MIRA INFORM REPORT

Report Date :

04.05.2011

IDENTIFICATION DETAILS

Name :	RITEK VIETNAM COMPANY LIMITED
Registered Office :	Plot 213 Amata road, Amata Industrial park, Long Binh Ward - Bien Hoa City - Dong Nai Province - Vietnam
Country :	Viet Nam
Financials (as on) :	31.12.2010
Year of Establishment :	2005
Legal Form :	Foreign invested company
Line of Business :	Manufacturing CD disc (CD-R), DVD.

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 :	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 – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
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	RITEK VIETNAM COMPANY LIMITED
Vietnamese Name	CONG TY TNHH RITEK VIET NAM
Type of Business	Foreign invested company
Year Established	2005
Investment Certificate No	472043000251
Date of investment	25 Sep 2007
Place of investment	Management board of industrial zones of Dong Nai Province
Registered Investment Capital	160,000,000 USD
Chartered capital	160,000,000 USD
Status	Unlisted
Tax code	3600718951
Total Employees	520
Size	Medium

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No. 360/GP-KCN-DN Changed to: No. 472043000251	25 Sep 2007
2	Subject has got former Registered Investment Capital: 97,200,000 USD Changed to: 160,000,000 USD	22 Dec 2008

ADDRESSES

Head Office
Address	Plot 213 Amata road, Amata Industrial park, Long Binh Ward - Bien Hoa City - Dong Nai Province - Vietnam
Telephone	(84-61) 3936111
Fax	(84-61) 3936112

DIRECTORS

1 . NAME	Mr. CHEWEI JING YEH
Position	President
2 . NAME	Mr. LIU CHIA LUNG
Position	General Director
ID Number/Passport	210345225
Resident	No. 9,53/268 Tan Dan Street, Tan Xa Hamlet - - Taiwan - Taiwan
Nationality	Taiwan
Tel/Mobil phone	(84-61) 3893596
3 . NAME	Mr. CHEN CHAO YIU
Position	Financial Director

BUSINESS NATURE AND ACTIVITIES

The subject specializes in manufacturing CD disc (CD-R), DVD.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Materials
· Market	Taiwan (80%), Singapore, Malaysia, Japan
· Ratio	N/A
· Mode of payment	T/T, L/C
EXPORT:
· Types of products	products
· Market	Taiwan
· Mode of payment	T/T
Note: 100% products of the subject are exported throughout parent company’s contracts. The subject does not directly export.

BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM DONG NAI BRANCH
Address	No 77C Hung Dao Vuong,Trung Dung Ward - Bien Hoa City - Dong Nai Province - Vietnam
Telephone	(84-61) 3823666
Fax	(84-61) 3824191
SWIFT Code	BFTVVNVX 012
2. THE JOINT VENTURE BANK BETWEEN INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM AND CA THAY UNITED BANK DONG NAI BRANCH
Address	No.1, C1 Plot Long Binh Tan ward - - Dong Nai Province - Vietnam
Telephone	(84-61) 3832955
Fax	(84-61) 3931920
VND Account	6000097-002
SWIFT Code	IABBVNVX
3. FIRST COMMERCIAL BANK HOCHIMINH TRANSACTION

SHAREHOLDERS

1 . NAME	SCORE HIGH GROUP LIMITED
Address	5F, No 67, Sec 1 Chung Shan Str, Hsin Chuang - - Taipei - Taiwan
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	300,148,156,864	221,798,000,000	304,295,572,512
I. Cash and cash equivalents	24,879,572,448	50,659,000,000	7,127,819,705
1. Cash	24,879,572,448	50,659,000,000	7,127,819,705
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	108,801,023,308	2,023,000,000	29,426,037,795
1. Receivable from customers	88,316,176,085	309,000,000	28,729,717,688
2. Prepayments to suppliers	19,515,373,679	1,539,000,000	563,588,829
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	969,473,544	175,000,000	132,731,278
6. Provisions for bad debts	0	0	0
IV. Inventories	154,618,316,379	159,422,000,000	255,599,752,828
1. Inventories	157,342,977,218	161,291,000,000	261,966,335,571
2. Provisions for devaluation of inventories	-2,724,660,839	-1,869,000,000	-6,366,582,743
V. Other Current Assets	11,849,244,729	9,694,000,000	12,141,962,184
1. Short-term prepaid expenses	853,860,094	781,000,000	4,525,732,662
2. VAT to be deducted		0	0
3. Taxes and other accounts receivable from the State	0	0	0
4. Other current assets	10,995,384,635	8,913,000,000	7,616,229,522
B. LONG-TERM ASSETS	2,008,476,672,624	2,083,777,000,000	1,822,953,770,641
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	2,008,476,672,624	2,083,343,000,000	1,820,434,364,353
1. Tangible assets	1,139,706,837,949	1,113,768,000,000	1,073,719,521,795
- Historical costs	1,446,374,869,028	1,329,443,000,000	1,206,409,748,357
- Accumulated depreciation	-306,668,031,079	-215,675,000,000	-132,690,226,562
2. Financial leasehold assets	13,694,415,523	0	0
- Historical costs	16,158,150,620	0	0
- Accumulated depreciation	-2,463,735,097	0	0
3. Intangible assets	0	14,224,000,000	14,751,975,661
- Initial costs	0	16,159,000,000	16,158,150,620
- Accumulated amortization	0	-1,935,000,000	-1,406,174,959
4. Construction-in-progress	855,075,419,152	955,351,000,000	731,962,866,897
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	434,000,000	2,519,406,288
1. Long-term prepaid expenses	0	434,000,000	2,519,406,288
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	2,308,624,829,488	2,305,575,000,000	2,127,249,343,153
LIABILITIES
A- LIABILITIES	213,903,934,590	188,379,000,000	260,691,462,752
I. Current liabilities	213,493,290,859	188,045,000,000	260,389,077,782
1. Short-term debts and loans	187,145,283,242	162,561,000,000	92,970,932,887
2. Payable to suppliers	23,052,818,896	21,874,000,000	164,656,480,025
3. Advances from customers	0	14,000,000	0
4. Taxes and other obligations to the State Budget	0	2,398,000,000	17,389,812
5. Payable to employees	2,716,991,112	1,012,000,000	2,599,248,476
6. Accrued expenses	371,046,943	186,000,000	143,131,582
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	207,150,666	0	1,895,000
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	410,643,731	334,000,000	302,384,970
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	28,473,831	0	0
6. Provisions for unemployment allowances	382,169,900	334,000,000	302,384,970
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	2,094,720,894,898	2,117,196,000,000	1,866,557,880,401
I. OWNER’S EQUITY	2,094,720,894,898	2,117,196,000,000	1,866,557,880,401
1. Capital	2,252,815,901,439	2,252,816,000,000	1,914,908,037,453
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	413,563,943	-1,837,000,000	0
7. Business promotion fund	0	0	0
8. Financial reserved fund	0	0	0
9. Other funds	0	0	0
10. Retained earnings	-158,508,570,484	-133,783,000,000	-48,350,157,052
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	2,308,624,829,488	2,305,575,000,000	2,127,249,343,153

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009	FY2008
1. Total Sale	628,799,350,443	495,075,000,000	389,635,885,082
2. Deduction item	1,283,010,974	0	949,370,475
3. Net revenue	627,516,339,469	495,075,000,000	388,686,514,607
4. Costs of goods sold	627,864,786,608	553,158,000,000	449,694,495,301
5. Gross profit	-348,447,139	-58,083,000,000	-61,007,980,694
6. Financial income	22,087,073,710	10,237,000,000	5,600,596,654
7. Financial expenses	33,204,436,398	16,242,000,000	15,599,340,879
- In which: Loan interest expenses	6,967,135,797	0	8,073,254,601
8. Selling expenses	9,723,247,363	7,962,000,000	7,113,615,139
9. Administrative overheads	8,683,508,258	8,552,000,000	10,239,074,968
10. Net operating profit	-29,872,565,448	-80,602,000,000	-88,359,415,026
11. Other income	217,871,678,748	143,405,000,000	161,736,946,279
12. Other expenses	212,723,724,943	148,236,000,000	147,296,211,422
13. Other profit /(loss)	5,147,953,805	-4,831,000,000	14,440,734,857
14. Total accounting profit before tax	-24,724,611,643	-85,433,000,000	-73,918,680,169
15. Current corporate income tax	0	0	0
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	-24,724,611,643	-85,433,000,000	-73,918,680,169

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	1.41	1.18	1.17	1.48
Quick liquidity ratio	0.68	0.33	0.19	0.86
Inventory circle	4.06	2.67	1.76	6.84
Average receive period	63.29	1.49	27.63	57.12
Utilizing asset performance	0.27	0.21	0.18	1.40
Liability by total asset	9.27	8.17	12.25	53.27
Liability by owner equity	10.21	8.90	13.97	165.07
Ebit / Total asset (ROA)	-0.77	-3.71	-3.10	9.44
Ebit / Owner's equity (ROE)	-0.85	-4.04	-3.53	22.99
Ebit / Total revenue (NPM)	-2.82	-17.26	-16.90	6.94
Gross profit / Total revenue (GPM)	-0.06	-11.73	-15.66	16.18
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	Normal
Financial Situation	Below Average
Development trend	Even
Litigation data	No
Bankruptcy	No
Payment Methods	TT (80%), L/C (20%).
Sale Methods	To contracts

INTERPRETATION ON THE SCORES

RITEK Vietnam is 100% foreign owned company from Score High Group Limited, one of RITEK CORPORATION’s subsidiaries in Taiwan. The subject was established in March 2005 with original investment license No. 360/GP, issued by Dong Nai Industrial Park Authority. On September 25th, 2007 the subject re-registered its investment license No. 472043000251. Its chartered was increased to 160 million USD in December 2008.
Its head office and factory are located on Plot 213, Amata road, Amata Industrial park, Long Binh Ward - Bien Hoa City - Dong Nai Province – Vietnam. Ritek Vietnam specializes in manufacturing CD-R disc, VCD disc and DVD disc. Its factory can produce 20 million CD-R discs and 3 million DVD+R/-R discs/per month. Its products are 100% exported to foreign markets through its parent company. The subject does not directly export its products.
Financial ratios showed that: Liquidity ratios of this subject had uptrend year to year. Reserving much cash and having many receivable from customers indicated that the subject’s used capital was not effective. The credit policy for clients seems easily. Its liabilities only occupied over 8% in total assets. The subject had a safety in finance when it only used its own capital to do business. However with two ratios liability by total asset and liability by owner equity are as low as now, the subject does not take full advantage of resource from outside. Look at the income statement we see that: The subject had high total sale but costs of goods sold and the expenses for doing business was so high, therefore, the subject did not have profit from its business operation. Although the amount of loss in 2010 decreased comparison with two years ago, it still reflected ineffective business activities of this subject. Please caution when you have any medium and big transactions with this subject.

------------ 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.44.34
UK Pound	1	Rs.73.69
Euro	1	Rs.65.75

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.