MIRA INFORM REPORT

Report Date :

06.06.2007

IDENTIFICATION DETAILS

Name :	LONG THANH PLASTIC COMPANY LIMITED
Registered Office :	No 08 Kim Bien Str, Ward 13, Dist 5, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	1996
Legal Form :	Limited Liability Company
Line of Business :	Manufacturing and trading plastic products

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
	English Name		LONG THANH PLASTIC COMPANY LIMITED
	Vietnamese Name		CONG TY TNHH NHUA LONG THANH
	Trade Name		LOTHACO LTD
	Founded		1996
	Type of Business		Limited liability Company
	Established Decision		No.1104/GP-UB
	Issued on		May 07^th, 1996
	Issued by		People’s Committee of HoChiMinh City
	Business registration		No. 050804
	Issued on		May 30^th, 1996
	Issued by		Planning and Investment Department of HoChiMinh City
	Registered Capital		30,008,000,000 VND
	Tax code		0301275199
	Total Employees		400
	Qualification		Fairly good
	ADDRESSES
	Head Office
	Address		No 08 Kim Bien Str, Ward 13, Dist 5, Hochiminh city
	Country		Vietnam
	Tel		(84-8) 9696949/ 9696950
	Fax		(84-8) 9690040/ 9696951
	Email		lothaco@hcm.vnn.vn
	Website		www.lothacolt.com
	Factory’s Location
	Current Address		No 135A Ho Hoc Lam Str, An Lac Ward, Binh Tan Dist, Hochiminh city
	Former Address		No.135A Ho Hoc Lam Str, An Lac Ward, Binh Chanh Dist, Hochiminh city
	Country		Vietnam
	Tel		(84-8) 8776139 - 8776436 - 7510367
	Fax		(84-8) 8764574
	DIRECTORS
	1. NAME		Mr. PHAM VAN MUOI
	Position		Director
	Qualification		Management
	Date of birth		February 18^th 1954
	ID No		020048615
	Issued on		November 29^th 1996
	Issued by		Police Station of Hochiminh City
	Resident		No 14 Go Cong Str, Ward 13, Dist 5, Hochiminh City
	Nationality		Vietnamese
	2. NAME		Mr. TRAN HUU TAI
	Position		Producing Deputy Director
	Resident		325 Hau Giang Str, Ward 5, Dist 6, Hochiminh City
	Nationality		Vietnamese
	3. NAME		Mrs. TRAN THI BACH
	Position		Trading Deputy Director
	Resident		No 08 Kim Bien Str, Ward 13, Dist 5, Hochiminh City
	Nationality		Vietnamese
	BUSINESS NATURE AND ACTIVITIES
	The subject is specializing in: manufacturing and trading plastic products including: - Hi-Tech plastics: Coex & single layer bottles, dual component items, tamper evident, flip caps, TV, monitor cabinets - Household plastic: bag, basket, basin, waste box, clear box, cupboard, self, ice bucket, spoon, fork, hanger, table, chair, tray, water bucket, rice jar… - Industrial plastic: container, pallet…
	Registered business items: - Manufacturing household and industrial plastic products, toys - Trading in machinery, raw materials and chemical for plastic field.
	MPORT & EXPORT ACTIVITIES
	IMPORT: The subject imports raw materials and chemical for its production from Singapore, Germany, Thailand, China, and Japan.
	EXPORT: At the moment, the subject exports its products to Malaysia, Indonesia, Japan, USA and Australia.
	BANKERS
	1. SGN COMMERCIAL JOINT STOCK BANK (SACOMBANK)
	Address		No. 275 Nam Ky Khoi Nghia Str, Ward 8, Dist 3, Hochiminh city
	Country		Vietnam
	Tel		(84-4) 9320420 - 9320643
	Fax		(84-4) 9322488
	Telex		813603SGTT/VT
	Swift		SGTTVNVX
	2. ASIA COMMERCIAL JOINT STOCK BANK (ACB BANK)
	Address		No.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
	SHAREHOLDERS(S)
	The subject is a private limited company. Following are its shareholders:
	1. NAME		Mr. PHAM VAN MUOI
	Position		Director
	Qualification		Management
	Date of bith		February 18^th 1954
	ID No		020048615
	Issued on		November 29^th 1996
	Issued by		Police Station of Hochiminh City
	Resident		No 14 Go Cong Str, Ward 13, Dist 5, Ho Chi Minh City
	Nationality		Vietnamese
	Share		37.68%
	Value		11,308,000,000 VND
	2. NAME		Mr. TRAN HUU TAI
	Position		Producing Deputy Director
	Resident		325 Hau Giang Str, Ward 5, Dist 6, Ho Chi Minh City
	Nationality		Vietnamese
	Share		7%
	Value		2,100,000,000 VND
	3. NAME		Mrs. TRAN THI BACH
	Position		Trading Deputy Director
	Resident		No 8 Kim Bien Str, Ward 13, Dist 5, Hochiminh City
	Nationality		Vietnamese
	Share		35%
	Value		10,500,000,000 VND
	4. NAME		Mrs. NGUYEN THI PHUONG THUY
	Position		Shareholder
	Resident		No 8 Kim Bien Str, Ward 13, Dist 5, Hochiminh City
	Nationality		Vietnamese
	Share		3.66%
	Value		1,100,000,000 VND
	5. NAME		Mr. PHAM TRAN NHAT MINH
	Position		Shareholder
	Resident		No 8 Kim Bien Str, Ward 13, Dist 5, Hochiminh City
	Nationality		Vietnamese
	Share		16.66%
	Value		5,000,000,000 VND
	PAYMENT HISTORY AND EXPERIENCES
Trade Morality				GOOD
Liquidity				GOOD
Former Payment Status				NORMAL
Current Payment Status				PROMPT
Former Financial Situation				FAIRLY
Current Financial Situation				GOOD
Legal Action				NO RECORDED
Bankruptcy				NO RECORDED
Reputation				FAIRLY GOOD
Mode 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				Directly to clients & through its network agents.
	FINANCIAL DATA
	BALANCE SHEET
	Unit: 1 VND
Balance sheet date						31/12/2005	31/12/2004
Number of weeks						52	52
ASSETS
A -		CURRENT ASSETS			84,469,485,902		60,077,146,977
I.		Cash and cash equivalents			13,006,411,915		14,387,346,760
1.		Cash			13,006,411,915		14,387,346,760
2.		Cash equivalents			0		0
II.		Short-term financial investments			0		0
1.		Short-term investments			0		0
2.		Provisions for devaluation of short-term investment stocks			0		0
III.		Accounts receivables			51,235,225,011		36,334,925,787
1.		Receivable from customers			45,240,812,394		36,314,434,602
2.		Prepayment to suppliers			5,994,412,617		0
3.		Inter- company receivables			0		0
4.		Progress receipts due from construction contract			0		0
5.		Other receivables			0		20,491,185
6.		Provisions for bad debts			0		0
IV.		Inventories			18,608,562,949		8,575,605,431
1.		Raw materials, spare parts,			18,608,562,949		8,575,605,431
2.		Provisions for devaluation of inventories			0		0
V.		Other current assets			1,619,286,027		779,268,999
1.		Short-term prepaid expenses			1,223,919,129		779,268,998
2.		Taxes receivables			395,366,898		1
3.		Other current assets			0		0
B -		LONG TERM ASSETS			133,356,357,521		121,210,879,529
I.		Long term accounts receivable			0		0
1.		Long term accounts receivable from customers			0		0
2.		Long term inter- company receivable			0		0
3.		Other long term accounts receivables			0		0
4.		Provisions for bad debts			0		0
II.		Fixed assets			133,356,357,521		121,210,879,529
1.		Tangible fixed assets			126,516,893,335		117,838,839,670
		Historical costs			175,618,365,472		151,893,619,334
		Accumulated depreciation			49,101,472,137		34,054,779,664
2.		Finance lease assets			0		0
		Historical costs			0		0
		Accumulated depreciation			0		0
3.		Intangible assets			108,637,674		0
		Historical costs			122,217,382		0
		Accumulated depreciation			13,579,708		0
4.		Construction in progress			6,730,826,512		3,372,039,859
III.		Investment property			0		0
		Historical costs			0		0
		Accumulated depreciation			0		0
IV.		Long term financial investments			0		0
1.		Investments subsidiary company			0		0
2.		Investments in business concerns and joint ventures			0		0
3.		Other long term investments			0		0
4.		Provisions for devaluation of long-term investments stock			0		0
V.		Other long term assets			0		0
1.		Long term prepaid expenses			0		0
2.		Deferred income tax assets			0		0
3.		Other long term assets			0		0
		TOTAL ASSETS			217,825,843,423		181,288,026,506
LIABILITIES
A -		LIABILITIES			185,012,345,374		148,747,602,327
I.		Short term liabilities			359,872,374		4,395,129,327
1.		Short term debts and borrowings			0		0
2.		Payable to suppliers			0		4,036,221,236
3.		Advances from customers			0		0
4.		Taxes and other accounts payable to the State Budget			43,756,374		163,852,091
5.		Payable to employees			316,116,000		195,056,000
6.		Accrued expenses			0		0
7.		Payable to inter- company			0		0
8.		Progress payments due to construction contract			0		0
9.		Other payables			0		0
II.		Long term liabilities			184,652,473,000		144,352,473,000
1.		Long term account payable to suppliers			0		0
2.		Long term inter-company payables			184,652,473,000		144,352,473,000
3.		Other long term payables			0		0
4.		Long term debts and borrowings			0		0
5.		Deferred income tax liabilities			0		0
B -		OWNER’S EQUITY			32,813,498,049		32,540,424,179
I.		Owner’s equity			32,797,382,452		32,456,924,253
1.		Owners' Investment capital			30,695,000,000		30,695,000,000
2.		Share premiums			0		0
3.		Treasury shares			0		0
4.		Differences upon asset revaluation			0		0
5.		Foreign exchange differences			0		0
6.		Business promotion fund			211,154,042		211,154,042
7.		Financial reserved fund			825,024,219		845,135,971
8.		Other funds			0		0
9.		Undistributed earnings			1,066,204,191		705,634,240
II.		Other sources and funds			16,115,597		83,499,926
1.		Bonus and welfare funds			16,115,597		83,499,926
2.		Sources of expenditure			0		0
3.		Funds used to acquire fixed assets			0		0
		TOTAL LIABLITIES AND OWNER’S EQUITY			217,825,843,423		181,288,026,506
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
		Description			F/Y 2005		F/Y 2004
1.		Revenue from sales of goods and rendering of services			222,721,161,078		223,298,339,854
2.		Deductible items			145,402,280		227,197,339
3.		Net revenue from sales of goods and rendering of services			222,575,758,798		223,071,142,515
4.		Costs of goods sold			219,013,949,875		220,199,917,971
5.		Gross profit			3,561,808,923		2,871,224,544
6.		Income from financial activities			222,927,488		120,185,900
7.		Expenses from financial activities			3,457,564		99,833,478
		- In which: Loan Interest expenses			-		-
8.		Selling expenses			0		0
9.		General & administration expenses			3,287,569,125		2,235,722,710
10.		Net operating profit			493,709,722		655,854,256
11.		Other incomes			3,109,235,402		1,771,200,000
12.		Other expenses			3,036,207,000		1,731,816,000
13.		Other profits			73,028,402		39,384,000
14.		Profit (loss) before tax			566,738,124		695,238,256
15.		Income tax			158,686,675		119,697,860
16.		Profit (loss) after tax			408,051,449		575,540,396
FINANCIAL FACTORS
Description						FY 2005	FY 2004
Current Liquidity Ratio						234.72	13.67
Quick Liquidity Ratio						183.01	11.72
Inventory Circle						16.11	25.68
Average Receive Period						84.02	59.45
Utilizing Asset Performance						1.02	1.23
Liability / Total Asset (%)						84.94	82.05
Liability / Owner's Equity (%)						563.83	457.12
Income Before Tax / Total Asset (%) ROA						0.26	0.38
Income Before Tax / Owner's Equity (%) ROE						1.73	2.14
Income Before Tax / Total Revenue (%) NPM						0.25	0.31
Gross Profit / Total Revenue (%) GPM						1.60	1.29
	INTERPRETATION
	The company was originally set up in 1979 with the name Long Thanh Plastic Enterprise. Until 1996, the subject was re-established, under the law on enterprise. Currently, the Long Thanh Plastic Company Ltd is an average size limited liability company in the field of production and trading in plastic products. It is operating rather effectively. The distribution network of the subject is wide. The subject’s products are manufactured by high tech producing chains. More than 30% of the subject’s products are for export. The rest are consumed in domestic market. The subject has got wide connections to consumers. And the developing potential of the subject is bright. The premises and facilities of the subject are fairly good; its land-use area is about 13,000 m^2. There are 07 manufacturing workshops in factory’s location. Board of management includes good experienced crew and a large and powerful workforce. The whole of subject’s products are manufactured by the best advanced industrial-lines and in accordance with production technology of Germany, USA, Taiwan, and Japan. It is enjoying consumer’s trust by the quality of its products. The subject has got ISO-9001 standard in 2000 and its products have been recognized high quality Vietnamese goods by Vietnamese consumers in 08 consecutive years. This is the primary factor that helps the subject operate effectively and develops. The annual turnover and profits of the subject are stable. The sales of the subject are high, and the position of the company in industrial of Vietnam is remarkable. The subject is one of leading enterprise in the plastic industry. Financial & operational base of the subject is regarded rather healthy. It is safe for creditors to do business with the subject.

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%)

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