MIRA INFORM REPORT

Report Date :

25^th January, 2007

IDENTIFICATION DETAILS

Name :	GREENFEED (VIETNAM) COMPANY LIMITED
Registered Office :	Nhut Chanh Commune, Ben Luc Dist, Long An Province, Vietnam.
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	2003
Legal Form :	Foreign Invested Company
Line of Business :	Engaged in production and trading in various kinds of feed for livestock, including fish, shrimp, pig and chicken

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 :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM

English Name	GREENFEED (VIETNAM) COMPANY LIMITED
Vietnamese Name	CONG TY TNHH GREENFEED (VIET NAM)
Abbreviated Name	GREENFEED VIETNAM
Founded	2003
Type of Business	100% Foreign Invested Enterprise
License	No. 25/GP-LA
Issued on	August 26^th, 2003
Issued by	Planning and Investment Department of Long An Province
Start operation	March 2004
Investment duration	50 years
Current Investment capital	30,000,000 USD
Original Investment Capital	5,000,000 USD
Current Legal Capital	9,000,000 USD
Original Legal Capital	2,000,000 USD
Tax Code	1100598642
Total Employees	640 employees of the company
Qualification	Normal

ADDRESSES

Head Office & Factory’s Location
Address	Nhut Chanh Commune, Ben Luc Dist, Long An Province
Country	Vietnam
Tel	(84-72) 632881, 632882, 632883, 632884
Fax	(84-72) 632881
Email	Chau.tt@greenfeedvn.com
Website	www.greenfeedvn.com
Note: This factory started operation in June 2005. Next February 9^th, the subject’s head office will be inaugurated.
Factory in Hung Yen Province
Address	No.3 Str, Block D, Pho Noi A Industrial Zone, Hung Yen province
Country	Vietnam
Tel	(84-321) 967460
Fax	(84-321) 967461
Factory in Binh Dinh Province
Address	Lot A1, Vo Thi Sau, Nhon Binh Industrial Zones, Binh Dinh Province
Country	Vietnam
Tel	(84-56) 848318
Fax	(84-56) 848318
Branch in Can Tho city
Address	Thoi An Village, Thoi Thuan Commune, Thot Lot Dist, Can Tho City
Country	Vietnam
Tel	(84-71) 853684
Fax	(84-71) 855399
Branch in Dong Nai province
Address	Thanh Hoa Village, Ho Nai III Commune, Trang Bom Dist, Dong Nai Province
Country	Vietnam
Tel	(84-61) 869670
Branch in Vinh Long province
Address	68/20 Pho Co Dieu, Ward 3, Vinh Long Town, Vinh Long Province
Country	Vietnam
Tel	(84-70) 829563
Branch in Tien Giang Province
Address	181B, Ap 5, Trung An Commune, My Tho City, Tien Giang Province
Country	Vietnam
Tel	(84-73) 858506
Fax	(84-73) 858505
Note: Besides, Greenfeed Vietnam also has branches in Ha Nam, Phu Tho, Ben Tre, and Bac Lieu provinces

DIRECTORS

1. NAME	Mr. PRASERT PHETMUNEE
Position	General Director
Qualification	Management
Nationality	Thailand
2. NAME	Mr. TRAN NGOC TRI
Position	Deputy General Director
Qualification	Management
Nationality	Vietnamese
3. NAME	Mr. LUONG NAM HUU
Position	Deputy General Director
Qualification	Management
Nationality	Vietnamese
4. NAME	Mr. BUI QUANG NGHIA
Position	Deputy General Director
Qualification	Management
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is specializing in production and trading in various kinds of feed for livestock, including fish, shrimp, pig and chicken, with trade name: Aqua –Max, Aqua –Green; providing cattle breed.

IMPORT & EXPORT ACTIVITIES

IMPORT: Products and materials are imported from Thailand, India, Argentina, Norway, etc.

EXPORT: The subject’s products are only supplied for domestic market.

BANKERS

1. HONGKONG SHANGHAI BANK CORPORATION (HSBC)
Address		No.235 Dong Khoi Str, Dist 1, Hochiminh City
Telephone		(84-8) 829 2288
Fax		(84-8) 823 0530
Swift		HSBCVNVX
Director		Mr. ANDI GENT
2. VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Address	No. 326 Nguyen Chi Thanh Str, Ward 5, Dist 10, Hochiminh city
Tel	(84-8) 8534442 - 8534440
Fax	(84-8) 8534340
Swift	VBAAVNVXAXXX
3. UOB BANK
Address		No. 17 Le Duan Str, 1^st Floor, Central Plaza Building, Ben Nghe Ward, Dist 1, Hochiminh City
Tel		(84-8) 8251424
Fax		(84-8) 8251423
Telex		813221UOBHCM-VT
Swift		OUVBVNVX
Email		uobhcmc-adm@hcmc.netnam.vn
Website		www.uobgroup.com
4. EASTERN ASIA COMMERCIAL JOINT STOCK BANK
Address		No. 503, Truong Chinh Str., Tan Binh Dist., Ho Chi Minh City, Vietnam
Telephone		(84-8) 8443659 / 8496324
Fax		(84-8) 8440031 / 8105750
Email		eab@eab.com.vn
Website		www.eab.com.vn

SHAREHOLDER (S)

The Subject is a 100% foreign invested company. Its investor is as follows:
Name	GREENFEED (THAILAND) CO., LTD
Address	Thailand
Shares	100 percent

PAYMENT HISTORY AND EXPERIENCES

Trade Morality	FAIRLY GOOD
Liquidity	GOOD
Previous Payment Status	FAIRLY PROMPT
Current Payment Status	FAIRLY PROMPT
Past Financial Situation	GOOD
Current Financial Situation	GOOD
Legal Action	NO RECORDED
Bankruptcy	NO RECORDED
Reputation	NORMAL
Mode of Payment	DIRECT PAYMENT OR THROUGH ITS CORRESPONDING BANK BY L/C, REMITTANCE.
Sales methods	DIRECTLY TO CLIENTS OR THROUGH ITS NETWORKS.

FINANCIAL DATA

BALANCE SHEET

Unit: 1,000,000 VND

Balance Sheet Date	31/12/2005	31/12/2004
Number of Weeks	52	52
ASSETS
A. Current assets & Short term Investment:	156,454	94,714
I. Cash and cash equivalents	45,044	24,293
II. Short term investment	0	0
1. Short-term securities investment	0	0
2. Other short-term investment	0	0
3. Provision for devaluation of short-term investment	0	0
III. Receivables	46,257	43,627
1. Receivables from customers	10,440	1,085
2. Prepaid for providers	20,290	27,973
3. Value-added tax deducted	8,265	4,266
4. Internal receivables	4,761	10,242
5. Other receivables	2,980	61
6. Provision for bad receivables	-479	0
IV. Inventory	60,620	26,010
1. Purchased goods in transit	16,531	538
2. Inventory raw materials	24,552	9,825
3. Inventory appliance	5,034	2,416
4. Cost for production and business in process	812	4,616
5. Inventory finished products	14,390	2,792
6. Inventory cargoes	0	0
7. Entrusted goods for sale	0	5,823
8. Provision for devaluation of stocks	-699	0
V. Other current assets	4,533	784
1. Advances	839	784
2. Prepaid expenses	0	0
3. Pending expenses for transfer	0	0
4. Pending assets	1,049	0
5. Hypothecation, collateral and short run collateral	2,645	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	176,794	83,109
I. Fixed assets	162,201	70,609
1. Tangible fixed assets	89,145	6,561
+ Original cost	92,931	6,912
+ Accumulated depreciation value	-3,786	-351
2. Fixed assets of financing credit	50,816	47,533
+ Original cost	55,565	48,451
+ Accumulated depreciation value	-4,749	-918
3. Intangible fixed assets	22,240	16,515
+ Original cost	23,057	16,898
+ Accumulated depreciation value	-817	-383
II. Long term investment	0	0
1. Long-term securities investment	0	0
2. Joint-venture capital contribution	0	0
3. Other long-term investment	0	0
4. Provision for long-term investment devaluation	0	0
III. Long term pre-paid expense	9,701	5,840
IV. Other	4,892	6,660
TOTAL ASSETS	333,248	177,823
LIABILITIES
A. Payables	289,326	131,342
I. Short term payables	217,006	81,532
1. Short-term borrowings	56,782	16,335
2. Due long-term liabilities	17,984	0
3. Payable to seller	134,087	62,441
4. Prepaid buyer	0	84
5. Taxes and accounts dutiable	198	2,291
6. Employee payments	379	200
7. Internal payments	-1	0
8. Other payables	7,577	181
II. Long term payables	47,041	40,564
1. Long-term borrowing	22,978	20,570
2. Long-term loans	24,063	19,994
III. Other liabilities	25,279	9,246
1. Disbursement payable	25,279	9,246
2. Pending assets	0	0
3. Receipts long-term collateral and deposit	0	0
B. Owner’s Equity	43,922	46,481
I. Capital and Funds	43,922	46,481
1. Paid-in Capital	80,297	54,815
2. Differences from assets revaluation	0	0
3. Exchange rate differences	0	0
4. Business development fund	0	0
5. Reserved fund	0	0
6. Retained profit	-36,375	-8,334
7. Construction capital sources	0	0
II. Other administrative and fund sources	0	0
1. Provident funds for unemployment	0	0
2. Welfare and reward funds	0	0
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	333,248	177,823

PROFIT & LOSE ACCOUNT (INCOME STATEMENT)

Description	FY 2005	FY 2004
Total revenue	825,617	245,152
Deductions Items	25,485	3,823
- Discount	24,651	3,123
- Devaluation	299	515
- Return of sold goods	535	185
- Turnover tax, Luxury tax & Export tax	0	0
1. Net revenue	800,132	241,329
2. Cost of goods sold	716,879	215,524
3. Gross Profit	83,253	25,805
4. Sales expenses	68,821	25,156
5. Enterprise administrative expenses	19,714	7,387
6. Net income from business activities	-5,282	-6,738
Income from financial activities	294	159
Expenditure from financial activities	16,561	1,582
7. Net income from financial operation	-16,267	-1,423
Irregular income	38,101	9,283
Irregular expenditure	37,903	9,452
8. Irregular Profit	198	-169
9. Total pre-tax profit	-21,351	-8,330
10. Income tax	0	0
11. After tax profit	-21,351	-8,330

FINANCIAL FACTORS

Description	FY 2005	FY 2004
Current Liquidity Ratio	0.72	1.16
Quick Liquidity Ratio	0.44	0.84
Inventory Circle	23.65	16.57
Average Receive Period	21.10	65.98
Utilizing Asset Performance	2.40	1.36
Liability / Total Asset (%)	86.82	73.86
Liability / Owner's Equity (%)	658.73	282.57
Income Before Tax / Total Asset (%) ROA	-6.41	-4.68
Income Before Tax / Owner's Equity (%) ROE	-48.61	-17.92
Income Before Tax / Total Revenue (%) NPM	-2.59	-3.40
Gross Profit / Total Revenue (%) GPM	10.08	10.53

INTERPRETATION ON THE SCORES

Greenfeed Vietnam was established in 2003 as a 100% foreign invested company by Thai based company. The owner of the subject, Mr. Prasert Phetmunee, aslo is president of Thai Business Association. Only after two year operation, the subejct has achieved remarkble result. The turnover is high and investment capital is increased continously.

The subject is specializing in production and trading in various kinds of feed for livestock, including shrimp, fish, pig, chicken. Now, the business line is expand to providing breed of cattle. The premises and facilities of the subject are fairly good and being invested. The subject was granted investment license in August 2003 but started operation in 2004. Its orginial factory was small and located in Le Minh Xuan Industrial Zone, Ho Chi Minh City with capacity of 7,000 tons per year. In 2005, the big factory in Ben Luc Dist., Long An province was put into operation, so the manufacture in Le Minh Xuan IZ was moved here. At the present, the subject has two finished factories, another in Hung Yen Province, and one factory being under construction in Binh Dinh Province. The total capacity of the subject is about 600,000 tons per year. About distribution network, the subject has set up ten branches located in big cities where can supply nationwide. The subject’s products are well known under trademark of Aqua Max, Aqua Green, Higain.

Business result of the subject is considered good. The turnover was increased sharply in 2005. The turnover reached VND 825,617,000,000. However, this is the first phase of operation, the subject has suffered total loss of VND 36,375,000,000. Total assets were increased hard from VND 177,823,000,00 in 2004 to VND 333,248,000,000 in 2005. The subject’s assets were fund much by liabilities. That thing made ratio of liabilities / total assets to be 86.82% in 2005. In 2005, the current liquidity ratio was 0.72, down in comparison with that in 2004, proved that the subject used short term liability to fund fix assets. Fix assets were invested much. The subject commits to operate in Vietnam for a long time. The average receive period was downed from 66 days to 21 days. The subject’s prestige and postion are being improved. Management capacity is good. Well train and long experience about Vietnam’s business situation, Mr. Prasert Phetmunee will develop the subject successfully. The prospect seems bright.

In short, the subject’s operation is in investment phase. Its current business result is considered good. The subject is capable to meet small and normal commitment. Caution needed for big 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

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