MIRA INFORM REPORT

Report Date :

04.12.2012

IDENTIFICATION DETAILS

Name :	TTK TRADING & SERVICE COMPANY LIMITED

Registered Office :	D17 Nguyen Hong Dao St, Ward 14, Tan Binh District, Ho Chi Minh City

Country :	Vietnam

Financials (as on) :	31.12.2009

Date of Incorporation :	2003

Reg. No.:	0302930097

Legal Form :	Limited liability company

Line of Business :	The subject is specializing in trading of dyes, pigments, glue and exporting agricultural products

No. of Employees :	35

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 :	Unknown
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
Translation English Name		TTK TRADING & SERVICE COMPANY LIMITED
Registration Vietnamese Name		CONG TY TNHH THUONG MAI - DICH VU T.T.K
Another English name		T.T.K TRADING & SERVICE COMPANY LIMITED
Transacted name		TTK CHEMICALS CORPORATION LTD
Type of Business		Limited liability company
Year Established		2003
Business Registration No.		0302930097
Date of latest (13^th) adjustment		20 Apr 2012
Place of Registration		Business Registration Office - Planning and Investment Department of Ho Chi Minh City
Current registered capital		VND 30,000,000,000
Tax code		0302930097
Total Employees		35

Historical Identification & Legal form

List

Changed Items

Subject has got former registered capital: 20,000,000,000 VND

Changed to: 30,000,000,000 VND

Subject has got former Business Registration No: 4102015441 issued on 29 Apr 2003

Changed to: 0302930097

ADDRESSES

Head Office
Address		D17 Nguyen Hong Dao St, Ward 14, Tan Binh District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 3842 8208
Fax		(84-8) 3842 8209
Email		ttkco@hcm.vnn.vn
Website		www.ttkco.com
Notes: The ward is 14 (not 24 as your given.)
Warehouse
Address		3/1B Tien Lan Hamlet, Ba Diem Commune, Hoc Mon Dist, Ho Chi Minh City, Vietnam

Representative office
Address		Duyen Thai Industrial Zone, Thuong Tin Dist, Ha Noi City, Vietnam

DIRECTORS

1. NAME		Ms. NGUYEN MAI BICH TUYEN
Position		Chairwoman
ID Number/Passport		024110932
Resident		No. 348/26A Hoang Van Thu Str, Ward 4, Tan Binh District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Tel/Mobil phone		+84 908 666 065
Qualification		Bachelor

2. NAME		Mr. VU VAN HIEN
Position		Director
Date of Birth		08 Dec 1977
ID Number/Passport		151641761
ID Issue Date		06 May 2003
ID Issue Place		Police Station of Thai Binh Province
Resident		Group 26P Tran Lam Str, Thai Binh City, Thai Binh Province, Vietnam
Current resident		25 Pho Quang Str, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Email		ttk@ttkco.com
Qualification		Management

3. NAME		Mr. BANH MINH DAT
Position		Technology Director
Nationality		Vietnamese
Email		technical@ttkco.com

4. NAME		Mr. TRAN PHAN TE
Position		Deputy Director
ID Number/Passport		022769280
Resident		C4-O2 - An Loc Tenement Zone - Nguyen Oanh Ward 17, Go Vap District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Email		sale@ttkco.com

5. NAME		Ms. TRUONG CAM HONG
Position		Financial Manager
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is specializing in trading of dyes, pigments, glue and exporting agricultural products
The subject registered in the following lines of business:

Trading in chemical for textile, rubber, cosmetic, machinery, household appliance, office stationary, handicraft, and material

Trading in confectionary, packaging material

Commercial service, goods consignment agent, building material

Wholesale of agricultural raw materials (except wood, bamboo) and live animals

Wholesale of food

Manufacture of bakery products

Manufacture of cocoa, chocolate and sugar confectionery

Wholesale of other machinery and equipment n.e.c

Other retail sale of new goods in specialized stores

Wholesale on a fee or contract basis

Wholesale of construction materials, installation supplies

Manufacture of basic chemicals

IMPORT & EXPORT ACTIVITIES

IMPORT:
Market		China, Thailand, Cambodia Taiwan, Republic of Czech, India, Korea, Malaysia, Japan, Indonesia, USA

EXPORT:
Types of products		Bean
Market		Malaysia

BANKERS

1. ASIA COMMERCIAL BANK CONG HOA BRANCH
Address		No.463 - 465 Cong Hoa Str, Ward 15, Tan Binh District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 3810 5518
Fax		(84-8) 3810 2770

2. MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD - HO CHI MINH BRANCH
Address		No.5B Ton Duc Thang Str, District 1, Ho Chi Minh City, Vietnam
Telephone		(84-8) 38225697
Fax		(84-8) 38225698
SWIFT Code		ICBCVNVX

SHAREHOLDERS

1. NAME		Ms. NGUYEN MAI BICH TUYEN
Position		Chairwoman
ID Number/Passport		024110932
Resident		No. 348/26A Hoang Van Thu Str, Ward 4, Tan Binh District, Ho Chi Minh City, Vietnam
Mobile phone		++84 908 666 065
Nationality		Vietnamese
Value of shares		VND 25,000,000,000
Percentage		83.3%

2. NAME		Mr. TRAN PHAN TE
Date of Birth		18 Feb 1974
ID Number/Passport		022769280
Resident		C4-O2 - An Loc Tenement Zone - Nguyen Oanh Ward 17, Go Vap District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Value of shares		VND 5,000,000,000
Percentage		16.7%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2009	31/12/2008
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	73,384,976,654	61,161,239,825
I. Cash and cash equivalents	6,120,711,861	2,072,721,127
1. Cash	6,120,711,861	2,072,721,127
2. Cash equivalents	0	0
II. Short-term investments	8,112,062,800	0
1. Short-term investments	8,112,062,800	0
2. Provisions for devaluation of short-term investments	0	0
III. Accounts receivable	20,031,577,421	17,947,592,270
1. Receivable from customers	19,247,106,611	17,312,332,913
2. Prepayments to suppliers	784,470,810	635,259,357
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	0	0
6. Provisions for bad debts	0	0
IV. Inventories	38,925,832,862	39,120,667,462
1. Inventories	38,925,832,862	39,120,667,462
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	194,791,710	2,020,258,966
1. Short-term prepaid expenses	0	115,675,704
2. VAT to be deducted	188,652,105	1,833,896,196
3. Taxes and other accounts receivable from the State	6,139,605	70,687,066
4. Other current assets	0	0
B. LONG-TERM ASSETS	1,251,565,891	539,351,489
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	1,251,565,891	539,351,489
1. Tangible assets	1,251,565,891	539,351,489
- Historical costs	1,770,568,583	858,649,119
- Accumulated depreciation	-519,002,692	-319,297,630
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	0	0
- Initial costs	0	0
- Accumulated amortization	0	0
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	0	0
1. Long-term prepaid expenses	0	0
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
TOTAL ASSETS	74,636,542,545	61,700,591,314

LIABILITIES
A- LIABILITIES	47,704,443,548	38,535,580,464
I. Current liabilities	47,704,443,548	38,535,580,464
1. Short-term debts and loans	0	0
2. Payable to suppliers	17,234,615,029	10,993,812,452
3. Advances from customers	1,794,729,464	526,188,136
4. Taxes and other obligations to the State Budget	324,541,055	15,021,876
5. Payable to employees	0	0
6. Accrued expenses	650,000,000	0
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	27,700,558,000	27,000,558,000
10. Provisions for short-term accounts payable	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
B- OWNER’S EQUITY	26,932,098,997	23,165,010,850
I. OWNER’S EQUITY	26,932,098,997	23,165,010,850
1. Capital	20,000,000,000	20,000,000,000
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	0
7. Business promotion fund	0	0
8. Financial reserved fund	0	0
9. Other funds	0	0
10. Retained earnings	6,932,098,997	3,165,010,850
11. Construction investment fund	0	0
II. Other sources and funds	0	0
1. Bonus and welfare funds	0	0
2. Sources of expenditure	0	0
3. Fund to form fixed assets	0
MINORITY’S INTEREST	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	74,636,542,545	61,700,591,314

PROFIT & LOSS STATEMENT

Description	FY2009	FY2008
1. Total Sales	102,528,197,586	100,468,162,787
2. Deduction item	499,601,900	49,720,200
3. Net revenue	102,028,595,686	100,418,442,587
4. Costs of goods sold	87,667,993,987	88,458,729,702
5. Gross profit	14,360,601,699	11,959,712,885
6. Financial income	187,720,054	27,352,592
7. Financial expenses	3,109,559,727	2,722,052,075
- In which: Loan interest expenses
8. Selling expenses	4,685,167,985	4,534,243,669
9. Administrative overheads	3,332,093,361	4,525,638,216
10. Net operating profit	3,421,500,680	205,131,517
11. Other income	0	3,118,234
12. Other expenses	0	2,001,026
13. Other profit /(loss)	0	1,117,208
14. Total accounting profit before tax	3,421,500,680	206,248,725
15. Current corporate income tax	598,762,616	57,749,643
16. Deferred corporate income tax	0	0
18. Profit after tax	2,822,738,064	148,499,082

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2009	FY2008	Average Industry
Current liquidity ratio	1.54	1.59	1.45
Quick liquidity ratio	0.72	0.57	0.87
Inventory circle	2.25	2.26	7.48
Average receive period	71.66	65.24	64.15
Utilizing asset performance	1.37	1.63	2.38
Liability by total assets	63.92	62.46	69.14
Liability by owner's equity	177.13	166.35	281.46
Ebit / Total assets (ROA)	4.58	0.33	10.33
Ebit / Owner's equity (ROE)	12.70	0.89	35.61
Ebit / Total revenue (NPM)	3.34	0.21	4.71
Gross profit / Total revenue (GPM)	14.01	11.90	15.43
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Good
Liquidity		N/A
Payment status		N/A
Financial Situation		Average
Development trend		N/A
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		Direct payment or through its corresponding bank (L/C, T/T)
Sale Methods		Retailer and Wholesaler

INTERPRETATION ON THE SCORES

The subject was founded in 1988. Until 2003, TTK TRADING & SERVICE COMPANY LIMITED was established under business registration No.4102015441. The subject’s head office located at D17 Nguyen Hong Dao Str, Ward 14, Hochiminh City with total area about 800 sqm.

The subject is trading in dyes and pigments, such as dying textile, cloth printing, printing ink, paint, paper, timber, rubber, rubber, plastic packaging, color & auxiliaries…The subject imports chemical from China, Taiwan, India, Korea, Indonesia, Malaysia, Thailand, Cambodia, Republic of Czech, USA and Japan. The subject also exports bean to Malaysia. The subject has representative agencies in Taiwan, Cambodia and USA so it has advantages for import procedures and seeking products with competitive price.

The subject is representing for International Groups like: Yule Catto, Synthomer, Revertex, Chang Chun Petrochemical, Dairen Chemical. The strength of the subject is the diversification in its products and suppliers, which are selected the best quality products and best service from its partner. Now the subject is sole agent of Synthomer Vietnam. Synthomer Vietnam located at Song Than Industrial Park - Binh Duong province.

The subject is supplying chemical for some manufacturers such as: Viet My Paint, Formosa, Chen Shin, Textile and Garment Company No.7 (TEGACO.7), Viet Thang Textile Joint Stock Company, Thang Loi Textile - Garment Joint Venture Company…

From the end of 2010, subject’s business activities are not good. It is affected much by fluctuation of exchange rate. Besides, its product price is higher than competitors in field. Its competitiveness decreased. In our opinion, at present, subject has capacity to meet small transaction only.

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