MIRA INFORM REPORT

 

 

Report Date :

21.02.2013

 

IDENTIFICATION DETAILS

 

Name :

AUSTFEED VIET NAM CORPORATION

 

 

Registered Office :

Bo Thoi Town Hong Tien Commune, Khoai Chau District, Hung Yen Province,

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Incorporation :

2004

 

 

Com. Reg. No.:

0900235251

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and trading in animal feed, including feeds for pig, chicken, duck, swan, birds, etc.

 

 

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

 

Current legal status

Registered English Name

 

AUSTFEED VIET NAM CORPORATION

Registered Vietnamese Name

 

CONG TY CO PHAN AUSTFEED VIET NAM

Registered short name

 

AUSTFEED

Type of Business

 

Joint Stock Company

Year Established

 

2004

Business Registration No.

 

0900235251

Date of Registration

 

22 Jun 2009

Place of Registration

 

Hung Yen Department of Planning and Investment

Chartered capital

 

VND 80,000,000,000

Status

 

Unlisted

Tax code

 

0900235251

Total Employees

 

100

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Registered English Name: AUSTFEED VIETNAM COMPANY LIMITED

Changed to: AUSTFEED VIET NAM CORPORATION

27 Jun 2012

2

Subject has got former Registered Vietnamese Name: CONG TY TNHH AUSTFEED VIETNAM

Changed to: CONG TY CO PHAN AUSTFEED VIET NAM

27 Jun 2012

3

Subject has got former Type of Business: Limited liability company Changed to: Joint Stock Company

27 Jun 2012

4

Subject has got former Chartered capital: VND 30 Billion

Changed to: VND 50 Billion

02 Jun 2011

5

Subject has got former Business Registration No: 0502000337 Dated on 3 Dec 2004 Changed to: 0900235251

22 Jun 2009

6

Subject has got former Chartered capital: VND 10 Billion

Changed to: VND 30 Billion

22 Jun 2009

7

Subject has got former Chartered capital: VND 50 Billion

Changed to: VND 80 Billion

N/A

 

 

ADDRESSES

 

Head Office

Address

 

Bo Thoi Town Hong Tien Commune, Khoai Chau District, Hung Yen Province, Vietnam

Telephone

 

(84-321) 3920930

Fax

 

(84-321) 3920989

Email

 

info@austfeed.com.vn

Website

 

www.austfeed.com.vn

Note

 

The exact address is as above.

 

Representative office in Ha Noi

Address

 

No. 171 Phuc Tan Street, Phuc Tan Ward, Hoan Kiem District, Ha Noi City, Vietnam

 

 

SUBSIDIARIES AND RELATED COMPANIES

 

1. AUSTFEED HUNG YEN COMPANY LIMITED

Business Registration

 

0900222573

Date of Registration

 

10 Mar 2010

Place of Registration

 

Hung Yen Planning and Investment Department

Registered Capital

 

VND 30,000,000,000

Tax code

 

0900222573

Address

 

Luong Bang Town , Kim Dong District, Hung Yen Province, Vietnam

Tel

 

(84-321) 3824824

Fax

 

(84-321) 3810910

 

2. HUNG VIET INVESTMENT JOINT STOCK COMPANY

Business Registration

 

0900596480

Date of Registration

 

06 Jul 2010

Place of Registration

 

Hung Yen Department of Planning and Investment

Registered Capital

 

VND 10,000,000,000

Tax code

 

0900596480

Address

 

Road 39A Luong Bang Town, Kim Dong District, Hung Yen Province, Vietnam

Tel

 

(84 - 321) 3505573/ 3824824

Fax

 

(84 - 321) 3810910

Website

 

www.hungvietinvestment.com

 

 

DIRECTORS

 

1. NAME

 

Mr. DAO MANH LUONG

Position

 

Director

Date of Birth

 

17 Aug 1975

ID Number/Passport

 

012009198

ID Issue Date

 

15 Jun 1997

ID Issue Place

 

Ha Noi Police

Resident

 

Villa 2 No.26 X2 Bac Linh Dam, Hoang Liet Ward, Hoang Mai District, Ha Noi City, Vietnam

Current resident

 

Villa 2 No.26 X2 Bac Linh Dam, Hoang Liet Ward, Hoang Mai District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

+ 84 903413579

 

2. NAME

 

Ms. DUONG THI THANG

Position

 

Financial Director

Nationality

 

Vietnamese

 

3. NAME

 

Ms. DAO THI NHAN

Position

 

Chief Accountant

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject now focuses on:
- Manufacture and trading in animal feed, including feeds for pig, chicken, duck, swan, birds, etc.
- Supplying materials for feeding industry
- Consultancy and technology transfer in machinery for animal feed production

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Materials

·         Market

 

USA, China, Argentina, Singapore, India, Malaysia, Germany...

·         Ratio

 

N/a

·         Mode of payment

 

T/T, L/C

 

EXPORT:

Note: Currently, the subject does not export.

 

 

BANKERS

 

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

Address

 

Nghia Hiep ward, Yen My District, Hung Yen Province, Vietnam

Telephone

 

(84-321) 394 1042

Fax

 

(84-321) 394 1044

 

2. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK HUNG YEN BRANCH

Address

 

No.37 Ban Yen Nhan, My Hao District, Hung Yen Province, Vietnam

Telephone

 

(84-321) 3941 158

Fax

 

(84-321) 3941 160

 

3. SAI GON THUONG TIN COMMERCIAL JOINT STOCK BANK HUNG YEN BRANCH

Address

 

No. 13 - Road 39A Pho Noi Str, My Hao District, Hung Yen Province, Vietnam

Telephone

 

(84-321) 3866770

Fax

 

(84-321) 3866769

Foreign Currency Account

 

521800001366

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. DAO MANH LUONG

Position

 

Director

Date of Birth

 

17 Aug 1975

ID Number/Passport

 

012009198

Issued on

 

15 Jun 1997

Issued Place

 

Ha Noi Police

Resident

 

Villa 2 No.26 X2 Bac Linh Dam, Hoang Liet Ward, Hoang Mai District, Ha Noi City, Vietnam

Current Resident

 

Villa 2 No.26 X2 Bac Linh Dam, Hoang Liet Ward, Hoang Mai District, Ha Noi City, Vietnam

Mobile phone

 

+ 84 903413579

Nationality

 

Vietnamese

Number of Shares

 

5,600,000

Value of shares

 

VND 56,000,000,000

Percentage

 

70%

 

2. NAME

 

Mr. DAO MANH HOA

Date of Birth

 

14 Jul 1977

ID Number/Passport

 

013209775

Issued on

 

17 Aug 2009

Issued Place

 

Ha Noi Police

Resident

 

Group 8, hamlet no.3, Thuan Hung commune , Khoai Chau District, Hung Yen Province, Vietnam

Current Resident

 

Hong Tien Commune, Khoai Chau District, Hung Yen Province, Vietnam

Email

 

manhhoa772000@yahoo.com

Mobile phone

 

+84 1698998899

Nationality

 

Vietnamese

Number of Shares

 

1,600,000

Value of shares

 

VND 16,000,000,000

Percentage

 

20%

 

3. NAME

 

Mr. NGUYEN ANH TUAN

ID Number/Passport

 

011899732

Resident

 

No.55, Le Duan Str, Cua Nam ward , Hoan Kiem District, Ha Noi City, Vietnam

Current Resident

 

Hong Tien Commune, Khoai Chau District, Hung Yen Province, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

800,000

Value of shares

 

VND 8,000,000,000

Percentage

 

10%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

197,851,216,598

147,991,908,377

I. Cash and cash equivalents

5,994,692,678

10,615,853,011

1. Cash

5,994,692,678

10,615,853,011

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

38,894,793,789

7,753,324,780

1. Receivable from customers

29,209,137,936

3,794,393,344

2. Prepayments to suppliers

7,496,084,847

2,955,044,247

3. Inter-company receivable

0

1,003,887,189

4. Receivable according to the progress of construction

0

0

5. Other receivable

2,189,571,006

0

6. Provisions for bad debts

0

0

IV. Inventories

144,863,527,584

114,242,717,396

1. Inventories

144,863,527,584

114,242,717,396

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

8,098,202,547

15,380,013,190

1. Short-term prepaid expenses

3,864,546,428

2,783,206,095

2. VAT to be deducted

348,364,460

3,198,173,600

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

3,885,291,659

9,398,633,495

B. LONG-TERM ASSETS

101,317,822,188

97,042,439,596

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

50,657,504,410

49,448,299,323

1. Tangible assets

26,355,270,132

27,054,203,250

- Historical costs

32,697,680,790

30,936,505,297

- Accumulated depreciation

-6,342,410,658

-3,882,302,047

2. Financial leasehold assets

12,722,838,909

12,772,545,188

- Historical costs

13,757,718,603

12,879,877,500

- Accumulated depreciation

-1,034,879,694

-107,332,312

3. Intangible assets

2,679,540,089

2,795,184,137

- Initial costs

3,036,032,534

3,036,032,534

- Accumulated amortization

-356,492,445

-240,848,397

4. Construction-in-progress

8,899,855,280

6,826,366,748

III. Investment property

0

0

Historical costs

0

0

Accumulated depreciation

0

0

IV. Long-term investments

48,999,104,400

46,306,152,273

1. Investments in affiliates

48,999,104,400

46,306,152,273

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

1,661,213,378

1,287,988,000

1. Long-term prepaid expenses

373,225,378

0

2. Deferred income tax assets

0

0

3. Other long-term assets

1,287,988,000

1,287,988,000

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

299,169,038,786

245,034,347,973

 

LIABILITIES

A- LIABILITIES

178,026,154,315

144,052,622,082

I. Current liabilities

166,734,515,402

129,575,507,446

1. Short-term debts and loans

123,837,528,491

107,906,336,641

2. Payable to suppliers

37,644,017,180

15,511,781,818

3. Advances from customers

3,401,296,762

356,224,053

4. Taxes and other obligations to the State Budget

86,016,650

0

5. Payable to employees

927,168,158

0

6. Accrued expenses

22,532,450

0

7. Inter-company payable

815,955,711

5,801,164,934

8. Payable according to the progress of construction contracts

0

0

9. Other payable

0

0

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

 

 

II. Long-Term Liabilities

11,291,638,913

14,477,114,636

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

11,291,584,313

14,477,114,636

5. Deferred income tax payable

0

0

6. Provisions for unemployment allowances

54,600

0

7. Provisions for long-term accounts payable

0

0

8. Unearned Revenue

 

 

9. Science and technology development fund

 

 

B- OWNER’S EQUITY

121,142,884,471

100,981,725,891

I. OWNER’S EQUITY

115,776,931,971

100,981,725,891

1. Capital

32,189,691,928

32,189,691,928

2. Share premiums

0

0

3. Other sources of capital

48,999,104,400

46,306,152,273

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

34,588,135,643

22,485,881,690

11. Construction investment fund

0

0

12. Business arrangement supporting fund

 

 

II. Other sources and funds

5,365,952,500

0

1. Bonus and welfare funds (Elder form)

5,365,952,500

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

299,169,038,786

245,034,347,973

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

510,827,461,142

307,244,957,695

2. Deduction item

10,498,934,525

0

3. Net revenue

500,328,526,617

307,244,957,695

4. Costs of goods sold

444,554,778,178

266,939,907,285

5. Gross profit

55,773,748,439

40,305,050,410

6. Financial income

131,298,226

247,649,799

7. Financial expenses

28,837,591,399

8,735,362,215

- In which: Loan interest expenses

23,645,671,772

8,145,281,590

8. Selling expenses

5,913,871,080

4,827,655,686

9. Administrative overheads

11,425,610,248

4,880,213,334

10. Net operating profit

9,727,973,938

22,109,468,974

11. Other income

6,274,377,393

470,605,103

12. Other expenses

3,900,097,378

94,192,387

13. Other profit /(loss)

2,374,280,015

376,412,716

14. Total accounting profit before tax

12,102,253,953

22,485,881,690

15. Current corporate income tax

0

0

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

12,102,253,953

22,485,881,690

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

1.19

1.14

1.21

Quick liquidity ratio

0.32

0.26

0.41

Inventory circle

3.43

2.34

4.09

Average receive period

28.37

9.21

35.22

Utilizing asset performance

1.67

1.25

1.99

Liability by total assets

59.51

58.79

64.75

Liability by owner's equity

146.96

142.65

199.02

Ebit / Total assets (ROA)

11.95

12.50

12.59

Ebit / Owner's equity (ROE)

29.51

30.33

36.14

Ebit / Total revenue (NPM)

7.00

9.97

6.48

Gross profit / Total revenue (GPM)

10.92

13.12

12.11

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

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Good

Liquidity

 

Low/Medium

Payment status

 

Normal

Financial Situation

 

Average

Development trend

 

Stable

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

TT, L/C

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Good

 

 

 

INTERPRETATION ON THE SCORES

 

The subject was founded in 2004 as a Limited Liability Company in Hung Yen Province with the initial name: Austfeed Vietnam Company Limited. The company was changed its legal form to Joint Stock Company on 27 Jun 2012. Its name also changed to Austfeed Viet Nam Corporation. The company currently is operating under the business registration No. 0900235251 issued by Hung Yen Department of Planning and Investment. It has chartered capital of VND 80 billion that is contributed by three individuals.

The company specializes in manufacturing and trading animal feed. 100% its products are consumed in domestic market, including kinds of feed for pig, chicken, duck, swan and birds. Its head office and factory are located at Bo Thoi Town, Hong Tien Commune, Khoai Chau District, Hung Yen Province. It was started construction in January 2006 and completed in October 2006. The subject officially commenced production in November 2006. The management capacity of the subject is considered good. It has applied ISO 9001:2000 for the quality management system. Besides, the subject also applies production standard of AOAC, AS and TCVN for animal feed production.

The company’s financial situation is considered average. The subject is a medium size company in the industry with the total assets in 2011 of VND 299.2 billion VND. Current assets took higher parts in the company’s asset structure, especially inventories and account receivable. Inventories in 2011 were VND 144.9 billion; took 73% in the company’s current assets and 48.4% in the company’s total assets. Account receivable in 2011 was VND 38.9 billion; took 19.7% in the company’s current assets and 13% in the company’s total assets. According to the financial ratio table, the company’s operational ratio is considered average compared to average industry.

With regard to profitability, total sales of the subject have been continuously improved year by year. The company’s total sales in 2011 were VND 510.8 billion; increased 66.3% compared to 2010 – a remarkably growth rate. However, gross of profit only went up with the growth rate of 38.5%, lower than the growth rate of total sales. The reason is the quick increase of costs of goods sold in 2011. It made the company’s Gross Profit Margin went down from VND 13.12% in 2010 to 10.92% in 2011.  The subject made a profit after tax of VND 12.1 billion in 2011; dropped sharply compared to 2010 (profit after tax in 2010 was VND 22.5 billion). It is due to the high financial expenses and administrative overheads in 2011. Financial expenses in 2011 were VND 28.8 billion; more than 3 times higher than 2010. Administrative overheads in 2011 were more than 2 times higher than 2010. It made the company’s profitability ratios in 2011 were not as good as 2010.

Generally, the premises and facilities of the subject are above average. No caution needed for the small business transactions.

 

------------ 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.54.05

UK Pound

1

Rs.83.45

Euro

1

Rs.72.53

 

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.