MIRA INFORM REPORT

Report Date :

11.02.2012

IDENTIFICATION DETAILS

Name :	TAN PHONG JOINT STOCK COMPANY

Registered Office :	Dong Lang Industrial Zone, Phu Ninh District, Phu Tho Province, Vietnam

Country :	Viet Nam

Financials (as on) :	31.12.2010

Date of Incorporation :	14.10.2011

Com. Reg. No.:	2600274542

Legal Form :	Joint stock company

Line of Business :	Manufacturing and trading black tea.

No. of Employees :	Over 200

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 – September 30, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Viet Nam

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

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
Registered English Name		TAN PHONG JOINT STOCK COMPANY
Registered Vietnamese Name		CONG TY CO PHAN TAN PHONG
Registered Short name		TAN PHONG., JSC
Type of Business		Joint stock company
Year Established		2002
Business Registration No.		2600274542
Date of Registration		14 Oct 2011
Place of Registration		Planning and Investment Department of Phu Tho Province
Current registered capital		VND 28,000,000,000
Status		Unlisted
Tax code		2600274542
Total Employees		Over 200
Size		Medium

Historical Identification & Legal form

List	Changed Items
1	Subject has got former Business Registration No: 1803000064 (dated on December 19th 2002) Changed to: 2600274542
2	Subject has got former Registered Vietnamese Name: CONG TY CO PHAN TAN PHONG PHU THO Changed to: CONG TY CO PHAN TAN PHONG
3	Subject has got former Registered English Name: PHU THO TAN PHONG JOINT STOCK COMPANY Changed to: TAN PHONG JOINT STOCK COMPANY


ADDRESSES

Head Office
Address		Dong Lang Industrial Zone, Phu Ninh District, Phu Tho Province, Vietnam

Representative office in Phu Tho
Address		Zone 15, Hung Son Town, Lam Thao District, Phu Tho Province, Vietnam
Telephone		(84-210) 2215277
Fax		(84-210) 3829388
Email		tanphongtea@gmail.com
Notes: - The given telephone and fax number belong to TAM PHONG AGRICULTURE JOINT STOCK COMPANY (Short name is TAM PHONG AGRI JSC) which is not anyway related to the subject. - The exact address of the subject is above.

DIRECTORS

1. NAME		Ms. DINH THI THUC
Position		Chairwoman and General Director
Date of Birth		06 Jun 1957
ID Number/Passport		130493197
ID Issue Date		09 Jul 2010
ID Issue Place		Phu Tho Police Department
Resident		Zone 15, Hung Son Town, Lam Thao District, Phu Tho Province, Vietnam
Nationality		Vietnamese

2. NAME		Mr. LE VAN ANH
Position		Deputy General Director
ID Number/Passport		012599564
Resident		Group 48, Quan Hoa Ward, Cau Giay District, Ha Noi City, Vietnam
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in manufacturing and trading black tea.

IMPORT & EXPORT ACTIVITIES

IMPORT: Currently, the subject does not import

EXPORT:
· Market		India, Pakistan, etc.


BANKERS

1. JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM VIET TRI BRANCH
Address		1606A Hung Vuong Street-Gia Cam Ward, Viet Tri City, Phu Tho Province, Vietnam
Telephone		(84-0210) 3766666
Fax		(84-0210) 3766667

SHAREHOLDERS

1. NAME		Ms. DINH THI THUC
Position		Chairwoman and General Director
Date of Birth		06 Jun 1957
ID Number/Passport		130493197
Issued on		09 Jul 2010
Issued Place		Phu Tho Police Department
Resident		Zone 15, Hung Son Town, Lam Thao District, Phu Tho Province, Vietnam
Nationality		Vietnamese
Number of Shares		50,000
Value of shares		VND 25,000,000,000
Percentage		89.3%

2. NAME		Ms. NGUYEN THI THU THUY
ID Number/Passport		131647834
Resident		Zone 15, Hung Son Town, Lam Thao District, Phu Tho Province, Vietnam
Nationality		Vietnamese
Number of Shares		3,000
Value of shares		VND 1,500,000,000
Percentage		5.35%

3. NAME		Mr. NGUYEN VIET XUAN
ID Number/Passport		013365813
Resident		No. 1, Lot 3, Residential Quarter of Trade Union Tourist, Street 3, Co Nhue Commune, Tu Liem District, Ha Noi City, Vietnam
Nationality		Vietnamese
Number of Shares		3,000
Value of shares		VND 1,500,000,000
Percentage		5.35%

4. NAME		Mr. LE VAN ANH
Position		Deputy General Director
ID Number/Passport		012599564
Resident		Group 48, Quan Hoa Ward, Cau Giay District, Ha Noi City, Vietnam
Nationality		Vietnamese
Number of Shares		Transferred

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010
Number of weeks	52
ASSETS
A – CURRENT ASSETS	17,871,000,000
I. Cash and cash equivalents	468,000,000
1. Cash	0
2. Cash equivalents	468,000,000
II. Short-term investments	0
1. Short-term investments	0
2. Provisions for devaluation of short-term investments	0
III. Accounts receivable	4,230,000,000
1. Receivable from customers	4,230,000,000
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	13,173,000,000
1. Inventories	13,173,000,000
2. Provisions for devaluation of inventories	0
V. Other Current Assets	0
1. Short-term prepaid expenses	0
2. VAT to be deducted	0
3. Taxes and other accounts receivable from the State	0
4. Other current assets	0
B. LONG-TERM ASSETS	69,856,000,000
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	69,856,000,000
1. Tangible assets	61,013,000,000
- Historical costs	76,202,000,000
- Accumulated depreciation	-15,189,000,000
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	8,843,000,000
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	87,727,000,000

LIABILITIES
A- LIABILITIES	24,989,000,000
I. Current liabilities	15,524,000,000
1. Short-term debts and loans	11,880,000,000
2. Payable to suppliers	3,644,000,000
3. Advances from customers	0
4. Taxes and other obligations to the State Budget	0
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
II. Long-Term Liabilities	9,465,000,000
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	9,465,000,000
5. Deferred income tax payable	0
6. Provisions for unemployment allowances	0
7. Provisions for long-term accounts payable	0
B- OWNER’S EQUITY	62,738,000,000
I. OWNER’S EQUITY	62,738,000,000
1. Capital	53,801,000,000
2. Share premiums	0
3. Other sources of capital	5,622,000,000
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	3,315,000,000
11. Construction investment fund	0
II. Other sources and funds	0
1. Bonus and welfare funds	0
2. Sources of expenditure	0
3. Fund to form fixed assets	0
MINORITY’S INTEREST
TOTAL LIABILITIES AND OWNER’S EQUITY	87,727,000,000


PROFIT & LOSS STATEMENT

Description	FY2010
1. Total Sales	73,170,000,000
2. Deduction item	0
3. Net revenue	73,170,000,000
4. Costs of goods sold	64,210,000,000
5. Gross profit	8,960,000,000
6. Financial income	0
7. Financial expenses	3,597,000,000
- In which: Loan interest expenses	-
8. Selling expenses	0
9. Administrative overheads	2,048,000,000
10. Net operating profit	3,315,000,000
11. Other income	0
12. Other expenses	0
13. Other profit /(loss)	0
14. Total accounting profit before tax	3,315,000,000
15. Current corporate income tax	0
16. Deferred corporate income tax	0
17. Interest from subsidiaries/related companies
18. Profit after tax	3,315,000,000


FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2010	Average Industry
Current liquidity ratio	1.15	1.48
Quick liquidity ratio	0.30	0.86
Inventory circle	4.87	6.84
Average receive period	21.10	57.12
Utilizing asset performance	0.83	1.40
Liability by total assets	28.49	53.27
Liability by owner's equity	39.83	165.07
Ebit / Total assets (ROA)	3.78	9.44
Ebit / Owner's equity (ROE)	5.28	22.99
Ebit / Total revenue (NPM)	4.53	6.94
Gross profit / Total revenue (GPM)	12.25	16.18
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		L/C, T/T
Sale Methods		Export

INTERPRETATION ON THE SCORES

The subject was established in 2002 as a joint stock company under management of Ms. Dinh Thi Thuc.

Formerly, Ms. Dinh Thi Thuc was director of Tan Phong Company Limited which was founded in 1998 and focused on manufacturing and trading packing PP, PE, carton boxes. Then, due to realize the development potential of tea tree, Ms. Thuc decided to invest in field of manufacturing tea. Since that, the subject was established and Tan Phong Company Limited was dissolved.

The subject is specialized in manufacturing and trading black tea with main product is CTC tea. Currently, it does not import and all its products are exported to foreign country, in which, major markets are Pakistan and India. The subject plans to manufacture Otherdox tea in the future. Now, its head office and factory are located at Dong Lang Industrial Zone - Phu Ninh District - Phu Tho Province and its representative office is Block 15 - Hung Son Town - Lam Thao District - Phu Tho Province. However, it is preparing to build an extra factory which services for processing tea to consume in domestic.

According to the above financial statement, the subject's turnover and profit of the subject is acceptable. Its total assets was financed mainly by owner's equity, debt rate was low, shows that its capital structure was safe. However, its liquidity seemed humble. This is reflected in liquidity ratios which were low, in which the quick liquidity ratio was very low (0.30 units) because the subject retained big inventory amount. Operation ratios reveal that, the subject's property management ability is not very good. Besides, ROA, ROE and profit indexes also were not high, proves that its business activities are not really effective.

In general, the subject is ranked as a medium scale company with registered capital of VND 28 billion and over 200 employees. Yet, its financial situation is average. The capital structure is safe but liquidity is humble. Thus, caution is needed for medium and big transactions with the subject.

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)
	2010	2009
Agriculture, Forestry and Fishing	2.78	1.82	8,749		23,896.3	81,559
Industry and Construction	7.70	5.52	85,115		10,630	2,751,975
Trade and Services	7.52	6.63	154,978		14,522	4,939,069

ECONOMIC INDICATORS

			2010	2009		2008
Population (Million person)			86.93	86.02		86.1
Gross Domestic Products (US$ billion)			102.2	91		84.9
GDP Growth (%)			6.78	5.32		6.2
GDP Per Capita (US$)			1,160	1,080		1,040
Inflation (% Change in Composite CPI)			11.75	6.88		24.4

SERVICE TRADE PERFORMANCE

Billion USD			2010	2009		2008
Exports			72.2	57.1		62.7
Imports			84.8	69.9		80.7
Trade Balance			-12.6	-12.8		-18

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.64
UK Pound	1	Rs.78.35
Euro	1	Rs.65.79

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

Historical Identification & Legal form

ADDRESSES

DIRECTORS

BUSINESS NATURE AND ACTIVITIES

IMPORT & EXPORT ACTIVITIES

BANKERS

SHAREHOLDERS

FINANCIAL DATA

Unit: One VND

PROFIT & LOSS STATEMENT

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

INTERPRETATION ON THE SCORES

APPENDIX

Unit