MIRA INFORM REPORT

Report Date :

13.05.2011

IDENTIFICATION DETAILS

Correct Name :	HONG HIEP PHAT COMPANY LIMITED
Registered Office :	71A Ho Ba kien Str - Ward 15 - 10 Dist - Ho Chi Minh City - Vietnam
Country :	Vietnam
Financials (as on) :	31.12.2010
Year of Establishment :	2001
Com. Reg. No.:	0302472577
Legal Form :	Limited Liability Company
Line of Business :	Commercial service, mandated import-export service

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Vietnam	b1	b1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
English Name	HONG HIEP PHAT COMPANY LIMITED
Vietnamese Name	CONG TY TNHH HONG HIEP PHAT
Type of Business	Limited liability company
Year Established	2001
Business Registration No.	0302472577
Date of Registration	29 Aug 2009
Place of Registration	Business Registration Department of Hochiminh City
Current registered capital	5,700,000,000 VND
Tax code	0302472577
Total Employees	17

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Registered English Name: NAM DU CONSTRUCTION AND TRADING LIABILITY LIMITED COMPANY Changed to: HONG HIEP PHAT COMPANY LIMITED	01 Sep 2009
2	Subject has got former Registered Vietnamese Name: CONG TY TNHH XAY DUNG THUONG MAI DICH VU NAM DU Changed to: CONG TY TNHH HONG HIEP PHAT	01 Sep 2009
3	Subject has got former Business Registration No: 4102007563 Changed to: 0302472577	29 Aug 2009

company ADDRESSES

Head Office
Address	71A Ho Ba kien Str - Ward 15 - 10 Dist - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3970 6075
Fax	(84-8) 3970 6076
Email	info@hhp.com.vn
Warehouse
Current Address	305 Thoai Ngoc Hau Str - Hiep Tan Ward - Tan Phu Dist - Ho Chi Minh City - Vietnam
Former Address	211-213 - Ly Thuong Kiet Street - District 10 - Hochiminh City

DIRECTORS

1. NAME	Mr. NGUYEN VAN NHAN
Position	Director – legal representative
Date of Birth	05 June 1969
ID Number/Passport	023272282
Resident	71A Ho Ba kien Street - Ward 15 - 10 District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Qualification	Management
2. NAME	Ms. TRINH THI TUONG VI
Position	Deputy Sales Manager
ID Number/Passport	024824698
Resident	471/27 Pham Van Bach Street - Ward 15 - Tan Binh District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Qualification	Bachelor
3. NAME	Ms. NGUYEN THI NGOC TRINH
Position	Chief Accountant
ID Number/Passport	023375583
Resident	274 Bui Minh truc Street - Ward 6 - 8 District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Qualification	Bachelor

BUSINESS NATURE AND ACTIVITIES

The subject is specializing in trading veterinary medicine.
Following are the subject’s registered business activities:
• Commercial service, mandated import-export service
• Constructing and repairing construction of civil, industry, irrigational works.
• Spreading on road surface, interior decoration
• Trading office stationery, spare parts for motorbike and car, materials for household and industrial electricity, household appliances, telecommunication equipment, chemical, computer, woven goods, building materials
• Transporting goods by cars
• Manufacturing and trading agricultural materials, fertilizer, botanic protection pesticide
• Breeding, cultivating and aquaculture

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Veterinary medicine
· Market	India, American, China, Bulgaria
· Mode of payment	D/P
EXPORT: N/A

BANKERS

ASIA COMMERCIAL JOINT STOCK BANK
Address	No. 442 Nguyen Thi Minh Khai Street - Ward 5 - 3 District - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3833 4085/3839 5179/3929 0999
Fax	(84-8) 3835 9156/ 3839 9885

SHAREHOLDERS

1. NAME	Mr. LE VAN CHINH
ID Number/Passport	024466104
Resident	471/27 Pham Van Bach Street - Ward 15 - Tan Binh District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Value of shares	684,000,000 VND
Percentage	12%
2. NAME	Ms. DUONG THI THANH DIEM
ID Number/Passport	340971206
Resident	Phu Hoa A Hamlet Phu Thuan A Commune - Hong Ngu District - Dong Thap Province - Vietnam
Nationality	Vietnamese
Value of shares	285,000,000 VND
Percentage	5%
3. NAME	Ms. NGUYEN THUY TU
ID Number/Passport	022279336
Resident	132/25B To Hien Thanh Street - Ward 15 - 10 District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Value of shares	1,026,000,000 VND
Percentage	18%
4. NAME	Ms. NGUYEN THI NGOC TRINH
Position	Chief Accountant
ID Number/Passport	023375583
Resident	274 Bui Minh Truc Street - Ward 6 - 8 District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Value of shares	456,000,000 VND
Percentage	8%
5. NAME	Ms. NGUYEN THI TRA MI
ID Number/Passport	023069434
Resident	71 Ho Ba Kien Street - Ward 15 - 10 District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Value of shares	171,000,000 VND
Percentage	3%
6. NAME	Mr. NGUYEN VAN NHAN
Position	Director
ID Number/Passport	023272282
Resident	132/25B To Hien Thanh Street - Ward 15 - 10 District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Value of shares	2,793,000,000 VND
Percentage	49%
7. NAME	Ms. TRINH THI TUONG VI
Position	Deputy Sales Manager
ID Number/Passport	024824698
Resident	471/27 Pham Van Bach Street - Ward 15 - Tan Binh District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Value of shares	285,000,000 VND
Percentage	5%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010	31/12/2009	31/12/2008
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	12,364,000,000	9,515,992,818	6,555,000,000
I. Cash and cash equivalents	1,954,000,000	1,093,317,105	3,528,000,000
1. Cash	1,954,000,000	1,093,317,105	3,528,000,000
2. Cash equivalents	0	0	0
II. Short-term investments	0	0	0
1. Short-term investments	0	0	0
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	5,566,000,000	1,767,509,000	1,417,000,000
1. Receivable from customers	4,183,000,000	1,767,509,000	1,417,000,000
2. Prepayments to suppliers	1,381,000,000	0	0
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	2,000,000	0	0
6. Provisions for bad debts	0	0	0
IV. Inventories	4,474,000,000	2,829,956,686	1,552,000,000
1. Inventories	4,474,000,000	2,829,956,686	1,552,000,000
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	370,000,000	3,825,210,027	58,000,000
1. Short-term prepaid expenses	0	65,252,085	0
2. VAT to be deducted	217,000,000	116,439,837	58,000,000
3. Taxes and other accounts receivable from the State	0	0	0
4. Other current assets	153,000,000	3,643,518,105	0
B. LONG-TERM ASSETS	2,658,000,000	3,673,409,284	5,595,000,000
I. Long term account receivable	0	0	0
1. Long term account receivable from customers	0	0	0
2. Working capital in affiliates	0	0	0
3. Long-term inter-company receivable	0	0	0
4. Other long-term receivable	0	0	0
5. Provisions for bad debts from customers	0	0	0
II. Fixed assets	2,658,000,000	3,673,409,284	5,595,000,000
1. Tangible assets	2,609,000,000	3,614,572,351	2,795,000,000
- Historical costs	3,610,000,000	4,250,250,357	3,404,000,000
- Accumulated depreciation	-1,001,000,000	-635,678,006	-609,000,000
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	49,000,000	58,836,933	2,800,000,000
- Initial costs	62,000,000	61,035,300	2,800,000,000
- Accumulated amortization	-13,000,000	-2,198,367	0
4. Construction-in-progress	0	0	0
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	0	0	0
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	0	0
3. Other long-term investments	0	0	0
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	0	0	0
1. Long-term prepaid expenses	0	0	0
2. Deferred income tax assets	0	0	0
3. Other long-term assets	0	0	0
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	15,022,000,000	13,189,402,102	12,150,000,000
LIABILITIES
A- LIABILITIES	8,617,000,000	7,369,925,288	3,857,000,000
I. Current liabilities	8,067,000,000	6,266,591,960	3,857,000,000
1. Short-term debts and loans	6,522,000,000	5,878,666,672	3,620,000,000
2. Payable to suppliers	0	257,549,952	234,000,000
3. Advances from customers	0	0	0
4. Taxes and other obligations to the State Budget	706,000,000	85,318,198	1,000,000
5. Payable to employees	0	0	0
6. Accrued expenses	24,000,000	27,821,750	2,000,000
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	815,000,000	17,235,388	0
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	550,000,000	1,103,333,328	0
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	0	0	0
4. Long-term debts and loans	550,000,000	1,103,333,328	0
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	0	0	0
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	6,405,000,000	5,819,476,814	8,293,000,000
I. OWNER’S EQUITY	6,405,000,000	5,819,476,814	8,293,000,000
1. Capital	5,700,000,000	5,700,000,000	5,700,000,000
2. Share premiums	0	0	0
3. Other sources of capital	0	0	0
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	0	0	0
7. Business promotion fund	0	0	0
8. Financial reserved fund	0	0	0
9. Other funds	0	0	0
10. Retained earnings	705,000,000	119,476,814	2,593,000,000
11. Construction investment fund	0	0	0
II. Other sources and funds	0	0	0
1. Bonus and welfare funds	0	0	0
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	15,022,000,000	13,189,402,102	12,150,000,000

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009	FY2008
1. Total Sale	25,940,000,000	15,890,841,706	9,187,000,000
2. Deduction item	0	0	0
3. Net sale	25,940,000,000	15,890,841,706	9,187,000,000
4. Costs of goods sold	20,557,000,000	12,988,342,520	5,000,000,000
5. Gross profit	5,383,000,000	2,902,499,186	4,187,000,000
6. Financial income	175,000,000	14,794,237	3,000,000
7. Financial expenses	1,641,000,000	743,153,961	237,000,000
- In which: Loan interest expenses	0	338,722,641	237,000,000
8. Selling expenses	9,000,000	20,408,170	14,000,000
9. Administrative overheads	2,969,000,000	1,490,140,784	2,844,000,000
10. Net operating profit	939,000,000	663,590,508	1,095,000,000
11. Other income	455,000,000	10,415,017	0
12. Other expenses	609,000,000	5,604,608	0
13. Other profit /(loss)	-154,000,000	4,810,409	0
14. Total accounting profit before tax	785,000,000	668,400,917	1,095,000,000
15. Current corporate income tax	200,000,000	0	307,000,000
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	585,000,000	668,400,917	788,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	1.53	1.52	1.70	1.60
Quick liquidity ratio	0.98	1.07	1.30	0.78
Inventory circle	4.59	4.59	6.42	5.89
Average receive period	78.32	40.60	56.30	39.79
Utilizing asset performance	1.73	1.20	0.76	2.87
Liability by total asset	57.36	55.88	31.74	65.48
Liability by owner equity	134.54	126.64	46.51	114.35
Ebit / Total asset (ROA)	5.23	7.64	8.44	9.01
Ebit / Owner's equity (ROE)	12.26	17.31	12.36	23.99
Ebit / Total sale (NPM)	3.03	6.34	11.16	2.51
Gross profit / Total sale (GPM)	20.75	18.27	45.58	24.86
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Fair
Liquidity	Medium
Payment status	Average
Financial Situation	Average
Development trend	Developing
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	D/P
Sale Methods	Retailer and Wholesaler
Public opinion	Normal

CREDIT INQUIRY: 125,000 Against da in terms.

Acceptable!

INTERPRETATION ON THE SCORES

The subject – HONG HIEP PHAP COMPANY LIMITED was established in 2001 under the English name of Nam Du Construction and Trading Liability Limited Company. In September 2009, the subject changed its name to Hong Hiep Phat Company Limited. The subject is operating under business registration 0302472577 (the same with tax code) and registered capital VND 5,700,000,000.
The subject is specializing in trading veterinary medicine. Its products directly import from India, American, China and Bulgaria. Customers of the subject are in domestic market, especially southern provinces.
The premises and facilities of the subject are normal. The subject’s owners have experiences in this field. The share market of the subject is medium.
According to financial data, its annual turnover was increased regularly. However the profit in 2010 was decreased compared with previous years. Explaining for this result, subject’s chief accountant – Ms. Nguyen Thi Ngoc Trinh said that, the subject was affected by foreign currency exchange rate differences in the fourth quarter of 2010. The quick liquidity ratio is higher than average industry ratio as well as the loan and debt in short, long term is guaranteed by total asset and owner equity. According to Ms. Ngoc Trinh, the subject is doing the procedure to change its shareholders.
The Vietnam market of veterinary medicine has developed in recent years. So the subject has many opportunities to grow up. Business situation of the subject is now busy. In our opinion, the subject has capacity to meet small-normal business transactions.

APPENDIXES

INDUSTRY DATA
Industry code	Growth speed (%)		Total employees 2009 (Thousand)		Total enterprises	Annual average capital of enterprises
	Predict 2010	2009
Agriculture, Forestry and Fishing	2.8	3.0	24,788.5		2,399	50,530
Trade and Services	7.5	11	10,517.9		79,181	1,754,973
Construction	7	11.3	2,692.8		17,783	248,268
Manufacturing	12	7.6	7,591.2		30,786	967,068
ECONOMIC INDICATORS
			2010	2009		2008
Population (Million person)			86.93	86.02		86.1
Gross Domestic Products (US$ billion)			102.2	91		84.9
GDP Growth (%)			6.78	5.32		6.2
GDP Per Capita (US$)			1,160	1,080		1,040
Inflation (% Change in Composite CPI)			11.75	6.88		24.4
SERVICE TRADE PERFORMANCE
Billion USD			2010	2009		2008
Exports			71.6	56.6		62.9
Imports			84	68.8		76.6
Trade Balance			-12.4	-12.2		-14.6

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.79
UK Pound	1	Rs.73.19
Euro	1	Rs.63.59

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	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
----	NB	New Business	----

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.