MIRA
INFORM REPORT
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Report Date : |
02.04.2011 |
IDENTIFICATION DETAILS
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Name : |
XINJIANG |
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Registered Office : |
A34-F4, Hongshan New Century Plaza, No.108 Xinhua North Road, Urumqi, Xinjiang Province |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
10.05.2005 |
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Com. Reg. No.: |
650100050130039 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Wholesale of food |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
10,000 Chinese Yuan |
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Status : |
Moderate |
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Payment Behaviour : |
Regular |
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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 – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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|
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 |
Name and address
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Xinjiang |
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A34-F4, Hongshan New Century Plaza, No.108 Xinhua North Road, Urumqi,
Xinjiang Province |
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|
830001 |
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Tel : |
86 991 8888837 |
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Fax |
86 991 2854444 |
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Website |
www.sabahh.com |
Currency in this report is Chinese Yuan unless otherwise stated.
Exchange Rate: 1 USD=6.56 Chinese Yuan
"--"in this report indicates "unavailable" due to insufficient information or "no comments"
EXECUTIVE
SUMMARY
DATE OF
establishment : may 10th,
2005
Aic Registration
No. : 650100050130039
REGISTERED LEGAL
FORM : limited liability company
REGISTERED CAPITAL : 500,000.00
main BUSINESS : wholesale of
food
TURNOVER : 78,000.00 (As of 2009)
net profit :
-101,000.00 (As of Dec.31th, 2009)
total assets : 564,000.00 (As
of Dec.31th, 2009)
net worth :
146,000.00 (As of Dec.31th, 2009)
employees :
50
import and export permits
: yes
base CREDIT
limit :
10,000 Chinese Yuan
EXCHANGE RATE : 1 Usd=6.56 CNY
(Mar.30TH, 2011)
Registered Address:
A34-F4,
Hongshan New
Zip Code: 830001
Business Address: A34-F4,
Hongshan New Century Plaza, No.108 Xinhua North Road, Urumqi, Xinjiang Province
Zip Code: 830001
Telephone: 86 991 8888837
Fax: 86 991 2854444
SIC Code (
REGISTRATION
|
Date of Establishment |
may 10th,
2005 |
|
Registry |
Administration Bureau of
Industry and Commerce – |
|
Legal Representative |
Rou Zi Ai Sa |
|
AIC Registration Number |
650100050130039 |
|
Registered Legal Form |
limited liability company |
|
Registered Capital |
500,000.00 |
|
Operating Period |
From may 10th, 2005 to may 9th, 2029 |
|
Business Scope |
Sales of packed food, beverage and tea; Processing and sales of garments; transporting
agent, consulting, business information consulting; Sales of machinery, petrochemical products,
motor parts, electronic products, office supplies, computer consumables,
building material, textiles, plastic products etc. Import and export of cargos. |
|
Changes in Registration |
No |
Limited liabilities co.
This form of
business in PR China is defined as a legal person. Its registered capital is contributed
jointly by at least two shareholders and no more than fifty. 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 listed as follows:
-manufacturing co. :
RMB 500,000.00
-trading
&wholesaling co. : RMB 500,000.00
-retailing
co. : RMB 300,000.00
-consultancy &
service co. : RMB 100,000.00
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 50% of the registered capital
while contribution by intangible assets must not exceed 20% 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.
REGISTRATION INFO:
AVAILABLE
FINANCIAL REPORTS:
AVAILABLE
FIELD
INVESTIGATION
Subject’s income comes
mainly from sales of beverage, tea (60%), milk, sugar (30%), and garments
(10%). Its sales are developed directly to the end users. The industry of food sales
is an industry with fierce competition. Subject is facing a lot of similar
competitors in the local place. Subject still needs to improve its scale and
popularity. Generally speaking, the competitiveness of subject is average in
the local place.
SHAREHOLDERS
AND SHARES
As indicated in the following table:
|
Shareholder |
Capital Subscribed |
Percentage |
|
Mai Mai Ti Ai Li, Ai Sha |
50,000 |
5% |
|
Rou Zi Ai Sa |
450,000 |
95% |
|
Total |
500,000 |
100% |
|
Shareholder |
Way of
investment |
Paid-up Percentage |
|
Mai Mai Ti Ai Li, Ai Sha |
Capital |
100% |
|
Rou Zi Ai Sa |
Capital |
100% |
AFFILIATE(S)
After checking with the industry
and commerce channels by Gladtrust, no affiliates of SC is found.
MANAGEMENT
|
Name |
Rou Zi Ai Sa |
|
Title |
Legal representative |
NUMBER OF EMPLOYEES
Employees: 50
Recent Recruitment：No
BANKERS INFORMATION
|
Bank Name |
Bank of |
|
Account No. for Chinese Yuan |
-- |
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Title of the person investigated |
Reception staff |
|
Telephone |
0086 991
2372532/2372524 |
|
Comment |
The investigated person confirmed that subject
opened an account in the above bank, but refused to reveal any further
information in the reason of keeping secret for the clients. |
OFFICE FACILITIES
Geographic
Location: SC
is located in A34-F4,
Property
Ownership: rented
TRADEMARKS
|
No trademark record was found after check with
the National Trademark Management Bureau. |
PATENTS
|
After checking with the |
MAIN
PRODUCTS & SERVICES
|
Main business |
Wholesale and retail of food products |
|
Products and services |
Subject is the agent of “” brand tea and
coffee, MEYSU Brand fruit juice, ACE brand carbonated beverage. Subject is
the general agent of the above said brands in |
SALES
INFORMATION
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Percentage of domestic sales |
80% |
|
Regions |
|
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Major domestic clients |
Distributor, retailer etc. |
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Sales Terms: |
Prompt payment; on credit |
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Percentage of overseas sales |
20% |
|
Regions |
Southeast Asia, Mid-east and |
|
Sales Terms: |
L/C, T/T |
|
The products subject agents are mainly sold
within |
|
|
The above information was confirmed by SC’s
employee. |
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PURCHASE
INFORMATION
|
Main Commodities Purchased |
Tea, coffee, juice, carbonated beverage etc. |
|
Number of Major Suppliers |
More than 5 |
|
Major Suppliers |
ALTUNKAYA (UAE), UGL SAN GIDA ( |
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Main Terms of Payment |
Domestic: Prompt payment; on credit Import: L/C, T/T |
|
The products subject agents are mainly foreign
brands. It purchases raw material from domestic suppliers using in its own
production. It maintains stable cooperation with its suppliers. |
|
|
The above information was confirmed by SC’s
employee. |
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CREDIT
|
Subject’s suppliers are mostly foreign
suppliers; therefore, no comments from the suppliers can be obtained in this
report. |
LITIGATION RECORDS
After
checking with
FINANCE
Balance
Sheet (Unit: 1,000 Chinese Yuan):
|
|
Dec. 31st, 2008 |
Dec.
31st, 2009 |
|
Current assets |
|
|
|
Money capital |
318 |
7 |
|
Notes receivable |
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Net ball of account receivable |
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Payment in advance |
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Account receivable |
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Other account receivable |
110 |
381 |
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Inventory |
226 |
167 |
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Expenses to be deferred |
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Total current Assets |
654 |
555 |
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Long term
investment |
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Long term investment |
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Fix assets |
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Original value of fixed assets |
9 |
9 |
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Accumulated depreciation |
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Net value of Fixed Assets |
9 |
9 |
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Project being constructed |
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Total fixed assets |
9 |
9 |
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Intangible
assets |
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Intangible assets |
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Deferred assets |
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Total intangible assets and deferred assets |
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Total assets |
663 |
564 |
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Current liabilities |
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Short term loans |
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Notes payable |
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Account payable |
343 |
343 |
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Deposit received |
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Other account payable |
58 |
58 |
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Wages payable |
|
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Welfare payable |
19 |
19 |
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Tax unpaid |
-1 |
-2 |
|
Accrued expenses |
|
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Other current liabilities |
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Total current liabilities |
419 |
418 |
|
L/T liabilities |
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|
L/T loan |
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L/T account payable |
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Total L/T liabilities |
0 |
0 |
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Total liabilities |
419 |
418 |
|
Owner’s interest |
|
|
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Paid-up capital |
500 |
500 |
|
Contributed surplus |
|
|
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Surplus reserves |
|
|
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Undistributed profits |
-256 |
-354 |
|
Total owner’s interest |
244 |
146 |
|
Liabilities and owner’s interest |
663 |
564 |
Income Statement (Unit:
1,000):
|
|
Dec. 31st, 2008 |
Dec. 31st, 2009 |
|
Main business income |
112 |
78 |
|
Main business cost |
89 |
58 |
|
Tax and associate charge |
1 |
0 |
|
Main business profit |
22 |
20 |
|
Other business profit |
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Asset depreciation |
|
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Operation expenses |
10 |
4 |
|
- management expenses |
132 |
116 |
|
Financial expenses |
-2 |
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Operation profit |
-118 |
-100 |
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Investment profit |
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Non business income |
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|
-Non business expenses |
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Total profit |
-118 |
-100 |
|
-Income tax |
0 |
1 |
|
Net profit |
-118 |
-100 |
Important Ratios:
|
|
2008 |
2009 |
|
Return on net assets (%) |
-48.36 |
-69.18 |
|
Return on total assets (%) |
-17.80 |
-17.91 |
|
Net profit margin (%) |
-105.36 |
-129.49 |
|
Turnover of total assets |
0.17 |
0.14 |
|
Turnover of current assets |
0.17 |
0.14 |
|
Turnover of account receivable |
-- |
-- |
|
Inventory turnover |
0.39 |
0.35 |
|
Asset liability ratio (%) |
63.20 |
74.11 |
|
Current ratio |
1.56 |
1.33 |
|
Quick ratio |
1.02 |
0.93 |
Major Financial Information
|
|
2008 |
2009 |
|
Main business income |
112 |
78 |
|
Total profit |
-118 |
-100 |
|
Net profit |
-118 |
-100 |
|
Total assets |
663 |
564 |
|
Total liabilities |
419 |
418 |
|
Total owner’s interest |
244 |
146 |
|
Source from |
government |
government |
|
Whether audited or not |
Yes |
Yes |
ANALYSIS
Subject’s profitability indices of 2009 are
negative, which indicates its profitability is poor. With the low turnover of
asset and current asset, its capital operation capacity is poor. With the asset
liability ratio as high as 80%, subject's long-term solvency is weak. In
addition, subject's short-term solvency is also weak judging from the current
and quick ratio.
INDUSTRY
PROFILE
Industry
SIC Code (
Description: wholesale, import and export of beverage and tea
Status Quo & Trend
In 2009, food and beverage industry recovered to the level before the
crisis, both the output and sales volume increased fast through the year. The
y/y growth rate of alcohol, beer, wine and milk products was respectively 24%,
7%, 28% and 13%. The price increasing of alcohol accelerated the growth of this
industry.
Since March 2009, along with the market saving policies by governments
of many countries, world economy began to recover. Foreign clients started
restocking from destocking; hence the export volume of agricultural products
was improved because of the order increasing of enterprises. From Jan. to Mar.
2010, the export volume of tea reached 68,100 tons (USD 164 million) in
As the demand recovers, income and profit of food and beverage industry
will both meet increase in 2010. However, the growth rate would be eased (lower
than 10%) as the fading of base effect.
GENERAL
COMMENTS
Subject was registered in 2005 with the registration capital of 500,000
Chinese Yuan. Its main business is wholesale and retail of food products. With
long history but small scale, its popularity still needs to be improved.
Subject's main business income in 2009 decreased from 2008, indicating
its business was not well developed. Its profitability is poor in recent years.
High inventory increases subject’s capital turnover pressure and can lower its
capital operation capacity. Subject has high other account receivable,
indicating it keeps intimate cooperation with its related companies. The high
account payable shows subject uses long term credit in transactions with its
suppliers. This also means it keeps good relationship with the suppliers.
The long-term and short-term solvency of subject are both weak.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.65 |
|
|
1 |
Rs.71.93 |
|
Euro |
1 |
Rs.63.24 |
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.