MIRA INFORM REPORT

Report Date :

27.11.2008

IDENTIFICATION DETAILS

Name :	INTERNATIONAL PAINT SINGAPORE PTE., LTD
Registered Office :	E Town Building, 2nd Floor, 364 Cong Hoa St, Ward 13, Tan Binh Dist, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2007
Year of Establishment :	1994
Com. Reg. No.:	269/GPDC13-BKH-KCNDN
Legal Form :	Business Co-operation Contract
Line of Business :	Supply of Protective Coatings including Marine Coatings, Offshore Paints for new construction and maintenance. Providing Paints and Coatings for industrial plant and infrastructure works that requires high standard of coatings.

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 :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	INTERNATIONAL PAINT SINGAPORE PTE., LTD
Vietnamese Name	CONG TY INTERNATIONAL PAINT SINGAPORE PTE., LTD
Trade Registered Name	INTERNATIONAL PAINT SINGAPORE PTE., LTD
Former Trade Name	INTERNATIONAL PAINT PTE., LTD (VIETNAM)
Type of Business	Business Co-operation Contract
Found	1994
Current business registration	No. 269/GPDC13-BKH-KCNDN
Issued on	June 30^th 2006
Issued by	Management Board of Dong Nai Industrial Zones
Former business registration	No. 269/GP
Issued on	November 7^th 1991
Issued by	Ministry of Planning and Investment
Legal Capital	1,411,681 USD
Investment Capital	1,411,681 USD
Tax Code	3600245663
Total Employees	Over 50 employees
Notes: At the address given, there is a representative office that operates under the same name INTERNATIONAL PAINT SINGAPORE PTE – R-EP.OFFICE. Both the subject and Rep. Office have the same owners. Previously, in 2004 the Rep. Office was closed but in 2007 it has issued a new license and has legal form as follow:
English Name	INTERNATIONAL PAINT SINGAPORE PTE., LTD- REPRESENTATIVE OFFICE
Vietnamese Name	VAN PHONG DAI DIEN INTERNATIONAL PAINT SINGAPORE PTE. LTD
Trade Name	INTERNATIONAL PAINT SINGAPORE PTE. LTD
Former Trade Name	INTERNATIONAL PAINT PTE. LTD
Original Trade Name	INTERNATIONAL COATINGS PTE. LTD
Founded	1994
Type of Business	Representative Office of a foreign enterprise
Current Established License	41-000401
Issued on	January 31^st 2007
Issued by	People’s committee of Hochiminh City
Registration operation period	From January 31^st 2007 to January 31^st 2012
Former Established License	47/2000/GP-VPDD
Issued on	December, 22^nd 2000
Issued By	People’s Committee of Hochiminh City
ADDRESS
Operating Office
Address	E Town Building, 2nd Floor, 364 Cong Hoa St, Ward 13, Tan Binh Dist, Hochiminh City
Country	Vietnam
Tel	(84-8) 38120499 / 38120500 / 38120501 / 38120502
Fax	(84-8) 38120498
Email	manuele.mazzanti@internationalpaint.com
Factory’s Location
Address	Str 7, Bien Hoa I Industrial Park, Bien Hoa City, Dong Nai province
Country	Vietnam
Tel	(84-61) 3836623
Fax	(84-61) 3836059
Email	hoang.thihoaithu@internationalpaint.com
Technical Service Centers
1. Hanoi office
Address	No.4 Vu Ngoc Phan Str, Dong Da Dist, Hanoi City.
Tel	(84-4) 7765172
Fax	(84-4) 7765171
Former Address	56A Nguyen Du St, Floor 4^thHai Ba Trung Dist, Hanoi city
2. Nha Trang office
Address	Ninh Thuy Commune, Ninh Hoa province, Nha Trang city
Country	Vietnam
Email	ngo.trongkiem@internationalpaint.com
3. Hai Phong office
Address	Floor 3^rd, No. 3, Le Thanh Tong St, Ngo Quyen Dist, Hai Phong city
Country	Vietnam
Tel	(84-31) 3552 704
Fax	(84-31) 3552 706
Email	nguyen.nam@internationalpaint.com
4. Da Nang Office
Address	Room 502, No. 116 Nguyen Van Linh Str,
Country	Da Nang City
Tel	(84-511) 369 2424
Fax	(84-511) 369 2425
DIRECTORS
1. NAME	Mr. DAVID LOW
Position	General Director
Qualification	Management
Nationality	England
Notes: Mr. MANUELE MAZZANTI (Former Financial Director) has just left.
2. NAME	Ms. HOANG THI HOAI THU
Position	Factory Director
Qualification	Bachelor
Resident	Dong Nai City
Nationality	Vietnamese
3. NAME	Ms. HUYNH TUONG VY
Position	Chief Accountant
Qualification	Bachelor
Resident	Hochiminh city
Nationality	Vietnamese
4. NAME	Ms. DINH CAM VAN
Position	Sale Director
Qualification	Bachelor
Resident	Hochiminh city
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject registered in the following lines of business: + Supply of protective coatings including marine coatings, offshore paints for new construction and maintenance. + Providing paints and coatings for industrial plant and infrastructure works that requires high standard of coatings.
IMPORT & EXPORT ACTIVITIES
IMPORT: The imported market of the subject is Germany, United Kingdom, and some agents in Asia (Singapore, China).
EXPORT: The subject provides paint for many foreign vessels that berth in Vietnamese Ports. It also provides coatings for offshore infrastructure of Petroleum and gas complex, Russian oil platform.
MAJOR CLIENTS
1. Oil & Gas	PVECC, VIETGAS, VIETSOVPETRO, AGAS, PVICCC, SAIGON PETRO, PETECHIM, MOBIL, SHELL, HONG-LEONG, SOKIMEX CAMBODE, DAI HAI GAS PLANT, PTSC, LILAMA, PETROMEKONG, MC. CONELL DOWELL, PETRONAS, GPE, MEKONG GAS, VT GAS, KVAERNER, CALTEX, THANG LONG GAS, CUU LONG JOC.
2. Power	SIEMENS, MHI JAPAN, LILAMA, GEA INDIA, PREZISO, MITSUI BABCOK, NEM, HYUNDAI ENG, DOOSAN, VIVEDI, DOWNER, ALSTOM, EVN-HOA BINH, EVN- TRI AN, EVN- THAC MO, EVN- YALI, CS WIND TOWER.
3. Infrastructure	LILAMA, COMA, GENERAL CONST. NO.1, VIET-NAMFATT, THANG LONG CONST, HANVICO, BINH TRIEU MECH, CIENCO 6, CHINGFON GROUP, PREZIOSO, STG FCB, THIESS, VINA-LEIGHTON, TAISEI, SAMSUNG ENG, COFICO, VIET STEEL, POSLILAMA, CIENCO 5, TECHNIP COLEXIP, VIETNAM RAILWAYS, MES, SONG DA- JURONG, MHI, FLS, INTERTEC.
4. Offshore	SEDCO FOREX, SANTA FE, ENSCO, RBF, VIETSOVPETRO, PTSC, MC/MHI, BHP, PETRONAS, SCHLUMBERGER, JGC, JAPAN DRILLING, CUU LONG JOC, JVPC, AMIGO, BJ SERVICES, PV DRILLING, PETRO PRODUCTION.
BANKERS
1. HONGKONG & SHANGHAI BANKING CORPORATION LTD
Address	235 Dong Khoi St, Dist 1, Hochiminh city, Vietnam
Tel	(84-8) 829 2288
Fax No	(84-8) 8230 530
SWIFT	HSBCVNVX
2. VIETCOMBANK (HOCHIMINH CITY BRANCH)
Address	29 Ben Chuong Duong St, Dist 1, Hochiminh city, Vietnam
Telephone	(84-8) 8251317
Fax	(84-8) 8297228
Telex	811234/5 VCB-VT
Swift address	BFTVVNVX 007
3. INDOVINA BANK (HAI PHONG BRANCH)
Address	30 Tran Phu St, Hai Phong City, Vietnam
Telephone	(84-31) 921 330
Fax	(84-31) 921 640
Telex	311273 IVBHP-VT
Email	ivbhp@hn.vnn.vnn
Website	www.indovinabank.com.vn
SHAREHOLDERS
Vietnam Partner
Name	DONG NAI PAINT JOINT STOCK COMPANY (DONASA)
Address	Str 7, Bien Hoa I Industrial Park, Bien Hoa City, Dong Nai Province
Country	Vietnam
Tel	(84-61) 836112
Fax	(84-61) 836091
Email	visitsdn@hcm.vnn.vn
Website	www.donasa.com.vn
Foreign Partner
Name	INTERNATIONAL PAINT SINGAPORE PTE., LTD (owned by AKZO NOBEL)
Address	3 Neythal Road – Jurong Town
Country	Singapore 628570
Tel	6261 5033
Fax	6264 4612
Website	www.international-coatings.com www.internationalpaint.com

FINANCIAL DATA
BALANCE SHEET
Unit: 1,000 VND
Balance sheet date			31/12/2007	31/12/2006
Number of weeks			52	52
ASSETS
A – CURRENT ASSETS			101,832,178	79,096,645
I. Cash and cash equivalents			26,432,709	12,341,954
1.Cash			26,432,709	12,341,954
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			56,385,024	47,256,242
1. Receivable from customers			27,265,190	25,000,589
2. Prepayments to suppliers			0	0
3. Inter-company receivable			28,123,594	22,849,339
4. Receivable according to the progress of construction			0	0
5. Other receivable			1,209,149	512,671
6. Provisions for bad debts			-212,909	-1,106,357
IV. Inventories			18,261,721	18,591,054
1. Inventories			18,557,947	19,011,765
2. Provisions for devaluation of inventories			-296,226	-420,711
V. Other Current Assets			752,724	907,395
1. Short-term prepaid expenses			259,164	663,614
2. VAT to be deducted			0	0
3. Taxes and other accounts receivable from the State			0	0
4. Other current assets			493,560	243,781
B. LONG-TERM ASSETS			3,501,744	2,131,481
I. Long term account receivable			0	0
1. Long term account receivable from customers			0	0
2. Working capital in affiliates			0	0
3. Long-term inter-company receivable			0	0
4. Other long-term receivable			0	0
5. Provisions for bad debts from customers			0	0
II. Fixed assets			2,981,186	1,397,627
1. Tangible assets			2,981,186	1,397,627
Historical costs			11,306,089	9,441,336
Accumulated depreciation			-8,324,903	-8,043,709
2. Financial leasehold assets			0	0
Historical costs			0	0
Accumulated depreciation			0	0
3. Intangible assets			0	0
Initial costs			0	0
Accumulated amortization			0	0
4. Construction-in-progress			0	0
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			520,558	733,854
1. Long-term prepaid expenses			0	0
2. Deferred income tax assets			520,558	733,854
3. Other long-term assets			0	0
TOTAL ASSETS			105,333,922	81,228,126
LIABILITIES
A- LIABILITIES			37,104,030	29,203,589
I. Current liabilities			35,754,023	28,109,746
1. Short-term debts and loans			0	0
2. Payable to suppliers			23,408,350	19,274,691
3. Advances from customers			69,335	0
4. Taxes and other obligations to the State Budget			3,200,430	2,488,943
5. Payable to employees			0	0
6. Accrued expenses			4,193,134	2,464,844
7. Inter-company payable			4,882,130	3,881,268
8. Payable according to the progress of construction contracts			0	0
9. Other payable			644	0
10. Provisions for short-term accounts payable			0	0
II. Long-Term Liabilities			1,350,007	1,093,843
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
6. Provisions for unemployment allowances			1,350,007	1,093,843
7. Provisions for long-term accounts payable			0	0
B- OWNER'S EQUITY			68,229,892	52,024,537
I. Owner's equity			68,229,892	52,024,537
1. Capital			0	0
2. Share premiums			0	0
3. Other sources of capital			0	0
4. Treasury stocks			0	0
5. Differences on asset revaluation			0	0
6. Foreign exchange differences			0	0
7. Business promotion fund			0	0
8. Financial reserved fund			0	0
9. Other funds			0	0
10.Retained earnings			68,229,892	52,024,537
11. Construction investment fund			0	0
II. Other sources and funds			0	0
1. Bonus and welfare funds			0	0
2. Sources of expenditure			0	0
3. Fund to form fixed assets			0	0
TOTAL LIABILITIES AND OWNER'S EQUITY			105,333,922	81,228,126
PROFIT & LOSS STATEMENT
Description		FY 2007		FY 2006
Revenue		150,091,765		133,529,756
Deductions Items		412,622		283,135
Net Revenue		149,679,143		133,246,621
Costs of goods sold		100,036,525		86,569,613
Gross profit		49,642,618		46,677,008
Financial income		1,104,887		533,296
Financial expenses		549,402		746,203
In which: Loan interest expenses
Selling expenses		14,428,618		15,254,898
Administrative overheads		11,635,848		9,186,511
Net operating profit		24,133,637		22,022,692
Other income		0		0
Other expenses		4,248		99,620
Other profit /(loss)		-4,248		-99,620
Total accounting profit before tax		24,129,389		21,923,072
Current corporate income tax		7,710,738		6,688,075
Deferred corporate income tax		213,296		43,565
Profit after tax		16,205,355		15,278,562
FINANCIAL FACTORS
Description		2007		2006
Current liquidity ratio		2.85		2.81
Quick Liquidity ratio		2.34		2.15
Inventory circle		5.43		4.66
Average receive period		205.73		199.24
Utilizing Asset Performance		0.95		1.07
Liability/ Total Asset (%)		35.23		35.95
Liability/ Owner's equity (%)		54.38		56.13
Ebit / Total asset (%) ROA		22.91		26.99
Ebit / Owner's equity (%) ROE		35.36		42.14
Ebit / Total revenue (%) NPM		16.08		16.42
Gross Profit / Total revenue (%) GPM		33.07		34.96
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Relative
Liquidity	Prompt
Payment status	Fairly prompt
Financial Situation	Fairly good
Development trend	Up Trend
Litigation data	No Recorded
Bankruptcy	No Recorded
Payment Methods	Direct payment or through corresponding bank
Sale Methods	Direct to Clients or through its offices

INTERPRETATION ON THE SCORES

INTERNATIONAL PAINT SINGAPORE PTE LTD has been established in 1994. In Fiscal 1996, its total revenue was USD 1,413,550. Its revenue increased year after year. In fiscal 2005, its revenue was USD 7,785,000.

The subject used to import materials from some countries in Asia like Singapore, China, Japan, and Germany.

The subject provides paint for many foreign vessels that berth in Vietnamese Ports. It also provides coatings for offshore infrastructure of Petroleum and gas complex, Russian oil platfor and providing paints and coatings for industrial plant and infrastructure works that requires high standard of coatings.

In middle August of 2008, the subject has big personal changes, Mr. MANUELE MAZZANTI (Former Financial Director) has just left and up to now, this position still available.

The subject’s business operation is a potential field in Vietnam at this time. However, there are more and more manufacturers in this trading area, so the subject meets difficulties in competition and market share. The hard competitive environment makes the subject try its best to have a good standing in the market and has good relation with clients. The subject is the worldwide market leader in Marine, Protective, Yacht and Aerospace paint. International Paint that base on Singapore has operations in 54 countries worldwide and over 3,500 employees. The company's International® brandname has worldwide market leadership positions in Marine, Protective and Yacht paints

In conclusion, The financial and operational bases of the subject are relative. The business operation of the subject is in the stage of development. Therefore, It has capacity to meet small financial commitment. Caution needed for big business transaction

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.84
UK Pound	1	Rs.76.81
Euro	1	Rs.64.38

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%)

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