MIRA INFORM REPORT

 

 

Report Date :

15.06.2013

 

IDENTIFICATION DETAILS

 

Name :

A&Q GENERAL TRADING COMPANY LIMITED

 

 

Registered Office :

No. 66, Ngan Son Street, Group 5, Vinh Trai Ward, Lang Son City, Lang Son Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

26.04.2010

 

 

Com. Reg. No.:

4900528181

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

The subject acts as consignee and trust import-export agent. Therefore, products are various including frozen food, dried food, cereal, agricultural products, fruits, vegetables, salmon.

 

 

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

 

A&Q GENERAL TRADING COMPANY LIMITED

Vietnamese Name

 

CONG TY TNHH KINH DOANH THUONG MAI TONG HOP A&Q

Short name

 

A&Q GT CO.,LTD

Type of Business

 

Limited liability company

Year Established

 

2010

Business Registration No.

 

4900528181

Date of Registration

 

26 Apr 2010

Place of Registration

 

Planning and Investment Department of Lang Son Province

Chartered capital

 

VND 3,000,000,000

Status

 

Unlisted

Tax code

 

4900528181

Total Employees

 

50

Size

 

Small

 

 

ADDRESSES

 

Head Office

Address

 

No. 66, Ngan Son Street, Group 5, Vinh Trai Ward, Lang Son City, Lang Son Province, Vietnam

Telephone

 

(84-25) 3870 381

Fax

 

(84-25) 3870 381

Email

 

duyhungtanthanh@gmail.com

 

Transaction office in Ha Noi

Address

 

Rm. D2, 6th Fl, No. 713, Lac Long Quan Street , Tay Ho District, Ha Noi City, Vietnam

 

Transaction office in Hai Phong

Address

 

Vo Thi Sau Street , Ngo Quyen District, Hai Phong City, Vietnam

 

 

DIRECTORS

 

1. NAME

 

Mr. NGUYEN ANH QUAN

Position

 

Director

Date of Birth

 

21 May 1959

ID Number/Passport

 

080680375

ID Issue Date

 

04 Mar 1999

ID Issue Place

 

Police Station of Lang Son

Resident

 

No. 66, Ngan Son Street, Group 5, Vinh Trai ward , Lang Son City, Lang Son Province, Vietnam

Nationality

 

Vietnam

Tel/Mobile phone

 

(84-25) 3870381

 

2. NAME

 

Mr. NGUYEN DUY HUNG

Position

 

Deputy Director

ID Number/Passport

 

081037682

Resident

 

Cement factory Collective, Mai Pha Commune, Lang Son City, Lang Son Province, Vietnam

Nationality

 

Vietnam

Tel/Mobile phone

 

(84) 984422888

 

3. NAME

 

Ms. TRINH THI THAO

Position

 

Chief Accountant

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84) 988 129 181

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject acts as consignee and trust import-export agent. Therefore, products are various including frozen food, dried food, cereal, agricultural products, fruits, vegetables, salmon.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Types of products

 

Agricultural products, frozen food, fruits

Market

 

China, India, Norway

 

EXPORT:

Types of products

 

Fruits, onion, garlic, frozen food

Market

 

Cambodia, Laos, China

 

 

BANKERS

 

1. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE LANG SON BRANCH

Address

 

No.51 Le Loi str, Lang Son City, Lang Son Province, Vietnam

Telephone

 

(84-25) 3876689

 

2. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK LANG SON BRANCH

Address

 

No.54 Tran Dang Ninh, Hoang Van Thu ward, Lang Son City, Lang Son Province, Vietnam

Telephone

 

(84-25) 3713968

Fax

 

(84-25) 3713966

 

3. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK BA TRIEU BRANCH

Address

 

348 Pho Hue, Hai Ba Trung District, Ha Noi City, Vietnam

 

4. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT BAC SON BRANCH

Address

 

Luong Van Chi Zone Bac Son Town, Bac Son District, Lang Son Province, Vietnam

 

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. NGUYEN ANH QUAN

Position

 

Director

Date of Birth

 

21 May 1959

ID Number/Passport

 

080680375

Issued on

 

04 Mar 1999

Issued Place

 

Police Station of Lang Son

Resident

 

No. 66, Ngan Son Street, Group 5, Vinh Trai ward , Lang Son City, Lang Son Province, Vietnam

Home phone

 

(84-25) 3870381

Nationality

 

Vietnam

Value of shares

 

VND 2,700,000,000

Percentage

 

90%

 

2. NAME

 

Mr. NGUYEN DUY HUNG

Position

 

Deputy Director

ID Number/Passport

 

081037682

Resident

 

Cement factory Collective, Mai Pha Commune , Lang Son City, Lang Son Province, Vietnam

Mobile phone

 

+84 984422888

Nationality

 

Vietnam

Value of shares

 

VND 300,000,000

Percentage

 

10%

 

 

 

FINANCIAL DATA

 

BALANCE SHEET

 

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

267,928,438,089

169,238,023,341

I. Cash and cash equivalents

13,117,432,499

3,968,597,268

1. Cash

13,117,432,499

3,968,597,268

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

256,093,151,467

165,232,757,684

1. Receivable from customers

255,963,945,182

165,103,551,400

2. Prepayments to suppliers

1

0

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

129,206,284

129,206,284

6. Provisions for bad debts

 

 

IV. Inventories

-1,282,145,877

36,668,389

1. Inventories

-1,282,145,877

36,668,389

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

0

0

1. Short-term prepaid expenses

0

0

2. VAT to be deducted

0

0

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

0

0

B. LONG-TERM ASSETS

38,500,000

38,500,000

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

38,500,000

38,500,000

1. Tangible assets

38,500,000

38,500,000

- Historical costs

38,500,000

38,500,000

- 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

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

267,966,938,089

169,276,523,341

 

LIABILITIES

A- LIABILITIES

264,937,688,089

166,246,730,716

I. Current liabilities

265,822,436,125

166,246,730,716

1. Short-term debts and loans

33,530,128,179

0

2. Payable to suppliers

229,782,444,802

164,918,031,614

3. Advances from customers

0

0

4. Taxes and other obligations to the State Budget

2,509,863,144

1,328,699,102

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

II. Long-Term Liabilities

-884,748,036

 

1. Long-term accounts payable to suppliers

0

0

2. Long-term inter-company payable

0

0

3. Other long-term payable

-884,748,036

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

3,029,250,000

3,029,792,625

I. OWNER’S EQUITY

3,029,250,000

3,029,792,625

1. Capital

3,000,000,000

3,000,000,000

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

0

7. Business promotion fund

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

29,250,000

29,792,625

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

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

267,966,938,089

169,276,523,341

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

285,892,170,752

172,879,992,000

2. Deduction item

0

0

3. Net revenue

285,892,170,752

172,879,992,000

4. Costs of goods sold

285,415,903,630

172,677,632,649

5. Gross profit

476,267,122

202,359,351

6. Financial income

6,601,328

872,819

7. Financial expenses

0

0

- In which: Loan interest expenses

0

0

8. Selling expenses

0

0

9. Administrative overheads

443,868,450

163,508,670

10. Net operating profit

39,000,000

39,723,500

11. Other income

0

0

12. Other expenses

0

0

13. Other profit /(loss)

0

0

14. Total accounting profit before tax

39,000,000

39,723,500

15. Current corporate income tax

9,750,000

9,930,875

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

29,250,000

29,792,625

 

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

1.01

1.02

1.25

Quick liquidity ratio

1.01

1.02

0.71

Inventory circle

-458.32

4,709.17

20.29

Average receive period

326.96

348.85

61.81

Utilizing asset performance

1.07

1.02

2.53

Liability by total assets

98.87

98.21

69.15

Liability by owner's equity

8,745.98

5,487.07

261.12

Ebit / Total assets (ROA)

0.01

0.02

9.66

Ebit / Owner's equity (ROE)

1.29

1.31

41.58

Ebit / Total revenue (NPM)

0.01

0.02

4.49

Gross profit / Total revenue (GPM)

0.17

0.12

9.69

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

 

Normal

Financial Situation

 

Normal

Development trend

 

Developing

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Through its bank, T/T, L/C

Sale Methods

 

To contracts

Public opinion

 

Good

 

 

 

 

INTERPRETATION ON THE SCORES

 

A&Q GT CO.,LTD is two member limited liability company, including Mr. Nguyen Anh Quan – director holding 90% of the capital and Mr. Nguyen Duy Hung - deputy director holding the remaining. As a trading company, the subject's chartered capital is VND 3 billion and total employees are about 50 people.

Started operation in 2010, the main business activities of the subject are import-export and trading agricultural products, frozen food and fruit. Currently, the subject mainly imports fruits from China, frozen seafood from Norway and Australia, cereal from India then wholesale in domestic market. Besides, it re-exports imported frozen seafood to China.

Head office of the subject locates at No. 66, Ngan Son Street, Group 5, Vinh Trai Ward, Lang Son Province. This is also private house of Mr. Nguyen Anh Quan. Besides, the subject has two transaction offices in Hanoi and Hai Phong city.

Financially, the financial situation of the subject is considered normal. Total assets were 268 billion VND in 2011, rose by 58.3% compared with 2010. With the humble capital, the subject's assets financed mainly by liabilities. Liability occupied over 90% in total assets. This shows that its self-financing is weak and not safe for creditors. In 2011, although total sales of the subject increased, valued at VND 286 billion, up 65.4% against 2010, profit after tax reduced slightly. Most of financial ratios were not good and risky in relation to the average industry.

In short, the subject is small company that has operated as a family business. Its business activities seem busy now. To be safe, please caution for medium and big transactions with the subject.

 

 

 

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.57.74

UK Pound

1

Rs.90.64

Euro

1

Rs.77.02

 

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.