MIRA INFORM REPORT

Report Date :

16.04.2012

IDENTIFICATION DETAILS

Name :	ANNONG COMPANY LIMITED
Registered Office :	Lot B06-1 Duc Hoa I - Hanh Phuc Industrial Zone, Hamlet 5, Duc Hoa District, Long An Province
Country :	Vietnam
Financials (as on) :	31.12.2010
Year of Establishment :	1996
Com. Reg. No.:	1100665779
Legal Form :	Limited Liability Company
Line of Business :	The subject registered in some fields but focuses on processing, packing and trading fertilizer, pesticide and crop protection chemicals.
No. of Employees :	300

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 :	Slow but Correct
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)
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
Current legal status
English Name	ANNONG COMPANY LIMITED
Vietnamese Name	CONG TY TNHH AN NONG
Short name	CONG TY AN NONG
Type of Business	Limited liability company
Year Established	1996
Business Registration No.	1100665779
Date of Registration	08 Dec 2009
Place of Registration	Planning and Investment Department of Long An Province
Current registered capital	VND 10,000,000,000
Status	Unlisted
Tax code	1100665779
Total Employees	300
Size	Medium

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 5002000517 (issued on February 25^th 2005) Changed to: 1100665779	08 Dec 2009
2	Subject has got former Address: Head office at No. 216B, Binh Thang Hamlet, Binh An Village, Di An Dist., Binh Duong Province Changed to: Lot B06-1 Duc Hoa I-Hanh Phuc Industrial Zone, Duc Hoa District, Long An Province, Vietnam	2005

ADDRESSES
Head Office
Address	Lot B06-1 Duc Hoa I - Hanh Phuc Industrial Zone, Hamlet 5, Duc Hoa District, Long An Province, Vietnam
Telephone	(84-72) 3779 900
Fax	(84-72) 3779 901
Email	annongpte@hcm.vnn.vn
Website	http://www.annong.com.vn/
Representative office in Ho Chi Minh
Address	No. 6-8, Road 30, Binh Tri Dong B Ward, Binh Tan District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 62600029
Fax	(84-8) 62600197
Branch in Kien Giang
Address	Highway 80, Hoa Phu Hamlet, Chau Thanh District, Kien Giang Province, Vietnam
Manager	Mr. NGUYEN HUU HUNG
Branch in An Giang
Address	Highway 91, Phu Hoa Hamlet, Binh Hoa Commune, Chau Thanh District, An Giang Province, Vietnam
Manager	Mr. NGUYEN HUYNH KY

DIRECTORS
1. NAME	Mr. HOANG HAI
Position	Chairman
Date of Birth	28 Mar 1967
ID Number/Passport	023004423
ID Issue Date	31 Jan 2007
ID Issue Place	Long An Department of Planning and Investment
Resident	No. 34, Dong Da Str, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam
Tel/Mobil phone	+84903820766
2. NAME	Ms. TRUONG THI THUY TRUONG
Position	Director
Date of Birth	18 May 1966
ID Number/Passport	021624104
ID Issue Date	04 Mar 2004
ID Issue Place	Police Station of Hochiminh City
Resident	No.132/248/9A, To Hien Thanh Street, Ward 15, District 10, Ho Chi Minh City, Vietnam
Tel/Mobil phone	++84 903908508
Email	annongvn@gmail.com
3. NAME	Mr. TRAN MINH PHUONG
Position	Vice Director
Date of Birth	29 Dec 1949
Resident	No. 130/18, Ho Ba Kieng Str., Ward 15, District 10, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Tel/Mobil phone	++84 903815774
4. NAME	Ms. LE THI NGA
Position	Chief Accountant
Resident	Long An Province, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject registered in some fields but focuses on processing, packing and trading fertilizer, pesticide and crop protection chemicals.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Fertilizer, plants protection medicines, pesticide
· Market	China, India, Indonesia, Malaysia, Singapore
· Mode of payment	DA, DP
EXPORT:
· Types of products	Fertilizer, plants protection medicines, pesticide
· Market	Cambodia

BANKERS
1. DONG A COMMERCIAL JOINT STOCK BANK THUAN AN BRANCH
Address	No.24A Nguyen Van Tiet Street, Lai Thieu Town, Thuan An Town, Binh Duong Province, Vietnam
Telephone	(84-650) 3717 575
Fax	(84-650) 3717 574
VND Account	042000276510015
2. DONG A COMMERCIAL JOINT STOCK BANK DAI LOC BINH DUONG BRANCH
Address	No. 257, Binh Duong Boulevard, Phu Loi Ward, Thu Dau Mot City, Binh Duong Province, Vietnam
Telephone	(84-650) 3813 461
Fax	(84-650) 3813 460
Foreign Currency Account	000276510005
VND Account	000276510004
3. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK- LONG AN BRANCH
Address	Binh Tien 1 Hamlet, Duc Hoa Ha Commune, Duc Hoa District, Long An Province, Vietnam
Telephone	(84-72) 3763 976
Fax	(84-72) 3763 978
VND Account	214301000258

SHAREHOLDERS
1. NAME	Ms. TRUONG THI THUY TRUONG
Position	Director
Date of Birth	18 May 1966
ID Number/Passport	021624104
Issued on	04 Mar 2004
Issued Place	Police Station of Hochiminh City
Resident	No. 132/248/9A, To Hien Thanh Street, Ward 15, District 10, Ho Chi Minh City, Vietnam
Email	annongvn@gmail.com
Mobile phone	++84 903908508
Value of shares	VND 6,000,000,000
Percentage	60%
2. NAME	Mr. HOANG HAI
Position	Chairman
Date of Birth	28 Mar 1967
ID Number/Passport	023004423
Issued on	31 Jan 2007
Issued Place	Long An Department of Planning and Investment
Resident	No. 34, Dong Da Str., Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam
Mobile phone	+84 903820766
Value of shares	VND 4,000,000,000
Percentage	40%

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	276,099,213,918	237,025,318,841	218,927,830,682
I. Cash and cash equivalents	2,649,275,171	1,864,217,785	12,492,571,613
1. Cash	2,649,275,171	293,456,524	396,745,484
2. Cash equivalents	0	1,570,761,261	12,095,826,129
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	78,775,322,055	61,376,035,290	41,343,006,603
1. Receivable from customers	76,775,322,055	58,805,834,826	31,612,584,030
2. Prepayments to suppliers	0	0	0
3. Inter-company receivable	0	0	6,730,422,573
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	2,000,000,000	2,570,200,464	3,000,000,000
6. Provisions for bad debts	0	0	0
IV. Inventories	191,014,213,087	164,399,141,288	158,623,607,370
1. Inventories	191,014,213,087	164,399,141,288	158,623,607,370
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	3,660,403,605	9,385,924,478	6,468,645,096
1. Short-term prepaid expenses	0	0	0
2. VAT to be deducted	3,660,403,605	0	0
3. Taxes and other accounts receivable from the State	0	0	6,468,645,096
4. Other current assets	0	9,385,924,478	0
B. LONG-TERM ASSETS	26,659,994,357	14,698,133,529	14,682,086,830
I. Long term accounts 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	15,172,040,294	14,698,133,529	14,682,086,830
1. Tangible assets	15,172,040,294	14,335,077,302	14,682,086,830
- Historical costs	23,555,851,340	20,400,364,389	18,617,759,880
- Accumulated depreciation	-8,383,811,046	-6,065,287,087	-3,935,673,050
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	363,056,227	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	11,487,954,063	0	0
1. Long-term prepaid expenses	0	0	0
2. Deferred income tax assets	0	0	0
3. Other long-term assets	11,487,954,063	0	0
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	302,759,208,275	251,723,452,370	233,609,917,512
LIABILITIES
A- LIABILITIES	293,770,972,766	41,865,447,335	14,070,890,351
I. Current liabilities	293,701,375,336	41,865,447,335	14,070,890,351
1. Short-term debts and loans	241,500,000,000	2,012,000,000	2,900,000,000
2. Payable to suppliers	51,927,468,176	39,360,282,742	10,724,929,905
3. Advances from customers	0	0	0
4. Taxes and other obligations to the State Budget	63,723,361	29,847,345	21,406,827
5. Payable to employees	207,112,989	467,953,354	390,032,254
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	3,070,810	-4,636,106	34,521,365
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	69,597,430	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	69,597,430	0	0
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	8,988,235,509	209,858,005,035	219,539,027,161
I. OWNER’S EQUITY	8,988,235,509	209,792,129,596	219,539,027,161
1. Capital	10,969,231,975	211,000,000,000	217,000,000,000
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	354,813,758	354,813,758
8. Financial reserved fund	0	354,813,758	354,813,758
9. Other funds	926,229,846	43,922,791	170,310,838
10. Retained earnings	-2,907,226,312	-1,961,420,711	1,659,088,807
11. Construction investment fund	0	0	0
II. Other sources and funds	0	65,875,439	0
1. Bonus and welfare funds	0	65,875,439	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	302,759,208,275	251,723,452,370	233,609,917,512

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009	FY2008
1. Total Sales	224,552,501,286	209,988,262,007	174,147,344,156
2. Deduction item	0	0	0
3. Net revenue	224,552,501,286	209,988,262,007	174,147,344,156
4. Costs of goods sold	198,297,839,501	192,181,383,811	154,849,256,252
5. Gross profit	26,254,661,785	17,806,878,196	19,298,087,904
6. Financial income	849,760,935	1,192,126,615	1,221,838,791
7. Financial expenses	11,885,125	172,998,000	840,573,032
- In which: Loan interest expenses	0	0	0
8. Selling expenses	0	12,070,061,819	10,134,546,743
9. Administrative overheads	26,705,596,561	10,376,454,510	10,064,642,169
10. Net operating profit	386,941,034	-3,620,509,518	-519,835,249
11. Other income	30,316,376	0	0
12. Other expenses	0	0	0
13. Other profit /(loss)	30,316,376	0	0
14. Total accounting profit before tax	417,257,410	-3,620,509,518	-519,835,249
15. Current corporate income tax	0	0	0
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	417,257,410	-3,620,509,518	-519,835,249

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	0.94	5.66	15.56	1.42
Quick liquidity ratio	0.29	1.73	4.29	0.78
Inventory circle	1.04	1.17	0.98	5.13
Average receive period	128.05	106.68	86.65	72.48
Utilizing asset performance	0.74	0.83	0.75	1.61
Liability by total assets	97.03	16.63	6.02	65.76
Liability by owner's equity	3,268.39	19.95	6.41	269.57
Ebit / Total assets (ROA)	0.14	-1.44	-0.22	11.97
Ebit / Owner's equity (ROE)	4.64	-1.73	-0.24	36.02
Ebit / Total revenue (NPM)	0.19	-1.72	-0.30	7.56
Gross profit / Total revenue (GPM)	11.69	8.48	11.08	14.67
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Fair
Liquidity	Medium
Payment status	Average
Financial Situation	Average
Development trend	Downtrend
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	DA, DP
Sale Methods	Retailer and Wholesaler
Public opinion	Average

CREDIT INQUIRY: USD 125,000 Against DA in terms

A little caution is needed!

INTERPRETATION ON THE SCORES

Founded in 1996 as a private enterprise in Binh Duong province. From 1996 to 2000, the subject operated as an agency, distributor of some companies in Vietnam and foreign country with about 10 employees. The subject has developed steadily and speedily for nearly 10 years. In 2005, the subject removed from Binh Duong to Long An Province and ANNONG COMPANY LIMITED was official established. Currently, the subject operates under the business registration number 1100665779 with registered capital of VND 10 billion and labor force are about 300 people.

Head office and factory are located at Lot B06-1, Duc Hoa I - Hanh Phuc Industrial Zone, Hamlet 5, Duc Hoa District, Long An Province. Up to now, the subject has opened two extra branches in Kien Giang and An Giang Province. Besides, it also has a representative office in Ho Chi Minh City.

The subject registered in some fields but focuses on processing, packing and trading fertilizer, pesticide, herbicide, crop protection chemicals. At the present, the subject has about 100 trade names in the field of pesticide, 40 ones in the field of fertilizer and 10 ones in the field of public health and household chemicals. Its main import markets are China, India. Its products are supplied for domestic market and a part is exported to Cambodia.

According to the financial statement of the subject, the total assets in 2010 increased 20.27% over last year. But the increase was not significant compared with the increase in liabilities. In 2010, liabilities were VND 293,770,972,766, which increased 601.7% over the previous year. Hence, current liquidity ratio was decrease from 5.66 in 2009 by 0.94 in 2010. Notably, the owner’s equity was strongly down from VND 209,858,005,035 down VND 8,988,235,509, indicating that business operations in 2010 rely on borrowings from outsiders.

In 2010, net revenue up to VND 224,552,501,286, while two previous years the subject was lost. Total profit after tax reached of VND 417,257,410. This business result showed that in 2010, business operations and managements of expenses are fairly good.

Generally, the subject is on the way of development and is expanding scale. Its business activities can be better in the future. Now, the subject has enough ability to take all small 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.51.42
UK Pound	1	Rs.81.93
Euro	1	Rs.67.67

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.