MIRA INFORM REPORT

Report Date :

27.06.2011

IDENTIFICATION DETAILS

Name :	ASIA CHEMICAL CORPORATION

Registered Office :	K-4B Street No.4, Le Minh Xuan Industrial Zone, Le Minh Xuan Commune - Binh Chanh District - Ho Chi Minh City

Country :	Vietnam

Financials (as on) :	31.12.2009

Year of Establishment :	2007

Com. Reg. No.:	0304918352

Legal Form :	Joint Stock Company

Line of Business :	Trading in chemical materials.

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 – March 31^st, 2011

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Vietnam

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Bottom of Form

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
English Name		ASIA CHEMICAL CORPORATION
Vietnamese Name		CONG TY CO PHAN HOA CHAT A CHAU
Trade name		ASIA CHEMICAL CORPORATION
Short name		ACC
Type of Business		Joint stock company
Year Established		2007
Business Registration No.		0304918352
Date of Registration		23 Mar 2010
Place of Registration		Business Registration Office of Hochiminh city
Current registered capital		80,000,000,000 VND
Status		Unlisted
Tax code		0304918352
Total Employees		75
Size		Large

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former registered capital: 25,500,000,000 VND Changed to: 38,250,000,000 VND	N/A
2	Subject has got former Registered capital: 38,250,000,000 VND 50,000,000,000 VND Changed to: 80,000,000,000 VND	01 Sep 2010
3	Subject has got former Business Registration No: 4103006366 which was issued on 09 Apr 2007 Changed to: 0304918352	18 Mar 2010

company ADDRESSES

Transacted office
Address		Room 5.4 Etown 2 Building, No.364 Cong Hoa Str - Tan Binh District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3810 7979 / 3812 4371 / 3812 4383 / 3812 4418 /
Fax		(84-8) 3810 0979 / 3812 4660 / 38124698 / 38124706
Email		info@asia-chemical.com
Website		www.asia-chemical.com

Registration Address
Address		K-4B Street No.4, Le Minh Xuan Industrial Zone, Le Minh Xuan Commune - Binh Chanh District - Ho Chi Minh City - Vietnam

Branch in Can Tho
Address		Lot A4-02,03 Nam Khang Housing, Hung Thanh Ward - Cai Rang District - Can Tho City - Vietnam

Branch in Ha Noi
Address		Room 213 House B4, QT Thang Long Village - Tran Dang Ninh Street - Cau Giay District - Ha Noi City - Vietnam
Manager		Mr. DANG ANH TUAN

SUBSIDIARIES AND RELATED COMPANIES

1. SUBSIDIARIES - A CHAU HANOI CHEMICAL JOINT STOCK COMPANY
Business Registration		0103018512
Tax code		0102322567
Address		No.1 To Hieu Str, Nghia Do ward - Cau Giay District - Ha Noi City - Vietnam

DIRECTORS

1. NAME		Mr. NGUYEN THIEN TRUC
Position		Chairman
Date of Birth		20 Mar 1971
ID Number/Passport		024122717
Resident		A5 - 29 Lot S9 - My Phu Quarter Tan Phu Ward - 7 District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Tel/Mobil phone		+84903 943 557

2. NAME		Mr. TRAN VAN HAI
Position		General Director
Date of Birth		07 Mar 1958
ID Number/Passport		023802899
Resident		351/36 Le Dai Hanh Str, Ward 11 - 11 District - Ho Chi Minh City - Vietnam
Nationality		Vietnam

3. NAME		Mr. NGUYEN BA LUONG
Position		Deputy General Director - Business Operation Manager
ID Number/Passport		280407717
Resident		132B An My, An Son - Thuan An Town - Binh Duong Province - Vietnam
Nationality		Vietnamese
Email		baluong@yahoo.com

4. NAME		Ms. NGUYEN THI ANH NGOC
Position		Chief Accountant
ID Number/Passport		211565586
Resident		163 National Road 1A, Dap Da - An Nhon District - Binh Dinh Province - Vietnam
Nationality		Vietnamese

5. NAME		Ms. KIEU THI MINH NGUYET
Position		Sales Manager
ID Number/Passport		250418591
Resident		Nam Ha Hamlet, Nam Ha Commune - Lam Ha District - Lam Dong Province - Vietnam
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

The main business activities of Subject include:
• Trading in chemical materials.
• Trading in construction chemical and chemicals for other industries, industrial equipment, and lubricant.
• Providing products and services to various industries like Food & Beverage, Dairy, Seadfood, Instant Noodle, Pharmaceutical, Feed, Bakery, Confectionary,etc
• Providing commercial promotion services
• Logistic trading & services.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		Kinds of chemical
· Market		European
· Ratio		95%
· Mode of payment		L/C, T/T

EXPORT:
· Types of products		N/A
· Market		N/A

BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM PHU THO BRANCH
Address		No 572 To Hien Thanh - 10 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 38624820
Fax		(84-8) 38624804

2. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK HOA BINH BRANCH
Address		No.461 An Duong Vuong Street, Ward 7 - 5 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3835 5406
Fax		(84-8) 3835 5417

3. HONGKONG SHANGHAI BANK CORPORATION (HSBC) – HO CHI MINH BRANCH
Address		6 Floor, No. 235 Dong Khoi Str., Ben Nghe ward - 1 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 38292288

SHAREHOLDERS

1. NAME		Mr. NGUYEN THIEN TRUC
Position		Chairman
Date of Birth		20 Mar 1971
ID Number/Passport		024122717
Resident		A5 - 29 Lot S9 - My Phu Quarter Tan Phu Ward - 7 District - Ho Chi Minh City - Vietnam
Mobile phone		+84903 943 557
Nationality		Vietnamese
Value of shares		14,800,000,000 VND
Percentage		18.5%

2. NAME		Mr. NGUYEN BAO TUNG
ID Number/Passport		361776323
Resident		18/24 Nguyen Trai Street - An Hoi WArd - Ninh Kieu District - Can Tho City - Vietnam
Nationality		Vietnamese
Value of shares		1,300,000,000 VND
Percentage		1.63%

3. NAME		Mr. NGUYEN HUY PHUONG
ID Number/Passport		361140056
Resident		15/11/24 Hoang Van Thu Street - Ninh Kieu District - Can Tho City - Vietnam
Nationality		Vietnamese
Value of shares		1,000,000,000 VND
Percentage		1.25%

4. NAME		Mr. HUYNH THANH LAM
ID Number/Passport		024428353
Resident		Tien Hamlet Tan Thong Hoi Ward - Cu Chi District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		900,000,000 VND
Percentage		1.13%

5. NAME		Ms. BUI THI LOI
ID Number/Passport		023802838
Resident		377/82 Le Dai Hanh Street, Ward 11 - 11 District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		600,000,000 VND
Percentage		0.75%

6. NAME		Mr. PHAN DUY HIEU
Date of Birth		1969
ID Number/Passport		024578268
Resident		237/90 Hoa Binh Street, Hiep Tan Ward - Tan Phu District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		600,000,000 VND
Percentage		0.75%

7. NAME		Ms. NGUYEN THI LAN ANH
ID Number/Passport		021575296
Nationality		Vietnamese
Value of shares		500,000,000 VND
Percentage		0.63%

8. NAME		Ms. KIEU THI MINH NGUYET
Position		Sales Manager
ID Number/Passport		250418591
Resident		Nam Ha Hamlet, Nam Ha Commune - Lam Ha District - Lam Dong Province - Vietnam
Nationality		Vietnamese
Value of shares		100,000,000 VND
Percentage		0.13%

9. NAME		Ms. LE NGOC SANG
ID Number/Passport		022798376
Resident		261 Nguyen Trai Street, Ward 2 - 5 District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		100,000,000 VND
Percentage		0.13%

10. NAME		Ms. NGUYEN THI ANH NGOC
Position		Chief Accountant
ID Number/Passport		211565586
Resident		163 National Road 1A, Dap Da - An Nhon District - Binh Dinh Province - Vietnam
Nationality		Vietnamese
Value of shares		100,000,000 VND
Percentage		0.13%

11. NAME		Mr. NGUYEN BA LUONG
Position		Deputy General Director - Business Operation Manager
ID Number/Passport		280407717
Resident		132B An My, An Son - Thuan An Town - Binh Duong Province - Vietnam
Email		baluong@yahoo.com
Nationality		Vietnamese
Value of shares		500,000,000 VND
Percentage		0.63%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2009	31/12/2008	31/12/2007
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	122,530,000,000	77,084,000,000	52,245,000,000
I. Cash and cash equivalents	5,856,000,000	4,210,000,000	1,882,000,000
1. Cash	5,856,000,000	4,210,000,000	1,882,000,000
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	69,494,000,000	38,985,000,000	30,761,000,000
1. Receivable from customers	59,850,000,000	34,122,000,000	28,443,000,000
2. Prepayments to suppliers	10,726,000,000	4,158,000,000	2,015,000,000
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	851,000,000	705,000,000	303,000,000
6. Provisions for bad debts	-1,933,000,000	0	0
IV. Inventories	46,485,000,000	33,767,000,000	18,242,000,000
1. Inventories	46,485,000,000	33,767,000,000	18,242,000,000
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	695,000,000	122,000,000	1,360,000,000
1. Short-term prepaid expenses	695,000,000	122,000,000	364,000,000
2. VAT to be deducted	0	0	682,000,000
3. Taxes and other accounts receivable from the State	0	0	192,000,000
4. Other current assets	0	0	122,000,000
B. LONG-TERM ASSETS	18,260,000,000	8,923,000,000	6,583,000,000
I. Long term account receivable	336,000,000	158,000,000	158,000,000
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	336,000,000	158,000,000	158,000,000
5. Provisions for bad debts from customers	0	0	0
II. Fixed assets	8,324,000,000	8,165,000,000	6,125,000,000
1. Tangible assets	8,324,000,000	2,972,000,000	603,000,000
- Historical costs	9,315,000,000	3,516,000,000	624,000,000
- Accumulated depreciation	-991,000,000	-544,000,000	-21,000,000
2. Financial leasehold assets	0	0	329,000,000
- Historical costs	0	0	365,000,000
- Accumulated depreciation	0	0	-36,000,000
3. Intangible assets	0	5,193,000,000	5,193,000,000
- Initial costs	0	5,193,000,000	5,193,000,000
- 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	9,600,000,000	600,000,000	300,000,000
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	9,600,000,000	600,000,000	300,000,000
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
TOTAL ASSETS	140,790,000,000	86,007,000,000	58,828,000,000

LIABILITIES
A- LIABILITIES	43,090,000,000	32,147,000,000	23,278,000,000
I. Current liabilities	41,936,000,000	29,671,000,000	21,242,000,000
1. Short-term debts and loans	15,862,000,000	14,600,000,000	3,235,000,000
2. Payable to suppliers	10,738,000,000	11,244,000,000	14,766,000,000
3. Advances from customers	651,000,000	237,000,000	62,000,000
4. Taxes and other obligations to the State Budget	9,570,000,000	2,089,000,000	2,013,000,000
5. Payable to employees	3,000,000	0	0
6. Accrued expenses	3,256,000,000	1,421,000,000	1,140,000,000
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	1,856,000,000	80,000,000	26,000,000
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	1,154,000,000	2,476,000,000	2,036,000,000
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	1,154,000,000	2,476,000,000	2,036,000,000
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	97,700,000,000	53,860,000,000	35,550,000,000
I. OWNER’S EQUITY	94,893,000,000	52,790,000,000	35,113,000,000
1. Capital	50,000,000,000	38,250,000,000	25,500,000,000
2. Share premiums	1,175,000,000	775,000,000	875,000,000
3. Other sources of capital	0	0	0
4. Treasury stocks	-700,000,000	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	0	753,000,000	37,000,000
7. Business promotion fund	5,851,000,000	2,997,000,000	933,000,000
8. Financial reserved fund	3,466,000,000	1,498,000,000	466,000,000
9. Other funds	0	0	462,000,000
10. Retained earnings	35,101,000,000	8,517,000,000	6,840,000,000
11. Construction investment fund	0	0	0
II. Other sources and funds	2,807,000,000	1,070,000,000	437,000,000
1. Bonus and welfare funds	2,807,000,000	1,070,000,000	437,000,000
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST		0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	140,790,000,000	86,007,000,000	58,828,000,000

PROFIT & LOSS STATEMENT

Description	FY2009	FY2008	FY2007
1. Total Sale	433,917,000,000	326,482,000,000	113,200,000,000
2. Deduction item	1,089,000,000	4,532,000,000	1,206,000,000
3. Net revenue	432,828,000,000	321,950,000,000	111,994,000,000
4. Costs of goods sold	358,655,000,000	267,896,000,000	93,236,000,000
5. Gross profit	74,173,000,000	54,054,000,000	18,758,000,000
6. Financial income	102,000,000	99,000,000	18,000,000
7. Financial expenses	1,880,000,000	1,910,000,000	88,000,000
- In which: Loan interest expenses	1,862,000,000	1,910,000,000	0
8. Selling expenses	14,997,000,000	8,126,000,000	1,038,000,000
9. Administrative overheads	19,393,000,000	11,060,000,000	4,750,000,000
10. Net operating profit	38,005,000,000	33,057,000,000	12,900,000,000
11. Other income	6,336,000,000	9,000,000	50,000,000
12. Other expenses	1,039,000,000	0	0
13. Other profit /(loss)	5,297,000,000	9,000,000	50,000,000
14. Total accounting profit before tax	43,302,000,000	33,066,000,000	12,950,000,000
15. Current corporate income tax	7,578,000,000	8,796,000,000	3,626,000,000
16. Deferred corporate income tax	0	0	0
18. Profit after tax	35,724,000,000	24,270,000,000	9,324,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2009	FY2008	FY2007	Average Industry
Current liquidity ratio	2.92	2.60	2.46	1.98
Quick liquidity ratio	1.81	1.46	1.60	1.14
Inventory circle	7.72	10.30	5.11	4.57
Average receive period	58.60	44.20	100.25	74.01
Utilizing asset performance	3.07	3.74	1.90	1.52
Liability by total asset	30.61	37.38	39.57	56.31
Liability by owner equity	44.10	59.69	65.48	172.82
Ebit / Total asset (ROA)	32.08	40.67	22.01	11.85
Ebit / Owner's equity (ROE)	46.23	64.94	36.43	32.44
Ebit / Total revenue (NPM)	10.41	10.71	11.44	7.81
Gross profit / Total revenue (GPM)	17.09	16.56	16.57	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		High
Payment status		Prompt
Financial Situation		Strong
Development trend		Uptrend
Litigation data		No
Bankruptcy		No
Payment Methods		L/C, T/T
Sale Methods		Retailer
Public opinion		Good

INTERPRETATION ON THE SCORES

Asia Chemical Corporation (ACC) was licensed in April 2007 under the Business Registration No.4103006366, issued by Business Registration Office - Planning and Investment Department of Hochminh City. Currently, the subject is operating under the business registration No. 0304918352 (as same as tax code) and its current registered capital is 80 billion VND.
Premises and facilities of the subject are standard. The subject's registration address is located at K-4B Street No.4- Le Minh Xuan Industrial Zone - Le Minh Xuan Commune - Binh Chanh Dist - Ho Chi Minh City. This is also warehouse of the subject. However, all transactions of the subject are taken place at Suite 5.4- Etown 2 Building- No.364 Cong Hoa Str - Tan Binh Dist - Ho Chi Minh City. In 2010, ACC opened a plant of more than 42,000m2 in Binh Duong province to produce Non Dairy Creamer, used for dairy & instant coffee industry. This plant finished in May 2011 under ISO 22000.
Subject is the distributor of high-quality specialty ingredients, chemicals, commodities and other materials to various industries, including food & beverage, dairy, seafood, instant noodle, pharmaceutical, feed, veterinary, bakery, confectionery, and some other industrial applications. Some of the subject’s suppliers are DSM Nutrition, Yearrakarn , Meelunie, CPKelco, Mc.Cormmick, Interfood BV, Anhui BBCA, National Starch Food Innovation, Ogawa, Nikken, C hemoforma, Gelnex, Pharmline, Lerge Mante, Prayon, Delfi, Cornproducts, Junbunzlauer, Showa Denko, Itochu, Mitshubishi, Sud Chemie, Ineos Silicas, Haldin Pacific, Novanat, etc.
Competition capacity of the subject is strong. Subject has close and long term relationships with big customers including Kinh Do, Trung Nguyen, Vinamilk, Friesland Campina Vietnam, THP, Perfecti, P&G, Unilever, CKL, Interfood, Elovi, Ha Noi Milk, IDP, Phamnguyen, Orion, Bibica, THP, Vifon, Acecook, Asia Food, BV Pharma, Hau Giang Pharmaceutical, Imexpharm, Sai gon Cosmetics, SPM, Colgate, CP, Uni President, CJ Vina, 4 Oranges, ICI, Jotun, Nippon paint, Motor Kieu and so on.
The subject is operating effectively. In March 2011, Mekong Capital announced that Mekong Enterprise Fund II Ltd (“MEF II”) had invested about US$3.4 million in Asia Chemical Corporation (“ACC”).
In summary, the company has guarantee for small size debt repayment. It is expected that the company’s income and profit margin will keep improving in the next couple of years; therefore the rating outlook for the company is stable.

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.71.89
Euro	1	Rs.64.09

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.