MIRA INFORM REPORT

 

 

Report Date :

11.09.2012

 

IDENTIFICATION DETAILS

 

Name :

EUROPE NUTRITION COMPANY LIMITED 

 

 

Registered Office :

No. 4 Street, Lot B2-28, Tan Dong Hiep B Industrial Park, Tan Hiep Dong Ward, Di An Town, Binh Duong Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishment :

2003

 

 

Com. Reg. No.:

0303096565 

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacture of prepared animal, fish, poultry feeds

 

 

No. of Employees :

100 employees

 

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

 


 

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

Registered English Name

 

EUROPE NUTRITION COMPANY LIMITED

Registered Vietnamese Name

 

CONG TY TNHH DINH DUONG AU CHAU

Registered Trade name

 

EUROPE NUTRITION CO., LTD

Type of Business

 

Limited liability company

Year Established

 

2003

Business Registration No.

 

0303096565

Date of lastest adjustment (9th)

 

14 Jun 2011

Place of Registration

 

Business Registration Office - Planning and Investment Department of Binh Duong Province

Chartered capital

 

VND 18,000,000,000

Tax code

 

0303096565

Total Employees

 

100

 

Historical Identification & Legal form

List

Changed Items

1

Subject has got former Chartered Capital: VND 9,000,000,000

Changed to: VND 18,000,000,000

2

Subject has got former Registered Vietnamese Name: CONG TY TNHH THUC AN CHAN NUOI AU CHAU V.N

Changed to: CONG TY TNHH DINH DUONG AU CHAU

3

Subject has got former Business Registration No. 4602001383 issued on 12 Jan 2005

Changed to: No. 0303096565

 

 

 

company ADDRESSES

 

Head Office

Address

 

No. 4 Street, Lot B2-28, Tan Dong Hiep B Industrial Park, Tan Hiep Dong Ward, Di An Town, Binh Duong Province, Vietnam

Telephone

 

(84-650) 373 7468

Fax

 

(84-650) 373 7469

Email

 

eurofeedvn@vnn.vn

 

DIRECTORS

 

1. NAME

 

Mr. LE BINH HUNG

Position

 

Chairman cum Director

Date of Birth

 

30 Sep 1963

ID Number/Passport

 

023896671

ID Issue Date

 

04 May 2001

ID Issue Place

 

Police station of Hochiminh City

Resident

 

D25 Le Duc Tho Street, Ward 6, Go Vap District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Qualification

 

Management

 

2. NAME

 

Mr. NGUYEN DINH PHUONG

Position

 

Deputy Director

ID Number/Passport

 

024832697

Resident

 

No. 111 Nguyen Kiem Street, Ward 3, Go Vap District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Qualification

 

Management

 

3. NAME

 

Ms. LE THI MONG HUYEN

Position

 

Chief Accountant

Resident

 

Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Email

 

monghuyenauchau@gmail.com

Qualification

 

Bachelor

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject registers and operates in the following business activities:

-          Manufacture of prepared animal, fish, poultry feeds

-          Wholesale of agricultural machinery, equipment and supplies

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

-          Freshwater aquaculture

-          Support activities for animal production

-          Wholesale of other machinery and equipment, parts

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Market

 

Canada, India, HonggKong, China

 

EXPORT:

·         Market

 

N/A

 

 

 

BANKERS

 

VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE BINH DUONG INDUSTRIAL PARK

Address

 

No.20 Doc Lap Street, Di An Town, Binh Duong Province, Vietnam

Telephone

 

(84-650) 3790 309

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. LE BINH HUNG

Position

 

Director

Date of Birth

 

30 Sep 1963

ID Number/Passport

 

023896671

Issued on

 

04 May 2001

Issued Place

 

Police station of Hochiminh City

Resident

 

D25 Le Duc Tho Street, Ward 6, Go Vap District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 17,280,000,000

Percentage

 

96%

 

2. NAME

 

Mr. NGUYEN DINH PHUONG

Position

 

Deputy Director

ID Number/Passport

 

024832697

Resident

 

No. 111 Nguyen Kiem Street, Ward 3, Go Vap District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 720,000,000

Percentage

 

4%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: Million VND

Balance sheet date

31/12/2011

31/12/2010

31/12/2009

Number of weeks

52

52

52

ASSETS

A – CURRENT ASSETS

32,513

29,618

22,666

I. Cash and cash equivalents

2,143

1,913

922

1. Cash

1,146

551

922

2. Cash equivalents

997

1,362

0

II. Short-term investments

0

0

0

1. Short-term investments

0

0

0

2. Provisions for devaluation of short-term investments

0

0

0

III. Accounts receivable

9,394

13,339

7,210

1. Receivable from customers

4,715

5,173

3,852

2. Prepayments to suppliers

58

135

3,309

3. Inter-company receivable

4,000

8,000

49

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

621

31

0

6. Provisions for bad debts

0

0

0

IV. Inventories

20,119

13,775

14,205

1. Inventories

20,119

13,775

14,205

2. Provisions for devaluation of inventories

0

0

0

V. Other Current Assets

857

591

329

1. Short-term prepaid expenses

757

0

0

2. VAT to be deducted

100

591

329

3. Taxes and other accounts receivable from the State

0

0

0

4. Other current assets

0

0

0

B. LONG-TERM ASSETS

6,571

6,962

5,024

I. Long term accounts receivable

0

0

0

1. Long term account receivable from customers

0

0

0

2. Working capital in affiliates

0

0

0

3. Long-term inter-company receivable

0

0

0

4. Other long-term receivable

0

0

0

5. Provisions for bad debts from customers

0

0

0

II. Fixed assets

6,571

6,962

5,024

1. Tangible assets

5,500

5,814

3,800

- Historical costs

9,048

8,758

6,077

- Accumulated depreciation

-3,548

-2,944

-2,277

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

1,071

1,148

1,224

- Initial costs

1,565

1,565

1,565

- Accumulated amortization

-494

-417

-341

4. Construction-in-progress

0

0

0

III. Investment property

0

0

0

Historical costs

0

0

0

Accumulated depreciation

0

0

0

IV. Long-term investments

0

0

0

1. Investments in affiliates

0

0

0

2. Investments in business concerns and joint ventures

0

0

0

3. Other long-term investments

0

0

0

4. Provisions for devaluation of long-term investments

0

0

0

V. Other long-term assets

0

0

0

1. Long-term prepaid expenses

0

0

0

2. Deferred income tax assets

0

0

0

3. Other long-term assets

0

0

0

VI. Goodwill

0

0

0

1. Goodwill

0

0

0

TOTAL ASSETS

39,084

36,580

27,690

 

LIABILITIES

A- LIABILITIES

8,474

10,522

12,917

I. Current liabilities

8,122

9,842

12,602

1. Short-term debts and loans

5,024

2,771

3,445

2. Payable to suppliers

2,756

6,713

8,831

3. Advances from customers

342

358

326

4. Taxes and other obligations to the State Budget

0

0

0

5. Payable to employees

0

0

0

6. Accrued expenses

0

0

0

7. Inter-company payable

0

0

0

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

0

0

0

10. Provisions for short-term accounts payable

0

0

0

II. Long-Term Liabilities

352

680

315

1. Long-term accounts payable to suppliers

0

0

0

2. Long-term inter-company payable

0

0

0

3. Other long-term payable

0

0

0

4. Long-term debts and loans

352

680

315

5. Deferred income tax payable

0

0

0

6. Provisions for unemployment allowances

0

0

0

7. Provisions for long-term accounts payable

0

0

0

B- OWNER’S EQUITY

30,610

26,058

14,773

I. OWNER’S EQUITY

29,222

25,921

14,541

1. Capital

17,250

17,741

8,753

2. Share premiums

0

0

0

3. Other sources of capital

0

0

0

4. Treasury stocks

0

0

0

5. Differences on asset revaluation

0

0

0

6. Foreign exchange differences

0

0

0

7. Business promotion fund

0

0

0

8. Financial reserved fund

1,202

835

1,138

9. Other funds

0

0

0

10. Retained earnings

10,770

7,345

4,650

11. Construction investment fund

0

0

0

II. Other sources and funds

1,388

137

232

1. Bonus and welfare funds (Elder form)

1,388

137

232

2. Sources of expenditure

0

0

0

3. Fund to form fixed assets

0

0

0

MINORITY’S INTEREST

0

0

0

TOTAL LIABILITIES AND OWNER’S EQUITY

39,084

36,580

27,690

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

FY2009

1. Total Sales

90,895

80,412

61,469

2. Deduction item

156

225

439

3. Net sale

90,739

80,187

61,030

4. Costs of goods sold

72,645

65,777

49,629

5. Gross profit

18,094

14,410

11,401

6. Financial income

16

19

33

7. Financial expenses

698

939

1,284

- In which: Loan interest expenses

698

939

1,284

8. Selling expenses

5,805

5,409

0

9. Administrative overheads

2,323

1,839

6,008

10. Net operating profit

9,284

6,242

4,142

11. Other income

1,828

2,036

632

12. Other expenses

342

933

124

13. Other profit /(loss)

1,486

1,103

508

14. Total accounting profit before tax

10,770

7,345

4,650

15. Current corporate income tax

0

0

0

16. Deferred corporate income tax

0

0

0

17. Interest from subsidiaries/related companies

0

 

 

18. Profit after tax

10,770

7,345

4,650

 


 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

FY2009

Average Industry

Current liquidity ratio

4.00

3.01

1.80

1.21

Quick liquidity ratio

1.53

1.61

0.67

0.41

Inventory circle

3.61

4.70

3.49

4.09

Average receive period

37.79

60.72

43.12

35.22

Utilizing asset performance

2.32

2.19

2.20

1.99

Liability by total assets

21.68

28.76

46.65

64.75

Liability by owner's equity

27.68

40.38

87.44

199.02

Ebit / Total assets (ROA)

29.34

22.65

21.43

12.59

Ebit / Owner's equity (ROE)

37.46

31.79

40.17

36.14

Ebit / Total sale (NPM)

12.62

10.30

9.65

6.48

Gross profit / Total sale (GPM)

19.91

17.92

18.55

12.11

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

 

 

 

CASH FLOW STATEMENT

(Indirect method)

Items

FY2011

FY2010

I. Cash flows from operating activities

1. Profit before tax

10,770

7,345

2. Adjustments

 

 

- Depreciation and amortization

681

743

- Provisions

0

0

- Unrealized foreign exchange difference

0

0

- Gain/loss from investing activities

0

 

- Interest expense

698

939

3. Operating profit before movements in working capital

12,149

9,027

- (Increase)/Decrease in receivables

3,945

-6,129

- (Increase)/Decrease in inventories

-6,344

430

- Increase/(Decrease) in accounts payable

-2,722

-2,086

- (Increase)/Decrease in prepaid expenses

-757

-262

- Interest paid

-698

-939

- Corporate income tax paid

0

0

- Other cash inflows

0

 

- Other cash outflows

-6,487

-5,048

Net cash from (used in) operating activities

-914

-5,007

II. Cash flows from investing activities

1. Acquisition of fixed assets and other long - term assets

-290

-2,681

2. Proceeds from fixed assets and long - term assets disposal

0

0

3. Cash outflow for lending, buying debt instruments of other companies

0

0

4. Cash recovered from lending, selling debt instruments of other companies

0

0

5. Investment in other entities

0

0

6. Cash recovered from investments in other entities

0

0

7. Interest income, dividend and profit paid

0

 

Net cash from (used in) investing activities

-290

-2,681

III. Cash flows from financing activities

1. Proceeds from issuing stocks, receiving capital from owners

-491

8,988

2. Capital withdrawal, buying back issued stocks

0

 

3. Proceeds from borrowings

1,925

-309

4. Repayment of borrowings

0

 

5. Repayment of obligations under finance leased

0

 

6. Dividends paid

0

 

Net cash from (used in) financing activities

1,434

8,679

Net increase/(decrease) in cash and cash equivalents

230

991

Cash and cash equivalents at beginning of year

1,913

922

Effect from changing foreign exchange rate

0

 

Cash and cash equivalents at end of year

2,143

1,913

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Medium/High

Payment status

 

Normal

Financial Situation

 

Above Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Direct payment or through its corresponding bank

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Normal

 

 

 

INTERPRETATION ON THE SCORES

 

Subject - EUROPE NUTRITION COMPANY LIMITED - is a limited liability company which was established in 2003. Currently subject is activating under the business registration No. 0303096565. Its chartered capital is VND 18,000,000,000.

The subject specializes in manufacturing and trading animal feed, poultry feed. Besides, subject trades equipment, machine for animal husbandry sector. The materials and machine for production of the subject are imported from Canada and India, HongKong and china. Its products are distributed for domestic market.

Currently, subject located at No. 4 Street, Lot B2-28, Tan Dong Hiep B Park - Di An District - Binh Duong Province.

Competition capability of subject is average. Its trademark is normal. Its market share is small and more difficulties because there are many big and strong competitors from international and domestic companies in this industry such as CJ VINA AGRI, CARGILL, PROCONCO, GREENFEED, CP, ANOVAFEED and ANCO…

In 2011, most of big feed companies in Vietnam got high profitability. Business results of subject was quite good growth. Profitability of subject on 2011 was more than VND 10.7 billion increasing 46,63% in comparison with 2010. Liquidity and operational ratios are fair.

In general, subject operates in small-medium scale. Its management capability is average with a labor force of about 100 persons. In our opinion, it has capacity to meet financial commitments and no caution needed for any small-normal business transaction.

 

 

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.55.34

UK Pound

1

Rs.88.50

Euro

1

Rs.70.74

 

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.