MIRA
INFORM REPORT
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Report Date : |
13.07.2012 |
IDENTIFICATION DETAILS
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Correct Name : |
DIMEXON QINGDAO LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
07.03.2005 |
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Com. Reg. No.: |
370282400007131 |
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Legal Form : |
Wholly Foreign Owned |
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Line of Business : |
manufacturing, processing and selling
diamond and jewellery |
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No. of Employees : |
220 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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
DIMEXON QINGDAO LIMITED
TEL: 86 (0)
532-83589880 FAX: 86 (0)
532-83589661
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 7, 2005
REGISTRATION NO. : 370282400007131
REGISTERED LEGAL FORM : WHOLLY FOREIGN OWNED
STAFF STRENGTH :
220
REGISTERED CAPITAL : USD 5,940,000
BUSINESS LINE :
manufacturing, processing and trading
TURNOVER :
CNY 32,050,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 15,370,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.37= 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 correct name of SC should be the heading one
instead of the given one “Dimean (
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 March 7, 2005.
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 manufacturing and processing gold and silver
jewelry, colored gemstones, semi-precious stones, diamond jewelry, platinum,
palladium, gold, titanium, enamel and steel products, machinery and equipment
tools; manufacturing top grade handicrafts, clothing; gold and silver jewelry,
colored gemstones, semi-precious stones, diamond jewelry, platinum, palladium,
gold, titanium, enamel and steel products, machinery equipment, tools wholesale,
commission agency (excluding auction), import and export and related business
(with permit if needed).
SC is
mainly engaged in manufacturing, processing and selling diamond and jewellery.
Mr. Easwaran
Gurusamy is the legal representative and chairman of SC at present.
SC is known to
have approx. 220 employees 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
Jimo. Our checks reveal that SC owns the total premise about 10,000 square meters.
SC is not known to host website of its own at present.
Changes of its registered information:
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Date of change |
Item |
Before the
change |
After the change |
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Unknown |
Main Shareholders |
Eurostar ( |
( |
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2006-06 |
Registered capital |
USD 2,100,000 |
USD 2,940,000 |
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Unknown |
Registered capital |
USD 2,940,000 |
USD 3,940,000 |
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Legal representative |
Vishal P. Mehta |
Present one |
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Registered capital |
USD 3,940,000 |
Present amount |
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2011-11 |
Company name |
Qingdao Dimexon Eurostar Diamond &
Jewellery Co., Ltd. |
Present one |
MAIN SHAREHOLDERS:
Name %
of Shareholding
(
Legal
representative and chairman:
Mr. Easwaran Gurusamy is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as chairman and legal representative
SC is mainly
engaged in manufacturing, processing and selling diamond and jewellery.
Main Products:
diamond & jewellery.
SC sources its materials 10%
from domestic market, and 90% from overseas market, mainly
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.
Note: SC’s management declined to release its main clients and
suppliers.
Dimexon
Diamond (
Etc.
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
AC# 01-109400804608092014
Relationship:
Financial Summary
Unit: CNY’000
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as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
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Total Liabilities |
22,020 |
16,920 |
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Shareholders equities |
14,810 |
15,370 |
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Total Assets |
36,830 |
32,290 |
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Turnover |
29,950 |
32,050 |
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Profit before tax |
-7,230 |
1,200 |
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Net profit |
-7,230 |
1,200 |
Note: SC's accountant refused to release
SC’s detailed financial reports for Yr 2010 & Yr2011.
Important
Ratios
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as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
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*Liabilities
to assets |
0.60 |
0.52 |
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*Net profit
margin (%) |
-24.14 |
3.74 |
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*Return on
total assets (%) |
-19.63 |
3.72 |
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*Turnover/Total
assets |
0.81 |
0.99 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line, and
it increased in 2011.
l
SC’s net profit margin is poor in 2010 and average
in 2011.
l
SC’s return on total assets is poor in 2010 and
average in 2011.
l
SC’s turnover is in a fair level in 2010 and in an average
level in 2011, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
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.
DIAMOND INDUSTRY –
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From time immemorial,
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The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
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The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
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Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
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Family owned diamond businesses need to improve on many
fronts including higher standard of corporate governance, long-term performance
– focused strategies, modern management and technology.
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The diamond jewellery industry in
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Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
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Excerpts from Times of India dated 30th
October 2010 is as under –
DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in
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Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.55.70 |
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1 |
Rs.86.28 |
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Euro |
1 |
Rs.68.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.