MIRA INFORM REPORT

Report Date :

10.05.2014

IDENTIFICATION DETAILS

Name :	SAIGON TOBACCO CO LTD

Registered Office :	Lot C45/I, C50/I, C58/I, C63/I, C65/I, C70/I Vinh Loc Industrial Park Rd 7, Binh Chanh, Ho Chi Minh

Country :	Vietnam

Financials (as on) :	31.12.2013

Date of Incorporation :	31.03.2010

Legal Form :	Company Limited

Line of Business :	Manufacturer of Consumer Products

No. of Employees :	2,650

RATING & COMMENTS

MIRA’s Rating :

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

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately 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

REGISTERED NAME & COMPANY SUMMARY

Organization Name	:	SAIGON TOBACCO CO LTD
Address	:	Lot C45/I, C50/I, C58/I, C63/I, C65/I, C70/I Vinh Loc Industrial Park Rd 7, Binh Chanh, Ho Chi Minh
Country	:	Vietnam
Phone (S)	:	[+84] 8-37957788
Facsimile	:	[+84] 8-37656345
Email	:	saigonscf@saigontabac.com.vn
Website	:	http://www.saigontabac.com.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Consumer Products

Registered Legal Address

Lot C45/I, C50/I, C58/I, C63/I, C65/I, C70/I Vinh Loc Industrial Park Rd 7, Binh Chanh, Ho Chi Minh

Operational Address

Lot C45/I, C50/I, C58/I, C63/I, C65/I, C70/I Vinh Loc Industrial Park Rd 7, Binh Chanh, Ho Chi Minh

Trading Name

VINATABA SAIGON

Name History

Business Entity Name	Effective Date
SAIGON TOBACCO CO	20 Jul, 1996
SAIGON TOBACCO CO LTD	6 Jan, 2006

Issuing Authority

Dept. of Planning & Investment - Ho Chi Minh

License Number

0300602679

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

31 Mar, 2010

Employees

2,650

Capital

US$ 31,212,184

Country	:	Vietnam
Business Entity Name	:	SAIGON TOBACCO CO LTD
Primary Business Activity	:	Manufacturer
Primary Industry	:	Consumer Products
Office Contact Details
Operating Address	:	Lot C45/I, C50/I, C58/I, C63/I, C65/I, C70/I Vinh Loc Industrial Park Rd 7, Binh Chanh, Ho Chi Minh
Tel	:	[+84] 8-37957788
	:	[+84] 8-37657878
	:	[+84] 8-37646099
Fax	:	[+84] 8-37656345
Email	:	saigonscf@saigontabac.com.vn
Website Details
Website	:	http://www.saigontabac.com.vn
Status	:	Normal - operational
Country of Registration	:	Vietnam
Ownership Type	:	Registered ownership by Subject Business Entity

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Managing Director
Name	:	Mr. Nguyen Duy Khanh
Nationality	:	Vietnamese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Nguyen Phuong Dong	Vietnamese	Deputy Managing Director	-
2	Mr. Trinh Xuan Quang	Vietnamese	Deputy Managing Director	-
3	Mr. Vuong Quang Thai	Vietnamese	Deputy Managing Director	-
4	Mr. Chau Tuan	Vietnamese	Chief Accountant	-

Management Details - 1

Personal Unique Identifier	:	MI03692103
Name	:	Mr. Nguyen Phuong Dong
Date of Birth	:	1960

Management Details - 2

Personal Unique Identifier	:	MI03692100
Name	:	Mr. Trinh Xuan Quang
Date of Birth	:	1961

Management Details - 3

Personal Unique Identifier	:	MI03692105
Name	:	Mr. Vuong Quang Thai
Date of Birth	:	1957

Management Details - 4

Personal Unique Identifier	:	MI03692107
Name	:	Mr. Chau Tuan
Date of Birth	:	1963

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03692096
Name	:	Mr. Nguyen Duy Khanh
Date of Birth	:	1964

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing the SAIGON TOBACCO 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 (Currency: VND - Vietnam Dong)

Authorized Capital

₫ 650,387,000,000

Date	Authorized Capital - History
2011	394,866,000,000
2012	650,387,000,000

SHAREHOLDERS

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

Currency

VND - Vietnam Dong

No.	Shareholders	Country	Shares
No.	Shareholders	Country	Number	Amount (VND)	%
1	VIETNAM NATIONAL TOBACCO CORP	Vietnam	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

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	70%
International Sales (Export)	30%

Annual Purchases Analysis	Percentage
Local Purchases	70%
Imports	30%

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	353,976,716	221,895,103	2,301,392
2012 Annual	303,943,978	213,399,691	3,725,631
2013 Annual	382,158,318	266,660,850	6,403,425

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	3,676,462,000,000	3,277,547,000,000	4,506,714,000,000
Non Current Assets	945,613,000,000	1,166,429,000,000	1,116,654,000,000
Non Current Liabilities	16,801,000,000	-	37,000,000
Share Capital	394,866,000,000	650,387,000,000	650,387,000,000
Other long term assets
Total Assets	4,622,075,000,000	4,443,976,000,000	5,623,368,000,000
Total Liabilities	3,778,121,000,000	3,541,362,000,000	4,596,772,000,000
Current Liabilities	3,761,320,000,000	3,541,362,000,000	4,596,735,000,000
Long term liabilities
Shareholders Funds	843,954,000,000	902,614,000,000	1,026,596,000,000

Current assets & short term investments	3,676,462,000,000	3,277,547,000,000	4,506,714,000,000
Cash & cash equivalents	702,731,000,000	517,744,000,000	586,921,000,000
Cash	702,731,000,000	517,744,000,000	586,921,000,000
Accounts receivable	720,872,000,000	470,964,000,000	485,942,000,000
Accounts receivable trade	587,120,000,000	401,923,000,000	413,170,000,000
Trade prepayment	80,532,000,000	25,903,000,000	35,111,000,000
Others receivables	53,721,000,000	43,623,000,000	39,136,000,000
Provision for bad debts	(501,000,000)	(485,000,000)	(1,475,000,000)
I. Inventories	2,237,892,000,000	2,280,070,000,000	3,427,552,000,000
II. Inventories	2,239,324,000,000	2,285,106,000,000	3,435,006,000,000
Provision for decline in inventory	(1,432,000,000)	(5,036,000,000)	(7,454,000,000)
I. Other short term asset	14,967,000,000	8,769,000,000	6,299,000,000
Prepaid expenses	2,286,000,000	2,464,000,000	1,943,000,000
VAT deductible	606,000,000	-	-
II. Other short term asset	12,075,000,000	6,305,000,000	4,356,000,000
Long term assets	945,613,000,000	1,166,429,000,000	1,116,654,000,000
Fixed assets	831,646,000,000	1,049,937,000,000	999,264,000,000
Tangible fixed assets	320,510,000,000	543,819,000,000	875,399,000,000
I. Cost	963,280,000,000	1,207,191,000,000	1,605,975,000,000
I. Accumulated depreciation	642,770,000,000	663,372,000,000	730,576,000,000
Intangible fixed assets	76,142,000,000	74,050,000,000	71,989,000,000
II. Cost	93,402,000,000	93,372,000,000	93,372,000,000
II. Accumulated depreciation	17,260,000,000	19,322,000,000	21,383,000,000
Construction in progress	434,994,000,000	432,068,000,000	51,876,000,000
Long term investments	113,876,000,000	116,492,000,000	117,390,000,000
Invest to joint venture company	14,584,000,000	14,584,000,000	80,584,000,000
Other long term investments	108,097,000,000	108,097,000,000	42,097,000,000
Provision for long term investments	(8,805,000,000)	(6,189,000,000)	(5,291,000,000)
Other long term assets	91,000,000	-	-
Asset of income tax delay	91,000,000	-	-
Total assets	4,622,075,000,000	4,443,976,000,000	5,623,368,000,000
Liabilities	3,778,121,000,000	3,541,362,000,000	4,596,772,000,000
Current liabilities	3,761,320,000,000	3,541,362,000,000	4,596,735,000,000
Short term borrowings	1,311,052,000,000	1,189,227,000,000	1,761,044,000,000
Accounts payables-trade	504,851,000,000	371,297,000,000	782,977,000,000
Advances from customers	1,458,000,000	2,246,000,000	15,232,000,000
Taxes and payable to state budget	292,553,000,000	192,075,000,000	202,718,000,000
Payable to employees	49,179,000,000	50,658,000,000	63,073,000,000
Accrued expenses payable	305,000,000	230,000,000	28,483,000,000
Inter company payable	1,269,964,000,000	1,455,999,000,000	-
Other payables	287,520,000,000	258,147,000,000	1,738,637,000,000
Bonus and welfare funds	44,438,000,000	21,483,000,000	4,571,000,000
Long term liabilities	16,801,000,000	-	37,000,000
Payable income tax delay	-	-	37,000,000
Provision funds for unemployment	16,801,000,000	-	-
Owner's equity	843,954,000,000	902,614,000,000	1,026,596,000,000
Business capital	394,866,000,000	650,387,000,000	650,387,000,000
Other owner's equity	319,000,000	319,000,000	319,000,000
Business development funds	325,962,000,000	94,888,000,000	94,888,000,000
Financial reserved funds	74,653,000,000	79,219,000,000	79,219,000,000
Retained earnings	47,938,000,000	77,585,000,000	201,567,000,000
Capital investment sources	216,000,000	216,000,000	216,000,000
Total resources	4,622,075,000,000	4,443,976,000,000	5,623,368,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Turnover	7,373,335,000,000	6,329,530,000,000	8,058,989,000,000
Profit (Loss) Before Tax	66,687,000,000	101,941,000,000	178,694,000,000
Profit After Tax attributable to Shareholders	47,938,000,000	77,585,000,000	135,036,000,000

Gross sales	7,373,335,000,000	6,329,530,000,000	8,058,989,000,000
Less deductions	2,306,574,000,000	1,921,965,000,000	2,460,640,000,000
Net income	5,066,761,000,000	4,407,565,000,000	5,598,349,000,000
Cost of goods sold	4,416,403,000,000	3,807,271,000,000	4,716,651,000,000
Gross margin	650,358,000,000	600,294,000,000	881,698,000,000
Income from financial activities	20,331,000,000	21,574,000,000	16,926,000,000
Expenses from financial activities	181,820,000,000	139,304,000,000	103,036,000,000
In which: Interest expenses	170,851,000,000	136,527,000,000	89,587,000,000
Selling expenses	122,798,000,000	118,970,000,000	159,695,000,000
General & administration expenses	343,028,000,000	335,981,000,000	483,213,000,000
Net income from operating activities	23,043,000,000	27,613,000,000	152,680,000,000
Extraordinary income	49,114,000,000	76,137,000,000	26,832,000,000
Extraordinary expenses	5,470,000,000	1,809,000,000	818,000,000
Extraordinary gains	43,644,000,000	74,328,000,000	26,014,000,000
Net profit before tax	66,687,000,000	101,941,000,000	178,694,000,000
Income tax	18,622,000,000	24,265,000,000	43,621,000,000
Income tax delay	(127,000,000)	(91,000,000)	(37,000,000)
Net profit after tax	47,938,000,000	77,585,000,000	135,036,000,000

Financial Ratios

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Growth %
Year-on-Year Growth	-	(14.16)	27.32
Profitability
Profit Margin (%)	0.65	1.23	1.68
Return on Equity (%)	5.68	8.60	13.15
Return on Assets (%)	1.04	1.75	2.40
Leverage
Total Debt Equity (Times)	4.48	3.92	4.48
Current Debt Equity (Times)	4.46	3.92	4.48
Long Term Debt to Equity	0.02	-	0.00
Total Asset To Total Equity	5.48	4.92	5.48
Asset Management
Total Assets Turnover (Times)	1.60	1.42	1.43
Fixed Assets Turnover (Times)	7.80	5.43	7.22
Liquidity
Current Ratio	0.98	0.93	0.98

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.

FOREIGN EXCHANGE RATES

Today's Exchange rate

1.00 VND
Vietnam Dong

0.000048 USD
United States Dollars

ADDITIONAL INFORMATION

Primary Products

Products / Materials / Services Description	Activity
Tobacco	Manufacturing, Exporting

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Chewing and smoking tobacco and snuff	2131	Manufacturing, Exporting
Tobacco & Tobacco Products	5194	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Tobacco & manuf. tobacco substitutes	2400	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

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

Key product include :

Tobacco

An integral part of the core business includes:

Distribution

Supplementary Business

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

Exporting

Exporting - Finished products

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 - HO CHI MINH
SWIFT Code	:	BFTVVNVX

Bank Name	:	VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY & TRADE
Global Identifier	:	32404058
Branch	:	Hoan Kiem Dist,Hanoi
Branch Address	:	VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE - HO CHI MINH
SWIFT Code	:	ICBVVNVX

LOCAL BRANCHES & MANAGEMENT

Branch	:	SAIGON TOBACCO CO LTD - PHAN RANG, THAP CHAN
Branch Address	:	Lot 4 Thanh Hai Industrial Zone, Phan Rang, Thap Chan, Ninh Thuan

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
Middle-East	Medium	Exporting
South America	Medium	Importing
Brazil	Medium	Importing
China	Medium	Importing
India	Medium	Importing
Indonesia	Medium	Exporting
Iran	Medium	Exporting
Korea, North (DPRK)	Medium	Exporting
Laos	Medium	Exporting
Malaysia	Medium	Exporting
Saudi Arabia	Medium	Exporting
United Arab Emirates	Medium	Exporting

OFFICE & FACILITIES

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

Name	:	SAIGON TOBACCO CO LTD - BINH CHANH, HO CHI MINH
Primary Use	:	Office & Administration facilities
Address	:	Lot C45/I, C50/I, C58/I, C63/I, C65/I, C70/I Vinh Loc Industrial Park Rd 7, Binh Chanh, Ho Chi Minh
Country	:	Vietnam
Status	:	Operational

PREVIOUS CONTACT DETAILS

Company Address	:	152 Tran Phu St Ward 4, District 5, Ho Chi Minh
Date of Relocation	:	Mar, 2010

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
20 Jul, 1996	103373
6 Jan, 2006	4104000152

NOTES & COMMENTS

N/a

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.05
UK Pound	1	Rs.101.65
Euro	1	Rs.83.07

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	NNA

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.