MIRA INFORM REPORT

Report Date :

20.08.2007

IDENTIFICATION DETAILS

Name :	LIKSIN CORPORATION
Registered Office :	No. 159 Kinh Duong Vuong Street, District 6, Hochiminh City,
Country :	Viet Nam
Financials (as on) :	31.12.2006
Date of Incorporation :	1978
Legal Form :	State Owned Company
Line of Business :	The subject specializes in printing and packaging production

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION& LEGAL FORM
New English name	LIKSIN INDUSTRY PRINTING PACKAGING CORPORATION
New Vietnam name	TONG CONG TY CONG NGHIEP IN BAO BI LIKSIN
Short name in English	LIKSIN CORPORATION
Short name in Vietnamese	TONG CONG TY LIKSIN
Trade mark	LIKSIN
Former English Name	LIKSIN PAPER, PRINTING & PACKAGING PRODUCTION-TRADE IMPORT-EXPORT CORPORATION
Vietnamese Name	CONG TY SAN XUAT KINH DOANH XUAT NHAP KHAU GIAY, IN & BAO BI LIKSIN
Original Foundation	1978
Type of business	State Owned Company
Decision of re-organization	278/QD-UB
Issued on	June 16^th, 2006
Issued by	People’s Committee of Hochiminh City
New business registration	4106000313
Issued on	October 09^th, 2006
Former business registration	No. 4106000081
Issued on	November 10^th, 2004
Issued by	Hochiminh city Department of Planning and Investment
Original business registration	No.102238
Issued on	March 31^st 1995
Issued by	Hochiminh City Department of Planning and Investment
Current total registered Capt	659,470,000,000 VND
Former Registered Capital	173,639,000,000 VND (This is subject’s capital before re-organization).
Original registered capital	20,079,000,000 VND
Tax code	0301441600
Total Employees	Around 815 employees
Qualification	Normal
Notes: Subject is a big state owned corporation. It was re-organized many times in order to suitable with Vietnam economy. Subject has received a decision to changed name & increasing capital since June, 2006 by People’s Committee. However, up to October of 2006 subject got a new business number and officially operating under the new name “LIKSIN INDUSTRY PRINTING PACKAGING CORPORATION”
ADDRESSES
Current Head office
Address	No. 159 Kinh Duong Vuong Street, District 6, Hochiminh City
Old Address	No. 701, Kinh Duong Vuong Street (Old name: Hung Vuong Street), Ward 12, Dist 6, Hochiminh City
Country	Vietnam
Tel	(84-8) 751 2562 / 751 2574 / 751 2563
Fax	(84-8) 751 2561
Email	liksin@hcm.vnn.vn
Website	www.liksin.com.vn
Note	Subject’s location is not changed. However, the authority has changed the name of address.
Former Head Office
Address	No.64-66, Ton That Tung Street, Dist 1, Hochiminh City
Tel	(84-8) 833 0705
Fax	(84-8) 925 6255
Notes: This place is a former Head Office of LIKSIN CORP. Currently, this place is a office of AN THINH LIKSIN TRADING CO., LTD, which is one of subsidiaries of LIKSIN CORP.
Rep. Office in Hanoi
Address	No. 21, Lo Duc Street, Hai Ba Trung Dist, Hanoi
Country	Vietnam
Tel	(84-4) 972 1807
Fax	(84-4) 821 1120
Email	liksinhn@netnam.org.vn
SUBSIDIARIES
1. NAME	LIKSIN PACKAGING ENTERPRISE
Vietnamese Name	XI NGHIEP BAO BI LIKSIN
Address	92 An Duong Vuong Street, Binh Tan Dist, Hochiminh city
Tel	(84-8) 875 6097
Fax	(84-8) 877 6290
Email	baobiliksin@hcm.vnn.vn
Total Area	16,740 sqm
2. NAME	LIKSIN PAPER PACKAGING PRINTING ENTERPRISE
Vietnamese Name	XI NGHIEP IN BAO BI GIAY LIKSIN
Address	No. 701, Kinh Duong Vuong Street, Dist 6, Hochiminh City
Tel	(84-8) 875 6972
Fax	(84-8) 875 9529
Total Area	8,965 sqm
3. NAME	AN LAC LABEL PRINTING JOINT-STOCK COMPANY
Vietnamese Name	CONG TY CP IN NHAN HANG AN LAC
Address	No. 701/6, Kinh Duong Vuong Street, Dist 6, Hochiminh City
Tel	(84-8) 751 6115
Fax	(84-8) 751 3771
Email	Liksinlabel@hcm.vnn.vn
4. NAME	LIKSIN GENERAL PRINTING JOINT-STOCK COMPANY
Vietnamese Name	CONG TY CP IN TONG HOP LIKSIN
Address	No. 701/6, Kinh Duong Vuong Street, Dist 6, Hochiminh City
Tel	(84-8) 750 9914
5. NAME	LIKSIN NORTHERN PACKAGING FACTORY
Vietnamese Name	NHA MAY BAO BI LIKSIN PHUONG BAC
Address	Tien Son Industrial Zone, Bac Ninh province
Tel	(84-241) 710 433
6. NAME	LIKSIN INK AND CHEMICAL ENTERPRISE
Vietnamese Name	XI NGHIEP MUC VA HOA CHAT LIKSIN
Address	No. 784, Hong Bang Street, Dist 11, Hochiminh City
Tel	(84-8) 855 0283
Fax	(84-8) 963 0045
Total Area	1,400 sqm
7. NAME	CONG TY TNHH PHAT TAI
Former name	LIKSIN LOTTERY TICKET PRINTING ENTERPRISE
Former VN name	XI NGHIEP IN VE SO LIKSIN
Address	No.80/8C, National Road 1, An Lac Town, Hochiminh City
Tel	(84-8) 875 9535/ 875 3142,
Total Area	1,200 sqm
8. NAME	DONG NAM VIET PACKAGING CO., LTD
Vietnamese Name	CONG TY TNHH BAO BI DONG NAM VIET
Address	3^rd Fl, 64-66 Ton That Tung Street, Ben Thanh Ward, Dist 1, Hochiminh City
Tel	(84-8) 925 6014
9. NAME	SAIGON INK JOINT STOCK COMPANY-SAIGONMIC
Vietnamese Name	CONG TY CO PHAN MUC IN SAI GON
Address	No. 784, Hong Bang Street, Dist 11, Hochiminh City
Tel	(84-8) 855 0283
Fax	(84-8) 963 0045
10. NAME	BAC TRUNG NAM PACKAGING SERVICE TECHNOLOGY TRADE CO., LTD
Vietnamese Name	CONG TY TNHH DV-TM-KT BAO BI BAC TRUNG NAM
Address	No. 76, Ton That Tung Street, Ben Thanh Ward, Dist 1, Hochiminh City
Tel	(84-8) 833 0705
11. NAME	AN THINH LIKSIN TRADING CO., LTD
Vietnamese Name	CONG TY TNHH THUONG MAI AN THINH-LIKSIN
Address	No.64-66, Ton That Tung Street, Dist 1, Hochiminh City
Tel	(84-8) 833 0705
Fax	(84-8) 925 6255
Email	anthinhliksin@vnn.vn
DIRECTORS
1. NAME	Mr. NGUYEN THANH LAP
Position	Chairman
Qualification	Management
Resident	Hochiminh City-Vietnam
Nationality	Vietnamese
2. NAME	Mr. NGUYEN NGOC SANG
Position	General Director
Qualification	Management
Resident	Hochiminh City-Vietnam
Nationality	Vietnamese
3. NAME	Mr. NGO VAN HOA
Position	Deputy General Director
Qualification	Economic Bachelor
Resident	Hochiminh City-Vietnam
Nationality	Vietnamese
4. NAME	Mr. LE DANG QUANG
Position	Chief accountant
Qualification	Economic Bachelor
Resident	Hochiminh City-Vietnam
Nationality	Vietnamese
Tel	(84-8) 751 2562 (Ext: 124)
BUSINESS NATURE AND ACTIVITIES
The subject specializes in printing and packaging production
Registered operation items:
Producing and trading in products of printing plates, packages, ink, printing chemical, papers and paper raw materials, flexible packaging, paper packaging and high grade labels Producing & trading in products of prepress, printing, packaging, inks & chemicals, papers & raw materials. Import-Export raw materials, equipments & packaging products House business; Service transferring right of land use; Renting out house, workshop, storehouse, stores, shops; Building industrial & civil projects, ground, internal road, house repair; razing to the ground
Liksin’s products:
Flexible packaging - mono-layer or multi-layer from materials such as PP, PE, OPP, nylon, pet, metallized, paper... Paper packaging - paperboards, carton-boards, Bristol, couchee, special coated papers for the automatic packing lines with the followed products: Labels - paper, self-adhesive paper (stickers), plastic labels for automatic labelling lines or hand-labelling
IMPORT & EXPORT CATIVITIES
IMPORT: The Subject imports raw materials from Asian countries such as: Japan, South Korea and Thailand
EXPORT: The Subject exports its products to Australia and USA
BANKERS
1. EASTERN ASIA COMMERCIAL JOINT STOCK BANK
Address	No. 155, Su Van Hanh Street, Ward 13, Dist 10, Hochiminh City
Country	Vietnam
Tel	((84-8) 8634130 – 8634131 – 8634132
Fax	(84-8) 8654306
Swift	EACBVNVX
Subject’s account No	00000.844.000.1 (VND) 00000.844.000.3 (USD)
2. DEUTSCHE BANK
Address	No. 65, Le Loi Street, Ben Nghe Ward, Dist 1, Hochiminh City
Country	Vietnam
Tel	(84-8) 822 2667
Fax	(84-8) 829 3865
3. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM (INCOMBANK) BRANCH NO. 6
Address	No. 78 – 80, Thap Muoi Street, Ward 2, Dist 6, Hochiminh City
Country	Vietnam
Tel	(84-8) 856 1196
Fax	(84-8) 856 1755
4. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address	No. 29, Ben Chuong Duong Street, Hochiminh City
Country	Vietnam
Tel	(84-8) 825 1317
Fax	(84-8) 829 7228
Telex	811234/5 VVB-VT
Swift	BFTVVBVX 007
SHAREHOLDER (S)
The Subject is a State Owned Enterprises: 100 percent of State owned shares.
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Normal
Liquidity	Fair
Previous Payment Status	Fair
Current Payment Status	Fairly prompt
Past Financial Situation	Fair
Current Financial Situation	Fairly good
Legal Action	No recorded
Bankruptcy	No recorded
Reputation	Fair
Methods of Payment	Direct payment or through its corresponding bank. Foreign remittance by letter of credit (l/c), by telegraphic transfer (t/t) or barter
Sales methods	Direct to clients & through its network agents

FINANCIAL DATA

BALANCE SHEET
Unit: Million VND
Balance Sheet Date		31/12/2006
Number of Weeks		52
A -	CURRENT ASSETS	386,590
I.	Cash and cash equivalents	30,943
1.	Cash	30,943
2.	Cash equivalents	0
II.	Short-term investments	120,977
1.	Short-term investments	120,977
2.	Provisions for short-term investment of short- term investments in securities	0
III.	Accounts receivable	152,879
1.	Receivable from customers	109,823
2.	Repayments to suppliers	41,994
3.	Inter- company receivable	0
4.	Receivable according to the process of construction contracts	0
5.	Other receivable	6,357
6.	Provisions for bad debts	-5,295
IV.	Inventories	79,174
1.	Inventories	81,491
2.	Provisions for devaluation of inventories	-2,317
V.	Other current assets	2,617
1.	Short-term repaid expenses	1,691
2.	Taxes receivable	926
3.	Other current assets	0
B -	LONG TERM ASSETS	475,044
I.	Long term accounts receivable	0
1.	Long term accounts receivable from customers	0
2.	Long term inter- company receivable	0
3.	Other long term receivable	0
4.	Provisions for bad debts	0
II.	Fixed assets	157,696
1.	Tangible assets	137,694
	Historical costs	377,935
	Accumulated depreciation	-240,241
2.	Financial leasehold assets	1,020
	Historical costs	1,699
	Accumulated depreciation	-679
3.	In-tangible assets	17,667
	Historical costs	18,130
	Accumulated depreciation	-463
4.	Construction in progress	1,315
III.	Investment property	0
	History costs	0
	Accumulated depreciation	0
IV.	Long term investments	302,850
1.	Investments in affiliates	95,153
2.	Investments in business concerns and joint ventures	51,684
3.	Other long term investments	166,613
4.	Provisions for devaluation of investments in securities	-10,600
V.	Other long term assets	14,498
1.	Long term repaid expenses	14,338
2.	Deferred income tax	0
3.	Other long term assets	160
	TOTAL ASSETS	861,634
A -	LIABILITIES	170,609
I.	Short term liabilities	122,456
1.	Short term debts and loans	42,955
2.	Payable to suppliers	22,964
3.	Advances from customers	15,150
4.	Taxes and other obligations to the State Budget	15,258
5.	Payable to employees	17,345
6.	Accrued expenses	3,767
7.	Inter- company payable	0
8.	Payable according to the progress of construction contracts	0
9.	Other payables	5,017
II.	Long term liabilities	48,153
1.	Long term account payable to suppliers	0
2.	Long term inter- company payable	0
3.	Other long term payable	0
4.	Long term debts and loans	46,255
5.	Deferred income tax	0
B -	OWNER’S EQUITY	691,025
I.	Owner’s equity	612,152
1.	Capital	567,898
2.	Share premiums	0
3.	Treasury stocks	0
4.	Differences on asset re-valuation	0
5.	Foreign exchange differences	34,196
6.	Business promotion fund	8,213
7.	Financial reserved fund	0
8.	Other funds	0
9.	Retained earnings	0
II.	Other sources and funds	78,873
1.	Bonus and welfare funds	24,355
2.	Sources of expenditure	54,518
3.	Funds to form fixed assets	0
	TOTAL LIABLITIES AND OWNER’S EQUITY	861,634
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
		F/Y 2006
1.	Sales	541,626
2.	Deductions	4,304
3.	Net sales	537,322
4.	Costs of goods sold	500,748
5.	Gross profit	36,574
6.	Financial income	26,309
7.	Financial expenses	10,936
8.	Selling expenses	13,747
9.	Administrative overheads	21,875
10.	Net operating profit	16,325
11.	Other income	7,161
12.	Other expenses	1,090
13.	Other profits	6071
14.	Profit (loss) before tax	22,396
15.	Income tax	5124
16.	Profit (loss) after tax	17,272
FINANCIAL FACTORS
Description		FY 2005
Current Liquidity Ratio		3.16
Quick Liquidity Ratio		2.51
Inventory Circle		6.32
Average Receive Period		103.85
Utilizing Asset Performance		0.62
Liability / Total Asset (%)		19.80
Liability / Owner's Equity (%)		24.69
Income Before Tax / Total Asset (%) ROA		2.60
Income Before Tax / Owner's Equity (%) ROE		3.24
Income Before Tax / Total Revenue (%) NPM		4.13
Gross Profit / Total Revenue (%) GPM		6.75
INTERPRETATION ON THE SCORES
Liksin Corporation is a State owned enterprise. It was established in 1978 with the name of General Printing Factory. With many years of re-organization and new way of operation, the subject has developed fast. It has created high profits. The subject is improving its management to be more effective. Especially, its products have reached high quality standards and satisfied requirements of local and foreign consumers. Its products also have been chosen the Vietnam top quality products for many successive years and the subject was granted an ISO – 9002 certificate. The premises of the subject are average. The subject's financial situation is fairly good. Its turnover & capability is remarkable. The subject has good growth in recent years. Although the subject is a State owned enterprise, administrative management capabilities are fairly good. Its market share is relative large. At the moment, the subject has a wide agent network in Hochiminh city and other cities, provinces. And there are some subsidiaries of subject are being equitized to be joint stock companies. The position of the company in the industry is considerable. The subject has bright future for development. It has capacity to meet all the normal financial commitments.
To be rated at BBB, the company has ADEQUATE capacity to meet financial commitments

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.	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%)

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