MIRA INFORM REPORT

 

 

Report Date :

21.08.2013

 

IDENTIFICATION DETAILS

 

Name :

SA CHI COMPANY LIMITED

 

 

Registered Office :

Area 3, Hai Hoa Ward, Cai City, Quang Ninh Province

 

 

Country :

Viet Nam

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

2005

 

 

Com. Reg. No.:

5700537166

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Specialize in trust import and export. It acts as import-export agent, intermediary. It often imports and exports goods on behalf and demand of other companies.

 

 

No. of Employees :

20

 

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 – 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 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

 

SA CHI COMPANY LIMITED

Vietnamese Name

 

CONG TY TNHH SA CHI

Short name

 

SCI CO., LTD

Type of Business

 

Limited liability company

Year Established

 

2005

Business Registration No.

 

5700537166

Date of Registration

 

08 Apr 2010

Place of Registration

 

Quang Ninh Planning and Investment Department

Chartered capital

 

VND 8,000,000,000

Status

 

Unlisted

Tax code

 

5700537166

Total Employees

 

20

Size

 

Small

Note: The correct name of the subject is above. There is a space between SA and CHI.

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former chartered capital: 4,300,000,000 VND

Changed to: 8,000,000,000 VND

08 Apr 2010

2

Subject has got former Business Registration No: 2202000870 dated 25 March 2005

Changed to: 5700537166

08 Apr 2010

3

Subject has got former Address: No. 1, Le Hong Phong, Mong Cai City, Quang Ninh Province, Vietnam

Changed to: Area 3, Hai Hoa Ward, Mong Cai City, Quang Ninh Province, Vietnam

N/A

 

ADDRESSES

 

Head Office

Address

 

Area 3, Hai Hoa Ward, Mong Cai City, Quang Ninh Province, Vietnam

Telephone

 

(84-33) 3778765

Fax

 

(84-33) 3778898

 

Branch in Ho Chi Minh

Address

 

No. 26-27, Tran Van Kieu Street, Ward 10, 5 District, Ho Chi Minh City, Vietnam

 

 

DIRECTORS

 

1. NAME

 

Mr. TRAN VAN SON

Position

 

Director

Date of Birth

 

20 Jan 1972

ID Number/Passport

 

022706503

ID Issue Date

 

09 Jul 1996

ID Issue Place

 

Ho Chi Minh police

Resident

 

44B Ham Tu, 1 Ward, 5 District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Ms. LE THUY QUYNH

Position

 

Deputy Director

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject specializes in trust import and export. It acts as import-export agent, intermediary. It often imports and exports goods on behalf and demand of other companies.

 

 

IMPORT & EXPORT ACTIVITIES

 

EXPORT:

·         Types of products

 

Agricultural products

·         Market

 

China

·         Mode of payment

 

TTR

 

 

IMPORT:

·         Types of products

 

Agricultural products

·         Market

 

India...

·         Mode of payment

 

TTR

 

 

BANKERS

 

JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM MONG CAI BRANCH

Address

 

No.2 Van Don, Mong Cai City, Quang Ninh Province, Vietnam

Telephone

 

(84-33) 3882193

Fax

 

(84-33) 3881676

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. TRAN VAN SON

Position

 

Director

Date of Birth

 

20 Jan 1972

ID Number/Passport

 

022706503

Issued on

 

09 Jul 1996

Issued Place

 

Ho Chi Minh police

Resident

 

44B Ham Tu, 1 Ward, 5 District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 4,400,000,000

Percentage

 

55%

 

2. NAME

 

Ms. DAO THI KHANH

ID Number/Passport

 

100519745

Resident

 

Group 3 Hai Hoa Ward, Mong Cai City, Quang Ninh Province, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 3,000,000,000

Percentage

 

37.5%

 

3. NAME

 

Mr. TRAN TRUNG THUY

ID Number/Passport

 

022756594

Resident

 

44B Ham Tu, 1 Ward, 5 District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 400,000,000

Percentage

 

5%

 

4. NAME

 

Mr. DO DUY CHUNG

ID Number/Passport

 

100774793

Resident

 

Group 2 Trung Vuong Ward, Uong Bi District, Quang Ninh Province, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 200,000,000

Percentage

 

2.5%

 

 

FINANCIAL DATA

 

The financial data of the subject in 2010 is not available in our source.

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2012

31/12/2011

31/12/2009

Number of weeks

52

52

52

ASSETS

A – CURRENT ASSETS

22,928,000,000

20,118,000,000

60,343,000,000

I. Cash and cash equivalents

1,646,000,000

1,488,000,000

1,169,000,000

1. Cash

1,646,000,000

1,488,000,000

1,169,000,000

2. Cash equivalents

0

0

0

II. Short-term investments

20,138,000,000

0

0

1. Short-term investments

8,674,000,000

0

0

2. Provisions for devaluation of short-term investments

11,464,000,000

0

0

III. Accounts receivable

687,000,000

17,895,000,000

15,951,000,000

1. Receivable from customers

687,000,000

8,655,000,000

8,881,000,000

2. Prepayments to suppliers

0

9,240,000,000

7,070,000,000

3. Inter-company receivable

0

0

0

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

0

0

0

6. Provisions for bad debts

0

0

0

IV. Inventories

0

484,000,000

40,476,000,000

1. Inventories

0

484,000,000

40,476,000,000

2. Provisions for devaluation of inventories

0

0

0

V. Other Current Assets

457,000,000

251,000,000

2,747,000,000

1. Short-term prepaid expenses

0

251,000,000

471,000,000

2. VAT to be deducted

457,000,000

0

2,276,000,000

3. Taxes and other accounts receivable from the State

0

0

0

4. Other current assets

0

0

0

B. LONG-TERM ASSETS

10,615,000,000

7,485,000,000

7,788,000,000

I. Long term accounts receivable

0

0

0

1. Long term account receivable from customers

0

0

0

2. Working capital in affiliates

0

0

0

3. Long-term inter-company receivable

0

0

0

4. Other long-term receivable

0

0

0

5. Provisions for bad debts from customers

0

0

0

II. Fixed assets

9,308,000,000

7,446,000,000

7,725,000,000

1. Tangible assets

8,623,000,000

6,796,000,000

7,075,000,000

- Historical costs

11,639,000,000

10,799,000,000

8,696,000,000

- Accumulated depreciation

-3,016,000,000

-4,003,000,000

-1,621,000,000

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

685,000,000

650,000,000

650,000,000

- Initial costs

685,000,000

650,000,000

650,000,000

- Accumulated amortization

0

0

0

4. Construction-in-progress

0

0

0

III. Investment property

0

0

0

Historical costs

0

0

0

Accumulated depreciation

0

0

0

IV. Long-term investments

0

0

0

1. Investments in affiliates

0

0

0

2. Investments in business concerns and joint ventures

0

0

0

3. Other long-term investments

0

0

0

4. Provisions for devaluation of long-term investments

0

0

0

V. Other long-term assets

1,307,000,000

39,000,000

63,000,000

1. Long-term prepaid expenses

1,307,000,000

39,000,000

63,000,000

2. Deferred income tax assets

0

0

0

3. Other long-term assets

0

0

0

VI. Goodwill

0

 

 

1. Goodwill

0

 

 

TOTAL ASSETS

33,543,000,000

27,603,000,000

68,131,000,000

 

LIABILITIES

A- LIABILITIES

22,103,000,000

16,658,000,000

62,644,000,000

I. Current liabilities

20,776,000,000

16,558,000,000

60,844,000,000

1. Short-term debts and loans

9,902,000,000

8,492,000,000

9,152,000,000

2. Payable to suppliers

346,000,000

202,000,000

659,000,000

3. Advances from customers

10,104,000,000

7,421,000,000

782,000,000

4. Taxes and other obligations to the State Budget

138,000,000

144,000,000

51,000,000

5. Payable to employees

0

0

0

6. Accrued expenses

0

0

0

7. Inter-company payable

0

0

0

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

286,000,000

299,000,000

50,200,000,000

10. Provisions for short-term accounts payable

0

0

0

11. Bonus and welfare funds

0

0

 

II. Long-Term Liabilities

1,327,000,000

100,000,000

1,800,000,000

1. Long-term accounts payable to suppliers

0

0

0

2. Long-term inter-company payable

0

0

0

3. Other long-term payable

0

0

0

4. Long-term debts and loans

1,327,000,000

100,000,000

1,800,000,000

5. Deferred income tax payable

0

0

0

6. Provisions for unemployment allowances

0

0

0

7. Provisions for long-term accounts payable

0

0

0

8. Unearned Revenue

0

 

 

9. Science and technology development fund

0

 

 

B- OWNER’S EQUITY

11,440,000,000

10,945,000,000

5,487,000,000

I. OWNER’S EQUITY

11,440,000,000

10,945,000,000

5,487,000,000

1. Capital

8,000,000,000

8,000,000,000

4,300,000,000

2. Share premiums

0

0

0

3. Other sources of capital

0

0

0

4. Treasury stocks

0

0

0

5. Differences on asset revaluation

0

0

0

6. Foreign exchange differences

0

0

0

7. Business promotion fund

0

0

0

8. Financial reserved fund

0

0

0

9. Other funds

0

0

0

10. Retained earnings

3,440,000,000

2,945,000,000

1,187,000,000

11. Construction investment fund

0

0

0

12. Business arrangement supporting fund

0

 

 

II. Other sources and funds

0

0

0

1. Bonus and welfare funds (Elder form)

 

0

0

2. Sources of expenditure

0

0

0

3. Fund to form fixed assets

0

0

0

MINORITY’S INTEREST

0

0

 

TOTAL LIABILITIES AND OWNER’S EQUITY

33,543,000,000

27,603,000,000

68,131,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2012

FY2011

FY2009

1. Total Sales

474,945,000,000

260,368,000,000

114,873,000,000

2. Deduction item

0

0

0

3. Net revenue

474,945,000,000

260,368,000,000

114,873,000,000

4. Costs of goods sold

456,487,000,000

248,333,000,000

105,221,000,000

5. Gross profit

18,458,000,000

12,035,000,000

9,652,000,000

6. Financial income

941,000,000

2,046,000,000

4,000,000

7. Financial expenses

772,000,000

1,993,000,000

715,000,000

- In which: Loan interest expenses

0

0

0

8. Selling expenses

16,969,000,000

9,678,000,000

7,725,000,000

9. Administrative overheads

935,000,000

975,000,000

595,000,000

10. Net operating profit

723,000,000

1,435,000,000

621,000,000

11. Other income

1,306,000,000

1,138,000,000

0

12. Other expenses

1,430,000,000

1,183,000,000

0

13. Other profit /(loss)

-124,000,000

-45,000,000

0

14. Total accounting profit before tax

599,000,000

1,390,000,000

621,000,000

15. Current corporate income tax

105,000,000

243,000,000

109,000,000

16. Deferred corporate income tax

0

0

0

17. Interest from subsidiaries/related companies

 

 

 

18. Profit after tax

494,000,000

1,147,000,000

512,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2012

FY2011

FY2009

Average Industry

Current liquidity ratio

1.10

1.22

0.99

1.25

Quick liquidity ratio

1.10

1.19

0.33

0.71

Inventory circle

-

513.08

2.60

20.29

Average receive period

0.53

25.09

50.68

61.81

Utilizing asset performance

14.16

9.43

1.69

2.53

Liability by total assets

65.89

60.35

91.95

69.15

Liability by owner's equity

193.21

152.20

1,141.68

261.12

Ebit / Total assets (ROA)

1.79

5.04

0.91

9.66

Ebit / Owner's equity (ROE)

5.24

12.70

11.32

41.58

Ebit / Total revenue (NPM)

0.13

0.53

0.54

4.49

Gross profit / Total revenue (GPM)

3.89

4.62

8.40

9.69

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

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Medium

Payment status

 

Average

Financial Situation

 

Above Average

Development trend

 

Developing

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

The subject mainly pays in term of TTR

Sale Methods

 

To contracts

Public opinion

 

Normal

 

 

 

INTERPRETATION ON THE SCORES

 

SA CHI COMPANY LIMITED was found in 2005 under the business registration No. 2202000870 dated 25 March 2005 by Quang Ninh Planning and Investment Department. The latest business registration No. 5700537166 was updated on 08 April 2010 for the tax code coincidence. Its current chartered capital is VND 8 billion. 

Head office is locates at Area 3, Hai Hoa Ward, Mong Cai City, Quang Ninh Province. The subject opened another branch at Tran Van Kieu Street, Ho Chi Minh City in 2010. Since establishment, it operates as a trust import and export agent. The subject does not import goods for trade or distribution, but on behalf of other companies on demand. Therefore, products imported and imported markets are various. The subject also takes over trust export, in which it acts as supplier's representative. It often exports agriculture products to China. As the subject only imports on behalf of other companies, payments for imported goods are made through other companies.

According to Mr. Son - a staff of the subject, currently, its business line has been added, including hotel and restaurant services.

Based on the latest financial statements, financial situation of the subject seems above average. Although total sales increased year on year, total assets lessened. In 2012, the total assets slumped 50% against 2009 while the revenue soared. In term of financial ratios, excepting for the profitability, the other financial factors are acceptable in relation to the average industry.

In general, the subject is a small company operating as import-export agent. Its reputation is not very remarkable in the industry. The company is only reliable for small commitments.

 

 

 

------------ 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.63.46

UK Pound

1

Rs.99.42

Euro

1

Rs.85.12

 

 

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.