MIRA INFORM REPORT

Report Date :

02.12.2011

IDENTIFICATION DETAILS

Name :	HUONG SON TRADING - CONSTRUCTION COMPANY LIMITED
Registered Office :	No. 75/52 A1 Le Van Luong Str - Quarter 1- Tan Kieng Ward - District 7 - Ho Chi Minh City
Country :	Vietnam
Financials (as on) :	31.12.2010
Year of Establishment :	2006
Com. Reg. No.:	0304724195
Legal Form :	Limited Liability Company
Line of Business :	Construction of other civil engineering projects
No. of Employees :	50 Persons

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 :	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 – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Vietnam	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	HUONG SON TRADING - CONSTRUCTION COMPANY LIMITED
Vietnamese Name	CONG TY TNHH XAY DUNG - THUONG MAI HUONG SON
Short name	HUONG SON CONSTRUCTION CO.,LTD
Type of Business	Limited liability company
Year Established	2006
Business Registration No.	0304724195
Date of Registration	24 Aug 2011
Place of Registration	Business Registration Office - Planning and Investment Department of Ho Chi Minh City
Current registered capital	3,000,000,000 VND
Tax code	0304724195
Total Employees	50

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 4102045580 which was first issued on 06 Dec 2006 Changed to: 0304724195	24 Aug 2011

company ADDRESSES

Head Office
Address	No. 75/52 A1 Le Van Luong Str - Quarter 1- Tan Kieng Ward - District 7 - Ho Chi Minh City - Vietnam
Telephone	(84-8) 2202 0085
Fax	(84-8) 5433 0633
Website	www.hscc.com.vn
Representative office in Ho Chi Minh
Address	No. 64 Str 21 - Tan Quy Ward – District 7 - Ho Chi Minh City – Vietnam
Manager	Mr. NGUYEN DINH LUU

DIRECTORS

1. NAME	Ms. NGUYEN NGOC DUNG
Position	Director
Date of Birth	30 Nov 1979
ID Number/Passport	022979670
ID Issue Date	02 Jan 1995
ID Issue Place	Police Station of Ho Chi Minh City
Resident	No. 1A-1B Nguyen Dinh Chieu Str - Da Kao Ward - District 1 - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
2. NAME	Mr. HA HUY TRUNG
Position	Deputy Director
ID Number/Passport	183002442
Resident	Quarter 5 - Huong Son Town - Huong Son District - Ha Tinh Province - Vietnam
Nationality	Vietnamese
3. NAME	Mr. NGUYEN DINH LUU
Position	Export Import Manager
Date of Birth	10 Jan 1985
ID Number/Passport	186188866
ID Issue Date	27 Jun 2006
ID Issue Place	Police Station of Nghe An Province
Resident	No. 75/52 A1 Le Van Luong - Quarter 1 - Tan Kieng Ward - District 7 - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
4. NAME	Ms. NGUYEN THI NGOC HANH
Position	Chief Accountant
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

Construction of other civil engineering projects
Wholesale of other machinery and equipment n.e.c
Other manufacturing n.e.c
Wholesale of waste and scrap and other products n.e.c
Wholesale of agricultural raw materials (except wood, bamboo) and live animals
Wholesale of food
Wholesale of computer, computer peripheral equipment and software
Wholesale on a fee or contract basis
Other transportation support activities
Real estate activities with own or leased property
Other land transport of passenger
Installation of industrial machinery and equipment
Repair of machinery
Wholesale of other household products
Wholesale of motor vehicles
Wholesale of construction materials, installation supplies
Inland freight water transport
Demolition
Specialized design activities
Wholesale of electronic and telecommunications equipment and supplies
Electrical installation activities

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Materials
· Market	India, USA
EXPORT:
Notes: Currently, the subject does not export

BANKERS

1. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK HO CHI MINH BRANCH
Address	No.6 Nguyen Thi Minh Khai Str - Da Kao Ward - District 1 - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3911 6868 – (84-8) 3456 6868
Fax	(84-8) 39112199
2. VIET ASIA COMMERCIAL JOINT STOCK BANK
Address	No. 119-121 Nguyen Cong Tru Str - Nguyen Thai Binh Ward - District 1 - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3829 2497
Fax	(84-8) 3823 0336

SHAREHOLDERS

1. NAME	Ms. NGUYEN NGOC DUNG
Position	Director
Date of Birth	30 Nov 1979
ID Number/Passport	022979670
Issued on	02 Jan 1995
Issued Place	Police Station of Ho Chi Minh City
Resident	No. 1A-1B Nguyen Dinh Chieu Str - Da Kao Ward - District 1 - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Value of shares	2,910,000,000 VND
Percentage	97%
2. NAME	Mr. HA HUY TRUNG
Position	Deputy Director
ID Number/Passport	183002442
Resident	Quarter 5 - Huong Son Town - Huong Son District - Ha Tinh Province - Vietnam
Nationality	Vietnamese
Value of shares	90,000,000 VND
Percentage	3%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010	31/12/2009
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	6,627,592,511	3,396,157,671
I. Cash and cash equivalents	3,719,789,440	2,742,612,491
1. Cash	3,719,789,440	2,742,612,491
2. Cash equivalents
II. Short-term investments
1. Short-term investments
2. Provisions for devaluation of short-term investments
III. Accounts receivable	2,821,318,692	242,390,437
1. Receivable from customers	2,764,188,313	213,317,825
2. Prepayments to suppliers	57,095,675	28,842,000
3. Inter-company receivable
4. Receivable according to the progress of construction
5. Other receivable	34,704	230,612
6. Provisions for bad debts
IV. Inventories	24,764,835	360,331,388
1. Inventories	24,764,835	360,331,388
2. Provisions for devaluation of inventories
V. Other Current Assets	61,719,544	50,823,355
1. Short-term prepaid expenses	61,719,544	29,050,080
2. VAT to be deducted	0	21,773,275
3. Taxes and other accounts receivable from the State	0	0
4. Other current assets
B. LONG-TERM ASSETS	21,714,142	40,848,076
I. Long term account receivable	0	0
1. Long term account receivable from customers
2. Working capital in affiliates
3. Long-term inter-company receivable
4. Other long-term receivable
5. Provisions for bad debts from customers
II. Fixed assets	21,714,142	40,848,076
1. Tangible assets	21,714,142	40,848,076
- Historical costs	72,607,864	72,607,864
- Accumulated depreciation	-50,893,722	-31,759,788
2. Financial leasehold assets	0	0
- Historical costs
- Accumulated depreciation
3. Intangible assets
- Initial costs
- Accumulated amortization
4. Construction-in-progress
III. Investment property
Historical costs
Accumulated depreciation
IV. Long-term investments	0	0
1. Investments in affiliates
2. Investments in business concerns and joint ventures
3. Other long-term investments	0	0
4. Provisions for devaluation of long-term investments
V. Other long-term assets	0	0
1. Long-term prepaid expenses
2. Deferred income tax assets
3. Other long-term assets
TOTAL ASSETS	6,649,306,653	3,437,005,747
LIABILITIES
A- LIABILITIES	2,306,962,749	363,483,888
I. Current liabilities	2,306,962,749	363,483,888
1. Short-term debts and loans	0	30,000,000
2. Payable to suppliers	914,318,645	114,660,766
3. Advances from customers	1,356,017,475	212,117,556
4. Taxes and other obligations to the State Budget	36,626,629	1,521,566
5. Payable to employees
6. Accrued expenses
7. Inter-company payable
8. Payable according to the progress of construction contracts
9. Other payable	0	5,184,000
10. Provisions for short-term accounts payable
II. Long-Term Liabilities	0	0
1. Long-term accounts payable to suppliers
2. Long-term inter-company payable	0
3. Other long-term payable
4. Long-term debts and loans
5. Deferred income tax payable
6. Provisions for unemployment allowances
7. Provisions for long-term accounts payable
B- OWNER’S EQUITY	4,342,343,904	3,073,521,859
I. OWNER’S EQUITY	4,342,343,904	3,073,521,859
1. Capital	3,000,000,000	3,000,000,000
2. Share premiums
3. Other sources of capital
4. Treasury stocks
5. Differences on asset revaluation
6. Foreign exchange differences
7. Business promotion fund
8. Financial reserved fund
9. Other funds
10. Retained earnings	1,342,343,904	73,521,859
11. Construction investment fund
II. Other sources and funds
1. Bonus and welfare funds
2. Sources of expenditure
3. Fund to form fixed assets
MINORITY’S INTEREST
TOTAL LIABILITIES AND OWNER’S EQUITY	6,649,306,653	3,437,005,747

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009
1. Total Sale	9,875,238,750	1,961,536,268
2. Deduction item	0	0
3. Net sale	9,875,238,750	1,961,536,268
4. Costs of goods sold	8,127,352,251	1,583,276,094
5. Gross profit	1,747,886,499	378,260,174
6. Financial income	6,015,957	2,267,715
7. Financial expenses	50,991,613	12,706,628
- In which: Loan interest expenses	21,594,110	5,868,413
8. Selling expenses
9. Administrative overheads	399,945,111	297,838,507
10. Net operating profit	1,302,965,732	69,982,754
11. Other income	102,690	242,583
12. Other expenses	5,300,189	0
13. Other profit /(loss)	-5,197,499	242,583
14. Total accounting profit before tax	1,297,768,233	70,225,337
15. Current corporate income tax	324,442,058	12,289,434
16. Deferred corporate income tax
18. Profit after tax	973,326,175	57,935,903

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	Average Industry
Current liquidity ratio	2.87	9.34	1.33
Quick liquidity ratio	2.86	8.35	0.83
Inventory circle	42.21	4.39	5.61
Average receive period	104.28	45.10	148.37
Utilizing asset performance	1.49	0.57	1.00
Liability by total asset	34.69	10.58	68.62
Liability by owner equity	53.13	11.83	353.53
Ebit / Total asset (ROA)	19.84	2.21	6.96
Ebit / Owner's equity (ROE)	30.38	2.48	25.50
Ebit / Total sale (NPM)	13.36	3.88	7.11
Gross profit / Total sale (GPM)	17.70	19.28	14.39
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Fair
Liquidity	Medium/High
Payment status	Average
Financial Situation	Average
Development trend	Developing
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Direct payment or through its corresponding bank (L/C, T/T)
Sale Methods	Retailer and Wholesaler
Public opinion	Normal

CREDIT INQUIRY: US$125,000 against DA terms

Slight caution needed!

INTERPRETATION ON THE SCORES

HUONG SON TRADING - CONSTRUCTION COMPANY LIMITED was established in 2006. Currently, the subject is operating under the Business Registration No. 0304724195, issued by Business Registration Office - Planning and Investment Department of Ho Chi Minh City with registration capital of VND 3 billion.

Head office of the subject is located at “No. 75/52 A1 Le Van Luong Str - Quarter 1 – Tan Kieng Ward- District 7 - Ho Chi Minh City - Vietnam”. Total workforce is about 50 employees.

The subject is specializing in construction of other civil engineering projects, wwholesale of other machinery and equipment, wwholesale of computer, computer peripheral equipment and software, real estate activities with own or leased property… The subject imports materials from USA and India. Currently, the subject doesn’t export. The subject pays special attention to invest in technology, modern equipment and modern workshop for warranty repairs. In addition, the subject maintains and develops relationships with potential customers to achieve operational objectives of the company.

The subject is a small company. The management capacity of the subject is good. Future prospect of the subject is fairly bright. According to the financial data, the financial situation of subject is acceptable. Total sale of it is increasing each year. ROA and ROE ratios are fairly good. The subject has capacity to meet financial commitments. No caution needed for small transaction with the subject.

APPENDIXES

INDUSTRY DATA
Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2009		Total employees 2010 (Thous.pers.)	Annual average capital of enterprises 2009 (billion dongs)
	2010	2009
Agriculture, Forestry and Fishing	2.78	1.82	8,749		23,896.3	81,559
Industry and Construction	7.70	5.52	85,115		10,630	2,751,975
Trade and Services	7.52	6.63	154,978		14,522	4,939,069
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			72.2	57.1		62.7
Imports			84.8	69.9		80.7
Trade Balance			-12.6	-12.8		-18

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.65
UK Pound	1	Rs.81.06
Euro	1	Rs.69.51

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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