MIRA INFORM REPORT

 

 

Report Date :

06.12.2014

 

IDENTIFICATION DETAILS

 

Name :

DONG PHAT JSC

 

 

Registered Office :

Quoc Oai Town, Quoc Oai Dist, Hanoi

 

 

Country :

Vietnam

 

 

Financials (as on) :

December, 2013

 

 

Date of Incorporation :

15.09.2011

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturer of Textiles & Raw Material

 

 

No of Employees :

350

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Vietnam

A2

A2

 

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 20% in 2013, while industry's share increased from 36% to more than 42% in the same period. State-owned enterprises account for about 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 2013 growing at 5%, the slowest rate of growth since 1999. In 2013, however, exports increased by more than 12%, 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 relatively stable in 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 has been made. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses.

 

Source : CIA

 

 

REGISTERED NAME & COMPANY SUMMARY

 

Company Details

Organization Name

:

DONG PHAT JSC (1)

Address

:

Quoc Oai Town, Quoc Oai Dist, Hanoi

Country

:

Vietnam

Phone (S)

:

[+84] 4-22604113

Facsimile

:

[+84] 4-33942968

Email

:

dongphatspinning@gmail.com

Primary Business Activity

:

Manufacturer

Key Industry

:

Textiles & Raw Material

 

Key Facts

 

Registered Legal Address

:

Quoc Oai Town, Quoc Oai Dist, Hanoi

Operational Address

:

Quoc Oai Town, Quoc Oai Dist, Hanoi

Issuing Authority

:

Dept. of Planning & Investment - Hanoi

License Number

:

0500560063

License Status

:

License exists - Normal.

Legal Form - Category

:

Joint Stock Company

Legal Form

:

Joint Stock Company

Legal Form - Abbreviation

:

JSC

Operational Status of Business

:

Normal

Date of Registration

:

15 Sep, 2011

Employees

:

350

Capital

:

US$ 3,656,568

Note

:

(1) Legal status of the English corporate name

The English name of the Subject Business Entity (SBE) is a randomly selected translation / transliteration made by the owners of the SBE. It is not a registered English corporate name, but simply a translation / transliteration of the local language name.

 

Report Details

 

 

Country

:

Vietnam

Business Entity Name

:

DONG PHAT JSC

Primary Business Activity

:

Manufacturer

Primary Industry

:

Textiles & Raw Material

Office Contact Details

Operating Address

:

Quoc Oai Town, Quoc Oai Dist, Hanoi

Tel

:

[+84] 4-22604113

 

:

[+84] 4-22604114

Fax

:

[+84] 4-33942968

Email

:

dongphatspinning@gmail.com

Factory Contact Details

Address

:

Quoc Oai Industrial Zone Km 16 Dai Lo Thang Long, Quoc Oai Dist, Hanoi

Tax / VAT Details

Tax Issuing Authority

:

Ministry of Finance

Local Name Used

:

Gia Trj Gia Tang (Value Added Tax)

Acronym

:

GTGT / VAT

GTGT / VAT Number

:

0500560063

 

 

DIRECTORS/MANAGEMENT

 

Key Person

Legal Title

:

Managing Director

Name

:

Mr. Pham Ngoc Phan

Nationality

:

Vietnamese

 

 

COMPANY DIRECTORS

 

1

 

 

Personal Unique Identifier

:

MI03800410

Name

:

Mr. Pham Ngoc Phan

Date of Birth

:

1958

 

 

NEGATIVE INFORMATION

 

 

REPUTATION

 

Reference checking for the purpose of establishing DONG PHAT JSC's reputation within the respective industry failed to reveal any adverse information.

 

 

NEGA-SCAN - ADVERSE DATA MONITORING

 

 

DISHONORED CHECKS

 

No Record Found

 

 

DEBT

 

No Record Found

 

 

CIVIL LITIGATION

 

No Record Found

 

 

PERFORMANCE DEFAULTS

 

No Record Found

 

 

ADVERSE LOCAL MEDIA COVERAGE / ADVERSE FILING HISTORY

 

No Record Found

 

 

 

SHARE & SHARE CAPITAL INFORMATION

 

 

CAPITAL (Currency: VND - Vietnam Dong)

 

Authorized Capital

:

₫ 77,000,000,000

 

Date

Authorized Capital - History

18 May, 2007

66,000,000,000

15 Sep, 2011

77,000,000,000

 

 

SHAREHOLDERS

 

Total number of shareholders

:

5

Total number of shares

:

n/a

 

Currency

:

VND - Vietnam Dong

 

No.

Shareholders

Country

Shares

Number

Amount (VND)

%

1

HA NAM TEXTILE CO

Vietnam

n/a

n/a

42.00

2

Mr. Truong Ho Long

Vietnam

n/a

n/a

30.00

3

Mr. Pham Ngoc Phan

Vietnam

n/a

n/a

24.00

4

Mr. Do Thanh Binh

Vietnam

n/a

n/a

2.00

5

Mr. Nguyen Xuan Truong

Vietnam

n/a

n/a

2.00

Total

n/a

n/a

100.00

 

 

Based on corporate statutory laws / regulations in Vietnam, there is no requirement for public disclosure of Shareholders. In this case, the Shareholders information was supplied by the Subject Business Entity.
However in the absence of data normally obtained from local Statutory Authorities, it is not possible to verify the accuracy of data supplied and hence is provided as reference ONLY.

 

 

PAYMENT INFORMATION

 

 

PAYMENT TERMS

 

Selling

 

Type

Terms

Local

Cash on delivery (COD)

Credit - Unsecured 30~60 days

Export

Letter of Credit (At-sight)

Telegraphic Transfer (T/T) - Received at time of transaction

 

Purchasing

 

Type

Terms

Local

Cash on delivery (COD)

Credit - Unsecured 30~60 days

Import

Letter of Credit (At-sight)

Telegraphic Transfer (T/T) - Executed at time of transaction

 

 

GROUP STRUCTURE & AFFILIATED COMPANIES

Na

 

 

FINANCIAL INFORMATION

 

Financials - Summary  (Currency: USD - US Dollar)

Year

Sales

Assets

Net Income

2012 Annual  

13,271,285

13,581,110

-601,546

2013 Annual  

67,058,942

47,848,572

3,377,736

 

Sales Trend – Analysis

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

-

-

-

-

-

-

-

-

-

 

 

FINANCIAL STATEMENT - DETAILED

 

Balance Sheet

 

Currency

:

VND

Denomination

:

1

Financial Year Ending

:

December

 

Financial Highlights

2012 Annual

2013 Annual

Current Assets(*)

69,501,000,000

608,307,000,000

Non Current Assets(*)

213,321,000,000

400,728,000,000

Non Current Liabilities(*)

134,057,000,000

-

Other long term assets 

Total Assets(*)

282,822,000,000

1,009,035,000,000

Total Liabilities(*)

229,350,000,000

192,026,000,000

Current Liabilities(*)

95,293,000,000

192,026,000,000

Long term liabilities 

Shareholders Funds(*)

53,472,000,000

817,009,000,000

 

Current assets & short term investments

69,501,000,000

608,307,000,000

Cash & cash equivalents

2,727,000,000

5,947,000,000

Cash

2,727,000,000

5,947,000,000

Short term investments

-

177,655,000,000

Short term securities investments

-

177,655,000,000

Accounts receivable

33,689,000,000

241,158,000,000

Accounts receivable trade

27,174,000,000

181,685,000,000

Trade prepayment

4,433,000,000

58,768,000,000

Others receivables

2,082,000,000

705,000,000

i.Inventories

30,292,000,000

147,651,000,000

ii. Inventories

30,292,000,000

147,651,000,000

i. Other short term asset

2,793,000,000

35,896,000,000

Prepaid expenses

16,000,000

588,000,000

VAT deductible

829,000,000

7,927,000,000

Other tax receivables

1,188,000,000

-

ii. Other short term asset

760,000,000

27,381,000,000

Long term assets

213,321,000,000

400,728,000,000

Fixed assets

199,094,000,000

331,296,000,000

Tangible fixed assets

155,893,000,000

215,047,000,000

i. Cost

177,768,000,000

239,305,000,000

i. Accumulated depreciation

21,875,000,000

24,258,000,000

Intangible fixed assets

15,000,000

116,137,000,000

ii. Cost

24,000,000

117,751,000,000

ii. Accumulated depreciation

9,000,000

1,614,000,000

Construction in progress

43,186,000,000

112,000,000

Long term investments

9,000,000,000

67,529,000,000

Other long term investments

9,000,000,000

67,529,000,000

Other long term assets

5,227,000,000

1,903,000,000

Long term prepayments

5,227,000,000

1,903,000,000

Total assets

282,822,000,000

1,009,035,000,000

Liabilities

229,350,000,000

192,026,000,000

Current liabilities

95,293,000,000

192,026,000,000

Short term borrowings

43,674,000,000

-

Accounts payables-trade

46,460,000,000

180,816,000,000

Advances from customers

2,808,000,000

62,000,000

Payable to employees

1,917,000,000

2,520,000,000

Accrued expenses payable

-

8,628,000,000

Other payables

434,000,000

-

Long term liabilities

134,057,000,000

-

Long term other payables

456,000,000

-

Long term borrowings

133,601,000,000

-

i. Owner's equity

53,472,000,000

817,009,000,000

ii. Owner's equity

53,472,000,000

817,009,000,000

Business capital

77,925,000,000

745,780,000,000

Retained earnings

(24,453,000,000)

71,229,000,000

Total resources

282,822,000,000

1,009,035,000,000

 

Note: (*)

 

Financial Highlights

 

 

Income Statement

 

Currency

:

VND

Denomination

:

1

Financial Year Ending

:

December

 

Financial Highlights

2012 Annual

2013 Annual

Turnover(*)

276,370,000,000

1,414,145,000,000

Profit (Loss) Before Tax(*)

(12,527,000,000)

71,230,000,000

Profit After Tax attributable to Shareholders(*)

(12,527,000,000)

71,230,000,000

 

Gross sales

276,370,000,000

1,414,145,000,000

Less deductions

-

17,346,000,000

Net income

276,370,000,000

1,396,799,000,000

Cost of goods sold

261,854,000,000

1,230,188,000,000

Gross margin

14,516,000,000

166,611,000,000

Income from financial activities

133,000,000

22,291,000,000

Expenses from financial activities

19,284,000,000

7,620,000,000

In which: Interest expenses

19,204,000,000

377,000,000

Selling expenses

3,646,000,000

52,800,000,000

General & administration expenses

4,315,000,000

66,036,000,000

Net income from operating activities

(12,596,000,000)

62,446,000,000

Extraordinary income

75,000,000

8,784,000,000

Extraordinary expenses

6,000,000

-

Extraordinary gains

69,000,000

8,784,000,000

Net profit before tax

(12,527,000,000)

71,230,000,000

Net profit after tax

(12,527,000,000)

71,230,000,000

 

Note: (*)

 

Financial Highlights

 

 

Financial Ratios

 

Financial Highlights

2012 Annual

2013 Annual

Growth % 

Year-on-Year Growth

-

411.69

Profitability 

Profit Margin (%)

(4.53)

5.04

Return on Equity (%)

(23.43)

8.72

Return on Assets (%)

(4.43)

7.06

Leverage 

Total Debt Equity (Times)

4.29

0.24

Current Debt Equity (Times)

1.78

0.24

Long Term Debt to Equity

2.51

-

Total Asset To Total Equity

5.29

1.24

Asset Management 

Total Assets Turnover (Times)

0.98

1.40

Fixed Assets Turnover (Times)

1.30

3.53

Liquidity 

Current Ratio

0.73

3.17

 

 

Based on the corporate laws of Vietnam, legal entities which are Joint Stock Company are not required to make public disclosure of their annual financials. Although basic financials were obtained for reference.

 

 

FOREIGN EXCHANGE RATES

 

Today's Exchange rate

:

1.00 VND
Vietnam Dong

=

0.000047 USD
United States Dollars

 

 

ADDITIONAL INFORMATION

 

Primary Products

Products / Materials / Services Description

Activity

Animal fiber

Manufacturing, Exporting

Fiber yarn

Manufacturing, Exporting

Spun

Manufacturing, Exporting

 

 

SIC PRODUCT CLASSIFICATION & ACTIVITY

 

 

 

Product/Service Description

Code

Activity

Fabricated textile products, nspf

2399

Manufacturing, Exporting

Nonwoven fabrics nspf

2297

Manufacturing, Exporting

Thread and handwork yarns

2284

Manufacturing, Exporting

Yarn Mills

2282

Manufacturing, Exporting

 

 

 

 

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

 

 

 

Product/Service Description

Code

Activity

Cotton, inc. yarns & woven fabrics thereof

5200

Manufacturing, Exporting

Man-made staple fibers, inc. yarns etc.

5500

Manufacturing, Exporting

Silk, inc. yarns & woven fabrics thereof

5000

Manufacturing, Exporting

Textile products etc. for specific tech uses

5911

Manufacturing, Exporting

Wool & fine or coarse animal hair, inc. yarns & woven fabrics thereof

5100

Manufacturing, Exporting

Yarn (no sew thread), art staple fib, not retail

5510

Manufacturing, Exporting

 

 

 

 

CORE BUSINESS DESCRIPTION

 

 

 

Core Business

 

The primary business focus of DONG PHAT JSC is Manufacturing - Finished products.

Key products include :

·         Animal fiber

·         Fiber yarn

·         Spun

 

An integral part of the core business includes:

·         Distribution

 

 

 

Supplementary Business

 

In addition to the core business, DONG PHAT JSC also is engaged in the following areas of business:

1.Exporting

·         Exporting - Finished products

2. Importing

·         Importing - Raw materials

 

 

 

DOMESTIC SALES & PURCHASES

 

 

 

Annual Sales Analysis

Percentage

Domestic Sales

10%

International Sales (Export)

90%

 

 

 

Annual Purchases Analysis

Percentage

Local Purchases

10%

Imports

90%

 

 

 

BANK DETAILS

 

 

 

Bank Name

:

JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM

Global Identifier

:

P1072025

Branch

:

Hanoi

Branch Address

:

JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM, THANH CONG

SWIFT Code

:

BFTVVNVX

 

Bank Name

:

JOINT STOCK COMMERCIAL BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM

Global Identifier

:

32400483

Branch

:

Hoan Kiem Dist,Hanoi

Branch Address

:

JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - THANH XUAN, HANOI

SWIFT Code

:

BIDVVNVX

 

 

 

LOCAL BRANCHES & MANAGEMENT

 

 

 

Branch

:

DONG PHAT JSC - HANOI

Branch Address

:

32 Truong Dinh, Hanoi

Branch Tel

:

84-4-36241977

 

 

 

INTERNATIONAL TRADE - Activity & Markets

 

 

 

 

Country / Region

Estimated level of importance

Trading Activity

Asia / Pacific

Medium

Importing, Exporting

North America

Medium

Importing

China

Medium

Importing, Exporting

Korea, South (Republic of Korea)

Medium

Exporting

USA

Medium

Importing

 

 

 

 

OFFICE & FACILITIES

 

The following information relates to the Business Entity's office as listed above:

 

Name

:

DONG PHAT JSC - QUOC OAI DIST, HANOI

Primary Use

:

Office & Administration facilities

Building Size

:

8,000 Square meters

Address

:

Quoc Oai Town, Quoc Oai Dist, Hanoi

Country

:

Vietnam

Ownership of Property

:

Rented / Leased

Status

:

Operational

 

 

 

 

FACTORIES, SIZE, & LOCATIONS

 

The following information relates to the Business Entity's factory as listed above:

 

Address

:

Quoc Oai Industrial Zone Km 16 Dai Lo Thang Long, Quoc Oai Dist, Hanoi

 

 

 

 

PREVIOUS BUSINESS LICENSE/S

 

 

 

License Date

License No.

18 May, 2007

0303000742

 

 

NOTES & COMMENTS

 

Na

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.85

UK Pound

1

Rs.96.73

Euro

1

Rs.76.53                                 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

SMN

 

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.