MIRA INFORM REPORT

Report Date :

29.11.2007

IDENTIFICATION DETAILS

Name :	THAI PHONG TRADING COMPANY LIMITED
Registered Office :	No. 95 Trang Tu Str, Ward 14, Dist 5, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	1993
Legal Form :	Liability Limited Company
Line of Business :	Trading in chemical. Trading in materials and equipments for agricultural, forestry and aquatic industry Trading in agricultural products Trading in consumer goods, construction material, motorbikes

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	THAI PHONG TRADING COMPANY LIMITED
Vietnamese name	CONG TY TNHH THUONG MAI THAI PHONG
Transaction Name	THAI PHONG TRADING CO., LTD
Founded	1993
Type of Business	Liability Limited Company
Establishment decision	No. 169/Gp-UB
Issued by	People’s Committee of Hochiminh City
Issued on	February 18^th, 1993
Business registration No	0480611
Issued by	February 23^rd, 1993
Issued on	Economic Arbitration Board of Hochiminh City
Current Registered Capital	3,000,000,000 VND
Former registered capital	350,000,000 VND
Tax Code	0301345738
Total Employees	71 Employees (Including staffs & workers in office and factory)
Qualification	Average
ADDRESSES
Head Office
Address	No. 95 Trang Tu Str, Ward 14, Dist 5, Hochiminh City
Country	Vietnam
Tel	(84-8) 856 7327, 857 0896
Fax	(84-8) 855 6158
Email	thaiphong_co_95yahoo.com
Note: The subject changed its head office to this current address since 1994.
Former Head Office
Address	No. 75, Pham Dinh Ho Str, Ward 2, Dist 6, Hochiminh City
Country	Vietnam

Thai Phong Branch (outdoing workshop)
New address	Nhon Trach Industrial Park I, Nhon Trach Dist, Dong Nai Province
Former Address	Phuoc Thien Commune, Nhon Trach Dist, Dong Nai Province
Operation License	No. 308628
Issued on	October 14^th, 1997
Tel	(84-61) 848 805
Fax	(84-61) 848 623
Chief of branch	Mr. Ly Ba Tran
Employees	40 persons
Total Investment Capital	1 Millions USD
DIRECTORS
1. NAME	Mr. HUYNH VAN THAI
Position	Director
Date of birth	June 24^th, 1966
I.D.No	022532689
Registered Resident	No. 16, Le Thi Bach Cat Str, Ward 11, Dist 11, Hochiminh City
Current resident	No. 88, Le Thi Bach Cat str, Ward 13, Dist 11, Hochiminh City
Nationality	Vietnamese
2. NAME	Mr. HUYNH XUAN QUANG
Position	Deputy Director
Qualification	Management
Date of birth	1964
ID No	021908120
Issued on	November 5^th, 1992
Issued by	Police station of Hochiminh City
Resident	No.154, Le Thi Bach Cat str, Ward 11, Dist 11, Hochiminh City
Nationality	Vietnamese
3. NAME	Mr. NGUYEN VAN THONG
Position	Sales manager
Resident	Hochiminh City
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES
The subject is specializing in:
· Doing out work, packaging and trading pesticide, mosquito repellent, herbicide, stimulant, regulate plant growth substance · Trading in chemical. · Trading in materials and equipments for agricultural, forestry and aquatic industry · Trading in agricultural products · Trading in consumer goods, construction material, motorbikes.
Subject’s products include leaf fertilizer: tipomic 301 and seaweed super growth, and stimulant, additives, regulate plant growth substance: Beta Noa, Naa, Humate, potassium, Acid, Humic and others.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports raw materials from India, USA, Japan, Canada, China and Taiwan to do out work and distribute in domestic market.
EXPORT: N/A
BANKERS
1. VIETNAM ASIA COMMERCIAL JOINT STOCK BANK
Address	No 115 - 121, Nguyen Cong Tru Str, Nguyen Thai Binh Ward, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 8292497
Fax	(84-8) 8230336
2. VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT - SAIGON BRANCH
Address	No. 7 Bis, Ben Chuong Duong Str, Nguyen Thai Binh Ward, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 8213669 - 8214589
Fax	(84-8) 8211953
Swift	VBAAVNVX806

SHAREHOLDER(S)
The Subject is a liability limited company. Following are its shareholders:
1. NAME	Mr. HUYNH VAN THAI
Position	Director
I.D.No	022032689
Date of birth	June 24^th, 1966
Current resident	No. 88, Le Thi Bach Cat str, Ward 13, Dist 11, Hochiminh City
Nationality	Vietnamese
Share	41,667%
Values	1,250,000,000 VND
2. NAME	Mr. HUYNH XUAN QUANG
Position	Deputy Director
Qualification	Management
Date of birth	1964
ID No	021908120
Issued on	November 5^th, 1992
Issued by	Police station of Hochiminh City
Resident	No. 154, Le Thi Bach Cat str, Ward 11, Dist 11, Hochiminh City
Nationality	Vietnamese
Share	33,333%
Values	1,000,000,000 VND
3. NAME	Ms. HUYNH THI NGUYEN
Position	Shareholder
I.D.No	022730207
Date of birth	May 18^th, 1971
Resident	No. 40, Quan Su Str, Ward 11, Dist 11, Hochiminh City
Nationality	Vietnamese
Share	25%
Values	750,000,000 VND
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Good
Liquidity	Normal
Current Payment Status	Normal
Previous Payments	Average
Past Financial Situation	Normal
Current Financial Situation	Positive
Legal Action	No Recorded
Bankruptcy	No Recorded
Reputation	Good
Mode of Payment	Direct payment through its corresponding bank. Most of payment are made by T/T and L/C.
Sales methods	Direct to its client
FINANCIAL DATA
Subject's latest completed financial statement is not available. Following are financial highlights of 2006
BALANCE SHEET
Unit: 1,000,000 VND
Description			2006
Current assets & Short-term investment
12,529
Fixed assets & Long-term investment			4,941
Total assets			17,470
Payable			14,669
Owner’s Equity			2,801
Total Liability and Equity			17,470
PROFIT & LOSE STATEMENT
Description			FY 2006
Total revenue			15,864
Deduction Items			137
Net revenue			15,727
Net income from business activities			1,104
Net income from financial operation			-892
Irregular Profit			0
Total pre-tax profit			212
Following are completed financial statements of 2005,2004
BALANCE SHEET
Balance Sheet Date		31/12/2005	31/12/2004
Number of Weeks		52	52
A. Current assets & Short term Investment		11,649	8,622
I. Cash and cash equivalents		468	652
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		4,787	1,906
1. Receivables from customers		4,294	1,581
2. Prepaid for providers		257	0
3. Value-added tax deducted		229	206
4. Internal receivables		0	0
5. Other receivables		7	119
6. Provision for bad receivables		0	0
IV. Inventory		6,229	5,391
1. Purchased goods in transit		0	0
2. Inventory raw materials		4,375	2,977
3. Inventory appliance		1	29
4. Cost for production and business in process		180	29
5. Inventory finished products		1,655	2,172
6. Inventory cargoes		18	184
7. Entrusted goods for sale		0	0
8. Provision for devaluation of stocks		0	0
V. Other current assets		165	673
1. Advances		0	0
2. Prepaid expenses		165	673
3. Pending expenses for transfer		0	0
4. Pending assets		0	0
5. Hypothecation, collateral and short run collateral		0	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		4,024	3,860
I. Fixed assets		4,024	3,860
1. Tangible fixed assets		4,024	3,860
+ Original cost		6,032	5,458
+ Accumulated depreciation value		-2,008	-1,598
2. Fixed assets of financing credit		0	0
+ Original cost		0	0
+ Accumulated depreciation value		0	0
3. Intangible fixed assets		0	0
+ Original cost		0	0
+ Accumulated depreciation value		0	0
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. Capital construction in process		0	0
IV. Other		0	0
TOTAL ASSETS		15,673	12,482
A. Payables		13,007	9,860
I. Short term payables		12,138	9,230
1.Short-term borrowings		5,686	4,775
2. Due long-term liabilities		0	0
3. Payable to seller		5,797	3,810
4. Prepayment for buyer		27	0
5. Taxes and accounts dutiable		-200	0
6. Employee payments		0	0
7. Internal payments		0	615
8. Other payables		828	30
II. Long term payables		869	600
1. Long-term borrowing		869	600
2. Long-term loans		0	0
III. Other liabilities		0	30
1. Disbursement payable		0	0
2. Pending assets		0	0
3. Receipts long-term collateral and deposit		0	30
B. Owner’s Equity		2,666	2,622
I. Capital and Funds		2,666	2,621
1. Working capital		3,000	3,000
2. Differences from assets revaluation		0	0
3. Exchange rate differences		0	-11
4. Business development fund		0	0
5. Reserved fund		0	0
6. Retained profit		-334	-368
7. Construction capital sources		0	0
II. Other administrative and fund sources		0	1
1. Provident funds for unemployment		0	0
2. Welfare and reward funds		0	1
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		15,673	12,482

PROFIT & LOSE ACCOUNTS
Description	F/Y 2005	F/Y 2004
Total revenue	28,344	11,313
Export Turnover	580	0
Deductions Items	0	25
- Discount	0	0
- Devaluation of sale price	0	0
- Return of sold goods	0	25
- Turnover tax, excise tax, import and export duties to be paid	0	0
1. Net revenue	28,344	11,288
2. Original rate of goods for sale	26,141	10,324
3. Combined Profit	2,203	964
4. Sales costs	762	317
5. Enterprise administrative costs	808	557
6. Net income from business activity	633	90
Income from financial activities	11	4
Costs for financial activities	625	146
7. Net income from financial operation	-614	-142
Irregular income	15	59
Irregular expenditure	0	0
8. Irregular Profit	15	59
9. Total pre-tax profit	34	7
10. Income tax	0	2
11. After tax profit	34	5
FINANCIAL FACTORS
Description	2005	2004
Current Liquidity Ratio	0.96	0.93
Quick Liquidity Ratio	0.45	0.35
Inventory Circle	4.50	2.54
Average Receivable Period (days)	61.64	61.63
Utilizing Asset performance	1.81	0.90
Liabilities / Total Assets (%)	82.99	78.99
Liabilities / Owner’s Equity (%)	487.88	376.05
Income before tax/Total assets (%) ROA	0.22	0.06
Income before tax / Owner’s Equity (%) ROE	1.28	0.27
Income before tax/Total revenues (%) NPM	0.12	0.06
Gross profit /Total revenues (%) GPM	7.77	8.52
INTERPRETATION
Thai Phong Trading Company Limited is a small liability limited company operating as a family company. The subject was established in 1993 with business items of trading in pesticide and material, equipments of agricultural, forestry and aquatic industry. In 1995, the subject expanded its business operation by investing to build a factory for doing out work of pesticide with total investment capital of 01 million USD in Nhon Trach district of Dong Nai province, a nearby province of Hochiminh city. The subject’s products are fairly diversified, including leaf fertilizer tipomic 301 and seaweed super-growth, and stimulant, regulates plant growth substance: beta noa, naa, humate, potassium, acid humic and other additives. The subject imports materials to do out work and distribute to domestic market. The raw materials were imported from India, Japan, USA, Canada, China and Taiwan. The subject currently focuses on doing business in inland market. Its market share is normal. However, the subject’s business operation at this moment is busy. At this time, the subject has 100 agents across the country distributing products for agricultural fields. According to the reported financial statement, the subject’s situation is not much healthy. Its turnover capability is reduced in last year. However, after interview the subject, we know that the subject is operating rather effectively and it is on the way of development. It is getting supports from the banks. There is no sign of delay in payment.
CREDIT INQUIRY: 1,500,000 USD D/A
This credit inquiry is too big for the Subject. The guarantee by the bank is necessary.

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