MIRA INFORM REPORT

Report Date :

03.12.2011

IDENTIFICATION DETAILS

Name :	THANHLOI TRADE - IMPORT EXPORT JOINT STOCK COMPANY
Registered Office :	Po Dua Hamlet, Mai Pha Commune, Lang Son City, Lang Son Province
Country :	Vietnam
Financials (as on) :	31.12.2010
Year of Establishment :	2002
Com. Reg. No.:	4900219641
Legal Form :	Joint Stock Company
Line of Business :	Trading agricultural products, seafood and trading petrol.
No. of Employees :	20

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, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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
Registered English Name	THANHLOI TRADE - IMPORT EXPORT JOINT STOCK COMPANY
Registered Vietnamese Name	CONG TY CP THUONG MAI XUAT NHAP KHAU THANH LOI
Type of Business	Joint stock company
Year Established	2002
Business Registration No.	4900219641
Date of Registration	18 Nov 2011
Place of Registration	Lang Son Department of Planning and Investment
Current registered capital	VND 4,200,000,000
Status	Unlisted
Tax code	4900219641
Total Employees	20
Size	Small
Note:  The exact name of the subject is above

ADDRESSES
Head Office
Address	Po Dua Hamlet, Mai Pha Commune, Lang Son City, Lang Son Province, Vietnam
Telephone	(84-25) 3717154
Fax	(84-25) 3873594

DIRECTORS
1. NAME	Ms. TRIEU THI NA
Position	Director
Date of Birth	18 Jun 1979
ID Number/Passport	081037657
ID Issue Date	18 Oct 2001
ID Issue Place	Lang Son Police Department
Resident	No. 145 Ba Trieu Street, Dong Kinh Ward, Lang Son City, Lang Son Province, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject focuses on trading agricultural products, seafood and trading petrol.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Agricultural products
· Market	India, Pakistan, Hong Kong
EXPORT:
· Market	China

BANKERS
1. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE LANG SON BRANCH
Address	No.51 Le Loi str, Lang Son City, Lang Son Province, Vietnam
Telephone	(84-25) 3876689
2. BANK FOR DEVELOPMENT AND INVESTMENT OF VIETNAM LANG SON BRANCH
Address	No.1 Hoang Van Thu Street,Chi Lang Ward, Lang Son City, Lang Son Province, Vietnam
Telephone	(84-025) 3812063

SHAREHOLDERS
Following is founding shareholders of the subject
1. NAME	Ms. TRIEU THI NA
Position	Director
Date of Birth	18 Jun 1979
ID Number/Passport	081037657
Issued on	18 Oct 2001
Issued Place	Lang Son Police Department
Resident	No. 145 Ba Trieu Street, Dong Kinh Ward, Lang Son City, Lang Son Province, Vietnam
Nationality	Vietnamese
Number of Shares	280
Value of shares	VND 1,400,000,000
Percentage	33.33%
2. NAME	Ms. TRUONG THI TIEN
ID Number/Passport	080880249
Resident	No. 441 Ba Trieu Street, Dong Kinh Ward, Lang Son City, Lang Son Province, Vietnam
Nationality	Vietnamese
Number of Shares	280
Value of shares	VND 1,400,000,000
Percentage	33.33%
3. NAME	Ms. HUA THI NHUNG
ID Number/Passport	080782804
Resident	No. 442 Ba Trieu Street, Dong Kinh Ward, Lang Son City, Lang Son Province, Vietnam
Nationality	Vietnamese
Number of Shares	280
Value of shares	VND 1,400,000,000
Percentage	33.33%

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	2,888,152,224	1,518,746,175
I. Cash and cash equivalents	380,999,500	123,230,769
1. Cash	380,999,500	123,230,769
2. Cash equivalents
II. Short-term investments
1. Short-term investments
2. Provisions for devaluation of short-term investments
III. Accounts receivable	2,327,053,773	1,204,107,713
1. Receivable from customers	1,399,045,822	1,195,846,855
2. Prepayments to suppliers	919,747,093
3. Inter-company receivable
4. Receivable according to the progress of construction
5. Other receivable	8,260,858	8,260,858
6. Provisions for bad debts
IV. Inventories	129,163,715	165,592,075
1. Inventories	129,163,715	165,592,075
2. Provisions for devaluation of inventories
V. Other Current Assets	50,935,236	25,815,618
1. Short-term prepaid expenses		25,815,618
2. VAT to be deducted	29,971,041
3. Taxes and other accounts receivable from the State	20,964,195
4. Other current assets
B. LONG-TERM ASSETS	979,853,307	434,792,142
I. Long term account receivable
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	979,853,307	434,792,142
1. Tangible assets	979,853,307	434,792,142
- Historical costs	1,473,552,415	880,875,142
- Accumulated depreciation	-493,699,108	-446,083,000
2. Financial leasehold assets
- 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
1. Investments in affiliates
2. Investments in business concerns and joint ventures
3. Other long-term investments
4. Provisions for devaluation of long-term investments
V. Other long-term assets
1. Long-term prepaid expenses
2. Deferred income tax assets
3. Other long-term assets
VI. Goodwill
1. Goodwill
TOTAL ASSETS	3,868,005,531	1,953,538,317
LIABILITIES
A- LIABILITIES	2,610,570,206	726,707,648
I. Current liabilities	2,610,570,206	726,707,648
1. Short-term debts and loans	2,600,000,000	300,000,000
2. Payable to suppliers		412,157,844
3. Advances from customers	7,841
4. Taxes and other obligations to the State Budget	10,562,365	14,549,804
5. Payable to employees
6. Accrued expenses
7. Inter-company payable
8. Payable according to the progress of construction contracts
9. Other payable
10. Provisions for short-term accounts payable
II. Long-Term Liabilities
1. Long-term accounts payable to suppliers
2. Long-term inter-company payable
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	1,257,435,325	1,226,830,669
I. OWNER’S EQUITY	1,257,435,325	1,226,830,669
1. Capital	1,105,431,113	1,105,431,113
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		121,399,556
10. Retained earnings	152,004,212
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	3,868,005,531	1,953,538,317

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009
1. Total Sale	19,783,498,021	14,545,432,711
2. Deduction item
3. Net revenue	19,783,498,021	14,545,432,711
4. Costs of goods sold	18,909,516,776	13,594,548,439
5. Gross profit	873,981,245	950,884,272
6. Financial income
7. Financial expenses
- In which: Loan interest expenses
8. Selling expenses
9. Administrative overheads	835,664,682	891,862,685
10. Net operating profit	38,316,563	59,021,587
11. Other income	2,489,645	3,333,089
12. Other expenses
13. Other profit /(loss)	2,489,645	3,333,089
14. Total accounting profit before tax	40,806,208	62,354,676
15. Current corporate income tax	10,201,552	15,588,669
16. Deferred corporate income tax
17. Interest from subsidiaries/related companies
18. Profit after tax	30,604,656	46,766,007

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	Average Industry
Current liquidity ratio	1.11	2.09	1.94
Quick liquidity ratio	1.06	1.86	0.98
Inventory circle	128.31	82.10	9.29
Average receive period	42.93	30.22	54.01
Utilizing asset performance	5.11	7.45	2.21
Liability by total asset	67.49	37.20	58.72
Liability by owner equity	207.61	59.23	256.76
Ebit / Total asset (ROA)	1.06	3.19	7.90
Ebit / Owner's equity (ROE)	3.25	5.08	25.68
Ebit / Total revenue (NPM)	0.21	0.43	4.18
Gross profit / Total revenue (GPM)	4.42	6.54	15.30
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Good
Liquidity	Medium
Payment status	Average
Financial Situation	Average
Development trend	Uptrend
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	TTR
Sale Methods	Retailer and Wholesaler

CREDIT INQUIRY: 125,000 USD Against DA Interms

A little caution

INTERPRETATION ON THE SCORES

The subject is joint stock company. It was established in 2002. Currently, it operates under the business registration No. 4900219641 which is same the tax code, and granted by Lang Son Department of Planning and Investment with registered capital of VND VND 4,200 million.

The subject focuses on trading agricultural products, seafood and trading petrol. Its head office is located at Po Dua Hamlet - Mai Pha Commune - Lang Son City - Lang Son Province. It does not only purchases goods in domestic but also imports from some other countries such as India, Pakistan and Hong Kong. Its products are supplied mainly for customers in the country under the both form of retail and wholesale. In 2100, it has begun exporting to foreign country with main market is China.

Financially, based on the above financial statement, we see that, in 2010, the subject's total sales increased but because costs of goods sold were high, its profit reduced a bit. Liquidity ratios decreased compared with 2009 due to the strong increase in current liabilities. Besides, the subject's debt rate rose compared with 2009 and higher than the average industry due to the growth of the equity lower than the growth of the current liabilities. ROA, ROE and profit ratios were very low. However, the subject's operation factors show a more optimism. They were better by far than the average industry.

The foregoing shows that, the subject's financial situation is considered as average. The subject's self-financing ability and solvency were satisfactory in comparison with other companies in the field. Its liquidity also is acceptable. Property management capacity is fairly good but business affection in two past years was not high yet.

According to Ms. Hoang Thuy Nga_the subject's chief accountant, the subject's business result in 2011 is better than those previous years because it has export activity. She also showed more, in the nine first months of 2011, the subject's turnover reached about VND 60 billion.

In general, the subject is a small scale company. Caution is needed for normal and big transactions with it.

------------ 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.51.35
UK Pound	1	Rs.80.50
Euro	1	Rs.69.14

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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