MIRA INFORM REPORT

 

 

Report Date :

14.12.2013

 

IDENTIFICATION DETAILS

 

Name :

DONG NAI PAINT CORP

 

 

Registered Office :

Bien Hoa 1 Industrial Zone Rd 7 An Binh Ward, Bien Hoa, Dong Nai

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

14.09.2010

 

 

Legal Form :

Corporation

 

 

Line of Business :

Manufacturer of Chemicals

 

 

No. of Employees :

230

 

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 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

 

REGISTERED NAME & COMPANY SUMMARY

 

Company Details

 

Organization Name

:

DONG NAI PAINT CORP

Address

:

Bien Hoa 1 Industrial Zone Rd 7 An Binh Ward, Bien Hoa, Dong Nai

Country

:

Vietnam

Phone (S)

:

[+84] 61-3836662

Facsimile

:

[+84] 61-3836091

Email

:

info@dongnaipaint.vn

Website

:

www.dongnaipaint.vn

Primary Business Activity

:

Manufacturer

Key Industry

:

Chemicals

 

Key Facts

 

Registered Legal Address

:

Bien Hoa 1 Industrial Zone Rd 7 An Binh Ward, Bien Hoa, Dong Nai

Operational Address

:

Bien Hoa 1 Industrial Zone Rd 7 An Binh Ward, Bien Hoa, Dong Nai

Trading Name

:

DONAPACO

Name History

:

Business Entity Name

Effective Date

DONG NAI PAINT FACTORY

1 Mar, 2000

DONG NAI PAINT CORP

14 Sep, 2010

Issuing Authority

:

Dept. of Planning & Investment - Bien Hoa

License Number

:

3600451024

License Status

:

License exists - Normal.

Legal Form - Category

:

Joint Stock Company

Legal Form

:

Corporation

Legal Form - Abbreviation

:

CORP

Operational Status of Business

:

Normal

Date of Registration

:

14 Sep, 2010

Employees

:

230

Capital

:

US$ 719,171

Note

:

 

 

Report Details

 

Country

:

Vietnam

Business Entity Name

:

DONG NAI PAINT CORP

Primary Business Activity

:

Manufacturer

Primary Industry

:

Chemicals

Office Contact Details

Operating Address

:

Bien Hoa 1 Industrial Zone Rd 7 An Binh Ward, Bien Hoa, Dong Nai

Tel

:

[+84] 61-3836662

 

:

[+84] 61-3931355

Fax

:

[+84] 61-3836091

Email

:

info@dongnaipaint.vn
visitsdn@hcm.vnn.vn

Website Details

Website

:

http://www.dongnaipaint.vn

Status

:

Normal - operational

Country of Registration

:

Vietnam

Ownership Type

:

Registered ownership by Subject Business Entity

Tax / VAT Details

Tax Issuing Authority

:

Ministry of Finance

Local Name Used

:

Gia Trj Gia Tang (Value Added Tax)

Acronym

:

GTGT / VAT

GTGT / VAT Number

:

3600451024

 

 

 

DIRECTORS/MANAGEMENT

 

Key Person

 

Legal Title

:

Chairman

Name

:

Mr. Trinh Minh Truong

Nationality

:

Vietnamese

 

COMPANY MANAGEMENT

 

Management Listings

 

 

Name

Nationality

Job Description

Dept. / Division

1

Mr. Truong Dinh Dung

Vietnamese

Chief Accountant

-

2

Mr. Hoang Thuyen

Vietnamese

Deputy Managing Director

-

3

Mr. Trinh Minh Truong

Vietnamese

Managing Director

-

 

 

Management Details - 1

Personal Unique Identifier

:

MI03585871

Name

:

Mr. Truong Dinh Dung

 

Date of Birth

:

1975

 

Management Details - 2

Personal Unique Identifier

:

MI03585869

Name

:

Mr. Hoang Thuyen

 

Date of Birth

:

1968

 

 

Management Details - 3

Personal Unique Identifier

:

MI03585858

Name

:

Mr. Trinh Minh Truong

 

Date of Birth

:

1960

 

 

 

COMPANY DIRECTORS

 

1

 

 

Personal Unique Identifier

:

MI03585858

Name

:

Mr. Trinh Minh Truong

Date of Birth

:

1960

Nationality

:

Vietnamese

 

 

NEGATIVE INFORMATION

 

REPUTATION

Reference checking for the purpose of establishing the DONG NAI PAINT CORP's reputation within the respective industry failed to reveal any adverse information.

 

    

NEGA-SCAN - ADVERSE DATA MONITORING

 

 

DISHONORED CHECKS

 

No Record Found

 

 

DEBT

 

No Record Found

 

 

LITIGATION

 

No Record Found

 

 

PERFORMANCE DEFAULTS

 

No Record Found

 

 

ADVERSE LOCAL MEDIA COVERAGE / ADVERSE FILING HISTORY

 

No Record Found

 

 

SHARE & SHARE CAPITAL INFORMATION

 

CAPITAL (Currency: VND - Vietnam Dong)

Authorized Capital

:

15,182,000,000

 

 SHAREHOLDERS

 

Total number of shareholders

:

n/a

Total number of shares

:

n/a

 

Currency

:

VND - Vietnam Dong

 

No.

Shareholders

Country

Shares

Number

Amount (VND)

%

1

CORPORATION FOR THE DEVELOPMENT OF BIEN HOA INDUSTRIAL ZONE

Vietnam

n/a

n/a

n/a

2

Undisclosed Shareholders

n/a

n/a

n/a

n/a

Total

n/a

n/a

n/a

 

 

Based on corporate statutory laws / regulations in Vietnam, there is no requirement for public disclosure of Shareholders. In this case, the Shareholders information was supplied by the Subject Business Entity.
However in the absence of data normally obtained from local Statutory Authorities, it is not possible to verify the accuracy of data supplied and hence is provided as reference ONLY.

 

 

PAYMENT INFORMATION

 

PAYMENT TERMS

Selling

Type

Terms

Local

Cash on delivery (COD)

Credit - Unsecured 30~60 days

Purchasing

Type

Terms

Local

Cash on delivery (COD)

Credit - Unsecured 30~60 days

Import

Letter of Credit (At-sight)

Telegraphic Transfer (T/T) - Executed at time of transaction

 

 

GROUP STRUCTURE & AFFILIATED COMPANIES

 

Na

 

 

FINANCIAL INFORMATION

 

Financials - Summary  (Currency: USD - US Dollar)

Year

Sales

Assets

Net Income

2011 Annual  

4,156,553

2,131,349

232,357

2012 Annual  

4,535,488

2,016,984

348,049

 

Sales Trend – Analysis

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

-

-

-

-

-

-

-

-

-

 

 

FINANCIAL STATEMENT - DETAILED

 

Balance Sheet

 

Currency

:

VND

Denomination

:

1

Financial Year Ending

:

December

 

 

Financial Highlights

2011 Annual

2012 Annual

Current Assets

32,594,000,000

30,486,000,000

Non Current Assets

11,802,000,000

11,517,000,000

Non Current Liabilities

405,000,000

347,000,000

Share Capital

15,182,000,000

15,182,000,000

Other long term assets 

Total Assets

44,396,000,000

42,003,000,000

Total Liabilities

20,715,000,000

16,611,000,000

Current Liabilities

20,310,000,000

16,264,000,000

Long term liabilities 

Shareholders Funds

23,681,000,000

25,392,000,000

 

Current assets & short term investments

32,594,000,000

30,486,000,000

Cash & cash equivalents

4,192,000,000

1,732,000,000

Cash

3,292,000,000

1,732,000,000

Cash equivalents

900,000,000

0

Accounts receivable

15,607,000,000

18,722,000,000

Accounts receivable trade

14,451,000,000

16,059,000,000

Trade prepayment

94,000,000

46,000,000

Others receivables

5,264,000,000

6,577,000,000

Provision for bad debts

(4,202,000,000)

(3,960,000,000)

i. Inventories

12,694,000,000

9,987,000,000

ii. Inventories

12,694,000,000

10,124,000,000

Provision for decline in inventory

0

(137,000,000)

Other short term asset

72,000,000

45,000,000

Prepaid expenses

29,000,000

0

Long term assets

11,802,000,000

11,517,000,000

Fixed assets

6,448,000,000

6,163,000,000

Tangible fixed assets

6,035,000,000

5,730,000,000

Cost

17,044,000,000

18,056,000,000

Accumulated depreciation

11,009,000,000

12,326,000,000

Construction in progress

413,000,000

433,000,000

Long term investments

5,019,000,000

5,019,000,000

Other long term investments

5,019,000,000

5,019,000,000

i. Other long term assets

335,000,000

335,000,000

ii. Other long term assets

335,000,000

335,000,000

Total assets

44,396,000,000

42,003,000,000

Liabilities

20,715,000,000

16,611,000,000

Current liabilities

20,310,000,000

16,264,000,000

Short term borrowings

7,379,000,000

1,876,000,000

Accounts payables-trade

7,238,000,000

6,504,000,000

Advances from customers

6,000,000

69,000,000

Taxes and payable to state budget

849,000,000

1,280,000,000

Payable to employees

3,089,000,000

3,191,000,000

Accrued expenses payable

1,186,000,000

1,669,000,000

Other payables

563,000,000

184,000,000

Bonus and welfare funds

865,000,000

0

Long term liabilities

405,000,000

347,000,000

Long term other payables

347,000,000

347,000,000

Provision funds for unemployment

58,000,000

0

i. Owner's equity

23,681,000,000

25,392,000,000

ii. Owner's equity

22,816,000,000

25,392,000,000

Business capital

15,182,000,000

15,182,000,000

Business development funds

2,710,000,000

3,435,000,000

Financial reserved funds

1,653,000,000

2,015,000,000

Other funds from owner's equity

712,000,000

1,074,000,000

Retained earnings

2,559,000,000

3,686,000,000

Budget sources

865,000,000

0

Total resources

44,396,000,000

42,003,000,000

 

Income Statement

 

Currency

:

VND

Denomination

:

1

Financial Year Ending

:

December

 

 

Financial Highlights

2011 Annual

2012 Annual

Turnover

86,581,000,000

94,450,000,000

Profit (Loss) Before Tax

5,512,000,000

8,727,000,000

Profit After Tax attributable to Shareholders

4,840,000,000

7,248,000,000

 

Gross sales

86,581,000,000

94,450,000,000

Less deductions

2,044,000,000

1,989,000,000

Net income

84,537,000,000

92,461,000,000

Cost of goods sold

65,690,000,000

69,339,000,000

Gross margin

18,847,000,000

23,122,000,000

Income from financial activities

347,000,000

200,000,000

Expenses from financial activities

1,643,000,000

873,000,000

In which: Interest expenses

1,264,000,000

870,000,000

Selling expenses

4,902,000,000

5,100,000,000

General & administration expenses

7,263,000,000

8,803,000,000

Net income from operating activities

5,386,000,000

8,546,000,000

Extraordinary income

402,000,000

525,000,000

Extraordinary expenses

276,000,000

344,000,000

Extraordinary gains

126,000,000

181,000,000

Net profit before tax

5,512,000,000

8,727,000,000

Income tax

672,000,000

1,479,000,000

Net profit after tax

4,840,000,000

7,248,000,000

 

Financial Ratios

 

Financial Highlights

2011 Annual

2012 Annual

Growth % 

Year-on-Year Growth

-

9.09

Profitability 

Profit Margin (%)

5.59

7.67

Return on Equity (%)

20.44

28.54

Return on Assets (%)

10.90

17.26

Leverage 

Total Debt Equity (Times)

0.87

0.65

Current Debt Equity (Times)

0.86

0.64

Long Term Debt to Equity

0.02

0.01

Total Asset To Total Equity

1.87

1.65

Asset Management 

Total Assets Turnover (Times)

1.95

2.25

Fixed Assets Turnover (Times)

7.34

8.20

Liquidity 

Current Ratio

1.60

1.87

Based on the corporate laws of Vietnam, legal entities which are Joint Stock Company are not required to make public disclosure of their annual financials. Although financials were obtained for reference.

 

 

FOREIGN EXCHANGE RATES

 

Today's Exchange rate

:

1.00 VND
Vietnam Dong

=

0.000047 USD
United States Dollars

 

 

ADDITIONAL INFORMATION

 

Primary Products

 

Products / Materials / Services Description

Activity

Allied products

Manufacturing

Paints

Manufacturing

 

 

SIC PRODUCT CLASSIFICATION & ACTIVITY

 

Product/Service Description

Code

Activity

Paints and allied products

2851

Manufacturing

Paints, Varnishes & Supplies

5198

Manufacturing

 

 

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

 

Product/Service Description

Code

Activity

Chemical products and preparations of the chemical or allied industries

3824909060

Manufacturing

Miscellaneous chemical products

3800

Manufacturing

Paint & varnish from synth etc polymers aqueous

3209

Manufacturing

 

 

CORE BUSINESS DESCRIPTION

 

Core Business

The primary business focus of DONG NAI PAINT CORP is Manufacturing - Finished products.

Key products include :

Paints

Allied products


An integral part of the core business includes:

Distribution

 

Supplementary Business

In addition to the core business, DONG NAI PAINT CORP also is engaged in the following areas of business:

Importing

Importing - Raw materials

Trading

Trading - Finished products

 

 

DOMESTIC SALES & PURCHASES

 

Annual Sales Analysis

Percentage

Domestic Sales

100%

International Sales (Export)

0%

 

Annual Purchases Analysis

Percentage

Local Purchases

10%

Imports

90%

 

 

 

BANK DETAILS

 

Bank Name

:

VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY & TRADE

Global Identifier

:

32404058

Branch

:

Hoan Kiem Dist,Hanoi

Branch Address

:

VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY

SWIFT Code

:

ICBVVNVX

 

 

LOCAL BRANCHES & MANAGEMENT

 

Branch

:

DONG NAI PAINT CORP - YEN PHUONG DIST, BAC NINH

Branch Address

:

Yen Phong Industrial Zone Long Chau Commune, Yen Phuong Dist, Bac Ninh

 

 

 

 

 

INTERNATIONAL TRADE - Activity & Markets

 

 

Country / Region

Estimated level of importance

Trading Activity

Asia / Pacific

Medium

Importing

Europe

Medium

Importing

North America

Medium

Importing

Australia

Medium

Importing

Netherlands

Medium

Importing

USA

Medium

Importing

 

 

OFFICE & FACILITIES

Name

:

DONG NAI PAINT CORP - BIEN HOA, DONG NAI

Address

:

Bien Hoa 1 Industrial Zone Rd 7 An Binh Ward, Bien Hoa, Dong Nai

Country

:

Vietnam

Status

:

Operational

 

 

COMPANY HISTORY

 

Date

Details

2000 - Mar

Founded as a goverment enterprise.

2010 - Sep

Changed formation to a joint stock company.

 

QUALITY ACCREDITATION

 

Quality Accreditation Listings

#

Name

Accreditation Category

1

INTERNATIONAL STANDARDS ORGANIZATION (ISO)

9001:2000

 

 

PREVIOUS BUSINESS LICENSE/S

License Date

License No.

1 Mar, 2000

470300004

 

 

NOTES & COMMENTS

 

Na

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.13

UK Pound

1

Rs.101.53

Euro

1

Rs.85.41

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.