MIRA
INFORM REPORT
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Report Date : |
09.11.2012 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Room 1308a, No. 186-1 Jiangdong Middle
Road, Jianye District, Nanjing City, Jiangsu, 210019
Pr |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
24.11.2010 |
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Com. Reg. No.: |
320105000133613 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
trading of agricultural products |
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No. of Employees : |
11 employees |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.
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Source : CIA |
Company name
& address
NANJING BONAGRO INT'L TRADING CO., LTD.
Room
nanjing city,
jiangsu, 210019 PR CHINA
TEL: 86 (0) 25-58866358/13951988791 FAX: 86 (0) 25-58867358
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 24, 2010
REGISTRATION NO. : 320105000133613
REGISTERED LEGAL FORM :
LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 11
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 15,230,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 2,170,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2446= 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 Nov. 24, 2010.
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 primary products (excluding live-birds),
hardware & electric materials,
article of daily use, office supplies, textile products, cleaning products,
sports goods, mechanical & electrical products, digital products; importing
& exporting various goods and technologies (excluding
goods or technologies limited or forbidden by state).
SC is mainly
engaged in trading of agricultural products.
Ms. Zhang Chunyan
is legal representative, chairman and general manager of SC at present.
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 Nanjing.
Our checks reveal that SC rents the premise with about 90 ㎡.
www.bona-agro.com The design is
professional and the content is well organized. At present it is in Chinese and
English versions.
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiang Tingting 29
Yuan Yuan 29
Zhang Chunyan 29
Pan Rujiang 13
Legal Representative,
Chairman and General Manager:
Ms. Zhang Chunyan, ID# 152922198004250022, 32 years old, she is
currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative, chairman and general manager.
Supervisor:
Ms. Jiang Tingting, ID# 342422198310270185, born in 1983
SC is mainly
engaged in trading of agricultural products.
SC’s products mainly include: kidney beans, pulses
& beans, millet, oil seeds, spice, canned food, imported sesames & golden dates, etc.
SC sources its materials 98% from domestic
market, and 2% from overseas market. SC sells 2% of
its products in domestic market, and 98% to overseas market, mainly to
South-east Asia, the Middle East, Russia and Europe.
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 major clients and suppliers.
SC is not known to have the 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 China
Account No.: 532658191674
Relationship:
Normal
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2011 |
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Cash & bank |
2,830 |
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Inventory |
3,530 |
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Accounts
receivable |
0 |
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Advances to
suppliers |
1,360 |
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Subsidies
receivable |
310 |
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Other
receivables |
0 |
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Prepaid expenses |
10 |
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------------------ |
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Current assets |
8,040 |
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Fixed assets net
value |
30 |
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Long term
investment |
0 |
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------------------ |
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Total assets |
8,070 |
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============= |
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Short loans |
0 |
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Accounts payable |
4,220 |
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Advances from
clients |
1,640 |
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Other accounts
payable |
40 |
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Current
liabilities |
5,900 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
5,900 |
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Equities |
2,170 |
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------------------ |
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Total
liabilities & equities |
8,070 |
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Income Statement
Unit: CNY’000
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as of Dec. 31,
2011 |
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Turnover |
15,230 |
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Cost of goods
sold |
13,510 |
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Taxes
and additional of main operation |
0 |
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Sales expense |
1,440 |
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Management expense |
110 |
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Finance expense |
-80 |
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Non-operating
income |
0 |
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Non-operating expense |
0 |
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Profit before
tax |
250 |
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Less: profit tax |
70 |
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Profits |
180 |
Important Ratios
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as
of Dec. 31, 2011 |
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*Current ratio |
1.36 |
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*Quick ratio |
0.76 |
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*Liabilities
to assets |
0.73 |
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*Net profit
margin (%) |
1.18 |
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*Return on
total assets (%) |
2.23 |
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*Inventory
/Turnover ×365 |
85 days |
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*Accounts
receivable/Turnover ×365 |
- |
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*Turnover/Total
assets |
1.89 |
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* Cost of
goods sold/Turnover |
0.89 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average 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 average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is normal.
l
SC’s quick ratio is fair.
l
SC’s inventory is average in 2011.
l
SC has no account receivable in 2011.
l
SC has no short-term loan in 2011.
l
SC’s turnover is average, 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 average.
Overall financial
condition of the SC: stable.
SC is considered small-sized in its line with stable
financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.54.44 |
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UK Pound |
1 |
Rs.87.00 |
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Euro |
1 |
Rs.69.43 |
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.