MIRA
INFORM REPORT
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Report Date : |
24.10.2011 |
IDENTIFICATION DETAILS
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Name : |
beijing china cotton trading Ltd. |
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Registered Office : |
Room 1117 Block B, Global Finance News Center, No. 1 Xuanwumenwai
Street, West District, Beijing, 100140 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
14.07.2003 |
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Com. Reg. No.: |
110102005828978 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Cotton |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 400,000 |
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Status : |
Satisfactory |
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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, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 and address
beijing china cotton trading Ltd.
ROOM 1117 BLOCK B,
GLOBAL FINANCE NEWS CENTER, NO. 1 XUANWUMENWAI STREET, WEST DISTRICT, BEIJING,
100140 PR CHINA
TEL: 86 (0)
10-59338139 FAX: 86 (0) 10-59338140
EXECUTIVE SUMMARY
INCORPORATION DATE : july
14, 2003
REGISTRATION NO. : 110102005828978
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
12
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 908,500,000 (UNAUDITED, AS
OF DEC. 31, 2010)
EQUITIES :
CNY 45,030,000 (UNAUDITED, AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 400,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.37 = 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
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 July 14, 2003.
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 selling cotton and linen, steel materials, copper,
aluminum, zinc, plastics and rubber products; information consultation;
technology development, transfer, training and serving; affecting exhibition
show; selling general merchandise, knitting textiles, building materials,
vehicle parts and chemicals (excluding the precursor chemicals and dangerous
chemicals with Class I); import and export of various goods and technologies,
excluding the goods forbidden by the government.
SC is mainly
engaged in selling cotton.
Mr. Shi
Jinkai is legal representative and
chairman of SC at present.
SC is known
to have approx. 12 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Beijing. Our checks reveal that SC
rents the total premise about 200 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
China National Cotton Group Corporation 70
China National Cotton Group Corporation
Langfang Storage & Transportation Co., Ltd. 30
China National Cotton Group Corporation
===============================
China National Cotton Group Corporation
(CNCGC) is a large circulation enterprise administered by All China Federation
of Supply and Marketing Cooperatives. Established in 1993 with the approval of
the former State Economic and Trade Commission, CNCGC is awarded as the first
agricultural industrialization, national leading enterprise in cotton industry
by nine ministries such as National Development and Reform Committee, Ministry
of Commerce, Ministry of Agriculture, etc.
Legal representative: Shi Jinkai
Registration no.: 100000000015193
China National Cotton Group Corporation
Langfang Storage & Transportation Co., Ltd.
================================================================
Registration no.: 131001000004890
Legal representative: Shi Jinkai
Tel: 0316-6077166
Fax: 0316-6077169
l
Legal Representative and Chairman:
Mr. Shi Jinkai , ID # 110108196311105416, born in 1963, with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman
Also working in
China National Cotton Group Corporation, Beijing China-Cotton International
Ltd. and China National Cotton Group Corporation Langfang Storage &
Transportation Co., Ltd. as legal representative
l
General Manager:
Mr. Wang Qun , ID # 650102197010043516, born in 1970, 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 selling cotton.
SC’s products
mainly include cotton.
SC sources its materials 95% from domestic
market, and 5% from overseas market. SC sells 100% of its products in domestic
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 and Credit of 30-60 days.
Note: SC’s management declined to release its main clients and
suppliers.
Beijing
China-Cotton International Ltd.
=============================
Legal representative: Shi Jinkai
Registration
no.: 110102005829069
Tel:
010-88086555
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.
Bank of Beijing
AC#20109099314
Relationship: Normal
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
Cash & bank |
9,290 |
11,850 |
|
Inventory |
5,530 |
10,510 |
|
Accounts
receivable |
3,060 |
9,960 |
|
Advances to
suppliers |
75,610 |
66,420 |
|
Other
receivables |
47,480 |
49,220 |
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Other current
assets |
490 |
5,470 |
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|
------------------ |
------------------ |
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Current assets |
141,460 |
153,430 |
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Fixed assets net
value |
10 |
30 |
|
Projects under
construction |
0 |
0 |
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Long term
investment |
400 |
400 |
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Other assets |
0 |
0 |
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|
------------------ |
------------------ |
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Total assets |
141,870 |
153,860 |
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|
============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
10 |
4,800 |
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Other payable |
82,040 |
66,970 |
|
Taxes payable |
720 |
560 |
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Advances from
clients |
21,610 |
27,740 |
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Other current
liabilities |
200 |
8,760 |
|
|
------------------ |
------------------ |
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Current
liabilities |
104,580 |
108,830 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
104,580 |
108,830 |
|
Equities |
37,290 |
45,030 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
141,870 |
153,860 |
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|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
|
Turnover |
858,270 |
908,500 |
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Cost of goods
sold |
836,590 |
876,540 |
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Sales expense |
12,180 |
14,180 |
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Management expense |
650 |
780 |
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Finance expense |
1,750 |
1,550 |
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Investment
income |
-640 |
130 |
|
Profit before
tax |
9,100 |
10,150 |
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Less: profit tax |
2,310 |
2,420 |
|
Profits |
6,790 |
7,730 |
Note: The above
financial records for Yr2010 have not been audited.
Important Ratios
=============
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
*Current ratio |
1.35 |
1.41 |
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*Quick ratio |
1.30 |
1.31 |
|
*Liabilities
to assets |
0.74 |
0.71 |
|
*Net profit
margin (%) |
0.79 |
0.85 |
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*Return on
total assets (%) |
4.79 |
5.02 |
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*Inventory
/Turnover ×365 |
2 days |
4 days |
|
*Accounts
receivable/Turnover ×365 |
1 day |
4 days |
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*Turnover/Total
assets |
6.05 |
5.90 |
|
* Cost of
goods sold/Turnover |
0.97 |
0.96 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in both
years.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s cost of goods sold is high in both years,
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 is maintained in an average
level in both years.
l
The accounts receivable of SC is maintained in an
average level in both years.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a fairly good level in both
years, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both years.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Stable.
SC is considered medium-sized in its line with favorable background and
stable financial conditions. A credit line up to USD 400,000 appears to be within
SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.06 |
|
|
1 |
Rs.79.15 |
|
Euro |
1 |
Rs.69.03 |
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 |
|
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.