MIRA
INFORM REPORT
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Report Date : |
13.06.2012 |
IDENTIFICATION DETAILS
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Name : |
FUJIAN FURNITURE IMPORT & EXPORT
CORPORATION |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2008 |
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Date of Incorporation : |
08.04.1981 |
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Com. Reg. No.: |
350000100001999 |
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Legal Form : |
State-Owned
Enterprise |
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Line of Business : |
export of
furniture |
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No. of Employees : |
30 |
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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Status : |
Moderate |
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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, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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
FUJIAN FURNITURE IMPORT
& EXPORT CORPORATION
NO. 31 WUYI NORTH ROAD, GULOU DISTRICT,
FUZHOU,
FUJIAN PROVINCE, 350001 PR CHINA
TEL: 0086-591-87552760/87506064 FAX: 0086-591-87506060
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 8, 1981
REGISTRATION NO. : 350000100001999
REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE
CHIEF EXECUTIVE : MR. CHEN JIAN (LEGAL REPRESENTATIVE)
STAFF STRENGTH : 30
REGISTERED CAPITAL :
CNY 10,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 185,920,000 (AS OF DEC. 31, 2008)
EQUITIES :
CNY 17,050,000 (AS OF DEC. 31, 2008)
PAYMENT :
AVERAGE
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 state-owned
enterprise at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on Apr. 8, 1981.
Company Status: State-owned enterprise This form of business in PR China is defined as a
commodity production or operational units of a socialist character which in
accordance with the law, has autonomy in management, takes full
responsibility for its profits and losses and practices independent
business accounting. It is a legal person established directly by central /
local government or enterprise owned by central or local government. In
theory, the liabilities of this form of enterprise are ultimately borne by
the government, since the adoption of company law in mid-1994, the Chinese
government has planned to separate the ownership from management and
liabilities bearing.
SC’s
registered business scope includes foreign trade, undertaking joint ventures,
cooperative production business, undertaking the processing
with imported materials, processing with imported samples, assembling with
imported parts, and compensation trade in agreement; managing entrepot trade,
furniture, plates, bamboo products, household goods, hardware tools, paints,
adhesives, wallpaper, carpet, steel, handicrafts, bar machines, wood processing
machinery, wood-based panels and wood fiber processing, wholesaling fertilizers.
SC is
mainly engaged in export of furniture.
Mr. Chen Jian is the legal representative and general
manager of SC at present.
SC is known to have approx. 30 employees
at present.
SC is currently operating at the above stated address, and this
address houses its operating office in the commercial zone of Fuzhou. SC’s management declined to
release the detailed information of the premise.
http://www.furniturefujian.com
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
Email: mail@furniturefujian.com
chenjian@furniturefujian.com
SC has passed the authentication of Quality System of ISO 9001: 2000
Standard and FSC Certificate, and was awarded as Fujian Famous Brand, Fujian Export
Famous Brand, Fujian International Well-known Brand, etc.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDER:
Name %
of Shareholding
Fujian Cities Collective Unit
Industry Cooperatives Association 100
Legal
representative and
general manager:
Mr. Chen Jia, about 42 years old 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 general manager
SC is
mainly engaged in export of furniture.
SC’s products mainly include: steel furniture, wood furniture, bamboo and
woods, wood products, etc.
SC sources its materials 100% from domestic
market. SC sells 10% of its products in domestic market, and 90% to overseas
market, mainly to Europe, America and Japan.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier*
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FUJIAN FUQING GONGMAO POOL FITMENT FACTORY
*Major Customer*
==============
Fujian Mawei Steel Wood Furniture Factory
FUJIAN FUQING GONGMAO POOL FITMENT FACTORY
Fujian Indoor Decoration Construction-Design Co., Ltd.
Etc.
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’s suppliers
declined to make any comments.
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 China Fujian Branch
AC#800100024008091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2007 |
As
of Dec. 31, 2008 |
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Cash & bank |
10,240 |
15,340 |
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Inventory |
140 |
160 |
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Accounts
receivable |
9,150 |
11,380 |
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Other accounts
receivable |
21,970 |
170 |
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Advances to
suppliers |
2,090 |
3,720 |
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A receivable tax
rebate of export |
15,350 |
5,160 |
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Other current
assets |
0 |
20 |
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------------------ |
------------------ |
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Current assets |
58,940 |
35,950 |
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Fixed assets net
value |
1,530 |
29,850 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
1,990 |
4,250 |
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Other assets |
80 |
440 |
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------------------ |
------------------ |
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Total assets |
62,540 |
70,490 |
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============= |
============= |
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Short loans |
13,000 |
14,800 |
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Accounts payable |
24,420 |
11,630 |
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Advances from
clients |
7,690 |
10,880 |
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Welfare expenses
payable |
450 |
380 |
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Taxes payable |
520 |
-270 |
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Surcharge
payable |
100 |
20 |
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Other payable |
240 |
13,110 |
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Accrued expenses |
20 |
2,890 |
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------------------ |
------------------ |
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Current
liabilities |
46,440 |
53,440 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
46,440 |
53,440 |
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Equities |
16,100 |
17,050 |
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------------------ |
------------------ |
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Total
liabilities & equities |
62,540 |
70,490 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2007 |
As of Dec. 31,
2008 |
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Turnover |
217,970 |
185,920 |
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Cost of goods
sold |
205,960 |
174,700 |
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Sales expense |
4,480 |
5,150 |
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Management expense |
5,610 |
5,350 |
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Finance expense |
1,050 |
1,150 |
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Investment
income |
/ |
630 |
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Profit before
tax |
790 |
710 |
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Less: profit tax |
350 |
260 |
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Profits |
440 |
450 |
Note:
SC has not lodged the latest annual returns in local registry, hence no up-to date
detailed financial information available.
Important Ratios
=============
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As
of Dec. 31, 2007 |
As
of Dec. 31, 2008 |
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*Current ratio |
1.27 |
0.67 |
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*Quick ratio |
1.27 |
0.67 |
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*Liabilities to assets |
0.74 |
0.76 |
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*Net profit margin (%) |
0.20 |
0.24 |
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*Return on total assets (%) |
0.70 |
0.64 |
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*Inventory /Turnover ×365 |
1 day |
1 day |
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*Accounts receivable/Turnover ×365 |
15 days |
22 days |
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*Turnover/Total assets |
3.49 |
2.64 |
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* Cost of goods sold/Turnover |
0.94 |
0.94 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line,
and it decreased slightly in 2008.
l
SC’s net profit margin is average in both 2 years.
l
SC’s return on total assets is average in both 2
years.
l
SC’s cost of goods sold is fairly high in both 2
years, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2007, in a fair level in 2008.
l
SC’s quick ratio is maintained in a normal level in
2007, in a fair level in 2008.
l
The accounts receivable of SC appears average in
both 2 years.
l
The inventory of SC appears fairly small in both 2
years.
l
The short-term loan of SC appears fairly large in
both 2 years.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is fairly low.
Overall financial
condition of the SC: Stable
SC is considered medium-sized in its line with stable financial
conditions. The large amount of short-term loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.05 |
|
UK Pound |
1 |
Rs.86.69 |
|
Euro |
1 |
Rs.69.98 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.