MIRA INFORM REPORT

 

 

Report Date :

14.06.2013

 

IDENTIFICATION DETAILS

 

Name :

ECOBA VIETNAM JOINT STOCK COMPANY

 

 

Formerly Known as:

LIDECO 3 JOINT STOCK COMPANY

 

 

Registered Office :

Floor 1+2 Lideco Building, N09-B1, Dich Vong New Urban Area, Dich Vong Ward, Cau Giay District, Ha Noi City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

04.02.2010

 

 

Com. Reg. No.:

0104415496

 

 

Legal Form :

Joint stock company

 

 

Line of Business :

The subject is specialized in the field of engineering, construction and construction management.

 

 

No. of Employees :

100

 

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

English Name

 

ECOBA VIETNAM JOINT STOCK COMPANY

Vietnamese Name

 

CONG TY CO PHAN ECOBA VIET NAM

Short name

 

ECOBA.,JSC

Type of Business

 

Joint stock company

Year Established

 

2010

Business Registration No.

 

0104415496

Date of Registration

 

04 Feb 2010

Place of Registration

 

Hanoi Department of Planning and Investment

Chartered capital

 

VND 225,000,000,000

Status

 

Unlisted

Tax code

 

0104415496

Total Employees

 

100

Note: The name given in LIDECO 3 JOINT STOCK COMPANY is former one. The current one is as above.

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Registered Vietnamese Name: CONG TY CO PHAN LIDECO 3

Changed to: CONG TY CO PHAN ECOBA VIET NAM

21 May 2013

2

Subject has got former Registered English Name: LIDECO 3 JOINT STOCK COMPANY

Changed to: ECOBA VIETNAM JOINT STOCK COMPANY

21 May 2013

3

Subject has got former Abbreviated Name: LIDECO 3., JSC

Changed to: ECOBA.,JSC

21 May 2013

4

Subject has got former Chartered capital: VND 26.8 billion

Changed to: VND 225 billion

21 May 2013

5

Subject has got former Registered Vietnamese Name: XI NGHIEP XAY LAP SO 3

Changed to: CONG TY CO PHAN LIDECO 3

04 Feb 2010

 

 

 

ADDRESSES

 

Head Office

Address

 

Floor 1+2 Lideco Building, N09-B1, Dich Vong New Urban Area, Dich Vong Ward, Cau Giay District, Ha Noi City, Vietnam

Telephone

 

(84-4) 2221 4025/4026

Fax

 

(84-4) 2221 4024

Email

 

mail@ecoba.com.vn  

Website

 

http://ecobavietnam.com.vn/ or www.lidecoba.com.vn

Note: The given email mail@lidecoba.com.vn is former one of the subject. The current one is as above

 

 

DIRECTORS

 

. NAME

 

Mr. VO TIEN DAT

Position

 

General Director

Date of Birth

 

15 Mar 1972

ID Number/Passport

 

B0671547

ID Issue Date

 

15 Sep 2006

ID Issue Place

 

Vietnam Immigration Department

Resident

 

Building C12 Group 91, O Cho Dua Ward, Dong Da District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is specialized in the field of engineering, construction and construction management.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Types of products

 

Machines, equipments, materials

Market

 

Japan, Korea, China...

 

EXPORT:

Currently, the subject does not export. 

 

 

 

BANKERS

 

1. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE NAM THANG LONG BRANCH

Address

 

No.117A Hoang Quoc Viet str, Cau Giay District, Ha Noi City, Vietnam

Telephone

 

(84-4) 37542059

 

2. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK DONG DO BRANCH

Address

 

No. 363 Hoang Quoc Viet Str., Cau Giay District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3791 5299

Fax

 

(84-4) 3791 5289

 

 

SHAREHOLDERS

 

Following is founding shareholder list as in its business registration

1. NAME

 

Mr. LE NGUYEN HONG

ID Number/Passport

 

012004519

Resident

 

Group 52 Dong Anh Town, Dong Anh District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

200,000

Value of shares

 

VND 2,000,000,000

Percentage

 

0.89%

 

2. NAME

 

Mr. NGO TAN LONG

ID Number/Passport

 

012178495

Resident

 

No. 78 1st Flr, Don Nguyen 2, Van Quan Ward, Ha Dong District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

93,800

Value of shares

 

VND 938,000,000

Percentage

 

0.42%

 

3. NAME

 

Ms. LE THI QUYNH HOA

ID Number/Passport

 

011620178

Resident

 

No. 7 Lane 15/10, Huong Vien Str, Dong Mac Ward, Hai Ba Trung District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

7,581,200

Value of shares

 

VND 75,812,000,000

Percentage

 

33.69%

 

4. NAME

 

Mr. VO TIEN DAT

Position

 

General Director

Date of Birth

 

15 Mar 1972

ID Number/Passport

 

B0671547

Issued on

 

15 Sep 2006

Issued Place

 

Vietnam Immigration Department

Resident

 

Building C12 Group 91, O Cho Dua Ward, Dong Da District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

14,625,000

Value of shares

 

VND 146,250,000,000

Percentage

 

65%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

Audit status

Unaudited

Unaudited

ASSETS

A – CURRENT ASSETS

202,111,000,000

186,179,000,000

I. Cash and cash equivalents

11,975,000,000

2,518,000,000

1. Cash

6,865,000,000

2,518,000,000

2. Cash equivalents

5,110,000,000

0

II. Short-term investments

675,000,000

0

1. Short-term investments

675,000,000

0

2. Provisions for devaluation of short-term investments

0

0

III. Accounts receivable

110,144,000,000

106,572,000,000

1. Receivable from customers

107,124,000,000

82,212,000,000

2. Prepayments to suppliers

2,705,000,000

10,777,000,000

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

315,000,000

13,583,000,000

6. Provisions for bad debts

0

0

IV. Inventories

76,769,000,000

71,325,000,000

1. Inventories

76,769,000,000

71,325,000,000

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

2,548,000,000

5,764,000,000

1. Short-term prepaid expenses

652,000,000

68,000,000

2. VAT to be deducted

0

653,000,000

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

1,896,000,000

5,043,000,000

B. LONG-TERM ASSETS

6,365,000,000

1,834,000,000

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

4,249,000,000

1,142,000,000

1. Tangible assets

4,244,000,000

1,134,000,000

- Historical costs

5,146,000,000

1,372,000,000

- Accumulated depreciation

-902,000,000

-238,000,000

2. Financial leasehold assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

3. Intangible assets

5,000,000

8,000,000

- Initial costs

10,000,000

10,000,000

- Accumulated amortization

-5,000,000

-2,000,000

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

2,116,000,000

692,000,000

1. Long-term prepaid expenses

2,116,000,000

692,000,000

2. Deferred income tax assets

0

0

3. Other long-term assets

0

0

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

208,476,000,000

188,013,000,000

 

LIABILITIES

A- LIABILITIES

166,537,000,000

149,336,000,000

I. Current liabilities

166,537,000,000

149,336,000,000

1. Short-term debts and loans

30,830,000,000

11,050,000,000

2. Payable to suppliers

78,544,000,000

70,975,000,000

3. Advances from customers

180,000,000

2,700,000,000

4. Taxes and other obligations to the State Budget

9,112,000,000

4,042,000,000

5. Payable to employees

3,599,000,000

1,469,000,000

6. Accrued expenses

7,759,000,000

14,543,000,000

7. Inter-company payable

0

0

8. Payable according to the progress of construction contracts

0

0

9. Other payable

36,513,000,000

44,557,000,000

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

41,939,000,000

38,677,000,000

I. OWNER’S EQUITY

41,595,000,000

38,677,000,000

1. Capital

26,800,000,000

26,800,000,000

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

1,188,000,000

0

8. Financial reserved fund

594,000,000

0

9. Other funds

0

0

10. Retained earnings

13,013,000,000

11,877,000,000

11. Construction investment fund

0

0

12. Business arrangement supporting fund

0

0

II. Other sources and funds

344,000,000

0

1. Bonus and welfare funds (Elder form)

344,000,000

0

2. Sources of expenditure

 

0

3. Fund to form fixed assets

 

0

MINORITY’S INTEREST

0

0

TOTAL LIABILITIES AND OWNER’S EQUITY

208,476,000,000

188,013,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

282,661,000,000

200,472,464,153

2. Deduction item

0

0

3. Net revenue

282,661,000,000

200,472,464,153

4. Costs of goods sold

254,853,000,000

179,493,699,427

5. Gross profit

27,808,000,000

20,978,764,726

6. Financial income

893,000,000

25,934,287

7. Financial expenses

2,568,000,000

216,607,401

- In which: Loan interest expenses

2,558,000,000

146,533,333

8. Selling expenses

0

0

9. Administrative overheads

11,704,000,000

5,002,320,155

10. Net operating profit

14,429,000,000

15,785,771,457

11. Other income

296,000,000

208,478,266

12. Other expenses

250,000,000

118,721,084

13. Other profit /(loss)

46,000,000

89,757,182

14. Total accounting profit before tax

14,475,000,000

15,875,528,639

15. Current corporate income tax

3,627,000,000

3,998,487,501

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

10,848,000,000

11,877,041,138

 

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

1.21

1.25

1.49

Quick liquidity ratio

0.75

0.77

0.76

Inventory circle

3.44

2.52

4.15

Average receive period

142.23

194.04

428.99

Utilizing asset performance

1.36

1.07

0.47

Liability by total assets

79.88

79.43

68.68

Liability by owner's equity

397.09

386.11

399.20

Ebit / Total assets (ROA)

8.17

8.52

4.58

Ebit / Owner's equity (ROE)

40.61

41.43

22.45

Ebit / Total revenue (NPM)

6.03

7.99

17.51

Gross profit / Total revenue (GPM)

9.84

10.46

19.94

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

 

Average

Financial Situation

 

Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

T/T, L/C

Sale Methods

 

To projects

Public opinion

 

Normal

 

 

 

INTERPRETATION ON THE SCORES

 

The subject was originally founded as a state owned enterprise. Up to 2010, LIDECO 3 JOINT STOCK COMPANY was officially established following the Business Registration No. 0104415496 issued by Hanoi Department of Planning and Investment. The subject used to be one of subsidiaries of Lideco with the ownership up to 51% at Lideco 3. However, Lideco divested in Lideco in quarter III/2012 and after this divestment, Lideco 3 would not be allowed to use the trademark LIDECO and related brand identity. Thus, in the latest adjustment in its business registration on 21 May 2013, the subject changed its name into the new one of ECOBA VIETNAM JOINT STOCK COMPANY and its chartered capital was also increased to VND 225 billion.

The head office of ECOBA is located at Floor 1+2 Lideco Building, N09-B1, Dich Vong New Urban Area, Dich Vong Ward, Cau Giay District, Ha Noi City, Vietnam. This location is fairly new and large. Its premises and facilities are standard and modern. Besides, the subject has an information technology division near there. The main business activities of the company are engineering, construction and construction management. The subject mainly imports machines from Japan and equipments and materials from other Asian countries.

Latest financial statement is currently not available in our source. Following the past financial data, there was a dramatically increase in business result in 2011. Total sales soared by 41% from VND 200,472 million in 2010 to VND 282,661 million in 2011. Gross profit shot up by a higher rate of 32.6%. However, in 2011, profit after tax of the subject company reduced 8.7% compared to VND 11,877 million in 2010. ROA and ROE were still good and higher than the average industry index. Based on its balance sheet, subject's capital structure was rather liquid; current assets occupied more than 96% of total assets, and higher than current liabilities, which made current liquidity ratio was higher than 1 times. In 2011, its liquidity ratios reduced slightly but they were at acceptable level. Its operation ratios were fair. The debt rates were high and had no much change in 2010 and 2011; the subject remained at 79% of liability by total assets and over 380% of liability by owner equity. However, its self financing is expected to improve in 2013 because the subject increased its chartered capital to VND 225 billion. In general, the subject is a medium sized company. Its financial situation is average. At current, the subject has capacity to meet small and medium transactions.

 

 

 

 

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.58.41

UK Pound

1

Rs.91.62

Euro

1

Rs.78.12

 

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.