MIRA INFORM REPORT

 

 

Report Date :

13.07.2012

 

IDENTIFICATION DETAILS

 

Name :

DYSTAR  CHINA  LTD.

 

 

Formerly Known As :

Chemdyes Ltd

 

 

Registered Office :

Room 1802B-1808, 18/F., Yen Sheng Centre, 64 Hoi Yuen Road, Kwun Tong, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

25.10.1994

 

 

Com. Reg. No.:

18710922

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Distributor and Wholesaler, Investment Holding of all kinds of dyestuffs and pigments for textile industry

 

 

No. of Employees :

30.  (Hong Kong)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

Payment Behaviour :

No Complaints

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

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D


Company name

 

DYSTAR  CHINA  LTD.

 

 

company ADDRESS    

 

Room 1802B-1808, 18/F., Yen Sheng Centre, 64 Hoi Yuen Road, Kwun Tong, Kowloon, Hong Kong.

PHONE:            2955 3388;  2955 1118

FAX:                 2955 1188;  2955 1133

 

E-MAIL:                        dystar.china@dystar.com

hopmann.eric@dystar.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Chang Sheng

 

 

SUMMARY

 

Incorporated on:             25th October, 1994.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$71,100,000.00

Issued:              HK$71,005,503.00

 

Business Category:        Dyestuff Merchant.

 

Revenue of Parent Company:  US$776,857,000  (Year ended 31-12-2011)

 

Employees:                   30.  (Hong Kong)

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Good.


Company ADDRESS

 

Registered Head Office:-

Room 1802B-1808, 18/F., Yen Sheng Centre, 64 Hoi Yuen Road, Kwun Tong, Kowloon, Hong Kong.

 

China Liaison Offices: 

Beijing, Guangzhou, Shantou, Wuhan and Xi’an.

 

China Factories:-

DyStar Nanjing Colours Co. Ltd., China.

DyStar Wuxi Colours Co. Ltd., China.

 

Holding Company:-

Kiri Holding Singapore Private Ltd., Singapore.

 

Ultimate Holding Companies:-

Kiri Industries Ltd., India.

Zhejiang Longsheng Group Co. Ltd., China.

 

Associated/Affiliated Companies:-

DyStar Group of Companies

Boehme Filatex Inc., USA.

Boehme Pan America Industrial Ltda., Brazil.

Boehme Thai Co. Ltd., Thailand.

DyStar (Shanghai) Trading Co. Ltd., China.

DyStar Anilinas Têxteis Unipessoal Lda., Portugal.

DyStar Benelux N.V., Belgium.

DyStar Boehme Africa (Pty) Ltd., South Africa.

DyStar Colours Distribution GmbH, Germany.

DyStar de México S. de R.L. de C.V., Mexico.

DyStar France S.a.r.l., France.

DyStar Hispania S.L., Spain.

DyStar India Private Ltd., India.

DyStar Italia S.r.l., Italy.

DyStar Japan Ltd., Japan.

DyStar Korea Ltd., Korea.

DyStar L.P., USA.

DyStar Ltda., Brazil.

DyStar Pakistan (Private) Ltd., Pakistan.

DyStar Singapore Pte. Ltd., Singapore.

DyStar Taiwan Ltd., Taiwan.

DyStar Tekstil Boya ve Teknolojisi Sanayi Ticaret Ltd., Turkey.

DyStar Thai Ltd., Thailand.

DyStar UK Ltd., UK.

DyStar Vertrieb D-A-CH/Nordica, Germany.

P.T. DyStar Colours Indonesia, Indonesia.

etc.


BUSINESS REGISTRATION NUMBER

 

18710922

 

 

COMPANY FILE NUMBER

 

 0494986

 

 

MANAGEMENt

 

Managing Director:  Mr. Chang Sheng

 

CAPITAL

 

Nominal Share Capital:   HK$71,100,000.00 (Divided into 71,100,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$71,005,503.00

 

 

SHAREHOLDER

(As per registry dated 25-10-2011)

 

Name

 

No. of shares

Kiri Holding Singapore Private Ltd.

8 Cross Street, #11-00, PWC Building, Singapore 048424

 

71,005,503

========

 

 

DIRECTORS

(As per registry dated 28-05-2012)

 

Name

(Nationality)

 

Address

Yalin XU

929 Bukit Timah Road, #03-21, Singapore 589642

 

CHANG Sheng

Room 601,Flat 1, Building 6, YuanMengYuan, Jianggan District, Hangzhou, Zhejiang, China.

 

LUO Bin

1996 Zhangyang Road, (Changning), Pudong District, Shanghai, China.

 

Shankerbhai Rughnathbhai PATEL

41, Srunath Park Soc. Nr. Manekbag Octroi Naka, Manekbag, Ambawadi, Ahmedabad, India.

 

Sureshkumar Savajibhai GONDALIA

B/7, Ruchi Apartment, Lad Soc. Road, Nehru Park, Vastrapur, India.

 

 

SECRETARY

(As per registry dated 25-10-2011)

 

Name

(Nationality)

 

Address

NG Wai Yee

Room 1906, 19/F., Tai Hang Terrace, 5 Chun Fai Road, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 25th October, 1994 as a private limited liability company under the Hong Kong Companies Ordinance.

 

It was originally registered under the name of Maine International Ltd., name changed to Chemdyes Ltd. on 3rd January, 1995, and further to the present style on 20th June, 1995.

 

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                                  Importer, Distributor and Wholesaler, Investment Holding.

 

Lines:                                       All kinds of dyestuffs and pigments for textile industry.

 

Employees:                               30.  (Hong Kong)

 

Commodities Imported:               Imported from Germany and China.

 

Markets:                                   Worldwide.

 

Revenue of Parent Company:      US$611,970,000  (Year ended 31-12-2010)

US$776,857,000  (Year ended 31-12-2011)

 

Terms/Sales:                             Various terms.

 

Terms/Buying:                           As per contracted.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:               HK$71,100,000.00 (Divided into 71,100,000 shares of HK$1.00 each)

 

Issued Share Capital:                 HK$71,005,503.00

 

Indebtedness:                            HK$80,000.00 

(Total amount outstanding on all mortgages and charges as per last Annual Return dated 25-10-2011)

 

Mortgage or Charge:-

 

Date of  Security Over Deposits with the Bank (Limited Company – Under Seal):  11-07-2007

 

Amount:            To secure all monies in respect of banking facilities

 

Property:           Initially HK$40,000 and all monies whether now or hereafter standing to the credit of the Company’s deposit with the Bank under deposit No. 511-357717 and whatever currency it may subsequently be denominated in, any renewal of such deposit and the interest thereon together with any further moneys in any deposit account with the Bank at any of its offices

 

Mortgagee:        The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Profit/(Loss) of Parent:    US$106,661,000  (Year ended 31-12-2010)

(US$    1,510,000) (Year ended 31-12-2011)

 

Profit & Loss:                Parent made a loss in 2011.

 

Condition:                      Keeping in a very active manner.

 

Facilities:                     Making active use of general banking facilities.

 

Payment:                      So far so good.

 

Commercial Morality:     Good.

 

Bankers:-

·         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

State Bank of India, Frankfurt Branch, Germany.

 

Standing:                      Good.


GENERAL

 

DyStar China Ltd. is a wholly-owned subsidiary of Kiri Holding Singapore Private Ltd. [Kiri Singapore], a Singapore-based firm.

Kiri Singapore is jointly owned by Kiri Industries Ltd. [Kiri Industries], an India-based firm, and Zhejiang Longsheng Group Co. Ltd. [Longsheng], a China-based firm.

Since Longsheng has become a holding company of the subject, several China directors have been appointed.  On the other hand, the India directors also have been changed.

In early 2001, the subject’s nominal capital was increased from HK$60,000,000.00 to HK$71,100,000.00, while the issued share capital was increased from HK$40,230,000.00 to HK$71,005,503.00 in order to cope with business expansion.

However, DyStar was acquired by Kiri Dyes & Chemicals Ltd. [KDC] which was an India-based firm in late 2009.  KDC has taken over the management of DyStar Group since February 2010.  Now, KDC has been renamed as Kiri Industries.  Kiri Industries is not the sole owner of DyStar.

Kiri Industries is one of the foremost manufacturers and suppliers of high quality dyes and intermediates in the dyestuff industry.  Through innovation, dedication to total quality and consumer satisfaction, as well as commitment to research and development, Kiri Industries has succeeded in meeting the needs of a broad range of customers worldwide.

Kiri Industries production facilities are strategically located in the heart of chemical industrial zone, which provides comparative ease and convenience to effectively utilize the Common Effluent Treatment Plant to further treat outlets.  Centralized administration is established in highly commercial area of the city, Ahmedabad, India.

DyStar Group claims about 21% market share in dyes and pigments space globally.  It supplies products to companies across sectors including apparel, hosiery and automotive.  It has presence across 50 countries globally with employee strength of 3,500 people.

The subject commenced operation on 1st July, 1995 as a marketing office for the Group.  It mainly imports textile colorants from Germany, India for distribution in Hong Kong and China.

In addition, DyStar has set up a joint venture known as DyStar Wuxi Colours Co. Ltd. in Wuxi, Jiangsu Province, China in partnership with Wuxi Dyestuff Factory to produce textile dyestuffs which bear the brand name “DyStar”.  Besides, another factory known as DyStar Nanjing Colours Co. Ltd. [DyStar Nanjing] has been set up in Nanjing City, Jiangsu Province, China.

DyStar has invested around US$55 million in DyStar Nanjing which is in Nanjing to extend its production base in China.

Now, the Group has got a number of offices in China located at large cities such as Shanghai, Beijing, Guangzhou, Shantou, Wuhan, Xi’an, etc.  The one in Shanghai is known as DyStar (Shanghai) Trading Co. Ltd.  This firm was established in September 2003.

For the year ended 31stDecember, 2011, the revenue of Kiri Singapore amounted to US$776.9 million (2010: US$612.0 million); loss for the year was US$1.5 million (2010: a profit of US$106.7 million).

Longsheng is a listed firm in China.  It shares have been traded in Shanghai Stock Exchange bearing code No. 600352.

The subject’s history in Hong Kong is over seventeen years.

On the whole, in view of the background and parentage of the subject, consider it good for normal business engagements.


MORTGAGE OR CHARGE

 

Date

Particulars

Amount

20-02-2012

Instrument:      Debenture constituting a fixed and/or floating charge over all the assets of the Company

Property:

(a)  By way of first fixed legal charge to the Security Agent

(b)  By way of first floating charge all the Chargor’s undertaking and all its property, assets and rights, & etc.

Mortgagee:      State Bank of India, Frankfurt Branch
Mainzer Landstraße 61, 60329 Frankfurt am Main, Gernaby,

The Outstanding Indebtedness, all monies which are from time to time due or owing, present and future, actual or contingent obligations of Dystar Global Holding (Singapore) Pte. Ltd. and Dystar China Ltd. under the Finance Documents and the Credit Agreements


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.70

UK Pound

1

Rs.86.28

Euro

1

Rs.68.15

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.