MIRA INFORM REPORT

Report Date :

05.12.2012

IDENTIFICATION DETAILS

Name :	KIMDAIVUONG PRODUCING AND TRADING COMPANY LIMITED

Registered Office :	No.18, Lo Su St., Ly Thai To Ward, Hoan Kiem District, Ha Noi City

Country :	Vietnam

Financials (as on) :	31.12.2011

Year of Establishment :	2003

Com. Reg. No.:	0101416621

Legal Form :	Limited Liability Company

Line of Business :	trading iron, steel and mechanical products

No. of Employees :	40 employees

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Small Company

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

(31.03.2012)

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
Registered English Name		KIMDAIVUONG PRODUCING AND TRADING COMPANY LIMITED
Registered Vietnamese Name		CONG TY TNHH SAN XUAT VA THUONG MAI KIM DAI VUONG
Registered Short name		KDV CO., LTD
Type of Business		Limited liability company
Year Established		2003
Business Registration No.		0101416621
Date of Registration		24 Aug 2010
Place of Registration		Hanoi Department of Planning and Investment
Chartered capital		VND 5,000,000,000
Status		Unlisted
Tax code		0101416621
Total Employees		40
Size		Small
Note: The exact name of the subject is as above

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 0102010292 (dated on 28 Oct 2003) Changed to: 0101416621	24 Aug 2010
2	Subject has got former Address: No. 7A2, Dam Trau, Bach Dang Street, Hai Ba Trung District, Hanoi City, Vietnam Changed to: No.18, Lo Su Street, Ly Thai To Ward, Hoan Kiem District, Hanoi City, Vietnam	2010
3	Subject has got former Chartered capital: VND 20 billion Changed to: VND 5 billion	N/A

company ADDRESSES

Head Office
Address		No.18, Lo Su St., Ly Thai To Ward, Hoan Kiem District, Ha Noi City, Vietnam
Telephone		(84-4) 39843785
Fax		(84-4) 39843786

Registration Address
Address		No. 20, Lane 202F, Doi Can Street, Doi Can Ward, Ba Dinh District, Ha Noi City, Vietnam

DIRECTORS

1. NAME		Ms. PHUNG THI THU HA
Position		Director
Date of Birth		02 Dec 1961
ID Number/Passport		012387018
ID Issue Date		13 Sep 2000
ID Issue Place		Hanoi Police Station
Current resident		No.66, Yet Kieu Lane, Yet Kieu St., Cua Nam Ward, Hoan Kiem District, Ha Noi City, Vietnam
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject focuses on trading iron, steel and mechanical products.

IMPORT & EXPORT ACTIVITIES

IMPORT: Currently, the subject does not import

EXPORT: Currently, the subject does not export

BANKERS

1. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK BA DINH BRANCH
Address		No.132- 138 Kim Ma str, Ba Dinh District, Ha Noi City, Vietnam
Telephone		(84-4) 3734 3233
Fax		(84-4) 3734 3238

2. VIETNAM INTERNATIONAL COMMERCIAL JOINT STOCK BANK
Address		64-68 Ly Thuong Kiet, Hoan Kiem District, Ha Noi City, Vietnam
Telephone		(84-4) 3942 6919
Fax		(84-4) 3 942 6929

SHAREHOLDERS

1. NAME		Mr. LAI QUOC KHANH
ID Number/Passport		011243530
Resident		No. 66, Yet Kieu Lane, Yet Kieu Street, Cua Nam Ward, Hoan Kiem District, Ha Noi City, Vietnam
Value of shares		VND 2,500,000,000
Percentage		50%

2. NAME		Ms. PHUNG THI THU HA
Position		Director
Date of Birth		02 Dec 1961
ID Number/Passport		012387018
Issued on		13 Sep 2000
Issued Place		Hanoi Police Station
Current Resident		No.66, Yet Kieu Lane, Yet Kieu St., Cua Nam Ward, Hoan Kiem District, Ha Noi City, Vietnam
Nationality		Vietnamese
Value of shares		VND 2,000,000,000
Percentage		40%

3. NAME		Ms. TRAN THI THUY
ID Number/Passport		012695250
Resident		No.298, Group 11, Lang Thuong Ward, Dong Da District, Ha Noi City, Vietnam
Nationality		Vietnamese
Value of shares		VND 500,000,000
Percentage		10%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	15,721,056,029	2,629,287,055
I. Cash and cash equivalents	231,959,381	193,476,573
1. Cash	231,959,381	193,476,573
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	10,509,631,221	699,524,417
1. Receivable from customers	8,337,606,419	475,777,521
2. Prepayments to suppliers	2,110,665,384	212,575,591
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	61,359,418	11,171,305
6. Provisions for bad debts	0	0
IV. Inventories	2,878,924,768	1,062,505,348
1. Inventories	2,878,924,768	1,062,505,348
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	2,100,540,659	673,780,717
1. Short-term prepaid expenses	0	0
2. VAT to be deducted	2,044,867,416	316,411,379
3. Taxes and other accounts receivable from the State	20,673,243	31,001,303
4. Other current assets	35,000,000	326,368,035
B. LONG-TERM ASSETS	13,117,833,325	12,720,285,732
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	12,816,739,141	12,517,009,732
1. Tangible assets	11,895,749,880	2,691,440,081
- Historical costs	13,761,253,529	3,825,927,500
- Accumulated depreciation	-1,865,503,649	-1,134,487,419
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	920,989,261	9,825,569,651
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	301,094,184	203,276,000
1. Long-term prepaid expenses	301,094,184	203,276,000
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	28,838,889,354	15,349,572,787

LIABILITIES
A- LIABILITIES	25,962,386,557	12,504,054,170
I. Current liabilities	25,962,386,557	12,504,054,170
1. Short-term debts and loans	13,183,611,147	4,064,467,762
2. Payable to suppliers	365,792,674	1,010,078,085
3. Advances from customers	2,982,736	0
4. Taxes and other obligations to the State Budget	0	0
5. Payable to employees	0	0
6. Accrued expenses	0	114,929,323
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	12,410,000,000	7,314,579,000
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	2,876,502,797	2,845,518,617
I. OWNER’S EQUITY	2,876,502,797	2,845,518,617
1. Capital	5,000,000,000	5,000,000,000
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	-2,123,497,203	-2,154,481,383
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	0
TOTAL LIABILITIES AND OWNER’S EQUITY	28,838,889,354	15,349,572,787

PROFIT & LOSS STATEMENT

Description	FY2011	FY2010
1. Total Sales	65,175,614,159	117,150,093,841
2. Deduction item	0	0
3. Net revenue	65,175,614,159	117,150,093,841
4. Costs of goods sold	58,929,023,406	114,531,332,605
5. Gross profit	6,246,590,753	2,618,761,236
6. Financial income	0	77,072,086
7. Financial expenses	1,207,972,691	1,632,104,590
- In which: Loan interest expenses	1,207,972,691	1,137,061,187
8. Selling expenses	0	0
9. Administrative overheads	5,031,846,318	2,141,745,784
10. Net operating profit	6,771,744	-1,078,017,052
11. Other income	36,527,161	19,488,416
12. Other expenses	1,986,665	1,738,408
13. Other profit /(loss)	34,540,496	17,750,008
14. Total accounting profit before tax	41,312,240	-1,060,267,044
15. Current corporate income tax	10,328,060	0
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	30,984,180	-1,060,267,044

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2011	FY2010	Average Industry
Current liquidity ratio	0.61	0.21	1.31
Quick liquidity ratio	0.49	0.13	0.55
Inventory circle	29.90	107.79	5.31
Average receive period	58.86	2.18	47.91
Utilizing asset performance	2.26	7.63	2.39
Liability by total assets	90.03	81.46	70.52
Liability by owner's equity	902.57	439.43	286.62
Ebit / Total assets (ROA)	4.33	0.50	8.29
Ebit / Owner's equity (ROE)	43.43	2.70	30.38
Ebit / Total revenue (NPM)	1.92	0.07	4.05
Gross profit / Total revenue (GPM)	9.58	2.24	7.87
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Fair
Liquidity		Low/Medium
Payment status		Normal
Financial Situation		Average
Development trend		Even
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		T/T
Sale Methods		Retailer and Wholesaler

INTERPRETATION ON THE SCORES

As a limited liability company, the subject was established in 2003 in Hanoi. It is now operating under the business registration No. 0101416621. The current chartered capital of the subject is VND 5 billion contributing by three shareholders. Ms. Phung Thi Thu Ha is Director of the subject.

On the business license, the subject registers address at No.20, Lane 202F, Doi Can St., Ba Dinh Dist., Hanoi. However, it does not operate there. Its transactions are performing at No.18, Lo Su Str., Hoan Kiem dist., Hanoi. There are about 40 employees working for the subject. Its premises and facilities are normal.

Formerly, the subject imports steel and iron from China, Korea and Japan but now it has no direct import and export activities. Its products are only purchased and distributed in domestically market.

Regarding the financial statement submitted the tax authority of the subject, total sales decreased from VND 117 billion in 2010 to VND 65 billion in 2011. However, its profit was improved compared to the previous year thanks to other income. At the end of 2011, value of total assets was increased 87.8% in comparison with 2010, but this rate was still lower than increase of liabilities. Total amount of liabilities in 2011 were VND 25.9 billion that over doubled the year 2010. It accounted for 90% total assets and more than nine times the owner’s equity. This made reduce the current liquidity ratio of the subject. It also showing that the firm’s self-financial ability was not good and its capital structure was not really safe.

Generally, the subject is operating on small-sized. Its future prospect seems normal. Now, it is capable to meet small commitments and caution is needed for normal ones.

APPENDIX

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)
	2011	2010
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.54.95
UK Pound	1	Rs.88.42
Euro	1	Rs.71.71

INFORMATION DETAILS

Report Prepared by :

MNL

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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