MIRA INFORM REPORT

Report Date :

23.03.2013

IDENTIFICATION DETAILS

Name :	HA THINH COMPANY LIMITED
Registered Office :	Dai Tri Hamlet Vinh Thinh commune, Vinh Tuong District, Vinh Phuc Province
Country :	Viet Nam
Financials (as on) :	31.12.2011
Date of Incorporation :	15.03.2002
Legal Form :	Limited liability company
Line of Business :	Spinning and weaving
No. of Employees :	Not Available

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 :	Slow
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 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Viet Nam	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

English Name	HA THINH COMPANY LIMITED
Vietnamese Name	CONG TY TNHH HA THINH
Short name	HA THINH CO., LTD
Type of Business	Limited liability company
Year Established	2002
Business Registration No.	1902000170
Date of Registration	15 Mar 2002
Place of Registration	Vinh Phuc Department of Planning and Investment
Chartered capital	VND 2,800,000,000
Status	Unlisted
Tax code	2500213151
Total Employees	N/A

ADDRESSES
Registered Address
Address	Dai Tri Hamlet Vinh Thinh commune, Vinh Tuong District, Vinh Phuc Province, Vietnam
Telephone	(84-211) 3781 209/ 3859206/ 3781290/ +84 913099073
Fax	N/A
Note: We can not contact with the subject through above phone numbers. We have made phone call to those numbers very many times, number (84-211) 3781290 has signal but unheard. The remaining ones are always in busy status.
Other
Address	Zone 2, Tu Trung Commune, Vinh Tuong District, Vinh Phuc Province, Vietnam

DIRECTORS
1. NAME	Mr. DANG VAN SAM
Position	Director
Date of Birth	03 Jul 1970
ID Number/Passport	131507990
ID Issue Date	30 Nov 1993
ID Issue Place	Vinh Phu Police Department
Resident	An Ha Hamlet Vinh Thinh commune, Vinh Tuong District, Vinh Phuc Province, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject registered on the following business:
- Spinning and weaving
- Production of garment clothes
- Distill oil

IMPORT & EXPORT ACTIVITIES

IMPORT: NA

EXPORT: NA

BANKERS
1. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE PHUC YEN BRANCH
Address	No.4 Tran Hung Dao str, Phuc Yen District, Vinh Phuc Province, Vietnam
Telephone	(84-211) 3868388

SHAREHOLDERS
1. NAME	Mr. DANG VAN SAM
Position	Director
Date of Birth	03 Jul 1970
ID Number/Passport	131507990
Issued on	30 Nov 1993
Issued Place	Vinh Phu Police Department
Resident	An Ha Hamlet, Vinh Thinh commune, Vinh Tuong District, Vinh Phuc Province, Vietnam
Nationality	Vietnamese
Percentage	96.43%
2. NAME	Mr. DANG VAN THAI
ID Number/Passport	130818497
Resident	An Ha Hamlet, Vinh Thinh Commune, Vinh Tuong District, Vinh Phuc Province, Vietnam
Nationality	Vietnamese
Home Phone	(84-211) 3787229
Percentage	3.57%
Note: We also can’t contact with Mr. Dang Van Thai via the above home phone number.

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011
Number of weeks	52
ASSETS
A – CURRENT ASSETS	10,075,000,000
I. Cash and cash equivalents	604,000,000
1. Cash	604,000,000
2. Cash equivalents	0
II. Short-term investments	0
1. Short-term investments	0
2. Provisions for devaluation of short-term investments	0
III. Accounts receivable	269,000,000
1. Receivable from customers	269,000,000
2. Prepayments to suppliers	0
3. Inter-company receivable	0
4. Receivable according to the progress of construction	0
5. Other receivable	0
6. Provisions for bad debts	0
IV. Inventories	9,202,000,000
1. Inventories	9,202,000,000
2. Provisions for devaluation of inventories	0
V. Other Current Assets	0
1. Short-term prepaid expenses	0
2. VAT to be deducted	0
3. Taxes and other accounts receivable from the State	0
4. Other current assets	0
B. LONG-TERM ASSETS	2,935,000,000
I. Long term accounts receivable	0
1. Long term account receivable from customers	0
2. Working capital in affiliates	0
3. Long-term inter-company receivable	0
4. Other long-term receivable	0
5. Provisions for bad debts from customers	0
II. Fixed assets	2,935,000,000
1. Tangible assets	2,935,000,000
- Historical costs	3,878,000,000
- Accumulated depreciation	-943,000,000
2. Financial leasehold assets	0
- Historical costs	0
- Accumulated depreciation	0
3. Intangible assets	0
- Initial costs	0
- Accumulated amortization	0
4. Construction-in-progress	0
III. Investment property	0
Historical costs	0
Accumulated depreciation	0
IV. Long-term investments	0
1. Investments in affiliates	0
2. Investments in business concerns and joint ventures	0
3. Other long-term investments	0
4. Provisions for devaluation of long-term investments	0
V. Other long-term assets	0
1. Long-term prepaid expenses	0
2. Deferred income tax assets	0
3. Other long-term assets	0
VI. Goodwill	0
1. Goodwill	0
TOTAL ASSETS	13,010,000,000
LIABILITIES
A- LIABILITIES	311,000,000
I. Current liabilities	311,000,000
1. Short-term debts and loans	0
2. Payable to suppliers	0
3. Advances from customers	0
4. Taxes and other obligations to the State Budget	311,000,000
5. Payable to employees	0
6. Accrued expenses	0
7. Inter-company payable	0
8. Payable according to the progress of construction contracts	0
9. Other payable	0
10. Provisions for short-term accounts payable	0
II. Long-Term Liabilities	0
1. Long-term accounts payable to suppliers	0
2. Long-term inter-company payable	0
3. Other long-term payable	0
4. Long-term debts and loans	0
5. Deferred income tax payable	0
6. Provisions for unemployment allowances	0
7. Provisions for long-term accounts payable	0
8. Unearned Revenue	0
9. Science and technology development fund	0
B- OWNER’S EQUITY	12,699,000,000
I. OWNER’S EQUITY	12,699,000,000
1. Capital	2,800,000,000
2. Share premiums	0
3. Other sources of capital	8,485,000,000
4. Treasury stocks	0
5. Differences on asset revaluation	0
6. Foreign exchange differences	0
7. Business promotion fund	0
8. Financial reserved fund	0
9. Other funds	0
10. Retained earnings	1,414,000,000
11. Construction investment fund	0
12. Business arrangement supporting fund	0
II. Other sources and funds	0
1. Bonus and welfare funds	0
2. Sources of expenditure	0
3. Fund to form fixed assets	0
MINORITY’S INTEREST	0
TOTAL LIABILITIES AND OWNER’S EQUITY	13,010,000,000

PROFIT & LOSS STATEMENT
Description	FY2011
1. Total Sales	49,478,000,000
2. Deduction item	0
3. Net revenue	49,478,000,000
4. Costs of goods sold	45,390,000,000
5. Gross profit	4,088,000,000
6. Financial income	0
7. Financial expenses	0
- In which: Loan interest expenses	-
8. Selling expenses	0
9. Administrative overheads	2,203,000,000
10. Net operating profit	1,885,000,000
11. Other income	0
12. Other expenses	0
13. Other profit /(loss)	0
14. Total accounting profit before tax	1,885,000,000
15. Current corporate income tax	471,000,000
16. Deferred corporate income tax	0
17. Interest from subsidiaries/related companies
18. Profit after tax	1,414,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	Average Industry
Current liquidity ratio	32.40	1.13
Quick liquidity ratio	2.81	0.62
Inventory circle	4.93	5.92
Average receive period	1.98	55.47
Utilizing asset performance	3.80	1.39
Liability by total assets	2.39	70.41
Liability by owner's equity	2.45	301.78
Ebit / Total assets (ROA)	14.49	9.72
Ebit / Owner's equity (ROE)	14.84	34.85
Ebit / Total revenue (NPM)	3.81	7.85
Gross profit / Total revenue (GPM)	8.26	16.74
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	N/A
Liquidity	Medium
Payment status	Above Average
Financial Situation	Normal
Development trend	N/A
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	N/A
Sale Methods	N/A

INTERPRETATION

The subject was established in 2002 as a limited liability company under the business registration No. 1902000170, granted by Vinh Phuc Department of Planning and Investment with chartered capital of VND 2.8 billion. From that to now, its license has not change yet.

The subject registered operation in field of production of garment clothes; spinning and weaving and distillation of oil. Its head office is located at Dai Tri Hamlet - Vinh Thinh Commune - Vinh Tuong District - Vinh Phuc Province and it has another address at Zone 2 - Tu Trung Commune - Vinh Tuong District - Vinh Phuc Province. By different ways, we collected some contact numbers including both fixed number and mobile number. However, we can’t still contact with the subject through them.  

Financially, in 2011, the subject's liquidity ratios were very high because the subject's current liabilities were very small compared with current assets. However, in current assets, inventories were too big, it occupied to 91.33%. Thus, although the high liquidity ratios, they was not considered as good. The subject's average receive period was too short compared with the average industry due to the low accounts receivable. Cause of this was the subject applied the tight credit policies for its customers, and also hence, the subject's inventories were stagnated. Contrary to liquidity ratios, debt rate was very low (only 2.39%), proves that, the subject’s capital structure was very safe for creditors.      

In general, the subject still is existent in legal form. It seems still operation. However, we have tried best to contact with the subject but unreachable. Thus, our opinion, caution is needed for all transactions with the subject.

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)
	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.54.33
UK Pound	1	Rs.82.55
Euro	1	Rs.70.10

INFORMATION DETAILS

Report Prepared by :

PDT

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.