MIRA INFORM REPORT

Report Date :

01.07.2008

IDENTIFICATION DETAILS

Name :	PHU MY PLASTICS AND CHEMICALS COMPANY LIMITED
Registered Office :	Cai Mep Industrial Zone, Tan Thanh Dist, Ba Ria-Vung Tau Province
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	1997
Com. Reg. No.:	492022000054
Legal Form :	Joint Venture Company
Line of Business :	Manufacturing and Trading Polyvinyl Chloride (PVC), Polyvinas, Resin for Internal and External Market

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

Registered English Name	PHU MY PLASTICS AND CHEMICALS COMPANY LIMITED
Vietnamese Name	CONG TY TNHH NHUA VA HOA CHAT PHU MY
Trade name	PMPC
Type of Business	Joint Venture Company
Founded	1997
Current Business Registration	492022000054
Issuance on	August 8^th 2007
Issuance by	Hochiminh Department of Planning and Investment
Former investment licence	1305/GPDC1
Issuance on	August 8^th, 1997
Issuance by	Planning and Investment Department of Ba Ria-Vung Tau Province
Current Investment Capital	100,000,000 USD
Former Investment Capital	70,000,000 USD
Legal Capital	35,000,000 USD
Tax code	3500103859
Total Employees	About 200 employees

ADDRESSES

Head Office:
Address	Cai Mep Industrial Zone, Tan Thanh Dist, Ba Ria-Vung Tau Province
Country	Vietnam
Tel	(84-64) 895310
Fax	(84-64) 894459
Total Employees	130 employees
Transaction Office:
Current Address	2^nd Floor, No. 170, Hai Ba Trung Str, Dist 1, Hochiminh City
Country	Vietnam
Tel	(84-8) 8222112
Fax	(84-8) 8224023
Total Employees	70 employees
Note: The transactions of the subject are realized here. The main departments are also located here. If you contact with the subject, you should contact to office in Hochiminh City.

DIRECTORS

1. NAME	Mr. AKBAR MD THAYOOB
Position	General Director
Date of birth	1963
Current Resident	Hochiminh city
Nationality	Malaysian
2. NAME	Mr. DANG DINH TUNG
Position	Deputy General Director
Date of birth	1971
Resident	Hochiminh city
Nationality	Vietnamese
3. NAME	Mr. AZNAN. BIN.ZAHID
Position	Deputy General Director and Factory Director
Date of birth	1958
Current Resident	Baria – Vung Tau province
Nationality	Malaysian

BUSINESS NATURE AND ACTIVITIES

The subject registers and operates in the following business activities:

Manufacturing and trading polyvinyl chloride (PVC), polyvinas, resin for internal and external market

IMPORT & EXPORT ACTIVITIES

IMPORT: The subject imports materials and chemicals from England, Malaysia and Japan (about 80% of materials and chemicals)

EXPORT: Besides supplying for local market, the subject exports its products to EU, Asia country (about 20% of total output).

BANKERS

1. ASIA COMMERCIAL BANK
Address	No. 442, Nguyen Thi Minh Khai Str, Dist 3, Hochiminh City
Tel	(84-8) 9290999
Fax	(84-8) 8399885
2. MAY BANK – HANOI CITY
Address	No.3 Ly Thai To Str, Hoan Kiem Dist, Hanoi city
Tel	(84-4) 8241788
Fax	(84-4) 944689

SHAREHOLDER(S)

The subject is a Joint Venture Company between Vietnam and Malaysia partner. Following is its investors:
1. Name	VUNG TAU SHIPYARD COMPANY
Trade Name	TRAMATSUCO
Address	No. 847/4, 30-4 Str, Ward 11, Vung Tau City, Ba Ria-Vung Tau Province, Vietnam
Share	7%
2. Name	PETRONAS INTERNATIONAL CORPORATION LTD
Country	Malaysia
Share	93%
Note: This is a member of Petronas Malaysia, which is one of biggest groups in Petroleum in Malaysia. In the past, in the subject, the Petronas Malaysia held 50% of stake and Petro Vietnam took 43%. The remaining 7% was belonged the Vungtau Shipyard Company. But in June 2007, the Petro Vietnam transferred its 43% of stake to Petronas Malaysia.

FINANCIAL DATA

BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date	31/12/2006
Number of weeks	52
ASSETS
A – CURRENT ASSETS	369,330
I. Cash and cash equivalents	48,398
1.Cash	48,398
2.Cash equivalents	0
II. Short-term investments	800
1. Short-term investments	800
2. Provisions for devaluation of short-term investments	0
III. Accounts receivable	172,562
1. Receivable from customers	170,770
2. Prepayments to suppliers	1,263
3. Inter-company receivable	0
4. Receivable according to the progress of construction	0
5. Other receivable	1,238
6. Provisions for bad debts	-709
IV. Inventories	145,488
1. Inventories	146,289
2. Provisions for devaluation of inventories	-801
V. Other Current Assets	2,081
1. Short-term prepaid expenses	110
2. VAT to be deducted	0
3. Taxes and other accounts receivable from the State	0
4. Other current assets	1,971
B. LONG-TERM ASSETS	710,387
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	704,092
1. Tangible assets	672,327
Historical costs	864,786
Accumulated depreciation	-192,459
2. Financial leasehold assets	2,741
Historical costs	4,111
Accumulated depreciation	-1,370
3. Intangible assets	29,024
Initial costs	39,066
Accumulated amortization	-10,042
4. Construction-in-progress	0
III. Investment property	0
Historical 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 long-term investments	0
VI. Other long-term assets	6,295
1. Long-term prepaid expenses	5,581
2. Deferred income tax assets	0
3. Other long-term assets	714
TOTAL ASSETS	1,079,716
LIABILITIES
A- LIABILITIES	952,079
I. Current liabilities	577,013
1. Short-term debts and loans	75,578
2. Payable to suppliers	413,204
3. Advances from customers	1,286
4. Taxes and other obligations to the State Budget	6,159
5. Payable to employees	767
6. Accrued expenses	79,707
7. Inter-company payable	0
8. Payable according to the progress of construction contracts	0
9. Other payable	312
10. Provisions for short-term accounts payable	0
II. Long-Term Liabilities	375,066
1. Long-term accounts payable to suppliers	0
2. Long-term inter-company payable	0
3. Other long-term payable	1,390
4. Long-term debts and loans	373,676
5. Deferred income tax payable	0
6. Provisions for unemployment allowances	0
7. Provisions for long-term accounts payable	0
B- OWNER'S EQUITY	127,637
I. Owner's equity	127,637
1. Capital	560,000
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	-432,363
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	1,079,716
PROFIT & LOSS STATEMENT
Description	FY 2006
Revenue	1,220,733
Deductions Items	0
- Discount	0
- Devaluation	0
- Return of sold goods	0
- Turnover tax, Luxury tax & Export tax	0
Net Revenue	1,220,733
Costs of goods sold	1,203,972
Gross profit	16,761
Financial income	2,252
Financial expenses	37,930
In which: Loan interest expenses	35,545
Selling expenses	23,245
Administrative overheads	15,634
Net operating profit	-57,796
Other income	16,642
Other expenses	22,960
Other profit /(loss)	-6,318
Total accounting profit before tax	-64,114
Current corporate income tax	0
Deferred corporate income tax	0
Profit after tax	-64,114

FINANCIAL FACTORS

Description		2006
Current liquidity ratio		0.64
Quick Liquidity ratio		0.39
Inventory circle		6.82
Average receive period		51.60
Utilizing Asset Performance		1.13
Liability/ Total Asset (%)		88.18
Liability/ Owner's equity (%)		745.93
Income before tax/ Total asset (%) ROA		-5.94
Income before tax/ Owner's equity (%) ROE		-50.23
Income before tax/ Total revenue (%) NPM		-5.25
Gross Profit / Total revenue (%) GPM		1.37
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Good
Liquidity	Normal
Payment status	Fairly prompt
Financial Situation	Average
Development trend	Bright
Litigation data	No record
Bankruptcy	No record
Payment Methods	Through its bank, L.C, T/T
Sale Methods	Export to foreign countries and sales to partner locally.
INTERPRETATION ON THE SCORES
Phu My Plastic and Chemical Company Limited (PMPC) has been founded on August 8^th, 1997 under the investment license No. 1305/GP issued by Planning and investment department of Ba Ria Vung Tau Province and revised business registration No. 492022000054 issued in August 2007. The subject is a fairly big invested company in term of invested capital. At the moment, the subject’s total invested capital is 100 USD million. PMPC is a company incorporated in Viet Nam that owns and operates a 100,000 metric tons per annum polyvinyl chloride (PVC) plant in the Ba Ria - Vung Tau Province in the Cai Mep Industrial Zone, about 85 km southeast of HCM City. Formerly, the subject was joint venture among Petronas, Petrovietnam va Tramatsuco. But since June 2007, Malaysia-based Petronas bought a 43 per cent stake in PetroVietnam’s subsidiary PMPC as part of a co-operation deal recently inked by the two companies. Petronas has agreed to transfer the shares, plus the 50 percent stake they already own, to auxiliary company Petronas International Corporation Ltd (PICL). As the contract, PICL will have 93 per cent ownership in PMPC, with the rest in the hands of the Vung Tau Shipyard Company. Petronas, which stands for Petroliam Nasional Berhad, was founded in 1974. Since then, it has become a fully-integrated oil and gas corporation that is ranked as one of the world’s largest companies by Fortune Global 500. Since the operation, the subject seemed operate ineffectively. It lost for the long time although its revenue and assets are huge. This is caused by the high cost of good sold. Its some financial ratios are not very good. The subject’s prestige is normal. Products and image of its brand name are fairly famous in Vietnam. Compared with others in the same industry, the subject is a successful enterprise. In the future, the demand of PVC seems high thus the subject’s prospect hopes bight. The subject has capacity to meet the normal commitments, caution needed for the big business transactions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.43.27
UK Pound	1	Rs.86.28
Euro	1	Rs.68.24

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