MIRA INFORM REPORT

Report Date :

13.08.2014

IDENTIFICATION DETAILS

Name :	KCC (VIETNAM) CO LTD^(1)
Registered Office :	Long Thanh Industrial Zone Rd 1 Tan An Ward, Long Thanh, Dong Nai
Country :	Vietnam
Financials (as on) :	2012
Date of Incorporation :	04.06.2007
Legal Form :	Private Company With Limited Liability
Line of Business :	Manufacturing and Exporting of Paints and Allied Products.
No. of Employees :	60

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Vietnam	B1	A2

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 20% in 2013, while industry's share increased from 36% to more than 42% in the same period. State-owned enterprises account for about 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 2013 growing at 5%, the slowest rate of growth since 1999. In 2013, however, exports increased by more than 12%, 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 relatively stable in 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 has been made. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses.

Source : CIA

REGISTERED NAME & COMPANY SUMMARY

COMPANY DETAILS

Organization Name	:	KCC (VIETNAM) CO LTD^(1)
Address	:	Long Thanh Industrial Zone Rd 1 Tan An Ward, Long Thanh, Dong Nai
Country	:	Vietnam
Phone (S)	:	[+84] 61-3514681
Facsimile	:	[+84] 61-3514684
Primary Business Activity	:	Manufacturer
Key Industry	:	Chemicals

Key Facts

Registered Legal Address	:	Long Thanh Industrial Zone Rd 1 Tan An Ward, Long Thanh, Dong Nai
Operational Address	:	Long Thanh Industrial Zone Rd 1 Tan An Ward, Long Thanh, Dong Nai
Issuing Authority	:	Dept. of Planning & Investment - Dong Nai
License Number	:	472043000153
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	:	4 Jun, 2007
Employees	:	60
Capital	:	US$ 30,000,000
Note	:	^(1) Legal status of the English corporate name The English name of the Subject Business Entity (SBE) is a randomly selected translation / transliteration made by the owners of the SBE. It is not a registered English corporate name, but simply a translation / transliteration of the local language name.

DIRECTORS/MANAGEMENT

DIRECT / INDIRECT CORPORATE PARENT DETAILS

Direct Parent	:	KCC CORP
Global Identifier	:	P0730002
Legal Form Category	:	Public Listed Company
Country	:	Korea, South (Republic of Korea)
Operational Address	:	344 Sapyeong-daero Socho-gu Seoul 137855
Primary Business Activity	:	Manufacturer

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Ms. Tran Thanh Hue	Vietnamese	Chief Accountant	-

Key Person

Legal Title	:	Managing Director
Name	:	Mr. Byung-Jong Lee
Nationality	:	Korean

Management Details - 1

Personal Unique Identifier	:	MI03752503
Name	:	Ms. Tran Thanh Hue
Date of Birth	:	1984

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03752494
Name	:	Mr. Byung-Jong Lee
Date of Birth	:	1963

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing KCC (VIETNAM) CO LTD'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

CIVIL 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: USD - US Dollar)

Authorized Capital

:

$ 30,000,000

SHAREHOLDERS

Total number of shareholders	:	1
Total number of shares	:	n/a

Currency

:

USD - US Dollar

No.	Shareholders	Country	Shares
			Number	Amount (USD)	%
1	KCC CORP	Korea, South (Republic of Korea)	n/a	n/a	100.00
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

International Trade - Statistics  (Currency: USD - US Dollar)

Year	Imports	Exports	Total
2011	n/a	1,756,567	1,756,567
2012	n/a	1,909,040	1,909,040

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

N/A

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2011 Annual	17,565,675	26,412,818	471,819
2012 Annual (*)	19,090,396	26,681,348	716,458

Sales Trend – Analysis

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

Note: (*)

Financials listed are the most recent available for this company

FINANCIAL STATEMENT – DETAILED

BALANCE SHEET

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

FINANCIAL HIGHLIGHTS	2011 Annual	2012 Annual
Current Assets(*)	255,051,000,000	276,438,000,000
Non Current Assets(*)	295,128,000,000	279,192,000,000
Share Capital(*)	479,103,000,000	479,103,000,000
Other long term assets
Total Assets(*)	550,179,000,000	555,630,000,000
Total Liabilities(*)	59,545,000,000	49,996,000,000
Current Liabilities(*)	59,545,000,000	49,996,000,000
Long term liabilities
Shareholders Funds(*)	490,634,000,000	505,634,000,000
Current assets & short term investments	255,051,000,000	276,438,000,000
Cash & cash equivalents	2,583,000,000	105,325,000,000
Cash	1,167,000,000	9,349,000,000
Cash equivalents	71,416,000,000	95,976,000,000
Accounts receivable	82,583,000,000	94,876,000,000
Accounts receivable trade	81,096,000,000	93,858,000,000
Trade prepayment	-	143,000,000
Others receivables	1,551,000,000	939,000,000
Provision for bad debts	(64,000,000)	(64,000,000)
Inventories	97,341,000,000	74,451,000,000
i. Other short term asset	2,544,000,000	1,786,000,000
Prepaid expenses	684,000,000	1,488,000,000
VAT deductible	1,337,000,000	-
ii. Other short term asset	523,000,000	298,000,000
Long term assets	295,128,000,000	279,192,000,000
Fixed assets	263,595,000,000	248,788,000,000
Tangible fixed assets	237,749,000,000	248,780,000,000
i. Cost	312,686,000,000	352,436,000,000
i. Accumulated depreciation	74,937,000,000	103,656,000,000
Intangible fixed assets	72,000,000	8,000,000
ii. Cost	246,000,000	246,000,000
ii. Accumulated depreciation	174,000,000	238,000,000
Construction in progress	25,774,000,000	-
Other long term assets	31,533,000,000	30,404,000,000
Long term prepayments	31,533,000,000	30,404,000,000
Total assets	550,179,000,000	555,630,000,000
Liabilities	59,545,000,000	49,996,000,000
Current liabilities	59,545,000,000	49,996,000,000
Accounts payables-trade	45,339,000,000	28,925,000,000
Advances from customers	207,000,000	1,000,000
Taxes and payable to state budget	3,731,000,000	6,824,000,000
Payable to employees	1,702,000,000	2,047,000,000
Accrued expenses payable	8,386,000,000	-
Other payables	180,000,000	12,199,000,000
Owner's equity	490,634,000,000	505,634,000,000
Business capital	479,103,000,000	479,103,000,000
Foreign exchange differences	(80,000,000)	-
Retained earnings	11,611,000,000	26,531,000,000
Total resources	550,179,000,000	555,630,000,000

Note: (*)

FINANCIAL HIGHLIGHTS

INCOME STATEMENT

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

FINANCIAL HIGHLIGHTS	2011 Annual	2012 Annual
Turnover(*)	365,893,000,000	397,551,000,000
Profit (Loss) Before Tax(*)	10,711,000,000	18,969,000,000
Profit After Tax attributable to Shareholders(*)	9,828,000,000	14,920,000,000
Gross sales	365,893,000,000	397,551,000,000
Net income	365,893,000,000	397,551,000,000
Cost of goods sold	314,646,000,000	340,933,000,000
Gross margin	51,247,000,000	56,619,000,000
Income from financial activities	8,131,000,000	7,499,000,000
Expenses from financial activities	8,392,000,000	669,000,000
Selling expenses	25,524,000,000	27,477,000,000
General & administration expenses	17,457,000,000	16,484,000,000
Net income from operating activities	8,006,000,000	19,488,000,000
Extraordinary income	2,753,000,000	1,412,000,000
Extraordinary expenses	48,000,000	1,932,000,000
Extraordinary gains	2,705,000,000	(520,000,000)
Net profit before tax	10,711,000,000	18,969,000,000
Income tax	882,000,000	4,048,000,000
Net profit after tax	9,828,000,000	14,920,000,000

Note: (*)

FINANCIAL HIGHLIGHTS

FINANCIAL RATIOS

FINANCIAL HIGHLIGHTS	2011 Annual	2012 Annual
Growth %
Year-on-Year Growth	-	8.65
Profitability
Profit Margin (%)	2.69	3.75
Return on Equity (%)	2.00	2.95
Return on Assets (%)	1.79	2.69
Leverage
Total Debt Equity (Times)	0.12	0.10
Current Debt Equity (Times)	0.12	0.10
Total Asset To Total Equity	1.12	1.10
Asset Management
Total Assets Turnover (Times)	0.67	0.72
Fixed Assets Turnover (Times)	1.24	1.42
Liquidity
Current Ratio	4.28	5.53

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 basic financials were obtained for reference.

FOREIGN EXCHANGE RATES

N/A

ADDITIONAL INFORMATION

Report Details

Country	:	Vietnam
Business Entity Name	:	KCC (VIETNAM) CO LTD
Primary Business Activity	:	Manufacturer
Primary Industry	:	Chemicals
Office Contact Details
Operating Address	:	Long Thanh Industrial Zone Rd 1 Tan An Ward, Long Thanh, Dong Nai
Tel	:	[+84] 61-3514681
	:	[+84] 61-3514684
	:	[+84] 61-3514678
Fax	:	[+84] 61-3514684
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	:	3600718912
Date of Issuance	:	4 Jun, 2007

Primary Products

Products / Materials / Services Description	Activity
Paint	Manufacturing, Exporting

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Paints and allied products	2851	Manufacturing, Exporting
Paints, Varnishes & Supplies	5198	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Paint & varnish from synth etc polymers aqueous	3209	Manufacturing, Exporting
Paint & varnish from synth etc polymers nonaq, etc	3208	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of KCC (VIETNAM) CO LTD is Manufacturing - Finished products.
Key product include :

Paint
An integral part of the core business includes:

Distribution

Supplementary Business

In addition to the core business, KCC (VIETNAM) CO LTD also is engaged in the following areas of business:

Exporting

Exporting - Finished products

Importing

Importing - Raw materials

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	90%
International Sales (Export)	10%

Annual Purchases Analysis	Percentage
Local Purchases	30%
Imports	70%

BANK DETAILS

Bank Name	:	HSBC BANK (VIETNAM) LTD
Global Identifier	:	32403760
Branch	:	District 1,Ho Chi Minh
Branch Address	:	HSBC BANK (VIETNAM) LTD - HO CHI MINH
SWIFT Code	:	HSBCVNVX
Bank Name	:	JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
Global Identifier	:	P1072025
Branch	:	Hanoi
Branch Address	:	JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM, THANG LONG
SWIFT Code	:	BFTVVNVX
Bank Name	:	SHINHAN VIETNAM BANK LTD
Global Identifier	:	P1885646
Branch Address	:	SHINHAN VIETNAM BANK LTD - HO CHI MINH
SWIFT Code	:	This bank does not have a SWIFT Code

INTERNATIONAL TRADE - Activity & Markets

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

OFFICE & FACILITIES

The following information relates to the Business Entity's office as listed above:

Name	:	KCC (VIETNAM) CO LTD - LONG THANH, DONG NAI
Primary Use	:	Office & Administration facilities
Address	:	Long Thanh Industrial Zone Rd 1 Tan An Ward, Long Thanh, Dong Nai
Country	:	Vietnam
Status	:	Operational

NOTES & COMMENTS

N/A

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.18
UK Pound	1	Rs.102.55
Euro	1	Rs.81.77

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	TPT

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.