MIRA INFORM REPORT

 

 

Report Date :

02.04.2013

 

IDENTIFICATION DETAILS

 

Name :

KHANH VINH SALT COMPANY LIMITED

 

 

Registered Office :

Cau Trung Hamlet, Quang Hung Commune, An Lao District, Hai Phong City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2010

 

 

Year of Incorporation :

2004

 

 

Com. Reg. No.:

0200581746

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

The subject is specialized in manufacturing and processing industrial salt.

 

 

No. of Employees :

60

 

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 :

Usually 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

(31.03.2011)

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

 

KHANH VINH SALT COMPANY LIMITED

Vietnamese Name

 

CONG TY TRACH NHIEM HUU HAN MUOI KHANH VINH

Short name

 

KHANH VINH SALT CO.,LTD

Type of Business

 

Limited liability company

Year Established

 

2004

Business Registration No.

 

0200581746

Date of Registration

 

2009

Place of Registration

 

Hai Phong Department of Planning and Investment

Chartered capital

 

VND 9,900,000,000

Status

 

Unlisted

Tax code

 

0200581746

Total Employees

 

60

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former chartered capital: VND 5,000,000,000

Changed to: VND 9,900,000,000

18 Dec 2010

2

Subject has got former Registered Vietnamese Name: CONG TY TNHH MUOI KHANH VINH

Changed to: CONG TY TRACH NHIEM HUU HAN MUOI KHANH VINH

18 Dec 2010

3

Subject has got former Business Registration No: 0202001845

Changed to: 0200581746

2009

 

ADDRESSES

 

Head Office

Address

 

Cau Trung Hamlet, Quang Hung Commune, An Lao District, Hai Phong City, Vietnam

 

Transaction office in Hai Phong

Address

 

No. 28/292 Lach Tray Street, Le Chan District, Hai Phong City, Vietnam

Telephone

 

(84-31) 3748899/ 3740616

Fax

 

(84-31) 3729814

Email

 

khavisaco@gmail.com

 

Branch in Ninh Thuan

Address

 

Nui Quyt Hamlet, Ninh Hai District, Ninh Thuan Province, Vietnam

 

 

DIRECTORS

 

1. NAME

 

Ms. NGUYEN THI PHUONG

Position

 

Director

Date of Birth

 

13 Nov 1949

ID Number/Passport

 

030966411

ID Issue Date

 

10 Sep 2001

ID Issue Place

 

Police station of Hai Phong City

Resident

 

Tieu Bang Group Bang La Ward, Do Son District, Hai Phong City, Vietnam

Current resident

 

Hao Khe Cluster Du Hang Kenh Ward, Le Chan District, Hai Phong City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Mr. NGUYEN VAN CUONG

Position

 

Chief Accountant

ID Number/Passport

 

030670847

Resident

 

No. 44/12 Ngo Quyen, May Chai Ward, Ngo Quyen District, Hai Phong City, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 912 607767

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is specialized in manufacturing and processing industrial salt.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Industrial salt

·         Market

 

India (mainly), Pakistan, Bangladesh, etc

 

EXPORT:

Note: Currently, the subject does not export.

 

 

BANKERS

 

1. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT HAI PHONG BRANCH

Address

 

283 Lach Tray Str, Ngo Quyen District, Hai Phong City, Vietnam

Telephone

 

(84-31) 3728 975

Fax

 

(84-31) 3728 113

 

 

SHAREHOLDERS

 

1. NAME

 

Ms. NGUYEN THI PHUONG

Position

 

Director

Date of Birth

 

13 Nov 1949

ID Number/Passport

 

030966411

Issued on

 

10 Sep 2001

Issued Place

 

Police station of Hai Phong City

Resident

 

Tieu Bang Group Bang La Ward, Do Son District, Hai Phong City, Vietnam

Current Resident

 

Hao Khe Cluster Du Hang Kenh Ward, Le Chan District, Hai Phong City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 5,000,000,000

Percentage

 

50.51%

 

2. NAME

 

Mr. PHAM BA CAM

ID Number/Passport

 

030642904

Resident

 

Housing Group 13, Quarter 1 Du Hang Kenh Ward, Le Chan District, Hai Phong City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 1,000,000,000

Percentage

 

10.1%

 

3. NAME

 

Mr. NGUYEN VAN CUONG

Position

 

Chief Accountant

ID Number/Passport

 

030670847

Resident

 

No. 44/12 Ngo Quyen, May Chai Ward, Ngo Quyen District, Hai Phong City, Vietnam

Mobile phone

 

+84 912 607767

Nationality

 

Vietnamese

Value of shares

 

VND 1,900,000,000

Percentage

 

19.19%

 

4. NAME

 

Ms. BUI THI TAM

ID Number/Passport

 

030825269

Resident

 

No. 20 Nguyen Binh, Kenh Duong Ward, Le Chan District, Hai Phong City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 1,000,000,000

Percentage

 

10.1%

 

5. NAME

 

Ms. HOANG THI HAU THAO

ID Number/Passport

 

030995381

Resident

 

No. 127, Group 15 Hang Kenh 1 Block, Du Hang Kenh Ward, Le Chan District, Hai Phong City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 1,000,000,000

Percentage

 

10.1%

 

 


 


 

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

24,546,009,547

12,072,863,651

16,185,767,650

I. Cash and cash equivalents

2,406,405,067

319,168,771

639,939,236

1. Cash

2,406,405,067

319,168,771

639,939,236

2. Cash equivalents

0

0

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

10,887,833,551

9,851,842,957

14,147,316,920

1. Receivable from customers

10,887,833,551

9,644,842,957

14,147,316,920

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

207,000,000

0

6. Provisions for bad debts

0

0

0

IV. Inventories

11,223,121,429

1,594,187,423

1,369,956,494

1. Inventories

11,223,121,429

1,594,187,423

1,369,956,494

2. Provisions for devaluation of inventories

0

0

0

V. Other Current Assets

28,649,500

307,664,500

28,555,000

1. Short-term prepaid expenses

0

0

0

2. VAT to be deducted

0

0

0

3. Taxes and other accounts receivable from the State

0

0

0

4. Other current assets

28,649,500

307,664,500

28,555,000

B. LONG-TERM ASSETS

8,440,499,670

8,959,419,245

4,601,250,622

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

6,340,499,670

6,859,419,245

4,601,250,622

1. Tangible assets

4,379,104,070

4,898,023,645

3,201,250,622

- Historical costs

7,997,191,725

7,584,344,309

5,196,092,309

- Accumulated depreciation

-3,618,087,655

-2,686,320,664

-1,994,841,687

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

1,961,395,600

1,961,395,600

1,400,000,000

III. Investment property

0

0

0

Historical costs

0

0

0

Accumulated depreciation

0

0

0

IV. Long-term investments

2,100,000,000

2,100,000,000

0

1. Investments in affiliates

0

0

0

2. Investments in business concerns and joint ventures

0

0

0

3. Other long-term investments

2,100,000,000

2,100,000,000

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

32,986,509,217

21,032,282,896

20,787,018,272

 

LIABILITIES

A- LIABILITIES

21,045,112,037

14,453,467,249

15,263,008,686

I. Current liabilities

20,925,112,037

14,453,467,249

15,263,008,686

1. Short-term debts and loans

18,664,875,202

8,654,599,348

13,787,294,892

2. Payable to suppliers

1,817,613,130

5,769,279,351

1,425,151,717

3. Advances from customers

0

0

0

4. Taxes and other obligations to the State Budget

435,273,705

23,797,140

49,272,077

5. Payable to employees

0

0

0

6. Accrued expenses

0

0

0

7. Inter-company payable

7,350,000

0

0

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

0

5,791,410

1,290,000

10. Provisions for short-term accounts payable

0

0

0

11. Bonus and welfare funds

0

0

0

II. Long-Term Liabilities

120,000,000

0

0

1. Long-term accounts payable to suppliers

0

0

0

2. Long-term inter-company payable

120,000,000

0

0

3. Other long-term payable

0

0

0

4. Long-term debts and loans

0

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

8. Unearned Revenue

0

0

0

9. Science and technology development fund

0

0

0

B- OWNER’S EQUITY

11,941,397,180

6,578,815,647

5,524,009,586

I. OWNER’S EQUITY

11,865,897,180

6,578,815,647

5,524,009,586

1. Capital

5,000,000,000

5,000,000,000

5,000,000,000

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

0

0

0

7. Business promotion fund

0

0

0

8. Financial reserved fund

0

0

0

9. Other funds

2,204,157,514

121,962,733

6,247,945

10. Retained earnings

4,661,739,666

1,456,852,914

517,761,641

11. Construction investment fund

0

0

0

12. Business arrangement supporting fund

0

0

0

II. Other sources and funds

75,500,000

0

0

1. Bonus and welfare funds (Elder form)

75,500,000

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

32,986,509,217

21,032,282,896

20,787,018,272

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2010

FY2009

FY2008

1. Total Sales

108,530,749,810

108,704,480,749

111,240,969,131

2. Deduction item

0

0

0

3. Net revenue

108,530,749,810

108,704,480,749

111,240,969,131

4. Costs of goods sold

87,369,400,420

92,683,757,435

94,901,785,816

5. Gross profit

21,161,349,390

16,020,723,314

16,339,183,315

6. Financial income

27,496,287

17,971,289

64,030,466

7. Financial expenses

1,796,455,459

1,924,196,175

3,016,704,937

- In which: Loan interest expenses

0

1,924,196,175

3,016,704,937

8. Selling expenses

13,266,737,335

 

 

9. Administrative overheads

0

12,657,645,514

12,941,019,457

10. Net operating profit

6,125,652,883

1,456,852,914

445,489,387

11. Other income

90,000,000

0

0

12. Other expenses

0

0

0

13. Other profit /(loss)

90,000,000

0

0

14. Total accounting profit before tax

6,215,652,883

1,456,852,914

445,489,387

15. Current corporate income tax

1,553,913,222

254,949,260

115,381,755

16. Deferred corporate income tax

0

0

0

17. Interest from subsidiaries/related companies

0

0

0

18. Profit after tax

4,661,739,661

1,201,903,654

330,107,632

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2010

FY2009

FY2008

Average Industry

Current liquidity ratio

1.17

0.84

1.06

1.94

Quick liquidity ratio

0.64

0.73

0.97

0.98

Inventory circle

13.63

62.54

69.27

9.29

Average receive period

36.62

33.08

46.42

54.01

Utilizing asset performance

3.29

5.17

5.35

2.21

Liability by total assets

63.80

68.72

73.43

58.72

Liability by owner's equity

176.24

219.70

276.30

256.76

Ebit / Total assets (ROA)

18.84

16.08

16.66

7.90

Ebit / Owner's equity (ROE)

52.05

51.39

62.68

25.68

Ebit / Total revenue (NPM)

5.73

3.11

3.11

4.18

Gross profit / Total revenue (GPM)

19.50

14.74

14.69

15.30

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

 

Normal

Financial Situation

 

Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

L/C

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Normal

 

 

 

INTERPRETATION ON THE SCORES

 

Established in 2004 as a limited liability company, the subject was granted the business registration No. 0202001845 by Hai Phong Department of Planning and Investment with chartered capital of VND 5 billion. In 2009, the subject's business registration was adjusted into No. 0200581746 for coincidence with the tax code according to the new Vietnam business law. At the end of 2010, it increased its capital to VND 9,900 million.

 

The subject registers its head office at Cau Trung Hamlet - Quang Hung Commune - An Lao District - Hai Phong City but all its business transactions are performed at No. 28/292 Lach Tray Street - Le Chan District - Hai Phong City. There are about 60 persons (both of staffs and workers) working for the subject now. The subject now focuses on manufacturing and processing industrial salt. It imports from India, Pakistan, Bangladesh, etc. It does not have export activity. Its industrial salt products are supplied mainly for factories that manufacture industrial products in Vietnam. Besides, it also purchases salt from domestic and sells to customers under both two forms of retail and wholesale.

 

Financially, the subject's turnover reached over VND 111.2 billion in 2008, increased strongly compared with previous years but in 2009 and 2010 this number was reduced. Also, according to Mr. Nguyen Van Cuong - the subject's chief accountant, revenue in 2011 was also lower than that in 2010, main cause of decrease in recent years is that salt price in local lessens. However, turnover of the subject still is considered as fairly high in comparison with other small scale companies in the field. Besides, it profit also was relative and rose year by year. This proves that the subject’s costs management capacity is good. In 2010, the subject's ROA, ROE and profit ratios were much better than the average industry. This shows that although the subject had to face with difficulties in market, its business operations are still effective. Moreover, operation ratios also were higher compared with the average industry reveals that the subject's property management ability is fairly good. Nevertheless, its liquidity seems limited and its capital structure also is not very safe. This is reflected in liquidity indexes and debt rate of the subject. Liquidity ratios were rather low due to the high current liabilities and the high liabilities were also the cause that leaded to a not good debt rate although in 2010 this rate was improved compared with previous years. This is not good signs for creditors. At the end of 2010, the subject increased its capital from VND 5 billion to VND 9,900 million. Like this, its self-financing ability can be improved continuously.

 

In general, the subject is ranked as a medium scale company. Its business activity is fairly effective. Now, it has capacity to meet small transactions. Caution is needed for medium and big ones with the subject.

 

 

------------ APPENDIX  ----------


 

INDUSTRY DATA

 

Industry code

Growth speed by price compared with 1994 (%)

Total enterprises 2010

Total employees 2011

(Thous.pers.)

Annual average capital of enterprises 2010

(billion dongs)

2012

2011

Agriculture, Forestry and Fishing

2.72

4.00

8,887

24,362.9

95,227

Industry and Construction

4.52

5.53

95,217

10,718.9

3,641,376

Trade and Services

6.42

6.69

187,195

15,270.2

6,957,082

 

ECONOMIC INDICATORS

 

 

2012 

2011 

2010 

Population (Million person)

88.78

87.84

86.93

Gross Domestic Products (USD billion)

136

119

102.2

GDP Growth (%)

5.03

5.89

6.78

GDP Per Capita (USD/person/year)

1,540

1,300

1,160

Inflation (% Change in Composite CPI)

9.21

18.58

11.75

State Budget Deficit compared with GDP (%)

4.8

4.9

5.8

 

SERVICE TRADE PERFORMANCE

 

Billion USD 

2012 

2011 

2010 

Exports

114.6

96.3

72.2

Imports

114.3

105.8

84.8

Trade Balance

0.3

-9.5

-12.6

Source: General Statistics Office

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

 

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.