MIRA INFORM REPORT

Report Date :

22.03.2007

IDENTIFICATION DETAILS

Name :	SOUTHERN FEED TRADING PRODUCE JOINT STOCK COMPANY
Registered Office :	14/9 Road 624, Au Co Street, Ward 10, Tan Binh Dist, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	2005
Legal Form :	Joint Stock Company
Line of Business :	The subject is specializing in producing and trading in feed for cattle, poultry, aquiculture

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

Maximum Credit Limit :	--
Status :	Moderate
Payment Behaviour :	Usually Correct
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	SOUTHERN FEED TRADING PRODUCE JOINT STOCK COMPANY
Vietnamese name	CONG TY CO PHAN THUONG MAI VA SAN XUAT THUC AN CHAN NUOI PHUONG NAM
Trade Name	SOUTHERN FEED TRADING PRODUCE JOINT STOCK COMPANY
Abbreviated Name	SOUTHERN FEED JSC
Type of Business	Joint Stock Company
Founded	2005
Business Registration No.	4103003767
Date of Issuance	August 25^th 2005
Place of Issuance	Planning and Investment Department of Hochiminh City
Registered Capital	2,000,000,000 VND
Tax Code	0303953717
Total Employees	100 employees
Qualification	Normal
ADDRESS
Head Office
Address	14/9 Road 624, Au Co Str, Ward 10, Tan Binh Dist, Hochiminh City
Country	Vietnam
Tel	(84-8) 4258575
Fax	(84-8) 4258574
Branch
Address	A7/3A, Hamlet 1, Vinh Loc B Village, Binh Chanh Dist, Hochiminh City
Country	Vietnam
DIRECTORS
1. NAME	Mr. NGUYEN NGOC HAI
Position	General Director
DOB	November 27^th 1971
ID No.	022540148
Resident	TK34/7 Nguyen Canh Chan Str, Cau Kho Ward, Dist 1, Hochiminh City
Nationality	Vietnamese
2. NAME	Mr. VO TAN THIEN
Position	Vice General Director
ID No.	023857873
Resident	10/C2 Ni Su Huynh Lien Str, Ward 10, Tan Binh Dist, Hochiminh City
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in producing and trading in feed for cattle, poultry, aquiculture.
The subject registered in the following lines of business: Trading in machine, equipment, materials in feed producing industry. Producing and trading in feed for cattle, poultry, aquiculture. Producing and trading materials in textile industry, garment products. Agent for good consignment. Investment Consultancy. Broker Commerce.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports products from many countries in the worlds such as India, Argentina, other Asia and EU countries.
EXPORT: The subject exports material in feed production to Asia countries.
BANKERS
1. ASIA COMMERCIAL JOINT STOCK BANK (ACB BANK)
Address	No.442 Nguyen Thi Minh Khai Str, Ward 5, Dist 3, Hochiminh City
Country	Vietnam
Tel	(84-8) 8334085 - 8395179
Fax	(84-8) 8359156
Telex	813158ACBVT
Swift	ASCBVNVX
2. EASTERN ASIA COMMERCIAL JOINT STOCK BANK – District 10 Branch
Address	No 155 Su Van Hanh Str (extended), Ward 13, Dist 10, Hochiminh City
Country	Vietnam
Tel	((84-8) 8634130 – 8634131 – 8634132
Fax	(84-8) 8654306
Swift	EACBVNVX
SHAREHOLDERS
The subject is a joint stock company. Its shareholder is as follows:
1. NAME	Mr. NGUYEN NGOC HAI
Position	General Director
DOB	November 27^th 1971
ID No.	022540148
Resident	TK34/7 Nguyen Canh Chan Str, Cau Kho Ward, Dist 1, Hochiminh City
Nationality	Vietnamese
Share	40%
Value	800,000,000 VND
2. NAME	Mr. VO TAN THIEN
Position	Vice General Director
ID No.	023857873
Resident	10/C2 Ni Su Huynh Lien Str, Ward 10, Tan Binh Dist, Hochiminh City
Nationality	Vietnamese
Share	50%
Value	1,000,000,000 VND
3. NAME	Mrs. VO THI KIM CUC
Position	Shareholder
ID No.	024075949
Resident	1593 Lac Log Quan Str, Ward 10, Tan Binh Dist, Hochiminh City
Nationality	Vietnamese
Share	10%
Value	200,000,000 VND
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Average
Liquidity	Average
Previous Payments	Normal
Payment status	Normal
Past Financial Situation	Average
Current Financial Situation	Above average
Litigation Data	No recorded
Bankruptcy	No recorded
Public opinion	Normal
Payment Methods	Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C), by telegraphic transfer (T/T).
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date		31/12/2005
Number of weeks		52
ASSETS
A. Working assets & short-term Investment		3,119
I. Cash and cash equivalents		260
II. Short-term investment		0
1. Short-term securities investment		0
2. Other short-term investment		0
3. Provision for short-term investment		0
III. Receivables		2,467
1. Receivables from customers		915
2. Prepayment for providers		110
3. Value-added tax deducted		0
4. Internal receivables		0
5. Other receivables		1,442
6. Provision for bad receivables		0
IV. Inventory		361
1. Purchased goods in transit		0
2. Raw materials		0
3. Instrument, tools		0
4. Cost for production and business in process		0
5. End products		0
6. Goods		361
7. Goods on consignment		0
8. Provision for devaluation of stocks		0
V. Other current assets		31
1. Advances		0
2. Prepaid expenses		31
3. Pending expenses for transfer		0
4. Pending assets		0
5. Mortgage, collateral and short run collateral		0
VI. Administrative		0
1. Administrative expenses for previous year		0
2. Administrative expenses for current year		0
B. Fixed assets & Long term investment		1,014
I. Fixed assets		504
1. Tangible fixed assets		504
+ Original cost		520
+ Accumulated depreciation value		-16
2. Financial leasing fixed assets		0
+ Original cost		0
+ Accumulated depreciation value		0
3. Intangible fixed assets		0
+ Original cost		0
+ Accumulated depreciation value		0
II. Long term investment		0
1. Long-term securities investment		0
2. Joint-venture capital contribution		0
3. Other long-term investment		0
4. Provision for long-term investment devaluation		0
III. Capital construction in process		510
IV. Other		0
TOTAL ASSETS		4,133
LIABILITIES
A. Payable loans		2,324
I. Short term payables		2,324
1. Short-term borrowings		1,000
2. Due long-term liabilities		1,121
3. Payables to supplier		0
4. Prepayment of buyer		8
5. Taxes and accounts dutiable		0
6. Employee payments		36
7. Internal payables		0
8. Other payables		159
II. Long term loans		0
1. Long-term borrowings		0
2. Long-term payables		0
III. Other payables		0
1. Payable expenses		0
2. Pending assets		0
3. Receipts long-term collateral and deposit		0
B. Owner’s Equity		1,809
I. Capital and Funds		1,809
1. Working capital		2,000
2. Differences from asset revaluation		0
3. Exchange rate differences		0
4. Development investment funds		0
5. Reserved funds		0
6. Retained profit		-191
7. Construction capital sources		0
II. Other administrative and fund sources		0
1. Provident funds for unemployment		0
2. Reward and welfare funds		0
3. Management funds of higher level		0
4. Functional operation funds		0
5. Fund sources formed by fixed assets		0
TOTAL LIABILITY AND EQUITY		4,133
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
Description		FY 2005
Total revenue		2,281
Deductions Items		0
- Discount		0
- Devaluation		0
- Return of sold goods		0
- Turnover tax, Luxury tax & Export tax		0
1. Net revenue		2,281
2. Cost of goods sold		2,197
3. Gross Profit		84
4. Sales expenses		108
5. Enterprise administrative expenses		154
6. Net income from business activities		-178
Income from financial activities		0
Expenditure from financial activities		13
7. Net income from financial operation		-13
Irregular income		0
Irregular expenditure		0
8. Irregular Profit		0
9. Total pre-tax profit		-191
10. Income tax		0
11. After tax profit		-191
FINANCIAL FACTORS
Description		FY 2005
Current Liquidity Ratio		1.34
Quick Liquidity Ratio		1.19
Inventory Circle		6.09
Average Receive Period		394.76
Utilizing Asset Performance		0.55
Liability / Total Asset (%)		56.23
Liability / Owner's Equity (%)		128.47
Income Before Tax / Total Asset (%) ROA		-4.62
Income Before Tax / Owner's Equity (%) ROE		-10.56
Income Before Tax / Total Revenue (%) NPM		-8.37
Gross Profit / Total Revenue (%) GPM		3.68
INTERPRETATION ON THE SCORES
Southern Feed Trading Produce Joint Stock Company is a private company that was established in 2005. The subject is now specializing in producing and trading in feed for cattle, poultry, and aquiculture. The materials for production of the subject are imported from many countries in the worlds such as India, Argentina, other Asia and EU countries. Feed products of the subject are served for domestic market. However, the subject also exported materials for feed production to Asia countries. The subject is a newly enterprise in the industry. Its revenue in the first operation year was fair. However, business of the subject hasn’t been stable yet. The subject has still to cope with many difficulties in competition because there’s many bigger companies operating for a long time in the industries, especially foreign companies. Position of the subject is small. Premises and facilities of the subject are average. Its management capability is normal. Managers of the subject are young and active persons. Current financial capability of the subject is not strong. In short, the subject is a newly company, it only has capacity to meet the small credit commitments. 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%)

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