MIRA INFORM REPORT

Report Date :

29.05.2008

IDENTIFICATION DETAILS

Name :	AGRO NUTRITION INTERNATIONAL JOINT VENTURE COMPANY LIMITED – HANAM BRANCH
Registered Office :	Lot A, Dong Van Industrial Zone, Duy Tien Dist, Ha Nam Province
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	2006
Com. Reg. No.:	110/QD-UBND
Legal Form :	Branch of Limited Liability Company
Line of Business :	Production of Animal Feed, Aquatic Feed

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 :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
Registered English Name	AGRO NUTRITION INTERNATIONAL JOINT VENTURE COMPANY LIMITED – HANAM BRANCH
Vietnamese Name	CONG TY LIEN DOANH DINH DUONG NONG NGHIEP QUOC TE (TNHH) – CHI NHANH TAI HA NAM
Trade name	AGRO NUTRITION INTERNATIONAL
Type of Business	Branch of Limited Liability Company
Founded	2006
Registered License No.	110/QD-UBND
Issuance on	March 01^st 2006
Issuance by	Ha Nam People’s Committee
Tax code	3600618918-001
Total Employees	100

PARENT COMPANY

Registered English Name	AGRO NUTRITION INTERNATIONAL JOINT VENTURE COMPANY LIMITED
Vietnamese Name	CONG TY LIEN DOANH DINH DUONG NONG NGHIEP QUOC TE (TNHH)
Trade name	AGRO NUTRITION INTERNATIONAL
Type of Business	Limited Liability Company
Founded	2003
Investment License No.	197/GP-KCN-DN
Issuance on	January 24^th, 2003
Issuance by	Dong Nai Industrial Zone Authorities
Investment Capital	USD 4,500,000
Legal Capital	USD 2,000,000
Tax code	3600618918
Total Employees	300

ADDRESSES

Head Office and Factory of the subject:
Address	Lot A, Dong Van Industrial Zone, Duy Tien Dist, Ha Nam Province
Country	Vietnam
Tel	(84-351) 582875
Fax	(84-351) 582876
Head Office and Factory of the parent company:
Address	Lot A4, Song Mai Industrial Zone, Trang Bom Dist., Dong Nai Province
Country	Vietnam
Tel	(84-61) 3968705 / 3968323
Fax	(84-61) 3968716

DIRECTORS

1. NAME	Mr. THAN TRUNG TIN
Position	Director (of the subject and its parent company)
ID No	023061306
Issued by	Ho Chi Minh City Department of Public Securities
Resident	No. 118, Nguyen Phi Khanh Str, Tan Dinh Ward, Dist 1, Hochiminh City
Nationality	Vietnamese
2. NAME	Mr. HOANG TRONG THANH
Position	Factory Manager
Contact Address	Lot A, Dong Van Industrial Zone, Duy Tien Dist, Ha Nam Province
Nationality	Vietnamese
3. NAME	Mr. CO HUY THAU
Position	Human Resource Manager
Contact Address	Lot A, Dong Van Industrial Zone, Duy Tien Dist, Ha Nam Province
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject registers and operates in the following business activities:

- Production of animal feed, aquatic feed

IMPORT & EXPORT ACTIVITIES

IMPORT: The subject imports from Malaysia, India, Argentina, Singapore

EXPORT: N/A

BANKERS

AISA COMMERCIAL BANK – HANOI BRANCH
Address	No. 57B Phan Chu Trinh Str, Hoan Kiem Dist, Hanoi City
Country	Vietnam
Tel	(84-4) 9332828
Fax	(84-4) 9335722
SACOMBANK – PHO HIEN BRANCH
Address	No. 279 Dien Bien Str, Hung Yen Town, Hung Yen Province
Country	Vietnam
Tel	(84-321) 866770
Fax	(84-321) 866769

SHAREHOLDER(S)

Name	AGRO NUTRITION INTERNATIONAL JOINT VENTURE COMPANY LIMITED
Address	Lot A4, Song Mai Industrial Zone, Trang Bom Dist., Dong Nai Province
Tel	Vietnam
Fax	(84-61) 3968705 / 3968323
Website	(84-61) 3968716
Shares	100%
FINANCIAL DATA
Note: The subject is affiliate members of Agro Nutrition International joint venture company limited. The financial statement of the subject stated under its parent company. The following financial data is belonged to its parent company
BALANCE SHEET
Unit: VND in million
Balance sheet date			31/12/2006	31/12/2005
Number of weeks			52	52
ASSETS
A – CURRENT ASSETS			106,480	62,979
I. Cash and cash equivalents			16,733	26,115
1.Cash			16,733	26,115
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			52,055	25,900
1. Receivable from customers			23,833	21,259
2. Prepayments to suppliers			26,763	3,360
3. Inter-company receivable			0	0
4. Receivable according to the progress of construction			0	0
5. Other receivable			1,459	1,281
6. Provisions for bad debts			0	0
IV. Inventories			34,229	10,479
1. Inventories			34,229	10,479
2. Provisions for devaluation of inventories			0	0
V. Other Current Assets			3,463	485
1. Short-term prepaid expenses			0	0
2. VAT to be deducted			3,463	485
3. Taxes and other accounts receivable from the State			0	0
4. Other current assets			0	0
B. LONG-TERM ASSETS			42,850	21,543
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			38,100	21,119
1. Tangible assets			33,937	21,119
Historical costs			38,323	23,069
Accumulated depreciation			-4,386	-1,950
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			4,163	0
III. Investment property			0	0
Historical costs			0	0
Accumulated depreciation			0	0
IV. Long-term investments			4,631	0
1. Investments in affiliates			4,631	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			119	424
1. Long-term prepaid expenses			119	424
2. Deferred income tax assets			0	0
3. Other long-term assets			0	0
TOTAL ASSETS			149,330	84,522
LIABILITIES
A- LIABILITIES			46,497	12,047
I. Current liabilities			45,273	11,837
1. Short-term debts and loans			10,500	0
2. Payable to suppliers			22,848	9,595
3. Advances from customers			6,747	274
4. Taxes and other obligations to the State Budget			28	0
5. Payable to employees			0	1,968
6. Accrued expenses			4,330	0
7. Inter-company payable			0	0
8. Payable according to the progress of construction contracts			0	0
9. Other payable			820	0
10. Provisions for short-term accounts payable			0	0
II. Long-Term Liabilities			1,224	210
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			1,224	210
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			102,833	72,475
I. Owner's equity			102,235	71,758
1. Capital			63,492	29,992
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			0	0
7. Business promotion fund			945	945
8. Financial reserved fund			945	945
9. Other funds			0	0
10.Retained earnings			36,853	39,876
11. Construction investment fund			0	0
II. Other sources and funds			598	717
1. Bonus and welfare funds			598	717
2. Sources of expenditure			0	0
3. Fund to form fixed assets			0	0
TOTAL LIABILITIES AND OWNER'S EQUITY			149,330	84,522
PROFIT & LOSS STATEMENT
Description		FY 2005		FY 2004
Revenue		644,605		406,271
Deductions Items		28,913		7,017
- Discount		0		0
- Devaluation		0		0
- Return of sold goods		0		0
- Turnover tax, Luxury tax & Export tax		0		0
Net Revenue		615,692		399,254
Costs of goods sold		512,243		340,723
Gross profit		103,449		58,531
Financial income		328		153
Financial expenses		1,062		350
In which: Loan interest expenses		-		-
Selling expenses		15,749		6,167
Administrative overheads		8,074		4,719
Net operating profit		78,892		47,448
Other income		31		57
Other expenses		6		12
Other profit /(loss)		25		45
Total accounting profit before tax		78,917		47,493
Current corporate income tax		0		0
Deferred corporate income tax		0		0
Profit after tax		78,917		47,493
FINANCIAL FACTORS
Description		2006		2005
Current liquidity ratio		2.35		5.32
Quick Liquidity ratio		1.60		4.44
Inventory circle		22.92		32.51
Average receive period		37.09		27.75
Utilizing Asset Performance		3.43		4.03
Liability/ Total Asset (%)		31.14		14.25
Liability/ Owner's equity (%)		45.22		16.62
Income before tax/ Total asset (%) ROA		52.85		56.19
Income before tax/ Owner's equity (%) ROE		76.74		65.53
Gross Profit / Total revenue (%) GPM		16.05		14.41
Income before tax/ Total revenue (%) NPM		12.24		11.69
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Fairly Good
Liquidity	Above Average
Payment status	Fairly Prompt
Financial Situation	Above Average
Development trend	Up Trend
Litigation data	No record
Bankruptcy	No record
Payment Methods	TT, L/C
Sale Methods	Supply to distributors and agent

INTERPRETATION ON THE SCORES

The subject is a branch of Agro Nutrition International Joint Venture Company Limited in Ha Nam Province. The subject was established in March 2006 and specializes in the production of animal feed. The current position in the industry of the subject is good.

The subject in fact, is a factory of Agro Nutrition International Joint Venture Company Limited. It is responsible for production animal feed to distribute in northern region of Vietnam. This factory is the second factory in total three factories of Nutrition International Joint Venture Company. It has completed construction progress and started production in April 2007. The total investment for this factory is about USD 4 million. It includes three production lines imported from Malaysia. The design production capacity of this factory is 150,000 tons of products per year. In 2007, the subject has produced about 50,000 tons of products. It expected to reach design production capacity in 2008.

Beside this factory, the parent company of the subject also has factories in Dong Nai Province and Long An Province. It is considered one of the large animal and aquatic feed producers in Vietnam.

In general, the operation and financial of the subject are under management of its parent company. The import materials activities are approval by the parent company’s departments. The financial and legal obligations of the subject are responsible for the parent company. Agro Nutrition International Joint Venture Company has capacity to meet the commitments.

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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