MIRA
INFORM REPORT
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Report Date : |
27.12.2013 |
IDENTIFICATION DETAILS
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Name : |
SHENZHEN
LOVE OF DIAMOND Co., Ltd. |
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Registered Office : |
11C, Baolin International Jewellery Trade Center, Tianbei 4th Road, Luohu District, Shenzhen, Guangdong Province, 518020 PR |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
20.07.2005 |
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Com. Reg. No.: |
440301104059835 |
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Legal Form : |
Limited
liabilities Co. |
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Line of Business : |
Subject is engaged in processing and selling gold |
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No. of Employees : |
18 |
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 |
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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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
Source
: CIA
company name and address
SHENZHEN LOVE OF DIAMOND Co., Ltd.
11C, BAOLIN
INTERNATIONAL JEWELLERY TRADE CENTER, TIANBEI 4TH ROAD, LUOHU
DISTRICT, SHENZHEN, GUANGDONG PROVINCE, 518020 PR CHINA
TEL: 86 (0)
755-25628661/25638662/13823520372
FAX: 86 (0)
755-25150096
EXECUTIVE SUMMARY
INCORPORATION DATE : july 20, 2005
REGISTRATION NO. : 440301104059835
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE : mR. ge wenxuan
(CHAIRMAN)
STAFF STRENGTH : 18
REGISTERED CAPITAL :
CNY 10,000,000
BUSINESS LINE : PROCESSING
AND trading
TURNOVER : CNY
953,710,000 (jan. 1 to oct. 31, 2013)
EQUITIES : CNY
6,070,000 (AS OF Oct. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : fair
FINANCIAL CONDITION : fair
OPERATIONAL TREND :
fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.07 = 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: The given name (HONGKONG LOVE OF DIAMOND INTL GROUP LIMITED) is SC’s trading name, and it also belongs to SC’s related company in Hong Kong, which is dissolved by Striking Off (s.291).
SC was registered as a limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on July 20, 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 hydraulic gold; processing
platinum, K gold; diamonds, gemstones, jewelry inlaid; selling jewelry, pearl
jewelry, packaging materials and domestic business, material supply and
marketing industry (excluding franchise, the control and monopoly of goods),
importing and exporting goods and technology. (excluding laws and
administrative regulations, the State Council decided the project to approval
before registration)
According to SC’s accountant Ms. Wang, SC was mainly engaged in processing and selling gold, but SC has temporarily ceased production since July of 2013, and operation is expected to be carried out in 2014.
Mr. Ge Wenxuan is legal representative, chairman and general manager of SC at present.
SC is known to have approx. 18 employees at present, and SC will recruit more workers after normal operation resumed in Yr2014.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Shenzhen. SC’s management declined to release detailed information of the premise.
SC’s factory is located in South of 8 Floor, Building 23, Shatoujiao Free Trade Zone, Yantian District, Shenzhen, Guangdong Province
http://www.hkzzl.com.cn The website belongs to HongKong Love Of Diamond Int'l Group Limited. The design is professional and the content is well organized. At present it is in Chinese and English versions.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2009-6-5 |
Registration no. |
4403012182939 |
Present one |
|
2012-7-3 |
Registered capital |
CNY 1,000,000 |
Present amount |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wang Qinglan 40
Ge Wenxuan 60
Legal Representative, Chairman and General Manager:
Mr. Ge Wenxuan is currently responsible for the overall and daily management of SC.
Working Experience(s):
At present Working in SC as legal representative, chairman and general manager.
Supervisor:
Wang Qinglan
According to SC’s accountant Ms. Wang, SC was mainly engaged in processing and selling gold, but SC has temporarily ceased its business since July of 2013, and will operations will be carried out in 2014.
Hongkong Love of Diamond Int'l Group Limited
====================================
Incorporation date:
Registration no.: 0976589
Legal form: Private
Status: Dissolved by Striking Off (s.291)
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.
China Everbright Bank Shenzhen Bagualing Sub-branch
AC#：38980188000171493
Relationship: Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
as of Oct. 31, 2013 |
|
Cash & bank |
220 |
810 |
|
Inventory |
8,040 |
224,280 |
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Accounts receivable |
175,640 |
224,350 |
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Advances to suppliers |
3,290 |
2,590 |
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Other receivables |
3,440 |
70,720 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
190,630 |
522,750 |
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Long-term investments |
0 |
0 |
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Fixed assets net value |
170 |
170 |
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Projects under construction |
0 |
0 |
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Intangible assets |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
190,800 |
522,920 |
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============= |
============= |
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Short loans |
0 |
15,000 |
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Accounts payable |
181,530 |
447,310 |
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Advances from customers |
0 |
0 |
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Accrued payroll |
0 |
/ |
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Welfare payable |
0 |
/ |
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Taxes payable |
0 |
-450 |
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Other accounts payable |
0 |
54,540 |
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Other current liabilities |
0 |
/ |
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----------------- |
----------------- |
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Current liabilities |
181,530 |
516,850 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
181,530 |
516,850 |
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Shareholders equities |
9,270 |
6,070 |
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------------------ |
------------------ |
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Total liabilities & equities |
190,800 |
522,920 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
Jan. 1 to Oct. 31, 2013 |
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Turnover |
953,710 |
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Cost of goods sold |
966,330 |
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Taxes and additional of main operation |
0 |
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Sales expense |
0 |
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Management expense |
940 |
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Finance expense |
10,490 |
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Profit before tax |
-3,070 |
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Less: profit tax |
10 |
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Net profit |
-3,080 |
Important Ratios
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|
|
As of Dec. 31, 2012 |
As of Oct. 31, 2013 |
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*Current ratio |
1.05 |
1.01 |
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*Quick ratio |
1.01 |
0.58 |
|
*Liabilities to assets |
0.95 |
0.99 |
|
*Net profit margin (%) |
/ |
-0.32 |
|
*Return on total assets (%) |
/ |
-0.59 |
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*Inventory /Turnover ×365 |
/ |
/ |
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*Accounts receivable/Turnover ×365 |
/ |
/ |
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*Turnover/Total assets |
/ |
1.82 |
|
* Cost of goods sold/Turnover |
/ |
1.01 |
PROFITABILITY: FAIR
The turnover of SC appears fairly good in its line from Jan. 1 to Oct. 31, 2013.
SC’s net profit margin is fair from Jan. 1 to Oct. 31, 2013.
SC’s return on total assets is fair from Jan. 1 to Oct. 31, 2013.
SC’s cost of goods sold is too high from Jan. 1 to Oct. 31, 2013, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a normal level in 2012 but fair from Jan. 1 to Oct. 31, 2013.
The inventory of SC is average in 2012 but fairly large from Jan. 1 to Oct. 31, 2013.
The accounts receivable of SC is fairly large.
The short-term loan is large from Jan. 1 to Oct. 31, 2013
SC’s turnover is in an average level from Jan. 1 to Oct. 31, 2013, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
The risk for SC to go bankrupt is fairly high.
Overall financial condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions. SC has temporarily ceased operation since July of 2013, caution need to be exercised for coming into any credit dealings consideration.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.98 |
|
|
1 |
Rs.101.49 |
|
Euro |
1 |
Rs.84.79 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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 |
|
<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.