MIRA
INFORM REPORT
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Report Date : |
22.02.2013 |
IDENTIFICATION DETAILS
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Name : |
Tianjin Shimro Musical Instruments Co., Ltd. |
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Registered Office : |
Wuqing
Development Area, New Technology Industrial Park, Tianjin 301726 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.05.1995 |
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Com. Reg. No.: |
120000400074184 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing and selling
musical instruments and related products. |
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No. of Employees : |
102 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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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 : |
Regular |
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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 (31.03.2012) |
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.
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Source : CIA |
Company name and address
Tianjin Shimro Musical Instruments Co., Ltd.
wuqing development AREA, new technology industrial
park
tianjin 301726 PR CHINA
TEL: 86 (0) 22-82123242
FAX: 86 (0) 22-82123243
EXECUTIVE SUMMARY
Date of
Registration : may 12, 1995
REGISTRATION
NO. : 120000400074184
LEGAL
FORM : Wholly foreign-owned enterprise
REGISTERED
CAPITAL :
usd 1,300,000
staff : 102
BUSINESS
CATEGORY :
MANUFACTURING
Revenue : CNY 14,500,000 (AS OF
DEC. 31, 2012)
EQUITIES : CNY 16,900,000 (AS OF DEC. 31, 2012)
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 6.23 = USD
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
***Note: The given telephone No. (822-544-9924) belongs to SC’s parent company.
SC was
established as a wholly foreign-owned enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 120000400074184 on May 12, 1995.
SC’s
Organization Code Certificate No.: 60054439-4
SC’s
registered capital: usd 1,300,000
SC’s
paid-in capital: usd 1,300,000
Registration
Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
-- |
Registration No. |
008079 |
120000400074184 |
Current
Co search indicates SC’s shareholders & chief executives are as follows:-
|
Name
of Shareholder (s) |
% of
Shareholding |
|
Shimro
Musical Instruments Co., Ltd. (Korea) |
100 |
SC’s
Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman, and General Manager |
Shen Zaiye |
RECENT DEVELOPMENT
No recent development was found
during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name
%
of Shareholding
Shimro Musical Instruments Co., Ltd.
(Korea)
100
-----------------------------
Address:
701-5, Banpo 1-dong Seocho-gu Seoul 137-041 Korea
Tel:
82-2-5449934
Fax:
82-2-5449924
Web: www.shimro.com
MANAGEMENT
Shen Zaiye, Legal
Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: Korea
Ø
Working experience (s):
At present, working in SC as legal
representative, chairman and general manager
BUSINESS OPERATION
SC’s
registered business scope includes manufacturing and selling musical
instruments and related products.
SC is mainly engaged in manufacturing and selling musical
instruments.
Brand: Shimro
SC’s products mainly include: Violin, Viola, Cello,
Contrabass, Mandolin and Ukulele.
SC sources its materials 100% from domestic market. SC sells 100% of its products to overseas market, mainly U.S.A., Europe, etc.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include L/C and Credit of 30-60 days.
*Major Customers:
==============
National Educational Music Company
Conn-Selmer, Inc.
Staff
& Office:
--------------------------
SC is known to have approx. 102 staff at present.
SC rents an area as its operating office and factory, but
the detailed information is unknown.
RELATED COMPANY
SC is not known to have any subsidiary at present.
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
Balance
Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
360 |
660 |
|
|
Notes
receivable |
0 |
0 |
|
Accounts receivable |
2,000 |
1,280 |
|
Advances to suppliers |
0 |
0 |
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Other receivable |
20 |
0 |
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Inventory |
9,070 |
9,470 |
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Non-current assets within one year |
0 |
0 |
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Other current assets |
870 |
160 |
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|
------------------ |
------------------ |
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Current assets |
12,320 |
11,570 |
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Fixed assets |
4,310 |
3,900 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
2,790 |
2,690 |
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|
------------------ |
------------------ |
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Total assets |
19,420 |
18,160 |
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|
============= |
============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
1,840 |
1,010 |
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Wages payable |
290 |
250 |
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Other payable |
0 |
20 |
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Other current liabilities |
-80 |
-20 |
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|
------------------ |
------------------ |
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Current liabilities |
2,050 |
1,260 |
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Non-current liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total liabilities |
2,050 |
1,260 |
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Equities |
17,370 |
16,900 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
19,420 |
18,160 |
|
|
============= |
============= |
Income
Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
|
Revenue |
14,500 |
|
Cost
of sales |
12,170 |
|
Sales expense |
490 |
|
Management expense |
2,070 |
|
Finance expense |
60 |
|
Profit before tax |
-470 |
|
Less: profit tax |
0 |
|
-470 |
Important Ratios
=============
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
6.01 |
9.18 |
|
*Quick ratio |
1.59 |
1.67 |
|
*Liabilities to assets |
0.11 |
0.07 |
|
*Net profit margin (%) |
-- |
-3.24 |
|
*Return on total assets (%) |
-- |
-2.59 |
|
*Inventory / Revenue ×365 |
-- |
239
days |
|
*Accounts receivable/ Revenue ×365 |
-- |
33
days |
|
* Revenue/Total assets |
-- |
0.80 |
|
* Cost of sales / Revenue |
-- |
0.84 |
FINANCIAL COMMENTS
PROFITABILITY: FAIR
l
The revenue of SC appears average in
its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of sales is average, comparing
with its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained
in a good level.
l
SC’s quick ratio is maintained in a
fairly good level.
l
The inventory of SC appears large.
l
The accounts receivable of SC is maintained
in an average level.
l
SC has no short-term loans in both
years.
l
SC’s revenue is in a fair level,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is
average.
Overall financial condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-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.54.48 |
|
|
1 |
Rs.82.71 |
|
Euro |
1 |
Rs.72.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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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 |
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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 |
|
-- |
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.