MIRA INFORM REPORT

Report Date :

22.10.2007

IDENTIFICATION DETAILS

Name :	SAI GON PLANT PROTECTION STATE LIMITED COMPANY
Registered Office :	Nguyen Van Quy Str, Hamlet 1, Tan Thuan Dong Village, Dist 7, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	1989
Legal Form :	Liability Limited Company
Line of Business :	Producing and trading in pesticides. Manufacturing sachets, bags, bottles and carton boxes for containing crop protection chemicals. Packaging by customer's orders. Buying, processing agricultural products and providing them for export

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		SAI GON PLANT PROTECTION STATE LIMITED COMPANY
Vietnamese name		CONG TY TNHH MOT THANH VIEN BAO VE THUC VAT SAI GON
Abbreviated name		SPC.S.LTD
Trade name		SPC
Type of business		Liability Limited Company
Business registration		No. 4104000095
Issued on		July 09^th, 2004
Issued by		Planning and Investment Department of Hochiminh City
Current registered capital		66,000,000,000 VND
Tax code		0300632232
Total employees		445 employees
Qualification		Qualified
FORMER LEGAL FORM
English Name		SAIGON PESTICIDE COMPANY
Vietnamese Name		CONG TY THUOC TRU SAU SAI GON
Trade Name		S.P.C
Founded		1989
Re-establishment Decision		No. 68/QD-UB
Issued on		February 18^th, 1993
Issued by		People’s Committee of Hochiminh City
Type of Business		State Owned Enterprise
Business registration		No.103017
Issued by		Planning and Investment Department of Hochiminh City
Registered Capital		1,782,276,845 VND
Total Employees		350 employees
Qualification		Fairly good
Note: the subject has changed the type of business from State Owned Enterprise to Single Liability Limited Company under the law on state owned enterprise.
ADDRESSES
Head Office
Address	Nguyen Van Quy Str, Hamlet 1, Tan Thuan Dong Village, Dist 7, Hochiminh City
Country	Vietnam
Tel	(84-8) 873 1149 / 873 3666
Fax	(84-8) 873 3391
Email	spchcmc@hcm.vnn.vn spchcmcsvn@hcm.vnn.vn
Website	www.spchcmc.com.vn
Branch in Hochiminh City
Address	No. 22C, Phan Dang Luu Str, Ward 6, Binh Thanh Dist, Hochiminh City
Country	Vietnam
Tel	(84-8) 510 0591
Business registration	No 4114015971
Issued on	September 7^th 2004
Tax Code	0300632232-005
Branch in Hanoi
Address	No. 80 Lang Ha Str, Dong Da Dist, Hanoi
Business registration	No. 0114000143
Tax Code	0300632232-001
Branch in Dak Lak
Address	No. 104, Nguyen Tat Thanh Str, Buon Me Thuot City, Dak Lak Province
Country	Vietnam
Business registration	No. 4014000001
Tax Code	0300632232-003
Branch in Can Tho
Address	Block 30A5, Tra Noc I Industrial Park, Tra Noc Ward, Can Tho City, Can Tho Province
Country	Vietnam
Business registration	No. 5714000014
Tax Code	0300632232-004
Branch in Da Nang
Address	No. 50, Duy Tan Str, Da Nang City
Country	Vietnam
Tel	(84-511) 631216
Business registration	No. 3214000012
Tax Code	0300632232-006
Branch in Long An
Address	No.130, Bach Dang Str, Moc Hoa Dist, Long An Province
Country	Vietnam
Business registration	No. 5014000001
Tax Code	0300632232-007
Branch in Nghe An
Address	Block 20, Mai Hac De Str, Le Loi Ward, Vinh city, Nghe An Pro
Country	Vietnam
Business registration	No. 2714000006
Tax Code	0300632232-008
Branch in Bac Lieu
Address	No. 3/8C, National Road No.1, Group 2, Ward 7, My Tra Commune, Bac Lieu Town, Bac Lieu Province
Country	Vietnam
Business registration	No. 6012000177
Tax Code	0300632232-009
Branch in Bac Ninh
Address	Que Vo Industrial Park, Que Vo Dist, Bac Ninh Province
Country	Vietnam
Business registration	No. 2114000004
Tax Code	0300632232-010
Branch in Dong Thap
Address	No. 161, National Road No. 30, My Tra Commune, Cao Lanh Dist, Dong Thap Province
Country	Vietnam
Business registration	5114000193
Tax Code	0300632232-011
DIRECTORS
1. NAME	Mr. TRUONG HUY HOANG TAM DUNG
Position	Director
Qualification	Management
Date of birth	September 04^th, 1960
Resident	No. 91, Ho Ba Kien Str, Ward 15, Dist 10, Hochiminh City
Nationality	Vietnamese
2. NAME	Mr. BUI VAN THONG
Position	Deputy Director
Qualification	Management
Resident	Hochiminh City
Nationality	Vietnamese
3. NAME	Mr. YEO JOO HUA
Position	Sales Deputy Director
Qualification	Management
Resident	Hochiminh City
Nationality	Singaporean
BUSINESS NATURE AND ACTIVITIES
The subject specializes in:
Producing and trading in pesticides. Vegetation protection chemicals are the primary business of the subject. It is the leading company supplying products for agriculture industry in Vietnam market and producing aquatic medicines and veterinary medicines. Specializing in trading in goods, equipment, and machinery for agriculture production such as seeds, fertilizer, sprayers, chemicals and drugs for aquatic products and veterinary treatment. Manufacturing sachets, bags, bottles and carton boxes for containing crop protection chemicals. Packaging by customer's orders. Buying, processing agricultural products and providing them for export
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports raw materials, chemicals (excluding strong noxious chemicals) for processing and equipment for agriculture production from the United States of America, Indonesia, Malaysia, China, Germany, Korea and India.
EXPORT: The subject exports its chemicals (excluding strong noxious chemicals), agro-products and crop protection chemicals to Laos, Myanmar and Cambodia.
BANKERS
1. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address				No. 29, Ben Chuong Duong Str, Hochiminh City
Country					Vietnam
Tel				(84-8) 825 1317
Fax				(84-8) 829 7228
Telex				811234/5 VVB-VT
Swift				BFTVVBVX 007
2. VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Address					No. 50, Ben Chuong Duong Str, Dist 1, Hochiminh City
Country					Vietnam
Tel					(84-8) 822 2752 – 829 5434
Fax					(84-8) 829 4063
Swift					VBAAVNVX
SHAREHOLDER (S)
The subject is a 100% State owned enterprise. Formerly, it was under the management of the People’s Committee of Hochiminh City. At the moment, it is belonged to:
NAME			SAIGON AGRICULTURE INCORPORATION – S.A.I
Address			No. 189, Dien Bien Phu Str, Ward 15, Binh Thanh Dist, Hochiminh City
Country			Vietnam
Tel			(84-8) 803 5410 / 899 2587
Fax			(84-8) 803 5403 / 899 0606
Email			tctynnsg@sg.fpt.vn
Share			100%
PAYMENT HISTORY AND EXPERIENCES
Trade Morality			Normal
Liquidity			Normal
Previous Payment Status			Average
Current Payment Status			Normal
Past Financial Situation			Fairly good
Current Financial Situation			Developed
Legal Action			No record
Bankruptcy			No record
Reputation			Fairly good
Modes of Payment			Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C) or by telegraphic transfer (T/T)
Sales methods			Directly to clients or through its group's agents
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000 VND
Balance Sheet Date						31/12/2006	31/12/2005	31/12/2004	31/12/2003
Number of Weeks						52	52	52	52
ASSET
A. Current assets & Short term Investment						240,330	254,324	223,232	156,778
I. Cash and cash equivalents						5,959	5,422	3,084	4,640
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 devaluation of short-term investment						0	0	0	0
III. Receivables						89,213	133,256	95,350	57,658
1. Receivables from customers						81,339	76,835	64,192	53,038
2. Prepaid for providers						6,659	1,569	5,331	1,802
3. Value-added tax deducted						715	0	5,047	3,171
4. Internal receivables						0	52,662	20,302	8
5. Other receivables						3,106	2,572	1,375	1,137
6. Provision for bad receivables						-2,606	-382	-897	-1,498
IV. Inventory						143,354	112,906	122,321	93,641
1. Purchased goods in transit						0	0	0	0
2. Inventory raw materials						0	0	47,690	27,476
3. Inventory appliance						0	0	38	13
4. Cost of production and business in process						0	0	36	0
5. Inventory finished products						0	0	77,634	59,514
6. Inventory cargoes						144,539	115,543	2,344	12,663
7. Entrusted goods for sale						0	0	528	343
8. Provision for devaluation of stocks						-1,185	-2,637	-5,949	-6,368
V. Other current assets						1,804	2,740	2,477	839
1. Advances						416	0	961	411
2. Prepaid expenses						1,388	1,120	1,504	428
3. Pending expenses for transfer						0	0	12	0
4. Pending assets						0	0	0	0
5. Hypothecation, collateral and short run collateral						0	1,620	0	0
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						41,364	35,368	19,148	14,419
I. Fixed assets						16,451	19,035	15,947	13,724
1. Tangible fixed assets						16,303	18,717	15,701	13,550
+ Original cost						51,138	48,300	40,548	35,571
+ Accumulated depreciation value						-34,835	-29,583	-24,847	-22,021
2. Fixed assets of financing credit						0	0	0	0
+ Original cost						0	0	0	0
+ Accumulated depreciation value						0	0	0	0
3. Intangible fixed assets						148	318	246	174
+ Original cost						680	673	434	277
+ Accumulated depreciation value						-532	-355	-188	-103
II. Long term investment						2,907	2,855	1,705	505
1. Long-term securities investment						0	0	1,505	5
2. Joint-venture capital contribution						2,907	2,855	0	500
3. Other long-term investment						0	0	200	0
4. Provision for long-term investment devaluation						0	0	0	0
III. Capital construction in process						21,991	13,142	1,015	190
IV. Other						15	336	481	0
TOTAL ASSETS						281,694	289,692	242,380	171,197
LIABILITIES
A. Payables						195,247	208,753	166,526	109,236
I. Short term payables						175,777	189,126	157,084	102,731
1. Short-term borrowings						58,938	51,624	57,011	45,350
2. Due long-term liabilities						0	0	0	0
3. Payable to seller						81,846	64,276	57,252	42,393
4. Prepayment of buyer						3,551	13	1,209	133
5. Taxes and accounts dutiable						-569	261	4,176	6,525
6. Employee payments						17,949	13,725	11,034	4,058
7. Internal payments						2,910	52,599	20,301	0
8. Other payables						11,152	6,628	6,101	4,272
II. Long term payables						19,470	16,738	3,962	805
1. Long-term borrowing						19,470	0	3,962	805
2. Long-term loans						0	16,738	0	0
III. Other liabilities						0	2,889	5,480	5,700
1. Disbursement payable						0	2,889	0	0
2. Pending assets						0	0	0	0
3. Receipts long-term collateral and deposit						0	0	5,480	5,700
B. Owner’s Equity						86,447	80,939	75,854	61,961
I. Capital and Funds						87,443	71,529	76,882	58,796
1. Paid-in Capital						49,897	43,683	41,235	35,704
2. Differences from assets revaluation						0	0	0	0
3. Exchange rate differences						0	0	0	-2,207
4. Business development fund						19,708	19,692	9,826	10,336
5. Reserved fund						7,818	8,154	4,972	5,065
6. Retained profit						10,020	0	20,849	9,897
7. Construction capital sources						0	0	0	1
II. Other administrative and fund sources						-996	9,410	-1,028	3,165
1. Provident funds for unemployment						0	0	2,842	2,813
2. Welfare and reward funds						-996	1,627	-3,870	352
3. Management funds of higher level						0	0	0	0
4. Functional operation funds						0	7,783	0	0
5. Fund sources formed by fixed assets						0	0	0	0
TOTAL LIABILITY AND EQUITY						281,694	289,692	242,380	171,197

PROFIT & LOSE ACCOUNTS
Description	FY2006	FY 2005	FY 2004	FY 2003
Total revenue	717,567	596,322	532,933	417,252
Deductions Items	1,806	1,586	1,464	224
- Discount	0	1,586	0	0
- Devaluation of sale price	1,806	0	218	0
- Return of sold goods	0	0	1,246	224
- Turnover tax, excise tax, import and export duties to be paid	0	0	0	0
1. Net revenue	715,761	594,736	531,469	417,028
2. Original rate of goods for sale	602,783	512,713	457,401	364,796
3. Combined Profit	112,978	82,023	74,068	52,232
4. Sales costs	78,582	47,476	44,954	29,518
5. Enterprise administrative costs	14,413	12,442	12,351	7,876
6. Net income from business activity	19,983	22,105	16,763	14,838
Income from financial activities	1,317	781	3,422	646
Costs of financial activities	8,100	7,988	4,913	2,210
7. Net income from financial operation	-6,783	-7,207	-1,491	-1,564
Irregular income	2,449	1,587	1,526	2,728
Irregular expenditure	886	460	1,151	1,408
8. Irregular profit	1,563	1,127	375	1,320
9. Total pre-tax profit	14,763	16,025	15,647	14,594
10. Income tax	4,119	4,612	4,358	4,662
11. After tax profit	10,644	11,413	11,289	9,932
FINANCIAL FACTORS
Description	2006	2005	2004	2003
Current Liquidity Ratio	1.37	1.34	1.42	1.53
Quick Liquidity Ratio	0.55	0.75	0.64	0.61
Inventory Circle	4.20	4.36	4.24	3.90
Average Receivable Period (days)	45.49	81.78	65.48	50.46
Utilizing Asset performance	2.54	2.05	2.19	2.44
Liabilities / Total Assets (%)	69.31	72.06	68.70	63.81
Liabilities / Owner’s Equity (%)	225.86	257.91	219.53	176.30
Income before tax/Total assets (%) ROA	5.24	5.53	6.46	8.52
Income before tax / Owner’s Equity (%) ROE	17.08	19.80	20.63	23.55
Income before tax/Total revenues (%) NPM	2.06	2.69	2.94	3.50
Gross Profit / Total revenue (%) GPM	15.74	13.75	13.90	12.52
INTERPRETATION
The subject is a single liability limited company. Formerly, it was a State owned enterprise under the management of the People’s Committee of Hochiminh city. Since July 9^th 2004, the subject has been under the management of Saigon Agriculture Incorporation. The subject specializes in many activities. It imports and exports of pesticides, aquatic medicine, veterinary medicine, fertilizer, hi-tech fertilizer, plant -growth regulator, chemicals, seedling, farm implements, hand-sprayers, motorized- sprayer like ULV, ULVA, machineries, equipments for agricultural production. Besides, it also produces pesticides, aquatic medicines, veterinary medicines, hi-tech fertilizers, plant-growth regulator, breeder seedlings, pesticide packages in all kinds (glass bottle, PE, pet, caps, plugs, cartons). In addition, the subject also engages in agricultural services and scientific research: investing in scientific research of pesticides, veterinary medicines, aquatic medicines, breeder seedlings, fertilizers, machineries and equipments for agricultural production. The administrative management capabilities of the subject are quite good. It now recruits many foreign staffs, who hold key position such as MR. YEO JOO HUA from Singapore. The subject’s premises are good. It has obtained ISO 9002: 2000, ISO/IEC 17025 certifications. In December 2004, the subject was granted “farmer’s friend brand”. In 2005, its products were chosen the “high quality product” by Vietnam consumers. The subject's market share is large. It has good business relationships with many multinational companies. It has branches in major provinces, cities such as Hanoi, Can Tho, Buon Me Thuot, Thanh Hoa, and Da Nang cities and about 300 dealers across the country. The subject also has a branch in Laos. The position of the company in the industry is good. It is one of the biggest suppliers in Vietnam in pesticides, crop protection chemicals and products for agriculture production. The development strategy of the subject is expanded. It is now looking for more foreign partners. Annual turnover growth of the subject has increased stably. The subject plans to move to Hiep Phuoc industrial park, Nha Be district, Hochiminh city with the area of 4,3 hectares under the decision No. 1824/QD-UB on April 22^nd 2005 of Hochiminh People's Committee. It is expected to finish its moving at the beginning of this year. However, now, the subject still locates at old address and it may be moved in coming times. The subject also has another project for investing into a new company named Sai Gon Pakse Agriculture Company in Laos. Total estimated capital for these two projects is accounted for VND 78 billion. In overview, the subject is an effective company with strong potential of development. Its financial status is good for creditors. No caution needed for transactions.
The company has ADEQUATE capacity to meet financial commitments.
CREDIT INQUIRY: 1,500,000 USD
Acceptable with close 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.	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%)

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