MIRA
INFORM REPORT
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Report Date : |
28.09.2012 |
IDENTIFICATION DETAILS
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Name : |
JYSK ( |
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Registered Office : |
Room 1608 |
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Country : |
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Financials (as on) : |
31.08.2012 |
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Date of Incorporation : |
10.07.2009 |
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Com. Reg. No.: |
310000400601694 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Selling
Household Commodities |
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No. of Employees : |
79
(Including Subsidiaries) |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow and delayed |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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 |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned
system to a more market-oriented one that plays a major global role - in 2010
China became the world's largest exporter. Reforms began with the phasing out
of collectivized agriculture, and expanded to include the gradual
liberalization of prices, fiscal decentralization, increased autonomy for state
enterprises, creation of a diversified banking system, development of stock
markets, rapid growth of the private sector, and opening to foreign trade and
investment. China has implemented reforms in a gradualist fashion. In recent
years, China has renewed its support for state-owned enterprises in sectors it
considers important to "economic security," explicitly looking to
foster globally competitive national champions. After keeping its currency
tightly linked to the US dollar for years, in July 2005 China revalued its
currency by 2.1% against the US dollar and moved to an exchange rate system
that references a basket of currencies. From mid 2005 to late 2008 cumulative
appreciation of the renminbi against the US dollar was more than 20%, but the
exchange rate remained virtually pegged to the dollar from the onset of the
global financial crisis until June 2010, when Beijing allowed resumption of a
gradual appreciation. The restructuring of the economy and resulting efficiency
gains have contributed to a more than tenfold increase in GDP since 1978.
Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, China in 2010 stood as the second-largest economy in the world
after the US, having surpassed Japan in 2001. The dollar values of China's
agricultural and industrial output each exceed those of the US; China is second
to the US in the value of services it produces. Still, per capita income is
below the world average. The Chinese government faces numerous economic
challenges, including: (a) reducing its high domestic savings rate and
correspondingly low domestic demand; (b) sustaining adequate job growth for
tens of millions of migrants and new entrants to the work force; (c) reducing
corruption and other economic crimes; and (d) containing environmental damage
and social strife related to the economy's rapid transformation. Economic
development has progressed further in coastal provinces than in the interior,
and by 2011 more than 250 million migrant workers and their dependents had
relocated to urban areas to find work. One consequence of population control
policy is that China is now one of the most rapidly aging countries in the
world. Deterioration in the environment - notably air pollution, soil erosion,
and the steady fall of the water table, especially in the North - is another
long-term problem. China continues to lose arable land because of erosion and
economic development. The Chinese government is seeking to add energy
production capacity from sources other than coal and oil, focusing on nuclear
and alternative energy development. In 2010-11, China faced high inflation
resulting largely from its credit-fueled stimulus program. Some tightening
measures appear to have controlled inflation, but GDP growth consequently
slowed to near 9% for 2011. An economic slowdown in Europe is expected to
further drag Chinese growth in 2012. Debt overhang from the stimulus program,
particularly among local governments, and a property price bubble challenge
policy makers currently. The government's 12th Five-Year Plan, adopted in March
2011, emphasizes continued economic reforms and the need to increase domestic
consumption in order to make the economy less dependent on exports in the
future. However, China has made only marginal progress toward these rebalancing
goals.
|
Source : CIA |
Company name & address
JYSK (Shanghai) Trading
Co., Ltd.
room 1608 jiaxing building, no. 877 dongfang road
shanghai 200122 PR CHINA
TEL: 86 (0) 21-68670227/50819858
FAX: 86 (0) 21-68670227
EXECUTIVE SUMMARY
Date of Registration : july 10, 2009
REGISTRATION NO. : 310000400601694
LEGAL FORM : WHOLLY FOREIGN-OWNED
enterprise
REGISTERED CAPITAL : usd 12,000,000
staff : 79 (including
SUBSIDIARIES)
BUSINESS CATEGORY : trading
Sale : CNY 19,249,000 (AS OF
AUG. 31, 2012)
EQUITIES : CNY 8,795,000 (AS OF AUG. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : fair
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.31 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
LEGAL STATUS & HISTORY
***Note: SC’s headquarter address should be the heading one,
while SC’s Fenghe Road Branch locates in the (Room 3308,
SC was
established as a wholly foreign-owned enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 310000400601694 on July 10,
2009.
SC’s Organization Code Certificate
No.: 69018954-0
%20TRADING%20CO%20,%20LTD%20%20-%20194668%2028-Sep-2012_files/image002.jpg)
SC’s registered capital: USD 12,000,000
SC’s paid-in capital: USD 12,000,000
Registration Change Record:
|
Date |
Change of
Contents |
Before the
change |
After the change |
|
2010 |
Registered Capital |
USD 3,000,000 |
USD 12,000,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
(Denmark) LLCN HOLDING APS |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Jan Bogh |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(Denmark) LLCN HOLDING APS 100
------------------------------------------
Add: Sødalsparken 18 DK-8220 Brabrand
Phone (+45) 89 39 75 00
Fax (+45) 89 39 75 01
MANAGEMENT
Jan Bogh, Legal Representative, Chairman, and General
Manager
-------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: Denmark
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman, and general manager
Also
working in Jysk (Shanghai) Trading Co., Ltd. Banqiao West Road Branch, Jysk
(Shanghai) Trading Co., Ltd. Changjiang West Road Branch and Jysk (Shanghai)
Trading Co., Ltd. Fenghe Road Branch as principle
BUSINESS OPERATION
SC’s
registered business scope includes wholesaling, retailing, importing and
exporting textiles, leather products, household appliances, hardware products,
furniture, lighting equipment, household utensils glass, chinaware, wallpaper,
cleaning products (excluding hazardous goods), watch, clock, jewelry, art &
crafts, toys, baby products, children's products, bed necessaries, feather
products, sanitary ware, household adornment, window decoration, garden tools,
camping products and other related household articles; commission agent (excluding
auction); providing supporting service. (with permit if needed).
SC is mainly
engaged in selling household commodities.
SC’s products
mainly include bed necessaries, sanitary ware, etc.
SC sources its materials
20% from domestic market and 80% from overseas market. SC sells 95% in domestic
market and 5% to overseas market.
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.
Staff & Office:
--------------------------
SC is
known to have approx. 79 staff at present.
SC
rents an area as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is known to have the
following branches at present,
· Jysk (Shanghai) Trading Co., Ltd. Banqiao West Road Branch
Jysk
(Shanghai) Trading Co., Ltd. Changjiang West Road Branch
Jysk
(Shanghai) Trading Co., Ltd. Fenghe Road Branch
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
Bank of China
Pudong Branch
AC#:
044188805017750908091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Aug. 31, 2012 |
|
Current assets |
17,991 |
57,008 |
43,929 |
|
Long-term
investment |
0 |
0 |
0 |
|
Fixed assets |
770 |
8,472 |
7,331 |
|
Intangible
assets |
0 |
2,916 |
1,914 |
|
Other assets |
462 |
16,062 |
15,757 |
|
|
------------------ |
------------------ |
------------------ |
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Total assets |
19,223 |
84,458 |
68,931 |
|
|
============= |
============= |
============= |
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Current
liabilities |
117 |
52,585 |
51,341 |
|
Non-current
liabilities |
0 |
0 |
8,795 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
117 |
52,585 |
60,136 |
|
Equities |
19,106 |
31,873 |
8,795 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
19,223 |
84,458 |
68,931 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Aug. 31,
2012 |
|
Sale |
13,213 |
30,771 |
19,249 |
|
Cost of sales |
8,605 |
19,333 |
12,178 |
|
Profit before
tax |
-25,149 |
-37,283 |
-22,099 |
|
Less: profit tax |
-6,281 |
-9,312 |
451 |
|
-18,868 |
-27,971 |
-22,550 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Aug. 31, 2012 |
|
*Current ratio |
153.77 |
1.08 |
0.86 |
|
*Quick ratio |
-- |
-- |
-- |
|
*Liabilities
to assets |
0.006 |
0.62 |
0.87 |
|
*Net profit
margin (%) |
-142.80 |
-90.90 |
-117.15 |
|
*Return on
total assets (%) |
-98.15 |
-33.12 |
-32.71 |
|
*Inventory /
Sale ×365 |
-- |
-- |
-- |
|
*Accounts
receivable/ Sale ×365 |
-- |
-- |
-- |
|
* Sale/Total
assets |
0.69 |
0.36 |
0.28 |
|
* Cost of
sales / Sale |
0.65 |
0.63 |
0.63 |
FINANCIAL COMMENTS
PROFITABILITY:
POOR
l
The sale of SC appears
average in its line.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is poor.
l
SC’s cost of goods sold is average, comparing with
its sale.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s sale is in a poor
level, 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 above average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with
fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.26 |
|
UK Pound |
1 |
Rs.86.23 |
|
Euro |
1 |
Rs.68.64 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.