MIRA INFORM REPORT

 

 

Report Date :

08.02.2013

 

IDENTIFICATION DETAILS

 

Name :

MIEN TRUNG MINERAL JOINT STOCK COMPANY

 

 

Registered Office :

Floor 3 - Housing MTJ - No. 104 Hai Thuong Lan Ong Str., Vinh City, Nghe An Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

20.04.2011

 

 

Com. Reg. No.:

2900832928

 

 

Legal Form :

Joint stock company

 

 

Line of Business :

The subject specializes in processing Calcium carbonate (CaCO3) powder from raw materials limestone.

 

 

No. of Employees :

150

 

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 :

Slow but Correct

 

 

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

(31.03.2012)

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

 

MIEN TRUNG MINERAL JOINT STOCK COMPANY

Vietnamese Name

 

CONG TY CO PHAN KHOANG SAN MIEN TRUNG

Trade name

 

MIEN TRUNG MINERAL JOINT STOCK COMPANY

Short name

 

MTM

Type of Business

 

Joint stock company

Year Established

 

2007

Business Registration No.

 

2900832928

Date of Registration

 

20 Apr 2011

Place of Registration

 

Planning and Investment Department of Vinh City

Chartered capital

 

VND 30,000,000,000

Status

 

Unlisted

Tax code

 

2900832928

Total Employees

 

150

Size

 

Medium

 

 

 

ADDRESSES

 

Head Office

Address

 

Floor 3 - Housing MTJ - No. 104 Hai Thuong Lan Ong Str., Vinh City, Nghe An Province, Vietnam

Telephone

 

(84-38) 3522 868

Fax

 

(84-38) 3521 868

Email

 

sales@mtm.com.vn

Website

 

http://mtm.com.vn

 

Factory Address

Address

 

Nam Cam Industrial Park , Nghi Loc District, Nghe An Province, Vietnam

Telephone

 

(84-650) 3716 585

Fax

 

(84-650) 3716 190

Email

 

haitrieumtm@gmail.com / hagiang@gmail.com

 

Branch in Binh Duong

Address

 

E5/25 Binh Thuan 2 Hamlet Thuan Giao commune, Thuan An town, Thuan An Town, Binh Duong Province, Vietnam

Business code

 

2900832928-001

Telephone

 

(84-38) 3791868

Fax

 

(84-38) 3791552

 

 

SUBSIDIARIES AND RELATED COMPANIES

 

1. PARENT COMPANY - CONG TY CO PHAN TU VAN VA XAY DUNG CONG TRINH MIEN TRUNG

Business Registration

 

3000376350

Tax code

 

3000376350

Address

 

No. 133 Nguyen Du Str., Ha Tinh City, Ha Tinh Province, Vietnam

Tel

 

(84-39) 3855 651

 

 

 

DIRECTORS

 

1. NAME

 

Mr. TRUONG HAN

Position

 

Legal Director

Date of Birth

 

27 May 1955

ID Number/Passport

 

022738293

ID Issue Date

 

24 Nov 1989

ID Issue Place

 

Ho Chi Minh City Police Station

Resident

 

No 1/4 Phu Tho Hoa Hamlet Ward 10, Tan Binh District, Ho Chi Minh City, Vietnam

Current resident

 

No 1/4 Phu Tho Hoa Hamlet Ward 10, Binh Tan District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject specializes in processing Calcium carbonate (CaCO3) powder from raw materials limestone.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Types of products

 

Machines, equipments

Market

 

Germany

 

EXPORT:

Types of products

 

Calcium carbonate (CaCO3) powder

Market

 

India, Bangladesh, Korea, Japan...

Ratio

 

100%

Mode of payment

 

TT/ LC

 

 

 

BANKERS

 

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

Address

 

No.21 Quang Trung, Vinh City, Nghe An Province, Vietnam

Telephone

 

(84-38) 3842033

Fax

 

(84-38) 3842192

 

SHAREHOLDERS

 

1. NAME

 

CONG TY CO PHAN TU VAN VA XAY DUNG CONG TRINH MIEN TRUNG

Business Registration

 

3000376350

Tax code

 

3000376350

Address

 

No. 133 Nguyen Du Str., Ha Tinh City, Ha Tinh Province, Vietnam

Tel

 

(84-39) 855 651

Number of shares

 

2,185,272

Value of shares

 

VND 21,852,720,000

Percentage

 

72.84%

 

2. NAME

 

PETROVIETNAM FINANCE JOINT STOCK CORPORATION

Business Registration

 

0103023045

Date of Registration

 

17 Mar 2008

Place of Registration

 

Planning and Investment Department of Ha Noi City

Registered Capital

 

VND 5,000,000,000,000

Tax code

 

0101057919

Address

 

No. 22 Ngo Quyen Str, Trang Tien ward, Hoan Kiem District, Ha Noi City, Vietnam

Tel

 

(84-4) 3942 6800

Fax

 

(84-4) 3942 6796/97

Email

 

pvfc@pvfc.com.vn

Website

 

www.pvfc.com.vn

Note:  Share has been transferred

 

3. NAME

 

Mr. DOAN VAN TE

ID Number/Passport

 

031327514

Resident

 

No. 2 Tran Hung Dao Str., Hong Bang District, Hai Phong City, Vietnam

Nationality

 

Vietnamese

Note:  Share has been transferred

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

31/12/2009

Number of weeks

52

52

52

ASSETS

A – CURRENT ASSETS

17,107,000,000

13,121,000,000

3,846,500,000

I. Cash and cash equivalents

245,000,000

881,000,000

211,000,000

1. Cash

245,000,000

881,000,000

211,000,000

2. Cash equivalents

0

0

0

II. Short-term investments

0

0

0

1. Short-term investments

0

0

0

2. Provisions for devaluation of short-term investments

0

0

0

III. Accounts receivable

10,377,000,000

8,466,000,000

1,269,500,000

1. Receivable from customers

10,178,000,000

8,432,000,000

94,500,000

2. Prepayments to suppliers

0

10,000,000

1,175,000,000

3. Inter-company receivable

0

0

0

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

199,000,000

24,000,000

0

6. Provisions for bad debts

0

0

0

IV. Inventories

5,919,000,000

3,519,000,000

2,154,000,000

1. Inventories

5,919,000,000

3,519,000,000

2,154,000,000

2. Provisions for devaluation of inventories

0

0

0

V. Other Current Assets

566,000,000

255,000,000

212,000,000

1. Short-term prepaid expenses

5,000,000

0

0

2. VAT to be deducted

164,000,000

63,000,000

212,000,000

3. Taxes and other accounts receivable from the State

0

0

0

4. Other current assets

397,000,000

192,000,000

0

B. LONG-TERM ASSETS

73,395,000,000

78,828,000,000

69,695,500,000

I. Long term accounts receivable

9,000,000

9,000,000

0

1. Long term account receivable from customers

0

0

0

2. Working capital in affiliates

0

0

0

3. Long-term inter-company receivable

0

0

0

4. Other long-term receivable

9,000,000

9,000,000

0

5. Provisions for bad debts from customers

0

0

0

II. Fixed assets

72,556,000,000

77,477,000,000

69,695,500,000

1. Tangible assets

72,479,000,000

77,454,000,000

884,000,000

- Historical costs

80,481,000,000

80,454,000,000

1,172,000,000

- Accumulated depreciation

-8,002,000,000

-3,000,000,000

-288,000,000

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

18,000,000

23,000,000

0

- Initial costs

25,000,000

25,000,000

0

- Accumulated amortization

-7,000,000

-2,000,000

0

4. Construction-in-progress

59,000,000

0

68,811,500,000

III. Investment property

0

0

0

Historical costs

0

0

0

Accumulated depreciation

0

0

0

IV. Long-term investments

0

0

0

1. Investments in affiliates

0

0

0

2. Investments in business concerns and joint ventures

0

0

0

3. Other long-term investments

0

0

0

4. Provisions for devaluation of long-term investments

0

0

0

V. Other long-term assets

830,000,000

1,342,000,000

0

1. Long-term prepaid expenses

830,000,000

1,188,000,000

0

2. Deferred income tax assets

0

0

0

3. Other long-term assets

0

154,000,000

0

VI. Goodwill

0

0

0

1. Goodwill

0

0

0

TOTAL ASSETS

90,502,000,000

91,949,000,000

73,542,000,000

 

LIABILITIES

A- LIABILITIES

73,370,000,000

68,700,000,000

53,821,000,000

I. Current liabilities

24,448,000,000

15,948,000,000

11,113,000,000

1. Short-term debts and loans

13,994,000,000

11,043,000,000

2,457,000,000

2. Payable to suppliers

7,191,000,000

4,000,000,000

1,862,000,000

3. Advances from customers

0

121,000,000

0

4. Taxes and other obligations to the State Budget

0

200,000,000

0

5. Payable to employees

438,000,000

303,000,000

167,000,000

6. Accrued expenses

2,755,000,000

35,000,000

6,613,000,000

7. Inter-company payable

0

0

0

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

70,000,000

246,000,000

14,000,000

10. Provisions for short-term accounts payable

0

0

0

11. Bonus and welfare funds

0

0

0

II. Long-Term Liabilities

48,922,000,000

52,752,000,000

42,708,000,000

1. Long-term accounts payable to suppliers

0

0

0

2. Long-term inter-company payable

0

0

0

3. Other long-term payable

0

0

0

4. Long-term debts and loans

48,922,000,000

52,752,000,000

42,708,000,000

5. Deferred income tax payable

0

0

0

6. Provisions for unemployment allowances

0

0

0

7. Provisions for long-term accounts payable

0

0

0

8. Unearned Revenue

0

0

0

9. Science and technology development fund

0

0

0

B- OWNER’S EQUITY

17,132,000,000

23,249,000,000

19,721,000,000

I. OWNER’S EQUITY

17,132,000,000

23,249,000,000

19,721,000,000

1. Capital

30,000,000,000

30,000,000,000

20,000,000,000

2. Share premiums

0

0

0

3. Other sources of capital

0

0

0

4. Treasury stocks

0

0

0

5. Differences on asset revaluation

0

0

0

6. Foreign exchange differences

0

0

-279,000,000

7. Business promotion fund

0

0

0

8. Financial reserved fund

0

0

0

9. Other funds

0

0

0

10. Retained earnings

-12,868,000,000

-6,751,000,000

0

11. Construction investment fund

0

0

0

12. Business arrangement supporting fund

0

0

0

II. Other sources and funds

0

0

0

1. Bonus and welfare funds (Elder form)

0

0

0

2. Sources of expenditure

0

0

0

3. Fund to form fixed assets

0

0

0

MINORITY’S INTEREST

0

0

 

TOTAL LIABILITIES AND OWNER’S EQUITY

90,502,000,000

91,949,000,000

73,542,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

FY2009

1. Total Sales

57,366,000,000

21,768,000,000

37,500,000,000

2. Deduction item

0

0

0

3. Net revenue

57,366,000,000

21,768,000,000

37,500,000,000

4. Costs of goods sold

30,648,000,000

10,984,000,000

20,125,000,000

5. Gross profit

26,718,000,000

10,784,000,000

17,375,000,000

6. Financial income

191,000,000

1,000,000

-890,000,000

7. Financial expenses

12,400,000,000

2,200,000,000

1,150,000,000

- In which: Loan interest expenses

12,278,000,000

1,250,000,000

1,150,000,000

8. Selling expenses

16,716,000,000

4,123,000,000

0

9. Administrative overheads

1,745,000,000

1,124,000,000

0

10. Net operating profit

-3,952,000,000

3,338,000,000

15,335,000,000

11. Other income

0

174,000,000

0

12. Other expenses

83,000,000

1,000,000

0

13. Other profit /(loss)

-83,000,000

173,000,000

0

14. Total accounting profit before tax

-4,035,000,000

3,511,000,000

15,335,000,000

15. Current corporate income tax

0

0

0

16. Deferred corporate income tax

0

0

0

17. Interest from subsidiaries/related companies

0

0

0

18. Profit after tax

-4,035,000,000

3,511,000,000

15,335,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

FY2009

Average Industry

Current liquidity ratio

0.70

0.82

0.35

1.72

Quick liquidity ratio

0.46

0.60

0.15

1.06

Inventory circle

5.18

3.12

9.34

13.62

Average receive period

66.03

141.96

12.36

78.59

Utilizing asset performance

0.63

0.24

0.51

1.55

Liability by total assets

81.07

74.72

73.18

52.62

Liability by owner's equity

428.26

295.50

272.91

163.63

Ebit / Total assets (ROA)

9.11

5.18

22.42

13.16

Ebit / Owner's equity (ROE)

48.11

20.48

83.59

29.85

Ebit / Total revenue (NPM)

14.37

21.87

43.96

7.13

Gross profit / Total revenue (GPM)

46.57

49.54

46.33

19.87

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

 

 

CASH FLOW STATEMENT

(Indirect method)

Items

FY2011

I. Cash flows from operating activities

1. Profit before tax

-4,035,000,000

2. Adjustments

 

- Depreciation and amortization

5,007,000,000

- Provisions

0

- Unrealized foreign exchange difference

0

- Gain/loss from investing activities

0

- Interest expense

12,278,000,000

3. Operating profit before movements in working capital

13,250,000,000

- (Increase)/Decrease in receivables

-1,911,000,000

- (Increase)/Decrease in inventories

-2,400,000,000

- Increase/(Decrease) in accounts payable

5,749,000,000

- (Increase)/Decrease in prepaid expenses

353,000,000

- Interest paid

-12,278,000,000

- Corporate income tax paid

-200,000,000

- Other cash inflows

0

- Other cash outflows

-2,234,000,000

Net cash from (used in) operating activities

329,000,000

II. Cash flows from investing activities

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

-86,000,000

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

0

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

0

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

0

5. Investment in other entities

0

6. Cash recovered from investments in other entities

0

7. Interest income, dividend and profit paid

0

Net cash from (used in) investing activities

-86,000,000

III. Cash flows from financing activities

1. Proceeds from issuing stocks, receiving capital from owners

0

2. Capital withdrawal, buying back issued stocks

0

3. Proceeds from borrowings

-879,000,000

4. Repayment of borrowings

0

5. Repayment of obligations under finance leased

0

6. Dividends paid

0

Net cash from (used in) financing activities

-879,000,000

Net increase/(decrease) in cash and cash equivalents

-636,000,000

Cash and cash equivalents at beginning of year

881,000,000

Effect from changing foreign exchange rate

0

Cash and cash equivalents at end of year

245,000,000

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Low/ Medium

Payment status

 

Above Average

Financial Situation

 

Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

TT/LC

Sale Methods

 

To contracts

Public opinion

 

Good

 

 

 

INTERPRETATION ON THE SCORES

 

The subject - MIEN TRUNG MINERAL JOINT STOCK COMPANY was established in 2007 under the original Business Registration Number 2703001637 after that, in 2011 it changed to the Number 2900832928 – same as the tax code. Currently the subject has about 150 people and the chartered capital is VND 30,000,000,000, which was mainly contributed by CONG TY CO PHAN TU VAN VA XAY DUNG CONG TRINH MIEN TRUNG.

The head office of the subject is located at No. 104 Hai Thuong Lan Ong Str., Vinh City, Nghe An Province, Vietnam. Its factory is in Nam Cam Industrial Park, Nghi Loc District, Nghe An Province, Vietnam. Besides, it also has the branch in Binh Duong Province. The subject specializes in processing Calcium carbonate (CaCO3) powder from raw materials limestone. The subject gets the raw limestone material from Nam Cam Mine. Its products (CaCO3 powder) are all exported to overseas countries such as India, Bangladesh, Korea, Japan...

As the given financial data, the subject has the current assets and Accounts receivable increasing every year. However, the long-term assets have high depreciation rate. Its total assets in 2011 were lower than the previous year, which was due to the worse trend of business result. Though the subject’s Total revenue in 2011 is increased 2.6 times in comparison with that of 2010, Its expenses such as Financial expenses, Selling expenses are too high, which made a loss to the subject in this year. Financial liquidity ratios are almost lower than those of average industry, thus the subject is considered risky to creditors and investors. The subject is expected to gain better profit in 2013 when it has better expense management. Currently caution is needed for medium and large transactions.

 

 

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.53.14

UK Pound

1

Rs.83.26

Euro

1

Rs.71.93

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.