MIRA INFORM REPORT

Report Date :

11.04.2007

IDENTIFICATION DETAILS

Name :	AGRICULTURAL FORESTRY AND FISHERY IMPORT EXPORT COMPANY
Registered Office :	No. 176, Hai Ba Trung St, Dist 1, HoChiMinh City
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	1983
Legal Form :	State Owned Company
Line of Business :	Export of agricultural, forestry and marine products, fine arts and handicrafts, processed foodstuffs and industrial products. Import of equipments and materials, spare parts and consumer goods. Manufacturing plywood, veneer, processed wood products, bamboo chopsticks, rice paper and condiments.

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 :	Usually correct
Litigation :	Exists

SUBJECT IDENTIFICATION & LEGAL FORM
English Name		AGRICULTURAL FORESTRY AND FISHERY IMPORT EXPORT COMPANY
Vietnamese name		CONG TY XUAT NHAP KHAU NONG LAM HAI SAN
Abbreviated Name		AGRIMEXCO
Type of Business		State Owned Company
Under management of		Saigon Agriculture Incorporation
Founded		1983
Establishment Decision		No. 62/QD-UB
Issued on		October 26^th, 1992
Issued by		People’s Committee of Hochiminh City
Re-organization		November 29^th, 2004
Decision		5933/QD-UB
Current Business Registration		4116000394
Issued on		January 2005
Issued by		Planning and Investment Department of Hochiminh City
Former Business Registration		102037
Issued on		November 02^nd, 1992
Issued by		Planning and Investment Department of Hochiminh City
Registered Capital		18,830,000,000 VND
Tax code		0300650425
Total Employees		1,750 employees
Qualification		Fairly Good
ADDRESSES
Head Office
Address		No. 176, Hai Ba Trung St, Dist 1, HoChiMinh City
Country		Vietnam
Tel		(84-8) 824 4518, 8293569
Fax		(84-8) 829 7071
Email		agrimexco-hcm@hcm.vnn.vn
Website		www.agrimexco.com.vn
SUBSIDIARIES
1. TAN A Enterprise of Processing Agricultural & Forest Products for Export
Address		No. 217/8, Nguyen Van Luong St, Ward 11, Dist 6, Hochiminh City
Country		Vietnam
Tel		(84-8) 8754646
2. TAN PHU Enterprise of Processing Agricultural & Forest Products for Export
Address		240/33-35, Nguyen Van Luong St, Ward 11, Dist 6, Hochiminh City
Country		Vietnam
Tel		(84-8) 8751077
3. TAN PHONG Enterprise of Processing Agricultural & Forest Products and Shoe Production for Export
Address		No. 72, To Ky St. (Provincial Road 15), Tan Chanh Hiep Ward, Dist 12, Hochiminh City
Country		Vietnam
Tel		(84-8) 8837306
4. Station of General Production & Supply for Export
Address			No. 4A, Ly Van Phuc St, Dist 1, Hochiminh City
Country		Vietnam
Tel		(84-8) 8231280
5. Station of Stockpiling & Processing Agricultural Products for Export
Address		No. 36/6H, Nguyen Anh Thu St, Hiep Thanh Ward, Dist 12, Hochiminh City
Country		Vietnam
Tel		(84-8) 7176035
Note: at this address, there is a company name “Hoang Hung Dung Limited Company”. This company is also the agent for AGRIMEXCO in purchasing products.
DIRECTORS
1. NAME		Ms. TRAN NGOC HUE
Position		Current Director
Qualification		Management
Nationality		Vietnamese
2. NAME			Mr. BUI VAN NGOC
Position			Deputy Director
Qualification			Management
Nationality			Vietnamese
3. NAME	Mr. VO VAN THIEU
Position	Deputy Director
Qualification	Management
Nationality	Vietnamese
4. NAME	Ms. LAI MY LINH
Position	Chief accountant
Qualification	Bachelor
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject specializes in: ü Export of agricultural, forestry and marine products, fine arts and handicrafts, processed foodstuffs and industrial products. ü Import of equipments and materials, spare parts and consumer goods. ü Manufacturing plywood, veneer, processed wood products, bamboo chopsticks, rice paper and condiments.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports all kinds of raw materials, equipments and machineries, chemical and biochemical fertilizers such as Urea, S.A, N.P.K, D.A.P; veterinary medicines; shrimp feed; breeds and seeds, agricultural machineries and spare parts, resins, chemicals and essential oils, steel sheet, refrigerators, freezing cabinet, washing machine, cooker hood, gas cooker and means of transport from Asia, Europe, America, Oceania and Africa region.
EXPORT: The subject exports fishery, agriculture & forestry products to many countries in the world and mainly distributes to USA, Taiwan, Singapore, Indonesia, Malaysia and the Philippines.
BANKERS
1. VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Address	No. 50, Ben Chuong Duong St, Dist 1, Hochiminh City
Country	Vietnam
Tel	(84-8) 822 2752 – 829 5434
Fax	(84-8) 829 4063
Swift	VBAAVNVX
2. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address	No. 29, Ben Chuong Duong St, Hochiminh City
Country	Vietnam
Tel	(84-8) 825 1317
Fax	(84-8) 829 7228
Telex	811234/5 VVB-VT
Swift	BFTVVBVX 007
SHAREHOLDER (S)
The Subject is a 100% state owned company. It is under direct management of SAIGON AGRICULTURAL INCORPORATION (S.A.I). Following is some information of S.A.I.
English Name	SAIGON AGRICULTURAL INCORPORATION (S.A.I)
Vietnamese Name	TONG CONG TY NONG NGHIEP SAI GON
Address	No. 189, Dien Bien Phu St, Ward 15, Binh Thanh Dist, Hochiminh City
Country	Vietnam
Establishment decision	No. 6178/QĐUB-KT
Issued on	December 30^th, 1996
Current Business Registration	4106000149
Issued on	April 25^th, 2006
Former Business Registration	No. 103327
Issued on	May 15^th, 1997
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Fairly good
Liquidity	Normal
Previous Payments status	Average
Current Payment status	Fairly prompt
Past Financial Situation	Above average
Current Financial Situation	Fairly good
Illegal Action	Recorded
Bankruptcy	No record
Reputation	Fairly good
Methods of payment	Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C) or telegraphic transfer (T/T)
Sales methods	Directly to clients or through its agents
Note: On January 26^th, 2005, Hochiminh People Court has sentenced the former board of directors including Le Thai Dong-former director, Truong Binh Thang-former sales staff, Bui Kim Tan-former chief accountant to 3 years of probation for defrauding to appropriate company's safety.
FINANCIAL DATA
BALANCE SHEET
Unit: Million VND
Balance Sheet Date				31/12/2005	31/12/2004			31/12/2003			31/12/2002
Number of Weeks				52	52			52			52
ASSETS
A. Current assets & Short term Investment				95,498	114,953			107,172			104,904
I. Cash and cash equivalents				7,410	3,565			2,919			4,006
II. Short term investment				0	0			0			0
1. Short-term securities investment				0	0			0			0
2. Other short-term investment				0	0			0			0
3. Provision for devaluation of short-term investment				0	0			0			0
III. Receivables				56,588	64,751			61,040			42,532
1. Receivables from customers				21,106	19,626			31,670			30,122
2. Prepaid for providers				31,682	17,076			10,317			9,149
3. Value-added tax deducted				0	2,791			1,848			614
4. Internal receivables				0	18,982			10,685			0
5. Other receivables				8,311	10,718			11,701			6,239
6. Provision for bad receivables				-4,511	-4,442			-5,181			-3,592
IV. Inventory				27,327	44,446			41,165			55,471
1. Purchased goods in transit				0	0			0			0
2. Inventory raw materials				0	1,193			585			667
3. Inventory appliance				0	0			0			1
4. Cost of production and business in process				0	2,885			1,632			1,508
5. Inventory finished products				0	551			138			0
6. Inventory cargoes				28,241	25,192			20,402			55,296
7. Entrusted goods for sale				0	16,613			21,146			0
8. Provision for devaluation of stocks				-914	-1,988			-2,738			-2,001
V. Other current assets				4,173	2,191			2,048			2,895
1. Advances				0	390			238			2,895
2. Prepaid expenses				0	293			373			0
3. Pending expenses for transfer				0	0			0			0
4. Pending assets				0	0			0			0
5. Hypothecation, collateral and short run collateral				4,173	1,508			1,437			0
VI. Administrative				0	0			0			0
1. Administrative expenses for previous year				0	0			0			0
2. Administrative expenses for current year				0	0			0			0
B. Fixed assets & Long term investment				13,978	14,687			16,212			16,245
I. Fixed assets				13,601	14,497			9,871			10,528
1. Tangible fixed assets				13,438	14,280			9,599			9,277
+ Original cost				26,754	25,501			19,987			20,367
+ Accumulated depreciation value				-13,316	-11,221			-10,388			-11,090
2. Fixed assets of financing credit				0	0			0			0
+ Original cost				0	0			0			0
+ Accumulated depreciation value				0	0			0			0
3. Intangible fixed assets				163	217			272			1,251
+ Original cost				544	544			544			1,517
+ Accumulated depreciation value				-381	-327			-272			-266
II. Long term investment				0	0			0			0
1. Long-term securities investment				0	0			0			0
2. Joint-venture capital contribution				0	0			0			0
3. Other long-term investment				0	0			0			0
4. Provision for long-term investment devaluation				0	0			0			0
III. Capital construction in process				7	6			6,341			5,717
IV. Other				0	0			0			0
V. Long term prepaid expense				370	184			0			0
TOTAL ASSETS				109,476	129,640			123,384			121,149
LIABILITIES
A. Payables				66,973	88,154			83,384			87,698
I. Short term payables				66,973	87,496			82,650			87,590
1. Short-term borrowings				29,209	27,708			14,376			13,287
2. Due long-term liabilities				0	0			0			0
3. Payable to seller				5,254	9,741			25,141			21,141
4. Prepaid for buyer				10,958	14,719			18,833			34,703
5. Taxes and accounts dutiable				2,503	-1,199			-426			-6,537
6. Employee payments				13,520	11,982			9,825			9,755
7. Internal payments				622	18,982			10,685			0
8. Other payables				4,907	5,563			4,216			15,241
II. Long term payables				0	0			0			0
1. Long-term borrowing				0	0			0			0
2. Long-term loans				0	0			0			0
III. Other liabilities				0	658			734			108
1. Disbursed payable				0	658			734			108
2. Pending assets				0	0			0			0
3. Receipts long-term collateral and deposit				0	0			0			0
B. Owner’s Equity				42,503	41,486			40,000			33,451
I. Capital and Funds				41,697	42,371			40,314			32,457
1. Working capital				29,698	27,367			21,619			19,541
2. Differences from assets revaluation				6,141	0			0			168
3. Exchange rate differences				0	0			0			0
4. Business development fund				2,421	1,889			1,889			0
5. Reserved fund				1,286	837			837			0
6. Retained profit				2,151	6,137			3,961			5,866
7. Construction capital sources				0	6,141			12,008			6,882
II. Other administrative and fund sources				806	-885			-314			994
1. Provident funds for unemployment				0	0			0			0
2. Welfare and reward funds				806	-885			-314			994
3. Management funds of higher level				0	0			0			0
4. Functional operation funds				0	0			0			0
5. Fund sources formed by fixed assets				0	0			0			0
TOTAL LIABILITY AND EQUITY				109.476	129,640			123,384			121,149
PROFIT & LOSE ACCOUNTS
Description				FY 2005		FY 2004			FY 2003
Total revenue				386,465		418,505			374,773
Revenue from export				0		0			0
Deducted Items				0		101			5
- Discount				0		0			0
- Devaluation of sale price				0		0			0
- Return of sold goods				0		0			5
- Turnover tax, excise tax, import and export duties to be paid				0		101			0
1. Net revenue				386,465		418,404			374,768
2. Original rate of goods for sale				362,512		394,141			351,157
3. Combined Profit				23,953		24,263			23,611
4. Sales costs				4,407		5,745			8,052
5. Enterprise administrative costs				17,495		15,373			13,150
6. Net income from business activity				2,051		3,145			2,409
Income from financial activities				4,423		2,702			1,371
Costs of financial activities				3,856		3,030			2,050
7. Net income from financial operation				567		-328			-679
Irregular income				428		274			1,356
Irregular expenditure				29		61			81
8. Irregular Profit				399		213			1,275
9. Total pre-tax profit				3,017		3,030			3,005
10. Income tax				844		848			961
11. After tax profit				2,173		2,182			2,044
FINANCIAL FACTORS
Description				2005			2004			2003
Current Liquidity Ratio				1.43			1.31			1.30
Quick Liquidity Ratio				1.02			0.81			0.80
Inventory Circle				13.27			8.87			8.20
Average Receivable Period (days)				53.44			56.49			59.45
Utilizing Asset performance				3.53			3.23			3.04
Liabilities / Total Assets (%)				61.18			68.00			67.58
Liabilities / Owner’s Equity (%)				157.57			212.49			208.46
Income before tax/Total assets (%) ROA				2.76			2.34			2.44
Income before tax / Owner’s Equity (%) ROE				7.10			7.30			7.51
Income before tax/Total revenues (%) NPM				0.78			0.72			0.80
Gross profit/ Total revenue (%) GPM				6.20			5.80			6.30
INTERPRETATION
The subject is a 100% state owned company. It was established in 1983. The subject has had a long time of experience in import-export transaction. It has just been re-organized to be member of Saigon Agricultural Incorporation (S.A.I) at the beginning of 2005. Agrimexco is a reputable company. It was strongly supported from Government of Vietnam in the past so it takes many advantages in import-export activities. Thus, it has created a system of traditional customers nationwide. The subject imports materials from Asia, Europe, America, Oceania and Africa region. Its products are exported to USA, Taiwan, Singapore, Indonesia, Malaysia and the Philippines. The subject’s products include rice, coffee, beans of kinds, black pepper, sesame, cinnamon, processed foodstuffs, fresh vegetables and fruits, wooden products, rattan, bamboo and palm leaf ware, dried and frozen, ceramics wares… Moreover, it is ready to co-operate with any partner in production and processing business for import and export as well cattle and poultry farming. It has also service for forwarding, maintaining, sorting and packing commodities. The subject’s premises are very large. It has 3 processing plants (Tan A, Tan Phu, and Tan Phong) and 2 stations of stockpiling and processing agricultural products for export. Being a state owned enterprise, thus its management capability is limited. On January 26^th, 2005, Hochiminh city People Court sentenced the former board of directors of the subject including Le Thai Dong-former director, Truong Binh Thang-former sales staff, and Bui Kim Tan-former chief accountant to 3 years of probation for defrauding. This event affected much to the subject’s operation and its reputation in the market. The current board of director is trying their best to improve its management capability. The market share of subject is remarkable. Annual turnover reaches average 25 million USD. It is expected that its market share as well as turnover will be more expanded in the future. The future prospect of the subject is being improved. In overview, the subject is a big size company. However, because of being a state owned enterprise, it may cope with difficulties in competing with other competitors. Its financial status is rather good. With this transaction, the subject will be in bad trouble if there is an implicit risk from its local customers and the market, too. Caution needed for the given credit.
CREDIT INQUIRY 1,500,000 USD
This amount is big for the Subject. Pay attention to this transaction with close term.

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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