MIRA INFORM REPORT

Report Date :

19.02.2011

IDENTIFICATION DETAILS

Correct Name :	THIEN THACH CO., LTD

Formerly Known As :	THIEN THACH MANUFACTURING AND TRADING COMPANY

Registered Office :	461 Highway 1A, Binh Hung Hoa Ward - Binh Tan District - Ho Chi Minh City

Country :	Viet Nam

Financials (as on) :	31.12.2010

Date of Incorporation :	16.04.2002

Com. Reg. No.:	4102009396

Legal Form :	Limited liability company

Line of Business :	Producing and Trading Kind of all Granite, Marble, Pave Slab, Flagstone Etc.

RATING & COMMENTS

MIRA’s Rating :

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 – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

Viet Nam

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		THIEN THACH CO., LTD
Vietnamese Name		CONG TY TNHH SAN XUAT THUONG MAI THIEN THACH
Short name		THIEN THACH CO., LTD
Type of Business		Limited liability company
Year Established		2002
Business Registration No.		4102009396
Date of Registration		16 Apr 2002
Place of Registration		Business registration office of Hochiminh city
Current registered capital		50,000,000,000 VND
Tax code		0302704404
Total Employees		150

Notes: THIEN THACH MANUFACTURING AND TRADING COMPANY* is former name of subject. The given name “THIEN THECH MANUFACTURING AND TRADING COMPANY” is not correct*
ADDRESSES
Head Office
Address		461 Highway 1A, Binh Hung Hoa Ward - Binh Tan District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3767 1156 / 3767 1154
Fax		(84-8) 3767 1160

Factory Address
Address		Group 8, Long Binh Str - Bien Hoa City - Dong Nai Province – Vietnam
Telephone		(84-61) 3987079
Fax		(84-61) 3987079

Factory Address
Address		Nhon Hoa Ward, An Nhon Dist - An Nhon District - Binh Dinh Province - Vietnam
Telephone		(84-56) 383 8694

Factory Address
Address		Danh Thanh Hamlet, Dien Loc Ward, Dien Khanh Dist - Khanh Hoa Province - Vietnam

DIRECTORS

1 . NAME		Mr. QUACH CHANH SANG
Position		Director and president
Date of Birth		25 Jan 1977
ID Number/Passport		022996822
Resident		137 Le Thanh Ton Str, Ben Thanh Ward - 1 District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Tel/Mobil phone		++84 903 777779

2 . NAME		Mr. NGUYEN HONG DUNG
Position		Chief Accountant
Nationality		Vietnamese
Tel/Mobil phone		++84 903 080 365

BUSINESS NATURE AND ACTIVITIES

The subject is specializing in producing and trading kind of all: granite, marble, pave slab, flagstone, made of products from natural stone
The subject registered business other items:
- Manufacturing materials for technology producing from natural stone, steel blade with industrial diamond on the top for cutting stone,
- Trading motorbike, car, spare parts for kinds of all traffic, equipment and machine for industry, handicraft, beauty product, metal and machine.
- Repairing house service and interior decoration, civil and industrial construction.
- Exploiting stone and beak (activities following of legal issuance of state)
- Producing materials construction, aluminum alloy slab, glass, plastic package, and gas tank.
- Consignment goods agent, planting industrial crops like: rubber, coffee, pepper,
- Housework for rent, grinding stone, sand for construction.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products		Stone and equipment
· Market		Italy, South Africa, India, Brazil, Finland, Spain and China…

EXPORT:
· Types of products		N/A

BANKERS
VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK
Address		No. 7 Le Thi Hong Gam Street Nguyen Thai Binh Ward - 1 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3821 0055
Fax		(84-8) 3829 6063

SHAREHOLDERS
1 . NAME		Mr. QUACH CHANH SANG
Position		Director and president
Date of Birth		25 Jan 1977
ID Number/Passport		022996822
Issued on		29 Dec 1999
Issued Place		Police station of Hochiminh city
Resident		137 Le Thanh Ton Str, Ben Thanh Ward - 1 District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		30,000,000,000 VND
Percentage		60%

2 . NAME		Ms. PHAM THI BACH YEN
ID Number/Passport		023164404
Resident		443 Vo Van Tan Str, Ward 5 - 3 District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		20,000,000,000 VND
Percentage		40%

FINANCIAL DATA
BALANCE SHEET

Balance sheet date	31/12/2010
Number of weeks	52
ASSETS
A – CURRENT ASSETS	128,607,745,363
I. Cash and cash equivalents	11,352,663,243
1. Cash	8,406,368,980
2. Cash equivalents	2,946,294,263
II. Short-term investments
1. Short-term investments
2. Provisions for devaluation of short-term investments
III. Accounts receivable	16,337,426,871
1. Receivable from customers	14,707,484,228
2. Prepayments to suppliers
3. Inter-company receivable
4. Receivable according to the progress of construction
5. Other receivable	1,629,942,643
6. Provisions for bad debts
IV. Inventories	102,511,987,605
1. Inventories	102,511,987,605
2. Provisions for devaluation of inventories
V. Other Current Assets	-1,594,332,356
1. Short-term prepaid expenses
2. VAT to be deducted	-1,615,084,657
3. Taxes and other accounts receivable from the State	20,752,301
4. Other current assets
B. LONG-TERM ASSETS	156,239,131,571
I. Long term account receivable	14,527,283,026
1. Long term account receivable from customers
2. Working capital in affiliates
3. Long-term inter-company receivable	14,527,283,026
4. Other long-term receivable
5. Provisions for bad debts from customers
II. Fixed assets	143,609,115,597
1. Tangible assets	135,513,594,662
- Historical costs	137,551,818,552
- Accumulated depreciation	-2,038,223,890
2. Financial leasehold assets
- Historical costs
- Accumulated depreciation
3. Intangible assets
- Initial costs
- Accumulated amortization
4. Construction-in-progress	8,095,520,935
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	-1,897,267,052
1. Long-term prepaid expenses	-1,897,267,052
2. Deferred income tax assets
3. Other long-term assets
TOTAL ASSETS	284,846,876,934

LIABILITIES
A- LIABILITIES	219,568,254,934
I. Current liabilities	69,099,943,571
1. Short-term debts and loans	57,916,832,923
2. Payable to suppliers	7,840,685,468
3. Advances from customers
4. Taxes and other obligations to the State Budget	1,876,572,046
5. Payable to employees
6. Accrued expenses	16,951,412
7. Inter-company payable	1,448,901,722
8. Payable according to the progress of construction contracts
9. Other payable
10. Provisions for short-term accounts payable
II. Long-Term Liabilities	150,468,311,363
1. Long-term accounts payable to suppliers
2. Long-term inter-company payable
3. Other long-term payable	4,958,424,913
4. Long-term debts and loans	145,509,886,450
5. Deferred income tax payable
6. Provisions for unemployment allowances
7. Provisions for long-term accounts payable
B- OWNER’S EQUITY	65,278,622,000
I. OWNER’S EQUITY	65,278,622,000
1. Capital	50,000,000,000
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	15,278,622,000
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	284,846,876,934


PROFIT & LOSS STATEMENT

Description	FY2010
1. Total Sale	50,382,705,791
2. Deduction item
3. Net revenue	50,382,705,791
4. Costs of goods sold	17,906,996,582
5. Gross profit	32,475,709,209
6. Financial income	9,639,971
7. Financial expenses	2,841,061,544
- In which: Loan interest expenses	2,841,061,544
8. Selling expenses	4,962,284,850
9. Administrative overheads	8,058,588,981
10. Net operating profit	16,623,413,805
11. Other income	543,684,109
12. Other expenses	1,888,475,914
13. Other profit /(loss)	-1,344,791,805
14. Total accounting profit before tax	15,278,622,000
15. Current corporate income tax
16. Deferred corporate income tax
17. Profit after tax	15,278,622,000


FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2010	Average Industry
Current liquidity ratio	1.86	1.48
Quick liquidity ratio	0.38	0.86
Inventory circle	0.17	6.84
Average receive period	118.36	57.12
Utilizing asset performance	0.18	1.40
Liability by total asset	77.08	53.27
Liability by owner equity	336.36	165.07
Ebit / Total asset (ROA)	6.36	9.44
Ebit / Owner's equity (ROE)	27.76	22.99
Ebit / Total revenue (NPM)	35.96	6.94
Gross profit / Total revenue (GPM)	64.46	16.18
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data


PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality		Fair
Liquidity		Low
Payment status		Average
Financial Situation		Average
Development trend		Even
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		L/C, T/T
Sale Methods		Retailer and Wholesaler
Public opinion		Fair

INTERPRETATION ON THE SCORES

Former name of subject is THIEN THACH MANUFACTURING AND TRADING COMPANY which was established 2002. Now, it it operating with name THIEN THACH CO., LTD. Its head office is at No. 461 Highway 1A, Binh Hung Hoa Ward - Binh Tan District - Ho Chi Minh City – Vietnam.

The subject is specializing in manufacturing and trading in all kinds of stone, such as granite, marble with much different color. These stones have been exploited in Phan Rang, Suoi Lau, and Binh Dinh. The subject has also imported many kinds of stone like Black Galaxy, Brown, New Imperial Red, Baltic brown from India, England, Brazil, Spain, China, South Africa… The subject’s products are manufactured from technology and producing lines of Italy. Its capacity is about 23,000 cubic meters per year. These products are provided mainly in domestic market.

The premises and facilities of the subject are fair. Its operation is busy now. The subject is not only manufacturing for construction but also for handicraft. Owner of subject, Ms. PHAM THI BACH YEN is daughter of Mr. Pham Manh Hung (director of HUNG OCEAN CO.,LTD). This company is one of biggest supplier and manufacturer products made from Granite and Marble in Viet Nam.

The subject has bright potential development in the future. Its financial situation is normal. Its liquidity ratios are low. However, in our opinion, these ratios are normal because companies in this field almost have low liquidity ratios like as subject.

In general, the subject has capacity to meet 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
			2009	2008		2007
Population (Million person)			87	86.1		85.1
Gross Domestic Products (US$ billion)			91	84.9		71.2
GDP Growth (%)			5.32	6.2		8.5
GDP Per Capita (US$)			1,080	1,040		814
Inflation (% Change in Composite CPI)			6.88	24.4		8.3

SERVICE TRADE PERFORMANCE
Billion USD			2009	2008		2007
Exports			56.6	62.9		48.6
Imports			68.8	76.6		58.9
Trade Balance			-12.2	-14.6		-10.3

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.18
UK Pound	1	Rs.73.04
Euro	1	Rs.61.43

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 Company	----

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.

SUBJECT IDENTIFICATION & LEGAL FORM

ADDRESSES

DIRECTORS

BUSINESS NATURE AND ACTIVITIES

IMPORT & EXPORT ACTIVITIES

BANKERS

SHAREHOLDERS

FINANCIAL DATA

PROFIT & LOSS STATEMENT

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

INTERPRETATION ON THE SCORES

APPENDIXES

Unit