MIRA INFORM REPORT

Report Date :

29.05.2012

IDENTIFICATION DETAILS

Name :	TAN HUNG TRADING DEVELOPMENT JOINT STOCK COMPANY

Registered Office :	No. 11B Alley 1 Van Phuc Str, Kim Ma Ward , Ba Dinh District, Ha Noi City

Country :	Vietnam

Financials (as on) :	31.12.2011

Year of Establishment :	2009

Com. Reg. No.:	0104195321

Legal Form :	Joint Stock Company

Line of Business :	Providing Transport Services

No. of Employees :	04

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Poor
Payment Behaviour :	Unknown
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		TAN HUNG TRADING DEVELOPMENT JOINT STOCK COMPANY
Vietnamese Name		CONG TY CO PHAN PHAT TRIEN THUONG MAI TAN HUNG
Short name		T & H TRAD., JSC
Type of Business		Joint stock company
Year Established		2009
Business Registration No.		0104195321
Date of Registration		05 Jan 2011
Place of Registration		Planning and Investment Department of Ha Noi City
Chartered capital		VND 1,140,000,000
Status		Unlisted
Tax code		0104195321
Total Employees		4
Size		Small

Historical Identification & Legal form

List

Changed Items

Date of changes

Subject has got former Business Registration No: 0103041071

Changed to: 0104195321

05 Jan 2011

company ADDRESSES

Registration Address
Address		No. 11B Alley 1 Van Phuc Str, Kim Ma Ward , Ba Dinh District, Ha Noi City, Vietnam
Note: The address given is incorrect. The correct one is as above.
Transaction office in Ha Noi
Address		No. 90 Doc Ngu Str , Ba Dinh District, Ha Noi City, Vietnam
Telephone		(84-4) 66726412
Fax		(84-4) 37223379

DIRECTORS

1. NAME		Ms. TRAN THU HOA
Position		Director
Date of Birth		10 Feb 1976
ID Number/Passport		131210991
ID Issue Date		17 Mar 2009
ID Issue Place		Phu Tho Province Public Security
Resident		Da Tho Area, Phong Chau Town , Phu Ninh District, Phu Tho Province, Vietnam
Current resident		No. 102, Transport 27/7 Cooperative Alley 189, Hoang Hoa Tham Str, Lieu Giai Ward, Ba Dinh District, Ha Noi City, Vietnam
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

- Providing transport services
- import - export agriculture products

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Market		India

EXPORT:
· Market		China

BANKERS

1. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK DONG DA BRANCH
Address		No.192 Thai Ha, Dong Da District, Ha Noi City, Vietnam
Telephone		(84-4) 3537 3586
Fax		(84-4) 3537 3565

SHAREHOLDERS

1. NAME		Mr. TRAN PHU
ID Number/Passport		131426996
Resident		Da Tho Area, Phong Chau Town , Phu Ninh District, Phu Tho Province, Vietnam
Nationality		Vietnamese
Number of Shares		38,000
Value of shares		VND 380,000,000
Percentage		33%

2. NAME		Mr. NGUYEN CHIEN THANG
ID Number/Passport		013103327
Resident		P3, Q15, Tuong Mai Ward , Hoang Mai District, Ha Noi City, Vietnam
Nationality		Vietnamese
Number of Shares		38,000
Value of shares		VND 380,000,000
Percentage		33%

3. NAME		Ms. TRAN THU HOA
Position		Director
Date of Birth		10 Feb 1976
ID Number/Passport		131210991
Issued on		17 Mar 2009
Issued Place		Phu Tho Province Public Security
Resident		Da Tho Area, Phong Chau Town , Phu Ninh District, Phu Tho Province, Vietnam
Current Resident		No. 102, Transport 27/7 Cooperative Alley 189, Hoang Hoa Tham Str., Lieu Giai Ward, Ba Dinh District, Ha Noi City, Vietnam
Nationality		Vietnamese
Number of Shares		38,000
Value of shares		VND 380,000,000
Percentage		33%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	-1,573,589,272	-805,798,153
I. Cash and cash equivalents	172,209,603	501,550,319
1. Cash	172,209,603	501,550,319
2. Cash equivalents
II. Short-term investments
1. Short-term investments
2. Provisions for devaluation of short-term investments
III. Accounts receivable	-1,950,301,022	-2,069,614,683
1. Receivable from customers	-1,950,301,022	-2,069,614,683
2. Prepayments to suppliers
3. Inter-company receivable
4. Receivable according to the progress of construction
5. Other receivable
6. Provisions for bad debts
IV. Inventories	173,146,000	211,010,000
1. Inventories	173,146,000	211,010,000
2. Provisions for devaluation of inventories
V. Other Current Assets	31,356,147	551,256,211
1. Short-term prepaid expenses
2. VAT to be deducted
3. Taxes and other accounts receivable from the State	31,356,147	251,256,211
4. Other current assets		300,000,000
B. LONG-TERM ASSETS	674,815,648	674,815,648
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	674,815,648	674,815,648
1. Tangible assets	674,815,648	674,815,648
- Historical costs	724,098,701	724,098,701
- Accumulated depreciation	-49,283,053	-49,283,053
2. Financial leasehold assets
- Historical costs
- Accumulated depreciation
3. Intangible assets
- Initial costs
- Accumulated amortization
4. Construction-in-progress
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	-898,773,624	-130,982,505

LIABILITIES
A- LIABILITIES	-1,568,156,947	-1,181,890,783
I. Current liabilities	-1,855,551,356	-1,626,338,783
1. Short-term debts and loans	-100,000,000	-100,000,000
2. Payable to suppliers	-1,782,551,356	-1,717,077,370
3. Advances from customers
4. Taxes and other obligations to the State Budget		190,738,587
5. Payable to employees	27,000,000
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	287,394,409	444,448,000
1. Long-term accounts payable to suppliers
2. Long-term inter-company payable
3. Other long-term payable
4. Long-term debts and loans	287,394,409	444,448,000
5. Deferred income tax payable
6. Provisions for unemployment allowances
7. Provisions for long-term accounts payable
B- OWNER’S EQUITY	669,383,323	1,050,908,278
I. OWNER’S EQUITY	669,383,323	1,050,908,278
1. Capital	1,140,000,000	1,140,000,000
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	-470,616,677	-89,091,722
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	-898,773,624	-130,982,505

PROFIT & LOSS STATEMENT

Description	FY2011
1. Total Sales	12,308,028,723
2. Deduction item
3. Net sale	12,308,028,723
4. Costs of goods sold	12,064,129,938
5. Gross profit	243,898,785
6. Financial income	1,598,675
7. Financial expenses	58,069,903
- In which: Loan interest expenses
8. Selling expenses
9. Administrative overheads	568,952,512
10. Net operating profit	-381,524,955
11. Other income
12. Other expenses
13. Other profit /(loss)
14. Total accounting profit before tax	-381,524,955
15. Current corporate income tax
16. Deferred corporate income tax
17. Interest from subsidiaries/related companies
18. Profit after tax	-381,524,955

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2011	FY2010	Average Industry
Current liquidity ratio	0.85	0.50	1.04
Quick liquidity ratio	0.94	0.63	0.88
Inventory circle	69.68	-	26.27
Average receive period	-57.84	-	63.73
Utilizing asset performance	-13.69	-	0.61
Liability by total assets	174.48	902.33	66.29
Liability by owner's equity	-234.27	-112.46	303.47
Ebit / Total assets (ROA)	42.45	-	7.69
Ebit / Owner's equity (ROE)	-57.00	-	34.21
Ebit / Total sale (NPM)	-3.10	-	15.75
Gross profit / Total sale (GPM)	1.98	-	23.61
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CREDIT INQUIRY: USD 125,000 Against da interm

Caution is needed!

INTERPRETATION ON THE SCORES

T & H TRAD., JSC was established in late year of 2009. Currently, it is operating under the business registration No. 0104195321 (same with tax code), and the capital of VND 1,140,000,000, which is a small amount.

The subject registers head office at No. 11B Alley 1 Van Phuc Str, Kim Ma Ward, Ba Dinh District, Ha Noi City, Vietnam. However, almost its transaction is carried out at No. 90 Doc Ngu Str , Ba Dinh District, Ha Noi City, Vietnam. We visited the office; its facility is rather poor, with only 4 staffs there. The subject specializes in supplying transport services, including domestic land, and waterway transport. Besides, it participates in importing agriculture product from India, then exporting to China.

In term of finance, in 2011, its business effectiveness was not good. According to Ms. Quynh, chief accountant, the subject faced with many difficulties from impact of general market, and exchange rate differences.

In general, subject is a new and small company in the industry. It has capacity to meet small 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.55.26
UK Pound	1	Rs.86.80
Euro	1	Rs.69.63

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.