MIRA INFORM REPORT

Report Date :

14.04.2011

IDENTIFICATION DETAILS

Name :	KIM TIN MDF JOINT STOCK COMPANY

Registered Office :	Ton Duc Thang Street, Tan An Quarter, Tan Phu Town - Dong Phu District - Binh Phuoc Province

Country :	Vietnam

Financials (as on) :	31.12.2009

Year of Establishment :	2007

Com. Reg. No.:	3800383036

Legal Form :	Joint Stock Company

Line of Business :	Manufacturing and trading MDF (Medium Densty Fiberboard) timber, MDF products.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Vietnam

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
English Name		KIM TIN MDF JOINT STOCK COMPANY
Vietnamese Name		CONG TY CO PHAN KIM TIN MDF
Trade name		KIM TIN MDF JOINT STOCK COMPANY
Short name		KIMTIN MDF
Type of Business		Joint stock company
Year Established		2007
Business Registration No.		3800383036
Date of Registration		14 Apr 2010
Place of Registration		Business Registration Office (Planning and Investment Department of Binh Phuoc Province)
Current registered capital		80,000,000,000 VND
Tax code		3800383036
Total Employees		300

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 44.03.000091 issued on 16 Oct 2007 Changed to: 3800383036	14 Apr 2010

company ADDRESSES

Head Office
Address		Ton Duc Thang Street, Tan An Quarter, Tan Phu Town - Dong Phu District - Binh Phuoc Province - Vietnam
Telephone		(84-651) 3833 142 - 3833 143
Fax		(84-651) 3833 130
Email		mdf.sales@kimtingroup.com
Website		www.kimtinmdf.com

Transaction office in Ho Chi Minh
Address		69 Nguyen Thi Street , Ward 13 - 5 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3950 6618
Fax		(84-8) 3855 1171

SUBSIDIARIES AND RELATED COMPANIES

PARENT COMPANY – KIM TIN TRADING COMPANY LIMITED
Business Registration		4102000109
Date of Registration		29 Jan 2000
Place of Registration		Planning and Investment Department of Hochiminh City
Registered Capital		110,000,000,000 VND
Tax code		0301911983
Address		No. 69 Nguyen Thi Str, Ward 13 – 5 District – Ho Chi Minh City – Vietnam
Tel		(84-8) 3 950 6618 – 3 876 0427
Fax		(84-8) 3 950 6617 – 3 750 7673
Website		www.kimtingroup.com

DIRECTORS

1 . NAME		Mr. PHAM TIEN THUAT
Position		General director - Legal Representattive
Date of Birth		22 Nov 1956
ID Number/Passport		022157579
Resident		89/1 Tran Quoc Toan Street, Ward 7 - 3 District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Qualification		Management

2 . NAME		Ms. NGUYEN THI TAM
Position		Chief Accountant
Resident		Binh Phuoc Province - Vietnam
Nationality		Vietnamese
Qualification		Bachelor of Economic

BUSINESS NATURE AND ACTIVITIES

The subject specializes in manufacturing and trading MDF (Medium Densty Fiberboard) timber, MDF products.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		timber
· Market		Malaysia

EXPORT:
· Types of products		MDF product
· Market		mainly to India

BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM HO CHI MINH BRANCH
Address		No. 29 Ben Chuong Duong - 1 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3829 7245 - 3823 0310 - 3823 0311
Fax		(84-8) 3829 7228

2. DONG A COMMERCIAL JOINT STOCK BANK DINH TIEN HOANG BRANCH

SHAREHOLDERS

1 . NAME		Ms. TRINH THI XUAN
ID Number/Passport		024519377
Resident		No. 288 Number 2C Road, Xa Dai RaDa Phu Lam, Ward 13 – 6 District – Ho Chi Minh City – Vietnam
Value of shares		26,880,000,000 VND
Percentage		33.6%

2 . NAME		Mr. PHAM TIEN THUAT
Position		General director – Legal Representattive
Date of Birth		22 Nov 1956
ID Number/Passport		022157579
Issued on		09 Oct 1997
Issued Place		Police Station of Hochiminh City
Resident		89/1 Tran Quoc Toan Street, Ward 7 – 3 District – Ho Chi Minh City – Vietnam
Nationality		Vietnamese
Value of shares		24,000,000,000 VND
Percentage		30%

3 . NAME		Mr. LE NANG THANG
ID Number/Passport		021865249
Resident		292/4 Nam Ky Khoi Nghia Str, Ward 8 – 3 District – Ho Chi Minh City – Vietnam
Value of shares		10,080,000,000 VND
Percentage		12.6%

4 . NAME		Ms. TRAN THI KIM QUY
ID Number/Passport		012091048
Resident		Group 14, Phuong Liet Ward – Thanh Xuan District – Ha Noi City – Vietnam
Nationality		Vietnamese
Value of shares		17,360,000,000 VND
Percentage		21.7%

5 . NAME		Mr. NGUYEN BINH GIANG
ID Number/Passport		121231062
Resident		The Sixth Zone Bac Cau Town – Bac Ninh City – Bac Ninh Province – Vietnam
Value of shares		1,680,000,000 VND
Percentage		2.1%

FINANCIAL DATA


BALANCE SHEET
*Unit: One VND*
Balance sheet date	31/12/2009
Number of weeks	52
ASSETS
A. Current Asset	32,432,000,000
Receivables	15,416,000,000
Inventory	17,016,000,000
Cash and other current assets	0
B. Long term Asset	147,143,000,000
1. Long term account receivable	756,000,000
2. Fixed assets	146,387,000,000
Tangible fixed assets	137,723,000,000
+ Original cost	140,362,000,000
+ Accumulated depreciation value	2,639,000,000
Financial leasehold assets
Intangible fixed assets
Construction in progress and other long term asset	8,664,000
TOTAL ASSETS	179,575,000,000

LIABILITIES
Payable loans	101,308,000,000
Owner’s Equity	78,267,000,000
TOTAL LIABILITY AND EQUITY	179,575,000,000

PROFIT & LOSS STATEMENT

Description	FY2009
1. Total Sale	19,497,366,170
2. Deduction item	192,093,784
3. Net sale	19,305,272,386
4. Costs of goods sold	16,883,722,884
5. Gross profit	2,421,549,502
6. Financial income	1,646,582
7. Financial expenses	1,444,956,947
- In which: Loan interest expenses	1,312,228,864
8. Selling expenses	0
9. Administrative overheads	400,129,999
10. Net operating profit	578,109,138
11. Other income	787,885
12. Other expenses	89,077
13. Other profit /(loss)	698,808
14. Total accounting profit before tax	578,807,946
15. Current corporate income tax	0
16. Deferred corporate income tax	0
17. Interest from subsidiaries/related companies	0
18. Profit after tax	578,807,946

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Fair
Liquidity		N/A
Payment status		N/A
Financial Situation		Average
Development trend		Developing
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		Direct payment or through its corresponding bank
Sale Methods		Retailer and Wholesaler
Public opinion		Normal

INTERPRETATION ON THE SCORES

KIM TIN MDF is a joint stock company which was established in 2007 under business registration No.44.03.000091 and registered capital VND 80 billion. Now the subject has changed its business registration to No.3800383036 (the same with the tax code).
The subject’s head office and factory located at Binh Phuoc province. The subject is one of the largest MDF manufacturers in Vietnam and also a MDF trader. Currently its factory with capacity of 60.000m3 annually is producing first MDF boards for the market. It plans to expand production capacity up to 300.000 m3 annually in the next few years.
About 80% finished products are consumed in domestic market. The rest of its are exported to foreign country. India is regular customer of the subject. It also trades MDF timber which are imported from Malaysia. The business activities of the subject seems busy now.
The subject is as a subsidiary of Kim Tin Trading Co., Ltd and also is the member of Kim Tin Group. Kim Tin Trading Co., Ltd is regarded as the mother company in Kim Tin Group, including: Kim Tin Corporation, Kim Tin Steel Corporation, Kim Tin Shipbuilding Industry Material Manufacturing JSC, Kim Tin Joint Stock Company, Kim Tin Co., Ltd and the subject. This group operates in many fields, but members support each others a lot.

Financial situation of the subject is average. The subject’s position in industry is remarkable. It has capacity to meet small financial commitments.

APPENDIXES

INDUSTRY DATA

Industry code	Growth speed (%)		Total employees 2009 (Thousand)		Total enterprises	Annual average capital of enterprises
	Predict 2010	2009
Agriculture, Forestry and Fishing	2.8	3.0	24,788.5		2,399	50,530
Trade and Services	7.5	11	10,517.9		79,181	1,754,973
Construction	7	11.3	2,692.8		17,783	248,268
Manufacturing	12	7.6	7,591.2		30,786	967,068

ECONOMIC INDICATORS

			2010	2009		2008
Population (Million person)			86.93	86.02		86.1
Gross Domestic Products (US$ billion)			102.2	91		84.9
GDP Growth (%)			6.78	5.32		6.2
GDP Per Capita (US$)			1,160	1,080		1,040
Inflation (% Change in Composite CPI)			11.75	6.88		24.4

SERVICE TRADE PERFORMANCE

Billion USD			2010	2009		2008
Exports			71.6	56.6		62.9
Imports			84	68.8		76.6
Trade Balance			-12.4	-12.2		-14.6

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.48
UK Pound	1	Rs.72.37
Euro	1	Rs.64.42

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	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

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.