MIRA INFORM REPORT

 

 

Report Date :

08.03.2013

 

IDENTIFICATION DETAILS

 

Name :

SON TUNG TRADING AND PRODUCTION JOINT STOCK COMPANY 

 

 

Formerly Known as:

SON TUNG LTD

 

 

Registered Office :

Group 1, Quarter 1, Hai Hoa Ward, Mong Cai City, Quang Ninh Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishments:

2003 

 

 

Com. Reg. No.:

5700450589

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

trading in frozen products

 

 

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 :

Usually Correct 

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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 in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep 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 has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

 

Source : CIA

 


 

 

SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

English Name

 

SON TUNG TRADING AND PRODUCTION JOINT STOCK COMPANY

Vietnamese Name

 

CONG TY CO PHAN SAN XUAT VA THUONG MAI SON TUNG

Type of Business

 

Limited liability company

Year Established

 

2003

Business Registration No.

 

5700450589

Date of Registration

 

28 Jan 2011

Place of Registration

 

Quang Ninh Department of Planning and Investment

Chartered capital

 

VND 21,600,000,000

Status

 

Unlisted

Tax code

 

5700450589

Total Employees

 

50

Size

 

Small

 

 

Historical Identification & Legal form

List

Changed Items

Date of changes

1

Subject has got former Registered English Name: SON TUNG LTD Changed to: SON TUNG TRADING AND PRODUCTION JOINT STOCK COMPANY

22 Mar 2013

2

Subject has got former Registered Vietnamese Name: CONG TY TNHH SON TUNG

Changed to: CONG TY CO PHAN SAN XUAT VA THUONG MAI SON TUNG

22 Mar 2012

3

Subject has got former Chartered capital: 18,600,000,000 VND Changed to: 21,600,000,000 VND

22 Mar 2012

4

Subject has got former Board Of Director: NGUYEN DUC CHINH - Former Director Changed to: NGUYEN DUC HUNG - Current Director

22 Mar 2012

5

Subject has got former Address: No. 1 Ka Long Ward - Mong Cai District - Quang Ninh Province - Vietnam

Changed to: Group 1 - Quater 1 - Hai Hoa Ward - - Mong Cai District - Quang Ninh Province - Vietnam

2010

 


 

company ADDRESSES

 

Head Office

Address

 

Group 1, Quarter 1, Hai Hoa Ward, Mong Cai City, Quang Ninh Province, Vietnam

Telephone

 

(84-33) 3882259/ 3778797

Fax

 

(84-33) 3881505

 

 

 

DIRECTORS

 

1. NAME

 

Mr. NGUYEN DUC CHINH

Position

 

Chairman

Date of Birth

 

07 Sep 1965

ID Number/Passport

 

100525509

ID Issue Date

 

26 Feb 1999

ID Issue Place

 

Police Of Quang Ninh Province

Resident

 

Group 3 - Quater 1 - Ka Long Ward, Mong Cai City, Quang Ninh Province, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84) 979018818

 

2. NAME

 

Mr. NGUYEN DUC HUNG

Position

 

Director

Date of Birth

 

26 Sep 1988

ID Number/Passport

 

101001301

ID Issue Date

 

31 Oct 2005

ID Issue Place

 

Quang Ninh Police Station

Resident

 

Area 1, Troi Town , Hoanh Bo District, Quang Ninh Province, Vietnam

Current resident

 

Group 1, Ka Long Ward , Mong Cai City, Quang Ninh Province, Vietnam

Nationality

 

Vietnamese

Note: Mr. Nguyen Duc Hung has replaced Mr. Nguyen Duc Chinh to become director of the subject since March 2012.

 

3. NAME

 

Mr. NGUYEN DUC BAY

Position

 

Deputy Director

ID Number/Passport

 

100675374

Resident

 

Group 2 - Quater 3 - Ka Long Ward , Mong Cai City, Quang Ninh Province, Vietnam

Nationality

 

Vietnamese

 

4. NAME

 

Ms. TRAN THI HUYEN

Position

 

Chief Accountant

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84-33) 24262966 / (84) 987 835 168

Email

 

tranthihuyen912@gmail.com

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject specializes in trading in frozen products

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Frozen products

·         Market

 

India

·         Mode of payment

 

TTR

 

EXPORT:

·         Market

 

China

·         Mode of payment

 

TTR

 

 

 

BANKERS

 

1. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM MONG CAI BRANCH

Address

 

Hung Vuong str, Mong Cai City, Quang Ninh Province, Vietnam

Telephone

 

(84-33) 3881121

 

2. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE MONG CAI BRANCH

Address

 

No.01 Huu Nghi str, Mong Cai City, Quang Ninh Province, Vietnam

Telephone

 

(84-33) 3881553

 

3. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK MONG CAI BRANCH

Address

 

No. 7 Hung Vuong Tran Phu Ward, Mong Cai City, Quang Ninh Province, Vietnam

Telephone

 

(84-33) 3777088

Fax

 

(84-33) 3777077

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. NGUYEN DUC CHINH

Position

 

Chairman

Date of Birth

 

07 Sep 1965

ID Number/Passport

 

100525509

Issued on

 

26 Feb 1999

Issued Place

 

Police Of Quang Ninh Province

Resident

 

Group 3 - Quater 1 - Ka Long Ward , Mong Cai City, Quang Ninh Province, Vietnam

Mobile phone

 

(84) 979018818

Nationality

 

Vietnamese

Value of shares

 

VND 16,800,000,000

Percentage

 

77.78%

 

2. NAME

 

Mr. NGUYEN DUC BAY

Position

 

Deputy Director

ID Number/Passport

 

100675374

Resident

 

Group 2 - Quarter 3 - Ka Long Ward , Mong Cai City, Quang Ninh Province, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 1,800,000,000

Percentage

 

8.33%

 

3. NAME

 

Mr. NGUYEN DUC HUNG

Position

 

Director

Date of Birth

 

26 Sep 1988

ID Number/Passport

 

101001301

Issued on

 

31 Oct 2005

Issued Place

 

Quang Ninh Police Station

Resident

 

Area 1, Troi Town , Hoanh Bo District, Quang Ninh Province, Vietnam

Current Resident

 

Group 1, Ka Long Ward , Mong Cai City, Quang Ninh Province, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 3,000,000,000

Percentage

 

13.89%

 

 

 

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

3,840,011,159

1,763,393,542

3,634,506,914

I. Cash and cash equivalents

2,857,010,767

1,172,413,783

2,444,669,016

1. Cash

 

1,172,413,783

2,444,669,016

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

983,000,392

580,770,258

1,006,217,794

1. Receivable from customers

983,000,392

580,770,258

1,006,217,794

2. Prepayments to suppliers

 

0

0

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

 

0

0

1. Inventories

 

0

0

2. Provisions for devaluation of inventories

 

0

0

V. Other Current Assets

 

10,209,501

183,620,104

1. Short-term prepaid expenses

 

0

0

2. VAT to be deducted

 

10,209,501

9,401,109

3. Taxes and other accounts receivable from the State

 

0

0

4. Other current assets

 

0

174,218,995

B. LONG-TERM ASSETS

12,241,139,043

7,889,926,717

6,160,478,645

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

10,155,073,558

7,880,660,051

6,160,478,645

1. Tangible assets

8,808,195,946

7,509,382,759

2,592,131,228

- Historical costs

11,675,749,281

9,622,931,934

4,203,596,689

- Accumulated depreciation

-2,867,553,335

-2,113,549,175

-1,611,465,461

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

1,346,877,612

371,277,292

3,568,347,417

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

2,086,065,485

9,266,666

0

1. Long-term prepaid expenses

 

0

0

2. Deferred income tax assets

 

0

0

3. Other long-term assets

2,086,065,485

9,266,666

0

VI. Goodwill

 

0

0

1. Goodwill

 

0

0

TOTAL ASSETS

16,081,150,202

9,653,320,259

9,794,985,559

 

LIABILITIES

A- LIABILITIES

197,674,335

52,360,185

208,569,577

I. Current liabilities

197,674,335

52,360,185

208,569,577

1. Short-term debts and loans

 

0

0

2. Payable to suppliers

101,325,250

0

178,315,500

3. Advances from customers

 

0

0

4. Taxes and other obligations to the State Budget

99,185,012

52,360,185

29,457,238

5. Payable to employees

 

0

0

6. Accrued expenses

 

0

796,839

7. Inter-company payable

 

0

0

8. Payable according to the progress of construction contracts

 

0

0

9. Other payable

-2,835,927

0

0

10. Provisions for short-term accounts payable

 

0

0

11. Bonus and welfare funds

 

 

 

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

 

 

 

9. Science and technology development fund

 

 

 

B- OWNER’S EQUITY

15,883,475,867

9,600,960,074

9,586,415,982

I. OWNER’S EQUITY

15,883,475,867

9,600,960,074

9,586,415,982

1. Capital

15,442,402,211

9,442,402,211

9,442,402,211

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

441,073,656

158,557,863

144,013,771

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

16,081,150,202

9,653,320,259

9,794,985,559

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

FY2009

1. Total Sales

118,036,384,119

117,830,339,619

10,805,277,961

2. Deduction item

 

0

0

3. Net revenue

118,036,384,119

117,830,339,619

10,805,277,961

4. Costs of goods sold

112,432,083,838

115,364,877,902

9,488,587,615

5. Gross profit

5,604,300,281

2,465,461,717

1,316,690,346

6. Financial income

7,876,038

52,569,565

4,360,649

7. Financial expenses

5,668,998

8,502,814

7,834,224

- In which: Loan interest expenses

 

0

0

8. Selling expenses

 

0

0

9. Administrative overheads

5,018,408,753

2,302,307,842

1,124,730,602

10. Net operating profit

588,098,568

207,220,626

188,486,169

11. Other income

0

5,257,570

237,142,857

12. Other expenses

360

1,067,712

291,129,364

13. Other profit /(loss)

-360

4,189,858

-53,986,507

14. Total accounting profit before tax

588,098,208

211,410,484

134,499,662

15. Current corporate income tax

147,024,552

52,852,621

33,624,916

16. Deferred corporate income tax

 

0

0

17. Interest from subsidiaries/related companies

 

0

0

18. Profit after tax

441,073,656

158,557,863

100,874,746

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

FY2009

Average Industry

Current liquidity ratio

19.43

33.68

17.43

1.29

Quick liquidity ratio

19.43

33.68

17.43

0.90

Inventory circle

-

-

73.94

16.60

Average receive period

3.04

1.80

33.99

61.82

Utilizing asset performance

7.34

12.21

1.10

2.31

Liability by total assets

1.23

0.54

2.13

66.08

Liability by owner's equity

1.24

0.55

2.18

252.07

Ebit / Total assets (ROA)

3.66

2.19

1.37

6.85

Ebit / Owner's equity (ROE)

3.70

2.20

1.40

25.35

Ebit / Total revenue (NPM)

0.50

0.18

1.24

4.35

Gross profit / Total revenue (GPM)

4.75

2.09

12.19

8.03

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

 

Above Average

Financial Situation

 

Above Average

Development trend

 

Stable

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

TTR

Sale Methods

 

To contracts

Public opinion

 

Good

 

 

INTERPRETATION ON THE SCORES

 

Founded in 2003, the subject was known as SON TUNG LTD. In Mar 2012, the subject changed type of business and name into SON TUNG TRADING AND PRODUCTION JOINT STOCK COMPANY. At that time, it also raised chartered capital up to VND 21.6 billion.

Head office of the subject is located at Group 1 - Quarter 1 - Hai Hoa Ward - Mong Cai District - Quang Ninh Province. It specializes in trading in frozen products. In detail, the subject imports frozen products from India and then the products are distributed in domestic and exported to China.

Regarding financial statements provided by the subject, its financial situation seems fair. The total assets in 2011 increased 67% over 2010 while the total sales increased slightly. The liquidity capacity is high. The liabilities by total assets and by owner’s equity are very low. Its capital structure is considered safe for creditors.

In general, the subject is a small company that has been developing step by step. With current position, it is reliable to meet small transactions.

 

 

 

APPENDIX

 

INDUSTRY DATA

 

Industry code

Growth speed by price compared with 1994 (%)

Total enterprises 2010

Total employees 2011

(Thous.pers.)

Annual average capital of enterprises 2010

(billion dongs)

2011

2010

Agriculture, Forestry and Fishing

4.00

2.78

8,887

24,362.9

95,227

Industry and Construction

5.53

7.70

95,217

10,718.9

3,641,376

Trade and Services

6.69

7.52

187,195

15,270.2

6,957,082

 

ECONOMIC INDICATORS

 

 

2011 

2010 

2009 

Population (Million person)

87.84

86.93

86.02

Gross Domestic Products (USD billion)

119

102.2

91

GDP Growth (%)

5.89

6.78

5.32

GDP Per Capita (USD/person/year)

1,300

1,160

1,080

Inflation (% Change in Composite CPI)

18.58

11.75

6.88

State Budget Deficit compared with GDP (%)

4.9

5.8

6.9

 

SERVICE TRADE PERFORMANCE

 

Billion USD 

2011 

2010 

2009 

Exports

96.3

72.2

57.1

Imports

105.8

84.8

69.9

Trade Balance

-9.5

-12.6

-12.8

Source: General Statistics Office


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.74

UK Pound

1

Rs.82.14

Euro

1

Rs.71.27

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.