MIRA INFORM REPORT

 

 

Report Date :

14.01.2013

 

IDENTIFICATION DETAILS

 

Name :

nUTIFARM-cORPORATION

 

 

Registered Office :

Lot B2-54, Road No.1, Tan Dong Hiep B Industrial Park,Tan Dong Hiep Ward, Di An Town, Binh Duong Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishment :

2003

 

 

Com. Reg. No.:

3700499598

 

 

Legal Form :

Joint stock company

 

 

Line of Business :

Manufacturer and Trading in Animal Feeds.

 

 

No. of Employees :

140

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

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

English Name

 

NUTIFARM - CORPORATION

Vietnamese Name

 

CONG TY CO PHAN THUC AN DINH DUONG NUTIFARM

Short name

 

NUTIFARM

Type of Business

 

Joint stock company

Year Established

 

2003

Business Registration No.

 

3700499598

Date of Registration

 

10 Dec 2010

Date of 07th Adjustment

 

19 Jan 2012

Date of 08th Adjustment

 

06 Jun 2012

Place of Registration

 

Business Registration Office - Planning and Investment Department of Binh Duong Province

Current registered capital

 

VND 58,500,000,000

Tax code

 

3700499598

Total Employees

 

140

Size

 

Medium

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Business Registration No: 4603000068 which was issued on 07th May 2003

Changed to: 3700499598

10 Dec 2010

2

Subject has got former chartered capital: 30,000,000,000 VND

Changed to: 45,000,000,000 VND

10 Dec 2010

3

Subject has got former Chartered capital: 45,000,000,000 VND

Changed to: 58,500,000,000 VND

19 Jan 2012

4

Subject has got former registration English name: NUTIFARM CORPORATION

Changed to: NUTIFARM - CORPORATION

19 Jan 2012

 

 

ADDRESSES

 

Head Office

Address

 

Lot B2-54, Road No.1, Tan Dong Hiep B Industrial Park,Tan Dong Hiep Ward, Di An Town, Binh Duong Province, Vietnam

Telephone

 

(84-650) 373 8888 / 373 8777

Fax

 

(84-650) 373 8666

Email

 

nuti@nutifarm.com

Occupied Area

 

24,000m2

 

 

DIRECTORS

 

1. NAME

 

Mr. TRAN QUOC OAI

Position

 

General Director

Date of Birth

 

01 Nov 1962

ID Number/Passport

 

023623704

ID Issue Date

 

17 Dec 1997

ID Issue Place

 

Police Station of Hochiminh City

Resident

 

No. 105D, Cuu Long Housing Compound, Ngo Tat To Street, Ward 22, Binh Thanh District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Notes: the given name (Mr. PHAM MINH PHUONG) stopped working for the subject long time ago.

2. NAME

 

Mr. NGUYEN TAN TRUNG

Position

 

Deputy General Director

Nationality

 

Vietnamese

 

3. NAME

 

Ms. BUI THI MY NU

Position

 

Chief Accountant

Nationality

 

Vietnamese

 


 

BUSINESS NATURE AND ACTIVITIES

 

The subject registered operating in the following lines of business:

-          Manufacturing and trading in animal feeds

-          Trading in materials for feed processing industry

-          Processing and trading in agricultural products

-           Breeding animals

-          Raising of poultry

-          Marine aquaculture

-          Wholesale of rice

-          Wholesale of food

-          Real estate activities with own or leased property

-          Raising of sheep and goats

-          Raising of pigs

-          Freshwater aquaculture

-          Processing and preserving of fish, crustaceans and mollusks

-          Processing and preserving of fruit and vegetables

-          Manufacture of macaroni, noodles, couscous and similar farinaceous products

-          Wholesale of agricultural raw materials (except wood, bamboo) and live animals

-          Freight transport by road

-          Warehousing and storage

-          Other transportation support activities

-          Wholesale of waste and scrap and other products n.e.c

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Materials and equipment

·         Market

 

Netherlands, Australia, USA, Singapore, Argentina, India, Indonesia, Germany

·         Ratio

 

70%

·         Mode of payment

 

L/C

 

EXPORT:

·         Types of products

 

Bran, cashew nuts

·         Market

 

China, Malaysia, Canada etc

·         Mode of payment

 

D/P

Notes: The rest 85 % products of the Subject are consumed in domestic.

 

 

BANKERS

 

1. HSBC VIETNAM LTD

Address

 

6th Floor, No. 235 Dong Khoi Str., Ben Nghe ward, District 1, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 38292288

 

2. VIETNAM TECHNOLOGYCAL AND COMMERCIAL JOINT STOCK BANK GIA DINH BRANCH

Address

 

Tuoi Tre Building, 60A Hoang Van Thu Str, Ward 9 , Phu Nhuan District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 39954540

Fax

 

(84-8) 39954541

 

3. DONG A COMMERCIAL JOINT STOCK BANK - BRANCH IN DISTRICT 4

Address

 

No. 154-156-158 Nguyen Tat Thanh Street, Ward 13, District 4, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 5401 1511

Fax

 

(84-8) 5401 1512

 

4. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE TRANSACTION CENTER NO.2

Address

 

No.79A Ham Nghi Str, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3829 0715

Fax

 

(84-8) 3829 5342

Notes: currently, the subject does not have transaction with Joint Stock Commercial Bank For Foreign Trade Of Vietnam HCM Branch.

 


 

SHAREHOLDERS

 

Following is registration shareholder information of subject:

NAME

 

Mr. TRAN QUOC OAI

Position

 

General Director

Date of Birth

 

01 Nov 1962

ID Number/Passport

 

023623704

Issued on

 

17 Dec 1997

Issued Place

 

Police Station of Hochiminh City

Resident

 

No. 105D, Cuu Long Housing Compound, Ngo Tat To Street, Ward 22, Binh Thanh District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Shares

 

5,200,000

Value of shares

 

VND 52,000,000,000

Percentage

 

88.89%

 

 

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

224,039,648,728

185,558,641,242

138,924,092,153

I. Cash and cash equivalents

1,257,781,242

4,642,157,684

5,633,349,658

1. Cash

1,257,781,242

4,642,157,684

407,313,115

2. Cash equivalents

0

0

5,226,036,543

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

90,879,868,251

78,893,135,808

59,997,008,972

1. Receivable from customers

53,451,905,327

53,834,376,614

39,422,512,360

2. Prepayments to suppliers

37,427,962,924

25,045,759,194

20,561,496,612

3. Inter-company receivable

0

 

0

4. Receivable according to the progress of construction

0

 

0

5. Other receivable

0

13,000,000

13,000,000

6. Provisions for bad debts

0

 

0

IV. Inventories

127,139,796,305

91,928,754,586

64,657,743,426

1. Inventories

127,139,796,305

91,928,754,586

64,657,743,426

2. Provisions for devaluation of inventories

0

 

0

V. Other Current Assets

4,762,202,930

10,094,593,164

8,635,990,097

1. Short-term prepaid expenses

23,760,000

23,760,000

23,760,000

2. VAT to be deducted

440,684,327

 

1,201,540,907

3. Taxes and other accounts receivable from the State

0

85,491,891

0

4. Other current assets

4,297,758,603

9,985,341,273

7,410,689,190

B. LONG-TERM ASSETS

44,083,974,204

36,167,613,210

40,383,150,578

I. Long term accounts receivable

0

0

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

0

0

0

5. Provisions for bad debts from customers

0

0

0

II. Fixed assets

44,083,974,204

36,167,613,210

40,383,150,578

1. Tangible assets

20,044,189,945

22,076,679,305

25,875,756,890

- Historical costs

48,056,887,711

42,344,957,730

41,304,456,985

- Accumulated depreciation

-28,012,697,766

-20,268,278,425

-15,428,700,095

2. Financial leasehold assets

12,810,918,431

2,588,193,301

2,730,778,308

- Historical costs

15,453,454,577

4,383,733,855

3,616,059,426

- Accumulated depreciation

-2,642,536,146

-1,795,540,554

-885,281,118

3. Intangible assets

11,228,865,828

11,502,740,604

11,776,615,380

- Initial costs

13,669,853,306

13,669,853,306

13,669,853,306

- Accumulated amortization

-2,440,987,478

-2,167,112,702

-1,893,237,926

4. Construction-in-progress

0

0

0

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

0

0

0

1. Long-term prepaid expenses

0

0

0

2. Deferred income tax assets

0

0

0

3. Other long-term assets

0

0

0

VI. Goodwill

0

0

0

1. Goodwill

0

0

0

TOTAL ASSETS

268,123,622,932

221,726,254,452

179,307,242,731

 

LIABILITIES

A- LIABILITIES

210,222,953,389

169,092,323,793

145,385,309,522

I. Current liabilities

165,557,348,689

154,916,262,728

124,039,785,636

1. Short-term debts and loans

159,256,160,689

149,520,576,473

105,469,505,327

2. Payable to suppliers

5,345,153,843

4,592,496,420

17,404,487,140

3. Advances from customers

0

 

0

4. Taxes and other obligations to the State Budget

530,811,078

342,768,687

729,794,563

5. Payable to employees

425,223,079

460,421,148

341,761,883

6. Accrued expenses

0

0

0

7. Inter-company payable

0

0

0

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

0

0

94,236,723

10. Provisions for short-term accounts payable

0

0

0

11. Bonus and welfare funds

0

0

0

II. Long-Term Liabilities

44,665,604,700

14,176,061,065

21,345,523,886

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

44,665,604,700

14,176,061,065

21,345,523,886

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

57,900,669,543

52,633,930,659

33,921,933,209

I. OWNER’S EQUITY

57,900,669,543

52,633,930,659

33,921,933,209

1. Capital

45,000,000,000

45,000,000,000

30,000,000,000

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

0

7. Business promotion fund

0

0

0

8. Financial reserved fund

0

0

0

9. Other funds

0

0

0

10. Retained earnings

12,900,669,543

7,633,930,659

3,921,933,209

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

0

TOTAL LIABILITIES AND OWNER’S EQUITY

268,123,622,932

221,726,254,452

179,307,242,731

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

FY2009

1. Total Sales

646,157,968,737

674,798,126,087

603,760,031,802

2. Deduction item

0

 

0

3. Net revenue

646,157,968,737

674,798,126,087

603,760,031,802

4. Costs of goods sold

604,802,078,876

644,612,433,921

579,880,689,335

5. Gross profit

41,355,889,861

30,185,692,166

23,879,342,467

6. Financial income

1,253,026,713

1,910,263,396

3,280,278,801

7. Financial expenses

30,013,838,053

21,813,320,795

15,344,944,739

- In which: Loan interest expenses

18,678,671,684

17,814,400,265

10,633,367,614

8. Selling expenses

5,579,352,207

5,570,026,125

5,533,937,658

9. Administrative overheads

2,484,073,340

2,679,269,377

2,324,238,304

10. Net operating profit

4,531,652,974

2,033,339,265

3,956,500,567

11. Other income

1,032,276,057

2,477,164,231

986,908,871

12. Other expenses

18,014,014

57,180,129

0

13. Other profit /(loss)

1,014,262,043

2,419,984,102

986,908,871

14. Total accounting profit before tax

5,545,915,017

4,453,323,367

4,943,409,438

15. Current corporate income tax

291,160,538

333,999,253

807,153,220

16. Deferred corporate income tax

 

 

 

17. Interest from subsidiaries/related companies

 

 

 

18. Profit after tax

5,254,754,479

4,119,324,114

4,136,256,218

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

FY2009

Average Industry

Current liquidity ratio

1.35

1.20

1.12

1.47

Quick liquidity ratio

0.59

0.60

0.60

0.70

Inventory circle

5.52

8.23

8.97

8.31

Average receive period

51.34

42.67

36.27

28.57

Utilizing asset performance

2.41

3.04

3.37

2.64

Liability by total assets

78.41

76.26

81.08

58.07

Liability by owner's equity

363.08

321.26

428.59

182.19

Ebit / Total assets (ROA)

9.03

10.04

8.69

10.02

Ebit / Owner's equity (ROE)

41.84

42.31

45.92

25.93

Ebit / Total revenue (NPM)

3.75

3.30

2.58

3.82

Gross profit / Total revenue (GPM)

6.40

4.47

3.96

8.54

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Medium

Payment status

 

Average

Financial Situation

 

Average

Development trend

 

Stable

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Direct payment or through its corresponding bank, L/C, D/P

Sale Methods

 

Retailer and Wholesaler

 

 

INTERPRETATION ON THE SCORES

 

NUTIFARM - CORPORATION was established in 2003. The head office and factory are locating at “Lot B2-54, Road No.1, Tan Dong Hiep B Industrial Park, Tan Dong Hiep Ward, Di An Town, Binh Duong Province, Vietnam” with the total area of 24,000 sqm. Currently, the registered capital of the subject is VND 58,500,000,000.

 

The subject specializes in manufacturing and trading in animal feeds. Now, it is one of largest local companies in the animal and aquatic feed industry in Vietnam. The subject mainly imports material and equipment from Argentina (soybean), India, the US, etc. It also exports bran and cashew nuts to China, Malaysia and Canada. However, main operating market of the subject is domestic. It has many types of products for animal, poultry and fish. Its annual production capacity of feed mill is 140,000 tons of finished pelleted feed. Half of the output is pig feed and the remainder is being for poultry, fish and dairy cow.

 

Competitive capacity of the subject is acceptable. Some competitors of subject: Proconco, CP Vietnam, Cargill Vietnam, Lai Thieu, CJ Vina Agri, Thanh Binh, Vina, Dinh Duong A Chau, Thanh Cong, Grobest & I - Mei Industrial VN and New Hope. The revenue of the subject is increasing annually. Its premises and facilities are fair. In general, the subject has financial situation to meet all normal commitments.

 

 

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

 

 

 

 

 

 

 

 


 

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 :

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%)

 

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.