MIRA INFORM REPORT

Report Date :

17.01.2014

IDENTIFICATION DETAILS

Name :	DAVICHEM CO LTD
Registered Office :	Tinh Lo 825 Binh Tien 2 Hamlet Duc Hoa Ha Commune, Duc Hoa, Long An
Country :	Vietnam
Financials (as on) :	December 2012
Date of Incorporation :	10.10.2008
Legal Form :	Private Company with Limited Liability
Line of Business :	Manufacturer of Chemical additives
No. of Employees :	10

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 30, 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

Company Details
Organization Name	:	DAVICHEM CO LTD
Address	:	Tinh Lo 825 Binh Tien 2 Hamlet Duc Hoa Ha Commune, Duc Hoa, Long An
Country	:	Vietnam
Phone (S)	:	[+84] 72-3779304
Facsimile	:	[+84] 72-3779634
Primary Business Activity	:	Manufacturer
Key Industry	:	Chemicals

DIRECTORS/MANAGEMENT

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Ms. Nguyen Thi Thu Thuy	Vietnamese	Chief Accountant	-

Management Details - 1

Personal Unique Identifier	:	MI03603776
Name	:	Ms. Nguyen Thi Thu Thuy
Date of Birth	:	1975

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03603775
Name	:	Mr. Dao Van Manh
Date of Birth	:	1977
Nationality	:	Vietnamese

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing the DAVICHEM 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

LITIGATION

No Record Found

PERFORMANCE DEFAULTS

No Record Found

ADVERSE LOCAL MEDIA COVERAGE / ADVERSE FILING HISTORY

No Record Found

SHARE & SHARE CAPITAL INFORMATION

Capital

:

US$ 47,420

CAPITAL (Currency: VND - Vietnam Dong)

Authorized Capital

:

1,000,000,000

SHAREHOLDERS

Total number of shareholders	:	2
Total number of shares	:	n/a

No.	Shareholders	Country	Shares
			Number	Amount (VND)	%
1	Mr. Dao Van Manh	Vietnam	n/a	n/a	70.00
2	Ms. Nguyen Thi Tam	Vietnam	n/a	n/a	30.00
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	100%
International Sales (Export)	0%

Annual Purchases Analysis	Percentage
Local Purchases	70%
Imports	30%

PAYMENT TERMS

Selling

Type	Terms
Local	Cash on delivery (COD) Credit - Secured with Post-dated checks 30~60 days

Purchasing

Type	Terms
Local	Cash on delivery (COD) Credit - Secured with Post-dated checks 30~60 days
Import	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Executed at time of transaction

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing
China	Medium	Importing

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2012 Annual (*)	4,753,643	1,647,950	64,299

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	2012 Annual
Current Assets	33,113,000,000
Non Current Assets	1,205,000,000
Share Capital	1,000,000,000
Other long term assets
Total Assets	34,318,000,000
Total Liabilities	24,869,000,000
Current Liabilities	24,869,000,000
Long term liabilities
Shareholders Funds	9,449,000,000
Current assets & short term investments	33,113,000,000
Cash & cash equivalents	321,000,000
Cash	321,000,000
Accounts receivable	28,157,000,000
Accounts receivable trade	27,641,000,000
Trade prepayment	476,000,000
Others receivables	40,000,000
Inventories	3,907,000,000
Inventories I	3,907,000,000
Other short term asset	728,000,000
VAT deductible	668,000,000
Other tax receivables	60,000,000
Long term assets	1,205,000,000
Fixed assets	1,205,000,000
Tangible fixed assets	1,205,000,000
Cost	1,969,000,000
Accumulated depreciation	764,000,000
Total assets	34,318,000,000
Liabilities	24,869,000,000
Current liabilities	24,869,000,000
Accounts payables-trade	13,616,000,000
Inter company payable	11,250,000,000
Other payables	3,000,000
Owner's equity	9,449,000,000
Owner's equity I	9,449,000,000
Business capital	1,000,000,000
Retained earnings	8,449,000,000
Total resources	34,318,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2012 Annual
Turnover	98,993,000,000
Profit (Loss) Before Tax	1,442,000,000
Profit After Tax attributable to Shareholders	1,339,000,000
Gross sales	98,993,000,000
Less deductions	264,000,000
Net income	98,729,000,000
Cost of goods sold	96,290,000,000
Gross margin	2,439,000,000
Income from financial activities	12,000,000
Expenses from financial activities	100,000,000
Selling expenses	454,000,000
General & administration expenses	455,000,000
Net income from operating activities	1,442,000,000
Net profit before tax	1,442,000,000
Income tax	103,000,000
Net profit after tax	1,339,000,000

Financial Ratios

Financial Highlights	2012 Annual
Profitability
Profit Margin (%)	1.35
Return on Equity (%)	14.17
Return on Assets (%)	3.90
Leverage
Total Debt Equity (Times)	2.63
Current Debt Equity (Times)	2.63
Total Asset To Total Equity	3.63
Asset Management
Total Assets Turnover (Times)	2.88
Fixed Assets Turnover (Times)	82.15
Liquidity
Current Ratio	1.33

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

Key Facts
Registered Legal Address		:	Tinh Lo 825 Binh Tien 2 Hamlet Duc Hoa Ha Commune, Duc Hoa, Long An
Operational Address		:	Tinh Lo 825 Binh Tien 2 Hamlet Duc Hoa Ha Commune, Duc Hoa, Long An
Issuing Authority		:	Dept. of Planning & Investment - Long An
License Number		:	1100862304
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		:	10 Oct, 2008
Employees		:	10
	Report Details
	Country			:	Vietnam
	Business Entity Name			:	DAVICHEM CO LTD
	Primary Business Activity			:	Manufacturer
	Primary Industry			:	Chemicals
	Office Contact Details
	Operating Address			:	Tinh Lo 825 Binh Tien 2 Hamlet Duc Hoa Ha Commune, Duc Hoa, Long An
	Tel			:	[+84] 72-3779304
	Fax			:	[+84] 72-3779634
	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			:	1100862304

Primary Products

Products / Materials / Services Description	Activity
Chemical additives	Manufacturing

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Chemical preparations, nspf	2899	Manufacturing

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Miscellaneous chemical products	3800	Manufacturing

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of DAVICHEM CO LTD is Manufacturing - Finished products.

Key product include :

· Chemical additives

An integral part of the core business includes:

· Distribution

Supplementary Business

In addition to the core business, DAVICHEM CO LTD also is engaged in the following areas of business:

1. Importing

· Importing - Raw materials

BANK DETAILS

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, LONG AN
SWIFT Code	:	BFTVVNVX

REAL ESTATE OWNERSHIP

The following property / ies are owned by DAVICHEM CO LTD :

Property Name	:	DAVICHEM CO LTD - DUC HOA, LONG AN
Type of Property	:	Office
Address	:	Tinh Lo 825 Binh Tien 2 Hamlet Duc Hoa Ha Commune, Duc Hoa, Long An
Property Size	:	200 Square meters

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.53
UK Pound	1	Rs.100.73
Euro	1	Rs.83.84

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.