MIRA INFORM REPORT

Report Date :

23.04.2013

IDENTIFICATION DETAILS

Name :	BAC THANG LONG COMPANY LIMITED
Registered Office :	No. 47 Hang Trong Street Hang Trong Ward, Hoan Kiem District, Ha Noi City
Country :	Vietnam
Financials (as on) :	31.12.2011
Year of Incorporation :	2003
Com. Reg. No.:	0101426482
Legal Form :	Limited Liability Company
Line of Business :	The subject is specialized in trading and processing agricultural and forest product.
No. of Employees :	70

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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

VIETNAME - 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	BAC THANG LONG COMPANY LIMITED
Vietnamese Name	CONG TY TNHH BAC THANG LONG
Short name	BAC THANG LONG CO.,LTD
Type of Business	Limited liability company
Year Established	2003
Business Registration No.	0101426482
Date of Registration	26 Aug 2010
Place of Registration	Department of Planning and Investment of Ha Noi City
Chartered capital	VND 17,000,000,000
Status	Unlisted
Tax code	0101426482
Total Employees	70

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 0102010614 Changed to: 0101426482	26 Aug 2010

ADDRESSES
Head Office
Address	No. 47 Hang Trong Street Hang Trong Ward, Hoan Kiem District, Ha Noi City, Vietnam
Telephone	(84-4) 38259195
Fax	(84-4) 39288698
Factory Address
Address	Lot 38I, Quang Minh Industrial Zone, Me Linh District, Ha Noi City, Vietnam
Telephone	(84-4) 37593100/ 38182404

DIRECTORS
1. NAME	Ms. NGUYEN THI HUE
Position	Director
Date of Birth	24 Feb 1978
ID Number/Passport	013074633
ID Issue Date	30 Oct 2008
Current resident	No. 10, Alley 378/58 Thuy Khue Street Buoi Ward, Tay Ho District, Ha Noi City, Vietnam

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in trading and processing agricultural and forest product.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Materials
· Market	India, China
EXPORT:
· Types of products	Agricultural and forest product
· Market	India, Korea, China, etc

BANKERS
1. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK
Address	No.70-72 Ba Trieu, Hoan Kiem District, Ha Noi City, Vietnam
Telephone	(84-4) 3944 6368
Fax	(84-4) 3944 6362
2. HANOI BUILDING COMMERCIAL JOINT STOCK BANK VINH PHUC BRANCH
Address	No.361 Me Lin Str, Lien Bao ward, Vinh Yen City, Vinh Phuc Province, Vietnam
Telephone	(84-211) 3710145
Fax	(84-211) 3710146
3. VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT HA THANH BRANCH
Address	No.236 Le Thanh Nghi Street, Hai Ba Trung District, Ha Noi City, Vietnam
Telephone	(84-4) 36284026
Fax	(84-4) 36284027

SHAREHOLDERS
1. NAME	Mr. TRAN ANH TUAN
ID Number/Passport	B0955750
Current Resident	No. 10, Alley 378/58, Thuy Khue Street Buoi Ward, Tay Ho District, Ha Noi City, Vietnam
Value of shares	VND 9,000,000,000
Percentage	52.94%
2. NAME	Ms. NGUYEN THI HUE
Position	Director
Date of Birth	24 Feb 1978
ID Number/Passport	013074633
Issued on	30 Oct 2008
Current Resident	No. 10, Alley 378/58 Thuy Khue Street Buoi Ward, Tay Ho District, Ha Noi City, Vietnam
Value of shares	VND 4,800,000,000
Percentage	28.24%
3. NAME	Mr. NGUYEN DUY DAT
ID Number/Passport	125277198
Resident	Dinh Hamlet Dinh Bang Town, Tu Son District, Bac Ninh Province, Vietnam
Value of shares	VND 3,200,000,000
Percentage	18.82%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011
Number of weeks	52
ASSETS
A – CURRENT ASSETS	161,854,737,302
I. Cash and cash equivalents	26,805,574,069
1. Cash	3,986,425,300
2. Cash equivalents	22,819,148,769
II. Short-term investments	5,678,230,000
1. Short-term investments	5,678,230,000
2. Provisions for devaluation of short-term investments	0
III. Accounts receivable	57,214,762,821
1. Receivable from customers	32,373,962,821
2. Prepayments to suppliers	24,840,800,000
3. Inter-company receivable	0
4. Receivable according to the progress of construction	0
5. Other receivable	0
6. Provisions for bad debts	0
IV. Inventories	72,156,170,412
1. Inventories	72,156,170,412
2. Provisions for devaluation of inventories	0
V. Other Current Assets	0
1. Short-term prepaid expenses	0
2. VAT to be deducted	0
3. Taxes and other accounts receivable from the State	0
4. Other current assets	0
B. LONG-TERM ASSETS	5,191,528,916
I. Long term accounts receivable	0
1. Long term account receivable from customers	0
2. Working capital in affiliates	0
3. Long-term inter-company receivable	0
4. Other long-term receivable	0
5. Provisions for bad debts from customers	0
II. Fixed assets	5,191,528,916
1. Tangible assets	3,703,647,021
- Historical costs	9,258,704,348
- Accumulated depreciation	-5,555,057,327
2. Financial leasehold assets	0
- Historical costs	0
- Accumulated depreciation	0
3. Intangible assets	1,487,881,895
- Initial costs	1,992,500,000
- Accumulated amortization	-504,618,105
4. Construction-in-progress	0
III. Investment property	0
Historical costs	0
Accumulated depreciation	0
IV. Long-term investments	0
1. Investments in affiliates	0
2. Investments in business concerns and joint ventures	0
3. Other long-term investments	0
4. Provisions for devaluation of long-term investments	0
V. Other long-term assets	0
1. Long-term prepaid expenses	0
2. Deferred income tax assets	0
3. Other long-term assets	0
VI. Goodwill	0
1. Goodwill	0
TOTAL ASSETS	167,046,266,218
LIABILITIES
A- LIABILITIES	137,398,403,883
I. Current liabilities	137,398,403,883
1. Short-term debts and loans	137,398,403,883
2. Payable to suppliers	0
3. Advances from customers	0
4. Taxes and other obligations to the State Budget	0
5. Payable to employees	0
6. Accrued expenses	0
7. Inter-company payable	0
8. Payable according to the progress of construction contracts	0
9. Other payable	0
10. Provisions for short-term accounts payable	0
11. Bonus and welfare funds	0
II. Long-Term Liabilities	0
1. Long-term accounts payable to suppliers	0
2. Long-term inter-company payable	0
3. Other long-term payable	0
4. Long-term debts and loans	0
5. Deferred income tax payable	0
6. Provisions for unemployment allowances	0
7. Provisions for long-term accounts payable	0
8. Unearned Revenue	0
9. Science and technology development fund	0
B- OWNER’S EQUITY	29,647,862,335
I. OWNER’S EQUITY	29,647,862,335
1. Capital	17,000,000,000
2. Share premiums	0
3. Other sources of capital	0
4. Treasury stocks	0
5. Differences on asset revaluation	0
6. Foreign exchange differences	0
7. Business promotion fund	0
8. Financial reserved fund	0
9. Other funds	0
10. Retained earnings	12,647,862,335
11. Construction investment fund	0
12. Business arrangement supporting fund	0
II. Other sources and funds	0
1. Bonus and welfare funds (Elder form)	0
2. Sources of expenditure	0
3. Fund to form fixed assets	0
MINORITY’S INTEREST	0
TOTAL LIABILITIES AND OWNER’S EQUITY	167,046,266,218

PROFIT & LOSS STATEMENT
Description	FY2011
1. Total Sales	227,514,689,310
2. Deduction item	0
3. Net revenue	227,514,689,310
4. Costs of goods sold	183,236,500,402
5. Gross profit	44,278,188,908
6. Financial income	16,415,500
7. Financial expenses	16,598,200,000
- In which: Loan interest expenses	16,461,185,778
8. Selling expenses	0
9. Administrative overheads	10,832,587,961
10. Net operating profit	16,863,816,447
11. Other income	0
12. Other expenses	0
13. Other profit /(loss)	0
14. Total accounting profit before tax	16,863,816,447
15. Current corporate income tax	4,215,954,112
16. Deferred corporate income tax	0
17. Interest from subsidiaries/related companies	0
18. Profit after tax	12,647,862,335

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	Average Industry
Current liquidity ratio	1.18	2.04
Quick liquidity ratio	0.65	1.33
Inventory circle	2.54	6.81
Average receive period	91.79	52.60
Utilizing asset performance	1.36	1.54
Liability by total assets	82.25	44.44
Liability by owner's equity	463.43	202.39
Ebit / Total assets (ROA)	19.95	19.07
Ebit / Owner's equity (ROE)	112.40	64.33
Ebit / Total revenue (NPM)	14.65	14.35
Gross profit / Total revenue (GPM)	19.46	23.86
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Normal
Liquidity	Medium
Payment status	Average
Financial Situation	Above Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	D/P, D/A
Sale Methods	Wholesaler
Public opinion	Normal

INTERPRETATION ON THE SCORES

The subject was established in 2003 under business registration No.0102010614. In August 2010, subject transformed business registration into No. 0101426482. Currently, subject has got chartered capital of VND 17 billion.

Head office of the subject is located at No. 47 Hang Trong street, Hang Trong Ward, Hoan Kiem District, Ha Noi City. However, all operations of the subject are performed at its factory address Lot 38I, Quang Minh Industrial Zone, Me Linh District, Ha Noi city. Number of labors of the subject dependent on crop and there are average 70 employees working in the subject's factory. The subject is specializing in processing and trading agriculture and forest product such as cinnamon, star aniseed. It buys material in domestic and foreign markets and exports to India, Korea, China, etc. In an interview with Ms. Dao - accountant of the subject, she said that the subject often exports to India with large orders.

According to the financial data above, the business result of the subject is above average. The total assets obtained over VND 167 billion in 2011, which mainly came from current assets up to 96.8%. In the total liabilities, it all came from current ones valued at VND 137.3 billion. The short-term debts and loans were the only item in the liabilities of the subject. Looking at the profit and loss statement, we can see that the total sales were fair with VND 227.5 billion and the profit after tax reached VND 12.6 billion in 2011. The costs of goods sold accounted for 80.5% of net revenue – an acceptable rate. The profitability ratios were good. In particular, ROE was far higher than the industry average.

In general, subject is medium company. Operations business is busy. The development capacity in the future seems bright. It is capable for small and medium financial commitments with the subject.

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

INDUSTRY DATA
Industry code	GDP 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.54.16
UK Pound	1	Rs.82.45
Euro	1	Rs.70.70

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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