MIRA INFORM REPORT

Report Date :

25.08.2007

IDENTIFICATION DETAILS

Name :	CUU LONG JOINT STOCK COMPANY
Registered Office :	Block C19A, Street No. 9, Le Minh Xuan Industrial Zone, Binh Chanh District, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	2002
Legal Form :	Joint-Stock Company
Line of Business :	Packaging and trading in pesticide.

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 :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
Subject’s English name			CUU LONG JOINT STOCK COMPANY
Vietnamese name			CONG TY CO PHAN CUU LONG
Abbreviation			CUU LONG J.S.CO
Found			2002
Type of business			Joint-Stock Company
Business registration No.			4103000782
Issued on			January 14^th, 2002
Issued by			Planning and Investment Department of Hochiminh City
Registered capital			8,000,000,000 VND
Tax code			0302518831
Total employees			32 employees
Qualification			Average
ADDRESSES
Head office and factory’s location
Address			Block C19A, Street No. 9, Le Minh Xuan Industrial Zone, Binh Chanh District, Hochiminh City
Tel			(84-8) 766 1713
Fax			(84-8) 766 1833
Email			cpcuulong@hcm.fpt.vn
Business registration			191/CN-KCN-HCM
Issued on			January 24^th, 2002
Issued by			Board of management of Hochiminh City Industrial Park
Transaction office
Address			No. 27/6, Vo Thi Sau, Da Kao Ward, District 1, Hochiminh City
Tel			(84-8) 820 0070
Fax			(84-8) 820 8113
Business registration No			03000594VP41
Issued on			January 28^th, 2002
Issued by			Planning and investment department of Hochiminh City
Notes: This office is also the subject’s director private house.
DIRECTORS
1. NAME			Mr. NGUYEN QUY THANG
Position			Chairman, Director
I.D.No			023007160
Resident			No. 27/6, Vo Thi Sau, Da Kao Ward, Dist 1, Hochiminh City
Nationality			Vietnamese
2. NAME			Mr. TRAN LE DUY
Position			Deputy Director
I.D.No			020167424
Resident			No. 174/2, Le Lai Street, Ben Thanh Ward, Dist 1, Hochiminh City
Nationality			Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in packaging and trading in pesticide.
The subject’s registered business items: Producing and trading pesticides Trading agricultural chemical materials Producing and trading fertilizers
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports materials from Japan, Germany and Italy
EXPORT: N/A
BANKERS
1. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM (INCOMBANK) BRANCH NO. 1
Address	No. 93 - 95, Ham Nghi Street, Nguyen Thai Binh Ward, Dist 1, Hochiminh City.
Tel	(84-8) 821 5388 - 821 0089
Fax	(84-8) 829 0696
Swift	ICBVVNVX902
2. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address	No. 29, Ben Chuong Duong Street, Hochiminh City
Tel	(84-8) 8251317
Fax	(84-8) 8297228
Telex	811234/5 VVB-VT
Swift	BFTVVBVX 007
SHAREHOLDER(S)
The Subject is a joint stock company. Its shareholders are as follow:
1. NAME		Mr. NGUYEN QUY THANG
Position		Chairman, Director
ID No		023007160
Resident		No. 27/6, Vo Thi Sau, Da Kao Ward, Dist 1, Hochiminh City
Nationality		Vietnamese
Share		25 %
Value		2,000,000,000 VND
2. NAME		Mr. TRAN LE DUY
Position		Deputy Director
ID No		020167424
Resident		No. 174/2, Le Lai Street, Ben Thanh Ward, Dist 1, Hochiminh City
Nationality		Vietnamese
Share		12.5 %
Value		1,000,000,000 VND

3. NAME			Mr. BUI NGOC ANH
Position			Shareholder
ID No			300456081
Resident			No. 215, National road No. 62, Binh Loi Commune, Binh Nhon District, Tan An town, Long An district
Nationality			Vietnamese
Share			12.5 %
Value			1,000,000,000 VND
4. NAME			Mr. NGUYEN THANH HUNG
Position			Shareholder
ID No			351319407
Resident			No. 662, Ap Thuong 2, Phu Mi town, Phu Tan district, An Giang province
Nationality			Vietnamese
Share			12.5 %
Value			1,000,000,000 VND
5. NAME			Mr. NGUYEN VAN HAI
Position			Shareholder
ID No			010804756
Resident			No.16/2A, Dinh Tien Hoang Street, Da Kao Ward, Dist 1, Hochiminh City
Nationality			Vietnamese
Share			25 %
Value			2,000,000,000 VND
6. NAME			Mr. PHAN VAN MUA
Position			Shareholder
ID No			021295447
Resident			Quarter No. 6, Cu Chi Town, Cu Chi district, Hochiminh City
Nationality			Vietnamese
Share			12.5 %
Value			1,000,000,000 VND
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Normal
Liquidity		Fair
Previous Payments		Normal
Current payment status		Prompt
Past Financial Situation		Normal
Current Financial Situation		Fair
Legal Action		No recorded
Bankruptcy		No recorded
Reputation		Normal
Mode of Payment		Direct payment or through its corresponding bank, (l/c), (t/t), d/p at sight
Sales methods		Directly to clients
FINANCIAL DATA
BALANCE SHEET
Unit: Million VND
Balance Sheet Date				31/12/2006
A -	CURRENT ASSETS			20,688
I.	Cash and cash equivalents			11,842
1.	Cash			11,842
2.	Cash equivalents			0
II.	Short-term investments			0
1.	Short-term investments			0
2.	Provisions for short-term investment of short- term investments in securities			0
III.	Accounts receivable			5,487
1.	Receivable from customers			3,843
2.	Repayments to suppliers			1,868
3.	Inter- company receivable			0
4.	Receivable according to the process of construction contracts			0
5.	Other receivable			0
6.	Provisions for bad debts			-224

IV.	Inventories	3,359
1.	Inventories	4,265
2.	Provisions for devaluation of inventories	-906
V.	Other current assets	0
1.	Short-term repaid expenses	0
2.	Taxes receivable	0
3.	Other current assets	0
B -	LONG TERM ASSETS	3,331
I.	Long term accounts receivable	0
1.	Long term accounts receivable from customers	0
2.	Long term inter- company receivable	0
3.	Other long term receivable	0
4.	Provisions for bad debts	0
II.	Fixed assets	3,331
1.	Tangible assets	2,373
	Historical costs	4,663
	Accumulated depreciation	-2,290
2.	Financial leasehold assets	0
	Historical costs	0
	Accumulated depreciation	0
3.	In-tangible assets	958
	Historical costs	1,462
	Accumulated depreciation	-504
4.	Construction in progress	0
III.	Investment property	0
	History costs	0
	Accumulated depreciation	0
IV.	Long term investments	0
1.	Investments in affiliates	0
2.	Investments in business concerns and joint ventures	0
3.	Other long term investments	0
4.	Provisions for devaluation of investments in securities	0
V.	Other long term assets	0
1.	Long term repaid expenses	0
2.	Deferred income tax	0
3.	Other long term assets	0
	TOTAL ASSETS	24,019
A -	LIABILITIES	10,791
I.	Short term liabilities	10,528
1.	Short term debts and loans	4,278
2.	Payable to suppliers	3,070
3.	Advances from customers	1,892
4.	Taxes and other obligations to the State Budget	286
5.	Payable to employees	0
6.	Accrued expenses	0
7.	Inter- company payable	0
8.	Payable according to the progress of construction contracts	0
9.	Other payables	1,002
II.	Long term liabilities	263
1.	Long term account payable to suppliers	0
2.	Long term inter- company payable	0
3.	Other long term payable	0
4.	Long term debts and loans	263
5.	Deferred income tax	0
B -	OWNER’S EQUITY	13,228
I.	Owner’s equity	12,379
1.	Capital	8,000
2.	Share premiums	0
3.	Treasury stocks	0
4.	Differences on asset re-valuation	0
5.	Foreign exchange differences	0
6.	Business promotion fund	482
7.	Financial reserved fund	-121
8.	Other funds	0
9.	Retained earnings	4,018
II.	Other sources and funds	849
1.	Bonus and welfare funds	849
2.	Sources of expenditure	0
3.	Funds to form fixed assets	0
	TOTAL LIABLITIES AND OWNER’S EQUITY	24,019
PROFIT & LOSE ACCOUNTS
	Description	F/Y 2006
1.	Sales	35,524
2.	Deductions	214
3.	Net sales	35,310
4.	Costs of goods sold	26,697
5.	Gross profit	8,613
6.	Financial income	83
7.	Financial expenses	619
	- In which: Loan interest expenses
8.	Selling expenses	1,428
9.	Administrative overheads	1,996
10.	Net operating profit	4,653
11.	Other income	0
12.	Other expenses	0
13.	Other profits	0
14.	Profit (loss) before tax	4,653
15.	Income tax
16.	Profit (loss) after tax	4,653
FINANCIAL FACTORS
Description		FY 2006
Current Liquidity Ratio		1.97
Quick Liquidity Ratio		1.65
Inventory Circle		7.95
Average Receive Period		56.72
Utilizing Asset Performance		1.47
Liability / Total Asset (%)		44.93
Liability / Owner’s Equity (%)		81.58
Income Before Tax / Total Asset (%) ROA		19.37
Income Before Tax / Owner’s Equity (%) ROE		35.18
Income Before Tax / Total Revenue (%) NPM		13.10
Gross Profit / Total Revenue (%) GPM		24.25

INTERPRETATION

CUU LONG JOINT STOCK COMPANY was established in 2002, formally started sales at the end of 2003. The subject is specializing in packaging and trading pesticides. CUU LONG imports materials, then packages and distributes in domestic market.

Currently the subject is sole distributor of Misui Chemical - a petrochemical corporation of Japan and Izagro of Italy. The subject is also sole distributor for some line of products of Sumitomo of Japan.

In the past, the subject also imported materials of France which supplied by Helm company of Germany but these materials were not suitable with Vietnamese market so the subject pause this business.

The subject factory locates at Block C19A, street No. 9, Le Minh Xuan Industrial Zone, Binh Chanh District, Hochiminh city. This location is used for packaging products and supplying to clients, all the business transaction are taken place at the subject’s director private home at No. 27/6, Vo Thi Sau Street, Da Kao Ward, Dist 1, Hochiminh City.

The subject’s director – Mr, Nguyen Quy Thang is the former director of VIETNAM FUMIGATION COMPANY - a state owned enterprise specialized in pesticides, agro-chemicals trading. When this company was equitized and established a new company namely INTERNATIONAL INSPECTION FUMIGATION JOINT STOCK COMPANY, he left company. After that Mr. Thang and some other shareholders established CUU LONG JOINT STOCK COMPANY.

Taking advantages from the relationship with traditional clients and long experience in this business field, the subject’s director manages the company with good development.

Its annual revenue grows gradually. Its market share is expanded mainly in the southern provinces and middle provinces. These market shares are potential so the subject has planned to expand its operation scale to have a stable standing in the industry and to compete with other big companies. In general, the subject may have potential development in the future.

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%)

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