MIRA INFORM REPORT

 

 

Report Date :

19.07.2013

 

IDENTIFICATION DETAILS

 

Name :

SUN JOINT STOCK COMPANY 

 

 

Registered Office :

No. 22 Alley 2/35 Ngoc Hoi Street, Hoang Liet Ward, Hoang Mai District, Ha Noi City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2012

 

 

Year of Establishments:

2000

 

 

Com. Reg. No.:

0104787896

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

trader of fiber, chemicals and minerals

 

 

No. of Employees :

30

 

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

 

English Name

 

SUN JOINT STOCK COMPANY

Vietnamese Name

 

CONG TY CO PHAN SUN

Type of Business

 

Joint stock company

Year Established

 

2000

Business Registration No.

 

0104787896

Date of Registration

 

03 Jan 2012

Place of Registration

 

Department of Planning and Investment of Ha Noi City

Chartered capital

 

VND 1,800,000,000

Status

 

Unlisted

Tax code

 

0104787896

Total Employees

 

30

Size

 

Small

 

 

 

Company ADDRESSES

 

Head Office

Address

 

No. 22 Alley 2/35 Ngoc Hoi Street, Hoang Liet Ward, Hoang Mai District, Ha Noi City, Vietnam

Telephone

 

(84-4) 62863396

Fax

 

(84-4) 62863396

Email

 

info@sunjsc.vn

Website

 

http://www.sunjsc.vn

 

Representative office in Ha Noi

Address

 

9th Flr Cotana Building, Lot CC5A, Linh Dam Peninsula, Hoang Mai District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3641 7715/ 3641 7716

Fax

 

(84-4) 3641 7714

 

 

DIRECTORS

 

NAME

 

Mr. PHAM DOAN CHUNG

Position

 

Director

Date of Birth

 

12 May 1976

ID Number/Passport

 

012987716

ID Issue Date

 

03 Aug 2007

ID Issue Place

 

Police Department of Ha Noi City

Current resident

 

No. 306, 10 building, Linh Dam Urban Phuong Liet Ward, Hoang Mai District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is specialized in trading fiber, chemicals and minerals.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Market

 

India, Bangladesh

 

EXPORT:

·         Market

 

Japan, Korea, Australia, etc

 

 

 

BANKERS

 

AN BINH COMMERCIAL JOINT STOCK BANK HA NOI BRANCH

Address

 

No.101 Lang Ha str, Dong Da District, Ha Noi City, Vietnam

Telephone

 

(84-4) 35622 828

Fax

 

(84-4) 35624 655

 

 

 

SHAREHOLDERS

 

1. NAME

 

Ms. NGUYEN THI TUONG

ID Number/Passport

 

183355487

Resident

 

No. 30, Group 10 Bac Hong Ward, Hong Linh District, Ha Tinh Province, Vietnam

Number of Shares

 

5,000

Value of shares

 

VND 50,000,000

Percentage

 

2.78%

 

2. NAME

 

Ms. LUU THI CUONG

ID Number/Passport

 

012987717

Resident

 

No. 306, 10 Building, Linh Dam Urban Phuong Liet Ward, Hoang Mai District, Ha Noi City, Vietnam

Number of Shares

 

15,000

Value of shares

 

VND 150,000,000

Percentage

 

8.33%

 

3. NAME

 

Mr. PHAM DOAN CHUNG

Position

 

Director

Date of Birth

 

12 May 1976

ID Number/Passport

 

012987716

Issued on

 

03 Aug 2007

Issued Place

 

Police Department of Ha Noi City

Current Resident

 

No. 306, 10 building, Linh Dam Urban Phuong Liet Ward, Hoang Mai District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

160,000

Value of shares

 

VND 1,600,000,000

Percentage

 

88.89%

 

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2012

31/12/2011

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

17,229,000,000

12,369,000,000

I. Cash and cash equivalents

1,810,000,000

1,086,000,000

1. Cash

0

0

2. Cash equivalents

1,810,000,000

1,086,000,000

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

13,472,000,000

10,323,000,000

1. Receivable from customers

7,367,000,000

6,304,000,000

2. Prepayments to suppliers

568,000,000

2,866,000,000

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

5,537,000,000

1,153,000,000

6. Provisions for bad debts

0

0

IV. Inventories

35,000,000

0

1. Inventories

35,000,000

0

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

1,912,000,000

960,000,000

1. Short-term prepaid expenses

0

0

2. VAT to be deducted

1,610,000,000

960,000,000

3. Taxes and other accounts receivable from the State

72,000,000

0

4. Other current assets

230,000,000

0

B. LONG-TERM ASSETS

1,220,000,000

1,790,000,000

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

1,220,000,000

1,790,000,000

1. Tangible assets

1,220,000,000

1,790,000,000

- Historical costs

1,838,000,000

1,983,000,000

- Accumulated depreciation

-618,000,000

-193,000,000

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

18,449,000,000

14,159,000,000

 

LIABILITIES

A- LIABILITIES

7,409,000,000

7,043,000,000

I. Current liabilities

7,409,000,000

6,366,000,000

1. Short-term debts and loans

436,000,000

4,056,000,000

2. Payable to suppliers

5,856,000,000

2,310,000,000

3. Advances from customers

0

0

4. Taxes and other obligations to the State Budget

750,000,000

0

5. Payable to employees

296,000,000

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

71,000,000

0

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

0

0

II. Long-Term Liabilities

0

677,000,000

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

677,000,000

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

11,040,000,000

7,116,000,000

I. OWNER’S EQUITY

11,040,000,000

7,116,000,000

1. Capital

1,800,000,000

1,800,000,000

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

9,240,000,000

5,316,000,000

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

18,449,000,000

14,159,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2012

FY2011

1. Total Sales

170,003,000,000

N/A

2. Deduction item

2,658,000,000

-

3. Net revenue

167,345,000,000

-

4. Costs of goods sold

157,473,000,000

-

5. Gross profit

9,872,000,000

-

6. Financial income

287,000,000

-

7. Financial expenses

2,010,000,000

-

- In which: Loan interest expenses

1,545,000,000

-

8. Selling expenses

0

-

9. Administrative overheads

6,302,000,000

-

10. Net operating profit

1,847,000,000

-

11. Other income

7,727,000,000

-

12. Other expenses

334,000,000

-

13. Other profit /(loss)

7,393,000,000

-

14. Total accounting profit before tax

9,240,000,000

-

15. Current corporate income tax

0

-

16. Deferred corporate income tax

0

-

17. Interest from subsidiaries/related companies

0

-

18. Profit after tax

9,240,000,000

-

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2012

FY2011

Average Industry

Current liquidity ratio

2.33

1.94

1.88

Quick liquidity ratio

2.32

1.94

0.96

Inventory circle

4,499.23

-

15.21

Average receive period

29.38

-

49.96

Utilizing asset performance

9.07

-

2.95

Liability by total assets

40.16

49.74

66.83

Liability by owner's equity

67.11

98.97

256.69

Ebit / Total assets (ROA)

58.46

-

12.92

Ebit / Owner's equity (ROE)

97.69

-

41.70

Ebit / Total revenue (NPM)

6.34

-

5.07

Gross profit / Total revenue (GPM)

5.81

-

11.84

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

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Medium/High

Payment status

 

Normal

Financial Situation

 

Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

T/T, L/C

Sale Methods

 

Wholesaler

Public opinion

 

Limited

 

 

 

INTERPRETATION ON THE SCORES

 

SUN JOINT STOCK COMPANY was originally established in 2000. It is granted under the Business Registration No. 0104787896 issued by Department of Planning and Investment of Ha Noi City. The chartered capital is currently VND 1,800,000,000, in which Mr. Pham Doan Chung – Director holds the major ownership.

 

The head office of the subject is registered at No. 22 Alley 2/35 Ngoc Hoi Street Hoang Liet Ward, Hoang Mai District, Ha Noi City, Vietnam. However, all of business transactions are performed at the representative office in Ha Noi City. The main business activity of the subject is trading fiber, chemicals and minerals.

 

The financial situation of the subject is on average. The total assets made an increase of VND 4.2 billion in 2012 against the previous year. The total sales obtained VND 170 billion and the profit after tax reached VND 9.2 billion in FY2012. The liquidity ratios were higher than the industry average. The subject has low level of inventories with only VND 35 million in 2012 and even nothing in 2011 and therefore, it resulted in high inventory circle for the subject. The utilizing assets performance was 9.07, much higher than the industry average. The financial leverage in recent years shows that it is fairly safe for creditors. ROA and ROE were good with 58.46% and 97.69% respectively.

 

In short, the subject is operating in a small scale. The management capacity is fair. No caution is needed for small financial commitments with the subject.

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.59.71

UK Pound

1

Rs.90.59

Euro

1

Rs.78.22

 

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.