MIRA INFORM REPORT

 

 

Report Date :

07.05.2013

 

IDENTIFICATION DETAILS

 

Name :

NEW DRAGON GRANITE LIMITED LIABILITY COMPANY 

 

 

Registered Office :

No. 147 Tang Bat Ho Street - Le Loi Ward, Qui Nhon City, Binh Dinh Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishments:

2000

 

 

Com. Reg. No.:

4100355437

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

The subject registers and focuses on manufacturing and processing granite for construction

 

 

No. of Employees :

200

 

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 :

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

Registered English Name

 

NEW DRAGON GRANITE LIMITED LIABILITY COMPANY

Registered Vietnamese Name

 

CONG TY TNHH TAN LONG GRANITE

Trade name

 

TAN LONG GRANITE COMPANY LIMITED

Registered Short name

 

NEW DRAGON GRANITE CO., LTD

Type of Business

 

Limited liability company

Year Established

 

2000

Business Registration No.

 

4100355437

Date of latest adjustment (7th)

 

03 Oct 2012

Place of Registration

 

Business Registration Office – Planning And Investment Department of Binh Dinh Province

Chartered capital

 

VND 45,000,000,000

Tax code

 

4100355437

Total Employees

 

200

Size

 

Medium

 

Historical Identification & Legal form

List

Changed Items

Date of changes

1

Subject has got former Chartered capital: VND 25,000,000,000

Changed to: VND 45,000,000,000

03 Oct 2012

2

Subject has got former Chartered capital: 3502000012 issued on 17 Mar 2000 Changed to: 4100355437

03 Oct 2012

3

Subject has got former Chartered capital: VND 3,000,000,000

Changed to: VND 25,000,000,000

-

 

 

 

CompaNy ADDRESSES

 

Head Office

Address

 

No. 147 Tang Bat Ho Street - Le Loi Ward, Qui Nhon City, Binh Dinh Province, Vietnam

Telephone

 

(84-56) 3821 317

Fax

 

(84-56) 3741 449

Email

 

tanlonggranite@vnn.vn 

Website

 

tanlonggranite.com.vn    

 

Factory Address

Address

 

Lot A10, 11, 12 Phu Tai Industrial Zone, Qui Nhon City, Binh Dinh Province, Vietnam

Telephone

 

84-56 3741389

Fax

 

84-56 3741449

 

Branch in Ho Chi Minh

Address

 

02 Quarter 4, Trung My Tay Ward, District 12, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3718 5286

Fax

 

(84-8) 3718 5286

 

 

DIRECTORS

 

1. NAME

 

Mr. TRAN HOC QUAN

Position

 

Director

Date of Birth

 

08 Jul 1971

ID Number/Passport

 

211318701

ID Issue Date

 

23 May 2006

ID Issue Place

 

Police station of Binh Dinh Province

Resident

 

No. 147 Tang Bat Ho Str - Le Loi Ward, Qui Nhon City, Binh Dinh Province, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Ms. DANG THI PHUONG MAI

Position

 

Vice Director

ID Number/Passport

 

211354159

ID Issue Place

 

Police station of Quy Nhon City

Current resident

 

147 Tang Bat Ho Street, Le Loi Ward, Qui Nhon City, Binh Dinh Province, Vietnam

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject registers and focuses on manufacturing and processing granite for construction.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Market

 

Norway, India, China, Thailand, Brazil

 

EXPORT:

·         Market

 

Taiwan, United State, Malaysia, Singapore, Spain, Italia

 

 

 

BANKERS

 

JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM PHU TAI BRANCH

Address

 

No 1A Hight Way Tran Quang Dieu Ward, Binh Dinh Province, Vietnam

Telephone

 

(84-56) 3741 732

Fax

 

(84-56) 3741 007

 

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. TRAN HOC QUAN

Position

 

Director

Date of Birth

 

08 Jul 1971

ID Number/Passport

 

211318701

Issued on

 

23 May 2006

Issued Place

 

Police station of Quy Nhon City

Resident

 

No. 147 Tang Bat Ho Str - Le Loi Ward, Qui Nhon City, Binh Dinh Province, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 33,750,000,000

Percentage

 

75%

 

2. NAME

 

Ms. DANG THI PHUONG MAI

Position

 

Vice Director

ID Number/Passport

 

211354159

Issued Place

 

Police station of Quy Nhon City

Current Resident

 

147 Tang Bat Ho Street, Le Loi Ward, Qui Nhon City, Binh Dinh Province, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 11,250,000,000

Percentage

 

25%

 

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

Audit status

Unaudited

Unaudited

ASSETS

A – CURRENT ASSETS

58,676,000,000

57,870,000,000

I. Cash and cash equivalents

622,000,000

994,000,000

1. Cash

622,000,000

994,000,000

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

3,660,000,000

4,560,000,000

1. Receivable from customers

3,716,000,000

4,018,000,000

2. Prepayments to suppliers

0

0

3. Inter-company receivable

-107,000,000

492,000,000

4. Receivable according to the progress of construction

0

0

5. Other receivable

51,000,000

50,000,000

6. Provisions for bad debts

0

0

IV. Inventories

53,965,000,000

52,177,000,000

1. Inventories

53,965,000,000

52,177,000,000

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

429,000,000

139,000,000

1. Short-term prepaid expenses

27,000,000

15,000,000

2. VAT to be deducted

0

0

3. Taxes and other accounts receivable from the State

402,000,000

124,000,000

4. Other current assets

0

0

B. LONG-TERM ASSETS

41,907,000,000

32,271,000,000

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

26,934,000,000

29,858,000,000

1. Tangible assets

25,531,000,000

28,455,000,000

- Historical costs

49,065,000,000

47,891,000,000

- Accumulated depreciation

-23,534,000,000

-19,436,000,000

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

1,403,000,000

1,403,000,000

III. Investment property

0

0

Historical costs

0

0

Accumulated depreciation

0

0

IV. Long-term investments

8,140,000,000

0

1. Investments in affiliates

8,140,000,000

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

6,833,000,000

2,413,000,000

1. Long-term prepaid expenses

6,789,000,000

2,401,000,000

2. Deferred income tax assets

0

0

3. Other long-term assets

44,000,000

12,000,000

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

100,583,000,000

90,141,000,000

 

LIABILITIES

A- LIABILITIES

63,717,000,000

61,533,000,000

I. Current liabilities

60,060,000,000

55,148,000,000

1. Short-term debts and loans

35,620,000,000

29,620,000,000

2. Payable to suppliers

16,098,000,000

19,798,000,000

3. Advances from customers

0

0

4. Taxes and other obligations to the State Budget

-12,000,000

366,000,000

5. Payable to employees

356,000,000

331,000,000

6. Accrued expenses

8,051,000,000

0

7. Inter-company payable

-60,000,000

493,000,000

8. Payable according to the progress of construction contracts

0

0

9. Other payable

0

4,523,000,000

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

7,000,000

17,000,000

II. Long-Term Liabilities

3,657,000,000

6,385,000,000

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

3,657,000,000

6,385,000,000

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 Sale

0

 

9. Science and technology development fund

 

 

B- OWNER’S EQUITY

36,866,000,000

28,608,000,000

I. OWNER’S EQUITY

36,866,000,000

28,608,000,000

1. Capital

36,950,000,000

28,850,000,000

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

-151,000,000

-151,000,000

7. Business promotion fund

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

-177,000,000

-334,000,000

11. Construction investment fund

244,000,000

243,000,000

12. Business arrangement supporting fund

0

 

II. Other sources and funds

 

0

1. Bonus and welfare funds (Elder form)

 

0

2. Sources of expenditure

 

0

3. Fund to form fixed assets

0

0

MINORITY’S INTEREST

0

0

TOTAL LIABILITIES AND OWNER’S EQUITY

100,583,000,000

90,141,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

85,435,000,000

51,120,000,000

2. Deduction item

0

22,000,000

3. Net sale

85,435,000,000

51,098,000,000

4. Costs of goods sold

73,666,000,000

43,504,000,000

5. Gross profit

11,769,000,000

7,594,000,000

6. Financial income

7,000,000

4,000,000

7. Financial expenses

5,426,000,000

3,054,000,000

- In which: Loan interest expenses

5,426,000,000

3,054,000,000

8. Selling expenses

2,795,000,000

1,848,000,000

9. Administrative overheads

3,490,000,000

2,175,000,000

10. Net operating profit

65,000,000

521,000,000

11. Other income

347,000,000

30,000,000

12. Other expenses

205,000,000

17,000,000

13. Other profit /(loss)

142,000,000

13,000,000

14. Total accounting profit before tax

207,000,000

534,000,000

15. Current corporate income tax

52,000,000

134,000,000

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

155,000,000

400,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

0.98

1.05

1.09

Quick liquidity ratio

0.08

0.10

0.73

Inventory circle

1.39

0.83

13.90

Average receive period

15.64

32.57

77.34

Utilizing asset performance

0.85

0.57

1.30

Liability by total assets

63.35

68.26

74.93

Liability by owner's equity

172.83

215.09

361.25

Ebit / Total assets (ROA)

5.60

3.98

4.03

Ebit / Owner's equity (ROE)

15.28

12.54

16.12

Ebit / Total sale (NPM)

6.59

7.02

5.16

Gross profit / Total sale (GPM)

13.78

14.86

9.13

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

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Low

Payment status

 

Normal

Financial Situation

 

Average

Development trend

 

Even

Litigation data

 

No

Bankruptcy

 

No

Payment Methods

 

TT, L/C

Sale Methods

 

Distributor

 

 

 

 


INTERPRETATION ON THE SCORES

 

The subject - NEW DRAGON GRANITE LIMITED LIABILITY COMPANY was established in 2000 under the business registration No. 3502000012 with its charted capital of VND 3 billion. The subject has increased capital by VND 25 billion on December 26th, 2008. In 2012, the subject changed the business registration to No. 4100355437 and increased capital to VND 45 billion.

The subject focuses on manufacturing and processing granite products for construction. The subject imports materials from India, Brazil, Norway, China and Thailand. Its products are exported to Taiwan, Malaysia, Singapore, Italy… It distributes its products for resident in south province. The current position in the industry of the subject is average. The market share of the subject is average.

It has a factory specialized in quarrying stones for construction and fine arts article making. The factory is located at Phu Tai Industrial Zone, where 12 kilometer far from west of Quy Nhon Seaport. The production capacity of the subject is about 50,000 square meters per year. Besides, the subject has a branch in Hochiminh City. The head office of the subject is also private house of Mr. TRAN HOC QUAN - Director of the subject, this address is using for contact with customers and state organization in charge. The management capacity of the subject is above average.

In general, the operation and finance of the subject regard average. The business of the subject is normal. The subject needs to build its strategy to promote business more. The market share of the subject is average. In our opinion, the subject has capacity to meet small – medium 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.53.95

UK Pound

1

Rs.84.03

Euro

1

Rs.70.72

 

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.