MIRA INFORM REPORT

Report Date :

01.10.2012

IDENTIFICATION DETAILS

Name :	ASIA TEA COMPANY LIMITED
Registered Office :	Room 1603, 17T3 Building Trung Hoa - Nhan Chinh New Urban Area, Trung Hoa Ward, Cau Giay District, Ha Noi City
Country :	Vietnam
Financials (as on) :	31.12.2010
Date of Incorporation :	20.02.2004
Com. Reg. No.:	0102011342
Legal Form :	Limited Liability Company
Line of Business :	Specialized in manufacturing kind of tea.
No. of Employees :	350

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Vietnam	B1	B1

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
English Name	ASIA TEA COMPANY LIMITED
Vietnamese Name	CONG TY TNHH CHE A CHAU
Short name	ASIATEA CO., LTD
Type of Business	Limited liability company
Year Established	2004
Business Registration No.	0102011342
Date of Registration	20 Feb 2004
Place of Registration	Planning and Investment Department of Ha Noi City
Chartered capital	VND 9,500,000,000
Status	Unlisted
Tax code	0101454070
Total Employees	350

ADDRESSES
Head Office
Address	Room 1806, 24T1 Building, Trung Hoa - Nhan Chinh New Urban Area, Hoang Dao Thuy Street , Cau Giay District, Ha Noi City, Vietnam
Telephone	(84-4) 6281 2771
Fax	(84 -4) 62812771
Email	astc@pmail.vnn.vn
Website	asiatea.com.vn
Registration Address
Address	Room 1603, 17T3 Building Trung Hoa - Nhan Chinh New Urban Area, Trung Hoa Ward, Cau Giay District, Ha Noi City, Vietnam
Telephone	(84-4) 22510010
Email	astc@pmail.vnn.vn
Website	www.asiatea.com.vn
Factory Address
Address	Nhong Street, Thai Hoa Commune, Ba Vi District, Ha Noi City, Vietnam
Factory Address
Address	Phu My A Idustrial Park, Phu Commune , Ba Vi District, Ha Noi City, Vietnam
Factory Address
Address	Tan Thanh Hamlet, Ngoc Lap Commune, Yen Lap District, Phu Tho Province, Vietnam

DIRECTORS
1. NAME	Mr. LA HONG QUANG
Position	Director
Date of Birth	07 Sep 1957
ID Number/Passport	011521002
ID Issue Date	28 Oct 1999
ID Issue Place	Police Department of Hanoi City
Resident	Room 2, C28 Building Kim Giang Resident Quarter, Kim Giang Ward, Thanh Xuan District, Ha Noi City, Vietnam
Current resident	No. 77 Lane 68/53/22, Cau Giay Street, Quan Hoa Ward, Cau Giay District, Ha Noi City, Vietnam
Nationality	Vietnamese
2. NAME	Mr. PHAN THAI
Position	Deputy Director
ID Number/Passport	010236810
Resident	No. 6, Lane 612/34/6 La Thanh Street, Giang Vo Ward, Ba Dinh District, Ha Noi City, Vietnam
Nationality	Vietnamese
3. NAME	Mr. NGUYEN VAN QUY
Position	Deputy Director cum Chief Accountant
ID Number/Passport	111364451
Resident	Hamlet 4 Dac So Commune, Hoai Duc District, Ha Noi City, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in manufacturing kind of tea.

Trading supplies, equipments, tea and food packaging.

Exporting Black tea (Orthodox, CTC Black tea).

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Machines
· Market	India, Japan, Korea, Russia
· Mode of payment	L/C, T/T advance
EXPORT:
· Types of products	Tea products
· Market	Europe, America, Middle East, Sri Lanka
· Mode of payment	L/C, T/T advance

BANKERS
1. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE THANH XUAN BRANCH
Address	No.275 Nguyen Trai str, Thanh Xuan District, Ha Noi City, Vietnam
Telephone	(84-4) 38585603
2. MILITARY COMMERCIAL JOINT STOCK BANK TRAN DUY HUNG BRANCH
Address	No 17/T2 Hoang Dao Thuy street, Cau Giay District, Ha Noi City, Vietnam
Telephone	(84-4)3281 2959
Fax	(84-4)3281 2955
3. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK BA DINH BRANCH
Address	Floor1 and Floor 2 Harec Building,No.4A Lang Ha,Thanh Cong, Ba Dinh District, Ha Noi City, Vietnam

SHAREHOLDERS
1. NAME	Mr. LA HONG QUANG
Position	Director
Date of Birth	07 Sep 1957
ID Number/Passport	011521002
Issued on	28 Oct 1999
Issued Place	Police Department of Hanoi City
Resident	Room 2, C28 Building Kim Giang Resident Quarter, Kim Giang Ward, Thanh Xuan District, Ha Noi City, Vietnam
Current Resident	No. 77 Lane 68/53/22, Cau Giay Street, Quan Hoa Ward, Cau Giay District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 3,800,000,000
Percentage	40%
2. NAME	Mr. PHAN THAI
Position	Deputy Director
ID Number/Passport	010236810
Resident	No. 6, Lane 612/34/6 La Thanh Street, Giang Vo Ward, Ba Dinh District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 3,800,000,000
Percentage	40%
3. NAME	Mr. NGUYEN VAN QUY
Position	Deputy Director cum Chief Accountant
ID Number/Passport	111364451
Resident	Hamlet 4 Dac So Commune, Hoai Duc District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 1,900,000,000
Percentage	20%

FINANCIAL DATA
BALANCE SHEET
Unit: Million VND
Balance sheet date	31/12/2010	31/12/2009
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	84,096	63,682
I. Cash and cash equivalents	662	1,511
1. Cash	662	1,511
2. Cash equivalents	0	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	14,604	10,283
1. Receivable from customers	14,604	10,283
2. Prepayments to suppliers	0	0
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	0	0
6. Provisions for bad debts	0	0
IV. Inventories	63,443	49,287
1. Inventories	63,443	49,287
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	5,387	2,601
1. Short-term prepaid expenses	5,349	2,563
2. VAT to be deducted	0	0
3. Taxes and other accounts receivable from the State	38	38
4. Other current assets	0	0
B. LONG-TERM ASSETS	26,325	26,223
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	20,808	20,725
1. Tangible assets	20,808	19,319
- Historical costs	31,152	25,905
- Accumulated depreciation	-10,344	-6,586
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	0	0
- Initial costs	0	0
- Accumulated amortization	0	0
4. Construction-in-progress	0	1,406
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	5,319	5,300
1. Investments in affiliates	0	0
2. Investments in business concerns and joint ventures	0	0
3. Other long-term investments	5,319	5,300
4. Provisions for devaluation of long-term investments	0	0
V. Other long-term assets	198	198
1. Long-term prepaid expenses	0	0
2. Deferred income tax assets	0	0
3. Other long-term assets	198	198
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	110,421	89,905
LIABILITIES
A- LIABILITIES	86,097	80,081
I. Current liabilities	86,097	80,081
1. Short-term debts and loans	61,338	57,069
2. Payable to suppliers	21,932	23,012
3. Advances from customers	2,827	0
4. Taxes and other obligations to the State Budget	0	0
5. Payable to employees	0	0
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	0	0
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	0	0
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	0	0
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	0	0
7. Provisions for long-term accounts payable	0	0
B- OWNER’S EQUITY	24,324	9,824
I. OWNER’S EQUITY	24,324	9,824
1. Capital	25,192	11,144
2. Share premiums	0	0
3. Other sources of capital	0	0
4. Treasury stocks	0	0
5. Differences on asset revaluation	0	0
6. Foreign exchange differences	0	0
7. Business promotion fund	0	0
8. Financial reserved fund	0	0
9. Other funds	99	99
10. Retained earnings	-967	-1,419
11. Construction investment fund	0	0
II. Other sources and funds	0	0
1. Bonus and welfare funds (Elder form)	0	0
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	110,421	89,905

PROFIT & LOSS STATEMENT
Description	FY2010
1. Total Sales	147,542
2. Deduction item
3. Net revenue	147,542
4. Costs of goods sold	124,451
5. Gross profit	23,091
6. Financial income	519
7. Financial expenses	7,408
- In which: Loan interest expenses	6,767
8. Selling expenses	15,608
9. Administrative overheads	0
10. Net operating profit	594
11. Other income	606
12. Other expenses	579
13. Other profit /(loss)	27
14. Total accounting profit before tax	621
15. Current corporate income tax	168
16. Deferred corporate income tax	0
17. Interest from subsidiaries/related companies	0
18. Profit after tax	453

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	Average Industry
Current liquidity ratio	0.98	0.80	1.70
Quick liquidity ratio	0.24	0.18	1.05
Inventory circle	2.21	-	7.68
Average receive period	36.13	-	37.77
Utilizing asset performance	1.34	-	1.72
Liability by total assets	77.97	89.07	51.74
Liability by owner's equity	353.96	815.16	145.40
Ebit / Total assets (ROA)	6.69	-	14.18
Ebit / Owner's equity (ROE)	30.37	-	31.73
Ebit / Total revenue (NPM)	5.01	-	10.11
Gross profit / Total revenue (GPM)	15.65	-	20.29
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Fair
Liquidity	Low/Medium
Payment status	Average
Financial Situation	Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	T/T; L/C advance
Sale Methods	Wholesaler
Public opinion	Good

INTERPRETATION ON THE SCORES

ASEA TEA COMPANY LIMITED was established in 2004 under Business Registration No. 0102011342, it is registered by Planning and Investment Department of Ha Noi city with total capital of VND 9.5 billion and the tax code No. 0101454070.

The subject is specializing in manufacturing kinds of tea. Its tea products for export include Orthodox Black tea, CTC Black tea, Green tea and flavored tea. Its products have diverse packaging such as: Kraft, PP, PE, EMPET, duplex box, carton... The subject imports machines and equipment from Russia, India, Korea and Japan. Its products mainly exported to Europe, America, Sri Lanka and Middle East.

The operational scale is relatively large. It has two manufacturing factories located in Ngoc Lap commune, Yen Lap district, Phu Tho province, Vietnam; a tea processing factory and a tea refining and packaging factory situated in Ba Vi district, Ha Noi city, Vietnam. Now, the subject has about 350 employees.

According to its financial data, the subject attained VND 147,542 million in total sales and VND 453 million in profit after tax in 2010. Following Mr. Tan, accountant of the subject company, the company remained stable revenue and profit levels in 2011 and the plan for 2012 will not change so much. Its financial ratios were humble and the liquidity ratios were low. Specially, the current liquidity ratio was lower than 1. This may shows that the subject did not guarantee financial security principles.

Shortly, the subject's operation is normal. It needs to improve the liquidity ratios to meet its commitments. Currently, the subject has capacity to meet normal commitments and no caution needed for business transactions.

------------ 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.52.69
UK Pound	1	Rs.85.71
Euro	1	Rs.68.15

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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