MIRA INFORM REPORT

Report Date :

16.09.2013

IDENTIFICATION DETAILS

Name :	PHONG SON TIEM COMPANY LIMITED
Registered Office :	No. 126/21 Kim Nguu Str.,, Hai Ba Trung District, Ha Noi City
Country :	Vietnam
Financials (as on) :	31.12.2008
Year of Establishments:	2000
Com. Reg. No.:	0101013446
Legal Form :	Limited Liability Company
Line of Business :	· Trading of health equipment’s · Restaurants, hotel, · Trading of cosmetics · Trading construction materials
No. of Employees :	05 (data from Tax Department )

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

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 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	PHONG SON TIEM COMPANY LIMITED
Vietnamese Name	CONG TY TNHH PHONG SON TIEM
Short name	FOSTI CO., LTD
Type of Business	Limited liability company
Year Established	2000
Business Registration No.	0101013446
Date of Registration	13 May 2010 (the 10^th adjustment)
Place of Registration	Hanoi Planning and Investment Department
Chartered capital	VND 920,000,000
Status	Unlisted
Tax code	0101013446
Total Employees	5 (data from Tax Department )
Size	Small

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 0102000494 Changed to: 0101013446	N/A

Company ADDRESSES
Head Office
Address	No. 126/21 Kim Nguu Str.,, Hai Ba Trung District, Ha Noi City, Vietnam
Telephone	(84-4) 3971 1143
Fax	(84-4) 3971 1143
Note: The correct telephone number is as above.
Branch in Ha Noi
Address	Nam Hamlet Phung Thuong Commune, Phuc Tho District, Ha Noi City, Vietnam

DIRECTORS
NAME	Mr. VU DAO
Position	Chairman cum Director
Date of Birth	03 Jan 1957
ID Number/Passport	010271060
ID Issue Date	27 Nov 2003
ID Issue Place	Hanoi Police Department
Resident	Lot G, Group 59 Thanh Nhan Ward, Hai Ba Trung District, Ha Noi City, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject registers operation in many fields, including of:
Trading of health equipments
Restaurants, hotel,
Trading of cosmetics
Trading construction materials

IMPORT & EXPORT ACTIVITIES

IMPORT:

Note: N/A

EXPORT:

Note: N/A

BANKERS

N/A

SHAREHOLDERS
1. NAME	Mr. VU DAO
Position	Chairman cum Director
Date of Birth	03 Jan 1957
ID Number/Passport	010271060
Issued on	27 Nov 2003
Issued Place	Hanoi Police Department
Resident	Lot G, Group 59 Thanh Nhan Ward, Hai Ba Trung District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 320,000,000
Percentage	34.78%
2. NAME	Mr. HOANG NGOC SON
Date of Birth	10 May 1972
ID Number/Passport	012264772
Issued on	16 Feb 2006
Issued Place	Police Station of Hanoi City
Resident	No. 510- C7B Quynh Mai ward, Hai Ba Trung District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 300,000,000
Percentage	32.61%
3. NAME	Mrs. KHUAT THI TOAN
ID Number/Passport	111534272
Resident	Room 403, D6 Ministry of Transporation Collective, Minh Khai Ward, Hai Ba Trung District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 300,000,000
Percentage	32.61%

FINANCIAL HIGHLIGHT
We cannot find and contact with the subject, Hence the latest financial data of the subject is not available in our source at this current.
BALANCE SHEET
Unit: Million VND
Balance sheet date	31/12/2008
Number of weeks	52
ASSETS
A. Current Asset	963
Receivables	503
Inventory	57
Cash and other current assets	403
B. Long term Asset	232
1. Long term account receivable	0
2. Fixed assets	232
Tangible fixed assets	232
+ Original cost	293
+ Accumulated depreciation value	-61
Financial leasehold assets
Intangible fixed assets
Construction in progress and other long term asset
TOTAL ASSETS	1,195
LIABILITIES
Payable loans	598
Owner’s Equity	597
TOTAL LIABILITY AND EQUITY	1,195
PROFIT & LOSS STATEMENT
1. Total Sales	6,953
2. Deduction item	0
3. Net sale	6,953
4. Costs of goods sold	7,046
5. Gross profit	-93
6. Financial income	169
7. Financial expenses	-
8. Selling expenses and Administrative overheads	-
9. Net operating profit	76
10. Other income	-
11. Other expenses	-
12. Other profit /(loss)	-
13. Total accounting profit before tax	-
14. Current corporate income tax	-
15. Deferred corporate income tax	-
16. Interest from subsidiaries/related companies	-
17. Profit after tax	-

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Normal
Liquidity	N/A
Payment status	N/A
Financial Situation	N/A
Development trend	N/A
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Other
Sale Methods	Retailer
Public opinion	Limited

INTERPRETATION ON THE SCORES

According to our checks, SC was set up in 2000 following the business registration No. 0102000494. But current, the subject is operating under business license No. 0101013446 with chartered capital of VND 920 million. This was contributed by three shareholders: Mr. VU DAO, Mr. HOANG NGOC SON and Mrs. KHUAT THI TOAN. In which, Mr. VU DAO is the Director of the subject.

Head office of the subject is located at No. 126/21 Kim Nguu Str., Hai Ba Trung District, Ha Noi City, Vietnam. The subject also has a branch at Nam Hamlet Phung Thuong Commune, Phuc Tho District, Ha Noi City, Vietnam. However, when we called to the registered telephone number of the subject we did not meet anyone. Following the address of head office we came here but we cannot find any companies which have name like as the subject.

With the information as above, caution is needed with any medium and big financial commitments with the subject.

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.63.79
UK Pound	1	Rs.100.70
Euro	1	Rs.84.67

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.