MIRA INFORM REPORT

Report Date :

13.04.2007

IDENTIFICATION DETAILS

Name :	HUYNH PHUONG LIMITED LIABILITY COMPANY
Registered Office :	230 Nguyen Thai Binh St, Ward 12, Tan Binh Dist, Hochiminh city
Country :	Vietnam
Financials (as on) :	31.03.2005
Com. Reg. No.:	4102006461
Legal Form :	Limited Liability Company
Line of Business :	Trading in machinery, equipment, agro-machine and construction machine. Building materials, products made from rubber, pipe steel, household appliance. Trading in agro-products. Forwarding goods agents. Marketing and promotion service.. Trading in medicine machinery, cosmetic.

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 :	Regualr
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	HUYNH PHUONG LIMITED LIABILITY COMPANY
Vietnamese name	CONG TY TNH HUYNH PHUONG
Trade Name	HUYNH PHUONG CO., LTD
Abbreviation name	HUPHU CO., LTD
Type of Business	Limited liability company
Founded	2001
Business Registration No.	4102006461
Date of Issuance	September 11^th 2001
Place of Issuance	Planning & Investment Department of Hochiminh city
Registered Capital	1,700,000,000 VND
Tax Code	0302414127
Total Employees	15 employees
Qualification	Normal
ADDRESS
Head Office
Address	230 Nguyen Thai Binh St, Ward 12, Tan Binh Dist, Hochiminh city
Country	Vietnam
Tel	(84-8) 8117268
Fax	(84-8) 8117230
Email	huynhphuonginc@hcm.vnn.vn
DIRECTORS
1. Name	Ms. HUYNH HOA PHUONG THAO
Position	Director
Identity Card	340911759
Resident	10 Nguyen Dinh Chieu St, Ward 2, Cao Lanh city, Dong Thap Province
Nationality	Vietnamese
2. Name	Mr. HUYNH BA PHUC
Position	Deputy Director
Identity Card	023176703
Resident	168/2 Vo Thanh Trang St, Ward 11, Tan Binh Dist, Hochiminh city
Nationality	Vietnamese
Cell phone	++84 903 746 922
BUSINESS NATURE AND ACTIVITIES
It is now the agent for Pharmalab (India), specializing in distributing medical equipment.
The subject registered in the following lines of business: Trading in machinery, equipment, agro-machine and construction machine. Building materials, products made from rubber, pipe steel, household appliance. Trading in agro-products. Forwarding goods agents. Marketing and promotion service.. Trading in medicine machinery, cosmetic.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports products from Malaysia, Thailand, Singapore, and India.
EXPORT: N/A
BANKERS
1. ASIA COMMERCIAL JOINT STOCK BANK (ACB BANK)
Address	442 Nguyen Thi Minh Khai Str, Ward 5, Dist 3, Hochiminh City
Country	Vietnam
Tel	(84-8) 8334085 - 8395179
Fax	(84-8) 8359156
Telex	813158ACBVT
Swift	ASCBVNVX
2. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM (INCOMBANK)
Address	93 - 95 Ham Nghi Str, Nguyen Thai Binh Ward, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 8215388 - 8210089
Fax	(84-8) 8290696
Swift	ICBVVNVX902
SHAREHOLDERS
1. Name	Mr. HUYNH BA PHUC
Position	Deputy Director
Identity Card	023176703
Resident	168/2 Vo Thanh Trang St, Ward 11, Tan Binh Dist, Hochiminh city
Nationality	Vietnamese
Share	50%
Value	850,0000,000 VND
2. Name	Ms. HUYNH HOA PHUONG THAO
Position	Director
Identity Card	340911759
Resident	10 Nguyen Dinh Chieu St, Ward 2, Cao Lanh city, Dong Thap Province
Nationality	Vietnamese
Share	50%
Value	850,000,000 VND
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Normal
Liquidity	Average
Previous Payments	Above average
Payment status	Normal
Past Financial Situation	Normal
Current Financial Situation	Fairly good
Litigation Data	No recorded
Bankruptcy	No recorded
Public opinion	Normal
Payment Methods	Directly to clients or through its banks
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date		31/12/2005	31/12/2004
Number of weeks		52	52
ASSETS
A. Working assets & short-term Investment		6,099	3,685
I. Cash and cash equivalents		235	1,223
II. Short-term investment		0	0
1. Short-term securities investment		0	0
2. Other short-term investment		0	0
3. Provision for short-term investment		0	0
III. Receivables		4,662	999
1. Receivables from customers		4,658	958
2. Prepayment for providers		0	0
3. Value-added tax deducted		0	37
4. Internal receivables		0	0
5. Other receivables		4	4
6. Provision for bad receivables		0	0
IV. Inventory		1,116	1,377
1. Purchased goods in transit		0	0
2. Raw materials		0	0
3. Instrument, tools		0	9
4. Cost for production and business in process		0	0
5. End products		0	0
6. Goods		1,116	1,368
7. Goods on consignment		0	0
8. Provision for devaluation of stocks		0	0
V. Other current assets		86	86
1. Advances		0	0
2. Prepaid expenses		0	0
3. Pending expenses for transfer		0	0
4. Pending assets		0	0
5. Mortgage, collateral and short run collateral		86	86
VI. Administrative		0	0
1. Administrative expenses for previous year		0	0
2. Administrative expenses for current year		0	0
B. Fixed assets & Long term investment		237	159
I. Fixed assets		80	64
1. Tangible fixed assets		80	64
+ Original cost		127	90
+ Accumulated depreciation value		-47	-26
2. Financial leasing fixed assets		0	0
+ Original cost		0	0
+ Accumulated depreciation value		0	0
3. Intangible fixed assets		0	0
+ Original cost		0	0
+ Accumulated depreciation value		0	0
II. Long term investment		0	0
1. Long-term securities investment		0	0
2. Joint-venture capital contribution		0	0
3. Other long-term investment		0	0
4. Provision for long-term investment devaluation		0	0
III. Capital construction in process		0	0
IV. Other		157	95
TOTAL ASSETS		6,336	3,844
LIABILITIES
A. Payable loans		4,581	3,606
I. Short term payables		4,076	3,606
1. Short-term borrowings		3,850	2,706
2. Due long-term liabilities		0	0
3. Payables to supplier		198	865
4. Prepayment of buyer		0	0
5. Taxes and accounts dutiable		28	35
6. Employee payments		0	0
7. Internal payables		0	0
8. Other payables		0	0
II. Long term loans		505	0
1. Long-term borrowings		505	0
2. Long-term payables		0	0
III. Other payables		0	0
1. Payable expenses		0	0
2. Pending assets		0	0
3. Receipts long-term collateral and deposit		0	0
B. Owner’s Equity		1,755	238
I. Capital and Funds		1,755	238
1. Working capital		1,700	200
2. Differences from asset revaluation		0	0
3. Exchange rate differences		0	0
4. Development investment funds		0	0
5. Reserved funds		0	0
6. Retained profit		55	38
7. Construction capital sources		0	0
II. Other administrative and fund sources		0	0
1. Provident funds for unemployment		0	0
2. Reward and welfare funds		0	0
3. Management funds of higher level		0	0
4. Functional operation funds		0	0
5. Fund sources formed by fixed assets		0	0
TOTAL LIABILITY AND EQUITY		6,336	3,844
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
Description		FY 2005	FY 2004
Total revenue		6,910	N/A
Deductions Items		0	-
- Discount		0	-
- Devaluation		0	-
- Return of sold goods		0	-
- Turnover tax, Luxury tax & Export tax		0	-
1. Net revenue		6,910	-
2. Cost of goods sold		6,289	-
3. Gross Profit		621	-
4. Sales expenses		0	-
5. Enterprise administrative expenses		319	-
6. Net income from business activities		302	-
Income from financial activities		9	-
Expenditure from financial activities		294	-
7. Net income from financial operation		-285	-
Irregular income		0	-
Irregular expenditure		0	-
8. Irregular Profit		0	-
9. Total pre-tax profit		17	-
10. Income tax		5	-
11. After tax profit		12	-
FINANCIAL FACTORS
Description		FY 2005	FY 2004
Current Liquidity Ratio		1.50	1.02
Quick Liquidity Ratio		1.22	0.64
Inventory Circle		5.05	-
Average Receive Period		246.26	-
Utilizing Asset Performance		1.09	-
Liability / Total Asset (%)		72.30	93.81
Liability / Owner's Equity (%)		261.03	1,515.13
Income Before Tax / Total Asset (%) ROA		0.27	-
Income Before Tax / Owner's Equity (%) ROE		0.97	-
Income Before Tax / Total Revenue (%) NPM		0.25	-
Gross Profit / Total Revenue (%) GPM		8.99	-
INTERPRETATION ON THE SCORES
Huynh Phuong Co., Ltd is a Limited Liability Company, which was officially operated in 1999. The current head office of the subject is at No.230 Nguyen Thai Binh St, Tan Binh District, Hochiminh city. It has specialized in trading in medical equipment and medical machinery since 1999. Its main customers are from North to South of Vietnam, especially in the South of Vietnam which is gathered more than 70 medical companies in total 100 companies on around of Vietnam. The regular customers of the subject are VIMEDIMEX 2, DOMESCO, Hau Giang Pharma… They buy machine and equipment for replacement for every year, and all the payment are carried out so quickly. The majority suppliers of the subject are come from India, Germany and a few in China. Beside the head office in Tan Binh District, the subject has also a workshop in District 7, for after sale service and maintenance products. Though the employees in the company are not much, they are running it quite well. Each medical company which Huynh Phuong Co., Ltd sells product is always following by at least 1 engineer of the subject. So that, it now creates a stable market share in inland. Following the financial data, the Liquidity and Liability/Total Asset of the subject was fairly good. It has no problem in payment within 2 years and revenue in 2006 was 1 million USD - Mr. Huynh Ba Phuc said. In the business history, the subject used to import package value up to 300 thousand USD. So, Pls caution needed for this transaction because the credit inquiry (1,500,000 USD) is too high compare with the scale of the Subject.
To be rated at BB, the company is expected to be VULNERABLE TO ADVERSE changes in circumstances and economic conditions.
CREDIT INQUIRY: 1,500,000 USD against DA terms.
The Subject does not have capacity to meet this credit inquiry.

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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