MIRA INFORM REPORT

Report Date :

21.06.2012

IDENTIFICATION DETAILS

Name :	IPC INTERNATIONAL TRADING COMMODITIES JOINT STOCK COMPANY
Registered Office :	No. 7B/331 Tran Khat Chan Street - Thanh Nhan Ward, Hai Ba Trung District, Ha Noi City
Country :	Vietnam
Financials (as on) :	31.12.2011
Year of Establishment :	2006
Com. Reg. No.:	0102055583
Legal Form :	Joint Stock Company
Line of Business :	The company specializes in exporting iron and steel to foreign countries.
No. of Employees :	30

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 :	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 – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
Viet Nam	B1	B1

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

SUBJECT IDENTIFICATION & LEGAL FORM
Current legal status
Registered English Name	IPC INTERNATIONAL TRADING COMMODITIES JOINT STOCK COMPANY
Registered Vietnamese Name	CONG TY CO PHAN THUONG MAI HANG HOA QUOC TE IPC
Registered short name	IPC COMMODITIES., JSC
Type of Business	Joint Stock Company
Year Established	2006
Business Registration No.	0102055583
Date of Registration	06 Jun 2012
Place of Registration	Ha Noi Department of Planning and Investment
Chartered capital	VND 80,000,000,000
Status	Unlisted
Tax code	0102055583
Total Employees	30
Size	Medium

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 0102028691 Changed to: 0102055583	06 Jun 2012
2	Subject has got former Registered English Name: IPC EXPORT COMMODITIES COMPANY LIMITED Changed to: IPC INTERNATIONAL TRADING COMMODITIES JOINT STOCK COMPANY	06 Jun 2012
3	Subject has got former Registered Vietnamese Name: CONG TY TNHH XUAT KHAU HANG HOA IPC Changed to: CONG TY CO PHAN THUONG MAI HANG HOA QUOC TE IPC	06 Jun 2012
4	Subject has got former Chartered capital: VND 20,000,000,000 Changed to: VND 80,000,000,000	06 Jun 2012
5	Subject has got former Type of Business: Limited Liability Company Changed to: Joint Stock Company	06 Jun 2012

ADDRESSES
Head Office
Address	A18-NV, Hoang Ngan Street Trung Hoa Ward, Cau Giay District, Ha Noi City, Vietnam
Telephone	(84-4) 35569980
Fax	(84-4) 35569981
Note	The given address is the registration address of the subject. Its head office address is as above.
Registration Address
Address	No. 7B/331 Tran Khat Chan Street - Thanh Nhan Ward, Hai Ba Trung District, Ha Noi City, Vietnam

SUBSIDIARIES AND RELATED COMPANIES
1. RELATED COMPANY - IPC COMPANY LIMITED
Business Registration	0102000435
Date of Registration	28 Apr 2000
Place of Registration	Hanoi Department of Planning and Investment
Registered Capital	VND 40,000,000,000
Tax code	0101018571
Address	No. A18 NV Hoang Ngan Street - Trung Hoa Ward, Cau Giay District, Ha Noi City, Vietnam
Tel	(84-4) 3733 7710 / 35569980
Fax	(84-4) 3733 7711/ 35569981
Website	http://www.ipc-vietnam.com.vn

DIRECTORS
1. NAME	Mr. PHI PHONG HA
Position	Director
Date of Birth	21 Apr 1974
ID Number/Passport	B6499609
ID Issue Date	06 Apr 2012
Resident	304 B3 Nam Thanh Cong Lang Ha Ward, Dong Da District, Ha Noi City, Vietnam
Current resident	304 B3 Nam Thanh Cong Lang Ha Ward, Dong Da District, Ha Noi City, Vietnam
Nationality	Vietnamese
Tel/Mobil phone	(84) 913202024
2. NAME	Mr. NGUYEN HONG KIEN
Position	Deputy Director
ID Number/Passport	011761166
Resident	No. 512/C9, Thanh Cong Collective Thanh Cong Ward, Ba Dinh District, Ha Noi City, Vietnam
Nationality	Vietnamese
Tel/Mobil phone	(84) 913571627

BUSINESS NATURE AND ACTIVITIES

The company specializes in exporting iron and steel to foreign countries.

IMPORT & EXPORT ACTIVITIES
IMPORT:
Note: Currently, the subject does not import.
EXPORT:
· Types of products	Iron, Steel
· Market	Bangladesh, India, Indonesia, Cambodia, etc

BANKERS
1. MILITARY COMMERCIAL JOINT STOCK BANK
Address	No. 28A Dien Bien Phu Str., Ba Dinh District, Ha Noi City, Vietnam
Telephone	(84-4) 38232883
Fax	(84-4) 38233335
2. JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM
Address	No 34 Hang Bai Ward, Hoan Kiem District, Ha Noi City, Vietnam
Telephone	(84-4) 39362089
3. AN BINH COMMERCIAL JOINT STOCK BANK
Address	B7 Giang Vo Str, Ba Dinh District, Ha Noi City, Vietnam
Telephone	(84-4) 38460135

SHAREHOLDERS
1. NAME	Mr. PHI PHONG HA
Position	Director
Date of Birth	21 Apr 1974
ID Number/Passport	B6499609
Issued on	06 Apr 2012
Resident	304 B3 Nam Thanh Cong Lang Ha Ward, Dong Da District, Ha Noi City, Vietnam
Current Resident	304 B3 Nam Thanh Cong Lang Ha Ward, Dong Da District, Ha Noi City, Vietnam
Mobile phone	(84) 913202024
Nationality	Vietnamese
Number of Shares	4,400,000
Value of shares	VND 44,000,000,000
Percentage	55%
2. NAME	Mr. LAM QUANG HIEU
ID Number/Passport	B4285094
Resident	No.4, The Giao Street Le Dai Hanh Ward, Hai Ba Trung District, Ha Noi City, Vietnam
Mobile phone	(84) 912288555
Nationality	Vietnamese
Number of Shares	1,200,000
Value of shares	VND 12,000,000,000
Percentage	15%
3. NAME	Mr. NGUYEN HONG KIEN
Position	Deputy Director
ID Number/Passport	011761166
Resident	No. 512/C9, Thanh Cong Collective Thanh Cong Ward, Ba Dinh District, Ha Noi City, Vietnam
Mobile phone	(84) 913571627
Nationality	Vietnamese
Number of Shares	1,200,000
Value of shares	VND 12,000,000,000
Percentage	15%
4. NAME	Mr. HOANG HA
Date of Birth	02 Jun 1974
ID Number/Passport	011727997
Issued on	13 Dec 1994
Issued Place	Police Station Of Hanoi City
Resident	No 2 Tong Dan Street - Ly Thai To Ward, Hoan Kiem District, Ha Noi City, Vietnam
Nationality	Vietnamese
Number of Shares	1,200,000
Value of shares	VND 12,000,000,000
Percentage	15%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010	31/12/2009
Number of weeks	52	52	52
Audit status	Unaudited	Unaudited	Unaudited
ASSETS
A – CURRENT ASSETS	184,067,981,910	306,197,262,760	71,260,000,000
I. Cash and cash equivalents	11,118,263,354	10,283,499,468	4,706,000,000
1. Cash	11,118,263,354	10,283,499,468	792,000,000
2. Cash equivalents	0	0	3,914,000,000
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	108,397,391,094	277,072,121,015	55,136,000,000
1. Receivable from customers	93,901,041,853	260,207,018,975	44,790,000,000
2. Prepayments to suppliers	6,364,594,796	6,123,030,735	121,000,000
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	8,131,754,445	10,742,071,305	10,225,000,000
6. Provisions for bad debts	0	0	0
IV. Inventories	59,352,327,462	8,479,339,546	9,912,000,000
1. Inventories	59,352,327,462	8,479,339,546	9,912,000,000
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	5,200,000,000	10,362,302,731	1,506,000,000
1. Short-term prepaid expenses	0	0	728,000,000
2. VAT to be deducted	0	10,362,302,731	778,000,000
3. Taxes and other accounts receivable from the State	0	0	0
4. Other current assets	5,200,000,000	0	0
B. LONG-TERM ASSETS	22,147,509	36,824,781	67,000,000
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	22,147,509	33,224,781	34,000,000
1. Tangible assets	22,147,509	33,224,781	34,000,000
- Historical costs	55,386,196	55,386,196	39,000,000
- Accumulated depreciation	-33,238,687	-22,161,415	-5,000,000
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	0	0	0
- Initial costs	0	0	0
- Accumulated amortization	0	0	0
4. Construction-in-progress	0	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	0	3,600,000	33,000,000
1. Long-term prepaid expenses	0	0	33,000,000
2. Deferred income tax assets	0	0	0
3. Other long-term assets	0	3,600,000	0
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	184,090,129,419	306,234,087,541	71,327,000,000
LIABILITIES
A- LIABILITIES	124,087,393,777	286,947,310,130	50,159,000,000
I. Current liabilities	124,087,393,777	286,947,310,130	50,159,000,000
1. Short-term debts and loans	58,407,623,112	177,794,092,897	34,260,000,000
2. Payable to suppliers	64,722,710,812	109,188,900,947	13,059,000,000
3. Advances from customers	1,142,688,169	12,332,115	2,936,000,000
4. Taxes and other obligations to the State Budget	-313,449,778	-48,015,829	-96,000,000
5. Payable to employees	122,599,662	0	0
6. Accrued expenses	0	0	0
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	5,221,800	0	0
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	0	0	0
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	0	0	0
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	60,002,735,642	19,286,777,411	21,168,000,000
I. OWNER’S EQUITY	60,002,735,642	19,286,777,411	21,168,000,000
1. Capital	60,000,000,000	20,000,000,000	20,000,000,000
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	113,416,061	0	0
7. Business promotion fund	0	0	0
8. Financial reserved fund	0	0	0
9. Other funds	0	0	0
10. Retained earnings	-110,680,419	-713,222,589	1,168,000,000
11. Construction investment fund	0	0	0
II. Other sources and funds	0	0	0
1. Bonus and welfare funds	0	0	0
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	184,090,129,419	306,234,087,541	71,327,000,000

PROFIT & LOSS STATEMENT
Description	FY2011	FY2010	FY2009
1. Total Sales	743,920,563,107	601,758,549,360	111,003,000,000
2. Deduction item	220,218,192	305,976,000	0
3. Net revenue	743,700,344,915	601,452,573,360	111,003,000,000
4. Costs of goods sold	714,863,102,010	570,029,928,669	105,721,000,000
5. Gross profit	28,837,242,905	31,422,644,691	5,282,000,000
6. Financial income	40,873,733,617	15,761,541,635	2,923,000,000
7. Financial expenses	36,892,222,311	8,105,769,495	1,208,000,000
- In which: Loan interest expenses	12,741,645,244	5,482,956,368	997,000,000
8. Selling expenses	0	0	0
9. Administrative overheads	32,082,970,424	41,204,099,420	6,248,000,000
10. Net operating profit	735,783,787	-2,125,682,589	749,000,000
11. Other income	0	3,408,805,062	0
12. Other expenses	0	137,762,040	200,000,000
13. Other profit /(loss)	0	3,271,043,022	-200,000,000
14. Total accounting profit before tax	735,783,787	1,145,360,433	549,000,000
15. Current corporate income tax	0	0	0
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	735,783,787	1,145,360,433	549,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	1.48	1.07	1.42	1.31
Quick liquidity ratio	1.01	1.04	1.22	0.55
Inventory circle	21.08	67.23	13.70	5.31
Average receive period	53.20	168.15	181.30	47.91
Utilizing asset performance	4.04	1.96	1.56	2.39
Liability by total assets	67.41	93.70	70.32	70.52
Liability by owner's equity	206.80	1,487.79	236.96	286.62
Ebit / Total assets (ROA)	7.32	2.16	2.17	8.29
Ebit / Owner's equity (ROE)	22.46	34.37	7.30	30.38
Ebit / Total revenue (NPM)	1.81	1.10	1.39	4.05
Gross profit / Total revenue (GPM)	3.88	5.22	4.76	7.87
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CASH FLOW STATEMENT
(Direct method)
Items	FY2011	FY2010
I. Cash flows from operating activities
1.Cash received from customers	543,900,585,460	263,241,009,974
2. Cash paid to suppliers	-997,862,603,765	-532,984,239,471
3. Cash paid to employees	-710,838,249	-268,447,500
4. Interest paid	-9,981,126,419	-5,482,956,368
5. Income taxes paid	-266,709,681	-189,716,903
6. Other operating cash receipts	95,751,564,384	29,589,903,515
7. Other operating payments	-25,537,727,530	-992,708,578
Net cash flows from operating activities	-394,706,855,800	-247,087,155,331
II. Cash flows from investing activities
1. Purchases and construction of fixed assets and other long-term assets	0	-17,123,000
2. Gains from disposals and liquidation of fixed assets and other long-term assets	0	0
3. Loans given and purchases of debt instruments of other entities	0	0
4. Recovery of loans given and disposals of debt instruments of other entities	0	0
5. Investments into other entities	0	0
6. Withdrawals of investments in other entities	0	0
7. Receipts of loan interests, dividends and profit shared	0	0
Net cash flows from investing activities	0	-17,123,000
III. Cash flows from financing activities
1. Gains from stock issuance and capital contributions from shareholders	40,000,000,000	0
2. Repayment for capital contributions and re-purchases of stocks already issues	0	0
3. Short-term and long-term loans received	627,904,713,691	567,084,457,027
4. Loan principal amounts repaid	-272,363,094,005	-313,646,500,638
5. Payments for financial leasehold assets	0	0
6. Dividends and profit already paid to the owners	0	0
Net cash flows from financing activities	395,541,619,686	253,437,956,389
Net cash flows during the year	834,763,886	6,333,678,058
Beginning cash and cash equivalents	10,283,499,468	3,949,821,410
Effects of fluctuations in foreign exchange rates	0	0
Ending cash and cash equivalents	11,118,263,354	10,283,499,468

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Good
Liquidity	Medium/High
Payment status	Normal
Financial Situation	Above Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Transfer through its bank
Sale Methods	Retailer and Wholesaler
Public opinion	Good

INTERPRETATION ON THE SCORES

The subject was originally established in 2006 as a Limited Liability Company with the former name: IPC Export Commodities Company Limited. In June 2012, the subject's legal form was changed to Joint Stock Company and its name also changed to IPC International Trading Commodities Joint Stock Company. Its chartered capital also increased from VND 20 billion at the time of establishment to VND 80 billion at currently.

The company's registration address is at No. 7B/331, Tran Khat Chan Street, Thanh Nhan Ward, Hai Ba Trung District, Ha Noi City. However, its head office is located at A18-NV, Hoang Ngan Street, Trung Hoa Ward, Cau Giay District, Ha Noi City. The company specializes in exporting iron and steel to foreign countries. According to Mr. Ngo Quang Dinh, the company’s products are come from imported products, processed products and locally produced products. The subject usually exported to Bangladesh, India, Indonesia, Cambodia, etc.

The company’s financial situation is considered above average. The subject is ranked as a medium size company in the industry. In 2011, the company total assets were VND 184.1 billion; down 39.8% in comparison with previous year. The reason is the down of current assets, especially accounts receivable. The company’s accounts receivable were down from VND 277.1 billion in 2010 to VND 108.4 billion in 2011. It affected to the company’s average receivable; shortened from 168.15 days in 2010 to 53.20 days in 2011. According to the financial ratio table, the company’s operational ratio is good. According to the balance sheet, the self – financing ability of the subject was improved much. In 2011, liability by total assets was 67.41% while that ratio in 2010 was 93.70%. The reason is that the company’s owner equity in 2011 increased whereas its liability was down compared to 2010. The company’s liability by total assets is expected to improve more because the subject has increased its chartered capital to VND 80 billion in June 2011.

On the side of profitability, the company’s business result is fairly good. The company’s total sales increased year after year and in 2011 reached to VND 743.9 billion. The profitability of the subject is considered average.

In general, the subject has capacity to meet small and normal financial commitments.

----------- 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.55.86
UK Pound	1	Rs.87.93
Euro	1	Rs.70.88

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.