MIRA INFORM REPORT

 

 

Report Date :

18.06.2013

 

IDENTIFICATION DETAILS

 

Name :

BAC SON TOBACCO COMPANY LIMITED 

 

 

Formerly Known As :

BAC SON CIGARETTE FACTORY

 

 

Registered Office :

Area I - Dap Cau Ward, Bac Ninh City, Bac Ninh Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishments:

1968

 

 

Com. Reg. No.:

2104000008

 

 

Legal Form :

One member liability limited company

 

 

Line of Business :

manufacturing and trading of filter cigarette, tobacco

 

 

No. of Employees :

450

 

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

 

Current legal status

English Name

 

BAC SON TOBACCO COMPANY LIMITED

Vietnamese Name

 

CONG TY TNHH MOT THANH VIEN THUOC LA BAC SON

Short name

 

VINATABA BACSON

Type of Business

 

One member liability limited company

Year Established

 

1968

Establishment Decision

 

321/2005/QD-TTG

Date of Issuance

 

06 Dec 2005

Place of Issuance

 

Prime Minister

Business Registration No.

 

2104000008

Date of Registration

 

30 Dec 2005

Place of Registration

 

Planning and Investment Department of Bac Ninh Province

Chartered capital

 

VND 58,875,000,000

Status

 

Unlisted

Tax code

 

2300101644

Total Employees

 

450

 

Note: The correct name of the subject is as above.

 

Historical Identification & Legal form

List

Changed Items

Date of changes

1

Subject has got former Chartered capital: VND 46,966,218,649 Changed to: VND 58,875,000,000

2012

2

Subject has got former Registered English Name: BAC SON CIGARETTE FACTORY

Changed to: BAC SON TOBACCO COMPANY LIMITED

06 Dec 2005

3

Subject has got former Registered Vietnamese Name: NHA MAY THUOC LA BAC SON

Changed to: CONG TY TNHH MOT THANH VIEN THUOC LA BAC SON

06 Dec 2005

 

 

 

company ADDRESSES

 

Head Office

Address

 

Area I - Dap Cau Ward, Bac Ninh City, Bac Ninh Province, Vietnam

Telephone

 

(84-241) 3821 332/254

Fax

 

(84-241) 3821 551

Note: The correct address of the subject is as above.

 

 

SUBSIDIARIES AND RELATED COMPANIES

 

PARENT COMPANY - VIETNAM NATIONAL TOBACCO CORPORATION

Business Registration

 

0101216069

Date of Registration

 

28 Sep 2011

Place of Registration

 

Business Registration Office – Planning and Investment Department of Ha Noi City

Chartered Capital

 

VND 1,602,000,000,000

Tax code

 

0101216069

Address

 

25A Ly Thuong Kiet Str., Hoan Kiem District, Ha Noi City, Vietnam

Tel

 

(84-4) 3826 5778/ 38251381/ 39335536

Fax

 

(84-4) 3826 5777

Website

 

www.vinataba.com.vn

 

 

 

DIRECTORS

 

4. NAME

 

Mr. DANG XUAN PHUONG

Position

 

Chairman

Date of Birth

 

24 Dec 1959

ID Number/Passport

 

011639439

ID Issue Date

 

07 Nov 2001

ID Issue Place

 

Hanoi city, Department police

Resident

 

No. 27 - Lane 184 Vuong Thua Vu Str, Thanh Xuan District, Ha Noi City, Vietnam

Current resident

 

No. A13 - Lot 11 the urban Dinh Cong - Dinh Cong ward, Hoang Mai District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Mr. DINH VAN LA

Position

 

Director

ID Number/Passport

 

120818066

Resident

 

No. 55 Ngo Gia Tu Street - Tien An Ward, Bac Ninh Province, Vietnam

Nationality

 

Vietnamese

 

3. NAME

 

Ms. NGUYEN THI KIM DUNG

Position

 

Deputy Director

Nationality

 

Vietnamese

 

4. NAME

 

Mr. NGUYEN TRUNG DUNG

Position

 

Chief Accountant

Nationality

 

Vietnamese

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject focuses on manufacture and trading of filter cigarette, tobacco.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Machinery

·         Market

 

England, Germany and others

 

EXPORT:

·         Market

 

Czech, Dubai, USA, Russia, etc.

 

 

 

BANKERS

 

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM BAC NINH BRANCH

Address

 

No. 353 Tran Hung Dao Street, Bac Ninh City, Bac Ninh Province, Vietnam

Telephone

 

(84-241) 3811858 / 3811849

Fax

 

(84-241) 3811844

 

2. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE BAC NINH BRANCH

Address

 

No.31 Nguyen Dang Dao str, Bac Ninh City, Bac Ninh Province, Vietnam

Telephone

 

(84-241) 3810939

 

3. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM BAC NINH BRANCH

Address

 

No.1 Nguyen Dang Dao, Bac Ninh City, Bac Ninh Province, Vietnam

Telephone

 

(84-0241) 3822720

 

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

Address

 

No.81 Nguyen Du Street, Bac Ninh City, Bac Ninh Province, Vietnam

 

 

SHAREHOLDERS

 

NAME

 

VIETNAM NATIONAL TOBACCO CORPORATION

Business Registration

 

0101216069

Date of Registration

 

28 Sep 2011

Place of Registration

 

Business Registration Office – Planning and Investment Department of Ha Noi City

Chartered Capital

 

VND 1,602,000,000,000

Tax code

 

0101216069

Address

 

25A Ly Thuong Kiet Str., Hoan Kiem District, Ha Noi City, Vietnam

Tel

 

(84-4) 3826 5778/ 38251381/ 39335536

Fax

 

(84-4) 3826 5777

Email

 

vitab@hcm.vnn.vn

Website

 

www.vinataba.com.vn

Percentage

 

100%

 

 


FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

31/12/2009

Number of weeks

52

52

52

ASSETS

A – CURRENT ASSETS

159,818,530,409

115,806,085,749

126,544,000,000

I. Cash and cash equivalents

16,155,349,548

8,092,330,153

31,802,000,000

1. Cash

16,155,349,548

8,092,330,153

31,802,000,000

2. Cash equivalents

0

0

0

II. Short-term investments

0

10,000,000,000

0

1. Short-term investments

0

10,000,000,000

0

2. Provisions for devaluation of short-term investments

0

0

0

III. Accounts receivable

93,916,137,856

28,118,719,611

23,912,000,000

1. Receivable from customers

90,278,738,077

26,475,929,085

22,745,000,000

2. Prepayments to suppliers

27,873,000

170,456,000

81,000,000

3. Inter-company receivable

0

0

0

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

3,636,783,590

1,499,591,337

1,113,000,000

6. Provisions for bad debts

-27,256,811

-27,256,811

-27,000,000

IV. Inventories

49,270,504,200

69,339,513,236

70,575,000,000

1. Inventories

49,467,565,479

69,535,565,716

70,767,000,000

2. Provisions for devaluation of inventories

-197,061,279

-196,052,480

-192,000,000

V. Other Current Assets

476,538,805

255,522,749

255,000,000

1. Short-term prepaid expenses

154,089,191

82,998,863

83,000,000

2. VAT to be deducted

0

0

0

3. Taxes and other accounts receivable from the State

0

0

0

4. Other current assets

322,449,614

172,523,886

172,000,000

B. LONG-TERM ASSETS

24,053,263,315

28,598,010,755

32,432,000,000

I. Long term accounts receivable

0

0

0

1. Long term account receivable from customers

0

0

0

2. Working capital in affiliates

0

0

0

3. Long-term inter-company receivable

0

0

0

4. Other long-term receivable

0

0

0

5. Provisions for bad debts from customers

0

0

0

II. Fixed assets

23,799,896,115

28,428,426,755

32,261,000,000

1. Tangible assets

23,799,896,115

28,428,426,755

32,261,000,000

- Historical costs

83,742,953,681

83,549,714,263

82,554,000,000

- Accumulated depreciation

-59,943,057,566

-55,121,287,508

-50,293,000,000

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

0

0

0

- Initial costs

0

0

0

- Accumulated amortization

0

0

0

4. Construction-in-progress

0

0

0

III. Investment property

0

0

0

Historical costs

0

0

0

Accumulated depreciation

0

0

0

IV. Long-term investments

253,367,200

169,584,000

171,000,000

1. Investments in affiliates

0

0

0

2. Investments in business concerns and joint ventures

0

0

0

3. Other long-term investments

327,284,000

209,584,000

171,000,000

4. Provisions for devaluation of long-term investments

-73,916,800

-40,000,000

0

V. Other long-term assets

0

0

0

1. Long-term prepaid expenses

0

0

0

2. Deferred income tax assets

0

0

0

3. Other long-term assets

0

0

0

VI. Goodwill

0

0

 

1. Goodwill

0

0

 

TOTAL ASSETS

183,871,793,724

144,404,096,504

158,976,000,000

 

LIABILITIES

A- LIABILITIES

107,347,221,922

69,929,080,934

87,880,000,000

I. Current liabilities

106,621,917,116

69,211,536,057

87,185,000,000

1. Short-term debts and loans

10,000,000,000

12,000,000,000

20,000,000,000

2. Payable to suppliers

44,759,846,412

17,687,332,910

21,411,000,000

3. Advances from customers

736,581,723

265,974,825

106,000,000

4. Taxes and other obligations to the State Budget

36,116,816,361

30,376,490,964

35,599,000,000

5. Payable to employees

6,118,546,436

6,140,258,898

5,484,000,000

6. Accrued expenses

0

15,500,000

16,000,000

7. Inter-company payable

2,321,817,038

0

0

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

6,568,309,146

2,725,978,460

4,569,000,000

10. Provisions for short-term accounts payable

0

0

0

II. Long-Term Liabilities

725,304,806

717,544,877

695,000,000

1. Long-term accounts payable to suppliers

0

0

0

2. Long-term inter-company payable

0

0

0

3. Other long-term payable

0

0

0

4. Long-term debts and loans

0

0

0

5. Deferred income tax payable

0

0

0

6. Provisions for unemployment allowances

0

717,544,877

695,000,000

7. Provisions for long-term accounts payable

725,304,806

0

0

8. Unearned Sale

0

 

 

9. Science and technology development fund

0

 

 

B- OWNER’S EQUITY

76,524,571,802

74,475,015,570

71,096,000,000

I. OWNER’S EQUITY

74,455,745,687

73,402,135,753

69,625,000,000

1. Capital

49,917,969,584

49,724,730,166

48,729,000,000

2. Share premiums

0

0

0

3. Other sources of capital

0

0

0

4. Treasury stocks

0

0

0

5. Differences on asset revaluation

0

0

0

6. Foreign exchange differences

0

0

0

7. Business promotion fund

13,992,217,838

14,185,457,256

10,146,000,000

8. Financial reserved fund

4,884,223,032

4,371,853,554

3,663,000,000

9. Other funds

0

0

0

10. Retained earnings

5,661,335,233

5,120,094,777

7,087,000,000

11. Construction investment fund

0

0

0

12. Business arrangement supporting fund

0

 

 

II. Other sources and funds

2,068,826,115

1,072,879,817

1,471,000,000

1. Bonus and welfare funds

2,068,826,115

1,072,879,817

1,471,000,000

2. Sources of expenditure

0

0

0

3. Fund to form fixed assets

0

0

0

MINORITY’S INTEREST

0

0

 

TOTAL LIABILITIES AND OWNER’S EQUITY

183,871,793,724

144,404,096,504

158,976,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

FY2009

1. Total Sales

522,944,346,590

488,774,898,320

532,875,000,000

2. Deduction item

201,353,560,554

191,325,020,669

209,818,000,000

3. Net sale

321,590,786,036

297,449,877,651

323,057,000,000

4. Costs of goods sold

285,362,289,682

261,030,272,539

280,575,000,000

5. Gross profit

36,228,496,354

36,419,605,112

42,482,000,000

6. Financial income

889,885,893

416,186,639

557,000,000

7. Financial expenses

404,819,578

1,390,638,889

298,000,000

- In which: Loan interest expenses

370,902,778

1,350,638,889

322,000,000

8. Selling expenses

6,532,192,683

5,613,423,864

5,847,000,000

9. Administrative overheads

24,754,016,477

24,633,867,947

30,189,000,000

10. Net operating profit

5,427,353,509

5,197,861,051

6,705,000,000

11. Other income

2,115,049,269

1,628,931,985

2,884,000,000

12. Other expenses

2,435,000

0

140,000,000

13. Other profit /(loss)

2,112,614,269

1,628,931,985

2,744,000,000

14. Total accounting profit before tax

7,539,967,778

6,826,793,036

9,449,000,000

15. Current corporate income tax

1,878,632,545

1,706,698,259

2,362,000,000

16. Deferred corporate income tax

0

0

0

17. Interest from subsidiaries/related companies

0

0

0

18. Profit after tax

5,661,335,233

5,120,094,777

7,087,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

FY2009

Average Industry

Current liquidity ratio

1.50

1.67

1.45

1.25

Quick liquidity ratio

1.04

0.67

0.64

0.40

Inventory circle

4.81

3.76

4.39

3.62

Average receive period

106.59

34.50

27.02

40.25

Utilizing asset performance

1.75

2.06

2.03

1.45

Liability by total assets

58.38

48.43

55.28

69.34

Liability by owner's equity

140.28

93.90

123.61

298.51

Ebit / Total assets (ROA)

4.30

5.66

6.15

8.98

Ebit / Owner's equity (ROE)

10.34

10.98

13.74

31.06

Ebit / Total sale (NPM)

1.51

1.67

1.83

4.24

Gross profit / Total sale (GPM)

6.93

7.45

7.97

7.69

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

 

Average

Financial Situation

 

Above Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

L/C, TT

Sale Methods

 

Wholesaler

Public opinion

 

Good

 

 

 

 

INTERPRETATION ON THE SCORES

 

The subject was established in February 15th, 1968 as a factory of Vietnam National Tobacco Corporation (VINATABA). On December 6th, 2005, The Prime Minister decided to change type of business of subject from factory to one member liability limited company and its name was changed to BAC SON TOBACCO COMPANY LIMITED.

The subject is specialized in the manufacturing and trading of cigarette, tobacco. The subject’s products are Vinataba, Pacific, Aroma, Song Cau, Win, Vien Dong, Bay Leaf, Romantic trademark, etc. The subject imports machines and production lines from Germany, England. Its products are exported to Czech, Dubai, USA and Russia. However, the import – export activities of subject are executed by VIETNAM NATIONAL TOBACCO CORPORATION.

The premise and facilities of the subject are above average. The management capacity of the subject is normal. Its position in the field is normal. Currently, the subject has about 450 employees. The subject achieved the certificate ISO 9001:2008 and received some awards as The Third labor Medal in 1978, the First Labor Medal in 1997…

Tobacco industry, which is not encouraged but brings high profit is forecasted to have a new face thanks to issued decree of the government. Vietnam considers the cigarette industry as a state monopoly area. The prevailing point of view in managing this industry has been that the Vietnamese government will have a monopoly over the tobacco industry, covering distribution, production and import; the state will control the distribution and consumption of cigarettes in the market and tightly manage the wholesale and retail of tobacco products. The decree on cigarettes dated July 18, 2007 says that, the Prime Minister approves the production of new brands of cigarettes in Vietnam and only the Vietnam National Tobacco Corporation (Vinataba) is permitted to import cigarettes into Vietnam. The trade morality is good.

According to financial statement of the subject, we can see that its business results were fair. In 2011, the subject gained VND 522,944 million in total sales – increased 7% in comparison with its one in 2010. However, its profit after tax growth was small. This caused by high growth rate cost of goods sold.

In terms of the financial leverage, its debt ratio increased but it was still moderate. Therefore, its financial structure was safe. Its liquidity was fairly good with the quick liquidity was above 1. The subject guaranteed the financial securities principle. Its operational ratios were still higher than the industry. In profitability ratios, its ROE and ROA ratios were normal because the NPM and GPM ratios were low.

In general, the subject’s operation and financial situation is fair. The subject has capacity to meet small and normal financial commitments.

 

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.57.73

UK Pound

1

Rs.90.61

Euro

1

Rs.76.96

 

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.