MIRA
INFORM REPORT
|
Report Date : |
21.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHANGHAI ATOM CUTTING MACHINERY CO., LTD. |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
06.08.2002 |
|
|
|
|
Com. Reg. No.: |
310000400521805 |
|
|
|
|
Legal Form : |
Wholly foreign-owned enterprise |
|
|
|
|
Line of Business : |
Manufacturing and selling cutting machine and spare parts. |
|
|
|
|
No. of Employees : |
85 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
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 – 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 |
|
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 Atom Cutting Machinery Co., Ltd.
No. 2189 West
HuanCheng Road, NanQiao Town,
fengxian District,
Shanghai, 201400 PR CHINA
TEL: 86 (0) 21-57442588 FAX:
86 (0) 21-57442585
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 6, 2002
REGISTRATION NO. : 310000400521805
REGISTERED LEGAL FORM : Wholly foreign-owned
enterprise
STAFF STRENGTH :
85
REGISTERED CAPITAL : usd 3,340,000
BUSINESS LINE :
Manufacturing & SELLING
TURNOVER :
CNY 97,420,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 41,670,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.13 = 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 wholly foreign-owned enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Aug. 6, 2002.
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 designing, production and assembling for cutting systems
machines and spare parts as well as for footwear and leather industry,
machinery and spare parts, software developed for cutting machines, selling of
company products and provide product related service; and import and export of
goods of similar products, wholesale. (with permit if needed)
SC is mainly
engaged in manufacturing and selling cutting machine and spare parts.
Mr. Erminio
Veneroni is legal representative and chairman of SC at present.
SC is known
to have approx. 85 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. Detailed
information of the premise is unspecified.
www.atomchina.cn
The design is professional and the content is well organized. At present it is
in Chinese version.
E-mail: info@atom.sh.cn
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
New Sideco S.P.A. (Italy) 100
l
Legal Representative and Chairman:
Mr. Erminio
Veneroni, Italian, born in 1930, he is currently responsible for the overall
management of SC.
Working
Experience(s):
At present Working in SC as legal representative
and chairman.
SC is mainly
engaged in manufacturing and selling cutting machine and spare parts.
SC’s products mainly include: Flashcut 1660 2H, Flatbed Cutting Machine,
and Presser sewing machine stickers, etc.
SC sources its materials 100% from domestic
market. SC sells 35% of its products in domestic market, and 65% 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 clients and suppliers.
According
to SC’s website:
Atom
S. P. A.
Add.:
Via Morosini, 6, 27029 Vigevano (Italy)
Tel.:
+39.0381.3021
Web:
www.atom.it
E-mail:
info.atom@atom.it
Dongguan
Office
Add.:
A22-25, Building 9, Hongyun Square, Liaoxia Road, Houjie Town, Dongguan City,
Guangdong Province
Tel:
+86-769-82278280
Fax:
+86-769-85752358
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 declined to
release its bank details.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
as of Dec. 31, 2011 |
|
Cash & bank |
5,140 |
9,130 |
|
Inventory |
63,670 |
75,990 |
|
Accounts
receivable |
14,700 |
21,480 |
|
Advances to
suppliers |
730 |
1,310 |
|
Other
receivables |
890 |
700 |
|
Dividends
receivable |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
85,130 |
108,610 |
|
Fixed assets net
value |
9,590 |
9,510 |
|
Projects under
construction |
0 |
0 |
|
Long term
investment |
0 |
0 |
|
Long-term
prepaid expenses |
2,340 |
3,050 |
|
Intangible
assets |
0 |
0 |
|
Other assets |
10 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
97,070 |
121,170 |
|
|
============= |
============= |
|
Short loans |
16,990 |
19,390 |
|
Accounts payable |
30,910 |
47,010 |
|
Other accounts
payable |
5,260 |
3,370 |
|
Notes payable |
0 |
0 |
|
Taxes payable |
-40 |
-400 |
|
Advances from
clients |
1,940 |
2,280 |
|
Accrued payroll |
70 |
20 |
|
Dividends
payable |
0 |
2,000 |
|
Other payable |
0 |
0 |
|
Other current
liabilities |
270 |
1,150 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
55,400 |
74,820 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
55,400 |
74,820 |
|
Equities |
41,670 |
46,350 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
97,070 |
121,170 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
|
Turnover |
97,420 |
|
Cost of goods
sold |
79,250 |
|
Taxes and
additional of main operation |
30 |
|
Sales expense |
11,680 |
|
Management expense |
9,830 |
|
Finance expense |
1,190 |
|
Non-operating
income |
10 |
|
Non-operating expense |
120 |
|
Profit before
tax |
-4,670 |
|
Less: profit tax |
0 |
|
Profits |
-4,670 |
Important Ratios
=============
|
|
as
of Dec. 31, 2012 |
as
of Dec. 31, 2011 |
|
*Current ratio |
1.54 |
1.45 |
|
*Quick ratio |
0.39 |
0.44 |
|
*Liabilities
to assets |
0.57 |
0.62 |
|
*Net profit
margin (%) |
-4.79 |
/ |
|
*Return on
total assets (%) |
-4.81 |
/ |
|
*Inventory
/Turnover ×365 |
239 days |
/ |
|
*Accounts
receivable/Turnover ×365 |
56 days |
/ |
|
*Turnover/Total
assets |
1.00 |
/ |
|
* Cost of
goods sold/Turnover |
0.81 |
/ |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line in
2012.
l
SC’s net profit margin is fair in 2012.
l
SC’s return on total assets is fair in 2012.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is normal.
l
SC’s quick ratio is maintained in a fair level.
l
SC’s inventory is large in both years.
l
The accounts receivable of SC appears average in
both years.
l
SC’s short-term loan appears average in both years.
l
SC’s turnover is average in 2012, 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 inventory could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.63 |
|
|
1 |
Rs.101.25 |
|
Euro |
1 |
Rs.83.42 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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.