MIRA INFORM REPORT

Report Date :

10.04.2012

IDENTIFICATION DETAILS

Name :	NONGVIET JOINT STOCK COMPANY

Registered Office :	No. 99/3D Le Hoang Phai Street, Ward 17, Go Vap District, Ho Chi Minh City

Country :	Vietnam

Financials (as on) :	31.12.2010

Year of Establishment :	2006

Com. Reg. No.:	0304274690

Legal Form :	Joint Stock Company

Line of Business :	Wholesale of pesticides, fertilizers and agricultural chemicals

No. of Employees :	16

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Small Company

Payment Behaviour :	No Complaints

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 – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Vietnam

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		NONGVIET JOINT STOCK COMPANY
Vietnamese Name		CONG TY CO PHAN NONG VIET
Short name		NONGVIET JSC
Logo
Type of Business		Joint stock company
Year Established		2006
Business Registration No.		0304274690
Date of Registration		07 Jul 2010
Place of Registration		Business Registration Office- Planning and Investment Department of Hochiminh City
Current registered capital		VND 1,500,000,000
Status		Unlisted
Tax code		0304274690
Total Employees		16
Size		Small

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No. 4103004543 issued on 29 Mar 2006 Changed to: 0304274690	07 Jul 2010

company ADDRESSES

Head Office
Address		No. 99/3D Le Hoang Phai Street, Ward 17, Go Vap District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 6656 1218
Fax		(84-8) 6256 5480
Email		info@nongviet.com
Website		www.nongviet.com : under construction
Note: The given address (Le Hoang Phat) is not correct. The given line (84-8 66561215) does not exist.

DIRECTORS

1. NAME		Mr. DINH QUOC HOA
Position		Chairman and General Director
Date of Birth		14 Apr 1975
ID Number/Passport		024504986
ID Issue Date		16 Mar 2006
ID Issue Place		Police Station of Ho Chi Minh city
Resident		No. 99/3D Le Hoang Phai Street, Ward 17, Go Vap District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Cell phone		(84-91) 877 1427

2. NAME		Mr. LE ANH HUNG
Position		Deputy General Director
ID Number/Passport		020275164
Resident		No. 127/5 Nguyen Van Luong Street, Ward 11, Go Vap District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese

3. NAME		Ms. NGUYEN THI THU NGA
Position		Deputy General Director
Resident		No. 99/3D Le Hoang Phai Street, Ward 17, Go Vap District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

Wholesale of pesticides, fertilizers and agricultural chemicals

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		goods
· Market		Malaysia, China

EXPORT:
· Market		Cambodia

BANKERS

1. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK GO VAP BRANCH
Address		No. 94-96-98 Nguyen Oanh Str Ward 7, Go Vap District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 38943648
Fax		(84-8) 38941918

2. EXIMBANK - GO VAP BRANCH
Address		138-140 Nguyen Oanh Str, Ward 7, Go Vap District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 3989 6483
Fax		(84-8) 3989 6485
SWIFT Code		EBVIVNVX

SHAREHOLDERS

1. NAME		Mr. DINH QUOC HOA
Position		Chairman and General Director
Date of Birth		14 Apr 1975
ID Number/Passport		024504986
Issued on		16 Mar 2006
Issued Place		Police Station of Ho Chi Minh city
Resident		No. 99/3D Le Hoang Phai Street, Ward 17, Go Vap District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Number of Shares		6,500
Value of shares		VND 650,000,000
Percentage		43.33%

2. NAME		Mr. LE ANH HUNG
Position		Deputy General Director
ID Number/Passport		020275164
Resident		No. 127/5 Nguyen Van Luong Street, Ward 11, Go Vap District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Number of Shares		6,500
Value of shares		VND 650,000,000
Percentage		43.33%

3. NAME		Ms. DINH THI MINH THUAN
ID Number/Passport		183115571
Resident		Khoi 13 Thach Ha Town, Thach Ha District, Ha Tinh Province, Vietnam
Nationality		Vietnamese
Number of Shares		1,000
Value of shares		VND 100,000,000
Percentage		6.67%

4. NAME		Ms. NGUYEN KIM YEN
ID Number/Passport		020660808
Resident		No. 127/5 Nguyen Van Luong Street, Ward 11, Go Vap District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Number of Shares		1,000
Value of shares		VND 100,000,000
Percentage		6.67%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010
Number of weeks	52
ASSETS
A – CURRENT ASSETS	13,247,127,849
I. Cash and cash equivalents	296,266,829
1. Cash	296,266,829
2. Cash equivalents	0
II. Short-term investments	0
1. Short-term investments	0
2. Provisions for devaluation of short-term investments	0
III. Accounts receivable	8,258,541,929
1. Receivable from customers	6,088,012,314
2. Prepayments to suppliers	0
3. Inter-company receivable	0
4. Receivable according to the progress of construction	0
5. Other receivable	2,170,529,615
6. Provisions for bad debts	0
IV. Inventories	4,630,799,409
1. Inventories	4,820,025,209
2. Provisions for devaluation of inventories	-189,225,800
V. Other Current Assets	61,519,682
1. Short-term prepaid expenses	0
2. VAT to be deducted	27,621,889
3. Taxes and other accounts receivable from the State	0
4. Other current assets	33,897,793
B. LONG-TERM ASSETS	2,089,464,540
I. Long term accounts receivable	0
1. Long term account receivable from customers	0
2. Working capital in affiliates	0
3. Long-term inter-company receivable	0
4. Other long-term receivable	0
5. Provisions for bad debts from customers	0
II. Fixed assets	1,386,117,487
1. Tangible assets	1,386,117,487
- Historical costs	1,689,174,046
- Accumulated depreciation	-303,056,559
2. Financial leasehold assets	0
- Historical costs	0
- Accumulated depreciation	0
3. Intangible assets	0
- Initial costs	0
- Accumulated amortization	0
4. Construction-in-progress	0
III. Investment property	0
Historical costs	0
Accumulated depreciation	0
IV. Long-term investments	0
1. Investments in affiliates	0
2. Investments in business concerns and joint ventures	0
3. Other long-term investments	0
4. Provisions for devaluation of long-term investments	0
V. Other long-term assets	703,347,053
1. Long-term prepaid expenses	0
2. Deferred income tax assets	0
3. Other long-term assets	703,347,053
TOTAL ASSETS	15,336,592,389

LIABILITIES
A- LIABILITIES	11,190,076,678
I. Current liabilities	10,037,161,998
1. Short-term debts and loans	3,158,250,000
2. Payable to suppliers	3,705,780,355
3. Advances from customers	0
4. Taxes and other obligations to the State Budget	-66,242,410
5. Payable to employees	1,301,734,786
6. Accrued expenses	0
7. Inter-company payable	0
8. Payable according to the progress of construction contracts	0
9. Other payable	1,937,639,267
10. Provisions for short-term accounts payable	0
II. Long-Term Liabilities	1,152,914,680
1. Long-term accounts payable to suppliers	0
2. Long-term inter-company payable	0
3. Other long-term payable	400,000,000
4. Long-term debts and loans	474,336,680
5. Deferred income tax payable	0
6. Provisions for unemployment allowances	278,578,000
7. Provisions for long-term accounts payable	0
B- OWNER’S EQUITY	4,146,515,711
I. OWNER’S EQUITY	3,962,455,285
1. Capital	1,500,000,000
2. Share premiums	0
3. Other sources of capital	0
4. Treasury stocks	0
5. Differences on asset revaluation	0
6. Foreign exchange differences	0
7. Business promotion fund	0
8. Financial reserved fund	0
9. Other funds	545,624,872
10. Retained earnings	1,916,830,413
11. Construction investment fund	0
II. Other sources and funds	184,060,426
1. Bonus and welfare funds	184,060,426
2. Sources of expenditure	0
3. Fund to form fixed assets	0
MINORITY’S INTEREST	0
TOTAL LIABILITIES AND OWNER’S EQUITY	15,336,592,389

PROFIT & LOSS STATEMENT

Description	FY2010
1. Total Sales	22,784,393,266
2. Deduction item	1,968,983,231
3. Net sale	20,815,410,035
4. Costs of goods sold	10,990,347,961
5. Gross profit	9,825,062,074
6. Financial income	12,239,222
7. Financial expenses	376,101,064
- In which: Loan interest expenses
8. Selling expenses	5,746,902,312
9. Administrative overheads	1,935,307,948
10. Net operating profit	1,778,989,972
11. Other income	157,345,049
12. Other expenses	33,147,356
13. Other profit /(loss)	124,197,693
14. Total accounting profit before tax	1,903,187,665
15. Current corporate income tax	475,796,917
16. Deferred corporate income tax	0
17. Interest from subsidiaries/related companies	0
18. Profit after tax	1,427,390,748

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2010	Average Industry
Current liquidity ratio	1.32	1.56
Quick liquidity ratio	0.86	0.82
Inventory circle	2.37	7.71
Average receive period	144.81	57.49
Utilizing asset performance	1.36	2.53
Liability by total assets	72.96	59.02
Liability by owner's equity	269.87	219.47
Ebit / Total assets (ROA)	12.41	13.30
Ebit / Owner's equity (ROE)	45.90	35.73
Ebit / Total sale (NPM)	8.35	7.62
Gross profit / Total sale (GPM)	43.12	16.22
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Normal
Liquidity		Medium
Payment status		Normal
Financial Situation		Normal
Development trend		Even
Litigation data		No
Bankruptcy		No
Payment Methods		Cash, L/C, T/T
Sale Methods		Retailer and Wholesaler
Public opinion		Average

CREDIT INQUIRY: US$125,000, D/A terms

Caution is needed.

INTERPRETATION ON THE SCORES

NONGVIET JSC was established in 2006. The subject is specialized in trading agricultural chemicals. Its Business Registration No is 0304274690 (latest adjusted on 07 Jul 2010 by Business Registration Office- Planning and Investment Department of Hochiminh City).

Facilities of this company are normal. Its head office is also the private house of its director (Mr. Dinh Quoc Hoa). Its managers have experienced in agro chemicals. Besides the subject, they established other companies called Cam Vu Co., Ltd and Viet Nhat Chemical JSC in 2012. Although the subject has operated for a long time, its competitiveness of the subject is still limited. Its goods (insecticides, herbicides and fungicides) with trade names Novigold 800WP, Novinano 55WP, Novistar 360WP, Novitop 850WP… have been distributed mainly to Mekong Delta area.

At the end of the financial year 2010, the consolidated balance sheet total came to VND15,337 million and therefore was VND 6,588 million above the figure for the previous year. Whereas non-current assets were up by VND 845 million to VND 2,090 million, current assets flew even further by VND 5,743milion to VND 13,247 million. The subject has had relatively high debt ratio for years.

Its business risks are fluctuation of material price has negative impacts on company’s operation because a large scale of the subject input materials are imported; the company prestige might be harm by materials imported from China because China-made fake product evil. Prospect of the subject company is that the pesticide market capacity remains to be large.

In our opinion, the subject is only capable to meet small financial commitments. Caution is needed for larger transactions.

APPENDIX

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)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,749		23,896.3	81,559
Industry and Construction	5.53	7.70	85,115		10,630	2,751,975
Trade and Services	6.69	7.52	154,978		14,522	4,939,069

ECONOMIC INDICATORS

			2011	2010		2009
Population (Million person)			87.84	86.93		86.02
Gross Domestic Products (USD billion)			119	102.2		91
GDP Growth (%)			5.89	6.78		5.32
GDP Per Capita (USD/person/year)			1,300	1,160		1,080
Inflation (% Change in Composite CPI)			18.58	11.75		6.88
State Budget Deficit compared with GDP (%)			4.9	5.8		6.9

SERVICE TRADE PERFORMANCE

Billion USD			2011	2010		2009
Exports			96.3	72.2		57.1
Imports			105.8	84.8		69.9
Trade Balance			-9.5	-12.6		-12.8

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.28
UK Pound	1	Rs.81.38
Euro	1	Rs.67.01

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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