MIRA INFORM REPORT
|
Report Date : |
15.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHANGHAI TONGTAI
PRECISE ALUMINUM ALLOY MANUFACTURING CO., LTD. |
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Registered Office : |
No. 188 Zhenxi South Road, Xiaozheng Area, Liantang Town, Qingpu
District, Shanghai, 201716 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.03.2001 |
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Com. Reg. No.: |
310229000586597 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is
mainly engaged in manufacturing and selling precision aluminum products. |
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No. of Employees : |
280 |
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 : |
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
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
SHANGHAI TONGTAI
PRECISE ALUMINUM ALLOY MANUFACTURING CO., LTD.
NO. 188 ZHENXI SOUTH ROAD, XIAOZHENG AREA,
LIANTANG TOWN,
QINGPU DISTRICT, SHANGHAI, 201716 PR CHINA
TEL: 86 (0)
21-59810102 FAX: 86 (0) 21-59813388
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 12, 2001
REGISTRATION NO. :
310229000586597
REGISTERED LEGAL FORM : LIMITED
LIABILITIES COMPANY
STAFF STRENGTH :
280
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 80,250,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 24,860,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.14= 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 limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Mar. 12, 2001.
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 manufacturing and processing
advanced aluminum products, aluminum extrusion profiles, suppress parts;
aluminum oxide processing; import and export of goods and technology. (with
permit if needed)
SC is mainly
engaged in manufacturing and selling precision aluminum products.
Mr. Yao Xiangqun
is the legal representative and chairman of SC at present.
SC is known
to have approx. 280 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 Shanghai. SC’s management declined to release detailed information of the premise.
http://www.tt-sh.com/
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
Email: jiusi-2@sh-jiusi.com
sale@tt-sh.com
export@tt-sh.com
No significant events or changes were found during our checks with local
AIC.
See below for SC as executive party (defendant).
|
Executed Party |
Shanghai Tongtai Precise Aluminum Alloy Manufacturing Co., Ltd. |
|
Court |
Qingpu District, Shanghai City People's Court |
|
Date
of Case |
|
|
Case Number |
(2010) 01670 |
|
Claim
Amount |
RMB 9,047.34 |
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Case
Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Yin Fang 20
Yao Xiangqun 80
l
Legal representative and Chairman:
Mr. Yao Xiangqun is currently responsible for the overall management of
SC.
Working Experience(s):
At
present Working in SC as legal representative and chairman
Supervisor:
………….
Yin Fang
SC is mainly
engaged in manufacturing and selling precision aluminum products.
SC’s products
mainly include radiator accessories, refrigerator door handles, etc.
SC sources its
materials 100% from domestic market. SC sells 60% of its products in domestic
market and 40% to overseas market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note:
SC’s management declined to release its major suppliers and clients.
According
to SC’s website:
Shanghai
Office
Add:
Room 101, No. 25 Lane 260, Guiping Rd, Xuhui District, Shanghai
Tel:
021-64752485
Fax: 021-64752485
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.
SC’s management
declined to release its banking information.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Cash & bank |
3,190 |
4,760 |
|
Inventory |
4,550 |
3,860 |
|
Accounts
receivable |
22,210 |
24,700 |
|
Other
receivables |
360 |
1,860 |
|
Other current
assets |
510 |
2,930 |
|
|
------------------ |
------------------ |
|
Current assets |
30,820 |
38,110 |
|
Fixed assets net
value |
10,260 |
10,260 |
|
Long term
investment |
0 |
0 |
|
Projects under
construction |
0 |
0 |
|
Intangible and
other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
41,080 |
48,370 |
|
|
=========== |
=========== |
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Short loan |
5,000 |
3,000 |
|
Accounts payable |
11,190 |
20,220 |
|
Advances from
clients |
0 |
0 |
|
Taxes payable |
-500 |
-160 |
|
Other Accounts
payable |
240 |
450 |
|
Other current liabilities |
4,110 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
20,040 |
23,510 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
20,040 |
23,510 |
|
Equities |
21,040 |
24,860 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
41,080 |
48,370 |
|
|
=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
|
Turnover |
80,250 |
|
Cost of goods sold |
68,810 |
|
Sales expense |
970 |
|
Management expense |
4,910 |
|
Finance expense |
400 |
|
Profit before tax |
5,090 |
|
Less: profit tax |
1,270 |
|
Profits |
3,820 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.54 |
1.62 |
|
*Quick ratio |
1.31 |
1.46 |
|
*Liabilities
to assets |
0.49 |
0.49 |
|
*Net profit
margin (%) |
/ |
4.76 |
|
*Return on
total assets (%) |
/ |
7.90 |
|
*Inventory
/Turnover ×365 |
/ |
18 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
113 days |
|
*Turnover/Total
assets |
/ |
1.66 |
|
* Cost of
goods sold/Turnover |
/ |
0.86 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in 2012.
l
SC’s net profit margin is average in 2012.
l
SC’s return on total assets is fairly good in 2012.
l
SC’s cost of goods sold is average, comparing with
its turnover in 2012.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears large.
l
The short-term loan of SC appears average.
l
SC’s turnover is in an average level, comparing
with the size of its total assets in 2012.
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 accounts receivable could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.63 |
|
|
1 |
Rs.83.67 |
|
Euro |
1 |
Rs.71.02 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
RATING EXPLANATIONS
|
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 |
|
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.