MIRA INFORM REPORT

Report Date :

18.06.2007

IDENTIFICATION DETAILS

Name :	VIETNAM MARKET DEVELOPMENT & INVESTMENT CO., LTD
Registered Office :	No.36, Group 8C, Block 4, Cong Vi Ward, Ba Dinh Dist., Hanoi City
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	2001
Legal Form :	Limited Liability Company
Line of Business :	Distributing all chemicals specialties and ingredients serving in several industries: coatings, plastic rubber, textiles, glass ceramic, metal finishing, foods, feeds, pharmacies, cosmetic, petro-chem, environment treatment

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		VIETNAM MARKET DEVELOPMENT & INVESTMENT CO., LTD
Vietnamese name		CONG TY TNHH DAU TU & PHAT TRIEN THI TRUONG VIET NAM
Trade Name		MDI VIETNAM CO., LTD
Type of Business		Liability Limited Company
Founded		2001
Business Registration		No. 0102002167
Date of Issuance		March 15^th, 2001
Date of last adjustment		July 7^th, 2004
Place of Issuance		Hanoi Department of Planning And Investment
Registered Capital		VND 2,000,000,000
Tax Code		No. 0101104326
Total Employees		35 (Including 20 staffs in the North, 15 staffs in the South)
Qualification		Normal
ADDRESS
Registered Office
Registered address	No.36, Group 8C, Block 4, Cong Vi Ward, Ba Dinh Dist., Hanoi City
Country	Vietnam
Note: This address is the registered address of the subject. It does not carry out business operation here.
Transaction Office
Current address	No. 17 Nguyen Khuyen Str., Dong Da Dist., Hanoi City
Former address	R 608, Vinare Building, No. 141 Le Duan Str., Hoan Kiem Dist, Hanoi City
Country	Vietnam
Tel	(84-4) 747 2977 / 747 2978 / 747 3004
Fax	(84-4) 747 2979
Email	mdivietnam@hn.vnn.vn
Note: At the moment, its businesses are transacted at transaction office (No. 17 Nguyen Khuyen Str., Dong Da Dist, Hanoi). This address is considered as the representative office of the subject. Its registration business number is 0122023696.
Branch in Hochiminh
Address	KK 5, Ba Vi, Bac Hai Quarter, Dist. 10, Ho Chi Minh City
Country	Vietnam
Manager	Mr. LE TAN THANH
Tel	(84-8) 970 6709
Fax	(84-8) 970 6710
Note: The Hochiminh branch operates independently with the Northern branch.
DIRECTORS
1. NAME	Mr. TRAN BINH AN
Position	Director
Date of Birth	September 14^th, 1962
ID No.	030060217
Hand phone	+84 903425421
Resident Address	No. 142/106, Duong Giang Str., Cau Tre Ward, Ngo Quyen Dist., Hai Phong City
Current Address	No. 17B, An Trach Str., Quoc Tu Giam Ward, Dong Da Dist., Hanoi City
Nationality	Vietnamese
Email	tranbinhan@hn.vnn.vn
2. NAME	Mr. LE TAN THANH
Position	Director
Hand phone	+84 903738822
Permanent Address	No. 235/30, Pham Van Hai Str., Tan Binh Dist., Ho Chi Minh City, Vietnam
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The main business activities of the subject are: Distributing all chemicals specialties and ingredients serving in several industries: coatings, plastic rubber, textiles, glass ceramic, metal finishing, foods, feeds, pharmacies, cosmetic, petro-chem, environment treatment Besides, the subject has other operations such as: exclusive dealer, transferring technology…
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports from Germany, Netherlands, UK, France, Spain, Portugal, Italy, Belgium, USA, Brazil, Canada, China, Japan, Korea, Thailand, Malaysia, Indonesia, Philippines, Singapore and India.
EXPORT: N/A

BANKERS
1. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address	No.198 Tran Quang Khai Str, Hoan Kiem Dist, Hanoi City
Country	Vietnam
Tel	(84-4) 8251322, 8265503, 9343137
Fax	(84-4) 8241395, 8269067
VND Account	No. 001 100 0304974
USD Account	No. 001 137 0304984
EURO Account	No. 001 114 071 5342
2. SACOMBANK (HANOI BRANCH)
Address	No 88, Ly Thuong Kiet Str, Hoan Kiem Dist, Hanoi city
Tel	(84-4) 9436659
Fax	(84-4) 9436659
USD Account	No. 851110000278
3. VID PUBLIC BANK
Address	No. 15 A Ben Chuong Duong Str, Dist 1, Hochiminh City
Tel	(84-8) 8223583 / 8223584
Fax	(84-8) 8223612
Note: Branch of Hochiminh City transacts with this bank.
SHAREHOLDERS
1. Name	Mr. TRAN BINH AN
Nationality	Vietnamese
Current Address	Hanoi City
Share	50%
Value	VND 1,000,000,000
2. Name	Mr. LE TAN THANH
Nationality	Vietnamese
Current Address	Hochiminh City
Share	50%
Value	VND 1,000,000,000
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Fair
Liquidity		Normal
Previous Payments		Normal
Payment status		Fairly prompt
Past Financial Situation		Normal
Current Financial Situation		Developing
Legal Action		No recorded
Bankruptcy		No recorded
Sale method		Sales directly to clients and agency
Payment Methods		L/C at sight, D/P, D/A 45-90 DAYS, TTR
FINANCIAL DATA
BALANCE SHEET
Unit: VND 1,000,000
Balance sheet date			31/12/2005	31/12/2004	31/12/2003
Number of weeks			52	52	52
ASSETS
A. Working assets & short-term Investment			8,101	5,980	2,840
I. Cash and cash equivalents			1,661	1,218	613
II. Short-term investment			0	0	0
III. Receivables			3,694	2,390	1,078
1. Receivables from customers			3,389	2,085	920
2. Prepayment for providers			0	0	0
3. Value-added tax deducted			0	0	3
4. Internal receivables			0	0	0
5. Other receivables			305	305	155
6. Provision for bad receivables			0	0	0
IV. Inventory			2,746	2,372	1,149
1. Purchased goods in transit			0	0	0
2. Raw materials			0	0	0
3. Instrument, tools			0	0	0
4. Cost for production and business in process			0	0	0
5. End products			0	0	0
6. Goods			2,746	2,372	1,149
7. Goods on consignment			0	0	0
8. Provision for devaluation of stocks			0	0	0
V. Other current assets			0	0	0
1. Advances			0	0	0
2. Prepaid expenses			0	0	0
3. Pending expenses for transfer			0	0	0
4. Pending assets			0
5. Mortgage, collateral and short run collateral			0
VI. Administrative			0	0	0
B. Fixed assets & Long term investment			675	853	498
I. Fixed assets			675	853	498
1. Tangible fixed assets			675	853	498
+ Original cost			1,075	1,064	565
+ Accumulated depreciation value			-400	-211	-67
2. Financial leasing fixed assets			0	0	0
+ Original cost			0
+ Accumulated depreciation value			0
3. Intangible fixed assets			0	0	0
+ Original cost			0
+ Accumulated depreciation value			0
II. Long term investment			0	0	0
III. Capital construction in process			0	0	0
IV. Other			0	0	0
TOTAL ASSETS			8,776	6,833	3,338
LIABILITIES
A. Payable loans			6,286	4,552	2,057
I. Short term payables			6,286	4,552	2,057
1. Short-term borrowings			1,360	350	950
2. Due long-term liabilities			0	0	0
3. Payables to supplier			4,868	4,185	1,105
4. Prepayment of buyer			0	0	0
5. Taxes and accounts dutiable			58	19	2
6. Employee payments			0	0	0
7. Internal payables			0	0	0
8. Other payables			0	-2	0
II. Long term loans			0	0	0
1. Long-term borrowings			0
2. Long-term payables			0
III. Other payables			0	0	0
1. Payable expenses			0
2. Pending assets			0
3. Receipts long-term collateral and deposit			0
B. Owner’s Equity			2,490	2,281	1,281
I. Capital and Funds			2,490	2,281	1,281
1. Working capital			2,281	2,281	1,281
2. Differences from asset revaluation			0	0	0
3. Exchange rate differences			0	0	0
4. Development investment funds			0	0	0
5. Reserved funds			0	0	0
6. Retained profit			209	0	0
7. Construction capital sources			0	0	0
II. Other administrative and fund sources			0	0	0
TOTAL LIABILITY AND EQUITY			8,776	6,833	3,338
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
Description			FY 2005	FY 2004	FY 2003
Total revenue			22,030	17,280	N/A
Deductions Items			0
- Discount			0
- Devaluation			0
- Return of sold goods			0
- Turnover tax, Luxury tax & Export tax			0
1. Net revenue			22,030	17,280
2. Cost of goods sold			19,077	15,185
3. Gross Profit			2,953	2,095
4. Sales expenses			0	0
5. Enterprise administrative expenses			2,705	1,919
6. Net income from business activities			248	176
Income from financial activities			0	0
Expenditure from financial activities			54	129
7. Net income from financial operation			-54	-129
Irregular income			20	0
Irregular expenditure			0	1
8. Irregular Profit			20	-1
9. Total pre-tax profit			214	46
10. Income tax			60	0
11. After tax profit			154	46
FINANCIAL FACTORS
Description			FY 2005	FY 2004	FY 2003
Current Liquidity Ratio			1.29	1.31
Quick Liquidity Ratio			0.85	0.79
Inventory Circle			7.45	8.63
Average Receive Period			61.20	50.48
Utilizing Asset Performance			2.51	2.53
Liability / Total Asset (%)			71.63	66.62
Liability / Owner's Equity (%)			252.45	199.56
Income Before Tax / Total Asset (%) ROA			2.44	0.67
Income Before Tax / Owner's Equity (%) ROE			8.59	2.02
Income Before Tax / Total Revenue (%) NPM			0.97	0.27
Gross Profit / Total Revenue (%) GPM			13.40	12.12
This financial data is collected directly from Mr. Phuc, accountant of the subject:
Revenue in 2006		VND 30,000 million
Profit in 2006		VND 300 million
Net revenue in 2005		VND 22,000 million
Pre-tax Profit in 2005		VND 100 million
Net revenue in 2003		VND 8,909 million
Pre-tax Profit in 2003		VND 24 million
Net revenue in 2002		VND 5,984 million
Pre-tax Profit in 2002		VND 8 million
INTERPRETATION
The subject was established in 2001 as a Liability Limited Company. Its registered capital is 2 billion VND with two shareholders (Mr. Tran Binh An & Mr. Le Tan Thanh). Mr. Tran Binh An manages the subject’s operation in the North and Mr. Le Tan Thanh manages branch’s operation in Hochiminh city. The subject now specializes in trading in chemical and materials for coatings, plastic, rubber, ceramic-glass, foods, pharmaceuticals, cosmetics and petroleum. Its imported market is fairly large with about ten countries, including China, Japan, Korea, USA, Germany, Brazil, etc. At the moment, the subject has no export operations. It mainly distributes products to domestic clients. Client network of the subject is widened more and more. The subject is trying to develop its market. Its target clients are limited companies who buy chemicals to process. The premise and facilities of the subject is normal. The subject registered operation at No. 36, block 4, group 8C, Ba Dinh Dist, Hanoi city. However, in fact, it does not do business here. The subject has changed its office many times. Now, the subject's transaction office is at No. 17, Nguyen Khuyen Str., Hanoi city. The subject’s activities are quite busy. The management capacity of the subject is fairly good. Its director joined into Hanoi Business Association in 2005. The financial situation of the subject is average. Its revenue and pre-tax profit are not very high, but the growth rate is stable. In 2004 & 2005, the business activities of the subject were more developed, thus its total revenue was higher. The solvency is above average. Like other small companies, the subject’s reported profit is small. This is common situation of Vietnamese companies. The prospect of the subject seems bright. In short, the subject is a small scale-company. Its development trend is fairly good. The subject is capable to meet small and normal commitments and caution needed for big 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/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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