MIRA
INFORM REPORT
|
Report Date : |
02.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
anhui province
cotton & jute co., ltd. |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
April 28, 1990 |
|
|
|
|
Com. Reg. No.: |
3400001000965 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Engaged in selling
cotton, cotton linter, padded cotton, jute, jute seed, hemp, and cotton
ginning machinery parts. |
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 |
|
Maximum Credit Limit : |
Up To usd 70,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
name & address
anhui province
cotton & jute co., ltd.
no.99
TEL :
86 (0) 551-3443210
FAX :
86 (0) 551-3431122
EXECUTIVE SUMMARY
INCORPORATION DATE : april 28, 1990
REGISTRATION NO. : 3400001000965
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
40
REGISTERED CAPITAL : CNY 18,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 120,750,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 18,550,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.56 = US$1 AS OF
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a limited liabilities company at
Company Status: Limited liabilities co. This
form of business in PR China is defined as a legal person. No more than
fifty shareholders contribute its
registered capital jointly. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to extent
of its total assets. The characteristics of this form of co. are as
follows: Upon the
establishment of the co., an investment certificate is issued to the each
of shareholders. The board of
directors is comprised of three to thirteen members. The minimum
registered capital for a co. is CNY 30,000. Shareholders
may take their capital contributions in cash or by means of tangible assets
or intangible assets such as industrial property and non-patented
technology. Cash
contributed by all shareholders must account for at least 30% of the
registered capital. Existing
shareholders have pre-exemption right to purchase shares of the co. offered
for sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
SC’s registered
business scope includes wholesale cotton, cotton linter, padded cotton, jute,
jute seed, hemp, and cotton ginning machinery parts.
SC is mainly
engaged in selling cotton, cotton linter, padded cotton, jute, jute seed, hemp,
and cotton ginning machinery parts.
Mr. Wang Xuanzhong
has been chairman of SC since 1990. SC owns about 40 staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Hefei. Our checks reveal that SC
owns the total premise about 1,000 square meters.
http://ah.cncotton.com.cn The
design is professional and the content is well organized. At present the web site
is only in Chinese version.
E-mail: service@oemtimes.com
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2004-12 |
Registered legal
form |
State-owned
enterprise |
Limited
liabilities company |
|
2004-12 |
Company name |
Anhui
Provincical Cotton & Hemp Company |
Anhui Province Cotton & Jute Co., Ltd. |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shareholders'
l
Chairman and
General Manager:
Mr. Wang Xuanzhong, 47 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1990 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in selling cotton, cotton linter, padded cotton, jute, jute seed, hemp,
and cotton ginning machinery parts.
SC’s products
mainly include: cotton, cotton linter, padded cotton, jute, jute seed, hemp,
and cotton ginning machinery parts.
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include Check, T/T and Credit of 15-30 days. The
payment terms of SC include Check, T/T and Credit of 15-30 days.
*Major Customers:
==============
China National Cotton Exchange Market Co., Ltd.
*Major Suppliers:
==============
Nantong Cotton Machinery Co., Ltd.
Anhui
Province Cotton & Jute Co., Ltd. Anqing Operating Station
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.
Agricultural Bank of
AC#：4610405006
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
|
Cash & bank |
19,670 |
|
Inventory |
6,830 |
|
Accounts
receivable |
18,050 |
|
Other Accounts
receivable |
14,940 |
|
To be
apportioned expense |
0 |
|
Other current
assets |
16,310 |
|
|
------------------ |
|
Current assets |
75,800 |
|
Fixed assets net
value |
24,430 |
|
Projects under
construction |
0 |
|
Long term
investment |
9,570 |
|
Other assets |
32,800 |
|
|
------------------ |
|
Total assets |
142,600 |
|
|
============= |
|
Short loans |
25,000 |
|
Accounts payable |
18,520 |
|
Other Accounts
payable |
58,890 |
|
Notes payable |
16,600 |
|
Advances from
customers |
4,850 |
|
Withdraw the
expenses in advance |
0 |
|
Other current
liabilities |
190 |
|
|
------------------ |
|
Current
liabilities |
124,050 |
|
Long term
liabilities |
0 |
|
Other
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
124,050 |
|
Equities |
18,550 |
|
|
------------------ |
|
Total
liabilities & equities |
142,600 |
|
|
============= |
Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
|
Turnover |
120,750 |
|
Cost of goods
sold |
113,460 |
|
Sales expense |
2,010 |
|
Management expense |
3,440 |
|
Finance expense |
3,230 |
|
Profit before
tax |
-530 |
|
Less: profit tax |
0 |
|
Profits |
-530 |
Important Ratios (as of Dec. 31, 2006)
=============================
*Current ratio 0.61
*Quick ratio 0.56
*Liabilities to
assets 0.87
*Net profit
margin (%) -0.44
*Return on total
assets (%) -0.37
*Inventory
/Turnover ×365 21 days
*Accounts
receivable/Turnover ×365 55 days
*Turnover/Total
assets 0.85
* Cost of goods
sold/Turnover 0.94
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
acceptable level.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered an old-established business with fair financial
conditions. A credit line up to USD 70,000
would appear to be within SC’s capacities.
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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)