MIRA INFORM REPORT

 

 

Report Date :

18.06.2013

 

IDENTIFICATION DETAILS

 

Name :

LANG SON FOREST PRODUCTS JOINT STOCK COMPANY

 

 

Registered Office :

Km 3, Block 5, Hop Thanh Commune, Cao Loc District, Lang Son Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

2008

 

 

Com. Reg. No.:

4900288395

 

 

Legal Form :

Joint stock company

 

 

Line of Business :

The subject specializes in processing and trading wood

 

 

No. of Employees :

60

 

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 :

Small Company

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

 

LANG SON FOREST PRODUCTS JOINT STOCK COMPANY

Vietnamese Name

 

CONG TY CO PHAN LAM SAN LANG SON

Short name

 

LAFOSCO

Type of Business

 

Joint stock company

Year Established

 

2008

Business Registration No.

 

4900288395

Date of Registration

 

21 Nov 2011

Place of Registration

 

Planning and Investment Department of Lang Son Province

Chartered capital

 

VND 15,000,000,000

Status

 

Unlisted

Tax code

 

4900288395

Total Employees

 

60

Size

 

Small

Note: The correct name of the subject is above.

 

 

 

ADDRESSES

 

Head Office

Address

 

Km 3, Block 5, Hop Thanh Commune, Cao Loc District, Lang Son Province, Vietnam

Telephone

 

(84-25) 3879818

Fax

 

(84-25) 3879818

 

 

DIRECTORS

 

1. NAME

 

Mr. PHAM NGOC SON

Position

 

Chairman

Date of Birth

 

12 Apr 1965

ID Number/Passport

 

082019237

ID Issue Date

 

04 Apr 2006

ID Issue Place

 

Police Station in Lang Son Province

Resident

 

No.12, National Road 1A, Dong Kinh Ward, Lang Son City, Lang Son Province, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84) 913 069 158

 

2. NAME

 

Mr. NGUYEN XUAN TUAN

Position

 

Director

ID Number/Passport

 

080979473

Resident

 

No.3, Alley 12, Ngo Quyen Street, Vinh Trai Ward, Lang Son City, Lang Son Province, Vietnam

Nationality

 

Vietnamese

 

3. NAME

 

Ms. NGUYEN THI TU

Position

 

Chief Accountant

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84) 964 410 111

Email

 

nguyenthitu1981@gmail.com

 

4. NAME

 

Mr. NGUYEN VAN HIEU

Position

 

Import - Export Department

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84) 983 344 860

Email

 

nguyen.van.hieu.vn@gmail.com

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject specializes in processing and trading wood

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Note: Currently, the subject does not import

 

EXPORT:

Types of products

 

Wood

Market

 

India, Singapore

Mode of payment

 

L/C, cash

 

 

 

BANKERS

 

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

 

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. PHAM NGOC SON

Position

 

Chairman

Date of Birth

 

12 Apr 1965

ID Number/Passport

 

082019237

Issued on

 

04 Apr 2006

Issued Place

 

Police Station in Lang Son Province

Resident

 

No.12, National Road 1A, Dong Kinh Ward , Lang Son City, Lang Son Province, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84) 913 069 158

Value of shares

 

VND 7,200,000,000

Percentage

 

48%

 

2. NAME

 

Mr. HOANG MINH VU

ID Number/Passport

 

060802097

Resident

 

No.253, Le Loi Street, Vinh Trai Ward , Lang Son City, Lang Son Province, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 6,150,000,000

Percentage

 

41%

 

3. NAME

 

Mr. NGUYEN XUAN TUAN

Position

 

Director

ID Number/Passport

 

080979473

Resident

 

No.3, Alley 12, Ngo Quyen Street, Vinh Trai Ward , Lang Son City, Lang Son Province, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 1,650,000,000

Percentage

 

11%

 

 

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

9,561,000,000

9,207,000,000

I. Cash and cash equivalents

785,000,000

1,701,000,000

1. Cash

785,000,000

1,701,000,000

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

523,000,000

379,000,000

1. Receivable from customers

523,000,000

0

2. Prepayments to suppliers

0

379,000,000

3. Inter-company receivable

0

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

8,253,000,000

7,127,000,000

1. Inventories

8,253,000,000

7,127,000,000

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

7,266,000,000

7,266,000,000

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

7,266,000,000

7,266,000,000

1. Tangible assets

766,000,000

766,000,000

- Historical costs

766,000,000

766,000,000

- Accumulated depreciation

0

0

2. Financial leasehold assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

3. Intangible assets

6,500,000,000

6,500,000,000

- Initial costs

6,500,000,000

6,500,000,000

- 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

16,827,000,000

16,473,000,000

 

LIABILITIES

A- LIABILITIES

1,766,000,000

1,417,000,000

I. Current liabilities

1,766,000,000

1,417,000,000

1. Short-term debts and loans

200,000,000

400,000,000

2. Payable to suppliers

1,446,000,000

0

3. Advances from customers

0

906,000,000

4. Taxes and other obligations to the State Budget

120,000,000

21,000,000

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

90,000,000

10. Provisions for short-term accounts payable

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

15,061,000,000

15,056,000,000

I. OWNER’S EQUITY

15,061,000,000

15,056,000,000

1. Capital

15,000,000,000

15,000,000,000

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

61,000,000

56,000,000

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

16,827,000,000

16,473,000,000

 

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

1. Total Sales

14,281,000,000

2. Deduction item

0

3. Net revenue

14,281,000,000

4. Costs of goods sold

13,379,000,000

5. Gross profit

902,000,000

6. Financial income

4,000,000

7. Financial expenses

50,000,000

- In which: Loan interest expenses

0

8. Selling expenses

442,000,000

9. Administrative overheads

408,000,000

10. Net operating profit

6,000,000

11. Other income

0

12. Other expenses

0

13. Other profit /(loss)

0

14. Total accounting profit before tax

6,000,000

15. Current corporate income tax

1,000,000

16. Deferred corporate income tax

0

17. Interest from subsidiaries/related companies

 

18. Profit after tax

5,000,000

 

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

Average Industry

Current liquidity ratio

5.41

1.36

Quick liquidity ratio

0.74

0.70

Inventory circle

1.74

12.84

Average receive period

13.37

78.77

Utilizing asset performance

0.85

1.05

Liability by total assets

10.50

63.01

Liability by owner's equity

11.73

257.66

Ebit / Total assets (ROA)

0.04

9.45

Ebit / Owner's equity (ROE)

0.04

31.44

Ebit / Total revenue (NPM)

0.04

10.94

Gross profit / Total revenue (GPM)

6.32

16.15

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

 

Normal

Development trend

 

Developing

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

LC, cash

Sale Methods

 

To contracts

Public opinion

 

Normal

 

 

 

INTERPRETATION ON THE SCORES

 

LANG SON FOREST PRODUCTS JOINT STOCK COMPANY (LAFOSCO) was established in 2008. Currently, the subject has operated under business registration No.4900288395 (the same as the tax code) granted by Planning and Investment Department of Lang Son Province. Its chartered capital is now VND 15 billion.

Head office of the company is located at Km 3, Block 5, Hop Thanh Commune, Cao Loc District, Lang Son Province. LAFOSCO focuses on processing and trading wood. Its wood is mainly exported to India, Singapore.

Based on financial data above, the financial situation of the subject is considered normal. Total assets in 2011 increased slightly in comparison with last year. It achieved total sales of VND 14,281 million and profit after tax of VND 5 million in 2011. The liquidity is medium and the liabilities by total assets and by owner’s equity are in safety bound. The minus point for the subject is the inventories are high and the profitability is humble.

According to Ms. Nguyen Thi Tu – Chief accountant of the subject, business result of LAFOSCO has been not good in recent years.

In short, the subject is a small company whose position is not remarkable in the business field. It needs to try more to develop in the future. Caution needed for medium – large ones 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.57.73

UK Pound

1

Rs.90.61

Euro

1

Rs.76.96

 

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.