MIRA
INFORM REPORT
|
Report Date : |
09.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
CONG TY DET NHUOM XUAT KHAU THANG LONG |
|
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Formerly Known As : |
THAI BINH THANG LONG TEXTILE CO |
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Registered Office : |
Lot A1 Nguyen Duc Canh
Industrial Park, Phu Xuan Commune, Thai Binh City, Thai Binh Province |
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Country : |
Vietnam |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
1993 |
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Com. Reg. No.: |
1000213627 |
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Legal Form : |
Limited
Liability Company |
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Line of Business : |
Manufacturing and Trading of Spinning and Yarn
Materials, Towels Products. |
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No. of Employees : |
300 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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|
With Financials |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source : CIA |
SUBJECT IDENTIFICATION &
LEGAL FORM
|
Current legal
status |
||
|
Vietnamese Name |
|
CONG TY DET NHUOM XUAT KHAU THANG LONG |
|
Trade name |
|
THANGLONG TEXTILE COMPANY LTD |
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Type of Business |
|
Limited liability company |
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Year Established |
|
1993 |
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Business Registration No. |
|
1000213627 |
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Date of Registration |
|
23 Jul 2009 |
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Place of Registration |
|
Planning and
investment department of Thai Binh Province |
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Chartered capital |
|
VND 27,825,970,319 |
|
Status |
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Unlisted |
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Tax code |
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1000213627 |
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Total Employees |
|
300 |
|
Size |
|
Medium |
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Note: The correct name of the subject is above. The
name given THAI BINH THANG LONG TEXTILE CO is incorrect. It was former
transaction name. |
||
Historical Identification & Legal form
|
List |
Changed Items |
Date of changes |
|
1 |
Subject has got former Business Registration No: 0802000248 Changed to: 1000213627 |
23 Jul 2009 |
ADDRESSES
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Head Office |
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|
Address |
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Lot A1 Nguyen Duc Canh Industrial Park, Phu Xuan Commune,
Thai Binh City, Thai Binh Province, Vietnam |
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Telephone |
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(84-36) 3641691 |
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Fax |
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(84-36) 3641695 |
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Email |
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Website |
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Note: The full
address of the subject is as above. |
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Factory Address |
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|
Address |
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Group 16, Bo Xuyen Ward , Thai Binh City, Thai Binh
Province, Vietnam |
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Factory Address |
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Address |
|
Thai Phuong , Hung Ha District, Thai Binh Province,
Vietnam |
DIRECTORS
|
1.
NAME |
|
Mr.
TRAN VAN HUONG |
|
Position |
|
Director |
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Date of Birth |
|
08 Aug 1960 |
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ID Number/Passport |
|
151001255 |
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ID Issue Date |
|
02 Jun 2003 |
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ID Issue Place |
|
Police station of
Thai Binh Province |
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Resident |
|
Group 16 Bo Xuyen
Ward, Thai Binh City, Thai Binh Province, Vietnam |
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Current resident |
|
Thai Phuong Commune , Hung Ha District,
Thai Binh Province, Vietnam |
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Nationality |
|
Vietnamese |
|
|
||
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2.
NAME |
|
Ms.
NGUYEN THI MY |
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Position |
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Chief Accountant |
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Nationality |
|
Vietnamese |
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Mobile phone |
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(84) 1668821417 |
BUSINESS NATURE AND ACTIVITIES
The subject registers and operates in manufacturing
and trading spinning and yarn materials, towels products
IMPORT & EXPORT ACTIVITIES
|
IMPORT: |
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|
Types of
products |
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Cotton |
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Market |
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India,
Tanzania, Argentina |
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Mode of payment
|
|
LC |
|
|
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EXPORT: |
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|
Market |
|
Japan and Korea
|
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Mode of payment
|
|
LC |
BANKERS
|
1. BANK FOR INVESTMENT AND DEVELOPMENT
OF VIETNAM - THAI BINH BRANCH |
||
|
Address |
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No. 80D Ly Thuong Kiet
Street, Le Hong Phong Ward, Thai Binh City, Thai Binh Province, Vietnam |
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Telephone |
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(84-36) 3731210 |
|
Fax |
|
(84-36) 3731210 |
SHAREHOLDERS
|
1. NAME |
|
Mr. TRAN VAN HUONG |
|
Position
|
|
Director
|
|
Date
of Birth |
|
08
Aug 1960 |
|
ID
Number/Passport |
|
151001255
|
|
Issued
on |
|
02
Jun 2003 |
|
Issued
Place |
|
Police
station of Thai Binh Province |
|
Resident |
|
Group
16 Bo Xuyen Ward, Thai Binh City, Thai Binh Province, Vietnam |
|
Current
Resident |
|
Thai
Phuong Commune , Hung Ha District, Thai Binh Province, Vietnam |
|
Nationality |
|
Vietnamese
|
|
Value
of shares |
|
VND
19,825,970,319 |
|
Percentage
|
|
71.25%
|
|
|
||
|
2. NAME |
|
Ms. TRAN THI NGA |
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ID
Number/Passport |
|
150821543
|
|
Resident |
|
Thai
Phuong Commune, Hung Ha District, Thai Binh Province, Vietnam |
|
Nationality |
|
Vietnamese
|
|
Value
of shares |
|
VND
8,000,000,000 |
|
Percentage
|
|
28.75%
|
|
|
||
FINANCIAL HIGHLIGHT
|
BALANCE SHEET |
||
|
Unit: Million VND |
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|
Balance sheet date |
31/12/2009 |
31/12/2008 |
|
Number
of weeks |
52 |
52 |
|
ASSETS |
||
|
A. Current Asset |
52,473 |
46,590 |
|
Receivables |
3,094 |
2,557 |
|
Inventory |
43,356 |
42,766 |
|
Cash and other current
assets |
6,023 |
1,267 |
|
B. Long term Asset |
68,821 |
72,412 |
|
1. Long term account
receivable |
0 |
1,171 |
|
2. Fixed assets |
68,821 |
71,241 |
|
Tangible fixed assets |
67,550 |
69,695 |
|
+ Original cost |
84,011 |
82,132 |
|
+ Accumulated depreciation
value |
-16,461 |
-12,437 |
|
Financial leasehold assets |
0 |
0 |
|
Intangible fixed assets |
0 |
0 |
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Construction in progress
and other long term asset |
1,271 |
1,546 |
|
TOTAL ASSETS |
121,294 |
119,002 |
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||
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LIABILITIES |
||
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Payable loans |
93,305 |
90,173 |
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Owner’s Equity |
27,989 |
28,829 |
|
TOTAL LIABILITY AND EQUITY |
121,294 |
119,002 |
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PROFIT & LOSS STATEMENT IN 2009 |
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1.
Total Sales |
69,268 |
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2. Deduction item |
0 |
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3.
Net revenue |
69,268 |
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4. Costs of goods sold |
68,483 |
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5.
Gross profit |
785 |
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6. Financial income |
969 |
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7. Financial expenses |
1,648 |
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8. Selling expenses and
Administrative overheads |
995 |
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9.
Net operating profit |
-889 |
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10. Other income |
28 |
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11. Other expenses |
1 |
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12.
Other profit /(loss) |
27 |
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13.
Total accounting profit before tax |
-862 |
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14. Current corporate
income tax |
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15. Deferred corporate
income tax |
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16. Interest from subsidiaries/related
companies |
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17.
Profit after tax |
-862 |
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PROFIT & LOSS STATEMENT IN 2008 |
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Total revenue |
70,148 |
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Deductions Items |
0 |
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1. Net revenue |
70,148 |
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2. Cost of goods sold and
operation expense |
67,142 |
|
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3. Net income from business
activities |
3,006 |
|
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Income from financial
activities |
9 |
|
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Expenditure from financial
activities |
3,365 |
|
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4. Net income from
financial operation |
-3,356 |
|
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Irregular income |
3 |
|
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Irregular expenditure |
85 |
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5. Irregular Profit |
-82 |
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6. Total pre-tax profit |
-432 |
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PAYMENT HISTORY & PERFORMANCE EXPERIENCES
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Trade Morality |
|
Fair |
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Liquidity |
|
N/A |
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Payment status |
|
N/A |
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Financial
Situation |
|
Normal |
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Development
trend |
|
Developing |
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Litigation
data |
|
No Record |
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Bankruptcy |
|
No Record |
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Payment
Methods |
|
LC |
|
Sale Methods |
|
To contracts |
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Public opinion
|
|
Good |
INTERPRETATION ON THE SCORES
|
Established in 1993, THANGLONG TEXTILE COMPANY LTD has now
operated under business registration No.1000213627 (the same tax code)
granted by Planning and Investment Department of Thai Binh Province. The subject is located at Lot A1 Nguyen Duc Canh Industrial
Park, Phu Xuan Commune, Thai Binh City, Thai Binh Province. Besides, it has
two factories in Thai Binh Province. It specializes in manufacturing and trading spinning and yarn
materials, towels products. The subject imports cotton for production from India, Tanzania, Argentina and exports products to Japan
and Korea. Following financial highlight in 2008 – 2009, the subject
lost year on year and total sales in 2009 decreased compared with 2008. An interview was conducted with Ms. Pham Thi My – Chief
accountant of the subject. She shared that its business activities in 2011
was not effective because of high increasing cotton price. She revealed total
sales of the subject are about VND 62 billion in 2012. According to Ms. Pham
Thi My, the subject has planned to import modern equipments and machines from
Switzerland to raise productivity. Following chart is cotton
import turn-over of Vietnam in 2008 – 2012 for your reference:
Resource: Vietnam Customs In general, the subject is a medium company that has
operated for a long time. Although its financial situation is not very good,
its business activities seem stable. With current position, the subject is
reliable to meet small 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 |
|
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ECONOMIC
INDICATORS |
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|
2011 |
2010 |
2009 |
|||
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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 |
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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 |
|||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.57 |
|
|
1 |
Rs.84.25 |
|
Euro |
1 |
Rs.71.79 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.