MIRA
INFORM REPORT
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Report Date : |
02.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHANGHAI DURE
INDUSTRIES LTD. |
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Registered Office : |
Room 2014 No. 88 North Caoxi Road,
Shanghai, 200122 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
27.05.2002 |
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Com. Reg. No.: |
310115000678466 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
International Trader |
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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Maximum Credit Limit : |
USD 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
SHANGHAI DURE
INDUSTRIES LTD.
ROOM 2014 NO. 88 NORTH CAOXI ROAD,
SHANGHAI, 200122 PR CHINA
TEL: 86 (0) 21-54250111 FAX: 86 (0) 21-50581132
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 27, 2002
REGISTRATION NO. : 310115000678466
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
30
REGISTERED CAPITAL : CNY 3,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 2,513,370,000 (AS OF DEC. 31, 2007)
EQUITIES :
cny 10,320,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to USD 100,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.84 = 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 Ren Min Bi
Note: the given address was SC’s former address.
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing and
renewing business license) on May 27, 2002.
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 various
goods and technology.
SC is mainly
engaged in international trade.
Mr. Zhu Jing’e has
been chairman of SC since 2002.
SC is known
to have approx. 30 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. Our checks reveal that SC
rents the total premise about 300 square meters.
http://www.dure.com.cn . The design is professional and the content
is well organized. At present it is in both English and Chinese versions.
E-Mail: dure@dure.cn
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhu Jing’e
78
Cai Dongwei
22
l
Chairman and General Manager:
Mr. Zhu Jing’e, in his 60’s 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.
l
Vice
General Manager:
Mr. Cai Dongwei, in his 30’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2002 to present Working
in SC as vice general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: knitted sweater, garments, textile materials.
SC sources its materials
100% from domestic market. SC sells 100% of its products to the overseas
market, mainly India, Europe and Southeast Asia.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier:
============
Shanghai Dongfang Wool Knitting Factory
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 records and our debt collection record concerning SC.
Trade payment experience: SC’s suppliers
declined to make any comments.
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.
Merchants Bank Shanghai Branch
AC#096781-30819162001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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Cash & bank |
4,130 |
11,730 |
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Inventory |
470 |
980 |
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Accounts
receivable |
63,540 |
41,340 |
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Advances to
suppliers |
0 |
0 |
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Other
receivables |
9,030 |
880 |
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Other current
assets |
110 |
8,030 |
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------------------- |
------------------ |
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Current assets |
77,280 |
62,960 |
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Fixed assets net
value |
5,800 |
6,410 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
0 |
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----------------- |
------------------ |
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Total assets |
83,080 |
69,370 |
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============= |
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Short loans |
5,000 |
7,000 |
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Accounts payable |
44,440 |
38,270 |
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Advances from
clients |
22,380 |
13,540 |
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Taxes payable |
50 |
0 |
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Salaries payable |
0 |
0 |
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Other payable |
90 |
0 |
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Other current
liabilities |
200 |
240 |
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------------------ |
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Current
liabilities |
72,160 |
59,050 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
72,160 |
59,050 |
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Equities |
10,920 |
10,320 |
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------------------ |
------------------ |
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Total
liabilities & equities |
83,080 |
69,370 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2007 |
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Turnover |
2,513,370 |
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Cost of goods
sold |
2,505,630 |
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Sales expense |
20,620 |
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Management expense |
4,580 |
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Finance expense |
8,170 |
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Profit before
tax |
790 |
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Less: profit tax |
200 |
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Profits |
590 |
Important Ratios
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|
2006 |
2007 |
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*Current ratio |
1.07 |
1.07 |
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*Quick ratio |
1.06 |
1.05 |
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*Liabilities
to assets |
0.87 |
0.85 |
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*Net profit
margin (%) |
/ |
0.02 |
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*Return on
total assets (%) |
/ |
0.85 |
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*Inventory
/Turnover ×365 |
/ |
1day |
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*Accounts
receivable/Turnover ×365 |
/ |
6days |
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*Turnover/Total
assets |
/ |
36.23 |
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* Cost of
goods sold/Turnover |
/ |
1.00 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears good.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is too high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
The accounts receivable of SC appears fairly large.
l
The inventory of SC is average.
l
The short loans of SC are average.
l
SC’s turnover is in a good level, comparing with the size of its total
assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
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.
It is considered a credit line up to USD 100,000 appears to be within SC’s
capacities.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.50.52 |
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UK Pound |
1 |
Rs.75.08 |
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Euro |
1 |
Rs.63.72 |
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%)