MIRA INFORM REPORT

 

 

Report Date :

26.04.2013

 

IDENTIFICATION DETAILS

 

Name :

S.D.K Company Limited

 

 

Registered Office :

Lot E6D, Viet Huong 2 Industrial Park, An Tay Ward, Ben Cat District, Binh Duong Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2009

 

 

Year of Establishment :

2008

 

 

Legal Form :

Limited liability company (Foreign Invested Company)

 

 

Line of Business :

The subject specializes in manufacturing hook and loop velcro tape.

 

 

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 :

Slow

 

 

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

 

English Name

 

S.D.K COMPANY LIMITED

Vietnamese Name

 

CONG TY TNHH S.D.K

Type of Business

 

Limited liability company (Foreign Invested Company)

Year Established

 

2008

Investment Certificate No

 

462045000374

Date Of Issuance

 

14 Jan 2008

Place of Issuance

 

Management Board of Industrial Zones of Binh Duong Province

Registered Investment Capital

 

USD 2,000,000

Chartered capital

 

USD 2,000,000

Investment Duration

 

45 years

Tax code

 

3700866752

Total Employees

 

100

 

 

 

ADDRESSES

 

Head Office

Address

 

Lot E6D, Viet Huong 2 Industrial Park, An Tay Ward, Ben Cat District, Binh Duong Province, Vietnam

Telephone

 

(84-650) 3579 113 - 3579 112

Fax

 

(84-650) 3579 110

Email

 

sdk@vnn.vn

 

 

 

DIRECTORS

 

1. NAME

 

Mr. LIM CHAE HWAN

Position

 

Director

ID Number/Passport

 

KN0719374

Resident

 

Binh Duong Province, Vietnam

Nationality

 

Korean

 

2. NAME

 

Ms. NGUYEN THI THU HA

Position

 

Sales Manager

Resident

 

Binh Duong Province, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 907 501 812

Email

 

miathuha@gmail.com 

 

3. NAME

 

Ms. HO THI HIEN

Position

 

Chief Accountant

Resident

 

Binh Duong Province, Vietnam

Nationality

 

Vietnamese

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject specializes in manufacturing hook and loop velcro tape.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Market

 

Korea

 

EXPORT:

·         Market

 

Korea, India, Cambodia...

 

 

 

BANKERS

 

JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM BINH DUONG BRANCH

Address

 

No. 314 Binh Duong Highway Phu Hoa Ward, Thu Dau Mot City, Binh Duong Province, Vietnam

Telephone

 

(84-650) 3898 989

Fax

 

(84-650) 3842 321

 

 

 

SHAREHOLDERS

 

NAME

 

Mr. LIM CHAE HWAN

Position

 

Director

ID Number/Passport

 

KN0719374

Resident

 

Binh Duong Province, Vietnam

Nationality

 

Korean

Percentage

 

100%

 

 

 

FINANCIAL HIGHLIGHT

 

BALANCE SHEET

Unit: Million VND

Balance sheet date

31/12/2009

Number of weeks

52

ASSETS

A. Current Asset

12,782

Receivables

7,404

Inventory

3,047

Cash and other current assets

2,331

B. Long term Asset

25,868

1. Long term account receivable

1,258

 

2. Fixed assets

24,610

Tangible fixed assets

23,908

+ Original cost

25,154

+ Accumulated depreciation value

-1,246

Financial leasehold assets

0

Intangible fixed assets

0

Construction in progress and other long term asset

702

TOTAL ASSETS

38,650

 

LIABILITIES

Payable loans

26,013

Owner’s Equity

12,637

TOTAL LIABILITY AND EQUITY

38,650

 

PROFIT & LOSS STATEMENT

 

1. Total Sales

4,311

2. Deduction item

0

3. Net revenue

4,311

4. Costs of goods sold

6,897

5. Gross profit

-2,586

6. Financial income

29

7. Financial expenses

25

8. Selling expenses and Administrative overheads

1,506

9. Net operating profit

-4,088

10. Other income

5

11. Other expenses

0

12. Other profit /(loss)

5

13. Total accounting profit before tax

-4,083

14. Current corporate income tax

0

15. Deferred corporate income tax

0

16. Interest from subsidiaries/related companies

0

17. Profit after tax

-4,083

 

 

 

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

 

Wholesaler

Public opinion

 

Normal

 

 

 

 

INTERPRETATION ON THE SCORES

 

The subject - S.D.K COMPANY LIMITED - is a 100% foreign invested company which was established in the beginning of year 2008. The subject is operating under Investment Certificate No. 462045000374 issued by Management Board of Industrial Zones of Binh Duong Province with chartered capital of USD 2 million. Mr. Lim Chae Hwan is Director and Legal Representative of the subject.

The subject ‘s office and factory is located at Lot E6D, Viet Huong 2 Industrial Park, An Tay Ward, Ben Cat District, Binh Duong Province, Vietnam. The factory is well-equipped by using machines from original Jakob Muller AG, Frick, Switzerland for weaving. It also got “OKO-TEX Standard” certificate issued by FITI Testing-Research Institute.

The subject is a manufacturer of Hook & Loop Velcro tape in Vietnam. The subject imports materials for its production mainly from Korea. Products of the subject are not only consumed in domestic market but also in foreign market. It exports to Korea, India, Cambodia…

The subject is operating at medium scale with about 100 employees. Its position in the industry is average. The management capacity is acceptable. In our opinion, the subject has future prospect of development.

 

 

 

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


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.17

UK Pound

1

Rs.82.99

Euro

1

Rs.70.62

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.