MIRA INFORM REPORT

Report Date :

12.04.2013

IDENTIFICATION DETAILS

Name :	FEROMINCO STEEL COMPANY LIMITED
Registered Office :	6^th Floor, Master Building, No. 41-43 Tran Cao Van Str, Ward 6, District 3, Ho Chi Minh City
Country :	Vietnam
Financials (as on) :	31.12.2009
Year of Incorporation :	2008
Com. Reg. No.:	0305635886
Legal Form :	Limited Liability Company
Line of Business :	Wholesale of metals and metal ores
No. of Employees :	20

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 but correct
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 (registered)	FEROMINCO STEEL COMPANY LIMITED
Vietnamese Name (registered)	CONG TY TRACH NHIEM HUU HAN THEP FEROMINCO
Short name (registered)	FEROMINCO CO.,LTD
Type of Business	Limited liability company
Year Established	2008
Business Registration No.	0305635886
Date of the latest (6^th) Adjustment	28 Feb 2012
Place of Registration	Business Registration Office - Planning and Investment Department of Ho Chi Minh City
Chartered capital	VND 5,000,000,000
Tax code	0305635886
Total Employees	20

Historical Identification & Legal form

List	Changed Items
1	Subject has got former Business Registration No: 4102060296 issued on 09 Apr 2008 Changed to: 0305635886
2	Subject has got former Registered Vietnamese Name: CONG TY TNHH DAU TU CONG NGHIEP VIET Changed to: CONG TY TRACH NHIEM HUU HAN THEP FEROMINCO
3	Subject has got former Chartered capital: VND 2,000,000,000 Changed to: VND 5,000,000,000
ADDRESSES
Registration Address
Address			6^th Floor, Master Building, No. 41-43 Tran Cao Van Str, Ward 6, District 3, Ho Chi Minh City, Vietnam
Transaction office in Ho Chi Minh
Address			Suite No. 509A, No. 800 Nguyen Van Linh Str, Tan Phu Ward, District 7, Ho Chi Minh City, Vietnam
Telephone			(84-8) 5411 0189
Fax			(84-8) 5411 0190
Email			haiferominco@gmail.com
Representative office in Ha Noi
Address			Suite No. 902, CT2, Pham Van Dong Str, Xuan Dinh Commune, Tu Liem District, Ha Noi City, Vietnam
Other
Address			No. 506/11/19 Nguyen Anh Thu Str, Quarter No. 4, Hiep Thanh Ward, District 12, Ho Chi Minh City, Vietnam
DIRECTORS
1. NAME		Mr. NGUYEN VAN TAM
Position		Director
Date of Birth		10 Oct 1976
ID Number/Passport		024904819
ID Issue Date		12 Mar 2008
ID Issue Place		Police Station of Ho Chi Minh City
Resident		No. 18/8 Road No. 45, Quarter No. 2, Hiep Binh Chanh Ward, Thu Duc District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
2. NAME		Mr. TRUONG BAO LONG
Position		Chief Accountant
Nationality		Vietnamese
BUSINESS NATURE AND ACTIVITIES
Wholesale of metals and metal ores Wholesale on a fee or contract basis Manufacture of basic iron and steel Other mining and quarrying n.e.c Wholesale of construction materials, installation supplies Wholesale of other household products Wholesale of other machinery and equipment n.e.c
IMPORT & EXPORT ACTIVITIES
IMPORT:
Note: N/A
EXPORT:
Note: N/A
BANKERS
ASIA COMMERCIAL JOINT STOCK BANK BRANCH IN TAN THUAN
Address			334 Huynh Tan Phat, Tan Thuan Ward, District 7, Ho Chi Minh City, Vietnam
Telephone			(84-8) 3872 0505
Fax			(84-8) 3872 0506
SHAREHOLDERS
1. NAME			Mr. NGUYEN VAN TAM
Position			Director
Date of Birth			10 Oct 1976
ID Number/Passport			024904819
Issued on			12 Mar 2008
Issued Place			Police Station of Ho Chi Minh City
Resident			No. 18/8 Road No. 45, Quarter No. 2, Hiep Binh Chanh Ward , Thu Duc District, Ho Chi Minh City, Vietnam
Nationality			Vietnamese
Value of shares			VND 1,750,000,000
Percentage			35%
2. NAME			Mr. PHAN QUOC HAI
ID Number/Passport			012882613
Resident			No. 116 Quan Thanh street, Quan Thanh Ward , Ba Dinh District, Ha Noi City, Vietnam
Nationality			Vietnamese
Value of shares			VND 3,250,000,000
Percentage			65%
FINANCIAL HIGHLIGHT
BALANCE SHEET
Unit: Million VND
Balance sheet date					31/12/2009
Number of weeks					52
ASSETS
A. Current Asset					1,025
Receivables
Inventory
Cash and other current assets					1,025
B. Long term Asset					677
1. Long term account receivable					2
2. Fixed assets					675
Tangible fixed assets					675
+ Original cost					675
+ Accumulated depreciation value					0
Financial leasehold assets
Intangible fixed assets
Construction in progress and other long term asset					0
TOTAL ASSETS					1,702
LIABILITIES
Payable loans					5
Owner’s Equity					1,697
TOTAL LIABILITY AND EQUITY					1,702
PROFIT & LOSS STATEMENT
1. Total Sales					102
2. Deduction item					0
3. Net revenue					102
4. Costs of goods sold					89
5. Gross profit					13
6. Financial income					0
7. Financial expenses					0
8. Selling expenses and Administrative overheads					315
9. Net operating profit					-302
10. Other income					0
11. Other expenses					0
12. Other profit /(loss)					0
13. Total accounting profit before tax					-302
14. Current corporate income tax
15. Deferred corporate income tax
16. Interest from subsidiaries/related companies
17. Profit after tax					-302
PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality				Normal
Liquidity				N/A
Payment status				Normal
Financial Situation				Below average
Development trend				N/A
Litigation data				No Record
Bankruptcy				No Record
Payment Methods				Direct payment or through its corresponding bank.
Sale Methods				Retailer and Wholesaler
Public opinion				Normal
INTERPRETATION ON THE SCORES
The subject was established in 2008 under the Business Registration No. 4102060296 with Vietnamese Name “CONG TY TNHH DAU TU CONG NGHIEP VIET”. When the subject was established, its chartered capital was VND 2 billion. Currently, the subject is operating under the Business Registration No. 0305635886 with chartered capital of VND 5 billion Registration office is located at “6^th Floor, No. 41-43 Tran Cao Van Str, Ward 6, District 3, Ho Chi Minh City, Vietnam”. However, all transactions are taken place at address “Suite No. 509A, No. 800 Nguyen Van Linh Str, Tan Phu Ward, District 7, Ho Chi Minh City, Vietnam”. The subject specializes in trading and manufacturing metals and metal ores. Its products are consumed in domestic market. Facilities of the subject are normal. Its management capability is fair. The subject is a new company in this field. So, the subject must try much to find, expand market. In general, the subject only has capacity to meet small 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)
	2012	2011
Agriculture, Forestry and Fishing	2.72	4.00	8,887		24,362.9	95,227
Industry and Construction	4.52	5.53	95,217		10,718.9	3,641,376
Trade and Services	6.42	6.69	187,195		15,270.2	6,957,082
ECONOMIC INDICATORS
			2012	2011		2010
Population (Million person)			88.78	87.84		86.93
Gross Domestic Products (USD billion)			136	119		102.2
GDP Growth (%)			5.03	5.89		6.78
GDP Per Capita (USD/person/year)			1,540	1,300		1,160
Inflation (% Change in Composite CPI)			9.21	18.58		11.75
State Budget Deficit compared with GDP (%)			4.8	4.9		5.8
SERVICE TRADE PERFORMANCE
Billion USD			2012	2011		2010
Exports			114.6	96.3		72.2
Imports			114.3	105.8		84.8
Trade Balance			0.3	-9.5		-12.6

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.53
UK Pound	1	Rs.83.59
Euro	1	Rs.71.33

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