MIRA INFORM REPORT

 

 

Report Date :

15.06.2013

 

IDENTIFICATION DETAILS

 

Name :

TENOX KYUSYU VIETNAM CO., LTD 

 

 

Registered Office :

Tecasin Building, No. 243 - 243B Hoang Van Thu Street, Ward 1, Tan Binh District, Ho Chi Minh City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishments:

2007

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

design and construction of foundations for civil works

 

 

No. of Employees :

50

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory 

 

 

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

 

TENOX KYUSYU VIETNAM CO., LTD

Vietnamese Name

 

CONG TY TNHH TENOX KYUSYU VIET NAM

Trade name

 

TENOX KYUSYU CORPORATION

Type of Business

 

Limited liability company

Year Established

 

2007

Investment Certificate No

 

411022000172

Date Of Issuance

 

24 Dec 2007

Place of Issuance

 

People’s Committee of Hochiminh City

Registered Investment Capital

 

USD 2,200,000

Chartered capital

 

USD   200,000

Tax code

 

0305422990

Total Employees

 

50

 

 

 

company ADDRESSES

 

Head Office

Address

 

Room 201-3 Area B Waseco Building, No.10 Pho Quang Street, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3842 1946

Fax

 

(84-8) 3842 2197

 

Registration Address

Address

 

Tecasin Building, No. 243 - 243B Hoang Van Thu Street, Ward 1, Tan Binh District, Ho Chi Minh City, Vietnam

 

 

 

DIRECTORS

 

1. NAME

 

Mr. YOJI UEYAMA

Position

 

Director – Legal representative

ID Number/Passport

 

TF2578326

Current resident

 

Ho Chi Minh City, Vietnam

Nationality

 

Japanese

Qualification

 

Management

 

2. NAME

 

Ms. HUYNH THI PHUONG NGA

Position

 

Chief Accountant

Current resident

 

Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Qualification

 

Managing

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is specializing in design and construction of foundations for civil works.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Market

 

Japan

 

EXPORT: N/A

 

 

 

BANKERS

 

MIZUHO CORPORATE BANK

Address

 

No 5B Ton Duc Thang Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3822 8638  

Fax

 

(84-8) 3822 8640

 

 

SHAREHOLDERS

 

NAME

 

TENOX KYUSYU CORPORATION

Address

 

4-1-17,Tenjin,Chuo-ku,Fukuoka-shi, Fukuoka 810-0001

Japan

Percentage

 

100%

      

 

 

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

47,168,658,272

21,000,186,076

I. Cash and cash equivalents

5,303,685,610

1,649,627,025

1. Cash

5,303,685,610

1,649,627,025

2. Cash equivalents

0

0

II. Short-term investments

0

4,925,000,000

1. Short-term investments

0

4,925,000,000

2. Provisions for devaluation of short-term investments

0

0

III. Accounts receivable

30,826,362,123

4,051,221,447

1. Receivable from customers

29,415,623,122

3,667,503,596

2. Prepayments to suppliers

312,269,500

2,090,000

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

1,338,469,501

381,627,851

6. Provisions for bad debts

-240,000,000

0

IV. Inventories

8,847,757,446

9,248,907,950

1. Inventories

8,847,757,446

9,248,907,950

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

2,190,853,093

1,125,429,654

1. Short-term prepaid expenses

1,725,094,286

695,666,296

2. VAT to be deducted

0

104,828,418

3. Taxes and other accounts receivable from the State

251,779,940

251,779,940

4. Other current assets

213,978,867

73,155,000

B. LONG-TERM ASSETS

41,769,927,207

23,757,597,313

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

30,627,391,866

14,219,115,898

1. Tangible assets

19,873,191,869

12,809,947,660

- Historical costs

30,732,237,761

17,804,859,850

- Accumulated depreciation

-10,859,045,892

-4,994,912,190

2. Financial leasehold assets

10,754,199,997

0

- Historical costs

12,652,000,000

0

- Accumulated depreciation

-1,897,800,003

0

3. Intangible assets

0

1,773,678

- Initial costs

31,926,000

31,926,000

- Accumulated amortization

-31,926,000

-30,152,322

4. Construction-in-progress

0

1,407,394,560

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

11,142,535,341

9,538,481,415

1. Long-term prepaid expenses

0

43,527,250

2. Deferred income tax assets

326,788,750

326,788,750

3. Other long-term assets

10,815,746,591

9,168,165,415

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

88,938,585,479

44,757,783,389

 

 

LIABILITIES

A- LIABILITIES

98,604,352,031

45,962,669,471

I. Current liabilities

87,540,586,588

45,938,793,304

1. Short-term debts and loans

24,397,399,302

9,022,800,000

2. Payable to suppliers

59,960,762,083

21,414,823,439

3. Advances from customers

100,000,000

14,717,004,980

4. Taxes and other obligations to the State Budget

1,715,181,067

129,432,586

5. Payable to employees

115,209,174

65,994,599

6. Accrued expenses

1,225,317,511

588,737,700

7. Inter-company payable

0

0

8. Payable according to the progress of construction contracts

0

0

9. Other payable

26,717,451

0

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

 

 

II. Long-Term Liabilities

11,063,765,443

23,876,167

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

11,039,889,276

0

5. Deferred income tax payable

0

0

6. Provisions for unemployment allowances

23,876,167

23,876,167

7. Provisions for long-term accounts payable

0

0

8. Unearned Revenue

 

 

9. Science and technology development fund

 

 

B- OWNER’S EQUITY

-9,665,766,552

-1,204,886,082

I. OWNER’S EQUITY

-9,665,766,552

-1,204,886,082

1. Capital

3,199,200,000

3,199,200,000

2. Share premiums

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

-12,864,966,552

-4,404,086,082

11. Construction investment fund

0

0

12. Business arrangement supporting fund

 

 

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

88,938,585,479

44,757,783,389

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

119,017,571,233

33,430,541,513

2. Deduction item

0

0

3. Net revenue

119,017,571,233

33,430,541,513

4. Costs of goods sold

111,180,521,101

23,814,638,140

5. Gross profit

7,837,050,132

9,615,903,373

6. Financial income

1,022,027,385

360,886,926

7. Financial expenses

7,477,882,028

4,149,589,560

- In which: Loan interest expenses

 

 

8. Selling expenses

0

0

9. Administrative overheads

9,842,075,968

10,590,650,033

10. Net operating profit

-8,460,880,479

-4,763,449,294

11. Other income

9

0

12. Other expenses

0

0

13. Other profit /(loss)

9

0

14. Total accounting profit before tax

-8,460,880,470

-4,763,449,294

15. Current corporate income tax

0

0

16. Deferred corporate income tax

0

-5,606,563

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

-8,460,880,470

-4,757,842,731

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

0.54

0.46

1.49

Quick liquidity ratio

0.44

0.26

0.76

Inventory circle

12.29

2.57

4.15

Average receive period

94.54

44.23

428.99

Utilizing asset performance

1.34

0.75

0.47

Liability by total assets

110.87

102.69

68.68

Liability by owner's equity

-1,020.14

-3,814.69

399.20

Ebit / Total assets (ROA)

-9.51

-10.64

4.58

Ebit / Owner's equity (ROE)

87.53

395.34

22.45

Ebit / Total revenue (NPM)

-7.11

-14.25

17.51

Gross profit / Total revenue (GPM)

6.58

28.76

19.94

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

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Low

Payment status

 

Normal

Financial Situation

 

Average

Development trend

 

Developing

Litigation data

 

No Recorded

Bankruptcy

 

No Recorded

Payment Methods

 

through by bank

Sale Methods

 

To projects

Public opinion

 

Good

 

 

 

INTERPRETATION ON THE SCORES

 

The subject – TENOX KYUSYU CORPORATION was established in 2007 and started operation in Jan 2008. At present, the subject is operating under investment certification no. 411022000172 issued by People’s Committee of Hochiminh City with total investment capital USD 2,200,000 and chartered capital USD 200,000. Mr. Yoji Ueyama is legal representative of the subject.

The subject is specializing in design and construction of soil foundations for civil works. The subject imports machine to serve construction projects from Japan. In May 2011, the subject has performed project in Sao Mai Ben Dinh Port in Vung Tau City at Ba Ria – Vung Tau province. Currently, its market share is medium.

Premises and facilities of the subject are fairly. Its management capacity is professional with 50 persons. As reported financial data, its financial capacity is not good its profit in two years were loss. However, its revenue in 2011 increased high compared to 2010. Its liquidity ratios were lower than industry.

In overview, the subject is operating with medium scale. Its position in industry is average. Its future is also brightly. The subject has capacity has capacity to meet small and normal transactions.

 

 

 

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.57.74

UK Pound

1

Rs.90.64

Euro

1

Rs.77.02

 

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%)

 

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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.