MIRA INFORM REPORT

Report Date :

24.08.2013

IDENTIFICATION DETAILS

Name :	BAY CHIN BAY CO.,LTD
Registered Office :	No. 175 Thoai Ngoc Hau Street, Phu Thanh Ward, Tan Phu District, Ho Chi Minh City
Country :	Vietnam
Financials (as on) :	31.12.2011
Date of Incorporation :	09.08.2008
Com. Reg. No.:	0305904306
Legal Form :	Limited Liability Company
Line of Business :	The subject specializes in trading in stationery, school supplies.
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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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 has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. 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 hurt Vietnam's export-oriented economy, with GDP in 2012 growing at 5%, the slowest rate of growth since 1999. In 2012, however, exports increased by more than 18%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the government shifted from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. Although Vietnam unveiled a broad, "three pillar" economic reform program in early 2012, proposing the restructuring of public investment, state-owned enterprises, and the banking sector, little perceptible progress had been made by early 2013. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some independent analysts believe it could be higher than 15%.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM
Registered English Name	BAY CHIN BAY CO.,LTD
Registered Vietnamese Name	CONG TY TNHH BAY CHIN BAY
Trade name	BAY CHIN BAY CO.,LTD
Type of Business	Limited liability company
Year Established	2008
Business Registration No.	0305904306
Date of Registration	09 Aug 2008
Date of latest adjustment (9^th)	25 Apr 2012
Place of Registration	Business registration office - Planning and Investment Department of Hochiminh City
Chartered capital	VND 30,000,000,000
Tax code	0305904306
Total Employees	20

ADDRESSES
Head Office
Address	No. 175 Thoai Ngoc Hau Street, Phu Thanh Ward, Tan Phu District, Ho Chi Minh City, Vietnam
Telephone	0978939947
Representative office in Ho Chi Minh
Address	No.42/7A, Ap Moi 1, Tan Xuan Commune, Hoc Mon District, Ho Chi Minh City, Vietnam
Warehouse in Long An
Address	No.9/1, Ap Moi 2, My Hanh Nam Commune, Duc Hoa District, Long An Province, Vietnam

DIRECTORS
1. NAME	Ms. TRINH THI DAO
Position	Chairwoman
Date of Birth	02 Apr 1956
ID Number/Passport	020888105
ID Issue Date	19 Sep 2006
ID Issue Place	Police Station Of Ho Chi Minh City
Resident	No.47/50, Nguyen Van Dau Street, Ward 6, Binh Thanh District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
2 . NAME		Mr. LE VAN DIEN
Position		Director
ID Number/Passport		02001784
Resident		No.349A Nguyen Anh Thu Street, Trung My Tay Ward, District 12, Ho Chi Minh City, Vietnam
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject specializes in trading in stationery, school supplies..

Following are subject’s registered business activities:

Wholesale of other household products
Travel agency activities
Short-term accommodation activities
Wholesle of construction materials, installation supplies
Manufacture of office machinery and equipment except computers and peripheral equipment
Wholesale of textiles, clothing, footwear

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Market	India, Korea, USA, Japan, China, Indonesia, Thailand
EXPORT:
· Market	N/A

BANKERS
1. ASIA COMMERCIAL BANK CHO LON BRANCH
Address	No.747, Hong Bang, District 6, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3960 6980
Fax	(84-8) 3969 0979

SHAREHOLDERS
1. NAME	Ms. TRINH THI DAO
Position	Chairwoman
Date of Birth	02 Apr 1956
ID Number/Passport	020888105
Issued on	19 Sep 2006
Issued Place	Police Station Of Ho Chi Minh City
Resident	No.47/50, Nguyen Van Dau Street, Ward 6, Binh Thanh District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Value of shares	VND 7,500,000,000
Percentage	25%
2. NAME	Mr. LE VAN DIEN
ID Number/Passport	02001784
Resident	No.349A, Nguyen Anh Thu Street, Trung My Tay Ward, District 12, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Value of shares	VND 22,500,000,000
Percentage	75%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	25,140,000,000	4,845,000,000
I. Cash and cash equivalents	5,672,000,000	4,540,000,000
1. Cash	5,672,000,000	4,540,000,000
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	232,000,000	194,000,000
1. Receivable from customers	0	0
2. Prepayments to suppliers	194,000,000	194,000,000
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	38,000,000	0
6. Provisions for bad debts	0	0
IV. Inventories	17,531,000,000	0
1. Inventories	17,531,000,000	0
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	1,705,000,000	111,000,000
1. Short-term prepaid expenses	0	0
2. VAT to be deducted	1,662,000,000	108,000,000
3. Taxes and other accounts receivable from the State	0	0
4. Other current assets	43,000,000	3,000,000
B. LONG-TERM ASSETS	14,139,000,000	14,128,000,000
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	14,139,000,000	14,128,000,000
1. Tangible assets	13,182,000,000	13,171,000,000
- Historical costs	13,450,000,000	13,345,000,000
- Accumulated depreciation	-268,000,000	-174,000,000
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	957,000,000	957,000,000
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	0	0
1. Long-term prepaid expenses	0	0
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
VI. Goodwill
1. Goodwill
TOTAL ASSETS	39,279,000,000	18,973,000,000
LIABILITIES
A- LIABILITIES	9,520,000,000	0
I. Current liabilities	9,520,000,000	0
1. Short-term debts and loans	6,600,000,000	0
2. Payable to suppliers	2,667,000,000	0
3. Advances from customers	253,000,000	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
11. Bonus and welfare funds	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
8. Unearned Revenue	0	0
9. Science and technology development fund	0	0
B- OWNER’S EQUITY	29,759,000,000	18,973,000,000
I. OWNER’S EQUITY	29,759,000,000	18,973,000,000
1. Capital	30,000,000,000	20,000,000,000
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	0	0
7. Business promotion fund	0	0
8. Financial reserved fund	0	0
9. Other funds	0	0
10. Retained earnings	-241,000,000	-1,027,000,000
11. Construction investment fund	0	0
12. Business arrangement supporting 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	39,279,000,000	18,973,000,000

PROFIT & LOSS STATEMENT
Description	FY2011
1. Total Sales	32,053,000,000
2. Deduction item	0
3. Net revenue	32,053,000,000
4. Costs of goods sold	29,019,000,000
5. Gross profit	3,034,000,000
6. Financial income	22,000,000
7. Financial expenses	244,000,000
- In which: Loan interest expenses	0
8. Selling expenses	0
9. Administrative overheads	2,025,000,000
10. Net operating profit	787,000,000
11. Other income	0
12. Other expenses	1,000,000
13. Other profit /(loss)	-1,000,000
14. Total accounting profit before tax	786,000,000
15. Current corporate income tax	0
16. Deferred corporate income tax	0
17. Interest from subsidiaries/related companies
18. Profit after tax	786,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	Average Industry
Current liquidity ratio	2.64	1.20
Quick liquidity ratio	0.80	0.65
Inventory circle	1.66	11.15
Average receive period	2.64	49.22
Utilizing asset performance	0.82	2.60
Liability by total assets	24.24	72.10
Liability by owner's equity	31.99	396.96
Ebit / Total assets (ROA)	2.00	8.25
Ebit / Owner's equity (ROE)	2.64	42.15
Ebit / Total revenue (NPM)	2.45	4.23
Gross profit / Total revenue (GPM)	9.47	7.33
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	Below Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Cash or through its bank accounts
Sale Methods	Retailer and Wholesaler

INTERPRETATION ON THE SCORES

The subject- BAY CHIN BAY CO.,LTD- was established in 2008. Currently, the subject is operating under business registration No. 0305904306 with chartered capital VND 30,000,000,000.

Head office of the subject is located at No. 175, Thoai Ngoc Hau Street, Phu Thanh Ward, Tan Phu District, Ho Chi Minh City, Vietnam. Besides, the subject has warehouse in Long An Province.

The subject specializes in trading in stationery, school supplies, tape measure, locks... Main market of subject is domestic market. The subject is distributors of brands such as DONG - A PENCIL CO., LTD, Tombow, MUNIX and G-STAR. The subject's products are imported from India, Korea, USA, Japan, China, Indonesia, Thailand. Products of subject are distributed through agent around the country. The target market of subject is Laos, Cambodia ...

The subject is a young company in industry. Business activities of subject are busy. The premises and facilities of the subject are normal. Management capacity of the subject is fair. In general, it can meet the small payment commitments.

------------ 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.64.69
UK Pound	1	Rs.100.79
Euro	1	Rs.86.30

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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