MIRA INFORM REPORT

Report Date :

19.11.2007

IDENTIFICATION DETAILS

Name :	TAN HUNG THAI COMPANY LIMITED
Registered Office :	Lot H1, Street Number 1, Le Minh Xuan Industrial Zone, Binh Chanh Dist, Ho Chi Minh City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	2003
Legal Form :	Limited Liability Company
Line of Business :	Trading in chemicals; Trading in chemicals, processing chemicals for industrial branch and processing food-stuffs; Trading and processing solvent for printing ink, paint; Packing chemicals; Warehouse services; Process and aquaculture.

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	TAN HUNG THAI COMPANY LIMITED
Vietnamese Name	CONG TY TNHH TAN HUNG THAI
Trade name	TAN HUNG THAI CO., LTD
Former Vietnamese Name	CONG TY TNHH THUONG MAI TAN HUNG THAI
Founded	2003
Type of Business	Limited Liability Company
Business registration	No.4102014478
Issued on	March 13^th, 2003
Issued by	Planning and Investment Department of HoChiMinh City
Current Registered Capital	8,200,000,000 VND
Former Registered Capital	2,500,000,000 VND
Tax Code	0302887282
Total Employees	40 Employees of the Company
Qualification	Normal
ADDRESS
Registered Head Office & Warehouse Location:
Address	Lot H1, Street Number 1, Le Minh Xuan Industrial Zone, Binh Chanh Dist, Ho Chi Minh City
Country	Vietnam
Tel	(84-8) 7662174, 7662173
Fax	(84-8) 7662175
Branch and Transaction Office
Address	No.284, Hai Thuong Lan Ong Str, Ward 14, Dist 5, Hochiminh city
Country	Vietnam
Tel	(84-8) 855 9358, 9509014
Fax	(84-8) 853 8606
Email	tanhungthai@yahoo.com

DIRECTORS
1. Name		Mr. LE HUNG THAI
Position		Director
Qualification		Management
Born		June 03^rd, 1970
ID No		022557128
Issued on		October 12^th, 1996
Issued by		Police Station of Hochiminh City
Address		No.284, Hai Thuong Lan Ong Str, Ward 14, Dist 5, Hochiminh City
Nationality		Vietnamese
Hand Phone		+ 84 903 733 138
2. Name		Mr. TRAN MINH TAM
Position		Deputy Manager
Qualification		Bachelor
Address		No. 295A, Nguyen Duy Str, Ward 8, Dist 5, Hochiminh city
Nationality		Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject registered in the following lines of business: ü Trading in chemicals. ü Trading in chemicals, processing chemicals for industrial branch and processing food-stuffs. ü Trading and processing solvent for printing ink, paint. ü Packing chemicals. ü Warehouse services. ü Process and aquaculture.
IMPORT & EXPORT ACTIVITIES
IMPORT: The Subject imports goods for trading from Thailand, Taiwan, Indonesia, China, Singapore, Japan, Korea, USA and Germany
EXPORT: N/A
BANKERS
1. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK) – BINH TAY BRANCH
Address		No. 129-129A, Hau Giang Str, Dist 6, Hochiminh City
Country		Vietnam
Tel		(84-8) 9 600 484 - 9 600 931
2. ASIA COMMERCIAL JOINT STOCK BANK (ACB BANK)
Address		No.442 Nguyen Thi Minh Khai Str, Ward 5, Dist 3, Hochiminh city
Country		Vietnam
Tel		(84-8) 8334085 - 8395179
Fax		(84-8) 8359156
Telex		813158ACBVT
Swift		ASCBVNVX
3. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM (INCOMBANK) BRAND NO. 1
Address		No. 93 - 95 Ham Nghi Str, Nguyen Thai Binh Ward, Dist 1, Hochiminh city
Country		Vietnam
Tel		(84-8) 8215388 - 8210089
Fax		(84-8) 8290696
Swift		ICBVVNVX902
SHAREHOLDERS
1. NAME		Mr. LE HUNG THAI
Position		Director
Qualification		Management
Date of Birth		June 03^rd, 1970
ID No.		022557128
Issued by		Police Station of Ho Chi Minh City
Resident		No.284, Hai Thuong Lan Ong Str, Ward 14, Dist 5, Hochiminh city
Nationality		Vietnamese.
Current Shares		79.27%
Current Value		6,500,000,000 VND
Former Shares		68 %
Former Value		1,700,000,000 VND
2. NAME		Mr. TRAN MINH TAM
Position		Deputy Director
Qualification		Bachelor
ID No.		021652400
Issued by		Police Station of Ho Chi Minh City
Resident		No. 295A, Nguyen Duy Str, Ward 8, Dist 5, Hochiminh city
Country		Vietnamese
Shares		20.73%
Value		1,700,000,000 VND
Former Shares		32 %
Former Value		800,000,000 VND
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Average
Liquidity		Average
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), by telegraphic transfer (T/T).
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date			31/12/2006
Number of weeks			52
ASSETS
A -	CURRENT ASSETS		29,582
I.	Cash and cash equivalents		5,660
1.	Cash		5,660
2.	Cash equivalents		0
II.	Short-term investments		0
1.	Short-term investments		0
2.	Provisions for short-term investment of short- term investments in securities		0
III.	Accounts receivable		6,038
1.	Receivable from customers		5,409
2.	Repayments to suppliers		1
3.	Value-added tax deducted		0
4.	Inter- company receivable		0
5.	Receivable according to the process of construction contracts		628
6.	Other receivable		0
IV.	Inventories		16,249
1.	Inventories		16,249
2.	Provisions for devaluation of inventories		0
V.	Other current assets		1,635
1.	Short-term repaid expenses		50
2.	Taxes receivable		1,109
3.	Other current assets		476
B -	LONG TERM ASSETS		5,366
I.	Long term accounts receivable		0
1.	Long term accounts receivable from customers		0
2.	Long term inter- company receivable		0
3.	Other long term receivable		0
4.	Provisions for bad debts		0
II.	Fixed assets		2,881
1.	Tangible assets		2,881
	Original costs		3,420
	Accumulated depreciation		-539
2.	Financial leasehold assets		0
	Original costs		0
	Accumulated depreciation		0
3.	In-tangible assets		0
	Original costs		0
	Accumulated depreciation		0
4.	Construction in progress		0
III.	Investment property		0
	History costs		0
	Accumulated depreciation		0
IV.	Long term investments		0
1.	Investments in affiliates		0
2.	Investments in business concerns and joint ventures		0
3.	Other long term investments		0
4.	Provisions for devaluation of investments in securities		0
V.	Other long term assets		2,485
1.	Long term repaid expenses		2,485
2.	Deferred income tax		0
3.	Other long term assets		0
	TOTAL ASSETS		34,948
LIABILITIES
A -	LIABILITIES		24,842
I.	Short term liabilities		7,542
1.	Short term debts and loans		0
2.	Payable to suppliers		6,673
3.	Advances from customers		26
4.	Taxes and other obligations to the State Budget		843
5.	Payable to employees		0
6.	Accrued expenses		0
7.	Inter- company payable		0
8.	Payable according to the progress of construction contracts		0
9.	Other payables		0
II.	Long term liabilities		17,300
1.	Long term account payable to suppliers		0
2.	Long term inter- company payable		0
3.	Other long term payable		0
4.	Long term debts and loans		17,300
5.	Deferred income tax		0
B -	OWNER’S EQUITY		10,106
I.	Owner’s equity		10,048
1.	Capital		8,200
2.	Share premiums		0
3.	Treasury stocks		0
4.	Differences on asset re-valuation		0
5.	Foreign exchange differences		0
6.	Business promotion fund		39
7.	Financial reserved fund		0
8.	Other funds		0
9.	Retained earnings		1,809
II.	Other sources and funds		58
1.	Bonus and welfare funds		58
2.	Sources of expenditure		0
3.	Funds to form fixed assets		0
	TOTAL LIABLITIES AND OWNER’S EQUITY		34,948
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Items		F/Y 2006
1.	Sales		109,052
2.	Deductions		0
3.	Net sales		109,052
4.	Costs of goods sold		103,749
5.	Gross profit		5,303
6.	Financial income		20
7.	Financial expenses		1,790
	- In which : Loan interest expenses		1,689
8.	Selling expenses		1,239
9.	Administrative overheads		707
10.	Net operating profit		1,587
11.	Other income		2
12.	Other expenses		1
13.	Other profits		1
14.	Profit (loss) before tax		1,588
15.	Income tax		0
16.	Profit (loss) after tax		1,588
FINANCIAL FACTORS
Description			FY 2006
Current Liquidity Ratio			3.92
Quick Liquidity Ratio			1.77
Inventory Circle			6.38
Average Receive Period			20.21
Utilizing Asset Performance			3.12
Liability / Total Asset (%)			71.08
Liability / Owner's Equity (%)			245.81
Income Before Tax / Total Asset (%) ROA			4.54
Income Before Tax / Owner's Equity (%) ROE			15.71
Income Before Tax / Total Revenue (%) NPM			1.46
Gross Profit / Total Revenue (%) GPM			4.86
INTERPRETATION
The Subject Company was established in 2003. It specializes in trading in chemicals. The subject imports goods from China, Japan, Germany, and Indonesia to trade in local market. Although the subject has just founded in March 2003, it is now running effectively with a stable market and clients. Premises and facilities of the subject is relative good. Management capability is normal. Chemical is profitability field in Vietnam nowadays but competition in this field is so hard. Advantage of this company is that it has good relation with key suppliers and the subject’s owner has experiences in this field. Comparing with others in the same field, this subject is a medium size enterprise that has normal operation and finance status. Generally, the Subject is a fairly new entity but it has grown rather well. Future development prospect of this company is rather bright. Liquidity is normal. The subject has good payment history with banks and suppliers. No caution needed for average size payments.

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%)

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