MIRA INFORM REPORT

Report Date :

11.08.2011

IDENTIFICATION DETAILS

Name :	DAI HONG PHAT CERAMICS PTE
Registered Office :	Thanh Binh Hamlet, An Thanh Town - Thuan An Town - Binh Duong Province
Country :	Viet Nam
Financials (as on) :	31.12.2009
Date of Incorporation :	11.04.1998
Com. Reg. No.:	4601001093
Legal Form :	Private Enterprise
Line of Business :	Producing Ceramic Products

RATING & COMMENTS

MIRA’s Rating :

B

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

Status :	Moderate
Payment Behaviour :	Unknown
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^st, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Viet Nam	B1	B1

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

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	DAI HONG PHAT CERAMICS PTE
Vietnamese Name	DOANH NGHIEP TU NHAN GOM SU DAI HONG PHAT
Trade name	DAI HONG PHAT CERAMICS PTE
Short name	DAI HONG PHAT CERAMICS
Type of Business	Private enterprise
Year Established	1998
Establishment Decision	103GP/TLDN
Date of Issuance	11 Apr 1998
Place of Issuance	People's Committee of Binh Duong Province
Business Registration No.	4601001093
Date of Registration	02 Jun 2005
Place of Registration	Business Registration Office of Binh Duong Province
Current registered capital	23,819,619,840 VND
Tax code	3700259437
Total Employees	500

ADDRESSES
Head Office
Address	Thanh Binh Hamlet, An Thanh Town - Thuan An Town - Binh Duong Province - Vietnam
Telephone	(84-650) 3828 415 - 3832 407
Fax	(84-650) 3828 416
Website	www.daihongphat.com

DIRECTORS
1. NAME	Ms. NGUYEN THI HONG VAN
Position	Director – Legal Representative
Date of Birth	04 Feb 1974
ID Number/Passport	022914626
ID Issue Date	29 Jul 1993
ID Issue Place	Police Station of Hochiminh City
Resident	4/6 Hau Lan, Ba Diem - Hoc Mon District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Qualification	Management
2. NAME	Ms. CHU MINH NGUYET
Position	Chief Accountant
Resident	Binh Duong Province - Vietnam
Nationality	Vietnamese
Qualification	Bachelor

BUSINESS NATURE AND ACTIVITIES

The subject specializes in producing ceramic products.

IMPORT & EXPORT ACTIVITIES
IMPORT:
Types of products	chemicals
Market	Thailand, Taiwan
EXPORT:
Types of products	Products
Market	EU countries

BANKERS
1. ASIA COMMERCIAL BANK BINH DUONG BRANCH
Address	No.305 Binh Duong Boulevard - Thu Dau Mot City - Binh Duong Province - Vietnam
Telephone	(84-650) 381 1720
Fax	(84-650) 381 1721
2. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK BINH DUONG BRANCH
Address	C186A Group 1B - Binh Duc commune Lai Thieu town - Thuan An Town - Binh Duong Province - Vietnam
Telephone	(84-650) 376 2651
Fax	(84-650) 376 0437

SHAREHOLDERS
NAME	Ms. NGUYEN THI HONG VAN
Position	Director – Legal Representative
Date of Birth	04 Feb 1974
ID Number/Passport	022914626
Issued on	29 Jul 1993
Issued Place	Police Station of Hochiminh City
Resident	4/6 Hau Lan, Ba Diem - Hoc Mon District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Value of shares	23,819,619,840 VND
Percentage	100%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2009	31/12/2008
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	31,756,000,000	33,320,796,249
I. Cash and cash equivalents	12,500,000,000	15,491,888,275
1. Cash	12,500,000,000	15,491,888,275
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	734,000,000	697,220,654
1. Receivable from customers	0	0
2. Prepayments to suppliers	0	0
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	734,000,000	697,220,654
6. Provisions for bad debts	0	0
IV. Inventories	16,178,000,000	14,324,507,186
1. Inventories	16,178,000,000	14,324,507,186
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	2,344,000,000	2,807,180,134
1. Short-term prepaid expenses	0	101,520,661
2. VAT to be deducted	2,344,000,000	2,705,659,473
3. Taxes and other accounts receivable from the State	0	0
4. Other current assets	0	0
B. LONG-TERM ASSETS	8,459,000,000	9,867,690,390
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	8,211,000,000	9,390,111,064
1. Tangible assets	8,211,000,000	9,390,111,064
- Historical costs	28,137,000,000	27,970,925,541
- Accumulated depreciation	-19,926,000,000	-18,580,814,477
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
V. Other long-term assets	248,000,000	477,579,326
1. Long-term prepaid expenses	248,000,000	477,579,326
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	40,215,000,000	43,188,486,639
LIABILITIES
A- LIABILITIES	17,103,000,000	18,696,672,852
I. Current liabilities	17,103,000,000	18,696,672,852
1. Short-term debts and loans	0	0
2. Payable to suppliers	7,687,000,000	11,279,237,850
3. Advances from customers	9,560,000,000	8,282,639,447
4. Taxes and other obligations to the State Budget	-1,054,000,000	-1,457,619,158
5. Payable to employees	416,000,000	237,035,213
6. Accrued expenses	0	0
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	494,000,000	355,379,500
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	0	0
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	0	0
7. Provisions for long-term accounts payable	0	0
B- OWNER’S EQUITY	23,112,000,000	24,491,813,787
I. OWNER’S EQUITY	23,112,000,000	24,491,813,787
1. Capital	27,819,000,000	27,819,619,840
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	-4,707,000,000	-3,327,806,053
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
MINORITY’S INTEREST	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	40,215,000,000	43,188,486,639

PROFIT & LOSS STATEMENT
Description	FY2009	FY2008
1. Total Sale	25,746,000,000	69,298,973,850
2. Deduction item	0	0
3. Net revenue	25,746,000,000	69,298,973,850
4. Costs of goods sold	22,257,000,000	59,992,538,738
5. Gross profit	3,489,000,000	9,306,435,112
6. Financial income	64,000,000	59,847,284
7. Financial expenses	0	168,468,475
- In which: Loan interest expenses	0	0
8. Selling expenses	2,211,000,000	6,077,108,223
9. Administrative overheads	2,682,000,000	2,413,105,882
10. Net operating profit	-1,340,000,000	707,599,816
11. Other income	0	428,571,429
12. Other expenses	39,000,000	224,292,602
13. Other profit /(loss)	-39,000,000	204,278,827
14. Total accounting profit before tax	-1,379,000,000	911,878,643
15. Current corporate income tax	0	0
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	-1,379,000,000	911,878,643

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2009	FY2008	Average Industry
Current liquidity ratio	1.86	1.78	1.48
Quick liquidity ratio	0.91	1.02	0.86
Inventory circle	1.46	4.19	6.84
Average receive period	10.41	3.67	57.12
Utilizing asset performance	0.64	1.60	1.40
Liability by total asset	42.53	43.29	53.27
Liability by owner equity	74.00	76.34	165.07
Ebit / Total asset (ROA)	-3.43	2.11	9.44
Ebit / Owner's equity (ROE)	-5.97	3.72	22.99
Ebit / Total revenue (NPM)	-5.36	1.32	6.94
Gross profit / Total revenue (GPM)	13.55	13.43	16.18
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Fair
Liquidity	N/A
Payment status	N/A
Financial Situation	Average
Development trend	Even
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Direct payment or through its corresponding bank
Sale Methods	Wholesaler
Public opinion	N/A

INTERPRETATION ON THE SCORES

DAI HONG PHAT CERAMICS is a private enterprise which was officially established and activated in 1998. The subject is now operating under business registration No. 4601001093 issued by Business Registration Office of Binh Duong Province. The registered capital is about VND 23 billion.

The subject specializes in producing ceramic products. Main products of the subject are tableware, plant pots, vases, promotional items, cups, teapots, and kitchenware. Most of products are exported to

European markets, a small part of it are produced according the orders of domestic customers.

The subject does not only use materials for its production from domestic suppliers but also from foreigners. It imports chemical mainly from Thailand and Taiwan. All production processes are well-equipped with modern tools and produced by qualified and skillful craftsmen.

Business activities of the subject seem busy now. It has about 20 office staffs and more than 400 workers working in office and factory. The management capacity is acceptable. According to the financial data reported, the subject had an ineffective business result. Total revenue decreased about 62.8% compared with year 2008. The liquidity ratios were not high. It only has capacity to meet small financial commitments. Caution needed with medium and big business transactions.

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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.45.20
UK Pound	1	Rs.73.51
Euro	1	Rs.64.76

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
----	NB	New Business	----

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.