MIRA INFORM REPORT

Report Date :

03.06.2011

IDENTIFICATION DETAILS

Name :	KHAI VINH PRIVATE ENTERPRISE
Registered Office :	860/80/52 Xo Viet Nghe Tinh Street - Ward 25 - Binh Thanh District - Ho Chi Minh City
Country :	Vietnam
Financials (as on) :	31.12.2010
Date of Incorporation :	22.02.2000
Com. Reg. No.:	0301929532
Legal Form :	Sole Proprietorship
Line of Business :	Specializing in trading equipment, machine for agricultural sector such as: herb mower, harvester machine, spraying machine.

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 – March 31^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
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	KHAI VINH PRIVATE ENTERPRISE
Vietnamese Name	DOANH NGHIEP TU NHAN KHAI VINH
Trade name	KHAI VINH PTE
Type of Business	Sole Proprietorship
Year Established	2000
Current Business Registration	0301929532
Date of Registration	20 Dec 2009
Place of Registration	Business Registration Department of Hochiminh City
Former Business Registration	No. 4101000184
Date of Registration	22 Feb 2000
Place of Registration	Business Registration Department of Hochiminh City
Current registered capital	7,000,000,000 VND
Former registered capital	3,500,000,000 VND
Tax code	0301929532
Total Employees	7

ADDRESSES

Head Office
Address	860/80/52 Xo Viet Nghe Tinh Street - Ward 25 - Binh Thanh District - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3899 5596
Fax	(84-8) 6294 8829
Email	wingvinh@hcm.vnn.vn

DIRECTORS

1. NAME	Mr. NGUYEN VINH VINH
Position	Director
Date of Birth	20 Jan 1965
ID Number/Passport	240273113
ID Issue Date	02 Jun 1983
ID Issue Place	Police Station of Dak Lak Province
Resident	Gia Nghia Quang Thanh - Dak Nong - Dak Lak Province - Vietnam
Nationality	Vietnamese
Qualification	Management
2. NAME	Ms. TRUONG THI TINH
Position	Chief Accountant
Nationality	Vietnamese
Qualification	Bachelor

BUSINESS NATURE AND ACTIVITIES

The subject is specializing in trading equipment, machine for agricultural sector such as: herb mower, harvester machine, spraying machine.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Goods
· Market	Taiwan, China, Canada, Australia, Germany & USA.
EXPORT: N/A

BANKERS

SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK
Address	No. 266-268 Nam Ky Khoi Nghia Street - Ward 8 - 3 District - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3932 0420 /3932 0643
Fax	(84-8) 3932 2488

SHAREHOLDERS

The subject is a private enterprise. Following is its owner.
NAME	Mr. NGUYEN VINH VINH
Position	Director
Date of Birth	20 Jan 1965
ID Number/Passport	240273113
Issued on	02 Jun 1983
Issued Place	Police Station of Dak Lak Province
Resident	Gia Nghia Quang Thanh - Dak Nong - Dak Lak Province - Vietnam
Nationality	Vietnamese
Value of shares	7,000,000,000 VND
Percentage	100%

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	19,302,317,618	15,386,791,351	11,844,000,000
I. Cash and cash equivalents	295,410,414	780,949,870	624,000,000
1. Cash	295,410,414	780,949,870	624,000,000
2. Cash equivalents	0	0	0
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	2,832,379,429	1,474,824,295	1,770,000,000
1. Receivable from customers	879,653,800	832,637,508	0
2. Prepayments to suppliers	1,952,725,629	642,186,787	1,770,000,000
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	0	0	0
6. Provisions for bad debts	0	0	0
IV. Inventories	15,551,863,566	12,621,145,360	9,124,000,000
1. Inventories	15,551,863,566	12,621,145,360	9,124,000,000
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	622,664,209	509,871,826	326,000,000
1. Short-term prepaid expenses	588,660,265	0	0
2. VAT to be deducted	0	416,882,514	326,000,000
3. Taxes and other accounts receivable from the State	0	0	0
4. Other current assets	34,003,944	92,989,312	0
B. LONG-TERM ASSETS	5,800,263	22,943,727	30,000,000
I. Long term account 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	5,800,263	22,943,727	30,000,000
1. Tangible assets	5,800,263	22,943,727	30,000,000
- Historical costs	101,075,204	101,075,204	88,000,000
- Accumulated depreciation	-95,274,941	-78,131,477	-58,000,000
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	0	0	0
- Initial costs	0	0	0
- Accumulated amortization	0	0	0
4. Construction-in-progress	0	0	0
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	0	0	0
1. Long-term prepaid expenses	0	0	0
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	19,308,117,881	15,409,735,078	11,874,000,000
LIABILITIES
A- LIABILITIES	11,826,189,941	7,965,570,830	8,142,000,000
I. Current liabilities	11,826,189,941	7,965,570,830	8,142,000,000
1. Short-term debts and loans	11,600,000,000	7,950,000,000	8,000,000,000
2. Payable to suppliers	0	0	0
3. Advances from customers	0	0	0
4. Taxes and other obligations to the State Budget	226,189,941	15,570,830	142,000,000
5. Payable to employees	0	0	0
6. Accrued expenses	0	0	0
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	0	0	0
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	0	0	0
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	0	0	0
4. Long-term debts and loans	0	0	0
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	0	0	0
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	7,481,927,940	7,444,164,248	3,732,000,000
I. OWNER’S EQUITY	7,481,927,940	7,444,164,248	3,732,000,000
1. Capital	7,000,000,000	7,000,000,000	3,500,000,000
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	0	0	0
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	481,927,940	444,164,248	232,000,000
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	19,308,117,881	15,409,735,078	11,874,000,000

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009	FY2008
1. Total Sale	20,002,537,439	27,856,907,514	28,844,000,000
2. Deduction item	0	0	0
3. Net revenue	20,002,537,439	27,856,907,514	28,844,000,000
4. Costs of goods sold	18,149,336,244	24,665,414,687	26,930,000,000
5. Gross profit	1,853,201,195	3,191,492,827	1,914,000,000
6. Financial income	12,985,805	33,311,187	161,000,000
7. Financial expenses	833,691,207	1,847,944,652	1,229,000,000
- In which: Loan interest expenses	365,593,333	703,373,333	890,000,000
8. Selling expenses	0	0	0
9. Administrative overheads	977,744,208	1,091,621,297	705,000,000
10. Net operating profit	54,751,585	285,238,065	141,000,000
11. Other income	0	0	0
12. Other expenses	0	0	0
13. Other profit /(loss)	0	0	0
14. Total accounting profit before tax	54,751,585	285,238,065	141,000,000
15. Current corporate income tax	13,687,896	71,309,516	33,000,000
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	41,063,689	213,928,549	108,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	1.63	1.93	1.45	1.36
Quick liquidity ratio	0.32	0.35	0.33	0.76
Inventory circle	1.29	1.95	3.73	6.01
Average receive period	51.68	19.32	22.40	43.23
Utilizing asset performance	1.04	1.81	2.43	2.83
Liability by total asset	61.25	51.69	68.57	72.10
Liability by owner equity	158.06	107.00	218.17	358.01
Ebit / Total asset (ROA)	2.18	6.42	8.68	5.20
Ebit / Owner's equity (ROE)	5.62	13.28	27.63	21.05
Ebit / Total revenue (NPM)	2.10	3.55	3.57	2.35
Gross profit / Total revenue (GPM)	9.26	11.46	6.64	9.26
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	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C
Sale Methods	Retailer and Wholesaler
Public opinion	Normal

INTERPRETATION ON THE SCORES

The subject - KHAI VINH PTE was established in 2000 under the business registration No. 4101000184 with the registered capital is 3,500,000,000 VND. In December, 2009 the subject change the business registration to No. 0301929532 and increased the capital to 7,000,000,000 VND.
The subject is operating as a providing primarily domestic market agent with lawn-mowers, small composite boats and engine machine. It is distributor chain saw, power cutter, string trimmer and brush cutter of the brand name Dolmar; this product appears in more than 120 countries around the world. So the sources of these products are come from many countries like Taiwan, Canada, USA, Australia, China and Germany…
The premises and facilities of the subject are normal. The head office of it is located in 860/80/52 Xo Viet Nghe Tinh Street - Ward 25 - Binh Thanh District - Ho Chi Minh City. This location is also private of the subject’s director. The subject is small enterprise. It only supplies goods in domestic. Its customers are stable. The management capacity of the subject is normal.
According to financial statement reported, business situation of the subject has gone down. Its revenue and profit after tax in 2010 were decreased compared with previous years. Regarding to subject’s accountant, the subject was affected by imported prices and foreign currency exchange rate differences.
In overview, the position in industry of the subject is medium. Business activities of the subject are not busy now. The subject has capacity to meet small transactions.

------------ 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
			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			71.6	56.6		62.9
Imports			84	68.8		76.6
Trade Balance			-12.4	-12.2		-14.6

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.94
UK Pound	1	Rs.73.46
Euro	1	Rs.64.58

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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