MIRA INFORM REPORT

Report Date :

12.11.2008

IDENTIFICATION DETAILS

Name :	MINH NAM COMPANY LIMITED
Registered Office :	No. 280F2 Luong Dinh Cua Str, An Phu Ward, Dist 2, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2007
Year of Establishment:	2004
Com. Reg. No.:	4102025569
Legal Form :	Liability Limited Company
Line of Business :	Specializes in Chemicals and Export Wood Flour

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

Registered English Name	MINH NAM COMPANY LIMITED
Registered Vietnamese Name	CONG TY TNHH MINH NAM
Registered Abbreviate Name	MINH NAM CO., LTD
Founded	2004
Type of Business	Liability limited company
Business Registration	No. 4102025569
Issuance on	October 18^th 2004
Issuance by	Planning and Investment Department of Hochiminh City
Registered Capital	1,500,000,000 VND
Tax code	0303553613
Employees	20

ADDRESSES

Head Office
Address	No. 280F2 Luong Dinh Cua Str, An Phu Ward, Dist 2, Hochiminh City, Vietnam
Tel	(84-8) 54 025 796, 38 902 921
Fax	(84-8) 54 025 797
Email	info@minhnam.vn

DIRECTORS

1. NAME	Mr. NGUYEN DUC HOAN
Position	Director
Date of birth	October 25^th 1973
ID No.	023869735
Resident	No. 23 Ngo Tat To Str, Ward 21, Binh Thanh Dist, Hochiminh City
Nationality	Vietnamese
Email	ndhoan@minhnam.com
2. NAME	Ms. NGUYEN THI THANH BINH
Position	Vice Director
Year of birth	1973
ID No.	022740664
Resident	No. 23 Ngo Tat To Str, Ward 21, Binh Thanh Dist, Hochiminh City
Nationality	Vietnamese
3. NAME	Ms. TRAN THI TUYET
Position	Chief accountant
Year of birth	1973
Resident	Hochiminh City, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject specializes in chemicals and export wood flour.

The subject registers and operates in the following business activities:

o Trading in building materials, home decorations; machines, materials of industry and agricultural industry; household appliances, electronics.

o Trading raw materials, additives use in production: food, beauty products, pharmaceutical product, cattle feed, chemical.

o Producing, processing, trading in cloth, thread, hat, garment products …

o Executing of civil building project, industry projects, bridge and road projects

o Agency commercial, agency consignment

IMPORT & EXPORT ACTIVITIES

IMPORT: The subject imports chemicals, flavouring from China. (20%)

EXPORT: The subject exports wood flour for Middle East. (50%)

BANKERS

ABBANK
Address	No. 78-80 Cach Mang Thang Tam Str, Ward 6, Dist 3, Hochiminh City
Country	Vietnam
Tel	(84-8) 39 300 797
Fax	(84-8) 39 300 798

SHAREHOLDER(S)

The subject is a Limited Liability Company. Following is its shareholders:
1. NAME	Mr. NGUYEN DUC HOAN
Date of birth	October 25^th 1973
ID No.	023869735
Resident	No. 23 Ngo Tat To Str, Ward 21, Binh Thanh Dist, Hochiminh City
Nationality	Vietnamese
Share	98%
Value	1,470,000,000 VND
2. NAME	Ms. NGUYEN THI THANH BINH
ID No.	022740664
Resident	No. 23 Ngo Tat To Str, Ward 21, Binh Thanh Dist, Hochiminh City
Nationality	Vietnamese
Share	2%
Value	30,000,000 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	6,530	4,065
I.	Cash and cash equivalents	266	70
1.	Cash	266	70
2.	Cash equivalents	0	0
II.	Short-term investments	0	0
1.	Short-term investments	0	0
2.	Provisions for short-term investment of short- term investments in securities	0	0
III.	Accounts receivable	3,012	2,967
1.	Receivable from customers	2,499	1,994
2.	Repayments to suppliers	513	973
3.	Inter- company receivable	0	0
4.	Receivable according to the process of construction contracts	0	0
5.	Other receivable	0	0
6.	Provisions for credit risk	0	0
IV.	Inventories	2,757	803
1.	Inventories	2,757	803
2.	Provisions for devaluation of inventories	0	0
V.	Other current assets	495	225
1.	Short-term prepaid expenses	0	0
2.	VAT to be deducted	420	224
3.	Taxes receivable	0	1
4.	Other current assets	75	0
B -	LONG TERM ASSETS	192	218
I.	Long term accounts receivable	0	0
1.	Long term accounts 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	0	0
II.	Fixed assets	192	218
1.	Tangible assets	192	218
	Historical costs	259	239
	Accumulated depreciation	67	21
2.	Financial leasehold assets	0	0
	Historical costs	0	0
	Accumulated depreciation	0	0
3.	In-tangible assets	0	0
	Historical costs	0	0
	Accumulated depreciation	0	0
4.	Construction in progress	0	0
III.	Investment property	0	0
	History 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 investments in securities	0	0
V.	Other long term assets	0	0
1.	Long term repaid expenses	0	0
2.	Deferred income tax	0	0
3.	Other long term assets	0	0
	TOTAL ASSETS	6,722	4,283
LIABILITIES
A -	LIABILITIES	4,837	2,509
I.	Short term liabilities	4,837	2,509
1.	Short term debts and loans	3,640	1,975
2.	Payable to suppliers	866	370
3.	Advances from customers	60	0
4.	Taxes and other obligations to the State Budget	271	164
5.	Payable to employees	0	0
6.	Accrued expenses	0	0
7.	Inter- company payable	0	0
8.	Payable according to the progress of construction contracts	0	0
9.	Other payables	0	0
II.	Long term liabilities	0	0
1.	Long term account 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	0	0
6.	Provisions for unemployment allowances	0	0
B -	OWNER’S EQUITY	1,885	1,774
I.	Owner’s equity	1,889	1,778
1.	Capital	1,500	1,500
2.	Share premiums	0	0
3.	Treasury stocks	0	0
4.	Differences on asset re-valuation	0	0
5.	Foreign exchange differences	0	0
6.	Business promotion fund	0	0
7.	Financial reserved fund	0	0
8.	Other funds	0	0
9.	Retained earnings	389	278
10.	Construction investment fund	0	0
II.	Other sources and funds	-4	-4
1.	Bonus and welfare funds	-4	-4
2.	Sources of expenditure	0	0
3.	Funds to form fixed assets	0	0
	TOTAL LIABLITIES AND OWNER’S EQUITY	6,722	4,283
PROFIT & LOSE STATEMENT
	Description	FY 2007	FY 2006
1.	Sales	29,998	-
2.	Deductions	0	-
3.	Net sales	29,998	-
4.	Costs of goods sold	26,274	-
5.	Gross profit	3,724	-
6.	Financial income	17	-
7.	Financial expenses	324	-
	- In which: Loan interest expenses	0	-
8.	Selling expenses	0	-
9.	Administrative overheads	3,262	-
10.	Net operating profit	155	-
11.	Other income	1	-
12.	Other expenses	0	-
13.	Other profits	1	-
14.	Profit (loss) before tax	156	-
15.	Income tax	44	-
16.	Profit (loss) after tax	112	-

FINANCIAL FACTORS

Description	FY 2007	FY 2006
Current Liquidity Ratio	1.35	-
Quick Liquidity Ratio	0.78	-
Inventory Circle	14.76	-
Average Receive Period	41.84	-
Utilizing Asset Performance	3.91	-
Liability /Total Asset (%)	71.96	-
Liability /Owner's Equity (%)	256.60	-
Income before tax / Total Asset (%) ROA	2.32	-
Income before tax / Owner's Equity (%) ROE	8.28	-
Income before tax / Total Revenue (%) NPM	0.52	-
Gross Profit / Total Revenue (%) GPM	12.41	-

PAYMENT HISTORY AND EXPERIENCES

Trade Morality	Normal
Liquidity	Average
Payment status	Normal
Financial Situation	Average
Development trend	Even
Litigation data	No Recorded
Bankruptcy	No Recorded
Payment Methods	Through its corresponding bank. Foreign remittance by letter of credit (L/C), by telegraphic transfer (T/T).
Sale Methods	Directly to clients or through its agents.

INTERPRETATION ON THE SCORES

The subject, Minh Nam Company Limited is a liability limited company. It was established in 2004.

The subject specializes in supplying of materials served for productions of pharmaceutical, food, veterinary, beauty products and chemicals served for industries: plastic, paint, printing industry, thick kin, knit, dye and wash industry …

The subject imports chemicals and flavouring from China. Main market of the subject is Hochiminh City and neighboring provinces. Besides, the subject has also export wood flour for Middle East.

The premise and facilities of the subject are normal.

The Subject can exist in this competitive environment.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.79
UK Pound	1	Rs.75.41
Euro	1	Rs.61.48

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