MIRA INFORM REPORT

 

 

Report Date :           

10.04.2012

 

IDENTIFICATION DETAILS

 

Correct Name :

RICHES HIGH - TECH WRAPPER VIETNAM COMPANY LIMITED 

 

 

Registered Office :

No. 104/1 Road 2 Amata Industrial Zone, Bien Hoa City, Dong Nai Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2010

 

 

Year of Establishment :

1997

 

 

Legal Form :

Foreign Invested Company

 

 

Line of Business :

manufacturer of high – tech wrapper and bags in multi – layer plastic films

 

 

No. of Employees :

170

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

No Complaints

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)

Vietnam

b1

b1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

English Name

 

RICHES HIGH - TECH WRAPPER VIETNAM COMPANY LIMITED

Vietnamese Name

 

CONG TY TNHH BAO BI KY THUAT CAO RICHES VIET NAM

Type of Business

 

Foreign invested company

Year Established

 

1997

Investment Certificate No

 

No. 4/GP- KCN - DN

Date Of Issuance

 

16 Aug 1997

Place of Issuance

 

Dong Nai Industrial Zones Authority

Registered Investment Capital

 

USD 20,000,000

Chartered capital

 

USD 6,000,000

Status

 

Unlisted

Tax code

 

3600359371

Total Employees

 

170

Note

 

The given name RICHES HICH TECH WRAPAPER CO LTD is not correct. The correct one is as above.

 

Historical Identification & Legal form

List

Changed Items

Date of changes

1

Subject has got former Registered Investment Capital: 12,000,000 USD Changed to: 20,000,000 USD

2007

 

 

 

company ADDRESSES

 

Head Office

Address

 

No. 104/1 Road 2 Amata Industrial Zone, Bien Hoa City, Dong Nai Province, Vietnam

Telephone

 

(84-61) 3936811

Fax

 

(84-61) 3936810

Email

 

riches.wrap@hcm.vnn.vn

 


 

DIRECTORS

 

1. NAME

 

Mr. HENRY CHENG WEN HUNG

Position

 

General Director

Date of Birth

 

1953

Contact address

 

No. 104/1 Road 2 Amata Industrial Zone, Bien Hoa City, Dong Nai Province, Vietnam

Nationality

 

Taiwanese

 

2. NAME

 

Mr. LIAO MIN CHIEH

Position

 

Deputy General Director

Contact address

 

No. 104/1 Road 2 Amata Industrial Zone, Bien Hoa City, Dong Nai Province, Vietnam

Nationality

 

Taiwanese

 

3. NAME

 

Ms. NGUYEN MINH CHAU

Position

 

Chief Accountant

Contact address

 

No. 104/1 Road 2 Amata Industrial Zone, Bien Hoa City, Dong Nai Province, Vietnam

Nationality

 

Vietnamese

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject specializes in manufacture of high – tech wrapper and bags in multi – layer plastic films, such as: Vacuum bags, aluminum foil and laminate film for automatic package.
PRODUCTS:
• Laminated film/ bag
• Laminated aluminum foil/ bag
• Easy peel film/ foil for bottom tray
• Heavy duty aluminum bag & others
• Micro – waveable bag
• ESS shielding film, ESD moisture barrier foil, Dry pack bag, ESD top cover tape.

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Materials, machines

·         Market

 

Asian countries

·         Mode of payment

 

LC

 

EXPORT:

·         Market

 

Philippines

·         Ratio

 

40%

·         Mode of payment

 

TT

 

 

 

BANKERS

 

1. CHINFON BANK HOCHIMINH CITY BRANCH

Address

 

27Tu Xuong Str, Ward 17 , 3 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3932 5888

Fax

 

(84-8) 3932 6431

 

2. TAIPEI FUBON BANK - HOCHIMINH CITY BRANCH

Address

 

253 Dien Bien Phu Str, Ward 7 , 3 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 39325888

Fax

 

(84-8) 39326431

 

 

 

SHAREHOLDERS

 

1. NAME

 

RICHES INTERNATIONAL ENTERPRISE (B.V.I) CO., LTD

Address

 

P.O.Box 662 Road Town, Tortola Nationality, British Virgin Islands

Percentage

 

100%

 


FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2010

31/12/2009

31/12/2008

Number of weeks

52

52

52

ASSETS

A – CURRENT ASSETS

179,707,310,457

171,160,000,000

179,835,641,213

I. Cash and cash equivalents

14,013,505,125

14,616,000,000

1,788,769,516

1. Cash

2,084,284,108

3,616,000,000

1,788,769,516

2. Cash equivalents

11,929,221,017

11,000,000,000

0

II. Short-term investments

0

0

0

1. Short-term investments

0

0

0

2. Provisions for devaluation of short-term investments

0

0

0

III. Accounts receivable

88,500,735,693

61,704,000,000

65,911,817,546

1. Receivable from customers

84,347,289,437

57,183,000,000

59,213,026,157

2. Prepayments to suppliers

8,543,254

3,075,000,000

3,230,420,000

3. Inter-company receivable

0

0

0

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

5,569,120,983

2,871,000,000

4,892,589,370

6. Provisions for bad debts

-1,424,217,981

-1,425,000,000

-1,424,217,981

IV. Inventories

76,695,484,831

93,217,000,000

109,263,659,139

1. Inventories

92,748,291,499

108,995,000,000

117,453,330,755

2. Provisions for devaluation of inventories

-16,052,806,668

-15,778,000,000

-8,189,671,616

V. Other Current Assets

497,584,808

1,623,000,000

2,871,395,012

1. Short-term prepaid expenses

43,724,808

41,000,000

58,290,960

2. VAT to be deducted

0

1,191,000,000

2,564,320,052

3. Taxes and other accounts receivable from the State

0

0

0

4. Other current assets

453,860,000

391,000,000

248,784,000

B. LONG-TERM ASSETS

158,915,855,877

167,498,000,000

165,865,706,958

I. Long term accounts receivable

0

0

0

1. Long term account receivable from customers

0

0

0

2. Working capital in affiliates

0

0

0

3. Long-term inter-company receivable

0

0

0

4. Other long-term receivable

0

0

0

5. Provisions for bad debts from customers

0

0

0

II. Fixed assets

144,810,319,203

157,073,000,000

156,137,131,632

1. Tangible assets

130,011,341,058

141,833,000,000

145,785,423,570

- Historical costs

242,580,877,335

238,198,000,000

225,734,026,505

- Accumulated depreciation

-112,569,536,277

-96,365,000,000

-79,948,602,935

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

14,798,978,145

15,240,000,000

10,351,708,062

- Initial costs

18,214,157,942

18,215,000,000

12,960,434,063

- Accumulated amortization

-3,415,179,797

-2,975,000,000

-2,608,726,001

4. Construction-in-progress

0

0

0

III. Investment property

0

0

0

Historical costs

0

0

0

Accumulated depreciation

0

0

0

IV. Long-term investments

0

0

0

1. Investments in affiliates

0

0

0

2. Investments in business concerns and joint ventures

0

0

0

3. Other long-term investments

0

0

0

4. Provisions for devaluation of long-term investments

0

0

0

V. Other long-term assets

14,105,536,674

10,425,000,000

9,728,575,326

1. Long-term prepaid expenses

9,343,245,987

8,032,000,000

7,289,738,705

2. Deferred income tax assets

4,747,799,687

2,393,000,000

2,438,836,621

3. Other long-term assets

14,491,000

0

0

VI. Goodwill

0

0

0

1. Goodwill

0

0

0

TOTAL ASSETS

338,623,166,334

338,658,000,000

345,701,348,171

 

LIABILITIES

A- LIABILITIES

150,365,957,266

180,815,000,000

189,151,840,604

I. Current liabilities

113,061,858,166

128,065,000,000

122,132,919,504

1. Short-term debts and loans

48,879,097,399

78,387,000,000

67,745,859,463

2. Payable to suppliers

34,101,317,979

30,668,000,000

30,971,935,271

3. Advances from customers

0

64,000,000

47,428,675

4. Taxes and other obligations to the State Budget

10,754,836,917

2,572,000,000

9,707,214,006

5. Payable to employees

2,014,104,000

1,017,000,000

871,513,000

6. Accrued expenses

16,644,328,002

14,538,000,000

12,393,346,689

7. Inter-company payable

0

0

0

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

668,173,869

819,000,000

395,622,400

10. Provisions for short-term accounts payable

0

0

0

II. Long-Term Liabilities

37,304,099,100

52,750,000,000

67,018,921,100

1. Long-term accounts payable to suppliers

7,667,460,000

15,824,000,000

23,462,214,000

2. Long-term inter-company payable

0

0

0

3. Other long-term payable

47,720,100

45,000,000

44,438,100

4. Long-term debts and loans

0

35,810,000,000

42,374,592,000

5. Deferred income tax payable

28,322,272,000

0

0

6. Provisions for unemployment allowances

0

1,071,000,000

1,137,677,000

7. Provisions for long-term accounts payable

1,266,647,000

0

0

B- OWNER’S EQUITY

188,257,209,068

157,843,000,000

156,549,507,567

I. OWNER’S EQUITY

188,257,209,068

157,843,000,000

156,549,507,567

1. Capital

90,420,000,000

90,420,000,000

90,420,000,000

2. Share premiums

0

0

0

3. Other sources of capital

0

0

0

4. Treasury stocks

0

0

0

5. Differences on asset revaluation

-5,797,895,607

-5,798,000,000

-5,797,895,607

6. Foreign exchange differences

0

-2,171,000,000

0

7. Business promotion fund

0

0

0

8. Financial reserved fund

0

0

0

9. Other funds

0

0

0

10. Retained earnings

103,635,104,675

75,392,000,000

71,927,403,174

11. Construction investment fund

0

0

0

II. Other sources and funds

0

0

0

1. Bonus and welfare funds

0

0

0

2. Sources of expenditure

0

0

0

3. Fund to form fixed assets

0

0

0

MINORITY’S INTEREST

0

0

0

TOTAL LIABILITIES AND OWNER’S EQUITY

338,623,166,334

338,658,000,000

345,701,348,171

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2010

FY2009

FY2008

1. Total Sales

322,341,656,456

219,107,000,000

252,153,453,286

2. Deduction item

2,586,317,854

10,062,000,000

1,248,320,643

3. Net sale

319,755,338,602

209,045,000,000

250,905,132,643

4. Costs of goods sold

266,886,732,917

184,908,000,000

212,687,710,916

5. Gross profit

52,868,605,685

24,137,000,000

38,217,421,727

6. Financial income

3,028,931,950

917,000,000

2,139,983,180

7. Financial expenses

13,662,930,434

12,195,000,000

16,298,293,555

- In which: Loan interest expenses

3,226,038,928

0

6,071,995,324

8. Selling expenses

3,909,411,372

 

3,252,563,427

9. Administrative overheads

8,048,512,106

6,519,000,000

6,311,250,463

10. Net operating profit

30,276,683,723

3,797,000,000

14,495,297,462

11. Other income

4,621,620,811

597,000,000

2,866,707,849

12. Other expenses

1,190,195,685

265,000,000

1,179,644,665

13. Other profit /(loss)

3,431,425,126

332,000,000

1,687,063,184

14. Total accounting profit before tax

33,708,108,849

4,129,000,000

16,182,360,646

15. Current corporate income tax

5,648,019,146

619,000,000

3,221,651,800

16. Deferred corporate income tax

-2,354,436,901

-45,000,000

-1,031,582,461

17. Interest from subsidiaries/related companies

0

0

0

18. Profit after tax

30,414,526,604

3,465,000,000

13,992,291,307

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2010

FY2009

FY2008

Average Industry

Current liquidity ratio

1.59

1.34

1.47

1.65

Quick liquidity ratio

0.91

0.61

0.58

0.95

Inventory circle

3.48

1.98

2.28

5.36

Average receive period

101.02

107.74

95.88

69.02

Utilizing asset performance

0.94

0.62

0.73

1.15

Liability by total assets

44.41

53.39

54.72

55.74

Liability by owner's equity

79.87

114.55

120.83

197.00

Ebit / Total assets (ROA)

10.91

1.22

6.44

11.75

Ebit / Owner's equity (ROE)

19.62

2.62

14.22

26.54

Ebit / Total sale (NPM)

11.46

1.88

8.83

10.24

Gross profit / Total sale (GPM)

16.40

11.02

15.16

19.81

Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

 

 

CASH FLOW STATEMENT

(Indirect method)

Items

FY2010

I. Cash flows from operating activities

1. Profit before tax

33,708,108,849

2. Adjustments

 

- Depreciation and amortization

17,273,232,870

- Provisions

275,526,906

- Unrealized foreign exchange difference

3,694,835,268

- Gain/loss from investing activities

-895,070,058

- Interest expense

3,226,038,928

3. Operating profit before movements in working capital

57,282,672,763

- (Increase)/Decrease in receivables

-25,551,308,318

- (Increase)/Decrease in inventories

16,246,538,750

- Increase/(Decrease) in accounts payable

-2,638,090,064

- (Increase)/Decrease in prepaid expenses

-1,314,353,073

- Interest paid

-1,913,958,283

- Corporate income tax paid

-1,995,783,441

- Other cash inflows

2,500,000

- Other cash outflows

0

Net cash from (used in) operating activities

40,118,218,334

II. Cash flows from investing activities

1. Acquisition of fixed assets and other long - term assets

-5,448,253,413

2. Proceeds from fixed assets and long - term assets disposal

569,090,909

3. Cash outflow for lending, buying debt instruments of other companies

0

4. Cash recovered from lending, selling debt instruments of other companies

0

5. Investment in other entities

0

6. Cash recovered from investments in other entities

0

7. Interest income, dividend and profit paid

666,944,871

Net cash from (used in) investing activities

-4,212,217,633

III. Cash flows from financing activities

1. Proceeds from issuing stocks, receiving capital from owners

0

2. Capital withdrawal, buying back issued stocks

0

3. Proceeds from borrowings

175,681,503,329

4. Repayment of borrowings

-212,190,020,014

5. Repayment of obligations under finance leased

0

6. Dividends paid

0

Net cash from (used in) financing activities

-36,508,516,685

Net increase/(decrease) in cash and cash equivalents

-602,515,984

Cash and cash equivalents at beginning of year

14,616,021,109

Effect from changing foreign exchange rate

0

Cash and cash equivalents at end of year

14,013,505,125

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Medium

Payment status

 

Above Average

Financial Situation

 

Above Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

TT, L/C

Sale Methods

 

To contracts

Public opinion

 

Well-known

 

 

CREDIT INQUIRY: 125,000 USD against DA in term.

Acceptable!

 


 

 

INTERPRETATION ON THE SCORES

 

The subject is a wholly foreign invested company that was established in 1997 under the Investment Certificate No. 04/GP-KCN-ĐN issued by Dong Nai Industrial Zones Authority. Its original investor is from Taiwan, but in legal document, the subject is directly invested by RICHES INTERNATIONAL ENTERPRISE (B.V.I) CO., LTD, which is an offshore company in British Virgin Islands.

The company's head office is located at No. 104/1, Road 2, Amata Industrial Zone, Bien Hoa CityDong Nai Province, Viet Nam. It specializes in manufacturing high tech wrapper and bags in multi-layer plastic films, such as: compound bag, aluminum foil/ bag, laminate film for automatic package, vacuum bags, high – class PE foil, high – class PA foil… Currently, its products are consumed both in domestic market and foreign markets.

According to the financial statement, the company’s financial situation is considered above average. It is a medium sized company in the industry. At the end of 2010, the value of the company’s total assets was accounted at VND 338.6 billion; which did not change compared to previous years. The company’s assets were mainly financed by owner equity. In 2010, liability by total asset was 44.41%; lower than average industry. According to the financial ratio table, the ratio of liability by total assets has down trend through years. It means that the subject decrease the dependence on external financial resources and the capital structure of the subject is becoming safer. The reason is that the subject has operated effectively in years. The total sales and profit after tax went up through years. In 2010, the subject’s total sales was VND 322.3 billion, increased 47% in comparison with 2009; and profit after tax in 2010 was VND 30.4 billion, increased 768% in comparison with 2009. It made the company’s retained earnings increased through years. So the company’s owner equity increased, too.

In general, the company has capacity to meet small financial commitments. Caution needed for big transactions with the subject.

 

 

APPENDIX

 

INDUSTRY DATA

 

Industry code

Growth speed by price compared with 1994 (%)

Total enterprises 2009

Total employees 2010

(Thous.pers.)

Annual average capital of enterprises 2009

(billion dongs)

2011

2010

Agriculture, Forestry and Fishing

4.00

2.78

8,749

23,896.3

81,559

Industry and Construction

5.53

7.70

85,115

10,630

2,751,975

Trade and Services

6.69

7.52

154,978

14,522

4,939,069

 

ECONOMIC INDICATORS

 

 

2011 

2010 

2009 

Population (Million person)

87.84

86.93

86.02

Gross Domestic Products (USD billion)

119

102.2

91

GDP Growth (%)

5.89

6.78

5.32

GDP Per Capita (USD/person/year)

1,300

1,160

1,080

Inflation (% Change in Composite CPI)

18.58

11.75

6.88

State Budget Deficit compared with GDP (%)

4.9

5.8

6.9

 

SERVICE TRADE PERFORMANCE

 

Billion USD 

2011 

2010 

2009 

Exports

96.3

72.2

57.1

Imports

105.8

84.8

69.9

Trade Balance

-9.5

-12.6

-12.8

Source: General Statistics Office


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.28

UK Pound

1

Rs.81.38

Euro

1

Rs.67.01

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.