MIRA
INFORM REPORT
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Report Date : |
16.10.2012 |
IDENTIFICATION DETAILS
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Name : |
RIZHAO COFCO PEANUT PRODUCTS CO., LTD. |
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Registered Office : |
Futuan Village, Kuishan Street Rizhao, Shandong Province
276803 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
22.07.1996 |
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Com. Reg. No.: |
371100228041181 |
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Legal Form : |
Limited Liabilities Company |
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line of business
: |
Manufacturing and Selling Titanium Dioxide. |
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No. of Employees : |
17 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow and Delayed |
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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
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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 AND ADDRESS
RIZHAO COFCO PEANUT PRODUCTS CO., LTD.
FUTUAN VILLAGE, KUISHAN STREET
RIZHAO, SHANDONG PROVINCE 276803 PR CHINA
TEL: 86 (0) 633-8215388/8621388
FAX: 86 (0) 633-8623388
EXECUTIVE SUMMARY
Date of Registration : JULY 22, 1996
REGISTRATION NO. : 371100228041181
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
SONG
YUXIANG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 6,000,000
staff :
17
BUSINESS CATEGORY : trading
Revenue :
CNY 2,110,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY -77,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : fair
FINANCIAL CONDITION : poor
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : FAIR
EXCHANGE RATE :
CNY 6.27 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established as a limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
371100228041181 on July 22, 1996.
SC’s Organization Code Certificate No.:
86838921-7
SC’s Tax No.: 371102868389217
SC’s registered capital: CNY 6,000,000
SC’s paid-in capital: CNY 1,299,724.48
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Song Yuxiang and other individuals |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Song Yuxiang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Song Yuxiang and other individuals 100
MANAGEMENT
Song Yuxiang,
Legal Representative, Chairman, and General Manager
-------------------------------------------------------------------------------------------------------
Gender: M
Working experience (s):
At present, working in SC as legal representative, chairman, and general
manager
BUSINESS OPERATION
SC’s registered business scope includes selling hardware, building
materials, grocery, and household electric appliance; importing and exporting
commodities.
SC is mainly engaged in manufacturing and selling titanium dioxide.
SC’s products mainly include:
Peanut
Sesame
Corn
Etc.
SC sources its merchandises 100% from domestic market, mainly Shandong.
SC sells 100% of its merchandises to overseas market, mainly the
Mid East, etc.
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.
Staff &
Office:
--------------------------
SC is known to have approx. 17
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED COMPANY
SC is not known to have any subsidiary at present.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank
China Construction Bank Rizhao Donggang Sub-branch
AC#: 37001716008050147500
***Note: SC’s
accountant refused to release if SC has an account in Shenzhen Development Bank
Co., Ltd. (the given one)
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Cash |
5,634 |
4,707 |
|
Notes receivable |
0 |
0 |
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Accounts receivable |
4,092 |
2,452 |
|
Advances to suppliers |
0 |
0 |
|
Other receivable |
197 |
197 |
|
Inventory |
351 |
736 |
|
Prepaid expenses |
890 |
890 |
|
Other current assets |
1,315 |
1,315 |
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|
------------------ |
------------------ |
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Current assets |
12,479 |
10,297 |
|
Fixed assets |
4,176 |
4,181 |
|
Construction in progress |
88 |
88 |
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Intangible assets |
0 |
0 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
16,743 |
14,566 |
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|
============= |
============= |
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Short-term loans |
4,000 |
3,400 |
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Notes payable |
0 |
0 |
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Accounts payable |
5,664 |
5,774 |
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Wages payable |
187 |
187 |
|
Welfares payable |
-177 |
-184 |
|
Taxes payable |
14 |
24 |
|
Advances from clients |
172 |
172 |
|
Other payable |
6,178 |
5,055 |
|
Accrued expenses |
131 |
131 |
|
Other current liabilities |
19 |
19 |
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------------------ |
------------------ |
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Current liabilities |
16,188 |
14,578 |
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Non-current liabilities |
65 |
65 |
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------------------ |
------------------ |
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Total liabilities |
16,253 |
14,643 |
|
Equities |
490 |
-77 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
16,743 |
14,566 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
Revenue |
2,110 |
|
Cost of sales |
1,958 |
|
Taxes and surcharges |
0 |
|
Sales expense |
268 |
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Management expense |
276 |
|
Finance expense |
192 |
|
Profit before tax |
-567 |
|
Less: profit tax |
0 |
|
Profits |
-567 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
0.77 |
0.71 |
|
*Quick ratio |
0.75 |
0.66 |
|
*Liabilities to assets |
0.97 |
1.01 |
|
*Net profit margin (%) |
-- |
-26.87 |
|
*Return on total assets (%) |
-- |
-3.89 |
|
*Inventory / Revenue ×365 |
-- |
128 days |
|
*Accounts receivable/ Revenue ×365 |
-- |
425 days |
|
* Revenue/Total assets |
-- |
0.14 |
|
* Cost of sales / Revenue |
-- |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY:
POOR
The revenue of SC appears fair in its line in 2011.
SC’s net profit margin is poor.
SC’s return on total assets is fair.
SC’s cost of sales is slightly high, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level in both years.
SC’s quick ratio is maintained in a fair level in both years.
The inventory of SC appears average.
The accounts receivable of SC appears large in both years.
The short-term loans of SC appear large in both years.
SC’s revenue is in a poor level, comparing with the size of its total
assets.
LEVERAGE: POOR
The debt ratio of SC is high.
The risk for SC to go bankrupt is fairly high.
Overall financial
condition of the SC: Poor.
CONCLUSIONS
SC is considered small-sized in its line with poor financial conditions.
The large amount of accounts receivable and short-term loans may be a threat to
SC’s financial condition. A credit line at the above amount appears beyond SC’s
capacities, and great caution is required in providing credit to SC &
C.O.D. is recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.12 |
|
UK Pound |
1 |
Rs.85.14 |
|
Euro |
1 |
Rs.68.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
|
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 |
|
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.