MIRA INFORM REPORT

Report Date :

11.08.2011

IDENTIFICATION DETAILS

Name :	POSCO VST COMPANY LIMITED
Formerly Known As :	ASIA STAINLESS CORPORATION
Registered Office :	319B Street Nhon Trach 1 Industrial Zone - Nhon Trach District - Dong Nai Province
Country :	Viet Nam
Financials (as on) :	31.12.2010
Year of Establishment :	2004
Com. Reg. No.:	472023000056
Legal Form :	Foreign invested company
Line of Business :	Manufacture and Trading Stainless Steel.

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
Current legal status
English Name	POSCO VST COMPANY LIMITED
Vietnamese Name	CONG TY TNHH POSCO VST
Trade name	POSCO VST CO., LTD
Type of Business	Foreign invested company
Year Established	2004
Investment Certificate No	472023000056
Date of Investment	17 Jan 2007
Place of Investment	Management Board of Dong Nai Industrial Zones in Dong Nai province
Registered Investment Capital	300,000,000 USD
Chartered capital	115,000,000 USD
Tax code	3600691629
Total Employees	800

Historical Identification & Legal form

List	Changed Items
1	Subject has got former Investment Certificate No: No.317/GP-KCN-DN, Issued on 3 September 2004 Changed to: No. 472023000056, Issued on 17 January 2007
2	Subject has got former Chartered capital: 30,000,000 USD Changed to: 40,000,000 USD changed to 50,000,000 USD
3	Subject has got former Registered English Name: ASIA STAINLESS CORPORATION Changed to: POSCO VST COMPANY LIMITED
4	Subject has got former Registered Vietnamese Name: CONG TY TNHH ASIA STAINLESS Changed to: CONG TY TNHH POSCO VST
5	Subject has got former Registered Investment Capital: 100,000,000 USD Changed to: 300,000,000 USD
6	Subject has got former Chartered capital: 50,000,000 USD Changed to: 115,000,000 USD

ADDRESSES
Head Office
Address	319B Street Nhon Trach 1 Industrial Zone - Nhon Trach District - Dong Nai Province - Vietnam
Telephone	(84-61) 3560361
Fax	(84-61) 3560247
Website	www.asiastainless.com
Branch in Ho Chi Minh
Address	Diamond plaza, Unit 707, Floor7 No. 34 Le Duan Street - 1 District - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3823 2206
Fax	(84-8) 3823 2210

DIRECTORS
1. NAME	Mr. BEA CHUNG HUN
Position	General Director
Date of Birth	25 Dec 1956
ID Number/Passport	SM0106468
ID Issue Date	27 Sep 2005
ID Issue Place	Korea
Resident	Tae Young A.P.T 108-1001, Changjun-dong, Mapo-gu, Seoul - Korea
Nationality	Korean
Qualification	Management
2. NAME	Mr. PHAN THANH HOANG
Position	Chief Accountant
Nationality	Vietnamese
Qualification	Bachelor

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in manufacture and trading stainless steel.

IMPORT & EXPORT ACTIVITIES
IMPORT:
Market	Korea, China and Japan...
EXPORT:
Market	USA, Korea, China and Italy.

BANKERS
1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM DONG NAI BRANCH
Address	No 77C Hung Dao Vuong Street -Trung Dung Ward - Bien Hoa City - Dong Nai Province - Vietnam
Telephone	(84-61) 382 3666
Fax	(84-61) 382 4191
2. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK - PASTER BRANCH
Address	24-26 Pasteur Street - Ben Nghe Ward - 1 District - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3821 2155
Fax	(84-8) 3821 2153
3. VIETNAM INTERNATIONAL COMMERCIAL JOINT STOCK BANK DONG NAI BRANCH
Address	Office Sector, A42 Factory, Gate 1 Bien Hoa Airport - Bien Hoa City - Dong Nai Province - Vietnam
Telephone	(84-61) 382 4994
Fax	(84-61) 382 6711
4. SHINHANVINA JOINT VENTURE BANK HO CHI MINH BRANCH 2
Address	No.3-5 Ho Tung Mau Street - Nguyen Thanh Binh Ward - 1 District - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3829 1581
Fax	(84-8) 3914 2635

SHAREHOLDERS
1. NAME	TAE YANG SA COMPANY LIMITED
Business Registration	180111-0318112
Date of Registration	24 Mar 2000
Place of Registration	Pusan Taxation Department
Address	No. 1471-1 Sonjgeonj dong - Gangseo-gu - - Pusan - Korea, South
Tel	82 5 1304 1041
Fax	82 5 1304 1047
Value of shares	5,000,000 USD
Percentage	4.35%
2. NAME	POSCO CO., LTD
Address	1, Goedong-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do - - - Korea, North
Value of shares	110,000,000 USD
Percentage	95.65%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010	31/12/2009	31/12/2008
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	2,382,308,809,143	811,541,000,000	414,634,206,721
I. Cash and cash equivalents	736,970,776,427	253,557,000,000	659,742,344
1. Cash	669,705,308,504	253,557,000,000	659,742,344
2. Cash equivalents	67,265,467,923	0	0
II. Short-term investments	0	0	0
1. Short-term investments	0	0	0
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	921,351,419,037	194,504,000,000	135,731,807,193
1. Receivable from customers	784,698,947,302	178,664,000,000	100,589,472,207
2. Prepayments to suppliers	126,769,488,889	9,810,000,000	14,975,160,443
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	9,882,982,846	7,457,000,000	20,167,174,543
6. Provisions for bad debts	0	-1,427,000,000	0
IV. Inventories	680,138,235,624	339,593,000,000	276,881,270,385
1. Inventories	694,560,007,207	339,593,000,000	279,710,180,272
2. Provisions for devaluation of inventories	-14,421,771,583	0	-2,828,909,887
V. Other Current Assets	43,848,378,055	23,887,000,000	1,361,386,799
1. Short-term prepaid expenses	10,424,024,836	607,000,000	417,419,032
2. VAT to be deducted	33,210,615,719	23,046,000,000	537,540,049
3. Taxes and other accounts receivable from the State	0	0	0
4. Other current assets	213,737,500	234,000,000	406,427,718
B. LONG-TERM ASSETS	1,069,405,774,071	909,950,000,000	771,650,151,204
I. Long term account receivable	5,000,000	5,000,000	545,000,000
1. Long term account receivable from customers	0	0	0
2. Working capital in affiliates	0	0	0
3. Long-term inter-company receivable	0	0	0
4. Other long-term receivable	5,000,000	5,000,000	545,000,000
5. Provisions for bad debts from customers	0	0	0
II. Fixed assets	1,044,826,748,374	891,261,000,000	760,886,247,121
1. Tangible assets	890,325,060,939	554,418,000,000	312,560,601,885
- Historical costs	1,095,710,611,334	711,023,000,000	421,204,281,076
- Accumulated depreciation	-205,385,550,395	-156,605,000,000	-108,643,679,191
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	0	0	0
- Initial costs	0	0	0
- Accumulated amortization	0	0	0
4. Construction-in-progress	154,501,687,435	336,843,000,000	448,325,645,236
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	0	0	0
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	0	0
3. Other long-term investments	0	0	0
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	24,574,025,697	18,684,000,000	10,218,904,083
1. Long-term prepaid expenses	4,476,668,854	5,243,000,000	5,703,185,770
2. Deferred income tax assets	20,097,356,843	13,441,000,000	4,515,718,313
3. Other long-term assets	0	0	0
VI. Goodwill
1. Goodwill
TOTAL ASSETS	3,451,714,583,214	1,721,491,000,000	1,186,284,357,925
LIABILITIES
A- LIABILITIES	2,365,304,917,233	1,064,208,000,000	580,651,538,207
I. Current liabilities	2,172,186,500,838	1,060,618,000,000	576,819,314,737
1. Short-term debts and loans	601,091,851,939	408,280,000,000	350,259,937,134
2. Payable to suppliers	1,553,087,783,269	642,671,000,000	165,630,723,110
3. Advances from customers	70,000,000	205,000,000	52,237,948,313
4. Taxes and other obligations to the State Budget	10,383,024,494	5,569,000,000	3,775,806,972
5. Payable to employees	438,533,112	1,702,000,000	1,748,367,456
6. Accrued expenses	7,016,966,004	2,169,000,000	2,339,467,280
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	98,342,020	22,000,000	827,064,472
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	193,118,416,395	3,590,000,000	3,832,223,470
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	0	2,339,000,000	2,338,613,695
4. Long-term debts and loans	191,658,613,695	0	219,934,775
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	1,459,802,700	1,251,000,000	1,273,675,000
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	1,086,409,665,981	657,283,000,000	605,632,819,718
I. OWNER’S EQUITY	1,086,409,665,981	657,283,000,000	605,632,819,718
1. Capital	1,389,154,212,132	821,194,000,000	642,774,212,132
2. Share premiums	0	0	0
3. Other sources of capital	0	0	0
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	0	0	0
7. Business promotion fund	0	0	0
8. Financial reserved fund	0	0	0
9. Other funds	0	0	0
10. Retained earnings	-302,744,546,151	-163,911,000,000	-37,141,392,414
11. Construction investment fund	0	0	0
II. Other sources and funds	0	0	0
1. Bonus and welfare funds	0	0	0
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	3,451,714,583,214	1,721,491,000,000	1,186,284,357,925

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009	FY2008
1. Total Sale	3,471,192,382,309	1,226,102,000,000	1,470,699,859,409
2. Deduction item	0	1,503,000,000	14,693,951,678
3. Net revenue	3,471,192,382,309	1,224,599,000,000	1,456,005,907,731
4. Costs of goods sold	3,391,466,752,798	1,228,189,000,000	1,365,402,390,514
5. Gross profit	79,725,629,511	-3,590,000,000	90,603,517,217
6. Financial income	24,359,352,456	6,584,000,000	14,201,636,006
7. Financial expenses	124,820,030,109	98,267,000,000	85,329,998,341
- In which: Loan interest expenses	18,000,127,548	-	-
8. Selling expenses	42,878,453,191	19,918,000,000	33,102,094,277
9. Administrative overheads	35,066,124,505	20,330,000,000	21,204,320,738
10. Net operating profit	-98,679,625,838	-135,521,000,000	-34,831,260,133
11. Other income	5,682,212,824	91,000,000	12,260,630,251
12. Other expenses	52,492,010,529	264,000,000	12,714,997,486
13. Other profit /(loss)	-46,809,797,705	-173,000,000	-454,367,235
14. Total accounting profit before tax	-145,489,423,543	-135,694,000,000	-35,285,627,368
15. Current corporate income tax	0	0
16. Deferred corporate income tax	6,655,828,735	8,925,000,000	-2,315,138,399
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	-138,833,594,808	-126,769,000,000	-32,970,488,969

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	1.10	0.77	0.72	1.22
Quick liquidity ratio	0.78	0.45	0.24	0.68
Inventory circle	4.99	3.62	4.43	4.84
Average receive period	96.88	57.97	34.03	82.27
Utilizing asset performance	1.01	0.71	1.23	1.39
Liability by total asset	68.53	61.82	48.95	63.00
Liability by owner equity	217.72	161.91	95.88	203.69
Ebit / Total asset (ROA)	-3.69	-7.88	-2.97	5.61
Ebit / Owner's equity (ROE)	-11.73	-20.64	-5.83	21.51
Ebit / Total revenue (NPM)	-3.67	-11.07	-2.40	4.11
Gross profit / Total revenue (GPM)	2.30	-0.29	6.16	10.91
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Fair
Liquidity	Medium
Payment status	Average
Financial Situation	Average
Development trend	Developing
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C , T/T
Sale Methods	To contracts
Public opinion	Well-known

INTERPRETATION ON THE SCORES

POSCO VST COMPANY LIMITED is a 100% foreign capital company. Former of name of the subject was ASIA STAINLESS CORPORATION. In October 2009, Posco Co., ltd (Korea) acquired 95,65% stake of ASIA STAINLESS CORPORATION and changed name of the subject to POSCO VST COMPANY LIMITED as a member of Posco. Posco has built on its relationship with Viet Nam since the opening of its very first office in 1992, and continuously contribute to the development of Vietnamese steel industry, by establishing Posco Vietnam in 2007. At present, the subject operates by 4,35% capital of Tae Yang Sa Company Limited and 95,65% capital of Posco Co., ltd (Korea). Its total investment and legal capital are 300 million USD and 115 million USD.

The premise and facility of the subject is relative. The head office is located at Nhon Trach 1 Industrial Zone with 13 ha of area. The subject is conducting to improve the production line to increase capacity from 150,000 to 250,000 tons / year.

POSCO is a largest steel enterprise in Korea and fourth largest all over the world. In a separate agreement, in May, 2009 POSCO signed a memorandum of understanding with Vietnam Steel Corporation on the establishment of a joint venture to produce 1 million tons of steel per year. In addition, this group also recently completed the review of investment projects of joint venture with Vinashin shipbuilding company in Vietnam. POSCO VST is getting great support from POSCO FAMILY.

At present, subject employs more than 800 employees. The competitive capability of the subject is fair. The subject’s position is above average in industry and it has prestige in the markets. The production and operations of the subject are busy now. Its annual revenue of the subject was increased. However, the profit in three years was negative. But in fact, when we interview subject’s chief accountant – Mr. Phan Thanh Hoang, the real profit after tax of the subject in 2010 was positive and very high. In our opinion, the subject has capacity to met small-normal 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.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.