MIRA INFORM REPORT

Report Date :

09.07.2008

IDENTIFICATION DETAILS

Name :	THANH NAM IMPORT AND EXPORT COMPANY LIMITED
Registered Office :	Zm 806, Building CT5DN2, My Dinh II Urban Area, Tu Liem Dist, Hanoi City.
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	2004
Com. Reg. No.:	0102013342
Legal Form :	Liability Limited Company
Line of Business :	Trading in Stainless Steel.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	THANH NAM IMPORT AND EXPORT COMPANY LIMITED
Vietnamese Name	CONG TY TNHH XUAT NHAP KHAU THANH NAM
Abbreviated name	THANH NAM IMP & EXP CO., LTD
Type of Business	Liability Limited Company
Founded	2004
Business Registered No.	0102013342
Issuance on	July 15^th, 2004 (the last change on February 2^nd, 2007)
Issuance by	Planning and Investment Department of Hanoi City
Legal Capital	VND 5,000,000,000
Tax code	0101515686
Total Employees	About 21 employees

ADDRESSES

Registered Office:
Address	Zm 806, Building CT5DN2, My Dinh II Urban Area, Tu Liem Dist, Hanoi City.
Tel	(84-4) 787 1397
Fax	(84-4) 787 0892
Country	Vietnam
Email	thanhnamcom@vnn.vn
Transaction Office:
Address	No.6, Villa 1A, Row B, My Dinh II Urban Area, Tu Liem Dist, Hanoi City.
Country	Vietnam
Tel	(84-4) 787 1396 / 787 1398
Fax	(84-4) 787 1395

DIRECTORS

1. NAME	Mr. NGUYEN HUNG CUONG
Position	Director
Qualification	Businessman
Date of birth	May 26^th, 1977
Resident	Phu My Hamlet, My Dinh Commune, Tu Liem Dist, Hanoi City
Nationality	Vietnamese
2. NAME	Ms. TRAN THI THAI
Position	Deputy Director of finance
Contact Address	Hanoi City
Nationality	Vietnamese
3. NAME	Ms. NGUYEN THI HAI YEN
Position	Deputy Director of Business
Contact Address	Hanoi City
Nationality	Vietnamese
3. NAME	Ms. NGUYEN THI THANH HUYEN
Position	Chief Accountant
Contact Address	Hanoi City
Mobile	(84) 0983 401 577
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject registers and operates in the following business activities:

The subject is specializing trading in stainless steel.

IMPORT & EXPORT ACTIVITIES

IMPORT: The subject imports from the Middle East countries such as: Pakistan, Turkey, and other countries as China, Honkong, Taiwan…

EXPORT: The subject exports to India, Taiwan…

BANKERS

1. SACOMBANK
Address	No.88 Ly Thuong Kiet Str, Cua Nam Ward, Hoan Kiem Dist, Hanoi City
Country	Vietnam
Tel	(84-4) 942 8095
Fax	(84-4) 942 8085
Swift	SGTT VNVX
2. VIETCOMBANK
Address	No.198 Tran Quang Khai Str, Hanoi City
Country	Vietnam
Tel	(84-4) 825 1322 / 824 0976
Fax	(84-4) 826 9067
Swift	BFTV  VNVX

SHAREHOLDER(S)

1. Name	Mr. NGUYEN HUNG CUONG
Position	Director
Date of birth	May 26^th, 1977
ID No.	011895935
Issuance on	May 7^th, 2004
Issuance by	Hanoi Police Station
Resident	Phu My Hamlet, My Dinh Commune, Tu Liem Dist, Hanoi City.
Nationality	Vietnamese
Ratio	90 percent
Value	VND 4,500,000,000
2. Name	Mr. NGUYEN THE TRUONG
Position	Shareholder
ID No.	012040834
Resident	Phu My Hamlet, My Dinh Commune, Tu Liem Dist, Hanoi City
Nationality	Vietnamese
Ratio	10 percent
Value	VND 500,000,000

FINANCIAL DATA

Following is highlight financial of the subject in 2005:
Unit: 1,000,000 VND
Description	2005
Current Assets and Short term Investment	257
Fixed Assets and Long term Investment	149
Total Assets	406
Payable	281
Owner’s Equity	125
Total liability and Equity	406
Total revenue	1,188
Deducted Items	0
Net revenue	1,188
Net income from business activities	-11
Net income from financial operation	0
Irregular profit	0
Total pre-tax profit	-11
BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date	31/12/2006
Number of weeks	52
ASSETS
A – CURRENT ASSETS	7,465
I. Cash and cash equivalents	3,210
1.Cash	3,210
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	2,935
1. Receivable from customers	1,527
2. Prepayments to suppliers	1,408
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	460
1. Inventories	460
2. Provisions for devaluation of inventories	0
V. Other Current Assets	860
1. Short-term prepaid expenses	0
2. VAT to be deducted	165
3. Taxes and other accounts receivable from the State	0
4. Other current assets	695
B. LONG-TERM ASSETS	776
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	660
1. Tangible assets	660
Historical costs	685
Accumulated depreciation	-25
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	116
1. Investments in affiliates	0
2. Investments in business concerns and joint ventures	0
3. Other long-term investments	116
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	8,241
LIABILITIES
A- LIABILITIES	5,981
I. Current liabilities	5,981
1. Short-term debts and loans	3,835
2. Payable to suppliers	601
3. Advances from customers	889
4. Taxes and other obligations to the State Budget	656
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	0
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	0
5. Deferred income tax payable	0
6. Provisions for unemployment allowances	0
7. Provisions for long-term accounts payable	0
B- OWNER'S EQUITY	2,260
I. Owner's equity	2,260
1. Capital	500
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	1,760
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	8,241

PROFIT & LOSS STATEMENT

Description	FY 2006
Revenue	36,791
Deductions Items	0
- Discount	0
- Devaluation	0
- Return of sold goods	0
- Turnover tax, Luxury tax & Export tax	0
Net Revenue	36,791
Costs of goods sold	33,181
Gross profit	3,610
Financial income	30
Financial expenses	132
In which: Loan interest expenses	0
Selling expenses	691
Administrative overheads	488
Net operating profit	2,329
Other income	0
Other expenses	0
Other profit /(loss)	0
Total accounting profit before tax	2,329
Current corporate income tax	635
Deferred corporate income tax	0
Profit after tax	1,694

FINANCIAL FACTORS

Description	2006
Current liquidity ratio	1.25
Quick Liquidity ratio	1.17
Inventory circle	72.13
Average receive period	32.29
Utilizing Asset Performance	4.03
Liability/ Total Asset (%)	72.58
Liability/ Owner's equity (%)	264.65
Ebit / Total asset (%) ROA	28.26
Ebit / Owner's equity (%) ROE	103.05
Ebit / Total revenue (%) NPM	6.33
Gross Profit / Total revenue (%) GPM	9.81

PAYMENT HISTORY AND EXPERIENCES

Trade Morality	Average
Liquidity	Average
Payment status	Normal
Financial Situation	Above Average
Development trend	Up Trend
Litigation data	No record
Bankruptcy	No record
Payment Methods	L/C, T/T
Sale Methods	Direct to clients

INTERPRETATION ON THE SCORES

Thanh Nam Imp & Exp Co., LTD was established in July 2004 as liability limited company. Now, its employees are 21 persons. The subject specializes in trading in stainless steel.

The transaction office is at No.6, Villa 1A, Row B, My Dinh II Urban Area, Tu Liem Dist, Hanoi City. And the registered office is at Zoom 806, Building CT5DN2, My Dinh II Urban Area, Tu Liem Dist, Hanoi City, which has still operation of the subject.

The premises and facilities of the subject are normal. The most goods of the subject are imported from the Middle East countries such as Turkey, Pakistan,… and other countries in Asia such as China and Hongkong.

Business result is considered average. The total assets and turnover are increased year after year. In 2006, the total assets were VND 36,791 million, an increased 30.97 times as compared with 2005. The total pre-tax profit in 2006 was increased very much in comparison with 2005.

The subject’s prestige is not strong. Products and image of its brand name are not famous in Vietnam. Management capability of the subject is average and the competitive capability of the subject is average too. However, according financial statement of the subject, development trend is up trend and it expected has a better future.

Being an importer company, the subject has been affected from inflation in recent months in Vietnam, it is trying its best to pass over all difficulties to exist in the hard competitive environment. Being a new quite established company, the subject is now looking for partner to expand its market share.

The subject can meet its small financial commitments at present. Caution needed for the normal and big business transactions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.43.13
UK Pound	1	Rs.85.02
Euro	1	Rs.67.77

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