MIRA INFORM REPORT

 

 

Report Date :

07.02.2013

 

IDENTIFICATION DETAILS

 

Name :

HUNG ANH INVESTMENT JOINT STOCK COMPANY

 

 

Registered Office :

Duong Long Hamlet, Thanh Tuyen Commune, Dau Tieng District, Binh Duong Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Incorporation :

2008

 

 

Com. Reg. No.:

3700717221

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Subject specialized in manufacturing and trading types of tiles

 

 

No. of Employees :

100

 

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

 

Registration English Name

 

HUNG ANH INVESTMENT JOINT STOCK COMPANY

Registration Vietnamese Name

 

CONG TY CO PHAN DAU TU HUNG ANH

Registration Short name

 

HUNG ANH IJS COMPANY

Type of Business

 

Joint stock company

Year Established

 

2008

Business Registration No.

 

3700717221

Date of 2nd adjustment

 

18 Oct 2010

Place of Registration

 

Business Registration Office - Planning and Investment Department of Binh Duong Province

Chartered capital

 

VND 41,028,730,000

Tax code

 

3700717221

Total Employees

 

100

 

ADDRESSES

 

Head Office

Address

 

Duong Long Hamlet, Thanh Tuyen Commune, Dau Tieng District, Binh Duong Province, Vietnam

Telephone

 

(84-650) 3584567 – 3584568

Fax

 

(84-650) 3830351 – 3584568

Email

 

sale@hunganhceramic.com

hunganhinvestment@gmail.com

Website

 

www.hunganhceramic.com

 

 

DIRECTORS

 

1. NAME

 

Ms. NGUYEN THI NHU Y

Position

 

General Director

Date of Birth

 

15 Oct 1975

ID Number/Passport

 

024044170

ID Issue Date

 

12 Oct 2009

ID Issue Place

 

Police Station of Ho Chi Minh City

Resident

 

86 Ham Tu Street, Ward 1 , 5th  District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Mr. CHUNG TIEN VU

Position

 

Deputy General Director

Nationality

 

Vietnamese

Note:  He is husband of Ms.NGUYEN THI NHU Y

 

 

BUSINESS NATURE AND ACTIVITIES

 

Subject specialized in manufacturing and trading types of tiles

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Material

·         Market

 

China

 

EXPORT:

Note: N/A

 

 

BANKERS

 

VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE BINH DUONG BRANCH

Address

 

No.330 Binh Duong Boulevard, Thu Dau Mot City, Binh Duong Province, Vietnam

Telephone

 

(84-650) 3822263

 

 

SHAREHOLDERS

 

Following are registered shareholders of subject:

1. NAME

 

Mr. THAI QUOC DUY

Date of Birth

 

10 Jun 1963

ID Number/Passport

 

022190587

Issued on

 

17 Feb 2005

Issued Place

 

Police Station of Ho Chi Minh City

Resident

 

No. 195/7 Bui Minh Truc Str. Ward 5, 8th  District, Ho Chi Minh City, Vietnam

Current Resident

 

No. 195/7 Bui Minh Truc Str. Ward 5, 8th  District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

565,120

Value of shares

 

VND 5,651,200,000

Percentage

 

13.77%

 

2. NAME

 

Mr. NGUYEN VAN THO

Date of Birth

 

18 Oct 1964

ID Number/Passport

 

024075960

Issued on

 

06 Oct 2002

Issued Place

 

Police Station of Ho Chi Minh City

Resident

 

43/14E Huong Lo 13, Tay Thanh Ward, Tan Phu District, Ho Chi Minh City, Vietnam

Number of Shares

 

670,000

Value of shares

 

VND 6,700,000,000

Percentage

 

16.33%

 

3. NAME

 

Ms. NGUYEN THI NHU Y

Position

 

General Director

Date of Birth

 

15 Oct 1975

ID Number/Passport

 

024044170

Issued on

 

12 Oct 2009

Issued Place

 

Police Station of Ho Chi Minh City

Resident

 

86 Ham Tu Street, Ward 1 , 5th  District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

1,407,753

Value of shares

 

VND 14,077,530,000

Percentage

 

34.31%

 

4. NAME

 

Mr. NGUYEN BA SINH

ID Number/Passport

 

250447514

Resident

 

23/15 Bui The my Street, Ward 10 , Tan Binh District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

290,000

Value of shares

 

VND 2,900,000,000

Percentage

 

7.07%

 

5. NAME

 

Mr. TRAN VAN KHOA

ID Number/Passport

 

201079416

Resident

 

No. 536 Minh Phung, Ward 9, 11th  District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

100,000

Value of shares

 

VND 1,000,000,000

Percentage

 

2.44%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

Number of weeks

52

Audit status

Unknown

ASSETS

A – CURRENT ASSETS

35,208,402,191

I. Cash and cash equivalents

1,511,664,339

1. Cash

1,511,664,339

2. Cash equivalents

0

II. Short-term investments

0

1. Short-term investments

0

2. Provisions for devaluation of short-term investments

0

III. Accounts receivable

10,360,584,626

1. Receivable from customers

9,113,733,199

2. Prepayments to suppliers

1,246,851,427

3. Inter-company receivable

0

4. Receivable according to the progress of construction

0

5. Other receivable

0

6. Provisions for bad debts

0

IV. Inventories

20,333,627,748

1. Inventories

20,333,627,748

2. Provisions for devaluation of inventories

0

V. Other Current Assets

3,002,525,478

1. Short-term prepaid expenses

242,305,422

2. VAT to be deducted

1,796,755,223

3. Taxes and other accounts receivable from the State

0

4. Other current assets

963,464,833

B. LONG-TERM ASSETS

39,268,034,915

I. Long term accounts receivable

0

1. Long term account receivable from customers

0

2. Working capital in affiliates

0

3. Long-term inter-company receivable

0

4. Other long-term receivable

0

5. Provisions for bad debts from customers

0

II. Fixed assets

39,268,034,915

1. Tangible assets

37,458,532,930

- Historical costs

63,952,665,427

- Accumulated depreciation

-26,494,132,497

2. Financial leasehold assets

0

- Historical costs

0

- Accumulated depreciation

0

3. Intangible assets

0

- Initial costs

0

- Accumulated amortization

0

4. Construction-in-progress

1,809,501,985

III. Investment property

0

Historical costs

0

Accumulated depreciation

0

IV. Long-term investments

0

1. Investments in affiliates

0

2. Investments in business concerns and joint ventures

0

3. Other long-term investments

0

4. Provisions for devaluation of long-term investments

0

V. Other long-term assets

0

1. Long-term prepaid expenses

0

2. Deferred income tax assets

0

3. Other long-term assets

0

VI. Goodwill

 

1. Goodwill

 

TOTAL ASSETS

74,476,437,106

 

LIABILITIES

A- LIABILITIES

27,832,702,209

I. Current liabilities

22,008,472,577

1. Short-term debts and loans

13,338,655,975

2. Payable to suppliers

7,648,955,950

3. Advances from customers

290,459,944

4. Taxes and other obligations to the State Budget

52,408,998

5. Payable to employees

677,991,710

6. Accrued expenses

0

7. Inter-company payable

0

8. Payable according to the progress of construction contracts

0

9. Other payable

0

10. Provisions for short-term accounts payable

0

11. Bonus and welfare funds

 

II. Long-Term Liabilities

5,824,229,632

1. Long-term accounts payable to suppliers

0

2. Long-term inter-company payable

0

3. Other long-term payable

0

4. Long-term debts and loans

5,824,229,632

5. Deferred income tax payable

0

6. Provisions for unemployment allowances

0

7. Provisions for long-term accounts payable

0

8. Unearned Revenue

 

9. Science and technology development fund

 

B- OWNER’S EQUITY

46,643,734,897

I. OWNER’S EQUITY

46,643,734,897

1. Capital

42,128,730,000

2. Share premiums

0

3. Other sources of capital

0

4. Treasury stocks

0

5. Differences on asset revaluation

0

6. Foreign exchange differences

0

7. Business promotion fund

1,350,000,000

8. Financial reserved fund

1,250,000,000

9. Other funds

0

10. Retained earnings

1,915,004,897

11. Construction investment fund

0

12. Business arrangement supporting fund

 

II. Other sources and funds

 

1. Bonus and welfare funds (Elder form)

 

2. Sources of expenditure

 

3. Fund to form fixed assets

 

MINORITY’S INTEREST

 

TOTAL LIABILITIES AND OWNER’S EQUITY

74,476,437,106

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

1. Total Sales

117,025,164,869

2. Deduction item

527,192,080

3. Net revenue

116,497,972,789

4. Costs of goods sold

94,501,899,292

5. Gross profit

21,996,073,497

6. Financial income

92,177,067

7. Financial expenses

3,439,294,068

- In which: Loan interest expenses

3,232,041,398

8. Selling expenses

807,201,004

9. Administrative overheads

5,977,488,970

10. Net operating profit

11,864,266,522

11. Other income

449,278,093

12. Other expenses

96,396,161

13. Other profit /(loss)

352,881,932

14. Total accounting profit before tax

12,217,148,454

15. Current corporate income tax

1,527,143,557

16. Deferred corporate income tax

0

17. Interest from subsidiaries/related companies

 

18. Profit after tax

10,690,004,897

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

Average Industry

Current liquidity ratio

1.60

1.61

Quick liquidity ratio

0.68

0.72

Inventory circle

4.65

6.41

Average receive period

32.46

40.98

Utilizing asset performance

1.56

1.30

Liability by total assets

37.37

58.19

Liability by owner's equity

59.67

206.32

Ebit / Total assets (ROA)

20.74

8.26

Ebit / Owner's equity (ROE)

33.12

21.07

Ebit / Total revenue (NPM)

13.20

5.03

Gross profit / Total revenue (GPM)

18.80

12.08

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

 

Direct payment or through its corresponding bank

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Normal

 

 

 

INTERPRETATION ON THE SCORES

 

HUNG ANH INVESTMENT JOINT STOCK COMPANY was established in 2008. It has operated under business registration No.3700717221. Its head office is at Duong Long Hamlet, Thanh Tuyen Commune , Dau Tieng District, Binh Duong Province, Vietnam.

Subject specialized in manufacturing and trading types of tiles such as wall tile, floor tile, garden tile, water floor tile, border tile, roof tile and accessories. Material sources of subject are mainly from China. Ms. NGUYEN THI NHU Y is general director but she trusted his husband Mr. CHUNG TIEN VU managing all activities of subject. He creates good relationship with Chinese suppliers and is responsible for import goods from China.

Shareholders of subject: Mr.NGUYEN VAN THO is director of THAI DUONG RUBBER JOINT STOCK COMPANY (This company specialized in manufacturing and trading of technical rubber products) and Mr.THAI QUOC DUY is director of HUNG ANH PLASTICS MANUFACTURING JOINT STOCK COMPANY (this company specialized in assembling, producing, and trading of bathroom and toilet accessories).

According to subject’s financial statement, its turnover and profit are fairly good. Its premises and facilities are normal. In general, the subject has capacity to meet normal financial 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.53.08

UK Pound

1

Rs.83.12

Euro

1

Rs.72.02

 

 

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.