MIRA INFORM REPORT
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Report Date : |
07.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
GUANGDONG FORTUNE GRAIN COMPANY LIMITED |
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Registered Office : |
Room 404, NO. |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
11.06.2011 |
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Com. Reg. No.: |
440000000017183 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Sales of grains, feedstuff, additives |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
2,000,000 Chinese Yuan |
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Status : |
Satisfactory |
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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 |
Company name & address
GUANGDONG FORTUNE
GRAIN COMPANY LIMITED
Room 2603, Southern tower,
510500
Tel : 86 20 87648890
Fax 86 20 87646126
Website
Currency in this report is Chinese Yuan unless otherwise
stated.
Exchange Rate: 1 USD=6.54 Chinese Yuan
"--"in this report indicates
"unavailable" due to insufficient information or "no
comments"
Note: The credit limit provided in the order
is reasonable.
EXECUTIVE
SUMMARY
DATE OF establishment : June 11th, 2001
Aic Registration No. : 440000000017183
REGISTERED LEGAL FORM : limited liability company
REGISTERED CAPITAL : 23080,000.00
main BUSINESS : Sales of grains,
feedstuff, additives.
TURNOVER : 653931000.00 (As of
2009)
net profit : 6053000.00 (As of Dec.31th, 2009)
total assets : 62381000.00 (As of Dec.31th, 2009)
net worth : 26076000.00 (As of Dec.31th, 2009)
employees
: 20
import and export
permits : yes
base CREDIT limit :
2,000,000 Chinese Yuan
EXCHANGE RATE : 1 Usd=6.54 CNY (Apr.1st, 2011)
Registered
Address: Room 404, NO.
City Zip Code: 510045
Telephone: 86 20 87648890
Business Address:
Room
2603, Southern tower,
Telephone: 86 20 87648890
Fax: 86 20 87646126
SIC Code (
REGISTRATION
|
Date of Establishment |
June 11th, 2001 |
|
Registry |
Administration Bureau of Industry and
Commerce-Guangdong |
|
Legal Representative |
Ruan Xingzhao |
|
AIC Registration Number |
440000000017183 |
|
Registered Legal Form |
limited liability company |
|
Registered Capital |
23080,000.00 |
|
Operating Period |
From jun 11th,
2001 to -- |
|
Business Scope |
Import and export of goods and technologies (excluding
those forbidden by the government). Sales, agent sales, agent purchases of
grains, feedstuff and additives. |
|
Changes in Registration |
1.
Sep 26th, 2002 Subject’s legal representative was changed from Liang
Weixiang to Ruan Xingzhao. 2.
Sep 26th, 2002 Subject’s shareholders were changed from Ruan
Xingzhao, Chen Xiuzhong, Guzhong and Liang Weixiang To Jiang Dianshuang, Ruan Xingzhao and Yin Ping’an. 3.
Nov 19th, 2002 Subject’s registered capital was changed from
10,000,000 yuan to 5,000,000 yuan. 4.
Sep 2nd, 2004 Subject’s registered address was changed from Room
1505, Floor 15, 5.
Oct 23rd, 2007 Subject’s registration NO. was changed from 4400002006429 to 440000000017183. 6. Oct 23rd, 2007 Subject’s shareholders were changed from Jiang
Dianshuang, Ruan Xingzhao and Yin Ping’an to Ruan Xingzhao and Zhang Pengfei. 7. Aug 25th, 2008 Subject’s registered capital was changed from 5,000,000
yuan to 10,080,000 yuan. 8. Aug 25th, 2008 Subject’s shareholders were changed to Ruan Xingzhao and
Wu Peng. 9.Apr 12th, 2010 Subject’s registered capital was changed to the present
registered capital. 10.Apr 12th, 2010 Subject’s shareholders were changed to the present
shareholders. |
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
1. SC’s main business turnover is from corns,
bean meal, vegetable meal, cotton meal, peanut meal which take up about
90%. Some diaminocaproic acids take up
about 10%. SC’s marketing business is developed directly to its end users. The
industry SC deals with is a fiercely competitive industry. Subject has a large
number of competitors who also deal with the marketing business of bearings.
But due to its long history and large scale, SC has formed its reputation and a
certain amount of clients in the local place. So generally speaking, SC’s
competitiveness in the local industry above average .
2.
SHAREHOLDERS
AND SHARES
As indicated in the following table:
|
Shareholder |
Capital
Subscribed |
Percentage |
|
Ruan Xingzhao |
8780,000.00 |
38.04% |
|
Wu Peng |
7980,000.00 |
34.58% |
|
Li Shaofen |
6320,000.00 |
27.38% |
|
Total |
23080,000.00 |
100% |
|
Shareholder |
Investment Way |
Paid-up
Percentage |
|
Ruan Xingzhao |
Capital |
100% |
|
Wu Peng |
Capital |
100% |
|
Li Shaofen |
Capital |
100% |
Background of major shareholder
|
Name |
Ruan Xingzhao |
|
Gender |
Male |
|
Date of Birth |
Aug 2nd, 1964 |
|
ID NO. |
440104196408020014 |
|
|
|
|
Name |
Wu Peng |
|
Gender |
Male |
|
Date of Birth |
Dec 23rd, 1971 |
|
ID NO. |
210725197112230617 |
|
|
|
|
Name |
Li Shaofen |
|
Gender |
Female |
|
Date of Birth |
Oct 18th, 1981 |
|
ID NO. |
441228198110180329 |
AFFILIATE(S)
|
Name |
GUANGDONG FORTUNE GRAIN COMPANY LIMITED – TIANHE
BRANCH |
|
Address |
Room 2603, Southern Tower, |
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Telephone |
86 20 87648890 |
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Fax |
86 20 87646126 |
|
Main Business |
Sales of grains, feedstuff and additives |
|
SC’s Share Percentage |
100% |
MANAGEMENT
|
Name |
Ruan Xingzhao |
|
Title |
Executive Director and Manager |
|
Gender |
Male |
|
ID No. |
440104196408020014 |
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Nationality |
|
|
Date of birth |
Aug 2nd, 1964 |
NUMBER OF EMPLOYEES
Employees: 20
Recent Recruitment： Yes
Recruitment Post: International Trade Assistant
BANKERS INFORMATION
|
Bank Name |
Shenzhen Development Bank – |
|
Account No. for Chinese Yuan |
11000869042917 |
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Telephone of the person investigated |
0086 20 38861632 |
|
Comment |
The interviewees refused to disclose related
information for the reason of keeping secret for the depositor. |
OFFICE FACILITIES
Geographic
Location: SC is located in Room 2603,
Southern tower,
Property Ownership: rented
TRADEMARKS
AND PATENTS
After checking
with the Trademark Office of Chinese Administration Bureau of Industry and
MAIN
PRODUCTS & SERVICES
|
Main business |
Sales of grains, feedstuff and additives |
|
Products and services |
SC mainly deals with the sales business of grains,
feedstuff and additives. SC’s annual sales are more than |
SALES
INFORMATION
|
Percentage of domestic sales |
100% |
|
Regions |
All over |
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Major domestic clients |
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Sales Terms: |
Prompt payment; on credit |
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Subject’s products are mostly sold in |
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The above information was confirmed by SC’s employee |
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PURCHASE
INFORMATION
|
Main Commodities Purchased |
Corns, bean meal, vegetable meal, cotton meal, peanut meal,
etc |
|
Number of Major Suppliers |
About 10 |
|
Major Suppliers |
CHINATEX CORPORATION, JIUSAN OILS AND GRAINS INDUSTRIES
GROUP CO., LTD. etc. |
|
Main Terms of Payment |
Prompt payment, on credit L/C, T/T |
|
SC mainly purchases its commodities from domestic
suppliers. SC has established steady cooperation relationship with its
suppliers and it has enough sources of goods. |
|
|
The above information was confirmed by SC’s employee |
|
CREDIT
|
Name of supplier |
JIUSAN OILS AND GRAINS INDUSTRIES GROUP CO., LTD. |
|
Main commodities supplied |
Bean meal |
|
Post of interviewee |
Salesman |
|
Tel |
86 451 55559399 |
|
Remarks of interviewee |
Subject is said to be one of this company’s clients.
Subject’s credit condition is normal and they cooperate well. |
LITIGATION
RECORDS
After checking with
FINANCE
Balance Sheet (Unit: 1,000
Chinese Yuan):
|
|
|
|
|
|
Current
assets |
|
|
|
|
Money
capital |
2,840 |
1,320 |
378 |
|
Short-term
investment |
|
|
|
|
Notes
receivable |
|
|
|
|
Net
ball of Account Receivable |
4,837 |
5,103 |
8,674 |
|
Payment
in advance |
12,065 |
11,624 |
44,846 |
|
Subsidy
Receivable |
|
|
|
|
Other
Account Receivable |
198 |
2,173 |
598 |
|
Inventory |
11,079 |
13,406 |
6,951 |
|
Expenses
to be deferred |
-9 |
21 |
73 |
|
Other
current assets |
|
|
|
|
Export
rebates receivable |
|
|
|
|
Total
current Assets |
31,010 |
33,647 |
61,520 |
|
Long-term
investment |
|
|
|
|
Long-term
investment |
|
|
|
|
Original
value of fixed assets |
1,964 |
1,990 |
2,012 |
|
Accumulated
depreciation |
565 |
859 |
1,159 |
|
Net
fixed assets |
1,399 |
1,131 |
853 |
|
Fixed
assets depreciation reserve |
|
|
|
|
Net
Value of Fixed Assets |
1,399 |
1,131 |
853 |
|
Fixed
assets in liquidation |
|
|
|
|
Projects
being constructed |
|
|
|
|
Fixed
assets losses in suspense |
|
|
|
|
Total
fixed assets |
1,399 |
1,131 |
853 |
|
Intangible
assets and deferred assets |
|
|
|
|
Intangible
assets |
4 |
10 |
8 |
|
Deferred
assets |
|
|
|
|
Total
intangible and deferred assets |
4 |
10 |
8 |
|
Other
long-term assets |
|
|
|
|
Other
long-term assets |
|
|
|
|
Total
assets |
32,413 |
34,788 |
62,381 |
|
Current
liabilities |
|
|
|
|
Short-term
loans |
|
|
|
|
Notes
payable |
|
|
|
|
Account
payable |
2,894 |
4,046 |
5,649 |
|
Deposit
received |
9,268 |
1,792 |
12,012 |
|
Other
accounts payable |
12,482 |
14,107 |
17,082 |
|
Wages
payable |
|
|
|
|
Welfare
payable |
147 |
107 |
69 |
|
Other
accounts unpaid |
99 |
103 |
183 |
|
Tax
unpaid |
454 |
-390 |
1,310 |
|
Unpaid
profit |
|
|
|
|
Accrued
expenses |
|
|
|
|
L/T debt
due in 1 year |
|
|
|
|
Other
current liabilities |
|
|
|
|
Total
current liabilities |
25,344 |
19,765 |
36,305 |
|
L/T
liabilities |
|
|
|
|
L/T
loans |
|
|
|
|
Bonds
payable |
|
|
|
|
L/T
account payable |
|
|
|
|
Total
L/T liabilities |
0 |
0 |
0 |
|
Deferred
tax |
|
|
|
|
Deferred
tax |
|
|
|
|
Total
liabilities |
25,344 |
19,765 |
36,305 |
|
Owner’s
interest |
|
|
|
|
Paid-up
capital |
5,000 |
10,080 |
15,080 |
|
Contributed
surplus |
|
200 |
200 |
|
Surplus
reserves |
|
|
|
|
Unconfirmed
investment loss |
|
|
|
|
Undistributed
profits |
2,069 |
4,743 |
10,796 |
|
Minority
interest |
|
|
|
|
Total
owner’s interest |
7,069 |
15,023 |
26,076 |
|
Liabilities
and owner’s interest |
32,413 |
34,788 |
62,381 |
|
Income Statement (Unit: 1,000 Chinese Yuan) |
|||
|
|
2007 |
2008 |
2009 |
|
356,113 |
439,457 |
653,931 |
|
|
Main
business cost |
340,829 |
436,091 |
645,853 |
|
Tax
and associate charge |
71 |
85 |
126 |
|
Main
business profit |
15,213 |
3,281 |
7,952 |
|
Other
business profit |
271 |
115 |
|
|
Operation
expenses |
24,796 |
16,926 |
22,414 |
|
-
management expenses |
6,052 |
2,938 |
2,851 |
|
Financial
expenses |
1,486 |
60 |
84 |
|
Operation
profit |
-16,850 |
-16,528 |
-17,397 |
|
Investment
profit |
|
1,699 |
2,917 |
|
Subsidy
income |
|
|
22,629 |
|
Non
business income |
17,785 |
18,598 |
|
|
- non
business expenses |
232 |
67 |
|
|
Prior
year income adjustment |
|
|
|
|
Total
profit |
703 |
3,702 |
8,149 |
|
-
income tax |
232 |
983 |
2,096 |
|
Minority
stock holder’s interest |
|
|
|
|
Net
profit |
471 |
2,719 |
6,053 |
Important
ratios:
|
|
2007 |
2008 |
2009 |
|
Return
on net assets (%) |
6.66 |
18.10 |
23.21 |
|
Return
on total assets (%) |
1.45 |
7.82 |
9.70 |
|
Net
profit margin (%) |
0.13 |
0.62 |
0.93 |
|
Turnover
of total assets |
10.99 |
12.63 |
10.48 |
|
Turnover
of current assets |
11.48 |
13.06 |
10.63 |
|
Turnover
of accounts receivable |
73.62 |
86.12 |
75.39 |
|
Inventory
turnover |
30.76 |
32.53 |
92.92 |
|
Asset
liability ratio (%) |
78.19 |
56.82 |
58.20 |
|
Current
ratio |
1.22 |
1.70 |
1.69 |
|
Quick
ratio |
0.79 |
1.02 |
1.50 |
Major Financial
Information (Unit: 1,000)
|
|
2007 |
2008 |
2009 |
|
Main business income |
356,113 |
439,457 |
653,931 |
|
Total profit |
703 |
3,702 |
8,149 |
|
Net profit |
471 |
2,719 |
6,053 |
|
Total assets |
32,413 |
34,788 |
62,381 |
|
Total liabilities |
25,344 |
19,765 |
36,305 |
|
Total owner’s interest |
7,069 |
15,023 |
26,076 |
|
Source from |
government |
government |
government |
|
Whether audited or not |
Yes |
Yes |
Yes |
Analysis of Industry Indicators
We mainly analyze Subject’s
financial indicators in 2009. All of subject’s profitability indicators in 2009
indicate that Subject’s profitability is OK. SC’s turnover of total assets and
turnover of current assets show that its asset operation ability is poor.
Subject’s turnover of account receivable is high which reflects that its debt
recovery speed is fast. Also, subject’s asset liability ratio is reasonable
which indicates that its long-term solvency is average. Subject’s current ratio
and quick ratio show that its short-term solvency is strong.
INDUSTRY
PROFILE
Industry
SIC Code (
Description: wholesale, import and export of non- processed crops.
Status Quo
& Trend
This industry belongs to wholesale of farming
and animal products and it plays an important role in the agricultural system.
As the demand for bio-fuels and industrial-used grains is increasing, the
global grains, the problem of global grains availability is becoming more and
more serious. According to the forecast in the report released by United Nations
Food and Agriculture Organization in February, 2008, the world grain reserves
will decrease to the lowest level in 20 years. These factors will directly will
drive the grains’ price in global market. According to statistics, from January
to December in 2009, our country imported
This industry has been developing rapidly during recent
years. Considering the government’s supporting policies, the draughty
environment and the increasing commodity prices, the prices of grains, beans
and potatoes are predicted to increase within the scale which our country can
control.
GENERAL
COMMENTS
Subject company which was established
in June, 2001 was a limited liability company. SC mainly deals with sales of
grains, feedstuff and additives. With a long history and a large business
scale, it enjoys big reputation in its industry.
SC’s existing financial data show
that its main business income in 2009 increased a lot compared with that of
2008. That indicates that SC’s business development status is good. However, SC’s
net profit ratio is low, indicating that its profitability needs to be
promoted. SC has many account payables in recent years which indicates that it
its suppliers use strict payment methods to him which is not favorable to its
capital turnover. SC’s inventories and account receivables are all in
reasonable scale which is favorable to its capital turnover. Also, SC has many
other accounts payable in 2009 which indicates that it has many business
activities with its related company. In addition, SC’s long-term solvency is
average and short-term solvency is strong.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.22 |
|
|
1 |
Rs.72.25 |
|
Euro |
1 |
Rs.63.09 |
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 |
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.