MIRA INFORM REPORT

Report Date :

02.12.2013

IDENTIFICATION DETAILS

Name :	VIETNAM QUARTZ JSC

Registered Office :	Lot B10 Thuy Van Industrial Zone Thuy Van Commune, Viet Tri, Phu Tho

Country :	Vietnam

Financials (as on) :	December 2012

Date of Incorporation :	31.12.2009

Legal Form :	Joint Stock Company

Line of Business :	Manufacturer and supplier of quartz powders and engineered quartz surfaces with brandname VinaQuartz

No. of Employees :	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 :	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 – September 30th, 2013

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 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 policy away 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

REGISTERED NAME & COMPANY SUMMARY

Company Details
Organization Name	:	VIETNAM QUARTZ JSC
Name in Local Language	:	CONG TY CO PHAN QUARTZ VIETNAM
Address	:	Lot B10 Thuy Van Industrial Zone Thuy Van Commune, Viet Tri, Phu Tho
Country	:	Vietnam
Phone (S)	:	[+84] 210-3736666
Facsimile	:	[+84] 210-3736668
Email	:	http://www.vietnamquartzstone.com
Primary Business Activity	:	Manufacturer
Key Industry	:	Minerals / Mining

Key Facts
Registered Legal Address		:	Lot B10 Thuy Van Industrial Zone Thuy Van Commune, Viet Tri, Phu Tho
Issuing Authority		:	Department of Planning and Investment - National
License Number		:	2600656735
License Status		:	License exists - Normal
Legal Form - Category		:	Joint Stock Company
Legal Form		:	Joint Stock Company
Legal Form - Abbreviation		:	JSC
Operational Status of Business		:	Normal
Date of Registration		:	31 Dec, 2009
Employees		:	100
Capital		:	US$ 710,550
	Report Details

Country	:	Vietnam
Business Entity Name	:	VIETNAM QUARTZ JSC
Primary Business Activity	:	Manufacturer
Primary Industry	:	Minerals / Mining
Office Contact Details
Operating Address	:	Lot B10 Thuy Van Industrial Zone Thuy Van Commune, Viet Tri, Phu Tho
Tel	:	[+84] 210-3736666
Fax	:	[+84] 210-3736668
Website Details
Website	:	http://www.vietnamquartzstone.com
Status	:	Normal - operational
Ownership Type	:	Registered ownership by Subject Business Entity

DIRECTORS/MANAGEMENT

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Dao Hoang Hai	Vietnamese	Vice Director	-

Management Details - 1

Personal Unique Identifier	:	MI03576273
Name	:	Mr. Dao Hoang Hai
Date of Birth	:	1962

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03576239
Name	:	Mr. Vu Hoang Nam
Date of Birth	:	1983
Nationality	:	Vietnamese

NEGATIVE INFORMATION

	REPUTATION
	Reference checking for the purpose of establishing the VIETNAM QUARTZ JSC's reputation within the respective industry failed to reveal any adverse information.

NEGA-SCAN - ADVERSE DATA MONITORING

DISHONORED CHECKS

No Record Found

DEBT

No Record Found

LITIGATION

No Record Found

PERFORMANCE DEFAULTS

No Record Found

ADVERSE LOCAL MEDIA COVERAGE / ADVERSE FILING HISTORY

No Record Found

SHARE & SHARE CAPITAL INFORMATION

CAPITAL (Currency: VND - Vietnam Dong)

Authorized Capital

15,000,000,000

Date	Authorized Capital - History
31 Dec, 2009	14,500,000,000
2012	18,691,000,000
2013	15,000,000,000

SHAREHOLDERS

Total number of shareholders	:	5
Total number of shares	:	n/a

Currency

VND - Vietnam Dong

No.	Shareholders	Country	Shares
No.	Shareholders	Country	Number	Amount (VND)	%
1	HUU NGHI PRODUCTION - TRADING JSC	Vietnam	n/a	n/a	25.00
2	Mr. Nguyen Ngoc Hong	Vietnam	n/a	n/a	20.00
3	Mr. Nguyen Thi Thu Giang	Vietnam	n/a	n/a	20.00
4	NHAT HUY CO LTD	Vietnam	n/a	n/a	20.00
5	MONG SON JSC	Vietnam	n/a	n/a	15.00
Total			n/a	n/a	100.00

Based on corporate statutory laws / regulations in Vietnam, there is no requirement for public disclosure of Shareholders. In this case, the Shareholders information was supplied by the Subject Business Entity.
However in the absence of data normally obtained from local Statutory Authorities, it is not possible to verify the accuracy of data supplied and hence is provided as reference ONLY.

PAYMENT INFORMATION

PAYMENT TERMS

Selling

Type

Terms

Local

Cash on delivery (COD)

Credit - Unsecured 30~60 days

Export

Letter of Credit (At-sight)

Telegraphic Transfer (T/T) - Received at time of transaction

Purchasing

Type

Terms

Local

Cash on delivery (COD)

Credit - Unsecured 30~60 days

Import

Letter of Credit (At-sight)

Telegraphic Transfer (T/T) - Executed at time of transaction

GROUP STRUCTURE & AFFILIATED COMPANIES

STRATEGIC PARTNER/S & ALLIANCES

Group / Alliance name

NHAT HUY GROUP

FINANCIAL INFORMATION

Financials - Summary (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2011 Annual	20,307	3,034,277	-240
2012 Annual	340,222	4,250,586	384

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual
Current Assets	4,967,000,000	23,017,000,000
Non Current Assets	58,237,000,000	65,500,000,000
Non Current Liabilities	29,367,000,000	29,370,000,000
Other long term assets
Total Assets	63,204,000,000	88,517,000,000
Total Liabilities	43,700,000,000	64,806,000,000
Current Liabilities	14,333,000,000	35,436,000,000
Long term liabilities
Shareholders Funds	19,504,000,000	23,711,000,000

Current assets & short term investments	4,967,000,000	23,017,000,000
Cash & cash equivalents	817,000,000	1,937,000,000
Cash	817,000,000	1,937,000,000
Accounts receivable	3,114,000,000	6,750,000,000
Accounts receivable trade	439,000,000	3,011,000,000
Trade prepayment	175,000,000	2,292,000,000
Others receivables	2,500,000,000	1,447,000,000
i. Inventories	168,000,000	12,952,000,000
ii. Inventories	168,000,000	12,952,000,000
Other short term asset	868,000,000	1,378,000,000
Prepaid expenses	-	704,000,000
VAT deductible	868,000,000	674,000,000
Long term assets	58,237,000,000	65,500,000,000
Accounts of long term receivable	17,000,000	17,000,000
Other long term receivables	17,000,000	17,000,000
Fixed assets	48,220,000,000	48,844,000,000
Tangible fixed assets	2,649,000,000	27,190,000,000
i. Cost	2,848,000,000	28,511,000,000
i. Accumulated depreciation	199,000,000	1,321,000,000
Finance lease assets	25,861,000,000	21,551,000,000
ii. Cost	25,861,000,000	25,861,000,000
ii. Accumulated depreciation	-	4,310,000,000
Construction in progress	19,710,000,000	103,000,000
Long term investments	9,000,000,000	9,000,000,000
Invest to joint venture company	9,000,000,000	9,000,000,000
Other long term assets	1,000,000,000	7,639,000,000
Long term prepayments	1,000,000,000	7,639,000,000
Total assets	63,204,000,000	88,517,000,000
Liabilities	43,700,000,000	64,806,000,000
Current liabilities	14,333,000,000	35,436,000,000
Short term borrowings	10,168,000,000	24,452,000,000
Accounts payables-trade	3,980,000,000	9,735,000,000
Taxes and payable to state budget	33,000,000	33,000,000
Payable to employees	109,000,000	360,000,000
Other payables	43,000,000	856,000,000
Long term liabilities	29,367,000,000	29,370,000,000
Long term borrowings	29,367,000,000	29,370,000,000
i. Owner's equity	19,504,000,000	23,711,000,000
ii. Owner's equity	14,504,000,000	18,711,000,000
Business capital	14,500,000,000	18,691,000,000
Retained earnings	4,000,000	20,000,000
Budget sources	5,000,000,000	5,000,000,000
Source from subsidies of State	5,000,000,000	5,000,000,000
Total resources	63,204,000,000	88,517,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual
Turnover	423,000,000	7,085,000,000
Profit (Loss) Before Tax	(5,000,000)	10,000,000
Profit After Tax attributable to Shareholders	(5,000,000)	8,000,000

Gross sales	423,000,000	7,085,000,000
Less deductions	8,000,000	1,000,000
Net income	415,000,000	7,084,000,000
Cost of goods sold	287,000,000	5,774,000,000
Gross margin	128,000,000	1,310,000,000
Income from financial activities	331,000,000	297,000,000
Expenses from financial activities	244,000,000	788,000,000
In which: Interest expenses	244,000,000	788,000,000
Selling expenses	15,000,000	266,000,000
General & administration expenses	205,000,000	539,000,000
Net income from operating activities	(5,000,000)	14,000,000
Extraordinary expenses	-	4,000,000
Extraordinary gains	-	(4,000,000)
Net profit before tax	(5,000,000)	10,000,000
Income tax	-	2,000,000
Net profit after tax	(5,000,000)	8,000,000

Financial Ratios

Financial Highlights	2011 Annual	2012 Annual
Growth %
Year-on-Year Growth	-	1,574.94
Profitability
Profit Margin (%)	(1.18)	0.11
Return on Equity (%)	(0.03)	0.03
Return on Assets (%)	(0.01)	0.01
Leverage
Total Debt Equity (Times)	2.24	2.73
Current Debt Equity (Times)	0.73	1.49
Long Term Debt to Equity	1.51	1.24
Total Asset To Total Equity	3.24	3.73
Asset Management
Total Assets Turnover (Times)	0.01	0.08
Fixed Assets Turnover (Times)	0.01	0.11
Liquidity
Current Ratio	0.35	0.65

Based on the corporate laws of Vietnam, legal entities which are Joint Stock Company are not required to make public disclosure of their annual financials. Although financials were obtained for reference.

FOREIGN EXCHANGE RATES

Today's Exchange rate

1.00 VND
Vietnam Dong

0.000047 USD
United States Dollars

ADDITIONAL INFORMATION

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Minerals and earths, ground or otherwise treated	3295	Manufacturing, Exporting
Nonmetallic Minerals, exc Fuel	1400	Manufacturing, Exporting
Stone, Clay, & Glass Products	3200	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Quartz (other than natural sands); quartzite	2506	Manufacturing, Exporting
Quartz, rough, including rough blocks and slabs	2506100050	Manufacturing, Exporting
Silica sands and quartz sands, natural	2505100000	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

Manufacturer and supplier of quartz powders and engineered quartz surfaces with brandname VinaQuartz

The primary business focus of VIETNAM QUARTZ JSC is Manufacturing - Finished products.

Key products include :

· Quartz powder

· Quartz sands

· Quartz Surfaces

An integral part of the core business includes:

· Distribution

Supplementary Business

In addition to the core business, VIETNAM QUARTZ JSC also is engaged in the following areas of business:

1. Exporting

· Exporting - Finished products

2. Importing

· Importing - Raw materials

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	40%
International Sales (Export)	60%

Annual Purchases Analysis	Percentage
Local Purchases	40%
Imports	60%

BRANDS & TRADEMARKS

Brands & Trademarks	Application Category
VinaQuartz	n/a

LOCAL BRANCHES & MANAGEMENT

Branch	:	VIETNAM QUARTZ JSC - HAI BA TRUNG DIST, HANOI
Branch Address	:	3Fl CDS Bldg 33 Alley 61 Lac Trung St, Hai Ba Trung Dist, Hanoi
Branch Tel	:	84-4-36367495
Branch Fax	:	84-4-36367456

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
Europe	Medium	Exporting
Middle-East	Medium	Exporting
Australia	Medium	Exporting
Germany	Medium	Exporting
India	Medium	Importing
Iraq	Medium	Exporting

OFFICE & FACILITIES

Name	:	VIETNAM QUARTZ JSC - VIET TRI, PHU THO
Address	:	Lot B10 Thuy Van Industrial Zone Thuy Van Commune, Viet Tri, Phu Tho
Country	:	Vietnam
Status	:	Operational

QUALITY ACCREDITATION

Quality Accreditation Listings

#	Name	Accreditation Category
1	INTERNATIONAL STANDARDS ORGANIZATION (ISO)	14001:2004
2	INTERNATIONAL STANDARDS ORGANIZATION (ISO)	9001:2000

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.39
UK Pound	1	Rs.102.06
Euro	1	Rs.84.98

INFORMATION DETAILS

Report Prepared by :

MNL

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.