MIRA INFORM REPORT

           

 

 

Report Date :

16.05.2013

 

IDENTIFICATION DETAILS

 

Name :

HA AN CO., LTD

 

 

Registered Office :

Group 3, Quarter 5, Tan Uyen Town, Tan Uyen District, Binh Duong Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

2004

 

 

Com. Reg. No.:

4602001254

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

The subject is specializing in manufacturing foodstuff for cattle (bran for pigs and fish).

 

 

No. of Employees :

70

 

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

 

English Name

 

HA AN CO., LTD

Vietnamese Name

 

CONG TY TNHH SAN XUAT & THUONG MAI HA AN

Short name

 

HA AN CO.,LTD

Type of Business

 

Limited liability company

Year Established

 

2004

Business Registration No.

 

4602001254

Date of Registration

 

18 Oct 2004

Place of Registration

 

Business registration office - Planning and Investment Department in Binh Duong province

Chartered capital

 

VND 2,000,000,000

Tax code

 

3700599666

Total Employees

 

70

 Note: The correct name is as above.

 

 

ADDRESSES

 

Head Office

Address

 

Group 3, Quarter 5, Tan Uyen Town, Tan Uyen District, Binh Duong Province, Vietnam

Telephone

 

(84-650) 3640 792

Fax

 

(84-650) 3641 254

 

 

DIRECTORS

 

1. NAME

 

Mr. TUONG MINH HOA

Position

 

Chairman – Legal representative

Date of Birth

 

27 May 1957

ID Number/Passport

 

023858343

ID Issue Date

 

12 Dec 2000

ID Issue Place

 

Police station of Hochiminh City

Nationality

 

Vietnamese

Qualification

 

Managing

 

2. NAME

 

Ms. NGUYEN THI THANH HUE

Position

 

Chief Accountant

Current resident

 

Binh Duong Province, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 973 453 608

Email

 

thanh_hue2012@yahoo.com

Qualification

 

Bachelor

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is specializing in manufacturing foodstuff for cattle (bran for pigs and fish).

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Market

 

India, Argentina, Chile

 

EXPORT:

·         Market

 

Cambodia, Korea, Japan

 

 

BANKERS

 

VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK BINH DUONG BRANCH

Address

 

No.244 Binh Duong Avenue, Phu Hoa Commune, Thu Dau Mot City, Binh Duong Province, Vietnam

Telephone

 

(84-650) 387 2693 / 387 2468 / 387 2469

Fax

 

(84-650) 387 2460

 

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. TUONG MINH HOA

Position

 

Chairman

Date of Birth

 

27 May 1957

ID Number/Passport

 

023858343

Issued on

 

12 Dec 2000

Issued Place

 

Police station of Hochiminh City

Nationality

 

Vietnamese

Value of shares

 

VND 1,500,000,000

Percentage

 

75%

 

2. NAME

 

Mr. TRINH PHUONG LAN

Resident

 

No.36/253D Quang Trung Street, Ward 12, Go Vap District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 500,000,000

Percentage

 

25%

 

 

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

33,030,000,000

26,687,000,000

20,555,000,000

I. Cash and cash equivalents

2,106,000,000

1,601,000,000

1,288,000,000

1. Cash

2,106,000,000

1,601,000,000

1,288,000,000

2. Cash equivalents

0

0

0

II. Short-term investments

0

0

0

1. Short-term investments

0

0

0

2. Provisions for devaluation of short-term investments

0

0

0

III. Accounts receivable

10,746,000,000

11,932,000,000

11,916,000,000

1. Receivable from customers

9,856,000,000

8,211,000,000

6,115,000,000

2. Prepayments to suppliers

890,000,000

3,721,000,000

3,489,000,000

3. Inter-company receivable

0

0

0

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

0

0

2,312,000,000

6. Provisions for bad debts

0

0

0

IV. Inventories

19,834,000,000

13,154,000,000

7,351,000,000

1. Inventories

19,834,000,000

13,154,000,000

7,351,000,000

2. Provisions for devaluation of inventories

0

0

0

V. Other Current Assets

344,000,000

0

0

1. Short-term prepaid expenses

0

0

0

2. VAT to be deducted

344,000,000

0

0

3. Taxes and other accounts receivable from the State

0

0

0

4. Other current assets

0

0

0

B. LONG-TERM ASSETS

10,115,000,000

12,271,000,000

15,169,000,000

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

10,115,000,000

12,271,000,000

15,169,000,000

1. Tangible assets

10,115,000,000

12,271,000,000

14,354,000,000

- Historical costs

23,925,000,000

22,915,000,000

22,865,000,000

- Accumulated depreciation

-13,810,000,000

-10,644,000,000

-8,511,000,000

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

815,000,000

III. Investment property

0

0

0

Historical costs

0

0

0

Accumulated depreciation

0

0

0

IV. Long-term investments

0

0

0

1. Investments in affiliates

0

0

0

2. Investments in business concerns and joint ventures

0

0

0

3. Other long-term investments

0

0

0

4. Provisions for devaluation of long-term investments

0

0

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

 

 

 

1. Goodwill

 

 

 

TOTAL ASSETS

43,145,000,000

38,958,000,000

35,724,000,000

 

LIABILITIES

A- LIABILITIES

31,651,000,000

29,247,000,000

26,066,000,000

I. Current liabilities

21,019,000,000

14,315,000,000

8,716,000,000

1. Short-term debts and loans

8,669,000,000

6,812,000,000

5,863,000,000

2. Payable to suppliers

9,497,000,000

5,341,000,000

2,896,000,000

3. Advances from customers

0

0

0

4. Taxes and other obligations to the State Budget

-82,000,000

-93,000,000

0

5. Payable to employees

0

0

-43,000,000

6. Accrued expenses

0

0

0

7. Inter-company payable

0

0

0

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

2,935,000,000

2,255,000,000

0

10. Provisions for short-term accounts payable

0

0

0

11. Bonus and welfare funds

 

 

 

II. Long-Term Liabilities

10,632,000,000

14,932,000,000

17,350,000,000

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

10,632,000,000

14,932,000,000

17,350,000,000

5. Deferred income tax payable

0

0

0

6. Provisions for unemployment allowances

0

0

0

7. Provisions for long-term accounts payable

0

0

0

8. Unearned Revenue

 

 

 

9. Science and technology development fund

 

 

 

B- OWNER’S EQUITY

11,494,000,000

9,711,000,000

9,658,000,000

I. OWNER’S EQUITY

11,494,000,000

9,701,000,000

9,648,000,000

1. Capital

8,000,000,000

8,000,000,000

8,000,000,000

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

0

0

0

8. Financial reserved fund

0

0

0

9. Other funds

0

0

0

10. Retained earnings

3,494,000,000

1,701,000,000

1,648,000,000

11. Construction investment fund

0

0

0

12. Business arrangement supporting fund

 

 

 

II. Other sources and funds

0

10,000,000

10,000,000

1. Bonus and welfare funds (Elder form)

0

10,000,000

10,000,000

2. Sources of expenditure

0

0

0

3. Fund to form fixed assets

0

0

0

MINORITY’S INTEREST

 

 

 

TOTAL LIABILITIES AND OWNER’S EQUITY

43,145,000,000

38,958,000,000

35,724,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

FY2009

1. Total Sales

87,516,000,000

62,778,000,000

55,082,000,000

2. Deduction item

0

0

0

3. Net revenue

87,516,000,000

62,778,000,000

55,082,000,000

4. Costs of goods sold

78,415,000,000

56,249,000,000

49,353,000,000

5. Gross profit

9,101,000,000

6,529,000,000

5,729,000,000

6. Financial income

33,000,000

8,000,000

14,000,000

7. Financial expenses

2,420,000,000

1,931,000,000

1,582,000,000

- In which: Loan interest expenses

2,420,000,000

1,931,000,000

1,582,000,000

8. Selling expenses

0

0

0

9. Administrative overheads

3,220,000,000

2,907,000,000

2,512,000,000

10. Net operating profit

3,494,000,000

1,699,000,000

1,649,000,000

11. Other income

0

2,000,000

0

12. Other expenses

0

0

0

13. Other profit /(loss)

0

2,000,000

0

14. Total accounting profit before tax

3,494,000,000

1,701,000,000

1,649,000,000

15. Current corporate income tax

0

0

0

16. Deferred corporate income tax

0

0

0

17. Interest from subsidiaries/related companies

 

 

 

18. Profit after tax

3,494,000,000

1,701,000,000

1,649,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

FY2009

Average Industry

Current liquidity ratio

1.57

1.86

2.36

1.43

Quick liquidity ratio

0.63

0.95

1.51

0.56

Inventory circle

3.95

5.49

6.71

5.64

Average receive period

44.82

69.37

78.96

27.24

Utilizing asset performance

2.03

1.61

1.54

2.27

Liability by total assets

73.36

75.07

72.97

58.03

Liability by owner's equity

275.37

301.17

269.89

169.12

Ebit / Total assets (ROA)

13.71

9.32

9.04

16.77

Ebit / Owner's equity (ROE)

51.45

37.40

33.45

41.49

Ebit / Total revenue (NPM)

6.76

5.79

5.87

7.21

Gross profit / Total revenue (GPM)

10.40

10.40

10.40

12.54

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

 

 

INTERPRETATION ON THE SCORES

 

The subject – HA AN CO., LTD was established in 2004 under business registration no.4602001254 issued by Business registration office – Planning and Investment Department of Hochiminh City with chartered capital VND 2 billion.

The subject is specializing in manufacturing and trading foodstuff for cattle (bran for pigs and fish). The subject imports material to produce from India, Argentina and Chile market. Besides domestic market, its products are exported to Korea, Cambodia and Japan. Its main market is Western provinces.

Operation about 9 years, its market is also stable. The subject has traditional customers and good relationship with partners in industry.  Its current business activities are normal.

In overview, premises and facilities of the subject are fair. As reported financial data, its annual revenue and profit were increased regularly. Its liquidity ratios were higher than industry ratios. The subject has capacity to meet small and normal transactions.

 

 

 

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

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.78

UK Pound

1

Rs.83.38

Euro

1

Rs.70.72

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.