MIRA INFORM REPORT

Report Date :

23.10.2012

IDENTIFICATION DETAILS

Name :	SELF ADHESIVE SPECIALTIES VIETNAM JOINT STOCK COMPANY
Registered Office :	Lot 2/10 Phan Thiet Industrial Zone, Phan Thiet City, Binh Thuan Province
Country :	Vietnam
Financials (as on) :	31.12.2011
Year of Establishment :	2007
Legal Form :	Joint Stock Company
Line of Business :	The subject specializes in manufacturing and trading paper and paper products, high class of self adhesive specialties for printing industry, packaging and labeling.
No. of Employees :	150

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 :	Slow
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
Current legal status
English Name	SELF ADHESIVE SPECIALTIES VIETNAM JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN VAT LIEU TU DINH VIET NAM
Short name	SASCOAT VIETNAM
Type of Business	Joint stock company
Year Established	2007
Investment Certificate No	482032000059
Date Of Issuance	02 Aug 2010
Place of Issuance	Binh Thuan Industrial Zone Authority
Registered Investment Capital	USD 23,500,000
Chartered capital	USD 14,826,219
Investment Duration	49 year
Status	Unlisted
Tax code	3400446309
Total Employees	150
Size	Medium

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Registered Investment Capital: 19,165,000 USD Changed to: 23,500,000 USD	02 Nov 2011
2	Subject has got former Chartered capital: 12,875,000 USD Changed to: 14,826,219 USD	02 Nov 2011
3	Subject has got former Investment Certificate No: 482032000017 Changed to: 482032000059	02 Aug 2010
4	Subject has got former Chartered capital: USD 10,000,000 Changed to: USD 12,875,000	02 Aug 2010
5	Subject has got former Registered English Name: SELF ADHESIVE SPECIALTIES VIETNAM COMPANY LIMITED Changed to: SELF ADHESIVE SPECIALTIES VIETNAM JOINT STOCK COMPANY	01 May 2010
6	Subject has got former Registered Vietnamese Name: CONG TY TNHH SASCOAT VIETNAM Changed to: CONG TY CO PHAN VAT LIEU TU DINH VIETNAM	01 May 2010
7	Subject has got former Investment Certificate No: No.06/GP-KCN-BT (issued 24th Feb 2006) Changed to: No.482032000017	01 May 2007
8	Subject has got former Chartered capital: 5,550,000 USD Changed to: 10,000,000 USD	01 May 2007

ADDRESSES
Head Office- Factory
Address	Lot 2/10 Phan Thiet Industrial Zone, Phan Thiet City, Binh Thuan Province, Vietnam
Telephone	(84-62) 383 7740~3
Fax	(84-62) 383 7767
Email	info@sascoat.com
Website	http://www.sascoat.com
Note: This is also the address of the factory which was started constructing in Feb 2008. It has been operating since 2010
Representative office in Ho Chi Minh
Address	4th Floor - No. 68-70 Hoang Dieu Street, Ward 12, 4 District, Ho Chi Minh City, Vietnam
Telephone	(84) 936232431
Fax	(84-8) 62618009
Email	wilco.vanzwieten@gmail.com
Land-use Right	Leased

DIRECTORS
1. NAME	Mr. NGUYEN HOANG NAM
Position	General Director
Date of Birth	1952
ID Number/Passport	EH835236
ID Issue Date	29 Jun 2009
ID Issue Place	Watermael Boisfort
Resident	Avenue des Gerfauts 15/1 - 1170 Brussels , 1190 Brussels , Belgium
Current resident	C 24 - Mui Ne Vila Group 5 - Phu Hai Ward, Phan Thiet City, Binh Thuan Province, Vietnam
Nationality	Belgian
Tel/Mobile phone	(84) 988 656 324
Email	hoangnam@sascoat.com
2. NAME	Mr. WILCO VAN ZWIETEN
Position	Commercial Director
Current resident	4th Floor, No. 68-70 Hoang Dieu Street, Ward 12, 4 District, Ho Chi Minh City, Vietnam
Nationality	Dutch
Email	wilco.vanzwieten@gmail.com
4. NAME	Mr. TRAN VIET THINH
Position	Finance Director
Nationality	Vietnamese
3. NAME	Ms. NGUYEN THI XUAN MAI
Position	Chief Accountant
Nationality	Vietnamese
Tel/Mobile phone	(84-62) 3837745, ext: 218 / (84-62) 3837746
Email	xuanmaibt@gmail.com

BUSINESS NATURE AND ACTIVITIES

The subject specializes in manufacturing and trading paper and paper products, high class of self adhesive specialties for printing industry, packaging and labeling.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Equipment, materials
· Market	Germany, Switzerland, Singapore, etc
· Mode of payment	LC, TT
EXPORT:
· Types of products	Self-adhesive products
· Market	EU, Asia, etc
· Mode of payment	LC, TT

BANKERS
1. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM BINH THUAN BRANCH
Address	No.286A Tran Hung Dao Street, Phan Thiet City, Binh Thuan Province, Vietnam
Telephone	(84-62) 3821058
2. DONG A COMMERCIAL JOINT STOCK BANK BINH THUAN BRANCH
Address	No.295 Tran Hung Dao Street, Binh Hung Ward, Phan Thiet City, Binh Thuan Province, Vietnam
Telephone	(84-62) 3835 656 - 3835 657 - 3835 658 - 3835 659
Fax	(84-62) 3824 423 - 3824 433

SHAREHOLDERS
1. NAME	SASCOAT HOLDING AG
Address	9004 St. Gallen, Lyssach CH-3421, Switzerland
Percentage	25.5%
2. NAME	DONG A COMMERCIAL JOINT STOCK BANK NO.1 DISTRICT
Business Registration	4104000059
Tax code	0302941973
Address	No 56-58 Nguyen Cong Tru Str-Nguyen Thai Binh Ward, 1 District, Ho Chi Minh City, Vietnam
Tel	(84-8) 39142583
Fax	(84-8) 38215006
Percentage	6.5%
3. NAME	LIKSIN INDUSTRY - PRINTING - PACKING CORPORATION
Business Registration	0301441600
Date of Registration	07 Sep 2010
Place of Registration	Business Registration of Hochiminh City
Registered Capital	VND 747,770,000,000
Tax code	0301441600
Address	No. 159 Kinh Duong Vuong Street - Ward 12, 6 District, Ho Chi Minh City, Vietnam
Tel	(84-8) 3751 2562 – 3751 2564 – 3751 2565
Fax	(84-8) 3751 2561
Email	liksin@hcm.vnn.vn
Website	www.liksin.com.vn
Percentage	12.68%
4. NAME	RILL HOLDING
Address	An Giang Province, Vietnam
Percentage	16.26%
5. NAME	VIETNAM INVESTMENT JOINT STOCK COMPANY
Business Registration	0302443664
Date of Registration	29 Jan 2001
Place of Registration	Business Registration Office of Ho Chi Minh city
Registered Capital	VND 257,000,000,000
Tax code	0302443664
Address	No.4 Thai Van Lung Street, Ben Nghe Ward , 1 District, Ho Chi Minh City, Vietnam
Tel	(84-8) 3832 5195
Fax	(84-8) 3811 4342
Percentage	0.33%
6. NAME	DEBT AND ASSET TRADING CORPORATION
Business Registration	0106000093
Date of Registration	12 Dec 2003
Place of Registration	Planning and investment department of Hanoi City
Registered Capital	VND 2,000,000,000,000
Tax code	0101431355
Address	No.51 Quang Trung Str, Hai Ba Trung District, Ha Noi City, Vietnam
Tel	(84-4) 39454738
Fax	(84-4) 39454737
Email	headoffice@datc.com.vn
Website	www.datc.com.vn
Percentage	6.5%
7. NAME	JENCAP GLOBAL LTD
Address	Blake Building - Suite 306 Corner o Eyre&Hutson Street - P.O Box 2670 , Belize
Percentage	32.23%

FINANCIAL DATA
Note: The financial statements of FY 2010 are not available.
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2009
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	271,684,000,000	30,102,000,000
I. Cash and cash equivalents	41,914,000,000	241,000,000
1. Cash	41,914,000,000	241,000,000
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	109,287,000,000	13,220,000,000
1. Receivable from customers	106,708,000,000	0
2. Prepayments to suppliers	2,117,000,000	13,183,000,000
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	754,000,000	37,000,000
6. Provisions for bad debts	-292,000,000	0
IV. Inventories	117,062,000,000	0
1. Inventories	125,884,000,000	0
2. Provisions for devaluation of inventories	-8,822,000,000	0
V. Other Current Assets	3,421,000,000	16,641,000,000
1. Short-term prepaid expenses	621,000,000	0
2. VAT to be deducted	2,422,000,000	1,270,000,000
3. Taxes and other accounts receivable from the State	161,000,000	0
4. Other current assets	217,000,000	15,371,000,000
B. LONG-TERM ASSETS	461,711,000,000	357,845,000,000
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	458,606,000,000	357,787,000,000
1. Tangible assets	453,493,000,000	9,000,000
- Historical costs	494,788,000,000	12,000,000
- Accumulated depreciation	-41,295,000,000	-3,000,000
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	5,014,000,000	0
- Initial costs	5,735,000,000	0
- Accumulated amortization	-721,000,000	0
4. Construction-in-progress	99,000,000	357,778,000,000
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	3,105,000,000	58,000,000
1. Long-term prepaid expenses	3,105,000,000	58,000,000
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	733,395,000,000	387,947,000,000
LIABILITIES
A- LIABILITIES	628,116,000,000	259,446,000,000
I. Current liabilities	260,302,000,000	242,446,000,000
1. Short-term debts and loans	193,547,000,000	239,440,000,000
2. Payable to suppliers	50,097,000,000	2,782,000,000
3. Advances from customers	1,669,000,000	0
4. Taxes and other obligations to the State Budget	720,000,000	208,000,000
5. Payable to employees	64,000,000	0
6. Accrued expenses	14,067,000,000	0
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	138,000,000	16,000,000
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	367,814,000,000	17,000,000,000
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	367,814,000,000	17,000,000,000
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	105,279,000,000	128,501,000,000
I. OWNER’S EQUITY	105,279,000,000	128,501,000,000
1. Capital	246,000,000,000	115,479,000,000
2. Share premiums	6,656,000,000	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	19,567,000,000
7. Business promotion fund	0	0
8. Financial reserved fund	0	0
9. Other funds	0	0
10. Retained earnings	-147,377,000,000	-6,545,000,000
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	733,395,000,000	387,947,000,000

PROFIT & LOSS STATEMENT
Description	FY2011	FY2009
1. Total Sales	186,114,000,000	0
2. Deduction item	244,000,000	0
3. Net revenue	185,870,000,000	0
4. Costs of goods sold	204,742,000,000	0
5. Gross profit	-18,872,000,000	0
6. Financial income	13,399,000,000	24,000,000
7. Financial expenses	70,007,000,000	0
- In which: Loan interest expenses	29,472,000,000	0
8. Selling expenses	21,573,000,000	0
9. Administrative overheads	23,622,000,000	4,395,000,000
10. Net operating profit	-120,675,000,000	-4,371,000,000
11. Other income	2,002,000,000	0
12. Other expenses	206,000,000	0
13. Other profit /(loss)	1,796,000,000	0
14. Total accounting profit before tax	-118,879,000,000	-4,371,000,000
15. Current corporate income tax	0	0
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies	0
18. Profit after tax	-118,879,000,000	-4,371,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	FY2009	Average Industry
Current liquidity ratio	1.04	0.12	1.27
Quick liquidity ratio	0.59	0.12	0.64
Inventory circle	1.75	-	5.47
Average receive period	214.61	-	72.34
Utilizing asset performance	0.25	-	0.74
Liability by total assets	85.65	66.88	66.89
Liability by owner's equity	596.62	201.90	273.72
Ebit / Total assets (ROA)	-12.19	-1.13	5.02
Ebit / Owner's equity (ROE)	-84.92	-3.40	16.99
Ebit / Total revenue (NPM)	-48.04	-	6.69
Gross profit / Total revenue (GPM)	-10.14	-	17.46
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	Below Average
Development trend	Developing
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	LC, TT
Sale Methods	To contracts
Public opinion	Normal

INTERPRETATION ON THE SCORES

Established in 2007, SASCOAT VIETNAM is known as a foreign invested company that has Investment Certificate No.482032000059 issued by Binh Thuan industrial zone authority and the tax code No.3400446309. Currently, the subject has total registration investment capital of USD 23,500,000 and total chartered capital of USD 14,826,219.

The subject has head office located at Lot 2/10, Phan Thiet industrial park, Phan Thiet city, Binh Thuan province, Vietnam. This also the address of its self - adhesive material factory. Besides, it has a representative office at 4th floor, no. 68-70, Hoang Dieu street, ward 12, district 4, Ho Chi Minh city, Vietnam. Up to now, the subject has total 150 employees (including staffs and workers) working in good conditions of premises and labor sanitation.

SASCOAT VIETNAM is specializing in manufacturing and trading self adhesive paper, film and silicon coating to provide for the printing industry, packaging and labeling in Viet Nam and the international market. Its factory is considered as the first self - adhesive material factory in the industry in Vietnam. Contacted with Ms. Xuan Mai - the chief accountant, we are known that about 98% of the products are exported to European and Asian market. The subject also imports some machines such as silicone coating machine, adhesive coating machine...and some materials from Germany, Switzerland, Singapore, etc, which are used for manufacturing. All business transactions are paid by TT and LC payment of methods.

Financially, in view of the financial data, we can know that the total assets in 2011 is VND 733,395 million, very much higher than 2009 (in 2009 total assets was VND 387,947 million). That showed the subject has been expanding operating scale and enhanced to invest in machines, equipments and premises...The liabilities is higher many times than owner's equity. The self - financial capacity of the company is low. In 2011, the gross profit is negative because of the high costs of goods sold. In addition, the increase of financial and selling expenses, administrative overheads are also main factors which made the loss of the year 2011. That year, the subject lost VND 118,879 million. The profitability is weak. The subject should have plan to use expenses reasonably in order to make profit.

In general, the subject has a medium scale in the industry. Its facilities are rather good. The management capacity is quite good. Mr. Nguyen Hoang Nam - the general director is a person who has much experience in the field of self - adhesive materials. The future prospect is expected to be bright. The subject has capacity to meet small financial commitments. A little caution is needed to small business transactions.

------------ 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.53.67
UK Pound	1	Rs.86.05
Euro	1	Rs.70.07

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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