MIRA INFORM REPORT

Report Date :

01.11.2007

IDENTIFICATION DETAILS

Name :	ZAMIL STEEL BUILDING VIETNAM COMPANY LIMITED
Registered Office :	Noi Bai Industrial Zone, Quang Tien Commune, Soc Son District, Hanoi City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	1997
Legal Form :	Limited Liability Company (Foreign Owned)
Line of Business :	Manufacture and trading main frames Manufacture and trading secondary framing (Z and C sections) Manufacture and trading roof and wall panels (single skin and insulated sandwich panels) Manufacture structural sub systems (fascias, partitions, etc.) Manufacture and trading floor systems (mezzanines, catwalks, platforms, etc.)

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 :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	ZAMIL STEEL BUILDING VIETNAM COMPANY LIMITED
Vietnamese Name	CONG TY TNHH NHA THEP TIEN CHE ZAMIL VIETNAM
Trade Name	ZAMIL STEEL VIETNAM
Type of Business	Limited Liability Company (Foreign Owned)
Founded	1997
Investment License No.	1937/GP
Issued on	27^th June 1997
Issued by	Ministry of Planning and Investment
Investment Capital	34,500,000 USD
Legal Capital	6,666,666 USD
Tax code	0100680623
Total Employees	900
Qualification	Qualified
ADDRESS
Head Office
Address	Noi Bai Industrial Zone, Quang Tien Commune, Soc Son District, Hanoi City
Country	Vietnam
Tel	(84-4) 5820800
Fax	(84-4) 5820801
Email	zsvietnam@zamilsteel.com.vn
Website	www.zamilsteel.com.vn
Sales Office in Hanoi City
Address	Room No. 901, 911, 912, Deaha Business Center, No. 360 kim Ma Street, Ba Dinh District, Hanoi City
Country	Vietnam
Tel	(84-4) 8315002
Fax	(84-4) 8315276
Email	zshanoi@zamilsteel.com.vn
Regional Manager	Mr. LE VU GIANG

Sales Office in Hai Phong City
Address	Habor View Building, No. 4 Tran Phu Street, Hai Phong City
Country	Vietnam
Tel	(84-31) 3827607
Fax	(84-31) 3552544
Email	zshaiphong@zamilsteel.com.vn
Sale Manager	Mr. TRAN DUC KIEN
Sales Office in Da Nang City
Address	9^th Floor, Hoang Anh Gia Lai Plaza, No. 1 Nguyen Van Linh Street, Da Nang City
Country	Vietnam
Tel	(84-511) 3817995
Fax	(84-511) 3817996
Email	zsdanang@zamilsteel.com.vn
Sale Manager	Mr. VO XUAN THIEN
Sales Office in Ho Chi Minh City
Address	Room No. 1205-1206, Sai Gon Tower, No. 29 Le Duan Street, District 1, Ho Chi Minh City
Country	Vietnam
Tel	(84-8) 8275755
Fax	(84-8) 8275754
Email	zshcmc@zamilsteel.com.vn
Regional Manager	Mr. NGUYEN MINH PHUONG
DIRECTORS
1. NAME	Mr. GEORGE E. BOBROSSY
Position	General Director
Contact Address	Noi Bai Industrial Zone, Quang Tien Commune, Soc Son District, Hanoi City, Vietnam
Nationality	Canadian
2. NAME	Mr. RANSI MALENCE
Position	General Administrator and Financial Director
Contact Address	Noi Bai Industrial Zone, Quang Tien Commune, Soc Son District, Hanoi City , Vietnam
Nationality	Sri Lanka
3. NAME	Mr. DENNIS LEU
Position	Marketing Manager
Contact Address	171 Chin Swee Road, No. 06-05 San Centre, Singapore
Nationality	Singaporean
BUSINESS NATURE AND ACTIVITIES
The subject registered in the following lines of business:
- Manufacture and trading main frames - Manufacture and trading secondary framing (Z and C sections) - Manufacture and trading roof and wall panels (single skin and insulated sandwich panels) - Manufacture structural sub systems (fascias, partitions, etc.) - Manufacture and trading floor systems (mezzanines, catwalks, platforms, etc.) and - Other building accessories (sliding doors, roll up doors, windows, louvers, etc.)
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject import from Korea, Thailand, Taiwan …
EXPORT: The subject export to Singapore, Japan, Cambodia, Laos, Philippines, China, Mongolia …
BANKERS
ANZ BANK – HANOI BRANCH
Address	No. 14 Le Thai To Street, Hoan Kiem District, Hanoi City
Country	Vietnam
Tel	(84-4) 8258190
Fax	(84-4) 8258188
Swift Code	ANZBVNVX
USD Account	3001965
VND Account	3004853
VIETCOMBANK
Address	No. 198 Tran Quang Khai Street, Hoan Kiem District, Hanoi City
Country	Vietnam
Tel	(84-4) 8251322, 8265503, 9343137
Fax	(84-4) 8241395, 8269067
SHAREHOLDERS
1. Name	ZAMIL INDUSTRIAL INVESTMENT COMPANY
Contact Address	P. O. Box 14441, Dammam 31424, Saudi Arabia
Tel	(966-3) 8471840
Fax	(966-3) 8472574
Email	info@ziic.com
Website	www.ziic.com
Share	90%
2. Name	MITSUI & CO., LTD
Contact Address	2-1, Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-0004, Japan
Tel	(81-3) 32851111
Fax	(81-3) 32859819
Website	www.mitsui.co.jp
Share	10%
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Good
Liquidity	Average
Payments	Above Average
Financial Situation	Fairly Good
Development trend	Fairly Good
Litigation Data	No reported
Bankruptcy	No reported
Payment Method	TT, L/C, DA, DP
Sale Method	Supplying for clients

FINANCIAL DATA
BALANCE SHEET
Unit: USD
Balance sheet date	31/12/06	31/12/05
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	22,288,499	23,880,996
I. Cash and cash equivalents	907,023	177,976
1.Cash	907,023	177,976
2.Cash equivalents	0	0
II. Short-term investments	0	0
1. Short-term investments	0	0
2. Provisions for devaluation of short-term investments	0	0
III. Accounts receivable	5,583,119	6,979,419
1. Receivable from customers	5,370,847	5,979,808
2. Prepayments to suppliers	94,195	479,765
3. Inter-company receivable	62,120	53,056
4. Receivable according to the progress of construction	0	0
5. Other receivable	55,957	466,790
6. Provisions for bad debts	0	0
IV. Inventories	14,040,196	15,002,513
1. Inventories	14,040,196	15,002,513
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	1,758,161	1,721,088
1. Short-term prepaid expenses	195,573	131,037
2. VAT to be deducted	1,037,651	1,178,016
3. Taxes and other accounts receivable from the State	0	0
4. Other current assets	524,937	412,035
B. LONG-TERM ASSETS	9,617,255	9,695,409
I. Long term account receivable	0	0
1. Long term account receivable from customers	0	0
2. Working capital in affiliates	0	0
3. Long-term inter-company receivable	0	0
4. Other long-term receivable	0	0
5. Provisions for bad debts from customers	0	0
II. Fixed assets	9,557,407	9,550,067
1. Tangible assets	6,270,397	6,038,384
Historical costs	13,074,945	11,704,419
Accumulated depreciation	(6,804,548)	(5,666,035)
2. Financial leasehold assets	433,601	553,634
Historical costs	727,940	727,940
Accumulated depreciation	(294,339)	(174,306)
3. Intangible assets	2,015,616	2,088,843
Initial costs	2,382,612	2,337,260
Accumulated amortization	(366,996)	(248,417)
4. Construction-in-progress	837,793	869,206
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	0	0
1. Investments in affiliates	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	0	0
VI. Other long-term assets	59,848	145,342
1. Long-term prepaid expenses	59,848	55,660
2. Deferred income tax assets	0	89,682
3. Other long-term assets	0	0
TOTAL ASSETS	31,905,754	33,576,405
LIABILITIES
A- LIABILITIES	22,390,596	24,165,391
I. Current liabilities	18,153,297	19,116,540
1. Short-term debts and loans	6,480,993	5,260,093
2. Payable to suppliers	4,891,098	5,756,768
3. Advances from customers	2,560,031	1,413,356
4. Taxes and other obligations to the State Budget	512,191	194,686
5. Payable to employees	0	0
6. Accrued expenses	274,230	205,520
7. Inter-company payable	2,724,685	5,646,898
8. Payable according to the progress of construction contracts	0	0
9. Other payable	710,069	639,219
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	4,237,299	5,048,851
1. Long-term accounts payable to suppliers	0	0
2. Long-term inter-company payable	3,121,350	3,121,350
3. Other long-term payable	0	0
4. Long-term debts and loans	128,449	463,043
5. Deferred income tax payable	987,500	1,464,458
6. Provisions for unemployment allowances	0	0
7. Provisions for long-term accounts payable	0	0
B- OWNER'S EQUITY	9,515,158	9,411,014
I. Owner's equity	9,515,158	9,411,014
1. Capital	6,666,666	6,666,666
2. Share premiums	0	0
3. Other sources of capital	0	0
4. Treasury stocks	0	0
5. Differences on asset revaluation	0	0
6. Foreign exchange differences	0	0
7. Business promotion fund	0	0
8. Financial reserved fund	548,105	461,181
9. Other funds	0	0
10.Retained earnings	2,300,387	2,283,167
11. Construction investment fund	0	0
II. Other sources and funds	0	0
1. Bonus and welfare funds	0	0
2. Sources of expenditure	0	0
3. Fund to form fixed assets	0	0
TOTAL LIABILITIES AND OWNER'S EQUITY	31,905,754	33,576,405
PROFIT & LOSE STATEMENT
Description	FY 2006	FY 2005
Revenue	50,343,320	50,811,996
Deductions Items	0	0
- Discount	0	0
- Devaluation	0	0
- Return of sold goods	0	0
- Turnover tax, Luxury tax & Export tax	0	0
Net Revenue	50,343,320	50,811,996
Costs of goods sold	35,879,024	36,258,185
Gross profit	14,464,296	14,553,811
Financial income	336,322	92,526
Financial expenses	531,114	659,458
In which: Loan interest expenses	438,025	0
Selling expenses	8,278,288	7,698,398
Administrative overheads	6,030,697	5,424,095
Net operating profit	(39,481)	864,386
Other income	146,283	0
Other expenses	0	0
Other profit /(loss)	146,283	0
Total accounting profit before tax	106,802	864,386
Current corporate income tax	17,120	89682
Deferred corporate income tax	0	0
Profit after tax	89,682	774,704
FINANCIAL FACTORS
Description	FY 06	FY 05
Current liquidity ratio	1.23	1.25
Quick Liquidity ratio	0.45	0.46
Inventory circle	2.47	2.42
Average receive period	40.48	50.14
Utilizing Asset Performance	1.58	1.51
Liability/ Total Asset (%)	70.18	71.97
Liability/ Owner's equity (%)	235.32	256.78
Income before tax/ Total asset (%) ROA	1.71	2.57
Income before tax/ Owner's equity (%) ROE	5.73	9.18
Gross Profit / Total revenue (%) GPM	28.73	28.64
Income before tax/ Total revenue (%) NPM	1.08	1.70
INTERPRETATION
The subject company is a foreign invested company. It was established in Vietnam in June 1997 as a limited liability company. The subject is specialised in the manufacture and trading in steel frame and related products for industry. The current position of the subject in the industry is good. The factory of the subject is located in Noi Bai Industrial Zone, Hanoi City. It started construction the factory in 1997 and finished in 1999. The subject also commenced production in the year 1999. This factory located in area of 43,000 square metres of land, in there, the workshop area is 24,000 square metres. The initial production capacity of the subject was about 600 tons per month. At present the monthly production capacity of the subject is 4,500 tons products. The subject also builds the second factory in Amata Industrial Zone, Dong Nai Province (South of Vietnam). This factory started building in 2005 and it expected production in late 2007. The capacity of the second factory is about 3,000 to 5,000 tons products per month. The market share of the subject is good. The subject exports 60% of its products to overseas. It has supplied about 4,000 pre- steel building for customers in domestic market and overseas. The turnover of the subject is large. The subject is considered the largest pre-steel building manufacturer in Vietnam. The management capacity of the subject is above average. The subject company applies ISO 9001:2000 for the management system. The staffs of the subject are grade average. The future prosperity of the subject seems bright. In general, the operation and financial of the subject are regarded strong. The business of the subject is large scale in the industry. It has capacity to meet the average financial commitments, no caution needed for the business transactions.
The company has ADEQUATE capacity to meet financial commitments
CREDIT ENQUIRY: 1,500,000 USD
Acceptable with close term.

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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