MIRA INFORM REPORT
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Report Date : |
01.06.2011 |
IDENTIFICATION DETAILS
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Name : |
FOSHAN GAOMING FENGDA TRADE CO., LTD. |
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Registered Office : |
4/f, no. 56, Cangjiang Road, Hecheng Street, Gaoming
District, Foshan, Guangdong Province, 528500 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
28.06.2004 |
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Com. Reg. No.: |
440684000025320 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
exporting cotton, sugar and light industrial products |
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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Maximum Credit Limit : |
USD 10,000 |
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Status : |
Small Company |
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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 – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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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 |
Company name & address
FOSHAN GAOMING FENGDA TRADE Co., Ltd.
4/f, no. 56,
cangjiang road, hecheng street, gaoming district,
foshan, GUANGDONG
PROVINCE, 528500 PR CHINA
TEL: 86 (0)
757-88687112 FAX: 86 (0)
757-88687055
EXECUTIVE SUMMARY
INCORPORATION DATE : june 28, 2004
REGISTRATION NO. : 440684000025320
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
20
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 255,680,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 1,600,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 10,000
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.48 = 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: SC’s correct tel. no. and fax no. should be the
heading ones.
SC was registered as a Limited Liabilities Company at local
Administration for industry & commerce (AIC - the official body of issuing
and renewing business license) on June 28, 2004.
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 wholesaling and retailing native products, light
industrial products, textiles, hardware mechanical products, building materials,
steel materials and plastics; import and export of various goods and
technologies, but excluding the goods forbidden by the government.
SC is mainly
engaged in exporting cotton, sugar and light industrial products.
Mr. Qiu Weijing is
chairman of SC at present.
SC is known to have approx. 20 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Foshan. Our checks reveal that SC
rents the total premise about 420 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with the local
Administration for Industry and Commerce.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Qiu Weijing 20
Chen Mingzhao 20
Liang Mingxiong 20
Wang Hanbin 20
Li Qingquan 20
l
Chairman:
Mr. Qiu Weijing, born in 1965, with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as chairman.
l
General Manager:
Mr. Li Qingquan , born in 1964, with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager.
SC is mainly engaged
in exporting cotton, sugar and light industrial products.
SC’s products
mainly include cotton, sugar, light box cloth, etc.
SC sources its materials 90% from domestic
market, and 10% from overseas market. SC sells 20% of its products in domestic
market, and 80% to overseas market, mainly U.S.A. and Vietnam.
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.
Note: SC’s
management declined to release its customer and supplier details.
SC is
not known to have any subsidiary at present.
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.
China Guangfa Bank Foshan Gaoming Sub-branch
AC#
104201514010000241
Relationship:
Normal
Balance Sheet (as of Dec. 31, 2010)
Unit: CNY’000
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Cash & bank |
3,570 |
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Inventory |
9,510 |
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Accounts
receivable |
4,730 |
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Advances to
suppliers |
44,360 |
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Other
receivables |
2,930 |
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Receivable
drawback for export |
9,300 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
74,400 |
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Fixed assets net
value |
290 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
74,690 |
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============= |
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Short loans |
1,650 |
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Accounts payable |
14,060 |
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Other payable |
4,310 |
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Taxes unpaid |
60 |
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Advances from
clients |
52,990 |
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Other current
liabilities |
20 |
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Current
liabilities |
73,090 |
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Long term liabilities |
0 |
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Total
liabilities |
73,090 |
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Equities |
1,600 |
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Total
liabilities & equities |
74,690 |
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Income Statement (as of Dec. 31, 2010)
Unit: CNY’000
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Turnover |
255,680 |
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Cost of goods
sold |
250,890 |
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Sales expense |
3,480 |
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Management expense |
1,060 |
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Finance expense |
200 |
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Non-operating
income |
310 |
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Profit before
tax |
340 |
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Less: profit tax |
80 |
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Profits |
260 |
Important Ratios
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as
of Dec. 31, 2010 |
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*Current ratio |
1.02 |
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*Quick ratio |
0.89 |
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*Liabilities
to assets |
0.98 |
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*Net profit
margin (%) |
0.10 |
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*Return on
total assets (%) |
0.35 |
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*Inventory
/Turnover ×365 |
14 days |
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*Accounts
receivable/Turnover ×365 |
7 days |
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*Turnover/Total
assets |
3.42 |
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* Cost of
goods sold/Turnover |
0.98 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average in 2010.
l
The accounts receivable of SC appears average in
2010.
l
SC’s short-term loan appears average in 2010.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. A credit line up to USD 10,000 appears to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.03 |
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UK Pound |
1 |
Rs.74.43 |
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Euro |
1 |
Rs.64.75 |
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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.