MIRA INFORM REPORT

Report Date :

04.12.2012

IDENTIFICATION DETAILS

Name :	CHEMTECH COMPANY LIMITED

Registered Office :	No. 22 Doc Lap Avenue-Vietnam Singapore Industrial Park, Thuan An Town, Binh Duong Province

Country :	Vietnam

Financials (as on) :	31.12.2010

Date of Incorporation :	2004

Legal Form :	Limited liability company

Line of Business :	Manufacture of plastics in primary forms

No. of Employees :	80

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 :	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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Vietnam

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

vietnam - ECONOMIC OVERVIEW

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
English Name		CHEMTECH COMPANY LIMITED
Vietnamese Name		CONG TY TNHH CHEMTECH
Trade name		CHEMTECH CO., LTD
Type of Business		Limited liability company (Foreign Invested company)
Year Established		2004
Investment Certificate No		463043000087
Date Of Issuance		22 Oct 2007
Place of Issuance		Authority of Vietnam - Singapore Industrial Park
Registered Investment Capital		USD 2,807,000
Chartered capital		USD 2,807,000
Investment Duration		42 years
Tax code		3700603175
Total Employees		80

Historical Identification & Legal form

List

Changed Items

Date of changes

Subject has got former Investment Certificate No: 123/GP-KCN-VS (issued on 04 Oct 2004)

Changed to: 463043000087

22 Oct 2007

ADDRESSES

Head Office
Address		No. 22 Doc Lap Avenue-Vietnam Singapore Industrial Park, Thuan An Town, Binh Duong Province, Vietnam
Telephone		(84-650) 3784 992 / 3767 088
Fax		(84-650) 3784 993
Email		chemtechvsip@vnn.vn
Website		www.chemtechxlpe.com

DIRECTORS

1. NAME		Mr. CHALERMKIAT PHONPERMPOONTAWEE
Position		Director
Nationality		Thailander

2. NAME		Ms. NGUYEN THI ANH DAO
Position		Chief Accountant
Date of Birth		1973
Resident		Binh Duong Province, Vietnam
Nationality		Vietnamese
Qualification		Bachelor

3. NAME		Ms. LAM PHAM NGUYEN NGHI
Position		Accountant
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

Manufacture of plastics in primary forms

IMPORT & EXPORT ACTIVITIES

IMPORT:
Market		The subject imports materials from India and Thailand

EXPORT:
Market		Thailand, Malaysia, Singapore, Sri Lanka, India, Pakistan and several countries in South America

BANKERS

1. THE BANGKOK BANK
Address		Habour View Tower, No. 35 Nguyen Hue Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Telephone		(84-8) 3821 4396
Fax		(84-8) 3821 3772

2. JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM BINH DUONG BRANCH
Address		No. 314 Binh Duong Highway Phu Hoa Ward, Thu Dau Mot City, Binh Duong Province, Vietnam
Telephone		(84-650) 3898 989
Fax		(84-650) 3842 321

SHAREHOLDERS

NAME		TPC PASTE RESIN COMPANY LIMITED
Business Registration		0105536090843
Address		No.183 Rajanakarn Building - 16th Floors - South Sathorn Road - Yanawa Sub-District - Sathorn District , Bangkok 10120, Thailand
Date of Registration		10 Aug 1993
Representer		Mr. KANET KHAOCHAN
Date of Birth		1953
Nationality		Thai
Tel		+662 676 6200
Fax		+662 676 6206
Percentage		100%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010	31/12/2009
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	77,295,517,409	48,346,108,000
I. Cash and cash equivalents	11,341,288,361	7,631,255,000
1. Cash	11,341,288,361	7,631,255,000
2. Cash equivalents	0	0
II. Short-term investments	0	0
1. Short-term investments	0	0
2. Provisions for devaluation of short-term investments	0	0
III. Accounts receivable	29,226,386,155	22,603,065,000
1. Receivable from customers	25,776,437,500	22,603,065,000
2. Prepayments to suppliers	3,433,451,600	0
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	16,497,055	0
6. Provisions for bad debts	0	0
IV. Inventories	32,711,946,886	16,099,213,000
1. Inventories	32,711,946,886	16,099,213,000
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	4,015,896,007	2,012,575,000
1. Short-term prepaid expenses	0	0
2. VAT to be deducted	3,994,696,007	1,979,553,000
3. Taxes and other accounts receivable from the State	0	0
4. Other current assets	21,200,000	33,022,000
B. LONG-TERM ASSETS	13,132,316,612	9,509,899,000
I. Long term accounts receivable	0	0
1. Long term account receivable from customers	0	0
2. Working capital in affiliates	0	0
3. Long-term inter-company receivable	0	0
4. Other long-term receivable	0	0
5. Provisions for bad debts from customers	0	0
II. Fixed assets	12,293,234,761	8,735,250,000
1. Tangible assets	12,293,234,761	8,704,242,000
- Historical costs	20,233,671,802	15,377,631,000
- Accumulated depreciation	-7,940,437,041	-6,673,389,000
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	0	31,008,000
- Initial costs	37,896,008	44,764,000
- Accumulated amortization	-37,896,008	-13,756,000
4. Construction-in-progress	0	0
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	0	0
1. Investments in affiliates	0	0
2. Investments in business concerns and joint ventures	0	0
3. Other long-term investments	0	0
4. Provisions for devaluation of long-term investments	0	0
V. Other long-term assets	839,081,851	774,649,000
1. Long-term prepaid expenses	34,159,951	33,592,000
2. Deferred income tax assets	0	0
3. Other long-term assets	804,921,900	741,057,000
VI. Goodwill	0
1. Goodwill	0
TOTAL ASSETS	90,427,834,021	57,856,007,000

LIABILITIES
A- LIABILITIES	45,245,514,141	23,260,845,000
I. Current liabilities	45,245,514,141	23,260,845,000
1. Short-term debts and loans	38,701,918,124	20,029,230,000
2. Payable to suppliers	5,511,277,897	1,906,308,000
3. Advances from customers	0	1,024,689,000
4. Taxes and other obligations to the State Budget	6,838,967	8,778,000
5. Payable to employees	2,940,000	0
6. Accrued expenses	1,003,951,493	283,100,000
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	18,587,660	8,740,000
10. Provisions for short-term accounts payable	0	0
11. Bonus and welfare funds	0	0
II. Long-Term Liabilities	0	0
1. Long-term accounts payable to suppliers	0	0
2. Long-term inter-company payable	0	0
3. Other long-term payable	0	0
4. Long-term debts and loans	0	0
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	0	0
7. Provisions for long-term accounts payable	0	0
8. Unearned Revenue	0	0
9. Science and technology development fund	0	0
B- OWNER’S EQUITY	45,182,319,880	34,595,162,000
I. OWNER’S EQUITY	45,182,319,880	34,595,162,000
1. Capital	46,872,550,000	53,333,000,000
2. Share premiums	0	0
3. Other sources of capital	0	0
4. Treasury stocks	0	0
5. Differences on asset revaluation	0	0
6. Foreign exchange differences	0	-2,589,453,000
7. Business promotion fund	0	0
8. Financial reserved fund	0	0
9. Other funds	0	0
10. Retained earnings	-1,690,230,120	-16,148,385,000
11. Construction investment fund	0	0
12. Business arrangement supporting fund	0	0
II. Other sources and funds	0	0
1. Bonus and welfare funds (Elder form)	0	0
2. Sources of expenditure	0	0
3. Fund to form fixed assets	0	0
MINORITY’S INTEREST	0
TOTAL LIABILITIES AND OWNER’S EQUITY	90,427,834,021	57,856,007,000

PROFIT & LOSS STATEMENT

Description	FY2010	FY2009
1. Total Sales	177,426,885,665	111,003,795,000
2. Deduction item	709,407,617	78,983,000
3. Net revenue	176,717,478,048	110,924,812,000
4. Costs of goods sold	151,154,736,410	102,125,532,000
5. Gross profit	25,562,741,638	8,799,280,000
6. Financial income	1,202,665,066	1,242,809,000
7. Financial expenses	2,198,649,061	1,484,755,000
- In which: Loan interest expenses	1,151,637,703	656,374,000
8. Selling expenses	8,332,847,777	4,439,977,000
9. Administrative overheads	3,836,192,267	2,379,294,000
10. Net operating profit	12,397,717,599	1,738,063,000
11. Other income	754,326,364	374,927,000
12. Other expenses	91,105,489	0
13. Other profit /(loss)	663,220,875	374,927,000
14. Total accounting profit before tax	13,060,938,474	2,112,990,000
15. Current corporate income tax	0	0
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	13,060,938,474	2,112,990,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2010	FY2009	Average Industry
Current liquidity ratio	1.71	2.08	1.65
Quick liquidity ratio	0.99	1.39	0.95
Inventory circle	6.25	6.34	5.36
Average receive period	60.37	74.38	69.02
Utilizing asset performance	1.95	1.92	1.15
Liability by total assets	50.03	40.20	55.74
Liability by owner's equity	100.14	67.24	197.00
Ebit / Total assets (ROA)	15.72	4.79	11.75
Ebit / Owner's equity (ROE)	31.46	8.01	26.54
Ebit / Total revenue (NPM)	8.01	2.49	10.24
Gross profit / Total revenue (GPM)	14.41	7.93	19.81
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Normal
Liquidity		Medium/High
Payment status		Above Average
Financial Situation		Average
Development trend		Normal
Litigation data		No Recorded
Bankruptcy		No Recorded
Payment Methods		Direct payment or through its corresponding bank.
Sale Methods		To contracts
Public opinion		Normal

INTERPRETATION ON THE SCORES

The subject - CHEMTECH COMPANY LIMITED was established in 2004 as a 100% foreign company. The subject is subsidiary company of TPC PASTE RESIN COMPANY LIMITED which is one of the big PVC manufacturers in South East Asia. At present, the subject is operating under investment certificate no. 463043000087 with registered investment capital USD 2,807,000.

The subject was established in order to manufacture and distribute XLPE (Crosslink Polyethylene) resin using in plastic industrial and electrical cable. The source of materials and market of the subject are stable. All of the subject raw materials are imported from Thailand and India.

The subject is the first and single manufacturer of XLPE in Vietnam under Sioplas process (two compositions). Through its own product development and working closely with customer’s requirement, the subject has supplied from both domestic and oversea customers such as Thailand, Malaysia, Singapore, Sri Lanka, India, Pakistan and several countries in South America. Its products are also being tested in other regions likes Middle East and Africa.

In general, the position of the subject in the industry is normal. In comparison with other enterprises operating in the same field, the subject is a small enterprise with normal operation. Its financial capacity is normal. The subject has capacity to meet small financial commitments.

INDUSTRY DATA

Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2010	Total employees 2011 *(Thous.pers.)*	Annual average capital of enterprises 2010 *(billion dongs)*
Industry code	2011	2010	Total enterprises 2010	Total employees 2011 *(Thous.pers.)*
Agriculture, Forestry and Fishing	4.00	2.78	8,887	24,362.9	95,227
Industry and Construction	5.53	7.70	95,217	10,718.9	3,641,376
Trade and Services	6.69	7.52	187,195	15,270.2	6,957,082

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.54.56
UK Pound	1	Rs.87.45
Euro	1	Rs.71.08

INFORMATION DETAILS

Report Prepared by :

SDA

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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