MIRA INFORM REPORT

 

 

Report Date :

25.06.2012

 

IDENTIFICATION DETAILS

 

Name :

LNT TRADING COMPANY LIMITED 

 

 

Registered Office :

No. 708 Su Van hanh Street Ward 12, 10 District, Ho Chi Minh City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2010

 

 

Year of Establishment :

2003

 

 

Com. Reg. No.:

0303143102

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading of plastic materials - paper goods appliances, refrigeration goods, electronics, agricultural supplies, fertilizers, chemicals, handicrafts and fine arts.

 

 

No. of Employees :

12

 

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

Registered English Name

 

LNT TRADING COMPANY LIMITED

Registered Vietnamese Name

 

CONG TY TNHH THUONG MAI LNT

Registered Short name

 

LNT TRADING CO., LTD

Type of Business

 

Limited liability company

Year Established

 

2003

Business Registration No.

 

0303143102

Date of Registration

 

25 Nov 2010

Place of Registration

 

Business Registration Office of Hochiminh City

Chartered capital

 

VND 1,000,000,000

Tax code

 

0303143102

Total Employees

 

12

Size

 

Small

 

Historical Identification & Legal form

List

Changed Items

Date of changes

1

Subject has got former Business Registration No. 4102019017 Issued 26 Nov 2003 Changed to: 0303143102

25 Nov 2010

 

 

company ADDRESSES

 

Head Office

Address

 

No. 708 Su Van hanh Street Ward 12, 10 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3863 4938/ 3862 1154

Fax

 

(84-8) 3863 4754

Email

 

lntlnt@vnn.vn   

 

 

DIRECTORS

 

1. NAME

 

Ms. NGUYEN THI NGOC THU

Position

 

Vice - Director

Date of Birth

 

16 Nov 1964

ID Number/Passport

 

024145765

Resident

 

No. 708 Su Van Hanh Street Ward 12, 10 District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Ms. DUONG THANH LY

Position

 

CEO

Date of Birth

 

01 Jun 1962

ID Number/Passport

 

023626011

ID Issue Date

 

21 Feb 1998

ID Issue Place

 

Police station of Hochiminh City

Resident

 

No. 708 Su Van Hanh Street, Ward 12, 10 District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

 

3. NAME

 

Ms. NGUYEN THI NGOC DIEU

Position

 

Chief Accountant

Resident

 

Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Email

 

nvkd01@lntinter.com 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject registers in the following line of business:

Ø       Trading of plastic materials - paper goods appliances, refrigeration goods, electronics, agricultural supplies, fertilizers, chemicals, handicrafts and fine arts.

Ø       Consignment agent.

Ø       Brokerage business.

Ø       Purchase of office equipment.

Ø       Trading of telecommunications equipment.

Ø       Trading of ​​spare parts and accessories of automobiles and other motor vehicles.

 


IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Market

 

India, China and Singapore

 

EXPORT:

Note: Currently, the subject does not export

 

 

 

BANKERS

 

1. ACB ASSETS MANAGEMENT COMPANY LIMITED

Address

 

No. 444 Nguyen Thi Minh Khai Str, Ward 5, 5 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3832 8988

Fax

 

(84-8) 3832 8987

 

2. HSBC BANK (VIETNAM) LTD

Address

 

Floor 06th, The Metropolitan Building 235 Dong Khoi Street, 1 District, Ho Chi Minh City, Vietnam

Telephone

 

(84 8) 3829 2288

Fax

 

(84 8) 3299 0018

 

SHAREHOLDERS

 

1. NAME

 

Ms. NGUYEN THI NGOC THU

Position

 

Vice - Director

Date of Birth

 

16 Nov 1964

ID Number/Passport

 

024145765

Resident

 

No. 708 Su Van Hanh Street Ward 12, 10 District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 900,000,000

Percentage

 

90%

 

2. NAME

 

Mr. NGUYEN BA TAI

Date of Birth

 

20 Sep 1976

ID Number/Passport

 

024140199

Resident

 

No. 22A Bui Huu Nghia Street- Ward 5, 5 District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 100,000,000

Percentage

 

10%

 

 

FINANCIAL DATA

 

 

BALANCE SHEET

Unit: Million VND

Balance sheet date

31/12/2010

31/12/2009

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

7,977

3,204

I. Cash and cash equivalents

1,963

534

1. Cash

1,963

534

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

1,128

945

1. Receivable from customers

1,050

867

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

78

78

6. Provisions for bad debts

0

0

IV. Inventories

4,537

1,671

1. Inventories

4,537

1,671

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

349

54

1. Short-term prepaid expenses

174

24

2. VAT to be deducted

175

0

3. Taxes and other accounts receivable from the State

0

30

4. Other current assets

0

0

B. LONG-TERM ASSETS

356

429

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

356

429

1. Tangible assets

356

429

- Historical costs

577

577

- Accumulated depreciation

-221

-148

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

8,333

3,633

 

LIABILITIES

A- LIABILITIES

7,404

2,782

I. Current liabilities

7,404

2,782

1. Short-term debts and loans

6,330

2,755

2. Payable to suppliers

916

0

3. Advances from customers

0

0

4. Taxes and other obligations to the State Budget

158

26

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

1

10. Provisions for short-term accounts payable

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

B- OWNER’S EQUITY

929

851

I. OWNER’S EQUITY

929

851

1. Capital

1,000

1,000

2. Share premiums

0

0

3. Other sources of capital

0

0

4. Treasury stocks

0

0

5. Differences on asset revaluation

-154

-154

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

83

5

11. Construction investment fund

0

0

II. Other sources and funds

0

0

1. Bonus and welfare funds

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

8,333

3,633

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2010

FY2009

1. Total Sales

18,347

7,796

2. Deduction item

0

0

3. Net sale

18,347

7,796

4. Costs of goods sold

14,623

6,551

5. Gross profit

3,724

1,245

6. Financial income

3

21

7. Financial expenses

790

458

- In which: Loan interest expenses

789

458

8. Selling expenses

2,359

229

9. Administrative overheads

469

641

10. Net operating profit

109

-62

11. Other income

0

111

12. Other expenses

4

 

13. Other profit /(loss)

-4

111

14. Total accounting profit before tax

105

49

15. Current corporate income tax

27

9

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

78

40

 

 

 

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2010

FY2009

Average Industry

Current liquidity ratio

1.08

1.15

1.21

Quick liquidity ratio

0.46

0.55

0.72

Inventory circle

4.71

3.92

12.25

Average receive period

22.44

44.24

51.49

Utilizing asset performance

2.20

2.15

2.30

Liability by total assets

88.85

76.58

59.32

Liability by owner's equity

796.99

326.91

229.17

Ebit / Total assets (ROA)

10.73

13.96

8.16

Ebit / Owner's equity (ROE)

96.23

59.58

24.08

Ebit / Total sale (NPM)

4.87

6.50

6.61

Gross profit / Total sale (GPM)

20.30

15.97

16.82

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

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Low

Payment status

 

Average

Financial Situation

 

Average

Development trend

 

Stable

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

by cash or through the bank

Sale Methods

 

Retailer and Wholesaler

 

 

CREDIT INQUIRY: 2,500,000 USD

Caution!

 

INTERPRETATION ON THE SCORES

 

LNT is a limited liability company which was established in 2003.

The subject specializes in trading materials for plastic and paper industry. It is wholesaler and retailer, and market share is small. Businesses of this company are not very busy. Currently, the subject does not export.

We had a short visit at subject’s location, its head office looks fair comfortable but a little old. Director of subject is enthusiastic. Products of subject are consumed in domestic market only.

According to the financial reported, profits of the subject has not proportion with current total sales. One of reasons is the rise of inflation rate, it made costs of goods sold also increased and financial expenses was high. The subject has the unsafety capital structure, due to liability by owner's equity is very high compared with average industry. The inventory circle and quick liquidity ratio were low so its short term payments affect.

In our opinion, with over 9 years of operation, the subject has capacity to meet small transaction only.

 

 

APPENDIX 2

 

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.56.99

UK Pound

1

Rs.88.97

Euro

1

Rs.71.57

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.