MIRA INFORM REPORT

Report Date :

06.06.2014

IDENTIFICATION DETAILS

Name :	DUC GIANG CHEMICALS AND DETERGENT POWDER JSC^(
Registered Office :	18, Lane 44, Duc Giang St Thuong Thanh Ward, Long Bien Dist, Hanoi
Country :	Vietnam
Financials (as on) :	2013
Date of Incorporation :	22.12.2011
Legal Form :	Private Company with Limited Liability
Line of Business :	Manufacturer of Chemicals
No. of Employees	235

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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Vietnam	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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

Company name and address

Company Details

Organization Name	:	DUC GIANG CHEMICALS AND DETERGENT POWDER JSC^(1)
Address	:	18, Lane 44, Duc Giang St Thuong Thanh Ward, Long Bien Dist, Hanoi
Country	:	Vietnam
Phone (S)	:	[+84] 4-38271620
Facsimile	:	[+84] 4-38271068
Email	:	ducgiangchemco@hn.vnn.vn
Website	:	http://www.ducgiangchem.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Chemicals

Key Facts

Registered Legal Address	:	18, Lane 44, Duc Giang St Thuong Thanh Ward, Long Bien Dist, Hanoi
Operational Address	:	18, Lane 44, Duc Giang St Thuong Thanh Ward, Long Bien Dist, Hanoi
Trading Name	:	DGC
Issuing Authority	:	Dept. of Planning & Investment - Hanoi
License Number	:	0101452588
License Status	:	License exists - Normal.
Legal Form - Category	:	Private Company with Limited Liability
Legal Form	:	Joint Stock Company
Legal Form - Abbreviation	:	JSC
Operational Status of Business	:	Normal
Date of Registration	:	22 Dec, 2011
Employees	:	235
Capital	:	US$ 16,076,372
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.

Report Details

Country	:	Vietnam
Business Entity Name	:	DUC GIANG CHEMICALS AND DETERGENT POWDER JSC
Primary Business Activity	:	Manufacturer
Primary Industry	:	Chemicals
Office Contact Details
Operating Address	:	18, Lane 44, Duc Giang St Thuong Thanh Ward, Long Bien Dist, Hanoi
Tel	:	[+84] 4-38271620
Fax	:	[+84] 4-38271068
Email	:	ducgiangchemco@hn.vnn.vn
Website Details
Website	:	http://www.ducgiangchem.vn
Status	:	Normal - operational
Country of Registration	:	Vietnam
Ownership Type	:	Registered ownership by Subject Business Entity
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	:	0101452588

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Chairman
Name	:	Mr. Dao Huu Huyen
Nationality	:	Vietnamese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Dao Huu Duy Anh	Vietnamese	Deputy Managing Director	-
2	Mr. Dao Viet Hung	Vietnamese	Deputy Managing Director	-
3	Mr. Dao Huu Huyen	Vietnamese	Managing Director	-
4	Ms. Dao Thi Mai	Vietnamese	Chief Accountant	-

Management Details - 1

Personal Unique Identifier	:	MI03709917
Name	:	Mr. Dao Huu Duy Anh
Date of Birth	:	1988

Management Details - 2

Personal Unique Identifier	:	MI03709916
Name	:	Mr. Dao Viet Hung
Date of Birth	:	1977

Management Details - 3

Personal Unique Identifier	:	MI03709881
Name	:	Mr. Dao Huu Huyen
Date of Birth	:	1956

Management Details - 4

Personal Unique Identifier	:	MI03709919
Name	:	Ms. Dao Thi Mai
Date of Birth	:	1981

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03709881
Name	:	Mr. Dao Huu Huyen
Date of Birth	:	1956
2
Personal Unique Identifier	:	MI01485073
Name	:	Mr. The Vinh Nguyen

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing the DUC GIANG CHEMICALS AND DETERGENT POWDER JSC'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 (Currency: VND - Vietnam Dong)

Authorized Capital

:

₫ 334,993,000,000

Date	Authorized Capital - History
11 Jun, 1996	66,000,000,000
Dec, 2012	220,000,000,000
2013	334,993,000,000

SHAREHOLDERS

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

Currency

:

VND - Vietnam Dong

No.	Shareholders	Country	Shares
			Number	Amount (VND)	%
1	Undisclosed Shareholders	n/a	n/a	n/a	n/a
2	VIETNAM NATIONAL CHEMICAL GROUP	Vietnam	n/a	n/a	n/a
Total			n/a	n/a	n/a

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.

Note:
Based on corporate statutory laws for limited liability companies in Vietnam, such legal entities maintain the right to only disclose the key shareholder of the company, CONDITIONAL that person (shareholder) is ALSO nominated as the registered person responsible for the actions of the company. In this case, the person listed above, holds that position, and is also a key shareholder.
The remaining shareholders, which are classified under "Undisclosed Shareholders" are not legally required to be disclosed.

PAYMENT INFORMATION

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

Na

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2011 Annual	17,162,362	14,257,321	4,217,715
2012 Annual	17,424,678	21,445,200	7,973,528
2013 Annual	14,339,848	27,549,484	7,111,360

Sales Trend – Analysis

2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
-	-	-	-	-	-	-	-

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Current Assets	163,162,000,000	207,299,000,000	353,895,000,000
Non Current Assets	133,818,000,000	239,290,000,000	227,071,000,000
Non Current Liabilities	30,000,000	30,000,000	-
Share Capital	66,000,000,000	220,000,000,000	334,993,000,000
Other long term assets
Total Assets	296,980,000,000	446,589,000,000	580,966,000,000
Total Liabilities	113,139,000,000	40,601,000,000	39,866,000,000
Current Liabilities	113,109,000,000	40,571,000,000	39,866,000,000
Long term liabilities
Shareholders Funds	183,841,000,000	405,988,000,000	541,100,000,000
ASSETS
Current assets & short term investments	163,162,000,000	207,299,000,000	353,895,000,000
Cash & cash equivalents	1,357,000,000	7,856,000,000	2,317,000,000
Cash	1,357,000,000	3,578,000,000	2,317,000,000
Cash equivalents	-	4,278,000,000	-
Accounts receivable	87,731,000,000	147,875,000,000	316,790,000,000
Accounts receivable trade	14,606,000,000	12,849,000,000	7,500,000,000
Trade prepayment	620,000,000	685,000,000	1,748,000,000
Others receivables	72,555,000,000	134,560,000,000	307,999,000,000
Provision for bad debts	(50,000,000)	(219,000,000)	(457,000,000)
Inventories	73,567,000,000	51,427,000,000	34,497,000,000
I. Other short term asset	507,000,000	141,000,000	291,000,000
VAT deductible	115,000,000	18,000,000	22,000,000
Other tax receivables	-	8,000,000	-
II. Other short term asset	392,000,000	115,000,000	269,000,000
Long term assets	133,818,000,000	239,290,000,000	227,071,000,000
Fixed assets	21,511,000,000	18,313,000,000	18,129,000,000
Tangible fixed assets	21,243,000,000	18,304,000,000	18,129,000,000
I. Cost	72,148,000,000	73,515,000,000	75,961,000,000
I. Accumulated depreciation	50,905,000,000	55,211,000,000	57,832,000,000
Intangible fixed assets	11,000,000	9,000,000	-
II. Cost	13,000,000	13,000,000	-
II. Accumulated depreciation	2,000,000	4,000,000	-
Construction in progress	257,000,000	-	-
Long term investments	111,151,000,000	220,533,000,000	208,279,000,000
Invest to subsidiary company	92,897,000,000	154,209,000,000	154,209,000,000
Invest to joint venture company	-	48,070,000,000	54,070,000,000
Other long term investments	18,254,000,000	18,254,000,000	-
I. Other long term assets	1,156,000,000	444,000,000	663,000,000
Long term prepayments	1,156,000,000	412,000,000	631,000,000
II. Other long term assets	-	32,000,000	32,000,000
Total Assets	296,980,000,000	446,589,000,000	580,966,000,000
LIABILITIES & OWNER'S EQUITY
Liabilities	113,139,000,000	40,601,000,000	39,866,000,000
Current Liabilities	113,109,000,000	40,571,000,000	39,866,000,000
Accounts payables-trade	53,606,000,000	19,839,000,000	12,012,000,000
Advances from customers	468,000,000	1,920,000,000	3,190,000,000
Taxes and payable to state budget	6,249,000,000	5,186,000,000	5,086,000,000
Payable to employees	6,745,000,000	7,728,000,000	8,654,000,000
Accrued expenses payable	13,000,000	298,000,000	(4,000,000)
Other payables	46,028,000,000	5,600,000,000	706,000,000
I. Bonus and welfare funds	-	-	10,222,000,000
Long term liabilities	30,000,000	30,000,000	-
Payable income tax delay	-	30,000,000	-
Provision funds for unemployment	30,000,000	-	-
I. Owner's equity	183,841,000,000	405,988,000,000	541,100,000,000
II. Owner's equity	180,445,000,000	400,948,000,000	541,100,000,000
Business capital	66,000,000,000	220,000,000,000	334,993,000,000
Share capital's surplus	-	1,072,000,000	1,072,000,000
Shares	-	(1,000,000)	(2,000,000)
Foreign exchange differences	(80,000,000)	-	-
Business development funds	20,069,000,000	25,858,000,000	35,512,000,000
Financial reserved funds	6,600,000,000	10,919,000,000	19,098,000,000
Retained earnings	87,856,000,000	143,100,000,000	150,427,000,000
Budget sources	3,396,000,000	5,040,000,000	-
II. Bonus and welfare funds	3,396,000,000	5,040,000,000	-
Total Resources	296,980,000,000	446,589,000,000	580,966,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Turnover	357,492,000,000	362,863,000,000	302,400,000,000
Profit (Loss) Before Tax	91,286,000,000	169,613,000,000	155,067,000,000
Profit After Tax attributable to Shareholders	87,855,000,000	166,046,000,000	149,965,000,000
Gross sales	357,492,000,000	362,863,000,000	302,400,000,000
Less deductions	3,084,000,000	753,000,000	164,000,000
Net income	354,408,000,000	362,110,000,000	302,236,000,000
Cost of goods sold	307,073,000,000	309,089,000,000	256,883,000,000
Gross margin	47,335,000,000	53,021,000,000	45,353,000,000
Income from financial activities	73,785,000,000	150,281,000,000	137,136,000,000
Expenses from financial activities	5,131,000,000	579,000,000	7,571,000,000
In which: Interest expenses	-	-	55,000,000
Selling expenses	17,789,000,000	20,454,000,000	22,747,000,000
General & administration expenses	8,326,000,000	11,293,000,000	11,074,000,000
Net income from operating activities	89,874,000,000	170,976,000,000	141,097,000,000
Extraordinary income	1,739,000,000	14,000,000	15,285,000,000
Extraordinary expenses	327,000,000	1,377,000,000	1,315,000,000
Extraordinary gains	1,412,000,000	(1,363,000,000)	13,970,000,000
Net profit before tax	91,286,000,000	169,613,000,000	155,067,000,000
Income tax	3,431,000,000	3,567,000,000	5,102,000,000
Net profit after tax	87,855,000,000	166,046,000,000	149,965,000,000

Financial Ratios

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Growth %
Year-on-Year Growth	-	1.50	(16.66)
Profitability
Profit Margin (%)	24.58	45.76	49.59
Return on Equity (%)	47.79	40.90	27.71
Return on Assets (%)	29.58	37.18	25.81
Leverage
Total Debt Equity (Times)	0.62	0.10	0.07
Current Debt Equity (Times)	0.62	0.10	0.07
Long Term Debt to Equity	0.00	0.00	-
Total Asset To Total Equity	1.62	1.10	1.07
Asset Management
Total Assets Turnover (Times)	1.20	0.81	0.52
Fixed Assets Turnover (Times)	2.67	1.52	1.33
Liquidity
Current Ratio	1.44	5.11	8.88

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

Today's Exchange rate

:

1.00 VND Vietnam Dong

=

0.000047 USD United States Dollars

ADDITIONAL INFORMATION

Primary Products

Products / Materials / Services Description	Activity
Chemical products	Manufacturing, Exporting
Detergent powder	Manufacturing, Exporting
Phosphorus	Manufacturing, Exporting

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

Year	Imports	Exports	Total
2011	n/a	10,297,417	10,297,417
2012	n/a	10,454,807	10,454,807
2013	n/a	8,603,909	8,603,909

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Chemical preparations, nspf	2899	Manufacturing, Exporting
Chemicals and Allied Products	2800	Manufacturing, Exporting
Soap and other detergents, except specialty cleaners	2841	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Chemical products and preparations of the chemical or allied industries	3823905050	Manufacturing, Exporting
Miscellaneous chemical products	3800	Manufacturing, Exporting
Phosphorus	2804700000	Manufacturing, Exporting
Soap, organic surf-act prep for soap use, bars etc	3401	Manufacturing, Exporting
Synthetic detergents	3402901000	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of DUC GIANG CHEMICALS AND DETERGENT POWDER JSC is Manufacturing - Finished products.

Key products include :

Chemical products

Phosphorus

Detergent powder

An integral part of the core business includes:

Distribution

Supplementary Business

In addition to the core business, DUC GIANG CHEMICALS AND DETERGENT POWDER JSC 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	40%
International Sales (Export)	60%

Annual Purchases Analysis	Percentage
Local Purchases	70%
Imports	30%

BANK DETAILS

Bank Name	:	HSBC BANK (VIETNAM) LTD
Global Identifier	:	32403760
Branch	:	District 1,Ho Chi Minh
Branch Address	:	HSBC BANK (VIETNAM) LTD - HANOI
SWIFT Code	:	HSBCVNVX

LOCAL BRANCHES & MANAGEMENT

Branch	:	DUC GIANG CHEMICALS AND DETERGENT POWDER JSC - THUAN AN DIST, BINH DUONG
Branch Address	:	Dong An Industrial Zone Rd 5, Thuan An Dist, Binh Duong

INTERNATIONAL TRADE - Activity & Markets

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

OFFICE & FACILITIES

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

Name	:	DUC GIANG CHEMICALS AND DETERGENT POWDER JSC - LONG BIEN DIST, HANOI
Primary Use	:	Office & Administration facilities
Address	:	18, Lane 44, Duc Giang St Thuong Thanh Ward, Long Bien Dist, Hanoi
Country	:	Vietnam
Status	:	Operational

COMPANY HISTORY

Date	Details
2004 - Mar	Changed its Legal form from Government Enterprise to Joint Stock Company.

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
11 Jun, 1996	110973
5 Mar, 2004	0103003850

NOTES & COMMENTS

Na

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.30
UK Pound	1	Rs.99.34
Euro	1	Rs.80.70

INFORMATION DETAILS

Analysis Done by :	DIV
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%)

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.