MIRA INFORM REPORT

Report Date :

22.10.2007

IDENTIFICATION DETAILS

Name :	VIET BINH PHAT TRADING COMPANY LIMITED
Registered Office :	No. 91/3 Tran Binh Trong Str, Ward 2, Dist 5, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	October 29^th 1997
Legal Form :	Liability Limited Company
Line of Business :	Trading in industrial chemicals for paint, ink, rubber… crop protection chemicals and paper.

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		VIET BINH PHAT TRADING COMPANY LIMITED
Vietnamese Name		CONG TY TNHH THUONG MAI VIET BINH PHAT
Abbreviation		V.B.P CO., LTD
Founded		1997
Established Decision		No. 2589/GP
Issued on		October 29^th 1997
Issued by		People’s Committee of Hochiminh City
Type of Business		Liability Limited Company
Business registration		No. 042716
Issued on		March 11^th1998
Issued by		Planning and Investment Department of Ho Chi Minh City
Current Registered Capital		25,000,000,000 VND
Former Registered Capital		15,000,000,000 VND
Tax code		0301267504
Total Employees		90 employees of the company
Qualification		Normal
Notes: The latest subject’s business license has been changed on October 19^th, 2006 to raise its registered capital up to 25 billion VND & changed the registered shareholders.
ADDRESSES
Head Office:
Address		No. 91/3 Tran Binh Trong Str, Ward 2, Dist 5, Hochiminh city
Country		Vietnam
Tel		(84-8) 8383620
Fax		(84-8) 9235563
Email		daphagroup@hcm.vnn.vn
Branch - Transaction Location:
Address		No. 550 Tran Hung Dao Str, Ward 2, Dist 5, Hochiminh city, Vietnam
Tel		(84-8) 9234142 – 9235044
Fax		(84-8) 9235563
Email		daphacorp@hcm.fpt.vn
DIRECTORS
1. NAME		Mr. HO NAM THANG
Position		Director
Qualification		Bachelor
Date of birth		January 01^st1961
ID No		020853346
Issued on		March 04^th, 2005
Issued by		Police Station of Hochiminh City
Resident		No. 16/61 Lu Gia Housing Compound, Ward 15, Dist 11, Hochiminh city
Nationality		Vietnamese
2. NAME		Mr. TRAN VAN HAU
Position		Import - Export Manager
Qualification		Bachelor
Resident		Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Tel		+84 903 823075
3. NAME		Mr. HUYNH QUOC HUNG
Position		Sales Manager of Chemical
Qualification		Bachelor
Resident		Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Tel		(84-8) 8383707
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in trading in industrial chemicals for paint, ink, rubber… crop protection chemicals and paper. Registered trading items: Trading in materials, chemicals for paint, ink and rubber, crop protection chemicals, equipment of refrigeration electricity, electric appliances Repair and maintenance services of refrigeration electricity Industrial and civil construction Agent for goods on consignment
IMPORT & EXPORT ACTIVITIES
IMPORT: The goods source of the Subject is imported from UK, France, Germany, Singapore, Taiwan, Korea, Japan, Thailand, India and Malaysia.
EXPORT: N/A
BANKERS
1. EXIMBANK – HOCHIMINH CITY
Address		No.7 Le Thi Hong Gam Str, Dist 1, Hochiminh city, Vietnam
Tel		(84-8) 821 0055
Fax		(84-8) 829 6063
Telex		812690 EIB VT
Swift		EBVIVNVX
SHAREHOLDERS (S)
The Subject is a Liability Limited Company. It has just changed the shareholder & capital on October 2006. Following are current shareholders:
1. NAME		Mr. HO NAM THANG
Position		Director
Qualification		Bachelor
Date of birth		January 01^st1961
ID No		020853346
Issued on		March 04^th, 2005
Issued by		Police Station of Hochiminh City
Resident		No. 16/61 Lu Gia Housing Compound, Ward 15, Dist 11, Hochiminh city
Nationality		Vietnamese
Shares		72%
Value		18,000,000,000 VND
2. NAME		Mr. LE HUU HONG
Position		Shareholder
Resident		No.493/11 Cach Mang Thang Tam Str, Ward 13, Dist 10, Hochiminh City.
Nationality		Vietnamese
Shares		28%
Value		7,000,000,000 VND
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Normal
Liquidity		Fairly good
Previous Payment Status		Normal
Current Payment Status		Fairly good
Past Financial Situation		Normal
Current Financial Situation		Fairly good
Legal Action		No recorded
Bankruptcy		No recorded
Reputation		Normal
Mode of Payment		Direct payment or through its corresponding bank, L/C, D/P, T.T
Sales methods		Direct sale to clients
FINANCIAL DATA
BALANCE SHEET
Unit: VND
Balance Sheet Date	31/12/2006		31/12/2005				31/12/2004			31/12/2003
Number of Weeks	52		52				52			52
ASSETS
A. Current assets & Short term Investment	64,141,216,118		37,283,370,563				48,975,795,609			33,225,383,813
I. Cash and cash equivalents	3,274,689,501		1,607,217,852				1,934,934,306			2,466,105,943
II. Short term investment	0		0				0			0
III. Receivables	22,657,690,425		18,511,091,920				31,509,628,900			19,951,923,594
1. Receivables from customers	19,658,886,355		15,345,404,839				29,983,807,661			18,926,870,239
2. Prepaid for providers	813,615,043		426,140,700				1,525,821,239			1,025,053,355
3. Value-added tax deducted	0		0				0			0
4. Internal receivables	0		0				0			0
5. Other receivables	2,185,189,027		2,739,546,381				0			0
6. Provision for bad receivables							0			0
IV. Inventory	35,885,285,640		15,728,270,478				14,807,645,661			10,371,915,439
1. Purchased goods in transit	35,885,285,640		15,728,270,478				14,807,645,661			10,371,915,439
2. Inventory raw materials	0		0				0			0
3. Inventory appliance	0		0				0			0
4. Cost for production and business in process	0		0				0			0
5. Inventory finished products	0		0				0			0
6. Inventory cargoes	0		0				0			0
7. Entrusted goods for sale	0		0				0			0
8. Provision for devaluation of stocks	0		0				0			0
V. Other current assets	2,323,550,552		1,436,790,313				723,586,742			435,438,837
1. Advances	49,605,947		1,436,790,313				723,586,742			435,438,837
2. Prepaid expenses	2,188,221,237		0				0			0
3. Pending expenses for transfer	85,723,368		0				0			0
4. Pending assets	0		0				0			0
5. Hypothecation, collateral and short run collateral	0		0				0			0
VI. Administrative	0		0				0			0
1. Administrative expenses for previous year	0		0				0			0
2. Administrative expenses for current year	0		0				0			0
B. Fixed assets & Long term investment:	1,323,296,577		1,441,879,739				847,273,756			1,095,030,626
I. Fixed assets	335,848,619		465,979,739				590,473,756			838,230,626
1. Tangible fixed assets	335,848,619		465,979,739				590,473,756			838,230,626
+ Original cost	1,163,082,701		1,171,893,800				1,324,893,800			1,303,748,286
+ Accumulated depreciation value	-827,234,082		-705,914,061				-734,420,044			-465,517,660
2. Fixed assets of financing credit	0		0				0			0
+ Original cost	0		0				0			0
+ Accumulated depreciation value	0		0				0			0
3. Intangible fixed assets	0		0				0			0
+ Original cost	0		0				0			0
+ Accumulated depreciation value	0		0				0			0
II. Long term investment	975,900,000		975,900,000				256,800,000			256,800,000
1. Long-term securities investment	975,900,000		975,900,000				256,800,000			256,800,000
2. Joint-venture capital contribution	0		0				0			0
3. Other long-term investment	0		0				0			0
4. Provision for long-term investment devaluation	0		0				0			0
III. Capital construction in process	0		0				0			0
IV. Other	11,547,958
TOTAL ASSETS	65,464,512,695		38,725,250,302				49,823,069,365			34,320,414,439
LIABILITIES
A. Payables	47,764,789,490		22,143,031,282				38,757,718,887			24,019,897,551
I. Short term payables	47,764,789,490		22,143,031,282				38,757,718,887			24,019,897,551
1.Short-term borrowings	39,200,000,000		6,720,000,000				11,825,000,000			8,450,565,000
2. Due long-term liabilities	8,232,967,958		14,311,567,684				6,500,000,000			0
3. Payable to seller	0		820,189,490				13,665,761,471			11,744,317,508
4. Prepaid buyer	331,821,532						0			0
5. Taxes and accounts dutiable	0		291,274,108				751,732,116			725,015,043
6. Employee payments	0		0				0			0
7. Internal payments	0		0				0			0
8. Other payables	0		0				6,015,225,300			3,100,000,000
II. Long term payables	0		0				0			0
1. Long-term borrowing	0		0				0			0
2. Long-term loans	0		0				0			0
III. Other liabilities	0		0				0			0
1. Disbursement payable
2. Pending assets	0		0				0			0
3. Receipts long-term collateral and deposit	0		0				0			0
B. Owner’s Equity	17,699,723,205		16,582,219,020				11,065,350,478			10,300,516,888
I. Capital and Funds	17,594,450,205		16,476,946,020				11,037,580,478			10,276,316,888
1. Working capital	15,000,000,000		15,000,000,000				9,500,000,000			9,500,000,000
2. Differences from assets revaluation			0				0			0
3. Exchange rate differences			0				0			0
4. Business development fund	97,073,410		97,073,410				0			0
5. Reserved fund	325,602,782		325,602,782				0			0
6. Retained profit	2,171,774,013		1,054,269,828				1,537,580,478			776,316,888
7. Construction capital sources			0				0			0
II. Other administrative and fund sources	105,273,000		105,273,000				27,770,000			24,200,000
1. Provident funds for unemployment	105,273,000		105,273,000				27,770,000			24,200,000
2. Welfare and reward funds	0		0				0			0
3. Management funds of higher level	0		0				0			0
4. Functional operation funds	0		0				0			0
5. Fund sources formed by fixed assets	0		0				0			0
TOTAL LIABILITY AND EQUITY	65,464,512,695		38,725,250,302				49,823,069,365			34,320,414,439
PROFIT & LOSE ACCOUNTS
Description	F/Y 2006				F/Y 2005			F/Y2004		F/Y 2003
Total revenue	197,271,311,351				208,368,393,503			226,313,849,020		149,891,503,328
Deductions Items	0				0			0		0
- Discount
- Devaluation of sale price
- Return of sold goods
- Turnover tax, excise tax, import and export duties to be paid
1. Net revenue	197,271,311,351				208,368,393,503			226,313,849,020		149,891,503,328
2. Original rate of goods for sale	178,720,548,177				201,137,714,411			218,613,466,358		143,907,989,692
3. Combined Profit	18,550,763,174				7,230,679,092			7,700,382,662		5,983,513,636
4. Sales costs	13,702,378,440				3,245,917,224
5. Enterprise administrative costs	1,057,117,937				1,651,182,721
6. Net income from business activity	3,791,266,797				2,333,579,147			2,469,312,101		1,940,776,841
Income from financial activities	310,682,627				45,262,953
Costs for financial activities	2,507,752,829				1,605,166,421
7. Net income from financial operation	-2,197,070,202				-1,559,903,468			-1,316,742,967		-691,435,119
Irregular income	3,824,667				27,898,849
Irregular expenditure	345,066				242,979,806
8. Irregular Profit	3,479,601				-215,080,957			-40,430,685		9,015,881
9. Total pre-tax profit	1,597,676,196				558,594,722			1,093,822,489		623,577,376
10. Income tax	454,419,615				238,857,017			318,788,817		199,544,376
11. After tax profit	1,143,256,581				319,737,705			775,033,672		424,033,000
FINANCIAL FACTORS
Description				2006		2005			2004		2003
Current Liquidity Ratio				1.34		1.68			1.26		1.38
Quick Liquidity Ratio				0.59		0.97			0.88		0.95
Inventory Circle				6.93		13.17			17.36		13.87
Average Receive Period				41.92		32.43			50.82		48.58
Utilizing Asset Performance				3.01		5.38			4.54		4.37
Liability / Total Asset (%)				72.96		57.18			77.79		69.99
Liability / Owner's Equity (%)				269.86		133.53			350.26		233.19
Income Before Tax / Total Asset (%) ROA				2.44		1.44			2.20		1.82
Income Before Tax / Owner's Equity (%) ROE				9.03		3.37			9.89		6.05
Income Before Tax / Total Revenue (%) NPM				0.81		0.27			0.48		0.42
Gross Profit / Total Revenue (%) GPM				9.40		3.47			3.40		3.99
INTERPRETATION
Viet Binh Phat Company Limited was established in 1997. The subject is specializing in trading in industrial chemicals for paint, ink, rubber, crop protection chemicals and paper. The goods source of the subject are imported from UK, France, Germany, Singapore, Taiwan, Korea, Japan, Thailand, India (Rutmarg Commercials Pvt Ltd) and Malaysia. The consumptive market of the subject is inland. Established since 1997, the subject has achieved a good market share and the regular customers of the subject are pretty numerous. Currently, the subject is running well and has good prospects of development. The market of the subject is Mekong Delta area in the country. The subject was established so long so it has stable but not large. Besides, Viet Binh Phat Co., ltd has an association named “Dai Phat Joint Stock Trading and Manufacturing Company” - abbreviated as Daphaco. Mr. Nguyen Van Sinh (the former shareholder of subject) is the director of Daphaco. Daphaco is a rather big and well known manufacturer and trader in natural drinking water, steel count, chemicals & pesticides, steel water tank and art copper. The premises and facilities of the subject are normal. The management capacity of the subject is normal. The business operations of the subject are busy. Competitive capability of the subject is fairly good. Annual turnover and profits of the subject are rather good. The subject is one of the enterprises operating at the medium scale. The position of the subject in the industry is average. The subject has good potentiality of development and considered as one of the enterprises that have long history of operating rather effectively in this industry.

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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