MIRA INFORM REPORT
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Report Date : |
06.04.2011 |
IDENTIFICATION DETAILS
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Name : |
DAHUACHEM INTERNATIONAL ECONOMIC & TRADE
CORPORATION |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
17.11.1989 |
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Com. Reg. No.: |
2102001100838 |
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Legal Form : |
State-Owned |
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Line of Business : |
Importing and Exporting Chemical Products |
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 400,000 |
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Status : |
Satisfactory |
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Payment
Behaviour : |
No Complaints |
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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 – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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a2 |
a2 |
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Risk Category |
ECGC
Classification |
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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 |
Company name & address
dahuachem
international economic & trade corporation
no.
TEL: 86 (0) 411-86678049 FAX: 86 (0) 411-86670615
EXECUTIVE SUMMARY
INCORPORATION
DATE : november 17, 1989
REGISTRATION
NO. : 2102001100838
REGISTERED
LEGAL FORM : State-owned
STAFF
STRENGTH : 70
REGISTERED
CAPITAL : CNY 60,000,000
BUSINESS
LINE : trading
TURNOVER : CNY 236,440,000
(UNaudited, AS OF DEC. 31, 2009)
EQUITIES : CNY
55,040,000 (UNaudited, AS OF DEC. 31, 2009)
PAYMENT
: AVERAGE
RECOMM.
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : fairly STABLE
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.83 = USD
1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: The given phone number is incorrect.
SC was registered as a state-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on November 17, 1989.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered business scope includes importing
and exporting various kinds of commodities and technology, excluding the goods
forbidden by the government, processing with imported materials, processing
with imported samples, assemblying with imported parts, and compensation trade
in agreement; counter trade & transit trade, selling fertilizers
and plastic products.
SC is mainly engaged in importing and
exporting chemical products.
Mr. Kui Zhihong is general manager of SC at
present.
SC is known to have approx. 70 employees at present.
SC is currently operating
at the above stated address, and this address houses its operating office in
the commercial zone of Dalian. Our checks reveal that SC rents the total
premise about 1,000 square meters.
http://www.dahuachem.com
The design is professional and the content is well organized. At present the
web site is in Chinese, Japanese and English versions.
E-mail: lijun@dahuachem.com
SUPERIOR DEPARTMENTS:
Name
Dahua Group Co., Ltd.
Address:
Tel: 86 0411-86893688
E-mail: dahua@dahuag.com.cn
l
Legal
Representative and General Manager:
Mr. Kui Zhihong,
with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working
in SC as legal representative and general manager.
SC is mainly engaged in importing and
exporting chemical products.
SC’s products mainly include: ammonium sulfate,
ammonium nitrate for industry, n.p.k compound fertilizer, sodium nitrite,
sodium phosphate tribasic, potassium perchloirate, electrolyic mangnese
dioxide, potassium ferriccynide, and etc.
SC sources its materials 70% from domestic market, and 30% from
overseas market, mainly
The buying terms of
SC include T/T, L/C and Credit of 30-60 days. The payment terms of SC include
T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
HK Dahuachem
International Economic & Trade Corp. Limited
*Major Supplier:
============
Dahua Group 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 : 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.
Bank of
AC#：400400239608091001
Relationship:
Balance Sheet
|
Unit: CNY’000 |
as of Dec. 31, 2008 |
Unaudited, as of Dec. 31,
2009 |
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Cash & bank |
71,780 |
310,160 |
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Inventory |
740 |
1,190 |
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Accounts receivable |
162,760 |
120,060 |
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Other Accounts receivable |
194,480 |
-36,890 |
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To be apportioned expense |
0 |
0 |
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Other current assets |
8,760 |
145,580 |
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------------------ |
------------------ |
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Current assets |
438,520 |
540,100 |
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Fixed assets net value |
720 |
720 |
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Projects under construction |
0 |
0 |
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Long term investment |
0 |
0 |
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Other assets |
530 |
510 |
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------------------ |
------------------ |
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Total assets |
439,770 |
541,330 |
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============= |
============= |
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Short loans |
105,340 |
333,680 |
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Accounts payable |
4,600 |
0 |
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Other Accounts payable |
81,140 |
72,580 |
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Withdraw the expenses in advance |
0 |
0 |
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Other current liabilities |
38,140 |
80,030 |
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------------------ |
------------------ |
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Current liabilities |
229,220 |
486,290 |
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Long term liabilities |
160,600 |
0 |
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Other liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
389,820 |
486,290 |
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Equities |
49,950 |
55,040 |
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------------------ |
------------------ |
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Total liabilities & equities |
439,770 |
541,330 |
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============= |
============= |
Income Statement
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Unit: CNY’000 |
Unaudited, as of Dec. 31, 2009 |
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Turnover |
236,440 |
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Cost of goods sold |
213,040 |
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Sales expense |
18,560 |
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Management
expense |
3,890 |
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Finance expense |
2,670 |
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Profit before tax |
5,900 |
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Less: profit tax |
0 |
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Profits |
5,900 |
Important Ratios
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As of Dec. 31, 2008 |
As of Dec. 31, 2009 |
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*Current ratio |
1.91 |
1.11 |
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*Quick ratio |
1.91 |
1.11 |
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*Liabilities to assets |
0.89 |
0.90 |
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*Net profit margin (%) |
/ |
2.50 |
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*Return on total assets (%) |
/ |
1.09 |
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*Inventory /Turnover ×365 |
/ |
2 days |
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*Accounts receivable/Turnover ×365 |
/ |
185 days |
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*Turnover/Total assets |
/ |
0.44 |
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* Cost of goods sold/Turnover |
/ |
0.90 |
PROFITABILITY: AVERAGE
l
The
turnover of SC appears fairly good in its line.
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 fairly 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
inventory of SC is maintained in an average level.
l
The
accounts receivable of SC appears fairly large.
l
The
short-term loan of SC appears large.
l
SC’s
turnover is in a fair level, comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt
ratio of SC is 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. The large amount
of short loans could be a threat to SC’s financial condition. A credit line at
the above amount appears to be beyond SC’s capacities, while a credit line up
to USD 400,000 is recommended.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.45 |
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|
1 |
Rs.71.59 |
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Euro |
1 |
Rs.63.01 |
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 |
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 |
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.