MIRA
INFORM REPORT
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Report Date : |
20.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
SUZLON ENERGY TIANJIN CO LTD |
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Registered Office : |
Room 706, Huake Incubation Centre, No.3 Kaihua Road, Huayuan Industrial
Park, New Technology Industry Park, Tianjin, Pr |
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Country : |
China |
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Financials (as on) : |
31/12/2006 |
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Date of Incorporation : |
Jan 4, 2006 |
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Com. Reg. No.: |
018071 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Designing, Developing and Producing Aerogenerators. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 600000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
SUZLON ENERGY (TIANJIN) CO., LTD.
ROOM 706, HUAKE INCUBATION CENTRE,
NO.3 KAIHUA ROAD, HUAYUAN INDUSTRIAL PARK,
NEW TECHNOLOGY INDUSTRY PARK, TIANJIN, PR CHINA
3 706
TEL: 0086-22-23706642
FAX: 0086-22-23706626
EXECUTIVE SUMMARY
INCORPORATION DATE :
JAN. 4, 2006
REGISTRATION NO. :
018071
REGISTERED LEGAL FORM :
WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. TULSI.R.TANTI (CHAIRMAN)
STAFF STRENGTH :
1,199
REGISTERED CAPITAL :
US$ 21,200,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 117,770,000 (AS OF DEC. 31,
2006)
EQUITIES :
CNY 162,080,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 600,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.16550=US$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 Jan. 4, 2006.
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 and developing wind power
technology; developing, producing and selling aerogenerators and related equipment and components; designing
and building wind farms; technology consulting services of above items.
SC is mainly engaged in designing, developing and producing aerogenerators.
Mr. Tulsi.R.Tanti (Indian) has been legal representative and chairman of
SC since 2006.
SC is known to have approx. 1,199 staff members 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 Tianjin. Our
checks reveal that SC owns the total premise about 250,000 square meters.
SC is not known to host website of its own at present.
E-mail: liyong.yang@suzlon.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
India Suzlon Energy Ltd. 100
Legal representative and chairman:
Mr. Tulsi.R.Tanti (Indian), born in 1958 with university education. He
is currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working
in SC as chairman and legal representative.
SC is mainly engaged in designing, developing and producing
aerogenerators.
SC’s products mainly include: aerogenerators.
SC sources its materials 60% from domestic market and 40% from the
overseas market. SC sells 5% of its products to overseas market and 95% in domestic market.
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include Check, T/T, and Credit of 30-60 days.
*Major Suppliers*
=============
Lapp Kabel (Shanghai) Co., Ltd.
*Major Customers*
==============
Guohua（Xilinguole) Renewable Energy Co., Ltd.
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:
A trade enquiry currently conducted with SC's supplier(s) reveal the
following:
Supplier
A
Products sold: cable
Date account opened: 2006
Line of credit: N/A
Terms: T/T, Credit of
30-60 days
Average monthly sales: N/A
Current balance: N/A
Rating Key: 4
Any Special Comments: _____________
Payment record keys :
1 = Prompt : Payment made before the credit period expires
2 = As agreed terms : Payment made upon due date
3 = Slightly slow but acceptable : Payment made 5 to 20 days beyond
agreed terms
4 = Slow : Payment made 16 to 45 days beyond agreed terms
5 = Poor : Payment made over 45 days beyond agreed terms
6 = No comment : Account is newly opened & record is not yet
established
Note :
In some instances, payment beyond terms can be the result of disputes
over merchandise, lost invoices, disputed accounts & etc.
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.
Industrial & Commercial Bank of China Tianjin Dafeng Road Sub-branch
AC#：0302016919300079274
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
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as of Dec. 31,
2006 |
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Cash & bank |
114,470 |
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Bills receivable |
0 |
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Accounts receivable |
52,950 |
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Other receivables |
8,670 |
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Advances to suppliers |
15,550 |
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Inventory |
186,640 |
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Prepaid expenses |
2,990 |
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Other current assets |
0 |
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Current assets |
381,270 |
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Fixed assets |
164,320 |
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Fixed assets net value |
24,930 |
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Projects under construction |
139,390 |
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Long term investment |
0 |
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Other assets |
24,740 |
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Total assets |
570,330 |
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Short loans |
195,230 |
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Bills payable |
0 |
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Accounts payable |
82,270 |
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Welfare payable |
0 |
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Advances from clients |
132,890 |
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Accrued payroll |
1,270 |
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Tax payable |
-21,510 |
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Other payable |
7,610 |
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Accrued expenses |
10,490 |
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Other current liabilities |
0 |
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Current liabilities |
408,250 |
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Long term liabilities |
0 |
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Total liabilities |
408,250 |
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Equities |
162,080 |
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Total liabilities & equities |
570,330 |
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Income
Statement
Unit: CNY’000
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as of Dec. 31,
2006 |
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Turnover |
117,770 |
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Cost of goods sold |
95,040 |
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Sales expense |
14,590 |
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Management expense |
14,350 |
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Finance expense |
2,220 |
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Profit before tax |
-7,730 |
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Less: profit tax |
0 |
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Profits |
-7,730 |
Important
Ratios
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as of Dec. 31,
2006 |
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*Current ratio |
0.93 |
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*Quick ratio |
0.48 |
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*Liabilities to assets |
0.72 |
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*Net profit margin (%) |
-6.56 |
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*Return on total assets (%) |
-1.36 |
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*Fixed assets/Total assets |
0.29 |
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*Inventory /Turnover ×365 |
579 days |
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*Accounts receivable/Turnover ×365 |
165 days |
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*Turnover/Total assets |
0.21 |
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* Cost of goods sold/Turnover |
0.81 |
PROFITABILITY:
FAIR
· The turnover of SC appears fairly good in its line.
· SC’s net profit margin is fair.
· SC’s return on total assets is fair.
· SC’s cost of goods sold is average, comparing with its turnover, which makes the net profit negative.
LIQUIDITY: FAIR
· The current ratio of SC is maintained in a fair level.
· SC’s quick ratio is maintained in a poor level.
· The inventory conversion period of SC appears too long.
· The accounts receivable of SC appears fairly large.
· SC’s short-term loan appears large.
· SC’s turnover is in a fair level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
· The debt ratio of SC is fairly high.
· The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
Credit Amount: USD 250,000.00
SC is considered large-sized in its line with fair financial conditions.
The large amount of inventory and short loan could be a threat to SC’s
financial condition. The given credit line would appear to be within SC’s
capacities.
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%)