MIRA INFORM REPORT

Report Date :

07.11.2012

IDENTIFICATION DETAILS

Name :	PRIME TRADE INC
Registered Office :	2 Floor Tien Phong Building Binh Xuyen Industrial Zone - Huong Canh Town, Binh Xuyen District, Vinh Phuc Province

Country :	Vietnam

Financials (as on) :	31.12.2011

Year of Establishment :	2006

Com. Reg. No.:	2500260507

Legal Form :	One member liability limited company

Line of Business :	Import and trading in materials for enameled tile production

No. of Employees :	70

RATING & COMMENTS

MIRA’s Rating :

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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Vietnam

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

VIETNAM - ECONOMIC OVERVIEW

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
English Name		PRIME TRADE INC
Vietnamese Name		CONG TY TNHH MOT THANH VIEN THUONG MAI VA XUAT NHAP KHAU PRIME
Type of Business		One member liability limited company
Year Established		2006
Business Registration No.		2500260507
Date of Registration		22 Dec 2009
Latest Date of Registration		11 Apr 2012
Place of Registration		Vinh Phuc Department of Planning and Investment
Chartered capital		VND 300,000,000,000
Status		Unlisted
Tax code		2500260507
Total Employees		70
Size		Large

Note: The name given can be seen as translated name of the subject.

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Chartered capital: VND 100,000,000,000 Changed to: VND 300,000,000,000	11 Apr 2012
2	Subject has got former Business Registration No: 1904000054 Changed to: 2500260507, same to the tax code number according to the new law of Vietnam.	22 Dec 2009
3	Subject has got former Registered Vietnamese Name: CONG TY TNHH THUONG MAI VA XUAT NHAP KHAU PRIME Changed to: CONG TY TNHH MOT THANH VIEN THUONG MAI VA XUAT NHAP KHAU PRIME	29 Jun 2007
4	Subject has got former Type of Business: Liability Limited Company Changed to: One member Liability Limited Company	29 Jun 2007
5	Subject has got former Business Registration No: 1902000997 Issuance on: September 14th 2006 Changed to: 1904000054	29 Jun 2007
6	Subject has got former chartered capital: 10,000,000,000 VND Changed to: 50,000,000,000 VND	29 Jun 2007
7	Subject has got former Board Of Director: Two Deputy directors: Mr. NGUYEN THUY HUONG and Mr. NGUYEN VIET HA Changed to: Mr. PHAM NGOC THANH and Mr. LE VAN PHUONG	N/A
8	Subject has got former chartered capital: 50,000,000,000 VND Changed to: 100,000,000,000 VND	N/A
9	Subject has got former Board Of Director: Mr. NGUYEN VAN NGHIA Changed to: Mr. PHAM NGOC THANH	N/A


ADDRESSES

Head Office
Address		2 Floor Tien Phong Building Binh Xuyen Industrial Zone - Huong Canh Town, Binh Xuyen District, Vinh Phuc Province, Vietnam
Telephone		(84-211) 3596450 / 3898275 / 2212842
Fax		(84-211) 3888986/ 3898276

SUBSIDIARIES AND RELATED COMPANIES

1. PARENT COMPANY - PRIME GROUP JOINT STOCK COMPANY
Business Registration		2500235250
Date of Registration		29 Dec 2009
Place of Registration		Vinh Phuc Department of Planning and Investment
Registered Capital		VND 1,009,033,281,490
Tax code		2500235250
Address		Binh Xuyen Industrial Zone Huong Canh Commune, Binh Xuyen District, Vinh Phuc Province, Vietnam
Tel		(84-211) 388 8987
Fax		(84-211) 388 8986/ 3898 275
Website		http://www.primegroup.com.vn

DIRECTORS

1. NAME		Mr. PHAM NGOC THANH
Position		Director
Date of Birth		28 Jun 1977
ID Number/Passport		135245999
ID Issue Date		24 May 2011
ID Issue Place		Vinh Phuc Police Department
Resident		Dong Son Urban Area Trung Nhi Ward, Phuc Yen District, Vinh Phuc Province, Vietnam
Nationality		Vietnamese
Note		The current director of the subject is Mr. PHAM NGOC THANH. Mr. NGUYEN VAN NGHIA is old.

2. NAME		Mr. LE VAN PHUONG
Position		Deputy Director
Date of Birth		06 Feb 1976
Current resident		Vinh Phuc Province, Vietnam
Nationality		Vietnamese
Tel/Mobile phone		+84 982078888

BUSINESS NATURE AND ACTIVITIES

The subject registered in the following lines of business:
-Import and trading in materials for enameled tile production
-Trading in materials for construction
-Export materials for construction

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		Materials
· Market		China, India, Spain, Italy, Thailand, U.S.A, Korea
· Ratio		N/A
· Mode of payment		Transferred through its bank and Cash

EXPORT:
· Market		Middle of East, Iran, Iraq, Korea, Southeast Asia, Europe …
· Ratio		N/A
· Mode of payment		Transferred through its bank and Cash


BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM VINH PHUC BRANCH
Address		No.116 Ngo Quyen, Vinh Yen City, Vinh Phuc Province, Vietnam
Telephone		(84-211) 3720931 / 3720920
Fax		(84-211) 3720921 / 3720934

2. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE BINH XUYEN ZONE BRANCH
Address		No. 1 Town Huong Canh ward, Binh Xuyen District, Vinh Phuc Province, Vietnam
Telephone		(84-211) 3887737
VND Account		102010000470953

3. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK DA NANG BRANCH
Address		No. 244 - 248 Nguyen Van Linh Str., Hai Chau District, Da Nang City, Vietnam
Telephone		(84-511) 3655 118
Fax		(84-511) 3655 455

4. HONGKONG AND SHANGHAI BANKING CORP (HSBC)
Address		No. 23 Phan Chu Trinh Str., Hoan Kiem District, Ha Noi City, Vietnam

SHAREHOLDERS

1. NAME		PRIME GROUP JOINT STOCK COMPANY
Business Registration		2500235250
Date of Registration		29 Dec 2009
Place of Registration		Vinh Phuc Department of Planning and Investment
Registered Capital		VND 1,009,033,281,490
Tax code		2500235250
Address		Binh Xuyen Industrial Zone Huong Canh Commune, Binh Xuyen District, Vinh Phuc Province, Vietnam
Tel		(84-211) 388 8987
Fax		(84-211) 388 8986 / 3898 275
Email		primegroup@vnn.vn
Website		http://www.primegroup.com.vn
Percentage		100%

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
ASSETS
A – CURRENT ASSETS	938,774,447,241	1,071,273,433,617	729,828,945,291
I. Cash and cash equivalents	36,421,202,637	42,610,734,959	39,853,001,836
1. Cash	36,421,202,637	42,610,734,959	39,853,001,836
2. Cash equivalents	0	0	0
II. Short-term investments	12,414,325,430	22,083,322,291	94,860,566,355
1. Short-term investments	12,414,325,430	22,083,322,291	94,860,566,355
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	840,583,042,913	930,107,758,010	528,771,174,657
1. Receivable from customers	48,001,453,061	74,815,238,033	90,150,125,360
2. Prepayments to suppliers	134,845,101,491	15,827,843,250	26,625,021,007
3. Inter-company receivable	655,974,911,564	824,945,863,670	406,649,210,076
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	2,405,971,959	14,907,496,635	14,339,831,843
6. Provisions for bad debts	-644,395,162	-388,683,578	-8,993,013,629
IV. Inventories	49,355,876,261	73,089,175,404	58,055,231,933
1. Inventories	49,355,876,261	73,089,175,404	58,055,231,933
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	0	3,382,442,953	8,288,970,510
1. Short-term prepaid expenses	0	3,382,442,953	884,233,783
2. VAT to be deducted	0	0	225,486,278
3. Taxes and other accounts receivable from the State	0	0	0
4. Other current assets	0	0	7,179,250,449
B. LONG-TERM ASSETS	297,861,017,753	9,799,347,716	73,879,876,457
I. Long term accounts receivable	110,000,000,000	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	110,000,000,000	0	0
4. Other long-term receivable	0	0	0
5. Provisions for bad debts from customers	0	0	0
II. Fixed assets	7,302,822,703	9,799,347,716	7,716,190,811
1. Tangible assets	2,065,811,825	2,637,996,112	1,056,894,420
- Historical costs	2,667,943,191	3,289,868,757	1,448,558,385
- Accumulated depreciation	-602,131,366	-651,872,645	-391,663,965
2. Financial leasehold assets	4,612,810,853	6,440,153,143	5,824,224,494
- Historical costs	7,543,129,671	9,268,029,799	7,679,713,805
- Accumulated depreciation	-2,930,318,818	-2,827,876,656	-1,855,489,311
3. Intangible assets	624,200,025	721,198,461	835,071,897
- Initial costs	928,987,524	910,987,524	910,987,524
- Accumulated amortization	-304,787,499	-189,789,063	-75,915,627
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	180,558,195,050	0	66,163,685,646
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	0	0
3. Other long-term investments	180,558,195,050	0	66,163,685,646
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	0	0	0
1. Long-term prepaid expenses	0	0	0
2. Deferred income tax assets	0	0	0
3. Other long-term assets	0	0	0
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	1,236,635,464,994	1,081,072,781,333	803,708,821,748

LIABILITIES
A- LIABILITIES	929,738,937,261	1,024,736,448,761	749,003,562,645
I. Current liabilities	927,649,646,185	1,023,842,290,953	746,175,495,254
1. Short-term debts and loans	358,954,246,545	482,053,741,697	321,428,668,965
2. Payable to suppliers	140,818,794,821	223,275,242,328	153,981,377,039
3. Advances from customers	114,665,849,397	34,674,371,735	84,932,054,008
4. Taxes and other obligations to the State Budget	1,015,580,411	6,741,944,797	5,280,507,817
5. Payable to employees	1,501,864,387	1,573,854,912	1,581,067,237
6. Accrued expenses	0	17,310,393,974	12,415,734,021
7. Inter-company payable	280,722,087,947	257,261,862,713	156,215,232,571
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	0	950,878,797	10,340,853,596
10. Provisions for short-term accounts payable	29,894,926,159	0	0
11. Bonus and welfare funds	76,296,518	0	0
II. Long-Term Liabilities	2,089,291,076	894,157,808	2,828,067,391
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	186,000,000	0	0
4. Long-term debts and loans	323,259,808	894,157,808	2,828,067,391
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
8. Unearned Revenue	1,580,031,268	0	0
9. Science and technology development fund	0	0	0
B- OWNER’S EQUITY	306,896,527,733	56,336,332,572	54,705,259,103
I. OWNER’S EQUITY	306,896,527,733	56,329,574,615	54,655,565,055
1. Capital	300,000,000,000	50,000,000,000	50,000,000,000
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	-5,002,345	0
6. Foreign exchange differences	-33,986,070	0	1,080,031,906
7. Business promotion fund	0	0	0
8. Financial reserved fund	12,436,359	266,911,518	0
9. Other funds	0	0	0
10. Retained earnings	6,918,077,444	6,067,665,442	3,575,533,149
11. Construction investment fund	0	0	0
12. Business arrangement supporting fund	0	0	0
II. Other sources and funds	0	6,757,957	49,694,048
1. Bonus and welfare funds (Elder form)	0	6,757,957	49,694,048
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	1,236,635,464,994	1,081,072,781,333	803,708,821,748


PROFIT & LOSS STATEMENT

Description	FY2011	FY2010	FY2009
1. Total Sales	5,962,465,110,116	5,081,062,788,669	4,354,199,007,582
2. Deduction item	150,619,316,436	150,126,782,506	101,691,540,190
3. Net revenue	5,811,845,793,680	4,930,936,006,163	4,252,507,467,392
4. Costs of goods sold	5,698,146,720,712	4,849,456,290,297	4,214,633,551,381
5. Gross profit	113,699,072,968	81,479,715,866	37,873,916,011
6. Financial income	13,411,194,863	15,714,285,230	32,654,494,112
7. Financial expenses	104,323,408,824	60,913,200,807	36,394,462,682
- In which: Loan interest expenses	86,866,705,844	47,529,263,916	24,718,577,505
8. Selling expenses	11,159,631,113	20,479,439,435	11,388,261,195
9. Administrative overheads	10,316,927,563	11,322,702,287	16,065,011,799
10. Net operating profit	1,310,300,331	4,478,658,567	6,680,674,447
11. Other income	4,978,349,208	1,665,455,476	2,329,112,343
12. Other expenses	4,684,173,457	6,575,321	5,506,850,263
13. Other profit /(loss)	294,175,751	1,658,880,155	-3,177,737,920
14. Total accounting profit before tax	1,604,476,082	6,137,538,722	3,502,936,527
15. Current corporate income tax	280,783,314	1,534,384,680	613,013,892
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	1,323,692,768	4,603,154,042	2,889,922,635


FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	1.01	1.05	0.98	1.21
Quick liquidity ratio	0.96	0.97	0.90	0.72
Inventory circle	93.07	66.35	79.57	12.25
Average receive period	52.79	68.85	45.39	51.49
Utilizing asset performance	4.70	4.56	5.29	2.30
Liability by total assets	75.18	94.79	93.19	59.32
Liability by owner's equity	302.95	1,818.96	1,369.16	229.17
Ebit / Total assets (ROA)	7.15	4.96	3.51	8.16
Ebit / Owner's equity (ROE)	28.83	95.26	51.59	24.08
Ebit / Total revenue (NPM)	1.48	1.06	0.65	6.61
Gross profit / Total revenue (GPM)	1.91	1.60	0.87	16.82
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Fair
Liquidity		Medium
Payment status		Above Average
Financial Situation		Above Average
Development trend		Positive
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		By cash or transferred through its bank
Sale Methods		OEM Supplier
Public opinion		Well-known

INTERPRETATION ON THE SCORES

The subject - PRIME TRADE INC was established in 2006 under the business registration No. 1902000997. In June 2007, the subject was changed into One member liability limited company and the business registration adjusted to no. 1904000054. After that, its Business Registration Number also was changed to No. 2500260507 which is also its tax code. Currently, the subject’s chartered capital is 300 billion VND. Its shareholder is also its parent company - Prime Group. This is multi-functional companies group in Vietnam, operating in several fields in which main core is building materials and properties. Its main function is to invest.

The initial form of the subject is an import export department of Prime Group. Aiming to expand import and export transaction, the director of this group decided to establish the subject. Prime Group also aims to export its products to oversee through the subject. Its import markets are China, India, Spain, Italy, Thailand, U.S.A, Korea and the export markets are Middle of East, Iran, Iraq, Korea, Southeast Asia, Europe …

The premises of the subject are above average. Its head office is located on 2 Floor Tien Phong Building Binh Xuyen Industrial Zone - Huong Canh Town, Binh Xuyen District, Vinh Phuc Province, Vietnam. Now, the subject has about 70 employees. Its management capability is good, too.

According to the financial statement of the subject, we can see that its business results were good. Its total sales increased year after year. This number was gone up from VND 1,813,738 million in 2007 to VND 5,962,465 million in 2011. However, its profit after tax was still normal. Besides, in 2011, its profit after tax was decreased 71.24% from VND 4,603 million to VND 1,323 million. This was caused by high financial expenses and other expenses.

In terms of financial ratios, its liquidity ratios were average. The subject guaranteed the financial security principles. Its operational ratios were also good. They were better than average industry. However, the profitability ratios were still normal. Specially, NPM and GPM ratios were limited (only 1.91 and 1.48).

In general, the subject is a medium – large company. It has many supports from its parent company. However, the subject should be tried to increase its profitability ratios. Currently, it has ability to meet all normal financial commitments.

------------ APPENDIX ----------

INDUSTRY DATA

Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2010		Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,887		24,362.9	95,227
Industry and Construction	5.53	7.70	95,217		10,718.9	3,641,376
Trade and Services	6.69	7.52	187,195		15,270.2	6,957,082

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.54.59
UK Pound	1	Rs.87.31
Euro	1	Rs.69.86

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status

ADDRESSES

SUBSIDIARIES AND RELATED COMPANIES

DIRECTORS

BUSINESS NATURE AND ACTIVITIES

IMPORT & EXPORT ACTIVITIES

BANKERS

SHAREHOLDERS

FINANCIAL DATA

Unit: One VND

ASSETS

LIABILITIES

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

INTERPRETATION ON THE SCORES

INDUSTRY DATA

ECONOMIC INDICATORS

SERVICE TRADE PERFORMANCE

Unit