MIRA INFORM REPORT

Report Date :

11.04.2008

IDENTIFICATION DETAILS

Name :	VIET PHU THINH RUBBER JOINT STOCK COMPANY
Registered Office :	No. 204 Phan Van Han Str, Ward 17, Binh Thanh Dist, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	2003
Com. Reg. No.:	4103001492
Legal Form :	Joint Stock Company
Line of Business :	Trading and processing agricultural products, spare parts, and raw materials for production of plastic and rubber. Trading in chemicals Real estate, civil & industrial construction

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 :	Usually Correct
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM

English Name	VIET PHU THINH RUBBER JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN CAO SU VIET PHU THINH
Trade Name	VIET PHU THINH REBBER JS CO
Brand Name	VIRUCO
Type of Business	Joint Stock Company
Founded	2003
Business Registration No	4103001492
Issuance on	March 6^th 2003
Issuance by	Planning and Investment Department of Hochiminh City
Current Registered Capital	7,500,000,000 VND
Former Registered Capital	2,500,000,000 VND
Tax code	0302910157
Total Employees	40

ADDRESSES

Registered Head Office
Current Address		No. 204 Phan Van Han Str, Ward 17, Binh Thanh Dist, Hochiminh City
Former Address		No. 818/64 Xo Viet Nghe Tinh Str, Ward 25, Binh Thanh Dist, Hochiminh city
Country		Vietnam
Main Liaison Office
Address		No. 16/9 Ky Dong Str, Ward 9, Dist 3, Hochiminh City
Country		Vietnam
Tel		(84-8) 9350538 / 9350543
Fax		(84-8) 9350538 / 9350543
Email		pkd2@viruco-trading.com.vn
Website		www.viruco.com
DIRECTORS
1. NAME		Mr. VU ANH PHONG
Position		Director
Qualification		Management
DOB		October 17^th 1971
Indent No		024130943
Resident		No. 66/5 Nguyen Hong Str, Ward 1, Go Vap Dist, Hochiminh City
Nationality		Vietnam
2. NAME		Mr. NGUYEN QUOC CUONG
Position		Deputy Director
Qualification		Bachelor
Resident		Ho Chi Minh City – Vietnam
Nationality		Vietnamese
Note: Mr. Nguyen Quoc Cuong is former sales manager.
3. NAME		Mr. NGUYEN TRONG TIEN
Position		Chief of Accountant
Qualification		Bachelor
Resident		Hochiminh City – Vietnam
Nationality		Vietnamese
NAME		Mr. PHAM ANH SON
Position		Former Director
Qualification		Bachelor
Date of birth		August 08^th 1971
ID No		022714518
Issued on		June 18^th 2002
Issued by		Police Station of HoChiMinh City
Resident		No. 3A Bis Dien Bien Phu Str, Ward 25, Binh Thanh Dist, Hochiminh city
Nationality		Vietnamese
Note : Mr. Pham Anh Son has stopped working since 2005
NAME		Mrs. HOANG THI NGUYET NGA
Position		Former Deputy Director
Qualification		Bachelor
Resident		Hochiminh City – Vietnam
Nationality		Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in producing and trading rubber products.
Registered Items: Trading and processing agricultural products, spare parts, and raw materials for production of plastic and rubber. Trading in chemicals Real estate, civil & industrial construction
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports natural rubber from Thailand, Malaysia, Indonesia and Cambodia.
EXPORT: The subject exports its products to Spain, France, Germany, Turkey, Taiwan, Korea, India and China.
BANKERS
1. VIETNAM BANK FOR FOREIGN TRADE ( VIETCOMBANK)
Address		No.29 Ben Chuong Duong Str, Hochiminh City
Country		Vietnam
Tel		(84-8) 8251317
Fax No		(84-8) 8297228
Telex		811234/5 VVB-VT
Swift		BFTVVBVX 007
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. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK (TECHCOMBANK)
Address		No. 30 Phan Dang Luu Str, Ward 11, Binh Thanh Dist, Hochiminh City
Country		Vietnam
Tel		(84-8) 551 0410
Fax		(84-8) 551 0409
Swift		VTCBVNVX
4. UNITED OVERSEAS BANK
Address		Floor 1^st , No. 17 Le Duan Str, Ben Nghe Ward, Dist 1, Hochiminh City
Country		Vietnam
Tel		(84-8) 8251424
Fax		(84-8) 8251423
SHAREHOLDER(S)
1. NAME		Mr. VU ANH PHONG
Position		Director
Qualification		Management
DOB		October 17^th 1971
Indent No		024130943
Resident		No. 66/5 Nguyen Hong Str, Ward 1, Go Vap Dist, Hochiminh City
Nationality		Vietnam
Share		13.333%
Value		1,000,000,000 VND
2. NAME		Mrs. DUONG HONG HA
Position		Shareholder
Indent No		022104838
Resident		No. 157 Bis Tran Quoc Thao Str, Ward 9, Dist 3, Hochiminh City
Nationality		Vietnamese
Share		13.333%
Value		1,000,000,000 VND
3. NAME		Mrs. NGUYEN THI HUE
Position		Shareholder
Indent No		162050697
Resident		No. 165/5 Str 3/2, Ward 11, Dist 10, Hochiminh City
Nationality		Vietnamese
Share		13.333%
Value		1,000,000,000 VND
4. NAME		Mrs. TRAN THI KIM THANH
Position		Shareholder
Indent No		280732850
Resident		To 7, Phu Thuan Hamlet, An Loc Village, Binh Long Dist.
Province/City		Binh Phuoc Province
Nationality		Vietnamese
Share		13.333%
Value		1,000,000,000 VND
The former shareholders
1. NAME		Mrs. ONG THI BICH LAN
Position		Shareholder
Resident		No. 5B Nguyen Dinh Chieu Str, Da Kao Ward, Dist 1, Hochiminh City
Nationality		Vietnamese
Shares		6,250 shares
Capital Ratio		25%
Values		625,000,000 VND
2. NAME		Mrs. DUONG HONG HA
Position		Shareholder
Indent No		022104838
Resident		No. 157 Bis Tran Quoc Thao Str, Ward 9, Dist 3, Hochiminh City
Nationality		Vietnamese
Shares		6,250 Shares
Capital Ratio		25%
Values		625,000,000 VND
3. NAME		Mrs. NGUYEN THI HUE
Position		Shareholder
Indent No		162050697
Resident		No. 165/5 Str 3/2, Ward 11, Dist 10, Hochiminh City
Nationality		Vietnamese
Shares		6,250 Shares
Capital Ratio		25%
Values		625,000,000 VND
4. NAME		Mrs. TRAN THI KIM THANH
Position		Shareholder
Indent No		280732850
Resident		To 7, Phu Thuan Hamlet, An Loc Village, Binh Long Dist, Binh Phuoc Province
Nationality		Vietnamese
Shares		6,250 Shares
Capital Ratio		25%
Values		625,000,000 VND
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000VND
Balance sheet date			31/12/2006
Number of weeks			52
ASSETS
A -	CURRENT ASSETS		21,663
I.	Cash and cash equivalents		704
1.	Cash		0
2.	Cash equivalents		704
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		3,648
1.	Receivable from customers		1,165
2.	Repayments to suppliers		6,045
3.	Inter- company receivable		0
4.	Receivable according to the process of construction contracts		0
5.	Other receivable		179
6.	Provisions for credit risk		-3,741
IV.	Inventories		14,145
1.	Inventories		14,145
2.	Provisions for devaluation of inventories		0
V.	Other current assets		3,166
1.	Short-term repaid expenses		34
2.	Taxes receivable		3,066
3.	Other current assets		66
B -	LONG TERM ASSETS		464
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		454
1.	Tangible assets		447
	Historical costs		517
	Accumulated depreciation		-70
2.	Financial leasehold assets		0
	Historical costs		0
	Accumulated depreciation		0
3.	In-tangible assets		7
	Historical costs		12
	Accumulated depreciation		-5
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		10
1.	Long term repaid expenses		0
2.	Deferred income tax		0
3.	Other long term assets		10
	TOTAL ASSETS		22,127
LIABILITIES
A -	LIABILITIES		18,599
I.	Short term liabilities		18,387
1.	Short term debts and loans		10,062
2.	Payable to suppliers		2,747
3.	Advances from customers		3,021
4.	Taxes and other obligations to the State Budget		284
5.	Payable to employees		0
6.	Accrued expenses		89
7.	Inter- company payable		0
8.	Payable according to the progress of construction contracts		0
9.	Other payables		2,184
II.	Long term liabilities		212
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		212
5.	Deferred income tax		0
B -	OWNER’S EQUITY		3,528
I.	Owner’s equity		3,475
1.	Capital		2,500
2.	Share premiums		0
3.	Treasury stocks		0
4.	Differences on asset re-valuation		0
5.	Foreign exchange differences		0
6.	Business promotion fund		563
7.	Financial reserved fund		0
8.	Other funds		0
9.	Retained earnings		412
II.	Other sources and funds		53
1.	Bonus and welfare funds		53
2.	Sources of expenditure		0
3.	Funds to form fixed assets		0
	TOTAL LIABLITIES AND OWNER’S EQUITY		22,127
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Description		F/Y 2006
1.	Sales		226,256
2.	Deductions		112
3.	Net sales		226,144
4.	Costs of goods sold		217,697
5.	Gross profit		8,447
6.	Financial income		275
7.	Financial expenses		634
	- In which: Loan interest expenses		0
8.	Selling expenses		2,041
9.	Administrative overheads		5,046
10.	Net operating profit		1,001
11.	Other income		0
12.	Other expenses		11
13.	Other profits		-11
14.	Profit (loss) before tax		990
15.	Income tax		309
16.	Profit (loss) after tax		681
FINANCIAL FACTORS
Description			FY 2006
Current Liquidity Ratio			1.18
Quick Liquidity Ratio			0.41
Inventory Circle			15.39
Average Receive Period			5.89
Utilizing Asset Performance			10.22
Liability /Total Asset (%)			84.06
Liability /Owner's Equity (%)			527.18
Income Before Tax /Total Asset (%) ROA			4.47
Income Before Tax /Owner's Equity (%) ROE			28.06
Income Before Tax /Total Revenue (%) NPM			0.44
Gross Profit /Total Revenue (%) GPM			3.73
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Fairly Good
Liquidity		Average
Payment status		Average
Financial Situation		Fairly Good
Development trend		Up trend
Litigation data		No Recorded
Bankruptcy		No Recorded
Payment Methods		Directly to client or through its banks
Sale Methods		Direct to clients
INTERPRETATION ON THE SCORES
Viet Phu Thinh Rubber is a Joint Stock Company. It was established in 2003. The subject is a member of Vietnam Chamber of Commerce and Industry and Vietnam Rubber Association. The subject is producing, processing, trading and export of rubber products. The subject is one of reliable exporters of natural rubber with large quantity, diversity in products supplied from producers in Vietnam. Currently, the subject is also importing natural rubber from Thailand, Malaysia, Indonesia and Cambodia to customers’ require from foreign market. The subject has met customers’ demands in local and foreign market. Beside of selling products in local market, the subject also exports to many countries like Spain, France, Germany, Turkey, Taiwan, Korea, India, Japan and China…The main customers of Viet Phu Thinh Rubber JS Co is local producers and processing zones in the field of tyres, sport shoes, gloves. The subject total assets and revenue of 2006 has high increased in comparison with first years. According to Mr. Nguyen Trong Tien – Chief Accountant, the total revenue of 2007 is doubled compared to 2006. In 2007, about 60% rubber products of the subject are exported to foreign market. The subject will increase registered capital up to 10 billion VND in next time. Vietnam is the fourth biggest rubber export country in the world after Thailand, Indonesia and Malaysia. In 2007, the total of export rubber products increased about 720,000 tons, export turnover of all rubber enterprise in Vietnam is about over 1.4 billions USD, up to 8.9 % in comparison with 2006. The subject payment capacity is very normal. Its facilities and management capabilities are fairly good. The market share of the subject is wide. However, the subject will influenced by competitive price in Asia market. In general, the subject is operating at a relative scale. It is operating fairly effectively. The subject has capacity to meet financial commitments.

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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