MIRA INFORM REPORT

Report Date :

26.06.2008

IDENTIFICATION DETAILS

Name :	KIM LONG IMPORT AND EXPORT COMPANY LIMITED
Registered Office :	No. 975 Giai Phong Str, Giap Bat Ward, Hoang Mai Dist, Hanoi City
Country :	Vietnam
Financials (as on) :	31.12.2007
Date of Incorporation :	31.12.2004
Com. Reg. No.:	0102015588
Legal Form :	Liability Company Limited
Line of Business :	Stainless Steel, Spring and Super Thin Stainless Steel, Special 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	KIM LONG IMPORT AND EXPORT COMPANY LIMITED
Vietnamese name	CONG TY TNHH XUAT NHAP KHAU KIM LONG
Abbreviation name	KIM LONG IMPEX CO., LTD
Founded	2004
Type of Business	Liability Company Limited
Business Registration	0102015588
Date of Issuance	December 31^st, 2004
Place of Issuance	Hanoi Planning and Investment Department
Registered Capital	1,000,000,000 VND
Tax code	0101594889
Employees	10 Persons

ADDRESS

Transaction Office
Address	No. 975 Giai Phong Str, Giap Bat Ward, Hoang Mai Dist, Hanoi City
Country	Vietnam
Tel	(84-4) 6646734 / 6647242
Fax	(84-4) 6646735
Email	sales@kimlongimpex.com
Website	www.kimlongimpex.com
Registered address	19/26 Alley, Thai Thinh 2 Lane, Thai Thinh str, Thinh Quang ward, Dong Da dist, Hanoi city

DIRECTORS

1. NAME	Mrs. DINH THI BICH LIEN
Position	Director
ID	012442699
Birth Year	1976
Nationality	Vietnamese
2. NAME	Mrs. PHAN HONG THUY
Position	Deputy Director
Birth Year	1975
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

Business line of the subject includes the following:

• Stainless steel
• Spring & super thin stainless steel
• Special steel

IMPORT & EXPORT ACTIVITIES

IMPORT: The subject imports goods from India and Japan (70 Percent)

EXPORT: N/A

BANKERS

1. HABUBANK

2. VPBANK – HANOI BRANCH

SHAREHOLDERS

1. NAME	Mrs. DINH THI BICH LIEN
Position	Director
ID	012442699
Birth Year	1976
Nationality	Vietnamese
Share	50%
2. NAME	Mrs. PHAN HONG THUY
Position	Deputy Director
Birth Year	1975
Nationality	Vietnamese
Share	50%

FINANCIAL DATA

BALANCE SHEET
Unit: million VVND
Balance sheet date		31/12/2007
Number of weeks		52
ASSETS
A – CURRENT ASSETS		5,240
I. Cash and cash equivalents		1,131
1.Cash		1,131
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		1,726
1. Receivable from customers		1,726
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		2,203
1. Inventories		2,203
2. Provisions for devaluation of inventories		0
V. Other Current Assets		180
1. Short-term prepaid expenses		0
2. VAT to be deducted		13
3. Taxes and other accounts receivable from the State		0
4. Other current assets		167
B. LONG-TERM ASSETS		13
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		13
1. Tangible assets		13
Historical costs		14
Accumulated depreciation		1
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		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		0
1. Long-term prepaid expenses		0
2. Deferred income tax assets		0
3. Other long-term assets		0
TOTAL ASSETS		5,253
LIABILITIES
A- LIABILITIES		2,995
I. Current liabilities		2,995
1. Short-term debts and loans		990
2. Payable to suppliers		1,643
3. Advances from customers		0
4. Taxes and other obligations to the State Budget		362
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		2,258
I. Owner's equity		2,258
1. Capital		1,000
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		1,258
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		5,253
PROFIT & LOSE STATEMENT
Description		FY 2007
Revenue		21,319
Deductions Items		0
Net Revenue		21,319
Costs of goods sold		18,890
Gross profit		2,429
Financial income		8
Financial expenses		173
In which: Loan interest expenses		119
Selling expenses		0
Administrative overheads		1,019
Net operating profit		1,245
Other income		13
Other expenses		5
Other profit /(loss)		8
Total accounting profit before tax		1,253
Current corporate income tax		351
Profit after tax		902
FINANCIAL FACTORS
Description		2007
Current liquidity ratio		1.75
Quick Liquidity ratio		1.01
Inventory circle		8.57
Average receive period		29.55
Utilizing Asset Performance		4.06
Liability/ Total Asset (%)		57.02
Liability/ Owner's equity (%)		132.64
Income before tax/ Total asset (%) ROA		23.85
Income before tax/ Owner's equity (%) ROE		55.49
Income before tax/ Total revenue (%) NPM		5.88
Gross Profit / Total revenue (%) GPM		11.39
Financial highlight in 2006 and 2005.
Years	2006		2005
Working assets & short-term Investment	3,674		1,000
Fixed assets & Long term investment	0		0
Total assets	3,674		1,000
Payable loans	2,738		691
Owner’s Equity	936		309
Total liability and equity	3,674		1,000
Total revenue	12,854		N/A
Deductions Items	0
Net revenue	12,854
Net income from business activities	41
Net income from financial operation	2
Irregular Profit	0
Total pre-tax profit	43

PAYMENT HISTORY AND EXPERIENCES

Trade Morality	Normal
Liquidity	Average
Previous Payments	Average
Payment status	Average
Past Financial Situation	Under Average
Current Financial Situation	Developing
Litigation Data	No reported
Bankruptcy	No reported
Public opinion	Normal
Payment Methods	L/C

INTERPRETATION ON THE SCORES

Kim Long Import and Export Company Limited (Kim Long Impex Co., Ltd) is a private company, it was established in 2004 with registration capital is 1 billion, including three shareholders: Mrs. Dinh Thi Bich Lien, Mrs. Phan Hong Thuy and Dien Quang Tung. But at present, Mr. Dien Quang Tung draws out his shares from the subject.

Transaction address of the subject is located at no.975 Giai Phong Str, Giap Bat Ward, Hoang Mai Dist, Hanoi City. The given address (19/26 Thai Thinh 2 Lane, Thai Thinh Str, Thinh Quang Ward, Dong Da Dist, Hanoi) was former address of the subject. And the given number (8736167) is not correct.

Kim Long Impex Co is specialized in trading stainless steel, spring & super thin stainless steel and special steel. Products are mainly imported from India and Japan.

The subject is considered as a small scale company in this field. Financial status is small, however, revenue and profit increases every year. Revenue is more than 12 billion VND in 2006 but in 2007, it nearly doubled. Payment capacity of the subject is acceptable with small business transactions.

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