MIRA INFORM REPORT

 

 

Report Date :

26.09.2012

 

IDENTIFICATION DETAILS

 

Name :

DIEN THANH JOINT STOCK COMPANY

 

 

 

 

Registered Office :

327 Nguyen Trong Tuyen Str, Ward 10, Phu Nhuan District, Ho Chi Minh City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2010

 

 

Year of Establishment :

2004

 

 

Com. Reg. No.:

0303549261

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

This subject specialized in trading chemicals, fertilizers, plant seeds used for agriculture.

 

 

No. of Employees :

7

 

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)

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

English Name

 

DIEN THANH JOINT STOCK COMPANY

Vietnamese Name

 

CONG TY CO PHAN DIEN THANH

Type of Business

 

Joint stock company

Year Established

 

2004

Business Registration No.

 

0303549261

Date of Registration

 

21 Mar 2011

Date of the latest (04th) Adjustment

 

22 Feb 2012

Place of Registration

 

Business Registration Office – Planning and Investment Department of Ho chi minh City

Chartered capital

 

VND 6,800,000,000

Tax code

 

0303549261

Total Employees

 

7

Size

 

Small

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Business Registration No: 4103002869

Changed to: 0303549261

21 Mar 2011

2

Subject has got former chartered capital: VND 1,600,000,000

Changed to: VND 6,800,000,000

21 Mar 2011

3

Subject has got former Vietnamese name: Cong Ty Co Phan Bao Ve Thuc Vat Dien Thanh

Changed to: Cong Ty Co Phan Dien Thanh

N/A

 

ADDRESSES

 

Registered Office

Address

 

327 Nguyen Trong Tuyen Str, Ward 10, Phu Nhuan District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3844 1445

 

Head office

Address

 

387 Nguyen Trong Tuyen, Ward 10, Phu Nhuan District, Ho Chi Minh City - Vietnam

Telephone

 

(84-8) 3844 8489

Fax

 

(84-8) 3844 2778

Note: This is also the head office of Nong Phat Trading and Service Co.,Ltd (business code: 0301419926)

 

DIRECTORS

 

1. NAME

 

Mr. PHAM VAN NAM

Position

 

Director – Legal representer

Year  of Birth

 

1964

ID Number/Passport

 

310468693

ID Issue Date

 

09 Jan 2004

ID Issue Place

 

Pollice Station of Tien Giang Province

Resident

 

Quarter 4, Ward 10, My Tho City, Tien Giang Provinve, Vietnam

Current Resident

 

No. 385/1 Nguyen Trong Tuyen Str, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

 

NAME

 

Mr. VO NGOC SON

Position

 

Former Director

Date of Birth

 

22 Mar 1978

ID Number/Passport

 

311612046

ID Issue Date

 

08 Sep 1997

ID Issue Place

 

Pollice Station of Tien Giang Province

Resident

 

339/27 Nguyen Thai Binh Str, Ward 12, Tan Binh District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

2. NAME

 

Mr. VO VAN MINH

Position

 

Chairman

ID Number/Passport

 

024637718

Resident

 

339/27 Nguyen Thai Binh Str, Ward 12, Tan Binh District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

This subject specialized in trading chemicals, fertilizers, plant seeds used for agriculture.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Products (chemicals, fertilizers, plant seeds)

·         Market

 

China, Malaysia

 

EXPORT:

The subject does not export

 

BANKERS

 

1. ASIA COMMERCIAL BANK NGUYEN VAN TROI BRANCH

Address

 

No.23 Nguyen Van Troi, Phu Nhuan District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3845 8479

Fax

 

(84-8) 3845 5690

 

2. EXIMBANK BINH TAN BRANCH

Address

 

10 Kinh Duong Vuong, Ward 13, 6th District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 37527073

 

 

SHAREHOLDERS

Following is its registration shareholders:

1. NAME

 

Mr. DANG HOANG NAM

ID Number/Passport

 

300887906

Resident

 

15 Nguyen Huu Huan, Group No. 2, Tam Vu Town, Chau Thanh District, Long An Province, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

500

Value of shares

 

VND 500,000,000

 

2. NAME

 

Ms. VO THI ANH

ID Number/Passport

 

024672837

Resident

 

327 Nguyen Trong Tuyen, Ward 10, Phu Nhuan Dist, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

500

Value of shares

 

VND 500,000,000

 

3. NAME

 

Mr. VO VAN MINH

Position

 

Chairman

ID Number/Passport

 

024637718

Resident

 

339/27 Nguyen Thai Binh, Ward 12, Tan Binh Dist, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

600

Value of shares

 

VND 600,000,000

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2010

31/12/2009

31/12/2008

Number of weeks

52

52

52

ASSETS

A – CURRENT ASSETS

45,209,802,410

42,863,656,643

27,679,593,209

I. Cash and cash equivalents

664,864,480

804,973,234

431,599,121

1. Cash

664,864,480

804,973,234

431,599,121

2. Cash equivalents

0

0

0

II. Short-term investments

1,115,100,000

0

0

1. Short-term investments

1,115,100,000

0

0

2. Provisions for devaluation of short-term investments

0

0

0

III. Accounts receivable

37,241,420,068

29,059,696,228

18,387,654,667

1. Receivable from customers

37,241,420,068

26,059,696,228

15,887,654,667

2. Prepayments to suppliers

0

0

0

3. Inter-company receivable

0

0

0

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

0

3,000,000,000

2,500,000,000

6. Provisions for bad debts

0

0

0

IV. Inventories

5,977,083,132

12,457,359,102

8,456,237,698

1. Inventories

5,977,083,132

12,457,359,102

8,456,237,698

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

211,334,730

541,628,079

404,101,723

1. Short-term prepaid expenses

0

0

2,699,504

2. VAT to be deducted

211,334,730

899,840

401,402,219

3. Taxes and other accounts receivable from the State

0

540,728,239

0

4. Other current assets

0

0

0

B. LONG-TERM ASSETS

801,736,158

8,599,858

20,282,614

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

801,736,158

8,599,858

20,282,614

1. Tangible assets

801,736,158

8,599,858

20,282,614

- Historical costs

873,183,626

58,413,743

58,413,743

- Accumulated depreciation

-71,447,468

-49,813,885

-38,131,129

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

0

0

0

- Initial costs

0

0

0

- Accumulated amortization

0

0

0

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

1. Goodwill

TOTAL ASSETS

46,011,538,568

42,872,256,501

27,699,875,823

 

LIABILITIES

A- LIABILITIES

45,223,278,492

41,311,630,916

26,281,682,736

I. Current liabilities

44,973,078,492

41,311,630,916

26,281,682,736

1. Short-term debts and loans

9,000,000,000

7,000,000,000

2,500,000,000

2. Payable to suppliers

35,970,527,661

34,262,387,074

23,735,485,013

3. Advances from customers

0

0

0

4. Taxes and other obligations to the State Budget

2,550,831

49,243,842

4,947,723

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

41,250,000

9. Other payable

0

0

0

10. Provisions for short-term accounts payable

0

0

0

II. Long-Term Liabilities

250,200,000

0

0

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

250,200,000

0

0

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

788,260,076

1,560,625,585

1,418,193,087

I. OWNER’S EQUITY

788,260,076

1,560,625,585

1,418,193,087

1. Capital

1,600,000,000

1,600,000,000

1,600,000,000

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

-129,636

-129,696

0

7. Business promotion fund

0

0

0

8. Financial reserved fund

0

0

0

9. Other funds

0

0

0

10. Retained earnings

-811,610,288

-39,244,719

-181,806,913

11. Construction investment fund

0

0

0

II. Other sources and funds

0

0

0

1. Bonus and welfare funds

0

0

0

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

46,011,538,568

42,872,256,501

27,699,875,823

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2010

FY2009

FY2008

1. Total Sales

68,687,257,100

48,719,747,474

33,373,002,340

2. Deduction item

0

0

0

3. Net revenue

68,687,257,100

48,719,747,474

33,373,002,340

4. Costs of goods sold

64,325,470,426

45,047,999,619

30,666,149,809

5. Gross profit

4,361,786,674

3,671,747,855

2,706,852,531

6. Financial income

139,946,003

357,757,041

299,433,178

7. Financial expenses

3,561,341,390

3,317,596,053

2,367,761,033

- In which: Loan interest expenses

1,010,716,934

3,317,596,053

2,367,761,033

8. Selling expenses

0

0

9. Administrative overheads

544,155,097

430,515,448

501,483,799

10. Net operating profit

396,236,190

281,393,395

137,040,877

11. Other income

0

0

0

12. Other expenses

0

0

0

13. Other profit /(loss)

0

0

0

14. Total accounting profit before tax

396,236,190

281,393,395

137,040,877

15. Current corporate income tax

99,059,048

0

0

16. Deferred corporate income tax

0

0

0

17. Interest from subsidiaries/related companies

18. Profit after tax

297,177,142

281,393,395

137,040,877

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2010

FY2009

FY2008

Average Industry

Current liquidity ratio

1.01

1.04

1.05

1.56

Quick liquidity ratio

0.87

0.74

0.73

0.82

Inventory circle

6.98

4.31

3.63

7.71

Average receive period

197.90

217.71

201.11

57.49

Utilizing asset performance

1.49

1.14

1.20

2.53

Liability by total assets

98.29

96.36

94.88

59.02

Liability by owner's equity

5,737.10

2,647.12

1,853.18

219.47

Ebit / Total assets (ROA)

3.06

8.39

9.04

13.30

Ebit / Owner's equity (ROE)

178.49

230.61

176.62

35.73

Ebit / Total revenue (NPM)

2.05

7.39

7.51

7.62

Gross profit / Total revenue (GPM)

6.35

7.54

8.11

16.22

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

 

 

Trade Morality

 

Normal

 

Liquidity

 

Low/Medium

 

Payment status

 

Limited

 

Financial Situation

 

Average

 

Development trend

 

Stable

 

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

 

DIEN THANH JOINT STOCK COMPANY was established in 2004 under the Business Registration No. 4103002869 with a chartered capital of VND 1,600,000,000. Currently, the subject is operating under the Business Registration No. 0303549261 with a chartered  capital of VND 6,800,000,000.

This subject specializes in trading materials and products used for agriculture such as fertilizers, medical products and other products. Some products of the subject are Katera 50EC, NP Pheta 6.6EC, Nicozol 12.5WP, T.B.Zol 250EW… Most of its goods are purchased domestically through other big agency. In order to decline input expenses and expand its business activities, this subject made a decision on the import from Chinese traders and manufacturers. In addition, the subject imports products from Malaysia market.

The market has been a little hard, but it is saw that subject’s business is still positive with green lights.

The latest financial statements have not been available in our source.

In general, the subject is a small company and it is not famous in the market. The future prospect is just normal. The subject is graded at B, it just can meet small financial transactions.

 

 

 

------------ 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.53.53

UK Pound

1

Rs.86.82

Euro

1

Rs.69.03

 

 

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.