MIRA INFORM REPORT

Report Date :

27.08.2007

IDENTIFICATION DETAILS

Name :	SHINHAN VINA COMPANY LIMITED
Registered Office :	Lot D2-2, Long Binh Industrial Zone, Road 15A, Long Binh Ward, Bien Hoa City, Dong Nai Province
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	2004
Legal Form :	Foreign Invested Company
Line of Business :	Manufacturing and trading in adhesives for Padding, Non-woven, felt, paint, Woodworking, Construction, Attachment with paper, Pipe with paper and Grinding.

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 :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name			SHINHAN VINA COMPANY LIMITED
Vietnamese name			CONG TY TNHH SHINHAN VINA
Trade Name			SHINHAN VINA CO.,LTD
Founded			2004
Type of Business			100% Foreign Invested Company
Investment License			No 270/GP-KCN-DN
Date of Issuance			February 25^th 2004
Place of Issuance			Dong Nai Industrial Zones Authority
Current Investment Capital			2,505,000 USD
Former Investment Capital			820,000 USD
Current Legal Capital			1,931,000 USD
Former Legal Capital			246,000 USD
Tax code			No. 3600672129
Total Employees			40 persons
Qualification			Normal
ADDRESSES
Head Office
Address	Lot D2-2, Long Binh Industrial Zone, Road 15A, Long Binh Ward, Bien Hoa City, Dong Nai Province
Country	Vietnam
Tel	(84-613) 994128 / 994130
Fax	(84-613) 994231
DIRECTORS
1. NAME	Mr. JEONG WOO SEOK
Position	Director
Contact Address	Lot D2-2, Long Binh Industrial Zone, Road 15A, Long Binh Ward, Bien Hoa City, Dong Nai Province
Nationality	Korean
BUSINESS NATURE AND ACTIVITIES
The subject focuses on the following activities: Manufacturing and trading in adhesives for Padding, Non-woven, felt, paint, Woodworking, Construction, Attachment with paper, Pipe with paper and Grinding.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports from Korea, Europe.
EXPORT: The subject exports products to Indonesia, Myanmar, Bangladesh, India, Pakistan and Sri-Lanka.
BANKERS
1. VIETCOMBANK – DONG NAI BRANCH
Address		No. 77C Hung Dao Vuong Str, Bien Hoa City, Dong Nai Province
Tel		Vietnam
Fax		(84- 61) 3823666
Swift		(84-61) 3824191
Account No.		0121370804139
SHAREHOLDER
The subject is a 100% foreign invested company. Following is its investor:
1. Name		SHINHAN CHEMICAL COMPANY LIMITED
Address		No. 696-6 Gojan-Dong, Nam Dong-Gu, Inchoen-City, Korea
Country		South Korea
Tel		82-328120074/ 8210075
Fax		82-328120076
Share		100%
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Average
Liquidity		Normal
Payments		Average
Financial Situation		Average
Development trend		Average
Litigation Data		No reported
Bankruptcy		No reported
Payment Method		TT, L/C (Mostly), D/P
Sale Method		Supplying for project and customers
FINANCIAL DATA
BALANCE SHEET
Unit: 01 VND
Balance Sheet Date					31/12/2005
Number of Weeks					52
ASSETS
A. Current assets & Short term Investment					15,664,391,296
I. Cash and cash equivalents					1,033,276,471
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					7,774,614,548
1. Receivables from customers					7,275,032,183
2. Prepaid for providers					477,462,365
3. Value-added tax deducted					0
4. Internal receivables					0
5. Other receivables					22,120,000
6. Provision for bad receivables					0
IV. Inventory					4,946,348,124
1. Purchased goods in transit					0
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					4,946,348,124
7. Entrusted goods for sale					0
8. Provision for devaluation of stocks					0
V. Other current assets					1,910,152,153
1. Advances					0
2. Prepaid expenses					0
3. Pending expenses for transfer					0
4. Pending assets					0
5. Hypothecation, collateral and short run collateral					1,910,152,153
VI. Administrative					0
1. Administrative expenses for previous year					0
2. Administrative expenses for current year					0
B. Fixed assets & Long term investment					30,193,316,817
I. Fixed assets					21,099,143,427
1. Tangible fixed assets					21,099,143,427
+ Original cost					-
+ Accumulated depreciation value					-
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					0
1. Long-term securities investment					0
2. Joint-venture capital contribution					0
3. Other long-term investment					0
4. Provision for long-term investment devaluation					0
III. Capital construction in process					0
IV. Other					9,094,173,390
TOTAL ASSETS					45,857,708,113
LIABILITIES
A. Payables					29,642,072,698
I. Short term payables					22,390,568,987
1.Short-term borrowings					251,556,479
2. Due long-term liabilities					0
3. Payable to seller					14,150,505,500
4. Prepaid buyer					707,005,000
5. Taxes and accounts dutiable					116,889,316
6. Employee payments					211,835,000
7. Internal payments					6,952,777,692
8. Other payables					0
II. Long term payables					0
1. Long-term borrowing					0
2. Long-term loans					0
III. Other liabilities					7,251,503,711
1. Disbursement payable					7,251,503,711
2. Pending assets					0
3. Receipts long-term collateral and deposit					0
B. Owner’s Equity					16,215,635,415
I. Capital and Funds					16,215,635,415
1. Working capital					20,267,599,690
2. Differences from assets revaluation					0
3. Exchange rate differences					0
4. Business development fund					0
5. Reserved fund					0
6. Retained profit					-4,051,964,275
7. Construction capital sources					0
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					45,857,708,113
PROFIT AND LOSE ACCOUNT
Description				FY 2005
Total revenue				15,407,961,800
Deductions Items				0
- Discount				0
- Devaluation of sale price				0
- Return of sold goods				0
- Turnover tax, excise tax, import and export duties to be paid				0
1. Net revenue				15,407,961,800
2. Cost of goods sold				15,665,334,380
3. Gross Profit				-257,372,580
4. Income from financial activities				11,823,611
5. Expense from financial activities				108,749,189
In there: Interest expense				0
6. Sale expense				636,389,499
7. Administration expense				3,086,951,792
8. Income from business activities				-4,077,639,449
9. Other incomes				44,293,451
10. Other expenses				18,618,277
11. Other profit				25,675,174
12. Total profit before tax				-4,051,964,275
13. Income tax				0
14. Profit after income tax				-4,051,964,275
FINANCIAL FACTORS
Description					2005
Current liquidity ratio					0.70
Quick Liquidity ratio					0.48
Inventory circle					6.33
Average receive period					184.17
Utilizing Asset Performance					0.34
Liability/ Total Asset (%)					64.64
Liability/ Owner’s equity (%)					182.80
Income before tax/ Total asset (%) ROA					-8.84
Income before tax/ Owner’s equity (%) ROE					-24.99
Income before tax/ Total revenue (%) NPM					-26.30
Gross Profit / Total revenue (%) GPM					-1.67
INTERPRETATION
The subject is a 100% foreign owned company. It received the investment license in February 2004. After a year of building the factory, the subject started production in May 2005. The subject, in fact, is a factory of Shinhan Chemical Company which located in Korea. This factory has responsibility for manufacture and supplying products in Vietnam, South Asian and Southeast Asian markets. At the moment, the subject is focusing on manufacture of chemical materials for textile industry. The current position in the industry of the subject is average. The premises of the subject are large. The subject specializes in manufacturing acrylic, resins (for padding) wadding, non woven, felt, paint, construction, wood working. Its factory is located in Long Binh Industrial Zone (Loteco), Bien Hoa city. This area is also the location of many industrial chemical companies. Although the subject is newly established, its market share is large. Currently, the subject supplies its products to many garment companies in the North and the South of Vietnam. It occupies about 80 percent of padding in domestic market. The subject also exports at least 60 percent to Asian and Southeast Asian country. In Korea, its parent company is also considered as a large company in padding products in Korea. The subject’s management capacity is above average. Its staffs are graded at normal. The future prospect of the subject seems above average. In general, the financial and operational capacity of the subject is considered average. The business history is not long but it has created a stable and developing operations. The subject has capacity to meet financial commitments and no caution needed for small 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