|
Report Date : |
10.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
PRIMARY STEEL COMPANY LIMITED |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
2004 |
|
|
|
|
Com. Reg. No.: |
0303568546 |
|
|
|
|
Legal Form : |
Limited liability company |
|
|
|
|
Line of Business : |
Trading many kind of steels. |
|
|
|
|
No. of Employees : |
3 |
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 : |
Slow but correct |
|
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 30, 2011
|
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
|
||
|
Registered English Name |
|
PRIMARY STEEL COMPANY LIMITED |
|
Registered Vietnamese Name |
|
CONG TY TNHH THEP PRIMA |
|
Registered Short name |
|
PRIMA STEEL CO., LTD |
|
Type of Business |
|
Limited liability company |
|
Year Established |
|
2004 |
|
Business Registration No. |
|
0303568546 |
|
Date of Registration |
|
10 May 2011 |
|
Place of Registration |
|
Business Registrtaion Office
of Hochiminh City |
|
Current registered capital |
|
VND 5,000,000,000 |
|
Tax code |
|
0303568546 |
|
Total Employees |
|
3 |
|
Size |
|
Small |
ADDRESSES
|
||
|
Head
Office |
||
|
Address |
|
No. 84 Cao Thang Street, Ward
17, Phu Nhuan District, Ho Chi Minh City, Vietnam |
|
Telephone |
|
(84-8) 2225 0991 |
|
Fax |
|
(84-8) 2225 0993 |
|
Note: The given address
(87) is not correct. |
||
|
|
||
DIRECTORS
|
||
|
|
||
|
1. NAME |
|
Mr. LE QUOC DUONG |
|
Position |
|
Director - Legal
representative |
|
Date of Birth |
|
12 May 1968 |
|
ID Number/Passport |
|
021876330
|
|
ID Issue Date |
|
09 Sep
2003 |
|
ID Issue Place |
|
Police
Station of Hochiminh City |
|
Resident |
|
No. 84
Cao Thang Street, Ward 17, Phu Nhuan District, Ho Chi Minh City, Vietnam |
|
Nationality |
|
Vietnamese |
|
Qualification |
|
Management |
|
|
||
|
2. NAME |
|
Ms. NGUYEN THI THU HIEN |
|
Position |
|
Accountant |
|
Resident |
|
Ho Chi
Minh City, Vietnam |
|
Nationality |
|
Vietnamese |
|
Qualification |
|
Accounting |
|
|
||
BUSINESS NATURE AND ACTIVITIES
|
|
|
|
Subject specializes in trading many kind of steels. |
|
|
IMPORT & EXPORT ACTIVITIES
|
||
|
|
||
|
IMPORT:
|
||
|
·
Types of products |
|
Steel |
|
·
Market |
|
EU. |
|
|
||
|
EXPORT:
|
||
|
Note: N/A |
||
|
|
||
BANKERS
|
||
|
|
||
|
VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK SAI GON BRANCH
|
||
|
Address |
|
No.28-30 Huynh Thuc Khang Street, Ben Nghe Ward, 1
District, Ho Chi Minh City, Vietnam |
|
Telephone |
|
(84-8) 3914 3152 – 3914 3669 |
|
Fax |
|
(84-8) 3914 3150 |
|
|
||
SHAREHOLDERS
|
||
|
|
||
|
1. NAME |
|
Mr. LE QUOC DUONG |
|
Position |
|
Director - Legal
representative |
|
Date of Birth |
|
12 May 1968 |
|
ID Number/Passport |
|
021876330 |
|
Issued on |
|
09 Sep 2003 |
|
Issued Place |
|
Police Station of Hochiminh
City |
|
Resident |
|
No. 84 Cao Thang Street, Ward
17, Phu Nhuan District, Ho Chi Minh City, Vietnam |
|
Nationality |
|
Vietnamese |
|
Value of shares |
|
VND 2,300,000,000 |
|
Percentage |
|
46% |
|
|
||
|
2. NAME |
|
Ms. TRAN THI VAN ANH |
|
ID Number/Passport |
|
022546491 |
|
Resident |
|
No. 84 Cao Thang Street, Ward
17, Phu Nhuan District, Ho Chi Minh City, Vietnam |
|
Nationality |
|
Vietnamese |
|
Value of shares |
|
VND 2,700,000,000 |
|
Percentage |
|
54% |
|
|
||
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 |
4,686,125,262
|
5,246,182,615
|
|
I.
Cash and cash equivalents |
179,901,887
|
1,092,100,910
|
|
1. Cash |
179,901,887 |
1,092,100,910 |
|
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 |
355,842,213
|
1,367,305,645
|
|
1. Receivable from customers |
250,165,232 |
1,190,404,912 |
|
2. Prepayments to suppliers |
105,676,981 |
176,900,733 |
|
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 |
3,679,254,743
|
2,564,936,957
|
|
1. Inventories |
3,679,254,743 |
2,564,936,957 |
|
2. Provisions for devaluation of inventories |
0 |
0 |
|
V.
Other Current Assets |
471,126,419
|
221,839,103
|
|
1. Short-term prepaid expenses |
9,910,618 |
7,240,932 |
|
2. VAT to be deducted |
207,219,047 |
156,120,519 |
|
3. Taxes and other accounts receivable from the State |
58,477,652 |
58,477,652 |
|
4. Other current assets |
195,519,102 |
0 |
|
B.
LONG-TERM ASSETS |
265,351,081
|
370,087,776
|
|
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 |
262,426,706
|
364,239,026
|
|
1. Tangible assets |
262,426,706 |
364,239,026 |
|
- Historical costs |
576,052,409 |
576,052,409 |
|
- Accumulated depreciation |
-313,625,703 |
-211,813,383 |
|
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 |
2,924,375
|
5,848,750
|
|
1. Long-term prepaid expenses |
2,924,375 |
5,848,750 |
|
2. Deferred income tax assets |
0 |
0 |
|
3. Other long-term assets |
0 |
0 |
|
VI.
Goodwill |
0 |
0 |
|
1. Goodwill |
0 |
0 |
|
TOTAL
ASSETS |
4,951,476,343
|
5,616,270,391
|
|
|
||
LIABILITIES
|
||
|
A-
LIABILITIES |
564,455,031
|
1,073,008,138
|
|
I.
Current liabilities |
564,455,031
|
1,073,008,138
|
|
1. Short-term debts and loans |
300,000,000 |
803,197,000 |
|
2. Payable to suppliers |
258,043,514 |
69,803,914 |
|
3. Advances from customers |
6,517 |
200,007,224 |
|
4. Taxes and other obligations to the State Budget |
0 |
0 |
|
5. Payable to employees |
6,405,000 |
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 |
|
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 |
4,387,021,312
|
4,543,262,253
|
|
I.
OWNER’S EQUITY |
4,387,021,312
|
4,543,262,253
|
|
1. Capital |
5,000,000,000 |
5,000,000,000 |
|
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 |
-612,978,688 |
-456,737,747 |
|
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 |
4,951,476,343
|
5,616,270,391
|
|
|
||
|
PROFIT & LOSS STATEMENT |
||
|
|
||
|
Description |
FY2011 |
FY2010 |
|
1. Total Sales |
7,854,657,259
|
12,234,984,436
|
|
2. Deduction item |
0 |
0 |
|
3. Net revenue |
7,854,657,259
|
12,234,984,436
|
|
4. Costs of goods sold |
7,392,967,054 |
11,289,150,289 |
|
5. Gross profit |
461,690,205
|
945,834,147
|
|
6. Financial income |
18,773,944 |
16,234,856 |
|
7. Financial expenses |
380,385,496 |
504,604,511 |
|
- In which: Loan interest expenses |
178,891,764 |
143,009,283 |
|
8. Selling expenses |
14,330,023 |
85,708,461 |
|
9. Administrative overheads |
214,213,378 |
357,878,540 |
|
10. Net operating profit |
-128,464,748
|
13,877,491
|
|
11. Other income |
0 |
0 |
|
12. Other expenses |
27,776,193 |
0 |
|
13. Other profit /(loss) |
-27,776,193
|
0 |
|
14. Total accounting profit before tax |
-156,240,941
|
13,877,491
|
|
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 |
-156,240,941
|
13,877,491
|
|
|
|||
|
FINANCIAL
RATIOS AND AVERAGE INDUSTRY RATIOS |
|||
|
|
|||
|
Description |
FY2011
|
FY2010
|
Average
Industry |
|
Current liquidity ratio |
8.30 |
4.89 |
1.31 |
|
Quick liquidity ratio |
1.78 |
2.50 |
0.55 |
|
Inventory circle |
2.37 |
4.40 |
5.31 |
|
Average receive period |
16.54 |
40.79 |
47.91 |
|
Utilizing asset performance |
1.59 |
2.18 |
2.39 |
|
Liability by total assets |
11.40 |
19.11 |
70.52 |
|
Liability by owner's equity |
12.87 |
23.62 |
286.62 |
|
Ebit / Total assets (ROA) |
0.46 |
2.79 |
8.29 |
|
Ebit / Owner's equity (ROE) |
0.52 |
3.45 |
30.38 |
|
Ebit / Total revenue (NPM) |
0.29 |
1.28 |
4.05 |
|
Gross profit / Total revenue (GPM) |
5.88 |
7.73 |
7.87 |
|
Note: The Average Industry was calculated by VietnamCredit
based on our own statistical data |
|||
|
|
|||
PAYMENT HISTORY & PERFORMANCE EXPERIENCES
|
||
|
|
||
|
Trade Morality |
|
Normal |
|
Liquidity |
|
High |
|
Payment status |
|
Normal |
|
Financial Situation |
|
Below Average |
|
Development trend |
|
Developing |
|
Litigation data |
|
No Record |
|
Bankruptcy |
|
No Record |
|
Payment Methods |
|
Through its corresponding bank. Foreign remittance by L/C,
T/T. |
|
Sale Methods |
|
Retailer |
|
Public opinion |
|
Normal |
INTERPRETATION ON THE SCORES
|
|
|
|
PRIMA STEEL CO., LTD is a liability limited company established in
2004. Subject located at No. 84 Cao Thang Street, Ward 17, Phu
Nhuan District, Ho Chi Minh City. This address is also private house of
subject’s owners. Subject is now
operating with registered capital VND 5 billion. The subject is specialized in trading steel.
According to Ms. Nguyen Thi Thu Hien – accountant of subject, subject mainly
imports from EU and provides to domestic market. In overview, the subject’s premises and facilities
are small. It has only 3 employees: one director, one accountant and one
sales Its marketshare is still humble. According to financial statement of subject, its
business situation in 2011 was not good compared with 2010. Revenue 2011 had
gone down and profit 2011 was negative. One of the reasons is high cost of
goods sold and financial expense was so high. However, liquidity ratio
indicated that payment of subject is stable. In our opinion, at present, subject has capacity
to meet small transactions only. |
|
|
|
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.53.33 |
|
|
1 |
Rs.86.10 |
|
Euro |
1 |
Rs.69.06 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.