MIRA INFORM REPORT

Report Date :

12.10.2011

IDENTIFICATION DETAILS

Name :	MONG SON JOINT STOCK COMPANY
Registered Office :	Group 18 Yen Binh Town - Yen Binh District - Yen Bai Province
Country :	Vietnam
Financials (as on) :	31.12.2009
Year of Establishment:	2007
Com. Reg. No.:	5200278146
Legal Form :	Joint Stock Company
Line of Business :	Exploiting, export limestone

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 – 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
Registered English Name	MONG SON JOINT STOCK COMPANY
Registered Vietnamese Name	CONG TY CO PHAN MONG SON
Trade name	MONG SON JOINT STOCK COMPANY
Type of Business	Joint stock company
Year Established	2007
Business Registration No.	5200278146
Date of Registration	11 Jun 2011
Place of Registration	Yen Bai Planning and Investment Department
Current registered capital	38,000,000,000 VND
Status	Unlisted
Tax code	5200278146
Total Employees	460

Note: There is a space between MONG and SON in the registered name of the subject, not as given.

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 1603000114 (issued 31 Aug 2007) Changed to: 5200278146	11 Jun 2011

ADDRESSES

Head Office
Address	Group 18 Yen Binh Town - Yen Binh District - Yen Bai Province - Vietnam
Telephone	(84-29) 3885647
Fax	(84-29) 3885647
Email	mongson@gmail.com

DIRECTORS

NAME	Mr. NGUYEN NGOC CHINH
Position	Director
ID Number/Passport	066453209
Contact address	Group 18 Yen Binh Town - Yen Binh District - Yen Bai Province - Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject focuses on:
Exploiting, export limestone

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Machines
· Market	China
· Ratio	N/a
· Mode of payment	N/a
EXPORT:
· Types of products	Limestone
· Market	Korea
· Ratio	N/a
· Mode of payment	N/a

BANKERS

BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM YEN BAI BRANCH
Address	Hong Ha Str - Yen Bai City - Yen Bai Province - Vietnam
Telephone	(84-29) 3862340, 3862204
Fax	(84-29) 862340

SHAREHOLDERS

1. NAME	Mr. NGUYEN NGOC CHINH
Position	Director
ID Number/Passport	066453209
Nationality	Vietnamese
Percentage	51%
2. NAME	OTHER SHAREHOLDERS
Percentage	49%

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
Audited status	Un-known	Un-known	Un-known
ASSETS
A – CURRENT ASSETS	24,803,030,770	33,112,000,000	7,501,281,632
I. Cash and cash equivalents	4,074,990,820	4,075,000,000	450,972,593
1. Cash	4,074,990,820	4,075,000,000	450,972,593
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	14,381,818,931	16,600,000,000	6,082,213,317
1. Receivable from customers	11,313,291,571	13,532,000,000	4,191,190,880
2. Prepayments to suppliers	3,068,527,360	3,068,000,000	1,891,022,437
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	2,870,811,171	8,962,000,000	744,353,924
1. Inventories	2,870,811,171	8,962,000,000	744,353,924
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	3,475,409,848	3,475,000,000	223,741,798
1. Short-term prepaid expenses	0	0	0
2. VAT to be deducted	3,475,409,848	3,475,000,000	32,594,132
3. Taxes and other accounts receivable from the State	0	0	191,147,666
4. Other current assets	0	0	0
B. LONG-TERM ASSETS	87,610,922,727	79,522,000,000	74,416,649,729
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	85,372,522,286	79,502,000,000	71,896,749,729
1. Tangible assets	65,365,793,220	65,595,000,000	58,039,582,809
- Historical costs	76,159,192,771	76,388,000,000	60,185,183,808
- Accumulated depreciation	-10,793,399,551	-10,793,000,000	-2,145,600,999
2. Financial leasehold assets	558,571,429	559,000,000	657,142,857
- Historical costs	690,000,000	690,000,000	690,000,000
- Accumulated depreciation	-131,428,571	-131,000,000	-32,857,143
3. Intangible assets	0	0	0
- Initial costs	0	0	0
- Accumulated amortization	0	0	0
4. Construction-in-progress	19,448,157,637	13,348,000,000	13,200,024,063
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	2,218,400,000	0	2,218,400,000
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	2,218,400,000	0	2,218,400,000
3. Other long-term investments	0	0	0
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	20,000,441	20,000,000	301,500,000
1. Long-term prepaid expenses	0	0	0
2. Deferred income tax assets	0	0	0
3. Other long-term assets	20,000,441	20,000,000	301,500,000
VI. Goodwill	0
1. Goodwill	0
TOTAL ASSETS	112,413,953,497	112,634,000,000	81,917,931,361
LIABILITIES
A- LIABILITIES	72,339,387,417	72,337,000,000	49,951,553,442
I. Current liabilities	32,104,387,417	32,102,000,000	10,831,388,061
1. Short-term debts and loans	30,700,000,000	30,700,000,000	10,115,934,061
2. Payable to suppliers	0	0	0
3. Advances from customers	0	0	0
4. Taxes and other obligations to the State Budget	510,436,458	508,000,000	0
5. Payable to employees	893,950,959	894,000,000	715,454,000
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	40,235,000,000	40,235,000,000	39,120,165,381
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	40,235,000,000	40,235,000,000	39,120,165,381
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	40,074,566,080	40,297,000,000	31,966,377,919
I. OWNER’S EQUITY	39,709,470,302	39,932,000,000	31,966,377,919
1. Capital	38,576,640,000	38,577,000,000	31,604,640,000
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	547,643,667	547,000,000	0
8. Financial reserved fund	0	0	0
9. Other funds	0	0	0
10. Retained earnings	585,186,635	808,000,000	361,737,919
11. Construction investment fund	0	0	0
II. Other sources and funds	365,095,778	365,000,000	0
1. Bonus and welfare funds	365,095,778	365,000,000	0
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0
TOTAL LIABILITIES AND OWNER’S EQUITY	112,413,953,497	112,634,000,000	81,917,931,361

PROFIT & LOSS STATEMENT
Description	FY2009	FY2008	FY2007
1. Total Sale	90,960,409,281	60,854,000,000	13,488,598,309
2. Deduction item	276,571,600	361,000,000	280,239,360
3. Net revenue	90,683,837,681	60,493,000,000	13,208,358,949
4. Costs of goods sold	45,199,731,620	24,157,000,000	4,331,191,861
5. Gross profit	45,484,106,061	36,336,000,000	8,877,167,088
6. Financial income	2,151,062,058	139,000,000	2,818,128
7. Financial expenses	5,922,332,862	4,802,000,000	1,288,924,227
- In which: Loan interest expenses		0	0
8. Selling expenses	32,030,859,864	25,012,000,000	6,334,050,483
9. Administrative overheads	5,537,591,179	3,842,000,000	805,657,329
10. Net operating profit	4,144,384,214	2,819,000,000	451,353,177
11. Other income	1,195,105,115	1,638,000,000	792,606,964
12. Other expenses	156,218,924	1,479,000,000	882,222,222
13. Other profit /(loss)	1,038,886,191	159,000,000	-89,615,258
14. Total accounting profit before tax	5,183,270,405	2,978,000,000	361,737,919
15. Current corporate income tax	518,327,041	0	0
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	4,664,943,364	2,978,000,000	361,737,919

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2009	FY2008	FY2007	Average Industry
Current liquidity ratio	0.77	1.03	0.69	1.14
Quick liquidity ratio	0.68	0.75	0.62	0.80
Inventory circle	16.16	4.98	5.82	12.95
Average receive period	57.89	100.16	168.08	54.19
Utilizing asset performance	0.81	0.54	0.16	1.42
Liability by total asset	64.35	64.22	60.98	69.44
Liability by owner equity	180.51	179.51	156.26	371.42
Ebit / Total asset (ROA)	4.61	2.64	0.44	6.42
Ebit / Owner's equity (ROE)	12.93	7.39	1.13	22.95
Ebit / Total revenue (NPM)	5.70	4.89	2.68	4.74
Gross profit / Total revenue (GPM)	50.00	59.71	65.81	12.88
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Fair
Liquidity	Low/ medium
Payment status	Average
Financial Situation	Average
Development trend	Uptrend
Litigation data	No record
Bankruptcy	No record
Sale Methods	Retailer
Public opinion	Good

INTERPRETATION ON THE SCORES

Being a joint stock company, the subject was officially founded in 2007 in mountainous province of Yen Bai. Its initial business registration No. 1603000114 issued in 2007 then changed to the same with tax code as current. The subject now has legal capital of VND 38,000,000,000.

Subject is engaging in exploiting, export limestone. The subject mainly import materials from China and its products are exported Korea. Operation of subject is fairly busy and mainly taken at the mines. At the head office, there is only some staff and it seems to difficult to connect with subject via phones. Currently, subject has totally around nearly 500 workers and staffs. Main ones are workers working on the stone mines.

Yen Bai province is a mountainous area of Vietnam with rich land in kinds of stone and especially the limestone. At this area, there are many companies exploiting this product like subject. And the safety in the working condition is much concerned.

In market, the company is just a small one but has its own business standards and gets belief of customers. It is also very careful in choosing a business partner, so it can keep stable and long relationship with customers.

Its current market share is not large. It has to face up with competition of other competitors in the same industry. However, Its growth is fairly improved in recent years.

On the hand of finance, the financial status of the subject is regarded fair with subject. Total revenue in 2008 is VND 60 billion, increased 361 percent in comparison with 2007 and the profit is VND 2.9 billion. To 2009, it attained total ones of VND 90,960,409,281 and profit after tax was nearly doubled. Other financial ratios are acceptable in comparison with average industry indexes.

In short, the position in the industry of the subject is Average. Its competitive capability in the market is relatively normal. Its financial status is average. The subject has capacity to meet financial commitments. Caution needed for the normal and big business transactions with the subject.

------------ APPENDIXES ----------

INDUSTRY DATA
Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2009		Total employees 2010 (Thous.pers.)	Annual average capital of enterprises 2009 (billion dongs)
	2010	2009
Agriculture, Forestry and Fishing	2.78	1.82	8,749		23,896.3	81,559
Industry and Construction	7.70	5.52	85,115		10,630	2,751,975
Trade and Services	7.52	6.63	154,978		14,522	4,939,069
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			72.2	57.1		62.7
Imports			84.8	69.9		80.7
Trade Balance			-12.6	-12.8		-18

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.03
UK Pound	1	Rs.76.60
Euro	1	Rs.66.80

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