MIRA INFORM REPORT

Report Date :

31.01.2011

IDENTIFICATION DETAILS

Name :	THONG NHAT RUBBER COMPANY LIMITED

Registered Office :	No. 64/6 Luy Ban Bich Street – Tan Thoi Hoa Ward – Tan Phu District – Ho Chi Minh City

Country :	Vietnam

Financials (as on) :	31.12.2008

Year of Establishment :	1978

Com. Reg. No.:	0300770150

Legal Form :	One Member Liability Limited Company

Line of Business :	manufacturing and trading in rubber products

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 :	Good
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)

Vietnam

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		THONG NHAT RUBBER COMPANY LIMITED
Vietnamese Name		CONG TY TNHH MOT THANH VIEN CAO SU THONG NHAT
Trade name		RUTHIMEX
Type of Business		One member liability limited company
Year Established		1978
Establishment Decision		128/QD-UB
Date of Issuance		10 Nov 1992
Place of Issuance		Referee Committee of Hochiminh city
Business Registration No.		0300770150
Date of Registration		27 Sep 2010
Place of Registration		Business Registration Office- Planning and Investment Department of Ho Chi Minh City
Current registered capital		70,239,000,000 VND
Tax code		0300770151
Total Employees		2,561
Size		Large

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Registered Vietnamese Name: CONG TY CAO SU THONG NHAT Changed to: CONG TY TNHH MOT THANH VIEN CAO SU THONG NHAT	27 Sep 2010
2	Subject has got former Type of Business: State Owned Company Changed to: One Member Liability Limited Company	27 Sep 2010
3	Subject has got former Business Registration No: No. 4106000044 which was issued on December 6^th, 2006 Changed to: No. 0300770151	27 Sep 2010
4	Subject has got former Registered English Name: THONG NHAT RUBEBER COMPANY Changed to: THONG NHAT RUBBER COMPANY LIMITED	27 Sep 2010
5	Subject has got former Registered capital: 29,887,512,473 VND Changed to: 70,239,000,000 VND	27 Sep 2010
6	Subject has got former Trade Name: THONG NHAT RUBBER CO Changed to: RUTHIMEX	27 Sep 2010

company address

Transaction Office
Address		No. 64/6 Luy Ban Bich Street – Tan Thoi Hoa Ward – Tan Phu District – Ho Chi Minh City – Vietnam
Telephone		(84-8) 3961 2568 – 3961 0020 – 3961 1117
Fax		(84-8) 3961 2234 – 3961 6620
Email		ruthimex@hcm.fpt.vn
Website		www.ruthimex.com.vn

Registration Head Office
Address		No. 322 Ben Chuong Duong Street – Cau Kho Ward – District 1 – Ho Chi Minh City – Vietnam
Telephone		(84-8) 3836 8601

Factory Address : The subject has been also planned to moved its head office to this address.
Address		Group 3- 15^th Provincial Street- Hamlet 12- Tan Thanh Dong Ward- Cu Chi district- Ho Chi Minh City – Vietnam
Telephone		(84-8) 37952875/ 37953824 / 37952975
Fax		(84-8) 37952875

Factory Address
Address		Hamlet 12- Tan Thanh Dong Ward- Cu Chi district- Ho Chi Minh City – Vietnam

DIRECTORS

1 . NAME		Mr. HUYNH TAN TU
Position		Director
Year of birth		1967
ID Number/Passport		023969976
Resident		83/3 Luy Ban Bich St, Hoa Thanh Ward – Tan Phu District – Ho Chi Minh City – Vietnam
Nationality		Vietnamese
Qualification		Engineer
Cell phone		+84 913 805 278

2 . NAME		Mr. HUYNH HUU PHUOC
Position		Deputy Director
Resident		83/3 Luy Ban Bich St, Hoa Thanh Ward – Tan Phu District – Ho Chi Minh City – Vietnam
Nationality		Vietnamese

3 . NAME		Ms. TRUONG THU TAM
Position		Deputy Director
Resident		83/3 Luy Ban Bich St, Hoa Thanh Ward – Tan Phu District – Ho Chi Minh City – Vietnam
Nationality		Vietnamese

4 . NAME		Mr. NGUYEN DUC HONG
Position		Deputy Director
Resident		Ho Chi Minh City – Vietnam
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is manufacturing and trading in rubber products used in water supply and sewage, electricity, motorcycle and machinery. Rubber out-sole and industrial pigment

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		material chemical
· Market		China, Germany, Spain

EXPORT:
· Types of products		products
· Market		New Zealand, Great Britain, Japan, USA, Australia, Malaysia, Thailand, Netherlands, France

BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM HO CHI MINH BRANCH
Address		No. 29 Ben Chuong Duong – 1^st District – Ho Chi Minh City – Vietnam
Telephone		(84-8) 3829 7245 – 3823 0310 – 3823 0311
Fax		(84-8) 3829 7228
SWIFT Code		BFTVVBVX 007

2. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK – PASTER BRANCH
Address		24-26 Pasteur Str, Ben Nghe Ward – 1^st District – Ho Chi Minh City – Vietnam
Telephone		(84-8) 38212155
Fax		(84-8) 38212153
SWIFT Code		VTCBVNVX

3. BANK FOR INVESTMENT AND DEVELOPMENT IN VIETNAM
Address		109 Ong Ich Khiem Str, Ward 10 – 11^th District – Ho Chi Minh City – Vietnam
Telephone		(84-8) 39635670
Fax		(84-8) 39635671
SWIFT Code		BIDVVNVX

SHAREHOLDERS

NAME		SAI GON INDUSTRY CORPORATION
Address		No. 11/121 Le Duc Tho St, Ward 17 – Go Vap District – Ho Chi Minh City – Vietnam
Tel		(84-8) 3894 1072
Fax		(84-8) 3894 0947
Email		cns@cns.com.vn
Percentage		100%

FINANCIAL DATA

BALANCE SHEET
I: One VND
Balance sheet date	31/12/2008	31/12/2007
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	79,246,196,113	66,436,451,531
I. Cash and cash equivalents	8,896,107,931	9,621,115,061
1. Cash	8,896,107,931	9,621,115,061
2. Cash equivalents
II. Short-term investments	0	0
1. Short-term investments
2. Provisions for devaluation of short-term investments
III. Accounts receivable	10,526,570,615	23,702,509,042
1. Receivable from customers	10,424,489,255	22,828,249,122
2. Prepayments to suppliers	35,498,465	780,417,146
3. Inter-company receivable
4. Receivable according to the progress of construction
5. Other receivable	66,582,895	156,260,691
6. Provisions for bad debts	0	-62,417,917
IV. Inventories	54,744,547,360	29,742,834,404
1. Inventories	57,883,714,653	29,952,728,405
2. Provisions for devaluation of inventories	-3,139,167,293	-209,894,001
V. Other Current Assets	5,078,970,207	3,369,993,024
1. Short-term prepaid expenses
2. VAT to be deducted	5,049,970,207	2,594,733,024
3. Taxes and other accounts receivable from the State
4. Other current assets	29,000,000	775,260,000
B. LONG-TERM ASSETS	62,031,832,090	44,980,930,577
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	56,786,313,134	39,866,542,136
1. Tangible assets	51,380,022,872	35,130,958,369
- Historical costs	117,331,782,466	94,193,566,030
- Accumulated depreciation	65,951,759,594	59,062,607,661
2. Financial leasehold assets	0	0
- Historical costs
- Accumulated depreciation
3. Intangible assets	0	0
- Initial costs
- Accumulated amortization
4. Construction-in-progress	5,406,290,262	4,735,583,767
III. Investment property	0	0
Historical costs
Accumulated depreciation
IV. Long-term investments	5,000,000,000	5,010,000,000
1. Investments in affiliates
2. Investments in business concerns and joint ventures
3. Other long-term investments	5,000,000,000	5,010,000,000
4. Provisions for devaluation of long-term investments
V. Other long-term assets	245,518,956	104,388,441
1. Long-term prepaid expenses	245,518,956	104,388,441
2. Deferred income tax assets
3. Other long-term assets
TOTAL ASSETS	141,278,028,203	111,417,382,108

LIABILITIES
A- LIABILITIES	74,616,515,414	65,945,228,928
I. Current liabilities	73,850,856,337	65,342,983,134
1. Short-term debts and loans	31,501,423,722	23,079,655,177
2. Payable to suppliers	5,867,926,068	5,989,022,628
3. Advances from customers	12,588,646,722	11,524,224,111
4. Taxes and other obligations to the State Budget	558,151,491	1,136,109,399
5. Payable to employees	16,278,716,494	17,730,514,474
6. Accrued expenses	0	300,000,000
7. Inter-company payable
8. Payable according to the progress of construction contracts
9. Other payable	7,055,991,840	5,583,457,345
10. Provisions for short-term accounts payable
II. Long-Term Liabilities	765,659,077	602,245,794
1. Long-term accounts payable to suppliers
2. Long-term inter-company payable
3. Other long-term payable	15,462,000	20,462,000
4. Long-term debts and loans	119,835,799	119,835,799
5. Deferred income tax payable
6. Provisions for unemployment allowances	630,361,278	461,947,995
7. Provisions for long-term accounts payable
B- OWNER’S EQUITY	66,661,512,789	45,472,153,180
I. OWNER’S EQUITY	66,063,871,889	43,348,916,136
1. Capital	29,656,672,977	29,656,672,977
2. Share premiums
3. Other sources of capital
4. Treasury stocks
5. Differences on asset revaluation
6. Foreign exchange differences
7. Business promotion fund	2,043,517,543	2,043,517,543
8. Financial reserved fund	378,722,751	378,722,751
9. Other funds
10. Retained earnings	5,121,873,861	3,406,918,108
11. Construction investment fund	28,863,084,757	7,863,084,757
II. Other sources and funds	597,640,900	2,123,237,044
1. Bonus and welfare funds	597,640,900	2,055,120,044
2. Sources of expenditure	0	68,117,000
3. Fund to form fixed assets
MINORITY’S INTEREST
TOTAL LIABILITIES AND OWNER’S EQUITY	141,278,028,203	111,417,382,108

PROFIT & LOSS STATEMENT

Description	FY2008	FY2007
1. Total Sale	255,224,348,378	172,369,002,289
2. Deduction item		0
3. Net Sale	255,224,348,378	172,369,002,289
4. Costs of goods sold	238,958,920,518	161,449,334,009
5. Gross profit	16,265,427,860	10,919,668,280
6. Financial income	787,663,980	1,950,061,351
7. Financial expenses	5,347,616,882	1,838,018,621
- In which: Loan interest expenses
8. Selling expenses	4,467,642,427	2,851,009,820
9. Administrative overheads	6,980,009,969	4,418,150,558
10. Net operating profit	257,822,562	3,762,550,632
11. Other income	2,409,760,382	543,311,257
12. Other expenses	254,473,017	104,500,785
13. Other profit /(loss)	2,155,287,365	438,810,472
14. Total accounting profit before tax	2,413,109,927	4,201,361,104
15. Current corporate income tax	675,670,780	1,216,189,927
16. Deferred corporate income tax
17. Profit after tax	1,737,439,147	2,985,171,177

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2008	FY2007	Average Industry
Current liquidity ratio	1.07	1.02	1.37
Quick liquidity ratio	0.33	0.56	0.80
Inventory circle	5.66	5.43	5.87
Average receive period	15.05	50.19	89.81
Utilizing asset performance	1.81	1.55	1.38
Liability by total asset	52.82	59.19	60.67
Liability by owner equity	111.93	145.02	290.60
Ebit / Total asset (ROA)	1.71	3.77	11.91
Ebit / Owner’s equity (ROE)	3.62	9.24	19.52
Ebit / Total Sale (NPM)	0.95	2.44	3.29
Gross profit / Total Sale (GPM)	6.37	6.34	15.54
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Fair
Liquidity		Medium
Payment status		Above Average
Financial Situation		Above Average
Development trend		Uptrend
Litigation data		No
Bankruptcy		No
Payment Methods		Direct payment or through its corresponding bank foreign remittance by letter of credit (L/C), T/T
Sale Methods		Other
Public opinion		Good

CREDIT INQUIRY: 125,000 US$, D/A terms

Reliable

INTERPRETATION ON THE SCORES

The original form of subject was a factory since 1978 to 1992. On November 10^th 1992, it was authorized an establishment decision No.128/GP-UB and the Business Registration No.102062 (November 14^th 1992), officially to be called “Thong Nhat Rubber Company”. Then, the subject changed the its business registration into No.4106000044 in 2006. In September 27th 2010, the subject changed type of business from State Owned Company to One member Liability Limited Company with name is “CONG TY TNHH MOT THANH VIEN CAO SU THONG NHAT”. Currently, the subject merged registration number into tax code no 0300770151 with total registered capital is 70,239,000,000 VND.

The subject is specializing in producing the technical rubber spare parts used in industry such as : water supply, drainage, power transmission, automotive, construction, mineral exploitation, etc... for the local market and export.

The subject is the first rubber product manufacturer in Vietnam to be granted the Certification of the Quality Management System ISO 9002:2004 (in March, 1999) and then ISO 9001:200 (in March, 2002) and then ISO/TS:16949 (in December, 2007). Current, the subject has good relationship with some customers such as : Suzuki Company, Sanyo, Sony, Water Supply Company, Isuzu... Not only develop the domestic market, the subject also exports products to foreign markets such as Malaysia, Thailand, USA, France, Netherlands, Australia , New Zealand, Japan, England,...

According to financial statement, Sale of the subject is fairly good. Although in 2008, Vietnam was influenced by economic recession but business situation of the subjects remained stable. Sale in 2008 increased nearly 50% over 2007. In present, the subject is operating effectively.

Information from Vietnam Rubber Association, 2010 is the year of strong growth for Vietnam rubber industry. Vietnam Rubber exported over 45 countries EU, USA, Japan, China… China, Malaysia and Taiwan are still main export market of Vietnamese rubber exporters. Estimation of International Rubber Study Group ( IRSG), demand of natural rubber is continuous increasing from 2010 to 2019.

Premises and facilities of the subject are standard. The subject is on progress of moving its factories to Cu Chi District- Ho Chi Minh city. Recently, its two factories in Cu Chi District have been started manufacturing. As planned, the subject’s head office will be moved to Cu Chi District too.

Generally, the subject’s premises and facilities are good with five factories and 2,561 employees. The market share of the subject is wide. The subject is one of the strong companies in this field. Management capability is fairly good. The subject has capacity to meet all 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.45.74
UK Pound	1	Rs.72.73
Euro	1	Rs.62.73

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

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.