MIRA INFORM REPORT

 

 

Report Date :

02.04.2013

 

IDENTIFICATION DETAILS

 

Name :

WORLD TECHNICS CHEMICALS TRADE COMPANY LIMITED

 

 

Registered Office :

No. 20B Phan Chu Trinh Street, Tan Thanh Ward, Tan Phu District, Ho Chi Minh City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2008

 

 

Year of Incorporation :

2007

 

 

Com. Reg. No.:

0304958274

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

The subject is specializing in trading chemicals for industries such as paint, ink, FRP, adhesives, rubber, cosmetic, insecticides, printing, packaging and composite

 

 

No. of Employees :

10

 

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

(31.03.2011)

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

 

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

 

WORLD TECHNICS CHEMICALS TRADE COMPANY LIMITED

Vietnamese Name

 

CONG TY TNHH THUONG MAI HOA CONG NGHE TOAN CAU

Short name

 

WORLD TECHEM TRADE CO., LTD

Type of Business

 

Limited liability company

Year Established

 

2007

Business Registration No.

 

0304958274

Date of Registration

 

10 Sep 2012 (04th adjustment)

Place of Registration

 

Business Registration Office - Planning and Investment Department of Ho Chi Minh City

Chartered capital

 

VND 16,800,000,000

Tax code

 

0304958274

Total Employees

 

10

 

Historical Identification & Legal form

 

List

Changed Items

1

Subject has got former Business Registration No: 4102049588 issued on 25 Apr 2007

Changed to: 0304958274

 

ADDRESSES

 

Head Office

Address

 

No. 20B Phan Chu Trinh Street, Tan Thanh Ward, Tan Phu District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3812 4725 - 3812 4726 - 3812 4727 - 3812 4728

Fax

 

(84-8) 3812 4734

 

Other

Address

 

No. 262/10, Luy Ban Bich street, Hoa Thanh ward, Tan Phu District, Ho Chi Minh City, Vietnam

Note:  Warehouse

 

RELATED COMPANIES

 

TECHNOLOGY CHEMICAL TRADING LIMITED COMPANY

Business Registration

 

071474

Date of Registration

 

10 Jun 1999

Place of Registration

 

Business Registration Office- Planning &Investment Department of Hochiminh city

Registered Capital

 

VND 2,000,000,000

Tax code

 

0301741788

Address

 

20B Phan Chu Trinh – Tan Thanh Ward, Tan Phu District, Ho Chi Minh City, Vietnam

Tel

 

84-8- 38124726/ 38124727/ 38124728 / 38124729 / 62

Fax

 

84-8 – 38124734

Status

 

Stopped operating

 

DIRECTORS

 

1. NAME

 

Mr. TRAN TRIEU NANG LUC

Position

 

General Director

Date of birth

 

24 Jul 1970

ID Number/Passport

 

022327311

ID Issue Date

 

20 Nov 2008

ID Issue Place

 

Police station of Hochiminh city

Current resident

 

No. 394/4, Nguyen Tri Phuong Str, Ward 4, District 10, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84-8) 3812 4729 / +84 903 902399

Email

 

Luc@techemgroup.vn  ; lucworldtechem@hcm.fpt.vn

Qualification

 

Management

 

2. NAME

 

Mr. TRAN TRIEU NANG TRI

Position

 

Deputy General Director

Date of Birth

 

25 Aug 1972

ID Number/Passport

 

022327310

Current resident

 

No. 394/4 Nguyen Tri Phuong Str, Ward 4, District 10, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Email

 

triworldtechem@hcm.fpt.vn

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is specializing in trading chemicals for industries such as paint, ink, FRP, adhesives, rubber, cosmetic, insecticides, printing, packaging and composite

Registration activities:

Wholesale of other chemicals, except agricultural chemicals
Wholesale of other machinery and equipment n.e.c
Wholesale of waste and scrap and other products n.e.c
Wholesale of computer, computer peripheral equipment and software
Wholesale of food
Wholesale of other household products
Wholesale of textiles, clothing, footwear
Wholesale on a fee or contract basis
Other transportation support activities

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

chemical

·         Market

 

Germany, France, Singapore, China and India

 

EXPORT: N/A

 
Following is tax payable (related to imports/ exports) of the company (updated on 01 Apr 2013):

Customs code

Registration Date

 Import tax payable (unit: VND)

 VAT on import/ export (unit: VND)

Fees (unit: VND)

C02I02

04/03/2013

0

0

20,000

C02I02

04/03/2013

0

86,644,480

0

C02I02

04/03/2013

0

0

20,000

C02I02

04/03/2013

0

86,644,480

0

C02I02

07/03/2013

0

0

20,000

C02I02

07/03/2013

11,821,973

40,588,773

0

C02I02

08/03/2013

0

0

20,000

C02I02

08/03/2013

12,371,832

42,476,623

0

C02I02

11/03/2013

0

0

20,000

C02I02

11/03/2013

0

52,694,840

0

C02I02

14/03/2013

0

0

20,000

C02I02

14/03/2013

7,698,029

48,299,299

0

C02I02

18/03/2013

0

0

20,000

C02I02

18/03/2013

0

24,993,600

0

C02I02

22/03/2013

0

0

20,000

C02I02

22/03/2013

12,678,004

43,527,813

0

C02I02

25/03/2013

0

0

20,000

C02I02

25/03/2013

0

67,182,797

0

C03C

27/03/2013

0

0

20,000

C03C

27/03/2013

0

21,661,120

0

 

BANKERS

 

1. ASIA COMMERCIAL BANK TRUONG CHINH BRANCH

Address

 

No.85 – 87 Xuan Hong, No.12 ward, Tan Binh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3811 5422

Fax

 

(84-8) 3811 5432

 

2. DONGA COMMERCIAL JOINT STOCK BANK

Address

 

No.130 Phan Dang Luu Street, Ward 3, Phu Nhuan District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3995 1483

Fax

 

(84-8) 3995 1614

 

3. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM

Address

 

No. 93 - 95 Ham Nghi Str, Nguyen Thai Binh Ward, 1st District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3215388 - 8210089

Fax

 

(84-8) 38290696

 

SHAREHOLDERS

 

1. NAME

 

Mr. TRAN TRIEU NANG LUC

Position

 

General Director

Date of birth

 

24 Jul 1970

ID Number/Passport

 

022327311

ID Issue Date

 

20 Nov 2008

ID Issue Place

 

Police station of Hochiminh city

Current resident

 

No. 394/4, Nguyen Tri Phuong Str, Ward 4, District 10, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84-8) 3812 4729 / +84 903 902399

Email

 

Luc@techemgroup.vn  ; lucworldtechem@hcm.fpt.vn

Qualification

 

Management

Value of shares

 

VND 10,500,000,000

Percentage

 

62.5%

 

2. NAME

 

Mr. TRAN TRIEU NANG TRI

Position

 

Deputy General Director

Date of Birth

 

25 Aug 1972

ID Number/Passport

 

022327310

Current resident

 

No. 394/4 Nguyen Tri Phuong Str, Ward 4, District 10, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Email

 

triworldtechem@hcm.fpt.vn

Value of shares

 

VND 5,500,000,000

Percentage

 

32.74%

 

3. NAME

 

Mr. NGO THANG HUNG

I.D No.

 

023274136

Resident

 

No. 41/154, Ngo Quyen street, Ward 6, District 10, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 800,000,000

Percentage

 

4.76%

 


 

FINANCIAL DATA

 

 

 

BALANCE SHEET

 

Unit: Million VND

 

Balance sheet date

31/12/2008

31/12/2007

 

Number of weeks

52

N/A

 

ASSETS

 

A – CURRENT ASSETS

55,222

48,190

 

I. Cash and cash equivalents

7,737

3,062

 

1. Cash

7,737

3,062

 

2. Cash equivalents

0

0

 

II. Short-term investments

0

0

 

1. Short-term investments

0

0

 

2. Provisions for devaluation of short-term investments

0

0

 

III. Accounts receivable

23,748

20,109

 

1. Receivable from customers

23,744

20,099

 

2. Prepayments to suppliers

0

0

 

3. Inter-company receivable

0

0

 

4. Receivable according to the progress of construction

0

0

 

5. Other receivable

4

10

 

6. Provisions for bad debts

0

0

 

IV. Inventories

22,768

23,190

 

1. Inventories

22,768

23,190

 

2. Provisions for devaluation of inventories

0

0

 

V. Other Current Assets

969

1,829

 

1. Short-term prepaid expenses

45

17

 

2. VAT to be deducted

924

1,812

 

3. Taxes and other accounts receivable from the State

0

0

 

4. Other current assets

0

0

 

B. LONG-TERM ASSETS

612

221

 

I. Long term accounts receivable

0

0

 

1. Long term account receivable from customers

0

0

 

2. Working capital in affiliates

0

0

 

3. Long-term inter-company receivable

0

0

 

4. Other long-term receivable

0

0

 

5. Provisions for bad debts from customers

0

0

 

II. Fixed assets

612

221

 

1. Tangible assets

612

221

 

- Historical costs

656

221

 

- Accumulated depreciation

-44

0

 

2. Financial leasehold assets

0

0

 

- Historical costs

0

0

 

- Accumulated depreciation

0

0

 

3. Intangible assets

0

0

 

- Initial costs

0

0

 

- Accumulated amortization

0

0

 

4. Construction-in-progress

0

0

 

III. Investment property

0

0

 

Historical costs

0

0

 

Accumulated depreciation

0

0

 

IV. Long-term investments

0

0

 

1. Investments in affiliates

0

0

 

2. Investments in business concerns and joint ventures

0

0

 

3. Other long-term investments

0

0

 

4. Provisions for devaluation of long-term investments

0

0

 

V. Other long-term assets

0

0

 

1. Long-term prepaid expenses

0

0

 

2. Deferred income tax assets

0

0

 

3. Other long-term assets

0

0

 

VI. Goodwill

 

 

 

1. Goodwill

 

 

 

TOTAL ASSETS

55,834

48,411

 

 

 

LIABILITIES

 

A- LIABILITIES

46,253

41,508

 

I. Current liabilities

43,753

39,008

 

1. Short-term debts and loans

0

0

 

2. Payable to suppliers

43,793

38,553

 

3. Advances from customers

0

0

 

4. Taxes and other obligations to the State Budget

-40

455

 

5. Payable to employees

0

0

 

6. Accrued expenses

0

0

 

7. Inter-company payable

0

0

 

8. Payable according to the progress of construction contracts

0

0

 

9. Other payable

0

0

 

10. Provisions for short-term accounts payable

0

0

 

11. Bonus and welfare funds

 

 

 

II. Long-Term Liabilities

2,500

2,500

 

1. Long-term accounts payable to suppliers

0

0

 

2. Long-term inter-company payable

0

0

 

3. Other long-term payable

0

0

 

4. Long-term debts and loans

2,500

2,500

 

5. Deferred income tax payable

0

0

 

6. Provisions for unemployment allowances

0

0

 

7. Provisions for long-term accounts payable

0

0

 

8. Unearned Revenue

 

 

 

9. Science and technology development fund

 

 

 

B- OWNER’S EQUITY

9,581

6,903

 

I. OWNER’S EQUITY

9,581

6,903

 

1. Capital

5,000

5,000

 

2. Share premiums

0

0

 

3. Other sources of capital

0

0

 

4. Treasury stocks

0

0

 

5. Differences on asset revaluation

0

0

 

6. Foreign exchange differences

0

0

 

7. Business promotion fund

0

0

 

8. Financial reserved fund

0

0

 

9. Other funds

0

0

 

10. Retained earnings

4,581

1,903

 

11. Construction investment fund

0

0

 

12. Business arrangement supporting fund

 

 

 

II. Other sources and funds

0

0

 

1. Bonus and welfare funds (Elder form)

0

0

 

2. Sources of expenditure

0

0

 

3. Fund to form fixed assets

0

0

 

MINORITY’S INTEREST

0

0

 

TOTAL LIABILITIES AND OWNER’S EQUITY

55,834

48,411

 

 

 

PROFIT & LOSS STATEMENT

 

 

 

Description

FY2008

 

1. Total Sales

106,978

 

2. Deduction item

0

 

3. Net revenue

106,978

 

4. Costs of goods sold

99,270

 

5. Gross profit

7,708

 

6. Financial income

37

 

7. Financial expenses

2,320

 

- In which: Loan interest expenses

0

 

8. Selling expenses

913

 

9. Administrative overheads

793

 

10. Net operating profit

3,719

 

11. Other income

0

 

12. Other expenses

0

 

13. Other profit /(loss)

0

 

14. Total accounting profit before tax

3,719

 

15. Current corporate income tax

1,041

 

16. Deferred corporate income tax

0

 

17. Interest from subsidiaries/related companies

 

 

18. Profit after tax

2,678

 

 

 

FINANCIAL RATIOS

 

 

 

Description

FY2008

 

Current liquidity ratio

1.26

 

Quick liquidity ratio

0.74

 

Inventory circle

4.32

 

Average receive period

81.03

 

Utilizing asset performance

1.92

 

Liability by total assets

82.84

 

Liability by owner's equity

482.76

 

Ebit / Total assets (ROA)

6.66

 

Ebit / Owner's equity (ROE)

38.82

 

Ebit / Total revenue (NPM)

3.48

 

Gross profit / Total revenue (GPM)

7.21

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

 

 

Trade Morality

 

Normal

 

Liquidity

 

N/A

 

Payment status

 

N/A

 

Financial Situation

 

Average

 

Development trend

 

N/A

 

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

 

 

 

The company, WORLD TECHNICS CHEMICALS TRADE COMPANY LIMITED was established in April 2007 under the Business Registration No. 4102049588. It was reissued new Business Registration No. 0304958274. Head office of the company is located at No. 20B Phan Chu Trinh Str - Tan Thanh Ward - Tan Phu District - Ho Chi Minh City.

The company is specializing in trading chemicals for industries such as paint, ink, FRP, adhesive, rubber, cosmetic, insecticides, printing, packaging and composite. Its products are imported from Taiwan, Malaysia, Germany, France, Singapore, China and India then providing in domestic market.

Premises and facilities of the company are normal. In the past, the company and Technology Chemical Trading Limited Company shared the same office and contact lines (these companies have the same owners). Since 26 Nov 2009, Technology Chemical Trading Limited Company has been stopped operating but procedure for closing tax code has not been finished yet. Management capability of the company is average. Before establishing the company, its owners had established a sole proprietorship enterprise called DNTN Thuong Mai Viet Hoa in 1997. According to Mr. Tran Trieu Nang Luc, the company was operating normally. Its turnover 2011 increased by 10% in comparison with previous year.

Since beginning of 2011, fluctuation of exchange rate has affected deeply on business of companies which have import - export activities. The company is not out of this affection. In our opinion, the company has capacity to meet the small business transaction at the present.

 

 

------------ 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%)

 

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.