MIRA INFORM REPORT

 

 

Report Date :

26.09.2012

 

IDENTIFICATION DETAILS

 

Name :

FOCUS ENGINEERING CO., LTD

 

 

Registered Office :

L4 Van Dat Building, Block II-1, Street 8, Tan Binh Industrial Zone, Tay Thanh Ward, Tan Phu District, Ho Chi Minh City

 

 

Country :

Viet Nam

 

 

Financials (as on) :

31.12.2008

 

 

Date of Incorporation :

2002

 

 

Com. Reg. No.:

0302733959

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Manufacturing equipment like, trading industrial equipment, environmental equipment etc

 

 

No. of Employees :

100

 

 

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 :

Unknown

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 

 

Current legal status

English Name

 

FOCUS ENGINEERING CO., LTD

Vietnamese Name

 

CONG TY TNHH KY THUAT TIEU DIEM

Trade name

 

FOCUS ENGINEERING CO., LTD

Short name

 

FOCUS CO., LTD

Type of Business

 

Limited liability company

Year Established

 

2002

Business Registration No.

 

0302733959

Date of the latest (13th) adjustment

 

30 Jul 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

 

0302733959

Total Employees

 

100

 

Historical Identification & Legal form

 

List

Changed Items

1

Subject has got former Business Registration No: 4102011940 issued on 02 Oct 2002 Changed to: 0302733959

2

Subject has got former Registered English Name: FOCUS TRADING CO., LTD

Changed to: FOCUS ENGINEERING CO., LTD

3

Subject has got former Registered Vietnamese Name: CONG TY TNHH THUONG MAI TIEU DIEM

Changed to: CONG TY TNHH KY THUAT TIEU DIEM

 

 

 

ADDRESSES

 

Head Office

Address

 

L4 Van Dat Building, Block II-1, Street 8, Tan Binh Industrial Zone, Tay Thanh Ward, Tan Phu District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3816 5395

Fax

 

(84-8) 3816 5396

Website

 

www.focus-eng.vn

 

Representative office in Ha Noi

Address

 

No. 55 Nguyen Xien Street, Ha Dinh Ward , Thanh Xuan District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3668 6351

Fax

 

(84-4) 3668 6353

 

 

 

DIRECTORS

 

1. NAME

 

Mr. HOANG LE

Position

 

Director

Date of Birth

 

17 Nov 1972

ID Number/Passport

 

024919933

Issued date

 

13 Dec 2011

Issued place

 

Police station of Ho Chi Minh City

Current resident

 

014 , No. 675 Nguyen Kiem Hostel , ward 9, Phu Nhuan District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Mr. NGUYEN QUANG HAO

Position

 

Deputy Director

ID Number/Passport

 

025299113

Current resident

 

414/1/8/7 Dien Bien Phu, Ward 11 –10th  District– Ho Chi Minh City

Nationality

 

Vietnamese

 

3. NAME

 

Mr. VO MANH GIANG

Position

 

Chief Accountant

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 933 262 068

Email

 

giangvo@focus-eng.vn

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is specialized in trading industrial equipment, environmental equipment; manufacturing equipment (Bearing plate, abrasion resistant materials, industrial chain, filter fabrics, dust filter system parts, industrial fan...)

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

equipment

·         Market

 

Italy, China, Spain, Korea

 

EXPORT:

·         Types of products

 

N/A

 

 

 

BANKERS

 

1. MARITIME COMMERCIAL JOINT STOCK HO CHI MINH BRANCH

Address

 

No. 26-28 Hai Ba Trung Str, 1st  District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 38222 177

Fax

 

(84-8) 38222 141

 

2. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE BRANCH IN HOCHIMINH CITY

Address

 

165/2 Su Van Hanh Street - Ward 13,10th  District , Ho Chi Minh City, Vietnam

Telephone

 

84-8 8632940

 

 

 

SHAREHOLDERS

 

1. NAME

 

Ms. NGUYEN THI MINH

ID Number/Passport

 

024919934

Current Resident

 

014 , No. 675 Nguyen Kiem Hostel, ward 9Phu Nhuan District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 6,120,000,000

Percentage

 

90%

 

2. NAME

 

Mr. NGUYEN QUANG HAO

Position

 

Deputy Director

ID Number/Passport

 

025299113

Current Resident

 

414/1/8/7 Dien Bien Phu, Ward 11 – District 10 – Ho Chi Minh City

Value of shares

 

VND 680,000,000

Percentage

 

10%

 

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2008

31/12/2007

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

8,605,138,914

7,105,858,580

I. Cash and cash equivalents

1,269,023,557

1,334,814,584

1. Cash

1,269,023,557

1,334,814,584

2. Cash equivalents

 

 

II. Short-term investments

0

1,500,000,000

1. Short-term investments

0

1,500,000,000

2. Provisions for devaluation of short-term investments

 

 

III. Accounts receivable

5,684,528,785

1,987,287,062

1. Receivable from customers

5,613,033,305

1,805,607,062

2. Prepayments to suppliers

4,180,000

181,680,000

3. Inter-company receivable

 

 

4. Receivable according to the progress of construction

 

 

5. Other receivable

67,315,480

0

6. Provisions for bad debts

 

 

IV. Inventories

1,249,546,942

1,701,732,832

1. Inventories

1,249,546,942

1,701,732,832

2. Provisions for devaluation of inventories

 

 

V. Other Current Assets

402,039,630

582,024,102

1. Short-term prepaid expenses

 

 

2. VAT to be deducted

 

 

3. Taxes and other accounts receivable from the State

462,925

0

4. Other current assets

401,576,705

582,024,102

B. LONG-TERM ASSETS

234,187,370

1,171,003,306

I. Long term accounts receivable

0

0

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

13,249,560

608,792,580

1. Tangible assets

0

608,792,580

- Historical costs

216,208,523

875,645,392

- Accumulated depreciation

-216,208,523

-266,852,812

2. Financial leasehold assets

 

 

- Historical costs

 

 

- Accumulated depreciation

 

 

3. Intangible assets

13,249,560

0

- Initial costs

13,249,560

0

- Accumulated amortization

 

 

4. Construction-in-progress

 

 

III. Investment property

0

0

Historical costs

 

 

Accumulated depreciation

 

 

IV. Long-term investments

0

0

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

220,937,810

562,210,726

1. Long-term prepaid expenses

196,569,558

223,408,045

2. Deferred income tax assets

24,368,252

89,802,681

3. Other long-term assets

0

249,000,000

TOTAL ASSETS

8,839,326,284

8,276,861,886

 

LIABILITIES

A- LIABILITIES

3,250,113,349

3,585,863,674

I. Current liabilities

3,250,113,349

3,585,863,674

1. Short-term debts and loans

0

2,400,000,000

2. Payable to suppliers

2,671,181,728

93,392,879

3. Advances from customers

72,611,000

250,355,600

4. Taxes and other obligations to the State Budget

84,767,675

232,349,942

5. Payable to employees

0

178,984,073

6. Accrued expenses

15,000,000

83,535,000

7. Inter-company payable

 

 

8. Payable according to the progress of construction contracts

 

 

9. Other payable

406,552,946

347,246,180

10. Provisions for short-term accounts payable

 

 

II. Long-Term Liabilities

0

0

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

5,589,212,935

4,690,998,212

I. OWNER’S EQUITY

5,589,212,935

4,690,998,212

1. Capital

4,000,000,000

4,000,000,000

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

1,589,212,935

690,998,212

11. Construction investment fund

 

 

II. Other sources and funds

0

0

1. Bonus and welfare funds (Elder form)

 

 

2. Sources of expenditure

 

 

3. Fund to form fixed assets

 

 

MINORITY’S INTEREST

 

 

TOTAL LIABILITIES AND OWNER’S EQUITY

8,839,326,284

8,276,861,886

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2008

1. Total Sales

27,414,778,371

2. Deduction item

 

3. Net revenue

27,414,778,371

4. Costs of goods sold

20,153,084,843

5. Gross profit

7,261,693,528

6. Financial income

287,217,077

7. Financial expenses

248,789,392

- In which: Loan interest expenses

246,821,904

8. Selling expenses

 

9. Administrative overheads

6,090,473,490

10. Net operating profit

1,209,647,723

11. Other income

933,601,982

12. Other expenses

891,536,749

13. Other profit /(loss)

42,065,233

14. Total accounting profit before tax

1,251,712,956

15. Current corporate income tax

288,063,804

16. Deferred corporate income tax

-65,434,429

18. Profit after tax

1,029,083,581

 

 

FINANCIAL RATIOS

 

Description

FY2008

Current liquidity ratio

2.65

Quick liquidity ratio

2.26

Inventory circle

13.66

Average receive period

75.68

Utilizing asset performance

3.10

Liability by total assets

36.77

Liability by owner's equity

58.15

Ebit / Total assets (ROA)

16.95

Ebit / Owner's equity (ROE)

26.81

Ebit / Total revenue (NPM)

5.47

Gross profit / Total revenue (GPM)

26.49

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

N/A

Payment status

 

N/A

Financial Situation

 

Average

Development trend

 

Stable

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Through the bank, T/T

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Good

 

 

 

INTERPRETATION ON THE SCORES

 

FOCUS ENGINEERING is a limited liability company which was established in 2002. Originally, the subject operated with trade name FOCUS TRADING CO., LTD. And now, the subject is operating under the Business Registration No. 0302733959 issued by Business Registration Office – Planning and Investment Department of Ho Chi Minh City with chartered capital of VND 6.8 billion. The subject specializes in supplying equipment and providing solutions for  filter dust system, filter dust cloth, dust training bag; spare parts for filter dust system; conveyor pneumatic gutter; conveyor rubber; industrial chain; fitting hydraulic power, motor, gear-boxes . The subject is distributor of Andrew CFC ( Andrew UK)

Currently, its business situation is busy. The subject has good relation with partners and customers. The subject is operating at average scale with about 100 employees. Premises and facilities are average. Head office of subject located in an advantage location for subject’s business activities. Beside head office, the subject also has transaction in Ha Noi City.

In overview, the subject has capacity to meet small financial commitments.

 

Following is import data of the company in the latest 30 days:

Customs code

Customs Bureau

Date of Registration

Import duty (VND)

VAT (VND)

C02I02

Cat Lai Port

30/08/2012

890,539

2,692,554

C02I02

Cat Lai Port

06/09/2012

0

13,325,754

C02I02

Cat Lai Port

12/09/2012

10,059,841

20,171,910

C02X

Tan Cang Port

06/09/2012

13,194,538

17,126,240

P03A

Hai Phong

12/09/2012

1,042,441

2,189,127

 

 

 

 

 


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.69.02

 

 

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%)

 

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.