|
Report Date : |
26.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
DONG NAM MANUFACTURING - TRADING PHARMACEUTICAL CORPORATION |
|
|
|
|
Registered Office : |
Lot 2A, Road 1A, Tan Tao Industrial Park, Binh Tan District, Ho Chi Minh City, |
|
|
|
|
Country : |
Vietnam |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Year of Incorporation : |
2001 |
|
|
|
|
Com. Reg. No.: |
0302476229 |
|
|
|
|
Legal Form : |
Joint Stock Company |
|
|
|
|
Line of Business : |
The subject is specializing in manufacturing and trading in medicines. |
|
|
|
|
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 : |
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) |
|
Viet Nam |
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 |
|
DONG NAM MANUFACTURING - TRADING
PHARMACEUTICAL CORPORATION |
|
Registered Vietnamese Name |
|
CONG TY CO PHAN SAN XUAT - THUONG MAI DUOC
PHAM DONG NAM |
|
Trade name |
|
DONG NAM MANUFACTURING - TRADING PHARMACEUTICAL
CORPORATION |
|
Registered Short name |
|
DN PHARMA CORP |
|
Type of Business |
|
Joint stock company |
|
Year Established |
|
2001 |
|
Business Registration No. |
|
0302476229 |
|
Date of latest adjustment (2nd) |
|
21 Jan 2010 |
|
Place of Registration |
|
Business Registration Office - Planning
and Investment Department of Hochiminh City |
|
Business
Registration No. |
|
4103006352
|
|
Date
of registration |
|
05
Apr 2007 |
|
Place
of registration |
|
Business Registration Office - Planning
and Investment Department of Hochiminh City |
|
Chartered capital |
|
VND 60,000,000,000 |
|
Tax code |
|
0302476229 |
|
Total Employees |
|
150 |
Historical Identification & Legal form
English Name
|
|
DONG NAM MANUFACTURING - TRADING PHARMACEUTICAL
CO., LTD |
|
Vietnamese name |
|
CONG TY TNHH SAN XUAT - THUONG MAI DUOC PHAM DONG
NAM |
|
Short Name |
|
DN PHARMA CO.,
LTD |
|
Business
Registration |
|
4102007584
|
Date
of Issuance
|
|
04 Dec 2001 |
|
Place of Issuance |
|
Business Registration Office - Planning and Investment Department of
Hochiminh City |
|
Type of Business |
|
Limited liability company |
|
Registered
Capital |
|
VND
42,000,000,000 |
ADDRESSES
|
||
|
|
||
|
Head Office |
||
|
Address |
|
Lot 2A, Road 1A, Tan Tao Industrial Park,
Binh Tan District, Ho Chi Minh City, Vietnam |
|
Telephone |
|
(84-8) 3754 1748 - 3754 1749 |
|
Fax |
|
(84-8) 3754 1750 |
|
Email |
|
|
|
Website |
|
|
|
|
||
|
Representative
office in Dak Lak |
||
|
Address |
|
No. 05 Ly Thuong Kiet Street, Buon Ma
Thuot City, Dak Lak Province, Vietnam |
|
|
||
DIRECTORS
|
||
|
|
||
|
1.
NAME |
|
Mr.
VO TAN LOC |
|
Position |
|
General Director |
|
Date of Birth |
|
13 Mar 1955 |
|
ID Number/Passport |
|
020190901 |
|
ID Issue Date |
|
04 Oct 1995 |
|
ID Issue Place |
|
Police station of
Hochiminh City |
|
Resident |
|
26/7 Truong Dinh
Street, Ben Thanh Ward, District 1, Ho Chi Minh City, Vietnam |
|
Nationality |
|
Vietnamese |
|
|
||
|
2.
NAME |
|
Mr.
HOANG DANG TIEN |
|
Position |
|
Deputy General Director |
|
Current resident |
|
Ho Chi Minh City, Vietnam |
|
Nationality |
|
Vietnamese |
|
|
||
|
3.
NAME |
|
Mr.
LE THI HOANG YEN |
|
Position |
|
Chief Accountant |
|
Current resident |
|
Ho Chi Minh City, Vietnam |
|
Nationality |
|
Vietnamese |
|
|
||
BUSINESS NATURE AND ACTIVITIES
|
|
|
|
The
subject is specializing in manufacturing and trading in medicines. |
|
|
|
IMPORT & EXPORT ACTIVITIES |
||
|
|
||
|
IMPORT: |
||
|
·
Types of products |
|
materials |
|
·
Market |
|
India, China, French |
|
|
||
|
EXPORT: |
||
|
·
Types of products |
|
N/A |
|
|
||
BANKERS
|
||
|
|
||
|
1.
BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM TAY SAI GON BRANCH |
||
|
Address |
|
No.2-4-6 plot C str,Tan Tao industrial park, Binh Tan District, Ho Chi
Minh City, Vietnam |
|
Telephone |
|
(84-8) 3750 5376 |
|
|
||
|
2.
JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM |
||
|
Address |
|
No. 93 - 95 Ham Nghi Str, Nguyen Thai Binh Ward, District 1, Ho Chi
Minh City, Vietnam |
|
Telephone |
|
(84-8) 3821 5388 |
|
Fax |
|
(84-8) 3829 0696 |
|
|
||
SHAREHOLDERS
|
||
|
|
||
|
1.
NAME |
|
Mr.
VO TAN LOC |
|
Position |
|
General Director |
|
Date of Birth |
|
13 Mar 1955 |
|
ID Number/Passport |
|
020190901 |
|
Issued on |
|
04 Oct 1995 |
|
Issued Place |
|
Police station of Hochiminh city |
|
Resident |
|
26/7 Truong Dinh Street, Ben Thanh Ward,
District 1, Ho Chi Minh City, Vietnam |
|
Nationality |
|
Vietnamese |
|
Value of shares |
|
VND 59,000,000,000 |
|
Percentage |
|
98.33% |
|
|
||
|
2.
NAME |
|
Mr.
TA QUAN LUONG |
|
ID Number/Passport |
|
021861943 |
|
Resident |
|
350-352 Dien Bien Phu Street, Ward 11,
District 10, Ho Chi Minh City, Vietnam |
|
Nationality |
|
Vietnamese |
|
Value of shares |
|
VND 900,000,000 |
|
Percentage |
|
1.5% |
|
|
||
|
3.
NAME |
|
Ms.
BUI THI HUONG TRINH |
|
ID Number/Passport |
|
020932784 |
|
Resident |
|
514 Bui Dinh Tuy, Ward 12, Binh Thanh
District, Ho Chi Minh City, Vietnam |
|
Nationality |
|
Vietnamese |
|
Value of shares |
|
VND 100,000,000 |
|
Percentage |
|
0.17% |
|
|
||
FINANCIAL DATA
|
|
|
|
|
|
BALANCE
SHEET |
|
Unit: One VND
|
|
|
Balance sheet
date |
31/12/2011 |
|
Number of weeks |
52 |
ASSETS
|
|
|
A – CURRENT
ASSETS |
89,774,474,951 |
|
I. Cash and cash
equivalents |
1,184,877,069 |
|
1. Cash |
1,184,877,069 |
|
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 |
55,857,129,705 |
|
1. Receivable from customers |
2,344,146,579 |
|
2. Prepayments to suppliers |
572,671,183 |
|
3. Inter-company receivable |
0 |
|
4. Receivable according to the progress of construction |
0 |
|
5. Other receivable |
52,940,311,943 |
|
6. Provisions for bad debts |
0 |
|
IV. Inventories |
31,950,795,085 |
|
1. Inventories |
31,950,795,085 |
|
2. Provisions for devaluation of inventories |
0 |
|
V. Other Current
Assets |
781,673,092 |
|
1. Short-term prepaid expenses |
196,425,101 |
|
2. VAT to be deducted |
525,557,087 |
|
3. Taxes and other accounts receivable from the State |
0 |
|
4. Other current assets |
59,690,904 |
|
B. LONG-TERM
ASSETS |
9,037,523,616 |
|
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
|
9,037,523,616 |
|
1. Tangible assets |
7,468,846,828 |
|
- Historical costs |
28,930,735,555 |
|
- Accumulated depreciation |
-21,461,888,727 |
|
2. Financial leasehold assets |
0 |
|
- Historical costs |
0 |
|
- Accumulated depreciation |
0 |
|
3. Intangible assets |
1,568,676,788 |
|
- Initial costs |
2,055,013,643 |
|
- Accumulated amortization |
-486,336,855 |
|
4. Construction-in-progress |
0 |
|
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 |
0 |
|
1. Goodwill |
0 |
|
TOTAL ASSETS |
98,811,998,567 |
|
|
|
LIABILITIES
|
|
|
A- LIABILITIES |
35,868,623,064 |
|
I. Current
liabilities |
35,868,623,064 |
|
1. Short-term debts and loans |
9,999,087,086 |
|
2. Payable to suppliers |
11,702,110,970 |
|
3. Advances from customers |
7,847,343,773 |
|
4. Taxes and other obligations to the State Budget |
652,029,285 |
|
5. Payable to employees |
0 |
|
6. Accrued expenses |
0 |
|
7. Inter-company payable |
0 |
|
8. Payable according to the progress of construction contracts |
0 |
|
9. Other payable |
5,668,051,950 |
|
10. Provisions for short-term accounts payable |
0 |
|
11. Bonus and welfare funds |
0 |
|
II. Long-Term
Liabilities |
0 |
|
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 |
0 |
|
5. Deferred income tax payable |
0 |
|
6. Provisions for unemployment allowances |
0 |
|
7. Provisions for long-term accounts payable |
0 |
|
8. Unearned Revenue |
0 |
|
9. Science and technology development fund |
0 |
|
B- OWNER’S
EQUITY |
62,943,375,503 |
|
I. OWNER’S
EQUITY |
62,943,375,503 |
|
1. Capital |
60,000,000,000 |
|
2. Share premiums |
0 |
|
3. Other sources of capital |
0 |
|
4. Treasury stocks |
0 |
|
5. Differences on asset revaluation |
0 |
|
6. Foreign exchange differences |
7,083,035 |
|
7. Business promotion fund |
0 |
|
8. Financial reserved fund |
0 |
|
9. Other funds |
0 |
|
10. Retained earnings |
2,936,292,468 |
|
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 |
98,811,998,567 |
|
|
|
|
PROFIT
& LOSS STATEMENT |
|
|
|
|
|
Description |
FY2011 |
|
1. Total Sales |
75,967,763,132 |
|
2. Deduction item |
0 |
|
3. Net revenue |
75,967,763,132 |
|
4. Costs of goods sold |
58,833,941,639 |
|
5. Gross profit |
17,133,821,493 |
|
6. Financial income |
62,402,949 |
|
7. Financial expenses |
3,496,876,374 |
|
- In which: Loan interest expenses |
2,544,121,232 |
|
8. Selling expenses |
109,403,253 |
|
9. Administrative overheads |
9,853,490,127 |
|
10. Net operating profit |
3,736,454,688 |
|
11. Other income |
100,619,665 |
|
12. Other expenses |
106,370,145 |
|
13. Other profit /(loss) |
-5,750,480 |
|
14. Total accounting profit before tax |
3,730,704,208 |
|
15. Current corporate income tax |
475,942,769 |
|
16. Deferred corporate income tax |
0 |
|
17. Interest from subsidiaries/related companies |
0 |
|
18. Profit after tax |
3,254,761,439 |
|
|
||
|
FINANCIAL RATIOS
AND AVERAGE INDUSTRY RATIOS |
||
|
|
||
|
Description |
FY2011 |
Average Industry |
|
Current liquidity ratio |
2.50 |
1.65 |
|
Quick liquidity ratio |
1.61 |
1.04 |
|
Inventory circle |
1.84 |
4.14 |
|
Average receive period |
268.38 |
105.37 |
|
Utilizing asset performance |
0.77 |
1.20 |
|
Liability by total assets |
36.30 |
53.11 |
|
Liability by owner's equity |
56.99 |
159.74 |
|
Ebit / Total assets (ROA) |
6.35 |
10.37 |
|
Ebit / Owner's equity (ROE) |
9.97 |
23.03 |
|
Ebit / Total revenue (NPM) |
8.26 |
10.15 |
|
Gross profit / Total revenue (GPM) |
22.55 |
25.88 |
|
Note: The Average Industry was calculated by VietnamCredit based on our own
statistical data |
||
|
|
||
PAYMENT HISTORY & PERFORMANCE EXPERIENCES
|
||
|
|
||
|
Trade Morality |
|
Normal |
|
Liquidity |
|
Medium/High |
|
Payment status |
|
Average |
|
Financial Situation |
|
Above Average |
|
Development trend |
|
Even |
|
Litigation data |
|
No |
|
Bankruptcy |
|
No |
|
Payment Methods |
|
Direct payment or through its corresponding bank |
|
Sale Methods |
|
Wholesaler |
|
|
INTERPRETATION ON THE SCORES
|
|
|
|
Former
of the subject was DONG NAM MANUFACTURING - TRADING
PHARMACEUTICAL CO., LTD which was established in 2001 under the business
registration No. 4102007584. In 2007, the subject changed type to joint stock
company. At present, the subject operates under the business registration No.
0302476229 and registered capital VND 60,000,000,000. Subject
is specializing in manufacturing and trading medicines. Some subject's
products are well-known in domestic market such as: Sebast20, Tophen, MySoren
ginseng and Zennifplus... Moreover, these products are also given award such
as: "Gold Cup of Vietnamese brand", Certificate of Good
Manufacturing Practices by Drug Administration of Vietnam... The premises and
facilities of the subject are fairly good. Management capacity of the subject
is acceptable. It operates rather effectively. Its position in the industry
is average. In 2010, the subject opened a representative office in Buon Me
Thuot City, Dak Lak Province. In general, the
subject operates normally in medium scale with over 150 staff. In our
opinion, the subject has capacity to meet all small – medium 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.54.04 |
|
|
1 |
Rs.81.80 |
|
Euro |
1 |
Rs.71.41 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.