MIRA INFORM REPORT

Report Date :

29.12.2008

IDENTIFICATION DETAILS

Name :	HOAN-DUONG TRADING AND MANUFACTURING JOINT STOCK COMPANY
Registered Office :	No. B5, Group 110 Hoang Cau Str, O Cho Dua Ward, Dong Da Dist, Hanoi City
Country :	Vietnam
Financials (as on) :	31.12.2007
Year of Establihsment :	2002
Com. Reg. No.:	0103001719
Legal Form :	Joint Stock Company
Line of Business :	Trading and Producing Foodstuff for Cattle, Chickenfeed, Additive, etc.

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
Registered English Name	HOAN-DUONG TRADING AND MANUFACTURING JOINT STOCK COMPANY
Registered Vietnamese name	CONG TY CO PHAN SAN XUAT VA THUONG MAI HOAN-DUONG
Abbreviated Name	H-D JSC
Type of Business	Joint Stock Company
Founded	2002
Business registration	No.0103001719
Issuance on	December 31^st, 2002 (last revised on September 3^rd, 2008)
Issuance by	Hanoi Planning and Investment Department
Current Legal Capital	VND 36,000,000,000
Former Legal capital	VND 5,500,000,000
Tax Code	0101330741
Total Employees	About 100 persons
Note: The name given “Hoan Duong & Manufacturing JSC” is not correct.
ADDRESSES
Head Office
Address		No. B5, Group 110 Hoang Cau Str, O Cho Dua Ward, Dong Da Dist, Hanoi City, Vietnam
Branch and Factory
Address		Dong Van Industrial Zone, Duy Tien Dist, Ha Nam Province
Country		Vietnam
Tel		(84-351) 3 582 027/ 3 836 966
Fax		(84-351) 3 836 977
Notes: The given address is registration address and head office of the subject at Hanoi City. However, almost transactions and operation are happened at this address.

DIRECTORS
1. NAME	Mr. VU CONG TRIU
Position	Chairman cum General Director
Date of birth	November 11^th, 1965
ID No.	011319393
Issuance on	May 29^th, 1998
Issuance by	Hanoi Police Station
Resident address	Thanh Cong Ward, Ba Dinh Dist., Hanoi City
Current address	Me Tri Thuong Hamlet, Me Tri Commune, Tu Liem Dist., Hanoi City
Nationality	Vietnamese
2. NAME	Mrs. NGUYEN THANH QUYNH
Position	Director of Branch
Date of Birth	1977
Nationality	Vietnamese
3. NAME	Mr. NGUYEN DOAN TOAI
Position	Chief Accountant
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject is specialized in trading and producing foodstuff for cattle, chickenfeed, additive, etc.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports raw materials and products from China, India, Australia and USA (40%)
EXPORT: N/A
BANKERS
HABUBANK – HAM LONG BRANCH
Address		No. 67C Ham Long Str., Hoan Kiem Dist., Hanoi City
Country		Vietnam
Tel		(84-4) 3 9432 435/ 958
Fax		(84-4) 3 9432 436
SHAREHOLDERS(S)
Following is its foundation shareholders:
1. NAME	Mr. VU CONG TRIU
Position	Chairman cum General Director
Date of birth	November 11^th, 1965
ID No.	011319393
Issuance on	May 29^th, 1998
Issuance by	Hanoi Police Station
Resident address	Thanh Cong Ward, Ba Dinh Dist., Hanoi City
Current address	Me Tri Thuong Hamlet, Me Tri Commune, Tu Liem Dist., Hanoi City
Nationality	Vietnamese
Number of Share	288,000 shares
Value	VND 28,800,000,000
2. NAME	Mrs. NGUYEN THI MINH
Nationality	Vietnamese
ID No.	012136928
Resident address	Thanh Cong Ward, Ba Dinh Dist., Hanoi City
Number of Shares	32,400 shares
Value	VND 3,240,000,000
3. NAME	Mr. NGUYEN ANH TUAN
ID No.	012094324
Resident address	No. 76, De La Thanh Str., Ngoc Khanh Ward, Ba Dinh Dist., Hanoi City
Nationality	Vietnamese
Note: Mr. Nguyen Anh Tuan transferred his shares.
FINANCIAL DATA
BALANCE SHEET
Unit: million VND
Balance sheet date				31/12/2007	31/12/2006
Number of weeks				52	52
ASSETS
A – CURRENT ASSETS				22,626	11,552
I. Cash and cash equivalents				2,424	650
1.Cash				2,424	650
2.Cash equivalents				0	0
II. Short-term investments				0	0
1. Short-term investments				0	0
2. Provisions for devaluation of short-term investments				0	0
III. Accounts receivable				1,309	2,888
1. Receivable from customers				1,309	2,888
2. Prepayments to suppliers				0	0
3. Inter-company receivable				0	0
4. Receivable according to the progress of construction				0	0
5. Other receivable				0	0
6. Provisions for bad debts				0	0
IV. Inventories				15,767	5,562
1. Inventories				15,767	5,562
2. Provisions for devaluation of inventories				0	0
V. Other Current Assets				3,126	2,452
1. Short-term prepaid expenses				1,158	1,181
2. VAT to be deducted				653	1,096
3. Taxes and other accounts receivable from the State				0	0
4. Other current assets				1,315	175
B. LONG-TERM ASSETS				20,865	19,447
I. Long term account receivable				0	0
1. Long term account receivable from customers				0	0
2. Working capital in affiliates				0	0
3. Long-term inter-company receivable				0	0
4. Other long-term receivable				0	0
5. Provisions for bad debts from customers				0	0
II. Fixed assets				20,173	19,447
1. Tangible assets				20,173	19,447
Historical costs				21,914	20,737
Accumulated depreciation				-1,741	-1,290
2. Financial leasehold assets				0	0
Historical costs				0	0
Accumulated depreciation				0	0
3. Intangible assets				0	0
Initial costs				0	0
Accumulated amortization				0	0
4. Construction-in-progress				0	0
III. Investment property				0	0
Historical costs				0	0
Accumulated depreciation				0	0
IV. Long-term investments				0	0
1. Investments in affiliates				0	0
2. Investments in business concerns and joint ventures				0	0
3. Other long-term investments				0	0
4. Provisions for devaluation of long-term investments				0	0
VI. Other long-term assets				692	0
1. Long-term prepaid expenses				692	0
2. Deferred income tax assets				0	0
3. Other long-term assets				0	0
TOTAL ASSETS				43,491	30,999
LIABILITIES
A- LIABILITIES				23,231	13,742
I. Current liabilities				19,187	7,574
1. Short-term debts and loans				19,023	5,685
2. Payable to suppliers				164	1,510
3. Advances from customers				0	0
4. Taxes and other obligations to the State Budget				0	0
5. Payable to employees				0	0
6. Accrued expenses				0	0
7. Inter-company payable				0	0
8. Payable according to the progress of construction contracts				0	0
9. Other payable				0	379
10. Provisions for short-term accounts payable				0	0
II. Long-Term Liabilities				4,044	6,168
1. Long-term accounts payable to suppliers				0	0
2. Long-term inter-company payable				0	0
3. Other long-term payable				0	0
4. Long-term debts and loans				4,044	6,168
5. Deferred income tax payable				0	0
6. Provisions for unemployment allowances				0	0
7. Provisions for long-term accounts payable				0	0
B- OWNER'S EQUITY				20,260	17,257
I. Owner's equity				20,260	17,257
1. Capital				14,000	14,000
2. Share premiums				0	0
3. Other sources of capital				0	0
4. Treasury stocks				0	0
5. Differences on asset revaluation				0	0
6. Foreign exchange differences				2	0
7. Business promotion fund				0	0
8. Financial reserved fund				0	0
9. Other funds				0	0
10.Retained earnings				6,258	3,257
11. Construction investment fund				0	0
II. Other sources and funds				0	0
1. Bonus and welfare funds				0	0
2. Sources of expenditure				0	0
3. Fund to form fixed assets				0	0
TOTAL LIABILITIES AND OWNER'S EQUITY				43,491	30,999
PROFIT & LOSE STATEMENT
Description				FY 2007	FY 2006
Revenue				69,974	62,277
Deductions Items				2,815	2,197
Net Revenue				67,159	60,080
Costs of goods sold				60,775	55,898
Gross profit				6,384	4,182
Financial income				21	7
Financial expenses				2,165	1,348
In which: Loan interest expenses				0	0
Selling expenses				1,639	1,158
Administrative overheads				1,926	1,287
Net operating profit				675	396
Other income				2,758	887
Other expenses				433	581
Other profit /(loss)				2,325	306
Total accounting profit before tax				3,000	702
Current corporate income tax				0	0
Deferred corporate income tax				0	0
Profit after tax				3,000	702
FINANCIAL FACTORS
Description				2007	2006
Current liquidity ratio				1.18	1.53
Quick Liquidity ratio				0.36	0.79
Inventory circle				5.70	10.05
Average receive period				7.11	17.55
Utilizing Asset Performance				1.54	1.94
Liability/ Total Asset (%)				53.42	44.33
Liability/ Owner's equity (%)				114.66	79.63
Ebit/ Total asset (%) ROA				6.90	2.26
Ebit/ Owner's equity (%) ROE				14.81	4.07
Ebit/ Total revenue (%) NPM				4.29	1.13
Gross Profit / Total revenue (%) GPM				9.12	6.72
PAYMENT HISTORY AND EXPERIENCES
Trade Morality			Acceptable
Liquidity			Normal
Payment status			Average
Financial Situation			Above Average
Legal Action			No recorded
Bankruptcy			No recorded
Public opinion			Fairly Good
Mode of Payment			L/C , TT
INTERPRETATION ON THE SCORES
Hoan Duong Trading and Manufacturing Joint Stock Company (H-D JSC) was established in 2002 with initial legal capital of 5.5 billion VND. The subject has just adjusted the registered business to increase the legal capital by VND 36 billion. And Mr. Nguyen Anh Tuan – the foundation shareholder has just transferred his all shares. H-D JSC specializes in production and trading foodstuff of cattle, chickenfeed… including brands as DAVIS, NUHADO… The branch and factory is located at Dong Van Industrial Zone, Duy Tien Dist, Ha Nam Province. This place is about 30 Km far away from Hanoi city with production line of Denmark. The given address is registration address and head office of the subject at Hanoi City. But all business transactions of the subject are run at the branch. According to tax financial data reported in the recent years, the revenue and profit of the subject are fairly good. However, at present, Vietnam economic faces with many changes so the subject is also affected. In general, the business operation of the subject is normal. The subject has capacity to meet small business transactions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.76
UK Pound	1	Rs.71.68
Euro	1	Rs.69.17

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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