MIRA
INFORM REPORT
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Report Date : |
12.02.2014 |
IDENTIFICATION DETAILS
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Name : |
DARDI INTERNATIONAL CORPORATION |
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Registered Office : |
No. 39 Maoshan Road,
Gaochun Economic Development Zone, Nanjing, Jiangsu Province, 211300 PR |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
31.03.2006 |
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Com. Reg. No.: |
320100000057931 |
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Legal Form : |
Shares Limited Co |
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Line of Business : |
Subject is engaged in R&D, manufacturing, selling of ultra-high
pressure waterjet technology application products. |
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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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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 2012 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 under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
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
DARDI INTERNATIONAL CORPORATION
NO. 39 Maoshan Road, Gaochun Economic
Development Zone,
Nanjing, JIANGSU PROVINCE, 211300 PR CHINA
TEL: 86 (0) 25-57350000
FAX: 86 (0) 25-57324297
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 31, 2006
REGISTRATION NO. : 320100000057931
REGISTERED LEGAL FORM : SHARES LIMITED CO.
CHIEF EXECUTIVE :
MR. CHEN BO (CHAIRMAN)
STAFF STRENGTH :
300
REGISTERED CAPITAL : CNY 48,900,000
BUSINESS LINE :
r & d, Manufacturing & SELLING
TURNOVER :
CNY 188,012,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 124,408,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.07 = 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
Note: The “
SC was registered as a Shares limited co. at local Administration for
Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Mar. 31, 2006.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital of
a co. is CNY The board of directors must
consist of five to nineteen directors. If the co. raises
capital by public offer, the promoters must not subscribe less than 35% of
the total shares. the promoters’ shares are restricted to transfer- within
one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes R & D, production, sale on
high pressure water cutting machines, pressure washers, CNC machine tools, pressure
equipment, high pressure systems, hydraulic equipment and spare parts and
related application products, technical and business-related services and
products, import and export of supporting devices and parts. (with permit if
needed)
SC is mainly engaged in R&D, manufacturing, selling of ultra-high
pressure waterjet technology application products.
Mr. Chen Bo has been the legal representative, chairman and general
manager of SC since 2006.
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 economic development zone of
Nanjing. Detailed information of the premise is unspecified.
http://www.dardiwaterjet.com/
The design is professional and the content is well organized. At present it is
in Chinese, English and other versions.
E-mail: dardi@dardiwaterjet.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-11 |
Chinese Name |
南京大地超高压机械科技股份有限公司 |
Present one |
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Reg. no. |
3201002016113 |
Present one |
Note: SC changed its Chinese name, while its English name remains the
same.
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 787104777
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jin Wenling 16.87
Chen Bo 16.79
Huang Zhaofu 14.34
Zhao Hongjun 8.96
Zhang Rongcheng 6.04
Flow International Corporation (U.S.A.) 4.60
Nanjing Hongtu Venture Capital Management Co., Ltd. 3.07
Gao Zhigang 2.80
Yang Zuhua 2.60
Sun Guohua 2.35
Other shareholders 21.58
Nanjing Hongtu Venture Capital Management Co., Ltd.
======================
Registration No.: 320100000148085
Incorporation Date:
Chairman: Tang Dajie
Registered Capital: CNY 300,000,000
Flow International Corporation (U.S.A.)
=============================
It is a listed company in NASDAQ with the code of FLOW.
Add.: 23500 64th Avenue South Kent, Washington 98032 USA
Tel: 253-850-3500
Fax: 253-813-9377
Web: www.flowwaterjet.com
E-mail: info@flowcorp.com
Legal Representative, Chairman and General Manager:
Mr. Chen Bo, born in 1955, ID#: 32010419550102****, with bachelor’s
degree, he is currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present
Working in SC as legal representative, chairman and general manager.
Vice
General managers:
Mr. Zhao Hongjun, born in 1962, with Master’s degree, senior manager;
Mr. Zhang Huixin, born in 1971, with Master’s degree;
Mr. Zhu Peigen, born in 1966, with Master’s degree’;
They are currently responsible for the daily management of SC.
Working
Experience(s):
At present Working
in SC as vice general managers.
Supervisor:
Zhang Zuping
Gao Zhigang
SC is mainly engaged in R&D, manufacturing, selling of ultra-high
pressure waterjet technology application products.
SC’s products mainly include: various kinds of ultra-high pressure numerical
control universal waterjet cutting machine, Robot Water Cutting Systems and
Five-axis Linkage CNC Ultra-High Pressure
SC sources its materials 10% from domestic market and 90% from overseas
market. SC sells 70% of its products in domestic market, and 30% 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.
Partners (According to SC’s website)
===========================
Flow UHP Waterjet Technology (Shanghai) Co., Ltd.
===============================
Registration No.: 310000400205312
Incorporation Date:
Chairman: Richard Anthony Leblanc
Registered Capital: USD 270,000
Add.: 1st Floor & Room 202, Building 6, No.168 Jixing Road, Minghang
District, Shanghai
Tel: +86-21-5438-2222 ·
Fax: +86-21-5438-5550
Flow Asia Corporation (Taiwan)
=======================
Add.:
Tel.: +886-3-577-2102
Fax: +886-3-577-3070
Web: www.flowasia.com
Flow Europe GmbH (Germany)
According to SC’s website, it has several Customer Service Centers in
Nanjing, Beijing, Shenyang, Chengdu, Foshan and Changchun
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.
SC declined to release its bank details.
Balance
Sheet
Unit: CNY’000
|
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as
of Dec. 31, 2011 |
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Cash & bank |
31,778 |
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Inventory |
66,759 |
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Note receivable |
6,025 |
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Accounts receivable |
32,054 |
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Advances to suppliers |
4,259 |
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Other receivables |
1,985 |
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Dividends receivable |
0 |
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Other current assets |
122 |
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Current assets |
142,982 |
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Fixed assets net value |
59,806 |
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Projects under construction |
12,672 |
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Long term investment |
0 |
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Deferred tax debit |
498 |
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Intangible assets |
15,702 |
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Other assets |
0 |
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Total assets |
231,660 |
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Short loans |
32,000 |
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Accounts payable |
34,370 |
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Other accounts payable |
406 |
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Notes payable |
0 |
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Taxes payable |
2,666 |
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Interest payable |
92 |
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Advances from clients |
8,577 |
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Accrued payroll |
1,473 |
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Other payable |
0 |
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Non-current liabilities due within one year |
5,000 |
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Other current liabilities |
63 |
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Current liabilities |
84,647 |
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Long term liabilities |
22,605 |
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Total liabilities |
107,252 |
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Equities |
124,408 |
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Total liabilities & equities |
231,660 |
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Income
Statement
Unit: CNY’000
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as
of Dec. 31, 2011 |
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Turnover |
188,012 |
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Cost of goods sold |
121,126 |
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Taxes and additional of main operation |
436 |
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Sales expense |
13,877 |
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Management expense |
18,056 |
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Finance expense |
3,515 |
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Asset impairment loss |
143 |
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Non-operating income |
3,115 |
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Non-operating expense |
262 |
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Profit before tax |
33,712 |
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Less: profit tax |
4,607 |
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Profits |
29,105 |
Note: SC’s management refused to release latest financial reports.
Important
Ratios
|
|
as
of Dec. 31, 2011 |
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*Current ratio |
1.69 |
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*Quick ratio |
0.90 |
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*Liabilities to assets |
0.46 |
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*Net profit margin (%) |
15.48 |
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*Return on total assets (%) |
12.56 |
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*Inventory /Turnover ×365 |
130 days |
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*Accounts receivable/Turnover ×365 |
63 days |
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*Turnover/Total assets |
0.81 |
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* Cost of goods sold/Turnover |
0.64 |
PROFITABILITY:
FAIRLY GOOD
·
The turnover of SC appears fairly good in its line
in 2011.
·
SC’s net profit margin is good in 2011.
·
SC’s return on total assets is good in 2011.
·
SC’s cost of goods sold is average in 2011,
comparing with its turnover.
LIQUIDITY: AVERAGE
·
The current ratio of SC is normal.
·
SC’s quick ratio is maintained in a normal level.
·
SC’s inventory is fairly large in 2011.
·
The accounts receivable of SC appears average in
2011.
·
SC’s short-term loan appears average in 2011.
·
SC’s turnover is fair in 2011, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
·
The debt ratio of SC is low.
·
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 8 years development
history.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.44 |
|
|
1 |
Rs.102.48 |
|
Euro |
1 |
Rs.85.28 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
|
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 |
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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.