MIRA INFORM REPORT

Report Date :

21.02.2008

IDENTIFICATION DETAILS

Name :	FOOD AND CHEMICALS CO LTD
Registered Office :	No. 8/2 Nguyen Huy Tuong Str, Ward 6, Binh Thanh Dist, Hochiminh City
Country :	Vietnam
Financials (as on) :	31/12/2005
Date of Incorporation :	2002
Com. Reg. No.:	4102012327
Legal Form :	Limited Liability Company
Line of Business :	Trading in food ingredients for meat, noodle, dairy and bakery industry.

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		FOOD AND CHEMICALS COMPANY LIMITED
	Vietnamese Name		CONG TY TNHH HOA CHAT & THUC PHAM
	Abbreviated Name		FC CO., LTD
	Founded		2002
	Type of Business		Limited Liability Company
	Business Registration		No. 4102012327
	Issued on		October 28^th, 2002
	Issued by		Planning And Investment Department of HoChiMinh City
	Registered capital		2,000,000,000 VND
	Tax Code		0302764114
	Total Employees		23 employees
	Qualification		Average
	ADDRESS
	Head Office
	Current Address		No. 8/2 Nguyen Huy Tuong Str, Ward 6, Binh Thanh Dist, Hochiminh City
	Former Address		No. 33C Tran Binh Trong Str, Ward 5, Binh Thanh Dist, Hochiminh city
	Country		Vietnam
	Tel		(84-8) 297 6680 - 297 6681 - 510 4221 - 515 4519
	Fax		(84-8) 297 6682
	Email		foodchemco@hcm.vnn.vn
	Note: The subject’s head office was moved to new location on November 24^th, 2007
	DIRECTORS
	1. NAME		Mr. NGUYEN VU QUANG
	Position		Director – Legal Representative
	Qualification		Management
	Resident		No. 25 Road 30, Binh Trung Tay Ward, Dist 2, Hochiminh City
	Nationality		Vietnamese
	2. NAME		Mrs. HUYNH HANH TRANG
	Position		Deputy Director
	Qualification		Management
	Resident		No. 67/236C Bui Dinh Tuy Str, Ward 12, Binh Thanh Dist, Hochiminh city
	Nationality		Vietnamese
	3. NAME		Mrs. NGUYEN HA MY HANH
	Position		Sale Manager
	Qualification		Bachelor
	Resident		No. 3/B4 Road 23, Ward 18, Tan Binh Dist, Hochiminh city
	Nationality		Vietnamese
	Cell Phone		(84) 908 282 062
	BUSINESS NATURE AND ACTIVITIES
	The subject is specializing in trading in food ingredients for meat, noodle, dairy and bakery industry.
	IMPORT & EXPORT ACTIVITIES
	IMPORT: The subject imports products from France, Germany, Singapore, Indonesia, Malaysia, India, Canada and Thailand.
	EXPORT: N/A
	BANKERS
	1. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
	Address		29 Ben Chuong Duong Str, Hochiminh City, Vietnam
	Tel		(84-8) 8251317
	Fax		(84-8) 8297228
	Telex		811234/5 VVB-VT
	Swift		BFTVVBVX 007
	2. BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM- HCM CITY BRANCH
	Address		No. 134 Nguyen Cong Tru Str, Dist 1, Hochiminh City, Vietnam
	Tel		(84-8) 8230125, 8297384
	Fax		(84-8) 8298862
	Swift		BIDVVNVX310
	3. ASIA COMMERCIAL JOINT STOCK BANK (ACB BANK)
	Address		No. 442 Nguyen Thi Minh Khai Str, Ward 5, Dist 3, Hochimih city, Vietnam
	Tel		(84-8) 8334085 - 8395179
	Fax		(84-8) 8359156
	Telex		813158ACBVT
	Swift		ASCBVNVX
	SHAREHOLDERS
	CURRENT SHAREHOLDERS
	1. NAME		Mrs. HUYNH HANH TRANG
	Position		Deputy Director
	Qualification		Management
	ID No		022253981
	Resident		67/236C Bui Dinh Tuy Str, Ward 12, Binh Thanh Dist, Hochiminh city
	Nationality		Vietnamese
	Share		45 percent
	Value		900,000,000 VND
	2. NAME		Mrs. NGUYEN HA MY HANH
	Position		Sale Manager
	Qualification		Bachelor
	ID No		022613997
	Resident		3/B4 Road 23, Ward 18, Tan Binh Dist, Hochiminh city
	Nationality		Vietnamese
	Share		45 percent
	Value		900,000,000 VND
	3. NAME		Mrs. NGUYEN THI YEN PHUONG
	ID No		022613995
	Resident		91/23 Road 33, Ward 18, Tan Binh Dist, Hochiminh city
	Nationality		Vietnamese
	Share		10 percent
	Value		200,000,000 VND
	PAYMENT HISTORY AND EXPERIENCES
	Trade Morality		Average
	Liquidity		Fair
	Payment status		Average
	Past Financial Situation		Normal
	Current Financial Situation		Average
	Litigation Data		No recorded
	Bankruptcy		No recorded
	Public opinion		Normal
	Payment Methods		Directly to clients or through its bank
	Sale Methods		Direct to clients
	FINANCIAL DATA
	The latest financial statement is not available. Following is the financial highlight in 2006:
	Unit: 1,000,000 VND
	Current assets & Short term investment			7,766
	Fixed assets & Long term investment			627
	Total assets			8,393
	Payable			4,423
	Owner’s Equity			3,970
	Total Liability and Equity			8,393
	Total revenue			25,073
	Deduction Items			14
	Net revenue			25,049
	Net income from business activities			2,731
	Net income from financial operation			-155
	Irregular profit			-13
	Total pre-tax profit			2,563
	Following are full financial statement of 2005
	BALANCE SHEET
	Unit:1,000,000 VND
	Balance sheet date			31/12/2005
	Number of weeks			52
	ASSETS
	A. Working assets & short-term Investment			4,167
	I. Cash and cash equivalents			662
	1. Cash			662
	2. Cash equivalents			0
	II. Short-term investment			0
	1. Short-term securities investment			0
	2. Other short-term investment			0
	III. Receivables			2,458
	1. Receivables from customers			2,085
	2. Prepayment for providers			245
	3. Value-added tax deducted			0
	4. Internal receivables			0
	5. Other receivables			128
	6. Provision for bad receivables			0
	IV. Inventory			1,047
	1. Inventories			1,047
	2. Provisions for devaluation of inventories			0
	V. Other current assets			0
	1. Advances			0
	2. Prepaid expenses			0
	3. Pending expenses for transfer			0
	4. Pending assets			0
	5. Mortgage, collateral and short run collateral			0
	VI. Administrative			0
	1. Administrative expenses for previous year			0
	2. Administrative expenses for current year			0
	B. Fixed assets & Long term investment			800
	I. Fixed assets			800
	1. Tangible fixed assets			800
	+ Original cost			1,089
	+ Accumulated depreciation value			-289
	2. Financial leasing fixed assets			0
	+ Original cost			0
	+ Accumulated depreciation value			0
	3. Intangible fixed assets			0
	+ Original cost			0
	+ Accumulated depreciation value			0
	4. Construction in progress			0
	II. Investment property			0
	1. History costs			0
	2. Accumulated depreciation			0
	III. Long term investment			0
	1. Long-term securities investment			0
	2. Joint-venture capital contribution			0
	3. Other long-term investment			0
	4. Provision for long-term investment devaluation			0
	V. Capital construction in process			0
	VI. Other			0
	TOTAL ASSETS			4,967
	LIABILITIES
	A. Payable loans			2,799
	I. Short term payables			2,799
	1. Short-term borrowings			1,600
	2. Due long-term liabilities			790
	3. Payables to supplier			5
	4. Prepayment of buyer			404
	5. Taxes and accounts dutiable			0
	6. Employee payments			0
	7. Internal payables			0
	8. Other payables			0
	II. Long term loans			0
	1. Long-term borrowings			0
	2. Long-term payables			0
	III. Other payables			0
	1. Payable expenses			0
	2. Pending assets			0
	3. Receipts long-term collateral and deposit			0
	B. Owner’s Equity			2,168
	I. Capital and Funds			2,168
	1. Working capital			1,330
	2. Differences from asset revaluation			0
	3. Exchange rate differences			0
	4. Development investment funds			0
	5. Reserved funds			0
	6. Retained profit			838
	7. Construction capital sources			0
	II. Other administrative and fund sources			0
	1. Provident funds for unemployment			0
	2. Reward and welfare funds			0
	3. Management funds of higher level			0
	4. Functional operation funds			0
	5. Fund sources formed by fixed assets			0
	TOTAL LIABILITY AND EQUITY			4,967
	PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Description			2005
	1. Sales			17,557
	2. Deductions			0
	3. Net sales			17,557
	4. Costs of goods sold			13,666
	5. Gross profit			3,891
	6. Financial income			18
	7. Financial expenses			113
	- In which : Loan interest expenses
	8. Selling expenses			351
	9. Administrative overheads			2,278
	10. Net operating profit			1,167
	11. Other income			8
	12. Other expenses			10
	13. Other profits			-2
	14. Profit (loss) before tax			1,165
	15. Current Income tax			326
	16. Delayed Income Tax			0
	17. Profit (loss) after tax			839
	FINANCIAL FACTORS
	Description			FY 2005
	Current Liquidity Ratio			1.49
	Quick Liquidity Ratio			1.11
	Inventory Circle			13.05
	Average Receive Period			51.10
	Utilizing Asset Performance			3.53
	Liability / Total Asset (%)			56.35
	Liability / Owner's Equity (%)			129.11
	Income Before Tax / Total Asset (%) ROA			23.45
	Income Before Tax / Owner's Equity (%) ROE			53.74
	Income Before Tax / Total Revenue (%) NPM			6.64
	Gross Profit / Total Revenue (%) GPM			22.16
	INTERPRETATION ON THE SCORES
	The subject was established at the end of 2002 and officially operated in 2003. The subject is specializing in trading in food ingredients in meat, noodle, dairy and bakery industry. This field is coping with many competitors in Vietnam. The subject imports goods and materials from France, Germany, Singapore, Indonesia, Malaysia, India, Canada and Thailand... to distribute in domestic market. The subject is an exclusive agent of J.Rettenmaier & Sohne Gmbh+Co (Deutsch) in Vietnam. Main clients of the subject are manufacturers in Hochiminh City. At present, the demand for its products is increasing. The operation of the subject is busier. The premises and facilities of the subject are normal. The market share of the subject is increasing. Its reported turnover and profits capability are relative high in year of 2006 (especially profit, it increased more than 3 times-compare with 2005). Operation scale of the subject was expanded in recent years but the subject is still operating on a small scale. The prospect of development in future is average.
	The company is expected to be VULNERABLE TO ADVERSE changes in circumstances and economic conditions.

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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