MIRA INFORM REPORT

Report Date :

24.11.2008

IDENTIFICATION DETAILS

Name :	MITSUI & CO VIETNAM LTD
Registered Office :	Floor 17^th, Me Linh Point Tower, No. 2 Ngo Duc Ke str, Ben Nghe ward, Dist 1, Hochiminh city
Country :	Vietnam
Financials (as on) :	31.12.2007
Year of Establishment :	2006
Com. Reg. No.:	411043000102
Legal Form :	100% Foreign Investment Company
Line of Business :	Importing, Exporting and Distributing products in following fields: Chemicals, Foods, Garment Products, Equipment and Machinery

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 :	Good
Payment Behaviour :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	MITSUI & CO VIETNAM LTD
Vietnamese Name	CONG TY TNHH MITSUI VIETNAM
Trade Name	MITSUI VIETNAM
Type of Business	100% Foreign Investment Company
Founded	2006
Business Registration	No. 411043000102
Issuance on	December 22^nd 2006
Issuance by	People’s Committee of Hochiminh city
Investment Capital	30,000,000 USD
Legal Capital	10,000,000 USD
Investment Duration	50 years
Tax code	0304857572
Total Employees	50 employees
Note: + As the given name MITSUI & CO LTD (VIETNAM), we find MITSUI & CO VIETNAM LTD. However, this company’s address is not “44C Hanoi Highway, Di An dist, Binh Duong province” + At given address “44C Hanoi Highway, Di An dist, Binh Duong province”, there are many companies. In there, there is company named Mitsu Plastic Co., Ltd (in Vietnamese: Cong ty TNHH Mit Su). + We make reports on MITSUI & CO VIETNAM LTD because it has the most similar name.
ADDRESSES
Head Office:
Address	Floor 17^th, Me Linh Point Tower, No. 2 Ngo Duc Ke str, Ben Nghe ward, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 38292604 / 38291290 / 38290296
Fax	(84-8) 38290429
Website	www.mitsui.com.jp
Hanoi City Branch Office:
Address	Room 903, Sun Red River building, No. 23 Phan Chu Trinh str, Hoan Kiem dist, Hanoi city
Country	Vietnam
Business Registration	No. 0114000069
Tax code	0304857572 – 001
Tel	(84-4) 39330888
Fax	(84-4) 39330889
DIRECTORS
1. NAME	Mr. MOTONOBU SATO
Position	Current General Director
Qualification	Management
Resident	Hochiminh city, Vietnam
Nationality	Japanese
NAME	Mr. OZEKI KEN
Position	Former General Director
Qualification	Management
Nationality	Japanese
2. NAME	Mr. SHIRO ASAHINA
Position	Chief of Hanoi Branch Office
Qualification	Management
Resident	Hanoi city, Vietnam
Nationality	Japanese
3. NAME	Mr. SUKE SUZUKI
Position	Chief Accountant
Qualification	Bachelor
Resident	Hochiminh city, Vietnam
Nationality	Japanese
4. NAME	Ms. LUU BICH HANG
Position	Assistant to General Director
Qualification	Bachelor
Resident	Hochiminh city
Nationality	Vietnamese
Email	l.hang@mitsui.com
BUSINESS NATURE AND ACTIVITIES
The subject registers and operates in importing – exporting and distributing products in following fields: chemicals, foods, garment products, equipment and machinery …
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports products from Japan and many foreign countries to distribute in Vietnam
EXPORT: Its products also are exported to Japan
BANKERS
SUMITOMO MITSUI BANKING CORPORATION (SMBC) – Hochiminh city Branch
Address	Floor 9^th, Landmark building, No. 5B Ton Duc Thang street, Ben Nghe ward, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 5202525
Fax	(84-8) 8227762
SHAREHOLDER(S)
The subject is a 100 % Foreign Investment Company. Following is its parent:
1. NAME	MITSUI & CO LTD
Address	Mitsui & Co. Building, 2-1, Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-0004, Japan
Country	Japan
Tel	(81-3) 3285 – 1111
Fax	(81-3) 3285 – 9819
Website	www.mitsui.com.jp

FINANCIAL DATA
	BALANCE SHEET
	Unit: 1,000,000 VND
	Balance sheet date		31/12/2007
	Number of weeks		52
	ASSETS
	A -	CURRENT ASSETS	263,032
	I.	Cash and cash equivalents	77,188
	1.	Cash	14,847
	2.	Cash equivalents	62,341
	II.	Short-term financial investments	0
	1.	Short-term investments	0
	2.	Provisions for devaluation of short-term investment stocks	0
	III.	Accounts receivables	26,533
	1.	Receivable from customers	17,944
	2.	Prepayment to suppliers	1,516
	3.	Inter- company receivables	0
	4.	Progress receipts due from construction contract	0
	5.	Other receivables	7,073
	6.	Provisions for bad debts	0
	IV.	Inventories	138,745
	1.	Raw materials, spare parts,	138,745
	2.	Provisions for devaluation of inventories	0
	V.	Other current assets	20,566
	1.	Short-term prepaid expenses	156
	2.	Value added tax deducted	15,339
	3.	Taxes receivables	0
	4.	Other current assets	5,071
	B -	LONG TERM ASSETS	12,051
	I.	Long term accounts receivable	0
	1.	Long term accounts receivable from customers	0
	2.	Long term inter- company receivable	0
	3.	Other long term accounts receivables	0
	4.	Provisions for bad debts	0
	II.	Fixed assets	7,784
	1.	Tangible fixed assets	6,389
		Historical costs	8,703
		Accumulated depreciation	2,314
	2.	Finance lease assets	0
		Historical costs	0
		Accumulated depreciation	0
	3.	Intangible assets	1,395
		Historical costs	2,147
		Accumulated depreciation	752
	4.	Construction in progress	0
	III.	Investment property	0
		Historical costs	0
		Accumulated depreciation	0
	IV.	Long term financial investments	0
	1.	Investments subsidiary company	0
	2.	Investments in business concerns and joint ventures	0
	3.	Other long term investments	0
	4.	Provisions for devaluation of long-term investments stock	0
	V.	Other long term assets	4,267
	1.	Long term prepaid expenses	4,267
	2.	Deferred income tax assets	0
	3.	Other long term assets	0
		TOTAL ASSETS	275,083
	LIABILITIES
	A -	LIABILITIES	196,844
	I.	Short term liabilities	196,556
	1.	Short term debts and borrowings	0
	2.	Payable to suppliers	140,641
	3.	Advances from customers	1,834
	4.	Taxes and other accounts payable to the State Budget	34,520
	5.	Payable to employees	0
	6.	Accrued expenses	980
	7.	Payable to inter- company	0
	8.	Progress payments due to construction contract	0
	9.	Other payables	18,581
	10.	Provision for short term payable	0
	II.	Long term liabilities	288
	1.	Long term account payable to suppliers	0
	2.	Long term inter-company payables	0
	3.	Other long term payables	0
	4.	Long term debts and borrowings	0
	5.	Deferred income tax liabilities	0
	6.	Provision for unemployment	288
	7.	Provision for long term payable	0
	B -	OWNER’S EQUITY	78,239
	I.	Owner’s equity	78,239
	1.	Owners' Investment capital	165,000
	2.	Share premiums	0
	3.	Other owners’ capital	0
	4.	Treasury shares	0
	5.	Differences upon asset revaluation	0
	6.	Foreign exchange differences	0
	7.	Business promotion fund	0
	8.	Financial reserved fund	0
	9.	Other funds	0
	10.	Undistributed earnings	-86,761
	11.	Investment construction capital	0
	II.	Other sources and funds	0
	1.	Bonus and welfare funds	0
	2.	Sources of expenditure	0
	3.	Funds used to acquire fixed assets	0
		TOTAL LIABLITIES AND OWNER’S EQUITY	275,083

	PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
		Description		FY 2007
	1.	Revenue from sales of goods and rendering of services		829,137
	2.	Deductible items		0
	3.	Net revenue from sales of goods and rendering of services		829,137
	4.	Costs of goods sold		797,790
	5.	Gross profit		31,347
	6.	Income from financial activities		6,174
	7.	Expenses from financial activities		538
		In which: Loan Interest expenses		196
	8.	Selling expenses		85,619
	9.	General & administration expenses		38,239
	10.	Net operating profit		-86,875
	11.	Other incomes		113
	12.	Other expenses		0
	13.	Other profits		113
	14.	Profit (loss) before tax		-86,762
	15.	Income tax		0
	16.	Profit (loss) after tax		-86,762
	FINANCIAL FACTORS
	Description			FY 2007
	Current Liquidity Ratio			1.34
	Quick Liquidity Ratio			0.63
	Inventory Circle			5.75
	Average Receive Period			11.68
	Utilizing Asset Performance			3.01
	Liability / Total Asset (%)			71.56
	Liability / Owner's Equity (%)			251.59
	Income Before Tax / Total Asset (%) ROA			-31.54
	Income Before Tax / Owner's Equity (%) ROE			-110.89
	Income Before Tax / Total Revenue (%) NPM			-10.46
	Gross Profit / Total Revenue (%) GPM			3.78
PAYMENT HISTORY AND EXPERIENCES
Trade Morality			Fairly Good
Liquidity			Average
Payment status			Fairly Prompt
Financial Situation			Fairly Good
Development trend			Bright
Litigation data			No Recorded
Bankruptcy			No Recorded
Payment Methods			Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C) or telegraphic transfer (T/T)
INTERPRETATION ON THE SCORES
Mitsui & Co Vietnam Ltd is a wholly owned subsidiary of Mitsui & Co Ltd of Japan. It has been licensed in December 2006 and started operation in beginning of 2007. The subject is the first 100% foreign invested company, which get permission to import – export directly and distribute goods in Vietnam market (according to Vietnam’s engagement to join in WTO). However, the subject doesn’t sell retail to consumer. Currently, the subject only imports goods from foreign countries than wholesaling for hinterland distributors or manufacturers using those goods as materials. Especially, the subject has close business relationship with Japanese manufacturing and processing companies, which located in Vietnam. The subject’s products are in many fields: chemicals, foods, aquatic and agricultural products, garment products, industrial equipment and machinery, consumer products, etc … The subject has many strong supports from its parent company. Mitsui & Co Ltd of Japan has a worldwide network with 157 offices and subsidiaries in 67 countries. Its representative office has present in Vietnam from 1991. This group are multilaterally pursuing business that ranges from products sales, worldwide logistics and financing, through to the development of major international infrastructure and other projects in the following fields: iron & steel products, mineral & metal resources, infrastructure projects, motor vehicles, marine & aerospace, chemicals, energy, foods & retail, consumer services, information, electronics and telecommunications, financial markets and transportation logistics. The subject was lost in first year of operation but its turnover is remarkable. The subject’s prospect of development in future is bright. It has capacity to meet financial commitments.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.09
UK Pound	1	Rs.74.90
Euro	1	Rs.63.40

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