MIRA INFORM REPORT

Report Date :

31.10.2011

IDENTIFICATION DETAILS

Name :	DAI NAM TRADING COMPANY LIMITED
Registered Office :	No.4 Nguyen Trai Street - May To Ward - Ngo Quyen District - Hai Phong City
Country :	Vietnam
Financials (as on) :	31.12.2010
Year of Establishment :	2004
Com. Reg. No.:	0200581224
Legal Form :	Limited Liability Company
Line of Business :	Specializes in trading agricultural products, equipments and transportation

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Viet Nam	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

English Name	DAI NAM TRADING COMPANY LIMITED
Vietnamese Name	CONG TY TNHH THUONG MAI DAI NAM
Short name	DAINAM CO., LTD
Type of Business	Limited liability company
Year Established	2004
Business Registration No.	0200581224
Date of Registration	18 Apr 2011
Place of Registration	Planning and Investment Department of Haiphong City
Current registered capital	800,000,000 VND
Status	Unlisted
Tax code	0200581224
Total Employees	15
Size	Small

ADDRESSES

Head Office
Address	No.4 Nguyen Trai Street - May To Ward - Ngo Quyen District - Hai Phong City - Vietnam
Telephone	(84-31) 3797799
Fax	(84-31) 3797789
Email	dainamvn@dainamcorp.vn
Website	http://www.dainamcorp.vn

DIRECTORS

1. NAME	Mr. DUONG DUC THO
Position	Director
Date of Birth	30 Nov 1972
ID Number/Passport	030821060
ID Issue Date	13 Dec 2007
ID Issue Place	Hai Phong Police Station
Resident	No.45/122 Dinh Dong - Dong Hai Ward - Le Chan District - Hai Phong City - Vietnam
Nationality	Vietnamese
Tel/Mobil phone	(84) 903 259 989

BUSINESS NATURE AND ACTIVITIES

The subject specializes in trading agricultural products, equipments and transportation

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Agricultural product, equipments
· Market	Malaysia, China, India, USA
· Mode of payment	TTR
EXPORT:
· Types of products	Agricultural product
· Market	China, Thailand
· Mode of payment	TTR

BANKERS

1. SAI GON BANK DA NANG BRANCH
Address	No.186 Bach Dang Street - Hai Chau District - Da Nang City - Vietnam
Telephone	(84-511) 3655206
Fax	(84-511) 3655205

SHAREHOLDERS

1. NAME	Ms. NGUYEN THI HANG
ID Number/Passport	030115047
Resident	No.18/88 Nguyen Cong Tru - Hang Kenh Ward - Le Chan District - Hai Phong City - Vietnam
Nationality	Vietnamese
Value of shares	300,000,000 VND
Percentage	37.5%
2. NAME	Mr. DUONG DUC THO
Position	Director
Date of Birth	30 Nov 1972
ID Number/Passport	030821060
Issued on	13 Dec 2007
Issued Place	Hai Phong Police Station
Resident	No.45/122 Dinh Dong - Dong Hai Ward - Le Chan District - Hai Phong City - Vietnam
Mobile phone	(84) 903 259 989
Nationality	Vietnamese
Value of shares	500,000,000 VND
Percentage	62.5%

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	3,680,241,797	1,947,680,188	1,650,373,057
I. Cash and cash equivalents	3,300,309,205	1,811,485,781	1,330,763,704
1. Cash	3,300,309,205	1,811,485,781	1,330,763,704
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	365,436,878	81,196,982	173,278,865
1. Receivable from customers	365,436,878	81,196,982	173,278,865
2. Prepayments to suppliers	0	0	0
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	0	0	0
6. Provisions for bad debts	0	0	0
IV. Inventories	0	0	129,927,000
1. Inventories	0	0	129,927,000
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	14,495,714	54,997,425	16,403,488
1. Short-term prepaid expenses	0	0	0
2. VAT to be deducted	0	34,978,896	1,054,511
3. Taxes and other accounts receivable from the State	14,495,714	20,018,529	15,348,977
4. Other current assets	0	0	0
B. LONG-TERM ASSETS	918,133,760	1,037,463,830	0
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	918,133,760	1,037,463,830	0
1. Tangible assets	918,133,760	1,037,463,830	0
- Historical costs	1,051,068,830	1,051,068,830	0
- Accumulated depreciation	-132,935,070	-13,605,000	0
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	0	0	0
- Initial costs	0	0	0
- Accumulated amortization	0	0	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	4,598,375,557	2,985,144,018	1,650,373,057
LIABILITIES
A- LIABILITIES	3,755,399,817	2,180,934,430	874,316,908
I. Current liabilities	3,755,399,817	2,180,934,430	874,316,908
1. Short-term debts and loans	3,400,000,000	1,645,000,000	700,000,000
2. Payable to suppliers	352,241,130	535,807,430	174,189,908
3. Advances from customers	0	0	0
4. Taxes and other obligations to the State Budget	3,031,687	0	0
5. Payable to employees	0	0	0
6. Accrued expenses	0	0	0
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	127,000	127,000	127,000
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	0	0	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	0	0	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	842,975,740	804,209,588	776,056,149
I. OWNER’S EQUITY	842,975,740	804,209,588	776,056,149
1. Capital	800,000,000	800,000,000	800,000,000
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	42,975,740	4,209,588	-23,943,851
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	4,598,375,557	2,985,144,018	1,650,373,057

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009	FY2008
1. Total Sale	4,331,669,644	4,609,698,491	6,092,697,107
2. Deduction item	0	0	0
3. Net revenue	4,331,669,644	4,609,698,491	6,092,697,107
4. Costs of goods sold	3,100,421,754	3,942,478,700	5,791,194,534
5. Gross profit	1,231,247,890	667,219,791	301,502,573
6. Financial income	1,928,546	1,190,935	4,489,781
7. Financial expenses	497,428,440	90,458,057	3,003,244
- In which: Loan interest expenses	497,428,440	90,458,057
8. Selling expenses	0	0	0
9. Administrative overheads	684,059,794	548,906,287	271,539,023
10. Net operating profit	51,688,202	29,046,382	31,450,087
11. Other income	0	0	0
12. Other expenses	0	0	0
13. Other profit /(loss)	0	0	0
14. Total accounting profit before tax	51,688,202	29,046,382	31,450,087
15. Current corporate income tax	12,922,050	892,943	8,806,000
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	38,766,152	28,153,439	22,644,087

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	0.98	0.89	1.89	1.22
Quick liquidity ratio	0.98	0.89	1.74	0.66
Inventory circle	-	60.69	44.57	9.77
Average receive period	30.79	6.43	10.38	24.65
Utilizing asset performance	0.94	1.54	3.69	2.22
Liability by total asset	81.67	73.06	52.98	38.74
Liability by owner equity	445.49	271.19	112.66	95.28
Ebit / Total asset (ROA)	11.94	4.00	1.91	9.15
Ebit / Owner's equity (ROE)	65.14	14.86	4.05	23.00
Ebit / Total revenue (NPM)	12.68	2.59	0.52	4.44
Gross profit / Total revenue (GPM)	28.42	14.47	4.95	9.38
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

CASH FLOW STATEMENT

(Direct method)
Items	FY2010	FY2009	FY2008
I. Cash flows from operating activities
1.Cash received from customers	4,390,270,481	4,911,549,225	6,286,337,138
2. Cash paid to suppliers	-3,529,873,237	-3,701,519,307	-6,192,485,060
3. Cash paid to employees	-341,000,000	-337,100,000	-188,300,000
4. Interest paid	-497,428,440	-90,458,057	-2,333,333
5. Income taxes paid	-7,399,235	-5,562,945	-10,000,000
6. Other operating cash receipts	14,595,118	6,048,000
7. Other operating payments	-295,341,263	-196,166,459	-221,270,630
Net cash flows from operating activities	-266,176,576	586,790,457	-328,051,885
II. Cash flows from investing activities
1. Purchases and construction of fixed assets and other long-term assets		-1,051,068,830
2. Gains from disposals and liquidation of fixed assets and other long-term assets
3. Loans given and purchases of debt instruments of other entities
4. Recovery of loans given and disposals of debt instruments of other entities
5. Investments into other entities
6. Withdrawals of investments in other entities
7. Receipts of loan interests, dividends and profit shared
Net cash flows from investing activities		-1,051,068,830
III. Cash flows from financing activities
1. Gains from stock issuance and capital contributions from shareholders
2. Repayment for capital contributions and re-purchases of stocks already issues
3. Short-term and long-term loans received	3,400,000,000	1,725,000,000	-700,000,000
4. Loan principal amounts repaid	-1,645,000,000	-780,000,000
5. Payments for financial leasehold assets
6. Dividends and profit already paid to the owners
Net cash flows from financing activities	1,755,000,000	945,000,000	-700,000,000
Net cash flows during the year	1,488,823,424	480,721,627	371,948,115
Beginning cash and cash equivalents	1,811,485,781	1,330,763,704	958,815,589
Effects of fluctuations in foreign exchange rates
Ending cash and cash equivalents	3,300,309,205	1,811,485,331	1,330,763,704

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	TTR
Sale Methods	To contracts
Public opinion	Good

INTERPRETATION ON THE SCORES

DAI NAM TRADING COMPANY LIMITED was founded in 2004. Currently, the subject has operated under business registration No. 0200581224 (the same tax code) granted by Planning and Investment Department of Haiphong City with registered capital of VND 800 million.

The subject is located at No.4 Nguyen Trai Street - May To Ward - Ngo Quyen District - Hai Phong City - Vietnam. It specializes in trading agricultural products, equipments and transportation. It has imported agricultural product, equipments from Malaysia, China, India, USA. The subject has also exported to China, Thailand.

Following financial data provided by the subject, its financial situation is average. It achieved total sales of VND 4,331,669,644 and profit after tax of VND 38,766,152 in 2010. Those figures show that the revenue decreased 7% compared with last year but the profit increased 38%. The financial leverage seems not good because the liability by owner equity and the liability by total asset are higher much than the average industry.

In general, the subject is a small company whose position is humble in the industry. The subject needs to try its best to develop in the future. Mr. Duong Duc Tho - Director shared that the company has welcomed new customers. The subject has capacity to meet small transactions. Caution needed for medium and large ones.

------------ APPENDIXES ----------

INDUSTRY DATA

Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2009	Total employees 2010 (Thous.pers.)	Annual average capital of enterprises 2009 (billion dongs)
	2010	2009
Agriculture, Forestry and Fishing	2.78	1.82	8,749	23,896.3	81,559
Industry and Construction	7.70	5.52	85,115	10,630	2,751,975
Trade and Services	7.52	6.63	154,978	14,522	4,939,069

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	72.2	57.1	62.7
Imports	84.8	69.9	80.7
Trade Balance	-12.6	-12.8	-18

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.82
UK Pound	1	Rs.78.57
Euro	1	Rs.69.28

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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