MIRA
INFORM REPORT
|
Report Date : |
09.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
KONGSBERG
AUTOMOTIVE ( |
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Registered Office : |
NO. 30-32, XIKUN
ROAD, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
19.11.2004 |
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Com. Reg. No.: |
320200400021815 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Subject includes
researching and manufacturing vehicle transmission, clutch & parts,
vehicle electronic equipment and seat components; import and export of
various goods and technologies. |
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No. of Employees : |
620 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
Slow but correct |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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, 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 and Address
KONGSBERG AUTOMOTIVE (WUXI) LTD
NO. 30-32, XIKUN ROAD, WUXI SINGAPORE IND. PARK
WUXI, JIANGSU PROVINCE 214028 PR CHINA.
TEL: 86 (0) 510-85282165
FAX: 86 (0) 510-85282162
EXECUTIVE SUMMARY
Date of Registration : NOVEMBER 19, 2004
REGISTRATION NO. : 320200400021815
LEGAL FORM : WHOLLY FOREIGN-OWNED enterprise
REGISTERED CAPITAL : usd
12,200,000
staff : 620
BUSINESS CATEGORY :
MANUFACTURING & trading
Revenue : CNY 356,517,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 121,175,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fair
OPERATIONAL TREND :
fairly STEADY
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
Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a wholly foreign-owned enterprise of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 320200400021815 on November
19, 2004.
SC’s Organization Code Certificate No.:
76654831-X
%20LTD%20-%20288778%2009-Oct-2014_files/image002.jpg)
SC’s Tax No.: 32020076654831X
SC’s registered capital: usd 12,200,000
SC’s paid-in capital: usd 12,200,000 (CNY 87,601,231.43)
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Legal Representative |
Olav Volldal |
Hans Peter
Havdal |
|
Registered Capital |
USD 6,200,000 |
usd 12,200,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Kongsberg
Automotive Holding ASA (Norway) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative
and Chairman |
Hans Peter Havdal |
|
General
Manager |
Berntsson Anders Nicklas |
|
Director |
Bent Wessel-Aas |
|
Trond Stabekk |
|
|
Supervisor |
Munthe Jon Gerhard |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Kongsberg Automotive Holding ASA (Norway) 100
===========================
Kongsberg Automotive Holding ASA is a Norway-based
company active within the automotive industry. The Company is engaged in the
development, manufacturing and marketing of such products and services as
gearshifts, seating, commercial vehicle systems, couplings, stabilization rods
and other components. The Company’s customers include BMW, Ford, General
Motors, Mercedes-Benz, Volvo, and others.
MANAGEMENT
Hans Peter Havdal, Legal Representative and Chairman
------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
Berntsson Anders Nicklas, General Manager
---------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
Director
----------
Bent Wessel-Aas
Trond Stabekk
Supervisor
--------------
Munthe Jon Gerhard
BUSINESS OPERATION
SC’s registered business
scope includes researching and manufacturing vehicle transmission, clutch &
parts, vehicle electronic equipment and seat components; import and export of
various goods and technologies.
SC is mainly
engaged in manufacturing and
selling vehicle parts.
Brand: KONGSBERG
SC’s products
mainly include: vehicle parts.
SC sources its materials 60% from domestic market, and 40% from overseas market, mainly Europe. SC sells 60% of its products in domestic market, and 40% to overseas market, mainly Europe and Japan.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Teleflex
Automotive Manufacturing Corporation
Manufacturer's
Industrial Group LLC.
Kongsberg
Automotive Driveline Systems (India) Private Limited
Staff & Office:
--------------------------
SC is known
to have approx. 620 staff at
present.
SC rents an area
as its operating office & factory of approx. 15,398 sq. meters at the
heading address.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) 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
Basic Bank:
Industrial & Commercial Bank of China Wuxi Development Zone
Sub-branch
AC#:1103020819200090914
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
58,817 |
52,753 |
|
|
Notes receivable |
206 |
983 |
|
Accounts receivable |
80,721 |
80,116 |
|
Advances to suppliers |
2,485 |
2,597 |
|
Other receivable |
2,124 |
2,852 |
|
Inventory |
36,477 |
31,835 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
180,830 |
171,136 |
|
Fixed assets |
46,490 |
44,527 |
|
Construction in progress |
2,013 |
10,971 |
|
Intangible assets |
618 |
470 |
|
Long-term prepaid expenses |
1,929 |
2,617 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
231,880 |
229,721 |
|
|
============= |
============= |
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Short-term loans |
4,601 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
80,290 |
75,495 |
|
Wages payable |
4,893 |
7,297 |
|
Taxes payable |
2,821 |
2,700 |
|
Advances from clients |
0 |
0 |
|
Other payable |
12,422 |
22,973 |
|
Other current liabilities |
878 |
81 |
|
|
------------------ |
------------------ |
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Current liabilities |
105,905 |
108,546 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total liabilities |
105,905 |
108,546 |
|
Equities |
125,975 |
121,175 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
231,880 |
229,721 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
Revenue |
452,832 |
356,517 |
|
Cost of sales |
366,425 |
291,892 |
|
Taxes and surcharges |
3,535 |
2,754 |
|
Sales expense |
21,812 |
17,308 |
|
Management expense |
59,981 |
48,034 |
|
Finance expense |
1,655 |
-863 |
|
Non-business income |
5,924 |
67 |
|
Non-business expenditure |
0 |
124 |
|
Profit before tax |
5,348 |
-2,666 |
|
Less: profit tax |
1,690 |
2,134 |
|
3,658 |
-4,800 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
*Current ratio |
1.71 |
1.58 |
|
*Quick ratio |
1.36 |
1.28 |
|
*Liabilities to assets |
0.46 |
0.47 |
|
*Net profit margin (%) |
0.81 |
-1.35 |
|
*Return on total assets (%) |
1.58 |
-2.09 |
|
*Inventory / Revenue ×365 |
30 days |
33 days |
|
*Accounts receivable/ Revenue ×365 |
66 days |
83 days |
|
*Revenue/Total assets |
1.95 |
1.55 |
|
*Cost of sales / Revenue |
0.81 |
0.82 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears fairly good, but it was
descending in 2013.
l
SC’s net profit margin is fair in 2013.
l
SC’s return on total assets is fair in 2013.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears fairly large.
l
SC has no short-term loans in 2013.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial conditions.
The fairly large amount of accounts receivable may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.46 |
|
|
1 |
Rs.98.77 |
|
Euro |
1 |
Rs.77.65 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
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|
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.