MIRA INFORM REPORT

Report Date :

16.04.2007

IDENTIFICATION DETAILS

Name :	VISSAN COMPANY LIMITED
Registered Office :	No. 420 No Trang Long Str, Ward 13, Binh Thanh Dist, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	1970
Legal Form :	State-Owned Enterprise
Line of Business :	Processing and trading in fresh and frozen meat. Processing foods from meat, agricultural products, seafood and foodstuffs. Importing machinery, equipment, materials and food additives.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English name	VISSAN COMPANY LIMITED
Vietnamese Name	CONG TY TNHH MOT THANH VIEN KY NGHE SUC SAN
Trade mark	VISSAN
Originally Founded	1970
Type of Business	State-Owned Enterprise
Business Registration	No. 4104000199
Issued on	October 11^th 2006
Issued by	Planning and Investment Department of Hochiminh City
Tax code	0300105356
Registered Capital	116,000,000,000 VND
Total Employees	2,100 employees
Qualification	Fairly good
Note: Following is the former legal document of the Subject:
English name	VISSAN IMPORT EXPORT CORPORATION
Vietnamese Name	CONG TY VIETNAM KY NGHE SUC SAN
Trade mark	VISSAN
Originally Founded	1970
Type of Business	State-Owned Enterprise
Re-establishment	1992
Established decision	No. 213/QD-UB
Issued on	December 09^th, 1992
Issued by	People’s Committee of Hochiminh City
Business Registration	No. 103261
Issued on	December 31^st, 1992
Issued by	Planning and Investment Department of Hochiminh City
ADDRESSES
Head Office
Address	No. 420 No Trang Long Str, Ward 13, Binh Thanh Dist, Hochiminh City
Country	Vietnam
Tel	(84-8) 5533 999 - 5533 888
Fax	(84-8) 5533 939
Email	vissan@hcm.fpt.vn
Website	www.vissan.com.vn
Hanoi Branch
Address	No. 145, Pho Hue Str, Hai Ba Trung Dist, Hanoi city
Country	Vietnam
Tel	(84-4) 943 5830
Fax	(84-4) 943 5306
Da Nang Branch
Address	No. 17, Nguyen Van Linh Str, Hai Chau Dist, Da Nang City
Country	Vietnam
Tel	(84-510) 582 596 (cai so ma vung nay cua tinh Quang Nam chu co phai cua Da Nang dau)
Fax	(84-510) 582 189
Russia Rep. Office
Address	Moscow-Str. Sharikopopshipnhikovxkaia, House 15
Country	Russia
Tel	++7-095-6759095
Email	chinhvissan@yahoo.com
DIRECTORS
1. NAME	Mr. BUI DUY DUC
Position	Current General Director
Resident	Hochiminh City-Vietnam
Nationality	Vietnamese
NAME	Mr. VO VAN EM
Position	Former General Director
Resident	Hochiminh City-Vietnam
Nationality	Vietnamese
2. NAME	Mr. NGUYEN HOAI DUC
Position	Deputy General Director-Exclusive Business
Resident	Hochiminh City-Vietnam
Nationality	Vietnamese
3. NAME	Mr. NGUYEN VAN DUC
Position	Deputy General Director –Exclusive fresh food
Resident	Hochiminh City-Vietnam
Nationality	Vietnamese
4. NAME	Mr. MAI XUAN HOI
Position	Deputy General Director – Exclusive Internal
Resident	Hochiminh City-Vietnam
Nationality	Vietnamese
5. NAME	Mr. VAN DUC MUOI
Position	Deputy General Director-Exclusive Plan & Investment
Resident	Hochiminh City-Vietnam
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject specializes in: - Processing and trading in fresh and frozen meat - Processing foods from meat, agricultural products, seafood and foodstuffs - Importing machinery, equipment, materials and food additives. - Undertaking import, export on consignment
The subject is equipped with:
A spacious holding pen for 10,000 hogs and 4,000 head of cattle Three hog slaughter lines enable to butcher 2,400 head per 6-hour shift Two cattle slaughter lines of butchering 300 head/6 hour shift A 2,000 MT cold storage A cold cut processing line enables to produce 5,000 tons of finished products per year. The equipment is imported and the technology is transferred from France and Spain. A Japanese technology sausage processing line enables produce 8,000 tons of sterilized ready to eat sausage per year A complete coming line, imported from EU, enables to produces 5,000 tons of canned food per year.

IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports production lines from Germany, India and Australia.
EXPORT: The subject exports its products to West Europe, North America, Germany, Russia, Korea, Singapore, Hong Kong, Taiwan and Japan.
BANKERS
1. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address			No. 29, Ben Chuong Duong Str, Hochiminh City, Vietnam
Tel			(84-8) 825 1317
Fax			(84-8) 829 7228
Telex			811234/5 VVB-VT
Swift			BFTVVBVX 007
2. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM (INCOMBANK) BRANCH NO.7
Address		No. 346, Bui Huu Nghia Str, Ward 2, Binh Thanh Dist, Hochiminh City
Country		Vietnam
Tel		(84-8) 510 1398
Fax		(84-8) 841 2165
Subject’s account		102010000150518
SHAREHOLDERS
The Subject is a State Owned Enterprise. It is under management of following corporation:
ENLIGH NAME		SAIGON TRADING GROUP
Vietnamese Name		TONG CONG TY THUONG MAI SAIGON
Trade Name		SATRA GROUP
Address		No. 275B, Pham Ngu Lao Str, Dist 1, Hochiminh City
Country		Vietnam
Registration No		No. 4106000103
Registered Capital		121,265,402,012 VND
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Normal
Liquidity		Normal
Previous Payment Status		Fairly prompt
Current Payment Status		Prompt
Past Financial Situation		Relative good
Current Financial Situation		Relative good
Legal Action		No recorded
Bankruptcy		No recorded
Reputation		Good
FINANCIAL DATA
BALANCE SHEET
Unit: 01 VND
Balance sheet date				31/12/2005	31/12/2004
Number of weeks				52	52
ASSETS
A -	CURRENT ASSETS			271,458,843,632	206,789,271,419
I.	Cash and cash equivalents			99,646,021,729	61,789,026,280
1.	Cash			13,645,301,625	10,913,538,168
2.	Cash equivalents			86,000,720,104	50,875,488,112
II.	Short-term investments			0	0
1.	Short-term investments			0	0
2.	Provisions for short-term investment of short- term investments in securities			0	0
III.	Accounts receivable			64,775,728,728	34,046,897,306
1.	Receivable from customers			49,115,380,918	27,504,952,127
2.	Repayments to suppliers			2,531,148,149	563,409,781
3.	Inter- company receivable			0	0
4.	Receivable according to the process of construction contracts			0	0
5.	Other receivable			13,550,817,032	6,172,719,021
6.	Provisions for credit risk			-421,617,371	-194,183,623
IV.	Inventories			106,185,725,575	109,341,481,501
1.	Inventories			110,006,951,500	110,361,704,704
2.	Provisions for devaluation of inventories			-3,821,225,925	-1,020,223,203
V.	Other current assets			851,367,600	1,611,866,332
1.	Short-term repaid expenses			512,754,310	1,383,023,219
2.	Taxes receivable			338,613,290	228,843,113
3.	Other current assets
B -	LONG TERM ASSETS			133,128,995,273	97,195,471,772
I.	Long term accounts receivable			0	0
1.	Long term accounts receivable from customers			0	0
2.	Long term inter- company receivable			0	0
3.	Other long term receivable			0	0
4.	Provisions for bad debts			0	0
II.	Fixed assets			85,766,051,315	70,424,927,727
1.	Tangible assets			76,818,041,413	64,067,026,619
	Historical costs			159,943,762,480	133,162,588,054
	Accumulated depreciation			83,125,721,067	69,095,561,435
2.	Financial leasehold assets			0	0
	Historical costs			0	0
	Accumulated depreciation			0	0
3.	In-tangible assets			0	0
	Historical costs			0	0
	Accumulated depreciation			0	0
4.	Construction in progress			8,948,009,902	6,357,901,108
III.	Investment property			0	0
	History costs			0	0
	Accumulated depreciation			0	0
IV.	Long term investments			6,705,898,888	2,983,968,888
1.	Investments in affiliates			0	0
2.	Investments in business concerns and joint ventures			62,648,888	298,718,888
3.	Other long term investments			6,643,250,000	2,685,250,000
4.	Provisions for devaluation of investments in securities			0	0
V.	Other long term assets			40,657,045,070	23,786,575,157
1.	Long term repaid expenses			40,657,045,070	23,786,575,157
2.	Deferred income tax			0	0
3.	Other long term assets			0	0
	TOTAL ASSETS			404,587,838,905	303,984,743,191
LIABILITIES
A -	LIABILITIES			278,521,218,792	204,694,988,064
I.	Short term liabilities			203,524,187,592	123,435,505,218
1.	Short term debts and loans			112,879,200,000	55,078,700,000
2.	Payable to suppliers			31,571,217,255	22,906,653,310
3.	Advances from customers			21,155,686,820	20,976,889,702
4.	Taxes and other obligations to the State Budget			7,062,025,187	4,582,234,381
5.	Payable to employees			15,882,430,488	7,281,309,027
6.	Accrued expenses			1,313,474,932	1,175,049,477
7.	Inter- company payable			0	0
8.	Payable according to the progress of construction contracts			0	0
9.	Other payables			13,660,152,910	11,434,669,321
II.	Long term liabilities			74,997,031,200	81,259,482,846
1.	Long term account payable to suppliers			0	0
2.	Long term inter- company payable			0	0
3.	Other long term payable			90,250,000	59,900,000
4.	Long term debts and loans			74,906,781,200	81,199,582,846
5.	Deferred income tax			0	0
B -	OWNER’S EQUITY			126,066,620,113	99,289,755,127
I.	Owner’s equity			121,316,793,214	93,966,922,560
1.	Capital			113,062,641,592	90,205,959,517
2.	Share premiums			0	0
3.	Treasury stocks			0	0
4.	Differences on asset re-valuation			0	0
5.	Foreign exchange differences			0	0
6.	Business promotion fund			2,411,549,763	487,228,985
7.	Financial reserved fund			5,594,632,148	3,273,734,058
8.	Other funds			0	0
9.	Retained earnings			247,969,711	0
II.	Other sources and funds			4,749,826,899	5,322,832,567
1.	Bonus and welfare funds			4,749,826,899	5,322,832,567
2.	Sources of expenditure			0	0
3.	Funds to form fixed assets			0	0
	TOTAL LIABLITIES AND OWNER’S EQUITY			404,587,838,905	303,984,743,191
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Description			F/Y 2005	F/Y 2004
1.	Sales			1,751,604,239,492	-
2.	Deductions			3,119,810,215	-
3.	Net sales			1,748,484,429,277	-
4.	Costs of goods sold			1,603,845,670,614	-
5.	Gross profit			144,638,758,663	-
6.	Financial income			2,888,449,809	-
7.	Financial expenses			3,200,962,827	-
	- In which : Loan interest expenses			3,057,992,030	-
8.	Selling expenses			38,483,228,161	-
9.	Administrative overheads			74,937,511,188	-
10.	Net operating profit			30,905,506,296	-
11.	Other income			1,272,401,072	-
12.	Other expenses			781,648,450	-
13.	Other profits			490,752,622	-
14.	Profit (loss) before tax			31,396,258,918	-
15.	Income tax			8,770,927,660	-
16.	Profit (loss) after tax			22,625,331,258	-
FINANCIAL FACTORS
Description				FY 2005	FY 2004
Current Liquidity Ratio				1.33	-
Quick Liquidity Ratio				0.81	-
Inventory Circle				14.88	-
Average Receive Period				13.52	-
Utilizing Asset Performance				4.32
Liability / Total Asset (%)				68.84	-
Liability / Owner's Equity (%)				220.93	-
Income Before Tax / Total Asset (%) ROA				7.76	-
Income Before Tax / Owner's Equity (%) ROE				24.90	-
Income Before Tax / Total Revenue (%) NPM				1.79	-
Gross Profit / Total Revenue (%) GPM				8.26	-
INTERPRETATION
Vissan is a State-owned company. It is an affiliate unit of the Sai Gon Trading Group. It was first built on November 20th, 1970 and put into operation on may 18th, 1974. The subject was re-established under the Vietnam law on enterprises in 1992. Vissan’s business focuses on processing and trading in frozen meat and meat-related foods. Since September 2005, the subject was received the help of Saigon Vegfruco to extend the company's food range. The subject now is doing business following the model of one member owned limited liability company. Its owner is a state owned group - Sai Gon Trading Group. Vissan’s products are very popular in Vietnam market. It has created a wide distribution network in many provinces. Its market shares are very large. The subject is the leading company in trade and meat industry. In 2006, Vissan opened 06 new shops and 31 agents throughout the country. The company has spent part of its profits to upgrade its distribution system, material facilities, build pig and cattle raising farms in neighboring provinces of Dong Nai, Ninh Thuan and Binh Duong and a new factory in Tan Binh Industrial Park. Moreover, VISSAN has also co-operated with Saigon Trading Corporation to invest in a food processing factory in Cambodia. In general, the subject is a big state owned company. Its annual turnover is big and its profit capability is remarkable. In 2006, total revenue of Vissan was 2,006 billion dong, up 15% against that of 2005. Export value in the year 2006 was 145,900 USD Import value of the year 2006 was 6,000,000 USD (in 2006, the subject main imported goods is package, spices and materials and equipment). Earning before tax of Vissan in the year 2006 was 36 billion dong. The financial status of the subject is good for creditors. It is considered good for any normal business engagement.

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%)

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