MIRA INFORM REPORT

 

 

Report Date :           

16.03.2012

 

IDENTIFICATION DETAILS

 

Correct Name :

CONG TY TNHH SAM HWAN VINA 

 

 

Registered Office :

Road 2, Nhon Trach 5 Industrial Zone , Nhon Trach District, Dong Nai Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

08.11.2007

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

The subject company is specified in manufacturing and exporting steel wire belt and belt plastic PET

 

 

No. of Employees :

70

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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

 

Vietnamese Name

 

CONG TY TNHH SAM HWAN VINA

Trade name

 

SAM HWAN VINA CO., LTD

Short name

 

SAM HWAN VINA

Type of Business

 

Limited liability company

Year Established

 

2007

Investment Certificate No

 

472023000300

Date Of Issuance

 

08 Nov 2007

Place of Issuance

 

Dong Nai Industrial Zone of Authority

Registered Investment Capital

 

USD 9,949,000

Chartered capital

 

USD 9,949,000

Investment Duration

 

46 years

Status

 

Unlisted

Tax code

 

3600942745

Total Employees

 

70

Size

 

Small

Notes:  The correct name of the subject like the bold name above.

 

 

 

company ADDRESSES

 

Head Office

Address

 

Road 2, Nhon Trach 5 Industrial Zone , Nhon Trach District, Dong Nai Province, Vietnam

Telephone

 

(84-61) 3569400

Fax

 

(84-61) 3569401

Email

 

sales@samhwanvina.com

Website

 

www.samhwanvina.com

 

 

 

 

 

DIRECTORS

 

1. NAME

 

Mr. KIM IL HWAN

Position

 

General Director

Nationality

 

Korean

 

2. NAME

 

Mr. CHOI JONG HEE

Position

 

Former General Director

Date of Birth

 

22 Nov 1952

ID Number/Passport

 

YP0725416

ID Issue Date

 

25 May 2000

ID Issue Place

 

Korea

Current resident

 

927-16 Janghang-ri, Gpdae-myon, Dangjin-gun, Chungnarn, Korea, South

Nationality

 

Japanese

 

3. NAME

 

Ms. DAO HONG CHIEN

Position

 

Chief Accountant

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject company is specified in manufacturing and exporting steel wire belt and belt plastic PET.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Materials

·         Market

 

Korea

·         Ratio

 

Little

·         Mode of payment

 

T/T, L/C

 

EXPORT:

·         Types of products

 

Steel wire and PET plastic wire

·         Market

 

Korea, EU and some countries in Asia

·         Mode of payment

 

T/T, L/C

 

 

 

BANKERS

 

1. JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM NHON TRACH BRANCH

Address

 

Road 25B, Central Service Area, Nhon Trach III Industrial Zone, Nhon Trach District, Dong Nai Province, Vietnam

Telephone

 

(84-61) 3560881

Fax

 

(84-61) 3560880

 

 

SHAREHOLDERS

 

1. NAME

 

SAM HWAN STEEL CO., LTD.

Address

 

4BA-417 Sihwa Industrial Complex, 720-6, Seonggok-dong, Danwon-gu Ansan-si, Gyeonggi-do , Korea, South

Value of shares

 

USD 8,059,000

Percentage

 

81%

 

2. NAME

 

POSCO VIETNAM COMPANY LIMITED

Business Registration

 

492043000004

Date of Registration

 

15 Nov 2006

Place of Registration

 

Authorities of Ba Ria - Vung Tau Industrial Zones

Registered Capital

 

USD 451,000,000

Tax code

 

3500771158

Address

 

Lot 1, Phu My 2 Industrial Zone, Tan Thanh District, Ba Ria-Vung Tau Province, Vietnam

Tel

 

(84-64) 3923039, 3923003

Fax

 

(84-64) 3923000

Value of shares

 

USD 1,890,000

Percentage

 

19%

 


FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2010

31/12/2009

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

102,681,715,983

76,369,428,163

I. Cash and cash equivalents

4,238,243,285

6,562,329,831

1. Cash

4,238,243,285

6,562,329,831

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

57,245,107,268

42,884,535,969

1. Receivable from customers

51,737,504,172

40,564,257,632

2. Prepayments to suppliers

2,065,657,043

40,511,285

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

4,629,103,768

3,466,924,767

6. Provisions for bad debts

-1,187,157,715

-1,187,157,715

IV. Inventories

37,403,714,539

26,106,221,908

1. Inventories

37,403,714,539

26,106,221,908

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

3,794,650,891

816,340,455

1. Short-term prepaid expenses

30,649,996

26,201,100

2. VAT to be deducted

3,705,000,895

781,139,355

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

59,000,000

9,000,000

B. LONG-TERM ASSETS

178,865,093,824

147,047,012,163

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

154,502,179,271

121,884,745,438

1. Tangible assets

154,502,179,271

121,870,828,106

- Historical costs

0

0

- Accumulated depreciation

0

0

2. Financial leasehold assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

3. Intangible assets

6,958,664

13,917,332

- 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

24,355,955,889

25,162,266,725

1. Long-term prepaid expenses

24,355,955,889

25,162,266,725

2. Deferred income tax assets

0

0

3. Other long-term assets

0

0

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

281,546,809,807

223,416,440,326

 

LIABILITIES

A- LIABILITIES

153,849,827,607

94,073,523,978

I. Current liabilities

115,985,827,607

58,191,523,978

1. Short-term debts and loans

68,473,257,600

21,529,200,000

2. Payable to suppliers

37,033,771,960

33,518,759,461

3. Advances from customers

9,662,360,748

2,218,981,970

4. Taxes and other obligations to the State Budget

279,782,964

291,862,982

5. Payable to employees

497,748,186

303,359,018

6. Accrued expenses

0

288,750,475

7. Inter-company payable

0

0

8. Payable according to the progress of construction contracts

0

0

9. Other payable

38,906,149

40,610,072

10. Provisions for short-term accounts payable

0

0

II. Long-Term Liabilities

37,864,000,000

35,882,000,000

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

37,864,000,000

35,882,000,000

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

127,696,982,200

129,342,916,348

I. OWNER’S EQUITY

127,696,982,200

129,342,916,348

1. Capital

148,924,300,432

148,924,300,432

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

-688,748,736

-400,469,716

7. Business promotion fund

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

-20,538,569,496

-19,180,914,368

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

281,546,809,807

223,416,440,326

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2010

FY2009

1. Total Sales

205,525,901,700

87,827,170,606

2. Deduction item

403,444,715

35,890,400

3. Net revenue

205,122,456,985

87,791,280,206

4. Costs of goods sold

186,398,138,874

83,663,613,341

5. Gross profit

18,724,318,111

4,127,666,865

6. Financial income

4,793,713,365

3,886,361,725

7. Financial expenses

10,611,593,371

6,251,150,039

- In which: Loan interest expenses

2,474,603,734

1,920,528,466

8. Selling expenses

7,136,517,305

5,208,770,363

9. Administrative overheads

7,583,890,367

4,609,802,645

10. Net operating profit

-1,813,969,567

-8,055,694,457

11. Other income

493,648,002

82,627,269

12. Other expenses

37,333,563

1,396,963

13. Other profit /(loss)

456,314,439

81,230,306

14. Total accounting profit before tax

-1,357,655,128

-7,974,464,152

15. Current corporate income tax

0

0

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

-1,357,655,128

-7,974,464,152

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2010

FY2009

Average Industry

Current liquidity ratio

0.89

1.31

1.61

Quick liquidity ratio

0.56

0.86

0.72

Inventory circle

5.87

3.20

6.41

Average receive period

101.86

178.30

40.98

Utilizing asset performance

0.73

0.39

1.30

Liability by total assets

54.64

42.11

58.19

Liability by owner's equity

120.48

72.73

206.32

Ebit / Total assets (ROA)

0.40

-2.71

8.26

Ebit / Owner's equity (ROE)

0.87

-4.68

21.07

Ebit / Total revenue (NPM)

0.54

-6.89

5.03

Gross profit / Total revenue (GPM)

9.11

4.70

12.08

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

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Low/Medium

Payment status

 

Normal

Financial Situation

 

Average

Development trend

 

Stable

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Through its banks

Sale Methods

 

To contracts

Public opinion

 

Normal

 

 

 

 

INTERPRETATION ON THE SCORES

 

SAM HWAN VINA CO., LTD was set up in 2007 with the Investment Certificate No. 472023000300 issued on 8th November 2007 by Dong Nai Industrial Zone of Authority. The subject company registered its charter capital and registered investment capital of USD 9,949,000 which is contributed by its parent company in Korea and one firm in Vietnam with the majority of capital belonging to the parent company.

The registered address as well as the factory is located at Road 2, Nhon Trach 5 Industrial Zone, Nhon Trach District, Dong Nai Province, Vietnam. The used area of the company is about 50,000 m2. The subject can manufacture and outsource steel wire belts and PET plastic belts with capacity of 54,000 tons and 3,600 tons one year respectively.

In 2010, total sales of the subject grew 134% compared to that in 2009. Although the firm had the improvement in total sales, high costs and expenses arising in 2010 made profit after tax be minus amount. However, if compared to the result in 2009, minus amount of profit in 2010 was better than that in the previous year.

Both liquidity ratios in 2010 were lower than 1 and also lower than those in 2009. In 2010, current assets increased 34.45% and current liabilities grew 99.08%. The growth in current liabilities outweighed that in current assets, one factor contributing to low current liquidity ratio. Average receive period was 101 days that was 77 days faster than that in 2009 but this level was higher than the average industry index. Debt ratio and liability by owner’s equity both increased in comparison with those in 2009 due to the increase in total liabilities used in 2010, especially current liabilities in which short-term loans and debts increased much. Profitability indicators were kept at low level due to small profit generated at the end of 2010.

In conclusion, the subject company is small firm in the market. With 4-year operating and the support from its parent company, the firm can have ability to meet small transactions. Caution needs to be care for bigger ones.

 

 

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.50.22

UK Pound

1

Rs.78.64

Euro

1

Rs.65.54

 

 

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.