The Evaluation For Working Capital Loan Of Jilin ZD Industrial Co LTD

Jilin ZD industrial co. ltd, the leading feedstuff enterprise of Jilin province, is also the first joint-stock corporation of China and foreign countries in our country. Owing to the turnover of operation funds, it needs a loan of RMB 20,000,000 from bank B in Changchun.The purpose of evaluating the fluxion funds loan item of ZD industrial company is to ascertain the risk and the feasibility. The examinations of borrower mostly are payback-ability, financial statement, development situation and credit status etc.While the examinations of the guarantor mostly are basic circumstance, qualifications and financial situation.The loan applicant ZD company is one of the biggest feedstuff production enterprises in the northeast region, with the registered capital of RMB 70,000,000. The main product contains all kinds of complete feed, concentrated feed, compound premix feed for livestock and aquatic product. The company had been appraised as one of the 50 best companies in Changchun Economic and Technological Development Zone for four years since 1999 to 2002. The ZD company have two Production Base, and the total value (current value) is RMB 53,460,000.The supplies of original materials of the ZD industry company are abundant and sales markets are developing steadily. In 2004,the total foodstuff output of our country is 469.5 billion kg, which turn over the situation of five-year-decline since 1999.In 2005 the foodstuff output will still increase steadily and even better than that of 2004, so the supplies of original material of ZD Company are abundant. Considering from the general trend of feedstuff industry, the sales situation of ZD Company and built of sales network, the sales of ZD Company will increase, the cost will be on the decline, at the same time the profit will go up.The financial affairs of ZD Company are in order, and the financial rate is reasonable. Until 2005 May, the sales income is RMB 145.91 million, net income is RMB 4.9million, total assets is RMB 186.41 million, including: current assets 125.1 million, fixed assets RMB 52.44 million, Intangible assets RMB 8.87 million; liabilities RMB 97.08 million; equity RMB 89.33 million including: capital stock RMB 70 million, net income of the year RMB 4.9 million, retained earnings 11.63 million.The sales target of ZD Industry Company in 2005 is 119.4 thousand ton. And...