MIRA INFORM REPORT

 

 

Report Date :

07.02.2013

 

IDENTIFICATION DETAILS

 

Name :

KENDA RUBBER (VIETNAM) CO., LTD

 

 

Registered Office :

No. 1 - Thanh Hoa Hamlet Cho Chieu Road - Ho Nai 3, Trang Bom District, Dong Nai Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Incorporation :

1998

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres

 

 

No. of Employees :

1,431

 

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 :

Good

Payment Behaviour :

Regular

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

 

English Name

 

KENDA RUBBER (VIETNAM) CO., LTD

Vietnamese Name

 

CONG TY CAO SU KENDA (VIETNAM)

Type of Business

 

Limited liability company

Year Established

 

1998

Establishment Decision

 

1873/GP

Date of Issuance

 

03 Apr 1997

Place of Issuance

 

People's Committee of Dong Nai Province

Investment Certificate No

 

472043000074

Date Of Issuance

 

19 Oct 2009

Place of Issuance

 

Board of Management Industrial Zones of Dong Nai Province

Registered Investment Capital

 

USD 30,000,000

Chartered capital

 

USD 12,000,000

Status

 

Unlisted

Tax code

 

3600248720

Total Employees

 

1,431

Size

 

Large

Note:  KENDA GLOBAL HOLDING COMPANY - TAIWAN is parent company of subject.

 

ADDRESSES

 

Head Office

Address

 

No. 1 - Thanh Hoa Hamlet Cho Chieu Road - Ho Nai 3, Trang Bom District, Dong Nai Province, Vietnam

Telephone

 

(84-61) 3983171/ 3983172/ 3983173

Fax

 

(84-61) 3983175

Email

 

kendav@hcm.vnn.vn

 

 

DIRECTORS

 

1. NAME

 

Mr. HUANG FONG CHOU

Position

 

General Director

Nationality

 

Chinese (Taiwanese)

 

 

BUSINESS NATURE AND ACTIVITIES

 

Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Material

·         Market

 

Taiwan and China

·         Ratio

 

N/A

·         Mode of payment

 

L/C, T/T

 

EXPORT:

·         Market

 

Taiwan, Cambodia, and some of countries in Asia

·         Ratio

 

N/A

·         Mode of payment

 

T/T, L/C

 

 

BANKERS

 

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM DONG NAI BRANCH

Address

 

No 77C Hung Dao Vuong,Trung Dung Ward, Bien Hoa City, Dong Nai Province, Vietnam

Telephone

 

(84-61) 3823666

Fax

 

(84-61) 3824191

 

2. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE DONG NAI BRANCH

Address

 

No.77D Hung Dao Vuong, Bien Hoa City, Dong Nai Province, Vietnam

Telephone

 

(84-61) 3817034

 

3. ICBC – INTERNATIONAL COMMERCIAL BANK OF CHINA

Address

 

No. 5B, Ton Duc Thang Str Ben Nghe Ward, 1 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 822 5697

Fax

 

(84-8) 822 5698

 

4. INDOVINA BANK LIMITED

Address

 

Nhon Trach Industrial Zone 3 Street 25th, Hiep Phuoc Commune, Nhon Trach District, Dong Nai Province, Vietnam

Telephone

 

(84-61) 3569029

Fax

 

(84-61) 356902

 

 

SHAREHOLDERS

 

1. NAME

 

KENDA GLOBAL HOLDING COMPANY

Address

 

No. 146 Sec 1 Chung Shan Road - Yuan Lin Taiwan P.O.Box:180 Taiwan

Percentage

 

100%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

Number of weeks

52

Audit status

Unknown

ASSETS

A – CURRENT ASSETS

894,097,000,000

I. Cash and cash equivalents

17,508,000,000

1. Cash

17,508,000,000

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

304,649,000,000

1. Receivable from customers

296,207,000,000

2. Prepayments to suppliers

7,995,000,000

3. Inter-company receivable

0

4. Receivable according to the progress of construction

0

5. Other receivable

447,000,000

6. Provisions for bad debts

0

IV. Inventories

520,985,000,000

1. Inventories

520,985,000,000

2. Provisions for devaluation of inventories

0

V. Other Current Assets

50,955,000,000

1. Short-term prepaid expenses

10,660,000,000

2. VAT to be deducted

39,932,000,000

3. Taxes and other accounts receivable from the State

0

4. Other current assets

363,000,000

B. LONG-TERM ASSETS

351,448,000,000

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

342,685,000,000

1. Tangible assets

322,338,000,000

- Historical costs

600,735,000,000

- Accumulated depreciation

-278,397,000,000

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

20,347,000,000

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

8,763,000,000

1. Long-term prepaid expenses

7,575,000,000

2. Deferred income tax assets

1,188,000,000

3. Other long-term assets

0

VI. Goodwill

 

1. Goodwill

 

TOTAL ASSETS

1,245,545,000,000

 

LIABILITIES

A- LIABILITIES

605,672,000,000

I. Current liabilities

575,540,000,000

1. Short-term debts and loans

103,321,000,000

2. Payable to suppliers

421,356,000,000

3. Advances from customers

1,756,000,000

4. Taxes and other obligations to the State Budget

20,299,000,000

5. Payable to employees

11,164,000,000

6. Accrued expenses

17,537,000,000

7. Inter-company payable

0

8. Payable according to the progress of construction contracts

0

9. Other payable

107,000,000

10. Provisions for short-term accounts payable

0

11. Bonus and welfare funds

 

II. Long-Term Liabilities

30,132,000,000

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

28,334,000,000

5. Deferred income tax payable

0

6. Provisions for unemployment allowances

1,798,000,000

7. Provisions for long-term accounts payable

0

8. Unearned Revenue

 

9. Science and technology development fund

 

B- OWNER’S EQUITY

639,873,000,000

I. OWNER’S EQUITY

639,873,000,000

1. Capital

249,936,000,000

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

0

8. Financial reserved fund

0

9. Other funds

0

10. Retained earnings

389,937,000,000

11. Construction investment fund

0

12. Business arrangement supporting fund

0

II. Other sources and funds

0

1. Bonus and welfare funds (Elder form)

0

2. Sources of expenditure

0

3. Fund to form fixed assets

0

MINORITY’S INTEREST

0

TOTAL LIABILITIES AND OWNER’S EQUITY

1,245,545,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

1. Total Sales

1,830,149,000,000

2. Deduction item

22,608,000,000

3. Net revenue

1,807,541,000,000

4. Costs of goods sold

1,533,535,000,000

5. Gross profit

274,006,000,000

6. Financial income

4,298,000,000

7. Financial expenses

9,386,000,000

- In which: Loan interest expenses

4,025,000,000

8. Selling expenses

63,803,000,000

9. Administrative overheads

12,938,000,000

10. Net operating profit

192,177,000,000

11. Other income

125,000,000

12. Other expenses

1,348,000,000

13. Other profit /(loss)

-1,223,000,000

14. Total accounting profit before tax

190,954,000,000

15. Current corporate income tax

28,753,000,000

16. Deferred corporate income tax

-527,000,000

17. Interest from subsidiaries/related companies

 

18. Profit after tax

162,728,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

Average Industry

Current liquidity ratio

1.55

1.54

Quick liquidity ratio

0.65

0.96

Inventory circle

2.94

5.73

Average receive period

61.52

32.13

Utilizing asset performance

1.45

1.05

Liability by total assets

48.63

47.46

Liability by owner's equity

94.66

121.08

Ebit / Total assets (ROA)

15.65

11.28

Ebit / Owner's equity (ROE)

30.47

16.23

Ebit / Total revenue (NPM)

10.65

11.79

Gross profit / Total revenue (GPM)

14.97

17.19

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

 

FINANCIAL HIGHLIGHT

 

Note: The financial data in 2010 is not available.

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2009

31/12/2008

31/12/2007

Number of weeks

52

52

52

ASSETS

A. Current Asset

438,675,000,000

425,974,000,000

166,560,000,000

Receivables

110,459,000,000

41,266,000,000

54,914,000,000

Inventory

244,235,000,000

330,981,000,000

71,853,000,000

Cash and other current assets

83,981,000,000

53,727,000,000

39,793,000,000

B. Long term Asset

198,576,000,000

178,612,000,000

85,130,000,000

1. Long term account receivable

 

 

 

2. Fixed assets

192,115,000,000

169,491,000,000

63,007,000,000

Tangible fixed assets

192,115,000,000

102,367,000,000

63,007,000,000

+ Original cost

366,964,000,000

245,702,000,000

185,043,000,000

+ Accumulated depreciation value

-174,849,000,000

-143,335,000,000

-122,036,000,000

Financial leasehold assets

 

 

 

Intangible fixed assets

 

 

 

Construction in progress and other long term asset

 

67,124,000,000

 

TOTAL ASSETS

637,251,000,000

604,586,000,000

251,690,000,000

 

LIABILITIES

Payable loans

394,135,000,000

525,186,000,000

218,908,000,000

Owner’s Equity

243,116,000,000

79,400,000,000

32,782,000,000

TOTAL LIABILITY AND EQUITY

637,251,000,000

604,586,000,000

251,690,000,000

 

PROFIT & LOSS STATEMENT

1. Total Sales

931,787,000,000

877,714,000,000

562,055,000,000

2. Deduction item

15,190,000,000

11,288,000,000

8,123,000,000

3. Net revenue

916,597,000,000

866,426,000,000

553,932,000,000

4. Costs of goods sold

693,649,000,000

811,560,000,000

530,504,000,000

5. Gross profit

222,948,000,000

54,866,000,000

23,428,000,000

6. Financial income

5,090,000,000

4,360,000,000

1,622,000,000

7. Financial expenses

13,457,000,000

14,352,000,000

391,000,000

8. Selling expenses and Administrative overheads

52,441,000,000

-

-

9. Net operating profit

162,140,000,000

-

-

10. Other income

1,587,000,000

2,071,000,000

754,000,000

11. Other expenses

1,441,000,000

1,388,000,000

145,000,000

12. Other profit /(loss)

146,000,000

683,000,000

609,000,000

13. Total accounting profit before tax

162,286,000,000

45,557,000,000

25,268,000,000

14. Current corporate income tax

-

-

-

15. Deferred corporate income tax

-

-

-

16. Interest from subsidiaries/related companies

-

-

-

17. Profit after tax

162,286,000,000

-

-

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Medium

Payment status

 

Average

Financial Situation

 

Above Average

Development trend

 

Stable

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Transferred through its bank and T/T, L/C

Sale Methods

 

Wholesaler

Public opinion

 

Excellent

 

 

 

INTERPRETATION ON THE SCORES

 

KENDA RUBBER (VIETNAM) CO., LTD was established in 1998 in Trang Bom District, Dong Nai province. It is a 100% foreign investment capital of KENDA GLOBAL HOLDING COMPANY (Taiwan). It specializes in manufacturing and trading tyres and tubes; retreading and rebuilding of rubber tyres. According to FDI data (Foreign Direct Investment) in Dong Nai Province, the subject’s investment capital is USD 30,000,000 and the chartered capital of USD 12,000,000.

The head office is located at Lot I-13, Road No.2, Ho Nai Industrial Zone, Ho Nai 3 Commune, Trang Bom District, Dong Nai Province. Total area of head office and factory is about 57,810 square meters. There are about 1,431 people working in whole of company, in which there are about 1,423 Vietnamese. The management capacity and material facilities are fairly good.

According to the subject’s resource, the subject imports materials mainly from China and Taiwan. Its products are exported for Taiwan, Cambodia and some of countries in Asia.

The financial situation of KENDA RUBBER (VIETNAM) CO., LTD is fairly good. Total assets of subject in the year 2011 reached VND 1,245 billion and the liabilities hold about 50 percent in total assets. The liquidity ratios were acceptable in compared with the industry average and the financial leverage ratio were fairly. The capital structure was safely for creditors. The business result in 2011 was remarkable, it reached VND 1,830 billion and the after tax profit was VND 162.7 billion.

In general, the subject’s position in the industry is remarkable. It is graded at BBB, meaning the subject has adequate capacity to meet 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%)

 

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