MIRA INFORM REPORT

Report Date :

06.11.2007

IDENTIFICATION DETAILS

Name :	C.P VIETNAM LIVESTOCK COMPANY LTD
Registered Office :	No.2, 2A Str, Lot 39, Bien Hoa 2 Industrial Zone, Bien Hoa City, Dong Nai Province
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	1993
Legal Form :	Foreign Invested Company
Line of Business :	Animal feed (pig, chicken, duck, bird and shrimp …) Livestock farming (Breeding hogs, broilers, chickens, shrimp …) Processing food from meat, frozen food from shrimp Supply many kinds of seed corn

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name		C.P VIETNAM LIVESTOCK COMPANY LTD
Vietnamese name		CONG TY TNHH CHAN NUOI C.P VIET NAM
Trade Name		C.P VIETNAM LIVESTOCK CO., LTD
Type of Business		Foreign Invested Company
Founded		1993
Original Investment License		No. 545/GP
Issued on		March 11th, 1993
Issued by		Ministry of Planning and Investment
Re- issued License		No. 545A/GP
Issued on		July 22^nd 1996
Issued by		Ministry of Planning and Investment
Current Investment License		No. 545A/GPDC 20
Issued on		September 01^st 2006
Issued by		Ministry of Planning and Investment
New Investment Capital		344,030,000 USD
Former Investment Capital		330,000,000 USD
Legal Capital		46,985,000 USD
Tax Code		No. 3600224423
Total Employees		3,689 persons
Qualification		Qualified
ADDRESS
1. Head Office & Animal Feed Factory No.01
Address		No.2, 2A Str, Lot 39, Bien Hoa 2 Industrial Zone, Bien Hoa City, Dong Nai Province
Country		Vietnam
Tel		(84-613) 836251 / 836258
Fax		(84-613) 836086
Website		www.cp.com.vn
Note: The given tel number (84-61) 8362518 is not correct.
2. Aquatic Products Processing Factory (Shrimp) and Animal Feed Factory No.02
Address		Bau Xeo industrial zone, Song Trau commune, Trang Bom Dist, Dong Nai Province
Country		Vietnam
Tel		(84-613) 921502
Fax		(84-613) 921514
Email		vitthawut@cp.com.vn
3. Animal Feed Factory No.03
Address	Xuan Mai Town, Chuong My Dist., Ha Tay Province
Country	Vietnam
Tel	(84-34) 840 501/2/3/4/5/6/7/8
Fax	(84-34) 840 416
Email	Cpm01@hn.vnn.vn
Note: This factory was established in 1996, the owner is CHAROEN POKPHAND
4. Animal Raising Equipment Factory (KPI)
Address		2A Str, Lot 39, Bien Hoa Industrial Zone 2, Bien Hoa City, Dong Nai Province
Country		Vietnam
Tel		(84-61) 836251 / 836629
Fax		(84-61) 836086 / 836631
5. Meat Processing Factory
Address		No 11, Lot 13, 19A Str, Bien Hoa 2 Industrial Zone, Bien Hoa City, Dong Nai Province
Country		Vietnam
Tel		(84-613) 991034 -7
Fax		(84-613) 991020
Email		nhamayxucxich@cp.com.vn
6. C.P Seed Corn Factory
Address		No 49/1, Phu Quy II hamlet, La Nga, Dinh Quan, Dong Nai Province
Country		Vietnam
Tel		(84-613) 853 584 -7
Fax		(84-613) 853588
Email		cpseeds_langa@cp.com.vn
7. Rep Office in Ho Chi Minh City
Address		151 Xo Viet Nghe Tinh Str, Binh Thanh Dist, Hochiminh city
Country		Vietnam
Tel		(84-8) 8404504- 8999963 – 8996245
Fax		(84-8) 8401250
Besides, the subject also has many other factories (hatchery, shrimp feed mill, shrimp breeding) in Dong Nai, Tien Giang, Ha Tay, Can Tho, Lam Dong, Ba Ria Vung Tau…
DIRECTORS
1. NAME		Mr. PRASERT POONGKUMARN
Position		Chairman of Management Board
Qualification		Management
Nationality		Thailand
2. NAME		Mr. SOOKSUNT JIUMJAISWANG LERG
Position		General Director of CP Vietnam.
Qualification		Management
Nationality		Thailand
3. NAME		Mr. SAWANG CHANPRASERT
Position		Vice General Director of CP Vietnam.
Qualification		Management
Nationality		Thailand
4. NAME		Mr. CHAMNAN WANGAKKARRANGKUL
Position		Vice general director of CP Vietnam
Qualification		Management
Nationality		Thailand
5. NAME		Mr. CHAINAN NUPHET
Position		Vice general director of CP Vietnam
Qualification		Management
Nationality		Thailand
6. NAME		Mr. ADISAK TO - SAKUL
Position		Vice general director of CP Vietnam
Qualification		Management
Nationality		Thailand
BUSINESS NATURE AND ACTIVITIES
The subject operates in many lines of business:
- - Animal feed (pig, chicken, duck, bird and shrimp …) - - Livestock farming (Breeding hogs, broilers, chickens, shrimp …) - - Processing food from meat, frozen food from shrimp - - Supply many kinds of seed corn
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports materials from Thailand, China, India, Argentina …
EXPORT: The subject supplies its products to United State, Japan, Australia …
BANKERS
1. VIETNAM INCOMBANK - DONG NAI BRANCH
Address		No. 77D Hung Dao Vuong Str, Trung Dung Ward, Bien Hoa City - Dong Nai Province
Country		Vietnam
Tel		(84-613) 946033
Fax		(84-613) 819178
2. VIETCOMBANK - DONG NAI BRANCH
Address		No. 116 –118 April 30^th Str, Quyet Thang Ward, Bien Hoa City - Dong Nai Province
Country		Vietnam
Tel		(84-613) 822575
Fax		(84-613) 946513
3. 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 No		(84-8) 8359156
Telex		813158ACBVT
Swift		ASCBVNVX
4. ANZ BANK
Address		No. 11 Me Linh Square, Ben Nghe Ward, Dist 1, Hochiminh city
Country		Vietnam
Tel		(84-8) 8299319
Fax		(84-8) 8299316
5. CITI BANK - BRANCH IN HOCHIMINH CITY
Address		No. 115 Nguyen Hue Str, Ben Nghe Ward, Dist 1, Hochiminh city
Country		Vietnam
Tel		(84-8) 8242118
Fax		(84-8) 8242267
Swift		CITIVNVXHCM
SHAREHOLDERS
The subject is a 100% Foreign invested company. Its investor is as follows:
Name		BANGKOK FEEDMILL CO., LTD
Office of Public Relations		OFFICE OF CORPORATE COMMUNICATIONS AFFAIRS CHAROEN POKPHAND GROUP
Address		313 C.P tower, 12^thFloor, Silom, Bangrak, Bangkok 10500.
Country		Thailand
Tel		(66-2) 625 8000 ext 8127- 8130
Fax		(66-2) 638 2741
Email		cp@cpthailand.com
Shares		100%
FINANCIAL DATA
BALANCE SHEET
Unit: Million VND
Balance sheet date			31/12/2006	31/12/2005	31/12/2004	31/12/2003
Number of weeks			52	52	52	52
ASSETS
A. Working assets & short-term Investment			1,387,936	1,220,782	920,896	895,927
I. Cash and cash equivalents			111,910	107,469	41,459	40,338
II. Short-term investment			0	0	0	0
1. Short-term securities investment			0	0	0	0
2. Other short-term investment			0	0	0	0
3. Provision for short-term investment			0	0	0	0
III. Receivables			199,288	232,095	171,391	194,844
1. Receivables from customers			199,288	205,944	141,471	169,698
2. Prepayment for providers			0	0	0	0
3. Value-added tax deducted			0	0	29,214	20,426
4. Internal receivables			0	0	0	0
5. Other receivables			0	26,151	706	4,720
6. Provision for bad receivables			0	0	0	0
IV. Inventory			1,030,830	872,277	680,829	644,668
1. Purchased goods in transit			0	0	0	0
2. Raw materials			0	0	0	0
3. Instrument, tools			0	0	0	0
4. Cost for production and business in process			0	0	0	0
5. End products			0	0	0	0
6. Goods			1,030,830	872,277	680,829	644,668
7. Goods on consignment			0	0	0	0
8. Provision for devaluation of stocks			0	0	0	0
V. Other current assets			45,908	8,941	27,217	16,077
1. Advances			12,434	0	8,845	5,125
2. Prepaid expenses			24,570	8,941	9,725	5,127
3. Pending expenses for transfer			0	0	2,563	1,962
4. Pending assets			8,904	0	0	0
5. Mortgage, collateral and short run collateral			0	0	6,084	3,863
VI. Administrative			0	0	0	0
1. Administrative expenses for previous year			0	0	0	0
2. Administrative expenses for current year			0	0	0	0
B. Fixed assets & Long term investment			775,351	646,394	636,389	678,831
I. Fixed assets			736,219	620,636	594,540	584,929
1. Tangible fixed assets			736,219	620,636	594,540	584,929
+ Original cost			1,360,995	1,144,147	1,023,570	927,292
+ Accumulated depreciation value			-624,776	-523,511	-429,030	-342,363
2. Financial leasing fixed assets			0	0	0	0
+ Original cost			0	0	0	0
+ Accumulated depreciation value			0	0	0	0
3. Intangible fixed assets			0	0	0	0
+ Original cost			0	0	0	0
+ Accumulated depreciation value			0	0	0	0
II. Long term investment			0	0	0	0
1. Long-term securities investment			0	0	0	0
2. Joint-venture capital contribution			0	0	0	0
3. Other long-term investment			0	0	0	0
4. Provision for long-term investment devaluation			0	0	0	0
III. Capital construction in process			18,007	7,052	26,107	73,640
IV. Other			21,125	18,706	15,742	20,262
TOTAL ASSETS			2,163,287	1,867,176	1,557,285	1,574,758
LIABILITIES
A. Payable loans			988,437	1,027,536	859,302	977,122
I. Short term payables			923,823	1,027,536	815,854	939,691
1. Short-term borrowings			684,783	826,326	734,465	760,003
2. Due long-term liabilities			169,367	0	0	66,000
3. Payables to supplier			9,004	132,428	74,818	108,608
4. Prepayment of buyer			-12,786	6,403	6,456	7,037
5. Taxes and accounts dutiable			12,211	14,758	-6,264	-6,287
6. Employee payments			53,983	12,168	6,299	3,732
7. Internal payables			0	0	0	0
8. Other payables			7,261	35,453	80	598
II. Long term loans			64,614	0	0	0
1. Long-term borrowings			63,300	0	0	0
2. Long-term payables			1,314	0	0	0
III. Other payables			0	0	43,448	37,431
1. Payable expenses			0	0	35,944	25,909
2. Pending assets			0	0	0	0
3. Receipts long-term collateral and deposit			0	0	7,504	11,522
B. Owner’s Equity			1,174,850	839,640	697,983	597,636
I. Capital and Funds			1,174,850	839,640	697,983	597,636
1. Working capital			648,941	344,949	344,949	344,949
2. Differences from asset revaluation			0	0	0	0
3. Exchange rate differences			0	0	0	0
4. Development investment funds			0	0	0	0
5. Reserved funds			0	0	0	0
6. Retained profit			525,909	494,691	353,034	252,687
7. Construction capital sources			0	0	0	0
II. Other administrative and fund sources			0	0	0	0
1. Provident funds for unemployment			0	0	0	0
2. Reward and welfare funds			0	0	0	0
3. Management funds of higher level			0	0	0	0
4. Functional operation funds			0	0	0	0
5. Fund sources formed by fixed assets			0	0	0	0
TOTAL LIABILITY AND EQUITY			2,163,287	1,867,176	1,557,285	1,574,758
PROFIT & LOSE STATEMENT
Description			FY 2006	FY 2005	FY 2004	FY 2003
Total revenue			4,702,642	4,073,702	3,082,983	3,017,604
Deductions Items			58,337	20,422	58,853	61,472
- Discount			58,337	20,422	54,952	39,622
- Devaluation			0	0	0	0
- Return of sold goods			0	0	3,901	21,850
- Turnover tax, Luxury tax & Export tax			0	0	0	0
1. Net revenue			4,644,305	4,053,280	3,024,130	2,956,132
2. Cost of goods sold			3,861,207	3,551,142	2,717,499	2,774,647
3. Gross Profit			783,098	502,138	306,631	181,485
4. Sales expenses			113,873	82,502	61,974	55,805
5. Enterprise administrative expenses			80,773	75,614	59,862	50,358
6. Net income from business activities			588,452	344,022	184,795	75,322
Income from financial activities			3,647	3,658	3,343	3,450
Expenditure from financial activities			70,114	72,499	72,375	56,461
7. Net income from financial operation			-66,467	-68,841	-69,032	-53,011
Irregular income			6,351	5,058	12,402	2,919
Irregular expenditure			131,145	114,750	27,818	85,304
8. Irregular Profit			-124,794	-109,692	-15,416	-82,385
9. Total pre-tax profit			397,191	165,489	100,347	-60,074
10. Income tax			61,980	0	0	5,309
11. After tax profit			335,211	165,489	100,347	-65,383
FINANCIAL FACTORS
Description			FY 06	FY 05	FY 04	FY 03
Current liquidity ratio			1.50	1.19	1.13	0.95
Quick Liquidity ratio			0.39	0.34	0.29	0.27
Inventory circle			4.06	4.57	4.10	4.30
Average receive period			15.66	20.90	20.69	24.06
Utilizing Asset Performance			2.15	2.17	1.94	1.88
Liability/ Total Asset (%)			45.69	55.03	55.18	62.05
Liability/ Owner's equity (%)			84.13	122.38	123.11	163.50
Income before tax/ Total asset (%) ROA			18.36	8.86	6.44	-3.81
Income before tax/ Owner's equity (%) ROE			33.81	19.71	14.38	-10.05
Gross Profit / Total revenue (%) GPM			8.45	4.06	3.25	-1.99
Income before tax/ Total revenue (%) NPM			16.65	12.33	9.95	6.01
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Fairly good
Liquidity		Average
Payments		Fair Prompt
Financial Situation		Fairly good
Development trend		Good
Litigation Data		No recorded
Bankruptcy		No recorded
Payment Method		TT, L/C
Sale Method		Supplying for agents, food manufacturers, suppliers
INTERPRETATION
Charoen Pokphand Group (C.P.Group) was established in 1921 in Thailand. The group has diversified its business into nine business lines: Agro-industry business, Agri-industry business, Aquaculture business, International trading, Marketing and distribution, Petrochemicals, Real estate and land development, Automotive and industrial products, and Telecommunication. Besides, the group also invests actively in many other countries through out the world such as China, Indonesia, Malaysia, Singapore, India, Vietnam, Turkey, and so on. C.P. Group has over 250 individual companies in over 20 countries in the world, in which 15 are listed on stock exchanges in Thailand, Indonesia, Hong Kong, Taiwan, London, New York, China, and Singapore with more than 200,000 employees worldwide. CP Vietnam Livestock Company Limited was established in 1993 as a factory to manufacture foodstuffs for cattle of C.P Group in Thailand. In 1996, the owner of the subject invested in project named farming poultry in Ha Tay Province. These factories were merged under the name “CP Vietnam Livestock Company” belonged to Bangkok Feedmill Co., ltd (C.P. Group) in Thailand. Thanks to the long-term development, the subject is considered as the leading company in producing animal feed and livestock farming in Vietnam. It has factories to manufacture shrimp feed stuff, shrimp farms, animal farms, and poultry farms located in many provinces of Vietnam. Its products hold a large market share. With pig epidemic diseases occurred in 2005, and the poultry flu epidemic re- occurred in some last months of 2006 (in South provinces in Vietnam, such as: Ca Mau, Bac Lieu, Hau Giang, Quang Nam, Quang Ngai…), the sales volume of the subject was also affected much. However, the subject still has turnover from supplying fresh chicken products, fresh egg. These products are supplied for supermarket such as Co-op mart, KFC and exported to overseas… with brand “FRESH MART”. Its output capacity is about 10 tons of chicken and 500,000 chicken eggs per day. Besides, the subject also operates in fields: processing foodstuff from meat (sausage), and frozen food (shrimp). In general, the premises, facilities, and management capacity of the subject are good. Its management board is from Thailand. The subject has received many supports from its parent company. The market share of the subject is large. The subject is also continuously invested in many projects of shrimp farming in Binh Dinh, Quang Tri Provinces and so on. In short, the subject is a large-scale company in animal feed and livestock farming. The business of the subject is fairly development. It has capacity to meet financial commitments. No caution needed for all the normal business transactions.
CREDIT INQUIRY: 1,500,000 USD DA Terms
This credit inquiry is reliable for the Subject.

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%)

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