MIRA INFORM REPORT

Report Date :

22.12.2012

IDENTIFICATION DETAILS

Name :	BACH PHUONG COMPANY LIMITED
Registered Office :	No. 157 A14 Tan Mai Ward , Hoang Mai District, Ha Noi City
Country :	Vietnam
Financials (as on) :	31.12.2010
Year of Establishment :	2006
Com. Reg. No.:	0101895519
Legal Form :	Limited liability company
Line of Business :	Trading computer.
No. of Employees :	15

RATING & COMMENTS

MIRA’s Rating :

B

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 (31.03.2011)	Current Rating (30.06.2012)
Viet Nam	B1	B1

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

VIET NAM - 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	BACH PHUONG COMPANY LIMITED
Vietnamese Name	CONG TY TNHH BACH PHUONG
Short name	BP CO.,LTD
Type of Business	Limited liability company
Year Established	2006
Business Registration No.	0101895519
Date of Registration	15 Dec 2011
Place of Registration	Hanoi Planning and Investment Department
Chartered capital	VND 1,000,000,000
Status	Unlisted
Tax code	0101895519
Total Employees	15
Size	Small

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 0102025454 Changed to: 0101895519	15 Dec 2011

ADDRESSES
Registration Address
Address	No. 157 A14 Tan Mai Ward , Hoang Mai District, Ha Noi City, Vietnam
Transaction office in Ha Noi
Address	Suite 15.5 Tan Mai apartment building 25 - Tan Mai Ward , Hoang Mai District, Ha Noi City, Vietnam
Telephone	(84-4) 3628 5989
Fax	(84-4) 3628 5989

DIRECTORS
1. NAME	Mr. NGUYEN XUAN TRUONG
Position	Director
Date of Birth	01 Jan 1945
ID Number/Passport	168135974
ID Issue Date	09 Apr 2002
ID Issue Place	Ha Nam Police Station
Current resident	No. 157 A14 Tan Mai Ward , Hoang Mai District, Ha Noi City, Vietnam
Nationality	Vietnamese
2. NAME	Mr. NGUYEN VAN PHONG
Position	Deputy Director
ID Number/Passport	162034268
Resident	Truat Hamlet - Liem Son Commune, Thanh Liem District, Ha Nam Province, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject specializes in:
- Trading computer.
- Export Eucalyptus wood
- Recruitment services

IMPORT & EXPORT ACTIVITIES
IMPORT:
Note: Currently, the subject does not import
EXPORT:
· Types of products	Eucalyptus wood
· Market	India
· Ratio	100%
BANKERS
1. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM HOAN KIEM TRANSACTION NO.1
Address	No.26 Hang Voi, Hoan Kiem District, Ha Noi City, Vietnam
Telephone	(84-4) 39340720

SHAREHOLDERS
1. NAME	Mr. NGUYEN XUAN TRUONG
Position	Director
Date of Birth	01 Jan 1945
ID Number/Passport	168135974
Issued on	09 Apr 2002
Issued Place	Ha Nam Police Station
Current Resident	No. 157 A14 Tan Mai Ward , Hoang Mai District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 500,000,000
Percentage	50%
2. NAME	Mr. NGUYEN VAN PHONG
Position	Deputy Director
ID Number/Passport	162034268
Resident	Truat Hamlet - Liem Son Commune , Thanh Liem District, Ha Nam Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 250,000,000
Percentage	25%
3. NAME	Mr. NGO LAM TRI
ID Number/Passport	012641359
Resident	No. 5 - Gam Cau - Phuc Xa Ward , Ha Dong District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 250,000,000
Percentage	25%

FINANCIAL DATA
Note: Despite trying best, the latest financial data is not available.
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010
Number of weeks	52
Audit status	Unaudited
ASSETS
A – CURRENT ASSETS	3,468,000,000
I. Cash and cash equivalents	467,000,000
1. Cash	467,000,000
2. Cash equivalents	0
II. Short-term investments	0
1. Short-term investments	0
2. Provisions for devaluation of short-term investments	0
III. Accounts receivable	830,000,000
1. Receivable from customers	830,000,000
2. Prepayments to suppliers	0
3. Inter-company receivable	0
4. Receivable according to the progress of construction	0
5. Other receivable	0
6. Provisions for bad debts	0
IV. Inventories	2,125,000,000
1. Inventories	2,125,000,000
2. Provisions for devaluation of inventories	0
V. Other Current Assets	46,000,000
1. Short-term prepaid expenses	0
2. VAT to be deducted	46,000,000
3. Taxes and other accounts receivable from the State	0
4. Other current assets	0
B. LONG-TERM ASSETS	332,000,000
I. Long term accounts receivable	0
1. Long term account receivable from customers	0
2. Working capital in affiliates	0
3. Long-term inter-company receivable	0
4. Other long-term receivable	0
5. Provisions for bad debts from customers	0
II. Fixed assets	332,000,000
1. Tangible assets	332,000,000
- Historical costs	639,000,000
- Accumulated depreciation	-307,000,000
2. Financial leasehold assets	0
- Historical costs	0
- Accumulated depreciation	0
3. Intangible assets	0
- Initial costs	0
- Accumulated amortization	0
4. Construction-in-progress	0
III. Investment property	0
Historical costs	0
Accumulated depreciation	0
IV. Long-term investments	0
1. Investments in affiliates	0
2. Investments in business concerns and joint ventures	0
3. Other long-term investments	0
4. Provisions for devaluation of long-term investments	0
V. Other long-term assets	0
1. Long-term prepaid expenses	0
2. Deferred income tax assets	0
3. Other long-term assets	0
VI. Goodwill	0
1. Goodwill	0
TOTAL ASSETS	3,800,000,000
LIABILITIES
A- LIABILITIES	1,016,000,000
I. Current liabilities	1,016,000,000
1. Short-term debts and loans	950,000,000
2. Payable to suppliers	55,000,000
3. Advances from customers	0
4. Taxes and other obligations to the State Budget	11,000,000
5. Payable to employees	0
6. Accrued expenses	0
7. Inter-company payable	0
8. Payable according to the progress of construction contracts	0
9. Other payable	0
10. Provisions for short-term accounts payable	0
11. Bonus and welfare funds
II. Long-Term Liabilities	0
1. Long-term accounts payable to suppliers	0
2. Long-term inter-company payable	0
3. Other long-term payable	0
4. Long-term debts and loans	0
5. Deferred income tax payable	0
6. Provisions for unemployment allowances	0
7. Provisions for long-term accounts payable	0
8. Unearned Revenue
9. Science and technology development fund
B- OWNER’S EQUITY	2,784,000,000
I. OWNER’S EQUITY	2,784,000,000
1. Capital	2,282,000,000
2. Share premiums	0
3. Other sources of capital	0
4. Treasury stocks	0
5. Differences on asset revaluation	0
6. Foreign exchange differences	0
7. Business promotion fund	0
8. Financial reserved fund	0
9. Other funds	0
10. Retained earnings	502,000,000
11. Construction investment fund	0
12. Business arrangement supporting fund
II. Other sources and funds	0
1. Bonus and welfare funds (Elder form)	0
2. Sources of expenditure	0
3. Fund to form fixed assets	0
MINORITY’S INTEREST	0
TOTAL LIABILITIES AND OWNER’S EQUITY	3,800,000,000

PROFIT & LOSS STATEMENT
Description	FY2010
1. Total Sales	43,575,000,000
2. Deduction item	0
3. Net revenue	43,575,000,000
4. Costs of goods sold	41,266,000,000
5. Gross profit	2,309,000,000
6. Financial income	0
7. Financial expenses	73,000,000
- In which: Loan interest expenses	73,000,000
8. Selling expenses	0
9. Administrative overheads	1,572,000,000
10. Net operating profit	664,000,000
11. Other income	7,000,000
12. Other expenses	2,000,000
13. Other profit /(loss)	5,000,000
14. Total accounting profit before tax	669,000,000
15. Current corporate income tax	167,000,000
16. Deferred corporate income tax	0
17. Interest from subsidiaries/related companies	0
18. Profit after tax	502,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	Average Industry
Current liquidity ratio	3.41	1.60
Quick liquidity ratio	1.32	0.95
Inventory circle	19.42	8.86
Average receive period	6.95	85.75
Utilizing asset performance	11.47	1.86
Liability by total assets	26.74	60.56
Liability by owner's equity	36.49	254.73
Ebit / Total assets (ROA)	19.53	9.21
Ebit / Owner's equity (ROE)	26.65	28.87
Ebit / Total revenue (NPM)	1.70	7.68
Gross profit / Total revenue (GPM)	5.30	15.58
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Normal
Liquidity	Medium
Payment status	Average
Financial Situation	Average
Development trend	Developing
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C, through its bank account
Sale Methods	To contracts
Public opinion	Normal

INTERPRETATION ON THE SCORES

BACH PHUONG COMPANY LIMITED was established under the former business registration No. 0102025454 granted by Hanoi Planning and Investment Department on 17th March 2006. Currently, the subject is operating under the business registration and tax code No. 0101895519.

The subject specializes in trading computer; exporting eucalyptus wood; recruitment services. Currently, it does not import. All commodities for business are supplied by other domestic distributors. The subject only trades computer base on contract or according to the project. Besides, it only exports eucalyptus wood to India. 

Facilities and premises of the subject are simple. Besides registration address at No. 157 A14 Tan Mai Ward - Hoang Mai District - Hanoi City, it has only transaction office at Suite 15.5 Tan Mai apartment building 25 - Tan Mai Ward - Hoang Mai District - Hanoi City.

Currently, its chartered capital is VND 1 billion is small equity capital in comparison other companies in the same field.  Up to now its total labors are 15 employees working for the subject. Market share of the subject is Hanoi and some province around Hanoi.

Financially, in 2010 the subject had safe financial structure but the business result was fair. Because of considerable revenue its total asset turnover was high. Its liquidity was fair two.

Generally, the subject is a small company. With currently operation situation the subject has capacity to meet small financial commitment.

------------ 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.55.08
UK Pound	1	Rs.89.53
Euro	1	Rs.72.77

INFORMATION DETAILS

Report Prepared by :

PRL

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.