MIRA INFORM REPORT

 

 

Report Date :

25.04.2013

 

IDENTIFICATION DETAILS

 

Name :

THANH HUNG COMPANY LIMITED

 

 

Registered Office :

Lot G04-A Duc Hoa I - Hanh Phuc Industrial Zone, Duc Hoa District, Long An Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Incorporation :

1998

 

 

Com. Reg. No.:

1100745093

 

 

Legal Form :

LIMITED LIABILITY COMPANY

 

 

Line of Business :

The subject is specialized in manufacturing, processing and trading plant pesticide, fertilizer, seed.

 

 

No. of Employees :

60

 

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 :

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 has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. 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 hurt Vietnam's export-oriented economy, with GDP in 2012 growing at 5%, the slowest rate of growth since 1999. In 2012, however, exports increased by more than 18%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the Government shifted policy away from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. Although Vietnam unveiled a broad, "three pillar" economic reform program in early 2012, proposing the restructuring of public investment, state-owned enterprises, and the banking sector, little perceptible progress had been made by early 2013. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some independent analysts believe it could be higher than 15%.

Source : CIA


 

 

SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

English Name

 

THANH HUNG COMPANY LIMITED

Vietnamese Name

 

CONG TY TNHH THANH HUNG

Type of Business

 

Limited liability company

Year Established

 

1998

Business Registration No.

 

1100745093

Date of Registration

 

09 Mar 2009

Place of Registration

 

Business Registration Office - Planning And Investment Department of Long An Province

Chartered capital

 

VND 10,000,000,000

Tax code

 

1100745093

Total Employees

 

60

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Business Registration No: 5102000228

Changed to 5002000926 dated on 26 Sep 2006

Changed to: 1100745093

09 Mar 2009

2

Subject has got former Registered English Name: THANH HUNG TRADING & SERVICE COMPANY LIMITED

Changed to: THANH HUNG COMPANY LIMITED

26 Sep 2006

3

Subject has got former Registered Vietnamese Name: CONG TY TNHH THUONG MAI & DICH VU THANH HUNG

Changed to: CONG TY TNHH THANH HUNG

26 Sep 2006

4

Subject has got former Tax code No: 1400491604

Changed to: 1100745093

-

5

Subject has got former Chartered capital: VND 4,000,000,000

Changed to: VND 10,000,000,000

-

6

Subject has got former Address: No 234A, Anh Thanh Hamlet, Binh Thanh Ward, Lap Vo District, Dong Thap Province, Vietnam

Changed to: Lot G04-A, Duc Hoa I Hanh Phuc Industrial Zone, Duc Hoa District, Long An Province, Vietnam

-

 

ADDRESSES

 

Head Office

Address

 

Lot G04-A Duc Hoa I - Hanh Phuc Industrial Zone, Duc Hoa District, Long An Province, Vietnam

Telephone

 

(84-72) 3779 343

Fax

 

(84-72) 3779 353

 

Transaction office in An Giang

Address

 

No. 96/6C Tran Hung Dao Street, My Phuoc Ward, Long Xuyen City, An Giang Province, Vietnam

Telephone

 

(84-76) 3843 656

Fax

 

(84-76) 3845 400

Note: This address is also the private house of Mrs. LE THI TUYET, a shareholder of the subject.

 

 

DIRECTORS

 

1. NAME

 

Mr. LE THIEN NHON

Position

 

Director  - Legal representative

Date of Birth

 

17 Aug 1974

ID Number/Passport

 

340755404

Resident

 

No. 234A - An Thanh Hamlet Binh Thanh Ward, Lap Vo District, Dong Thap Province, Vietnam

Nationality

 

Vietnamese

Qualification

 

Management

Tel/Mobile phone

 

+84 913 877 169

 

2. NAME

 

Mr. TRAN HUY DAT

Position

 

Chief Accountant

Current resident

 

Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 919 751 379

Qualification

 

Bachelor

Email

 

dat.thanhhung@gmail.com

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is specialized in manufacturing, processing and trading plant pesticide, fertilizer, seed...

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Materials

·         Market

 

China and India

 

EXPORT:

·         Market

 

The subject does not export.

 

 

BANKERS

 

1. ASIA COMMERCIAL BANK AN GIANG BRANCH

Address

 

No.95 Nguyen Trai, Long Xuyen City, An Giang Province, Vietnam

Telephone

 

(84-76) 384 4531

Fax

 

(84-76) 384 4530

 

2. SAI GON COMMERCIAL JOINT STOCK BANK TAN BINH BRANCH

Address

 

No.341 Cong Hoa Street, Tan Binh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3810 8986

Fax

 

(84-8) 3810 8993

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. LE THIEN NHON

Position

 

Director

Date of Birth

 

17 Aug 1974

ID Number/Passport

 

340755404

Resident

 

No. 234A - An Thanh Hamlet Binh Thanh Ward, Lap Vo District, Dong Thap Province, Vietnam

Mobile phone

 

+84 913 877 169

Nationality

 

Vietnamese

Value of shares

 

VND 8,000,000,000

Percentage

 

80%

 

2. NAME

 

Mrs. LE THI TUYET

Resident

 

No. 96/6C Tran Hung Dao Street, Long Xuyen City, An Giang Province, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 2,000,000,000

Percentage

 

20%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

119,481,000,000

91,120,000,000

I. Cash and cash equivalents

403,000,000

4,496,000,000

1. Cash

403,000,000

4,496,000,000

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

36,708,000,000

40,064,000,000

1. Receivable from customers

22,003,000,000

39,983,000,000

2. Prepayments to suppliers

275,000,000

81,000,000

3. Inter-company receivable

13,620,000,000

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

810,000,000

0

6. Provisions for bad debts

0

0

IV. Inventories

78,781,000,000

44,479,000,000

1. Inventories

78,781,000,000

44,479,000,000

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

3,589,000,000

2,081,000,000

1. Short-term prepaid expenses

0

0

2. VAT to be deducted

3,534,000,000

2,027,000,000

3. Taxes and other accounts receivable from the State

14,000,000

47,000,000

4. Other current assets

41,000,000

7,000,000

B. LONG-TERM ASSETS

11,645,000,000

12,695,000,000

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

8,433,000,000

9,151,000,000

1. Tangible assets

8,425,000,000

9,143,000,000

- Historical costs

10,769,000,000

10,720,000,000

- Accumulated depreciation

-2,344,000,000

-1,577,000,000

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

8,000,000

8,000,000

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

3,212,000,000

3,544,000,000

1. Long-term prepaid expenses

3,212,000,000

3,544,000,000

2. Deferred income tax assets

0

0

3. Other long-term assets

0

0

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

131,126,000,000

103,815,000,000

 

LIABILITIES

A- LIABILITIES

108,173,000,000

81,537,000,000

I. Current liabilities

108,173,000,000

81,537,000,000

1. Short-term debts and loans

12,705,000,000

17,911,000,000

2. Payable to suppliers

94,429,000,000

62,765,000,000

3. Advances from customers

0

0

4. Taxes and other obligations to the State Budget

1,035,000,000

851,000,000

5. Payable to employees

0

0

6. Accrued expenses

4,000,000

10,000,000

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

0

0

II. Long-Term Liabilities

0

0

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

0

0

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

0

0

9. Science and technology development fund

0

0

B- OWNER’S EQUITY

22,953,000,000

22,278,000,000

I. OWNER’S EQUITY

22,953,000,000

22,278,000,000

1. Capital

10,000,000,000

10,000,000,000

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

-312,000,000

3,585,000,000

7. Business promotion fund

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

13,265,000,000

8,693,000,000

11. Construction investment fund

0

0

12. Business arrangement supporting fund

0

0

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

131,126,000,000

103,815,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

180,369,000,000

151,411,000,000

2. Deduction item

32,000,000

379,000,000

3. Net revenue

180,337,000,000

151,032,000,000

4. Costs of goods sold

145,084,000,000

137,578,000,000

5. Gross profit

35,253,000,000

13,454,000,000

6. Financial income

553,000,000

82,000,000

7. Financial expenses

5,832,000,000

3,242,000,000

- In which: Loan interest expenses

2,479,000,000

0

8. Selling expenses

2,697,000,000

1,499,000,000

9. Administrative overheads

2,069,000,000

1,431,000,000

10. Net operating profit

25,208,000,000

7,364,000,000

11. Other income

0

0

12. Other expenses

361,000,000

30,000,000

13. Other profit /(loss)

-361,000,000

-30,000,000

14. Total accounting profit before tax

24,847,000,000

7,334,000,000

15. Current corporate income tax

275,000,000

0

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

24,572,000,000

7,334,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

1.10

1.12

1.42

Quick liquidity ratio

0.38

0.57

0.78

Inventory circle

1.84

3.09

5.13

Average receive period

74.30

96.82

72.48

Utilizing asset performance

1.38

1.45

1.61

Liability by total assets

82.50

78.54

65.76

Liability by owner's equity

471.28

366.00

269.57

Ebit / Total assets (ROA)

20.84

7.06

11.97

Ebit / Owner's equity (ROE)

119.05

32.92

36.02

Ebit / Total revenue (NPM)

15.15

4.84

7.56

Gross profit / Total revenue (GPM)

19.54

8.89

14.67

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Low

Payment status

 

Average

Financial Situation

 

Average

Development trend

 

Positive

Litigation data

 

No Recorded

Bankruptcy

 

No Recorded

Payment Methods

 

T/T, L/C

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Normal

 

 

 


 

INTERPRETATION ON THE SCORES

 

The subject was established in 1998 under name THANH HUNG TRADING & SERVICE COMPANY LIMITED. In 2006, the subject has changed into THANH HUNG COMPANY LIMITED. At present, the subject is operating under business registration no. 1100745093 (the same with tax code)

The subject is specializing in manufacturing and trading pesticides, herbicides, fertilizer. Besides domestic, the subject imports goods and materials from China and India. Its main customers are locating at Western provinces.

Premises and facilities of the subject are normal. The registration address (Production Factory) is locating at Duc Hoa I - Hanh Phuc Industrial Zone in Long An province. Currently, all transactions of the subject are locating at no. 96/6C Tran Hung Dao Street - My Phuoc Ward, Long Xuyen City, An Giang Province, Vietnam. This location is also private house of Ms. Le Thi Tuyet – a shareholder of the subject. She is elder sister of Mr. Le Thien Nhon. Operation in long times in industry, its market share is stable.

As reported financial data, its annual revenue and profit were increased regularly. Especially, its profit in 2011 was increased high compared to 2010. Its financial data in 2012 is not available. However, according to Mr. Tran Huy Dat – chief accountant, its revenue in 2012 was VND 120 billion and the profit was decreased compared to 2011.

In overview, the position in industry of the subject is medium. Its financial capacity is normal. At present, the subject has capacity to meet small transactions.

 

 

------------ APPENDIX  ----------

 

INDUSTRY DATA

 

Industry code

GDP 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.54.30

UK Pound

1

Rs.82.88

Euro

1

Rs.70.80

 

 

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.