MIRA
INFORM REPORT
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Report Date : |
02.06.2012 |
IDENTIFICATION DETAILS
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Name : |
DSM ENGINEERING PLASTICS ( |
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Registered Office : |
No. 18, Panlongshan Road, Economic Development Zone, Jiangyin, Jiangsu Province, 214434 Pr |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
30.06.1995 |
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Com. Reg. No.: |
320281400001615 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
manufacturing and selling composite
materials |
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No. of Employees : |
300 |
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
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
China |
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
DSM ENGINEERING PLASTICS
(JIANGSU) CO., LTD.
NO. 18, PANLONGSHAN ROAD, ECONOMIC
DEVELOPMENT ZONE,
JIANGYIN, JIANGSU PROVINCE, 214434 PR CHINA
TEL: 86 (0) 510-86198288 FAX: 86 (0) 510-86198208
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN. 30, 1995
REGISTRATION NO. :
320281400001615
REGISTERED LEGAL FORM :
WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. JAYANT V DHOBLEY (CHAIRMAN)
STAFF
STRENGTH : 300
REGISTERED CAPITAL : USD 59,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 1,286,140,000 (AS OF DEC.
31, 2009)
EQUITIES :
CNY 183,810,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.34= 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 Renminbi
%20CO%20,%20LTD%20%20-%20182046%2002-Jun-2012_files/image013.gif){kind=small}
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
Jun. 30, 1995.
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
chemical products (engineering plastics), providing related technical services
and application development support systems; wholesaling the same chemicals
(composite materials).
SC is
mainly engaged in manufacturing and selling composite materials.
Mr.
Jayant V Dhobley is legal representative and chairman of SC at present.
SC is known to have approx. 300 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the development zone of
Jiangyin. Our checks reveal that SC owns the total premise, but the gross area
of the premise is unspecified.
%20CO%20,%20LTD%20%20-%20182046%2002-Jun-2012_files/image014.gif){kind=small}
http://www.dsm.com/ The
web belongs to DSM Corporate. The design is professional and the content is
well organized. At present it is in English and Chinese versions.
%20CO%20,%20LTD%20%20-%20182046%2002-Jun-2012_files/image015.gif){kind=small}
Changes
of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
Unknown |
Registered no. |
000180 |
Present one |
|
Registered capital |
USD 39,000,000 |
Present amount |
%20CO%20,%20LTD%20%20-%20182046%2002-Jun-2012_files/image016.gif){kind=small}
MAIN SHAREHOLDERS:
Name %
of Shareholding
(Netherlands) DSM Engineering
Plastics (China) B.V. 100
%20CO%20,%20LTD%20%20-%20182046%2002-Jun-2012_files/image017.gif){kind=small}
Legal
representative and chairman:
Mr. Jayant V Dhobley, # 21578142, with university education. He is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as chairman and legal representative.
General manager:
Mr. Yuan Yong , born in 1964, with university education. He is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working
in SC as general manager.
%20CO%20,%20LTD%20%20-%20182046%2002-Jun-2012_files/image018.gif){kind=small}
SC is
mainly engaged in manufacturing and selling composite materials.
SC’s products mainly include: High-performance composite
materials, etc.
SC sources its materials 80% from domestic market and 20%
from the overseas market. SC sells 70% of its products to overseas market and 30% 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, L/C, and Credit of
30-60 days.
Note: SC’s management declined to release its customer and supplier
details.
%20CO%20,%20LTD%20%20-%20182046%2002-Jun-2012_files/image019.gif){kind=small}
SC
is not known to have any subsidiary at present.
%20CO%20,%20LTD%20%20-%20182046%2002-Jun-2012_files/image020.gif){kind=small}
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.
%20CO%20,%20LTD%20%20-%20182046%2002-Jun-2012_files/image021.gif){kind=small}
SC’s accountant declined
to release its banking details.
%20CO%20,%20LTD%20%20-%20182046%2002-Jun-2012_files/image022.gif){kind=small}
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2008 |
as
of Dec. 31, 2009 |
|
Cash
& bank |
51,038 |
51,040 |
|
Bills
receivable |
15,683 |
1,140 |
|
Accounts
receivable |
83,606 |
152,850 |
|
Other
receivables |
11,440 |
5,080 |
|
Advances to
suppliers |
41,390 |
39,710 |
|
Inventory |
216,351 |
159,710 |
|
Prepaid expenses |
0 |
0 |
|
Other
current assets |
1,725 |
1,410 |
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|
------------------ |
------------------ |
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Current
assets |
421,233 |
410,940 |
|
Fixed
assets net value |
434,261 |
451,940 |
|
Projects
under construction |
50,403 |
30 |
|
Long
term investment |
0 |
0 |
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Other
assets |
0 |
13,860 |
|
|
------------------ |
------------------ |
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Total
assets |
905,897 |
876,770 |
|
|
============= |
============= |
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Short
loans |
141,670 |
78,710 |
|
Bills
payable |
0 |
0 |
|
Accounts
payable |
85,814 |
123,810 |
|
Welfare
payable |
0 |
0 |
|
Advances from
clients |
1,160 |
15,370 |
|
Accrued
payroll |
6,377 |
0 |
|
Tax payable |
10,000 |
11,900 |
|
Other
payable |
106,544 |
96,060 |
|
Long-term
liabilities due with in one year |
31,442 |
0 |
|
Surcharge
payable |
0 |
0 |
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Other
current liabilities |
4,729 |
6,980 |
|
|
------------------ |
------------------ |
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Current
liabilities |
387,736 |
332,830 |
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Long
term liabilities |
350,254 |
360,130 |
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|
------------------ |
------------------ |
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Total
liabilities |
737,990 |
692,960 |
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Equities |
167,907 |
183,810 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
905,897 |
876,770 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2008 |
as of Dec. 31,
2009 |
|
Turnover |
906,327 |
1,286,140 |
|
Cost of goods
sold |
933,535 |
1,120,790 |
|
Income
from other operations |
-55,156 |
6,690 |
|
Sales expense |
1,180 |
61,760 |
|
Management expense |
76,287 |
49,340 |
|
Finance expense |
16,471 |
20,810 |
|
Non-operating
income |
797 |
320 |
|
Non-operating
expense |
60 |
10 |
|
Profit before
tax |
-175,565 |
40,440 |
|
Less: profit tax |
16,578 |
13,230 |
|
Profits |
-192,143 |
27,210 |
Note: SC’s latest financial reports can not be found in local AIC.
Important Ratios
=============
|
|
as
of Dec. 31, 2008 |
as
of Dec. 31, 2009 |
|
*Current ratio |
1.09 |
1.23 |
|
*Quick ratio |
0.53 |
0.75 |
|
*Liabilities
to assets |
0.81 |
0.79 |
|
*Net profit
margin (%) |
-21.20 |
2.12 |
|
*Return on
total assets (%) |
-21.21 |
3.10 |
|
*Inventory /Turnover
×365 |
87 days |
45 days |
|
*Accounts
receivable/Turnover ×365 |
34 days |
43 days |
|
*Turnover/Total
assets |
1.00 |
1.47 |
|
* Cost of
goods sold/Turnover |
1.03 |
0.87 |
%20CO%20,%20LTD%20%20-%20182046%2002-Jun-2012_files/image023.gif){kind=small}
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good
in its line, and it increased in 2009.
l
SC’s net profit margin is poor in 2008
and average in 2009.
l
SC’s return on total assets is poor in
2008 and average in 2009.
l
SC’s cost of goods sold is high in 2008
and average in 2009, comparing with its turnover.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained
in a normal level in both years.
l
SC’s quick ratio is maintained in a
fair level in both years.
l
The inventory of SC appears fairly
large in both years.
l
The accounts receivable of SC appears
average in 2008 and fairly large in 2009.
l
SC’s short-term loan is fairly large in
2008 and average in 2009.
l
SC’s turnover is in an average level,
comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is above
average.
Overall
financial condition of the SC: Fairly stable.
%20CO%20,%20LTD%20%20-%20182046%2002-Jun-2012_files/image024.gif){kind=small}
SC is considered medium-sized in its line with fairly stable
financial conditions. The large amount of inventory and accounts receivable
could be a threat to SC’s financial condition. A
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.92 |
|
UK Pound |
1 |
Rs.86.03 |
|
Euro |
1 |
Rs.69.13 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
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 |
|
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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.