MIRA
INFORM REPORT
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Report Date : |
20.06.2013 |
IDENTIFICATION DETAILS
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Name : |
SNECMA SUZHOU CO., LTD. |
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Registered Office : |
No. 70 Qiming Road, B Area Of Export Processing Zone, Suzhou Industrial Park District, Jiangsu Province 215126 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
28.12.2005 |
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Com. Reg. No.: |
320594400014038 |
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Legal Form : |
Wholly Foreign Owned Enterprise |
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Line of Business : |
Manufacturing, processing and selling aero plane engines and parts. |
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No. of Employees : |
300 |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
SNECMA SUZHOU CO.,
LTD.
NO. 70 QIMING ROAD, B AREA OF EXPORT
PROCESSING ZONE,
SUZHOU INDUSTRIAL PARK DISTRICT, JIANGSU
PROVINCE 215126 PR CHINA
TEL: 86 (0) 512-62601860
FAX: 86 (0)
512-62601853/62601852
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 28, 2005
REGISTRATION NO. : 320594400014038
REGISTERED LEGAL FORM : WHOLLY FOREIGN OWNED
ENTERPRISE
STAFF STRENGTH :
300
REGISTERED CAPITAL : USD 13,500,000
BUSINESS LINE :
MANUFACTURING & processing
TURNOVER :
cny 178,760,000 (AS OF DEC. 31, 2012)
EQUITIES :
cny 125,670,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1312 = 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 Ren Min Bi
SC was registered as a wholly foreign owned enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Dec. 28, 2005.
Company Status: Wholly foreign-owned enterprise
This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered business scope includes researching, developing,
manufacturing, processing, assembling various aero plane engine parts, selling
its products and providing the after sales service; wholesaling, import &
export and commission agent of its similar products and aero plane engine and
related business.
SC is mainly
engaged in manufacturing, processing and selling aero plane engines and parts.
Mr. Jean-Paul
Louis has been chairman of SC since 2005.
SC is known
to have approx. 300 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Suzhou. Our checks
reveal that SC owns the total premise about 45,000 square meters.
http://www.snecma.com/ The website belongs to Snecma, and it
includes the introduction about SC and its related companies. The design is
professional and the content is well organized. At present it is in English and
other versions.
No significant events or changes were found during our checks with local
AIC.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Snecma Participations (France) 100
Address: 2 Boulevard Du Gal Martial Valin,
75015 Paris 15
Telephone:
Fax: 01.40.60.81.02
l
Chairman:
Mr. Jean-Paul Louis, French, in his
Working Experience(s):
From 2005 to present Working
in SC as chairman.
l
General Manager:
Mr. Inizan Gerard Francois, #: 09PV60604,
with university education. He is currently responsible for the daily management
of SC.
Working Experience(s):
At present Working
in SC as general manager.
l
Directors:
Lim Joo Leng Jjoseph
Kening Liu
Jean-Pierre Cojan
Pierre,Claude,Maurice,Syx
SC is mainly
engaged in manufacturing, processing and selling aero plane engines and parts.
SC’s products mainly
include: aero plane engines and parts.
SC sources its
materials 10% from domestic market, and 90% from the overseas market, mainly
European countries. SC sells 100% of its products to the overseas market,
mainly European countries.
The buying terms of SC include Check, 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 Client:
==========
Snecma Participations
Note: SC’s management refused to release its
main suppliers.
According
to http://www.snecma.com/
Sichuan
Services Aero-Engine Maintenance Co., Ltd.
Incorporation
Date : Jul. 1, 1999
Registration
No. :
510000400003602
Registered
Legal Form : Chinese-Foreign
Equity Joint Venture Enterprise
Legal
representative : Chai
Weixi
Registered
Capital : USD
71,900,000
Add:
Shuangliu Airport 610201 Chengdu, Sichuan Province
Tel:
+86 28 8 572 16 93
Fax:
+86 28 8 572 16 96
Snecma
America Engine Services
Carr.
Estatal 200 Querétaro - Tequisquiapan, Km 22+547 Int B1, Parque Aeroespacial
Querétaro, C.P. 76278. Mpio. Colón. Querétaro, México
Tel.
(52) 442-296.56.00
Snecma
HAL Aerospace Pvt Ltd
140/1,
Hoody Whitefield Road, Whitefield Industrial Area, Bangalore 560066, India
Phone:
+ 91 80 4022 3000
Fax:
+91 80 4022 3022
Etc.
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.
Agricultural Bank of China Suzhou Jinjihu Sub-branch
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2012 |
|
Cash & bank |
19,440 |
|
Inventory |
29,400 |
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Accounts
receivable |
20,690 |
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Advances to
suppliers |
20,260 |
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Other
receivables |
2,090 |
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To be
apportioned expense |
280 |
|
Other current
assets |
20 |
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|
---------------- |
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Current assets |
92,180 |
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Fixed assets net
value |
157,720 |
|
Projects under
construction |
250 |
|
Long term
investment |
0 |
|
Intangible
assets |
5,210 |
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Other assets |
20 |
|
|
----------------- |
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Total assets |
255,380 |
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|
============ |
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Short loans |
94,280 |
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Accounts payable |
23,760 |
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Advances from
clients |
0 |
|
Taxes payable |
1,070 |
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Salaries payable |
1,740 |
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Other payable |
1,110 |
|
Withdraw the
expenses in advance |
7,710 |
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Other current
liabilities |
40 |
|
|
----------------- |
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Current
liabilities |
129,710 |
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Long term
liabilities |
0 |
|
|
----------------- |
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Total
liabilities |
129,710 |
|
Equities |
125,670 |
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|
------------------ |
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Total
liabilities & equities |
255,380 |
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============ |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
|
Turnover |
178,760 |
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Cost of goods sold |
136,440 |
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Taxes and additional of main operation |
840 |
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Sales expense |
0 |
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Management expense |
27,050 |
|
Finance expense |
2,490 |
|
Profit before
tax |
13,180 |
|
Less: profit tax |
2,020 |
|
Profits |
11,160 |
Important Ratios
=============
|
|
2012 |
|
*Current ratio |
0.71 |
|
*Quick ratio |
0.48 |
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*Liabilities
to assets |
0.51 |
|
*Net profit
margin (%) |
6.24 |
|
*Return on
total assets (%) |
4.37 |
|
*Inventory
/Turnover ×365 |
60 days |
|
*Accounts
receivable/Turnover ×365 |
42 days |
|
*Turnover/Total
assets |
0.70 |
|
* Cost of
goods sold/Turnover |
0.76 |
PROFITABILITY: FAIRLY
GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC is average.
l
The accounts receivable of SC is average.
l
The short loans of SC are large in 2012.
l
SC’s turnover is in a fair 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.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.74 |
|
|
1 |
Rs.91.99 |
|
Euro |
1 |
Rs.78.70 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
|
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.