MIRA INFORM REPORT

Report Date :

19.12.2013

IDENTIFICATION DETAILS

Name :	GIA KHANH GENERAL SERVICES TRADING CO LTD
Registered Office :	1, Lane 34/153/8 Vinh Tuy St Vinh Tuy Ward, Hai Ba Trung Dist, Hanoi
Country :	Vietnam
Financials (as on) :	December 2012
Date of Incorporation :	15.02.2011
Legal Form :	Private Company with Limited Liability
Line of Business :	Importer of Motor Vehicles, Parts & Accessories
No. of Employees :	08

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 – September 30th, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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 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

Organization Name	:	GIA KHANH GENERAL SERVICES TRADING CO LTD
Address	:	1, Lane 34/153/8 Vinh Tuy St Vinh Tuy Ward, Hai Ba Trung Dist, Hanoi
Country	:	Vietnam
Phone (S)	:	[+84] 4-66544663
Facsimile	:	[+84] 4-62783935
Email	:	giakhanh0101673668@gmail.com
Primary Business Activity	:	Importer
Key Industry	:	Motor Vehicles, Parts & Accessories

Registered Legal Address	:	1, Lane 34/153/8 Vinh Tuy St Vinh Tuy Ward, Hai Ba Trung Dist, Hanoi
Operational Address	:	1, Lane 34/153/8 Vinh Tuy St Vinh Tuy Ward, Hai Ba Trung Dist, Hanoi
Issuing Authority	:	Dept. of Planning & Investment - Hanoi
License Number	:	0101673668
License Status	:	License exists - Normal.
Legal Form - Category	:	Private Company with Limited Liability
Legal Form	:	Company Limited
Legal Form - Abbreviation	:	CO LTD
Operational Status of Business	:	Normal
Date of Registration	:	15 Feb, 2011
Employees	:	8
Capital	:	US$ 236,850
Note	:

Country	:	Vietnam
Business Entity Name	:	GIA KHANH GENERAL SERVICES TRADING CO LTD
Primary Business Activity	:	Importer
Primary Industry	:	Motor Vehicles, Parts & Accessories
Office Contact Details
Operating Address	:	1, Lane 34/153/8 Vinh Tuy St Vinh Tuy Ward, Hai Ba Trung Dist, Hanoi
Tel	:	[+84] 4-66544663
Fax	:	[+84] 4-62783935
Email	:	giakhanh0101673668@gmail.com
Tax / VAT Details
Tax Issuing Authority	:	Ministry of Finance
Local Name Used	:	Gia Trj Gia Tang (Value Added Tax)
Acronym	:	GTGT / VAT
GTGT / VAT Number	:	0101673668

DIRECTORS/MANAGEMENT

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03597807
Name	:	Mr. Le Van Dat
Nationality	:	Vietnamese

NEGATIVE INFORMATION

REPUTATION

Due to the recent incorporation of the GIA KHANH GENERAL SERVICES TRADING CO LTD, and the relatively small nature of its business, no meaningful points of reference in terms of reputation within the respective industry was possible.

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

:

5,000,000,000

SHAREHOLDERS

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

No.	Shareholders	Country	Shares
			Number	Amount	%
1	Mr. Le Van Dat	Vietnam	n/a	n/a	96.00
2	Ms. Le Thi Kim Trang	Vietnam	n/a	n/a	4.00
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

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	80%
International Sales (Export)	20%

Annual Purchases Analysis	Percentage
Imports	100%

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
Import	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Executed at time of transaction

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2011 Annual	14,643,495	2,958,713	8,497
2012 Annual	12,072,130	2,343,135	2,305

Sales Trend – Analysis

2003	2004	2005	2006	2007	2008	2009	2010	2011	2012
-	-	-	-	-	-	-	-	-

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual
Current Assets	61,256,000,000	48,561,000,000
Non Current Assets	374,000,000	234,000,000
Non Current Liabilities	-	189,000,000
Share Capital	5,000,000,000	5,000,000,000
Other long term assets
Total Assets	61,630,000,000	48,795,000,000
Total Liabilities	56,093,000,000	43,192,000,000
Current Liabilities	56,093,000,000	43,003,000,000
Long term liabilities
Shareholders Funds	5,537,000,000	5,603,000,000
Current assets & short term investments	61,256,000,000	48,561,000,000
Cash & cash equivalents	11,283,000,000	5,459,000,000
Cash	-	5,459,000,000
Cash equivalents	11,283,000,000	-
Accounts receivable	17,862,000,000	6,054,000,000
Accounts receivable trade	4,166,000,000	3,236,000,000
Trade prepayment	13,660,000,000	2,266,000,000
Other receivables	36,000,000	552,000,000
Inventories	31,554,000,000	36,777,000,000
I. Other short term asset	557,000,000	271,000,000
VAT deductible	66,000,000	27,000,000
Other tax receivables	6,000,000	7,000,000
II. Other short term asset	485,000,000	237,000,000
Long term assets	374,000,000	234,000,000
Fixed assets	374,000,000	234,000,000
Tangible fixed assets	374,000,000	234,000,000
Cost	869,000,000	869,000,000
Accumulated depreciation	495,000,000	635,000,000
Total assets	61,630,000,000	48,795,000,000
Liabilities	56,093,000,000	43,192,000,000
Current liabilities	56,093,000,000	43,003,000,000
Short term borrowings	23,502,000,000	14,880,000,000
Accounts payables-trade	13,987,000,000	11,317,000,000
Advances from customers	12,527,000,000	10,710,000,000
Taxes and payable to state budget	6,077,000,000	6,096,000,000
Long term liabilities	-	189,000,000
Long term other payables	-	189,000,000
I. Owner's equity	5,537,000,000	5,603,000,000
II. Owner's equity	5,531,000,000	5,596,000,000
Business capital	5,000,000,000	5,000,000,000
Other funds from owner's equity	28,000,000	28,000,000
Retained earnings	503,000,000	568,000,000
Budget sources	6,000,000	7,000,000
Bonus and welfare funds	6,000,000	7,000,000
Total resources	61,630,000,000	48,795,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual
Turnover	305,024,000,000	251,398,000,000
Profit (Loss) Before Tax	236,000,000	76,000,000
Profit After Tax attributable to Shareholders	177,000,000	48,000,000
Gross sales	305,024,000,000	251,398,000,000
Net income	305,024,000,000	251,398,000,000
Cost of goods sold	296,860,000,000	243,803,000,000
Gross margin	8,164,000,000	7,595,000,000
Income from financial activities	182,000,000	95,000,000
Expenses from financial activities	4,002,000,000	4,038,000,000
In which: Interest expenses	0	3,978,000,000
General & administration expenses	4,108,000,000	3,492,000,000
Net income from operating activities	236,000,000	160,000,000
Extraordinary expenses	0	84,000,000
Extraordinary gains	0	(84,000,000)
Net profit before tax	236,000,000	76,000,000
Income tax	59,000,000	28,000,000
Net profit after tax	177,000,000	48,000,000

Financial Ratios

Financial Highlights	2011 Annual	2012 Annual
Growth %
Year-on-Year Growth	-	(17.58)
Profitability
Profit Margin (%)	0.06	0.02
Return on Equity (%)	3.20	0.86
Return on Assets (%)	0.29	0.10
Leverage
Total Debt Equity (Times)	10.13	7.71
Current Debt Equity (Times)	10.13	7.67
Long Term Debt to Equity	-	0.03
Total Asset To Total Equity	11.13	8.71
Asset Management
Total Assets Turnover (Times)	4.95	5.15
Fixed Assets Turnover (Times)	815.57	1,074.35
Liquidity
Current Ratio	1.09	1.13

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

ADDITIONAL INFORMATION

Primary Products

Products / Materials / Services Description	Activity
Car tires	Importing, Trading

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Tires & Tubes	5014	Importing, Trading
Tires and inner tubes	3011	Importing, Trading

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Inner tubes for tires, of rubber	4013	Importing, Trading
New pneumatic tires, of rubber	4011	Importing, Trading

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of GIA KHANH GENERAL SERVICES TRADING CO LTD is Importing - Finished products.

Key product include :

Car tires

An integral part of the core business includes:

Distribution

Supplementary Business

In addition to the core business, GIA KHANH GENERAL SERVICES TRADING CO LTD also is engaged in the following areas of business:

Exporting

Exporting - Finished products

BANK DETAILS

Bank Name	:	DONG A COMMERCIAL JOINT STOCK BANK
Global Identifier	:	P1007587
Branch	:	Phu Nhuan,Ho Chi Minh
Branch Address	:	DONG A COMMERCIAL JOINT STOCK BANK - DONG DA, HANOI
SWIFT Code	:	EACBVNVX

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
China	Medium	Importing
India	Medium	Exporting
Korea, South (Republic of Korea)	Medium	Importing

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
18 May, 2005	0102020460

REAL ESTATE OWNERSHIP

The following property / ies are owned by GIA KHANH GENERAL SERVICES TRADING CO LTD :

Property Name	:	GIA KHANH GENERAL SERVICES TRADING CO LTD - HAI BA TRUNG DIST, HANOI
Type of Property	:	Office
Address	:	1, Lane 34/153/8 Vinh Tuy St Vinh Tuy Ward, Hai Ba Trung Dist, Hanoi
Office Size	:	300 Square meters

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.92
UK Pound	1	Rs.100.83
Euro	1	Rs.85.27

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.