MIRA INFORM REPORT

Report Date :

12.03.2011

IDENTIFICATION DETAILS

Name :	EQUIPMENT & TECHNOLOGY JOINT STOCK COMPANY
Registered Office :	The floor 2nd - No. 9 - Lane 13/90 Linh Nam Str - Hoang Mai District - Ha Noi City – Vietnam
Country :	Vietnam
Financials (as on) :	31.12.2009
Date of Incorporation :	16.03.2002
Com. Reg. No.:	0103000875
Legal Form :	Joint Stock Company
Line of Business :	Trading in mechanical equipment and 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 – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Vietnam	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

Registered English Name	EQUIPMENT & TECHNOLOGY JOINT STOCK COMPANY
Registered Vietnamese Name	CONG TY CO PHAN THIET BI VA CONG NGHE
Registered Short name	ETECH., JSC
Type of Business	Joint stock company
Year Established	2002
Business Registration No.	0103000875
Date of Registration	16 Mar 2002
Place of Registration	Ha Noi City Department of Planning and Investment
Current registered capital	1,200,000,000 VND
Status	Unlisted
Tax code	0101217538
Total Employees	10

COMPANY ADDRESSES

Head Office
Address	The floor 2nd - No. 9 - Lane 13/90 Linh Nam Str - Hoang Mai District - Ha Noi City - Vietnam
Telephone	(84-4) 3633 4508 / 3633 4509
Fax	(84-4) 3862 8335
Email	info@etechjsc.com
Website	www.etechjsc.com

DIRECTORS

1 . NAME	Mr. LE TUAN ANH
Position	Director
Date of Birth	31 Mar 1969
ID Number/Passport	011362001
Resident	No. 3 - Group 71 Hoang Van Thu Ward - Hoang Mai District - Ha Noi City - Vietnam
Nationality	Vietnamese
Tel/Mobil phone	++84 903413424
2 . NAME	Ms. NGUYEN HAI MINH
Position	Vice Director
ID Number/Passport	011670480
Resident	No. 9 - Group 19 Mai Dong Ward - Hoang Mai District - Ha Noi City - Vietnam
Nationality	Vietnamese
Tel/Mobil phone	++84 903429432
3 . NAME	Ms. NGUYEN THU HIEN
Position	Chief Accountant
Current resident	Ha Noi City - Vietnam
Nationality	Vietnamese
Tel/Mobil phone	(84-4) 3633 4509

BUSINESS NATURE AND ACTIVITIES

The main business activities of the subject include:
• Trading in mechanical equipment and machine
• Trading in chemical using in plastic industry
• Processing and manufacturing gift

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Mechanical equipment and machine, chemicals used in plastic industry
· Market	China, Taiwan, Germany, India
· Ratio	N/A
· Mode of payment	T/T
EXPORT:
Notes: The Subject doesn't export

BANKERS

1. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK HOAN KIEM BRANCH
Address	No.72 Tran Hung Dao str - Hoan Kiem District - Ha Noi City - Vietnam
Telephone	(84-4) 3942 6868
Fax	(84-4) 3942 7374
2. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT - HOAN KIEM BRANCH
Address	No. 23 Quang Trung Str - Hoan Kiem District - Ha Noi City - Vietnam
Telephone	(84-4) 3831 3792
Fax	(84-4) 3831 3717

SHAREHOLDERS

1 . NAME	Mr. LE TUAN ANH
Position	Director
Date of Birth	31 Mar 1969
ID Number/Passport	011362001
Issued on	21 Nov 2000
Issued Place	Hanoi Department of Police
Resident	No. 3 - Group 71 Hoang Van Thu Ward - Hoang Mai District - Ha Noi City - Vietnam
Nationality	Vietnamese
Number of Shares	5,000
Value of shares	500,000,000 VND
2 . NAME	Ms. NGUYEN HAI MINH
Position	Vice Director
ID Number/Passport	011670480
Resident	No. 9 - Group 19 Mai Dong Ward - Hoang Mai District - Ha Noi City - Vietnam
Nationality	Vietnamese
Number of Shares	6,000
Value of shares	600,000,000 VND
3 . NAME	Ms. NGUYEN THI LAN HUONG
ID Number/Passport	011756711
Resident	Ha Noi City - Vietnam
Nationality	Vietnamese
Number of Shares	1,000
Value of shares	100,000,000 VND

FINANCIAL DATA

BALANCE SHEET
I: One VND
Balance sheet date	31/12/2009	31/12/2008	31/12/2007
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	10,499,189,144	7,748,707,304	7,869,000,000
I. Cash and cash equivalents	310,910,565	155,142,008	280,000,000
1. Cash	310,910,565	155,142,008	280,000,000
2. Cash equivalents	0	0	0
II. Short-term investments	1,091,000,000	0	0
1. Short-term investments	1,091,000,000	0	0
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	1,877,096,558	2,526,172,811	1,239,000,000
1. Receivable from customers	1,575,031,790	2,390,023,020	944,000,000
2. Prepayments to suppliers	52,064,768	136,149,791	145,000,000
3. Inter-company receivable	0	0	73,000,000
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	250,000,000	0	77,000,000
6. Provisions for bad debts	0	0	0
IV. Inventories	6,960,392,121	4,755,851,343	6,222,000,000
1. Inventories	6,960,392,121	4,755,851,343	6,222,000,000
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	259,789,900	311,541,142	128,000,000
1. Short-term prepaid expenses	0	0	0
2. VAT to be deducted		90,066,340	0
3. Taxes and other accounts receivable from the State	157,038,572	91,435,825	0
4. Other current assets	102,751,328	130,038,977	128,000,000
B. LONG-TERM ASSETS	2,813,793,354	2,200,899,281	2,487,000,000
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	2,515,793,354	2,200,899,281	2,487,000,000
1. Tangible assets	2,515,793,354	2,200,899,281	2,487,000,000
- Historical costs	3,786,248,733	3,165,462,849	3,165,000,000
- Accumulated depreciation	-1,270,455,379	-964,563,568	-678,000,000
2. Financial leasehold assets	0	0	0
- Historical costs		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	298,000,000	0	0
1. Long-term prepaid expenses	0	0	0
2. Deferred income tax assets	0	0	0
3. Other long-term assets	298,000,000	0	0
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	13,312,982,498	9,949,606,585	10,356,000,000
LIABILITIES
A- LIABILITIES	12,178,053,590	8,993,834,139	6,148,000,000
I. Current liabilities	12,178,053,590	8,993,834,139	5,348,000,000
1. Short-term debts and loans	6,119,796,327	4,149,343,634	3,765,000,000
2. Payable to suppliers	5,964,712,912	4,579,788,964	1,579,000,000
3. Advances from customers	91,889,955	263,228,750	0
4. Taxes and other obligations to the State Budget	1,654,396	1,472,791	4,000,000
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	800,000,000
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	0	0	800,000,000
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	1,134,928,908	955,772,446	4,208,000,000
I. OWNER’S EQUITY	1,134,928,908	955,772,446	4,208,000,000
1. Capital	1,200,000,000	1,200,000,000	4,200,000,000
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	-65,071,092	-244,227,554	8,000,000
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	13,312,982,498	9,949,606,585	10,356,000,000

PROFIT & LOSS STATEMENT
Description	FY2009	FY2008	FY2007
1. Total Sale	14,096,011,692	10,642,786,394	15,680,000,000
2. Deduction item	0	0	0
3. Net sale	14,096,011,692	10,642,786,394	15,680,000,000
4. Costs of goods sold	11,518,216,526	8,957,427,976	13,499,000,000
5. Gross profit	2,577,795,166	1,685,358,418	2,181,000,000
6. Financial income	19,756,339	35,597,129	15,000,000
7. Financial expenses	428,259,960	505,211,879	272,000,000
- In which: Loan interest expenses	303,454,272	353,382,839	252,000,000
8. Selling expenses	0	0	0
9. Administrative overheads	1,958,293,255	1,185,903,896	1,382,000,000
10. Net operating profit	210,998,290	29,839,772	542,000,000
11. Other income	6,161,058	8,000	0
12. Other expenses	0	27,503	0
13. Other profit /(loss)	6,161,058	-19,503	0
14. Total accounting profit before tax	217,159,348	29,820,269	542,000,000
15. Current corporate income tax	38,002,886	8,950,434	152,000,000
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
17. Profit after tax	179,156,462	20,868,835	390,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2009	FY2008	FY2007	Average Industry
Current liquidity ratio	0.86	0.86	1.47	1.94
Quick liquidity ratio	0.29	0.33	0.31	0.98
Inventory circle	1.97	1.63	2.79	9.29
Average receive period	48.61	86.64	28.84	54.01
Utilizing asset performance	1.06	1.07	1.51	2.21
Liability by total asset	91.48	90.39	59.37	58.72
Liability by owner equity	1,073.02	941.00	146.10	256.76
Ebit / Total asset (ROA)	3.91	3.85	7.67	7.90
Ebit / Owner’s equity (ROE)	45.87	40.09	18.87	25.68
Ebit / Total sale (NPM)	3.69	3.60	5.06	4.18
Gross profit / Total sale (GPM)	18.29	15.84	13.91	15.30
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Normal
Liquidity	Low/Medium
Payment status	Limited
Financial Situation	Average
Development trend	Negative
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C, T/T
Sale Methods	Retailer and Wholesaler
Public opinion	Normal

CREDIT INQUIRY: 125,000 USD against DA in terms

Caution needed!

INTERPRETATION ON THE SCORES

Founded in 2002 under the business registration No. 0103000875, granted by Planning and Investment Department of Hanoi city with the registered capital of VND 1,200,000,000. This capital is contributed by three shareholders: Mr. Nguyen Hai Minh, Mr. Le Tuan Anh and Ms. Nguyen Thi Lan Huong.

Head office of the subject is located at Floor 2, No. 9, Lane 13/90 Linh Nam Road, Mai Dong Ward, Hoang Mai Dist., Hanoi City with total number employees is about 10 people.

When the subject was established, it specialized in trading in mechanical equipment and machine. After that, its business line was expanded to chemicals used in plastic industry.

The subject imports material from China, Taiwan, India, Singapore…Its products are distributed to customer in domestic. Its brand name is humble. Its position in the field is small. The premises and facilities of the subject are average. The management capacity is average.

The financial situation of the subject is average. The business activities in 2009 is normal, although the total assets increased 33% in compared with 2008 and 28.54% in compared with 2007. The products consumed were relative low in comparison with previous two years. The inventories up about 46.37% over the year 2008. Also in 2009, the liabilities hold 91% in total assets and the ratio Liability by Owner’s equity was high (1,073.02%). Whereas the liquidity ratios in three years (2007, 2008 and 2009) were quite low in compared with the industry average. This problem is not safe for creditors.

In general, the subject is a small company in the industry. Caution needed for normal business transaction.

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.45.21
UK Pound	1	Rs.72.55
Euro	1	Rs.62.43

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

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.