MIRA INFORM REPORT

Report Date :

07.12.2012

IDENTIFICATION DETAILS

Name :	VIET PHU THINH RUBBER JOINT STOCK COMPANY

Registered Office :	125/11 Nguyen Cuu Van Street, Ward 17 , Binh Thanh District, Ho Chi Minh City

Country :	Vietnam

Financials (as on) :	31.12.2010

Year of Establishment :	2003

Com. Reg. No.:	0302910157

Legal Form :	Joint Stock Company

Line of Business :	Manufacture of other rubber products

No. of Employees :	20

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 :	Slow
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

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		VIET PHU THINH RUBBER JOINT STOCK COMPANY
Vietnamese Name		CONG TY CO PHAN CAO SU VIET PHU THINH
Short name		VIRUCO
Type of Business		Joint stock company
Year Established		2003
Business Registration No.		0302910157
Date of Registration		24 May 2010
Place of Registration		Business Registration Office - Planning and Investment Department of Hochiminh City
Chartered capital		VND 25,500,000,000
Status		Unlisted
Tax code		0302910157
Total Employees		20
Size		Small

Historical Identification & Legal form

List	Changed Items		Date of changes
1	Subject has got former Chartered capital: VND12,800,000,000 Changed to: VND 25,500,000,000		17 May 2011
2	Subject has got former Business Registration No: 4103001492 issued on 06 March 2003 Changed to: 0302910157		24 May 2010
3	Subject has got former Address: 204 Phan Van Han - Binh Thanh District - Ho Chi Minh City - Vietnam Changed to: 125/11 Nguyen Cuu Van Street, Ward 17, Binh Thanh District, Ho Chi Minh City, Vietnam		2010
4	Subject has got former Chartered capital: VND 7,500,000,000 Changed to: VND 12,800,000,000		NA

ADDRESSES

Registration Address
Address		125/11 Nguyen Cuu Van Street, Ward 17 , Binh Thanh District, Ho Chi Minh City, Vietnam
Email		director@viruco.com
Website		www.viruco.com
Note: the given address (21/11, Nguyen Cuu Van) is not correct.

Transaction office in Ho Chi Minh
Address		4^th Floor, Ha Phan Building, No.456 Phan Xich Long Street, Ward 2 , Phu Nhuan District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 399 01548 - 399 03088 - 399 50358
Fax		(84-8) 3935 0541
Email		giamdoc@viruco-trading.com.vn
Website		www.viruco.com

RELATED COMPANIES

PHUOC THANH RUBBER CORPORATION
Vietnamese Name		CONG TY CO PHAN CAO SU PHUOC THANH
Short name		PT CO
Type of Business		Joint stock company
Business Registration No.		3800270850
Date of Registration		24 Apr 2003
Place of Registration		Business Registration Office- Department of Planning and Investment of Binh Phuoc province
Tax code		3800270850
Address		Hoa Vinh hamlet Thanh Tam commune, Chon Thanh District, Binh Phuoc Province, Vietnam
Telephone		(84.651) 3 668 757
Fax		(84.651) 3 668 758
Email		ptrubber@vnn.vn
Website		www.phuocthanhrubber.com

DIRECTORS

1. NAME		Mr. VU ANH PHONG
Position		Director
Date of Birth		17 Oct 1971
ID Number/Passport		024130943
ID Issue Date		09 Jun 2003
ID Issue Place		Police Station of Hochiminh City
Resident		66/5 Nguyen Hong Street, Ward 1 , Go Vap District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Email		giamdoc@viruco-trading.com.vn
Qualification		MA

2. NAME		Ms. PHAM THI CAM TU LAN
Position		Chief Accountant
Current resident		Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Email		acc@viruco.com
Qualification		Bachelor

BUSINESS NATURE AND ACTIVITIES

The subject is specializing in trading synthetic rubber in primary forms.
Registered items:
• Manufacture of other rubber products
• Trading and processing agricultural products, spare parts, and raw materials for production of plastic and rubber
• Trading in chemicals
• Real estate, civil & industrial construction
• Trading steel and stainless steel

IMPORT & EXPORT ACTIVITIES

IMPORT:
Note: Currently, the subject does not import

EXPORT:
· Types of products		rubber
· Market		China, Malaysia, India, Sri Lanka, Russia, Peru, Spain, Italy, Turkey, Germany


BANKERS

1. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK HO CHI MINH BRANCH
Address		No.6 Nguyen Thi Minh Khai, Da Kao ward, 1^st District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 3911 6868 – (84-8) 3456 6868 -(84-8) 8212155
Fax		(84-8) 39112199

2. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK SAI GON BRANCH
Address		No.28-30 Huynh Thuc Khang Street, Ben Nghe Ward, 1^st District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 39143152 - 39143669
Fax		(84-8) 39143150

3. HSBC BANK (VIETNAM) LTD
Address		Floor 06, The Metropolitan Building 235 Dong Khoi Street, 1^st District, Ho Chi Minh City, Vietnam
Telephone		(84 8) 3829 2288
Fax		(84 8) 3299 0018
SWIFT Code		HSBCZAJJXXX

4. JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM HO CHI MINH BRANCH
Address		No. 29 Ben Chuong Duong Str-Nguyen Thai Binh Ward, 1^st District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 3825 1317
Fax		(84-8) 3829 7228
SWIFT Code		VTCBVNVX

SHAREHOLDERS
Registration shareholder information:
1. NAME		Mr. DUONG HONG HA
ID Number/Passport		022104838
Resident		157Bis Tran Quoc Thao street, 3^rd District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Shares		100,000
Value of shares		VND 1,000,000,000

2. NAME		Ms. NGUYEN THI HUE
ID Number/Passport		162050697
Resident		165/5, 3/2 street, 10^th District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Shares		100,000
Value of shares		VND 1,000,000,000

3. NAME		Ms. TRAN THI KIM THANH
ID Number/Passport		280732850
Resident		7^th Block, Phu Thuan Hamlet, An Loc Village, Binh Long District, Binh Phuoc Province, Vietnam
Nationality		Vietnamese
Shares		100,000
Value of shares		VND 1,000,000,000

4. NAME		Mr. VU ANH PHONG
Position		Director
Date of Birth		17 Oct 1971
ID Number/Passport		024130943
Issued on		09 Jun 2003
Issued Place		Police Station of Hochiminh City
Resident		66/5 Nguyen Hong Street, Ward 1, Go Vap District, Ho Chi Minh City, Vietnam
Email		giamdoc@viruco-trading.com.vn
Nationality		Vietnamese
Shares		100,000
Value of shares		VND 1,000,000,000

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010	31/12/2009	31/12/2008
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	161,923,215,079	103,002,000,000	25,604,000,000
I. Cash and cash equivalents	8,983,204,059	4,361,000,000	3,444,000,000
1. Cash	8,983,204,059	4,361,000,000	3,444,000,000
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	99,204,733,158	50,237,000,000	12,025,000,000
1. Receivable from customers	64,047,069,246	31,060,000,000	5,234,000,000
2. Prepayments to suppliers	20,757,766,424	14,578,000,000	6,277,000,000
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	14,399,897,488	4,599,000,000	514,000,000
6. Provisions for bad debts	0	0	0
IV. Inventories	43,311,050,251	42,052,000,000	5,334,000,000
1. Inventories	43,311,050,251	42,052,000,000	6,314,000,000
2. Provisions for devaluation of inventories	0	0	-980,000,000
V. Other Current Assets	10,424,227,611	6,352,000,000	4,801,000,000
1. Short-term prepaid expenses	75,065,281	35,000,000	8,000,000
2. VAT to be deducted	10,316,697,591	6,285,000,000	4,757,000,000
3. Taxes and other accounts receivable from the State	0	0	0
4. Other current assets	32,464,739	32,000,000	36,000,000
B. LONG-TERM ASSETS	1,594,446,785	1,430,000,000	949,000,000
I. Long term accounts receivable	0	0	0
1. Long term account receivable from customers	0	0	0
2. Working capital in affiliates	0	0	0
3. Long-term inter-company receivable	0	0	0
4. Other long-term receivable	0	0	0
5. Provisions for bad debts from customers	0	0	0
II. Fixed assets	1,370,801,785	1,345,000,000	899,000,000
1. Tangible assets	1,176,012,272	1,546,000,000	1,132,000,000
- Historical costs	1,612,127,931	1,612,000,000	1,151,000,000
- Accumulated depreciation	-436,115,659	-66,000,000	-19,000,000
2. Financial leasehold assets	0	-204,000,000	-233,000,000
- Historical costs	0	0	0
- Accumulated depreciation	0	-204,000,000	-233,000,000
3. Intangible assets	3,000,000	3,000,000	0
- Initial costs	15,000,000	15,000,000	12,000,000
- Accumulated amortization	-12,000,000	-12,000,000	-12,000,000
4. Construction-in-progress	191,789,513	0	0
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	0	0	0
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	0	0
3. Other long-term investments	0	0	0
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	223,645,000	85,000,000	50,000,000
1. Long-term prepaid expenses	0	0	0
2. Deferred income tax assets	0	0	0
3. Other long-term assets	223,645,000	85,000,000	50,000,000
VI. Goodwill	0
1. Goodwill	0
TOTAL ASSETS	163,517,661,864	104,432,000,000	26,553,000,000

LIABILITIES
A- LIABILITIES	139,770,706,924	87,150,000,000	15,823,000,000
I. Current liabilities	139,291,272,549	86,485,000,000	15,610,000,000
1. Short-term debts and loans	114,604,911,400	47,069,000,000	10,119,000,000
2. Payable to suppliers	10,749,268,514	3,506,000,000	820,000,000
3. Advances from customers	10,311,090,842	33,465,000,000	3,818,000,000
4. Taxes and other obligations to the State Budget	1,618,775,907	1,612,000,000	325,000,000
5. Payable to employees	0	0	0
6. Accrued expenses	1,888,435,596	422,000,000	432,000,000
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	118,790,290	411,000,000	96,000,000
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	479,434,375	665,000,000	213,000,000
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	0	0	0
4. Long-term debts and loans	479,434,375	665,000,000	213,000,000
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	0	0	0
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	23,746,954,940	17,282,000,000	10,730,000,000
I. OWNER’S EQUITY	23,707,959,028	17,048,000,000	10,588,000,000
1. Capital	12,800,000,000	9,850,000,000	7,500,000,000
2. Share premiums	0	0	0
3. Other sources of capital	0	0	0
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	0	0	0
7. Business promotion fund	0	0	0
8. Financial reserved fund	1,000,000,000	0	0
9. Other funds	0	0	0
10. Retained earnings	9,907,959,028	7,198,000,000	3,088,000,000
11. Construction investment fund	0	0	0
II. Other sources and funds	38,995,912	234,000,000	142,000,000
1. Bonus and welfare funds	38,995,912	234,000,000	142,000,000
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	163,517,661,864	104,432,000,000	26,553,000,000


PROFIT & LOSS STATEMENT

Description	FY2010	FY2009	FY2008
1. Total Sales	1,347,599,281,531	546,998,000,000	402,906,000,000
2. Deduction item	0	2,057,000,000	0
3. Net revenue	1,347,599,281,531	544,941,000,000	402,906,000,000
4. Costs of goods sold	1,301,147,145,340	517,598,000,000	390,999,000,000
5. Gross profit	46,452,136,191	27,343,000,000	11,907,000,000
6. Financial income	8,165,796,717	2,621,000,000	2,771,000,000
7. Financial expenses	11,307,521,914	2,879,000,000	3,418,000,000
- In which: Loan interest expenses	6,418,387,268	2,371,000,000	3,418,000,000
8. Selling expenses	23,800,699,709	11,958,000,000	5,288,000,000
9. Administrative overheads	6,013,288,151	3,316,000,000	2,307,000,000
10. Net operating profit	13,496,423,134	11,811,000,000	3,665,000,000
11. Other income	68,176,612	505,000,000	34,000,000
12. Other expenses	362,079,808	966,000,000	4,000,000
13. Other profit /(loss)	-293,903,196	-461,000,000	30,000,000
14. Total accounting profit before tax	13,202,519,938	11,350,000,000	3,695,000,000
15. Current corporate income tax	3,294,560,910	1,950,000,000	944,000,000
16. Deferred corporate income tax	0	0	-303,000,000
17. Interest from subsidiaries/related companies	0
18. Profit after tax	9,907,959,028	9,400,000,000	2,448,000,000


FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	1.16	1.19	1.64	1.21
Quick liquidity ratio	0.85	0.70	1.30	0.72
Inventory circle	30.04	21.85	73.30	12.25
Average receive period	26.87	33.65	10.89	51.49
Utilizing asset performance	8.24	5.22	15.17	2.30
Liability by total assets	85.48	83.45	59.59	59.32
Liability by owner's equity	588.58	504.28	147.47	229.17
Ebit / Total assets (ROA)	12.00	13.14	26.79	8.16
Ebit / Owner's equity (ROE)	82.62	79.39	66.29	24.08
Ebit / Total revenue (NPM)	1.46	2.51	1.77	6.61
Gross profit / Total revenue (GPM)	3.45	5.00	2.96	16.82
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		Normal
Financial Situation		Above Average
Development trend		Positive
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		Direct payment or through its corresponding bank
Sale Methods		Wholesaler
Public opinion		Normal

INTERPRETATION ON THE SCORES

The subject - VIET PHU THINH RUBBER JOINT STOCK COMPANY - was established in 2003 under business registration No. 4103001492 with chartered capital of VND 7.5 billion. During operation, the subject has adjusted its business registration twelve times, the last time was on 17 May 2011. Now the subject is operating under business registration No. 0302910157 (as same as tax code). It also increased capital to VND 25.5 billion.

The subject is specializing in trading synthetic rubber in primary forms. Currently, about 80% products are exported to foreign countries. Some main products of the subject are China, Malaysia, India, Sri Lanka, Russia, Peru, Spain, Italy, Turkey, Germany… The rest is consumed in domestic market. Customers of the subject are companies, manufacturers… Originally, the subject imported steel, stainless steel for trading; however, at present, the subject does not have import activity. The subject just focuses on trading synthetic rubber.

The subject is operating at small-medium scale with about 20 staff. Business operation seems busy now. According to financial reported, financial situation of the subject was optimistic. Revenue and profit increased year by year.

In general, the subject’s operation is stable and development. It has capacity to meet normal business transaction.

------------ 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.54.46
UK Pound	1	Rs.87.63
Euro	1	Rs.71.11

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%)

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.

MIRA INFORM REPORT

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status

ADDRESSES

RELATED COMPANIES

DIRECTORS

BUSINESS NATURE AND ACTIVITIES

IMPORT & EXPORT ACTIVITIES

BANKERS

SHAREHOLDERS

Registration shareholder information:

FINANCIAL DATA

Unit: One VND

ASSETS

LIABILITIES

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

INTERPRETATION ON THE SCORES

INDUSTRY DATA

ECONOMIC INDICATORS

SERVICE TRADE PERFORMANCE

Unit