MIRA INFORM REPORT

Report Date :

17.06.2011

IDENTIFICATION DETAILS

Name :	LAO CAI YELLOW PHOSPHORUS JOINT STOCK COMPANY
Registered Office :	Tang Loong Industrial Park Tang Loong Town - Bao Thang District - Lao Cai Province
Country :	Vietnam
Financials (as on) :	31.12.2010
Date of Incorporation :	22.12.2008
Com. Reg. No.:	1203000191
Legal Form :	Joint Stock Company
Line of Business :	Manufacture and trading yellow phosphorus

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 – 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

English Name	LAO CAI YELLOW PHOSPHORUS JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN PHOT PHO VANG LAO CAI
Short name	LPC
Type of Business	Joint stock company
Year Established	2008
Business Registration No.	1203000191
Date of Registration	22 Dec 2008
Place of Registration	Lao Cai Department of Planning and Investment
Current registered capital	22,000,000,000 VND
Status	Unlisted
Tax code	5300250560
Total Employees	100

ADDRESSES

Head Office
Address	Tang Loong Industrial Park Tang Loong Town - Bao Thang District - Lao Cai Province - Vietnam
Telephone	(84-20) 3863282
Fax	(84-20) 3867242

DIRECTORS

1. NAME	Mr. VU MANH THAI
Position	Director
Date of Birth	10 Dec 1958
ID Number/Passport	063131480
ID Issue Date	21 Aug 2002
ID Issue Place	Lao Cai Department of Public Security
Resident	Group 23 Pm Han Ward - Lao Cai District - Lao Cai Province - Vietnam
Nationality	Vietnamese
2. NAME	Mr. QUACH TIEN NHAT
Position	Vice Director
Date of Birth	01 Jan 1950
3. NAME	Mr. LUU NGOC ANH
Position	Vice Director
Resident	- Bao Thang District - Lao Cai Province - Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

- Manufacture and trading yellow phosphorus
- Import export phosphorus, apatite and materials
- Exploitation, processing minerals, and material for construction
- Transportation services

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	NA
EXPORT:
· Types of products	Phosphorus
· Market	India, Italia, Japan

BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM TRANSACTION CENTER
Address	No 31 -33 Ngo Quyen - Hoan Kiem District - Ha Noi City - Vietnam
Telephone	(84-4) 39368547
Fax	(84-4) 38241395 / 39365534
Foreign Currency Account	0011373092254 USD
SWIFT Code	bftvvnvx001

SHAREHOLDERS

1. NAME	VIETNAM APATIT LIMITED COMPANY
Business Registration	1204000005
Date of Registration	25 May 2005
Place of Registration	Lao Cai Department of Planning and Investment
Registered Capital	543,681,888,446 VND
Tax code	5300100276
Address	Pom Han Ward - Lao Cai District - Lao Cai Province - Vietnam
Tel	(84- 20) 3852252/ 3852274/ 3852275
Fax	(84-20) 3852399
Number of shares	1,386,000
Value of shares	13,860,000,000 VND
Percentage	63%
2. NAME	DUCGIANG CHEMICAL AND DETERGENT POWDER JOINT STOCK COMPANY
Business Registration	0103003850
Date of Registration	05 Mar 2004
Place of Registration	Hanoi Department of Planning and Investment
Registered Capital	66,000,000,000 VND
Tax code	0101452588
Address	No. 18 Lane 44 Duc Giang Str. - Thuong Thanh Ward - Long Bien District - Ha Noi City - Vietnam
Tel	(84-4) 38271620
Fax	(84-4) 38271068
Number of shares	264,000
Value of shares	2,640,000,000 VND
Percentage	12%
3. NAME	VIET HONG CHEMICAL AND TRADING COMPANY LIMITED
Business Registration	0102007443
Date of Registration	21 Dec 2007
Place of Registration	Hanoi Planning and Investment Department
Registered Capital	6,000,000,000 VND
Tax code	0101330491
Address	No. 12 - Alley 189 Khuong Thuong Str - Khuong Thuong Ward - Thanh Xuan District - Ha Noi City - Vietnam
Tel	84-4 3787 5264
Fax	84-4 3787 5263
Number of shares	200,000
Value of shares	2,000,000,000 VND
Percentage	9.09%
4. NAME	Mr. VO TRONG HAI
ID Number/Passport	201545300
Issued Place	Da Nang Department of Public Security
Resident	No. 340A Nguyen Tri Phuong Street - - Da Nang City - Vietnam
Nationality	Vietnamese
Number of Shares	150,000
Value of shares	1,500,000,000 VND
Percentage	6.818%
5. NAME	Mr. TRAN DUC HONG
ID Number/Passport	060704541
Issued Place	Yen Bai Department of Public Security
Resident	Hop Minh Commune - Tran Yen District - Yen Bai Province - Vietnam
Nationality	Vietnamese
Number of Shares	100,000
Value of shares	1,000,000,000 VND
Percentage	4.545%
6. NAME	Mr. HA NGUYEN THUY
ID Number/Passport	063113280
Issued Place	Lao Cai Department of Public Security
Resident	Khanh Yen Town - Van Ban District - Lao Cai Province - Vietnam
Nationality	Vietnamese
Number of Shares	50,000
Value of shares	500,000,000 VND
Percentage	2.272%
7. NAME	Mr. NGUYEN MANH TOAN
ID Number/Passport	060690683
Issued Place	Yen Bai Department of Public Security
Resident	Minh Quan Commune - Tran Yen District - Yen Bai Province - Vietnam
Nationality	Vietnamese
Number of Shares	50,000
Value of shares	500,000,000 VND
Percentage	2.272%

FINANCIAL DATA

BALANCE SHEET
Unit: Million VND
Balance sheet date	31/12/2010	31/12/2009
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	52,558	48,376
I. Cash and cash equivalents	10,025	18,889
1. Cash	10,025	18,889
2. Cash equivalents	0	0
II. Short-term investments	0	0
1. Short-term investments	0	0
2. Provisions for devaluation of short-term investments	0	0
III. Accounts receivable	17,154	23,121
1. Receivable from customers	6,815	14,739
2. Prepayments to suppliers	335	302
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	10,004	8,080
6. Provisions for bad debts	0	0
IV. Inventories	23,910	5,969
1. Inventories	23,910	5,969
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	1,469	397
1. Short-term prepaid expenses	0	0
2. VAT to be deducted	1,469	396
3. Taxes and other accounts receivable from the State	0	0
4. Other current assets	0	1
B. LONG-TERM ASSETS	10,221	13,171
I. Long term account receivable	0	0
1. Long term account receivable from customers	0	0
2. Working capital in affiliates	0	0
3. Long-term inter-company receivable	0	0
4. Other long-term receivable	0	0
5. Provisions for bad debts from customers	0	0
II. Fixed assets	10,221	13,171
1. Tangible assets	8,050	11,282
- Historical costs	17,961	17,853
- Accumulated depreciation	-9,911	-6,571
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	1,108	1,524
- Initial costs	2,074	2,074
- Accumulated amortization	-966	-550
4. Construction-in-progress	1,063	365
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	0	0
1. Investments in affiliates	0	0
2. Investments in business concerns and joint ventures	0	0
3. Other long-term investments	0	0
4. Provisions for devaluation of long-term investments	0	0
V. Other long-term assets	0	0
1. Long-term prepaid expenses	0	0
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	62,779	61,547
LIABILITIES
A- LIABILITIES	13,434	19,091
I. Current liabilities	13,434	19,091
1. Short-term debts and loans	0	0
2. Payable to suppliers	8,053	14,599
3. Advances from customers	0	0
4. Taxes and other obligations to the State Budget	2,165	2,096
5. Payable to employees	1,579	1,785
6. Accrued expenses	546	478
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	1,091	133
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	0	0
1. Long-term accounts payable to suppliers	0	0
2. Long-term inter-company payable	0	0
3. Other long-term payable	0	0
4. Long-term debts and loans	0	0
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	0	0
7. Provisions for long-term accounts payable	0	0
B- OWNER’S EQUITY	49,345	42,456
I. OWNER’S EQUITY	48,143	41,404
1. Capital	30,768	30,768
2. Share premiums	0	0
3. Other sources of capital	0	0
4. Treasury stocks	0	0
5. Differences on asset revaluation	0	0
6. Foreign exchange differences	123	-301
7. Business promotion fund	1,520	608
8. Financial reserved fund	0	0
9. Other funds	0	0
10. Retained earnings	15,731	10,329
11. Construction investment fund	0	0
II. Other sources and funds	1,203	1,052
1. Bonus and welfare funds	1,203	1,052
2. Sources of expenditure	0	0
3. Fund to form fixed assets	0	0
MINORITY’S INTEREST	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	62,779	61,547

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009
1. Total Sale	135,675	131,314
2. Deduction item	0	0
3. Net revenue	135,675	131,314
4. Costs of goods sold	108,578	114,065
5. Gross profit	27,097	17,249
6. Financial income	1,896	1,721
7. Financial expenses	0	160
- In which: Loan interest expenses	0	0
8. Selling expenses	4,006	1,872
9. Administrative overheads	2,706	2,200
10. Net operating profit	22,281	14,738
11. Other income	2,642	85
12. Other expenses	440	6
13. Other profit /(loss)	2,202	79
14. Total accounting profit before tax	24,483	14,817
15. Current corporate income tax	6,244	2,650
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	18,238	12,167

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	Average Industry
Current liquidity ratio	3.91	2.53	1.98
Quick liquidity ratio	2.13	2.22	1.14
Inventory circle	7.27	19.11	4.57
Average receive period	46.15	64.27	74.01
Utilizing asset performance	2.16	2.13	1.52
Liability by total asset	21.40	31.02	56.31
Liability by owner equity	27.22	44.97	172.82
Ebit / Total asset (ROA)	39.00	24.07	11.85
Ebit / Owner's equity (ROE)	49.62	34.90	32.44
Ebit / Total revenue (NPM)	18.05	11.28	7.81
Gross profit / Total revenue (GPM)	19.97	13.14	21.11
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Good
Liquidity	Medium/High
Payment status	Above Average
Financial Situation	Above Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	TT, L/C
Sale Methods	To contracts

INTERPRETATION ON THE SCORES

LAO CAI YELLOW PHOSPHORUS JOINT STOCK COMPANY (LPC) was established in Dec 2008 with Business Registration No. 1203000191 granted by Lao Cai Department of Planning and Investment. Its current registered capital is VND 22 billion. Head office of the subject is at Tang Loong Industrial Park, Tang Loong Town, Bao Thang District, Lao Cai Province.
LPC specializes in manufacturing and trading yellow phosphorus, exploiting, processing minerals and materials for construction, for instance, phosphorus, apatite. It exports phosphorus to India, Italy and Japan. The subject now rarely imports. Formerly it also imports electrodes from China.
LPC is directed by Mr. Vu Manh Thai, management capacity is fair. There are about 100 people working for the subject under normal condition of equipment and facility.
Financial Statements for FY 2009 and 2010 show a bright financial situation of LPC recently. Generally the financial ratios are better than the average of industry. It proves a rather effectiveness in operating and doing business of the subject.
In 2010, total assets of LPC is VND 63 billion; in which current assets is VND 53 billion, accounts for 84% while long-term assets is VND 10 billion. On the other hand, current liabilities are approximately VND 13.5 billion and owner’s equity is VND 49 billion. In 2010, total revenue is VND 136 billion, brings about VND 18 billion profit, increase about VND 6 billion profit in comparison with 2009. These figures bring good signals for the development of the subject; LPC’s future prospect seems fair and promising.
In conclusion, LPC is a medium-sized company in the industry. It is able to meet normal commitment; no caution is needed for 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.44.90
UK Pound	1	Rs.72.54
Euro	1	Rs.63.39

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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