MIRA
INFORM REPORT
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Report Date : |
29.08.2007 |
IDENTIFICATION DETAILS
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Name : |
dragon art
diamonds ( |
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Registered Office : |
Room 605, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
August 5, 2002 |
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Com. Reg. No.: |
315726 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Engaged in selling diamonds. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
dragon art diamonds
(
room 605,
TEL :
86 (0) 21-50471320
FAX :
86 (0) 21-50471298
EXECUTIVE SUMMARY
INCORPORATION DATE : august 5, 2002
REGISTRATION NO. : 315726
REGISTERED LEGAL FORM : Wholly foreign-owned
STAFF STRENGTH :
7
REGISTERED CAPITAL : usd 200,000
BUSINESS LINE :
trading
TURNOVER :
CNY 30,360,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 2,350,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.56 = US$1 AS OF
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
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 August 5, 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 selling diamonds in Shanghai Diamond Exchange
(excluding bullion), in accordance with license.
SC is mainly
engaged in selling diamonds.
Mr. anuj jasani has been chairman of SC
since 2002.
SC is known to
have approx. 7 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shanghai. Our checks reveal that SC rents
the total premise about 100 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
anuj jasani (
l
Chairman and
General Manager:
Mr. anuj jasani, 45 years old
with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2002 to present Working in SC as chairman and general manager.
SC is mainly engaged
in selling diamonds.
SC’s products
mainly include: ESPOIR series diamonds.
SC sources its materials 100% from
international market, mainly
The buying terms of SC include L/C and Credit of 15-30 days. The payment
terms of SC include T/T and Credit of 30 days.
*Major Customer:
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Shanghai Yunlong Diamonds Co., Ltd.
*Major Supplier:
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Indigens (
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.
ABN AMRO Bank
AC#：000008007063
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
1,170 |
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Inventory |
4,770 |
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Accounts
receivable |
9,430 |
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Other Accounts
receivable |
210 |
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To be
apportioned expense |
0 |
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Other current
assets |
50 |
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Current assets |
15,630 |
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Fixed assets net
value |
110 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
15,740 |
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Short loans |
3,650 |
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Accounts payable |
9,730 |
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Other Accounts payable |
10 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
0 |
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Current
liabilities |
13,390 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
13,390 |
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Equities |
2,350 |
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Total
liabilities & equities |
15,740 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
30,360 |
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Cost of goods
sold |
28,770 |
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Sales expense |
260 |
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Management expense |
1,590 |
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Finance expense |
20 |
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Profit before
tax |
80 |
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Less: profit tax |
0 |
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Profits |
80 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.17
*Quick ratio 0.81
*Liabilities to
assets 0.85
*Net profit
margin (%) 0.26
*Return on total
assets (%) 0.51
*Inventory
/Turnover ×365 57 days
*Accounts
receivable/Turnover ×365 113 days
*Turnover/Total
assets 1.93
* Cost of goods
sold/Turnover 0.95
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is acceptable.
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SC’s return on total assets is acceptable.
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SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a normal
level.
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SC’s quick ratio is maintained in a normal level.
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The inventory of SC is fairly large.
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The accounts receivable of SC appears TOO LARGE.
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SC’s short-term loan appears LARGE.
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SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairly high.
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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-term loan could be a threat to SC’s
financial condition.
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)