MIRA INFORM REPORT

Report Date :

27.03.2012

IDENTIFICATION DETAILS

Name :	VIETDUTCH INTERNATIONAL JOINT STOCK COMPANY
Registered Office :	Room 708 CT4-A1 Building, Bac Linh Dam Urban Area, Hoang Mai District, Ha Noi City
Country :	Vietnam
Financials (as on) :	31.12.2011
Date of Incorporation :	11.01.2011
Com. Reg. No.:	0105112857
Legal Form :	Joint Stock Company
Line of Business :	The subject is specializing in purchasing and export plywood to India.
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 :	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	VIETDUTCH INTERNATIONAL JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN VIETDUTCH QUOC TE
Type of Business	Joint stock company
Year Established	2011
Business Registration No.	0105112857
Date of Registration	11 Jan 2011
Place of Registration	Hanoi Department of Planning and Investment
Current registered capital	VND 6,000,000,000
Status	Unlisted
Tax code	0105112857
Total Employees	30
Size	Small

ADDRESSES
Head Office
Address	Room 708 CT4-A1 Building, Bac Linh Dam Urban Area, Hoang Mai District, Ha Noi City, Vietnam
Telephone	(84-4)35402123
Fax	(84-4)3540212
Representative
Registration Address
Address	No 69 Tuu Liet street, Lien Bao Area, Van Dien town, Thanh Tri District, Ha Noi City, Vietnam
Note: The correct address is as above.
Factory Address
Address	Phu Huu Village Thanh Lam commune, Me Linh District, Ha Noi City, Vietnam

DIRECTORS
1. NAME	Ms. PHAM NGOC MAI
Position	Director
Date of Birth	05 Sep 1986
ID Number/Passport	135208873
ID Issue Date	16 Mar 2010
ID Issue Place	Vinh Phuc Police Station
Resident	No 216 Truong Chinh street, Dong Xuan ward, Phuc Yen District, Vinh Phuc Province, Vietnam
Current resident	Room 401 CT4 Bac Linh Dam urban area, Dai Kim ward, Hoang Mai District, Ha Noi City, Vietnam
Nationality	Vietnamese
2. NAME	Mr. LE QUOC VUONG
Position	Chief Accountant
Nationality	Vietnamese
Tel/Mobil phone	++84983947768
Email	vuonglq1977@gmail.com

BUSINESS NATURE AND ACTIVITIES

The subject is specializing in purchasing and export plywood to India.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	machines
· Market	China
· Mode of payment	L/C, TT
EXPORT:
· Market	India
· Ratio	100%
· Mode of payment	LC, TT

BANKERS
1. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK GIAI PHONG BRANCH
Address	No.443 Giai Phong Street, Hoang Mai District, Ha Noi City, Vietnam
Telephone	(84-4) 36284238
Fax	(84-4) 36284236

SHAREHOLDERS
1. NAME	Ms. PHAM NGOC MAI
Position	Director
Date of Birth	05 Sep 1986
ID Number/Passport	135208873
Issued on	16 Mar 2010
Issued Place	Vinh Phuc Police Station
Resident	No 216 Truong Chinh street Dong Xuan ward, Phuc Yen District, Vinh Phuc Province, Vietnam
Current Resident	Room 401 CT4 Bac Linh Dam urban area, Dai Kim ward, Hoang Mai District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 5,880,000,000
Percentage	98%
2. NAME	Mr. DANG XUAN HONG
ID Number/Passport	012168692
Issued Place	Ha Noi Police Station
Resident	19 Group Tuong Mai ward, Hoang Mai District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 60,000,000
Percentage	1%
3. NAME	Mr. NGUYEN DUC TAI
Resident	Ho Chi Minh City, Vietnam
Value of shares	VND 60,000,000
Percentage	1%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011
Number of weeks	-
ASSETS
A – CURRENT ASSETS	7,320,586,579
I. Cash and cash equivalents	3,524,514,051
1. Cash	3,524,514,051
2. Cash equivalents
II. Short-term investments	108,500,000
1. Short-term investments	108,500,000
2. Provisions for devaluation of short-term investments
III. Accounts receivable	3,076,779,220
1. Receivable from customers	1,152,032,765
2. Prepayments to suppliers	1,924,746,455
3. Inter-company receivable
4. Receivable according to the progress of construction
5. Other receivable
6. Provisions for bad debts
IV. Inventories	391,754,141
1. Inventories	391,754,141
2. Provisions for devaluation of inventories
V. Other Current Assets	219,039,167
1. Short-term prepaid expenses
2. VAT to be deducted
3. Taxes and other accounts receivable from the State	99,039,167
4. Other current assets	120,000,000
B. LONG-TERM ASSETS	1,018,811,380
I. Long term accounts receivable
1. Long term account receivable from customers
2. Working capital in affiliates
3. Long-term inter-company receivable
4. Other long-term receivable
5. Provisions for bad debts from customers
II. Fixed assets	1,018,811,380
1. Tangible assets	1,001,482,580
- Historical costs	1,001,482,580
- Accumulated depreciation
2. Financial leasehold assets
- Historical costs
- Accumulated depreciation
3. Intangible assets
- Initial costs
- Accumulated amortization
4. Construction-in-progress	17,328,800
III. Investment property
Historical costs
Accumulated depreciation
IV. Long-term investments
1. Investments in affiliates
2. Investments in business concerns and joint ventures
3. Other long-term investments
4. Provisions for devaluation of long-term investments
V. Other long-term assets
1. Long-term prepaid expenses
2. Deferred income tax assets
3. Other long-term assets
VI. Goodwill
1. Goodwill
TOTAL ASSETS	8,339,397,959
LIABILITIES
A- LIABILITIES	6,314,289,597
I. Current liabilities	6,314,289,597
1. Short-term debts and loans
2. Payable to suppliers	259,796,100
3. Advances from customers	6,046,124,043
4. Taxes and other obligations to the State Budget	8,369,454
5. Payable to employees
6. Accrued expenses
7. Inter-company payable
8. Payable according to the progress of construction contracts
9. Other payable
10. Provisions for short-term accounts payable
II. Long-Term Liabilities
1. Long-term accounts payable to suppliers
2. Long-term inter-company payable
3. Other long-term payable
4. Long-term debts and loans
5. Deferred income tax payable
6. Provisions for unemployment allowances
7. Provisions for long-term accounts payable
B- OWNER’S EQUITY	2,025,108,362
I. OWNER’S EQUITY	2,025,108,362
1. Capital	2,000,000,000
2. Share premiums
3. Other sources of capital
4. Treasury stocks
5. Differences on asset revaluation
6. Foreign exchange differences
7. Business promotion fund
8. Financial reserved fund
9. Other funds
10. Retained earnings	25,108,362
11. Construction investment fund
II. Other sources and funds
1. Bonus and welfare funds
2. Sources of expenditure
3. Fund to form fixed assets
MINORITY’S INTEREST
TOTAL LIABILITIES AND OWNER’S EQUITY	8,339,397,959

PROFIT & LOSS STATEMENT
Description	FY2011
1. Total Sales	3,640,197,550
2. Deduction item	0
3. Net revenue	3,640,197,550
4. Costs of goods sold	2,755,993,319
5. Gross profit	884,204,231
6. Financial income	26,422,696
7. Financial expenses	17,712,076
- In which: Loan interest expenses
8. Selling expenses	165,610,580
9. Administrative overheads	693,826,455
10. Net operating profit	33,477,816
11. Other income
12. Other expenses
13. Other profit /(loss)
14. Total accounting profit before tax	33,477,816
15. Current corporate income tax	8,369,454
16. Deferred corporate income tax
17. Interest from subsidiaries/related companies
18. Profit after tax	25,108,362

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	Average Industry
Current liquidity ratio	1.16	1.21
Quick liquidity ratio	1.10	0.72
Inventory circle	7.04	12.25
Average receive period	308.51	51.49
Utilizing asset performance	0.44	2.30
Liability by total assets	75.72	59.32
Liability by owner's equity	311.80	229.17
Ebit / Total assets (ROA)	0.40	8.16
Ebit / Owner's equity (ROE)	1.65	24.08
Ebit / Total revenue (NPM)	0.92	6.61
Gross profit / Total revenue (GPM)	24.29	16.82
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	Normal
Financial Situation	Below Average
Development trend	Developing
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	TT and LC
Sale Methods	To contracts
Public opinion	Normal

INTERPRETATION ON THE SCORES

VIETDUTCH INTERNATIONAL JOINT STOCK COMPANY is a new company in the field business of trading wood. The subject has just found in the beginning 2011 according business code No 0105112857, issued by Hanoi Department of Planning and Investment. The subject is invested by three shareholders, in which director Ms. Pham Ngoc Mai is holding to 98% shares of the subject.

Subject company is The subject is specializing in purchasing and export plywood. In the first year of operating the subject only purchase products from manufacturers in domestic and then export to foreign customers. From this year 2012 the subject starts to processing wood in the factory that is located in Me Linh District, Hanoi city. 100% products of the subject are supplied to Indian market.

Head office of the subject is at Room 708 CT4-A1 Building, Bac Linh Dam Urban Area, Hoang Mai District, Ha Noi City, Vietnam. The given address is only registered address of the subject and there is no business transaction at here. The subject has just open the factory in Me Linh district in the beginning 2012. Premise and facilities are normal. Management capacity is average. The director of subject company, Ms. Pham Ngoc Mai is young at 26 years old. Her husband is Indian and he is also take part the business of company. That is why the subject focuses on Indian market.

Financially, subject company is considered as below average. In 2011 the subject reaches VND 3,640 million of total sales and VND 25 million of profit after tax. Activity ratios are limited and profitability is modest. Although the subject is a small and new company, its financial capacity is not strong and should be caution for medium and big business transaction 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)
	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.51.30
UK Pound	1	Rs.81.36
Euro	1	Rs.67.97

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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