MIRA INFORM REPORT

Report Date :

01.12.2008

IDENTIFICATION DETAILS

Name :	NONG PHAT TRADING CO., LTD
Registered Office :	No. 387 Nguyen Trong Tuyen Str, Ward 2, Tan Binh Dist, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2007
Year of Establishment :	1993
Com. Reg. No.:	053238
Legal Form :	Private Owned Company
Line of Business :	Trading in Pesticide only and agent for goods on consignment of both of Saigon pesticide Company and Thanh Son Agro-Chemicals Company Limited.

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

Trans English Name	NONG PHAT TRADING CO., LTD
Vietnamese Name	CONG TY TNHH THUONG MAI NONG PHAT
Trade Name	NONG PHAT TRADING AND SERVICE CO., LTD
Founded	1993
Type of Business	Private Owned Company
Established Decision	766/GP-UB
Issued on	July 8^th, 1993
Issued by	People’s Committee of Hochiminh City
Business Registration	053238
Issued on	July 14^th, 1993
Issued by	Planning and Investment Department of Hochiminh City
Registered Capital	3,400,000,000 VND
Tax code	0301419926
Total Employees	40 employees of the Company

ADDRESSES

Head Office
Address	No. 387 Nguyen Trong Tuyen Str, Ward 2, Tan Binh Dist, Hochiminh City, Vietnam
Tel	(84-8) 844 8489 / 8442778
Fax	(84-8) 842 1331
Email	nongphatco@hcm.vnn.vn

DIRECTORS

1. NAME	Mr. NGUYEN NGOC DUC
Position	Director
Qualification	Management
Resident	387 Nguyen Trong Tuyen St, Ward 2, Tan Binh Dist, Hochiminh City
ID Card No	310038551
Nationality	Vietnamese
Tel	++84 903 703 404
2. NAME	Mr. VO VAN MINH
Position	Deputy Director
Address	Moi Hamlet, Long Dinh Village, Chau Thanh Dist, Tien Giang Province
ID Card No	310866255
Country	Vietnam

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in trading in pesticide only and agent for goods on consignment of both of Saigon pesticide Company and Thanh Son Agro-Chemicals Company Limited.

Registered trading items:

• Trading in goods, agricultural products, equipment, and machinery for agriculture production, fertilizers and pesticide
• Agent for goods on consignment

IMPORT & EXPORT ACTIVITIES

IMPORT: The main goods source of the subject is imported from India, Korea, China, Indonesia, Malaysia, Germany and USA and from the other pesticide companies in Vietnam.

EXPORT: N/A

BANKERS

EXIMBANK (VIETNAM EXPORT IMPORT BANK) – CHO LON BRANCH
Address	55 Nguyen Chi Thanh Str, Dist 5, Hochiminh City, Vietnam
Tel	(84-8) 38321220
Fax	(84-8) 38321230
Acc	10041485010560
Note: the given bank: Name: HOUSING BANK OF MEKONG DELTA Add : 2-4-6 Dong Khoi Str, Dist 1, HCM, Vietnam Acc No: 432101371942 According to Chief of accountant of the subject, the subject has not transaction with above bank and acc number.

SHAREHOLDER(S)

The subject is a Private Liability Company. Following is its shareholders:
1. Name	Mr. NGUYEN NGOC DUC
Position	Director
Qualification	Management
Address	No. 387, Nguyen Trong Tuyen St, Ward 2, Tan Binh Dist, Hochiminh city
ID Card No	310038551
Nationality	Vietnamese
Share	71%
Value	2,414,000,000 VND
2. Name	Mr. VO VAN MINH
Position	Deputy Director
Address	Moi Hamlet, Long Dinh Village, Chau Thanh Dist, Tien Giang Province
ID Card No	310866255
Nationality	Vietnamese
Share	29%
Value	986,000,000 VND

FINANCIAL DATA

BALANCE SHEET
Unit: 1 VND
Balance sheet date			31/12/2007			31/12/2006				31/12/2005
Number of weeks			52
ASSETS
A -	CURRENT ASSETS		80,991,401,220				84,373,341,996			55,611,120,442
I.	Cash and cash equivalents		1,895,532,529				4,436,307,734			332,864,656
1.	Cash		681,852,529				3,222,627,734			332,864,656
2.	Cash equivalents		1,213,680,000				1,213,680,000			0
II.	Short-term financial investments		0				0			0
1.	Short-term investments									0
2.	Provisions for devaluation of short-term investment stocks									0
III.	Accounts receivables		20,238,493,660				44,550,660,187			27,746,089,757
1.	Receivable from customers		20,010,493,660				44,550,660,187			27,746,089,757
2.	Prepayment to suppliers		228,000,000				0			0
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		54,951,238,099				32,763,361,386			25,493,642,335
1.	Raw materials, spare parts,		54,951,238,099				32,763,361,386			25,493,642,335
2.	Provisions for devaluation of inventories									0
V.	Other current assets		3,906,136,932				2,623,012,689			2,038,523,694
1.	Short-term prepaid expenses		6,978,532				0			146,604,819
2.	Value added tax deducted		3,899,158,400				2,623,012,689			1,891,918,875
3.	Taxes receivables									0
4.	Other current assets
B -	LONG TERM ASSETS		1,556,999,853				1,069,888,584			1,287,143,204
I.	Long term accounts receivable		0				0			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
II.	Fixed assets		941,999,853				1,069,888,584			1,287,143,204
1.	Tangible fixed assets		941,999,853				1,069,888,584			1,287,143,204
	Historical costs		2,448,173,930				2,393,173,930			2,352,393,126
	Accumulated depreciation		-1,506,174,077				-1,323,285,346			-1,065,249,922
2.	Finance lease assets		0				0			0
	Historical costs									0
	Accumulated depreciation									0
3.	Intangible assets		0				0			0
	Historical costs									0
	Accumulated depreciation									0
4.	Construction in progress									0
III.	Investment property		0				0			0
	Historical costs									0
	Accumulated depreciation									0
IV.	Long term financial investments		615,000,000				0			0
1.	Investments subsidiary company									0
2.	Investments in business concerns and joint ventures		615,000,000				0			0
3.	Other long term investments									0
4.	Provisions for devaluation of long-term investments stock									0
V.	Other long term assets		0				0			0
1.	Long term prepaid expenses									0
2.	Deferred income tax assets									0
3.	Other long term assets									0
	TOTAL ASSETS		82,548,401,073				85,443,230,580			56,898,263,646
LIABILITIES
A -	LIABILITIES		78,702,453,511				82,148,678,545			54,108,132,872
I.	Short term liabilities		78,702,453,511				82,148,678,545			54,108,132,872
1.	Short term debts and borrowings		9,313,700,000				9,397,100,000			2,945,500,000
2.	Payable to suppliers		69,381,517,511				72,652,980,805			50,025,890,831
3.	Advances from customers									396,582,734
4.	Taxes and other accounts payable to the State Budget		0				92,225,740			691,803,647
5.	Payable to employees									0
6.	Accrued expenses									0
7.	Payable to inter- company									0
8.	Progress payments due to construction contract									0
9.	Other payables		7,236,000				6,372,000			48,355,660
10.	Provision for short term payable
II.	Long term liabilities		0				0			0
1.	Long term account payable to suppliers									0
2.	Long term inter-company payables									0
3.	Other long term payables									0
4.	Long term debts and borrowings									0
5.	Deferred income tax liabilities									0
6.	Provision for unemployment
7.	Provision for long term payable
B -	OWNER’S EQUITY		3,845,947,562				3,294,552,035			2,790,130,774
I.	Owner’s equity		3,845,947,562				3,294,552,035			2,790,130,774
1.	Owners' Investment capital		2,534,000,000				2,534,000,000			2,534,000,000
2.	Share premiums									0
3.	Other owners’ capital									0
4.	Treasury shares									0
5.	Differences upon asset revaluation									0
6.	Foreign exchange differences									0
7.	Business promotion fund									0
8.	Financial reserved fund									0
9.	Other funds
10.	Undistributed earnings		1,311,947,562				760,552,035			256,130,774
11.	Investment construction capital
II.	Other sources and funds		0				0			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		82,548,401,073				85,443,230,580			56,898,263,646
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Description	FY 2007			FY 2006				F/Y 2005
1.	Sales	125,256,614,268			156,089,000,000				114,071,582,788
2.	Deductions	0			0				0
3.	Net sales	125,256,614,268			156,089,000,000				114,071,582,788
4.	Costs of goods sold	118,000,873,472			N/A				110,128,471,834
5.	Gross profit	7,255,740,796			-				3,943,110,954
6.	Financial income	102,455,019			-				16,878,108
7.	Financial expenses	1,381,979,251			-				663,506,592
	- In which : Loan interest expenses				-
8.	Selling expenses				-
9.	Administrative overheads	3,749,334,995			-				2,837,367,564
10	Net operating profit	2,226,881,569			-				459,114,906
11.	Other income	109,090,910			-				15,085,112
12.	Other expenses	1,267,771,000			-
13.	Other profits	-1,158,680,090			-				15,085,112
14.	Profit (loss) before tax	1,068,201,479			1,007,000,000				474,200,018
15.	Income tax	299,096,415			N/A				132,776,005
		0			-
16.	Profit (loss) after tax	769,105,064			-				341,424,013
FINANCIAL FACTORS
Description				FY 2007				FY 2006			FY 2005
Current Liquidity Ratio				1.03				N/A			1.03
Quick Liquidity Ratio				0.33				-			0.56
Inventory Circle				2.15				-			4.32
Average Receive Period				62.60				-			91.96
Utilizing Asset Performance				1.43				-			1.94
Liability / Total Asset (%)				95.34				-			95.10
Liability / Owner's Equity (%)				2,046.37				-			1,939.27
Income Before Tax / Total Asset (%) ROA				1.29				-			0.83
Income Before Tax / Owner's Equity (%) ROE				27.77				-			17.00
Income Before Tax / Total Revenue (%) NPM				0.85				-			0.42
Gross Profit / Total Revenue (%) GPM				5.79				-			3.46

PAYMENT HISTORY AND EXPERIENCES

Trade Morality	Fair
Liquidity	Normal
Payment status	Normal
Financial Situation	Average
Development trend	Normal
Litigation data	No Recorded
Bankruptcy	No Recorded
Payment Methods	Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C)
Sale Methods	Directly to clients

INTERPRETATION ON THE SCORES

As a limited liability company, the subject was established in 1993. It is a small size company in supply of pesticides, vegetation protection drugs. Its goods source is come from Saigon Pesticide Company, Thanh Son Agro-Chemicals Company and extracted of imported commodities from many countries on the world of other companies. It is an agent of both Saigon Pesticide Company and Thanh Son Agro-Chemicals Co., Ltd. This company also imports products of Uniphos Agro Industries Ltd, Ficom Organics Ltd, Search Chem INC Ltd (India), Changzhou Fendeng Pesticide Factory (China), Jiangyin Jianglian Industry Trade Co., Ltd, Huzhou Shinung Chemicals Co., Ltd (China).

The feature of fertilizer and pesticide enterprise in Vietnam is that the farmers could buy products on credit, and will be paid after the crop according to the result of the season. The speed of cash flow of the subject is average.

In short, the premise and facility of the subject is average. The position in the industry of the subject is normal. Although the subject had experienced a long time in activity, it has not yet occupied an important position in the industry. However, it is one of the effective private enterprises in this business field.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.09
UK Pound	1	Rs.76.68
Euro	1	Rs.63.48

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