MIRA INFORM REPORT

Report Date :

20.12.2011

IDENTIFICATION DETAILS

Name :	RELIABLE PLASTICS (VIETNAM) JOINT STOCK COMPANY
Registered Office :	Lot. 112 Amata Road, Amata Industrial Park, Long Binh Ward, Bien Hoa City, Dong Nai Province
Country :	Vietnam
Financials (as on) :	31.12.2010
Year of Establishment :	2001
Legal Form :	Joint Stock Company
Line of Business :	Producing and trading CPP glue membrane and PE ( multi – layer) glue membrane in rolls, PERAK, VMOPP and VMPET
No. of Employees :	110

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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
Current legal status
English Name	RELIABLE PLASTICS (VIETNAM) JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN NHUA RELIABLE (VIETNAM)
Type of Business	Joint stock company
Year Established	2001
Investment Certificate No	472033000452
Date Of Issuance	29 Apr 2008
Place of Issuance	Dong Nai Industrial Zone Authority
Registered Investment Capital	USD 26,600,000
Chartered capital	USD 10,700,000
Investment Duration	44 years
Status	Unlisted
Tax code	3600507301
Total Employees	110
Size	Medium

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Registered English Name: RELIABLE PLASTIC (VIETNAM) CO., LTD Changed to: RELIABLE PLASTICS (VIETNAM) JOINT STOCK COMPANY	29 Apr 2008
2	Subject has got former Registered Vietnamese Name: CONG TY TNHH NHUA RELIABLE (VIETNAM) Changed to: CONG TY CO PHAN NHUA RELIABLE (VIETNAM)	29 Apr 2008
3	Subject has got former Business Registration No: No. 89/GP-KCN-DN (issued on August 22, 2001) Changed to: 472033000452	29 Apr 2008
4	Subject has got former Registered Investment Capital: 5,000,000 USD Changed to: 26,600,000 USD	29 Apr 2008

ADDRESSES
Head Office
Address	Lot. 112 Amata Road, Amata Industrial Park, Long Binh Ward, Bien Hoa City, Dong Nai Province, Vietnam
Telephone	(84-61) 3936178/ 3936179
Fax	(84-61) 3936180
Email	reliableplastics@gmail.com
Website	www.reliableplastics.com.vn

DIRECTORS
1. NAME	Mr. TSAI JUNG YUAN
Position	General Director
Date of Birth	07 Sep 1964
ID Number/Passport	133858396
ID Issue Date	01 Aug 2002
Resident	No. 39 Wu-Chun, 5 Street Wu-Ku Industrial Zone, Taipei , Taiwan
Nationality	Chinese - Taiwan
2. NAME	Mr. LIN CHAO TZU
Position	Vice Director
Current resident	Lot 112 Amata Industrial Park, Bien Hoa City, Dong Nai Province, Vietnam
Nationality	Chinese - Taiwan

BUSINESS NATURE AND ACTIVITIES

The subject specializes in producing and trading CPP glue membrane and PE ( multi – layer) glue membrane in rolls, PERAK, VMOPP and VMPET

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Materials
· Market	Germany and some Asia Countries
· Mode of payment	T/T
EXPORT:
· Types of products	Products
· Market	Taiwan
· Mode of payment	T/T, L/C

BANKERS
1. TAIPEI FUBON COMMERCIAL BANK CO., LTD
Address	The floor 5th, 194 Golden Buiding No. 473 Dien Bien Phu Street, Binh Thanh District, Ho Chi Minh City, Vietnam
Telephone	(84-8)0933 1090
2. FIRST COMMERCIAL BANK HO CHI MINH BRANCH
Address	76 Le Lai, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 38.238.111
Fax	(84-8) 38.221.747

SHAREHOLDERS
1. NAME	ASIAN KAT CORPORATION
Business Registration	219690
Date of Registration	21 Feb 1997
Place of Registration	British Virgin Islands
Address	Citco Building, Wickhams Cay P.O. Box 662, Road Town District, Tortola , British Virgin Islands
Value of shares	USD 9,216,980
Percentage	86.14%
Representative by	Mr. TSAI JUNG YUAN
Position	General Director
Date of Birth	07 Sep 1964
ID Number/Passport	133858396
Issued on	01 Aug 2002
Resident	No. 39 Wu-Chun, 5 Street Wu-Ku Industrial Zone, Taipei , Taiwan
Nationality	Chinese - Taiwan
Note: Asian Kat Corporation formerly held 100% shareholder of the subject.
2. NAME	ASIA PATHWAY CORP
Business Registration	C207011316
Date of Registration	12 Jun 2007
Place of Registration	Republic of Mauritius
Address	Level 3 Alexander House, 35 Cybercity, Ebene, Mauritius
Value of shares	USD 445,120
Percentage	4.16%
Representative by	Mr. SUN WU
Date of Birth	24 Oct 1936
ID Number/Passport	132425473
Issued on	12 Sep 2001
Resident	6F., No. 56. Yishou St., Wunshan District Taipei City 11659, , , Taiwan
Nationality	Chinese - Taiwan
3. NAME	GREAT TOPTECH LTD
Business Registration	C207011310
Date of Registration	11 Jun 2007
Place of Registration	Republic of Mauritius
Address	Level 3, Alexander House 35 Cybercity, Ebene, Mauritius
Value of shares	USD 513,600
Percentage	4.8%
Representative by	Mr. CHEN HSI-JEN
Date of Birth	19 May 1970
ID Number/Passport	211368668
Issued on	06 Jul 2004
Resident	3F, No. 1, Alley 26 Lane 123, Sec. 3, Ren-ei Rd., Da-an District, Taipei, Vietnam
Nationality	Chinese Taiwan
4. NAME	DIAMOND CLASS LTD
Business Registration	C207011319
Address	Level 3 Alexander House, 35 Cybercity, Ebene, Mauritius
Value of shares	USD 524,300
Percentage	4.9%
Representative by	Ms. HUNG KAO-CHU
Date of Birth	12 May 1938
ID Number/Passport	131527162
Issued on	19 Apr 2001
Resident	No. 740, Singhe Rd., Shalu Township, Taichung Country 43341, Taiwan
Nationality	Chinese Taiwan

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	176,782,734,897	147,638,575,330	122,961,092,324
I. Cash and cash equivalents	43,589,472,758	55,327,990,215	17,491,733,330
1. Cash	20,005,275,493	32,327,990,215	16,991,733,330
2. Cash equivalents	23,584,197,265	23,000,000,000	500,000,000
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	69,238,988,021	53,631,355,180	80,141,209,475
1. Receivable from customers	64,475,505,543	53,284,599,304	34,748,076,202
2. Prepayments to suppliers	5,105,156,284	339,477,461	45,393,133,273
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	8,264,270	7,278,415	0
6. Provisions for bad debts	-349,938,076	0	0
IV. Inventories	60,326,476,962	38,490,513,171	24,811,945,386
1. Inventories	60,326,476,962	38,490,513,171	26,186,801,883
2. Provisions for devaluation of inventories	0	0	-1,374,856,497
V. Other Current Assets	3,627,797,156	188,716,764	516,204,133
1. Short-term prepaid expenses	225,332,495	152,396,329	16,653,000
2. VAT to be deducted	3,378,515,752	0	0
3. Taxes and other accounts receivable from the State	3,948,909	16,320,435	499,551,133
4. Other current assets	20,000,000	20,000,000
B. LONG-TERM ASSETS	216,004,875,273	224,668,746,812	121,762,434,742
I. Long term accounts receivable	0	0	0
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	0	0	0
5. Provisions for bad debts from customers	0	0	0
II. Fixed assets	215,322,377,687	224,656,104,794	121,706,133,037
1. Tangible assets	209,043,927,498	216,939,447,390	114,654,421,024
- Historical costs	299,033,782,843	280,858,614,640	157,581,595,644
- Accumulated depreciation	-89,989,855,345	-63,919,167,250	-42,927,174,620
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	6,219,982,869	6,418,006,204	6,626,802,922
- Initial costs	7,553,675,020	7,553,675,020	7,553,675,020
- Accumulated amortization	-1,333,692,151	-1,135,668,816	-926,872,098
4. Construction-in-progress	58,467,320	1,298,651,200	424,909,091
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	682,497,586	12,642,018	56,301,705
1. Long-term prepaid expenses	682,497,586	12,642,018	56,301,705
2. Deferred income tax assets	0	0	0
3. Other long-term assets	0	0	0
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	392,787,610,170	372,307,322,142	244,723,527,066
LIABILITIES
A- LIABILITIES	58,304,652,054	94,156,920,420	15,579,230,871
I. Current liabilities	58,254,130,735	93,606,399,101	15,025,544,382
1. Short-term debts and loans	19,619,234,818	48,016,531,163	9,525,251,436
2. Payable to suppliers	34,076,388,337	42,772,925,580	4,244,784,084
3. Advances from customers	1,880,002,008	43,512,662	28,027,206
4. Taxes and other obligations to the State Budget	1,908,014,614	2,061,400,844	488,560,166
5. Payable to employees	724,825,387	659,346,843	568,334,378
6. Accrued expenses	40,000,000	30,000,000	148,800,187
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	5,665,571	22,682,009	21,786,925
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	50,521,319	550,521,319	553,686,489
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	8,507,817	508,507,817	508,507,817
4. Long-term debts and loans	0	0	0
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	42,013,502	42,013,502	45,178,672
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	334,482,958,116	278,150,401,722	229,144,296,195
I. OWNER’S EQUITY	334,482,958,116	278,150,401,722	229,144,296,195
1. Capital	172,419,800,000	172,419,800,000	172,419,800,000
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	-2,198,503,465	-2,198,503,465	-2,198,503,465
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	164,261,661,581	107,929,105,187	58,922,999,660
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	392,787,610,170	372,307,322,142	244,723,527,066

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009
1. Total Sales	426,407,082,122	292,280,738,238
2. Deduction item	5,015,811,674	1,974,700,881
3. Net revenue	421,391,270,448	290,306,037,357
4. Costs of goods sold	342,208,266,626	222,031,278,720
5. Gross profit	79,183,003,822	68,274,758,637
6. Financial income	2,483,292,590	1,715,472,403
7. Financial expenses	12,273,400,572	11,895,280,071
- In which: Loan interest expenses	516,452,550	1,037,714,666
8. Selling expenses	3,406,732,105	2,212,675,153
9. Administrative overheads	5,298,583,922	3,698,927,937
10. Net operating profit	60,687,579,813	52,183,347,879
11. Other income	110,115,818	97,913,500
12. Other expenses	29,592,300	34,777,532
13. Other profit /(loss)	80,523,518	63,135,968
14. Total accounting profit before tax	60,768,103,331	52,246,483,847
15. Current corporate income tax	4,435,546,937	3,240,378,320
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	56,332,556,394	49,006,105,527

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	3.03	1.58	8.18	1.49
Quick liquidity ratio	2.00	1.17	6.53	1.00
Inventory circle	6.93	5.77	-	7.00
Average receive period	59.97	67.43	-	86.82
Utilizing asset performance	1.07	0.78	-	1.21
Liability by total assets	14.84	25.29	6.37	54.91
Liability by owner's equity	17.43	33.85	6.80	141.20
Ebit / Total assets (ROA)	15.60	14.31	-	9.38
Ebit / Owner's equity (ROE)	18.32	19.16	-	19.96
Ebit / Total revenue (NPM)	14.37	18.23	-	7.73
Gross profit / Total revenue (GPM)	18.57	23.36	-	16.38
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CASH FLOW STATEMENT
(Indirect method)
Items		FY2010		FY2009
I. Cash flows from operating activities
1. Profit before tax	60,768,103,331		52,246,483,847
2. Adjustments
- Depreciation and amortization	26,268,711,430		21,200,789,348
- Provisions	349,938,076		-1,374,856,497
- Unrealized foreign exchange difference	-261,177,857		192,684,608
- Gain/loss from investing activities	-833,991,186		-1,283,426,689
- Interest expense	516,452,550		1,037,714,666
3. Operating profit before movements in working capital	86,808,036,344		72,019,389,283
- (Increase)/Decrease in receivables	-19,651,155,783		26,993,084,993
- (Increase)/Decrease in inventories	-21,835,963,791		-12,303,711,288
- Increase/(Decrease) in accounts payable	-24,359,461,685		1,730,912,343
- (Increase)/Decrease in prepaid expenses	742,791,734		-92,083,642
- Interest paid	-516,452,550		-1,037,714,666
- Corporate income tax paid	-3,623,257,273		-1,645,102,237
- Other cash inflows	0		0
- Other cash outflows	0		-20,000,000
Net cash from (used in) operating activities	16,078,953,528		82,182,950,100
II. Cash flows from investing activities
1. Acquisition of fixed assets and other long - term assets	-842,784,323		-83,928,715,023
2. Proceeds from fixed assets and long - term assets disposal	98,181,818		0
3. Cash outflow for lending, buying debt instruments of other companies	0		0
4. Cash recovered from lending, selling debt instruments of other companies	0		0
5. Investment in other entities	0		0
6. Cash recovered from investments in other entities	0		0
7. Interest income, dividend and profit paid	735,809,368		1,283,426,689
Net cash from (used in) investing activities	-8,793,137		-82,645,288,334
III. Cash flows from financing activities
1. Proceeds from issuing stocks, receiving capital from owners	0		0
2. Capital withdrawal, buying back issued stocks	0		0
3. Proceeds from borrowings	70,576,752,232		145,765,248,034
4. Repayment of borrowings	-98,376,430,080		-107,466,652,915
5. Repayment of obligations under finance leased	0		0
6. Dividends paid	0		0
Net cash from (used in) financing activities	-27,808,677,848		38,298,595,119
Net increase/(decrease) in cash and cash equivalents	-11,738,517,457		37,836,256,885
Cash and cash equivalents at beginning of year	55,327,990,215		17,491,733,330
Effect from changing foreign exchange rate	0		0
Cash and cash equivalents at end of year	43,589,472,758		55,327,990,215

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

INTERPRETATION ON THE SCORES

RELIABLE PLASTICS (VIETNAM) JOINT STOCK COMPANY is a 100% foreign invested capital which was established in 2001. The shareholder of the subject is from Taiwan and invested to the subject company through offshore companies in Mauritius. Formerly, ASIAN KAT CORPORATION was the only shareholder of the subject, and then it added three other shareholders.

The head office and factory of the subject is located at Lot. 112, Amata Road, Amata Industrial Park, Long Binh Ward - Bien Hoa City - Dong Nai Province where concentrates on many foreign invested companies and a lot of manufacturing factories.

The subject is specializing in producing and trading free extension polypropylene membrane (cop glue membrane) and PE (multi- layer) glue membrane in rolls, its products are applied for house hold paper packing, stationary portfolio, multi – layer membrane for food packing, anti – leaking layer for paper diapers, glue membrane used for automatic packing of electric and hardware product.
According to the financial statement, the sale of the subject has increased 46 percent from VND 292 billion in 2009 to VND 426 billion in 2010. Although the subject has high rate of sale increase, the profit of the subject increased only 15 in 2010 due to the increasing in selling expense (54%) and administrative expense (43%). The financial ratios of the subject are impression with very good ratios in liquidity, leverage and profitability. The operational ratios, especially average receive period; with nearly 60 days seem quite long but it still better than average ratio.

In general, the subject is a medium size company in the industry. The operation of the subject is table and development with good financial statement and business line. The subject has capacity to meet the commitment and no caution needed for the business transactions.

------------ 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.52.96
UK Pound	1	Rs.82.04
Euro	1	Rs.68.91

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.