MIRA INFORM REPORT

Report Date :

26.09.2007

IDENTIFICATION DETAILS

Name :	LABORATORY AND TECHNOLOGY CHEMICALS EQUIPMENT JOINT STOCK COMPANY
Registered Office :	No.13, Lot 1B, Trung Yen New Urban Zone, Trung Hoa ward, Cau Giay Dist, Hanoi City
Country :	Vietnam
Financials (as on) :	31.12.2004
Date of Incorporation :	2003
Legal Form :	Joint Stock Company
Line of Business :	Trading in various kinds of chemicals for research, foodstuff, training, testing, etc. Supplying and Trading in materials and technical equipments, medical instruments & lap equipments for schools and hospitals. Trading in production materials & consumption goods.

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 :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	LABORATORY AND TECHNOLOGY CHEMICALS EQUIPMENT JOINT STOCK COMPANY
Vietnamese name	CONG TY CO PHAN HOA CHAT - THIET BI PHONG THI NGHIEM VA CONG NGHE
Trade Name	LABOTECH., JSC
Abbreviated Name	LABOTECH
Founded	2003
Type of Business	Joint Stock Company
Business Registration	No. 0103002004
Issued on	March 17^th, 2003
Issued by	Planning & Investment Department of Hanoi City
Current Legal Capital	3,500,000,000 VND
Former Legal Capital	1,000,000,000 VND
Tax code	0101348114
Total Employees	14 persons
Qualification	Fairly good
Note: The given subject’s name is not the full name of company. The subject has just increased its capital to 3.5 billion VND in early 2007.
ADDRESSES
Current Head Office
Address	No.13, Lot 1B, Trung Yen New Urban Zone, Trung Hoa ward, Cau Giay Dist, Hanoi city
Country	Vietnam
Tel	(84-4) 7832672, 7832673
Fax	(84-4) 7832671
Email	labotech@hn.vnn.vn
Website	www.labotechvietnam.com
Note: The subject has moved to this location since early 2007.
Former Head Office:
Address	No.1, 121 Lane, Thai Thinh I Alley, Thai Thinh Str, Dong Da Dist, Hanoi City
Country	Vietnam.
Tel	(84-4) 562 4071/ 562 4072
Fax	(84-4) 562 4070
DIRECTORS
1. NAME	Ms. DAO THI XUAN HUONG
Position	Director / Chairwoman
Education	Graduated from Polytechnic University
Resident	No.1, 121 Lane, Thai Thinh I Alley, Thai Thinh Str, Dong Da Dist, Hanoi City, Vietnam.
Nationality	Vietnamese
Hand phone	+84 913560043
2. NAME	Mr. DAO ANH DUC
Position	Former Director
Education	Graduated from Polytechnic University
Qualification	Engineer
Date of birth	January 9^th, 1976
Resident	No.28 Lane 81/24/3 Lac Long Quan Str, Nghia Do Ward, Cau Giay Dist, Hanoi City
Nationality	Vietnamese
Hand phone	+84 913537663
Note: In the past, Mr. Dao Anh Duc was the director of company. Now, he leaves the subject to set up a new company for his business.
BUSINESS NATURE AND ACTIVITIES
The subject focuses on the following activities: 1. Trading activities: Including Trading in various kinds of chemicals for research, foodstuff, training, testing, etc Supplying and Trading in materials and technical equipments, medical instruments & lap equipments for schools and hospitals. Trading in production materials & consumption goods 2. Service activities: Including Consulting services on science, technology, environment, and so on Consulting services and installation of lab Agent for goods of some firms in the world such as USBIO (America), Hirschmawn, Hettich (Germany), Jencoos (England), etc.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports materials, equipments & chemicals from: American, Germany, England
EXPORT: N/A
BANKERS
1. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM – CAU GIAY BRANCH
Address		No.117A Hoang Quoc Viet Str, Cau Giay Dist, Hanoi City
Country		Vietnam
Tel		(84-4) 754 2072
Fax		(84-4) 754 2065
Account No		10210000057800
SHAREHOLDER
Shareholders on legal document:
1. NAME		Mr. DAO ANH DUC
Position		Shareholder
Resident		No.28 Lane 81/24/3 Lac Long Quan Str, Nghia Do Ward, Cau Giay Dist, Hanoi City.
Nationality		Vietnamese
Share		40%
2. NAME		Mr. TRAN SINH DAU
Position		Shareholder
Resident		Tien Thang Commune, Ly Nhan Dist, Ha Nam Province.
Nationality		Vietnamese
Share		30.3%
Hand phone		+84 913559568
3. NAME		Mrs. DAO THI XUAN HUONG
Position		Director
Date of birth		October 27^th, 1975
Resident		No.1, 121 Lane, Thai Thinh I Alley, Thai Thinh Str, Dong Da Dist, Hanoi City, Vietnam.
Nationality		Vietnamese
Share		29.7%
Shareholders in reality:
1. NAME		Mrs. DAO THI XUAN HUONG
Position		Director/ Chairwoman
Date of birth		October 27^th, 1975
Resident		No.1, 121 Lane, Thai Thinh I Alley, Thai Thinh Str, Dong Da Dist, Hanoi City, Vietnam
Nationality		Vietnamese
Share		40%
Value		1,400,000,000 VND
2. NAME		Mrs. NGUYEN DINH THANG
Position		Shareholder
Resident		Hanoi City.
Nationality		Vietnamese
Share		33%
Value		1,155,000,000 VND
3. NAME		Mrs. TRAN THI BICH HUONG
Position		Shareholder
Resident		Hanoi City.
Nationality		Vietnamese
Share		27%
Value		945,000,000 VND
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Fair
Liquidity		Fair
Current Payment Status		Average
Current Financial Situation		Average
Illegal action		No recorded
Bankruptcy		No recorded
Reputation		Normal
Modes of payment		Through corresponding bank
Development trend		Average
FINANCIAL DATA
BALANCE SHEET
Unit: VND million
Balance Sheet Date				31/12/2004		31/12/2003
Number of Weeks				52		52
ASSETS
A. Current assets & Short term Investment				1,752		1,168
I. Cash and cash equivalents				417		518
II. Short term investment				0		0
1. Short-term securities investment				0		0
2. Other short-term investment				0		0
3. Provision for devaluation of short-term investment				0		0
III. Receivables				622		336
1. Receivables from customers				622		336
2. Prepaid for providers				0		0
3. Value-added tax deducted				0		0
4. Internal receivables				0		0
5. Other receivables				0		0
6. Provision for bad receivables				0		0
IV. Inventory				686		314
1. Purchased goods in transit				0		0
2. Inventory raw materials				0		0
3. Inventory appliance				0		0
4. Cost for production and business in process				0		0
5. Inventory finished products				0		0
6. Inventory cargoes				686		314
7. Entrusted goods for sale				0		0
8. Provision for devaluation of stocks				0		0
V. Other current assets				27		0
1. Advances				0		0
2. Prepaid expenses				0		0
3. Pending expenses for transfer				0		0
4. Pending assets				0		0
5. Hypothecation, collateral and short run collateral				27		0
VI. Administrative				0		0
1. Administrative expenses for previous year				0		0
2. Administrative expenses for current year				0		0
B. Fixed assets & Long term investment				60		87
I. Fixed assets				60		87
1. Tangible fixed assets				60		87
+ Original cost				90		99
+ Accumulated depreciation value				-30		-12
2. Financial leasing fixed assets				0		0
+ Original cost				0		0
+ Accumulated depreciation value				0		0
3. Intangible fixed assets				0		0
+ Original cost				0		0
+ Accumulated depreciation value				0		0
II. Long term investment				0		0
1. Long-term securities investment				0		0
2. Joint-venture capital contribution				0		0
3. Other long-term investment				0		0
4. Provision for long-term investment devaluation				0		0
III. Capital construction in process				0		0
IV. Other				0		0
TOTAL ASSETS				1,812		1,255
LIABILITIES
A. Payables				800		250
I. Short term payables				800		250
1.Short-term borrowings				80		0
2. Due long-term liabilities				0		0
3. Payable to seller				733		246
4. Prepaid buyer				0		0
5. Taxes and accounts dutiable				-13		4
6. Employee payments				0		0
7. Internal payments				0		0
8. Other payables				0		0
II. Long term payables				0		0
1. Long-term borrowing				0		0
2. Long-term loans				0		0
III. Other liabilities				0		0
1. Disbursement payable				0		0
2. Pending assets				0		0
3. Receipts long-term collateral and deposit				0		0
B. Owner’s Equity				1,012		1,005
I. Capital and Funds				1,012		1,005
1. Working capital				1,000		1,000
2. Differences from assets revaluation				0		0
3. Exchange rate differences				0		0
4. Business development fund				0		0
5. Reserved fund				0		0
6. Retained profit				12		5
7. Construction capital sources				0		0
II. Other administrative and fund sources				0		0
1. Provident funds for unemployment				0		0
2. Welfare and reward funds				0		0
3. Management funds of higher level				0		0
4. Functional operation funds				0		0
5. Fund sources formed by fixed assets				0		0
TOTAL LIABILITY AND EQUITY				1,812		1,255
PROFIT AND LOSE ACCOUNT
Description			FY 2004		FY 2003
Total revenue			5,776		N/A
Deductions Items			0
- Discount
- Devaluation of sale price
- Return of sold goods
- Turnover tax, excise tax, import and export duties to be paid
1. Net revenue			5,776
2. Original rate of goods for sale			5,288
3. Combined Profit			488
4. Sales costs			0
5. Enterprise administrative costs			463
6. Net income from business activity			25
Income from financial activities			0
Costs for financial activities			18
7. Net income from financial operation			-18
Irregular income			3
Irregular expenditure			0
8. Irregular Profit			3
9. Total pre-tax profit			10
10. Income tax			3
11. After tax profit			7
FINANCIAL FACTORS
Description				2004	2003
Current liquidity ratio				2.19	4.67
Quick Liquidity ratio				1.33	3.42
Inventory circle				8.42	N/A
Average receive period				39.31	-
Utilizing Asset Performance				3.19	-
Liability/ Total Asset (%)				0.55	-
Liability/ Owner’s equity (%)				0.99	-
Income before tax/ Total asset (%) ROA				44.15	19.92
Income before tax/ Owner’s equity (%) ROE				79.05	24.88
Income before tax/ Total revenue (%) NPM				0.17	-
Gross Profit / Total revenue (%) GPM				8.45	N/A
And following is financial highlight of the year 2005:
Unit: VND million
Description				2005
Current assets & Short term Investment				1,793
Fixed assets & Long term investment				42
TOTAL ASSETS				1,835
Payables				816
Owner’s Equity				1,019
TOTAL LIABILITY AND EQUITY				1,835
Total revenue			4,816
Deductions Items			0
Net revenue			4,816
Net income from business activity			9
Net income from financial operation			0
Irregular Profit			0
Total pre-tax profit			9
INTERPRETATION
The subject is a joint stock company, which was established in March 2003 with three shareholders. The subject now specializes in two main field of business. The fists activity is doing commercial operation. It trades in chemicals & medical equipment, which is imported from USA, Germany and England… The main products that the subject is trading in are basic chemical products, analytic solven, and so on of Merck group firm – Germany. Currently, the subject is No.1 level agent of this firm in Vietnam. The customers of the subject are mainly agents and projects. Products of the subject are appreciated stable quality. In addition, the subject also focuses on service activities. It is consulting services on science, technology, environment, services and installation of lab. It also is the agent for goods of some firms in the world such as USBIO (America), Hirschmawn, Hettich (Germany), Jencoos (England), etc. The premises and facilities of the subject are normal. The management capability of the subject is rather good with 14 employees. The Subject’s position in the industry is still slow. However, it has prospect of development. The subject plans to develop and expand projects, distribute basic chemicals, products for veterinary, molecule biology, machinery serve experiment and research. In short, the subject is now operating on the small scale. The subject is capable to implement small and medium financial commitments. However, you should be caution if you would like to invest in the subject in a long term with normal and big financial contracts.
The company is expected to be VULNERABLE TO ADVERSE changes in circumstances and economic conditions.
CREDIT INQUIRY: 1,500,000 USD against DA term.
Caution needed.

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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