MIRA INFORM REPORT

Report Date :

15.02.2008

IDENTIFICATION DETAILS

Name :	DAI THIEN LOC JOINT STOCK CORPORATION
Registered Office :	Block A, Road 22, Song Than 2 Industrial Pack, Di An Dist, Binh Duong Province
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	2001
Com. Reg. No.:	46030000334
Legal Form :	Joint Stock Company
Line of Business :	Manufacture of Coil Steel, Zinc Steel

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
English Name		DAI THIEN LOC JOINT STOCK CORPORATION
Vietnamese name		CONG TY CO PHAN DAI THIEN LOC
Trade Name		DAI THIEN LOC STEEL CORP
Trademark		DTLS
Type of Business		Joint Stock Company
Founded		2001
Business Registration No.		46030000334
Issued on		April 12^th 2007
Issued by		Binh Duong Department of Planning and Investment
Current Registered Capital		152,000,000,000 VND
Previous Registered Capital		99,000,000,000 VND
Tax Code		3700381282
Total Employees		200
Qualification		Fairly good
Note: The original form of Dai Thien Loc Steel was a limited liability company. The subject has just changed to Joint Stock company on April 12^th 2007. Following is the former legal form of the subject company::
English Name		DAI LOC THIEN STEEL LIMITED COMPANY
Vietnamese name		CONG TY TNHH THEP DAI LOC THIEN
Trade Name		DAI LOC THIEN STEEL CO., LTD
Type of Business		Limited liability company
Founded		2001
Business Registration No.		4602000250
Date of Issuance		July 11^th 2001
Place of Issuance		Binh Duong Department of Planning and Investment
Registered Capital		50,000,000,000 VND
ADDRESS
Head Office & Factory
Address		Block A, Road 22, Song Than 2 Industrial Pack, Di An Dist, Binh Duong Province
Country		Vietnam
Tel		(84-650) 737341
Fax		(84-650) 732980, 732982, 792331
Email		Daithienlocsteel@hcm.vnn.vn
Branch in Binh Duong province
Address		105/4A, Chieu Lieu commune, Tan Dong Hiep Hamlet, Di An Dist, Binh Duong province
Country		Vietnam
Tel		(84-650) 727781
Branch in Danang city
Address		507 Ton Duc Thang St, Khanh Hoa Ward, Lien Chieu Dist, Danang city
Country		Vietnam
Branch in Vung Tau City
Address		139 Binh Gia St, Ward 8, Vung Tau City
Country		Vietnam
RELATED COMPANY
English Name		THIEN LOC PRODUCING & TRADING LIMITED COMPANY
Vietnamese name		CONG TY TNHH SAN XUAT VA THUONG MAI THIEN LOC
Trade Name		THIEN LOC STEEL CO. ,LTD
Founded		2000
Type of Business		Private Limited Company
Business Registration No.		4102000923
Date of Issuance		April 28^th, 2000
Place of Issuance		Binh Duong Department of Planning and Investment
Registered Capital		18,000,000,000 VND
DIRECTORS
1. NAME		Mr. NGUYEN THANH NGHIA
Position		Director
ID No		022749812
Date of issuance		November 9^th 1990
Date of birth		November 27^th 1963
Resident		23/28 D2, Van Thanh Bac Hostel, Ward 25, Binh Thanh Dist, Hochiminh city
Nationality		Vietnamese
2. NAME		Ms. DOAN THI MY HONG
Position		Vice Director
Resident		Block A, Road 22, Song Than 2 Industrial Pack, Di An District Binh Duong Province
Nationality		Vietnamese
3. NAME		Ms. NGUYEN THI BICH LIEN
Position		Vice Director
Resident		327/47 Su Van Hanh St, Dist 10, Hochiminh city
Nationality		Vietnamese
2. NAME		Mr. NGUYEN VAN PHUONG
Position		Director Assistant
Resident		Hochiminh city
Nationality		Vietnamese
Cell phone		+84982286044
BUSINESS NATURE AND ACTIVITIES
The subject registered in the following lines of business:
- Manufacture coil steel, zinc steel - Manufacture and trading steel for construction - Trading materials for construction - Agent for sale and buy - Consignment of goods
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports products, material from China, Korea, India, Philippine, Germany …
EXPORT: Subject exports products to Cambodia, and Middle East, Thailand.
BANKERS
SACOMBANK
Address		No. 278 Nam Ky Khoi Nghia Str, Ward 8, Dist 3, Hochiminh city
Country		Vietnam
Tel		(84-8) 9320420 - 9320643
Fax		(84-8) 9322488
Telex		813603SGTT/VT
Swift		SGTTVNVX
VID PUBLIC BANK
Address		Road DT743, Binh Hoa, Thuan An District, Binh Duong Province
Country		Vietnam
Tel		(84-650) 728051/ 728052
Fax		(84-650) 728054
VIETCOMBANK
Address		No. 72 Phu Hoa Ward, Thu Dau Mot Town, Binh Duong Province
Country		Vietnam
Tel		(84-650) 898989
Fax		(84-650) 831220
SHAREHOLDERS
1. Name		Mr. NGUYEN THANH NGHIA
Position		Director
ID No		022749812
Date of issuance		November 9^th 1990
Date of birth		November 27^th 1963
Resident		23/28 D2, Van Thanh Bac Hostel, Ward 25, Binh Thanh Dist, Hochiminh city
Nationality		Vietnamese
Shares		8,800,000 shares
Value		88,000,000,000 VND
2. Name		Ms. NGUYEN THI BICH LIEN
Position		Shareholder
ID No		020723726
Resident		327/47 Su Van Hanh St, Dist 10, Hochiminh city
Nationality		Vietnamese
Share		3,200,000 shares
Value		32,000,000,000 VND
Note: Ms. Lien is wife of Director-NGUYEN THANH NGHIA
3. Name		Ms. NGUYEN THANH LOAN
Position		Shareholder
Identity Card		024237750
Resident		327/47 Su Van Hanh St, Dist 10, Hochiminh city
Nationality		Vietnamese
Share		1,200,000 shares
Value		12,000,000,000 VND
4. Name		SAIGON SECURITIES INCORPORATION - SSI
Address		No. 72 Nguyen Hue Str, Dist 1, Ho Chi Minh City
Country
	Vietnam
Tel		(84-8) 8242897
Fax
	(84-8) 8242997
Share		1,000,000 shares
Value		10,000,000,000 VND
5. Name		Other Strategic Shareholder
Address		N/A
Share		800,000 shares
Value		8,000,000,000 VND
6. Name		Staff of the subject
Address		N/A
Share		200,000 shares
Value		2,000,000,000 VND
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Fairly Good
Liquidity		Average
Payments		Above Average
Financial Situation		Above Average
Development trend		Fairly Good
Litigation Data		No reported
Bankruptcy		No reported
Payment Method		TT, L/C
Sale Method		Supplying for distributors and clients
FINANCIAL DATA
BALANCE SHEET
Balance sheet date			31/12/2006	31/12/2005	31/12/2004
Number of weeks			52	52	52
Unite			Mill VND	VND	VND
ASSETS
A. Working assets & short-term Investment			236,431	54,124,916,379	53,794,958,422
I. Cash and cash equivalents			2,012	722,859,388	782,179,886
II. Short-term investment			0	0	0
1. Short-term securities investment			o0	0	0
2. Other short-term investment			0	0	0
3. Provision for short-term investment			0	0	0
III. Receivables			41,262	18,848,146,440	13,671,854,232
1. Receivables from customers			32,822	12,246,496,319	5,602,298,956
2. Prepayment for providers			4,173	5,281,688,469	6,716,624,993
3. Value-added tax deducted			4,267	1,319,961,652	1,352,930,283
4. Internal receivables			0	0	0
5. Other receivables			0	0	0
6. Provision for bad receivables			0	0	0
IV. Inventory			185,257	34,033,389,589	38,313,092,547
1. Purchased goods in transit			0	0	0
2. Raw materials			0	10,349,598,054	27,237,509,297
3. Instrument, tools			0	0	0
4. Cost for production and business in process			0	352,812,890	1,176,441,937
5. End products			185,257	23,142,443,108	9,899,141,313
6. Goods			0	188,535,537	0
7. Goods on consignment			0	0	0
8. Provision for devaluation of stocks			0	0	0
V. Other current assets			7,900	520,520,962	1,027,831,757
1. Advances			0	196,251,869	160,830,646
2. Prepaid expenses			0	0	0
3. Pending expenses for transfer			0	0	167,359,793
4. Pending assets			1,707	0	0
5. Mortgage, collateral and short run collateral			6,193	324,269,093	699,641,318
VI. Administrative			0	0	0
1. Administrative expenses for previous year			0	0	0
2. Administrative expenses for current year			0	0	0
B. Fixed assets & Long term investment			20,390	17,445,056,864	18,992,675,934
I. Fixed assets			20,006	15,117,046,359	16,443,267,429
1. Tangible fixed assets			12,298	12,565,528,433	13,747,323,959
+ Original cost			17,814	16,401,064,472	15,902,612,290
+ Accumulated depreciation value			-5,516	-3,835,536,039	-2,155,288,331
2. Financial leasing fixed assets			0	0	0
+ Original cost			0	0	0
+ Accumulated depreciation value			0	0	0
3. Intangible fixed assets			2,395	2,551,517,926	2,695,943,470
+ Original cost			2,395	2,551,517,926	2,888,510,874
+ Accumulated depreciation value			0		-192,567,404
II. Long term investment			0	0	0
1. Long-term securities investment			0	0	0
2. Joint-venture capital contribution			0	0	0
3. Other long-term investment			0	0	0
4. Provision for long-term investment devaluation			0	0	0
III. Capital construction in process			5,313	1,763,892,603	1,745,290,603
IV. Other			384	564,117,902	804,117,902
TOTAL ASSETS			256,821	71,569,973,243	72,787,634,356
LIABILITIES
A. Payable loans			167,610	46,340,567,849	42,520,789,731
I. Short term payables			167,610	45,893,502,049	42,422,027,731
1. Short-term borrowings			77,193	13,621,381,183	11,765,072,000
2. Due long-term liabilities			0	0	0
3. Payables to supplier			70,559	30,521,568,593	28,882,333,757
4. Prepayment of buyer			13,514	0	0
5. Taxes and accounts dutiable			387	9,213,396	7,695,000
6. Employee payments			327	38,689,750	63,420,600
7. Internal payables			83	0	0
8. Other payables			5,547	1,702,649,127	1,703,506,374
II. Long term loans			0	0	0
1. Long-term borrowings			0	0	0
2. Long-term payables			0	0	0
III. Other payables			0	447,065,800	98,762,000
1. Payable expenses			0	447,065,800	98,762,000
2. Pending assets			0	0	0
3. Receipts long-term collateral and deposit			0	0	0
B. Owner’s Equity			89,211	25,229,405,394	30,266,844,625
I. Capital and Funds			89,211	25,229,405,394	30,266,844,625
1. Working capital			50,953	15,031,931,416	15,160,963,913
2. Differences from asset revaluation			0	0	0
3. Exchange rate differences			0	0	0
4. Development investment funds			0	0	0
5. Reserved funds			0	0	0
6. Retained profit			38,258	10,197,473,978	15,105,880,712
7. Construction capital sources			0	0	0
II. Other administrative and fund sources			0	0	0
1. Provident funds for unemployment			0	0	0
2. Reward and welfare funds			0	0	0
3. Management funds of higher level			0	0	0
4. Functional operation funds			0	0	0
5. Fund sources formed by fixed assets			0	0	0
TOTAL LIABILITY AND EQUITY			256,821	71,569,973,243	72,787,634,356
PROFIT & LOSS STATEMENT
Description				FY 2006	FY 2005
Unit				Mill VND	VND
Total revenue				408,545	139,781,333,109
Deductions Items				4,581	0
- Discount				0	0
- Devaluation				0	0
- Return of sold goods				4,581	0
- Turnover tax, Luxury tax & Export tax				0	0
1. Net revenue				403,964	139,781,333,109
2. Cost of goods sold				355,638	140,595,737,350
3. Gross Profit				48,326	-814,404,241
4. Sales expenses				12,967	0
5. Enterprise administrative expenses				17,441	1,985,761,396
6. Net income from business activities				17,918	-2,800,165,637
Income from financial activities				0	16,432,646
Expenditure from financial activities				7,336	2,036,216,660
7. Net income from financial operation				-7,336	-2,019,784,014
Irregular income				0	70,096,935
Irregular expenditure				0	167,359,793
8. Irregular Profit				0	-97,262,858
9. Total pre-tax profit				10,582	-4,917,212,509
10. Income tax				1,058	0
11. After tax profit				9,524	-4,917,212,509
FINANCIAL FACTORS
Description				FY 2006	FY 2005
Current liquidity ratio				1.41	1.18
Quick Liquidity ratio				0.31	0.44
Inventory circle				3.24	3.89
Average receive period				37.28	49.22
Utilizing Asset Performance				1.57	1.95
Liability/ Total Asset (%)				65.26	64.75
Liability/ Owner's equity (%)				187.88	183.68
Income before tax/ Total asset (%) ROA				4.12	-6.87
Income before tax/ Owner's equity (%) ROE				11.86	-19.49
Gross Profit / Total revenue (%) GPM				11.83	-0.58
Income before tax/ Total revenue (%) NPM				2.59	-3.52
INTERPRETATION ON THE SCORES
The subject was limited liability company. It was founded in July 2001 in Binh Duong Province. In April 2007, the subject has transformed into joint stock company and increased capital from VND 50 billion to VND 99 billion. In January 2008, the subject has increased the capital from VND 99 billion to VND 152 billion by selling shares for strategic shareholders and its employees. The current position in the steel manufacture and trading industry of the subject is above average. The subject specializes in manufacture zinc plate, tole plate, steel plate, iron …etc. It is also the wholesaler for other steel manufacturers in domestic market like Hoa Phat Steel, Tien Len Co., Ltd and foreign companies in Malaysia, Korea, India, Philippines… The subject imports materials and products from Philippines, China, India, Korea… and exports to neighboring countries such as Cambodia, Laos, Central ASIA and Myanmar. The subject has more than 300 retail outlet around Vietnam, and three branches in Danang city, Vung Tau City, Binh Duong Province. Mr. Nguyen Thanh Nghia is not only running Dai Thien Loc Corp, but also takes part in other company in his network operating, including the Thien Loc Tan Co., Ltd, Thien Loc Steel Co., Ltd. Currently, Dai Thien Loc is expanding manufacturing structure by widen the factory at Song Than 3 IP, Binh Duong province. The contraction and installation equipments are expected to complete at the third quarter of 2008. It expects to commenced production this factory at the fourth quarter of 2008. The turnover of the subject is good. Products of the subject appear in whole country of Vietnam. In 2007, the revenue of the subject was VND 826 billion. It expects to become one of the largest steel companies by the involvement of Saigon Securities Incorporation (which the largest security company in Vietnam) in management board. In general, the management capability is quite good; the staff of the subject is graded at average. The business activities of the subject seem busy. It has capacity to meet the financial commitments. No caution needed for the normal business transactions.
The company has ADEQUATE 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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