MIRA INFORM REPORT

Report Date :

31.10.2011

IDENTIFICATION DETAILS

Name :	KIEN TRUNG CHEMICAL TRADING PRODUCTION CO., LTD

Registered Office :	No. 13 Str T4B, Tan Binh Industrial Park, Tay Thanh ward - Tan Phu District - Ho Chi Minh City - Vietnam

Country :	Vietnam

Financials (as on) :	31.07.2011

Date of Incorporation :	28.04.2008

Com. Reg. No.:	0305692845

Legal Form :	Limited liability company

Line of Business :	Wholesale of Waste and Scrap and Other Products

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Usually correct
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 – September 30^th, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Viet Nam

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		KIEN TRUNG CHEMICAL TRADING PRODUCTION CO., LTD
Vietnamese Name		CONG TY TNHH SAN XUAT THUONG MAI HOA CHAT KIEN TRUNG
Short name		KTCHEM CO., LTD
Type of Business		Limited liability company
Year Established		2008
Business Registration No.		0305692845
Date of 01^st Registration		28 April 2008
Date of latest (04^th) adjustment		24 Jan 2011
Place of Registration		Business Registration Office- Planning and Investment Department of Hochiminh city
Current registered capital		5,000,000,000 VND
Tax code		0305692845
Total Employees		12
Note: The given name (Kein Trung chemicals) is not correct

Historical Identification & Legal form

List	Changed Items
1	Subject has got former Business Registration No: 4102060912 issued on 28 April 2008 Changed to: 0305692845


ADDRESSES

Head Office
Address		No. 13 Str T4B, Tan Binh Industrial Park, Tay Thanh ward - Tan Phu District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 62675097
Fax		(84-8) 62675098
Email		trungvh@ktchem.net

Workshop Address
Address		No. A5/6 Nguyen Huu Tri Str, Quarter 1 - Tan Tuc Town - Binh Chanh District - Ho Chi Minh City - Vietnam

DIRECTORS

1. NAME		Mr. VO HIEU TRUNG
Position		Director
Date of Birth		05 Feb 1974
ID Number/Passport		300787016
ID Issue Date		28 Sep 2001
ID Issue Place		Police station of Long An province
Resident		Hamlet 1, My Yen Commune - Ben Luc District - Long An Province - Vietnam
Current resident		No. 47 Than Nhan Trung Str, Ward 13 - Tan Binh District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Email		trungvh@ktchem.net

2. NAME		Ms. PHAN THI HONG SON
Position		Chief Accountant
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

Registration activities:

Wholesale of waste and scrap and other products n.e.c
Wholesale of food
Wholesale of agricultural raw materials (except wood, bamboo) and live animals
Processing and preserving of fish, crustaceans and molluscs
Manufacture of bakery products
Manufacture of sugar
Manufacture of prepared meals and dishes
Manufacture of prepared animal, fish, poultry feeds
Manufacture of soft drinks; production of mineral waters and other bottled waters
Manufacture of basic chemicals
Manufacture of fertilizer and nitrogen compounds
Manufacture of plastics and synthetic rubber in primary forms
Manufacture of plastics products
Wholesale of other machinery and equipment n.e.c
Processing and preserving of meat
Manufacture of paints, varnishes and similar coatings, printing ink and mastics
Manufacture of man-made fibres
Sale of motor vehicle part and accessories
Manufacture of cocoa, chocolate and sugar confectionery
Manufacture of macaroni, noodles, couscous and similar farinaceous products
Manufacture of soap and detergents, cleaning and polishing preparations
Wholesale of motor vehicles
Maintenance and repair of motor vehicles
Freight transport by road

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		Goods
· Market		China, India, Malaysia, USA, EU.

EXPORT:
Notes: Currently, the subject does not export


BANKERS

1. ASIA COMMERCIAL BANK LE VAN SY BRANCH
Address		No.318 Le Van Sy Str - Tan Binh District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3991 6428
Fax		(84-8) 3991 6429

2. MILITARY COMMERCIAL JOINT STOCK BANK HO CHI MINH BRANCH
Address		No.18B Cong Hoa Str, Ward 4 - Tan Binh District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3811 8090 / 3811 0140
Fax		(84-8) 3811 8082

SHAREHOLDERS

1. NAME		Mr. VO HIEU TRUNG
Position		Director
Date of Birth		05 Feb 1974
ID Number/Passport		300787016
Issued on		28 Sep 2001
Issued Place		Police station of Long An province
Resident		Hamlet 1, My yen Commune - Ben Luc District - Long An Province - Vietnam
Current Resident		No. 47 Than Nhan Trung Str, Ward 13 - Tan Binh District - Ho Chi Minh City - Vietnam
Email		trungvh@ktchem.net
Nationality		Vietnamese
Value of shares		4,500,000,000 VND
Percentage		90%

2. NAME		Mr. BUI QUANG TUAN
ID Number/Passport		021218204
Resident		No. 05M Quarter 3 An Lac A Ward - Binh Tan District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		500,000,000 VND
Percentage		10%

FINANCIAL DATA

BALANCE SHEET
sUnit: One VND
Balance sheet date	31/07/2011	31/12/2010	31/12/2009
Number of weeks	30	52	52
ASSETS
A – CURRENT ASSETS	5,798,523,005	2,489,925,833	1,655,942,659
I. Cash and cash equivalents	1,213,447,820	1,587,652,885	1,612,509,638
1. Cash	1,213,447,820	1,587,652,885	1,612,509,638
2. Cash equivalents
II. Short-term investments
1. Short-term investments
2. Provisions for devaluation of short-term investments
III. Accounts receivable	2,421,019,557	70,009,010	43,272,683
1. Receivable from customers	420,508,000	26,736,327
2. Prepayments to suppliers		42,761,126	42,761,126
3. Inter-company receivable		511,557	511,557
4. Receivable according to the progress of construction
5. Other receivable	2,000,511,557
6. Provisions for bad debts
IV. Inventories	1,946,941,788	832,263,938	136,000
1. Inventories	1,946,941,788	832,263,938	136,000
2. Provisions for devaluation of inventories
V. Other Current Assets	217,113,840		24,338
1. Short-term prepaid expenses			24,338
2. VAT to be deducted	174,352,714
3. Taxes and other accounts receivable from the State
4. Other current assets	42,761,126
B. LONG-TERM ASSETS	31,365,616	23,198,224	24,648,112
I. Long term account receivable
1. Long term account receivable from customers
2. Working capital in affiliates
3. Long-term inter-company receivable
4. Other long-term receivable
5. Provisions for bad debts from customers
II. Fixed assets	31,365,616	23,198,224	24,648,112
1. Tangible assets	31,365,616	23,198,224	24,648,112
- Historical costs	39,340,000	26,098,000	26,098,000
- Accumulated depreciation	-7,974,384	-2,899,776	-1,449,888
2. Financial leasehold assets
- Historical costs
- Accumulated depreciation
3. Intangible assets
- Initial costs
- Accumulated amortization
4. Construction-in-progress
III. Investment property
Historical costs
Accumulated depreciation
IV. Long-term investments
1. Investments in affiliates
2. Investments in business concerns and joint ventures
3. Other long-term investments
4. Provisions for devaluation of long-term investments
V. Other long-term assets
1. Long-term prepaid expenses
2. Deferred income tax assets
3. Other long-term assets
TOTAL ASSETS	5,829,888,621	2,513,124,057	1,680,590,771

LIABILITIES
A- LIABILITIES	350,932,702	403,140,301	35,763,773
I. Current liabilities	350,932,702	403,140,301	35,763,773
1. Short-term debts and loans		90,799,515
2. Payable to suppliers	350,932,702	64,214,317
3. Advances from customers			28,483,500
4. Taxes and other obligations to the State Budget		248,126,469	7,280,273
5. Payable to employees
6. Accrued expenses
7. Inter-company payable
8. Payable according to the progress of construction contracts
9. Other payable
10. Provisions for short-term accounts payable
II. Long-Term Liabilities
1. Long-term accounts payable to suppliers
2. Long-term inter-company payable
3. Other long-term payable
4. Long-term debts and loans
5. Deferred income tax payable
6. Provisions for unemployment allowances
7. Provisions for long-term accounts payable
B- OWNER’S EQUITY	5,478,955,919	2,109,983,756	1,644,826,998
I. OWNER’S EQUITY	5,478,955,919	2,109,983,756	1,644,826,998
1. Capital	5,000,000,000	1,800,000,000	1,800,000,000
2. Share premiums
3. Other sources of capital
4. Treasury stocks
5. Differences on asset revaluation
6. Foreign exchange differences
7. Business promotion fund
8. Financial reserved fund
9. Other funds
10. Retained earnings	478,955,919	309,983,756	-155,173,002
11. Construction investment fund
II. Other sources and funds
1. Bonus and welfare funds
2. Sources of expenditure
3. Fund to form fixed assets
MINORITY’S INTEREST
TOTAL LIABILITIES AND OWNER’S EQUITY	5,829,888,621	2,513,124,057	1,680,590,771


PROFIT & LOSS STATEMENT

Description	7 Months of FY2011	FY2010	FY2009
1. Total Sale	3,072,666,272	13,958,074,116	695,650,411
2. Deduction item
3. Net revenue	3,072,666,272	13,958,074,116	695,650,411
4. Costs of goods sold	2,277,887,129	11,258,570,178	541,072,719
5. Gross profit	794,779,143	2,699,503,938	154,577,692
6. Financial income		2,407,369	385,821
7. Financial expenses		31,084,781	4,151,189
- In which: Loan interest expenses
8. Selling expenses
9. Administrative overheads	625,806,980	1,489,408,372	231,093,641
10. Net operating profit	168,972,163	1,181,418,154	-80,281,317
11. Other income
12. Other expenses		706,492,774
13. Other profit /(loss)		-706,492,774
14. Total accounting profit before tax	168,972,163	474,925,380	-80,281,317
15. Current corporate income tax	42,243,041	9,768,622	7,280,273
16. Deferred corporate income tax
18. Profit after tax	126,729,122	465,156,758	-87,561,590


FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2010	FY2009	Average Industry
Current liquidity ratio	6.18	46.30	1.98
Quick liquidity ratio	4.11	46.30	1.14
Inventory circle	27.05	3,978.48	4.57
Average receive period	1.83	22.70	74.01
Utilizing asset performance	5.55	0.41	1.52
Liability by total asset	16.04	2.13	56.31
Liability by owner equity	19.11	2.17	172.82
Ebit / Total asset (ROA)	18.90	-4.78	11.85
Ebit / Owner's equity (ROE)	22.51	-4.88	32.44
Ebit / Total revenue (NPM)	3.40	-11.54	7.81
Gross profit / Total revenue (GPM)	19.34	22.22	21.11
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Normal
Liquidity		Average
Payment status		Average
Financial Situation		Average
Development trend		Developing
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		L/C, T/T, D/P
Sale Methods		Retailer and Wholesaler

CREDIT INQUIRY: N/A

INTERPRETATION ON THE SCORES

KIEN TRUNG CHEMICAL TRADING PRODUCTION CO., LTD was established in 2008 under the Business Registration Certificate No. 4102060912. Recently, its business registration number has been merged into tax code No. 0305692845 and its registration capital has been VND 5,000,000,000. Subject’ Director is Mr. Vo Hieu Trung.

Its head office is at No. 13 Str T4B - Tan Binh Industrial Park, Tay Thanh ward - Tan Phu District - Ho Chi Minh City - Vietnam. Total employees are about 12 people.

It specializes in trading additives for fields such as chemical, cosmetic, food, animal foodstuff and pharmaceutical. It anticipates trading more types of chemical for rubber and paint industries in future. The subject mainly imports chemical from China, India, Malaysia, USA and EU then trading in domestic market.

The subject’s premises and facilities are normal. Its management capability is normal. Up the end of July 2010, its total assets are about VND 5,829,888,621 higher than total asset in 2010. Liquidity was average with current liquidity ratio 6.18. Total accounting profit before tax in 2010 was better than figure in 2009. ROA was 18.90, higher than the average industry index. Its legal capital is average in comparison with companies in the same field. Currently, the subject is operating normally. It has capacity to meet small financial commitments.

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.48.82
UK Pound	1	Rs.78.57
Euro	1	Rs.69.29

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.

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status

ADDRESSES

DIRECTORS

BUSINESS NATURE AND ACTIVITIES

IMPORT & EXPORT ACTIVITIES

BANKERS

SHAREHOLDERS

FINANCIAL DATA

sUnit: One VND

PAYMENT HISTORY & PERFORMANCE

EXPERIENCES

INTERPRETATION ON THE SCORES

APPENDIXES

Unit