MIRA INFORM REPORT

 

 

Report Date :

23.01.2014

 

IDENTIFICATION DETAILS

 

Name :

HANOI IMPORT EXPORT AND INVESTMENT CORPORATION 

 

 

Registered Office :

No. 41 Ngo Quyen Street, Hang Bai Ward, Hoan Kiem District, Ha Noi City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2012

 

 

Year of Establishments:

1962

 

 

Com. Reg. No.:

0100106842

 

 

Legal Form :

One member liability limited company

 

 

Line of Business :

subject is operating in the following business activities:-

·         General Import & Export

Investment Activities

Real Estate Trading.

manufacturer of backpack, cap & handbag

 

 

No. of Employees :

About 400

 

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 but Correct  

 

 

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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

HANOI IMPORT EXPORT AND INVESTMENT CORPORATION

Registered Vietnamese Name

 

CONG TY TNHH MOT THANH VIEN XUAT NHAP KHAU VA DAU TU HA NOI

Registered Short name

 

UNIMEX HANOI

Type of Business

 

One member liability limited company

Year Established

 

1962

Business Registration No.

 

0100106842

Date of Registration

 

28 Oct 2013

Place of Registration

 

Hanoi Department of Planning and Investment

Chartered capital

 

VND 104,653,321,161

Status

 

Unlisted

Tax code

 

0100106842

Total Employees

 

About 400

Size

 

Medium

 

Historical Identification & Legal form

List

Changed Items

Date of changes

1

Subject has got former Business Registration No: 108572 issued on 02 June 1993

Changed to 0104000309

Changed to: 0100106842

28 Oct 2013

2

Subject has got former Registered Vietnamese Name: CONG TY TNHH NHA NUOC MOT THANH VIEN XUAT NHAP KHAU VA DAU TU HA NOI

Changed to: CONG TY TNHH MOT THANH VIEN XUAT NHAP KHAU VA DAU TU HA NOI

28 Oct 2013

3

Subject has got former Chartered capital: VND 58,575,000,000

Changed to: VND 104,653,321,161

28 Oct 2013

4

Subject has got former Registered Vietnamese Name: CONG TY XUAT NHAP KHAU VA DAU TU HA NOI

Changed to: CONG TY TNHH NHA NUOC MOT THANH VIEN XUAT NHAP KHAU VA DAU TU HA NOI

2005

 

company ADDRESSES

 

Head Office

Address

 

No. 41 Ngo Quyen Street, Hang Bai Ward, Hoan Kiem District, Ha Noi City, Vietnam

Telephone

 

(84-4) 38264188/ 38264159/ 38255008

Fax

 

(84-4) 38259246

Email

 

unimexhanoi@hn.vnn.vn

Website

 

http://www.unimex-hanoi.com

Note:  - The correct address is as above.

- This address is being construction.

 

Transaction office in Ha Noi

Address

 

No. 201 Kham Thien Str., Dong Da District, Ha Noi City, Vietnam

Telephone

 

(84-4) 38264159/ 35134804

Fax

 

(84-4) 38259246

 

Branch in Ha Noi

Address

 

Group 47, Dong Anh Town, Dong Anh District, Ha Noi City, Vietnam

 

Branch in Ha Noi

Address

 

No. 26A, Cau Dien Market Street, Cau Dien Town, Tu Liem District, Ha Noi City, Vietnam

Telephone

 

0100106842-007

 

Branch in Ho Chi Minh

Address

 

No 53 Phan Dinh Phung Street, Phu Nhuan District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 39954408/ 39954412

Fax

 

(84-8) 39954413

Email

 

hcmbranch@unimex-hanoi.com

Telephone

 

0100106842-001

 

Branch in Hai Phong

Address

 

No 46 Dien Bien Phu Street, Minh Khai Ward, Hong Bang District, Hai Phong City, Vietnam

Telephone

 

(84-31) 37660003

Fax

 

(84-31) 37660003

Telephone

 

0100106842-002

 

 

 

SUBSIDIARIES AND RELATED COMPANIES

 

1. PARENT COMPANY - HANOI TRADE CORPORATION

Business Registration

 

0100101273

Date of Registration

 

09 Dec 2010

Place of Registration

 

Hanoi Department of Planning and Investment

Chartered capital

 

VND 900,000,000,000

Tax code

 

0100101273

Address

 

No.38-40 Le Thai To Street, Hoan Kiem District, Ha Noi City, Vietnam

Tel

 

(84-4) 3826 7984/ 3928 5929

Fax

 

(84-4) 3826 7983/ 3928 6892

Website

 

http://www.haprogroup.vn

 

2. HANOI IMPORT EXPORT INVESTMENT CORPORATION - ARTEX HA NOI

Business Registration

 

0100106842-012

Date of Registration

 

17 Mar 2006

Place of Registration

 

Hanoi Department of Planning and Investment

Tax code

 

0100106842-012

Address

 

No 172 Ngoc Khanh str, Giang Vo ward, Ba Dinh District, Ha Noi City, Vietnam

Tel

 

(84-4) 37713352 - (84-4) 37713350

Fax

 

(84-4) 37713349

Website

 

www.artexhanoi.com

 

3. THU DO MANUFACTURE AND IMPORT EXPORT ENTERPRISE

Business Registration

 

0114000454

Date of Registration

 

11 Aug 2006

Place of Registration

 

Hanoi Department of Planning and Investment

Tax code

 

0100106842-010

Address

 

26B Cau Dien market street, Tu Liem District, Ha Noi City, Vietnam

Tel

 

(84-4) 37634231

Fax

 

(84-4) 37645156

 

4. HA NOI TRADING AND PACKAGING ENTERPRISE

Address

 

No 98 Hoang Cau, O Cho Dua Ward, Dong Da District, Ha Noi City, Vietnam

Tel

 

(84-4) 38513669

Fax

 

(84-4) 35110855

Tax code

 

0100106842-009

 

5. UNIMEX-EXPORT

Address

 

No 41 Ngo Quyen, Hoan Kiem District, Ha Noi City, Vietnam

Tel

 

(84-4)39348736

Fax

 

(84-4) 39362910

 

6. UNIMEX-IMPORT

Address

 

No 201 Kham Thien Street, Tho Quan Ward, Dong Da District, Ha Noi City, Vietnam

Tel

 

(84-4) 35133933

Fax

 

(84-4) 35133636

 

7. UNIMEX REAL ESTATE

Address

 

No 41 Ngo Quyen, Hoan Kiem District, Ha Noi City, Vietnam

Tel

 

(84-4) 35114582

Fax

 

(84-4) 35114582

 

 

 

DIRECTORS

 

Following is current board of directors of the subject

1. NAME

 

Mr. TRAN QUOC HUNG

Position

 

General Director

Date of Birth

 

28 Nov 1958

ID Number/Passport

 

B3680350

ID Issue Date

 

15 Mar 2010

ID Issue Place

 

Immigration Bureau

Resident

 

No. 123D Thuy Khue, Thuy Khue Ward, Tay Ho District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Mr. NGUYEN QUOC KHANH

Position

 

Deputy General Director

Nationality

 

Vietnamese

 

3. NAME

 

Ms. DANG THI MINH CHI

Position

 

Deputy General Director

Nationality

 

Vietnamese

Note:  Ms. Le Thi Kim Oanh retired

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is operating in the following business activities:
- General import and export;
- Investment activities;
- Real estate trading.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Materials, means of transportation, machinery, consumer's goods

·         Market

 

China, Taiwan, Japan, Korea, Singapore, etc

·         Payment Method

 

TT, LC

 

EXPORT:

·         Types of products

 

Agricultural-forestry products, seafood, art and handicraft

·         Market

 

USA, Canada, Germany, Japan, Israel, Egypt, etc

·         Payment Method

 

TT, LC

 

 

 

BANKERS

 

JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM HA NOI BRANCH

Address

 

No 344 Ba Trieu, Hai Ba Trung District, Ha Noi City, Vietnam

Telephone

 

(84-4) 39423038 / 39420770

Fax

 

(84-4) 38228039

 

 

 

SHAREHOLDERS

 

NAME

 

PEOPLE'S COMMITTEE OF HANOI CITY

Address

 

No.79 Dinh Tien Hoang Street, Hoan Kiem District, Ha Noi City, Vietnam

Value of shares

 

VND 104,653,321,161

Percentage

 

100%

 

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2012

31/12/2011

31/12/2010

Number of weeks

52

52

52

ASSETS

A – CURRENT ASSETS

588,803,000,000

679,540,000,000

551,667,000,000

I. Cash and cash equivalents

6,137,000,000

25,668,000,000

21,543,000,000

1. Cash

6,137,000,000

25,668,000,000

21,543,000,000

2. Cash equivalents

0

0

0

II. Short-term investments

2,690,000,000

0

0

1. Short-term investments

2,690,000,000

0

0

2. Provisions for devaluation of short-term investments

0

0

0

III. Accounts receivable

463,177,000,000

411,473,000,000

404,907,000,000

1. Receivable from customers

372,010,000,000

333,411,000,000

288,268,000,000

2. Prepayments to suppliers

94,829,000,000

72,490,000,000

117,719,000,000

3. Inter-company receivable

0

2,123,000,000

0

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

33,577,000,000

32,621,000,000

25,525,000,000

6. Provisions for bad debts

-37,239,000,000

-29,172,000,000

-26,605,000,000

IV. Inventories

94,582,000,000

191,416,000,000

105,061,000,000

1. Inventories

95,013,000,000

191,971,000,000

105,616,000,000

2. Provisions for devaluation of inventories

-431,000,000

-555,000,000

-555,000,000

V. Other Current Assets

22,217,000,000

50,983,000,000

20,156,000,000

1. Short-term prepaid expenses

6,924,000,000

5,376,000,000

666,000,000

2. VAT to be deducted

13,057,000,000

17,841,000,000

13,317,000,000

3. Taxes and other accounts receivable from the State

27,000,000

27,000,000

80,000,000

4. Other current assets

2,209,000,000

27,739,000,000

6,093,000,000

B. LONG-TERM ASSETS

182,291,000,000

184,343,000,000

181,490,000,000

I. Long term accounts receivable

0

0

1,000,000,000

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

1,000,000,000

5. Provisions for bad debts from customers

0

0

0

II. Fixed assets

23,153,000,000

21,412,000,000

12,760,000,000

1. Tangible assets

11,306,000,000

11,719,000,000

12,106,000,000

- Historical costs

33,688,000,000

32,800,000,000

31,518,000,000

- Accumulated depreciation

-22,382,000,000

-21,081,000,000

-19,412,000,000

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

90,000,000

130,000,000

0

- Initial costs

160,000,000

160,000,000

0

- Accumulated amortization

-70,000,000

-30,000,000

0

4. Construction-in-progress

11,757,000,000

9,563,000,000

654,000,000

III. Investment property

132,070,000,000

135,693,000,000

140,406,000,000

Historical costs

151,850,000,000

150,281,000,000

150,179,000,000

Accumulated depreciation

-19,780,000,000

-14,588,000,000

-9,773,000,000

IV. Long-term investments

26,046,000,000

26,046,000,000

26,050,000,000

1. Investments in affiliates

6,120,000,000

6,120,000,000

6,120,000,000

2. Investments in business concerns and joint ventures

12,845,000,000

12,845,000,000

12,845,000,000

3. Other long-term investments

7,081,000,000

7,081,000,000

7,085,000,000

4. Provisions for devaluation of long-term investments

0

0

0

V. Other long-term assets

1,022,000,000

1,192,000,000

1,274,000,000

1. Long-term prepaid expenses

1,013,000,000

1,183,000,000

1,265,000,000

2. Deferred income tax assets

0

0

0

3. Other long-term assets

9,000,000

9,000,000

9,000,000

VI. Goodwill

0

0

0

1. Goodwill

0

0

0

TOTAL ASSETS

771,094,000,000

863,883,000,000

733,157,000,000

 

LIABILITIES

A- LIABILITIES

646,142,000,000

750,299,000,000

628,616,000,000

I. Current liabilities

555,843,000,000

606,272,000,000

470,206,000,000

1. Short-term debts and loans

423,066,000,000

421,756,000,000

357,745,000,000

2. Payable to suppliers

43,812,000,000

100,627,000,000

49,809,000,000

3. Advances from customers

17,235,000,000

25,121,000,000

12,747,000,000

4. Taxes and other obligations to the State Budget

4,549,000,000

4,298,000,000

7,937,000,000

5. Payable to employees

2,433,000,000

12,003,000,000

6,682,000,000

6. Accrued expenses

3,887,000,000

1,270,000,000

827,000,000

7. Inter-company payable

0

0

0

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

62,539,000,000

40,173,000,000

32,928,000,000

10. Provisions for short-term accounts payable

0

0

0

11. Bonus and welfare funds

-1,678,000,000

1,024,000,000

1,531,000,000

II. Long-Term Liabilities

90,299,000,000

144,027,000,000

158,410,000,000

1. Long-term accounts payable to suppliers

0

0

0

2. Long-term inter-company payable

0

0

0

3. Other long-term payable

1,384,000,000

1,424,000,000

284,000,000

4. Long-term debts and loans

1,102,000,000

4,311,000,000

9,655,000,000

5. Deferred income tax payable

0

0

0

6. Provisions for unemployment allowances

0

761,000,000

569,000,000

7. Provisions for long-term accounts payable

0

0

0

8. Unearned Revenue

87,813,000,000

137,531,000,000

147,902,000,000

9. Science and technology development fund

0

 

 

B- OWNER’S EQUITY

124,952,000,000

113,584,000,000

104,541,000,000

I. OWNER’S EQUITY

124,952,000,000

113,584,000,000

104,541,000,000

1. Capital

67,516,000,000

67,516,000,000

67,515,000,000

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

435,000,000

238,000,000

7. Business promotion fund

19,415,000,000

19,415,000,000

24,095,000,000

8. Financial reserved fund

3,573,000,000

3,573,000,000

4,248,000,000

9. Other funds

0

0

0

10. Retained earnings

34,448,000,000

22,645,000,000

8,445,000,000

11. Construction investment fund

0

0

0

12. Business arrangement supporting fund

0

0

0

II. Other sources and funds

0

0

0

1. Sources of expenditure

0

0

0

2. Fund to form fixed assets

0

0

0

MINORITY’S INTEREST

0

0

0

TOTAL LIABILITIES AND OWNER’S EQUITY

771,094,000,000

863,883,000,000

733,157,000,000

 

PROFIT & LOSS STATEMENT

 

Description

FY2012

FY2011

FY2010

1. Total Sales

1,547,046,000,000

1,877,953,000,000

1,201,564,000,000

2. Deduction item

0

68,000,000

813,000,000

3. Net revenue

1,547,046,000,000

1,877,885,000,000

1,200,751,000,000

4. Costs of goods sold

1,407,520,000,000

1,738,928,000,000

1,120,358,000,000

5. Gross profit

139,526,000,000

138,957,000,000

80,393,000,000

6. Financial income

14,019,000,000

22,750,000,000

25,458,000,000

7. Financial expenses

60,171,000,000

68,399,000,000

43,844,000,000

- In which: Loan interest expenses

56,612,000,000

57,380,000,000

21,946,000,000

8. Selling expenses

37,989,000,000

29,158,000,000

13,590,000,000

9. Administrative overheads

47,907,000,000

50,022,000,000

38,557,000,000

10. Net operating profit

7,478,000,000

14,128,000,000

9,860,000,000

11. Other income

2,165,000,000

722,000,000

532,000,000

12. Other expenses

36,000,000

11,000,000

259,000,000

13. Other profit /(loss)

2,129,000,000

711,000,000

273,000,000

14. Total accounting profit before tax

9,607,000,000

14,839,000,000

10,133,000,000

15. Current corporate income tax

885,000,000

2,843,000,000

1,613,000,000

16. Deferred corporate income tax

0

0

0

17. Interest from subsidiaries/related companies

0

0

0

18. Profit after tax

8,722,000,000

11,996,000,000

8,520,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2012

FY2011

FY2010

Average Industry

Current liquidity ratio

1.06

1.12

1.17

1.20

Quick liquidity ratio

0.89

0.81

0.95

0.65

Inventory circle

14.88

11.73

10.66

11.15

Average receive period

109.28

79.98

123.08

49.22

Utilizing asset performance

2.01

2.17

1.64

2.60

Liability by total assets

83.80

86.85

85.74

72.10

Liability by owner's equity

517.11

660.57

601.31

396.96

Ebit / Total assets (ROA)

8.59

8.36

4.38

8.25

Ebit / Owner's equity (ROE)

53.00

63.58

30.69

42.15

Ebit / Total revenue (NPM)

4.28

3.85

2.67

4.23

Gross profit / Total revenue (GPM)

9.02

7.40

6.69

7.33

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

 

 

 

CASH FLOW STATEMENT

 

(Indirect method)

Items

FY2011

I. Cash flows from operating activities

1. Profit before tax

14,839,000,000

2. Adjustments

 

- Depreciation and amortization

6,514,000,000

- Provisions

2,567,000,000

- Unrealized foreign exchange difference

197,000,000

- Gain/loss from investing activities

0

- Interest expense

57,380,000,000

3. Operating profit before movements in working capital

81,497,000,000

- (Increase)/Decrease in receivables

-8,133,000,000

- (Increase)/Decrease in inventories

-86,355,000,000

- Increase/(Decrease) in accounts payable

66,655,000,000

- (Increase)/Decrease in prepaid expenses

-4,628,000,000

- Interest paid

-57,380,000,000

- Corporate income tax paid

-6,482,000,000

- Other cash inflows

0

- Other cash outflows

-29,268,000,000

Net cash from (used in) operating activities

-44,094,000,000

II. Cash flows from investing activities

1. Acquisition of fixed assets and other long - term assets

-10,453,000,000

2. Proceeds from fixed assets and long - term assets disposal

0

3. Cash outflow for lending, buying debt instruments of other companies

0

4. Cash recovered from lending, selling debt instruments of other companies

0

5. Investment in other entities

0

6. Cash recovered from investments in other entities

4,000,000

7. Interest income, dividend and profit paid

0

Net cash from (used in) investing activities

-10,449,000,000

III. Cash flows from financing activities

1. Proceeds from issuing stocks, receiving capital from owners

1,000,000

2. Capital withdrawal, buying back issued stocks

0

3. Proceeds from borrowings

58,667,000,000

4. Repayment of borrowings

0

5. Repayment of obligations under finance leased

0

6. Dividends paid

0

Net cash from (used in) financing activities

58,668,000,000

Net increase/(decrease) in cash and cash equivalents

4,125,000,000

Cash and cash equivalents at beginning of year

21,543,000,000

Effect from changing foreign exchange rate

0

Cash and cash equivalents at end of year

25,668,000,000

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Medium/High

Payment status

 

Above Average

Financial Situation

 

Above Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

T/T, L/C

Sale Methods

 

To contracts

Public opinion

 

Normal

 

 

 

INTERPRETATION ON THE SCORES

 

The subject was established in 1962 as state single limited liability company. From that until now, its legal document has adjusted for many times and the latest time was on October 28th 2013. In this latest time, the subject was changed to its registered Vietnamese name from CONG TY TNHH NHA NUOC MOT THANH VIEN XUAT NHAP KHAU VA DAU TU HA NOI to CONG TY TNHH MOT THANH VIEN XUAT NHAP KHAU VA DAU TU HA NOI; its business registration was adjusted to No. 0100106842 for coincidence with the tax code and its chartered capital was lifted to VND 104,653,321,161.

The subject now is considered as a interdisciplinary company. Its activities include general import and export, investment activities, real estate trading and manufacturing (backpack, cap & handbag). The subject still registers its head office at 41 Ngo Quyen Street, Hoan Kiem District, Ha Noi City, Viet Nam, which is being under construction. Therefore, all its business transactions are performed at No. 201 Kham Thien – Dong Da – Ha Noi.

Financially, in 2012, it appears the subject was also affected by the common difficulties in economics as very many other companies in Vietnam, so its total sales and profit all decreased compared with those in previous year, in which the total sales reduced by 17.62% and profit after tax lessened 27.29%. The subject’s total assets also declined from VND 863,883 million (in 2011) to VND 771,094 million mostly by the decrease of current assets. In items of current assets, accounts receivable grew remarkably but inventories decreased strongly from VND 191,416 million (in 2011) to VND 94,582 million.

Looking at the financial ratios, we can see that the subject’s current liquidity ratio reduced in relation to that in 2011 due to the decrease rate of current assets was higher than the decrease rate of current liabilities. However, its quick liquidity ratio rose slightly because of the strongly decrease of inventories. Compared with the average industry, the subject’s liquidity ratios were acceptable.

Also because the inventories shrank, the subject’s inventory circle was improved. Yet its average receive period rised significantly from 79.98 days (in 2011) to 109,28 days because the subject’s accounts receivable grew meanwhile its net revenue went down. The subject’s average receive period in three financial years was all longer by far than the average industry, shows that the subject’s credit policy on deferred payment sale seems relatively easy and like this the subject will take more time to obtain cash.

The subject’s debt rate was improved in 2012 due to the remarkable increase in owner’s equity and the decrease in considerable current liabilities. However, this rate was still higher by far than the average industry, reflects that the subject’s capital structure was not very safe.

To sum up, the subject has a long time of existence and development. Its business activities are fair good. However, its solvency seems average. Thus, caution is needed for big transactions with the subject.

 

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.61.92

UK Pound

1

Rs.101.98

Euro

1

Rs.83.93

 

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.