MIRA INFORM REPORT

Report Date :

23.12.2008

IDENTIFICATION DETAILS

Name :	TAN PHONG JOINT STOCK COMPANY
Formerly Known As :	TAN PHONG PHU THO JOINT STOCK COMPANY
Registered Office :	15 Zone, Hung Son Town, Lam Thao Dist, Phu Tho Province
Country :	Vietnam
Financials (as on) :	31.12.2006
Year of Establishment :	1993
Com. Reg. No.:	1803000064
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing Black Tea, Trading and Manufacturing PP, PE and Carton Packing.

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 :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM

Current English Name	TAN PHONG JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN TAN PHONG
Trade name	TAN PHONG., JSC
Former Name	TAN PHONG PHU THO JOINT STOCK COMPANY
Type of Business	Joint Stock Company
Founded	1993
Business Registration	1803000064
Issuance on	December 19^th, 2002
Issuance by	Phu Tho Planning and Investment Department
Current registered Capital	N/A
Former registered Capital	10,250,000,000VND
Tax code	2600274542
Total Employees	About 500 People
Note: The given name (Tan Phong Phu Tho JSC) was old name of the subject. Currently, the registered capital of the Subject has changed but we could not collect the exact figures.
ADDRESSES
Head Office
Address	15 Zone, Hung Son Town, Lam Thao Dist, Phu Tho Province
Country	Vietnam
Tel	(84-210) 215277
Fax	(84-210) 829388
Note: At present, the subject has five factories, including three tea manufacturing factories and other two factories manufacturing packing PP, PE. All are located in Phu Tho Province.
DIRECTORS
1. NAME	Mrs. DINH THI THUC
Position	Chair of Management Board and General Director
ID	130493197
Resident	Lam Thao Dist, Phu Tho Province, Vietnam
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject is specialized in manufacturing black tea, trading and manufacturing PP, PE and Carton packing.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports machines and equipments from India,
EXPORT: The Subject exports black tea to UK, Holland, Japan….
BANKERS
1. INCOMBANK (DEN HUNG BRANCH)
2. TECHCOMBANK (HANOI CITY)
3. HSBC BANK (HANOI CITY)
SHAREHOLDER(S)
Sorry, at present, we can’t collect shareholders of the subject, we will supply later this data, if has.
FINANCIAL DATA
BALANCE SHEET
Unit: VND Million
Balance sheet date		31/12/2006
Number of weeks		52
ASSETS
A – CURRENT ASSETS		13,296
I. Cash and cash equivalents		362
1.Cash		362
2.Cash equivalents		0
II. Short-term investments		0
1. Short-term investments		0
2. Provisions for devaluation of short-term investments		0
III. Accounts receivable		3,057
1. Receivable from customers		3,057
2. Prepayments to suppliers		0
3. Inter-company receivable		0
4. Receivable according to the progress of construction		0
5. Other receivable		0
6. Provisions for bad debts		0
IV. Inventories		9,877
1. Inventories		9,877
2. Provisions for devaluation of inventories		0
V. Other Current Assets		0
1. Short-term prepaid expenses		0
2. VAT to be deducted		0
3. Taxes and other accounts receivable from the State		0
4. Other current assets		0
B. LONG-TERM ASSETS		47,943
I. Long term account receivable		0
1. Long term account receivable from customers		0
2. Working capital in affiliates		0
3. Long-term inter-company receivable		0
4. Other long-term receivable		0
5. Provisions for bad debts from customers		0
II. Fixed assets		19,987
1. Tangible assets		19,987
Historical costs		25,718
Accumulated depreciation		5,731
2. Financial leasehold assets		0
Historical costs		0
Accumulated depreciation		0
3. Intangible assets		0
Initial costs		0
Accumulated amortization		0
4. Construction-in-progress		0
III. Investment property		0
Historical costs		0
Accumulated depreciation		0
IV. Long-term investments		27,956
1. Investments in affiliates		0
2. Investments in business concerns and joint ventures		0
3. Other long-term investments		27,956
4. Provisions for devaluation of long-term investments		0
VI. Other long-term assets		0
1. Long-term prepaid expenses		0
2. Deferred income tax assets		0
3. Other long-term assets		0
TOTAL ASSETS		61,239
LIABILITIES
A- LIABILITIES		14,548
I. Current liabilities		11,486
1. Short-term debts and loans		6,416
2. Payable to suppliers		5,079
3. Advances from customers		0
4. Taxes and other obligations to the State Budget		-9
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 payable		0
10. Provisions for short-term accounts payable		0
II. Long-Term Liabilities		3,062
1. Long-term accounts payable to suppliers		0
2. Long-term inter-company payable		0
3. Other long-term payable		0
4. Long-term debts and loans		3,062
5. Deferred income tax payable		0
6. Provisions for unemployment allowances		0
7. Provisions for long-term accounts payable		0
B- OWNER'S EQUITY		46,691
I. Owner's equity		46,691
1. Capital		46,691
2. Share premiums		0
3. Other sources of capital		0
4. Treasury stocks		0
5. Differences on asset revaluation		0
6. Foreign exchange differences		0
7. Business promotion fund		0
8. Financial reserved fund		0
9. Other funds		0
10.Retained earnings		0
11. Construction investment fund		0
II. Other sources and funds		0
1. Bonus and welfare funds		0
2. Sources of expenditure		0
3. Fund to form fixed assets		0
TOTAL LIABILITIES AND OWNER'S EQUITY		61,239
PROFIT & LOSE STATEMENT
Description		FY 2006
Revenue		59,287
Deductions Items		0
Net Revenue		59,287
Costs of goods sold		45,899
Gross profit		13,388
Financial income		0
Financial expenses		3,056
In which: Loan interest expenses		0
Selling expenses		0
Administrative overheads		4,816
Net operating profit		5,516
Other income		0
Other expenses		0
Other profit /(loss)		0
Total accounting profit before tax		5,516
Current corporate income tax		0
Deferred corporate income tax		0
Profit after tax		5,516
FINANCIAL FACTORS
Description		2006
Current liquidity ratio		1.16
Quick Liquidity ratio		0.30
Inventory circle		4.65
Average receive period		18.82
Utilizing Asset Performance		0.97
Liability/ Total Asset (%)		23.76
Liability/ Owner's equity (%)		31.16
Income before tax/ Total asset (%) ROA		9.01
Income before tax/ Owner's equity (%) ROE		11.81
Income before tax/ Total revenue (%) NPM		9.30
Gross Profit / Total revenue (%) GPM		22.58
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Fairly Good
Liquidity	Average
Payment status	Acceptable
Financial Situation	Average
Development trend	Development
Litigation data	No Recoded
Bankruptcy	No Recoded
Payment Methods	L/C and T/T (Depend on contracts)
Sale Methods	Exporting and through factories
INTERPRETATION ON THE SCORES
The Subject was established in 1993 with original name of Tan Phong Phu Tho Company Limited. In 2002, the subject has changed to joint stock company model with name “Tan Phong Phu Tho Joint Stock Company”. At present, its name changed to Tan Phong Joint Stock Company. Being founded since 1993 as a small workshop manufacturing coarse fabric, with only 500 million VND investment capital, up to now, the subject has had five factories including three factories manufacture black tea and other two manufacture PP, PE and carton packing. The subject has invested black tea production line of India with capacity 2,500 tons/year. There are about 500 people working for the subject. At present, business operation of the subject is fairly good. Its products are highly evaluated. The subject has exported black tea to some markets such as UK, USA, Japan… According to the subject, its revenue is 71 billion VND in 2007. The financial report in 2006 is acceptable, however quick liquidity is not high. The subject is one of 108 enterprises that have obtained award “TOP TRADE SERVICES 2007” In general, the subject has capacity to meet small and medium business transaction.
(In this report, we do not supply its current shareholders and financial report of 2007. Next time, if we collect its date, we will provide later).

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.49
UK Pound	1	Rs.71.89
Euro	1	Rs.67.86

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