MIRA INFORM REPORT

Report Date :

21.08.2007

IDENTIFICATION DETAILS

Name :	MINH QUANG INVESTMENT COMPANY LIMITED
Registered Office :	No. 14 Tran Cao Van Str, Pho Hue Ward, Hai Ba Trung Dist, Hanoi
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	2004
Legal Form :	Liability Limited Company
Line of Business :	Trading in electric machinery, equipment and spare part, nonferrous metal, manufacturing electronic cable and charging gas.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Small Company
Payment Behaviour :	Usually correct
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name			MINH QUANG INVESTMENT COMPANY LIMITED
Vietnamese Name			CONG TY TNHH DAU TU MINH QUANG
Abbreviation			MQ INVESTMENT CO., LTD
Type of Business			Liability Limited Company
Founded			2004
Business Registration			0102012679
Date of Issuance			May 31^st, 2004
Place of Issuance			Hanoi Planning and Investment Department
Registration Capital			39,000,000,000 VND
Tax Code			0101499233
Total Employees			10 Employees
Qualification			Qualified
ADDRESS
Head Office
Address			No. 14 Tran Cao Van Str, Pho Hue Ward, Hai Ba Trung Dist, Hanoi
Tel			(84-4) 9362594
Fax			(84-4) 9362595
Email			mqinvestment@vnn.vn
Website			www.mqinvestment.com
Transaction Office
Address			Room 302, N5A Building, Hoang Dao Thuy Str, Trung Hoa Village, Hanoi City, Vietnam
Tel			(84-4) 5568636
Fax			(84-4) 5568635
DIRECTORS
1. NAME			Mr. NGUYEN ANH QUANG
Position			Director
Date of Birth			January 01^st, 1976
ID No.			012028253
Date of Issuance			October 21^st, 2005
Place of issuance			Hanoi Police
Hand Phone			+84903231166
Nationality			Vietnamese
BUSINESS NATURE AND ACTIVITIES
The Subject is specializing in trading in electric machinery, equipment and spare part, nonferrous metal, manufacturing electronic cable and charging gas.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports from Japan, Nigeria, Korea
EXPORT: N/A
BANKERS
1. SOUTHEAST ASIA BANK VIETNAM
Address	No. 350 Bach Mai Str, Hai Ba Trung Dist, Hanoi City
Tel	(84-4) 6274925
Fax	(84-4) 6274926
Acc. No.	17002210
2. INCOMBAK
Address	No. 37 Hang Bo Str, Hoan Kiem Dist, Hanoi City
Tel	(84-4) 8254276
Acc. No.	No. 102010000043177
SHAREHOLDERS
1. Name	Mr. NGUYEN ANH QUANG
Position	Director
Resident	No.5, Alley 2, Group 1A, Cau Dien Town, Tu Liem Dist, Hanoi City
Nationality	Vietnamese
Share	90%
Value	35,100,000,000 VND
2. Name	Mss. TRAN NGOC ANH
Position	Chief accountant
Nationality	Vietnamese
Share	10%
Value	3,900,000,000 VND
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Fairly good
Liquidity		Fair
Previous Payments		Average
Payment status		Normal
Past Financial Situation		Average
Current Financial Situation		Average
Legal Action		No recorded
Bankruptcy		No recorded
Public opinion		Normal
Payment Method		T/T, L/C
FINANCIAL DATA
BALANCE SHEET
Unit :1,000,000VND
Balance Sheet Date				31/12/2006
ASSETS
A. Current assets & Short term Investment				17,009
I. Cash and cash equivalents				294
II. Short term investment				0
1. Short-term securities investment				0
2. Other short-term investment				0
3. Provision for devaluation of short-term investment				0
III. Receivables				7,050
1. Receivables from customers				5,000
2. Prepaid for providers				2,050
3. Value-added tax deducted				0
4. Internal receivables				0
5. Other receivables				0
6. Provision for bad receivables				0
IV. Inventory				1,625
1. Purchased goods in transit				1,625
2. Inventory raw materials				0
3. Inventory appliance				0
4. Cost for production and business in process				0
5. Inventory finished products				0
6. Inventory cargoes				0
7. Entrusted goods for sale				0
8. Provision for devaluation of stocks
V. Other current assets				8,040
1. Advances				0
2. Prepaid expenses				307
3. Pending expenses for transfer				16
4. Pending assets				7,717
5. Hypothecation, collateral and short run collateral
VI. Administrative				0
1. Administrative expenses for previous year				0
2. Administrative expenses for current year				0
B. Fixed assets & Long term investment				12,802
I. Fixed assets				1,749
1. Tangible fixed assets				1,749
+ Original cost				1,864
+ Accumulated depreciation value				-115
2. Financial leasing fixed assets				0
+ Original cost				0
+ Accumulated depreciation value				0
3. Intangible fixed assets				0
+ Original cost				0
+ Accumulated depreciation value				0
II. Long term investment				11,000
1. Long-term securities investment				0
2. Joint-venture capital contribution				11,000
3. Other long-term investment				0
4. Provision for long-term investment devaluation				0
III. Capital construction in process				0
IV. Other				53
TOTAL ASSETS				29,811
LIABILITIES
A. Payables				4,940
I. Short term payables				4,400
1.Short-term borrowings				4,400
2. Due long-term liabilities				0
3. Payable to seller				0
4. Prepaid buyer				0
5. Taxes and accounts dutiable				0
6. Employee payments				0
7. Internal payments				0
8. Other payables				0
II. Long term payables				540
1. Long-term borrowing				540
2. Long-term loans				0
III. Other liabilities				0
1. Disbursement payable				0
2. Pending assets				0
3. Receipts long-term collateral and deposit				0
B. Owner’s Equity				24,871
I. Capital and Funds				24,871
1. Working capital				25,000
2. Differences from assets revaluation				0
3. Exchange rate differences				0
4. Business development fund				0
5. Reserved fund				0
6. Retained profit				-129
7. Construction capital sources
II. Other administrative and fund sources				0
1. Provident funds for unemployment				0
2. Welfare and reward funds				0
3. Management funds of higher level				0
4. Functional operation funds				0
5. Fund sources formed by fixed assets				0
TOTAL LIABILITY AND EQUITY				29,811
PROFIT AND LOSE ACCOUNT
Description				FY 2006	FY 2005
Total Revenue				29,187	12,462
Deductions Items				0
- Discount
- Devaluation of sale price
- Return of sold goods
- Turnover tax, excise tax, import and export duties to be paid
1. Net revenue				29,187	12,462
2. Original rate of goods for sale				28,630	12,251
3. Combined Profit				557
4. Sales costs				0
5. Enterprise administrative costs				423	190
6. Net income from business activity				134
Income from financial activities				10
Costs for financial activities				135	108
7. Net income from financial operation				-125
Irregular income				0
Irregular expenditure				0
8. Irregular Profit				0	0
9. Total pre-tax profit				9	-88
10. Income tax				2
11. After tax profit				7	-88
FINANCIAL FACTORS
Description				2006
Current liquidity ratio				3.87
Quick Liquidity ratio				3.50
Inventory circle				17.62
Average receive period				88.16
Utilizing Asset Performance				0.98
Liability/ Total Asset (%)				16.57
Liability/ Owner’s equity (%)				19.86
Income before tax/ Total asset (%) ROA				0.03
Income before tax/ Owner’s equity (%) ROE				0.04
Income before tax/ Total revenue (%) NPM				0.03
Gross Profit / Total revenue (%) GPM				1.91
INTERPRETATION
Minh Quang Investment Company Limited was established in 2004 with registration capital of 39 billion VND. The subject has registered many different business operations such as: Production, trading of electric machinery, equipment and spare part; sound recoding and reproduction machine, production ans trading of fibre, artificial filament fibre; trading of wasted materials; goods and passenger transportation etc… At present, the subject is specializing in trading in electric machinery, equipment and spare part, nonferrous metal, manufacturing electronic cable and charging gas. Its goods are mainly imported from Japan, Nigeria and Korea. The given address (14 Tran Cao Van Str, Hanoi City) is head office of the subject. Most of business transactions are happened at room 302, N5A building, Hoang Dao Thuy Str, Trung Hoa Village, Hanoi City. The premises and facilities of the subject are normal. The activities at subject are fairly busy. Mr. Nguyen Anh Quang – director is young and dynamic man. There are about 10 staffs working for the subject. It has worked effectively. Its turnover increases year by year. Financial ratios are fairly good. In short, the subject has worked fairly effectively. It is a small-medium company in this field. Financial capacity and solvency of the subject is acceptable. The subject is capable to meet small commitments. Caution needed for normal and big business transactions.

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%)

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