MIRA INFORM REPORT

 

 

Report Date :

02.02.2013

 

IDENTIFICATION DETAILS

 

Name :

SA CHI COMPANY LIMITED

 

 

Registered Office :

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

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Incorporation :

2005

 

 

Com. Reg. No.:

5700537166

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

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.

 

 

No. of Employees :

Nearly 40

 

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 :

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

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 in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep 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 has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

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

 

Nearly 40

 

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

 

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

Note:  Branch tax code and business registration number: 5700537166-001. This branch was opened in 2010.

 

 

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, seafood

·         Market

 

China

 

IMPORT:

·         Market

 

Most of countries

Note: Types of goods and import markets are dependent on demand and order of customers.

 

 

BANKERS

 

1. 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, District 5, 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, District 5, 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

 

Note: The financial information of FY 2010 is not available.

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2009

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

20,118,000,000

60,343,000,000

I. Cash and cash equivalents

1,488,000,000

1,169,000,000

1. Cash

1,488,000,000

1,169,000,000

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

17,895,000,000

15,951,000,000

1. Receivable from customers

8,655,000,000

8,881,000,000

2. Prepayments to suppliers

9,240,000,000

7,070,000,000

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

0

IV. Inventories

484,000,000

40,476,000,000

1. Inventories

484,000,000

40,476,000,000

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

251,000,000

2,747,000,000

1. Short-term prepaid expenses

251,000,000

471,000,000

2. VAT to be deducted

0

2,276,000,000

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

0

0

B. LONG-TERM ASSETS

7,485,000,000

7,788,000,000

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

7,446,000,000

7,725,000,000

1. Tangible assets

6,796,000,000

7,075,000,000

- Historical costs

10,799,000,000

8,696,000,000

- Accumulated depreciation

-4,003,000,000

-1,621,000,000

2. Financial leasehold assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

3. Intangible assets

650,000,000

650,000,000

- Initial costs

650,000,000

650,000,000

- 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

39,000,000

63,000,000

1. Long-term prepaid expenses

39,000,000

63,000,000

2. Deferred income tax assets

0

0

3. Other long-term assets

0

0

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

27,603,000,000

68,131,000,000

 

LIABILITIES

A- LIABILITIES

16,658,000,000

62,644,000,000

I. Current liabilities

16,558,000,000

60,844,000,000

1. Short-term debts and loans

8,492,000,000

9,152,000,000

2. Payable to suppliers

202,000,000

659,000,000

3. Advances from customers

7,421,000,000

782,000,000

4. Taxes and other obligations to the State Budget

144,000,000

51,000,000

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

299,000,000

50,200,000,000

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

0

 

II. Long-Term Liabilities

100,000,000

1,800,000,000

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

100,000,000

1,800,000,000

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

 

 

9. Science and technology development fund

 

 

B- OWNER’S EQUITY

10,945,000,000

5,487,000,000

I. OWNER’S EQUITY

10,945,000,000

5,487,000,000

1. Capital

8,000,000,000

4,300,000,000

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

0

0

10. Retained earnings

2,945,000,000

1,187,000,000

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

27,603,000,000

68,131,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2009

1. Total Sales

260,368,000,000

114,873,000,000

2. Deduction item

0

0

3. Net revenue

260,368,000,000

114,873,000,000

4. Costs of goods sold

248,333,000,000

105,221,000,000

5. Gross profit

12,035,000,000

9,652,000,000

6. Financial income

2,046,000,000

4,000,000

7. Financial expenses

1,993,000,000

715,000,000

- In which: Loan interest expenses

0

0

8. Selling expenses

9,678,000,000

7,725,000,000

9. Administrative overheads

975,000,000

595,000,000

10. Net operating profit

1,435,000,000

621,000,000

11. Other income

1,138,000,000

0

12. Other expenses

1,183,000,000

0

13. Other profit /(loss)

-45,000,000

0

14. Total accounting profit before tax

1,390,000,000

621,000,000

15. Current corporate income tax

243,000,000

109,000,000

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

 

 

18. Profit after tax

1,147,000,000

512,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2009

Average Industry

Current liquidity ratio

1.22

0.99

1.21

Quick liquidity ratio

1.19

0.33

0.72

Inventory circle

513.08

2.60

12.25

Average receive period

25.09

50.68

51.49

Utilizing asset performance

9.43

1.69

2.30

Liability by total assets

60.35

91.95

59.32

Liability by owner's equity

152.20

1,141.68

229.17

Ebit / Total assets (ROA)

5.04

0.91

8.16

Ebit / Owner's equity (ROE)

12.70

11.32

24.08

Ebit / Total revenue (NPM)

0.53

0.54

6.61

Gross profit / Total revenue (GPM)

4.62

8.40

16.82

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

 

Average

Development trend

 

Developing

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

The subject mainly pays in term of T/T

Sale Methods

 

To contracts

 

 

 

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. Registered capital is VND 8 billion and the labor force is nearly 40 persons.

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, seafood to China. As the subject only imports on behalf of other companies, payments for imported goods are made through other companies.

Financially, the subject’s business result witnessed a fairly growth in FY2011 against previous years. In illustration, total revenues recorded at VND 260 billion, doubled in compared to 2009. Profit after tax also saw a 124% growth. However, Total assets decreased much. This decrease mainly sourced from inventory. In FY2011, the debt rate was considerably improved in compared with two years earlier; signaling a fairly safe capital structure. Profitability ratios were normal.

In general, the subject is a small company operating as import-export agent. It is only reliable for small commitments.

 

 

------------ APPENDIX  ----------

 

 

INDUSTRY DATA

 

Industry code

Growth speed by price compared with 1994 (%)

Total enterprises 2010

Total employees 2011

(Thous.pers.)

Annual average capital of enterprises 2010

(billion dongs)

2011

2010

Agriculture, Forestry and Fishing

4.00

2.78

8,887

24,362.9

95,227

Industry and Construction

5.53

7.70

95,217

10,718.9

3,641,376

Trade and Services

6.69

7.52

187,195

15,270.2

6,957,082

 

ECONOMIC INDICATORS

 

 

2011 

2010 

2009 

Population (Million person)

87.84

86.93

86.02

Gross Domestic Products (USD billion)

119

102.2

91

GDP Growth (%)

5.89

6.78

5.32

GDP Per Capita (USD/person/year)

1,300

1,160

1,080

Inflation (% Change in Composite CPI)

18.58

11.75

6.88

State Budget Deficit compared with GDP (%)

4.9

5.8

6.9

 

SERVICE TRADE PERFORMANCE

 

Billion USD 

2011 

2010 

2009 

Exports

96.3

72.2

57.1

Imports

105.8

84.8

69.9

Trade Balance

-9.5

-12.6

-12.8

Source: General Statistics Office

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.32

UK Pound

1

Rs.84.60

Euro

1

Rs.72.63

 

 

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.