MIRA INFORM REPORT
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Report Date : |
20.09.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI
STAR RUBBER PRODUCTS CO., LTD. |
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Registered Office : |
No. 4968, Sichen Highway, Sheshan Industrial Zone, Songjiang District, Shanghai City, 201602 Pr
China |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
18.02.1994 |
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Com. Reg. No.: |
310000400075228 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Manufacturing and sales of life raft. |
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No. of Employees : |
115 |
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) |
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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.
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Source : CIA |
Company name & address
SHANGHAI STAR RUBBER PRODUCTS CO.,
LTD.
No. 4968, sichen
highway, sheshan industrial zone,
Songjiang district,
shanghai city, 201602 PR CHINA
TEL: 86 (0)
21-57797003/57797015 FAX: 86 (0)
21-57797008
EXECUTIVE SUMMARY
INCORPORATION DATE : february 18, 1994
REGISTRATION NO. : 310000400075228
REGISTERED LEGAL FORM : One-person
Limited Liability Company
STAFF STRENGTH : 115
REGISTERED CAPITAL : CNY 8,052,000
BUSINESS LINE :
manufacture and sales
TURNOVER :
CNY 60,190,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 9,120,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND :
steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1217 = 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
SC was registered as a one-person limited liability company at local Administration for
Industry & Commerce (AIC - The official body of issuing and renewing
business license) on February 18, 1994.
Company Status: One-person Limited Liability Company Single person LLC refers to a limited liability company
set up by only one natural person or legal person as the single shareholder
of it. The minimum registered capital of Single person LLC is
CNY100,000. The shareholder’s capital contributes, as set out by the
articles of associations should be a lump-sum payment in full. One natural person can only invest in and set up one
limited liability company, which is not permitted to invest in and set up a
new Single person LLC. As to any one-person limited liability company, the
sole-investor nature of the natural person or legal person shall be
indicated in the registration documents of the company and shall be
indicated in the business license thereof as well. The regulation of Single person LLC should be set up by
the shareholder The regulation of Single person LLC has no shareholder
meeting.
SC’s registered business scope includes manufacturing of inflatable life
raft, inflatable rubber boat, flatulence, motor boats, rubber boats, other
inflatable float, matching marine spare parts, glass steel products, rubber
products rubber parts and sales of its own products; repair of glass steel
products, rubber products, rubber parts (excluding special equipment);
technical advisory of glass steel products, rubber products, rubber parts;
import and export of goods and technology (if needed with permit).
SC is mainly engaged in manufacturing and sales of life raft.
Mr. Huang Kun is
legal representative of SC at present.
SC is
known to have approx. 115 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. Our checks reveal that SC rents the premise.
http://www.csmliferaft.com/
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
Email: csm@csmliferaft.com
No significant changes were found during our
checks with the local Administration for Industry and Commerce.
Honor
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shanghai Yingyan Industrial Enterprise Co.,
Ltd. 100
Incorporation Date:
Registration No.: 310227000788486
Registered Legal Form: Limited liabilities
co.
Registered Capital: CNY 32,930,000
Legal Representative: Huang Zhiyan
Registered Address: Area D, Minqiang
Commercial Center, Sheshan, Shanghai, PRC (No. 82, Xixia Road)
l Legal
Representative:
Mr. Huang Kun is currently responsible for the overall and management of
SC.
Working Experience(s):
At present Working
in SC as legal representative.
SC is mainly engaged in manufacturing and sales of life raft.
SC’s products
mainly include: inflatable life raft.
SC sources its materials 100% from domestic market.
SC sells 50% of its products in domestic market, and 50% to overseas market,
mainly England, Japan, South Korea, Singapore and Italy, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Note: SC declined to release its major
suppliers and clients.
SC
is not known to have the subsidiary at present.
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’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.
Shanghai Rural Commercial Bank of Sheshan Sub-branch
AC#:
32735518010162925
Relationship:
Normal
Balance Sheet
Unit: CNY’000
|
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As
of Dec. 31, 2012 |
|
Cash & bank |
2,930 |
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Inventory |
7,760 |
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Accounts
receivable |
15,910 |
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Short-term
investment |
0 |
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Advances to
suppliers |
0 |
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Prepaid expenses |
80 |
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Other
receivables |
12,050 |
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Tax Refund
Receivable |
440 |
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------------------ |
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Current assets |
39,170 |
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Fixed assets net
value |
1,160 |
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Long term
investment |
0 |
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Projects under
construction |
0 |
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Intangible and
other assets |
0 |
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------------------ |
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Total assets |
40,330 |
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=========== |
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Short loan |
13,000 |
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Accounts payable |
15,270 |
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Profit Payable |
290 |
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Taxes payable |
-150 |
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Other Accounts
payable |
2,650 |
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Welfare Expenses
Payable |
150 |
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------------------ |
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Current
liabilities |
31,210 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
31,210 |
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Equities |
9,120 |
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------------------ |
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Total
liabilities & equities |
40,330 |
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|
=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2012 |
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Turnover |
60,190 |
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Cost of goods
sold |
52,990 |
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Taxes and additional of main operation |
20 |
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Sales expense |
1,330 |
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Management expense |
3,910 |
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Finance expense |
1,230 |
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Other operating
income |
180 |
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Profit before
tax |
890 |
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Less: profit tax |
220 |
|
Profits |
670 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2012 |
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*Current ratio |
1.26 |
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*Quick ratio |
1.01 |
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*Liabilities to
assets |
0.77 |
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*Net profit
margin (%) |
1.11 |
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*Return on total
assets (%) |
1.66 |
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*Inventory
/Turnover ×365 |
48 days |
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*Accounts
receivable/Turnover ×365 |
97 days |
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*Turnover/Total
assets |
1.49 |
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* Cost of goods
sold/Turnover |
0.88 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of goods sold is average.
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 collection period of SC
appears long.
l
SC’s short loans are large in 2012.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
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.61.74 |
|
UK Pound |
1 |
Rs.99.56 |
|
Euro |
1 |
Rs.83.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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 |
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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 |
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<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.