MIRA INFORM REPORT

 

 

Report Date :

23.05.2012

 

IDENTIFICATION DETAILS

 

Name :

VIET THANH AGRO-CHEMISTRY JOINT STOCK COMPANY

 

 

Registered Office :

Room 504 - No 18 Phap Van - Tu Hiep New Urban Area, Hoang Mai District, Ha Noi City

 

 

Country :

Viet Nam

 

 

Financials (as on) :

31.12.2010

 

 

Year of Establishment :

2006

 

 

Com. Reg. No.:

0102008985

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Import, trade of chemical (excluding the one restricted by the State), plant protection medicines.

 

 

No. of Employees :

20

 

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 :

Small Company

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

Registered English Name

 

VIET THANH AGRO-CHEMISTRY JOINT STOCK COMPANY

Registered Vietnamese Name

 

CONG TY CO PHAN NONG DUOC VIET THANH

Registered Short name

 

VITHAC., JSC

Type of Business

 

Joint stock company

Year Established

 

2006

Business Registration No.

 

0102008985

Date of Registration

 

15 Oct 2010

Place of Registration

 

Planning and investment department of Hanoi City

Chartered capital

 

VND 2,000,000,000

Status

 

Unlisted

Tax code

 

0102008985

Total Employees

 

20

Size

 

Small

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Business Registration No: 0103013370

Changed to: 0102008985

15 Oct 2010

2

Subject has got former Chartered capital: VND 1,155,000,000

Changed to: VND 2,000,000,000

15 Oct 2010

3

Subject has got former Shareholders: Mr. PHAM DUC KIEN holds 115,500,000 VND, Mr. TRUONG CONG LOC holds 808,500,000 VND Mr. DINH DAC TANG holds 115,500,000 VND Mr. DUONG VAN QUANG holds 115,500,000 VND

Changed to: Mr. TRUONG CONG LOC holds 1,555,600,000 VND Mr. DUONG VAN QUANG holds 222,200,000 VND and Mr. PHAM DUC KIEN holds 222,200,000 VND

15 Oct 2010

 

 

ADDRESSES

 

Head Office

Address

 

Room 504 - No 18 Phap Van - Tu Hiep New Urban Area, Hoang Mai District, Ha Noi City, Vietnam

Telephone

 

(84-4) 22181586/ ++84 982 464 468

Fax

 

(84-4) 36448999

Email

 

vietthanhjsco@yahoo.com.vn

 

 

DIRECTORS

 

1. NAME

 

Mr. TRUONG CONG LOC

Position

 

General Director

Date of Birth

 

01 Jul 1969

ID Number/Passport

 

082018987

ID Issue Date

 

06 Jul 2004

ID Issue Place

 

Police station of Lang Son Province

Resident

 

No. 15/5 Nguyen Du Street Dong Kinh Ward, Lang Son City, Lang Son Province, Vietnam

Current resident

 

Room 504, No. 18 New Urban Phap Van, Tu Hiep, Hoang Mai District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Mr. PHAM DUC KIEN

Position

 

Vice General Director

ID Number/Passport

 

164109569

ID Issue Place

 

Police Station of Ninh Binh Province

Resident

 

Hamlet 4 Dong Cuong, Khanh Cuong Commune, Ninh Binh Province, Vietnam

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject registers in the following lines:
- Import, trade of chemical (excluding the one restricted by the State), plant protection medicines.
- Trading in fertilizers, feeds, etc.
- Trading in equipments, machines used for agriculture, industry.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Market

 

China, India, Malaysia

·         Ratio

 

Large

·         Mode of payment

 

T/T

 

EXPORT:

Note: Currently, the subject does not export.

 

 

BANKERS

 

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM

Address

 

No. 198 Tran Quang Khai Street, Hoan Kiem District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3934 3137 / 3814 8919

Fax

 

(84-4) 3826 9067 / 3825 1322

 

2. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

Address

 

No.2 Lang Ha Street, Ba Dinh District, Ha Noi City, Vietnam

Telephone

 

(84-4) 37722771

Fax

 

(84-4) 37722379

 

3. HANOI BUILDING COMMERCIAL JOINT STOCK BANK

Address

 

B7 Building, Giang Vo Ward, Ba Dinh District, Ha Noi City, Vietnam

Telephone

 

(84-4) 38460135

Fax

 

(84-4) 3823569

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. PHAM DUC KIEN

Position

 

Vice General Director

ID Number/Passport

 

164109569

Issued Place

 

Police Station of Ninh Binh Province

Resident

 

Hamlet 4 Dong Cuong, Khanh Cuong Commune,  Ninh Binh Province, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

2,222

Value of shares

 

VND 222,200,000

Percentage

 

11.11%

 

2. NAME

 

Mr. TRUONG CONG LOC

Position

 

General Director

Date of Birth

 

01 Jul 1969

ID Number/Passport

 

082018987

Issued on

 

06 Jul 2004

Issued Place

 

Police station of Lang Son Province

Resident

 

No. 15/5 Nguyen Du Street Dong Kinh Ward, Lang Son City, Lang Son Province, Vietnam

Current Resident

 

Room 504, No. 18 New Urban Phap Van, Tu Hiep, Hoang Mai District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

15,556

Value of shares

 

VND 1,555,600,000

Percentage

 

77.78%

 

3. NAME

 

Mr. DUONG VAN QUANG

ID Number/Passport

 

111354814

Issued Place

 

Police Station of Hanoi City

Resident

 

Group 9 Phung Thuong Commune, Phuc Tho District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

2,222

Value of shares

 

VND 222,200,000

Percentage

 

11.11%

 

 


 

 

 

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

5,971,000,000

4,424,000,000

I. Cash and cash equivalents

27,000,000

218,000,000

1. Cash

27,000,000

218,000,000

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

2,361,000,000

2,078,000,000

1. Receivable from customers

2,226,000,000

1,852,000,000

2. Prepayments to suppliers

135,000,000

226,000,000

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

3,196,000,000

1,921,000,000

1. Inventories

3,196,000,000

1,921,000,000

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

387,000,000

207,000,000

1. Short-term prepaid expenses

0

0

2. VAT to be deducted

358,000,000

197,000,000

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

29,000,000

10,000,000

B. LONG-TERM ASSETS

3,092,000,000

1,971,000,000

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

2,953,000,000

1,915,000,000

1. Tangible assets

2,173,000,000

1,280,000,000

- Historical costs

2,961,000,000

1,699,000,000

- Accumulated depreciation

-788,000,000

-419,000,000

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

780,000,000

635,000,000

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

139,000,000

56,000,000

1. Long-term prepaid expenses

0

0

2. Deferred income tax assets

0

0

3. Other long-term assets

139,000,000

56,000,000

VI. Goodwill

 

0

1. Goodwill

 

0

TOTAL ASSETS

9,063,000,000

6,395,000,000

 

LIABILITIES

A- LIABILITIES

3,686,000,000

1,961,000,000

I. Current liabilities

3,686,000,000

1,961,000,000

1. Short-term debts and loans

3,027,000,000

1,539,000,000

2. Payable to suppliers

563,000,000

316,000,000

3. Advances from customers

0

3,000,000

4. Taxes and other obligations to the State Budget

20,000,000

15,000,000

5. Payable to employees

0

0

6. Accrued expenses

76,000,000

88,000,000

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

5,377,000,000

4,434,000,000

I. OWNER’S EQUITY

5,377,000,000

4,434,000,000

1. Capital

4,575,000,000

3,257,000,000

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

802,000,000

1,177,000,000

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

TOTAL LIABILITIES AND OWNER’S EQUITY

9,063,000,000

6,395,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2010

FY2009

1. Total Sales

17,381,000,000

12,247,000,000

2. Deduction item

4,120,000,000

2,970,000,000

3. Net revenue

13,261,000,000

9,277,000,000

4. Costs of goods sold

9,935,000,000

6,749,000,000

5. Gross profit

3,326,000,000

2,528,000,000

6. Financial income

4,000,000

9,000,000

7. Financial expenses

304,000,000

181,000,000

- In which: Loan interest expenses

0

122,000,000

8. Selling expenses

0

0

9. Administrative overheads

1,553,000,000

1,216,000,000

10. Net operating profit

1,473,000,000

1,140,000,000

11. Other income

7,000,000

284,000,000

12. Other expenses

0

230,000,000

13. Other profit /(loss)

7,000,000

54,000,000

14. Total accounting profit before tax

1,480,000,000

1,194,000,000

15. Current corporate income tax

22,000,000

17,000,000

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

 

0

18. Profit after tax

1,458,000,000

1,177,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2010

FY2009

Average Industry

Current liquidity ratio

1.62

2.26

1.56

Quick liquidity ratio

0.75

1.28

0.82

Inventory circle

3.11

3.51

7.71

Average receive period

64.98

81.76

57.49

Utilizing asset performance

1.46

1.45

2.53

Liability by total assets

40.67

30.66

59.02

Liability by owner's equity

68.55

44.23

219.47

Ebit / Total assets (ROA)

16.33

20.58

13.30

Ebit / Owner's equity (ROE)

27.52

29.68

35.73

Ebit / Total revenue (NPM)

8.52

10.75

7.62

Gross profit / Total revenue (GPM)

19.14

20.64

16.22

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Medium

Payment status

 

Above Average

Financial Situation

 

Above Average

Development trend

 

Stable

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Cash and through banks

Sale Methods

 

Retailer and Wholesaler

 

 

 

INTERPRETATION ON THE SCORES

 

VIET THANH AGRO-CHEMISTRY JOINT STOCK COMPANY is a private company. It was established by Mr. Truong Cong Loc and other shareholders in the year 2006 under the business registration No. 0103013370. In 2010, this number was adjusted to the same tax code 0102008985.

The subject is specialized in trading plant protection medicines, fertilizers and chemical in agricultural. The head office is located in Hoang Mai District. All most of products are imported from China, India and Malaysia. There are about 20 people working for the subject in fair condition. Its management capacity is average. Its position in the industry is fair.

Financially, according to Ms. Hien, a staff of Administrative Department reveals that, in October 2010, the subject increased chartered capital from VND 1,155 million to VND 2 billion. Total assets of the company increased from VND 6.3 billion to 9.0 billion in 2010, in which the current assets rose about VND 1.5 billion and the long-term assets rose about VND 1 billion compared with 2009. The liabilities of the company in the year 2010 also increased strongly, from VND 1,961 million in 2009 to VND 3,686 million. All most of current liabilities, the subject have not got long-term liabilities. Although the liabilities rose strongly in the year 2010, it didn’t affect to the liquidity and the financial leverage ratios. The capital frame is safely for creditors and investors.

Turnover of the company in 2010 reached VND 17,381 million rose 41.92% and the profit after tax rose 23.87% against 2009. The growth rate of profit in the year 2010 was lower than 2009, it made the profitability ratios reduced relative but it was acceptable. The remain financial ratios in 2010 were relative good in compared with the industry average.

In conclusion, the subject is still a small company but it also has experience in the field. Its financial capacity is above average. The subject can meet small and normal financial commitments.

 

 

----------- 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.54.88

UK Pound

1

Rs.86.84

Euro

1

Rs.70.21

 

 

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.