MIRA INFORM REPORT

 

 

Report Date :

18.01.2013

 

IDENTIFICATION DETAILS

 

Name :

GIA KHANH GENERAL SERVICES TRADING COMPANY LIMITED

 

 

Registered Office :

No. 1 Lane 34/153/8 Vinh Tuy Str, Vinh Tuy Ward, Hai Ba Trung District, Ha Noi City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

2005

 

 

Com. Reg. No.:

0101673668

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Trading in tires and tube for motorbike

 

 

No. of Employees :

8

 

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 :

Slow

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

(31.03.2012)

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

 

GIA KHANH GENERAL SERVICES TRADING COMPANY LIMITED

Vietnamese Name

 

CONG TY TNHH THUONG MAI DICH VU TONG HOP GIA KHANH

Trade name

 

GIA KHANH GST CO., LTD

Type of Business

 

Limited liability company

Year Established

 

2005

Business Registration No.

 

0101673668

Date of Registration

 

2011

Place of Registration

 

Planning and Investment Department of Hanoi City

Chartered capital

 

VND 5,000,000,000

Status

 

Unlisted

Tax code

 

0101673668

Total Employees

 

8

Size

 

Small

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Chartered capital: VND 1,000,000,000

Changed to: VND 5,000,000,000

2011

2

Subject has got former Business Registration No: 0102020460

Changed to: 0101673668

2011

3

Subject has got former Shareholders: MR. NGUYEN TIEN DUNG (20%), MR. PHAM MINH ANH (80%)

Changed to: MR. LE VAN DAT (96%), MS. LE THI TRANG (4%)

2011

4

Subject has got former Board Of Director: MR. NGUYEN TIEN DUNG Changed to: MR. LE VAN DAT

2011

 

 

ADDRESSES

 

Registration Address

Address

 

No. 1 Lane 34/153/8 Vinh Tuy Str, Vinh Tuy Ward, Hai Ba Trung District, Ha Noi City, Vietnam

 

Transaction office in Ha Noi

Address

 

2nd Fl, No. 20 Mac Thi Buoi Str., Vinh Tuy, Hai Ba Trung District, Ha Noi City, Vietnam

Telephone

 

(84-4) 66544663

Fax

 

(84-4) 62783935

Email

 

levandat@hn.vnn.vn

 

Other office

Address

 

No. 201, Floor 2, I3 building Luong Dinh Cua Str., Phuong Mai Ward, Dong Da District, Ha Noi City, Vietnam

Telephone

 

++84 903446294

 

 

DIRECTORS

 

1. NAME

 

Mr. NGUYEN TIEN DUNG

Position

 

Former Director

Date of Birth

 

05 Jul 1979

ID Number/Passport

 

011984929

ID Issue Date

 

05 Jul 1979

ID Issue Place

 

Hanoi Police Station

Resident

 

No. 22, alley 20 Thanh Cong Str, Thanh Cong ward, Ba Dinh District, Ha Noi City, Vietnam

Current resident

 

No. 22, alley 20, Thanh Cong Str., Thanh Cong ward, Ba Dinh District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Mr. LE VAN DAT

Position

 

Director

ID Number/Passport

 

013008454

Resident

 

No.557 Minh Khai Str, Hai Ba Trung District, Ha Noi City, Vietnam

Tel/Mobile phone

 

++84 903446294

Email

 

levandat@hn.vnn.vn

Nationality

 

Vietnamese

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject registers and operates in the following business activities:
- Trading in tires and tube for motorbike
- Trading in motorbike equipments, spare part
- Trading in materials for construction, steel, chemistry
- Consignment of goods

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Types of products

 

Car tires

Market

 

China, India, and Korea

Mode of payment

 

TT, L/C

EXPORT:

Note: Currently, the subject does not export

 

 

 

BANKERS

 

1. EASTERN ASIA COMMERCIAL BANK HANOI BRANCH

Address

 

No. 11 Nguyen Bieu Str, Ba Dinh District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3843 9753

Fax

 

(84-4) 3823 6091

 

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. LE VAN DAT

Position

 

Director

ID Number/Passport

 

013008454

Resident

 

No.557 Minh Khai Str, Hai Ba Trung District, Ha Noi City, Vietnam

Email

 

levandat@hn.vnn.vn

Mobile phone

 

++84 903446294

Nationality

 

Vietnamese

Value of shares

 

VND 4,800,000,000

Percentage

 

96%

 

2 . NAME

 

Ms. LE THI TRANG

Nationality

 

Vietnamese

Value of shares

 

VND 200,000,000

Percentage

 

4%

 

 

 

 

FINANCIAL DATA

 

The subject’s financial data for FY 2010 is not available in our source.

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2009

31/12/2008

Number of weeks

52

52

52

Audit status

Unknown

Unknown

Unknown

ASSETS

A – CURRENT ASSETS

61,256,000,000

31,605,340,552

15,465,246,074

I. Cash and cash equivalents

11,283,000,000

1,479,925,754

457,961,800

1. Cash

0

1,479,925,754

457,961,800

2. Cash equivalents

11,283,000,000

0

0

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

17,862,000,000

12,752,865,970

3,202,201,665

1. Receivable from customers

4,166,000,000

8,227,329,725

1,552,500,755

2. Prepayments to suppliers

13,660,000,000

4,193,190,881

1,283,881,062

3. Inter-company receivable

0

0

0

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

36,000,000

332,345,364

365,819,848

6. Provisions for bad debts

0

 

 

IV. Inventories

31,554,000,000

14,229,866,260

11,299,334,922

1. Inventories

31,554,000,000

14,229,866,260

11,299,334,922

2. Provisions for devaluation of inventories

0

0

0

V. Other Current Assets

557,000,000

3,142,682,568

505,747,687

1. Short-term prepaid expenses

0

0

0

2. VAT to be deducted

66,000,000

618,530,503

432,243,658

3. Taxes and other accounts receivable from the State

6,000,000

6,493,519

6,493,519

4. Other current assets

485,000,000

2,517,658,546

67,010,510

B. LONG-TERM ASSETS

374,000,000

345,474,683

2,968,336,296

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

374,000,000

345,474,683

421,336,296

1. Tangible assets

374,000,000

0

0

- Historical costs

869,000,000

592,720,027

577,638,209

- Accumulated depreciation

-495,000,000

-247,245,344

-156,301,913

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

0

0

0

- Initial costs

0

0

0

- Accumulated amortization

0

0

0

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

2,547,000,000

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

2,547,000,000

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

61,630,000,000

31,950,815,235

18,433,582,370

 

LIABILITIES

A- LIABILITIES

56,093,000,000

30,769,629,534

17,398,976,300

I. Current liabilities

56,093,000,000

30,769,629,534

17,398,976,300

1. Short-term debts and loans

23,502,000,000

25,001,659,012

16,033,766,860

2. Payable to suppliers

13,987,000,000

2,350,925,790

241,185,435

3. Advances from customers

12,527,000,000

70,000,001

655

4. Taxes and other obligations to the State Budget

6,077,000,000

3,347,044,731

1,124,023,350

5. Payable to employees

0

0

0

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

0

10. Provisions for short-term accounts payable

0

0

0

11. Bonus and welfare funds

0

0

0

II. Long-Term Liabilities

0

0

0

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

0

0

0

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

5,537,000,000

1,181,185,701

1,034,606,070

I. OWNER’S EQUITY

5,531,000,000

1,174,264,487

1,027,684,856

1. Capital

5,000,000,000

1,000,000,000

1,000,000,000

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

28,000,000

27,684,856

27,684,856

10. Retained earnings

503,000,000

146,579,631

0

11. Construction investment fund

0

0

0

12. Business arrangement supporting fund

0

0

0

II. Other sources and funds

6,000,000

6,921,214

6,921,214

1. Bonus and welfare funds (Elder form)

6,000,000

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

61,630,000,000

31,950,815,235

18,433,582,370

 

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2009

FY2008

1. Total Sales

305,024,000,000

154,040,813,680

76,400,727,858

2. Deduction item

0

0

0

3. Net revenue

305,024,000,000

154,040,813,680

76,400,727,858

4. Costs of goods sold

296,860,000,000

149,909,016,707

73,279,177,107

5. Gross profit

8,164,000,000

4,131,796,973

3,121,550,751

6. Financial income

182,000,000

79,226,868

355,526,378

7. Financial expenses

4,002,000,000

1,188,076,518

2,323,364,915

- In which: Loan interest expenses

0

932,375,714

1,845,953,008

8. Selling expenses

0

0

0

9. Administrative overheads

4,108,000,000

2,840,989,312

1,057,220,275

10. Net operating profit

236,000,000

181,958,011

96,491,939

11. Other income

0

3,829

0

12. Other expenses

0

3,538,997

930,095

13. Other profit /(loss)

0

-3,535,168

-930,095

14. Total accounting profit before tax

236,000,000

178,422,843

95,561,844

15. Current corporate income tax

59,000,000

31,843,212

24,196,370

16. Deferred corporate income tax

0

0

0

17. Interest from subsidiaries/related companies

0

0

0

18. Profit after tax

177,000,000

146,579,631

71,365,474

 

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2009

FY2008

Average Industry

Current liquidity ratio

1.09

1.03

0.89

1.38

Quick liquidity ratio

0.53

0.56

0.24

0.79

Inventory circle

9.41

11.74

6.49

9.26

Average receive period

21.37

30.22

15.30

114.96

Utilizing asset performance

4.95

4.82

4.14

1.71

Liability by total assets

91.02

96.30

94.39

66.10

Liability by owner's equity

1,013.06

2,604.98

1,681.70

255.57

Ebit / Total assets (ROA)

0.38

3.48

10.53

9.92

Ebit / Owner's equity (ROE)

4.26

94.04

187.66

29.69

Ebit / Total revenue (NPM)

0.08

0.72

2.54

6.87

Gross profit / Total revenue (GPM)

2.68

2.68

4.09

10.81

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

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Medium

Payment status

 

Limited

Financial Situation

 

Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

TT, L/C

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Well-known

 

 

 

INTERPRETATION ON THE SCORES

 

GIA KHANH GENERAL SERVICES TRADING COMPANY LIMITED started operation since 2005. At the initial time, the subject’s capital was just VND 1 billion and had the original business Registration No. 0102020460. Now, it has changed the director, and the capital has been raised to VND 5 billion, with the new B.R.N 0101673668 as same as the tax code.

The subject company is specializing in trading tires, tube, and spare part for car/ motorbike (Mainly for car). Products of subject are imported mainly from China, India, and Korea then distribute in local market of Vietnam. It does not export.

The premises of the subject are small. The registration address is located in a small lane and very difficult to contact. All the business transactions are at 2nd Fl, No. 20 Mac Thi Buoi Street, Vinh Tuy Ward, Hai Ba Trung District, Hanoi City and it is only small room. Any business transaction of the subject is decided by managing director- Mr. Le Van Dat. He has many experiences after working for a long time in a state owned company in trading industry.

According to the given financial statements, the subject has gradual growth in total revenue and profit every year. In FY 2011, The utilizing asset performance is higher than average industry. It shows that the subject is operating quite effectively. However, the subject still retains large inventories and costs of goods sold as well. Though the liquidity ratios also go up slightly from year to year, the speed is still very low. Its liability ratios higher much than average industry and it seem not very stable in subject’s financial structure; especially Liability by owner's equity is too high in 3 years which implies risks to creditors.

In general, the subject is a small company in the market. It has capacity to meet small financial transactions only. Caution is needed for larger credit 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

Source: General Statistics Office

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.64

UK Pound

1

Rs.87.45

Euro

1

Rs.72.65

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.