MIRA INFORM REPORT

Report Date :

26.04.2012

IDENTIFICATION DETAILS

Name :	HUE LINH CO.,LTD

Registered Office :	Lot B42/II-B50b/II, Vinh Loc Industrial Park - Road No. 1 - Vinh Loc A Commune - Binh Chanh District - Ho Chi Minh City - Vietnam

Country :	Vietnam

Financials (as on) :	31.12.2010

Year of Establishment:	2001

Com. Reg. No.:	0302407899

Legal Form :	Limited Liability Company

Line of Business :	Manufacturer of Plastics Products.

No. of Employees :	200

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, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Vietnam

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	HUE LINH CO.,LTD
Vietnamese Name	CONG TY TNHH THUONG MAI - SAN XUAT HUE LINH
Type of Business	Limited liability company
Established Year	2001
Business Registration No.	0302407899
Date of Registration	20 Apr 2011 (17^th adjustment)
Place of Registration	Business Registration Office - Department of Planning and Investment of Hochiminh City
Current registered capital	VND 328,000,000,000
Tax code	0302407899
Total Employees	200

Historical Identification & Legal form

List

Changed Items

Date of changes

Subject has got former registered capital: VND 288,000,000,000

Changed to: VND 328,000,000,000

20 Apr 2011

Subject has got former Business Registration No: 4102006522 (issued on 14 Sept 2001) Changed to: 0302407899

20 Apr 2011

ADDRESSES

Head Office
Address		Lot B42/II-B50b/II, Vinh Loc Industrial Park - Road No. 1 - Vinh Loc A Commune - Binh Chanh District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3974 0046 - 3865 2990 - 3860 1663
Fax		(84-8) 3974 0047
Email		truongtruongphat1@vnn.vn
Website		www.huelinhplastic.com.vn

Branch in Ho Chi Minh
Address		Lot B42/II, B43/II, B44/II, B45/II, B46/II, B47/II, B48/II, B49/II, B50/II, B50b/II, Vinh Loc Industrial Park - Road No. 1 - Vinh Loc A Commune - Binh Chanh District - Ho Chi Minh City - Vietnam

Branch in Ho Chi Minh
Address		No. 178C Lac Long Quan Str - Ward 10 - Tan Binh District - Ho Chi Minh City - Vietnam

DIRECTORS

1. NAME		Ms. HO SAU NHIN
Position		Director – Legal Representative
Date of Birth		17 Apr 1964
ID Number/Passport		021926915
ID Issue Date		12 Oct 1993
ID Issue Place		Police Station of Ho Chi Minh City
Resident		No. 178C Lac Long Quan Str - Ward 10 - Tan Binh District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese

2. NAME		Mr. NGUYEN THANH HIEP
Position		Deputy Director
Nationality		Vietnamese
Telephone number		+84 908463287

3. NAME		Ms. LIEU A SY (LIEU MY THO)
Position		Deputy Director
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

Wholesale of waste and scrap and other products n.e.c

Manufacture of plastics products

Manufacture of wearing apparel, except fur apparel

Wholesale of other household products

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		Materials
· Market		India, Japan, Thailand, USA, Korea, Indonesia

EXPORT:
· Types of products		Plastics products
· Market		India, Thailand, Turkey, Iran

BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM PHU THO BRANCH
Address		No 572 To Hien Thanh Str - District 10 - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3862 4820
Fax		(84-8) 3862 4804

2. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK
Address		8^th Floor, VinCom Center, No. 72 Le Thanh Ton Str - District 1 - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3821 0055
Fax		(84-8) 3829 6063

3. ASIA COMMERCIAL BANK LAC LONG QUAN BRANCH
Address		No. 626 Lac Long Quan Str - Ward 5 – 11^th District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3974 5714
Fax		(84-8) 3974 5715

4. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT DISTRICT 11 BRANCH
Address		No.485 Lac Long Quan Str - Ward 5 - District 11 - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3974 4005
Fax		(84-8) 3974 3994

SHAREHOLDERS

1. NAME		Ms. HO SAU NHIN
Position		Director – Legal Representative
Date of Birth		17 Apr 1964
ID Number/Passport		021926915
Issued on		12 Oct 1993
Issued Place		Police Station of Ho Chi Minh City
Resident		No. 178C Lac Long Quan Str - Ward 10 - Tan Binh District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		VND 149,000,000,000
Percentage		45.4%

2. NAME		Mr. LIEU SI TRUONG
ID Number/Passport		024595332
Resident		No. 178C Lac Long Quan Str - Ward 10 - Tan Binh District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		VND 46,000,000,000
Percentage		14.02%

3. NAME		Ms. LIEU A SY (LIEU MY THO)
ID Number/Passport		021709525
Resident		No. 178C Lac Long Quan Str - Ward 10 - Tan Binh District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		VND 73,000,000,000
Percentage		22.26%

4. NAME		Mr. NGUYEN VAN THUAN
ID Number/Passport		020017895
Resident		No. 118A Lac Long Quan Str - Ward 10 - Tan Binh District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		VND 20,000,000,000
Percentage		6.1%

5. NAME		Ms. LIEU SI HUE
ID Number/Passport		024595333
Resident		No. 178C Lac Long Quan Str - Ward 10 - Tan Binh District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		VND 20,000,000,000
Percentage		6.1%

6. NAME		Ms. LIEU SI LINH
ID Number/Passport		024891271
Resident		No. 178C Lac Long Quan Str - Ward 10 - Tan Binh District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		VND 20,000,000,000
Percentage		6.1%

FINANCIAL DATA

BALANCE SHEET

Unit: Million VND
Balance sheet date	31/12/2010	31/12/2009
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	227,118	250,996
I. Cash and cash equivalents	3,030	2,814
1. Cash	3,030	2,814
2. Cash equivalents
II. Short-term investments
1. Short-term investments
2. Provisions for devaluation of short-term investments
III. Accounts receivable	26,854	43,879
1. Receivable from customers	21,744	18,749
2. Prepayments to suppliers	5,110	25,130
3. Inter-company receivable
4. Receivable according to the progress of construction
5. Other receivable
6. Provisions for bad debts
IV. Inventories	195,405	199,466
1. Inventories	195,405	199,466
2. Provisions for devaluation of inventories
V. Other Current Assets	1,829	4,837
1. Short-term prepaid expenses
2. VAT to be deducted	1,829	4,837
3. Taxes and other accounts receivable from the State
4. Other current assets
B. LONG-TERM ASSETS	293,894	277,137
I. Long term accounts 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	261,655	277,137
1. Tangible assets	222,319	204,827
- Historical costs	313,671	273,877
- Accumulated depreciation	-91,352	-69,050
2. Financial leasehold assets
- Historical costs
- Accumulated depreciation
3. Intangible assets		33,035
- Initial costs		36,625
- Accumulated amortization		-3,590
4. Construction-in-progress	39,336	39,275
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	32,239
1. Long-term prepaid expenses	32,239
2. Deferred income tax assets
3. Other long-term assets
VI. Goodwill
1. Goodwill
TOTAL ASSETS	521,012	528,133

LIABILITIES
A- LIABILITIES	209,433	228,805
I. Current liabilities	169,845	161,600
1. Short-term debts and loans	150,433	139,955
2. Payable to suppliers	12,074	16,883
3. Advances from customers	1,233	1,149
4. Taxes and other obligations to the State Budget	6,105	3,613
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	39,588	67,205
1. Long-term accounts payable to suppliers	7,426	1,345
2. Long-term inter-company payable
3. Other long-term payable
4. Long-term debts and loans	31,877	65,644
5. Deferred income tax payable
6. Provisions for unemployment allowances	285	216
7. Provisions for long-term accounts payable
B- OWNER’S EQUITY	311,579	299,328
I. OWNER’S EQUITY	311,579	298,561
1. Capital	288,000	288,000
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	4,559
10. Retained earnings	19,020	10,561
11. Construction investment fund
II. Other sources and funds		767
1. Bonus and welfare funds		767
2. Sources of expenditure
3. Fund to form fixed assets
MINORITY’S INTEREST
TOTAL LIABILITIES AND OWNER’S EQUITY	521,012	528,133

PROFIT & LOSS STATEMENT

Description	FY2010	FY2009
1. Total Sales	427,088	441,999
2. Deduction item	161	700
3. Net revenue	426,927	441,299
4. Costs of goods sold	381,590	388,404
5. Gross profit	45,337	52,895
6. Financial income	3,666	2,370
7. Financial expenses	27,999	30,053
- In which: Loan interest expenses	15,796	13,672
8. Selling expenses	1,321	1,237
9. Administrative overheads	3,794	2,841
10. Net operating profit	15,889	21,134
11. Other income	0	0
12. Other expenses	0	0
13. Other profit /(loss)	0	0
14. Total accounting profit before tax	15,889	21,134
15. Current corporate income tax	1,707	767
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies
18. Profit after tax	14,182	20,367

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2010	FY2009	Average Industry
Current liquidity ratio	1.34	1.55	1.65
Quick liquidity ratio	0.19	0.32	0.95
Inventory circle	1.93	1.95	5.36
Average receive period	22.96	36.29	69.02
Utilizing asset performance	0.82	0.84	1.15
Liability by total assets	40.20	43.32	55.74
Liability by owner's equity	67.22	76.44	197.00
Ebit / Total assets (ROA)	6.08	6.59	11.75
Ebit / Owner's equity (ROE)	10.17	11.63	26.54
Ebit / Total revenue (NPM)	7.42	7.87	10.24
Gross profit / Total revenue (GPM)	10.62	11.97	19.81
*Note:* *The Average Industry was calculated by VietnamCredit based on our own statistical data*

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Fair
Liquidity		Medium
Payment status		Average
Financial Situation		Average
Development trend		Stable
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		By cash or through the bank
Sale Methods		Retailer and Wholesaler

INTERPRETATION ON THE SCORES

The subject was established in 2001 as a limited liability company under the Business Registration No. 4102006522. Currently, the subject is operating under the Business Registration No. 0302407899 with registered capital of VND 328 billion.

The subject specializes in manufacturing plastics products. The main products of the subject are PVC Films, Leatherette, Artificial Leather (PVC Film), Table Cloth, Nylon PVC, Tarpaulin Sheet, Canvas Truck Tent, Hiflex Canvas, PVC Leatherette, Clear PVC Sheet, Oxford Cloth… Almost materials are imported from foreign market such as India, Japan, Thailand, USA, Korea, Indonesia. Its products have been presented throughout the provinces of Vietnam. In addition, the subject exports its products to India, Thailand, Turkey, Iran. The subject as continually expanded production facilities, invested in modern equipment. In the early of 2006, it received the honor credit of the Ministry of Commerce in exporting achievements as well as exploiting new markets.

According to the financial statements, the subject is operating normally. Being compared with FY2009’ figures, turnover and profit after tax decreased slightly in FY 2010. Liability by total assets was low, ROA and ROE were at average level.

In overview, the subject is operating busily. Financial capacity of the subject is acceptable. The subject has capacity to meet small transactions.

APPENDIX

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)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,749		23,896.3	81,559
Industry and Construction	5.53	7.70	85,115		10,630	2,751,975
Trade and Services	6.69	7.52	154,978		14,522	4,939,069

ECONOMIC INDICATORS

			2011	2010		2009
Population (Million person)			87.84	86.93		86.02
Gross Domestic Products (USD billion)			119	102.2		91
GDP Growth (%)			5.89	6.78		5.32
GDP Per Capita (USD/person/year)			1,300	1,160		1,080
Inflation (% Change in Composite CPI)			18.58	11.75		6.88
State Budget Deficit compared with GDP (%)			4.9	5.8		6.9

SERVICE TRADE PERFORMANCE

Billion USD			2011	2010		2009
Exports			96.3	72.2		57.1
Imports			105.8	84.8		69.9
Trade Balance			-9.5	-12.6		-12.8

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.49
UK Pound	1	Rs.84.66
Euro	1	Rs.69.25

INFORMATION DETAILS

Report Prepared by :

NIT

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.