MIRA INFORM REPORT

 

 

Report Date :

11.07.2013

 

IDENTIFICATION DETAILS

 

Name :

GALAXY INTERNATIONAL TRADING CORPORATION

 

 

Registered Office :

35 Road 35, Quarter 7, Hiep Binh Chanh Ward , Thu Duc District, Ho Chi Minh City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

21.08.2010

 

 

Com. Reg. No.:

0310271313

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

The subject specializes in trading in agricultural products.

 

 

No. of Employees :

15

 

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 but correct

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. 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 hurt Vietnam's export-oriented economy, with GDP in 2012 growing at 5%, the slowest rate of growth since 1999. In 2012, however, exports increased by more than 18%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the Government shifted policy away from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. Although Vietnam unveiled a broad, "three pillar" economic reform program in early 2012, proposing the restructuring of public investment, state-owned enterprises, and the banking sector, little perceptible progress had been made by early 2013. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some independent analysts believe it could be higher than 15%.

Source : CIA


 

SUBJECT IDENTIFICATION & LEGAL FORM

 

English Name

 

GALAXY INTERNATIONAL TRADING CORPORATION

Vietnamese Name

 

CONG TY CO PHAN THUONG MAI QUOC TE THIEN HA

Type of Business

 

Joint stock company

Year Established

 

2010

Business Registration No.

 

0310271313

Date of Registration

 

21 Aug 2010

Place of Registration

 

Business registration Office - Planning and Investment Department of Hochiminh City

Chartered capital

 

VND 1,000,000,000

Tax code

 

0310271313

Total Employees

 

15

 

 

ADDRESSES

 

Head Office

Address

 

35 Road 35, Quarter 7, Hiep Binh Chanh Ward , Thu Duc District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3740 4026

Fax

 

(84-8) 3740 4026

Email

 

info@galaxy-vn.com

Website

 

www.galaxy-vn.com

 

 

DIRECTORS

 

1. NAME

 

Ms. NGUYEN BAO TRAM

Position

 

Director

Date of Birth

 

21 Jul 1981

ID Number/Passport

 

024952096

ID Issue Date

 

08 May 2008

ID Issue Place

 

Police Station of Hochiminh City

Resident

 

15/23C Le Van Tho Street, Ward 9 , Go Vap District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 919 729 288

 

2. NAME

 

Ms. NGUYEN BAO TRANG

Position

 

Import – Export Manager

ID Number/Passport

 

142113117

Resident

 

Binh An Town, Tan Viet Commune , Binh Giang District, Hai Duong Province, Vietnam

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject specializes in trading in agricultural products.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Market

 

mainly from India, Pakistan, Malaysia

 

EXPORT:

·         Market

 

China, Taiwan, Malaysia

 

 

BANKERS

 

ASIA COMMERCIAL JOINT STOCK BANK

Address

 

444 Nguyen Thi Minh Khai, 3 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3832 8988

Fax

 

(84-8) 3832 8987

 

 

SHAREHOLDERS

 

1. NAME

 

Ms. NGUYEN BAO TRAM

Position

 

Director

Date of Birth

 

21 Jul 1981

ID Number/Passport

 

024952096

Issued on

 

08 May 2008

Issued Place

 

Police Station of Hochiminh City

Resident

 

15/23C Le Van Tho Street, Ward 9 , Go Vap District, Ho Chi Minh City, Vietnam

Mobile phone

 

+84 919 729 288

Nationality

 

Vietnamese

Value of shares

 

VND 750,000,000

Percentage

 

75%

 

2. NAME

 

Ms. NGUYEN BAO TRANG

Position

 

Import – Export Manager

ID Number/Passport

 

142113117

Resident

 

Binh An Town, Tan Viet Commune , Binh Giang District, Hai Duong Province, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 200,000,000

Percentage

 

20%

 

3. NAME

 

Ms. VU THI TY

ID Number/Passport

 

141509509

Resident

 

Binh An Town, Tan Viet Commune , Binh Giang District, Hai Duong Province, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 50,000,000

Percentage

 

5%

 

 

FINANCIAL DATA: N/A

 

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2012

31/12/2011

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

2,452,890,864

894,771,259

I. Cash and cash equivalents

2,416,333,635

334,126,485

1. Cash

2,416,333,635

334,126,485

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

393,595

448,088,790

1. Receivable from customers

0

0

2. Prepayments to suppliers

0

448,088,790

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

393,595

0

6. Provisions for bad debts

0

0

IV. Inventories

28,513,636

83,119,480

1. Inventories

28,513,636

83,119,480

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

7,649,998

29,436,504

1. Short-term prepaid expenses

7,649,998

22,080,639

2. VAT to be deducted

0

7,355,865

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

0

0

B. LONG-TERM ASSETS

20,000,000

12,878,787

I. Long term accounts receivable

20,000,000

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

20,000,000

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

12,878,787

1. Long-term prepaid expenses

0

12,878,787

2. Deferred income tax assets

0

0

3. Other long-term assets

0

0

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

2,472,890,864

907,650,046

 

LIABILITIES

A- LIABILITIES

77,975,070

0

I. Current liabilities

77,975,070

0

1. Short-term debts and loans

0

0

2. Payable to suppliers

77,975,070

0

3. Advances from customers

0

0

4. Taxes and other obligations to the State Budget

0

0

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

0

0

II. Long-Term Liabilities

0

0

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

0

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

0

0

9. Science and technology development fund

0

0

B- OWNER’S EQUITY

2,394,915,794

907,650,046

I. OWNER’S EQUITY

2,394,915,794

907,650,046

1. Capital

1,000,000,000

1,000,000,000

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

-122,223

7. Business promotion fund

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

1,394,915,794

-92,227,731

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

2,472,890,864

907,650,046

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2012

FY2011

1. Total Sales

17,211,126,302

143,357,226

2. Deduction item

0

0

3. Net revenue

17,211,126,302

143,357,226

4. Costs of goods sold

15,145,791,145

75,872,841

5. Gross profit

2,065,335,157

67,484,385

6. Financial income

132,419

79,919

7. Financial expenses

5,435,355

 

- In which: Loan interest expenses

0

0

8. Selling expenses

40,461,837

16,037,822

9. Administrative overheads

181,697,488

122,670,972

10. Net operating profit

1,837,872,896

-71,144,490

11. Other income

0

0

12. Other expenses

1,700,000

0

13. Other profit /(loss)

-1,700,000

0

14. Total accounting profit before tax

1,836,172,896

-71,144,490

15. Current corporate income tax

441,257,102

0

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

1,394,915,794

-71,144,490

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2012

Average Industry

Current liquidity ratio

31.46

1.25

Quick liquidity ratio

31.09

0.71

Inventory circle

271.35

20.29

Average receive period

0.01

61.81

Utilizing asset performance

6.96

2.53

Liability by total assets

3.15

69.15

Liability by owner's equity

3.26

261.12

Ebit / Total assets (ROA)

74.25

9.66

Ebit / Owner's equity (ROE)

76.67

41.58

Ebit / Total revenue (NPM)

10.67

4.49

Gross profit / Total revenue (GPM)

12.00

9.69

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

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

High

Payment status

 

Normal

Financial Situation

 

Average

Development trend

 

Even

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Direct payment or through its corresponding bank

Sale Methods

 

Wholesaler

 

 

 

INTERPRETATION ON THE SCORES

 

The subject - GALAXY INTERNATIONAL TRADING CORPORATION - was established in August 2010. It is a joint stock company which is owned and managed by Ms. Nguyen Bao Tram and her family. The subject is now operating under business registration No. 0310271313 issued by Business registration Office - Planning and Investment Department of Hochiminh City. Its chartered capital is VND 1 billion.

Originally, the subject was a distributor of automatic water treatment system of EcoWater Systems (USA). However, currently, the subject focuses on trading agricultural products. It imports spices such as sesame, curry from India, Pakistan, Malaysia and distributes in domestic market. On the other hand, the subject exports special agricultural products such as lotus seed, coconut peat, cashew nuts, black pepper… to China, Taiwan and Malaysia.

Premises and facilities of the subject is average. It is operating at small scale with about 15 staff. The subject’s director is a young and dynamic person. After three years operation, the subject has created good relationship with some traditional customers and partners. Financial situation of the subject is acceptable. In our opinion, the subject has future prospect of development.

 

 

------------ APPENDIX ----------

INDUSTRY DATA

 

Industry code

GDP growth speed by price compared with 1994 (%)

Total enterprises 2010

Total employees 2011

(Thous.pers.)

Annual average capital of enterprises 2010

(billion dongs)

2012

2011

Agriculture, Forestry and Fishing

2.72

4.00

8,887

24,362.9

95,227

Industry and Construction

4.52

5.53

95,217

10,718.9

3,641,376

Trade and Services

6.42

6.69

187,195

15,270.2

6,957,082

 

ECONOMIC INDICATORS

 

 

2012 

2011 

2010 

Population (Million person)

88.78

87.84

86.93

Gross Domestic Products (USD billion)

136

119

102.2

GDP Growth (%)

5.03

5.89

6.78

GDP Per Capita (USD/person/year)

1,540

1,300

1,160

Inflation (% Change in Composite CPI)

9.21

18.58

11.75

State Budget Deficit compared with GDP (%)

4.8

4.9

5.8

 

SERVICE TRADE PERFORMANCE

 

Billion USD 

2012 

2011 

2010 

Exports

114.6

96.3

72.2

Imports

114.3

105.8

84.8

Trade Balance

0.3

-9.5

-12.6

Source: General Statistics Office


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.13

UK Pound

1

Rs.89.52

Euro

1

Rs.76.89

 

 

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.