MIRA INFORM REPORT

Report Date :

07.07.2008

IDENTIFICATION DETAILS

Name :	DAI PHU COMPANY LIMITED
Registered Office :	Lot D2/1, Road 1B, Vinh Loc Industrial Park, Binh Hung Hoa B ward, Binh Tan Dist, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2007
Date of Incorporation :	1994
Com. Reg. No.:	051481
Legal Form :	Limited Liability Company
Line of Business :	Specialized in Producing and Trading Electrostatics Powder Coatings, Electrostatics Spraying Devices and Equipment of Pre-Process Chemical.

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 PHU COMPANY LIMITED
Vietnamese name	CONG TY TNHH THUONG MAI DAI PHU
Trade Name	DAI PHU CO., LTD
Founded	1994
Type of Business	Limited Liability Company
Established Decision No.	924/gp-ub
Date of Issuance	June 20^th 1994
Place of Issuance	People’s Committee of Hochiminh city
Business Registration No.	051481
Date of Issuance	June 23^rd 1994
Place of Issuance	Planning and Investment Department of Hochiminh city
Registered Capital	70,000,000,000 VND
Former Registered Capital	26,000,000,000 VND
Tax Code	0300883490
Total Employees	80 employees

ADDRESSES

Head Office
Address	Lot D2/1, Road 1B, Vinh Loc Industrial Park, Binh Hung Hoa B ward, Binh Tan Dist, Hochiminh City
Country	Vietnam
Tel	(84-8) 7653387, 7652522
Fax	(84-8) 7653386
Email	daiphu@hcm.fpt.vn daiphuoxyplast@vnn.vn

DIRECTORS

1. NAME	Mr. BUI TUAN ANH
Position	Director / Legal Representative person
Date of birth	February 15^th 1961
ID No	023752641
Qualification	Bachelor
Resident	No. 29 Ho Hao Hon Str, Co Giang ward, Dist 1, Hochiminh city
Nationality	Vietnamese
2. NAME	Mr. DINH VAN LOC
Position	Deputy Director
Qualification	Bachelor
Born	1971
Resident	Hochiminh city-Vietnam
Nationality	Vietnamese
3. NAME	Ms. VU CHAU NGUYET NGA
Position	Sales Manager
Qualification	Bachelor
Resident	Hochiminh city
Nationality	Vietnamese
4. NAME	MS. NGUYEN THI THU HA
Position	Chief accountant
Qualification	Bachelor
Born	1970
Resident	Hochiminh city-Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in producing and trading electrostatics powder coatings, electrostatics spraying devices and equipment of pre-process chemical.

IMPORT & EXPORT ACTIVITIES

IMPORT: The subject imports equipments and materials from Singapore, Malaysia, Thailand, Belgium, Germany, Switzerland
EXPORT: N/A
BANKERS
1. EXIMBANK – HOCHIMINH CITY
Address	No.7 Le Thi Hong Gam Street, District No.1, Hochiminh city, Vietnam
Tel	(84-8) 821 0055
Fax	(84-8) 829 6063
2. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK) – BINH TAY BRANCH
Address	No. 129 – 129A Hau Giang Str, Ward 5, Dist 6, Hochiminh city, Vietnam
Tel	(84-8) 9600477 – 9600478
Fax	(84-8) 9606217

SHAREHOLDER(S)

The subject is a Limited Liability Company. Following is its shareholders:
1. NAME	Mr. BUI TUAN ANH
Position	Director
Date of birth	February 15^th 1961
ID No	023752641
Issued on	Bachelor
Place of issuance	No. 29 Ho Hao Hon Str, Co Giang ward, Dist 1, Hochiminh city
Qualification	Vietnamese
Share	98.030 %
Value	68,621,000,000 VND
2. Name	Mr. BUI CHI THANH
ID No	010008029
Resident	No. 23 Hang Giay Str, Hang Buom ward, Hoan Kiem Dist, Hanoi city
Nationality	Vietnamese
Share	1.970 %
Value	1,379,000,000 VND

FINANCIAL DATA

BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date	31/12/2007	31/12/2006
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	65,625	50,575
I. Cash and cash equivalents	5,454	4,976
1.Cash	5,454	4,976
2.Cash equivalents	0	0
II. Short-term investments	0	0
1. Short-term investments	0	0
2. Provisions for devaluation of short-term investments	0	0
III. Accounts receivable	18,533	14,289
1. Receivable from customers	16,570	13,266
2. Prepayments to suppliers	1,644	7
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	319	1,016
6. Provisions for bad debts	0	0
IV. Inventories	40,796	30,549
1. Inventories	40,796	30,549
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	842	761
1. Short-term prepaid expenses	413	62
2. Taxes and other accounts receivable from the State	429	699
3. Other current assets	0	0
B. LONG-TERM ASSETS	33,852	34,695
I. Long term account receivable	0	0
1. Long term account receivable from customers	0	0
2. Long-term inter-company receivable	0	0
3. Other long-term receivable	0	0
4. Provisions for bad debts from customers	0	0
II. Fixed assets	33,375	33,622
1. Tangible assets	30,677	23,607
Historical costs	36,821	27,686
Accumulated depreciation	6,144	4,079
2. Financial leasehold assets	0	0
Historical costs	0	0
Accumulated depreciation	0	0
3. Intangible assets	2,586	2,713
Initial costs	3,200	3,200
Accumulated amortization	614	487
4. Construction-in-progress	112	7,302
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	0	0
1. Investments in affiliates	0	0
2. Investments in business concerns and joint ventures	0	0
3. Other long-term investments	0	0
4. Provisions for devaluation of long-term investments	0	0
VI. Other long-term assets	477	1,073
1. Long-term prepaid expenses	477	1,073
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
TOTAL ASSETS	99,477	85,270
LIABILITIES
A- LIABILITIES	25,757	14,320
I. Current liabilities	25,757	14,320
1. Short-term debts and loans	4,678	0
2. Payable to suppliers	10,512	8,314
3. Advances from customers	1.121	439
4. Taxes and other obligations to the State Budget	1,019	369
5. Payable to employees	258	297
6. Accrued expenses	549	776
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	7,620	4,125
II. Long-Term Liabilities	0	0
1. Long-term accounts payable to suppliers	0	0
2. Long-term inter-company payable	0	0
3. Other long-term payable	0	0
4. Long-term debts and loans	0	0
5. Deferred income tax payable	0	0
B- OWNER'S EQUITY	73,720	70,950
I. Owner's equity	73,681	70,950
1. Capital	70,000	70,000
2. Share premiums	0	0
3. Treasury stocks	0	0
4. Differences on asset revaluation	0	0
5. Foreign exchange differences	0	0
6. Business promotion fund	79	0
7. Financial reserved fund	39	0
8. Other funds	0	0
9. Retained earnings	3,563	950
II. Other sources and funds	39	0
1. Bonus and welfare funds	39	0
2. Sources of expenditure	0	0
3. Fund to form fixed assets	0	0
TOTAL LIABILITIES AND OWNER'S EQUITY	99,477	85,270

PROFIT & LOSE STATEMENT

	Description		F/Y 2007	F/S 2006
1.	Sales		81,226	66,013
2.	Deductions		30	59
3.	Net sales		81,196	65,954
4.	Costs of goods sold		74,391	61,680
5.	Gross profit		6,805	4,274
6.	Financial income		261	143
7.	Financial expenses		39	118
	- In which : Loan interest expenses		6	0
8.	Selling expenses		1,765	1,486
9.	Administrative overheads		1,854	1,577
10.	Net operating profit		3,408	1,236
11.	Other income		450	102
12.	Other expenses		24	0
13.	Other profits		426	102
14.	Profit (loss) before tax		3,834	1,338
15.	Income tax		899	271
16.	Profit (loss) after tax		2,935	1,067
FINANCIAL FACTORS
Description			2007	2006
Current liquidity ratio			2.55	3.53
Quick Liquidity ratio			0.96	1.40
Inventory circle			2.09	2.02
Average receive period			83.31	79.08
Utilizing Asset Performance			0.82	0.77
Liability/ Total Asset (%)			25.89	16.79
Liability/ Owner's equity (%)			34.94	20.18
Income before tax/ Total asset (%) ROA			3.85	1.57
Income before tax/ Owner's equity (%) ROE			5.20	1.89
Income before tax/ Total revenue (%) NPM			4.72	2.03
Gross Profit / Total revenue (%) GPM			8.38	6.47
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Average
Liquidity		Fair
Payment status		Average
Financial Situation		Fairly Good
Development trend		Normal
Litigation data		No Recorded
Bankruptcy		No Recorded
Payment Methods		Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C)
INTERPRETATION ON THE SCORES
DAI PHU CO., LTD is a liability limited company, which was established in 1994. The subject is specialized in the production and trading electrostatic powder coatings, electrostatic spraying devices and equipments of pre-process chemical. The subject imports materials and equipment from Germany, France, Italy, Switzerland and Belgium. The subject is also the electrostatics coating exclusive agent for TIW GEMA of Switzerland with two trade names OXYPLAST and TIWGEMA. Originally, business operation of the subject just only traded in electrostatics powder coatings. Up to 2002, the subject started producing electrostatic paint and pre-process chemicals. Currently, the subject has become one of the leading producers in this field of Vietnam. The subject is authorized to produce electrostatics powder coatings under the OXYPAST license. Its products are provided to domestic market. Competitiveness of the subject is fairly strong. Its market share is large and stable Subject’s financial situation is fairly healthy. The turnover & profit capability has been increasing in recent years. Subject’s growth is good. The premises and facility of the subject are fairly standard. Position in industry of the subject is acceptable. In overview, subject is operating fairly effectively at the medium scale. It is reliable for small & normal business commitment.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.43.12
UK Pound	1	Rs.85.08
Euro	1	Rs.67.41

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