MIRA INFORM REPORT

 

 

Report Date :

12.09.2013

 

IDENTIFICATION DETAILS

 

Name :

INTERNATIONAL PAINT SINGAPORE PTE., LTD

 

 

Registered Office :

Road 7, Bien Hoa I Industrial Park, An Binh Ward, Bien Hoa City, Dong Nai Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

11.07.1991

 

 

Com. Reg. No.:

47222000693

 

 

Legal Form :

Business co-operation contract

 

 

Line of Business :

Manufacturing and trading paint products.

 

 

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 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

 

Registered English Name

 

INTERNATIONAL PAINT SINGAPORE PTE., LTD

Registered Vietnamese Name

 

HOP DONG HOP TAC SAN XUAT SON CAO CAP GIUA CONG TY CO PHAN SON DONG NAI VA INTERNATIONAL PAINT SINGAPORE PTE ., LTD

Type of Business

 

Business co-operation contract

Year Established

 

1991

Business Registration No.

 

47222000693

Date of Registration

 

14 Oct 2008

The latest adjustment

 

16 Oct 2012

Place of Registration

 

Dong Nai Industrial Zones Authority

Investment capital

 

USD 1,411,681

Tax code

 

3600245663

Total Employees

 

70

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Investment Certificate No. 269/GP and revised versions

Changed to: 47222000693

14 Oct 2008

 

 

 

ADDRESSES

 

Registration Address/ Factory

Address

 

Road 7, Bien Hoa I Industrial Park, An Binh Ward, Bien Hoa City, Dong Nai Province, Vietnam

Telephone

 

(84-61) 383 6623

Fax

 

(84-61) 383 6059

 

Transaction office in Ho Chi Minh

Address

 

Etown Building, 2nd Floor, No. 364 Cong Hoa Street, Ward 13, Tan Binh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 381 20499 / 38120500 / 38120501 / 38120502

Fax

 

(84-8) 381 20498

 

Representative office in Ha Noi

Address

 

Mecanimex Building, No. 4 Vu Ngoc Phan Street, Lang Ha Ward, Dong Da District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3776 5172

Fax

 

(84-4) 3776 5171

 

Representative office in Hai Phong

Address

 

Thanh Dat Building, 3rd  Floor, No. 3 Le Thanh Tong street, May To Ward, Ngo Quyen District, Hai Phong City, Vietnam

Telephone

 

(84-31) 3552 704

Fax

 

(84-31) 3552 706

Email

 

nguyen.nam@internationalpaint.com

 

Representative office in Da Nang

Address

 

Thien Kim Building, Room 502, 05th  Floor, No. 114-116 Nguyen Van Linh Street, Vinh Trung Ward, Thanh Khe District, Da Nang City, Vietnam

Telephone

 

(84-511) 369 2424

Fax

 

(84-511) 369 2425

 

Representative office in Ba Ria-Vung Tau

Address

 

Kim Ngoc building, No. 46, Truong Van Bang street, Ward 7, Vung Tau City, Ba Ria-Vung Tau Province, Vietnam

Telephone

 

(84-64) 355 42 98

 

 

 

DIRECTORS

 

1. NAME

 

Ms. TO NGOC QUYNH LOAN

Position

 

Managing Director

Nationality

 

Vietnamese

 

2. NAME

 

Mr. TRAN ANH TUAN

Position

 

Factory Director

Nationality

 

Vietnamese

 

3. NAME

 

Ms. LU THANH NGOC

Position

 

Chief Financial Officer (CFO)

Nationality

 

Vietnamese

Qualification

 

Bachelor of Economics

 

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is specialized in manufacturing and trading paint products.

Following are subject’s registered business activities:

Manufacture of paints, varnishes and similar coatings, printing ink and mastics

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Types of products

 

Materials

Market

 

Germany, United Kingdom, and some agents in Asia (Singapore, China).

 

EXPORT:

Types of products

 

The subject provides paint for many foreign vessels that berth in Vietnamese Ports. It also provides coatings for offshore infrastructure

 

 

 

BANKERS

 

HSBC BANK (VIET NAM) LTD

Address

 

Metropolitan Building, No. 235 Dong Khoi Street, Ben Nghe Ward, 1 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3829 2288

Fax

 

(84-8) 3823 0530

 

 

 

SHAREHOLDERS

 

1. NAME

 

DONG NAI PAINT CORPORATION

Business Registration

 

3600451024

Date of Registration

 

14 Sep 2010

Place of Registration

 

Dong Nai Department of Planning and Investment

Registered Capital

 

VND 15,182,180,000

Tax code

 

3600451024

Address

 

Road 7 Bien Hoa 1 Industrial Zone, An Binh Ward, Bien Hoa City, Dong Nai Province, Vietnam

Tel

 

(84-61) 3836112 / 3832724 / 3931355

Fax

 

(84-61) 3836091

Email

 

visitsdn@hcm.vnn.vn 

Website

 

www.dongnaipaint.vn 

Value of shares

 

USD 293,981

 

2. NAME

 

INTERNATIONAL PAINT SINGAPORE PTE., LTD (owned by AKZO NOBEL)

Address

 

3 Neythal Road – Jurong Town , Singapore 628570

Tel

 

6261 5033

Fax

 

6264 4612

Website

 

www.internationalpaint.com 

Value of shares

 

USD 1,117,700

 

 

 

 

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: Thousand VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

176,464,481

141,446,961

I. Cash and cash equivalents

51,223,487

46,352,901

1. Cash

51,223,487

46,352,901

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

74,315,012

69,202,630

1. Receivable from customers

73,023,699

39,676,856

2. Prepayments to suppliers

530,760

0

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

2,498,584

35,076,533

6. Provisions for bad debts

-1,738,031

-5,550,759

IV. Inventories

49,662,059

24,808,153

1. Inventories

51,102,969

25,936,728

2. Provisions for devaluation of inventories

-1,440,910

-1,128,575

V. Other Current Assets

1,263,923

1,083,277

1. Short-term prepaid expenses

716,103

661,742

2. VAT to be deducted

0

0

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

547,820

421,535

B. LONG-TERM ASSETS

6,113,128

5,072,150

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

3,773,459

2,480,697

1. Tangible assets

3,773,459

2,480,697

- Historical costs

12,730,107

11,210,674

- Accumulated depreciation

-8,956,648

-8,729,977

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

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

2,339,669

2,591,453

1. Long-term prepaid expenses

0

0

2. Deferred income tax assets

2,339,669

2,591,453

3. Other long-term assets

0

0

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

182,577,609

146,519,111

 

LIABILITIES

A- LIABILITIES

71,696,311

38,452,019

I. Current liabilities

69,485,096

36,564,136

1. Short-term debts and loans

0

0

2. Payable to suppliers

50,871,239

20,382,162

3. Advances from customers

475,121

22,008

4. Taxes and other obligations to the State Budget

4,989,556

6,519,712

5. Payable to employees

0

0

6. Accrued expenses

11,053,746

7,694,407

7. Inter-company payable

0

0

8. Payable according to the progress of construction contracts

0

0

9. Other payable

2,095,434

1,945,847

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

 

 

II. Long-Term Liabilities

2,211,215

1,887,883

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

2,211,215

1,887,883

7. Provisions for long-term accounts payable

0

0

8. Unearned Revenue

 

 

9. Science and technology development fund

 

 

B- OWNER’S EQUITY

110,881,298

108,067,092

I. OWNER’S EQUITY

110,881,298

108,067,092

1. Capital

0

0

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

110,881,298

108,067,092

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

182,577,609

146,519,111

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

278,476,794

198,796,894

2. Deduction item

543,422

1,866,331

3. Net revenue

277,933,372

196,930,563

4. Costs of goods sold

173,420,007

114,709,262

5. Gross profit

104,513,365

82,221,301

6. Financial income

6,991,547

6,964,750

7. Financial expenses

3,578,050

2,924,890

- In which: Loan interest expenses

 

 

8. Selling expenses

34,814,372

25,720,074

9. Administrative overheads

11,349,150

11,884,842

10. Net operating profit

61,763,340

48,656,245

11. Other income

0

0

12. Other expenses

0

0

13. Other profit /(loss)

0

0

14. Total accounting profit before tax

61,763,340

48,656,245

15. Current corporate income tax

16,697,350

9,294,084

16. Deferred corporate income tax

251,784

1,191,333

17. Interest from subsidiaries/related companies

 

0

18. Profit after tax

44,814,206

38,170,828

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

2.54

3.87

1.72

Quick liquidity ratio

1.82

3.19

1.06

Inventory circle

4.66

4.62

13.62

Average receive period

97.60

128.26

78.59

Utilizing asset performance

1.52

1.34

1.55

Liability by total assets

39.27

26.24

52.62

Liability by owner's equity

64.66

35.58

163.63

Ebit / Total assets (ROA)

33.83

33.21

13.16

Ebit / Owner's equity (ROE)

55.70

45.02

29.85

Ebit / Total revenue (NPM)

22.18

24.48

7.13

Gross profit / Total revenue (GPM)

37.53

41.36

19.87

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

 

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

 

Liquidity

 

Medium

 

Payment status

 

Prompt

 

Financial Situation

 

Above Average

 

Development trend

 

Stable

 

Litigation data

 

No Record

 

Bankruptcy

 

No Record

 

Payment Methods

 

Direct payment or through corresponding bank

 

Sale Methods

 

Wholesaler

 

 

 

 

 

INTERPRETATION ON THE SCORES

 

The subject has the original Investment Certificate No. 269/GP, dated 11th July 1991 between two partners: International Paint Singapore Pte., Ltd signed a Business Co-operation Contract with Dong Nai Paint Corporation. After times of adjustment, the subject has operated under the Investment Certificate No. 47222000693 with Investment capital USD 1,411,681.

The subject has registered head office and factory locate at Street 7 Bien Hoa I Industrial Park, An Binh Ward, Bien Hoa City, Dong Nai Province, Vietnam. This location is also the headquarter of Dong Nai Paint Corporation. Its transaction office locates at Etown Building, 2nd Floor, No. 364 Cong Hoa Street, Ward 13, Tan Binh District, Ho Chi Minh City, Vietnam. Besides, the subject has offices and technical service offices in Ho Chi Minh, Ha Noi, Hai Phong, Da Nang and Vung Tau.

The subject is specialized in manufacturing and trading paint products. The subject's paint products used in marine, industry, Fireproofing Coatings...  Since 1992, the subject has been manufacturing and supplying range of products in co-operation with Dong Nai Paint factory in Dong Nai province. Its factory covers a 4,264 square meter area. Its capacity is about 2,500,000 liters/year. Materials are imported from Singapore, China, Japan and Germany.

Besides key customers such as National Navy, Vietnam Marine Police and Bason Shipyard, some of clients which the subject has supplied products and services are PVECC, VIETGAS, SIEMENS, LILAMA, SEDCO FOREX, VIETGAS MHI JAPAN,….

Currently, its businesses activities are busy. Competitiveness of the subject is strong. It has recruited more to expand operation. According to the financial data, turnover and profit after tax increased year after year. Liquidity ratio was average. ROA, ROE was at acceptable level. Financial situation is above average. Business of subject is more effective than the same size company operating in the same field. .The subject has capacity to meet 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.63.90

UK Pound

1

Rs.100.47

Euro

1

Rs.84.65

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.