MIRA INFORM REPORT

Report Date :

16.12.2011

IDENTIFICATION DETAILS

Name :	LAM THIEN PHUC COMPANY LIMITED
Registered Office :	47/5 Quoc Hung Street- Thao Dien ward, 2^nd District, Ho Chi Minh City
Country :	Vietnam
Financials (as on) :	31.12.2010
Date of Incorporation :	12.04.2010
Com. Reg. No.:	0304146378
Legal Form :	Limited Liability Company
Line of Business :	trading wood and raw materials for manufacturing products makes from wood
No. of Employees :	8 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 :	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 – 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

Current legal status
English Name	LAM THIEN PHUC COMPANY LIMITED
Vietnamese Name	CONG TY TNHH LAM THIEN PHUC
Type of Business	Limited liability company
Year Established	2005
Business Registration No.	0304146378
Date of Registration	12 Apr 2010
Place of Registration	Business Registration Office- Planning and Investment Department of Ho Chi Minh City
Current registered capital	VND 1,800,000,000
Tax code	0304146378
Total Employees	8

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 4102035560 Changed to: 0304146378	12 Apr 2010

company ADDRESSES

Head Office
Address	47/5 Quoc Hung Street- Thao Dien ward, 2^nd District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 2210 4468
Fax	(84-8) 54331603
Notes: the given phone number (84-8-210446008) is not correct. The correct one is above.

DIRECTORS

1. NAME	Mr. LE DUC THANG
Position	Director
Date of Birth	07 Oct 1955
ID Number/Passport	020599974
ID Issue Date	22 Mar 2004
ID Issue Place	Police station of Ho Chi Minh City
Current resident	110A Road No.45 Tan Quy Ward, 7^th District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
2. NAME	Ms. LAM THI NGOC THU
Position	Deputy Director
ID Number/Passport	021580359
Current resident	110 Dien Bien Phu Street Dakao Ward, 1^st District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
3. NAME	Ms. TRINH DIEM TRANG
Position	Accountant
Current resident	Ho Chi Minh City, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

Specializes in trading wood and raw materials for manufacturing products makes from wood

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Products
· Market	USA, Some countries in EU
EXPORT:
Note: N/A

BANKERS

ASIA COMMERCIAL BANK KHANH HOI BRANCH
Address	No.130 Khanh Hoi, No.6 ward, 4^th District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 5401 1224
Fax	(84-8) 5401 1225

SHAREHOLDERS

1. NAME	Mr. LE DUC THANG
Position	Director
Date of Birth	07 Oct 1955
ID Number/Passport	020599974
Issued on	22 Mar 2004
Issued Place	Police station of HCMC
Current Resident	110A Road No.45 Tan Quy Ward, 7^th District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Value of shares	VND 900,000,000
Percentage	50%
2. NAME	Ms. LAM THI NGOC THU
Position	Deputy Director
ID Number/Passport	021580359
Current Resident	110 Dien Bien Phu Street Dakao Ward, 1^st District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Value of shares	VND 900,000,000
Percentage	50%

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	3,068,626,529	4,950,242,880
I. Cash and cash equivalents	1,195,154,374	754,769,202
1. Cash	268,666,255	54,331,043
2. Cash equivalents	926,488,119	700,438,159
II. Short-term investments
1. Short-term investments
2. Provisions for devaluation of short-term investments
III. Accounts receivable	6,620,666,872	670,035,875
1. Receivable from customers	5,891,742,596
2. Prepayments to suppliers	728,800,062	670,035,875
3. Inter-company receivable
4. Receivable according to the progress of construction
5. Other receivable	124,214
6. Provisions for bad debts
IV. Inventories	6,737,323,551	2,544,111,048
1. Inventories	6,737,323,551	2,544,111,048
2. Provisions for devaluation of inventories
V. Other Current Assets	-11,484,518,268	981,326,755
1. Short-term prepaid expenses
2. VAT to be deducted	315,481,732	64,547,957
3. Taxes and other accounts receivable from the State
4. Other current assets	-11,800,000,000	916,778,798
B. LONG-TERM ASSETS	745,568,302	912,594,258
I. Long term accounts 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	745,568,302	912,594,258
1. Tangible assets	745,568,302	912,594,258
- Historical costs	1,002,155,736	1,002,155,736
- Accumulated depreciation	-256,587,434	-89,561,478
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
TOTAL ASSETS	3,814,194,831	5,862,837,138
LIABILITIES
A- LIABILITIES	592,636,196	4,225,991,167
I. Current liabilities	592,636,196	4,225,991,167
1. Short-term debts and loans		883,990,332
2. Payable to suppliers
3. Advances from customers		618,310,012
4. Taxes and other obligations to the State Budget	572,079,577	663,158,037
5. Payable to employees
6. Accrued expenses
7. Inter-company payable
8. Payable according to the progress of construction contracts
9. Other payable	20,556,619	2,060,532,786
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	3,221,558,635	1,636,845,971
I. OWNER’S EQUITY	3,221,558,635	1,636,845,971
1. Capital	1,800,000,000	501,609,100
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	1,421,558,635	1,135,236,871
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	3,814,194,831	5,862,837,138

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009
1. Total Sales	54,963,619,716	51,701,776,323
2. Deduction item	0	0
3. Net sale	54,963,619,716	51,701,776,323
4. Costs of goods sold	50,474,586,496	46,413,929,250
5. Gross profit	4,489,033,220	5,287,847,073
6. Financial income	21,451,330	20,501,173
7. Financial expenses	1,432,885,217	2,134,432,927
- In which: Loan interest expenses		167,424,927
8. Selling expenses	2,461,622,798	2,298,284,500
9. Administrative overheads	584,064,279	575,869,196
10. Net operating profit	31,912,256	299,761,623
11. Other income	389,850,070	129,735,432
12. Other expenses
13. Other profit /(loss)	389,850,070	129,735,432
14. Total accounting profit before tax	421,762,326	429,497,055
15. Current corporate income tax	105,440,582	107,374,264
16. Deferred corporate income tax
18. Profit after tax	316,321,744	322,122,791

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	Average Industry
Current liquidity ratio	5.18	1.17	1.94
Quick liquidity ratio	-6.19	0.57	0.98
Inventory circle	10.88	18.24	9.29
Average receive period	43.97	4.73	54.01
Utilizing asset performance	14.41	8.82	2.21
Liability by total assets	15.54	72.08	58.72
Liability by owner's equity	18.40	258.18	256.76
Ebit / Total assets (ROA)	11.06	10.18	7.90
Ebit / Owner's equity (ROE)	13.09	36.47	25.68
Ebit / Total sale (NPM)	0.77	1.15	4.18
Gross profit / Total sale (GPM)	8.17	10.23	15.30
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Fair
Liquidity	Medium
Payment status	Average
Financial Situation	Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Cash and through the bank
Sale Methods	Wholesaler
Public opinion	Normal

INTERPRETATION ON THE SCORES

The subject is supplying of hard wood (as tables, chairs, cabinets, beds, interior and exterior). The subject’s product is almost imported from USA and some countries in EU to wholesale in domestic.

According to financial data in years 2009 & 2010 of the subject, total asset was low, short-term assets account rather high proportion according to total asset, the subject had too much inventories. Beside that, receivable from customers was also too high. Selling expenses and Financial expenses accounted high in total expenses. Although total sales and profit after tax were stable in 2009 and 2010, profit after tax was low.

The market of the subject in domestic is normal, the position industry is fair. Currently, subject is operating normally with 8 employees.

In general, the subject is operating with small scale. The subject is graded at B. It can meet small transactions in this time.

APPENDIX

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.54.24
UK Pound	1	Rs.83.77
Euro	1	Rs.70.46

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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