MIRA
INFORM REPORT
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Report Date : |
21.06.2012 |
IDENTIFICATION DETAILS
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Name : |
A & Z FOOD ADDITIVES CO., LTD. |
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Registered Office : |
Room 801 |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
11.01.2000 |
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Com. Reg. No.: |
330106000118838 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
selling food additive |
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No. of Employees : |
11 |
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
A & Z FOOD ADDITIVES CO., LTD.
ROOM 801 YITAI
BUILDING, NO.
TEL: 86 (0)
571-81634009/87357395 FAX: 86 (0)
571-87357395
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 11, 2000
REGISTRATION NO. : 330106000118838
REGISTERED LEGAL
FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 11
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 9,770,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 1,010,000 (AS OF
DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.36 = USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
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 Jan. 11, 2000.
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 food additive; importing and exporting
various goods.
SC is mainly
engaged in selling food additive.
Mr. Chen Guoliang has been legal representative, chairman and general
manager of SC since 2000.
SC is
known to have approx. 11 employees at present.
SC
is currently operating at the above stated address, and
this address houses its operating office in the commercial zone of Hangzhou.
Our checks reveal that SC rents the total premise about 100 square meters.
http://www.chinaadditives.com The design is professional and the content
is well organized. At present it is in Japanese, English and other versions.
Email: info@chinaadditives.com
Changes of SC’s registered
information:
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Date |
Item |
Before changed |
After changed |
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Unknown |
Registered capital |
CNY 500,000 |
Present amount |
|
2010-1 |
Registered number |
3301062003577 |
Present one |
Tax registration certificate number: 330106720051148
Organization code: 72005114-8
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Guoliang 90
Li Tianxia 10
Legal
Representative, Chairman and
General Manager:
Mr. Chen Guoliang, born in 1965, with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 2000 to present Working in SC as chairman, legal representative and general manager.
Supervisor:
Li Tianxia
SC is mainly
engaged in selling food additive.
SC’s products
mainly include
Sweeteners
Acidity Regulators
Preservatives & Anti-Bacterial
Antioxidants
Emulsifiers & Stabilisers & Hydrocolloids
Food Colours
Flavour Enhancers
Anti-caking agent
Anti-foaming agents
Bulking agents
Firming agents
Foaming agents
Glazing agents
Enzymes
Soluble Food Fibers
Beverage Ingredients
SC sources its materials 100%
from domestic market. SC sells 40% of its products in domestic market and 60%
to overseas market.
The buying terms of SC include Check, T/T 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 main clients and suppliers.
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.
Bank of
AC#800104195908091001
Relationship:
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
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Cash & bank |
1,187 |
950 |
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Inventory |
18 |
0 |
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Accounts
receivable |
756 |
410 |
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Advances to
suppliers |
1,152 |
950 |
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Other
receivables |
410 |
470 |
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Other current
assets |
0 |
20 |
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------------------ |
------------------ |
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Current assets |
3,523 |
2,800 |
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Fixed assets net
value |
1,366 |
2,690 |
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Project under
construction |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
4,889 |
5,490 |
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============= |
============= |
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Short loans |
1,000 |
0 |
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Accounts payable |
418 |
230 |
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Other payable |
2,117 |
4,100 |
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Taxes payable |
-322 |
-240 |
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Advances from
clients |
665 |
280 |
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Other current
liabilities |
88 |
110 |
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------------------ |
------------------ |
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Current
liabilities |
3,966 |
4,480 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
3,966 |
4,480 |
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Equities |
923 |
1,010 |
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------------------ |
------------------ |
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Total
liabilities & equities |
4,889 |
5,490 |
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============= |
============= |
Income Statement
Unit: CNY’000
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as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
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Turnover |
8,866 |
9,770 |
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Cost of goods
sold |
7,333 |
8,220 |
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Sales expense |
697 |
460 |
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Management expense |
697 |
860 |
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Finance expense |
24 |
90 |
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Profit before
tax |
112 |
120 |
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Less: profit tax |
28 |
30 |
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Profits |
84 |
90 |
Important Ratios
=============
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as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
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*Current ratio |
0.89 |
0.63 |
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*Quick ratio |
0.88 |
0.63 |
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*Liabilities
to assets |
0.81 |
0.82 |
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*Net profit
margin (%) |
0.95 |
0.92 |
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*Return on
total assets (%) |
1.72 |
1.64 |
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*Inventory
/Turnover ×365 |
1 day |
/ |
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*Accounts
receivable/Turnover ×365 |
32 days |
16 days |
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*Turnover/Total
assets |
1.81 |
1.78 |
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* Cost of
goods sold/Turnover |
0.83 |
0.84 |
PROFITABILITY: AVERAGE
l
The turnover of SC appears average and it increased
in 2011.
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 average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a normal level in
2010 but in a fair level in 2011.
l
The inventory of SC appears average in 2010.
l
The accounts receivable of SC appears average.
l
SC has no short-term loan in 2011.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly 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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.86 |
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|
1 |
Rs.87.93 |
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Euro |
1 |
Rs.70.88 |
INFORMATION DETAILS
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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.