MIRA INFORM REPORT

Report Date :

21.09.2012

IDENTIFICATION DETAILS

Name :	TOAN PHAT COPPER TUBE JOINT STOCK COMPANY

Registered Office :	Road No. 206, Zone D Pho Noi A Industrial Zone, Trung Trac Commune, Van Lam District, Hung Yen Province

Country :	Vietnam

Financials (as on) :	31.12.2011

Year of Establishment :	2006

Com. Reg. No.:	0900246768

Legal Form :	Joint Stock Company

Line of Business :	The subject is specialized in manufacturing and trading copper tube, trading material copper.

No. of Employees :	Over 100

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 – 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

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
Registered English Name		TOAN PHAT COPPER TUBE JOINT STOCK COMPANY
Registered Vietnamese Name		CONG TY CO PHAN ONG DONG TOAN PHAT
Type of Business		Joint stock company
Year Established		2006
Business Registration No.		0900246768
Date of Registration		04 May 2012
Place of Registration		Hung Yen Department of Planning and Investment
Chartered capital		VND 45,000,000,000
Status		Unlisted
Tax code		0900246768
Total Employees		Over 100

Historical Identification & Legal form

List

Changed Items

Date of changes

Subject has got former Registered English Name: TOAN PHAT COPPER PIPE JOINT STOCK COMPANY

Changed to: TOAN PHAT COPPER TUBE JOINT STOCK COMPANY

N/A

ADDRESSES

Head Office and Factory
Address		Road No. 206, Zone D Pho Noi A Industrial Zone, Trung Trac Commune, Van Lam District, Hung Yen Province, Vietnam
Telephone		+84 919358358
*Note:* The correct address is as above.
Transaction office in Ha Noi
Address		No. 11 Thinh Hao, Ton Duc Thang, Dong Da District, Ha Noi City, Vietnam
Telephone		(84-4) 37326291/ 92
Fax		(84-4) 37326290/ 96
Email		toanphatcopper@fpt.vn
Website		http://rubycopper.vn

Branch in Ha Noi
Address		No. 75 Ton Duc Thang, Quoc Tu Giam Ward, Dong Da District, Ha Noi City, Vietnam
Tax code		0900246768-001

Branch in Ho Chi Minh
Address		No. 88 Pho Co Dieu, Ward 4, 11 District, Ho Chi Minh City, Vietnam
Tax code		0900246768-002

DIRECTORS

1. NAME		Mr. NGUYEN HUU KHOI
Position		Director
Date of Birth		15 Nov 1982
ID Number/Passport		012908782
ID Issue Date		06 Sep 2006
ID Issue Place		Hanoi Police Department
Resident		No. 58 Ton Duc Thang Street, Hang Bot Ward, Dong Da District, Ha Noi City, Vietnam
Nationality		Vietnamese
Tel/Mobile phone		+84 919358358

2. NAME		Ms. NGUYEN THI DIEM HANG
Position		Deputy Director
Nationality		Vietnamese

3. NAME		Ms. PHAM THI THUY LUA
Position		Chief Accountant
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in manufacturing and trading copper tube, trading material copper.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		Material, components
· Market		China and Southeast Asian countries

EXPORT:
· Market		Malaysia, India, etc


BANKERS

1. JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM HA NOI BRANCH
Address		No. 78 Nguyen Du Str, Hoan Kiem District, Ha Noi City, Vietnam
Telephone		(84-4) 38268035
Fax		(84-4) 38228039

SHAREHOLDERS

Following is founding shareholders as in the latest business registration of the subject
1. NAME		Ms. BUI THI MAI HOA
ID Number/Passport		012837350
Resident		Residential Quarter of Academy of Journalism & communication, Dich Vong Hau Ward, Cau Giay District, Ha Noi City, Vietnam
Nationality		Vietnamese
Shared Percentage		N/A

2. NAME		Ms. BUI THI HOA MAI
ID Number/Passport		011229151
Resident		No. 75B Ton Duc Thang Street, Hang Bot Ward, Dong Da District, Ha Noi City, Vietnam
Nationality		Vietnamese
Shared Percentage		N/A

3. NAME		Mr. BUI QUOC CHINH
ID Number/Passport		010412819
Resident		No. 205, Ton Duc Thang Street, Hang Bot Ward, Dong Da District, Ha Noi City, Vietnam
Nationality		Vietnamese
Shared Percentage		N/A

FINANCIAL DATA

BALANCE SHEET
Unit: Million VND
Balance sheet date	31/12/2011	31/12/2010
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	45,412	39,185
I. Cash and cash equivalents	21,586	2,467
1. Cash	14,286	2,467
2. Cash equivalents	7,300	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	2,194	7,592
1. Receivable from customers	1,399	7,537
2. Prepayments to suppliers	778	55
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	17	0
6. Provisions for bad debts	0	0
IV. Inventories	19,675	26,712
1. Inventories	19,675	26,712
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	1,957	2,414
1. Short-term prepaid expenses	516	681
2. VAT to be deducted	1,441	1,583
3. Taxes and other accounts receivable from the State	0	0
4. Other current assets	0	150
B. LONG-TERM ASSETS	48,763	47,776
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	47,897	47,176
1. Tangible assets	44,099	43,475
- Historical costs	65,076	59,445
- Accumulated depreciation	-20,977	-15,970
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	3,597	3,686
- Initial costs	4,099	4,099
- Accumulated amortization	-502	-413
4. Construction-in-progress	201	15
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	866	600
1. Long-term prepaid expenses	866	600
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
VI. Goodwill
1. Goodwill
TOTAL ASSETS	94,175	86,961

LIABILITIES

A- LIABILITIES	41,960	35,085
I. Current liabilities	41,960	35,085
1. Short-term debts and loans	31,903	33,401
2. Payable to suppliers	821	1,016
3. Advances from customers	6,717	503
4. Taxes and other obligations to the State Budget	23	3
5. Payable to employees	1,018	162
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	1,478	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	52,215	51,876
I. OWNER’S EQUITY	52,215	51,876
1. Capital	45,000	45,000
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	-80	-220
7. Business promotion fund	0	0
8. Financial reserved fund	0	0
9. Other funds	0	0
10. Retained earnings	7,295	7,096
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
TOTAL LIABILITIES AND OWNER’S EQUITY	94,175	86,961

PROFIT & LOSS STATEMENT

Description	FY2011	FY2010
1. Total Sales	344,252	219,764
2. Deduction item	1,432	261
3. Net revenue	342,820	219,503
4. Costs of goods sold	326,237	207,901
5. Gross profit	16,583	11,602
6. Financial income	243	442
7. Financial expenses	5,809	5,956
- In which: Loan interest expenses	4,851	3,467
8. Selling expenses	174	36
9. Administrative overheads	3,560	2,334
10. Net operating profit	7,283	3,718
11. Other income	354	32
12. Other expenses	342	0
13. Other profit /(loss)	12	32
14. Total accounting profit before tax	7,295	3,750
15. Current corporate income tax	0	0
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies
18. Profit after tax	7,295	3,750


FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2011	FY2010	Average Industry
Current liquidity ratio	1.08	1.12	1.18
Quick liquidity ratio	0.61	0.36	0.54
Inventory circle	14.07	7.78	3.48
Average receive period	2.34	12.62	62.32
Utilizing asset performance	3.64	2.52	1.02
Liability by total assets	44.56	40.35	64.29
Liability by owner's equity	80.36	67.63	198.96
Ebit / Total assets (ROA)	12.90	8.30	6.25
Ebit / Owner's equity (ROE)	23.26	13.91	16.74
Ebit / Total revenue (NPM)	3.53	3.28	5.52
Gross profit / Total revenue (GPM)	4.82	5.28	13.15
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CASH FLOW STATEMENT
*(Indirect method)*
Items		FY2011
I. Cash flows from operating activities
*1. Profit before tax*		7,295
*2. Adjustments*
- Depreciation and amortization		5,096
- Provisions
- Unrealized foreign exchange difference		140
- Gain/loss from investing activities
- Interest expense		4,851
*3. Operating profit before movements in working capital*		17,382
- (Increase)/Decrease in receivables		5,398
- (Increase)/Decrease in inventories		7,037
- Increase/(Decrease) in accounts payable		8,353
- (Increase)/Decrease in prepaid expenses		-101
- Interest paid		-4,851
- Corporate income tax paid		20
- Other cash inflows
- Other cash outflows		-6,804
Net cash from (used in) operating activities		26,434
II. Cash flows from investing activities
1. Acquisition of fixed assets and other long - term assets		-5,817
2. Proceeds from fixed assets and long - term assets disposal
3. Cash outflow for lending, buying debt instruments of other companies
4. Cash recovered from lending, selling debt instruments of other companies
5. Investment in other entities
6. Cash recovered from investments in other entities
7. Interest income, dividend and profit paid
Net cash from (used in) investing activities		-5,817
III. Cash flows from financing activities
1. Proceeds from issuing stocks, receiving capital from owners
2. Capital withdrawal, buying back issued stocks
3. Proceeds from borrowings		-1,498
4. Repayment of borrowings
5. Repayment of obligations under finance leased
6. Dividends paid
Net cash from (used in) financing activities		-1,498
Net increase/(decrease) in cash and cash equivalents		19,119
Cash and cash equivalents at beginning of year		2,467
Effect from changing foreign exchange rate
Cash and cash equivalents at end of year		21,586
.

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Fair
Liquidity		Medium
Payment status		Average
Financial Situation		Above Average
Development trend		Uptrend
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		L/C, T/T
Sale Methods		Retailer and Wholesaler

INTERPRETATION ON THE SCORES

The subject was established in 2006 as a joint stock company. It specializes in producing, trading copper tube, trading material copper and Cathode copper. Currently, it is running under the business registration No. 0900246768 with chartered capital of VND 45 billion.

The subject's factory is located at Road No. 206 - Zone D - Pho Noi A Industrial Zone - Van Lam District - Hung Yen Province. This factory is applying the quality management system according to ISO 9001: 2008 standard. It has capacity to produce many types of copper tube such as Pancake Coil 15m and 30m; Level Wound Coil, Straight Copper Tube 2.9mm and 5.8mm. The subject is also issued certificate for products which consist with ASTM B280 standard and JIS H3300 standard.

The subject's transaction office is located at No. 11 Thinh Hao - Ton Duc Thang - Dong Da District - Hanoi City, besides, it also has two branches. Its total employees are over 100 persons. The subject imports components, materials from China and some countries of Southern Asian area. However, according to Mr. Nguyen Huu Khoi_the subject's director, the subject imports very little.

Financially, based on the above financial statement, we see that, the subject's revenue is fairly high. Its annual retained earning accounts are acceptable, shows that it obtains the profit annually.

The subject's debt rate from 2007 to 2011 was in turn 55.20%, 52.31%, 56.22%, 40.35% and 44.56%. In 2010, its debt rate reduced obviously compared with those in previous years due to the considerable decrease in liabilities and the large increase in equity in relation to those in previous years. Up to in 2011, the subject's liabilities and equity all augmented but the growth of the equity was lower than the growth of the liabilities, so debt rate rose slightly. However, the subject's debt rate proves that, its capital structure is always maintained at safe level and its self-financing is fairly good.

The subject's liquidity ratios in 2011 were acceptable. In 2011, although the growth of current liabilities was higher a bit than the growth of current assets, the subject's inventories lessened remarkably, so its quick liquidity was improved. Also in this financial year, the subject's operation factors were better by far than the average industry; this reflects that, the subject's property management capacity was so good. It appears the subject applied the tighter credit policies for its customers and its sales policy worked effective.

The subject's ROA, ROE was fairly good but its operating cost management ability should be improved further to increase NPM and GPM.

In general, the subject is still considered as a small scale company in industry. Its business activities now are stable and developing. Its financial situation is above average. Its future prospect seems bright. It can meet well transactions which consist with its scale.

------------ 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.54.34
UK Pound	1	Rs.87.91
Euro	1	Rs.70.57

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

DIRECTORS

BUSINESS NATURE AND ACTIVITIES

IMPORT & EXPORT ACTIVITIES

BANKERS

SHAREHOLDERS

Following is founding shareholders as in the latest business registration of the subject

FINANCIAL DATA

Unit: Million VND

ASSETS

LIABILITIES

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

INTERPRETATION ON THE SCORES

INDUSTRY DATA

ECONOMIC INDICATORS

SERVICE TRADE PERFORMANCE

Unit