MIRA INFORM REPORT

 

 

Report Date :

25.09.2012

 

IDENTIFICATION DETAILS

 

Name :

NGANHUONG CHEMICAL CO.,LTD

 

 

Registered Office :

No. 133K, Tran Hung Dao Street, An Phu Ward, Ninh Kieu District, Can Tho City

 

 

Country :

Viet Nam

 

 

Financials (as on) :

31.12.2009

 

 

Date of Incorporation :

2000

 

 

Com. Reg. No.:

1800385992

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Manufacturing veterinary drug, manufacturing animal feeds, processing seafood; trades in chemical for food preservation and waste water treatment, etc

 

 

No. of Employees :

21

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

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

 


 

VIET NAM - 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

 

Registered English Name

 

NGANHUONG CHEMICAL CO.,LTD

Registered Vietnamese Name

 

CONG TY TNHH XUAT NHAP KHAU NGAN HUONG

Type of Business

 

Limited liability company

Year Established

 

2000

Business Registration No.

 

1800385992

Date of Registration

 

17 Aug 2010

Place of Registration

 

Can Tho Department of Planning and Investment

Chartered capital

 

VND 2,500,000,000

Status

 

Unlisted

Tax code

 

1800385992

Total Employees

 

21

Size

 

Small

 

 

 

ADDRESSES

 

Head Office

Address

 

No. 133K, Tran Hung Dao Street, An Phu Ward, Ninh Kieu District, Can Tho City, Vietnam

Telephone

 

(84-710) 3830252/ 3834666/ 3833789

Fax

 

(84-710) 3833574

Email

 

nhct@hcm.vnn.vn, nganhuong@nganhuong.com.vn

Website

 

http://nganhuong.com.vn

Note:  The exact address of the subject is above (No. 133K not No. 133, An Phu Ward not Tan Phu Ward)

 

Shop

Address

 

No. 135F, Tran Hung Dao Street, Hung Loi Ward, Ninh Kieu District, Can Tho City, Vietnam

.

Warehouse

Address

 

No. 57A, Road 3/2, Hung Loi Ward, Ninh Kieu District, Can Tho City, Vietnam

 

 

DIRECTORS

 

1. NAME

 

Mr. NGUYEN VAN TRUONG

Position

 

Director

Date of Birth

 

01 Sep 1965

ID Number/Passport

 

361075039

ID Issue Date

 

04 Apr 2001

ID Issue Place

 

Can Tho Police Department

Resident

 

No. 133K Tran Hung Dao, An Phu Ward, Ninh Kieu District, Can Tho City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Ms. TRAN THI THANH BINH

Position

 

Deputy Director

ID Number/Passport

 

361687517

Resident

 

No. 133K, Tran Hung Dao, An Phu Ward, Ninh Kieu District, Can Tho City, Vietnam

Nationality

 

Vietnamese

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject trades in materials for manufacturing veterinary drug, manufacturing animal feeds, processing seafood; trades in chemical for food preservation and waste water treatment, etc

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Material, chemical

·         Market

 

China (main), India, Japan, Thailand, Indonesia, France, Korea, Germany, Brazil

 

EXPORT: Currently, the subject does not export

 

 

BANKERS

 

1. MARITIME COMMERCIAL JOINT STOCK CAN THO BRANCH

Address

 

No. 40 Phan Dinh Phung Str, Ninh Kieu District, Can Tho City, Vietnam

Telephone

 

(84-710) 3824 792

Fax

 

(84-710) 3820 279

 

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. NGUYEN VAN TRUONG

Position

 

Director

Date of Birth

 

01 Sep 1965

ID Number/Passport

 

361075039

Issued on

 

04 Apr 2001

Issued Place

 

Can Tho Police Department

Resident

 

No. 133K Tran Hung Dao, An Phu Ward, Ninh Kieu District, Can Tho City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 2,200,000,000

Percentage

 

88%

 

2. NAME

 

Ms. TRAN THI THANH BINH

Position

 

Deputy Director

ID Number/Passport

 

361687517

Resident

 

No. 133K, Tran Hung Dao, An Phu Ward, Ninh Kieu District, Can Tho City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 300,000,000

Percentage

 

12%

 

 

 

FINANCIAL HIGHLIGHT

 

BALANCE SHEET

Unit: Million VND

Balance sheet date

31/12/2009

Number of weeks

52

ASSETS

A. Current Asset

24,921

Receivables

5,529

Inventory

19,392

Cash and other current assets

0

B. Long term Asset

417

1. Long term account receivable

0

2. Fixed assets

417

Tangible fixed assets

417

+ Original cost

757

+ Accumulated depreciation value

-340

Financial leasehold assets

0

Intangible fixed assets

0

Construction in progress and other long term asset

0

TOTAL ASSETS

25,338

 

LIABILITIES

Payable loans

21,010

Owner’s Equity

4,328

TOTAL LIABILITY AND EQUITY

25,338

 

PROFIT & LOSS STATEMENT

 

1. Total Sales

62,340

2. Deduction item

0

3. Net revenue

62,340

4. Costs of goods sold

61,122

5. Gross profit

1,218

6. Financial income

0

7. Financial expenses

0

8. Selling expenses and Administrative overheads

949

9. Net operating profit

269

10. Other income

0

11. Other expenses

0

12. Other profit /(loss)

0

13. Total accounting profit before tax

269

14. Current corporate income tax

67

15. Deferred corporate income tax

0

16. Interest from subsidiaries/related companies

0

17. Profit after tax

202

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

N/A

Payment status

 

N/A

Financial Situation

 

Below Average

Development trend

 

N/A

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

D/P, L/C

Sale Methods

 

Retailer and Wholesaler

 

 

 

INTERPRETATION ON THE SCORES

 

The subject was established in 2000 as a limited liability company. Currently, It runs under the business registration No. 1800385992 with chartered capital of VND 2.5 billion.

The subject trades in materials for manufacturing veterinary drug, manufacturing animal feeds, processing seafood; trades in chemical for food preservation and waste water treatment, etc. It's head office is located at No. 133K Tran Hung Dao Street - An Phu Ward - Ninh Kieu District - Can Tho City. It has also one shop (near the head office) and one warehouse at No. 57A - Road 3/2 - Hung Loi Ward - Ninh Kieu District - Can Tho City. There are 21 staffs working for the subject now.

The subject's products consist of L- LYSINE MONOHYDROCHLORIDE, CALCIUM HYPOCHLORITE, EMAL - 10N, MECELLOSE, CALCIUM HYPOCHLORITE, CITRIC ACID, AMPICILINE TRIHYDRATE, SODIUM BENZOATE, etc. They are imported from many different countries such China (main), India, Japan, Thailand, Indonesia, France, Korea, Germany, Brazil, etc.

Financially, in 2009, the subject's business result was acceptable. However, its capital structure was risk because its total assets were financed mainly by liabilities.

We have tried best to collect the latest financial data of the subject but unreachable, so we do not have comment about it.

In general, subject is operating normally on small scale. Its management capacity of subject seems normal. Business activities of subject now are quite busy. At present, it is able to meet small 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.53.29

UK Pound

1

Rs.86.43

Euro

1

Rs.68.95

 

 

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%)

 

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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.