yanan (W) Road, Shanghai 200336 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
15.07.2002 |
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Com. Reg. No.: |
310115400099097 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
International Trade |
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No. of Employees : |
17 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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 2012 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 under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
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.
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Source : CIA |
Company name & address
Towa Denki (Shanghai) Co., Ltd.
room
1403 Shanghai International Trade Centre
no. 2201
yanan (w) road, SHANGHAI 200336 PR CHINA
TEL: 86
(0) 21-62091848
FAX: 86
(0) 21-62091853
EXECUTIVE SUMMARY
Date of Registration : july 15, 2002
REGISTRATION NO. : 310115400099097
LEGAL FORM : Wholly foreign-owned enterprise
REGISTERED CAPITAL : USD 200,000
staff : 17
BUSINESS CATEGORY : TRADING
Revenue : CNY 185,881,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 14,960,000 (AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : fairLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.18 = 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
LEGAL
STATUS & HISTORY
SC was
established as a wholly foreign-owned enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 310115400099097 on July 15,
2002.
SC’s Organization Code Certificate
No.: 74115521-0
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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:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Towa Denki Co., Ltd. (Japan) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Takeichi
Fujimine |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Towa Denki Co., Ltd. (Japan) 100
---------------------------------------------
|
Corporate
name |
Towa
Denki Company Limited |
|
Representative |
Shinichi
Fujimine |
|
Head
office |
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Established |
February
1946 |
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Capital |
301
million Yen |
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Number of employees |
153
as of April 2012 |
|
Banks |
Tokyo Mitsubishi UFJ Bank, Ginza branch/ Risona
Bank, Toranomon branch/ Sumitomo Mitsui Bank, Hibiya branch/ Mizuho Bank,
Shinbashi branch |
|
Business activities |
Sale of electric, electronic, chemical and metal
materials |
Web: www.towadenki.co.jp
MANAGEMENT
Takeichi
Fujimine, Legal Representative,
Chairman, and General Manager
----------------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality:
Japan
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman, and general manager
Also working in Towa Denki Co., Ltd. (Japan) as representative
BUSINESS
OPERATION
SC’s registered business scope
includes international trade, transit trade, trade and trade agency in free trade zone,
commercially simple processing and commodity exhibition; trade consulting
services; wholesaling chemical products, liquid paraffin, plastic products,
rubber products, electrical equipment and parts, commission agency, import
& export business, and other assorted business.
SC is
mainly engaged in international trade.
SC’s
products mainly include: electronic components, electronic materials, etc.
SC sources its products 30% from domestic
market, and 70% from overseas market, mainly Japan. SC sells 35% of its
products in domestic market, and 65% to overseas market.
The
buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms
of SC include T/T, L/C and Credit of 30-60 days.
*Major
Supplier*
-------------------
Towa Denki
Co., Ltd. (Japan)
Staff & Office:
--------------------------
SC is
known to have approx. 17 staff
at present.
SC
rents an area as its operating office, but the detailed information is unknown.
RELATED
COMPANY
· Towa Denki Trading (S) Pte. Ltd.
Towa
Denki (H.K) Co., Ltd.
Towa
Denki (Thai) Co., Ltd.
Towa
Denki Vietnam Co., Ltd.
T.T.T.I.
Co., Ltd.
Towa
Denki Taiwan Sirius Corp.
Korea
Towa Trading Co., Ltd.
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
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Current assets |
52,678 |
53,044 |
|
Long term investment |
0 |
0 |
|
Fixed assets |
172 |
117 |
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Intangible
assets |
9 |
6 |
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|
------------- |
------------- |
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Total assets |
52,859 |
53,167 |
|
|
------------- |
------------- |
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Current
liabilities |
39,536 |
38,207 |
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Long term liabilities |
0 |
0 |
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|
------------- |
------------- |
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Total
liabilities |
39,536 |
38,207 |
|
Equities |
13,323 |
14,960 |
|
|
------------- |
------------- |
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Revenue |
200,704 |
185,881 |
|
Cost of sales |
184,083 |
168,655 |
|
Profit before
tax |
3,364 |
6,582 |
|
Less: profit tax |
808 |
1,891 |
|
Profits |
2,556 |
4,691 |
Note: The detailed financials for Y2011 and Y2012 are not available in
SAIC.
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.33 |
1.39 |
|
*Liabilities
to assets |
0.75 |
0.72 |
|
*Net profit
margin (%) |
1.27 |
2.52 |
|
*Return on
total assets (%) |
4.84 |
8.82 |
|
*Revenue /
Total assets |
3.80 |
3.50 |
|
*Cost of sales
/ Revenue |
0.92 |
0.91 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears
fairly good in its line, and it decreased in 2012.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY:
AVERAGE
l
SC’s revenue is in an
average good 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 Good.
CONCLUSIONS
SC is considered small-sized in its line with fairly
good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.17 |
|
UK Pound |
1 |
Rs.82.45 |
|
Euro |
1 |
Rs.70.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
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 |
|
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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.