MIRA INFORM REPORT

Report Date :

18.08.2012

IDENTIFICATION DETAILS

Name :	LANG SON TRADE JOINT STOCK COMPANY
Registered Office :	No. 209 Tran Dang Ninh Str, Tam Thanh Ward, Lang Son City, Lang Son Province,
Country :	Viet Nam
Financials (as on) :	29.06.2012
Date of Incorporation :	1991
Com. Reg. No.:	4900142205
Legal Form :	Joint stock company
Line of Business :	Trading general good such as: consumer goods and devices, refractory, gasoline, carbon electrodes, ferro silic and silic mangan, etc.
No. of Employees :	220

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
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	LANG SON TRADE JOINT STOCK COMPANY
Registered Vietnamese Name	CONG TY CO PHAN THUONG MAI LANG SON
Registered short name	LATRACO.,JS
Type of Business	Joint stock company
Year Established	1991
Business Registration No.	4900142205
Date of Registration	29 Jun 2012
Place of Registration	Lang Son Department of Planning and Investment
Chartered capital	VND 15,000,000,000
Status	Unlisted
Tax code	4900142205
Total Employees	220

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 1403000140 Changed to: 4900142205	29 Jun 2012
2	Subject has got former Abbreviated Name: LANG SON TRADE JSC Changed to: LATRACO.,JS	29 Jun 2012
3	Subject has got former Registered English Name: LANG SON GENERAL TRADE COMPANY Changed to: LANG SON TRADE JOINT STOCK COMPANY	N/A

ADDRESSES
Head Office
Address	No. 209 Tran Dang Ninh Str, Tam Thanh Ward, Lang Son City, Lang Son Province, Vietnam
Telephone	84-25 3870154
Fax	84-25 3870970
Website	http://www.latraco.com.vn
Branch in Ha Noi
Address	No. 475 Ngoc Lam Str, Gia Lam District, Ha Noi City, Vietnam
Telephone	84-4 38272812
Fax	84-4 38272845
Branch in Lang Son
Address	No. 208 Tran Dang Ninh Street, Tam Thanh Ward, Lang Son City, Lang Son Province, Vietnam
Branch in Lang Son
Address	An Ninh Zone Huu Lung Town, Huu Lung District, Lang Son Province, Vietnam
Branch in Lang Son
Address	Thong Nhat I zone Dong Mo Town, Chi Lang District, Lang Son Province, Vietnam
Branch in Lang Son
Address	Zone I Dinh Lap Town, Dinh Lap District, Lang Son Province, Vietnam
Branch in Lang Son
Address	No. 142 Bo Song Street, Loc Binh Town, Loc Binh District, Lang Son Province, Vietnam
Branch in Lang Son
Address	No. 26 Minh Khai Street, Cao Loc Town, Cao Loc District, Lang Son Province, Vietnam
Branch in Lang Son
Address	Zone I Na Sam Town, Van Lang District, Lang Son Province, Vietnam
Branch in Lang Son
Address	Zone II That Khe Town, Trang Dinh District, Lang Son Province, Vietnam
Note: The subject has 14 branches in total located in Lang Son Province and Ha Noi City.

DIRECTORS
1. NAME	Mr. LY XUAN THANH
Position	Chairman
Contact address	No. 209 Tran Dang Ninh Str, Tam Thanh Ward, Lang Son City, Lang Son Province, Vietnam
Nationality	Vietnamese
2. NAME	Mr. LAM PHI KHANH
Position	General Director
Date of Birth	23 Jun 1958
ID Number/Passport	080797893
ID Issue Date	06 Apr 2007
ID Issue Place	Lang Son Police Dept
Resident	No. 7/4 Nguyen Thai Hoc Street, Chi Lang Ward, Lang Son City, Lang Son Province, Vietnam
Current resident	No. 7/4 Nguyen Thai Hoc Street, Chi Lang Ward, Lang Son City, Lang Son Province, Vietnam
Nationality	Vietnamese
3. NAME	Mr. NONG KIM TIEN
Position	Chief Accountant
Contact address	No. 209 Tran Dang Ninh Str, Tam Thanh Ward, Lang Son City, Lang Son Province, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	(84-25) 3710169 / +84 949230349
4. NAME	Mr. DANG TRUNG LAP
Position	Deputy General Director
Date of Birth	06 Jun 1956
ID Number/Passport	080956956
ID Issue Date	20 Jul 1995
ID Issue Place	Police of Lang Son Province
Resident	No. 6B Ly Thuong Kiet Str - Tam Thanh Ward, Lang Son City, Lang Son Province, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	+84 912722668

BUSINESS NATURE AND ACTIVITIES

The subject operates in following business lines:
- Trading general good such as: consumer goods and devices, refractory, gasoline, carbon electrodes, ferro silic and silic mangan, etc.
- Trading in hotel, restaurants, tourism services
- Trading and producing wines with brand name Thien Son

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Ferro silic, silic mangan, refractory, carbon electrode, etc
· Market	China
Note: The main import market of the subject is China.
EXPORT:
· Market	China, Korea, USA

BANKERS
1. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE LANG SON BRANCH
Address	No.51 Le Loi str, Lang Son City, Lang Son Province, Vietnam
Telephone	(84-25) 3876689
2. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - LANG SON BRANCH
Address	No. 1 Hoang Van Thu Str.,, Lang Son City, Lang Son Province, Vietnam
Telephone	(84-25) 3813 078

SHAREHOLDERS
Following is the list of founding shareholders according to the business registration when the subject was converted to Joint Stock Company. Currently, the subject is 100% belonged to non-state shareholders. The State now does not have stocks in the subject.
1. NAME	Mr. DANG TRUNG LAP
Position	Deputy General Director
Date of Birth	06 Jun 1956
ID Number/Passport	080956956
Issued on	20 Jul 1995
Issued Place	Police of Lang Son Province
Resident	No. 6B Ly Thuong Kiet Str - Tam Thanh Ward, Lang Son City, Lang Son Province, Vietnam
Mobile phone	+84 912722668
Nationality	Vietnamese
Number of Shares	6,000
2. NAME	Mr. NHU DUC PHONG
Date of Birth	1958
Resident	No. 8 Phai Ve Road - Dong Kinh Ward, Lang Son City, Lang Son Province, Vietnam
Mobile phone	+84 25 874126
Nationality	Vietnamese
Number of Shares	6,088
3. NAME	Ms. TRIEU TU QUYEN
Date of Birth	1964
Resident	Ly Thuong Kiet Str - Tam Thanh Ward, Lang Son City, Lang Son Province, Vietnam
Nationality	Vietnamese
Number of Shares	6,088
4. NAME	Ms. HA THI HONG
Date of Birth	01 Jan 1956
Resident	No. 145 Tran Dang Ninh road - Tam Thanh Ward, Lang Son City, Lang Son Province, Vietnam
Nationality	Vietnamese
Number of Shares	6,000
5. NAME	Mr. NGUYEN ANH TUAN
Resident	No. 145 Tran Dang Ninh road - Tam Thanh Ward, Lang Son City, Lang Son Province, Vietnam
Nationality	Vietnamese
Number of Shares	6,688
6. NAME	STATE CAPITAL
Number of shares	858,821

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010	31/12/2009
Number of weeks	52	52	52
Audit status	Audited	Audited	Unknown
ASSETS
A – CURRENT ASSETS	111,721,975,445	141,663,561,135	80,045,708,843
I. Cash and cash equivalents	13,541,869,586	14,436,567,433	6,314,725,993
1. Cash	13,541,869,586	14,436,567,433	6,314,725,993
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	22,784,044,841	31,653,880,802	20,379,471,596
1. Receivable from customers	17,936,564,172	23,796,168,592	9,280,676,134
2. Prepayments to suppliers	299,145,680	170,000,000	1,922,441,477
3. Inter-company receivable	3,738,938,478	7,209,021,439	7,981,253,842
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	809,396,511	478,690,771	1,195,100,143
6. Provisions for bad debts	0	0	0
IV. Inventories	41,751,115,451	32,607,053,023	21,975,856,932
1. Inventories	41,751,115,451	32,607,053,023	22,756,424,082
2. Provisions for devaluation of inventories	0	0	-780,567,150
V. Other Current Assets	33,644,945,567	62,966,059,877	31,375,654,322
1. Short-term prepaid expenses	68,479,983	89,993,758	228,090,331
2. VAT to be deducted	1,163,179,043	1,169,152,743	31,838,212
3. Taxes and other accounts receivable from the State	0	2,105,007	23,593,959
4. Other current assets	32,413,286,541	61,704,808,369	31,092,131,820
B. LONG-TERM ASSETS	19,903,270,621	17,746,667,463	13,999,439,204
I. Long term accounts receivable	9,186,500	9,186,500	12,659,500
1. Long term account receivable from customers	0	0	0
2. Working capital in affiliates	0	0	0
3. Long-term inter-company receivable	9,186,500	9,186,500	12,659,500
4. Other long-term receivable	0	0	0
5. Provisions for bad debts from customers	0	0	0
II. Fixed assets	18,096,880,164	16,009,262,331	12,461,345,498
1. Tangible assets	12,890,339,499	13,791,662,331	10,913,341,623
- Historical costs	17,837,936,183	17,752,775,547	13,963,385,513
- Accumulated depreciation	-4,947,596,684	-3,961,113,216	-3,050,043,890
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	140,000,000	150,000,000	1,506,000,000
- Initial costs	200,000,000	200,000,000	1,546,000,000
- Accumulated amortization	-60,000,000	-50,000,000	-40,000,000
4. Construction-in-progress	5,066,540,665	2,067,600,000	42,003,875
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	1,093,463,928	1,093,463,928	1,093,463,928
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	1,093,463,928	1,093,463,928	1,093,463,928
3. Other long-term investments	0	0	0
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	703,740,029	634,754,704	431,970,278
1. Long-term prepaid expenses	453,740,029	384,754,704	181,970,278
2. Deferred income tax assets	0	0	0
3. Other long-term assets	250,000,000	250,000,000	250,000,000
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	131,625,246,066	159,410,228,598	94,045,148,047
LIABILITIES
A- LIABILITIES	112,165,669,534	139,351,159,588	74,506,316,320
I. Current liabilities	108,803,837,292	137,016,184,786	73,817,606,037
1. Short-term debts and loans	47,244,102,819	81,811,813,448	36,919,009,834
2. Payable to suppliers	47,186,656,363	35,976,848,279	21,595,923,221
3. Advances from customers	58,948,000	25,948,000	315,313,020
4. Taxes and other obligations to the State Budget	235,187,004	432,655,797	2,501,962,580
5. Payable to employees	37,020,729	245,116,373	255,553,703
6. Accrued expenses	460,796,777	1,242,851,224	1,544,279,310
7. Inter-company payable	3,594,178,676	7,208,812,577	7,802,539,074
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	9,827,121,907	9,847,688,865	2,847,922,926
10. Provisions for short-term accounts payable	0	0	35,102,369
11. Bonus and welfare funds	159,825,017	224,450,223	0
II. Long-Term Liabilities	3,361,832,242	2,334,974,802	688,710,283
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	41,787,400	54,736,700	75,357,700
4. Long-term debts and loans	2,457,580,108	1,545,938,575	122,277,738
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	679,948,366	567,879,983	403,472,572
7. Provisions for long-term accounts payable	0	0	87,602,273
8. Unearned Revenue	182,516,368	166,419,544	0
9. Science and technology development fund	0	0	0
B- OWNER’S EQUITY	19,459,576,532	20,059,069,010	19,538,831,727
I. OWNER’S EQUITY	19,459,576,532	20,059,069,010	19,538,831,727
1. Capital	15,000,000,000	15,000,000,000	15,000,000,000
2. Share premiums	0	0	0
3. Other sources of capital	62,400,000	62,400,000	62,400,000
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	0	69,359,105	122,560,601
7. Business promotion fund	1,628,938,212	1,460,836,471	1,038,596,471
8. Financial reserved fund	532,283,169	448,232,299	237,112,299
9. Other funds	0	0	0
10. Retained earnings	2,035,517,457	2,817,803,441	2,877,724,662
11. Construction investment fund	200,437,694	200,437,694	200,437,694
12. Business arrangement supporting fund	0	0	0
II. Other sources and funds	0	0	0
1. Sources of expenditure	0	0	0
2. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	131,625,246,066	159,410,228,598	94,045,148,047

PROFIT & LOSS STATEMENT
Description	FY2011	FY2010
1. Total Sales	514,574,815,511	546,199,487,601
2. Deduction item	9,700,000	10,093,000
3. Net revenue	514,565,115,511	546,189,394,601
4. Costs of goods sold	498,086,707,630	528,968,070,851
5. Gross profit	16,478,407,881	17,221,323,750
6. Financial income	3,196,046,552	957,701,141
7. Financial expenses	6,330,061,477	5,468,182,272
- In which: Loan interest expenses	6,219,336,454	5,352,886,222
8. Selling expenses	7,441,505,747	5,605,354,922
9. Administrative overheads	5,012,760,592	5,063,669,852
10. Net operating profit	890,126,617	2,041,817,845
11. Other income	376,130,247	348,845,468
12. Other expenses	72,909,389	122,715,384
13. Other profit /(loss)	303,220,858	226,130,084
14. Total accounting profit before tax	1,193,347,475	2,267,947,929
15. Current corporate income tax	300,179,444	284,465,262
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	893,168,031	1,983,482,667

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	1.03	1.03	1.08	1.21
Quick liquidity ratio	0.64	0.80	0.79	0.72
Inventory circle	13.40	19.38	-	12.25
Average receive period	16.16	21.15	-	51.49
Utilizing asset performance	3.91	3.43	-	2.30
Liability by total assets	85.22	87.42	79.22	59.32
Liability by owner's equity	576.40	694.70	381.32	229.17
Ebit / Total assets (ROA)	5.63	4.78	-	8.16
Ebit / Owner's equity (ROE)	38.09	37.99	-	24.08
Ebit / Total revenue (NPM)	1.44	1.40	-	6.61
Gross profit / Total revenue (GPM)	3.20	3.15	-	16.82
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CASH FLOW STATEMENT
(Direct method)
Items	FY2011	FY2010
I. Cash flows from operating activities
1.Cash received from customers	462,404,837,569	198,067,828,353
2. Cash paid to suppliers	-576,874,036,316	-125,222,917,284
3. Cash paid to employees	-8,558,065,042	-5,635,443,206
4. Interest paid	-2,949,113,096	-1,027,481,367
5. Income taxes paid	-453,215,262	-319,223,730
6. Other operating cash receipts	210,269,100,875	240,531,845,179
7. Other operating payments	-51,000,973,282	-65,850,962,263
Net cash flows from operating activities	32,838,535,446	240,543,645,682
II. Cash flows from investing activities
1. Purchases and construction of fixed assets and other long-term assets	-441,476,067	-727,198,182
2. Gains from disposals and liquidation of fixed assets and other long-term assets	55,000,000	5,090,910
3. Loans given and purchases of debt instruments of other entities	0	0
4. Recovery of loans given and disposals of debt instruments of other entities	1,362,761,122	0
5. Investments into other entities	0	0
6. Withdrawals of investments in other entities	0	0
7. Receipts of loan interests, dividends and profit shared	2,446,462,506	490,103,478
Net cash flows from investing activities	3,422,747,561	-232,003,794
III. Cash flows from financing activities
1. Gains from stock issuance and capital contributions from shareholders	-13,962,925	0
2. Repayment for capital contributions and re-purchases of stocks already issues	0	0
3. Short-term and long-term loans received	242,313,759,851	25,258,573,396
4. Loan principal amounts repaid	-279,426,693,366	-256,287,373,844
5. Payments for financial leasehold assets	-29,084,414	0
6. Dividends and profit already paid to the owners	0	-1,161,000,000
Net cash flows from financing activities	-37,155,980,854	-232,189,800,448
Net cash flows during the year	-894,697,847	8,121,841,440
Beginning cash and cash equivalents	14,436,567,433	6,314,725,993
Effects of fluctuations in foreign exchange rates	0	0
Ending cash and cash equivalents	13,541,869,586	14,436,567,433

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Fair
Liquidity	High
Payment status	Above Average
Financial Situation	Above Average
Development trend	Uptrend
Litigation data	No
Bankruptcy	No
Payment Methods	L/C, T/T
Sale Methods	Retailer and Wholesaler
Public opinion	Average

INTERPRETATION ON THE SCORES

The subject was founded in 1991 as a State - Owned Company. In 2006, the subject was capitalized and The State still was the key shareholder with the capital ratio of 57%. Since Oct 2010, the subject was 100% belonged to non-state shareholders. The State now does not have stocks in the subject. Currently, the subject is operating under the business registration No. 4900142205 with the chartered capital of VND 15 billion.

The subject's head office is located at No. 209, Tran Dang Ninh Street, Tam Thanh Ward, Lang Son City, Lang Son Province, Viet Nam. In addition, it has 14 branches in Lang Son Province and Ha Noi City.

At the first times of establishment, the subject's main function was to buy salt and oil and supply for remote areas. Currently, the business lines of the subject are expanding to trade more kinds of goods. Its products include consumer goods and devices, refractory, carbon electrodes, gasoline, ferro silic and silic mangan, etc. The subject also provides hotel, restaurants, tourism services; temporary import for re-export services. In addition, it also products wines with the brand name Thien Son. The company’s main import market is China.

The company’s financial situation is considered above average. It is ranked as a medium – size company in the industry. The value of the company’s total assets at the end of 2011 was VND 131.6 billion. According to the balance sheet, the company’s assets were mainly financed by liability. In 2011, liability by total assets was 85.22%, higher than average industry. The self – financing ability of the subject is considered low. The company’s total sales in 2011 were VND 514.6 billion; went down VND 31.6 billion compared to 2010. Looking at the financial ratio table, the profitability of the subject is normal.

In general, the subject is a medium company in the industry. It can meet normal financial commitments.

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

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.70
UK Pound	1	Rs.87.54
Euro	1	Rs.68.85

INFORMATION DETAILS

Report Prepared by :

PDT

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.