MIRA INFORM REPORT

Report Date :

10.04.2008

IDENTIFICATION DETAILS

Name :	HUY SON PRODUCING TRADING SERVICE OF AGRO FORESTRY AQUATIC AND LIVE STOCK PRODUCTS
Registered Office :	No.12/47, Dao Duy Anh Str, Ward 9, Phu Nhuan Dist, Hochiminh city
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	2000
Com. Reg. No.:	4102001054
Legal Form :	Limited Liability Company
Line of Business :	Trading in Wheat Powder, Instant Full Milk Powder, Oil, Butter, Animal Feed and Soybean Milk.

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 :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM

English Name	HUY SON PRODUCING TRADING SERVICE OF AGRO FORESTRY AQUATIC AND LIVE STOCK PRODUCTS
Vietnamese Name	CONG TY TNHH SAN XUAT THUONG MAI DICH VU HANG NONG LAM HAI SUC SAN HUY SON
Trade Name	HUY SON TRADING SERVICE COMPANY LIMITED
Abbreviated Name	HUY SON CO., LTD
Type of Business	Limited Liability Company
Founded	2000
Business Registration	No. 4102001054
Issuance on	May 15^th 2000
Issuance by	Planning and Investment Department of Hochiminh city
Current Registered Capital	6,000,000,000 VND
Former Registered Capital	3,000,000,000 VND
Original Registered Capital	1,200,000,000 VND
Tax code	0302006784
Total Employees	10 employees

ADDRESSES

Current Head Office:
Address		No.12/47, Dao Duy Anh Str, Ward 9, Phu Nhuan Dist, Hochiminh city
Country		Vietnam
Tel		(84-8) 8444557, 8444558, 8444704
Fax		(84-8) 8444557
Email		huysoncompany@hcm.vnn.vn
Former Head Office:
Address		No. 240 Nguyen Dinh Chinh Str, Ward 11, Phu Nhuan Dist, Hochiminh city
Country		Vietnam
Tel		(84-8) 9915391
Fax		(84-8) 9915386
Note: The subject has moved to current address from the beginning of 2007.
Warehouse:
Address		No. 34 Section 3, Phuoc Long A Ward, Dist 9, Hochiminh city
Country		Vietnam
Reg. No		4112012046
Issued on		June 10^th 2003
Issued by		Planning and Investment Department of Hochiminh city
Contact Person		Mr. Pham Dinh Long
Tel		(84-8) 8978659
DIRECTORS
1. NAME		Mr. PHAM DINH LONG
Position		Chairman
Date of birth		July 4^th, 1955
Qualification		Bachelor
ID No.		020056485
Issued on		July 13^th, 1995
Issued by		Police Station of Hochiminh City
Address		No.288/C7 Nam Ky Khoi Nghia Str, Ward 8, Dist 3, Hochiminh City
Country		Vietnamese
Hand Phone		++84 903 817 700
2. NAME		Mr. DO MINH TRUONG DUY
Position		Director
Qualification		Bachelor
Resident		Hochiminh City
Nationality		Vietnamese
Hand Phone		++84 903 717 106
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in specializing in trading in wheat powder, instant full milk powder, oil, butter, animal feed and soybean milk.
Registered trading items Producing ice, household plastic products, handicraft items, soap & detergents and packing of various kinds. Industrial sewing. Trading in food, processed food, products of agriculture – forestry – sea - animal husbandry, industrial chemical, industrial equipments and parts, household electrical appliances, consumer product, electronic goods, stationary, cosmetic, groceries, fabric of various kinds, garments, construction materials and interior decorated products. Import and export forwarding services, transportation of goods by waterway and by land, domestic tourism service. Processing food, products of agriculture – forestry - sea - animal husbandry.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports butter, oil from Australia, instant full powder milk from Netherlands, soybean milk and animal feed from Japan, China, Indonesia, India and Argentina.
EXPORT: N/A
BANKERS
1. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address		No.29 Ben Chuong Duong Str, Dist 1, Hochiminh City
Country		Vietnam
Tel		(84-8) 8251317
Fax		(84-8) 8297228
Telex		811234/5 VVB-VT
Swift		BFTVVBVX 007
2. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK (TECHCOMBANK)
Address		No. 7 Cong Hoa Street, Ward 4, Tan Binh District, Hochiminh city
Country		Vietnam
Tel		(84-8) 8117534/ 6
Fax		(84-8) 8116896
Telex		411349HSCTCB
Swift		VTCBVNVX
3. DONG A COMMERCIAL JOINT STOCK BANK
Address		No. 130 Phan Dang Luu Str, Ward 13, Phu Nhuan Dist, Hochiminh City
Country		Vietnam
Tel		((84-8) 8446739
Fax		(84-8) 9952092
Swift		EACBVNVX
SHAREHOLDER(S)
The subject is a Limited Liability Company. Following is its current shareholders:
1. NAME		Mr. PHAM DINH LONG
Position		Chairman
Date of birth		July 4^th, 1955
Qualification		Bachelor
ID No.		020056485
Issued on		July 13^th, 1995
Issued by		Police Station of Hochiminh City
Address		No.288/C7 Nam Ky Khoi Nghia Str, Ward 8, Dist 3, Hochiminh City
Nationality		Vietnamese
Hand Phone		++84 903 817 700
Shares		55%
Values		3,300,000,000 VND
2. NAME		Mr. DO MINH TRUONG DUY
Position		Director
Qualification		Bachelor
Resident		Hochiminh City
Nationality		Vietnamese
Hand Phone		++84 903 717 106
Shares		45%
Values		2,700,000,000 VND
Former Shareholder
1. NAME		Mrs. PHAM THI HOI
Position		Chairwoman
Born		September 10^th, 1953
ID No.		020529931
Issued on		December 14^th, 1978
Issued by		Police Station of Hochiminh City
Current Resident		288/C7 Nam Ky Khoi Nghia Str, Ward 8, Dist 3, Hochiminh City.
Nationality		Vietnamese
Shares		40%
Values		1,200,000,000 VND
2. NAME		Mr. PHAM DINH LONG
Position		Director
Qualification		Bachelor
ID No.		020056485
Issued by		Police Station of Hochiminh City
Address		No.288/C7 Nam Ky Khoi Nghia Str, Ward 8, Dist 3, Hochiminh City
Country		Vietnam
Shares		60%
Value		1,800,000,000 VND
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date				31/12/2006
Number of weeks				52
ASSETS
A -	CURRENT ASSETS			22,709
I.	Cash and cash equivalents			537
1.	Cash			537
2.	Cash equivalents			0
II.	Short-term financial investments			0
1.	Short-term investments			0
2.	Provisions for devaluation of short-term investment stocks			0
III.	Accounts receivables			14,322
1.	Receivable from customers			7,822
2.	Prepayment to suppliers			6,500
3.	Inter- company receivables			0
4.	Progress receipts due from construction contract			0
5.	Other receivables			0
6.	Provisions for bad debts			0
IV.	Inventories			7,734
1.	Raw materials, spare parts,			7,734
2.	Provisions for devaluation of inventories			0
V.	Other current assets			116
1.	Short-term prepaid expenses			2
2.	Value added tax deducted			114
3.	Taxes receivables			0
4.	Other current assets			0
B -	LONG TERM ASSETS			44
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 accounts receivables			0
4.	Provisions for bad debts			0
II.	Fixed assets			44
1.	Tangible fixed assets			44
	Historical costs			93
	Accumulated depreciation			49
2.	Finance lease assets			0
	Historical costs			0
	Accumulated depreciation			0
3.	Intangible assets			0
	Historical costs			0
	Accumulated depreciation			0
4.	Construction in progress			0
III.	Investment property			0
	Historical costs			0
	Accumulated depreciation			0
IV.	Long term financial investments			0
1.	Investments subsidiary company
2.	Investments in business concerns and joint ventures
3.	Other long term investments
4.	Provisions for devaluation of long-term investments stock
V.	Other long term assets			0
1.	Long term prepaid expenses			0
2.	Deferred income tax assets			0
3.	Other long term assets			0
	TOTAL ASSETS			22,753
LIABILITIES
A -	LIABILITIES			18,227
I.	Short term liabilities			18,227
1.	Short term debts and borrowings			13,026
2.	Payable to suppliers			3,104
3.	Advances from customers			1,987
4.	Taxes and other accounts payable to the State Budget			80
5.	Payable to employees			0
6.	Accrued expenses			30
7.	Payable to inter- company			0
8.	Progress payments due to construction contract			0
9.	Other payables			0
10.	Provision for short term payable			0
II.	Long term liabilities			0
1.	Long term account payable to suppliers
2.	Long term inter-company payables
3.	Other long term payables
4.	Long term debts and borrowings
5.	Deferred income tax liabilities
6.	Provision for unemployment
7.	Provision for long term payable
B -	OWNER’S EQUITY			4,526
I.	Owner’s equity			4,526
1.	Owners' Investment capital			6,000
2.	Share premiums
3.	Other owners’ capital
4.	Treasury shares
5.	Differences upon asset revaluation
6.	Foreign exchange differences
7.	Business promotion fund
8.	Financial reserved fund
9.	Other funds
10.	Undistributed earnings			-1,474
11.	Investment construction capital
II.	Other sources and funds			0
1.	Bonus and welfare funds			0
2.	Sources of expenditure			0
3.	Funds used to acquire fixed assets			0
	TOTAL LIABLITIES AND OWNER’S EQUITY			22,753
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Description			FY 2006
1.	Revenue from sales of goods and rendering of services			27,490
2.	Deductible items			0
3.	Net revenue from sales of goods and rendering of services			27,490
4.	Costs of goods sold			23,858
5.	Gross profit			3,632
6.	Income from financial activities			0
7.	Expenses from financial activities			0
	In which: Loan Interest expenses
8.	Selling expenses			2,724
9.	General & administration expenses			440
10.	Net operating profit			468
11.	Other incomes			3
12.	Other expenses			523
13.	Other profits			- 520
14.	Profit (loss) before tax			-52
15.	Income tax			367
16.	Profit (loss) after tax			- 419
FINANCIAL FACTORS
Description				FY 2006
Current Liquidity Ratio				1.25
Quick Liquidity Ratio				0.82
Inventory Circle				3.08
Average Receive Period				190.16
Utilizing Asset Performance				1.21
Liability / Total Asset (%)				80.11
Liability / Owner's Equity (%)				402.72
Income Before Tax / Total Asset (%) ROA				-0.23
Income Before Tax / Owner's Equity (%) ROE				-1.15
Income Before Tax / Total Revenue (%) NPM				-0.19
Gross Profit / Total Revenue (%) GPM				13.21
Following are financial highlights 2005 and 2004.
Unit: 1,000,000 VND
Description			2005		2004
Current assets & Short-term investment			24,934		52,813
Fixed assets & Long-term investment			57		70
Total assets			24,991		52,883
Payable			19,986		47,778
Owner’s Equity			5,005		5,105
Total Liability and Equity			24,991		52,883
Total revenue			66,841		113,562
Deduction Items			-		-
Net revenue			66,841		113,562
Net income from business activities			45		2,327
Net income from financial operation			-		-2,116
Irregular Profit			-		-
Total pre-tax profit			45		211
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Fair
Liquidity		Average
Payment status		Average
Financial Situation		Average
Development trend		Not good
Litigation data		No Recorded
Bankruptcy		No Recorded
Payment Methods		Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C) or by telegraphic transfer (T/T)
Sale Methods		Directly to Clients or through its agents
INTERPRETATION ON THE SCORES
The subject is a Limited Liability Company, established in 2000. Formerly, on legal document, Mrs. Pham Thi Hoi was the director of the subject and the whole business operations of the subject were managed by Mr. Pham Dinh Long – managing director. Now, there are some changes in board of director. Mr. Pham Dinh Long is the legal representative person and Mr. Do Minh Truong Duy is the managing director of the subject. The subject is now specializing in trading in wheat powder, instant full milk powder, oil, butter, soybean milk and animal feed. The subject imports butter, oil from Australia, instant full powder milk from Netherlands, soybean milk and animal feed from Japan, China, Indonesia, India and Argentina. Some of the subject’s customers are producers and some sales agents. Trung Nguyen coffee enterprise is one of the subject’s traditional customers. Currently, the subject is running normally. The subject’s operating was normal. Its competitive capability is limited, so the subject faces with difficulties in developing. The premise is located in large area and convenient for business. This location is also concentrated many companies, especially foreign company. Business results of the subject are good. According to the reported financial data, the financial statues of the Subject has tendency to go down. The revenue has decreased year after year. According to Mr. Do Minh Truong Duy, total revenue of 2007 is 52 billion VND. The prospect of development of the Subject seem not good. Pls caution needed for all the normal business with the Subject.
The guarantee is necessary for this amount.

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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