Project Financial Performance Indicators:

8.3%. These collateral assets are all legally owned by the cooperative and the owner and Mr. Long and can be traded, without any dispute. The collateral assets meet the legal conditions for customers to borrow capital from the bank.

General conclusion : According to the assessment of bank staff, the legal documents, financial documents and loan guarantee documents of the investor, Hai Long Cooperative, are qualified to borrow capital at Thai Nguyen Branch.

B/ INVESTMENT PROJECT APPRAISAL

1. Legal basis of the project

The Tan Kim original gold mine exploitation project has all the necessary documents such as: Opinion of the Government Office agreeing to assign the People's Committee of Thai Nguyen province to manage and license the Tan Kim original gold mine (area of 19.69ha), Than Sa commune, Vo Nhai district, Thai Nguyen province; Mineral exploitation license No. 2145/GP-UBND dated September 17, 2010 issued by the Chairman of Thai Nguyen Provincial People's Committee allowing Hai Long Cooperative to exploit the Tan Kim original gold mine, Than Sa commune, Vo Nhai district; Environmental impact assessment report of the Tan Kim original gold mine exploitation project, Than Sa commune, Vo Nhai district,....

Thus, the Tan Kim gold mining project is implemented in accordance with the policies of the province and the State. In addition, the project's legal documents are complete, in accordance with regulations, and eligible for loans.

2. Market assessment

Main raw materials for the project:

- Gasoline: purchased from nearby dealers, then stored in warehouses in the project area and supplied to specialized equipment.

- Electricity: In the mining area there is no national grid electricity, so the machines for the selection system are supplied by grid electricity or generators.

- Water supply: Water will be pumped from streams or from ravines near the mine area for

serving production and life.

The input factors of the project are materials that are not rare in the market, and the prices are relatively stable. Therefore, it is completely capable of meeting the needs of the project.

However, due to the lack of national grid electricity at the mines, it is essential that the power supply equipment, such as generators, ensure capacity, durability, and operating costs to ensure the project operates continuously and effectively. In the safest case, the cooperative should work with the provincial electricity company to be supplied with electricity to ensure the project's operations.

The project's product is gold concentrate: Gold content in raw ore: 0.43g Au/ton; Concentrate content after selection: 90.8

The output of the project is valuable gold concentrate, supplied to the domestic market, gold production, processing and trading facilities.

The project's output products are determined to be sold to the Gold, Silver, and Gemstone Company.

Vietinbank, to produce jewelry, gold bars.

The project's output is relatively certain and safe. Gold is a rare mineral and has absolutely no substitute products, so its position in the market will never lose its value and always meet consumer tastes.

The market aspect of the project is very good, the risk level is low.

3. Technical assessment

 Evaluation of investment location

Tan Kim gold mine is located in Than Sa commune, Vo Nhai district, Thai Nguyen province. The mine has an area of 19.69 hectares.

The mine area is large. The mine is far from residential areas, so mining does not affect the safety of the people much, ensuring safety during mining. In addition, in 5 years, from 2004 to 2009, Than Sa mobilized nearly 30 billion VND to invest in building inter-village and inter-commune roads, making transportation within the mine area easy and convenient.

In addition, the risk of the project location is that the mine terrain is mountainous, with an altitude of 90-140m, so exploitation is difficult. Moreover, exploitation is mainly carried out outdoors, the furnace, well, and market furnace are located deep and then brought back to the selection house by vehicle, so when the weather is bad, construction is difficult. At the same time, explosives are used for exploitation, so the safety of the exploitation well, toxic gases produced during the explosion process, ... affect the direct exploitation workers. This is a risk for the project and the risk level is average. When the weather is bad, it is an objective risk, beyond the control of the investor as well as the bank. In addition, to minimize risks, the project needs to have measures to ensure labor safety.

 About project technology and equipment

The main equipment serving the project includes: jaw crusher, bar crusher, ... originating from Vietnam and China. The technology is synchronized and is advanced technology, so using this technology will achieve the proposed capacity level. Therefore, the risk of this content is almost non-existent, the risk level is low.

 About human resources

The mine is under the cooperative, headed by a mine manager - qualification

Engineer. Mining area works 2 shifts/day, indirect block works 1 shift/day.

The number of mine workers is divided into 2 parts:

- Management department: 05 people

- Direct production and service department: 45 people

With the above human resources, the project requirements are met. The risk level is not high. However, because the project product is gold concentrate with great economic value, it is necessary to strengthen the security and inspection department to avoid loss during the mining process.

4. Financial Assessment

Tan Kim gold mine has a total investment for the project: 48,856 million VND. In which: Fixed investment capital: 42,856 million VND and loan capital: 6,000 million VND

In addition, according to the minutes of the second extraordinary meeting of members in 2010, the cooperative will mobilize capital contributions from members at a specific rate to implement the project according to the project's disbursement schedule. However, the risk is that the unit has not provided documents proving the capital contribution capacity of each member to the bank.

The project is calculated with a 10-year mining life cycle in accordance with the permitted operating time of the mine and the depreciation time of machinery, equipment and factories. The mobilized capacity in the first year is 35%, the second year is 55%, the third year is 75% and starting from the fourth year, the maximum capacity is 100%. The project has a discount rate of 11.5%.

Table 2.19: Project financial performance indicators:

Content	Discount rate (i)	Project efficiency
1	Project efficiency from total investment perspective
	NPV	i = 11.5%	4,242 million VND
	IRR		13.15%
2	Project efficiency from the investor's perspective
	NPV	i=11.5%	41,577 million VND
	IRR		45%

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(Source: Administrative Department - Thai Nguyen branch)

 Conclusion of Joint Stock Commercial Bank for Industry and Trade - Thai Nguyen branch:

Hai Long Cooperative is eligible for bank loans:

- Full legal documents of the project

- The financial situation of the cooperative is healthy.

- The project fully meets the Bank's credit conditions.

Based on the appraisal of the appraisal officers, the Joint Stock Commercial Bank for Industry and Trade - Thai Nguyen branch agrees to lend and collect debt as follows:

- Loan amount: 6,000 million VND.

- Loan method: loan according to investment project

- Loan interest rate: 2010 is 11.5%/year. Interest rates in the following years will be adjusted according to the medium and long-term loan interest rates of the Vietnam Joint Stock Commercial Bank for Industry and Trade stipulated in each period and the agreement between Hai Long Cooperative and the Vietnam Joint Stock Commercial Bank for Industry and Trade - Thai Nguyen branch.

- Loan term: 10 years. Principal and interest paid every 6 months.

Project 3: "Investment in purchasing means of production and business" of Viet Hung Construction, Trade and Service Company Limited, appraised by the Joint Stock Commercial Bank for Industry and Trade - Tay Ha Noi branch.

 Project overview

- Investor: Viet Hung Construction, Trade & Service Company Limited

- Name of investment project: Investment in purchasing means of transport for production and business

- Loan method: loan according to investment project

- Total capital requirement of the project: 8,904,600,000 VND

- Participating equity and other capital: 4,604,600,000 VND

- Loan from Joint Stock Commercial Bank for Industry and Trade - Tay Ha Noi branch: 4,300,000,000 VND

Based on the records and documents provided by the customer, the appraisal staff of the Joint Stock Commercial Bank for Industry and Trade - Tay Ha Noi Branch conducted the appraisal as follows:

A/ INVESTOR ASSESSMENT

1. Investor introduction

- Investor: Viet Hung Construction, Trade & Service Company Limited

- Address: No. 03, Lane 96 Dong Ngac, Tu Liem, Hanoi

- Bank account: 101010000741468 at Cau Dien Industrial and Commercial Bank branch

- Main business line: Construction materials trading

- Registered business capital: 2,000,000,000 VND

- Director: Ms. Nguyen Thi Diem Huong

- Organizational model: LLC

- Business registration certificate: No. 0102037212 issued on January 14, 2009 by the Hanoi Department of Planning and Investment.

- History of formation and development: The company was established on the basis of taking over the business establishment of Ms. Chu Thi Nham in Thuy Phuong, Tu Liem, Hanoi.

List of capital contributors:

Member Name	Capital contribution value
1	Nguyen Thi Dieu Huong	1,000,000,000 VND
2	Nguyen Thanh Hung	1,000,000,000 VND
	Total	2.00.00.0 VND

2. Appraisal of customer loan applications

2.1. Legal documents

- Business registration certificate No. 0102037212 issued by Business Registration Office No. 2 - Hanoi Department of Planning and Investment on January 14, 2009.

- Tax registration certificate No. 0103223992 dated February 2, 2009.

- Charter of organization and operation of Viet Hung Construction, Trade & Service Company Limited

2.2. Business and financial records

- Loan application dated August 28, 2009

- Financial report for the second quarter of 2009

- Investment project in means of serving production and business

2.3. Collateral documents

- Certificate of house ownership and land ownership No. 10113111125 issued by

Hanoi City People's Committee issued on December 23, 2012.

3. Assess the company's production and business situation

Table 2.20: Indicators on production and business situation

Unit: VND

Target	Quarter II/2009
1	Total revenue	7,176,495,183
2	Net revenue	7,176,495,183
3	Cost of goods sold	5,678,451,236
4	Interest expense	20,583,300
5	Total profit before tax	830.667.666
6	Corporate income tax	207,666,917
7	Profit after tax	623,000,750

Source: Business results report for the second quarter of 2009 – Hai Long Cooperative

Thus, Viet Hung Construction, Trade and Service Company Limited is a newly established enterprise, but due to its understanding of the market, favorable business location and inheritance of customer relationships of Ms. Chu Thi Nham, the company's production and business activities are stable and growing. Specifically:

- The company's net revenue from sales and service provision in the first 6 months of the year reached 7,176,495,183 VND.

- Profit after tax (ROA) in the second quarter of 2009 reached 23%, return on equity (ROE) reached 49%. The company's use of assets and equity to generate profits was highly effective.

4. Assess the company's financial situation:

Table 2.21: Indicators on assets and capital situation

Unit: VND

Target	Quarter II/2009
A	Current assets	4,358,470,697
1	Cash and cash equivalents	711.251.242
2	Short-term financial investments	0
3	Short-term receivables	1,655,000,000
4	Other receivables	0
5	Inventory	1,885,120,000
6	Other current assets	107,099,455
B	Long-term assets	1,099,431,818
1	Long-term receivables	0
2	Fixed assets	1,099,431,818
3	Investment real estate	0
4	Long-term investments	0
	TOTAL ASSETS	5,457,902,515
A	Liabilities	2,934,901,765
1	Short-term debt	2,934,901,765
2	Long-term debt	0
B	Equity	5,523,000,750
I	Fund resources	5,523,000,750
1	Business capital	1,900,000,000
2	Development investment fund, financial reserve	0
3	Retained earnings	623,000,750
II	Funding sources	0
	TOTAL CAPITAL	5,457,902,515

Source: Balance sheet of the second quarter of 2009 - Hai Long Cooperative

Table 2.22: FINANCIAL RATIOS

Target	Unit	Quarter II/2009
I	Ability to pay
1	Quick ratio	Time	1.49
2	Current ratio	Time	0.81
II	Operating capacity
1	Inventory Turnover	Ring	6.02
2	Average collection period	Day	42.09
III	Debt ratio
1	Liabilities/Total Assets	Time	0.54
2	Liabilities/Equity	Time	1.63
IV	Income target
1	Total income before tax/Revenue	%	11.57
2	Total income before taxes/Total assets	%	30.44
3	Total income before tax/Equity	%	65.85
V	Rate of return
1	Return on Equity (ROE)	%	49.39
2	Return on Assets (ROA)	%	22.83

- Regarding receivables: as of June 30, 2009, short-term receivables were VND 1,655,000,000, of which 100% were receivables from customers, with no overdue or bad debts. The average collection period was 42 days.

- Regarding inventory: as of June 30, 2009, inventory was 1,885,120,000 VND. The company reserves goods due to the need to supply some customers with sudden needs. The company's main products are yellow sand, black sand, 1x2 stone, 2x4 stone. The company does not have slow-moving goods or poor quality goods.

- Regarding payables: as of June 30, 2009, the company's payables were VND 2,934,901,765, of which short-term loans at the Joint Stock Commercial Bank for Industry and Trade, Ha Tay branch were VND 2,000,000,000, accounting for 68% of payables.

The above indicators show that the company is financially autonomous, proactive in its business capital and has the ability to pay due debts.

B/ INVESTMENT PROJECT APPRAISAL

1. Project introduction

- Project name: Investment project for means of transport serving production and business

- Project implementation location: domestic

- Necessity of project implementation:

+ Viet Hung Construction, Trade and Service Company Limited was newly established in January 2009, so investment to increase fixed assets is very necessary. Moreover, the company operates in the construction sector, an industry that requires high mechanization and heavy-duty equipment. Currently, the company's machinery capacity is limited in both quantity and type.

+ To create prestige, improve business capacity and ensure winning large material supply contracts, the Company must invest in modern machinery and equipment to demonstrate the Company's operational capacity. The scale of fixed assets, especially means of transport directly serving business, is one of the important conditions for the Company to be able to sign high-value contracts and increase business efficiency when not having to hire external means.

- Project scale:

Table 2.23: Investment project scale

Unit: VND

Investment assets	Quantity	Original price	Registration fee	Price
1	15 ton Hyundai dump truck	01	570,000,000	11,400,000	581,400,000
2	Hyundai 23 ton dump truck	04	5,130,000,000	102,600,000	5,232,600,000
3	15 ton Samsung dump truck	01	1,580,000,000	31,600,000	1,611,600,000
4	Komasu Excavator	01	1,450,000,000	29,000,000	1,479,000,000
	Total investment				8,904,600,000