MIRA INFORM REPORT

 

 

Report Date :

17.07.2012

 

IDENTIFICATION DETAILS

 

Name :

ZAMIL STEEL BUILDING VIETNAM COMPANY LIMITED

 

 

Registered Office :

Noi Bai Industrial Zone Quang Tien Commune, Soc Son Dist, Ha Noi City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishment :

1997

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Manufacture and trading main frames

 

 

No. of Employees :

1,200

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

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)

Viet Nam

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

 

ZAMIL STEEL BUILDING VIETNAM COMPANY LIMITED

Vietnamese Name

 

CONG TY TNHH NHA THEP TIEN CHE ZAMIL VIET NAM

Trade name

 

ZAMIL STEEL VIETNAM

Short name

 

ZSV

Type of Business

 

Limited liability company

Year Established

 

1997

Investment Certificate No

 

012023000079

Date Of Issuance

 

21 Nov 2007

Place of Issuance

 

Hanoi Industrial Zone Authority

Registered Investment Capital

 

USD 44,000,000

Chartered capital

 

USD 13,200,000

Status

 

Unlisted

Tax code

 

0100680623

Total Employees

 

1,200

Size

 

Large

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Chartered capital: 6,666,666 USD

Changed to: 13,200,000 USD

04 Nov 2008

2

Subject has got former Registered Investment Capital: 34,500,000 USD Changed to: 44,000,000 USD

04 Nov 2008

3

Subject has got former Investment Certificate No: No.1937/GP signed by Ministry of Planning and Investment on June 27th, 1997

Changed to: 012023000079 by Hanoi Industrial Zone Authority

21 Nov 2007

 

ADDRESSES

 

Head Office

Address

 

Noi Bai Industrial Zone Quang Tien Commune, Soc Son Dist, Ha Noi City, Vietnam

Telephone

 

(84-4) 35820800

Fax

 

(84-4) 35820801

Email

 

zsvietnam@zamilsteel.com.vn

Website

 

www.zamilsteel.com.vn

Notes: The correct phone contact of the subject is like above.

Factory Address

Address

 

No. 214-216 Amata Industrial Zone, Long Binh Ward, Bien Hoa City, Dong Nai Province, Vietnam

Telephone

 

(84-61) 3936888

Fax

 

(84-61) 3936889

Email

 

marketing@zamilsteel.com.vn

 

Branch in Ha Noi

Address

 

SALES OFFICE - Unit 901- 902 Deaha center - 360 Kim Ma, Ba Dinh District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3831 5002

Fax

 

(84-4) 3831 5276

Email

 

zshanoi@zamilsteel.com.vn

Note:  Tarek S. ElAwar - Local director

 

Branch in Hai Phong

Address

 

SALES OFFICE - Habbor View Building - No.4 Tran Phu, Hong Bang District, Hai Phong City, Vietnam

Telephone

 

(84-31) 382 7607

Fax

 

(84-31) 355 2544

Email

 

zshaiphong@zamilsteel.com.vn

Note:  Tran Duc Kien - Sales and Marketing Director

 

Branch in Da Nang

Address

 

SALES OFFICE - Floor 9 - Hoang Anh Gia Lai Plaza, No.1 Nguyen Van Linh, , Da Nang City, Vietnam

Telephone

 

(84-511) 381 7995

Fax

 

(84-511) 381 7996

Email

 

zsdanang@zamilsteel.com.vn

Note:  Vo Xuan Thien - Sales and Marketing Director

 

Branch in Ho Chi Minh

Address

 

SALES OFFICE - Floor 12, Gemadept Tower, No.6 Le Thanh Ton, 1 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3827 5755

Fax

 

(84-8) 3827 5754

Email

 

zshcmc@zamilsteel.com.vn

Note:  Nguyen Minh Phuong - Local Director

 

 

DIRECTORS

 

1. NAME

 

Mr. ADIB IBRAHIM ABDULAH AL ISSA

Position

 

General Director

Date of Birth

 

26 Apr 1960

ID Number/Passport

 

2519027

ID Issue Date

 

14 Feb 2010

ID Issue Place

 

Ramallah City, Palestine

Resident

 

King Abdulah Street and 29 Al-Khor, Saudi Arabia

Current resident

 

P1, 7 Floor G3 House, Ciputra Zones, Tay Ho District, Ha Noi City, Vietnam

Nationality

 

Palestinian

Note: Mr. George Elias Kobrosssy (not Mr. George E Bobrossy) now is not general Director of the subject. Mr. Adib Ibrahim Abdulah Al Issa replaced Mr. George for General Director at the end of 2010, early 2011.

2. NAME

 

Mr. HAROLD KANNANGARA

Position

 

Financial Director

Nationality

 

Sri Lanka

Years of experience

 

From Jan 2007 to now

 

3. NAME

 

Mr. TRAN NGOC SON

Position

 

Chief Accountant

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject specializes in:

- Manufacture and trading main frames
- Manufacture and trading secondary framing (Z and C sections)
- Manufacture and trading roof and wall panels (single skin and insulated sandwich panels)
- Manufacture structural sub systems (fascias, partitions, etc.)
- Manufacture and trading floor systems (mezzanines, catwalks, platforms, etc.) and
- Other building accessories (sliding doors, roll up doors, windows, louvers, etc.)

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Materials and equipments, stationery.

·         Market

 

Japan, Korea, Thailand, Taiwan, China, Arab ...

·         Mode of payment

 

L/C (mainly), T/T

 

EXPORT:

·         Types of products

 

Pre-steel frame

·         Market

 

Asian, Japan, China, Mongolia, Australia and South East Asia countries

·         Mode of payment

 

L/C (mainly), T/T

 

 

BANKERS

 

1. ANZ BANK HA NOI BRANCH

Address

 

No. 14 Le Thai To Str., Hoan Kiem District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3825 8190

Fax

 

(84-4) 3825 8188

Foreign Currency Account

 

3001965

VND Account

 

3004853

SWIFT Code

 

ANZBVNVX

 

 

SHAREHOLDERS

 

1. NAME

 

UNIVERSAL BUILDING SYSTEMS COMPANY LIMITED

Business Registration

 

63271

Date of Registration

 

11 Oct 1995

Place of Registration

 

Chanel Islands

Address

 

P.O Box 61 Seaton Place, St. Helier, Jersey JE 49 PD Chanel Islands, Saudi Arabia

Value of shares

 

USD 12,180,000

Percentage

 

92.27%

 

2. NAME

 

MITSUI COMPANY LIMITED

Address

 

2-1, Ohtemachi 1-chome Chiyoda-ku - Tokyo 100-0004,  Japan

Tel

 

(81-3) 32851111

Fax

 

(81-3) 32859819

Website

 

www.mitsui.co.jp

Value of shares

 

USD 1,020,000

Percentage

 

7.73%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

31/12/2009

Number of weeks

52

52

52

ASSETS

A – CURRENT ASSETS

1,038,732,787,148

1,060,323,956,040

834,639,917,111

I. Cash and cash equivalents

69,635,835,328

61,133,529,452

216,244,918,274

1. Cash

24,635,837,444

19,967,523,604

78,655,622,507

2. Cash equivalents

44,999,997,884

41,166,005,848

137,589,295,767

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

293,566,952,616

390,384,011,832

174,780,450,537

1. Receivable from customers

312,844,141,392

375,061,908,796

161,022,071,749

2. Prepayments to suppliers

14,644,979,092

8,582,064,920

9,720,541,446

3. Inter-company receivable

0

4,210,438,936

4,786,533,213

4. Receivable according to the progress of construction

0

0

3,384,085,243

5. Other receivable

3,568,232,132

2,529,599,180

0

6. Provisions for bad debts

-37,490,400,000

0

-4,132,781,114

IV. Inventories

604,836,163,960

544,695,544,324

393,691,222,001

1. Inventories

609,254,178,492

548,613,427,064

393,691,222,001

2. Provisions for devaluation of inventories

-4,418,014,532

-3,917,882,740

0

V. Other Current Assets

70,693,835,244

64,110,870,432

49,923,326,299

1. Short-term prepaid expenses

3,682,890,272

3,883,729,412

5,475,521,436

2. VAT to be deducted

36,283,896,444

38,636,785,308

13,289,078,110

3. Taxes and other accounts receivable from the State

23,657,671,252

12,703,731,708

5,054,679,399

4. Other current assets

7,069,377,276

8,886,624,004

26,104,047,354

B. LONG-TERM ASSETS

398,253,833,412

375,393,900,348

373,725,633,974

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

384,571,503,652

369,745,670,672

368,597,916,764

1. Tangible assets

343,722,234,576

330,838,290,288

334,998,693,722

- Historical costs

662,748,251,336

588,951,120,048

549,450,714,043

- Accumulated depreciation

-319,026,016,760

-258,112,829,760

-214,452,020,321

2. Financial leasehold assets

0

1,137,661,744

1,226,554,406

- Historical costs

0

1,551,231,284

1,470,031,717

- Accumulated depreciation

0

-413,569,540

-243,477,311

3. Intangible assets

35,513,406,240

32,590,756,448

31,821,413,470

- Initial costs

54,880,467,836

48,296,667,920

44,806,822,214

- Accumulated amortization

-19,367,061,596

-15,705,911,472

-12,985,408,744

4. Construction-in-progress

5,335,862,836

5,178,962,192

551,255,166

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

13,682,329,760

5,648,229,676

5,127,717,210

1. Long-term prepaid expenses

6,499,752,304

1,529,686,668

5,127,717,210

2. Deferred income tax assets

7,182,577,456

4,118,543,008

0

3. Other long-term assets

0

0

 

VI. Goodwill

0

 

 

1. Goodwill

0

 

 

TOTAL ASSETS

1,436,986,620,560

1,435,717,856,388

1,208,365,551,085

 

LIABILITIES

A- LIABILITIES

1,013,247,354,756

978,666,396,844

792,905,473,206

I. Current liabilities

892,590,750,756

792,730,453,980

543,070,158,862

1. Short-term debts and loans

144,113,410,020

157,314,242,352

37,735,969,117

2. Payable to suppliers

517,767,334,288

140,864,681,920

124,310,515,791

3. Advances from customers

76,406,872,332

65,580,126,156

87,669,127,084

4. Taxes and other obligations to the State Budget

15,622,937,004

13,172,374,436

8,510,546,583

5. Payable to employees

15,880,995,924

13,083,886,268

11,901,682,639

6. Accrued expenses

104,927,902,412

77,025,504,620

8,731,292,647

7. Inter-company payable

0

307,293,527,420

234,759,617,631

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

17,871,298,776

18,396,110,808

29,451,407,370

10. Provisions for short-term accounts payable

0

0

0

II. Long-Term Liabilities

120,656,604,000

185,935,942,864

249,835,314,344

1. Long-term accounts payable to suppliers

0

0

0

2. Long-term inter-company payable

0

0

0

3. Other long-term payable

0

0

333,594,954

4. Long-term debts and loans

120,656,604,000

168,229,752,000

234,423,385,350

5. Deferred income tax payable

0

0

0

6. Provisions for unemployment allowances

0

17,706,190,864

15,078,334,040

7. Provisions for long-term accounts payable

0

0

0

B- OWNER’S EQUITY

423,739,265,804

457,051,459,544

415,460,077,879

I. OWNER’S EQUITY

423,739,265,804

457,051,459,544

415,460,077,879

1. Capital

274,929,600,000

249,902,400,000

236,821,200,000

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

0

0

0

6. Foreign exchange differences

0

0

0

7. Business promotion fund

0

0

0

8. Financial reserved fund

0

0

0

9. Other funds

0

0

0

10. Retained earnings

148,809,665,804

207,149,059,544

178,638,877,879

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

1,436,986,620,560

1,435,717,856,388

1,208,365,551,085

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

FY2009

1. Total Sales

1,524,442,726,064

1,719,068,007,680

1,033,925,746,315

2. Deduction item

0

0

0

3. Net revenue

1,524,442,726,064

1,719,068,007,680

1,033,925,746,315

4. Costs of goods sold

1,177,259,148,652

1,293,712,748,652

736,664,474,931

5. Gross profit

347,183,577,412

425,355,259,028

297,261,271,384

6. Financial income

8,813,347,372

11,393,372,260

26,657,437,499

7. Financial expenses

36,854,146,256

22,857,966,704

27,059,549,132

- In which: Loan interest expenses

0

0

0

8. Selling expenses

210,375,463,424

226,708,030,588

165,645,610,977

9. Administrative overheads

190,784,917,388

166,163,627,112

124,858,559,518

10. Net operating profit

-82,017,602,284

21,019,006,884

6,354,989,256

11. Other income

499,080,536

4,727,585,448

1,129,009,189

12. Other expenses

217,985,848

3,829,375,640

19,753,041

13. Other profit /(loss)

281,094,688

898,209,808

1,109,256,148

14. Total accounting profit before tax

-81,736,507,596

21,917,216,692

7,464,245,404

15. Current corporate income tax

0

7,392,983,864

924,930,314

16. Deferred corporate income tax

-2,651,571,024

4,118,543,008

0

17. Interest from subsidiaries/related companies

0

0

0

18. Profit after tax

-79,084,936,572

18,642,775,836

6,539,315,090

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

FY2009

Average Industry

Current liquidity ratio

1.16

1.34

1.54

1.18

Quick liquidity ratio

0.49

0.65

0.81

0.54

Inventory circle

1.95

2.76

1.87

3.48

Average receive period

70.29

82.89

61.70

62.32

Utilizing asset performance

1.06

1.20

0.86

1.02

Liability by total assets

70.51

68.17

65.62

64.29

Liability by owner's equity

239.12

214.13

190.85

198.96

Ebit / Total assets (ROA)

-5.69

1.53

0.62

6.25

Ebit / Owner's equity (ROE)

-19.29

4.80

1.80

16.74

Ebit / Total revenue (NPM)

-5.36

1.27

0.72

5.52

Gross profit / Total revenue (GPM)

22.77

24.74

28.75

13.15

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Good

Liquidity

 

Medium

Payment status

 

Above Average

Financial Situation

 

Above Average

Development trend

 

Uptrend

Litigation data

 

No

Bankruptcy

 

No

Payment Methods

 

TT, L/C, DA, DP

Sale Methods

 

To contracts

Public opinion

 

Good

 

 

CREDIT INQUIRY: 125,000 USD Against D/A in terms

Acceptable.

 

 

INTERPRETATION ON THE SCORES

 

The subject company was original invested by ZAMIL INDUSTRIAL INVESTMENT COMPANY (90%) and MITSUI & CO., LTD (10%) and then, the investor was changed with UNIVERSAL BUILDING SYSTEMS COMPANY LIMITED (92.27%) and MITSUI COMPANY LIMITED (7.73%). In early 2011, Mr. Adib Ibrahim Abdulah Al - Issa was official appointed to replace Mr. George Elias Kobrosssy for the position of General Director. Mr. Adib Ibrahim Abdulah Al Issa is responsible for managing two factories in Vietnam and 10 other sale offices in Asia Pacific.

ZSV is ranked as a large -sized business with a labor force of over 1,200 persons and a chartered capital of USD 13,200,000 and investment capital of USD 44,000,000. Currently, the subject has two factories. One located in Noi Bai Industry Zone, Quang Tien Commune, Ha Noi with initial output of 600 MT of steel building per month and rapidly reached 4000 MT of pre-engineered steel building per month; the second factory located in Dong Nai Province came into official operation from 2008 with the production capacity of 4,500 MT of pre-engineered steel buildings per month; boosting the total production of ZSV to 100,000 metric tons annually.

ZSV has representative office in almost countries in ASEAN such as Singapore, Thailand, the Philippines, Cambodia, Myanmar, Malaysia; this creates a larger selling network for the subject to reach foreign countries. Up to now, the subject has received many different awards. In the year of 2010, it gets Golden Dragon Award for Most prominent foreign invested enterprise, it also receive the ISO 14001 and OHSAS 18001 by Bureau Veritas.

Financially, in 2011, the business result of the subject was worse than that in 2010 and 2009. Both total sales and profit after tax were lower. In particularly, total sales and profit after tax decreased 11.32% and 524.21%. This year, high costs of goods sold as well as financial expenses and administrative overheads made profit after tax are lower. 

Due to worse operating result, financial indicators of the subject in 2011 were downtrend. Current assets reduced (mainly the decrease in account receivables) while current liabilities increased, which caused current liquidity ratio declined in comparison with that in the previous year. Inventories in 2011 rose and took more than half part in current assets; therefore, quick liquidity ratio was low. Debt ratio and liability by owner’s equity were higher than the average industry. In debt structure, the subject mainly used external borrowing and the capital took advantages from its suppliers. Profitability indicators were worse due to the negative amount in profit in 2011.

The analysis above is the previous year’s business result. Through interview Mr. Hung – Accountant, he revealed that in the first 6 months of 2012, the subject gained 3 million USD in total sales and 1 million USD in profit after tax. Two Quarters of 2012 went by, the subject recorded positive result in its operation. In general, subject is a big company in the industry and its future is considered solidity and stable. It has capacity to meet financial commitments and no caution needed for the business transactions.

 

 

------------ 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.54.92

UK Pound

1

Rs.85.47

Euro

1

Rs.67.15

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.