MIRA INFORM REPORT

 

 

Report Date :

27.06.2014

 

IDENTIFICATION DETAILS

 

Name :

RKW LOTUS LTD

 

 

Registered Office :

D4/14 Provincial Highway 10 (Tinh Lo 10) Tan Tao Ward, Binh Tan Dist, Ho Chi Minh

 

 

Country :

Vietnam

 

 

Financials (as on) :

December 2012

 

 

Date of Incorporation :

17.07.2007

 

 

Legal Form :

Private Company with Limited Liability

 

 

Line of Business :

·         producer of Film Based Household Products

 

Subject product ranges includes Consumer Packaging Products, Courier Bags, Freezer Bags, Glue-Spot Bags, Patch Handle Bags, Plastic Products, Plastic Resins, Star-Sealed Bags &T-Shirt Bags, Drawsting Bags, T-Shirt Bags, Loose Bags, Freezer Bags, Block-Headed Bags, Patch Handle Bags AS WELL AS PE Films And Paper-Like Films For Foodstuffs

 

 

No of Employees :

500

 

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Vietnam

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

:

RKW LOTUS LTD(1)

Address

:

D4/14 Provincial Highway 10 (Tinh Lo 10) Tan Tao Ward, Binh Tan Dist, Ho Chi Minh

Country

:

Vietnam

Phone (S)

:

[+84] 8-38776470

Facsimile

:

[+84] 8-38761815

Email

:

bui@rkw-lotus.com

Website

:

http://www.rkw-ag.de

Primary Business Activity

:

Producer

Key Industry

:

Film Based Household Products

 

Key Facts

 

Registered Legal Address

:

D4/14 Provincial Highway 10 (Tinh Lo 10) Tan Tao Ward, Binh Tan Dist, Ho Chi Minh

Operational Address

:

D4/14 Provincial Highway 10 (Tinh Lo 10) Tan Tao Ward, Binh Tan Dist, Ho Chi Minh

Issuing Authority

:

Dept. of Planning & Investment - Ho Chi Minh

License Number

:

411043000237

License Status

:

License exists - Normal.

Legal Form - Category

:

Private Company with Limited Liability

Legal Form

:

Limited

Legal Form - Abbreviation

:

LTD

Operational Status of Business

:

Normal

Date of Registration

:

17 Jul, 2007

Employees

:

500

Capital

:

US$ 3,000,000

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

:

RKW LOTUS LTD

Primary Business Activity

:

Manufacturer

Primary Industry

:

Plastics & Products

Office Contact Details

Operating Address

:

D4/14 Provincial Highway 10 (Tinh Lo 10) Tan Tao Ward, Binh Tan Dist, Ho Chi Minh

Tel

:

[+84] 8-38776470

 

:

[+84] 8-37547122

Fax

:

[+84] 8-38761815

 

:

[+84] 8-37547126

Email

:

bui@rkw-lotus.com

Website Details

Website

:

http://www.rkw-ag.de

Status

:

Normal - operational

Country of Registration

:

Germany

Ownership Type

:

Registered ownership by a related third party

Owner Country

:

Germany

Owner Name

:

RKW SE

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

:

0303507310

Date of Issuance

:

14 Oct, 2004

 

DIRECTORS/MANAGEMENT

 

Key Person

Legal Title

:

Managing Director

Name

:

Mr. Nguyen Nhu Khue

Nationality

:

Vietnamese

 

 

COMPANY MANAGEMENT

 

 

 

Management Listings

 

 

Name

Nationality

Job Description

Dept. / Division

1

Ms. Huynh Thi Phuong Khanh

Vietnamese

Chief Accountant

-

 

 

Management Details - 1

Personal Unique Identifier

:

MI03699921

Name

:

Ms. Huynh Thi Phuong Khanh

 

Date of Birth

:

1975

 

 

COMPANY DIRECTORS

 

1

 

 

Personal Unique Identifier

:

MI03699879

Name

:

Mr. Nguyen Nhu Khue

Date of Birth

:

1957

 

NEGATIVE INFORMATION

 

 

REPUTATION

 

Reference checking for the purpose of establishing RKW LOTUS LTD'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: USD - US Dollar)

 

Authorized Capital

:

$ 3,000,000

 

 

SHAREHOLDERS

 

Total number of shareholders

:

1

Total number of shares

:

n/a

 

Currency

:

USD - US Dollar

 

No.

Shareholders

Country

Shares

Number

Amount (USD)

%

1

RKW LOTUS INVESTMENTS PTE LTD

Singapore

n/a

n/a

100.00

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

 

 

DIRECT / INDIRECT CORPORATE PARENT DETAILS

 

 

 

Direct Parent

:

RKW LOTUS INVESTMENTS PTE LTD

Global Identifier

:

P1425044

Legal Form Category

:

Private Company with Limited Liability

Country

:

Singapore

Operational Address

:

Robinson Point 39 Robinson Rd #07-01 068911

Primary Business Activity

:

Service

Indirect Parent

:

RKW SE

Global Identifier

:

P1424969

Legal Form Category

:

Public Company

Country

:

Germany

Operational Address

:

Nachtweideweg 1-7 Frankenthal 67227

Primary Business Activity

:

Manufacturer

 

 

STRATEGIC PARTNER/S & ALLIANCES

 

 

 

 

Group / Alliance name

:

RKW GROUP

 

FINANCIAL INFORMATION

 

Financials - Summary  (Currency: USD - US Dollar)

Year

Sales

Assets

Net Income

2011 Annual  

41,969,707

16,383,245

3,878,685

2012 Annual (*)

52,562,251

20,581,464

2,343,232

 

Sales Trend – Analysis

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

-

-

-

-

-

-

-

-

-

Note: (*)

Financials listed are the most recent available for this company.

 

 

FINANCIAL STATEMENT - DETAILED

 

Balance Sheet

 

Currency

:

VND

Denomination

:

1

Financial Year Ending

:

December

 

Financial Highlights

2011 Annual

2012 Annual

Current Assets

290,736,000,000

371,103,000,000

Non Current Assets

50,527,000,000

57,499,000,000

Non Current Liabilities

937,000,000

862,000,000

Share Capital

45,452,000,000

45,452,000,000

Other long term assets 

Total Assets

341,263,000,000

428,602,000,000

Total Liabilities

101,539,000,000

140,079,000,000

Current Liabilities

100,602,000,000

139,217,000,000

Long term liabilities 

Shareholders Funds

239,724,000,000

288,523,000,000

 

Current assets & short term investments

290,736,000,000

371,103,000,000

Cash & cash equivalents

37,526,000,000

98,642,000,000

Cash

37,526,000,000

94,642,000,000

Cash equivalents

-

4,000,000,000

Accounts receivable

75,846,000,000

98,288,000,000

Accounts receivable trade

64,476,000,000

78,948,000,000

Trade prepayment

7,592,000,000

1,338,000,000

Others receivables

4,586,000,000

18,291,000,000

Provision for bad debts

(808,000,000)

(289,000,000)

Inventories (I)

150,521,000,000

154,299,000,000

Inventories (I)

151,043,000,000

155,849,000,000

Provision for decline in inventory

(522,000,000)

(1,550,000,000)

Other short term asset

26,843,000,000

19,874,000,000

Prepaid expenses

7,955,000,000

8,099,000,000

VAT deductible

18,888,000,000

11,775,000,000

Long term assets

50,527,000,000

57,499,000,000

Fixed assets

49,176,000,000

54,053,000,000

Tangible fixed assets

46,449,000,000

51,557,000,000

Cost (I)

152,910,000,000

172,194,000,000

Accumulated depreciation (I)

106,461,000,000

120,637,000,000

Intangible fixed assets

2,410,000,000

2,496,000,000

Cost (II)

2,914,000,000

3,624,000,000

Accumulated depreciation (II)

504,000,000

1,128,000,000

Construction in progress

317,000,000

-

Other long term assets

1,351,000,000

3,446,000,000

Asset of income tax delay

1,351,000,000

3,446,000,000

Total assets

341,263,000,000

428,602,000,000

Liabilities

101,539,000,000

140,079,000,000

Current liabilities

100,602,000,000

139,217,000,000

Short term borrowings

5,415,000,000

5,416,000,000

Accounts payables-trade

52,555,000,000

73,578,000,000

Advances from customers

2,961,000,000

6,426,000,000

Taxes and payable to state budget

4,621,000,000

9,825,000,000

Accrued expenses payable

10,950,000,000

13,894,000,000

Other payables

22,064,000,000

29,369,000,000

Provision for short term payable

2,036,000,000

709,000,000

Long term liabilities

937,000,000

862,000,000

Provision funds for unemployment

937,000,000

862,000,000

Owner's equity (I)

239,724,000,000

288,523,000,000

Owner's equity (II)

239,724,000,000

288,523,000,000

Business capital

45,452,000,000

45,452,000,000

Retained earnings

194,272,000,000

243,071,000,000

Total resources

341,263,000,000

428,602,000,000

 

 

Income Statement

 

Currency

:

VND

Denomination

:

1

Financial Year Ending

:

December

 

Financial Highlights

2011 Annual

2012 Annual

Turnover

874,229,000,000

1,094,591,000,000

Profit (Loss) Before Tax

92,079,000,000

59,934,000,000

Profit After Tax attributable to Shareholders

80,793,000,000

48,797,000,000

 

Gross sales

874,229,000,000

1,094,591,000,000

Less deductions

675,000,000

1,549,000,000

Net income

873,554,000,000

1,093,042,000,000

Cost of goods sold

755,001,000,000

969,148,000,000

Gross margin

118,553,000,000

123,894,000,000

Income from financial activities

14,336,000,000

4,197,000,000

Expenses from financial activities

4,973,000,000

1,048,000,000

Selling expenses

9,414,000,000

23,544,000,000

General & administration expenses

30,730,000,000

42,380,000,000

Net income from operating activities

87,772,000,000

61,119,000,000

Extraordinary income

6,096,000,000

335,000,000

Extraordinary expenses

1,789,000,000

1,520,000,000

Extraordinary gains

4,307,000,000

(1,185,000,000)

Net profit before tax

92,079,000,000

59,934,000,000

Income tax

11,326,000,000

13,232,000,000

Income tax delay

40,000,000

2,095,000,000

Net profit after tax

80,793,000,000

48,797,000,000

 

 

Financial Ratios

 

Financial Highlights

2011 Annual

2012 Annual

Growth % 

Year-on-Year Growth

-

25.21

Profitability 

Profit Margin (%)

9.24

4.46

Return on Equity (%)

33.70

16.91

Return on Assets (%)

23.67

11.39

Leverage 

Total Debt Equity (Times)

0.42

0.49

Current Debt Equity (Times)

0.42

0.48

Long Term Debt to Equity

0.00

0.00

Total Asset To Total Equity

1.42

1.49

Asset Management 

Total Assets Turnover (Times)

2.56

2.55

Fixed Assets Turnover (Times)

17.30

19.04

Liquidity 

Current Ratio

2.89

2.67

 

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

 

ADDITIONAL INFORMATION

 

Primary Products

Products / Materials / Services Description

Activity

Consumer packaging products

Manufacturing, Exporting

Courier bags

Manufacturing, Exporting

Freezer bags

Manufacturing, Exporting

Glue-spot bags

Manufacturing, Exporting

PE films

Manufacturing, Exporting

 

International Trade - Statistics  (Currency: USD - US Dollar)

Year

Imports

Exports

Total

2011

n/a

40,710,616

40,710,616

2012

n/a

50,985,383

50,985,383

 

 

SIC PRODUCT CLASSIFICATION & ACTIVITY

 

 

 

Product/Service Description

Code

Activity

Bags; uncoated paper and multiwall

2674

Manufacturing, Exporting

Plastics materials and resins

2821

Manufacturing, Exporting

Plastics products, nspf

3089

Manufacturing, Exporting

Plastics, foil, and coated paper bags

2673

Manufacturing, Exporting

 

 

 

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

 

 

 

Product/Service Description

Code

Activity

Articles of plastics (inc polymers & resins)

3926

Manufacturing, Exporting

Containers (boxes, bags etc), closurers etc, plastics

3923

Manufacturing, Exporting

Other bags, outer surface plastic sheeting,nesoi

4202929040

Manufacturing, Exporting

Plastics & articles thereof

3900

Manufacturing, Exporting

 

 

 

 

DETAILED PRODUCT CLASSIFICATION & ACTIVITY

 

 

 

Products / Materials / Services Description

Ranking

Activity

Patch handle bags

Primary

Manufacturing, Exporting

Plastic products

Primary

Manufacturing, Exporting

Plastic resins

Primary

Manufacturing, Exporting

Star-sealed bags

Primary

Manufacturing, Exporting

T-shirt bags

Primary

Manufacturing, Exporting

 

 

 

 

CORE BUSINESS DESCRIPTION

 

Core Business

 

The primary business focus of RKW LOTUS LTD is Manufacturing - Finished products.

Key products include :

Consumer Packaging Products, Courier Bags, Freezer Bags, Glue-Spot Bags, Patch Handle Bags, Plastic Products, Plastic Resins, Star-Sealed Bags &T-Shirt Bags, Drawsting Bags, T-Shirt Bags, Loose Bags, Freezer Bags, Block-Headed Bags, Patch Handle Bags as well as PE Films And Paper-Like Films For Foodstuffs

 

An integral part of the core business includes:

·                     Distribution

 

 

 

Supplementary Business

 

In addition to the core business, RKW LOTUS LTD 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

3%

International Sales (Export)

97%

 

 

 

 

Annual Purchases Analysis

Percentage

Local Purchases

30%

Imports

70%

 

 

 

BANK DETAILS

 

 

 

Bank Name

:

DEUTSCHE BANK AG

Global Identifier

:

32401803

Branch

:

Hai Ba Trung Dist,Hanoi

Branch Address

:

DEUTSCHE BANK AG - HO CHI MINH

SWIFT Code

:

DEUTVNVX

 

 

 

INTERNATIONAL TRADE - Activity & Markets

 

 

 

 

Country / Region

Estimated level of importance

Trading Activity

Asia / Pacific

Medium

Importing

Europe

Medium

Exporting

Japan

Medium

Importing

Taiwan

Medium

Importing

 

 

 

 

OFFICE & FACILITIES

 

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

 

Name

:

RKW LOTUS LTD - BINH TAN DIST, HO CHI MINH

Primary Use

:

Office & Administration facilities

Address

:

D4/14 Provincial Highway 10 (Tinh Lo 10) Tan Tao Ward, Binh Tan Dist, Ho Chi Minh

Country

:

Vietnam

Status

:

Operational

 

 

 

 

QUALITY ACCREDITATION

 

 

 

Quality Accreditation Listings

 

#

Name

Accreditation Category

1

INTERNATIONAL STANDARDS ORGANIZATION (ISO)

9001:2000

 

 

 

 

PREVIOUS BUSINESS LICENSE/S

 

 

 

License Date

License No.

8 Sep, 2004

697/GP-HCM

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.16

UK Pound

1

Rs.102.23

Euro

1

Rs.82.04

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.