MIRA INFORM REPORT

Report Date :

13.11.2007

IDENTIFICATION DETAILS

Name :	LIEN MINH HUONG TRADING CO., LTD
Registered Office :	2/36 D, Dat Thanh Str, Ward 6, Tan Binh Dist, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	2003
Legal Form :	Liability Limited Company
Line of Business :	Trading in iron and steel; equipment machines; motor vehicles; farm and fishery products. Trading in chemicals, rubber, wood products. Trading in health equipment.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Small Company
Payment Behaviour :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name		LIEN MINH HUONG TRADING CO., LTD
Vietnamese name		CONG TY TNHH THUONG MAI LIEN MINH HUONG
Founded		2003
Type of Business		Liability Limited Company
Business Registration No.		No. 4102014247
Date of Issuance		March 3^rd, 2003
Place of Issuance		Planning and Investment Department of HoChiMinh City
Registered Capital		300,000,000 VND
Tax Code		0302881386
Total Employees		12 employees
Qualification		Normal
ADDRESS
Head Office
Address		2/36 D, Dat Thanh Str, Ward 6, Tan Binh Dist, Hochiminh city
Country		Vietnam
Tel		(84-8) 2963271
Fax		(84-8) 2653828
Email		doanhtuan@yahoo.com
DIRECTORS
1. NAME		Mrs. NGUYEN LIEN HUONG
Position		Director - Legal representative
Qualification		Bachelor
Date of birth		March 7^th, 1969
ID No		022382704
Place of issuance		Police Station of HoChiMinh City
Resident		2/36 D, Dat Thanh Str, Ward 6, Tan Binh Dist, HoChiMinh City
Nationality		Vietnamese
Tel		+84908039436
2. NAME		Mr. DO ANH TUAN
Position		Vice - Director
Qualification		Bachelor
ID No		023003866
Resident		2/36 D, Dat Thanh Str, Ward 6, Tan Binh Dist, HoChiMinh City
Nationality		Vietnamese
Tel		+84903946686
Email		doanhtuan@yahoo.com
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in the following activities:
· Trading in iron and steel; equipment machines; motor vehicles; farm and fishery products. · Trading in chemicals, rubber, wood products. · Trading in health equipment.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject mainly imports products from Europe, Southeast Asia.
EXPORT: N/A
BANKERS
VIETNAM INTERNATIONAL COMMERCIAL JOINT-STOCK BANK ( VIB BANK)
Address		No.92 Nam Ky Khoi Nghia Str, Ben Nghe Ward, Dist 1, HCMC
Country		Vietnam
Tel		(84-8) 8217687
Fax		(84-8) 8216788
Swift		VNIBVNVX
SHAREHOLDERS
The subject is a Limited liability company. Following are its owners:
1. NAME		Mrs. NGUYEN LIEN HUONG
Position		Director - Legal representative
Qualification		Bachelor
Date of birth		March 7^th, 1969
ID No		022382704
Place of issuance		Police Station of HoChiMinh City
Resident		2/36 D, Dat Thanh Str, Ward 6, Tan Binh Dist, Hochiminh city
Nationality		Vietnamese
Share		66.667 %
Value		200,000,000 VND
2. NAME		Mr. DO ANH TUAN
Position		Shareholder
Qualification		Bachelor
ID No		023003866
Place of issuance		Police Station of HoChiMinh City
Resident		2/36 D, Dat Thanh Str, Ward 6, Tan Binh Dist, Hochiminh city
Share		33.333 %
Value		100,000,000 VND
Note		Mr. Do Anh Tuan is husband of Mrs. Nguyen Lien Huong (Director of Company).
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Normal
Liquidity		Normal
Previous Payments		Normal
Payment status		Normal
Past Financial Situation		Normal
Current Financial Situation		Average
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)
FINANCIAL DATA
BALANCE SHEET
Unit: 01 VND
Balance sheet date			31/12/2006	31/12/2005
Number of weeks			52	52
ASSETS
A -	CURRENT ASSETS		1,183,000,000	340,000,000
I.	Cash and cash equivalents		354,000,000	224,000,000
1.	Cash		354,000,000	224,000,000
2.	Cash equivalents		0	0
II.	Short-term investments		0	0
1.	Short-term investments		0	0
2.	Provisions for short-term investment of short- term investments in securities		0	0
III.	Accounts receivable		0	0
1.	Receivable from customers		0	0
2.	Repayments to suppliers		0	0
3.	Inter- company receivable		0	0
4.	Receivable according to the process of construction contracts		0	0
5.	Other receivable		0	0
6.	Provisions for credit risk		0	0
IV.	Inventories		769,000,000	114,000,000
1.	Inventories		769,000,000	114,000,000
2.	Provisions for devaluation of inventories		0	0
V.	Other current assets		60,000,000	2,000,000
1.	Short-term repaid expenses		0	0
2.	Taxes receivable		36,000,000	2,000,000
3.	Other current assets		24,000,000	0
B -	LONG TERM ASSETS		0	0
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 receivable		0	0
4.	Provisions for bad debts		0	0
II.	Fixed assets		0	0
1.	Tangible assets		0	0
	Historical costs		0	0
	Accumulated depreciation		0	0
2.	Financial leasehold assets		0	0
	Historical costs		0	0
	Accumulated depreciation		0	0
3.	In-tangible assets		0	0
	Historical costs		0	0
	Accumulated depreciation		0	0
4.	Construction in progress		0	0
III.	Investment property		0	0
	History 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 investments in securities		0	0
V.	Other long term assets		0	0
1.	Long term repaid expenses		0	0
2.	Deferred income tax		0	0
3.	Other long term assets		0	0
	TOTAL ASSETS		1,183,000,000	340,000,000
LIABILITIES
A -	LIABILITIES		824,000,000	14,000,000
I.	Short term liabilities		824,000,000	14,000,000
1.	Short term debts and loans		843,000,000	0
2.	Payable to suppliers		0	0
3.	Advances from customers		0	0
4.	Taxes and other obligations to the State Budget		-19,000,000	14,000,000
5.	Payable to employees		0	0
6.	Accrued expenses		0	0
7.	Inter- company payable		0	0
8.	Payable according to the progress of construction contracts		0	0
9.	Other payables		0	0
II.	Long term liabilities		0	0
1.	Long term account payable to suppliers		0	0
2.	Long term inter- company payable		0	0
3.	Other long term payable		0	0
4.	Long term debts and loans		0	0
5.	Deferred income tax		0	0
B -	OWNER’S EQUITY		359,000,000	326,000,000
I.	Owner’s equity		359,000,000	326,000,000
1.	Capital		300,000,000	300,000,000
2.	Share premiums		0	0
3.	Treasury stocks		0	0
4.	Differences on asset re-valuation		0	0
5.	Foreign exchange differences		0	0
6.	Business promotion fund		0	0
7.	Financial reserved fund		0	0
8.	Other funds		0	0
9.	Retained earnings		59,000,000	26,000,000
II.	Other sources and funds		0	0
1.	Bonus and welfare funds		0	0
2.	Sources of expenditure		0	0
3.	Funds to form fixed assets		0	0
	TOTAL LIABLITIES AND OWNER’S EQUITY		1,183,000,000	340,000,000
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Description		F/Y 2006
1.	Sales		3,269,000,000
2.	Deductions		0
3.	Net sales		3,269,000,000
4.	Costs of goods sold		3,113,000,000
5.	Gross profit		156,000,000
6.	Financial income		2,000,000
7.	Financial expenses		36,000,000
	- In which: Loan interest expenses		0
8.	Selling expenses		4,000,000
9.	Administrative overheads		72,000,000
10.	Net operating profit		46,000,000
11.	Other income		0
12.	Other expenses		0
13.	Other profits		0
14.	Profit (loss) before tax		46,000,000
15.	Income tax		0
16.	Profit (loss) after tax		46,000,000
FINANCIAL FACTORS
Description			FY 2006
Current Liquidity Ratio			1.44
Quick Liquidity Ratio			0.50
Inventory Circle			7.05
Average Receive Period			0.00
Utilizing Asset Performance			2.76
Liability / Total Asset (%)			69.65
Liability / Owner's Equity (%)			229.53
Income Before Tax / Total Asset (%) ROA			3.89
Income Before Tax / Owner's Equity (%) ROE			12.81
Income Before Tax / Total Revenue (%) NPM			1.41
Gross Profit / Total Revenue (%) GPM			4.77
INTERPRETATION
The subject is a limited liability company that was established in the year 2003. The subject is specialized in trading in iron and steel, equipment machines, motor vehicles, farm and fishery products. Products for trading of the subject are mainly imported from Europe, Southeast Asia. In domestic market, main suppliers of the subject are construction companies in Dong Nai and Binh Duong provinces. At present, the subject also sells retail in HoChiMinh City and neighboring provinces. The subject started operation at the same time with a small scale. Its registered capital is humble, only 300,000,000 VND. The total employees at currently is about 12 ones. However, after 4 years of operating in this field, everything seems the started point. The subject has established relation with some traditional partners and its products are known by many investors in domestic market. The premises and facilities of the subject are normal. Its organization and management ability are relative. The business operation of the subject is busy now. Its market share is rather stable. In overview, the subject is operating normally at the small scale and the future prospect is normal as well. It is necessary for the subject to expand its scale to compete with other competitors.
The company’s stability is expected to be IMPAIRED by adverse changes in circumstances and economic conditions.

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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