MIRA INFORM REPORT
|
Report Date : |
09.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHANGHAI ARTHON INTERNATIONAL TRADE CO., LTD.
|
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.10.2014 |
|
|
|
|
Date of Incorporation : |
17.06.2009 |
|
|
|
|
Com. Reg. No.: |
310112000898038 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Engaged in importing and exporting goods and technology; selling
chemical products, edible agricultural products, food additives, medical
devices, blood pressure monitors, magnetic appliances, home blood glucose
meter, seedlings, environmental protection equipment, digital electronic
products, garments, daily necessities, handicrafts, ceramics, cosmetics,
jewelry, communications equipment. Subject product
ranges include APIs, Intermediate, Prasugrel, Paliperidone, Lapatinib,
Nilotinib, Gemcitabine, Fasudil &
Sitagliptin. |
|
|
|
|
No of Employees : |
06 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but Correct |
|
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
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, growth of the
private sector, development of stock markets and a modern banking system, 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 considered important to "economic
security," explicitly looking to foster globally competitive industries.
After keeping its currency tightly linked to the US dollar for years, in July
2005 China 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 and
expanded the daily trading band within which the RMB is permitted to fluctuate.
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 2013 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
consumption; (b) facilitating higher-wage job opportunities for the aspiring
middle class, including rural migrants and increasing numbers of college
graduates; (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. Several factors are
converging to slow China's growth, including debt overhang from its
credit-fueled stimulus program, industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow recovery of China's trading
partners. The government's 12th Five-Year Plan, adopted in March 2011 and
reiterated at the Communist Party's "Third Plenum" meeting in
November 2013, emphasizes continued economic reforms and the need to increase
domestic consumption in order to make the economy less dependent in the future
on fixed investments, exports, and heavy industry. However, China has made only
marginal progress toward these rebalancing goals. The new government of
President XI Jinping has signaled a greater willingness to undertake reforms
that focus on China's long-term economic health, including giving the market a
more decisive role in allocating resources
|
Source : CIA |
Company name & address
Shanghai Arthon
International Trade Co., Ltd.
no. 188
jin ou road, jinshanwei town, jinshan district
shanghai
201512 PR CHINA
TEL: 86
(0) 21-37285116/37285592
FAX: 86
(0) 21-37285115
EXECUTIVE SUMMARY
Date of Registration : JUNe 17, 2009
REGISTRATION NO. : 310112000898038
LEGAL FORM : Limited Liability Company
CHIEF EXECUTIVE :
zhang jie (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 10,000,000
staff : 6
BUSINESS CATEGORY : TRADING
REVENUE :
CNY 15,410,000 (FROM JAN. 1, 2014 TO OCT. 31, 2014)
EQUITIES :
CNY 9,320,000 (AS OF OCT. 31, 2014)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : Slow but Correct
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.14 = USD 1
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
LEGAL STATUS & HISTORY
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 310112000898038 on June
17, 2009.
SC’s Organization Code Certificate No.:
69016802-9
SC’s registered capital: CNY 10,000,000
SC’s paid-in capital: CNY 10,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After the change |
|
2014-2-20 |
Registered Capital |
CNY 1,000,000 |
CNY 10,000,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Hu Jingbo |
50 |
|
Zhang Jie |
50 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Zhang Jie |
|
Supervisor |
Hu Jingbo |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Hu Jingbo 50
Zhang Jie 50
MANAGEMENT
Zhang Jie, Legal
Representative, Chairman and General Manager
----------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
From 2009 to present, working in SC as legal
representative, chairman and general manager
Hu
Jingbo , Supervisor
-----------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At
present, as supervisor of SC, also working in Shanghai Twisun Bio-pharm Co.,
Ltd. as legal representative
BUSINESS OPERATION
SC’s registered business scope includes importing and
exporting goods and technology; selling chemical products, edible agricultural
products, food additives, medical devices, blood pressure monitors, magnetic
appliances, home blood glucose meter, seedlings, environmental protection
equipment, digital electronic products, garments, daily necessities,
handicrafts, ceramics, cosmetics, jewelry, communications equipment.
SC is
mainly engaged in international trade.
SC’s products
mainly include: APIs, Intermediate, Prasugrel, Paliperidone, Lapatinib,
Nilotinib, Gemcitabine, Fasudil &
Sitagliptin.
SC sources its products 100% from domestic market, mainly Shanghai. SC sells 100% of its products overseas market, mainly Asia, Europe, North America, Oceania, 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.
Staff & Office:
--------------------------
SC is known
to have approx. 6 staff at
present.
SC rents an area
as its operating office of approx. 100 sq. meters at the heading address.
RELATED COMPANY
Shanghai
Twisun Bio-pharm Co., Ltd.
------------------------------------------
Date of Registration: August 13, 2007
Registration No.: 310226000820278
Legal Form: Limited Liability
Company
Registered Capital: CNY 16,000,000
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Slow but Correct ( ) 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, 2013 |
|
1,080 |
|
|
Notes receivable |
0 |
|
Accounts
receivable |
0 |
|
Other receivable |
6,260 |
|
Inventory |
7,310 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
50 |
|
|
------------------ |
|
Current assets |
14,700 |
|
Fixed assets |
0 |
|
Long-term
prepaid expenses |
0 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
0 |
|
|
------------------ |
|
Total assets |
14,700 |
|
|
============= |
|
Short-term loans |
0 |
|
Notes payable |
0 |
|
Accounts payable |
990 |
|
Advances from
clients |
19,480 |
|
Other payable |
-4,300 |
|
Other current liabilities |
-1,730 |
|
|
------------------ |
|
Current
liabilities |
14,440 |
|
Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
14,440 |
|
Equities |
260 |
|
|
------------------ |
|
Total
liabilities & equities |
14,700 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
9,860 |
|
Cost of sales |
8,710 |
|
Sales expense |
900 |
|
Management expense |
240 |
|
Finance expense |
10 |
|
Profit before
tax |
-7 |
|
Less: profit tax |
21 |
|
-28 |
Financial Summary
|
Unit: CNY’000 |
As
of Oct. 31, 2014 |
|
Total assets |
30,670 |
|
|
------------- |
|
Total
liabilities |
21,350 |
|
Equities |
9,320 |
|
|
------------- |
|
|
From
Jan. 1, 2014 to Oct. 31, 2014 |
|
Revenue |
15,410 |
|
Profits |
770 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Oct. 31, 2014 |
|
*Current ratio |
1.02 |
-- |
|
*Quick ratio |
0.51 |
-- |
|
*Liabilities
to assets |
0.98 |
0.70 |
|
*Net profit
margin (%) |
-0.28 |
5.00 |
|
*Return on total
assets (%) |
-0.19 |
2.51 |
|
*Inventory /
Revenue ×365 |
271 days |
-- |
|
*Accounts
receivable/ Revenue ×365 |
-- |
-- |
|
*Revenue/Total
assets |
0.67 |
0.50 |
|
*Cost of sales
/ Revenue |
0.88 |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue 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 sales is average, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large.
l
SC has no accounts receivable.
l
SC has no short-term loans.
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 average.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with
fairly stable financial conditions.
DIAMOND INDUSTRY –
-
From time immemorial,
-
The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
-
The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
-
Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
-
Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
-
Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
-
Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
-
The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a
global voluntary regulatory standard on bank capital adequacy, stress testing
and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.93 |
|
UK Pound |
1 |
Rs.96.37 |
|
Euro |
1 |
Rs.76.10 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
MNL |
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.