MIRA INFORM REPORT

Report Date :

06.10.2007

IDENTIFICATION DETAILS

Name :	NATIONAL COMPANY FOR VEGETABLE OILS, AROMAS AND COSMETICS OF VIETNAM
Registered Office :	No. 58 Nguyen Binh Khiem Street, District 1, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	August 12^th, 1976
Legal Form :	State Owned Enterprise
Line of Business :	Producing, trading and exporting Vegetable oils and animal fats, essential oils, aromas, flavor, cosmetics, toiletries. Processing animal feed.

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			NATIONAL COMPANY FOR VEGETABLE OILS, AROMAS AND COSMETICS OF VIETNAM
Vietnamese name			CONG TY DAU THUC VAT HUONG LIEU MY PHAM VIET NAM
Abbreviation			VOCARIMEX
Former name			VEGETABLE OIL SOUTHERN COMPANY
Foundation			August 12^th, 1976
Type of Business			State Owned Enterprise
Decision			No. 452/CNN-TCLD
Date of Issuance			June 06^th 1992
Place of Issuance			Ministry of Industry
Supplemented Decision			No. 835/ QD-TCLD
Date of Issuance			May 27^th 1995
Place of Issuance			Ministry of Industry
Current business registration			No. 4106000106
Date of Issuance			August 18^th, 2005
Place of Issuance			Planning and Investment Department of Hochiminh city
Former business registration			No. 102258
Date of Issuance			June 07^th 1995
Place of Issuance			Planning and Investment Department of Hochiminh city
Date of Re-organization			August 18^th, 2006
Registered Capt before re-organization			59,737,000,000 VND
Current registered Capital			674,533,100,326 VND
Tax Code			0300585984
Total Employees			1,435 employees (including head office, branch and subsidiaries)
Qualification			Average
ADDRESS
Head Office
Address			No. 58 Nguyen Binh Khiem street, District 1, Hochiminh city
Country			Vietnam
Tel			(84-8) 8230281 - 8294513
Fax			(84-8) 8290586
Email			trading@vocarimex.com
Website			www.vocarimex.com
Branch in Hanoi
Address			No. 8 Cat Linh street, Dong Da district, Ha Noi city
Country			Vietnam
Tel			(84-4) 8452721
Fax			(84-4) 7338598
Contact person			Mr. VU MINH DUC
Position			Chief of branch
SUBJECT’S SUBSIDIARIES
1. Tuong An Vegetable Oil Factory:
Address			Phan Huy Ich Str, Tan Binh Dist, Hochiminh City
Country			Vietnam
Tel			(84-8) 8153972
Fax			(84-8) 8153649
Email			tuongan@hcm.vnn.vn
Main products			Vegetable oils such as cooking oil, sesame oil, soybean oil, daisy oil, groundnut oil, and margarine
2. Tan Binh Vegetable Oil Factory:
Address			No. 6 Truong Chinh St, Ward 15, Tan Binh Dist, Hochiminh City
Country			Vietnam
Tel			(84-8) 8151985 - 8153010
Fax			(84-8) 8153226
Email			nakydaco@hcm.vnn.vn
Main products			Varieties of vegetable oil as refined coconut oil, refined peanut oil, refined soybean oil, refined sesame oil, refined palm oil and products serving to process in industry as shortening, margarine.
SUBJECT’S JOINT VENTURES
1. Golden Hope - Nha Be Edible Oils Co. Ltd:
Address			Phu Thuan Ward, District 7, Hochiminh City
Country			Vietnam
Tel			(84-8) 8733005
Fax			(84-8) 8733597
Main products			Cooking oil
2. Cai Lan Oils and Fats Industries Company Ltd (calofic):
Address			Bai Chay Ward, Ha Long City, Quang Ninh Province
Country			Vietnam
Tel			(84-33) 846993
Fax			(84-33) 845971
Established in 1996 by Vocarimex and SITEKI INVESTMENT PTE. LTD, Singapore (Kuok Corporation), to invest in a new vegetable oil processing plant with refining capacity of 120,000 MT/day. Initial total investment: 29.6 million USD; Legal capital: 12.5 million USD; Vietnamese partner; 32% and Foreign partner: 68%
3. LG-Vina Cosmetics Joint-Venture Co., Ltd:
Address			Nhon Trach 2 Industrial Park, Dong Nai Province
Country			Vietnam
Tel			(84-61) 849078
Fax			(84-61) 849079
Established in 1997 by Vocarimex and LG CHEM, Korea, to invest in a factory producing cosmetics and toiletries with capacity of 2.747 million units of products per year. Total investment capital: 9 million USD; Legal capital: 4.5 million USD; Vietnamese partner: 40% and Foreign partner: 60%.
4. Vegetable Oil Packing Joint Stock Company (V.Pack Co):
Address			Tan Thoi Hiep Industrial Zone, Hiep Thanh Ward, Dist 12, Hochiminh City
Country			Vietnam
Business Activity: Sale and producing packing for food industries; Import and export of machine, equipment, materials for packing industries; Commerce Services.
DIRECTORS
1. NAME			Mr. DO NGOC KHAI
Position			New Chairman & General Director
Qualification			Management
Resident			Hochiminh City, Vietnam
Nationality			Vietnamese
2. NAME			Mr. NGUYEN HUU NINH
Position			Deputy General Director
Qualification			Management
Resident			Hochiminh city, Vietnam
Nationality			Vietnamese
3. NAME			Mr. DOAN TAN NGHIEP
Position			Deputy General Director
Qualification			Management
Resident			Hochiminh city, Vietnam
Nationality			Vietnamese
4. NAME			Mr. DUONG ANH TUAN
Position			Planning & Investment Manager
Qualification			Bachelor
Resident			Hochiminh City, Vietnam
Nationality			Vietnamese
5. NAME			Mr. DINH QUOC HUNG
Position			Sale & Import - Export Manager
Qualification			Bachelor
Resident			Hochiminh city, Vietnam
Nationality			Vietnamese
Tel			+ 84 903 939 821
BUSINESS NATURE AND ACTIVITIES
The subject focuses on producing, trading and exporting the products:
Vegetable oils and animal fats, essential oils, aromas, flavor, cosmetics, toiletries, products from oil plants, coconut shell charcoal, specific production - serving machinery, equipment and accessories. Processing animal feed. Producing packaging Operating a port and supplying port services for import and export of vegetable oils and other commodities.
PRODUCTION CAPACITY
CRUDE OIL EXPELLING		73,000 MT OF MATERIALS/YEAR
INCLUDING		SOYA BEAN, GROUNDNUT, SESAME SEED, COPRA.
OIL REFINING		420,000 MT/YEAR
INCLUDING		SOYA BEAN OIL, GROUNDNUT OIL, SESAME OIL, COCONUT OIL, PALM OLEIN, PALM STEARIN, CANOLA OIL, VEGETABLE GHEE, ECT.
SHORTENING		130,000 MT/YEAR
MARGARINE		3,000 MT/YEAR
PEANUT BUTTER		1,500 MT/YEAR
ROASTED SESAME OIL		2,000 MT/YEAR
ROASTED GROUNDNUT OIL		1,000 MT/YEAR
COSMETIC		10,000,000 UNITS/YEAR
SHAMPOO		5,000,000 UNITS/YEAR
IMPORT & EXPORT ACTIVITIES
IMPORT: The Subject imports equipments and machineries from USA, Japan, and Europe. Principal import markets of the subject are Malaysia, Australia, Singapore, Thailand, Argentina and Brazil
EXPORT: The Subject's products are exported and consumed in Asian markets such as China, Taiwan, Hong Kong, Korea, Japan and Middle East countries
BANKERS
1. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address			No.29 Ben Chuong Duong Str, District 1, Hochiminh City
Country			Vietnam
Tel			(84-8) 8251317
Fax			(84-8) 8297228
Telex			811234/5 VVB-VT
Swift			BFTVVBVX 007
2. BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM- HCM CITY BRANCH
Address			No. 134 Nguyen Cong Tru Str, Dist 1, Hochiminh City
Country			Vietnam
Tel			(84-8) 8230125, 8297384
Fax			(84-8) 8298862
Swift			BIDVVNVX310
3. 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
SHAREHOLDERS
The Subject is a State Owned Enterprise with 100 percent of State shares. It has been re-organized to be a Parent-Subsidiary Company in June 2005.
PAYMENT HISTORY AND EXPERIENCES
Trade Morality			Fairly good
Liquidity			Normal
Previous Payments			Fairly prompt
Payment status			Fairly prompt
Past Financial Situation			Good
Current Financial Situation			Good
Litigation Data			No recorded
Bankruptcy			No recorded
Public opinion			Good
Payment Methods			Direct payment or through its corresponding bank or by telegraphic transfer (T/T), L/C.
Sales Methods			Directly to clients or through network agents
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date				31/12/2006	31/12/2005
Number of weeks				52	52
ASSETS
A -	CURRENT ASSETS			512,770	373,309
I.	Cash and cash equivalents			76,480	106,816
1.	Cash			76,480	106,816
2.	Cash equivalents
II.	Short-term financial investments			0	0
1.	Short-term investments
2.	Provisions for devaluation of short-term investment stocks
III.	Accounts receivables			336,282	245,123
1.	Receivable from customers			315,181	216,303
2.	Prepayment to suppliers			4,355	6,491
3.	Inter- company receivables			0	0
4.	Progress receipts due from construction contract
5.	Other receivables			16,746	22,329
6.	Provisions for bad debts			0	0
IV.	Inventories			94,230	17,336
1.	Raw materials, spare parts,			94,230	17,336
2.	Provisions for devaluation of inventories			0	0
V.	Other current assets			5,778	4,034
1.	Short-term prepaid expenses			0	4,034
2.	Value added tax deducted			2,534	0
3.	Taxes receivables
4.	Other current assets			3,244	0
B -	LONG TERM ASSETS			467,413	444,935
I.	Long term accounts receivable			0	0
1.	Long term accounts receivable from customers
2.	Long term inter- company receivable
3.	Other long term accounts receivables
4.	Provisions for bad debts
II.	Fixed assets			128,402	62,763
1.	Tangible fixed assets			21,262	18,718
	Historical costs			58,618	51,319
	Accumulated depreciation			37,356	32,601
2.	Finance lease assets			0	0
	Historical costs
	Accumulated depreciation
3.	Intangible assets			2,076	2,544
	Historical costs			2,595	4,416
	Accumulated depreciation			519	1,872
4.	Construction in progress			105,064	41501
III.	Investment property			0	0
	Historical costs
	Accumulated depreciation
IV.	Long term financial investments			338,643	382172
1.	Investments subsidiary company			0	0
2.	Investments in business concerns and joint ventures			339,178	257856
3.	Other long term investments			10,089	124316
4.	Provisions for devaluation of long-term investments stock			-10,624	0
V.	Other long term assets			368	0
1.	Long term prepaid expenses			368	0
2.	Deferred income tax assets
3.	Other long term assets
	TOTAL ASSETS			980,183	818,244
LIABILITIES
A -	LIABILITIES			398,697	259,464
I.	Short term liabilities			341,729	115,445
1.	Short term debts and borrowings			222,861	65,159
2.	Payable to suppliers			91,859	27,854
3.	Advances from customers			630	4
4.	Taxes and other accounts payable to the State Budget			11,830	5,713
5.	Payable to employees			10,990	9,171
6.	Accrued expenses			803	5041
7.	Payable to inter- company			0	0
8.	Progress payments due to construction contract
9.	Other payables			2,756	2,503
10.	Provision for short term payable
II.	Long term liabilities			56,968	144,019
1.	Long term account payable to suppliers
2.	Long term inter-company payables
3.	Other long term payables
4.	Long term debts and borrowings			52,397	144,019
5.	Deferred income tax liabilities			4,571
6.	Provision for unemployment
7.	Provision for long term payable
B -	OWNER’S EQUITY			581,486	558,780
I.	Owner’s equity			577,351	550,444
1.	Owners' Investment capital			445,261	445,261
2.	Share premiums
3.	Other owners’ capital
4.	Treasury shares
5.	Differences upon asset revaluation
6.	Foreign exchange differences
7.	Business promotion fund			88,853	88853
8.	Financial reserved fund			16,330	16330
9.	Other funds
10.	Undistributed earnings			26,907	0
11.	Investment construction capital
II.	Other sources and funds			4,135	8336
1.	Bonus and welfare funds			4,135	8336
2.	Sources of expenditure			0	0
3.	Funds used to acquire fixed assets			0	0
	TOTAL LIABLITIES AND OWNER’S EQUITY			980,183	818,244
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Description			FY 2006	F/Y 2005
1.	Revenue from sales of goods and rendering of services			1,663,710	1,357,640
2.	Deductible items			0	0
3.	Net revenue from sales of goods and rendering of services			1,663,710	1,357,640
4.	Costs of goods sold			1,559,689	1,287,779
5.	Gross profit			104,021	69,861
6.	Income from financial activities			8,749	28,716
7.	Expenses from financial activities			28,907	11,964
	In which: Loan Interest expenses
8.	Selling expenses			13,334	9,312
9.	General & administration expenses			33,588	28,548
10.	Net operating profit			36,941	48,753
11.	Other incomes			519	14,864
12.	Other expenses			0	68
13.	Other profits			519	14,796
14.	Profit (loss) before tax			37,460	63,549
15.	Income tax			10,794	11,990
16.	Profit (loss) after tax			26,666	51,559
FINANCIAL FACTORS
Description				FY 2006	FY 2005
Current Liquidity Ratio				1.50	3.23
Quick Liquidity Ratio				1.22	3.08
Inventory Circle				27.96	74.28
Average Receive Period				73.78	65.90
Utilizing Asset Performance				1.70	1.66
Liability / Total Asset (%)				40.68	31.71
Liability / Owner's Equity (%)				68.57	46.43
Income Before Tax / Total Asset (%) ROA				3.82	7.77
Income Before Tax / Owner's Equity (%) ROE				6.44	11.37
Income Before Tax / Total Revenue (%) NPM				2.25	4.68
Gross Profit / Total Revenue (%) GPM				6.25	5.15
INTERPRETATION
National company for Vegetable Oils, Aromas & Cosmetics of Vietnam (VOCARIMEX) is a state owned company. Originally, its name was Vegetable Oil Southern Company, officially founded on August 1976. At the present, the subject is operating in the form of parent - subsidiary company. The subject has total six subsidiaries and joint venture companies. Besides, it also owns a special designed port (Nha Be Vegetable Oil Port) for receiving and exporting liquid vegetable oils. This port is under the investment project of intensive development and expansion into a multi-purpose port, capable for receiving up to 0.5-1 million tons of cargoes per year. The subject’s products occupy about 90% of vegetable oil in Vietnam market. Its products also have been exported and consumed in Asian markets such as China, Taiwan, Hong Kong, Korea, Japan and some countries of Middle East. The premises and facilities of the subject are good. Its equipments and machineries are imported from USA, Japan and Europe. Total workforce is 1,435 employees including staffs and workers. The management capacity of the subject has improved after re-organized and it is quite good in comparison with other state owned enterprise. VOCARIMEX is a state owned enterprise. Although this type of business is not active, however the subject is running effectively. The business operations of the subject are busy. Its position in the industry is good. Its competitive capability is strong. Annual turnover and profits of the subject are good. Its financial situation of the subject is good. The subject has capacity to meet financial commitments. No caution needed for 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.	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