MIRA INFORM REPORT

 

 

Report Date :

07.08.2013

 

IDENTIFICATION DETAILS

 

Name :

KHAM THIEN COMPANY LIMITED

 

 

Registered Office :

3E3, 30-4 Hostel, Dien Bien Phu Street, Ward 25, Binh Thanh District, Ho Chi Minh City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2009

 

 

Date of Incorporation :

25.10.1999

 

 

Com. Reg. No.:

072805

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Trading of foodstuff for cattle, agricultural aquatic products.

 

 

No. of Employees :

15

 

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 :

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

 

KHAM THIEN COMPANY LIMITED

Vietnamese Name

 

CONG TY TNHH KHAM THIEN

Trade name

 

KHAM THIEN COMPANY LTD

Type of Business

 

Limited liability company

Year Established

 

1999

Establishment Decision

 

2458/GP

Date of Issuance

 

21 Oct 1999

Place of Issuance

 

People' Commitee of Hochiminh City

Business Registration No.

 

072805

Date of Registration

 

25 Oct 1999

Place of Registration

 

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

Chartered capital

 

VND 1,000,000,000

Tax code

 

0301836239

Total Employees

 

15

 

 

ADDRESSES

 

Head Office

Address

 

3E3,30-4 Hostel, Dien Bien Phu Street, Ward 25, Binh Thanh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3512 5387 - 3899 0049

Fax

 

(84-8) 3510 6643

Email

 

khamthienco@hcm.vnn.vn

 

 

DIRECTORS

 

1. NAME

 

Mr. NGUYEN NGOC KHOI

Position

 

Director

Date of Birth

 

1966

Resident

 

No. 12 Gia Tu A Street, Kham Thien market, Dong Da District, Hanoi City - Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Mr. NGUYEN NGOC KHANG

Position

 

Deputy Director

Date of Birth

 

1958

Nationality

 

Vietnamese

 

3. NAME

 

Ms. LE THI KIM OANH

Position

 

Chief Accountant

ID Number/Passport

 

010997203

Date of Birth

 

1961

Resident

 

No. 12 Gia Tu A Street, Kham Thien market, Dong Da District, Hanoi City, Vietnam

Current Resident

 

3E3,30-4 Hostel, Dien Bien Phu Street, Ward 25, Binh Thanh District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is specializing in trading foodstuff for cattle, agricultural aquatic products

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Types of products

 

goods

Market

 

India, China, Australia

Mode of payment

 

T/T, L/C and D/P

 

EXPORT:

Types of products

 

foodstuff for cattle

Market

 

Taiwan

 

 

BANKERS

 

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM BINH THANH BRANCH

Address

 

No. 169 Dien Bien Phu str, Ward 15, Binh Thanh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3840 7927

Fax

 

(84-8) 3840 7923

 

2. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK BINH THANH BRANCH

Address

 

No.10-12 Le Quang Dinh Str, Ward 14, Binh Thanh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 35512700

Fax

 

(84-8) 35512699

 

3. ASIA COMMERCIAL JOINT STOCK BANK BINH THANH BRANCH

Address

 

No.71 Dien Bien Phu Str, Ward 15, Binh Thanh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3518 0787

Fax

 

(84-8) 3518 0788

 

4. VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT BINH THANH BRANCH

Address

 

No. 347-351 Dien Bien Phu Street, Ward 15, Binh Thanh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3511 3143

Fax

 

(84-8) 3511 7364

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. NGUYEN NGOC KHOI

Position

 

Director

Date of Birth

 

1966

Resident

 

No. 12 Gia Tu A Street, Kham Thien market, Dong Da District, Hanoi City, Vietnam

Nationality

 

Vietnamese

Percentage

 

40%

 

2. NAME

 

Ms. LE THI KIM OANH

Position

 

Chief Accountant

ID Number/Passport

 

010997203

Date of Birth

 

1961

Resident

 

No. 12 Gia Tu A Street, Kham Thien market, Dong Da District, Hanoi City, Vietnam

Current Resident

 

3E3,30-4 Hostel, Dien Bien Phu Street, Ward 25, Binh Thanh District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Percentage

 

60%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2009

31/12/2008

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

42,244,552,903

47,322,473,573

I. Cash and cash equivalents

9,359,399,283

580,444,572

1. Cash

9,359,399,283

580,444,572

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

15,307,806,294

20,057,418,705

1. Receivable from customers

13,795,643,094

19,612,058,705

2. Prepayments to suppliers

1,512,163,200

445,360,000

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

0

0

6. Provisions for bad debts

 

0

IV. Inventories

11,837,114,712

18,591,397,527

1. Inventories

11,837,114,712

18,591,397,527

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

5,740,232,614

8,093,212,769

1. Short-term prepaid expenses

0

0

2. VAT to be deducted

0

1,236,275,250

3. Taxes and other accounts receivable from the State

0

190,844,944

4. Other current assets

5,740,232,614

6,666,092,575

B. LONG-TERM ASSETS

791,510,466

937,207,266

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

791,510,466

937,207,266

1. Tangible assets

791,510,466

937,207,266

- Historical costs

1,324,186,920

1,561,689,700

- Accumulated depreciation

-532,676,454

-624,482,434

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

43,036,063,369

48,259,680,839

 

LIABILITIES

A- LIABILITIES

15,975,089,566

34,807,070,111

I. Current liabilities

9,977,089,566

25,016,930,111

1. Short-term debts and loans

2,681,212,970

0

2. Payable to suppliers

6,511,390,849

23,871,593,118

3. Advances from customers

0

133,308,660

4. Taxes and other obligations to the State Budget

-231,285,459

1,436,480

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

1,015,771,206

1,010,591,853

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

 

 

II. Long-Term Liabilities

5,998,000,000

9,790,140,000

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

5,998,000,000

9,790,140,000

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

27,060,973,803

13,452,610,728

I. OWNER’S EQUITY

27,060,973,803

13,452,610,728

1. Capital

25,000,000,000

12,000,000,000

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

0

0

7. Business promotion fund

0

0

8. Financial reserved fund

0

0

9. Other funds

1,145,448,543

853,004,958

10. Retained earnings

915,525,260

599,605,770

11. Construction investment fund

0

0

12. Business arrangement supporting fund

 

 

II. Other sources and funds

0

0

1. Bonus and welfare funds

0

0

2. Sources of expenditure

0

0

3. Fund to form fixed assets

0

0

MINORITY’S INTEREST

0

 

TOTAL LIABILITIES AND OWNER’S EQUITY

43,036,063,369

48,259,680,839

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2009

FY2008

1. Total Sales

182,317,307,607

291,399,761,640

2. Deduction item

86,923,200

267,175,105,191

3. Net revenue

182,230,384,407

24,224,656,449

4. Costs of goods sold

163,931,782,484

0

5. Gross profit

18,298,601,923

24,224,656,449

6. Financial income

289,163,684

114,479,791

7. Financial expenses

2,925,995,224

4,752,120,314

- In which: Loan interest expenses

1,237,532,392

1,154,368,891

8. Selling expenses

12,226,871,664

0

9. Administrative overheads

2,522,490,434

19,356,142,596

10. Net operating profit

912,408,285

230,873,330

11. Other income

215,655,686

578,146,085

12. Other expenses

18,336,387

0

13. Other profit /(loss)

197,319,299

578,146,085

14. Total accounting profit before tax

1,109,727,584

809,019,415

15. Current corporate income tax

0

0

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

 

 

18. Profit after tax

1,109,727,584

809,019,415

 

 

FINANCIAL RATIOS

 

Description

FY2009

FY2008

Current liquidity ratio

4.23

1.89

Quick liquidity ratio

3.05

1.15

Inventory circle

13.85

-

Average receive period

30.66

302.21

Utilizing asset performance

4.23

0.50

Liability by total assets

37.12

72.12

Liability by owner's equity

59.03

258.74

Ebit / Total assets (ROA)

5.45

4.07

Ebit / Owner's equity (ROE)

8.67

14.59

Ebit / Total revenue (NPM)

1.29

0.67

Gross profit / Total revenue (GPM)

10.04

8.31

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

N/A

Payment status

 

N/A

Financial Situation

 

Average

Development trend

 

Even

Litigation data

 

No

Bankruptcy

 

No

Payment Methods

 

T/T, L/C and D/P

Sale Methods

 

Retailer and Wholesaler

 

 

 

INTERPRETATION ON THE SCORES

 

The subject - KHAM THIEN COMPANY LIMITED was established since 1999 under business registration No. 072805 with chartered  capital of VND 1 billion. Until now, the subject has never adjusted its license. Head office is located at “3E3, 30-4 Hostel, Dien Bien Phu Street, Ward 25, Binh Thanh District, Ho Chi Minh City, Vietnam”. Total workforce is about 15 employees.

The subject is specializing in trading foodstuff for cattle, agricultural and aquatic products… The subject imports products from India and China and Australia. Being established since 1999, the subject has long development history in this field. The subject has traditional customers in Hochiminh City and neighboring provinces in Vietnam.

Management capacity of the subject is fairly good. Currently, the subject’s market share is medium. The position of the subject in the industry is average. Mr. Nguyen Ngoc Khoi – director of the subject has experience in this field for long time. In general, the subject has capacity to meet small-normal transactions.

Following is debt status of the subject in the latest days:

 

HQ Code

Acount Number

Registered Day

Debt Status

VAT Debt

(Unit: VND)

C02I02

70970

28/05/2013

Overdue

90,766,966

C02I02

59519

07/05/2013

-

56,778,128

C02I02

68422

23/05/2013

-

59,359,800

 

 

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.61.54

UK Pound

1

Rs.94.37

Euro

1

Rs.81.57

 

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 

 

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.