MIRA INFORM REPORT

Report Date :

23.04.2007

IDENTIFICATION DETAILS

Name :	BINH DINH FISHERY JOINT STOCK COMPANY
Registered Office :	No. 2D, Tran Hung Dao Str., Qui Nhon City, Binh Dinh Province
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	1976
Legal Form :	Joint Stock Company
Line of Business :	Processing and selling aquatic products, frozen products such as shrimp, cuttlefish, tuna, etc.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Status :	Moderate
Payment Behaviour :	Usually correct
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	BINH DINH FISHERY JOINT STOCK COMPANY
Vietnamese name	CONG TY CO PHAN THUY SAN BINH DINH
Abbreviation name	BINH DINH FISHERY JSC.
Founded	1976
Current Type of Business	Joint Stock Company
Former Type of Business	State Owned Company
Equitization	1999
Business Registration	No. 056459
Date of Issuance	March 1^st, 1999
Place of Issuance	Binh Dinh Province Department of Planning and Investment
Registered capital	VND 3,100,000,000
Tax code	4100301209
Total Employees	300 persons
Qualification	Normal
ADDRESS
Head Office
Address	No. 2D, Tran Hung Dao Str., Qui Nhon City, Binh Dinh Province
Country	Vietnam
Tel	(84-56) 892523
Fax	(84-56) 892355
Email	lan@bibifisco.com.vn
Representative Office
Address	No. 38, Le Quang Kim, Dist. 8, Ho Chi Minh City
Country	Vietnam
Tel	(84-8) 8559645
Fax	(84-8) 8559645
Manager	Mr. TRUONG HOANG NAM
Hand Phone	+84 903503618

DIRECTORS
1. NAME	Mr. HOANG XUAN NAM
Position	Chairman
Resident	Binh Dinh Province, Vietnam
Nationality	Vietnamese
2. NAME	Mrs. CAO THI KIM LAN
Position	Director
Date of Birth	November 28^th, 1958
ID No.	211260721
Hand Phone	+84 903510937
Office Tel	(84-56) 892004
Resident	No. 37/16, Nguyen Thai Hoc Str., Qui Nhon City, Binh Dinh Province, Vietnam
Nationality	Vietnamese
3. NAME	Mr. HUYNH TAN HIEP
Position	Vice Director
Hand Phone	+84 913462108
Resident	Nha Trang City, Khanh Hoa Province, Vietnam
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject focuses on the following lines of business:
- Processing and selling aquatic products, frozen products such as shrimp, cuttlefish, tuna, etc.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports from Thailand, Indonesia, Philippines, Taiwan, South Africa, etc.
EXPORT: The subject’s products are exported to Taiwan, France, Germany, Italy, Netherlands, Denmark, Spain and US.

BANKERS
1. BANK FOR FOREIGN TRADE OF VIETNAM
Address	No. 152, Le Loi Str., Quy Nhon city, Binh Dinh Province
Country	Vietnam
Tel	(84-56) 821498
Fax	(84-56) 823181
Account No.	005 180 000991
SHAREHOLDERS
1. Name	Mrs. CAO THI KIM LAN
Position	Director
Nationality	Vietnamese
Share	33.15%
Value	VND 1,027,800,000
2. Name	Mr. TRUONG QUANG NHAN
Resident	No. 37/16, Nguyen Thai Hoc Str., Qui Nhon City, Binh Dinh Province
Country	Vietnam
Nationality	Vietnamese
Share	12.66%
Value	VND 392,500,000
3. Name	Ms. TRAN THI PHUC LOAN
Resident	Kv 8, Hai Cang Ward, Qui Nhon City, Binh Dinh Province
Country	Vietnam
Nationality	Vietnamese
Share	3.23%
Value	VND 100,000,000
4. Name	Mr. LE VAN QUY
Resident	No. 12E, Bach Dang, Qui Nhon City, Binh Dinh Province
Country	Vietnam
Nationality	Vietnamese
Share	2.29%
Value	VND 71,000,000
5. Name	Mr. NGUYEN PHI PHONG
Resident	Group 19, KV3, Tran Phu Ward, Qui Nhon City, Binh Dinh Provicne
Country	Vietnam
Nationality	Vietnamese
Share	2.1%
Value	VND 65,000,000
6. Name	Mr. HUYNH TAN HUNG
Resident	No. 141, Dong Da Str., Qui Nhon City, Binh Dinh Province
Nationality	Vietnamese
Share	0.81%
Value	VND 25,000,000
7. Name	ABOUT 130 OTHER SHAREHOLDERS
Share	45.76%
Value	VND 1,418,700,000
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Normal
Liquidity	Weak
Previous Payments	Average
Payment status	Weak
Past Financial Situation	Average
Current Financial Situation	Developing
Litigation Data	No reported
Bankruptcy	No reported
Public opinion	Normal
Payment Methods	L/C, D/P, T/T

FINANCIAL DATA
BALANCE SHEET
Unit: VND 1,000,000
Balance sheet date		31/12/2005	31/12/2004
Number of weeks		52	52
ASSETS
A. Working assets & short-term Investment		15,877	13,818
I. Cash and cash equivalents		118	492
II. Short-term investment		0	0
1. Short-term securities investment		0	0
2. Other short-term investment		0	0
3. Provision for short-term investment		0	0
III. Receivables		6,254	5,358
1. Receivables from customers		5,296	3,303
2. Prepayment for providers		127	660
3. Value-added tax deducted		0	0
4. Internal receivables		0	0
5. Other receivables		831	1,395
6. Provision for bad receivables		0	0
IV. Inventory		9,498	7,912
1. Purchased goods in transit		0	0
2. Raw materials		0	0
3. Instrument, tools		0	0
4. Cost for production and business in process		0	0
5. End products		0	0
6. Goods		9,498	7,912
7. Goods on consignment		0	0
8. Provision for devaluation of stocks		0	0
V. Other current assets		7	56
1. Advances		0	0
2. Prepaid expenses		7	56
3. Pending expenses for transfer		0	0
4. Pending assets		0	0
5. Mortgage, collateral and short run collateral		0	0
VI. Administrative		0	0
1. Administrative expenses for previous year		0	0
2. Administrative expenses for current year		0	0
B. Fixed assets & Long term investment		9,048	8,697
I. Fixed assets		8,353	7,832
1. Tangible fixed assets		8,353	7,832
+ Original cost		12,832	10,674
+ Accumulated depreciation value		-4,479	-2,842
2. Financial leasing fixed assets		0	0
+ Original cost		0	0
+ Accumulated depreciation value		0	0
3. Intangible fixed assets		0	0
+ Original cost		0	0
+ Accumulated depreciation value		0	0
II. Long term investment		100	100
1. Long-term securities investment		0	0
2. Joint-venture capital contribution		100	100
3. Other long-term investment		0	0
4. Provision for long-term investment devaluation		0	0
III. Capital construction in process		0	47
IV. Other		595	718
TOTAL ASSETS		24,925	22,515
LIABILITIES
A. Payable loans		20,770	18,701
I. Short term payables		20,767	18,402
1. Short-term borrowings		17,537	14,352
2. Due long-term liabilities		0	0
3. Payables to supplier		1,909	2,453
4. Prepayment of buyer		807	755
5. Taxes and accounts dutiable		-214	81
6. Employee payments		394	292
7. Internal payables		0	0
8. Other payables		334	469
II. Long term loans		3	299
1. Long-term borrowings		0	0
2. Long-term payables		3	299
III. Other payables		0	0
1. Payable expenses		0	0
2. Pending assets		0	0
3. Receipts long-term collateral and deposit		0	0
B. Owner’s Equity		4,155	3,814
I. Capital and Funds		4,149	3,806
1. Working capital		3,681	3,616
2. Differences from asset revaluation		0	0
3. Exchange rate differences		0	0
4. Development investment funds		315	115
5. Reserved funds		140	75
6. Retained profit		13	0
7. Construction capital sources		0	0
II. Other administrative and fund sources		6	8
1. Provident funds for unemployment		0	0
2. Reward and welfare funds		6	8
3. Management funds of higher level		0	0
4. Functional operation funds		0	0
5. Fund sources formed by fixed assets		0	0
TOTAL LIABILITY AND EQUITY		24,925	22,515
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
Description		FY 2005
Total revenue		125,221
Deductions Items		429
- Discount		429
- Devaluation		0
- Return of sold goods		0
- Turnover tax, Luxury tax & Export tax		0
1. Net revenue		124,792
2. Cost of goods sold		115,195
3. Gross Profit		9,597
4. Sales expenses		s
5. Enterprise administrative expenses		1,203
6. Net income from business activities		2,628
Income from financial activities		221
Expenditure from financial activities		2,061
7. Net income from financial operation		-1,840
Irregular income		25
Irregular expenditure		0
8. Irregular Profit		25
9. Total pre-tax profit		813
10. Income tax		109
11. After tax profit		704
FINANCIAL FACTORS
Description		FY 2005
Current Liquidity Ratio		0.76
Quick Liquidity Ratio		0.31
Inventory Circle		13.23
Average Receive Period		18.29
Utilizing Asset Performance		5.01
Liability / Total Asset (%)		83.33
Liability / Owner's Equity (%)		499.88
Income Before Tax / Total Asset (%) ROA		3.26
Income Before Tax / Owner's Equity (%) ROE		19.57
Income Before Tax / Total Revenue (%) NPM		0.65
Gross Profit / Total Revenue (%) GPM		7.66
FINANCIAL HIGHLIGHTS
Turnover in 2006	VND 130,000,000,000
Turnover in 2007 (Planned)	VND 170,000,000,000
INTERPRETATION
The subject was established in 1976 as a State Owned Enterprise. The original name was Binh Dinh Fishery Company. In 1999, the subject was equitized and ran as Joint Stock Company in early March 1999. The State did not hold stake in the subject. Now, the registered capital was VND 3,100,000,000. The subject now specializes in processing and selling aquatic products, frozen products such as shrimp, cuttlefish, tuna etc. In Binh Dinh province, the subject is one of three companies specializing in purchasing and exporting the tuna. Sea of Binh Dinh province has huge potential of catching tuna. However, quality of tuna is still low. The value of exporting value is still modest. The subject’s products are exported to EU countries and USA. The scale of the subject is not big. There are about 300 employees working for the subject and they are fairly busy. The premises and facilities are normal. The fixed assets are not invested much. Business result was modest. The turnover was increased year after year but at a low rate. With current liquidity ratio of 0.76 percent and quick liquidity ratio of 0.31 percent, the solvency is considered weak. The reported profitability is average. Because of low owner’s equity, the ROE ratio was high. The capital structure is not safe for creditors. The position and prestige are normal. The prospect seems bright. In general, the subject is operating as a medium scale company. It is capable to meet small commitments. A little caution needed for normal business transactions.

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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