MIRA INFORM REPORT

Report Date :

16.05.2013

IDENTIFICATION DETAILS

Name :	NAM DAN COMPANY LIMITED
Registered Office :	No.159, Ba Hom street, ward 13, 6^th District, Ho Chi Minh City
Country :	Vietnam
Financials (as on) :	31.12.2010
Year of Establishments:	2003
Com. Reg. No.:	0303106573
Legal Form :	Limited Liability Company
Line of Business :	trading raw materials, chemicals for paint, printing ink and plastics industries
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 :	Unknown
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 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

SUBJECT IDENTIFICATION & LEGAL FORM
Current legal status
English Name	NAM DAN COMPANY LIMITED
Vietnamese Name	CONG TY TNHH NAM DAN
Trade name	NAM DAN CO., LTD
Type of Business	Limited liability company
Year Established	2003
Business Registration No.	0303106573
Date of Registration	19 Aug 2009
Place of Registration	Business Registration Office - Planning and Investment Department of Ho Chi Minh City
Chartered capital	VND 10,000,000,000
Tax code	0303106573
Total Employees	20
Size	Small

Historical Identification & Legal form

List	Changed Items													Date of changes
1	Subject has got former Chartered capital: VND 4,000,000,000 Changed to: VND 10,000,000,000													21 May 2012
2	Subject has got former Business Registration No: 4102018450 which was issued on October 24^th, 2003 Changed to: 0303106573													19 Aug 2009
cOMPANY ADDRESSES
Head Office
Address					No.159, Ba Hom street, ward 13, 6^th District, Ho Chi Minh City, Vietnam
Telephone					(84-8) 3751 6912
Fax					(84-8) 3751 8342
Email					namdan@namdan.com.vn
Website					www.namdan.com.vn
Workshop Address
Address					No.11, Le Binh Str, Ward 4, Tan Binh District, Ho Chi Minh City, Vietnam
Branch in Long An
Address					Lot 3, Road 20, Huu Thanh Commune, Duc Hoa District, Long An Province, Vietnam
warehouse
Address					No. 362, Highway 1A, Tam Binh Ward, Thu Duc District, Ho Chi Minh City, Vietnam
Telephone					(84-8) 6282 0260
DIRECTORS
1. NAME				Ms. NGUYEN THI MINH HIEU
Position				Director
Date of Birth				22 Oct 1964
ID Number/Passport				022756211
ID Issue Date				29 Nov 2002
ID Issue Place				Police station of Hochiminh City
Resident				No. 811 Cach Mang Thang Tam Str, Ward 4, Tan Binh District, Ho Chi Minh City, Vietnam
Nationality				Vietnamese
Tel/Mobile phone				+84 918 175 875
Email				minhhieu@namdan.com.vn
Note: the given email address is not correct
2. NAME				Ms. NGUYEN THI QUYEN
Position				Chairwoman
ID Number/Passport				023953065
Resident				No. 159 Ba Hom Str, Ward 13, 6^th District, Ho Chi Minh City, Vietnam
Nationality				Vietnamese
3. NAME				Ms. LE NGOC THUY DUONG
Position				Chief Accountant
Nationality				Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject’s registration business items:  + Chemicals for the paint industry, printing ink, plastic, rubber. - Organic pigments and inorganic. - Titan dioxide. - Additives: desiccant, anti-deposition, wetting, dispersing, froth, glossy surface. - Plastics: petroresin, arcylic emusion, degalan. - The other chemicals: solvents, color paste, a desiccant. + Laboratory Equipment: a measure of smoothness, drag painting size, density measuring cup, glass viscosity, measured by pencil hardness, gloss measurement, plants ink roller. + Machinery for paint, ink: axis mill, ball mills, agitators. Consulting and design the production line of paints, printing inks and plastics Ankit. +Purchase of machinery and equipment industry; +Purchase and maintenance of computers, printers and electronic components. +Waste collection (not working at the office). +Provide kinds of air tickets domestic and international.
IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products					Chemicals
· Market					China, India, USA, Japan, Korea, Germany and Malaysia
EXPORT:
· Types of products					N/A
· Market					N/A
BANKERS
ASIA COMMERCIAL JOINT STOCK BANK
Address					444 Nguyen Thi Minh Khai, 3^rd District, Ho Chi Minh City, Vietnam
Telephone					(84-8) 38328988
Fax					(84-8) 38328987
SHAREHOLDERS
1. NAME					Ms. NGUYEN THI MINH HIEU
Position					Director
Date of Birth					22 Oct 1964
ID Number/Passport					022756211
Issued on					29 Nov 2002
Issued Place					Police station of Hochiminh City
Resident					No. 811 Cach Mang Thang Tam Str, Ward 4, Tan Binh District, Ho Chi Minh City, Vietnam
Email					minhhieu@namdan.com.vn
Mobile phone					+84 918 175 875
Nationality					Vietnamese
Value of shares					VND 7,500,000,000
Percentage					75%
2. NAME					Ms. NGUYEN THI QUYEN
Position					Chairwoman
ID Number/Passport					023953065
Resident					No. 159 Ba Hom Str, Ward 13, 6 District, Ho Chi Minh City, Vietnam
Nationality					Vietnamese
Value of shares					VND 2,500,000,000
Percentage					25%
FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date								31/12/2010			31/12/2009				31/12/2008
Number of weeks								52			52				52
ASSETS
A – CURRENT ASSETS								29,740,450,160			18,213,701,474				12,340,000,000
I. Cash and cash equivalents								799,645,108			211,092,837				541,000,000
1. Cash								799,645,108			211,092,837				541,000,000
2. Cash equivalents								0			0				0
II. Short-term investments								0			0				0
1. Short-term investments								0			0				0
2. Provisions for devaluation of short-term investments								0			0				0
III. Accounts receivable								18,153,977,431			11,001,814,990				7,132,000,000
1. Receivable from customers								17,758,382,624			10,646,839,728				6,720,000,000
2. Prepayments to suppliers								0			0				0
3. Inter-company receivable								0			0				0
4. Receivable according to the progress of construction								0			0				0
5. Other receivable								395,594,807			354,975,262				412,000,000
6. Provisions for bad debts								0			0				0
IV. Inventories								10,786,827,621			6,833,265,618				4,323,000,000
1. Inventories								10,786,827,621			6,833,265,618				4,323,000,000
2. Provisions for devaluation of inventories								0			0				0
V. Other Current Assets								0			167,528,029				344,000,000
1. Short-term prepaid expenses								0			122,486,007				0
2. VAT to be deducted								0			45,042,022				0
3. Taxes and other accounts receivable from the State								0			0				0
4. Other current assets								0			0				344,000,000
B. LONG-TERM ASSETS								3,817,415,584			4,032,017,481				582,000,000
I. Long term accounts receivable								0			0				0
1. Long term account receivable from customers								0			0				0
2. Working capital in affiliates								0			0				0
3. Long-term inter-company receivable								0			0				0
4. Other long-term receivable								0			0				0
5. Provisions for bad debts from customers								0			0				0
II. Fixed assets								268,402,875			321,187,261				582,000,000
1. Tangible assets								268,402,875			321,187,261				582,000,000
- Historical costs								1,030,690,257			976,018,439				976,000,000
- Accumulated depreciation								-762,287,382			-654,831,178				-394,000,000
2. Financial leasehold assets								0			0				0
- Historical costs								0			0				0
- Accumulated depreciation								0			0				0
3. Intangible assets								0			0				0
- Initial costs								0			0				0
- Accumulated amortization								0			0				0
4. Construction-in-progress								0			0				0
III. Investment property								0			0				0
Historical costs								0			0				0
Accumulated depreciation								0			0				0
IV. Long-term investments								0			0				0
1. Investments in affiliates								0			0				0
2. Investments in business concerns and joint ventures								0			0				0
3. Other long-term investments								0			0				0
4. Provisions for devaluation of long-term investments								0			0				0
V. Other long-term assets								3,549,012,709			3,710,830,220				0
1. Long-term prepaid expenses								0			3,710,830,220				0
2. Deferred income tax assets								0			0				0
3. Other long-term assets								3,549,012,709			0				0
VI. Goodwill								0
1. Goodwill								0
TOTAL ASSETS								33,557,865,744			22,245,718,955				12,922,000,000
LIABILITIES
A- LIABILITIES								26,109,682,965			16,833,488,502				7,727,000,000
I. Current liabilities								26,109,682,965			16,833,488,502				7,727,000,000
1. Short-term debts and loans								19,584,619,500			12,056,002,169				5,570,000,000
2. Payable to suppliers								6,252,174,692			4,777,486,333				2,155,000,000
3. Advances from customers								0			0				0
4. Taxes and other obligations to the State Budget								272,888,773			0				2,000,000
5. Payable to employees								0			0				0
6. Accrued expenses								0			0				0
7. Inter-company payable								0			0				0
8. Payable according to the progress of construction contracts								0			0				0
9. Other payable								0			0				0
10. Provisions for short-term accounts payable								0			0				0
11. Bonus and welfare funds								0
II. Long-Term Liabilities								0			0				0
1. Long-term accounts payable to suppliers								0			0				0
2. Long-term inter-company payable								0			0				0
3. Other long-term payable								0			0				0
4. Long-term debts and loans								0			0				0
5. Deferred income tax payable								0			0				0
6. Provisions for unemployment allowances								0			0				0
7. Provisions for long-term accounts payable								0			0				0
8. Unearned Sale								0
9. Science and technology development fund								0
B- OWNER’S EQUITY								7,448,182,779			5,412,230,453				5,195,000,000
I. OWNER’S EQUITY								7,448,182,779			5,412,230,453				5,195,000,000
1. Capital								4,000,000,000			4,000,000,000				4,000,000,000
2. Share premiums								0			0				0
3. Other sources of capital								0			0				0
4. Treasury stocks								0			0				0
5. Differences on asset revaluation								0			0				0
6. Foreign exchange differences								0			0				0
7. Business promotion fund								0			0				0
8. Financial reserved fund								0			0				0
9. Other funds								0			0				0
10. Retained earnings								3,448,182,779			1,412,230,453				1,195,000,000
11. Construction investment fund								0			0				0
12. Business arrangement supporting fund								0
II. Other sources and funds								0			0				0
1. Bonus and welfare funds (Elder form)								0			0				0
2. Sources of expenditure								0			0				0
3. Fund to form fixed assets								0			0				0
MINORITY’S INTEREST								0			0				0
TOTAL LIABILITIES AND OWNER’S EQUITY								33,557,865,744			22,245,718,955				12,922,000,000
PROFIT & LOSS STATEMENT
Description								FY2010			FY2009				FY2008
1. Total Sales								70,730,265,332			49,637,135,636				49,051,000,000
2. Deduction item								0			2,090,900				15,000,000
3. Net sale								70,730,265,332			49,635,044,736				49,036,000,000
4. Costs of goods sold								62,630,505,082			43,672,393,782				44,034,000,000
5. Gross profit								8,099,760,250			5,962,650,954				5,002,000,000
6. Financial income								16,803,273			36,752,855				101,000,000
7. Financial expenses								2,739,714,596			1,912,322,676				1,955,000,000
- In which: Loan interest expenses								1,643,411,030			1,277,095,074				1,571,000,000
8. Selling expenses											3,871,699,530
9. Administrative overheads								3,224,652,035			0				1,920,000,000
10. Net operating profit								2,152,196,892			215,381,603				1,228,000,000
11. Other income								3,157,809			3,240,891				0
12. Other expenses								1,933,920			1,388,764				8,000,000
13. Other profit /(loss)								1,223,889			1,852,127				-8,000,000
14. Total accounting profit before tax								2,153,420,781			217,233,730				1,220,000,000
15. Current corporate income tax								0			0				0
16. Deferred corporate income tax								0			0				0
17. Interest from subsidiaries/related companies								0
18. Profit after tax								2,153,420,781			217,233,730				1,220,000,000
FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description						FY2010				FY2009			FY2008				Average Industry
Current liquidity ratio						1.14				1.08			1.60				1.92
Quick liquidity ratio						0.73				0.68			1.04				1.02
Inventory circle						7.11				7.83			10.19				5.97
Average receive period						93.68				80.90			53.09				66.39
Utilizing asset performance						2.11				2.23			3.79				2.29
Liability by total assets						77.80				75.67			59.80				65.45
Liability by owner's equity						350.55				311.03			148.74				290.21
Ebit / Total assets (ROA)						11.31				6.72			21.60				10.65
Ebit / Owner's equity (ROE)						50.98				27.61			53.72				31.58
Ebit / Total sale (NPM)						5.37				3.01			5.69				4.98
Gross profit / Total sale (GPM)						11.45				12.01			10.20				14.19
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							Even
Litigation data							No
Bankruptcy							No
Payment Methods							Through the bank
Sale Methods							Retailer and Wholesaler
Public opinion							Average
INTERPRETATION ON THE SCORES
The subject - NAM DAN COMPANY LTD was established in 2003. At present, the subject is operating under Business Registration No. 0303106573 (as same as tax code) and the registered capital VND 10,000,000,000. Its head office located at No.159 Ba Hom, Ward 13, District 6, Ho Chi Minh City, Vietnam. At the present, this subject has operated in two sectors, including chemical product and airline ticket agency. Firstly, this subject is specializing in trading raw materials, chemicals for paint, printing ink and plastics industries. Secondly, the subject has added activity and operated as an agent of airline companies. Most of chemical products are imported from India, USA, Japan, Germany, Korea and Malaysia to distribute in domestic market. Panax Color (Korea), Lona (India), Lomon (China) and Melchers (Hong Kong) are some brand names which the subject has distributed. In overview, this subject operates normally with total 20 employees. According to reported financial statements, total sale and profit after tax were quite good. Especially, profit after tax in 2010 increased sharply. We interviewed Ms. LE NGOC THUY DUONG- chief accountant, she said that in 2011, total sales was about VND 100 billion and profit after tax was higher than profit in 2010; however, in 2012, it did not operate as well as in 2011. In our opinion, the subject has capacity to meet all small transactions.
Following is tax payable (related to imports/ exports) of the company (updated on 16^th May 2013):
Customs code		Registration Date	Import tax payable (unit: VND)						Export tax payable (unit: VND)			VAT on imports/ exports (unit: VND)				Fee (unit: VND)
C02I02		04/03/2013	0						0			0				40,000
C02I02		07/03/2013	0						0			0				20,000
C02I02		09/03/2013	0						0			0				20,000
C02I02		11/03/2013	0						0			0				20,000
C02I02		18/03/2013	0						0			0				20,000
C02I02		18/03/2013	0						0			0				20,000
C02I02		18/03/2013	0						0			0				20,000
C02I02		20/03/2013	0						0			0				20,000
C02I02		25/03/2013	0						0			0				20,000
C02I02		25/03/2013	0						0			53,319,680				0
C02I02		29/03/2013	0						0			0				20,000
C02I02		03/04/2013	0						0			0				20,000
C02I02		03/04/2013	0						0			38,169,393				0
C02I02		11/04/2013	0						0			0				20,000
C02I02		11/04/2013	36,309,452						0			131,785,629				0
C02I02		11/04/2013	0						0			0				20,000
C02I02		11/04/2013	0						0			14,787,880				0
C02I02		11/04/2013	0						0			0				20,000
C02I02		11/04/2013	0						0			103,098,600				0
C02I02		23/04/2013	0						0			0				20,000
C02I02		23/04/2013	0						0			97,076,184				0
C02I02		23/04/2013	0						0			0				20,000
C02I02		23/04/2013	0						0			202,448,160				0
C02I02		24/04/2013	0						0			0				20,000
C02I02		24/04/2013	0						0			202,448,160				0
T03G		07/05/2013	0						0			0				20,000
T03G		07/05/2013	0						0			101,224,080				0

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.54.78
UK Pound	1	Rs.83.38
Euro	1	Rs.70.72

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.