MIRA INFORM REPORT

Report Date :

29.06.2007

IDENTIFICATION DETAILS

Name :	AGRI-PRODUCTS DISTRIBUTION COMPANY LIMITED
Registered Office :	No.101 Phan Dinh Phung Str, Tan An Ward, Ninh Kieu Dist., Can Tho City
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	1999
Legal Form :	Limited Liability Company
Line of Business :	Trading in pesticide and fertilizers.

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 :	Usually correct
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name		AGRI-PRODUCTS DISTRIBUTION COMPANY LIMITED
Vietnamese Name		CONG TY TNHH ADC
Trade Name		ADC CO., LTD
Type of Business		Limited Liability Company
Founded		1999
Established Decision No.		001761/GP-UB
Issued on		August 30^th, 1999
Issued by		People’s Committee of Can Tho Province
Current business registration		No 5702000832
Issued on		December 9^th, 2005
Issued by		Planning and Investment Department of Can Tho Province
Former business registration		No 072601
Issued on		August 31^st, 1999
Issued by		Planning and Investment Department of Can Tho Province
Current registered capital		94,950,000,000 VND
Former registered capital		4,500,000,000 VND
Tax code No.		1800348038
Total employees		250 employees
Qualification		Fairly Good
Note: On December 9^th, 2005, the subject has changed its business registration to increase registered capital and add more business items.
ADDRESSES
Head Office
Current Address		No.101 Phan Dinh Phung Str, Tan An Ward, Ninh Kieu Dist., Can Tho City
Former Address		No. 43 Tam Vu Str, Hung Loi Ward, Can Tho City
Country		Vietnam
Tel		(84-71) 840 840 / 840 234
Fax		(84-71) 753 477
Factory
Address		Phuoc Thoi Industrial Park, Phuoc Thoi Ward, Can Tho City
Country		Vietnam
Tel/ Fax		(84-71) 862 777
Area of factory		3,000 square meters
Chief of factory		Mr. DO THANH LUU
Branches
1. Hanoi Branch
Address		No. 14, Alley 19, Kim Dong Str, Hoang Mai Dist, Hanoi City
Country		Vietnam
Business registration		0112800043
Issued on		November 17^th, 1999
Issued by		Planning and Investment Department of Hanoi City
Tax code No.		1800348038-001
Tel		(84-4) 664 3251
Fax		(84-4) 664 3262
Chief of branch		Ms. VU NHU QUYNH
2. Hochiminh City branch
Address		No. 93 Nguyen Van Thu Str, Da Kao Ward, Dist.1, Hochiminh City
Country		Vietnam
Business registration		No 02.000177.CN57
Issued on		April 11^th, 2000
Issued by		Planning and Investment Department of Hochiminh City
Tax code No.		1800348038-002
Tel		(84-8) 910 2244
Fax		(84-8) 910 2233
Chief of branch		Mr. PHAN BA NGOC PHUONG
Note: Beside, the subject is constructing a branch in Lam Dong Province and predict will operate in next some months this year - 2007.
DIRECTORS
1. NAME		Mr. VO MINH TAN
Position		Chairman
Qualification		Management
Resident		No.101 Phan Dinh Phung Str, Tan An Ward, Ninh Kieu Dist, Can Tho City
Nationality		Vietnamese
2. NAME		Mr. PHAN THE HUNG
Position		Managing Director (Legal representative)
Qualification		Management
Date of birth		1959
ID No		360000540
Resident		No. 9/18, Cach Mang Thang Tam Str., An Hoa Ward, Can Tho City
Nationality		Vietnamese
3. NAME		Mr. NGUYEN NGOC SON
Position		Deputy Managing director
Qualification		Bachelor of Economics
Resident		Can Tho City – Can Tho province - Vietnam
Nationality		Vietnamese
BUSINESS NATURE AND ACTIVITIES
Currently, the subject specializes in trading in pesticide and fertilizers.
The subject registered in following activities:
Trading in materials serving production and consumption Trading, producing and processing foodstuff for cattle Packing, doing outwork and making up medicine to protect vegetation, fertilizer Producing and trading chemical, finished product to exterminate insect, sterilize using in domestic and health. Producing, trading and processing agricultural products Producing, doing business and making up garment industry and fine-arts handicraft Trading in veterinary medicine Manufacturing and trading in all kinds of seeds
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports from Asian countries such as Malaysia and Indonesia.
EXPORT: The subject doesn’t export.
BANKERS
1. BANK FOR FOREIGN TRADE OF VIETNAM (CAN THO BRANCH)
Address			No. 7, Hoa Binh Boulevard, Can Tho City, Can Tho Province
Tel			(84-71) 824 354
Telex			711044 VCBCT-VT
Swift			BFTVVNVX011
Account No.			011 137 0020424
2. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM (CAN THO BRANCH)
Address			No. 29-31, Chau Van Liem Str, Can Tho City, Can Tho Province
Tel			(84-71) 820650
3. INDOVINA BANK (CAN THO BRANCH)
Address			No. 59A, Phan Dinh Phung Str, Can Tho City, Can Tho Province
Tel			(84-71) 827368
Fax			(84-71) 827361
Telex			711045 IVB CT-VT
SHAREHOLDER (S)
The Subject is a Limited Liability Company, following is its current shareholders:
1. NAME		Mr. VO MINH TAN
Position		Chairman
Qualification		Management
Resident		No. 101, Phan Dinh Phung Str, Tan An Ward, Ninh Kieu Dist, Can Tho City
Nationality		Vietnamese
Share		48.36%
Value		45,916,000,000 VND
2. NAME		Mr. VO VIET THANH
Position		Shareholder
Resident		No. 164/3, 3 Thang 2 Str, Ninh Kieu Dist, Can Tho City
Nationality		Vietnamese
Share		10.87%
Value		10,324,500,000 VND
3. NAME		Ms. NGUYEN THI PHUONG HUYEN
Position		Shareholder
Resident		No. 712L, Le Hong Phong Str, Ward 12, Dist 10, Hochiminh City
Nationality		Vietnamese
Share		40.77%
Value		38,709,500,000 VND
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Fairly
Liquidity	Fairly good
Previous Payment Status	Average
Current Payment Status	Positively
Past Financial Situation	Fairly
Current Financial Situation	Average
Legal Action	No recorded
Bankruptcy	No recorded
Reputation	Fairly
Methods of Payment	Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C), by telegraphic transfer (T/T) or barter
Sales methods	Directly to clients or through its agents
FINANCIAL DATA
BALANCE SHEET
Unit: Million VND
Balance Sheet Date				31/12/2005	31/12/2004	31/12/2003	31/12/2002
Number of Weeks				52	52	52	52
ASSETS
A. Current assets & Short term Investment				263,074	255,595	144,392	172,063
I. Cash and cash equivalents				3,776	3,983	6,004	23,042
II. Short term investment				0	0	0	0
III. Receivables				128,551	147,515	79,843	83,100
1. Receivables from customers				117,348	131,711	69,651	77,072
2. Prepaid for providers				3,082	13,398	8,263	3,735
3. Value-added tax deducted				0	2,253	1,890	1,795
4. Internal receivables				0	0	0	0
5. Other receivables				8,121	153	39	498
6. Provision for bad receivables				0	0	0	0
IV. Inventory				130,681	101,144	55,085	62,819
1. Purchased goods in transit				0	0	-	-
2. Inventory raw materials				12,245	24,073	4,862	3,847
3. Inventory appliance				1,276	1,176	631	94
4. Cost of production and business in process				1,011	844	756	0
5. Inventory finished products				3,396	346	162	0
6. Inventory cargoes				112,753	74,705	48,674	58,878
7. Entrusted goods for sale				0	0	0	0
8. Provision for devaluation of stocks				0	0	0	0
V. Other current assets				66	2,953	3,460	3,102
1. Advances				0	2,948	3,455	500
2. Prepaid expenses				66	0	0	0
3. Pending expenses for transfer				0	0	0	0
4. Pending assets				0	0	0	0
5. Hypothecation, collateral and short run collateral				0	5	5	2,602
VI. Administrative				0	0	0	0
B. Fixed assets & Long term investment:				141,925	45,050	40,032	28,002
I. Fixed assets				127,512	36,688	33,562	24,004
1. Tangible fixed assets				44,772	18,688	15,562	6,004
+ Original cost				67,876	31,807	20,418	8,678
+ Accumulated depreciation value				-23,104	-13,119	-4,856	-2,674
2. Fixed assets of financing credit				0	0	0	0
+ Original cost				0	0	0	0
+ Accumulated depreciation value				0	0	0	0
3. Intangible fixed assets				82,740	18,000	18,000	18,000
+ Original cost				82,740	18,000	18,000	18,000
+ Accumulated depreciation value				0	0	0	0
II. Long term investment				6,029	3,153	3	0
1. Long-term securities investment				0	3	3	0
2. Joint-venture capital contribution				6,022	3,150	0	0
3. Other long-term investment				7	0	0	0
4. Provision for long-term investment devaluation				0	0	0	0
III. Capital construction in process				8,226	4,710	5,315	2,963
IV. Other				158	499	1,152	1,035
TOTAL ASSETS				404,999	300,645	184,424	200,065
LIABILITIES
A. Payables				304,114	265,431	156,742	170,421
I. Short term payables				261,647	231,216	126,607	170,421
1. Short-term borrowings				99,752	100,037	50,999	90,166
2. Due long-term liabilities				0	0	0	0
3. Payable to seller				155,745	112,093	71,474	68,200
4. Prepaid for buyer				942	11,794	869	2,364
5. Taxes and accounts dutiable				4,574	6,953	3,127	5,212
6. Employee payments				0	0	23	0
7. Internal payments				0	0	0	0
8. Other payables				634	339	115	4,479
II. Long term payables				41,964	33,343	29,706	0
1. Long-term borrowing				41,964	33,343	29,706	0
2. Long-term loans				0	0	0	0
III. Other liabilities				503	872	429	0
1. Disbursed payable				503	872	429	0
2. Pending assets				0	0	0	0
3. Receipts long-term collateral and deposit				0	0	0	0
B. Owner’s Equity:				100,885	35,214	27,682	29,644
I. Capital and Funds				100,885	35,214	27,682	29,644
1. Working capital				92,000	27,500	27,500	27,500
2. Differences from assets revaluation				0	0	0	0
3. Exchange rate differences				0	0	0	513
4. Business development fund				0	0	0	0
5. Reserved fund				0	0	0	0
6. Retained profit				8,885	7,714	182	1,631
7. Construction capital sources				0	0	0	0
II. Other administrative and fund sources				0	0	0	0
TOTAL LIABILITY AND EQUITY				404,999	300,645	184,424	200,065
PROFIT & LOSE ACCOUNTS
Description				F/Y 2005	F/Y 2004	F/Y 2003	F/Y 2002
Total revenue				717,888	684,364	551,471	487,671
Deducted Items				0	0	0	0
- Discount				0	0	0	0
- Devaluation of sale price				0	0	0	0
- Return of sold goods				0	0	0	0
- Turnover tax, excise tax, import and export duties to be paid				0	0	0	0
1. Net revenue				717,888	684,364	551,471	487,671
2. Original rate of goods for sale				665,009	625,454	515,463	459,370
3. Gross Profit				52,879	58,910	36,008	28,301
4. Sales costs				27,513	25,722	15,299	9,267
5. Enterprise administrative costs				31,406	24,985	14,415	8,688
6. Net income from business activity				-6,040	8,203	6,294	10,346
Income from financial activities				33,845	24,923	12,749	7,039
Costs for financial activities				16,494	12,364	9,271	8,810
7. Net income from financial operation				17,351	12,559	3,478	-1,771
Irregular income				999	900	1,013	763
Irregular expenditure				53	649	320	353
8. Irregular Profit				946	251	693	410
9. Total pre-tax profit				12,257	21,013	10,465	8,985
10. Income tax				3,432	5,884	3,171	3,370
11. After tax profit				8,825	15,129	7,294	5,615
FINANCIAL FACTORS
Description				2005	2004	2003	2002
Current liquidity ratio				1.01	1.11	1.14	1.01
Quick Liquidity ratio				0.51	0.67	0.71	0.64
Inventory circle				5.49	6.77	10.01	7.76
Average receive period				65.36	78.68	52.85	62.20
Utilizing Asset Performance				1.77	2.28	2.99	2.44
Liability/ Total Asset (%)				75.09	88.29	84.99	85.18
Liability/ Owner's equity (%)				301.45	753.77	566.22	574.89
Income before tax/ Total asset (%) ROA				3.03	6.99	5.67	4.49
Income before tax/ Owner's equity (%) ROE				12.15	59.67	37.80	30.31
Income before tax/ Total revenue (%) NPM				1.71	3.07	1.90	1.84
Gross Profit / Total revenue (%) GPM				7.37	8.61	6.53	5.80
INTERPRETATION
The subject is a limited liability company, established in 1999. It specializes in producing of insecticides and fertilizers. The subject’s products are sold in domestic and very popular in Vietnam market. The subject has just moved its office from No. 43 Tan Vu Str., Hung Loi Ward to No.101 Phan Dinh Phung Str, Tan An Ward, Ninh Kieu Dist., Can Tho City. This new location is more convenient for business transactions. Beside, the subject has two branches in Hanoi city and Hochiminh city. At the moment, the subject is constructing a branch in Lam Dong province and expected to go in to operation in next some months of this year - 2007. It has been the sole distributor of Yara company limited (fertilizer firm) in Vietnam since September 30^th, 2004. The subject imports products from some Asian countries such as Malaysia and Indonesia and distributes for domestic demand. Products of the subject are presented in many provinces and cities of Vietnam and it was chosen Vietnamese high quality goods by the consumers in the year 2006. However, its brand name is not really famous. The current business operations of the subject are busy; the position of the subject in the industry is medium. Its premises and facilities are average. The management capability of the subject is relatively good. Its current competitive capability is remarkable. Its current liquidity ratio is fairly good but quick ratio is normal. Inventories turnover and average receivable term are normal. Its turnover and profit capability are relative high. In overview, the subject is an average enterprise. It is operating rather effectively. It is considered to be good for normal business engagements and no caution needed for normal 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%)

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