MIRA INFORM REPORT

Report Date :

31.03.2007

IDENTIFICATION DETAILS

Name :	THON TRANG TRADING COMPANY LIMITED
Registered Office :	No.236/17/6 Thai Phien Str, Ward 8, Dist 11, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	2005
Legal Form :	Limited Liability Company
Line of Business :	Trading in fertilizer, pesticide and agent for goods on consignment.

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

Status :	Moderate
Payment Behaviour :	Usually correct
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	THON TRANG TRADING COMPANY LIMITED.
Vietnamese Name	CONG TY TNHH THUONG MAI THON TRANG
Trade Name	THON TRANG CO., LTD
Foundation	2005
Type of Business	Limited Liability Company
Business registration	No 4102030632
Date of Issuance	June 3^rd 2005
Place of Issuance	Planning and Investment Department of Hochiminh City
Registered Capital	2,000,000,000 VND
Tax Code	0303837559
Total Employees	15 employees
Qualification	Normal
ADDRESSES
Registered Head Office
Address	No.236/17/6 Thai Phien Str, Ward 8, Dist 11, Hochiminh City
Country	Vietnam
Transaction Office
Address	No.21 Road 11, Khu Dan Cu An Lac, Binh Tri Dong Ward, Binh Chanh Dist, Hochiminh City
Country	Vietnam
Tel	(84-8) 7517017
Fax	(84-8) 2600983
Email	ngochung@yahoo.com
DIRECTORS
1. NAME	Mr. LA NGOC HUNG
Position	Director
Qualification	Management
Date of birth	June 1^st 1973
ID No	350997567
Date of Issuance	June 1^st 2001
Place of Issuance	Police Station of An Giang Province
Permanent Resident	683 Group 49, Ha Hoang Ho Street, My Xuyen Ward, Long Xuyen Town, An Giang Province, Vietnam
Nationality	Vietnamese
Hand Phone	++84 903904857
BUSINESS NATURE AND ACTIVITIES
The subject specializes in trading in fertilizer, pesticide and agent for goods on consignment.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports most products from Taiwan, China and India.
EXPORT: N/A
BANKERS
1. VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Address	No. 50 Ben Chuong Duong Str, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 8222752 – 8295434
Fax	(84-8) 8294063
Swift	VBAAVNVX
2. EASTERN ASIA COMMERCIAL JOINT STOCK BANK
Address	No. 130 Phan Dang Luu Str, Ward 13, Phu Nhuan Dist, Hochiminh City
Country	Vietnam
Tel	((84-8) 8446739
Fax	(84-8) 9952092
Swift	EACBVNVX
3. SGN COMMERCIAL JOINT STOCK BANK (SACOMBANK)
Address	No. 278 Nam Ky Khoi Nghia Str, Ward 8, Dist 3, Hochiminh City
Country	Vietnam
Tel	(84-4) 9320420 – 9320643
Fax	(84-4) 9322488
Telex	813603SGTT/VT
Swift	SGTTVNVX
SHAREHOLDERS
Thon Trang Co., ltd is a limited liability company. Its shareholders are as follows:
1. NAME	Mr. LA NGOC HUNG
Position	Director
Qualification	Management
Date of birth	June 1^st 1973
ID No	350997567
Date of Issuance	June 1^st 2001
Place of Issuance	Police Station of An Giang Province
Permanent Resident	683 Group 49, Ha Hoang Ho Street, My Xuyen Ward, Long Xuyen Town, An Giang Province, Vietnam
Nationality	Vietnamese
Shares	90 percent
Values	1,800,000,000 VND
2. NAME	Mrs. NGUYEN THI CAM TU
Position	Shareholder
Permanent Resident	683 Group 49, Ha Hoang Ho Street, My Xuyen Ward, Long Xuyen Town, An Giang Province, Vietnam
Nationality	Vietnamese
Shares	10 percent
Values	200,000,000 VND
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	AVERAGE
Liquidity	AVERAGE
Previous Payment Status	NORMAL
Current Payment Status	NORMAL
Past Financial Situation	NORMAL
Current Financial Situation	AVERAGE
Legal Action	NO RECORD
Bankruptcy	NO RECORD
Reputation	NORMAL
Modes of Payment	DIRECT PAYMENT OR THROUGH ITS CORRESPONDING BANK. FOREIGN REMITTANCE BY LETTER OF CREDIT (L/C), DOCUMENT AGAINST PAYMENT (D/P), DOCUMENT AGAINS ACCEPTANT (D/A), BY TELEGRAPHIC TRANSFER (T/T).
Sales methods	DIRECT TO CLIENTS.
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date			31/12/2005
ASSETS
A. Working assets & short-term Investment			5,012
I. Cash and cash equivalents			394
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			748
1. Receivables from customers			490
2. Prepayment for providers			0
3. Value-added tax deducted			0
4. Internal receivables			0
5. Other receivables			258
6. Provision for bad receivables			0
IV. Inventory			3,870
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			3,870
7. Goods on consignment			0
8. Provision for devaluation of stocks			0
V. Other current assets			0
1. Advances			0
2. Prepaid expenses			0
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			14
I. Fixed assets			14
1. Tangible fixed assets			14
+ Original cost			15
+ Accumulated depreciation value			-1
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			0
IV. Other			0
TOTAL ASSETS			5,026
LIABILITIES
A. Payable loans			3,104
I. Short term payables			3,104
1. Short-term borrowings			467
2. Due long-term liabilities			0
3. Payables to supplier			2,638
4. Prepayment of buyer			0
5. Taxes and accounts dutiable			-1
6. Employee payments			0
7. Internal payables			0
8. Other payables			0
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			1,922
I. Capital and Funds			1,922
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			-78
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			5,026
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
Description		FY 2005
Total revenue		2,453
Deductions Items		0
- Discount		0
- Devaluation		0
- Return of sold goods		0
- Turnover tax, Luxury tax & Export tax		0
1. Net revenue		2,453
2. Cost of goods sold		2,405
3. Gross Profit		48
4. Sales expenses		0
5. Enterprise administrative expenses		126
6. Net income from business activities		-78
Income from financial activities		0
Expenditure from financial activities		0
7. Net income from financial operation		0
Irregular income		0
Irregular expenditure		0
8. Irregular Profit		0
9. Total pre-tax profit		-78
10. Income tax		0
11. After tax profit		-78
FINANCIAL FACTORS
Description		FY 2005
Current Liquidity Ratio		1.61
Quick Liquidity Ratio		0.37
Inventory Circle		0.62
Average Receive Period		111.30
Utilizing Asset Performance		0.49
Liability / Total Asset (%)		61.76
Liability / Owner’s Equity (%)		161.50
Income Before Tax / Total Asset (%) ROA		-1.55
Income Before Tax / Owner’s Equity (%) ROE		-4.06
Income Before Tax / Total Revenue (%) NPM		-3.18
Gross Profit / Total Revenue (%) GPM		1.96
INTERPRETATION
Thon Trang is a limited liability company. It has just been established in June 2005. So far, it has been operated for more than one year. The subject specializes in trading in fertilizer, pesticide and agent for goods on consignment. Although the subject has just been operated in the industry for a short time, its business activities are fairly busy and developing. The market share of the subject is rather large. It has created a distribution network in 11 provinces in the Mekong river delta. It is in the progress of expanding its market to northern provinces. The subject imports products from many foreign countries for its trade such as China, India, Taiwan… The premises and facilities of the subject are small. Its management capability is acceptable. The subject is operating at the small scale. It has to face with many difficulties in competing with other competitors. Its competitive capability is still humble. According to the reported financial statement, subject’s turnover & profitability is not high. Because this is new operating company. After interviewing the subject company, we’re known that subject’s turnover of 2006 is 5 billion VND. In overview, the subject is a new and small scale enterprise. Its prospect of future development is normal. It has capability for medium and small payments. Caution needed for the medium business transaction.
CREDIT INQUIRY 1,500,000 again D/A term
Caution needed! Subject is new operating company, high risk for such big amount with DA term.

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