MIRA INFORM REPORT

Report Date :

17.05.2012

IDENTIFICATION DETAILS

Name :	MDF VRG - QUANG TRI WOOD JOINT STOCK COMPANY

Registered Office :	South of Dong Ha Industrial Zone, Dong Luong Ward, Dong Ha City, Quang Tri Province

Country :	Vietnam

Financials (as on) :	31.12.2010

Year of Establishment :	2005

Com. Reg. No.:	3200228141

Legal Form :	Joint Stock Company

Line of Business :	Manufacturing and trading blank, MDF wood, okal, veneer, etc;

No. of Employees :	200

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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)

Vietnam

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
English Name		MDF VRG - QUANG TRI WOOD JOINT STOCK COMPANY
Vietnamese Name		CONG TY CO PHAN GO MDF VRG - QUANG TRI
Trade name		MDF VRG QT
Type of Business		Joint stock company
Year Established		2005
Business Registration No.		3200228141
Date of Registration		29 Jun 2010
Place of Registration		Quang Tri Department of Planning and Investment
Chartered capital		VND 344,460,000,000
Status		Unlisted
Tax code		3200228141
Total Employees		200
Size		Medium
Notes: The correct name of the subject is like above.

Historical Identification & Legal form

List

Changed Items

Date of changes

Subject has got former Business Registration No: 3003000054

Changed to: 3200228141

29 Jun 2010

company ADDRESSES

Head Office
Address		South of Dong Ha Industrial Zone, Dong Luong Ward, Dong Ha City, Quang Tri Province, Vietnam
Telephone		(84-53) 3566978/ 3560639/ 3568387
Fax		(84-53) 3560482
Email		mdfgerucoqt@vnn.vn
Website		http://www.mdfquangtri.vn
Note: The address given in the order is not right completely. The full and correct one is mentioned above.

DIRECTORS

1. NAME		Mr. CAO THANH NAM
Position		General Director
Date of Birth		10 Dec 1965
ID Number/Passport		197310003
ID Issue Date		20 Mar 2010
ID Issue Place		Quang Tri
Resident		Street 1 Dong Luong Ward, Dong Ha City, Quang Tri Province, Vietnam
Nationality		Vietnamese
Tel/Mobil phone		+84 912 488 469
Qualification		Engineer

2. NAME		Mr. NGUYEN VAN CONG
Position		Deputy General Director
Date of Birth		08 Feb 1964
Resident		Ward 5, Dong Ha City, Quang Tri Province, Vietnam
Nationality		Vietnamese
Tel/Mobil phone		+84 982 592 234
Qualification		Bachelor of Economics

3. NAME		Mr. NGUYEN MANH CUONG
Position		Chief Accountant
Date of Birth		25 Apr 1974
Resident		Duong Luong Ward, Dong Ha City, Quang Tri Province, Vietnam
Nationality		Vietnamese
Tel/Mobil phone		+84 905 852 725
Qualification		Bachelor of Economics

BUSINESS NATURE AND ACTIVITIES

The subject is operating in the following business activities:
- Manufacturing and trading blank, MDF wood, okal, veneer, etc;
- Manufacturing, processing and trading wooden product, MDF wooden product, agricultural product.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		Machines, equipments
· Market		the USA, EU

EXPORT:
· Types of products		MDF wooden products
· Market		India, China, Pakistan

BANKERS

1. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK QUANG TRI BRANCH
Address		No.43 Tran Hung Dao , Dong Ha City, Quang Tri Province, Vietnam
Telephone		(84-53) 3555889
Fax		(84-53) 3555890

2. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM QUANG TRI BRANCH
Address		No.24 Hung Vuong, Dong Ha City, Quang Tri Province, Vietnam
Telephone		(84-53) 3850841

3. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM QUANG TRI BRANCH
Address		No.51 Tran Hung Dao , Dong Ha City, Quang Tri Province, Vietnam
Telephone		(84-53) 3555727
Fax		(84-53) 3555726

4. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT DONG HA BRANCH
Address		No.225 Hung Vuong Street-Dong Le 1326 Ward, Dong Ha City, Quang Tri Province, Vietnam

Note: Vietnam Bank for Agriculture Land Rural Development given in the order is not written correctly. The correct one is above.

SHAREHOLDERS

1. NAME		VIET NAM RUBBER GROUP LIMITED
Business Registration		4106000341
Date of Registration		16 Mar 2007
Place of Registration		Ho Chi Minh's Department of Planning and Investment
Tax code		0301266564
Address		No. 236 Nam Ky Khoi Nghia Street, 3 District, Ho Chi Minh City, Vietnam
Tel		(84-8) 932 7857
Fax		(84-8) 932 7341
Number of shares		26,105,850
Value of shares		VND 261,058,500,000
Percentage		75.79%

2. NAME		TAN BIEN RUBBER COMPANY
Business Registration		110738
Address		Tan Hiep Village, Tan Chau District, Tay Ninh Province, Vietnam
Tel		(84-66) 3 875191
Fax		(84-66) 3 875307
Number of shares		3,367,155
Value of shares		VND 33,671,550,000
Percentage		9.78%

3. NAME		QUANG TRI RUBBER COMPANY
Business Registration		106594
Address		No.129D Highway 9, Dong Ha City, Quang Tri Province, Vietnam
Tel		(84-53) 3 852 363/ 3 854 803/ 3 852 481
Fax		(84-53) 3 853816
Number of shares		3,555,500
Value of shares		VND 35,555,000,000
Percentage		10.32%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010	31/12/2009
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	100,159,075,554	60,707,959,279
I. Cash and cash equivalents	59,703,167,693	9,885,773,420
1. Cash	10,705,131,026	9,885,773,420
2. Cash equivalents	48,998,036,667	0
II. Short-term investments	0	0
1. Short-term investments	0	0
2. Provisions for devaluation of short-term investments	0	0
III. Accounts receivable	23,288,025,348	24,684,577,370
1. Receivable from customers	5,772,281,822	15,545,327,994
2. Prepayments to suppliers	15,880,000,941	9,177,186,649
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	3,049,480,346	1,937,003,100
6. Provisions for bad debts	-1,413,737,761	-1,974,940,373
IV. Inventories	16,961,963,633	25,961,739,964
1. Inventories	16,961,963,633	25,961,739,964
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	205,918,880	175,868,525
1. Short-term prepaid expenses	0	0
2. VAT to be deducted	0	0
3. Taxes and other accounts receivable from the State	0	0
4. Other current assets	205,918,880	175,868,525
B. LONG-TERM ASSETS	336,927,482,690	390,075,106,543
I. Long term accounts receivable	0	0
1. Long term account receivable from customers	0	0
2. Working capital in affiliates	0	0
3. Long-term inter-company receivable	0	0
4. Other long-term receivable	0	0
5. Provisions for bad debts from customers	0	0
II. Fixed assets	331,608,678,141	385,901,800,137
1. Tangible assets	328,084,816,888	384,925,698,030
- Historical costs	453,423,579,858	450,459,223,037
- Accumulated depreciation	-125,338,762,970	-65,533,525,007
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	187,536,263	201,350,237
- Initial costs	224,198,000	224,198,000
- Accumulated amortization	-36,661,737	-22,847,763
4. Construction-in-progress	3,336,324,990	774,751,870
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	0	0
1. Investments in affiliates	0	0
2. Investments in business concerns and joint ventures	0	0
3. Other long-term investments	0	0
4. Provisions for devaluation of long-term investments	0	0
V. Other long-term assets	5,318,804,549	4,173,306,406
1. Long-term prepaid expenses	5,318,804,549	4,173,306,406
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	437,086,558,244	450,783,065,822

LIABILITIES
A- LIABILITIES	75,329,226,445	108,503,025,326
I. Current liabilities	38,714,552,086	46,972,685,197
1. Short-term debts and loans	24,000,000,000	30,294,389,030
2. Payable to suppliers	5,187,174,120	9,470,987,310
3. Advances from customers	4,729,283,773	4,189,236
4. Taxes and other obligations to the State Budget	999,143,983	89,274,129
5. Payable to employees	1,921,261,795	1,574,925,596
6. Accrued expenses	0	0
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	1,877,688,415	5,538,919,896
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	36,614,674,359	61,530,340,129
1. Long-term accounts payable to suppliers	0	0
2. Long-term inter-company payable	0	0
3. Other long-term payable	0	0
4. Long-term debts and loans	36,537,434,600	61,484,671,100
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	77,239,759	45,669,029
7. Provisions for long-term accounts payable	0	0
B- OWNER’S EQUITY	361,757,331,799	342,280,040,496
I. OWNER’S EQUITY	361,905,846,173	342,204,024,562
1. Capital	344,459,970,000	344,459,970,000
2. Share premiums	11,999,994,000	11,999,994,000
3. Other sources of capital	0	0
4. Treasury stocks	0	0
5. Differences on asset revaluation	0	0
6. Foreign exchange differences	-576,390,596	6,188,666
7. Business promotion fund	152,377,356	152,377,356
8. Financial reserved fund	152,377,356	152,377,356
9. Other funds	0	0
10. Retained earnings	5,717,518,057	-14,566,882,816
11. Construction investment fund	0	0
II. Other sources and funds	-148,514,374	76,015,934
1. Bonus and welfare funds	-148,514,374	76,015,934
2. Sources of expenditure	0	0
3. Fund to form fixed assets	0	0
MINORITY’S INTEREST	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	437,086,558,244	450,783,065,822

PROFIT & LOSS STATEMENT

Description	FY2010	FY2009
1. Total Sales	262,315,628,196	221,723,126,721
2. Deduction item	122,724,141	536,874,955
3. Net revenue	262,192,904,055	221,186,251,766
4. Costs of goods sold	197,249,395,692	171,023,911,390
5. Gross profit	64,943,508,363	50,162,340,376
6. Financial income	2,369,787,349	54,153,495
7. Financial expenses	4,177,428,891	6,819,846,661
- In which: Loan interest expenses	4,061,520,541	6,797,963,921
8. Selling expenses	26,863,009,295	21,610,412,965
9. Administrative overheads	4,544,309,376	4,632,788,771
10. Net operating profit	31,728,548,150	17,153,445,474
11. Other income	381,534,500	1,594,002,087
12. Other expenses	482,792,814	1,766,721,659
13. Other profit /(loss)	-101,258,314	-172,719,572
14. Total accounting profit before tax	31,627,289,836	16,980,725,902
15. Current corporate income tax	805,411,880	0
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	30,821,877,956	16,980,725,902

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2010	FY2009	Average Industry
Current liquidity ratio	2.59	1.29	1.61
Quick liquidity ratio	2.15	0.74	0.72
Inventory circle	9.19	5.02	6.41
Average receive period	32.42	40.73	40.98
Utilizing asset performance	0.60	0.49	1.30
Liability by total assets	17.23	24.07	58.19
Liability by owner's equity	20.82	31.70	206.32
Ebit / Total assets (ROA)	8.17	5.28	8.26
Ebit / Owner's equity (ROE)	9.87	6.95	21.07
Ebit / Total revenue (NPM)	13.61	10.72	5.03
Gross profit / Total revenue (GPM)	24.76	22.62	12.08
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Fair
Liquidity		Medium/High
Payment status		Above Average
Financial Situation		Above Average
Development trend		Positive
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		T/T
Sale Methods		To contracts
Public opinion		Good

INTERPRETATION ON THE SCORES

MDF VRG - QUANG TRI WOOD JOINT STOCK COMPANY (MDF VRG QT) was established in 2005 as a joint stock company with the initial Business Registration No. 3003000054 granted by Quang Tri Department of Planning and Investment. In June 2010, the Business Registration was changed to Business Code No. 3200228141, the same as the Tax Code. Its current registered capital is VND 344,460,000,000, in which Vietnam Rubber Group Limited, an economic group, holds 75.79% of total shares, Tan Bien Rubber Company holds 9.78% of total shares, and Quang Tri Rubber Company holds 10.32% of total shares.

Head office of the subject is located in South of Dong Ha Industrial Zone Dong Luong Ward, Dong Ha City, Quang Tri Province, Vietnam. MDF VRG QT is specialized in manufacturing and trading wooden products. The main product of the subject is MDF wood - the main material for furniture production, which has 8÷50mm thickness, with 2.440mm length, 1.220mm width and handy for construction work, interior and exterior furniture of construction work. Raw material for main production is wood forest (pine, acacia, eucalyptus, tram (cajuput)...). Raw materials are supplied by organizations and the individual consists of Quang Binh Province, Quang Tri Province and Thua Thien Hue. The factory needs more than 120.000 tons of raw material and 20.000 tons of firewood /year. The subject’s products are exported to India, China, Pakistan, etc.

Financial Statements for FY 2009 and 2010 above show a good financial capacity of the subject recently. It has total assets of about VND 438 billion in 2010 while this figure for 2009 was VND 451 billion. In addition, net revenue raise frequently; and especially profit after tax of the subject increased remarkably these years from VND 17 billion in 2009 and nearly VND 31 billion in 2010.

In conclusion, MDF VRG QT is a medium scale company in the industry of manufacturing wooden products. Being a joint stock company with main shares held by the Vietnam Rubber Group, the subject has many advantages in capital, technology support. The future prospect of MDF VRG QT is fair and bright. No caution is needed for small and medium business 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)
	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.54.29
UK Pound	1	Rs.86.61
Euro	1	Rs.68.87

INFORMATION DETAILS

Report Prepared by :

MNL

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.