MIRA INFORM REPORT

Report Date :

26.12.2007

IDENTIFICATION DETAILS

Name :	TAICERA ENTERPRISE COMPANY LIMITED
Registered Office :	Go Dau Industrial Zone, Phuoc Thai Commune, Long Thanh Dist, Dong Nai Province
Country :	Vietnam
Financials (as on) :	30.09.2007
Date of Incorporation :	1994
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and trading glazed tile.

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 :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	TAICERA ENTERPRISE COMPANY LIMITED
Vietnamese name	CONG TY CO PHAN HUU HAN CONG NGHIEP GOM SU TAICERA
Trade Name	TAICERA
Stock symbol	TCR
Type of Business	Joint stock company
Former type of business	100% foreign owned enterprise
Foundation	1994
Original Invested license No.	764/GP
Date of Issuance	January 11^th, 1994
Place of Issuance	Ministry of Planning and investment department
Revised invested license	764-CPH/GP
Issued on	August 9^th, 2005
Issued by	Ministry of Planning and investment department
Business registration No	472033000016 DC
Issued on	December 22^nd, 2006
Issued by	Ministry of Planning and investment department
Former Business registration	No. 472033000016
Issued on	November 10^th, 2006
Issued by	Ministry of Planning and investment department
Registered capital	299,074,000,000,000 VND
Current Invested capital	66,166,667 USD
Former invested capital	49,500,000 USD
Original Invested Capital	19,500,000 USD
Current legal capital	19,850,000 USD
Former legal capital	14,850,000 USD
Original legal capital	8,500,000 USD
Current invested duration	50 years
Original duration	30 years
Tax Code	3600254051
Total Employees	750 employees
Qualification	Average
ADDRESS
Head Office
Address	Go Dau Industrial Zone, Phuoc Thai Commune, Long Thanh Dist, Dong Nai Province
Country	Vietnam
Tel	(84-61) 3841594 / 97
Fax	(84-61) 3841592
Email	tcr@hcm.vnn.vn
Website	www.taicera.com
Hochiminh city branch
Address	No. 247, Ly Thuong Kiet Str, Ward 15, Dist 11, Hochiminh City
Country	Vietnam
Tel	(84-8) 8661293
Fax	(84-8) 8661281
Email	tcrhcm@hcm.fpt.vn
Hanoi Branch
Address	No. 44, Lac Trung Street, Hai Ba Trung District, Hanoi City
Country	Vietnam
Tel	(84-4) 2780510 / 11 / 13 / 15
Fax	(84-4) 2780512 / 14
DIRECTORS
1. NAME	Mr. CHEN SIN SIANG
Position	Chairman
Date of birth	June 1^st, 1946
Resident	118, Datong Rd, Hsinchu, Taiwan (R.O.C)
Current Resident	Hochiminh city
Nationality	Taiwan (R.O.C)
2. NAME	Mr. CHEN CHENG JEN
Position	General director
Date of birth	April 8^th, 1949
Resident	2F., No. 405, Yingtao Rd, Yingge Towhsip, Taipei Country, Taiwan (R.O.C)
Nationality	Taiwan (R.O.C)
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in manufacturing and trading glazed tile
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports materials for production from Italy
EXPORT: Its products are exported to Australia, Japan, Korea, Singapore, Thailand, Philippine, Malaysia, Myanmar, USA, India and Cambodia
BANKERS
1. VIETCOMBANK
Address	No. 29, Ben Chuong Duong Street, District 1, Hochiminh City
2. SACOMBANK
Address	No. 178, Nam Ky Khoi Nghia Street, District 3, Hochiminh City
3. HONG KONG AND SHANGHAI BANK (HSBC)
4. BANGKOK BANK
SHAREHOLDERS
Following are its founders
1. NAME	Mr. CHEN SIN SIANG
Position	Chairman
Current Resident	Hochiminh city
Date of birth	June 1^st, 1946
Resident	118, Datong Rd, Hsinchu, Taiwan (R.O.C)
Share	1,041,859 shares
2. Name	Mr. CHEN WEN CHIA
Position	Shareholder
Nationality	Taiwan
Share	100,019 shares
3. Name	MS. LIN YU LAN
Position	Shareholder, Boards of director
Nationality	Taiwan
Share	100,019 shares
4. Name	MS. CHENG YEU CHYI
Position	Shareholder, Boards of director
Nationality	Taiwan
Share	100,019 shares
5. Name	UNION TIME
Share	8,751,599 shares
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Good
Liquidity	Good
Previous Payments	Fairly prompt
Payment status	Prompt
Past Financial Situation	Fairly good
Current Financial Situation	Good
Litigation Data	No recorded
Bankruptcy	No recorded
Public opinion	Good
Payment Methods	Through its bank
FINANCIAL DATA
And following is its financial statement in the third period in 2007
BALANCE SHEET
Unit: 1 VND
Balance sheet date							30/9/2007
Number of weeks							40
A. Working assets & short-term Investment							628,343,919,474
I. Cash and cash equivalents							89,605,553,307
II. Short-term investment
1. Short-term securities investment
2. Other short-term investment
3. Provision for short-term investment
III. Receivables							163,216,919,075
1. Receivables from customers							127,881,103,461
2. Prepayment for providers							43,659,488,600
3. Value-added tax deducted
4. Internal receivables
5. Other receivables							13,241,700
6. Provision for bad receivables							-8,336,914,686
IV. Inventory							316,704,849,100
1. Purchased goods in transit
2. Raw materials
3. Instrument, tools
4. Cost for production and business in process
5. End products
6. Goods							316,704,849,100
7. Goods on consignment
8. Provision for devaluation of stocks
V. Other current assets							58,816,597,992
1. Advances
2. Prepaid expenses							3,914,669,096
3. Pending expenses for transfer							4,635,345,168
4. Pending assets							1,895,036,928
5. Mortgage, collateral and short run collateral							48,371,546,800
VI. Administrative
1. Administrative expenses for previous year
2. Administrative expenses for current year
B. Fixed assets & Long term investment							530,495,999,355
I. Fixed assets							420,523,591,555
1. Tangible fixed assets							420,523,591,555
+ Original cost							761,490,802,560
+ Accumulated depreciation value							-340,967,211,005
2. Financial leasing fixed assets
+ Original cost
+ Accumulated depreciation value
3. Intangible fixed assets
+ Original cost
+ Accumulated depreciation value
II. Long term investment
1. Long-term securities investment
2. Joint-venture capital contribution
3. Other long-term investment
4. Provision for long-term investment devaluation
III. Capital construction in process							101,515,704,600
IV. Other							8,456,703,200
TOTAL ASSETS							1,158,839,918,829
A. Payable loans							583,108,362,393
I. Short term payables							316,078,898,293
1. Short-term borrowings							178,300,495,600
2. Due long-term liabilities
3. Payables to supplier							106,299,472,600
4. Prepayment of buyer							4,458,356,200
5. Taxes and accounts dutiable							213,406,732
6. Employee payments							4,391,593,483
7. Internal payables							20,719,462,519
8. Other payables							1,696,111,159
II. Long term loans							267,029,464,100
1. Long-term borrowings							104,399,900
2. Long-term payables							266,925,064,200
III. Other payables
1. Payable expenses
2. Pending assets
3. Receipts long-term collateral and deposit
B. Owner’s Equity							575,731,556,436
I. Capital and Funds							575,731,556,436
1. Working capital							335,704,250,000
2. Differences from asset revaluation							-670,000
3. Exchange rate differences							2,905,319,200
4. Development investment funds							11,621,276,700
5. Reserved funds							86,520,960,000
6. Retained profit							138,980,420,536
7. Construction capital sources
II. Other administrative and fund sources
1. Provident funds for unemployment
2. Reward and welfare funds
3. Management funds of higher level
4. Functional operation funds
5. Fund sources formed by fixed assets
TOTAL LIABILITY AND EQUITY							1,158,839,918,829
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
Description							3^rd period of 2007
Total revenue							345,792,184,543
Deductions Items							1,392,709,626
- Discount							0
- Devaluation							0
- Return of sold goods							0
- Turnover tax, Luxury tax & Export tax							0
1. Net revenue							344,399,474,917
2. Cost of goods sold							259,312,729,973
3. Gross Profit							85,086,744,944
4. Sales expenses							7,767,911,310
5. Enterprise administrative expenses							37,343,006,654
6. Net income from business activities							39,975,826,980
Income from financial activities							5,127,374,830
Expenditure from financial activities							15,623,997,100
7. Net income from financial operation							-10,496,622,270
Irregular income							104,140,400
Irregular expenditure							20,572,800
8. Irregular Profit							83,567,600
9. Total pre-tax profit							29,562,772,310
10. Income tax							2,217,207,923
11. After tax profit							27,345,564,387
FINANCIAL FACTORS
Description							3^rd period of 2007
Current Liquidity Ratio							1.99
Quick Liquidity Ratio							0.99
Inventory Circle							0.82
Average Receive Period							172.98
Utilizing Asset Performance							0.30
Liability / Total Asset (%)							50.32
Liability / Owner’s Equity (%)							101.28
Income Before Tax / Total Asset (%) ROA							2.55
Income Before Tax / Owner’s Equity (%) ROE							5.13
Income Before Tax / Total Revenue (%) NPM							8.55
Gross Profit / Total Revenue (%) GPM							24.61
Following is its financial statement in three years 2006, 2005 and 2004
BALANCE SHEET
Unit: 1 VND
Balance sheet date		31/12/2006			31/12/2005			31/12/2004
Number of weeks		52			52			52
A. Working assets & short-term Investment		544,657,167,316			336,183,585,129			248,825,735,005
I. Cash and cash equivalents		181,508,145,850			19,917,345,134			13,016,716,055
II. Short-term investment
1. Short-term securities investment
2. Other short-term investment
3. Provision for short-term investment
III. Receivables		93,894,013,290			157,738,642,094			83,680,073,748
1. Receivables from customers		92,532,217,871			135,618,512,434			68,640,530,033
2. Prepayment for providers		9,853,480,016			36,876,463,960			2,939,108,085
3. Value-added tax deducted								11,366,149,881
4. Internal receivables
5. Other receivables								782,060,831
6. Provision for bad receivables		-8,491,684,597			-14,756,334,300			-47,775,082
IV. Inventory		236,287,328,800			133,119,735,571			149,870,847,954
1. Purchased goods in transit								2,563,709,000
2. Raw materials								55,827,109,500
3. Instrument, tools								4,382,200
4. Cost for production and business in process								9,485,164,933
5. End products								82,239,286,600
6. Goods		236,287,328,800			133,119,735,571			104,134,321
7. Goods on consignment
8. Provision for devaluation of stocks								-352,938,600
V. Other current assets		32,967,679,376			25,407,862,330			2,258,097,248
1. Advances					14,195,301,732
2. Prepaid expenses		3,937,030,371			5,832,331,600
3. Pending expenses for transfer		17,734,840,300			5,070,750,000
4. Pending assets		9,621,923,958			309,478,998
5. Mortgage, collateral and short run collateral		1,673,884,747
VI. Administrative
1. Administrative expenses for previous year
2. Administrative expenses for current year
B. Fixed assets & Long term investment		504,684,613,032			233,226,012,042			230,496,052,553
I. Fixed assets		186,325,004,451			207,003,468,294			186,325,004,451
1. Tangible fixed assets		186,325,004,451			207,003,468,294			227,417,251,383
+ Original cost		496,186,887,990			483,870,723,679			471,433,707,814
+ Accumulated depreciation value		-309,861,883,539			-276,867,255,385			-244,016,456,431
2. Financial leasing fixed assets
+ Original cost
+ Accumulated depreciation value
3. Intangible fixed assets
+ Original cost
+ Accumulated depreciation value
II. Long term investment		0			340,380,000			519,952,200
1. Long-term securities investment		0			340,380,000
2. Joint-venture capital contribution
3. Other long-term investment
4. Provision for long-term investment devaluation
III. Capital construction in process		311,657,482,100			21,091,424,665			2,523,397,111
IV. Other		6,702,126,481			4,790,739,083			35,451,859
TOTAL ASSETS		1,049,341,780,348			569,409,597,171			479,321,787,558
A. Payable loans		533,936,230,573			232,969,784,616			254,099,882,583
I. Short term payables		284,185,213,873			220,728,093,346			231,929,397,322
1. Short-term borrowings		214,916,809,600			168,705,149,874			133,298,689,583
2. Due long-term liabilities
3. Payables to supplier		58,311,771,106			38,132,978,157			53,568,720,161
4. Prepayment of buyer		3,259,683,701			5,190,487,059			3,322,219,940
5. Taxes and accounts dutiable		163,970,663			110,009,060			912,156,298
6. Employee payments		2,839,251,444			2,394,613,406			111,239,130
7. Internal payables		3,571,022,928			5,025,313,502
8. Other payables		1,122,704,431			1,169,542,288			40,716,372,210
II. Long term loans		249,751,016,700			12,241,691,270			17,078,269,694
1. Long-term borrowings		119,399,900			82,000,000			17,078,269,694
2. Long-term payables		249,631,616,800			12,159,691,270
III. Other payables								5,092,215,567
1. Payable expenses								5,075,812,867
2. Pending assets
3. Receipts long-term collateral and deposit								16,402,700
B. Owner’s Equity		515,405,549,775			336,439,812,555			225,221,904,975
I. Capital and Funds		515,405,549,775			336,439,812,555			225,221,904,975
1. Working capital		299,735,940,000			250,045,940,000			170,745,939,703
2. Differences from asset revaluation		86,520,960,000
3. Exchange rate differences
4. Development investment funds
5. Reserved funds
6. Retained profit		129,148,649,775			86,393,872,555			54,475,965,272
7. Construction capital sources
II. Other administrative and fund sources
1. Provident funds for unemployment
2. Reward and welfare funds
3. Management funds of higher level
4. Functional operation funds
5. Fund sources formed by fixed assets
TOTAL LIABILITY AND EQUITY		1,049,341,780,348			569,409,597,171			479,321,787,558
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
Description			FY 2006		FY 2005			FY 2004
Total revenue			680,437,195,565		629,636,766,157			481,142,838,315
Deductions Items			4,341,818,864		6,618,029,023			17,805,102,571
- Discount
- Devaluation
- Return of sold goods
- Turnover tax, Luxury tax & Export tax
1. Net revenue			676,095,376,701		623,018,737,134			463,337,735,744
2. Cost of goods sold			488,217,390,349		432,082,030,569			354,864,856,934
3. Gross Profit			187,877,986,352		190,936,706,565			108,472,878,810
4. Sales expenses			24,314,705,914		17,358,691,662
5. Enterprise administrative expenses			80,400,608,802		92,416,954,008			58,145,481,263
6. Net income from business activities			83,162,671,636		81,161,060,895			50,327,397,547
Income from financial activities			5,000,233,721		921,256,743			5,887,913,190
Expenditure from financial activities			20,705,130,715		14,885,725,882			16,123,626,463
7. Net income from financial operation			-15,704,896,994		-13,964,469,139			-10,235,713,273
Irregular income			893,238,032		2,941,487,823
Irregular expenditure			115,553,114		1,133,163,373
8. Irregular Profit			777,684,918		1,808,324,450
9. Total pre-tax profit			68,235,459,560		69,004,916,206			40,091,684,274
10. Income tax			10,129,076,042		0
11. After tax profit			58,106,383,518		69,004,916,206			40,091,684,274
FINANCIAL FACTORS
Description				FY 2006		FY 2005			FY 2004
Current Liquidity Ratio				1.92		1.52			1.07
Quick Liquidity Ratio				1.09		0.92			0.43
Inventory Circle				2.64		3.05			2.37
Average Receive Period				50.69		92.41			65.92
Utilizing Asset Performance				0.64		1.09			0.97
Liability / Total Asset (%)				50.88		40.91			53.01
Liability / Owner's Equity (%)				103.60		69.25			112.82
Income Before Tax / Total Asset (%) ROA				6.50		12.12			8.36
Income Before Tax / Owner's Equity (%) ROE				13.24		20.51			17.80
Income Before Tax / Total Revenue (%) NPM				10.03		10.96			8.33
Gross Profit / Total Revenue (%) GPM				27.61		30.32			22.54
INTERPRETATION
The subject company was established as a company with 100-percent Taiwanese capital under License 746/GP (January 11, 1994), granted by the Ministry of Planning and Investment. Under License 746 CPH/GP dated August 9, 2005 granted by the Ministry of Planning and Investment, the company has transformed itself into a joint stock company and joined the securities market in July 2006. Investment capital of the company is more than US$66.16 million, and chartered capital US$19.85 million. In 1997, TAICERA was the first ceramic tile maker in Vietnam to receive ISO 9002 certification, and that has now been upgraded to ISO 9001-2000. By 1998, people knew that TAICERA was one of the top foreign invested companies in Vietnam. Since then, the company's products have consistently been listed as high-quality made-in-Vietnam products. In 2005, TAICERA was commended for being in operation for 10 years and contributing to the development of the Dong Nai Industrial Zone. TAICERA is one of the most successful foreign companies doing long-term business in Vietnam. TAICERA is based in Long Thanh, which was famous for the ceramic-making villages along the Dong Nai River in the 20th century and is now part of the Southern key economic zone. An incorporation of three Taiwanese companies, Zun Lily Tile, Ltd., Engar Enterprise Co., Ltd., and Cheng Feng Ceramic Industries, Ltd., TAICERA has become one of the biggest glazed tile makers in Vietnam. Using modern technology, the company is producing seven million sq. m of glazed tile a year. TAICERA pays attention to improving the quality of its products and ensuring timely delivery. The company keeps on diversifying the type, size and design of its products offering granite, indoor and outdoor decorative tile that suits the taste of consumers around the world, said Raymond Chen, general director of the company. In 2004, TAICERA planned to export 33 percent of its production but it actually exported 65 percent. Its exports in 2004 increased 307 percent in value against 2003. It therefore decided to increase investment in production of large-sized granite tile (0.8x0.8m and 1x1m) for export. When its new US$20 million investment project is completed this August, 2007, the company has just put into operation a new production line making tile 60x60cm. TAICERA hopes to become one of the modern ceramic tile makers in the ASEAN (Association of South East Asian Nations) region. Over the past nearly 20 years of operation in Vietnam, TAICERA has put together a nationwide distribution network. Its products are not only sold in Vietnam but are also exported to 17 countries and territories including Malaysia, Singapore, Taiwan, the Republic of Korea, Australia, and the USA. TAICERA glazed tile has been used at the Ninoy Aquino International Airport, the Ciputra Tenement Building (in west Hanoi), the Hai Duong high-rise building, many factories in the Chu Lai Industrial Zone, and many projects in the Nam Saigon new urban area. The subject has good position in the industry and has fast development.
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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