MIRA INFORM REPORT

 

 

Report Date :

30.08.2013

 

IDENTIFICATION DETAILS

 

Name :

SPITFIRE CONTROLS (VIETNAM) COMPANY LTD 

 

 

Registered Office :

No. 13, Lot 103/4, Road No. 5, Amata Industrial Park, Long Binh Ward, Bien Hoa City, Dong Nai Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2010

 

 

Year of Establishments:

2005

 

 

Legal Form :

Foreign invested company (Limited liability company)

 

 

Line of Business :

producer of all kinds of electronics boards for the home appliances including dishwasher, blender, washing machine

 

 

No. of Employees :

250

 

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 :

Unknown 

 

 

Litigation :

---

 

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

 

Current legal status

English Name

 

SPITFIRE CONTROLS (VIETNAM) COMPANY LTD

Vietnamese Name

 

CONG TY TRACH NHIEM HUU HAN SPITFIRE CONTROLS (VIET NAM)

Type of Business

 

Foreign invested company (Limited liability company)

Year Established

 

2005

Investment Certificate No

 

472043000625

Date Of Issuance

 

18 Aug 2008

Place of Issuance

 

Dong Nai Industrial Zones Authority

Registered Investment Capital

 

USD 4,695,824

Chartered capital

 

USD 508,747

Investment Duration

 

50 years

Tax code

 

3600738387

Total Employees

 

250

 

Historical Identification & Legal form

List

Changed Items

Date of changes

1

Subject has got former Investment Certificate No: 402/GP-KCN-DN

Changed to: 472043000625

18 Aug 2008

 

 

 

Company ADDRESSES

 

Head Office

Address

 

No. 13, Lot 103/4, Road No. 5, Amata Industrial Park, Long Binh Ward, Bien Hoa City, Dong Nai Province, Vietnam

Telephone

 

(84-61) 3936 801

Fax

 

(84-61) 3936 838

 


 

DIRECTORS

 

1. NAME

 

Mr. DO NGOC PHUONG

Position

 

General Director

Date of Birth

 

26 Oct 1955

ID Number/Passport

 

020127665

ID Issue Date

 

29 Jul 1994

ID Issue Place

 

Police station of Hochiminh City

Resident

 

No. 63/67 Nguyen Bieu Street, Ward 1, District 5, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Qualification

 

Management

 

2. NAME

 

Ms. NGUYEN THI THUY HONG

Position

 

Chief Accountant

Resident

 

Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Qualification

 

Bachelor

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject specializes in producing all kinds of electronics boards for the home appliances including dishwasher, blender, washing machine.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Market

 

China, Hong Kong, Taiwan, Singapore, USA

 

EXPORT:

·         Market

 

USA

·         Ratio

 

100%

 

 

BANKERS

 

JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM BIEN HOA BRANCH

Address

 

No 22 No 3A ,Bien Hoa II industrial park, Bien Hoa City, Dong Nai Province, Vietnam

Telephone

 

(84-61) 3991 949

Fax

 

(84-61) 3991 947

 

 

SHAREHOLDERS

 

NAME

 

SPITFIRE CONTROLS (CAYMAN) CO., LTD

Address

 

Cayman Islands

Percentage

 

100%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One USD

Balance sheet date

31/12/2010

31/12/2009

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

1,405,885

1,150,877

I. Cash and cash equivalents

221,250

31,485

1. Cash

221,250

31,485

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

211,681

474,746

1. Receivable from customers

195,749

474,680

2. Prepayments to suppliers

14,603

0

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

1,329

66

6. Provisions for bad debts

0

0

IV. Inventories

971,466

627,902

1. Inventories

971,466

627,902

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

1,488

16,744

1. Short-term prepaid expenses

1,409

12,034

2. VAT to be deducted

0

0

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

79

4,710

B. LONG-TERM ASSETS

455,052

540,464

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

358,200

386,182

1. Tangible assets

341,695

364,726

- Historical costs

699,243

636,839

- Accumulated depreciation

-357,548

-272,113

2. Financial leasehold assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

3. Intangible assets

16,505

21,456

- Initial costs

39,611

39,611

- Accumulated amortization

-23,106

-18,155

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

96,852

154,282

1. Long-term prepaid expenses

52,612

110,042

2. Deferred income tax assets

0

0

3. Other long-term assets

44,240

44,240

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

1,860,937

1,691,341

 

LIABILITIES

A- LIABILITIES

3,038,915

3,028,339

I. Current liabilities

576,440

1,851,101

1. Short-term debts and loans

0

1,287,830

2. Payable to suppliers

531,558

522,224

3. Advances from customers

0

0

4. Taxes and other obligations to the State Budget

6,080

4,496

5. Payable to employees

32,445

26,810

6. Accrued expenses

5,782

7,905

7. Inter-company payable

0

0

8. Payable according to the progress of construction contracts

0

0

9. Other payable

575

1,836

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

0

0

II. Long-Term Liabilities

2,462,475

1,177,238

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

2,461,843

1,174,013

5. Deferred income tax payable

0

0

6. Provisions for unemployment allowances

632

3,225

7. Provisions for long-term accounts payable

0

0

8. Unearned Sale

0

0

9. Science and technology development fund

0

0

B- OWNER’S EQUITY

-1,177,978

-1,336,998

I. OWNER’S EQUITY

-1,177,978

-1,336,998

1. Capital

508,147

508,147

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

0

0

10. Retained earnings

-1,686,125

-1,845,145

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

1,860,937

1,691,341

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2010

FY2009

1. Total Sales

4,119,435

2,352,002

2. Deduction item

0

0

3. Net sale

4,119,435

2,352,002

4. Costs of goods sold

3,374,026

2,291,396

5. Gross profit

745,409

60,606

6. Financial income

13,660

20,150

7. Financial expenses

172

7,140

- In which: Loan interest expenses

 

 

8. Selling expenses

167,164

87,700

9. Administrative overheads

432,304

309,043

10. Net operating profit

159,429

-323,127

11. Other income

0

17,699

12. Other expenses

409

20,118

13. Other profit /(loss)

-409

-2,419

14. Total accounting profit before tax

159,020

-325,546

15. Current corporate income tax

0

0

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

159,020

-325,546

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2010

FY2009

Average Industry

Current liquidity ratio

2.44

0.62

1.73

Quick liquidity ratio

0.75

0.28

1.01

Inventory circle

4.22

3.65

4.27

Average receive period

18.76

73.67

52.35

Utilizing asset performance

2.21

1.39

1.19

Liability by total assets

163.30

179.05

54.59

Liability by owner's equity

-257.98

-226.50

119.39

Ebit / Total assets (ROA)

8.55

-19.25

6.55

Ebit / Owner's equity (ROE)

-13.50

24.35

20.65

Ebit / Total sale (NPM)

3.86

-13.84

4.82

Gross profit / Total sale (GPM)

18.09

2.58

13.12

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

 

 

CASH FLOW STATEMENT

(Indirect method)

Items

FY2010

FY2009

I. Cash flows from operating activities

1. Profit before tax

159,020

-325,546

2. Adjustments

 

 

- Depreciation and amortization

90,959

89,856

- Provisions

 

 

- Unrealized foreign exchange difference

171

742

- Gain/loss from investing activities

-164

1,269

- Interest expense

 

 

3. Operating profit before movements in working capital

249,986

-233,679

- (Increase)/Decrease in receivables

267,780

-429,915

- (Increase)/Decrease in inventories

-343,564

238,725

- Increase/(Decrease) in accounts payable

9,298

158,718

- (Increase)/Decrease in prepaid expenses

68,055

52,953

- Interest paid

 

 

- Corporate income tax paid

 

 

- Other cash inflows

 

 

- Other cash outflows

 

-84

Net cash from (used in) operating activities

251,555

-213,282

II. Cash flows from investing activities

1. Acquisition of fixed assets and other long - term assets

-63,387

-7,621

2. Proceeds from fixed assets and long - term assets disposal

 

223

3. Cash outflow for lending, buying debt instruments of other companies

 

 

4. Cash recovered from lending, selling debt instruments of other companies

 

 

5. Investment in other entities

 

 

6. Cash recovered from investments in other entities

 

 

7. Interest income, dividend and profit paid

574

801

Net cash from (used in) investing activities

-62,813

-6,597

III. Cash flows from financing activities

1. Proceeds from issuing stocks, receiving capital from owners

 

 

2. Capital withdrawal, buying back issued stocks

 

 

3. Proceeds from borrowings

 

 

4. Repayment of borrowings

 

 

5. Repayment of obligations under finance leased

 

 

6. Dividends paid

 

 

Net cash from (used in) financing activities

 

 

Net increase/(decrease) in cash and cash equivalents

188,742

-219,879

Cash and cash equivalents at beginning of year

31,485

251,250

Effect from changing foreign exchange rate

1,023

114

Cash and cash equivalents at end of year

221,250

31,485

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Medium

Payment status

 

Average

Financial Situation

 

Average

Development trend

 

Stable

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Direct payment or through its corresponding bank, T/T

Sale Methods

 

Wholesaler

Public opinion

 

Normal

 

 

 

 

INTERPRETATION ON THE SCORES

 

The subject - SPITFIRE CONTROLS (VIETNAM) COMPANY LTD - was established in 2005. It is a 100% foreign invested Company by SPITFIRE CONTROLS (CAYMAN) CO., LTD. Subject is operating under Investment Certificate No. 472043000625 issued by Dong Nai Industrial Zones Authority with Registered Investment Capital of USD 4,695,824. Mr. Do Ngoc Phuong is legal representative and General Director of subject.

Its head office locates at No. 13, Lot 103/4, Road No. 5, Amata Industrial Park, Long Binh Ward, Bien Hoa City, Dong Nai Province, Vietnam. The subject specializes in producing all kinds of electronics boards for the home appliances including dishwasher, blender, washing machine. Its products are supplier for leading home appliances in the world such as Electrolux, Whirlpool. Subject imports materials and electronics components from many countries for production such as China, Hong Kong, Taiwan, Singapore and USA. The finished products are 100% exported to the USA.

In general, subject is activating in medium scale. In our opinion, subject has capacity to meet normal financial commitments. No caution needed for small business transactions with subject.

 

 

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.67.71

UK Pound

1

Rs.105.14

Euro

1

Rs.90.03

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.