MIRA INFORM REPORT

Report Date :

15.02.2012

IDENTIFICATION DETAILS

Name :	US COMMODITIES JOINT STOCK COMPANY
Registered Office :	Hamlet 6 Ninh hiep Village, Gia Lam District, Ha Noi City
Country :	Vietnam
Financials (as on) :	31.12.2010
Date of Incorporation :	04.02.2009
Com. Reg. No.:	0103034869
Legal Form :	Joint Stock Company
Line of Business :	Trading iron and steel
No. of Employees :	10

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Viet Nam	B1	B1

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

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	US COMMODITIES JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN US COMMODITIES
Short name	USCOM., JSC
Type of Business	Joint stock company
Year Established	04/02/2009
Business Registration No.	0103034869
Date of Registration	04 Feb 2009
Place of Registration	Hanoi Planning and Investment Department
Current registered capital	VND 8,000,000,000
Status	Unlisted
Tax code	0103290773
Total Employees	10
Size	Small

ADDRESSES
Head Office
Address	Hamlet 6 Ninh hiep Village, Gia Lam District, Ha Noi City, Vietnam
Telephone	(84-4) 38788377
Fax	(84-4) 36963088
Email	stevebatuan@gmail.com

DIRECTORS
1. NAME	Mr. NGUYEN BA TUAN
Position	General Director
ID Number/Passport	011853619
Resident	Hamlet 6 Ninh Hiep Village, Gia Lam District, Ha Noi City, Vietnam
Nationality	Vietnamese
Tel/Mobil phone	+84983 881 165
2. NAME	Mr. NGUYEN BA TRUONG
Position	Vice Director
Resident	Hamlet 6 Ninh Hiep Village, Gia Lam District, Ha Noi City, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

- Trading iron and steel
- Trading garment, apparel
- Trading waste products
- Trading plastic resin
- Trading food, materials for animal feed
- Trading chemical and other products.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Materials for production animal feed
· Market	USA, India
EXPORT:
· Types of products	Re-export materials
· Market	China

BANKERS
1. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE DONG HA NOI BRANCH
Address	No.284 Ha Huy Tap str, Yen Vien ward, Gia Lam District, Ha Noi City, Vietnam
Telephone	(84-4) 38783159
2. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT THANG LONG BRANCH
Address	No.4 Pham Ngoc Thach Street, Dong Da District, Ha Noi City, Vietnam
Telephone	(84-4) 38525374
Fax	(84-4) 38521693

SHAREHOLDERS
1. NAME	Mr. NGUYEN BA TUAN
Position	General Director
ID Number/Passport	011853619
Resident	Hamlet 6 Ninh Hiep Village, Gia Lam District, Ha Noi City, Vietnam
Mobile phone	+84983 881 165
Nationality	Vietnamese
Number of Shares	64,000
Value of shares	VND 6,400,000,000
Percentage	80%
2. NAME	Mr. NGUYEN BA MY
Resident	Hamlet 6 Ninh Hiep Village, Gia Lam District, Ha Noi City, Vietnam
Nationality	Vietnamese
Number of Shares	8,000
Value of shares	VND 800,000,000
Percentage	10%
3. NAME	Ms. NGUYEN THI KIEM
Resident	Hamlet 6 Ninh Hiep Village, Gia Lam District, Ha Noi City, Vietnam
Nationality	Vietnamese
Number of Shares	8,000
Value of shares	VND 800,000,000
Percentage	10%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010
Number of weeks	52
ASSETS
A – CURRENT ASSETS	10,798,000,000
I. Cash and cash equivalents	2,005,000,000
1. Cash	2,005,000,000
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	4,388,000,000
1. Receivable from customers	4,264,000,000
2. Prepayments to suppliers	0
3. Inter-company receivable	0
4. Receivable according to the progress of construction	0
5. Other receivable	124,000,000
6. Provisions for bad debts	0
IV. Inventories	4,160,000,000
1. Inventories	4,160,000,000
2. Provisions for devaluation of inventories	0
V. Other Current Assets	245,000,000
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	245,000,000
B. LONG-TERM ASSETS	2,484,000,000
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	2,484,000,000
1. Tangible assets	2,484,000,000
- Historical costs	2,735,000,000
- Accumulated depreciation	-251,000,000
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	13,282,000,000
LIABILITIES
A- LIABILITIES	4,947,000,000
I. Current liabilities	4,947,000,000
1. Short-term debts and loans	2,448,000,000
2. Payable to suppliers	922,000,000
3. Advances from customers	0
4. Taxes and other obligations to the State Budget	1,577,000,000
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
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
B- OWNER’S EQUITY	8,335,000,000
I. OWNER’S EQUITY	8,335,000,000
1. Capital	5,734,000,000
2. Share premiums	0
3. Other sources of capital	0
4. Treasury stocks	0
5. Differences on asset revaluation	0
6. Foreign exchange differences	-21,000,000
7. Business promotion fund	0
8. Financial reserved fund	0
9. Other funds	0
10. Retained earnings	2,622,000,000
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	0
TOTAL LIABILITIES AND OWNER’S EQUITY	13,282,000,000

PROFIT & LOSS STATEMENT
Description	FY2010
1. Total Sales	44,312,000,000
2. Deduction item	0
3. Net revenue	44,312,000,000
4. Costs of goods sold	37,256,000,000
5. Gross profit	7,056,000,000
6. Financial income	0
7. Financial expenses	0
- In which: Loan interest expenses	0
8. Selling expenses	2,266,000,000
9. Administrative overheads	1,265,000,000
10. Net operating profit	3,525,000,000
11. Other income	17,000,000
12. Other expenses	250,000,000
13. Other profit /(loss)	-233,000,000
14. Total accounting profit before tax	3,292,000,000
15. Current corporate income tax	823,000,000
16. Deferred corporate income tax	0
17. Interest from subsidiaries/related companies	0
18. Profit after tax	2,469,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	Average Industry
Current liquidity ratio	2.18	1.94
Quick liquidity ratio	1.34	0.98
Inventory circle	8.96	9.29
Average receive period	36.14	54.01
Utilizing asset performance	3.34	2.21
Liability by total assets	37.25	58.72
Liability by owner's equity	59.35	256.76
Ebit / Total assets (ROA)	24.79	7.90
Ebit / Owner's equity (ROE)	39.50	25.68
Ebit / Total revenue (NPM)	7.43	4.18
Gross profit / Total revenue (GPM)	15.92	15.30
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	TT, DA
Sale Methods	Retailer and Wholesaler
Public opinion	Normal

CREDIT INQUIRY: 125,000 USD Again DA term

Caution needed.

INTERPRETATION ON THE SCORES

The subject is a Joint Stock company. It was established in 2009 following the business registration No. 0103034869 which issued by Hanoi Planning and Investment Department. The capital of the subject is VND 8 billion and it was contribution by three people in a family.

The head office of the subject now located at Hamlet 6, Ninh Hiep Village, Gia Lam Dist, Hanoi City. The operation of the subject focusing on import and trading materials for production animal feeds. Previously, the subject import and distribution to local processing company but following the revealed of accountant staff of the subject company – the subject now specialized in import and re-export to China. The employee of the subject is only around ten people, most of them are people in family of the subject’s director.

Financially, the subject reached VND 44.3 billion of sale in 2010. This is considered average sale amount in comparison with other companies in the industry. The profit of the subject in 2010 seems fine with amount of VND 2.4 billion, accounting for 5.6 percent of sale.

The financial ratio of the subject seems better than average industry. The liquidity ratio, operational ratio, profitability and especially financial leverage are higher than average industry.

In general, the position in the industry of the subject is humble. Its competitive capability in the market is relatively normal. The business line of the subject in re-export activities seems has dependent in partners. The subject has capacity to meet the normal amount of financial commitment, no caution needed for the small business transaction.

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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.49.33
UK Pound	1	Rs.77.41
Euro	1	Rs.64.84

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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