MIRA INFORM REPORT

 

 

Report Date :

22.12.2012

 

IDENTIFICATION DETAILS

 

Name :

HA UYEN COMPANY LIMITED

 

 

Registered Office :

No. 131 Nguyen Du Str., Hoa Binh Area, Hoa Lac Ward, Mong Cai City, Quang Ninh Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

25.06.2009

 

 

Com. Reg. No.:

5700623577

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Import for Re-export and trading agricultural products, mining equipments and automobile tires.

 

 

No. of Employees :

6

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Vietnam

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


 

vietnam - ECONOMIC OVERVIEW

 

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

 

Source : CIA

 

 


 

SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

English Registered Name

 

HA UYEN COMPANY LIMITED

Vietnamese Registered Name

 

CONG TY TNHH HA UYEN

Registered Short name

 

HA UYEN CO.,LTD

Type of Business

 

Limited liability company

Year Established

 

2006

Business Registration No.

 

5700623577

Date of Registration

 

25 Jun 2009

Place of Registration

 

Quang Ninh Department of Planning and Investment

Chartered capital

 

VND 1,850,000,000

Status

 

Unlisted

Tax code

 

5700623577

Total Employees

 

6

Size

 

Small

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Shareholders: Mr. HA QUOC DOANH

Changed to: Ms. NGUYEN THI TU ANH

18 Oct 2012

2

Subject has got former Business Registration No: 2202001429 issued on 11 Dec 2006 Changed to: 5700623577

25 Jun 2009

3

Subject has got former Total Employees: 32 (Feb 2012) Changed to: 6

N/A

 

 

ADDRESSES

 

Head Office

Address

 

No. 131 Nguyen Du Str., Hoa Binh Area, Hoa Lac Ward, Mong Cai City, Quang Ninh Province, Vietnam

Telephone

 

(84-33) 3772047

Fax

 

(84-33) 3772047

 

 

 

DIRECTORS

 

1. NAME

 

Mr. PHAM VAN LUAN

Position

 

Director

Date of Birth

 

15 Sep 1978

ID Number/Passport

 

186123053

ID Issue Date

 

07 Sep 2001

ID Issue Place

 

Nghe An Police Dept

Current resident

 

No. 10B Dan Tien Street, Hoa Lac Ward, Mong Cai City, Quang Ninh Province, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 906 125 888

 

2. NAME

 

Mr. TRAN TIEN CHUNG

Position

 

Chief Accountant

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 919 778 227

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The company specializes in temporary import for re-export and trading agricultural products, mining equipments and automobile tires.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Types of products

 

Agricultural products, mining equipments

Market

 

India and South African Countries

Mode of payment

 

TT, LC

 

EXPORT:

Types of products

 

Finished Products

Market

 

China

 

 

 

BANKERS

 

1. VIETNAM INTERNATIONAL COMMERCIAL JOINT STOCK BANK MONG CAI BRANCH

Address

 

No.9 Hung Vuong Street-Tran Phu, Mong Cai City, Quang Ninh Province, Vietnam

Telephone

 

(84-33) 3886816

Fax

 

(84-33) 3882777

 

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. PHAM VAN LUAN

Position

 

Director

Date of Birth

 

15 Sep 1978

ID Number/Passport

 

186123053

Issued on

 

07 Sep 2001

Issued Place

 

Nghe An Police Dept

Current Resident

 

No. 10B Dan Tien Street, Hoa Lac Ward, Mong Cai City, Quang Ninh Province, Vietnam

Mobile phone

 

+84 906 125 888

Nationality

 

Vietnamese

Value of shares

 

VND 1,055,000,000

Percentage

 

57%

 

2. NAME

 

Mr. HA QUOC DOANH

ID Number/Passport

 

101015927

Resident

 

Group 20 Hoa Lac Ward, Mong Cai City, Quang Ninh Province, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 795,000,000

Percentage

 

43%

 

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

114,179,407,880

2,837,110,362

 

I. Cash and cash equivalents

10,964,446,462

2,460,499,874

 

1. Cash

10,964,446,462

2,460,499,874

 

2. Cash equivalents

0

0

 

II. Short-term investments

0

0

 

1. Short-term investments

0

0

 

2. Provisions for devaluation of short-term investments

0

0

 

III. Accounts receivable

100,777,529,591

309,281,100

 

1. Receivable from customers

100,777,529,591

309,281,100

 

2. Prepayments to suppliers

0

0

 

3. Inter-company receivable

0

0

 

4. Receivable according to the progress of construction

0

0

 

5. Other receivable

0

0

 

6. Provisions for bad debts

0

0

 

IV. Inventories

2,437,431,827

67,329,388

 

1. Inventories

2,437,431,827

67,329,388

 

2. Provisions for devaluation of inventories

0

0

 

V. Other Current Assets

0

0

 

1. Short-term prepaid expenses

0

0

 

2. VAT to be deducted

0

0

 

3. Taxes and other accounts receivable from the State

0

0

 

4. Other current assets

0

0

 

B. LONG-TERM ASSETS

235,408,991

279,892,991

 

I. Long term accounts receivable

0

0

 

1. Long term account receivable from customers

0

0

 

2. Working capital in affiliates

0

0

 

3. Long-term inter-company receivable

0

0

 

4. Other long-term receivable

0

0

 

5. Provisions for bad debts from customers

0

0

 

II. Fixed assets

235,408,991

279,892,991

 

1. Tangible assets

235,408,991

279,892,991

 

- Historical costs

324,376,991

324,376,991

 

- Accumulated depreciation

-88,968,000

-44,484,000

 

2. Financial leasehold assets

0

0

 

- Historical costs

0

0

 

- Accumulated depreciation

0

0

 

3. Intangible assets

0

0

 

- Initial costs

0

0

 

- Accumulated amortization

0

0

 

4. Construction-in-progress

0

0

 

III. Investment property

0

0

 

Historical costs

0

0

 

Accumulated depreciation

0

0

 

IV. Long-term investments

0

0

 

1. Investments in affiliates

0

0

 

2. Investments in business concerns and joint ventures

0

0

 

3. Other long-term investments

0

0

 

4. Provisions for devaluation of long-term investments

0

0

 

V. Other long-term assets

0

0

 

1. Long-term prepaid expenses

0

0

 

2. Deferred income tax assets

0

0

 

3. Other long-term assets

0

0

 

VI. Goodwill

0

0

 

1. Goodwill

0

0

 

TOTAL ASSETS

114,414,816,871

3,117,003,353

 

 

LIABILITIES

A- LIABILITIES

112,506,991,986

1,717,005,619

 

I. Current liabilities

112,506,991,986

1,717,005,619

 

1. Short-term debts and loans

0

0

 

2. Payable to suppliers

112,677,268,279

1,628,155,838

 

3. Advances from customers

0

0

 

4. Taxes and other obligations to the State Budget

-170,276,293

88,849,781

 

5. Payable to employees

0

0

 

6. Accrued expenses

0

0

 

7. Inter-company payable

0

0

 

8. Payable according to the progress of construction contracts

0

0

 

9. Other payable

0

0

 

10. Provisions for short-term accounts payable

0

0

 

11. Bonus and welfare funds

0

0

 

II. Long-Term Liabilities

0

0

 

1. Long-term accounts payable to suppliers

0

0

 

2. Long-term inter-company payable

0

0

 

3. Other long-term payable

0

0

 

4. Long-term debts and loans

0

0

 

5. Deferred income tax payable

0

0

 

6. Provisions for unemployment allowances

0

0

 

7. Provisions for long-term accounts payable

0

0

 

8. Unearned Revenue

0

0

 

9. Science and technology development fund

0

0

 

B- OWNER’S EQUITY

1,907,824,885

1,399,997,734

 

I. OWNER’S EQUITY

1,907,824,885

1,399,997,734

 

1. Capital

1,854,176,783

1,364,176,783

 

2. Share premiums

0

0

 

3. Other sources of capital

0

0

 

4. Treasury stocks

0

0

 

5. Differences on asset revaluation

0

0

 

6. Foreign exchange differences

0

0

 

7. Business promotion fund

0

0

 

8. Financial reserved fund

0

0

 

9. Other funds

0

0

 

10. Retained earnings

53,648,102

35,820,951

 

11. Construction investment fund

0

0

 

12. Business arrangement supporting fund

0

0

 

II. Other sources and funds

0

0

 

1. Bonus and welfare funds (Elder form)

0

0

 

2. Sources of expenditure

0

0

 

3. Fund to form fixed assets

0

0

 

MINORITY’S INTEREST

0

0

 

TOTAL LIABILITIES AND OWNER’S EQUITY

114,414,816,871

3,117,003,353

 

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

258,865,940,817

13,637,444,134

2. Deduction item

0

0

3. Net revenue

258,865,940,817

13,637,444,134

4. Costs of goods sold

254,368,920,051

13,218,034,207

5. Gross profit

4,497,020,766

419,409,927

6. Financial income

54,856,525

1,046,200

7. Financial expenses

262,155,063

0

- In which: Loan interest expenses

0

8. Selling expenses

0

0

9. Administrative overheads

4,215,879,752

368,890,269

10. Net operating profit

73,842,476

51,565,858

11. Other income

0

0

12. Other expenses

0

3,804,590

13. Other profit /(loss)

0

-3,804,590

14. Total accounting profit before tax

73,842,476

47,761,268

15. Current corporate income tax

18,460,619

11,940,317

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

55,381,857

35,820,951

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

1.01

1.65

1.21

Quick liquidity ratio

0.99

1.61

0.72

Inventory circle

203.11

266.91

12.25

Average receive period

142.10

8.28

51.49

Utilizing asset performance

2.26

4.38

2.30

Liability by total assets

98.33

55.09

59.32

Liability by owner's equity

5,897.13

122.64

229.17

Ebit / Total assets (ROA)

0.06

1.53

8.16

Ebit / Owner's equity (ROE)

3.87

3.41

24.08

Ebit / Total revenue (NPM)

0.03

0.35

6.61

Gross profit / Total revenue (GPM)

1.74

3.08

16.82

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

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Medium

Payment status

 

Average

Financial Situation

 

Below Average

Development trend

 

Developing

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

TT, LC

Sale Methods

 

Other

 

 

 

 

INTERPRETATION ON THE SCORES

 

Founded in 2006 as the limited liability company under business registration No. 2202001429, now the registration was changed into No. 5700623577. The current chartered capital of the subject is VND 1,850,000,000. The subject operates in temporary import for re-export field. Besides, It is also trading agricultural products, automobile tires and mining equipments. The main import market of the subject is India and South African market. Products are exported to China.

Now, the subject is operating at No. 131 Nguyen Du Str., Hoa Binh Area, Hoa Lac Ward, Mong Cai City, Quang Ninh Province, Vietnam where is the registration address of the subject. According to Mr. Trung – Chief accountant, now total employees of the subject are decreased very much, from 32 people at the beginning of the year to 6 people at the present because the subject’ business is not busy as before.

Financially, 2011 is the busy year of the subject. Revenue of the subject in 2011 was very high which attained VND 258 billion, up 19 times against 2010. However, the main business activities of the subject are supply services so the costs of goods sold is very high which occupied 97% total sales in 2010 and 98% total sales in 2011. That’s why the profitability of the subject is humble. In addition, administrative overheads in 2011 were higher eleven-fold than 2010. Hence, profit was not improved much.

Business in 2011 was very good. However self-finance of the subject was limited so its liabilities were very high. Liabilities only occupied 55% total assets in 2010, but in 2011 this rate was 98% in which payable to suppliers engrossed. That’s why the liquidity ratios in 2011 were decreased strongly in comparison with two previous years.

In conclusion, the subject is a small company. It can meet the small business transactions.

 

 

INDUSTRY DATA

 

Industry code

Growth speed by price compared with 1994 (%)

Total enterprises 2010

Total employees 2011

(Thous.pers.)

Annual average capital of enterprises 2010

(billion dongs)

2011

2010

Agriculture, Forestry and Fishing

4.00

2.78

8,887

24,362.9

95,227

Industry and Construction

5.53

7.70

95,217

10,718.9

3,641,376

Trade and Services

6.69

7.52

187,195

15,270.2

6,957,082

 

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.55.08

UK Pound

1

Rs.89.53

Euro

1

Rs.72.77

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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%)

 

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