MIRA INFORM REPORT

Report Date :

17.04.2008

IDENTIFICATION DETAILS

Name :	AN NONG COMPANY LIMITED
Registered Office :	Lot B06-1, Duc Hoa 1 - Hanh Phuc Industrial Zone, Duc Hoa Dist, Long An Province
Country :	Vietnam
Financials (as on) :	31.12.2003
Date of Incorporation :	1996
Com. Reg. No.:	5002000517
Legal Form :	Liability Limited Company
Line of Business :	Processing, Packaging and Trading in Pesticide, Herbicide and Crop Protection Chemicals.

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

Maximum Credit Limit :	USD 250,000
Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English name	AN NONG COMPANY LIMITED
Vietnamese name	CONG TY TRACH NHIEM HUU HAN AN NONG
Abbreviated name	AN NONG CO., LTD
Type of business	Liability Limited Company
Founded	1996
Current business registration	No. 5002000517
Date of Issuance	February 25^th, 2005
Place of Issuance	Planning and Investment Department of Long An Province
Former business registration	No. 4602000031
Date of Issuance	September 15^th, 2000
Place of Issuance	Planning and Investment Department of Binh Duong Province
Current registered capital	10,000,000,000 VND
Former registered capital	5,000,000,000 VND
Original registered capital	1,000,000,000 VND
Current tax code	1100665779
Former tax code	3700334839
Total employees	180 employees
Qualification	Average
Note: Originally, the subject was established & operated in Binh Duong province. Up to February 2005, the subject moved to Long An province. It established a new company in order to get preferential treatment. It still keeps the transaction name, the board of director as well as the business trading activities.
ADDRESSES
Current Head Office and Factory
Address	Lot B06-1, Duc Hoa 1 - Hanh Phuc Industrial Zone, Duc Hoa Dist, Long An Province
Country	Vietnam
Tel	(84-72) 779 900
Fax	(84-72) 779 901
Email	annongpte@hcm.vnn.vn
Former Head Office
Address	No. 216 B, Binh Thang Hamlet, Binh An Village, Di An Dist, Binh Duong Province
Country	Vietnam
Tel	(84-650) 751 485
Fax	(84-650) 749 227
Note: Currently, the subject also has an office in Hochiminh city. It is located at No. 101A, To Hien Thanh Str, Ward 15, Dist 10, Hochiminh City.
DIRECTORS
1. NAME		Mr. HOANG HAI
Position		Chairman
Qualification		Bachelor
Resident		No. 34, Dong Da Str, Ward 2, Tan Binh Dist, Hochiminh City
Nationality		Vietnamese
Cell phone		+84 903820766
2. NAME		Ms. TRUONG THI THUY TRUONG
Position		Director
Date of birth		May 18^th, 1966
ID No		021624104
Issued on		March 4^th, 2004
Issued by		Police Station of Hochiminh City
Current resident		No. 130/18, Ho Ba Kieng Str, Ward 15, Dist 10, Hochiminh City
Registered Resident		No. 132/248/9A, To Hien Thanh Str, Ward 15, Dist 10, Hochiminh City
Nationality		Vietnamese
Cell phone		+84 903908588
3. NAME		Mr. TRAN MINH PHUONG
Position		Deputy Director
Date of birth		December 29^th 1949
Qualification		Bachelor
Current resident		No. 130/18, Ho Ba Kieng Str, Ward 15, Dist 10, Hochiminh City
Former Resident		No. 132/248/9A, To Hien Thanh Str, Ward 15, Dist 10, Hochiminh City
Nationality		Vietnamese
Cell phone		+84 903815774
4. NAME		Mr. PHAM HUU TRI
Position		Sales Manager
Qualification		Bachelor
Nationality		Vietnamese
5. NAME		Mr. LE THI NGA
Position		Chief Accountant
Qualification		Bachelor
Nationality		Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject specializes in processing, packaging and trading in pesticide, herbicide and crop protection chemicals. The subject has 30 kinds of product. Some product brand names are Berannong 500 Ec, Berannong 100 Ec, Shertox 5 Ec, Shertox 10 Ec, Toxcis 2.5 Ec, Annongvin 45 Sc, Annongvin 100 Sc, Annongvin 800wg, Binannong 75 Wp.
The subject’s registered in the following business items: Manufacturing, consigning, importing-exporting, processing, packaging and trading in pesticide, fertilizer and chemicals, cosmetics, animal and aquatic feed. Trading in miscellaneous, handicrafts, pottery, lacquer, wooden and stone sculpture, leather and imitated leather. Trading in household appliances, motorbike, bike, agricultural and aquatic machines, computer, office equipments, constructional materials, interior and exterior decorative products. Import-export and trading in agriculture products, foodstuff, soft drink, wine, beer. Being tourism agent, tourism service, depot and land for rent, transportation service.
IMPORT & EXPORT ACTIVITIES
IMPORT: The main goods source of the subject is imported from China, Belgium, India and Italy. A little is imported from Germany
EXPORT: The subject has no export activities. It just distributes products in local market.
BANKERS
1. DONG A BANK - BINH DUONG BRANCH
Address		No. 15, Dinh Bo Linh Str, Phu Cuong Ward, Thu Dau Mot Township, Binh Duong Province
Country		Vietnam
Tel		(84-650) 859 450 – 859 447
Fax		(84-650) 859 448
Swift		EACBVNVX
Account No		000276510005
SHAREHOLDER (S)
Current shareholders
1. NAME		Mr. HOANG HAI
Position		Chairman
Qualification		Bachelor
Resident		No. 34, Dong Da Str, Ward 2, Tan Binh Dist, Hochiminh City
Nationality		Vietnamese
Shares		40%
Values		4,000,000,000 VND
2. NAME		Mrs. TRUONG THI THUY TRUONG
Position		Director, legal representative
Date of birth		May 18^th, 1966
ID No		021824104
Issued on		March 4^th, 2004
Issued by		Police Station of Hochiminh City
Current resident		No. 130/18, Ho Ba Kien Str, Ward 15, Dist 10, Hochiminh City
Nationality		Vietnamese
Cell phone		++84 903908508
Shares		60%
Values		6,000,000,000 VND
Former shareholders
1. NAME		Mrs. TRUONG THI THUY TRUONG
Position		Director
Date of birth		May 18th, 1966
ID No		021824104
Issued on		March 4^th, 2004
Issued by		Police Station of Hochiminh City
Current resident		No. 101A, To Hien Thanh Str, Ward 15, Dist 10, Hochiminh City
Nationality		Vietnamese
Shares		70%
2. NAME		Mrs. DUONG THANH LUAN
Position		Former Sales Executive
Qualification		Bachelor
Address		Binh Duong Province
Nationality		Vietnamese
Hand Phone		++84 903156197
Shares		30%
FINANCIAL DATA
The full financial statement in some recent years the subject is not available. Following is its financial highlight:
Unit: 1,000,000 VND
Description			2006		2005		2004
Current assets & Short term investment			76,766		4,975		35,053
Fixed assets & Long term investment			10,213		17,000		2,212
Total assets			86,979		21,975		37,265
Payable			42,183		4,900		30,722
Owner’s Equity			44,796		17,075		6,543
Total Liability and Equity			86,979		21,975		37,265
Total revenue			146,252		32,600		103,157
Deduction Items			78		0		0
Net revenue			146,174		32,600		103,157
Net income from business activities			778		65		2,201
Net income from financial operation			0		0		-447
Irregular profit			0		33		0
Total pre-tax profit			778		98		1,754
And following is financial statement of some past years :
BALANCE SHEET
Unit: 1,000,000 VND
Balance Sheet Date				31/12/2003		31/12/2002
Number of Weeks				52		52
ASSET
A. Current assets & Short term Investment				16,985		21,702
I. Cash and cash equivalents				1,278		1,411
II. Short term investment				0		0
1. Short-term securities investment				0		0
2. Other short-term investment				0		0
3. Provision for discount on value of short-term investment				0		0
III. Receivables				2,380		1,648
1. Receivables from customers				1,851		1,048
2. Prepaid for providers				0		0
3. Value-added tax deducted				529		600
4. Internal receivables				0		0
5. Other receivables				0		0
6. Provision for downfall receivable				0		0
IV. Inventory				12,465		17,306
1. On-transportation				0		0
2. Inventory materials				0		0
3. Inventory appliance				0		0
4. Expense for production in progress				0		483
4. Inventory finished products				0		0
5. Inventory goods				12,465		16,823
7. Goods on consignment				0		0
8. Provision for inventory devaluation				0		0
V. Other current assets				862		1,337
VI. Administrative				0		0
1. Administrative expenditure of last year				0		0
2. Administrative expenditure of this year				0		0
B. Fixed assets & Long term investment				1,506		815
I. Fixed assets				1,506		815
1. Tangible fix assets				1,506		815
+ Original cost				2,214		1,192
+ Accumulated depreciation value				-708		-377
2. Financial leasing fixed assets				0		0
+ Original cost				0		0
+ Accumulated depreciation value				0		0
3. Intangible fix 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 contribution				0		0
3. Other long-term investment				0		0
4. Provision for long-term investment reduction				0		0
III. Construction in progress				0		0
IV. Other				0		0
TOTAL ASSETS				18,491		22,517
LIABILITIES
A. Payables				13,125		17,371
I. Short term payables				13,125		17,371
1.Short-term borrowings				4,221		7,931
2. Long-term liabilities matured				0		0
3. Payables to supplier				0		0
4. Prepaid for buyer				8,854		9,455
5. Other taxes and obligation				50		-15
6. Staff expenses				0		0
7. Payable to internal unit				0		0
8. Other payables				0		0
II. Long term payables				0		0
1. Long-term borrowings				0		0
2. Long-term liabilities				0		0
III. Other liabilities				0		0
1. Payable expenses				0		0
2. Remaining assets to be settled				0		0
3. Long-term security				0		0
B. Owner’s Equity				5,366		5,146
I. Capital and Funds				5,358		5,143
1. Paid- in Capital				5,000		5,000
2. Asset reevaluation difference				0		0
3. Exchange rate difference				0		0
4. Business development fund				0		0
5. Financial reserve fund				88		22
6. Retained profit				5		1
7. Construction capital				265		120
II. Other administrative and fund sources				8		3
1. Provision financial for lose job				0		0
2. Encouragement and social welfare fund				8		3
3. Administrative expense resource				0		0
4. Expenditures for fixed assets				0		0
TOTAL LIABILITY AND EQUITY				18,491		22,517
PROFIT & LOSE ACCOUNTS
Description				FY 2003		FY 2002
Total revenue				55,022		34,913
Revenue from export				0		0
Deductions Items				0		0
- Discount				0		0
- Sales reduction				0		0
- Sales returns				0		0
- Turnover tax, luxury tax & export tax to be paid				0		0
1. Net revenue				55,022		34,913
2. Cost of goods sold				51,871		33,409
3. Combined Profit				3,151		1,504
4. Selling expenses				0		0
5. General administration expenses				2,659		1,188
6. Net income from business operation				492		316
Income from financial operation				0		0
Expenditure from financial operation				0		0
7. Net income from financial operation				0		0
Irregular income				44		13
Irregular expenditure				270		209
8. Irregular Profit				-226		-196
9. Total pre-tax profit				266		120
10. Income tax				86		38
11. After tax profit				180		82
FINANCIAL FACTORS
Description				2003		2002
Current Liquidity Ratio				1.29		1.25
Quick Liquidity Ratio				0.34		0.25
Inventory Circle				3.48		3.86
Average Receivable Period (days)				15.79		17.23
Utilizing Asset performance				2.98		1.55
Liabilities / Total Assets (%)				70.98		77.15
Liabilities / Owner’s Equity (%)				244.60		337.56
Income before tax/ Total assets (%) ROA				1.44		0.53
Income before tax/ Owner’s Equity (%) ROE				4.96		2.33
Income before tax / Total revenues (%) NPM				0.48		0.34
Gross profit / Total revenues (%) GPM				5.73		4.31
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Normal
Liquidity		Above average
Payment Status		Average
Past Financial Situation		Normal
Current Financial Situation		Fairly good
Legal Action		No recorded
Bankruptcy		No recorded
Reputation		Normal
Modes of Payment		Through its corresponding bank by telegraphic transfer (T/T), document against acceptance (D/A 60 days or D/A 90 days) or document against payment (D/P)
Sales methods		Directly to clients or through its agents
Development trend		Average
INTERPRETATION ON THE SCORES
The An Nong company limited is a manufacturer of pesticide, herbicide and crop protection chemicals. It was officially established in 1996 in Binh Duong province, where is the nearby province of Hochiminh city. In February 2005, it changed its location and moved to Long An province. The owners established a new company in order to get preferential treatment. It still keeps intact the transaction name, the board of director as well as the business activities. These changes in business bring the subject a new image and conveniences in infrastructure as well as investment incentive in industrial zone. The An Nong is now focused on the manufacture, packaging and trading in kinds of pesticide, herbicide and crop protection chemicals. Currently, the subject has about 30 types of products. Besides, it also processes and packages materials which are imported from China, Belgium, India and Italy. The subject's brand name are diversified, such as BERANNONG 500 EC, BERANNONG 100 EC, ANNONGVIN 45 SC, ANNONGVIN 100 SC, ANNONGVIN 800WG, BINANNONG 75 WP…, which are now created favourable from farmers. The subject has created its trademark on the market. The subject’s position of the subject in the industry is medium. Its competitiveness in the market is fairly good. The subject has been granted “The Vietnam farmer’s friend award”. Its products are widely distributed in domestic market. However, the main markets are Southwest provinces. The premises and facilities of the subject are large. Its management capability is fair. However, this field of business contains hard competitiveness due to the presence of many big competitors. In overview, the subject is a medium sized enterprise with the potential development in the future. It is operating rather effectively. The financial status of the subject is fairly good. The subject has ability to meet small and normal business commitments. Caution needed for big business transactions.
CREDIT INQUIRY: 500,000 USD
This credit inquiry is big for the Subject. In our opinion, the Subject has capacity to meet credit amount of below 250,000 USD

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