MIRA INFORM REPORT

Report Date :

25.05.2007

IDENTIFICATION DETAILS

Name :	MIKA BRANCH
Registered Office :	No. 448 Ly Thai To Str, Ward 10, Dist 10, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	2000
Legal Form :	Belonged Unit of a Liability Limited Company
Line of Business :	Supplying chemicals, raw materials and additives for paint, ink, adhesive, textile, toiletries, agriculture, food, cosmetic and pharmaceutical.

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	MIKA BRANCH
Vietnamese Name	CHI NHANH MIKA
Trade Name	MIKA
Establishment	2000
Type of Business	Belonged Unit of a Liability Limited Company
Business registration	No. 02001244CN41
Date of Issuance	August 07^th, 2000
Place of Issuance	Planning and Investment Department of Ho Chi Minh City
Tax code	0301161018-001
Total Employees	150 employees of the company
Qualification	Fairly good
ADDRESSES
Head Office
Address	No. 448 Ly Thai To Str, Ward 10, Dist 10, Hochiminh city
Country	Vietnam
Tel	(84-8) 9272091 - 9270292
Fax	(84-8) 8346961
Email	damikapaint@hcm.vnn.vn
Current Mika Paint Plant
Address	27 Hamlet 5, Duc Hoa Dong Village, Duc Hoa Dist, Long An Province
Country	Vietnam
Tel	(84-72) 779203
Fax	(84-72) 779204
Note	This address is also registered under the name of Binh Tri Co., Ltd- Thu Dat
Former Mika Paint Plant
Address	11/106 My Hoa Hamlet, Tan Xuan Village, Hoc Mon Dist, Hochiminh city
Country	Vietnam
Tel	(84-8) 7180816
DIRECTORS
1. NAME	Mrs. TRINH THI LANH
Position	Director
Qualification	Bachelor
Resident	No. 10/272 Le Thanh Tong Str, Dong Son Ward, Thanh Hoa City, Thanh Hoa Province
Nationality	Vietnamese
2. NAME	Ms. NGUYEN THU HAO
Position	Financial Director
Qualification	Bachelor
Resident	Hochiminh City - Vietnam
Nationality	Vietnamese
3. NAME	Ms. NGUYEN HONG DIEP
Position	Import-Export Manager
Qualification	Bachelor
Resident	Hochiminh City - Vietnam
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in supplying chemicals, raw materials and additives for paint, ink, adhesive, textile, toiletries, agriculture, food, cosmetic and pharmaceutical. The subject also produces paint.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports materials, goods from many firms such as Dow Chemical, Opimal, BASF, BAYER, Exxon Mobile chemicals, Akzo Nobel, ICI, Rhodia... in France, Germany, Netherlands, Indonesia, Malaysia, Thailand, Taiwan and China.
EXPORT: N/A
BANKERS
1. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address		No.29 Ben Chuong Duong Str, Hochiminh City
Country		Vietnam
Tel		(84-8) 8251317
Fax No		(84-8) 8297228
Telex		811234/5 VVB-VT
Swift		BFTVVBVX 007
2. SGN COMMERCIAL JOINT STOCK BANK (SACOMBANK)
Address		No. 275 Nam Ky Khoi Nghia Str, Ward 8, Dist 3, Hochiminh City
Country		Vietnam
Tel		(84-8) 9320420 - 9320643
Fax		(84-8) 9322488
Telex		813603SGTT/VT
SHAREHOLDER(S)
The subject is a branch of a limited liability company. Its parent company is:
Name	SAPA TRADING & SERVICE COMPANY LIMITED
Vietnamese Name	CONG TY TNHH THUONG MAI DICH VU SAPA
Establishment	1996
Establishment Decision	723/GP-UB
Date of Issuance	March 26^th 1996
Place of Issuance	People’s Committee of Hochiminh City
Type of Business	Liability Limited Company
Business registration	No. 049459
Place of Issuance	April 2^nd 1996
Type of Business	Planning and Investment Department of Ho Chi Minh City
Tax code	0301161018
Registered Capital	11,450,000,000 VND
Director	Mr. VO DAI NGHIEM
Address	No. 448A Ly Thai To Str, Ward 10, Dist 10m, Hochiminh city
Tel	(84-8) 9272930, 8345165, 8346704
Fax	(84-8) 8345115
Email	sapaco@hcm.fpt.vn
Website	www.sapacovn.com
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		good
Liquidity		good
Previous Payments		fairly prompt
Past Financial Situation		fairly good
Current Financial Situation		fairly good
Legal Action		no recorded
Bankruptcy		no recorded
Reputation		normal
FINANCIAL DATA
The subject is the branch, the financial statement of the subject is not available. Following is the financial statement of the parent company, we give you for reference.
Unit: 1,000,000 VND
BALANCE SHEET
Balance Sheet Date			31/12/2005		31/12/2004		31/12/2003
Number of Weeks			52		52		52
Consolidation code			Consolidated		Consolidated		Consolidated
ASSETS
A. Current assets & Short term Investment:			38,049		46,749		23,525
I. Cash and cash equivalents			5,794		1,254		722
II. Short term investment			0		0		0
1. Short-term securities investment			0		0		0
2. Other short-term investment			0		0		0
3. Provision for devaluation of short-term investment			0		0		0
III. Receivables			7,316		9,878		6,292
1. Receivables from customers			2,220		3,072		1,340
2. Prepaid for providers			0		0		0
3. Value-added tax deducted			1,848		2,831		1,746
4. Internal receivables			3,200		3,200		3,200
5. Other receivables			48		775		6
6. Provision for bad receivables			0		0		0
IV. Inventory			24,386		34,825		15,690
1. Purchased goods in transit			0		0		0
2. Inventory raw materials			0		0		0
3. Inventory appliance			28		28		28
4. Cost for production and business in process			0		0		0
5. Inventory finished products			0		0		0
6. Inventory cargoes			23,829		34,797		15,662
7. Entrusted goods for sale			0		0		0
8. Provision for devaluation of stocks			529		0		0
V. Other current assets			553		792		821
1. Advances			112		112		112
2. Prepaid expenses			107		531		531
3. Pending expenses for transfer			334		149		178
4. Pending assets			0		0		0
5. Hypothecation, collateral and short run collateral			0		0		0
VI. Administrative			0		0		0
1. Administrative expenses for previous year			0		0		0
2. Administrative expenses for current year			0		0		0
B. Fixed assets & Long term investment:			1,096		494		494
I. Fixed assets			1,096		494		494
1. Tangible fixed assets			1,096		494		494
+ Original cost			1,165		519		519
+ Accumulated depreciation value			-69		-25		-25
2. Fixed assets of financing credit			0		0		0
+ Original cost			0		0		0
+ Accumulated depreciation value			0		0		0
3. Intangible fixed assets			0		0		0
+ Original cost			0		0		0
+ Accumulated depreciation value			0		0		0
II. Long term investment			0		0		0
1. Long-term securities investment			0		0		0
2. Joint-venture capital contribution			0		0		0
3. Other long-term investment			0		0		0
4. Provision for long-term investment devaluation			0		0		0
III. Capital construction in process			0		0		0
IV. Other			0		0		0
TOTAL ASSETS:			39,145		47,243		24,019
LIABILITIES
A. Payables:			28,409		36,531		13,311
I. Short term payables			28,409		36,531		13,311
1.Short-term borrowings			500		0		0
2. Due long-term liabilities			0		0		0
3. Payable to seller			7,371		6,192		2,710
4. Prepaid buyer			0		0		0
5. Taxes and accounts dutiable			529		727		508
6. Employee payments			0		0		0
7. Internal payments			19,910		29,570		10,070
8. Other payables			99		42		23
II. Long term payables			0		0		0
1. Long-term borrowing			0		0		0
2. Long-term loans			0		0		0
III. Other liabilities			0		0		0
1. Disbursement payable			0		0		0
2. Pending assets			0		0		0
3. Receipts long-term collateral and deposit			0		0		0
B. Owner’s Equity:			10,736		10,712		10,708
I. Capital and Funds			10,736		10,712		10,708
1. Working capital			11,450		11,450		11,450
2. Differences from assets revaluation			0		0		0
3. Exchange rate differences			0		0		0
4. Business development fund			0		0		0
5. Reserved fund			0		0		0
6. Retained profit			-714		-738		-742
7. Construction capital sources			0		0		0
II. Other administrative and fund sources			0		0		0
1. Provident funds for unemployment			0		0		0
2. Welfare and reward funds			0		0		0
3. Management funds of higher level			0		0		0
4. Functional operation funds			0		0		0
5. Fund sources formed by fixed assets			0		0		0
TOTAL LIABILITY AND EQUITY:			39,145		47,243		24,019
PROFIT & LOSE ACCOUNTS
Description			FY 2005		FY 2004		FY 2003
Total revenue			175,244		131,259		N/A
Revenue from export			0		0		-
Deductions Items			0		0		-
- Discount			0		0		-
- Devaluation of sale price			0		0		-
- Return of sold goods			0		0		-
- Turnover tax, excise tax, import and export duties to be paid			0		0		-
1. Net revenue			175,244		131,259		-
2. Original rate of goods for sale			172,392		129,353		-
3. Combined Profit			2,852		1,906		-
4. Sales costs			35		62		-
5. Enterprise administrative costs			2,833		1,851		-
6. Net income from business activity			-16		-7		-
Income from financial activities			40		19		-
Costs for financial activities			0		0		-
7. Net income from financial operation			40		19		-
Irregular income			0		0		-
Irregular expenditure			0		0		-
8. Irregular Profit			0		0		-
9. Total pre-tax profit			24		12		-
10. Income tax			7		3		-
11. After tax profit			17		9		-
FINANCIAL FACTORS
Description				2005		2004		2003
Current Liquidity Ratio				1.34		1.28		1.77
Quick Liquidity Ratio				0.48		0.33		0.59
Inventory Circle				5.82		5.12		-
Average Receivable Period (days)				15.24		27.47		-
Utilizing Asset performance				4.48		2.78		-
Liabilities / Total Assets (%)				72.57		77.33		55.42
Liabilities / Owner’s Equity (%)				264.61		341.03		124.31
Income before tax/Total assets (%) ROA				0.06		0.03		-
Income before tax / Owner’s Equity (%) ROE				0.22		0.11		-
Income before tax/Total revenues (%) NPM				0.01		0.01		-
Gross profit /Total revenues (%) GPM				1.63		1.45		-
INTERPRETATION
The Subject is a branch of SAPA TRADING & SERVICES COMPANY LIMITED. It was established in 2000. In legal form, the subject is a branch. However, in reality, the subject is operating independently. The subject manages its business and all activities of finance and business. Its head office is located beside the office of its parent company. The subject also has a paint plant, which was formerly located in Hoc Mon District, Hochiminh City, but it is moved to Long An province. The subject is specializing in producing paint and trading in chemicals, raw materials and additives for paint, ink, adhesive, textile, toiletries, agriculture, food, cosmetic and pharmaceutical. The products of the subject are imported from leading chemical concerns such as DOW chemical, OPIMAL, BASF, BAYER, EXXON MOBILE chemicals, AKZO NOBEL, ICI, RHODIA ... The subject is now operating effectively and developing fairly well. Its business activities are stable and quite busy. The subject has established good relationship with many traditional partners. Premises and facilities of the subject are standard. Its management capabilities are fairly good. The subject has gained considerable market share and the position of the subject in the industry is good. Turnover and profits of the subject are stable and increasing. The development strategy of the company is to get more market share and the subject has good prospects to develop. The subject has capacity to meet financial commitments. No caution needed for small business transactions 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%)

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