MIRA INFORM REPORT

 

 

Report Date :

19.08.2013

 

IDENTIFICATION DETAILS

 

Name :

VIET NA INOX COMPANY LIMITED

 

 

Registered Office :

No. 424 Tan Ky Tan Quy Str, Son Ky Ward, Tan Phu District, Ho Chi Minh City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Established:

2004

 

 

Com. Reg. No.:

0303266714

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Subject specializes in importing and selling stainless steel including stainless steel bars, stainless steel wires, household articles, stainless steel chains, stainless steel strips, stainless steel TIG/MIG wires, tools & molding steel.

 

 

No. of Employees :

35

 

 

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)

 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 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 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

Registration English Name

 

VIET NA INOX COMPANY LIMITED

Registration Vietnamese Name

 

CONG TY TNHH INOX VIET NA

Registration Short name

 

VINAINOX

Type of Business

 

Limited liability company

Year Established

 

2004

Business Registration No

 

0303266714

Date of the lastest (10th)

 

17 Jul 2012

Place of Registration

 

Business Registration Office - Planning and Investment Department of Hochiminh City

Chartered capital

 

VND 5,000,000,000

Tax code

 

0303266714

Total Employees

 

35

 

 

Historical Identification & Legal form

 

List

Changed Items

1

Subject has got former Address: No.489 Hoang Van Thu Str, Ward 4, Tan Binh District, Hochiminh City, Vietnam

Changed to: No. 424 Tan Ky Tan Quy Str, Son Ky Ward, Tan Phu District, Hochiminh City, Vietnam

2

Subject has got former Business Registration No: 4102021464 issued on 14 Apr 2004

Changed to: 0303266714

3

Subject has got former Chartered capital: VND 2,000,000,000

Changed to: VND 5,000,000,000

 

 

ADDRESSES

 

Head Office

Address

 

No. 131/6/1/40D11 Tay Lan Str, Quarter 7, Binh Tri Dong A Ward, Binh Tan District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 7306 3839

Fax

 

(84-8) 7300 2525

Email

 

vietnainox@vnn.vn

Website

 

www.vietnainox.com

 

Registration Address

Address

 

No. 424 Tan Ky Tan Quy Str, Son Ky Ward, Tan Phu District, Ho Chi Minh City, Vietnam

Email

 

vietnainox@vnn.vn

Website

 

www.vietnainox.com

Branch in Da Nang

Address

 

Lo 4-C8, Hoa Phat 4 Residential Area, Hoa An Ward, Cam Le District, Da Nang City, Vietnam

 

 

DIRECTORS

 

1. NAME

 

Mr. HA KIM THANG

Position

 

Director

Date of Birth

 

08 Sep 1973

ID Number/Passport

 

211660743

ID Issue Date

 

05 Jul 2005

ID Issue Place

 

Police Station of Binh Dinh Province

Resident

 

Group 6, Area 3 Bui Thi Xuan Ward, Qui Nhon City, Binh Dinh Province, Vietnam

Current resident

 

No. 29 Road No. 17, Ward 4, District 4, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Qualification

 

Management

 

2. NAME

 

Mr. HA KIM AN

Position

 

Deputy Director

Resident

 

Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Qualification

 

Management

Note:  He is older brother of Mr. HA KIM THANG

 

3. NAME

 

Ms. VU THI BICH HANG

Position

 

Chief Accountant

Resident

 

Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84-8) 7306 3839 (ext 113)

Email

 

vtbhang1208@yahoo.com.vn 

Qualification

 

Accounting

 

 

BUSINESS NATURE AND ACTIVITIES

 

Subject specializes in importing and selling stainless steel including stainless steel bars, stainless steel wires, household articles, stainless steel chains, stainless steel strips, stainless steel TIG/MIG wires, tools & molding steel.
Subject registered in:
Growing of other perennial crops
Plant propagation
Marine aquaculture
Construction of buildings

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Inox, steel

·         Market

 

India, EU, Japan, Taiwan, Korea.

·         Ratio

 

100%

 

EXPORT:

Note: N/A

 

 

BANKERS

 

1. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK

Address

 

No.303 Nguyen Son Str, Phu Thanh Ward, Tan Phu District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3978 6034

Fax

 

(84-8) 3978 6034

 

2. ASIA COMMERCIAL JOINT STOCK  BANK

Address

 

No. 442 Nguyen Thi Minh Khai Str, Ward 5, District 3, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3929 0999 , 3833 4085 , 3839 5179

Fax

 

(84-8) 3839 9885

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. HA KIM THANG

Position

 

Director

Date of Birth

 

08 Sep 1973

ID Number/Passport

 

211660743

Issued on

 

05 Jul 2005

Issued Place

 

Police Station of Binh Dinh Province

Resident

 

Group 6, Area 3, Bui Thi Xuan Ward, Qui Nhon City, Binh Dinh Province, Vietnam

Current Resident

 

No. 29 Road No. 17, Ward 4, District 4, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 4,950,000,000

Percentage

 

99%

 

2. NAME

 

Mr. HA KIM QUY

ID Number/Passport

 

211689700

Issued Place

 

Police Station of Binh Dinh Province

Resident

 

Group 6, Area 3 Bui Thi Xuan Ward, Qui Nhon City, Binh Dinh Province, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 50,000,000

Percentage

 

1%

 

 

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

57,595,000,000

30,262,000,000

I. Cash and cash equivalents

2,898,000,000

3,938,000,000

1. Cash

2,898,000,000

3,938,000,000

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

19,430,000,000

10,257,000,000

1. Receivable from customers

13,081,000,000

8,824,000,000

2. Prepayments to suppliers

0

0

3. Inter-company receivable

6,349,000,000

1,433,000,000

4. Receivable according to the progress of construction

0

0

5. Other receivable

0

0

6. Provisions for bad debts

0

0

IV. Inventories

26,482,000,000

13,140,000,000

1. Inventories

26,482,000,000

13,140,000,000

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

8,785,000,000

2,927,000,000

1. Short-term prepaid expenses

1,096,000,000

0

2. VAT to be deducted

1,145,000,000

971,000,000

3. Taxes and other accounts receivable from the State

2,904,000,000

138,000,000

4. Other current assets

3,640,000,000

1,818,000,000

B. LONG-TERM ASSETS

2,710,000,000

1,821,000,000

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

2,710,000,000

1,821,000,000

1. Tangible assets

2,710,000,000

1,821,000,000

- Historical costs

3,300,000,000

2,152,000,000

- Accumulated depreciation

-590,000,000

-331,000,000

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

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

0

0

1. Goodwill

0

0

TOTAL ASSETS

60,305,000,000

32,083,000,000

 

LIABILITIES

A- LIABILITIES

34,230,000,000

19,324,000,000

I. Current liabilities

33,928,000,000

19,039,000,000

1. Short-term debts and loans

32,994,000,000

15,469,000,000

2. Payable to suppliers

0

1,592,000,000

3. Advances from customers

0

772,000,000

4. Taxes and other obligations to the State Budget

934,000,000

398,000,000

5. Payable to employees

0

0

6. Accrued expenses

0

808,000,000

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

302,000,000

285,000,000

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

302,000,000

285,000,000

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

0

0

9. Science and technology development fund

0

0

B- OWNER’S EQUITY

26,075,000,000

12,759,000,000

I. OWNER’S EQUITY

26,075,000,000

12,759,000,000

1. Capital

5,000,000,000

5,000,000,000

2. Share premiums

0

0

3. Other sources of capital

0

0

4. Treasury stocks

50,000,000

50,000,000

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

21,025,000,000

7,709,000,000

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

60,305,000,000

32,083,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

1. Total Sales

179,592,000,000

2. Deduction item

981,000,000

3. Net revenue

178,611,000,000

4. Costs of goods sold

151,313,000,000

5. Gross profit

27,298,000,000

6. Financial income

263,000,000

7. Financial expenses

7,674,000,000

- In which: Loan interest expenses

3,077,000,000

8. Selling expenses

1,302,000,000

9. Administrative overheads

5,325,000,000

10. Net operating profit

13,260,000,000

11. Other income

269,000,000

12. Other expenses

155,000,000

13. Other profit /(loss)

114,000,000

14. Total accounting profit before tax

13,374,000,000

15. Current corporate income tax

59,000,000

16. Deferred corporate income tax

0

17. Interest from subsidiaries/related companies

0

18. Profit after tax

13,315,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

Average Industry

Current liquidity ratio

1.70

1.50

Quick liquidity ratio

0.92

0.73

Inventory circle

7.64

17.83

Average receive period

39.71

31.40

Utilizing asset performance

2.96

3.97

Liability by total assets

56.76

62.51

Liability by owner's equity

131.28

255.82

Ebit / Total assets (ROA)

27.28

12.98

Ebit / Owner's equity (ROE)

63.09

42.26

Ebit / Total revenue (NPM)

9.16

4.14

Gross profit / Total revenue (GPM)

15.20

6.16

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Medium

Payment status

 

Average

Financial Situation

 

Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Cash or through the bank, L/C, T/T

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Normal

 

 

 

 

 

INTERPRETATION ON THE SCORES

 

VIET NA INOX COMPANY LIMITED was established in 2004. Subject is now operating under business registration No. 0303266714 and chartered capital VND 5 billion. Subject specializes in importing and selling stainless steel. Subject is an exclusive distributor for Garg Sales Co., Pvt (India).

Subject registered address at No. 424 Tan Ky Tan Quy Street, Son Ky Ward, Tan Phu District, Ho Chi Minh City. However, its head office is at 131/6/1/40D11 Tay Lan Street, Quarter 7, Binh Tri Dong A Ward, Binh Tan District, Ho Chi Minh City. Subject moved to this place in the beginning of 2013. According to Ms. Vu Thi Bich Hang – chief accountant of subject, it is now doing procedure to change new registration address. Besides, subject has a branch in Da Nang City.

The management capacity of the subject is fairly good. The business operation is busy. According to the financial data, the subject operated fair. Turnover and profit reached to VND 179,592,000,000 and VND 13,315,000,000 respectively in 2011. Financial ratios were at acceptable level. Ms. Hang said that total sales in 2012 of subject increased about 10% compared to 2011. However, profit 2012 decreased a half.

In general, the subject is able to meet small – normal commitments.

------------ APPENDIX 1 ----------

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.61.81

UK Pound

1

Rs.96.56

Euro

1

Rs.82.45

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.