MIRA INFORM REPORT

Report Date :

07.09.2013

IDENTIFICATION DETAILS

Name :	TIN THINH CO., LTD
Registered Office :	Lot F1 Suoi Dau Industrial Zone, Cam Lam District, Khanh Hoa Province,
Country :	Vietnam
Financials (as on) :	31.12.2011
Date of Incorporation :	23.07.2002
Com. Reg. No.:	4200493871
Legal Form :	Limited Liability Company
Line of Business :	The subject is specializing in collecting and processing frozen seafood.
No. of Employees :	165

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 – 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

English Name	TIN THINH CO., LTD
Vietnamese Name	CONG TY TNHH TIN THINH
Short name	TITHICO
Type of Business	Limited liability company
Year Established	2002
Business Registration No.	4200493871
Date of Registration	23 Jul 2002
Place of Registration	Khanh Hoa Department of Planning and Investment
Chartered capital	VND 60,000,000,000
Status	Unlisted
Tax code	4200493871
Total Employees	165
Size	Medium
Note:  The latest business registration was adjusted on 09 August 2013.

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Chartered capital: VND 35,600,000,000 Changed to: VND 60,000,000,000	09 Aug 2013
2	Subject has got former Chartered capital: VND 33,600,000,000 Changed to: VND 35,600,000,000	12 Sep 2011
3	Subject has got former address No. 80B, Road 23/10 Nha Trang - Khanh Hoa Changed to Lot F1 Suoi Dau Industrial Zone, Cam Lam District, Khanh Hoa Province	N/A

ADDRESSES

Head Office
Address	Lot F1 Suoi Dau Industrial Zone, Cam Lam District, Khanh Hoa Province, Vietnam
Telephone	(84-58) 3744161/ 3744152/ 3744153
Fax	(84-58) 3744165
Email	mnhinguyen@dng.vnn.vn

DIRECTORS

1. NAME	Ms. TRUONG THI XA
Position	Chairwoman
Date of Birth	03 Nov 1950
ID Number/Passport	220098037
ID Issue Date	29 Nov 2000
ID Issue Place	Khanh Hoa Police Station
Resident	No 30B 23/10 Str, Phuong Son ward, Nha Trang City, Khanh Hoa Province, Vietnam
Nationality	Vietnamese
2. NAME	Ms. NGUYEN THI MY NHI
Position	General Director
ID Number/Passport	225036553
Resident	KB124 Cu Lao Thuong Vinh Tho ward, Nha Trang City, Khanh Hoa Province, Vietnam
Nationality	Vietnamese
3. NAME	Mr. NGUYEN THANH TUNG
Position	Deputy General Director
Resident	Khanh Hoa Province, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is specializing in collecting and processing frozen seafood

IMPORT & EXPORT ACTIVITIES

IMPORT:
Types of products	Seafoods and materials
Market	Indonesia, Thailand, Philippines, India, ....
Ratio	N/A
Mode of payment	L/C and T/T
EXPORT:
Market	USA, Japan, EU countries, Australia and Middle East.
Ratio	Over 90%
Mode of payment	LC and TT

BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM NHA TRANG BRANCH
Address	No 21 Le Thanh Phuong-Van Thanh Ward, Nha Trang City, Khanh Hoa Province, Vietnam
Telephone	(84-058) 3722820 / 3821483
Fax	(84-058) 3815114 / 3823806
2. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM BINH TAN TRANSACTION
Address	No.44 Kho Cang, Binh Tan, Nha Trang City, Khanh Hoa Province, Vietnam
Telephone	(84-58) 3855810
3. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK NHA TRANG BRANCH
Address	No.38 Thong Nhat str, Nha Trang City, Khanh Hoa Province, Vietnam
Telephone	(84-58) 3818 177
Fax	(84-58) 3818 166

SHAREHOLDERS

1. NAME	Ms. TRUONG THI XA
Position	Chairwoman
Date of Birth	03 Nov 1950
ID Number/Passport	220098037
Issued on	29 Nov 2000
Issued Place	Khanh Hoa Police Station
Resident	No 30B 23/10 Str, Phuong Son ward, Nha Trang City, Khanh Hoa Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 30,600,000,000
Percentage	51%
2. NAME	Ms. NGUYEN THI MY NHI
Position	General Director
ID Number/Passport	225036553
Resident	KB124 Cu Lao Thuong Vinh Tho ward, Nha Trang City, Khanh Hoa Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 23,400,000,000
Percentage	39%
3. NAME	Ms. NGUYEN VIET LINH
ID Number/Passport	220772076
Resident	Xuan Loc 1 village Vinh Ngoc commune, Nha Trang City, Khanh Hoa Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 6,000,000,000
Percentage	10%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010	31/12/2009
Number of weeks	52	52	52
Audit status	Unknown	Unknown	Unknown
ASSETS
A – CURRENT ASSETS	291,596,325,112	155,005,263,845	92,074,000,000
I. Cash and cash equivalents	12,193,675,316		1,312,000,000
1. Cash	12,193,675,316	5,331,553,209	1,312,000,000
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	94,578,468,058	76,663,469,095	27,523,000,000
1. Receivable from customers	79,099,115,936	68,407,651,685	25,327,000,000
2. Prepayments to suppliers	14,862,656,048	8,255,817,410	2,584,000,000
3. Inter-company receivable	0		0
4. Receivable according to the progress of construction	0		0
5. Other receivable	616,696,074		0
6. Provisions for bad debts	0		-388,000,000
IV. Inventories	183,984,659,021	72,574,490,330	62,267,000,000
1. Inventories	183,984,659,021	72,574,490,330	62,267,000,000
2. Provisions for devaluation of inventories	0		0
V. Other Current Assets	839,522,717	435,751,211	972,000,000
1. Short-term prepaid expenses	278,949,573	435,751,211	312,000,000
2. VAT to be deducted	560,573,144		360,000,000
3. Taxes and other accounts receivable from the State	0		0
4. Other current assets	0		300,000,000
B. LONG-TERM ASSETS	47,869,275,702	47,580,389,804	59,521,000,000
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	47,755,717,570	47,206,832,572	47,197,000,000
1. Tangible assets	47,755,717,570	47,206,832,572	45,831,000,000
- Historical costs	63,474,198,094	57,399,228,176	52,423,000,000
- Accumulated depreciation	-15,718,480,524	-10,192,395,604	-6,592,000,000
2. Financial leasehold assets	0		0
- Historical costs	0		0
- Accumulated depreciation	0		0
3. Intangible assets	0		0
- Initial costs	20,000,000		0
- Accumulated amortization	-20,000,000		0
4. Construction-in-progress	0		1,366,000,000
III. Investment property	0		0
Historical costs	0		0
Accumulated depreciation	0		0
IV. Long-term investments	0		11,829,000,000
1. Investments in affiliates	0		0
2. Investments in business concerns and joint ventures	0		0
3. Other long-term investments	0		11,829,000,000
4. Provisions for devaluation of long-term investments	0		0
V. Other long-term assets	113,558,132	373,557,232	495,000,000
1. Long-term prepaid expenses	113,558,132	373,557,232	495,000,000
2. Deferred income tax assets	0		0
3. Other long-term assets	0		0
VI. Goodwill	0
1. Goodwill	0
TOTAL ASSETS	339,465,600,814	202,585,653,649	151,595,000,000
LIABILITIES
A- LIABILITIES	303,879,651,104	151,989,925,355	107,996,000,000
I. Current liabilities	300,489,857,929	142,453,612,956	89,310,000,000
1. Short-term debts and loans	165,501,873,691	115,023,242,642	79,740,000,000
2. Payable to suppliers	129,466,875,606	24,736,859,795	7,941,000,000
3. Advances from customers	2,965,026,860	1,893,596,815	1,427,000,000
4. Taxes and other obligations to the State Budget	123,021,894	388,780,081	202,000,000
5. Payable to employees	2,050,000,000		0
6. Accrued expenses	0	29,773,200	0
7. Inter-company payable	0		0
8. Payable according to the progress of construction contracts	0		0
9. Other payable	383,059,878	381,360,423	0
10. Provisions for short-term accounts payable	0		0
11. Bonus and welfare funds	0
II. Long-Term Liabilities	3,389,793,175	9,536,312,399	18,686,000,000
1. Long-term accounts payable to suppliers	0		0
2. Long-term inter-company payable	0		0
3. Other long-term payable	0		3,450,000,000
4. Long-term debts and loans	3,247,186,664	9,536,312,399	15,236,000,000
5. Deferred income tax payable	0		0
6. Provisions for unemployment allowances	142,606,511		0
7. Provisions for long-term accounts payable	0		0
8. Unearned Revenue	0
9. Science and technology development fund	0
B- OWNER’S EQUITY	35,585,949,710	50,595,728,294	43,599,000,000
I. OWNER’S EQUITY	35,585,949,710	50,595,728,294	43,599,000,000
1. Capital	35,600,000,000	33,600,000,000	33,000,000,000
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	96,880,785	-281,087,160	0
7. Business promotion fund	0		0
8. Financial reserved fund	0		0
9. Other funds	0		0
10. Retained earnings	-110,931,075	17,276,815,454	5,190,000,000
11. Construction investment fund	0		5,409,000,000
12. Business arrangement supporting fund	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
TOTAL LIABILITIES AND OWNER’S EQUITY	339,465,600,814	202,585,653,649	151,595,000,000

PROFIT & LOSS STATEMENT

Description	FY2011	FY2010	FY2009
1. Total Sales	688,570,703,743	575,706,573,421	337,372,000,000
2. Deduction item	552,441,406	12,826,591,762	2,810,000,000
3. Net revenue	688,018,262,337	562,879,981,659	334,562,000,000
4. Costs of goods sold	642,957,219,698	516,317,153,605	305,097,000,000
5. Gross profit	45,061,042,639	46,562,828,054	29,465,000,000
6. Financial income	12,716,009,331	10,418,469,065	1,432,000,000
7. Financial expenses	19,511,400,098	16,897,333,419	6,295,000,000
- In which: Loan interest expenses	7,691,207,484	6,070,500,280	3,538,000,000
8. Selling expenses	30,057,073,443	30,673,441,601	17,637,000,000
9. Administrative overheads	7,195,992,802	3,299,240,950	3,548,000,000
10. Net operating profit	1,012,585,627	6,111,281,149	3,417,000,000
11. Other income	143,960,050	651,484,505	2,946,000,000
12. Other expenses	967,872,426	73,789,554	971,000,000
13. Other profit /(loss)	-823,912,376	557,694,951	1,975,000,000
14. Total accounting profit before tax	188,673,251	6,668,976,100	5,392,000,000
15. Current corporate income tax	182,402,989	11,496,341	202,000,000
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	6,270,262	6,677,479,759	5,190,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	0.97	1.09	1.03	1.24
Quick liquidity ratio	0.36	0.58	0.33	0.64
Inventory circle	3.49	7.11	6.62	5.02
Average receive period	50.17	49.71	30.03	82.74
Utilizing asset performance	2.03	2.78	2.21	1.36
Liability by total assets	89.52	75.03	71.24	69.39
Liability by owner's equity	853.93	300.40	247.70	260.95
Ebit / Total assets (ROA)	2.32	6.29	5.89	15.09
Ebit / Owner's equity (ROE)	22.14	25.18	20.48	49.87
Ebit / Total revenue (NPM)	1.14	2.21	2.65	14.92
Gross profit / Total revenue (GPM)	6.54	8.09	8.73	20.48
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CASH FLOW STATEMENT

(Direct method)
Items	FY2011
I. Cash flows from operating activities
1.Cash received from customers	691,529,697,246
2. Cash paid to suppliers	-713,172,420,917
3. Cash paid to employees	-13,664,320,422
4. Interest paid	-9,474,587,107
5. Income taxes paid	-176,196,086
6. Other operating cash receipts	109,776,640,505
7. Other operating payments	-112,131,937,330
Net cash flows from operating activities	-47,313,124,111
II. Cash flows from investing activities
1. Purchases and construction of fixed assets and other long-term assets
2. Gains from disposals and liquidation of fixed assets and other long-term assets
3. Loans given and purchases of debt instruments of other entities
4. Recovery of loans given and disposals of debt instruments of other entities
5. Investments into other entities
6. Withdrawals of investments in other entities
7. Receipts of loan interests, dividends and profit shared	17,775,553
Net cash flows from investing activities	-784,065,811
III. Cash flows from financing activities
1. Gains from stock issuance and capital contributions from shareholders	2,000,000,000
2. Repayment for capital contributions and re-purchases of stocks already issues
3. Short-term and long-term loans received	682,906,628,007
4. Loan principal amounts repaid	-629,947,122,693
5. Payments for financial leasehold assets
6. Dividends and profit already paid to the owners	-193,285
Net cash flows from financing activities	54,959,312,029
Net cash flows during the year	6,862,122,107
Beginning cash and cash equivalents	5,331,553,209
Effects of fluctuations in foreign exchange rates	0
Ending cash and cash equivalents	12,193,675,316

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Fair
Liquidity	Medium
Payment status	Average
Financial Situation	Average
Development trend	Negative
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	LC and TT
Sale Methods	To contracts
Public opinion	Good

INTERPRETATION ON THE SCORES

TIN THINH CO., LTD was established in 2002 in Khanh Hoa Province. At present, the subject is operating under the business code No. 4200493871, original issued on 23 July 2002 and last adjusted on 09 August 2013. The chartered capital of company was increased from VND 35.6 billion to 60 billion VND and Ms. Truong Thi Xa – chairwoman holds 51 percent.

Head office and factory of the subject are located at Lot F1 Suoi Dau Industrial Zone - Cam Lam District - Khanh Hoa Province. Premise and facilities are fair. Subject has about 165 official employees, this number maybe up to 320 people in harvest.

The subject currently specializes in collecting and processing frozen seafood for export. It often imports seafoods from some countries as Indonesia, Thailand, Philippines, India,.... Then it processes and exports to markets as U.S.A, Japan, EU countries, Australia and Middle East. According Ms. Dao, accountant of the subject, its exporting activities occupy over 90% in total revenue and the rest for consuming domestic.

Following is a chart which shows the growth of total assets, liabilities and owner’s equity of the subject in different years.

Overall, we can see that total assets, liabilities and owner equity of the subject in recent years fluctuated considerably. Total assets in 2007 were only VND 80,158 million, in 2010 increasing to VND 202,585 million and up to VND 339,465 million in 2011. This is main caution by the increase of current assets in 2011 which rose 88% in compared with 2010. The liabilities of the subject also increased strongly, the current liabilities rose 110%. Thus, the current liquidity ratio was lower than the year 2010 and 2009. The growth rate of liabilities was so high while the growth rate of owner’s equity was so humble. It made the financial leverage ratios very high. Liabilities by owner equity were 853.93 units in 2011 higher than nearly by 3.4 times in comparison with the year 2009. This shows that its capital firm was not safe for the creditors.

Based on the profit and loss statement of the subject in recent years, we see that the business result in the year 2011 seem not well as two previous years. Total sales of the year 2011 reached VND 688,570 million, increased 19.6% against 2010 and near double of the year 2009. However, caused by the costs of goods sold and expenses of the firm in 2011 were relatively high so the net operating profit reduced 83.43% in compared with previous year and the profit after tax only reached VND 6.2 million. This result impacted to all most of profitability ratios, they reduced remarkable and lowest in three years.

In cash flow statement of 2011, we see that both of net cash flows from operating activities and net cash flows from investing activities were negative while the net cash flows from financing activities reached VND 54.9 billion. The reason is in 2011, the subject received short-term and long-term loans were relative high, VND 682.9 billion while the loan principal amounts repaid was VND 629.9 billion. It shows that in 2011, the subject used short-term and long-term loans so much for its business activities but it did not bring high effective yet.

In short, the subject is a medium company in industry and its financial situation is average. At current, the subject has capacity to meet small and normal financial commitments.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.96
UK Pound	1	Rs.102.91
Euro	1	Rs.85.58

INFORMATION DETAILS

Report Prepared by :

NIS

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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