MIRA INFORM REPORT

Report Date :

08.09.2007

IDENTIFICATION DETAILS

Name :	NO VA INVESTMENT TRADING COMPANY LIMITED
Registered Office :	No. 313B-315, Nam Ky Khoi Nghia Str, Dist 3, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	1992
Legal Form :	Liability Limited Company
Line of Business :	Manufacturing packages (by plastic, glass and paper). Trading in all kinds of veterinary medicine. Civil & Industrial construction. Trading in real-estate (constructing building for lease and house for sale)

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
Current English Name		NO VA INVESTMENT TRADING COMPANY LIMITED
Current Vietnamese name		CONG TY TNHH THUONG MAI VA DAU TU NO VA
Current Trade Name		NO VA INVESTMENT TRADING CO., LTD
Former Vietnamese name		CONG TY TNHH THUONG MAI THANH NHON
Former full name		THANH NHON TRADING CO., LTD
Former trade name		THANH NHON CO., LTD
Founded		1992
Type of business		Liability Limited Company
Established Decision		No. 489/GP-UB
Issued on		September 16^th, 1992
Issued by		People's Committee of Hochiminh City
Business Registration		No. 054350
Issued on		September 18^th, 1992
Current Registered Capital		95,325,000,000 VND
Tax Code		0301444753
Total Employees		100 staffs
Qualification		Qualified
Note: According to the legal document, subject has just changed its name to “NOVA INVESTMENT TRADING CO., LTD” at the beginning of 2007. Actually, subject is under restructuring and after interviewing subject’s chairman- Mr. BUI THANH NHON, we were known that He intends to build up his companies to be a Public Group under the name “NOVA GROUP” or “THANH NHON GROUP” in coming times. All procedure are prepared and there are some changes with subject in some next months.
ADDRESS
Head Office
Address		No. 313B-315, Nam Ky Khoi Nghia Str, Dist 3, Hochiminh City
Country		Vietnam
Tel		(84-8) 848 3181 / 8465324 / 8438539 / 8469893 / 8469892 / 8482001
Fax		(84-8) 848 3956
Email		thanhnhon@hcm.vnn.vn thanhnhon@thanhnhon.com
Website		www.thanhnhon.com
Warehouse
Address		No. 41A, Group 3, Phuoc Long A Ward, Dist 9, Hochiminh City
Country		Vietnam
DIRECTORS
1. NAME		Mr. BUI THANH NHON
Position		Chairman
Qualification		Management
Date of birth		February 03^rd 1958
I.D.No.		020203049
Resident		No. 313B, Nam Ky Khoi Nghia Str, Ward 7, Dist3 – Hochiminh City
Nationality		Vietnamese
Cell phone		+84 903 902 772
2. NAME		Mr. TRAN DAO PHUOC MINH
Position		Managing Director
Qualification		Management
Resident		Hochiminh City
Nationality		Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject registered in the following lines of business:
- Trading, consignment agent and exporting: materials for manufacturing animal feeds, veterinary medicine, veterinary vaccine and stud animal; equipment for breeding and veterinary; fertilizers; chemicals, pesticides, agro-aquatic machines; consumer products: animal feeds, veterinary medicine, general goods. - Manufacturing packages (by plastic, glass and paper). - Trading in all kinds of veterinary medicine. - Civil & Industrial construction. - Trading in real-estate (constructing building for lease and house for sale)
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports finished veterinary products and raw materials from USA, France, New Zealand, Korea, Holland, Ireland, Singapore, Germany, China and Australia.
EXPORT: N/A
BANKERS
1. VIETNAM BANK FOR FOREIGN TRADE - VIETCOMBANK BRANCH IN HOCHIMINH CITY
Address		No. 29, Ben Chuong Duong Str, Dist 1, Hochiminh City
Tel		(84-8) 8251317
Fax		(84-8) 8297228
Telex		811231/5 VCB - VT
2. ASIA COMMERCIAL BANK (ACB)
Address		No. 442, Nguyen Thi Minh Khai Str, Dist 3, Hochiminh City
Tel		(84-8) 839 5179
Fax		(84-8) 839 9885
Telex		813158 ACB VT
Swift		ASCBVNVX
SHAREHOLDERS
Following is current registered shareholders of the subject:
1. NAME		Mr. BUI THANH NHON
Position		Chairman
Qualification		Management
Date of birth		February 03^rd 1958
I.D.No.		020203049
Resident		No. 313B, Nam Ky Khoi Nghia Str, Ward 7, Dist3, Hochiminh City
Nationality		Vietnamese
Shares		99.591%
Value		94,935,000,000 VND
2. NAME		Mr. BUI CAO NHAT QUAN
I.D.No.		023660386
Resident		No. 315, Nam Ky Khoi Nghia Str, Ward 7, Dist3, Hochiminh City
Nationality		Vietnamese
Shares		0.205%
Value		195,000,000 VND
3. NAME		Mr. NGUYEN THANH TIEN
I.D.No.		023417603
Resident		No. 195B2, Bui Thi Xuan Str, Ward 1, Tan Binh Dist, Hochiminh City
Nationality		Vietnamese
Shares		0.205%
Value		195,000,000 VND
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Average
Liquidity		Normal
Previous Payments		Normal
Payment status		Normal
Past Financial Situation		Average
Current Financial Situation		Fair
Litigation Data		No recorded
Bankruptcy		No recorded
Public opinion		Fair
Payment Methods		Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C), by telegraphic transfer (T/T).
Sale methods		Directly to clients or through its clients
FINANCIAL DATA
BALANCE SHEET
Unit: Million VND
Balance sheet date			31/12/2006
Number of weeks			52
ASSETS
A -	CURRENT ASSETS		82,534
I.	Cash and cash equivalents		3,279
1.	Cash		3,279
2.	Cash equivalents		0
II.	Short-term investments		0
1.	Short-term investments		0
2.	Provisions for short-term investment of short- term investments in securities		0
III.	Accounts receivable		31,886
1.	Receivable from customers		18,948
2.	Repayments to suppliers		4,379
3.	Inter- company receivable		0
4.	Receivable according to the process of construction contracts		0
5.	Other receivable		8,559
6.	Provisions for credit risk		0
IV.	Inventories		39,092
1.	Inventories		39,264
2.	Provisions for devaluation of inventories		-172
V.	Other current assets		8,277
1.	Short-term repaid expenses		6,716
2.	Taxes receivable		1,538
3.	Other current assets		23
B -	LONG TERM ASSETS		246,102
I.	Long term accounts receivable		0
1.	Long term accounts receivable from customers		0
2.	Long term inter- company receivable		0
3.	Other long term receivable		0
4.	Provisions for bad debts		0
II.	Fixed assets		119,256
1.	Tangible assets		82,971
	Historical costs		96,249
	Accumulated depreciation		13,278
2.	Financial leasehold assets		0
	Historical costs		0
	Accumulated depreciation		0
3.	In-tangible assets		30,112
	Historical costs		30,112
	Accumulated depreciation		0
4.	Construction in progress		6,173
III.	Investment property		0
	History costs		0
	Accumulated depreciation		0
IV.	Long term investments		121,771
1.	Investments in affiliates		0
2.	Investments in business concerns and joint ventures		9,012
3.	Other long term investments		112,759
4.	Provisions for devaluation of investments in securities		0
V.	Other long term assets		5,075
1.	Long term repaid expenses		5,068
2.	Deferred income tax		0
3.	Other long term assets		7
	TOTAL ASSETS		328,636
LIABILITIES
A -	LIABILITIES		221,968
I.	Short term liabilities		126,465
1.	Short term debts and loans		95,128
2.	Payable to suppliers		7,544
3.	Advances from customers		173
4.	Taxes and other obligations to the State Budget		1,104
5.	Payable to employees		7
6.	Accrued expenses		0
7.	Inter- company payable		0
8.	Payable according to the progress of construction contracts		0
9.	Other payables		22,509
II.	Long term liabilities		95,503
1.	Long term account payable to suppliers		0
2.	Long term inter- company payable		0
3.	Other long term payable		122
4.	Long term debts and loans		95,354
5.	Deferred income tax		27
B -	OWNER’S EQUITY		106,668
I.	Owner’s equity		106,314
1.	Capital		95,325
2.	Share premiums		0
3.	Treasury stocks		0
4.	Differences on asset re-valuation		0
5.	Foreign exchange differences		0
6.	Business promotion fund		0
7.	Financial reserved fund		0
8.	Other funds		577
9.	Retained earnings		10,412
II.	Other sources and funds		354
1.	Bonus and welfare funds		354
2.	Sources of expenditure		0
3.	Funds to form fixed assets		0
	TOTAL LIABLITIES AND OWNER’S EQUITY		328,636
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
			F/Y 2006
1.	Sales		264,013
2.	Deductions		3,501
3.	Net sales		260,512
4.	Costs of goods sold		218,628
5.	Gross profit		41,884
6.	Financial income		7,066
7.	Financial expenses		11,632
	- In which : Loan interest expenses		8,497
8.	Selling expenses		16,635
9.	Administrative overheads		4,004
10.	Net operating profit		16,679
11.	Other income		71
12.	Other expenses		104
13.	Other profits		-33
14.	Profit (loss) before tax		16,646
15.	Income tax		2,739
16.	Profit (loss) after tax		13,907
FINANCIAL FACTORS
Description			FY 2006
Current Liquidity Ratio			0.65
Quick Liquidity Ratio			0.34
Inventory Circle			5.59
Average Receive Period			44.68
Utilizing Asset Performance			0.79
Liability / Total Asset (%)			67.54
Liability / Owner's Equity (%)			208.09
Income Before Tax / Total Asset (%) ROA			5.07
Income Before Tax / Owner's Equity (%) ROE			15.61
Income Before Tax / Total Revenue (%) NPM			6.30
Gross Profit / Total Revenue (%) GPM			15.86
INTERPRETATION
Nova Investment Trading Co., Ltd is the current registered name of Thanh Nhon Trading Co., Ltd. The subject is a Limited Liability Company established in 1992. Its name has been changed from the beginning of 2007. The subject has rapidly grown and become a leading importer and distributor in Vietnam of a wide range of veterinary and animal nutrition products, feed additives and raw materials supplying to veterinary and animal feed industry, chemicals for various industries, pet food. The subject is an importer and distributor in Vietnam of a wide range of veterinary and animal nutrition products, feed additives and raw materials supplying for veterinary and animal feed factories. Recently, the subject has expanded its business into chemicals, food and pet food industries. At present, the subject represents as exclusive distributor for many world famous veterinary manufacturers from Holland, Ireland, France, Germany, Australia, New Zealand, Korea, USA. The subject is the representative of Royal Canil (France) in Vietnam for all of their pet food brands. The company imports products of Holland Dairy Pact (H-D-P), Sogeval, Hoogwegt, Meggle Gmhb, Franklin Pharmaceuticals, Franlink Product International B.V, Fuzhou Antibiotic Group, Phibro Animal Health, Protilact, Han Poong Industry Co., Ltd, Diversified, Nutri-Agri Technologies Inc, and Distributor Processing Inc. The subject’s premises and facilities are standard. Its management capability is fairly good. The subject is expanding its market share with distribution network consisting of more than 100 sales agents across the country and its products are popular in Southern provinces. Currently, this field of business can create remarkable profits of the subject. The subject’s revenue & profit are also increased. However, like many other Vietnamese companies, the reported figures are quite different with the real ones that we obtained from the interview directly with the subject’s key persons. Its current position in the economy is fairly good and the future seems better. The company has capacity to meet financial commitments. The subject owners have a group of companies operating in many fields such as veterinary, medical instrument, real estate…. There are some of their companies in this group: N & M J.S.C, Gau Vang (Golden Bear) manufacture, Bio-Pharmachemie, Anova feed meal, Mekong Delta factory, Saigonvet Joint Stock Company, Thanh Nhon Real Estate Joint Stock Company, Nova Joint Stock company, Thanh Nhon Joint Stock company …

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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