MIRA INFORM REPORT

Report Date :

06.06.2007

IDENTIFICATION DETAILS

Name :	MATERIAL SPARES PARTS & EQUIPMENT TRADING ENTERPRISE
Registered Office :	Floor 3^rd , No. 8 Le Duan Street, Ben Nghe Ward, District 1, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	1995
Legal Form :	Branch of Joint Stock Company
Line of Business :	Trading in kind of specialized car and lorry (mainly secondhand products).

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	MATERIAL SPARES PARTS & EQUIPMENT TRADING ENTERPRISE
Vietnamese name	XI NGHIEP KINH DOANH VAT TU VA THIET BI PHU TUNG
Trade Name	MATERIAL SPARES PARTS & EQUIPMENT TRADING ENTERPRISE
Shorted name	MASTEN
Type of Business	Branch of Joint Stock Company
Foundation	1995
Current Business Registration	4113017697
Issued on	March 25^th 2005
Issued by	People’s Committee of Hochiminh City
Former Business Registration	302145
Date of Issuance	March 1^st 1995
Place of Issuance	Planning and Investment Department of Hochiminh City
Tax Code	0300542187-007
Total Employees	10 employees
Qualification	Fair
Note: The subject is a branch of Saigon Machinery Spare Parts Joint Stock Company. Following is information about the company:
English Name	SAIGON MACHINERY SPARE PARTS JOINT STOCK COMPANY
Vietnamese name	CONG TY CO PHAN THIET BI PHU TUNG SAI GON
Trade Name	SAIGON MACHINERY SPARE PARTS JOINT STOCK COMPANY
Shorted name	MACHINCO
Former English Name	HOCHIMINH CITY MACHINERY SPARE PARTS COMPANY
Former Vietnamese name	CONG TY THIET BI PHU TUNG THANH PHO HOCHIMINH
Former Shorted Name	MACHINCO 7
Current Type of Business	Joint Stock Company
Former Type of business	State owned enterprise
Foundation	1993
Current Business Registration	4103003152
Issued on	March 1^st 2005
Issued by	Planning and Investment Department of Hochiminh City
Former Business Registration	102779
Date of Issuance	June 15^th 1993
Place of Issuance	Planning and Investment Department of Hochiminh City
Current Registered Capital	65,000,000,000 VND
Former Registered Capital	19,185,000,000 VND
Tax Code	0300542187
Total Employees	110 employees
Qualification	Normal
Address	Floor 2^nd No.8 Le Duan Street, Ben Nghe Ward, District 1, Hochiminh City
Tel	(84-8) 8224065-8222803-8239741
Fax	(84-8) 8225382
Director	Mr. NGUYEN DINH HIEN
Business Activities	- Trading in machinery, specialized cars, lorry and spare parts, telecommunication equipments… - Trading in materials for production, consumer products, industrial goods, agricultural, forestry, aquatic products, … - Trading in equipment, spare parts served producing and repairing, construction materials, chemicals…
ADDRESS
Head Office
Address	Floor 3^rd , No. 8 Le Duan Street, Ben Nghe Ward, District 1, Hochiminh City
Country	Vietnam
Tel	(84-8) 8220059
Fax	(84-8) 8220059
DIRECTORS
1. NAME	Ms. NGUYEN THANH TAM
Position	Branch Director
Resident	553/47A Nguyen Kiem Street, Ward 9, Phu Nhuan District, Hochiminh City
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in trading in kind of specialized car and lorry (mainly secondhand products).
IMPORT & EXPORT ACTIVITIES
IMPORT: Subject imports goods from Korea.
EXPORT: N/A
BANKERS
1. VIETNAM BANK FOR FOREIGN TRADE ( VIETCOMBANK) BINH TAY BRANCH
Address	No.129 - 129A Hau Giang Str, Ward 5, Dist 6, HoChiMinh City
Country	Vietnam
Tel	(84-8) 9600477 - 9600478
Fax	(84-8) 9606217
Telex	811234/5 VVB-VT
Swift	BFTVVBVX 007
2. VIETNAM EXPORT-IMPORT COMMERCIAL JOINT STOCK BANK - EXIMBANK – HOCHIMINH CITY
Address	No.7 Le Thi Hong Gam Str, Dist No.1, HoChiMinh City
Country	Vietnam
Tel	(84-8) 821 0055
Fax	(84-8) 829 6063
Telex	812690 EIB VT
Swift	EBVIVNVX
SHAREHOLDERS
Subject is a branch of Sai Gon Machinery Spare Parts Joint Stock Company. It’s owned 100% by its parent:
1. Name	SAI GON MACHINERY SPARE PARTS JOINT STOCK COMPANY
Address	Floor 2^nd No.8 Le Duan Street, Ben Nghe Ward, District 1, Hochiminh City
Tel	(84-8) 8224065-8222803-8239741
Fax	(84-8) 8225382
Email	machinco@hcm.vnn.vn
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	AVERAGE
Liquidity	ABOVE AVERAGE
Previous Payments	NORMAL
Payment status	NORMAL
Past Financial Situation	AVERAGE
Current Financial Situation	FAIRLY
Litigation Data	NO RECORDED
Bankruptcy	NO RECORDED
Public opinion	NORMAL
Payment Methods	Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C), by telegraphic transfer (T/T).
FINANCIAL DATA
Financial Statement of the subject is not available. Following is financial statement of its parent company:
Unit: 1,000,000 VND
BALANCE SHEET
Balance sheet date		31/12/2005
Number of weeks		52
ASSETS
A. Working assets & short-term Investment		63,401
I. Cash and cash equivalents		2,483
II. Short-term investment		0
1. Short-term securities investment		0
2. Other short-term investment		0
3. Provision for short-term investment		0
III. Receivables		41,335
1. Receivables from customers		20,965
2. Prepayment for providers		7,054
3. Value-added tax deducted		5,449
4. Internal receivables		4,390
5. Other receivables		3,477
6. Provision for bad receivables		0
IV. Inventory		19,535
1. Purchased goods in transit		0
2. Raw materials		841
3. Instrument, tools		59
4. Cost for production and business in process		169
5. End products		22
6. Goods		18,444
7. Goods on consignment		0
8. Provision for devaluation of stocks		0
V. Other current assets		48
1. Advances		41
2. Prepaid expenses		0
3. Pending expenses for transfer		0
4. Pending assets		0
5. Mortgage, collateral and short run collateral		7
VI. Administrative		0
1. Administrative expenses for previous year		0
2. Administrative expenses for current year		0
B. Fixed assets & Long term investment		7,170
I. Fixed assets		7,170
1. Tangible fixed assets		7,170
+ Original cost		12,983
+ Accumulated depreciation value		-5,813
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		0
TOTAL ASSETS		70,571
LIABILITIES
A. Payable loans		58,684
I. Short term payables		58,543
1. Short-term borrowings		26,593
2. Due long-term liabilities		0
3. Payables to supplier		7,678
4. Prepayment of buyer		7,152
5. Taxes and accounts dutiable		1,872
6. Employee payments		437
7. Internal payables		4,391
8. Other payables		10,420
II. Long term loans		0
1. Long-term borrowings		0
2. Long-term payables		0
III. Other payables		141
1. Payable expenses		141
2. Pending assets		0
3. Receipts long-term collateral and deposit		0
B. Owner’s Equity		11,887
I. Capital and Funds		11,673
1. Working capital		11,000
2. Differences from asset revaluation		0
3. Exchange rate differences		0
4. Development investment funds		552
5. Reserved funds		121
6. Retained profit		0
7. Construction capital sources		0
II. Other administrative and fund sources		214
1. Provident funds for unemployment		60
2. Reward and welfare funds		154
3. Management funds of higher level		0
4. Functional operation funds		0
5. Fund sources formed by fixed assets		0
TOTAL LIABILITY AND EQUITY		70,571

PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
Description	FY 2005
Total revenue	244,159
Revenue from Export	0
Deductions Items	0
- Discount	0
- Devaluation	0
- Return of sold goods	0
- Turnover tax, Luxury tax & Export tax	0
1. Net revenue	244,159
2. Cost of goods sold	231,456
3. Gross Profit	12,703
4. Sales expenses	8,975
5. Enterprise administrative expenses	0
6. Net income from business activities	3,728
Income from financial activities	492
Expenditure from financial activities	2,269
7. Net income from financial operation	-1,777
Irregular income	23
Irregular expenditure	0
8. Irregular Profit	23
9. Total pre-tax profit	1,974
10. Income tax	0
11. After tax profit	1,974
FINANCIAL FACTORS
Description		FY 2005
Current Liquidity Ratio		1.08
Quick Liquidity Ratio		0.75
Inventory Circle		11.85
Average Receive Period		61.79
Utilizing Asset Performance		3.46
Liability / Total Asset (%)		83.16
Liability / Owner's Equity (%)		493.68
Income Before Tax / Total Asset (%) ROA		2.80
Income Before Tax / Owner's Equity (%) ROE		16.61
Income Before Tax / Total Revenue (%) NPM		0.81
Gross Profit / Total Revenue (%) GPM		5.20
INTERPRETATION
Material Spares Parts & Equipment Trading Enterprise is a branch of Sai Gon Machinery Spare Parts Joint Stock Company (Machinco). The subject was established in 1995 specializing in trading in kind of specialized cars and lorries and spare parts. Its products trading are mainly secondhand goods imported from Korea. Machinco was formerly a state owned enterprise and was equitized to joint stock company in beginning of 2005. The state still holds 30% shares. Its trading products are fairly diversified and operating at a medium scale with many belonged enterprises locating in many places in Hochiminh City and one branch in Hanoi Capital. Premises and facilities of the subject is normal. It’s operating independent with its parent company. Its business are rather stable and busily at present time. It also gets much support from the parent company.

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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