MIRA INFORM REPORT

 

 

Report Date :

13.07.2013

 

IDENTIFICATION DETAILS

 

Name :

HA ANH STAINLESS STEEL COMPANY LIMITED 

 

 

Registered Office :

Phan Boi Hamlet Di Su Commune, My Hao District, Hung Yen Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishments:

2006

 

 

Com. Reg. No.:

0900226793

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

subject is specializes in producing and trading iron, steel and metal products such as tubes, wires / round bars.

 

 

No. of Employees :

200

 

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 – 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

 

Current legal status

Registered English Name

 

HA ANH STAINLESS STEEL COMPANY LIMITED

Registered Vietnamese Name

 

CONG TY TNHH THEP KHONG GI HA ANH

Type of Business

 

Limited liability company

Year Established

 

2006

Business Registration No.

 

0900226793

Date of Registration

 

01 Mar 2011

Place of Registration

 

Planning and Investment Department of Hung Yen Province

Chartered capital

 

VND 140,000,000,000

Status

 

Unlisted

Tax code

 

0900226793

Total Employees

 

200

 

Historical Identification & Legal form

List

Changed Items

Date of changes

1

Subject has got former Chartered capital: VND 40,000,000,000 Changed to: VND 60,000,000,000

01 Mar 2011

2

Subject has got former Chartered capital: VND 60 billion

Changed to: VND 140 billion

N/A

 

 

 

Company ADDRESSES

 

Head Office

Address

 

Phan Boi Hamlet Di Su Commune, My Hao District, Hung Yen Province, Vietnam

Telephone

 

(84-321) 3974464/ 3944514/ 397446

Fax

 

(84-321) 3941938/ 394193

Note

 

The given phone and fax number are belonged to the representative office in Ha Noi City.

 

Representative office in Ha Noi

Address

 

No. 334 Lac Trung Str, Hai Ba Trung District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3987 8426/ 3987 8429

Fax

 

(84-4) 3987 8427

 

 

 

SUBSIDIARIES AND RELATED COMPANIES

 

RELATED COMPANY - TIEN DAT COMPANY LIMITED

Business Registration

 

0100744299

Date of Registration

 

03 Feb 2010

Place of Registration

 

Hanoi of Planning and Investment Department

Chartered capital

 

VND 150,000,000,000

Tax code

 

0100744299

Address

 

No. 334 Lac Trung Street, Vinh Tuy Ward, Hai Ba Trung District, Ha Noi City, Vietnam

Tel

 

(84-4) 3987 5629/ 30

Fax

 

(84-4) 3987 5631

Website

 

http://tiendatsteel.com

 

 

 

DIRECTORS

 

1. NAME

 

Mr. TRAN VAN DIEP

Position

 

Director

Date of Birth

 

23 May 1980

ID Number/Passport

 

013312893

ID Issue Date

 

23 Jun 2010

ID Issue Place

 

Police Department of Ha Noi City

Resident

 

No. 29, Group 8 Thanh Nhan Ward, Hai Ba Trung District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Mr. TRAN VAN HA

Position

 

Deputy Director

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject registered in some fields but it specializes in producing and trading iron, steel and metal products such as tubes, wires / round bars...

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Market

 

India, China, and other Asian Countries

 

EXPORT:

·         Market

 

Currently, the subject does not export directly.

 

 

BANKERS

 

1. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK HUNG YEN BRANCH

Address

 

No.37 Ban Yen Nhan, My Hao District, Hung Yen Province, Vietnam

Telephone

 

(84-321) 3941 158

Fax

 

(84-321) 3941 160

 

2. HOCHIMINH HOUSING DEVELOPMENT JOINT STOCK BANK HA NOI BRANCH

Address

 

No.91 Nguyen Thai Hoc, Ba Dinh District, Ha Noi City, Vietnam

Telephone

 

(84-4) 37474393

Fax

 

(84-4) 37474394

 

3. ANZ BANK (VIETNAM) LTD

Address

 

6th, 7th, 12th Flr, Sun City Building, No.13 Hai Ba Trung Street, Trang Tien Ward, Hoan Kiem District, Ha Noi City, Vietnam

Telephone

 

(84-4) 39386901

Fax

 

(84-4) 39386930

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. TRAN CONG MINH

ID Number/Passport

 

012178104

Resident

 

No. 3 Thuy Ai Bach Dang Ward, Hai Ba Trung District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 42,000,000,000

Percentage

 

30%

 

2. NAME

 

Mr. TRAN VAN DIEP

Position

 

Director

Date of Birth

 

23 May 1980

ID Number/Passport

 

013312893

Issued on

 

23 Jun 2010

Issued Place

 

Police Department of Ha Noi City

Resident

 

No. 29, Group 8 Thanh Nhan Ward, Hai Ba Trung District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 14,000,000,000

Percentage

 

10%

 

3. NAME

 

Ms. TRAN THI NGOC ANH

ID Number/Passport

 

A0769651A

Resident

 

No. 48, Road 399 Pho Hue Street, Hai Ba Trung District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 84,000,000,000

Percentage

 

60%

 

 

 

FINANCIAL DATA

 

 

 

BALANCE SHEET

Unit: Million VND

Balance sheet date

31/12/2011

31/12/2010

31/12/2009

Number of weeks

52

52

52

Audit status

Audited

Audited

Unknown

ASSETS

A – CURRENT ASSETS

439,264

318,202

263,541

I. Cash and cash equivalents

4,465

20,397

4,236

1. Cash

246

333

4,236

2. Cash equivalents

4,219

20,064

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

51,270

39,240

57,743

1. Receivable from customers

51,270

39,240

57,743

2. Prepayments to suppliers

0

0

0

3. Inter-company receivable

0

0

0

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

0

0

0

6. Provisions for bad debts

0

0

0

IV. Inventories

372,745

253,799

197,332

1. Inventories

372,745

253,799

197,332

2. Provisions for devaluation of inventories

0

0

0

V. Other Current Assets

10,784

4,766

4,230

1. Short-term prepaid expenses

0

0

0

2. VAT to be deducted

6,692

4,244

3,904

3. Taxes and other accounts receivable from the State

0

0

0

4. Other current assets

4,092

522

326

B. LONG-TERM ASSETS

108,851

61,818

65,890

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

108,737

61,566

65,736

1. Tangible assets

106,509

55,326

59,929

- Historical costs

128,366

62,892

61,845

- Accumulated depreciation

-21,857

-7,566

-1,916

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

2,228

4,667

4,761

- Initial costs

4,856

4,856

4,856

- Accumulated amortization

-2,628

-189

-95

4. Construction-in-progress

0

1,573

1,046

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

114

252

154

1. Long-term prepaid expenses

114

252

154

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

548,115

380,020

329,431

 

LIABILITIES

A- LIABILITIES

419,280

287,698

278,862

I. Current liabilities

363,778

256,964

240,240

1. Short-term debts and loans

291,446

211,327

203,386

2. Payable to suppliers

72,301

45,637

36,854

3. Advances from customers

0

0

0

4. Taxes and other obligations to the State Budget

0

0

0

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

31

0

0

10. Provisions for short-term accounts payable

0

0

0

11. Bonus and welfare funds

0

0

0

II. Long-Term Liabilities

55,502

30,734

38,622

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

55,502

30,734

38,622

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 Sale

0

0

0

9. Science and technology development fund

0

0

0

B- OWNER’S EQUITY

128,835

92,322

50,569

I. OWNER’S EQUITY

128,797

92,286

50,522

1. Capital

60,000

40,000

15,000

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

605

2,594

8. Financial reserved fund

0

0

0

9. Other funds

0

637

1,729

10. Retained earnings

68,797

51,044

31,199

11. Construction investment fund

0

0

0

12. Business arrangement supporting fund

0

0

0

II. Other sources and funds

38

36

47

1. Bonus and welfare funds (Elder form)

38

36

47

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

548,115

380,020

329,431

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

FY2009

1. Total Sales

1,378,089

987,911

612,445

2. Deduction item

0

0

0

3. Net sale

1,378,089

987,911

612,445

4. Costs of goods sold

1,300,640

935,552

575,086

5. Gross profit

77,449

52,359

37,359

6. Financial income

244

88

69

7. Financial expenses

56,203

30,470

18,992

- In which: Loan interest expenses

56,203

10,528

18,992

8. Selling expenses

1,309

1,141

586

9. Administrative overheads

2,427

991

556

10. Net operating profit

17,754

19,845

17,294

11. Other income

0

0

0

12. Other expenses

0

0

4,409

13. Other profit /(loss)

0

0

-4,409

14. Total accounting profit before tax

17,754

19,845

12,885

15. Current corporate income tax

0

0

0

16. Deferred corporate income tax

0

0

0

17. Interest from subsidiaries/related companies

0

0

0

18. Profit after tax

17,754

19,845

12,885

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

FY2009

Average Industry

Current liquidity ratio

1.21

1.24

1.10

1.15

Quick liquidity ratio

0.18

0.25

0.28

0.55

Inventory circle

4.15

3.69

3.43

4.67

Average receive period

13.58

14.50

34.41

95.82

Utilizing asset performance

2.51

2.60

1.86

1.12

Liability by total assets

76.49

75.71

84.65

65.92

Liability by owner's equity

325.44

311.62

551.45

234.28

Ebit / Total assets (ROA)

13.49

7.99

9.68

6.27

Ebit / Owner's equity (ROE)

57.40

32.90

63.04

18.68

Ebit / Total sale (NPM)

5.37

3.07

5.20

6.92

Gross profit / Total sale (GPM)

5.62

5.30

6.10

10.11

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

 

Above Average

Financial Situation

 

Above Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

T/T, L/C

Sale Methods

 

Wholesaler

Public opinion

 

Normal

 

 

 

INTERPRETATION ON THE SCORES

 

The subject was established in 2006 in Hung Yen Province as the second factory of Tiendat Stainless Steel Group (registered name: Tien Dat Company Limited). Currently, the subject is operating under the business registration No. 0900226793 with chartered capital of VND 140 billion.

The company’s head office and factory are located at Phan Boi Hamlet, Di Su Commune, My Hao District, Hung Yen Province. It has transaction office at 334 Lac Trung Street, Hai Ba Trung District, Ha Noi City where is the head office of Tien Dat Company Limited. The company specializes in producing and trading stainless steel products such as tubes, wires / round bars... Its products were brought to the market since 2007. Currently, its products are mainly provided for domestic market.

The company is ranked as a large size company in the industry. The company’s total assets in 2011 were VND 548.1 billion; increased 44.2% compared to 2010. According to the balance sheet, the company’s total assets were financed largely by liability. Liability by total assets in 2011 was 76.49%, higher than average industry. The self-financing ability is acceptable. The company’s ratio of liability by total assets is expected to improve more when the subject increased its chartered capital from VND 60 billion to VND 140 billion.

The business result of subject is above average. The total sales increased year after year and reached VND 1,378.1 billion; increased 39.5% compared to 2010. However, profit after tax went down from VND 19.8 billion in 2010 to VND 17.8 billion in 2011. The reason is mainly come from the increase of financial expenses. The financial expenses in 2011 were VND 56.2 billion; increased VND 25.7 billion compared to 2010. It is due to the boom of loan interest expenses. This item increased from only VND 10.5 billion in 2010 to VND 56.2 billion in 2011. It is the result of using much liability (mainly debts and loans) to finance for capital need and the high interest rate in 2011. However, the company’s profitability of the subject is still considered good compared to average industry.

In short, the subject is a medium scale company. The financial situation is above average. The future prosperity of the subject seems bright. The subject has capacity to meet small and normal financial commitments.

 

 

 

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.59.89

UK Pound

1

Rs.90.88

Euro

1

Rs.78.32

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.