MIRA INFORM REPORT

 

 

Report Date :

23.07.2013

 

IDENTIFICATION DETAILS

 

Name :

DEVYT TRADING AND LOGISTICS COMPANY LIMITED

 

 

Registered Office :

Floor T No. 5, Dao Duy Anh Street, Phuong Lien Ward, Dong Da District, Ha Noi City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

28.09.2009

 

 

Com. Reg. No.:

0104191408

 

 

Legal Form :

One Member Liability Limited Company

 

 

Line of Business :

Import and trading materials and goods for stationery and paper industry

 

 

No. of Employees :

50

 

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

 

DEVYT TRADING AND LOGISTICS COMPANY LIMITED

Vietnamese Name

 

CONG TY TNHH THUONG MAI VA KHO VAN DEVYT

Short name

 

DEVYT TRADING CO., LTD

Type of Business

 

One member liability limited company

Year Established

 

2009

Business Registration No.

 

0104191408

Date of Registration

 

28 Sep 2009

Place of Registration

 

Hanoi Department of Planning and Investment

Chartered capital

 

VND 35,000,000,000

Status

 

Unlisted

Tax code

 

0104191408

Total Employees

 

50

 

 

ADDRESSES

 

Head Office

Address

 

Floor T No. 5, Dao Duy Anh Street, Phuong Lien Ward, Dong Da District, Ha Noi City, Vietnam

Telephone

 

(84-4) 62750171

Fax

 

(84-4) 35771536

Email

 

chuhoa@devyt.com

Website

 

http://devyt.com/

 

Branch in Hai Phong

Address

 

No. 388 Le Thanh Tong Str., Ngo Quyen District, Hai Phong City, Vietnam

 

Branch in Quang Ninh

Address

 

Ninh Duong IP, Ninh Duong Ward, Mong Cai City, Quang Ninh Province, Vietnam

Telephone

 

(84-33) 3886462

Fax

 

(84-33) 3887678

 

Branch in Lang Son

Address

 

Dong Dang Town, Lang Son Province, Vietnam

 

 

SUBSIDIARIES AND RELATED COMPANIES

 

PARENT COMPANY - DEVELOPMENT ECONOMIC JOINT STOCK COMPANY FOR VIETNAMESE YOUNG TALENTS

Business Registration

 

0103000182

Date of Registration

 

17 Sep 2009

Place of Registration

 

Department of Planning and Investment of Hanoi City

Chartered capital

 

VND 150,000,000,000

Tax code

 

0101097735

Address

 

T Floor - No. 5 Building Dao Duy Anh - Phuong Lien Ward, Dong Da District, Ha Noi City, Vietnam

Tel

 

84-4-62750170 / 35771536 / 35771642

Fax

 

84-4-35771641

 

 

DIRECTORS

 

1. NAME

 

Mr. CHU VAN HOA

Position

 

President

Date of Birth

 

20 Oct 1977

ID Number/Passport

 

011870259

ID Issue Date

 

23 Jun 2004

ID Issue Place

 

Hanoi Department of Public Security

Resident

 

No. 21/145/19 Nguyen Van Cu Street, Ngoc Lam Ward, Long Bien District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Ms. PHAM QUYNH HUONG

Position

 

Director

ID Number/Passport

 

011931952

Nationality

 

Vietnamese

 

3. NAME

 

Mr. TRAN BAO HUNG

Position

 

Vice Director

Current resident

 

No. 5 Dao Duy Anh Street, Dong Da District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

4. NAME

 

Mr. DUONG VAN NGUYEN

Position

 

Chief Accountant

Nationality

 

Vietnamese

Email

 

duongnguyen@devyt.com

 

 

BUSINESS NATURE AND ACTIVITIES

 

- Import materials for other companies in Devyt system.
- Import and trading materials and goods for stationery and paper industry.
- Transportation and customer clearance service.
- Trading and export agriculture products.
- etc

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Industrial materials

·         Market

 

USA, China, Asia countries

 

EXPORT:

·         Types of products

 

Stationeries, paper, agriculture products

·         Market

 

Eu, Asia Countries

 

 

BANKERS

 

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM

Address

 

No. 198 Tran Quang Khai Street, Hoan Kiem District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3934 3137 / (84-4) 3814 8919

Fax

 

(84-4) 3826 9067 / (84-4) 3825 1322

 

2. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM HAI PHONG BRANCH

Address

 

No 11 Hoang Dieu, Hong Bang District, Hai Phong City, Vietnam

Telephone

 

(84-31) 3842658 / 3841115

Fax

 

(84-31) 3841117

 

 

SHAREHOLDERS

 

NAME

 

DEVELOPMENT ECONOMIC JOINT STOCK COMPANY FOR VIETNAMESE YOUNG TALENTS

Business Registration

 

0103000182

Date of Registration

 

17 Sep 2009

Place of Registration

 

Department of Planning and Investment of Hanoi City

Chartered Capital

 

VND 150,000,000,000

Tax code

 

0101097735

Address

 

T Floor - No. 5 Building Dao Duy Anh - Phuong Lien Ward, Dong Da District, Ha Noi City, Vietnam

Tel

 

84-4-62750170 / 35771536 / 35771642

Fax

 

84-4-35771641

Value of shares

 

VND 35,000,000,000

Percentage

 

100%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: Million VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

Audit status

Unaudited

-

ASSETS

A – CURRENT ASSETS

69,559

43,918

I. Cash and cash equivalents

8,618

1,860

1. Cash

8,618

1,860

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

53,129

17,250

1. Receivable from customers

34,380

14,644

2. Prepayments to suppliers

18,729

2,606

3. Inter-company receivable

20

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

0

0

6. Provisions for bad debts

0

0

IV. Inventories

4,095

23,229

1. Inventories

4,095

23,229

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

3,717

1,580

1. Short-term prepaid expenses

31

169

2. VAT to be deducted

0

0

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

3,686

1,411

B. LONG-TERM ASSETS

29,399

29,696

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

28,599

16,197

1. Tangible assets

14,305

16,197

- Historical costs

20,003

18,826

- Accumulated depreciation

-5,698

-2,629

2. Financial leasehold assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

3. Intangible assets

14,076

0

- Initial costs

14,076

0

- Accumulated amortization

0

0

4. Construction-in-progress

218

0

III. Investment property

0

0

Historical costs

0

0

Accumulated depreciation

0

0

IV. Long-term investments

0

13,282

1. Investments in affiliates

0

0

2. Investments in business concerns and joint ventures

0

0

3. Other long-term investments

0

13,282

4. Provisions for devaluation of long-term investments

0

0

V. Other long-term assets

800

218

1. Long-term prepaid expenses

800

0

2. Deferred income tax assets

0

0

3. Other long-term assets

0

218

VI. Goodwill

 

0

1. Goodwill

 

0

TOTAL ASSETS

98,958

73,615

 

LIABILITIES

A- LIABILITIES

56,891

38,042

I. Current liabilities

56,631

37,609

1. Short-term debts and loans

85,624

31,360

2. Payable to suppliers

18,957

0

3. Advances from customers

19,085

5,133

4. Taxes and other obligations to the State Budget

2,716

0

5. Payable to employees

390

422

6. Accrued expenses

2,497

364

7. Inter-company payable

-73,200

0

8. Payable according to the progress of construction contracts

0

0

9. Other payable

562

330

10. Provisions for short-term accounts payable

0

0

II. Long-Term Liabilities

260

433

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

260

433

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

 

 

9. Science and technology development fund

 

 

B- OWNER’S EQUITY

42,067

35,573

I. OWNER’S EQUITY

42,025

35,573

1. Capital

35,000

34,486

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

812

0

7. Business promotion fund

109

0

8. Financial reserved fund

54

0

9. Other funds

0

0

10. Retained earnings

6,050

1,087

11. Construction investment fund

0

0

12. Business arrangement supporting fund

 

 

II. Other sources and funds

42

0

1. Bonus and welfare funds

42

0

2. Sources of expenditure

0

0

3. Fund to form fixed assets

0

0

MINORITY’S INTEREST

 

0

TOTAL LIABILITIES AND OWNER’S EQUITY

98,958

73,615

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

1,493,046

209,375

2. Deduction item

0

 

3. Net revenue

1,493,046

209,375

4. Costs of goods sold

1,453,021

179,291

5. Gross profit

40,025

30,084

6. Financial income

1,703

990

7. Financial expenses

8,484

596

- In which: Loan interest expenses

8,210

596

8. Selling expenses

23,587

25,233

9. Administrative overheads

3,897

3,796

10. Net operating profit

5,760

1,450

11. Other income

116

0

12. Other expenses

107

0

13. Other profit /(loss)

9

0

14. Total accounting profit before tax

5,769

1,450

15. Current corporate income tax

1,519

362

16. Deferred corporate income tax

0

 

17. Interest from subsidiaries/related companies

 

 

18. Profit after tax

4,250

1,087

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

1.23

1.17

1.17

Quick liquidity ratio

1.16

0.55

1.07

Inventory circle

354.83

7.72

29.08

Average receive period

12.99

30.07

90.85

Utilizing asset performance

15.09

2.84

0.88

Liability by total assets

57.49

51.68

69.93

Liability by owner's equity

135.24

106.94

272.29

Ebit / Total assets (ROA)

14.13

2.78

5.62

Ebit / Owner's equity (ROE)

33.23

5.75

30.19

Ebit / Total revenue (NPM)

0.94

0.98

8.85

Gross profit / Total revenue (GPM)

2.68

14.37

13.34

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

 

Above Average

Development trend

 

Developing

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

TT, LC

Sale Methods

 

To contracts

 

 

 

INTERPRETATION ON THE SCORES

 

DEVYT TRADING CO., LTD is a one member limited liability company wholly belongs to DEVYT., JSC. The subject was established in September 2009 with capital of VND 35 billion. It was detached from DEVYT., JSC, which was established in 2001. Subject’s parent company is a diversified businesses entity including stationery trading for export, logistics, restaurant services, education, and real estate.

The head office of the subject is located at Floor T No. 5, Dao Duy Anh Street, Phuong Lien Ward, Dong Da District, Ha Noi City, Vietnam. This address is also the head office of its parent company - DEVYT., JSC. Besides, it has 3 branches in northern Vietnam, which are located near big ports and border gate. Its president, Mr. CHU VAN HOA is also director of BAI BANG PAPER JOINT STOCK COMPANY, an affiliate of VIETNAM PAPER CORPORATION.

The subject mainly engages in import-export and logistics activities. Depending on each contract, it transports various kinds of cargo for other members of DEVYT and outside domestic and foreign clients. It owns some container trucks and barges; most of means of transport are leased for its services.

Financially, the subject was established in late 2009; therefore, financial data for the year 2009 was poor. Started with no sales in 2009, business result and scale expanded rapidly in the next two years. It gained 209,375,225,070 VND total sales in 2010, and sales rocketed in 2011 by 613%. Profit after tax also increased by fourfold in 2011. ROA, ROE were also high and increased sharply relative to the previous year. However, GPM declined significantly in 2011 because COGS took up 97% total sales instead of 85% as previous year, leaving humble NPM. Liquidity ratios and liability ratios were fair. According to a staff in accounting department, in 2012 it operates stably, its business results were similar to 2011.

In conclusion, the subject has been in operation for a short time. Thanks for support of parent company; the subject has a sound foundation to develop. Caution is needed for the medium-big deals.

 

 

------------ 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.59.41

UK Pound

1

Rs.90.74

Euro

1

Rs.78.11

 

 

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.