MIRA
INFORM REPORT
|
Report Date : |
12.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHANGHAI VICO INDUSTRIAL CO., LTD. |
|
|
|
|
Registered Office : |
Room 1607, Kunyang Plaza, No.
798, Zhaojiabang Road, Xuhui District, Shanghai, 200233 PR |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
02.12.2009 |
|
|
|
|
Com. Reg. No.: |
310104000450408 |
|
|
|
|
Legal Form : |
Limited Liabilities Co |
|
|
|
|
Line of Business : |
Engaged in selling textiles,
textile machinery. |
|
|
|
|
No. of Employees : |
6 |
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 : |
No complaints |
|
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 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
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 and address
SHANGHAI VICO INDUSTRIAL CO., LTD.
ROOM 1607, KUNYANG PLAZA, NO.
798, ZHAOJIABANG ROAD,
XUHUI DISTRICT, SHANGHAI, 200233
PR CHINA
TEL: 86
(0) 21-54259641/64268085 FAX: 86 (0)
21-64268060
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 2, 2009
REGISTRATION NO. : 310104000450408
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
6
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 32,462,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 1,039,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.1347 = 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 limited liabilities co. at local Administration for Industry & Commerce (AIC -
The official body of issuing and renewing business license) on Dec. 2,
2009.
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 importing and exporting goods and technology; developing the technology
of textile machinery, textile, and technical advice, technology transfer,
technical services; investment
management consulting; business consulting; public relations services;
construction and decoration engineering; property management; selling chemical
raw materials and products (except hazardous chemicals, controlled chemicals,
fireworks, civil explosives, precursor chemicals), general merchandise,
building materials (with permit if needed).
SC is mainly
engaged in selling textiles, textile machinery, etc.
Mr. Li Jinbao has
been the legal representative, chairman and
general manager of SC since 2009.
SC is known to have approx. 6 employees at
present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial
zone of Shanghai. The detailed
information of the area is unspecified.
Note:
SC has another operation office located at “Room 810, Building 2, No. 245,
Jiachuan Road, Xuhui District, Shanghai
City”. Tel: 021-34610078
http://www.vicochina.cn/ The design
is professional and the content is well organized. At present it is in Chinese
version.
E-mail: vico@vicochina.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
|
Registered capital |
CNY 500,000 |
Present amount |
Tax registration no.: 310104697285789
Organization code: 697285789
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Li Jinbao
80
Li Jinying
20
l
Legal representative, chairman and
general manager:
Mr. Li Jinbao, in his
Working Experience(s):
From 2009 to present Working in SC as legal representative,
chairman and general manager
l
Supervisor:
Li Jinying
SC is mainly
engaged in selling textiles, textile machinery.
SC’s products mainly include:
textiles, textile machinery,
etc.
SC sources its materials 80% from domestic
market and 20% from overseas market. SC sells 40% of its products in domestic
market and 60% to overseas market.
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.
TRADEMARKS & PATENTS
No record
Note:
SC’s management declined to release its major clients and suppliers.
SC
is not known to have any 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 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.
Bank of China Shanghai Xuhui Sub-branch
AC#：449459228527
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
Cash & bank |
73 |
154 |
|
Inventory |
289 |
56 |
|
Accounts
receivable |
198 |
2,291 |
|
Advances to
suppliers |
77 |
2,468 |
|
Other
receivables |
1,553 |
3,201 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
2,190 |
8,170 |
|
Long-term
investments |
0 |
0 |
|
Fixed assets net
value |
56 |
72 |
|
Projects under
construction |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
2,246 |
8,242 |
|
|
============= |
============= |
|
Short loans |
0 |
3,000 |
|
Accounts payable |
1,186 |
4,178 |
|
Advances from customers |
60 |
0 |
|
Accrued
payroll |
0 |
0 |
|
Taxes payable |
-47 |
-20 |
|
Other accounts
payable |
23 |
45 |
|
Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
1,222 |
7,203 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,222 |
7,203 |
|
Shareholders
equities |
1,024 |
1,039 |
|
|
------------------ |
------------------ |
|
Total liabilities
& equities |
2,246 |
8,242 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
Turnover |
30,374 |
32,462 |
|
Cost of goods
sold |
28,349 |
29,090 |
|
Taxes
and additional of main operation |
0 |
0 |
|
Sales expense |
1,506 |
2,107 |
|
Management expense |
645 |
1,105 |
|
Finance expense |
-113 |
207 |
|
Non-operating
income |
30 |
69 |
|
Non-operating expense |
0 |
0 |
|
Profit before
tax |
17 |
22 |
|
Less: profit tax |
6 |
7 |
|
Net profit |
11 |
15 |
Note:
SC’s accountant refused to release the latest financial reports.
Important Ratios
=============
|
|
as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
|
*Current ratio |
1.79 |
1.13 |
|
*Quick ratio |
1.56 |
1.13 |
|
*Liabilities
to assets |
0.54 |
0.87 |
|
*Net profit
margin (%) |
0.04 |
0.05 |
|
*Return on
total assets (%) |
0.49 |
0.21 |
|
*Inventory
/Turnover ×365 |
4 days |
1 day |
|
*Accounts
receivable/Turnover ×365 |
3 days |
26 days |
|
*Turnover/Total
assets |
13.52 |
3.94 |
|
* Cost of
goods sold/Turnover |
0.93 |
0.90 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line in
both years and it increased in 2012.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of goods sold is average in both years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC appears small in both years.
l
The accounts payable of SC appears average in both
years.
l
SC has no short-term loan in 2011 but large in
2012.
l
SC’s turnover is in a good level in 2011 but fairly
good in 2012, comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is average in 2011 but high in
2012.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of short loans could
be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.19 |
|
|
1 |
Rs.98.65 |
|
Euro |
1 |
Rs.78.63 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
PDT |
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.