MIRA INFORM REPORT

Report Date :

17.08.2007

IDENTIFICATION DETAILS

Name :	HOA BINH PROTECTING PLANT EQUIPMENT JOINT STOCK COMPANY
Registered Office :	No. 5/25, Lane 91, Nguyen Chi Thanh Str., Lang Ha Ward, Dong Da Dist, Hanoi City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	1999
Legal Form :	Joint Stock Company
Line of Business :	Processing, packing and trading in plant protection medicines and agricultural materials

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :

Stopped Operations

SUBJECT IDENTIFICATION & LEGAL FORM
Registered English Name	HOA BINH PROTECTING PLANT EQUIPMENT JOINT STOCK COMPANY
English Name in common use	HOA BINH PESTICIDE SUPPLY JOINT STOCK COMPANY
Former English Name	HOA BINH TRADING IMPORT-EXPORT COMPANY LIMITED
Current Vietnamese Name	CONG TY CO PHAN VAT TU BAO VE THUC VAT HOA BINH
Former Vietnamese Name	CONG TY TNHH KINH DOANH XUAT NHAP KHAU HOA BINH
Legal Trade Name	HOA BINH JSC
Trade name in common use	HOA BINH PSC
Founded	1999
Type of business	Joint Stock Company
Business Registration	No. 0103000936
Date of Issuance	April 10^th, 2002
Place of Issuance	Hanoi Department of Planning and Investment
Registered Capital	VND 1,800,000,000
Tax Code	No. 0100902749
Notes: In fact, since March 2007, HOA BINH PROTECTING PLANT EQUIPMENT JOINT STOCK COMPANY has not operated. However, in legal document, it is still existed. At the moment, the subject’s management only focuses on operation of HOA BINH AGRICULTURE CHEMICAL JOINT STOCK COMPANY, which was established in Jan 2006. Following is the information of HOA BINH AGRICULTURE CHEMICAL JS CO (HOA BINH AGROCHEM CORPORATION), we give you for reference.
English Name	HOA BINH AGRICULTURE CHEMICAL JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN HOA CHAT NONG NGHIEP HOA BINH
Trade name	HOA BINH AGROCHEM CORPORATION
Abbreviate name	HBAC., CORP
Type of business	Joint Stock Company
Business Registration	0103010323
Date of Issuance	January 11^th 2006
Place of Issuance	Hanoi Department of Planning and Investment
Registered Capital	50,000,000,000 VND
Tax Code	0101856703
Total Employees	240 employees
Related Company
English Name			HOA BINH EQUIPMENT AND TECHNOLOGY PESTICIDE JOINT STOCK COMPANY
Vietnamese Name			CONG TY CO PHAN VAT TU KY THUAT THUOC BAO VE THUC VAT HOA BINH
Abbreviate name			HOA BINH PJSC
Type of business			Joint Stock Company
Business Registration			No. 0103003403
Date of Issuance			January 2^nd, 2004
Place of Issuance			Hanoi Department of Planning and Investment
Registered Capital			VND 4,500,000,000
Director			Mr. NGUYEN HONG GIANG
Notes: In fact, this entity is not operated although it is still active in legal procedures.
ADDRESS
Registered address
Address			No. 5/25, Lane 91, Nguyen Chi Thanh Str., Lang Ha Ward, Dong Da Dist, Hanoi city
Country			Vietnam
Tel			(84-4) 7734979
Fax			(84-4) 7734979
Head office
Address			No.1 Alley 102 Khuat Duy Tien Str., Nhan Chinh Ward, Thanh Xuan Dist., Hanoi, Vietnam.
Tel			(84-4) 553 2608 / 553 2606/ 554 1714
Fax			(84-4) 553 2736
E-mail			info@hoabinhpsc.com
Website			www.hoabinhpsc.com
Northern Branch and Factory in Ha Tay Province
Address			Trai Cam, Noi Hamlet, Phu Kim Commune, Thach That Dist.
Province			Ha Tay province, Vietnam
Business Registration			No. 0313000019
Tax code			0100902749-002
Tel / Fax			(84-34) 670 891
Branch Director			Mr. PHAM VAN KHANG
Southern Branch and Factory in Ho Chi Minh City
Office transaction address			No.1–53A Road, No.8 Quarter, Tan Tao Ward, Binh Tan Dist, Hochiminh City, Vietnam
Tel/ Fax			(84 - 8) 754 0022
Factory Address			No.32-34, 24B Str, 2 Quarter, Binh Tri Dong B Ward, Binh Tan Dist, Hochiminh city
Business Registration			No. 4113015755
Tax code			0100902749-001
Tel			(84-8) 766 1855
Branch Director			Mr. NGUYEN DINH HAI
Resident			Tan Thanh Hamlet, Dong Hai Commune, Thanh Hoa City, Thanh Hoa Province
Mobile phone			+ 84 913914 037
Agent Network
The Subject has an agent network in almost provinces and cities in Vietnam, at the moment.
DIRECTORS
1. NAME			MR. NGUYEN HONG GIANG
Position			Chairman of Management Board
Date of Birth			October 10^th 1969
ID No.			145274925
Issued on			February 25^th 2004
Issued by			Hung Yen Province Police Station
Resident			Nguyen Trai St, Vuong Town, Tien Lu Dist., Hung Yen Province
Current address			No.21, Alley 91, Nguyen Chi Thanh Str., Lang Ha Ward, Dong Da Dist., Hanoi City, Vietnam
Note: Formerly, Mr. Dang Anh Tuan was Chairman of Management Board of Hoa Binh PSC
2. NAME			Mr. NGUYEN QUOC KHANH
Position			Director
Resident			Hanoi City
Nationality			Vietnamese
Mobile phone			+ 84 913 215 964
Note: Formerly, Mr. Ngo Quang Xuyen was Director and Mr. Nguyen Quoc Khanh was Deputy director of Hoa Binh PSC.
3. NAME			Mr. TRAN VAN HOA
Position			Deputy Director
Resident			Hanoi City
Nationality			Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject specializes in the following activities:
Processing, packing and trading in plant protection medicines and agricultural materials, including pesticide, insecticide, glass repellent, yellow medium-sized edible snail repellent, plant growing stimulus medicine; and packing in all kinds (glass bottle, pe, pet…)
IMPORT & EXPORT ACTIVITIES
IMPORT: The Subject imports materials and products from China, and India.
EXPORT: The Subject does not export at the moment.
BANKERS
1. HANOI BUIDING COMMERCIAL JOINT STOCK BANK (HABUBANK)
Address			B7 Giang Vo, Ba Dinh Dist., Hanoi City, Vietnam
Tel			(84-4) 846 0135
Fax			(84-4) 823 5693
2. VIETNAM INTERNATIONAL BANK (VIB)
Address		No.64-68 Ly Thuong Kiet Str., Hoan Kiem Dist, Hanoi City, Vietnam
Tel		(84-4) 942 6919
Fax		(84-4) 942 6929
SWIFT		VNIBVNVX
Telex		411389 VIB HN VT
Note: Beside of the above banks, the company also has banking transactions with Anbinh Bank, and Techcombank.
SHAREHOLDERS
The current shareholders of the Hoa Binh Agrochem Cor are as follows (value:100,000 VND per share):
1. NAME		MR. NGUYEN HONG GIANG
Position		Chairman of Management Board
Date of Birth		October 10^th 1969
ID No.		145274925
Issued on		February 25^th 2004
Issued by		Hung Yen Province Police Station
Nationality		Vietnamese
Resident		Nguyen Trai St, Vuong Town, Tien Lu Dist., Hung Yen Province
Current address		No.21, Alley 91, Nguyen Chi Thanh Str., Lang Ha Ward, Dong Da Dist., Hanoi City, Vietnam
Share		100,000 shares
2. Name		Mr. NGUYEN QUOC KHANH
Position		Director
Resident		Dong Ngac Commune, Tu Liem Dist., Hanoi city
Nationality		Vietnamese
Share		111,000 shares
3. Name		Mr. LE THANH SON
Position		Shareholders
Resident		No. 58, Cua Bac Str., Hoang Dieu Ward, Ba Dinh Dist., Hanoi City
Nationality		Vietnamese
Share		89,000 shares
4. Name		Mr. NGUYEN DINH HAI
Position		Shareholder
Resident		Lai Thanh Hamlet, Dong Hai Commune, Thanh Hoa City, Thanh Hoa Province
Nationality		Vietnamese
Share		100,000 shares
5. Name		Mr. PHAM VAN KHANG
Position		Shareholder
Resident		No.192B, Quan Thanh Str., Quan Thanh Ward, Ba Dinh Dist., Hanoi City
Nationality		Vietnamese
Share		100,000 shares
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Average
Liquidity		Average
Previous Payments		Normal
Payment status		Average
Past Financial Situations		N/A
Current Financial Situation		Average
Legal Action		No recorded
Bankruptcy		No recorded
Public opinion		Fairly
Modes of Payment		Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C), T/T, D/P
Sales methods		Directly to clients or through its agents.
FINANCIAL DATA
Note: The financial statement in 2003, 2004, 2005 of HOA BINH PSC, 2006 of HBAC., CORP
BALANCE SHEET
Unit: Million VND
Balance sheet date				31/12/2006		31/12/2005			31/12/2004				31/12/2003
Number of weeks				52		52			52				52
Consolidation code				Consolidated		Consolidated			Consolidated				Consolidated
ASSETS
A. Working assets & short-term Investment				261,308			101,835			104,561				88,230
I. Cash and cash equivalents				7,684			2,595			1,418				1,716
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 short-term investment				0			0			0				0
III. Receivables				151,179			41,757			58,606				47,250
1. Receivables from customers				150,249			37,452			31,352				25,025
2. Prepayment for providers				0			3,048			0				0
3. Value-added tax deducted				930			1,257			2,717				2,665
4. Internal receivables				0			0			23,280				0
5. Other receivables				0			0			1,257				19,560
6. Provision for bad receivables				0			0			0				0
IV. Inventory				76,530			57,483			43,165				38,849
1. Purchased goods in transit				0			0			0				0
2. Raw materials				50,089			0			27,166				0
3. Instrument, tools				399			0			0				0
4. Cost of production and business in process				11			0			239				0
5. Finished products				1,069			0			12,032				0
6. Goods				24,962			57,483			3,728				38,849
7. Goods on consignment				0			0			0				0
8. Provision for devaluation of stocks				0			0			0				0
V. Other current assets				25,915			0			1,372				415
1. Advances				17,908			0			0				415
2. Prepaid expenses				0			0			252				0
3. Pending expenses for transfer				8,007			0			0				0
4. Pending assets				0			0			0				0
5. Mortgage, collateral and short run collateral				0			0			1,120				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				7,482			3,734			7,757				4,909
I. Fixed assets				5,465			3,734			5,884				3,428
1. Tangible fixed assets				5,102			3,734			3,111				3,428
+ Original cost				8,992			6,979			5,438				4,848
+ Accumulated depreciation value				-3,890			-3,245			-2,327				-1,420
2. Financial leasing fixed assets				1,654			0			0				0
+ Original cost				0			0			0				0
+ Accumulated depreciation value				0			0			0				0
3. Intangible fixed assets				363			0			2,773				0
+ Original cost				4,978			0			3,371				0
+ Accumulated depreciation value				-4,615			0			-598				0
II. Long term investment				880			0			0				0
III. Capital construction in process				1,137			0			1,873				1,481
IV. Other				0			1,991			0				0
TOTAL ASSETS				268,790			107,560			112,318				93,139
LIABILITIES
A. Payable loans					187,993			84,859		108,204				90,667
I. Short term payables					187,993			84,859		108,204				90,667
1. Short-term borrowings					110,398			0		61,861				51,809
2. Due long-term liabilities					0			0		0				0
3. Payables to supplier					72,305			0		21,659				18,732
4. Prepayment of buyer					0			0		0				0
5. Taxes and accounts dutiable					1,588			0		838				253
6. Employee payments					702			0		0				0
7. Internal payables					0			0		23,280				0
8. Other payables					3,000			0		566				19,873
II. Long term loans					0			0		0				0
III. Other payables					0			0		0				0
B. Owner’s Equity					80,797			22,701		4,114				2,472
I. Capital and Funds					80,797			22,064		4,114				2,472
1. Working capital					39,440			21,411		1,900				1,900
2. Differences from asset revaluation					0			0		0				0
3. Exchange rate differences					0			0		0				0
4. Development investment funds					56			0		0				0
5. Reserved funds					0			0		101				0
6. Retained profit					41,301			653		2,113				572
7. Construction capital sources					0			0		0				0
II. Other administrative and fund sources					0			637		0				0
TOTAL LIABILITY AND EQUITY					268,790			107,560		112,318				93,139
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
Unit: Million VND
Description					FY 2006			FY 2005			FY 2004				FY 2003
Total revenue					276,785			260,266			225,856				185,802
Deductions Items					8,658			0			0				0
1. Net revenue					268,127			260,266			225,856				185,802
2. Cost of goods sold					165,845			228,398			204,179				170,020
3. Gross Profit					102,282			31,868			21,677				15,782
4. Sales expenses					16,598			0			2,355				0
5. Enterprise administrative expenses					24,153			21,705			12,457				15,412
6. Net income from business activities					61,531			10,163			6,865				370
Income from financial activities					2,310			0			0				0
Expenditure from financial activities					9,968			8,673			5,262				0
7. Net income from financial operation					-7,658			-8,673			-5,262				0
Irregular income					799			0			29				17
Irregular expenditure					10,345			0			6				9
8. Irregular Profit					-9,546			0			23				8
9. Total pre-tax profit					44,327			1,490			1,626				378
10. Income tax					0			394			455				121
11. After tax profit					44,327			1,096			1,171				257
FINANCIAL FACTORS
Description					FY 2006			FY 2005				FY 2004			FY 2003
Current liquidity ratio					1.39			1.20				0.97			0.97
Quick Liquidity ratio					0.98			0.52				0.57			0.54
Inventory circle					2.26			7.95				4.98			4.38
Average reveive period					205.80			58.56				94.71			92.82
Utilizing Asset Performance					1.00			2.42				2.01			1.99
Liability/ Total Asset (%)					69.94			78.89				96.34			97.35
Liability/ Owner's equity (%)					232.67			373.81				2,630.14			3,667.76
Income before tax/ Total asset (%) ROA					16.49			1.39				1.45			0.41
Income before tax/ Owner's equity (%) ROE					54.86			6.56				39.52			15.29
Income before tax/ Total revenue (%) NPM					16.01			0.57				0.72			0.20
Gross Profit / Total revenue (%) GPM					36.95			12.24				9.60			8.49
INTERPRETATION
Currently, in legal procedures, there are 3 companies operating on the same field with name of Hoa Binh, including Hoa Binh PSC (Hoa Binh Protecting Plant Equipment JS Co), Hoa Binh PJSC (Hoa Binh Equipment And Technology Pesticide JS Co) and HBAC., CORP (Hoa Binh Agriculture Chemical Js Co). In March 2007, the management board decided to develop only HBAC., CORP. HBAC., CORP is inherited all bases of the Subject (HOA BINH PSC). HBAC., CORP still focuses on the field of plan protection manufacture and trade. The Subject was established in 1999 as a Liability Limited Company and was converted to Joint Stock Company in 2002. It had registered capital of VND 1,800,000,000 and two factories with total employees of 240 persons. Hoa Binh Psc specialized in processing, packing and trading in plant protection. Hoa Binh Psc’s business result was above average. Its turnover in 2004 was VND 225,000,000,000 and 2005 was 260,266,000,000 VND. Hoa Binh Psc’s products were sold across the country. However, its trademark was not very well known. The financial situation of Hoa Binh Psc was not quite good. The prestige and position in the industry of it was limited. Since March 2007,the Subject - Hoa Binh Protecting Plant Equipment Js Co has stopped operation but in legal document, it is still existed. According to the board of director, currently, the name Hoa Binh Protecting Plant Equipment Js Co does not exist. At the moment, the subject’s management only focuses on operation of Hoa Binh Agrochem Corporation. Hoa Binh Agrochem Corporation was established in January 2006 with registered capital was 4.5 billion VND. In March 2007, the Hoa Binh Agrochem Corporation increased registered capital is 50 billion VND. Registered address of Hoa Binh Agrochem Corporation at No.5/25, Alley 91, Nguyen chi Thanh Str., Lang Ha Ward, Dong Da Dist., Hanoi city and transaction address at No.1, Alley 102, Khuat Duy Tien Str., Nhan Chinh Ward, Thanh Xuan Dist., Hanoi City. The current director of Hoa Binh Agrochem Corporation-Mr. Nguyen Quoc Khanh is former deputy director of the Subject (Hoa Binh PSC). In short, the Subject – Hoa Binh Protecting Plant Equipment Js Co has stopped operation already. The subject is not reliable for business transactions. The clearness is necessary when has transaction with Subject as well as its other members.

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.	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