MIRA INFORM REPORT

 

 

Report Date :

08.10.2012

 

IDENTIFICATION DETAILS

 

Name :

THIEN LOC PHUC COMPANY LIMITED

 

 

 

 

Registered Office :

No. 11A, Le Lam Street, Phu Thanh Ward, Tan Phu District, Ho Chi Minh City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishment :

2008

 

 

Com. Reg. No.:

0305587865

 

 

Legal Form :

One Member Liability Limited Company

 

 

Line of Business :

Wholesale of agricultural raw materials (except wood, bamboo) and live animals

 

 

No. of Employees :

5

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Viet Nam

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

VIETNAM - ECONOMIC OVERVIEW

 

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties

Source : CIA


 

SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

English Name

 

THIEN LOC PHUC COMPANY LIMITED

Vietnamese Name

 

CONG TY TNHH MOT THANH VIEN THIEN LOC PHUC

Type of Business

 

One member liability limited company

Year Established

 

2008

Business Registration No.

 

0305587865

Date of Registration (01st adjustment)

 

05 Mar 2011

Place of Registration

 

Business Registration Office - Planning and Investment Department of Ho Chi Minh City

Chartered capital

 

VND 1,800,000,000

Tax code

 

0305587865

Total Employees

 

5

Size

 

Small

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Chartered capital: VND 500,000,000

Changed to: VND 1,800,000,000

05 Mar 2011

2

Subject has got former Business Registration No. 4104003869 was issued on 21st Mar 2008

Changed to: No. 0305587865

05 Mar 2011

 

ADDRESSES

 

Head Office

Address

 

No. 11A, Le Lam Street, Phu Thanh Ward, Tan Phu District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 54340120

Fax

 

(84-8) 54340120

Email

 

phucphph2003@yahoo.com

Note: The given telephone number is used for fax. The subject uses the hand phone number of Mr. Pham Huu Phuc is (84) 983614480 as its contact.

 

 

DIRECTORS

 

1. NAME

 

Mr. PHAM HUU PHUC

Position

 

Director

Date of Birth

 

01 Apr 1970

ID Number/Passport

 

024202495

ID Issue Date

 

03 Nov 2003

ID Issue Place

 

Police Station of Ho Chi Minh City

Resident

 

No. 326/31 Go Dau Street, Tan Quy Ward, Tan Phu District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84) 983614480

Email

 

phucphph2003@yahoo.com

 

 

BUSINESS NATURE AND ACTIVITIES

 

Wholesale of specialized others n.e.c
Manufacture of luggage, handbags, saddlery and harness
Wholesale of agricultural raw materials (except wood, bamboo) and live animals
Wholesale of other household products
Packaging activities

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Chemicals

·         Market

 

India, China, Taiwan, Singapore, Spain, Italy.

 

EXPORT:

Note: Currently, the subject does not export

 

 

BANKERS

 

1. HOUSING BANK OF MEKONG DELTA SAI GON BRANCH

Address

 

No.32 Ham Nghi Street, District 1, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 39144 669

Fax

 

(84-8) 39144 668

 

2. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK

Address

 

303 Nguyen Son, Phu Thanh Ward, Tan Phu District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3978 6034

Fax

 

(84-8) 3978 6034

 

 

SHAREHOLDERS

 

NAME

 

Mr. PHAM HUU PHUC

Position

 

Director

Date of Birth

 

01 Apr 1970

ID Number/Passport

 

024202495

Issued on

 

03 Nov 2003

Issued Place

 

Police Station of Ho Chi Minh City

Resident

 

No. 326/31 Go Dau Street, Tan Quy Ward, Tan Phu District, Ho Chi Minh City, Vietnam

Email

 

phucphph2003@yahoo.com

Mobile phone

 

(84) 983614480

Nationality

 

Vietnamese

Value of shares

 

VND 1,800,000,000

Percentage

 

100%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

Audit status

Unaudited

Unaudited

ASSETS

A – CURRENT ASSETS

6,529,240,473

4,488,992,567

I. Cash and cash equivalents

84,011,617

747,744,183

1. Cash

84,011,617

747,744,183

2. Cash equivalents

II. Short-term investments

1. Short-term investments

2. Provisions for devaluation of short-term investments

III. Accounts receivable

2,046,579,708

1,134,846,005

1. Receivable from customers

1,866,768,973

947,831,255

2. Prepayments to suppliers

179,810,735

187,014,750

3. Inter-company receivable

4. Receivable according to the progress of construction

5. Other receivable

6. Provisions for bad debts

IV. Inventories

4,102,817,197

2,416,211,764

1. Inventories

4,102,817,197

2,416,211,764

2. Provisions for devaluation of inventories

V. Other Current Assets

295,831,951

190,190,615

1. Short-term prepaid expenses

3,823,831

14,446,037

2. VAT to be deducted

292,008,120

175,744,578

3. Taxes and other accounts receivable from the State

4. Other current assets

B. LONG-TERM ASSETS

I. Long term accounts receivable

1. Long term account receivable from customers

2. Working capital in affiliates

3. Long-term inter-company receivable

4. Other long-term receivable

5. Provisions for bad debts from customers

II. Fixed assets

1. Tangible assets

- Historical costs

- Accumulated depreciation

2. Financial leasehold assets

- Historical costs

- Accumulated depreciation

3. Intangible assets

- Initial costs

- Accumulated amortization

4. Construction-in-progress

III. Investment property

Historical costs

Accumulated depreciation

IV. Long-term investments

1. Investments in affiliates

2. Investments in business concerns and joint ventures

3. Other long-term investments

4. Provisions for devaluation of long-term investments

V. Other long-term assets

1. Long-term prepaid expenses

2. Deferred income tax assets

3. Other long-term assets

VI. Goodwill

1. Goodwill

TOTAL ASSETS

6,529,240,473

4,488,992,567

 

LIABILITIES

A- LIABILITIES

4,431,881,005

3,853,292,234

I. Current liabilities

4,431,881,005

3,853,292,234

1. Short-term debts and loans

845,922,360

1,200,000,000

2. Payable to suppliers

1,767,743,969

1,534,385,975

3. Advances from customers

40,517,000

468,672,815

4. Taxes and other obligations to the State Budget

34,927,696

45,233,444

5. Payable to employees

6,100,000

5,000,000

6. Accrued expenses

7. Inter-company payable

8. Payable according to the progress of construction contracts

9. Other payable

1,736,669,980

600,000,000

10. Provisions for short-term accounts payable

II. Long-Term Liabilities

1. Long-term accounts payable to suppliers

2. Long-term inter-company payable

3. Other long-term payable

4. Long-term debts and loans

5. Deferred income tax payable

6. Provisions for unemployment allowances

7. Provisions for long-term accounts payable

B- OWNER’S EQUITY

2,097,359,468

635,700,333

I. OWNER’S EQUITY

1,964,659,135

635,700,333

1. Capital

1,800,000,000

500,000,000

2. Share premiums

3. Other sources of capital

4. Treasury stocks

5. Differences on asset revaluation

6. Foreign exchange differences

7. Business promotion fund

8. Financial reserved fund

9. Other funds

10. Retained earnings

164,659,135

135,700,333

11. Construction investment fund

II. Other sources and funds

132,700,333

1. Bonus and welfare funds

132,700,333

2. Sources of expenditure

3. Fund to form fixed assets

MINORITY’S INTEREST

TOTAL LIABILITIES AND OWNER’S EQUITY

6,529,240,473

4,488,992,567

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

7,803,171,680

6,900,155,791

2. Deduction item

3. Net revenue

7,803,171,680

6,900,155,791

4. Costs of goods sold

6,925,301,671

6,346,042,790

5. Gross profit

877,870,009

554,113,001

6. Financial income

3,997,161

9,302,414

7. Financial expenses

176,934,299

116,077,499

- In which: Loan interest expenses

176,934,299

116,077,499

8. Selling expenses

331,554,799

68,029,805

9. Administrative overheads

173,791,241

115,958,201

10. Net operating profit

199,586,831

263,349,910

11. Other income

12. Other expenses

13. Other profit /(loss)

14. Total accounting profit before tax

199,586,831

263,349,910

15. Current corporate income tax

49,896,708

45,233,444

16. Deferred corporate income tax

-14,969,012

17. Interest from subsidiaries/related companies

18. Profit after tax

164,659,135

218,116,466

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

1.47

1.17

1.92

Quick liquidity ratio

0.55

0.54

1.02

Inventory circle

2.12

2.63

5.97

Average receive period

95.73

60.03

66.39

Utilizing asset performance

1.20

1.54

2.29

Liability by total assets

67.88

85.84

65.45

Liability by owner's equity

211.31

606.15

290.21

Ebit / Total assets (ROA)

5.77

8.45

10.65

Ebit / Owner's equity (ROE)

17.95

59.69

31.58

Ebit / Total revenue (NPM)

4.83

5.50

4.98

Gross profit / Total revenue (GPM)

11.25

8.03

14.19

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

 

Normal

Financial Situation

 

Below Average

Development trend

 

Negative

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Through its corresponding bank (D/A)

Sale Methods

 

Retailer

Public opinion

 

Normal

 

 

 

INTERPRETATION ON THE SCORES

 

THIEN LOC PHUC COMPANY LIMITED was set up in 2008. The subject specializes in trading in chemicals and dye. At the present, it has a chartered capital of VND 1.8 billion.

Its head office is located at No. 11A, Le Lam Street, Phu Thanh Ward, Tan Phu District, Ho Chi Minh City. The subject imports chemicals from India, China, Taiwan, Singapore, Spain and Italy. Its products are provided in domestic.

The management capability of the subject is normal. As the financial statements in 2011, the financial ratios were not really good. The liquidity ratios were not good. Inventory was high and it accounted for 63 percent of current asset. The operating ratios were not optimistic. Inventory circle was low and asset performance was not effective. The average receive period was in long term, this proved that, the subject has an ineffective management of receivables. The financial leverages were used acceptably, these figures approximated industry average. The net revenue and profit after tax reached at VND 7.803 billion and VND 0.165 billion, respectively.

In conclusion, the subject is a one member limited liability company operating gradually. It is regarded as a small company in its field.

According to us, the subject has capability to 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.51.62

UK Pound

1

Rs.83.57

Euro

1

Rs.67.17

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.