MIRA INFORM REPORT

 

 

Report Date :

12.01.2013

 

IDENTIFICATION DETAILS

 

Name :

HONG AN CO., LTD

 

 

Registered Office :

No.40 Trinh Hoai Duc Street, Ward 13, District 5, Ho Chi Minh City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2010

 

 

Year of Incorporation :

2002

 

 

Com. Reg. No.:

0302531455

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

The subject specialized in trading cloths and fiber

 

 

No. of Employees :

10

 

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

 

Registration English Name

 

HONG AN CO., LTD

Registration Vietnamese Name

 

CONG TY TNHH HONG AN

Registration short name

 

H.A CO., LTD

Type of Business

 

Limited liability company

Year Established

 

2002

Business Registration No.

 

0302531455

Date of 13th adjustment

 

08 Feb 2011

Place of Registration

 

Business Registration Office - Planning and Investment Department of Ho Chi Minh City

Chartered capital

 

VND 2,500,000,000

Tax code

 

0302531455

Total Employees

 

10

 

Historical Identification & Legal form

 

List

Changed Items

1

Subject has got former Business Registration No: 4102008380 issued on 1st Feb 2002

Changed to: 0302531455

 

ADDRESSES

 

Head Office

Address

 

No.40 Trinh Hoai Duc Street, Ward 13, District 5, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 38592850

Fax

 

(84-8) 39509487

Note: The given tel numbers “84-8-7518798- 8756409” are of KIM VU FABRICS & FASHION CO.,LTD

 

Branch in Ho Chi Minh

Address

 

1392 Vo Van Kiet Street, Ward 1, District 6, Ho Chi Minh City, Vietnam

 

 

DIRECTORS

 

1. NAME

 

Mr. LUONG TRUNG HUNG

Position

 

Director

Date of Birth

 

13 Jan 1959

ID Number/Passport

 

022237964

ID Issue Date

 

19 Aug 1992

ID Issue Place

 

Police Station of Ho Chi Minh City

Resident

 

342/52 Tan Phuoc Street, Ward 7, District 10, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Ms. PHAM THI LOAN

Position

 

Chief Accountant

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject specialized in trading cloths and fiber
Following are subject's registered business activities:
Wholesale of textiles
Wholesale of electronic and telecommunications equipment and supplies
Wholesale of other machinery and equipment n.e.c
Wholesle of construction materials, installation supplies
Freight transport by road
Manufacture of parts and accessories for motor vehicles
Maintenance and repair of motor vehicles
Sale of motor vehicle parts and accessories
Sale of motorcycle parts and accessories
Wholesale on a fee or contract basis
Wholesale of agricultural raw materials (except wood, bamboo) and live animals
Wholesale of food
Wholesale of other household products
Wholesale of computer, computer peripheral equipment and software
Cargo handling
Other transportation support activities
Real estate activities with own or leased property
Renting and leasing of motor vehicles
Packaging activities
Repair of communication equipment
Other service activities n.e.c
Tour operator activities

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Cloths, fiber

·         Market

 

India, Thailand, Korea, China

·         Mode of payment

 

L/C, T/T

 

EXPORT:

·         Types of products

 

N/A

 

 

BANKERS

 

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

Address

 

No.129-129A Hau Giang, ward 5, District 6, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 39600478

Fax

 

(84-8) 39606217

 

2. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK CHO LON BRANCH

Address

 

No.485-487-489, Nguyen Chi Thanh str, ward 15, District 5, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 39555280

Fax

 

(84-8) 39555947

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. LUONG TRUNG HUNG

Position

 

Director

Date of Birth

 

13 Jan 1959

ID Number/Passport

 

022237964

Issued on

 

19 Aug 1992

Issued Place

 

Police Station of Ho Chi Minh City

Resident

 

342/52 Tan Phuoc Street, Ward 7, District 10, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 200,000,000

Percentage

 

8%

 

2. NAME

 

Ms. NGUYEN THI MAI HUONG

ID Number/Passport

 

024044454

Resident

 

No. 128 Xo Viet Nghe Tinh Street, Ward 21, Binh Thanh District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 200,000,000

Percentage

 

8%

 

3. NAME

 

Ms. NGUYEN THI UT

ID Number/Passport

 

021957165

Resident

 

No.74 Road 28, Ward 10, District 6, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 200,000,000

Percentage

 

8%

 

4. NAME

 

Ms. PHAM THI THU

ID Number/Passport

 

023380991

Resident

 

No.128 Xo Viet Nghe Tinh Str, Ward 21, Binh Thanh District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 1,500,000,000

Percentage

 

60%

 

5. NAME

 

Mr. NGUYEN VAN UT

ID Number/Passport

 

022547812

Resident

 

No.66, Road 02, Lu Gia Apartment, Ward 11, District 11, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 400,000,000

Percentage

 

16%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2010

31/12/2009

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

22,215,000,000

18,016,887,443

I. Cash and cash equivalents

1,086,000,000

1,001,955,124

1. Cash

1,086,000,000

1,001,955,124

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

1,084,000,000

2,159,291,913

1. Receivable from customers

512,000,000

2,108,291,913

2. Prepayments to suppliers

0

0

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

572,000,000

51,000,000

6. Provisions for bad debts

0

0

IV. Inventories

16,622,000,000

13,329,378,926

1. Inventories

16,622,000,000

13,329,378,926

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

3,423,000,000

1,526,261,480

1. Short-term prepaid expenses

2,050,000,000

588,586,386

2. VAT to be deducted

1,238,000,000

0

3. Taxes and other accounts receivable from the State

0

802,670,584

4. Other current assets

135,000,000

135,004,510

B. LONG-TERM ASSETS

0

0

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

0

0

1. Tangible assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

2. Financial leasehold assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

3. Intangible assets

0

0

- Initial costs

0

0

- Accumulated amortization

0

0

4. Construction-in-progress

0

0

III. Investment property

0

0

Historical costs

0

0

Accumulated depreciation

0

0

IV. Long-term investments

0

0

1. Investments in affiliates

0

0

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

0

0

1. Long-term prepaid expenses

0

0

2. Deferred income tax assets

0

0

3. Other long-term assets

0

0

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

22,215,000,000

18,016,887,443

 

LIABILITIES

A- LIABILITIES

18,504,000,000

14,762,780,135

I. Current liabilities

14,504,000,000

12,363,280,135

1. Short-term debts and loans

6,343,000,000

8,214,000,000

2. Payable to suppliers

6,991,000,000

3,690,035,310

3. Advances from customers

0

0

4. Taxes and other obligations to the State Budget

1,170,000,000

459,244,825

5. Payable to employees

0

0

6. Accrued expenses

0

0

7. Inter-company payable

0

0

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

4,000,000,000

2,399,500,000

1. Long-term accounts payable to suppliers

0

0

2. Long-term inter-company payable

0

2,399,500,000

3. Other long-term payable

0

0

4. Long-term debts and loans

4,000,000,000

0

5. Deferred income tax payable

0

0

6. Provisions for unemployment allowances

0

0

7. Provisions for long-term accounts payable

0

0

8. Unearned Revenue

 

 

9. Science and technology development fund

 

 

B- OWNER’S EQUITY

3,711,000,000

3,254,107,308

I. OWNER’S EQUITY

3,711,000,000

3,254,107,308

1. Capital

2,000,000,000

2,000,000,000

2. Share premiums

0

0

3. Other sources of capital

0

0

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

1,711,000,000

1,254,107,308

11. Construction investment fund

0

0

12. Business arrangement supporting fund

0

0

II. Other sources and funds

0

0

1. Bonus and welfare funds (Elder form)

0

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

22,215,000,000

18,016,887,443

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2010

FY2009

1. Total Sales

51,282,000,000

40,271,187,238

2. Deduction item

0

0

3. Net revenue

51,282,000,000

40,271,187,238

4. Costs of goods sold

48,772,000,000

38,301,471,404

5. Gross profit

2,510,000,000

1,969,715,834

6. Financial income

3,000,000

5,833,588

7. Financial expenses

978,000,000

718,904,615

- In which: Loan interest expenses

978,000,000

718,904,615

8. Selling expenses

0

0

9. Administrative overheads

550,000,000

529,750,505

10. Net operating profit

985,000,000

726,894,302

11. Other income

0

0

12. Other expenses

0

0

13. Other profit /(loss)

0

0

14. Total accounting profit before tax

985,000,000

726,894,302

15. Current corporate income tax

246,000,000

127,206,503

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

739,000,000

599,687,799

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2010

FY2009

Average Industry

Current liquidity ratio

1.53

1.46

1.13

Quick liquidity ratio

0.39

0.38

0.62

Inventory circle

3.26

2.87

5.92

Average receive period

7.72

19.57

55.47

Utilizing asset performance

2.31

2.24

1.39

Liability by total assets

83.30

81.94

70.41

Liability by owner's equity

498.63

453.67

301.78

Ebit / Total assets (ROA)

8.84

8.02

9.72

Ebit / Owner's equity (ROE)

52.90

44.43

34.85

Ebit / Total revenue (NPM)

3.83

3.59

7.85

Gross profit / Total revenue (GPM)

4.89

4.89

16.74

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Low/Medium

Payment status

 

Normal

Financial Situation

 

Average

Development trend

 

Stable

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Direct payment or through its corresponding bank (L/C,T/T)

Sale Methods

 

Retailer and Wholesaler

 

 

 

INTERPRETATION ON THE SCORES

 

HONG AN CO., LTD was established in 2002 under business registration No. 4102008380. Now, it has operated under business registration No. 0302531455 and chartered capital VND 2.5 billion. Its head office is at No.40 Trinh Hoai Duc Street, Ward 13, District 5, Ho Chi Minh City, Vietnam.

The subject specialized in trading cloths and fiber. It mainly imports from India, Thailand, Korea and China then distributing in the domestic market. Besides, it also trades products of local suppliers. Main operation market of subject is in Ho Chi Minh City.

Director of subject - Mr. LUONG TRUNG HUNG has experienced in this field for long time and created good relation with traditional partners. At the present, its business activities are fairly busy.

In general, the subject has capacity to meet small and normal financial commitments.

 

Following is import export tax payable of the subject in the latest 30 days:

Customs code

Registration Date

Import tax payable (unit: VND)

Export tax payable (unit: VND)

VAT payable (unit: VND)

C02L

17/12/2012

71,388,845

0

66,629,588

C02L

17/12/2012

31,795,067

0

29,660,122

C02L

17/12/2012

77,198,145

0

72,051,602

C02L

21/12/2012

44,409,628

0

41,448,986

C02L

24/12/2012

70,009,948

0

65,342,618

C02L

25/12/2012

100,291,679

0

93,605,567

C02L

03/01/2013

29,244,543

0

61,413,540

C02L

04/01/2013

43,060,599

0

40,171,147

C02L

04/01/2013

70,873,727

0

66,148,812

 

------------ 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.54.54

UK Pound

1

Rs.88.05

Euro

1

Rs.72.29

 

 

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%)

 

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.