MIRA INFORM REPORT

Report Date :

31.12.2012

IDENTIFICATION DETAILS

Name :	BACONCO CO., LTD
Registered Office :	Phu My I Industrial Zone, Tan Thanh District, Ba Ria-Vung Tau Province
Country :	Vietnam
Financials (as on) :	31.03.2011
Year of Establishment :	1996
Legal Form :	Limited Liability Company (Foreign Invested Company)
Line of Business :	The subject is focusing on manufacturing and trading NPK fertilizer and plant protection drugs.
No. of Employees :	420

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 :	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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Vietnam	B1	B1

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

VIETNAM - ECONOMIC OVERVIEW

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM
Current legal status
English Name	BACONCO CO., LTD
Vietnamese Name	CONG TY TNHH BACONCO
Short name	BACONCO
Type of Business	Limited Liability Company (Foreign Invested Company)
Year Established	1996
Investment Certificate No	492043000013
Date Of Issuance	28 Dec 2006
Place of Issuance	Ba Ria-Vung Tau Industrial Zones Authority
Registered Investment Capital	USD 30,885,128
Chartered capital	USD 25,833,128
Investment Duration	50 years
Tax code	3500101065
Total Employees	420

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Shareholders: EMC GESTION Changed to: SOLEADO HOLDINGS PTE LTD.	12 Jul 2009
2	Subject has got former Shareholders: SCPA (La Société Commerciale des Potasses et de l'Azote) SIVEX INTERNATIONAL Changed to: EMC GESTION	02 Apr 2009
3	Subject has got former Registered English Name: BACONCO JOINT VENTURE COMPANY Changed to: BACONCO CO., LTD	28 Dec 2006
4	Subject has got former Registered Vietnamese Name: CONG TY LIEN DOANH BACONCO Changed to: CONG TY TNHH BACONCO	28 Dec 2006
5	Subject has got former Type of Business: Joint Venture Company Changed to: Liability Limited Company	28 Dec 2006
6	Subject has got former Investment Certificate No: 1217/GP, issuance on April 27th 1995 by Ministry of Planning and Investment Department Changed to: 492043000013 by Management Board of Industrial Zones of Ba Ria – Vung Tau Province	28 Dec 2006
7	Subject has got former Registered Investment Capital: USD 10,500,000 Changed to: USD 30,885,128	-

ADDRESSES
Head Office
Address	Phu My I Industrial Zone, Tan Thanh District, Ba Ria-Vung Tau Province, Vietnam
Telephone	(84-64) 3893 400 - 3893 459 - 3893 458 - 3893 460
Fax	(84-64) 3873 030 - 3893 398 - 3876 030
Email	contact@baconco.com.vn
Website	www.baconco.com.vn/
Transaction office in Ho Chi Minh
Address	Petroland Tower - No. 12 Tan Trao Street Tan Phu Ward, District 7, Ho Chi Minh City, Vietnam
Telephone	(84-8) 5416 0662
Fax	(84-8) 5416 0661
Email	bcchcm@fmail.vnn.vn
Branch in Hai Phong
Address	4th Floor, Thanh Dat Building, No. 3, Le Thanh Tong street Ngo Quyen Street, Ngo Quyen District, Hai Phong City, Vietnam
Telephone	(84-31) 3765 724
Fax	(84-31) 3765 296

DIRECTORS
1. NAME	Mr. SIGMUND STROMME
Position	Chairman
Nationality	Norwegian
2. NAME	Mr. SIQUET, PIERRE LOUIS BERNARD
Position	General Director
ID Number/Passport	EI371509
Current resident	697H, An Dien-An Phu Str, District 2, Ho Chi Minh City, Vietnam
Nationality	Belgian
Qualification	Management
3. NAME	Mr. DIDIER PINGUET
Position	Deputy General Director
Resident	France
Nationality	French
4. NAME	Mr. HO NGOC CHAU
Position	Finance Director
Nationality	Vietnamese
Tel/Mobile phone	(84-64) 3893 400 +84 908 250 993
6. NAME	Mr. NGUYEN DINH TOAN
Position	Chief Accountant
Current resident	471B No Trang Long Str, Ward 13, Binh Thanh Distr, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	(84-64) 3893 460
Email	n.d.toan@baconco.com.vn

BUSINESS NATURE AND ACTIVITIES

The subject is focusing on manufacturing and trading NPK fertilizer and plant protection drugs.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Materials
· Market	China, Japan (Misubishi)
· Mode of payment	L/C, T/T
EXPORT:
· Market	Africa, Thailand, Korea
· Mode of payment	L/C, T/T

BANKERS
1. HSBC VIETNAM LTD
Address	6 Floor, No. 235 Dong Khoi Str., Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3829 2288
2. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK
Address	No. 266-268 Nam Ky Khoi Nghia Street, Ward 8, District 3, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3932 0420
Fax	(84-8) 3932 2488
3. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT TAN THANH INDUSTRIAL PARK
Address	Phu My 1 Industrial park , Tan Thanh District, Ba Ria-Vung Tau Province, Vietnam

SHAREHOLDERS
NAME	SOLEADO HOLDINGS PTE LTD.
Address	Singapore
Percentage	100%
Note: Soleado Holdings Pte Ltd. operates as a subsidiary of Thoresen Thai Agencies Public Co. Ltd.(www.thoresen.com)

FINANCIAL DATA
The latest financial data of subject is not available although we tried to collect.
BALANCE SHEET
Unit: One VND
Balance sheet date	31/03/2010	31/12/2009	31/12/2008
Number of weeks	13	52	52
ASSETS
A – CURRENT ASSETS	325,296,844,770	265,867,956,353	744,903,876,413
I. Cash and cash equivalents	165,104,597,801	88,000,297,131	39,946,628,568
1. Cash	165,104,597,801	88,000,297,131	39,946,628,568
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	22,378,560,914	12,828,987,208	76,770,084,368
1. Receivable from customers	13,899,156,117	14,616,995,793	75,306,279,838
2. Prepayments to suppliers	11,091,842,968	736,576,848	3,589,810,439
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0		0
5. Other receivable	0	87,852,738	145,902,534
6. Provisions for bad debts	-2,612,438,171	-2,612,438,171	-2,271,908,443
IV. Inventories	136,674,664,793	125,052,322,261	616,250,754,832
1. Inventories	137,460,705,599	127,246,037,515	730,197,268,173
2. Provisions for devaluation of inventories	-786,040,806	-2,193,715,254	-113,946,513,341
V. Other Current Assets	1,139,021,262	39,986,349,753	11,936,408,645
1. Short-term prepaid expenses	439,261,184	873,882,584	1,034,100,324
2. VAT to be deducted	0	0	2,310,310,996
3. Taxes and other accounts receivable from the State	20,229,184	14,880,000	7,277,917,743
4. Other current assets	679,530,894	39,097,587,169	1,314,079,582
B. LONG-TERM ASSETS	116,095,626,736	119,069,267,062	119,065,276,324
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	113,473,404,666	116,120,488,119	119,065,276,324
1. Tangible assets	108,037,629,165	110,436,580,002	112,420,618,074
- Historical costs	292,881,965,436	290,680,020,182	275,321,633,453
- Accumulated depreciation	-184,844,336,271	-180,243,440,180	-162,901,015,379
2. Financial leasehold assets	0	5,683,908,117	0
- Historical costs	0	14,635,721,002	0
- Accumulated depreciation	0	-8,951,812,885	0
3. Intangible assets	5,435,775,501	0	6,644,658,250
- Initial costs	14,635,721,002	0	14,607,261,002
- Accumulated amortization	-9,199,945,501	0	-7,962,602,752
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	2,622,222,070	2,948,778,943	0
1. Long-term prepaid expenses	2,622,222,070	2,948,778,943	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	441,392,471,506	384,937,223,415	863,969,152,737
LIABILITIES
A- LIABILITIES	108,233,191,463	84,549,018,270	593,841,452,729
I. Current liabilities	106,915,955,068	83,303,454,625	592,528,491,826
1. Short-term debts and loans	0	0	221,795,148,894
2. Payable to suppliers	13,372,565,034	36,620,707,463	346,690,224,522
3. Advances from customers	79,395,768,964	14,560,421,252	770,650,593
4. Taxes and other obligations to the State Budget	3,684,012,458	4,278,643,726	111,931,401
5. Payable to employees	480,000,000	3,845,389,000	179,171,000
6. Accrued expenses	992,160,443	415,459,994	1,801,668,760
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	8,991,448,169	23,582,833,190	21,179,696,656
10. Provisions for short-term accounts payable	0	0	0
11. Bonus and welfare funds
II. Long-Term Liabilities	1,317,236,395	1,245,563,645	1,312,960,903
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	1,317,236,395	1,245,563,645	1,312,960,903
7. Provisions for long-term accounts payable	0	0	0
8. Unearned Revenue	0	0	0
9. Science and technology development fund	0	0	0
B- OWNER’S EQUITY	333,159,280,043	300,388,205,145	270,127,700,008
I. OWNER’S EQUITY	333,159,280,043	300,388,205,145	270,127,700,008
1. Capital	377,072,638,790	377,072,638,790	377,072,638,790
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	-43,913,358,747	-76,684,433,645	-106,944,938,782
11. Construction investment fund	0	0
12. Business arrangement supporting fund
II. Other sources and funds	0	0	0
1. Bonus and welfare funds (Elder form)	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	441,392,471,506	384,937,223,415	863,969,152,737

PROFIT & LOSS STATEMENT
Description	The first 3 months of FY2010	FY2009	FY2008
1. Total Sales	425,789,982,306	1,310,260,810,604	1,202,648,859,067
2. Deduction item	10,419,225,692	31,053,074,830	44,218,461,362
3. Net revenue	415,370,756,614	1,279,207,735,774	1,158,430,397,705
4. Costs of goods sold	409,147,432,934	1,158,782,888,242	1,058,319,099,676
5. Gross profit	6,223,323,680	120,424,847,532	100,111,298,029
6. Financial income	1,471,567,589	4,944,702,018	9,173,971,503
7. Financial expenses	19,295,425,275	37,689,741,649	63,454,362,025
- In which: Loan interest expenses	5,863,661,075	13,444,075,242	27,206,463,884
8. Selling expenses	8,661,212,152	32,067,897,885	38,985,396,313
9. Administrative overheads	3,090,720,780	14,844,845,619	13,161,524,313
10. Net operating profit	-23,352,466,938	40,767,064,397	-6,316,013,119
11. Other income	0	277,786,196	11,641,222,316
12. Other expenses	88,213,779	457,148,795	1,896,605,547
13. Other profit /(loss)	-88,213,779	-179,362,599	9,744,616,769
14. Total accounting profit before tax	-23,440,680,717	40,587,701,798	3,428,603,650
15. Current corporate income tax	0	10,327,196,661	0
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	-23,440,680,717	30,260,505,137	3,428,603,650

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2009	FY2008	Average Industry
Current liquidity ratio	3.19	1.26	1.72
Quick liquidity ratio	1.69	0.22	1.01
Inventory circle	3.13	2.53	6.75
Average receive period	3.66	24.19	67.18
Utilizing asset performance	3.32	1.34	1.75
Liability by total assets	21.96	68.73	56.43
Liability by owner's equity	28.15	219.84	231.20
Ebit / Total assets (ROA)	14.04	3.55	9.35
Ebit / Owner's equity (ROE)	17.99	11.34	20.56
Ebit / Total revenue (NPM)	4.12	2.55	3.99
Gross profit / Total revenue (GPM)	9.19	8.32	15.29
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Good
Liquidity	N/A
Payment status	N/A
Financial Situation	Above Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C, T/T
Sale Methods	Wholesaler
Public opinion	Good

INTERPRETATION ON THE SCORES

BACONCO CO., LTD is a limited liability company (foreign invested company) now. Formerly, it was a joint venture between Agricultural Materials Dong Nai Joint Stock (code tax: 3600333736) (Viet Nam) and La Société Commerciale des Potasses et de l'Azote (French).

It specializes in manufacturing and trading NPK fertilizer and plant protection drugs. Specially, ConCo fertilizer brand has been widely known to farmers.

It is located at Phu My I Industrial Zone, Tan Thanh District, Ba Ria – Vung Tau Province, Vietnam. It is near Phu My Port, advantage for business activities of the subject. Besides, the subject has a strong network of more than 300 wholesalers distributes BACONCO’s products to more than 5,000 nationwide retailers, serving several million Vietnamese farmers. It also imports materials from China and Japan markets and exports products to Africa, Korea, Thailand.

BACONCO CO., LTD has applied new technology in its producing operation. It has given “AVS” technology on fertilizer production. “AVS” fertilizes make to increase quality of land and help farmers to produce effectively.

An interview was conducted with Mr. Ho Ngoc Chau - Finance Director. He shared that the subject achieved revenue of about VND 2,000 billion in 2011. However, in 2012, its financial situation was not as good as that in previous year.

In general, the subject is a large company whose position is remarkable in the business field. Premises and facilities of the company are standard. The subject has ability to meet all the normal transactions.

------------ APPENDIX ----------

INDUSTRY DATA
Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2010		Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,887		24,362.9	95,227
Industry and Construction	5.53	7.70	95,217		10,718.9	3,641,376
Trade and Services	6.69	7.52	187,195		15,270.2	6,957,082
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.54.85
UK Pound	1	Rs.88.39
Euro	1	Rs.72.63

INFORMATION DETAILS

Report Prepared by :

PRL

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%)

MIRA INFORM REPORT

Report Date :

31.12.2012

Tel. No.:	+84 64 3893401
Fax No.:	84 64 3876030

IDENTIFICATION DETAILS

Name :	BACONCO CO., LTD
Registered Office :	Phu My I Industrial Zone, Tan Thanh District, Ba Ria-Vung Tau Province
Country :	Vietnam
Financials (as on) :	31.03.2011
Year of Establishment :	1996
Legal Form :	Limited Liability Company (Foreign Invested Company)
Line of Business :	The subject is focusing on manufacturing and trading NPK fertilizer and plant protection drugs.
No. of Employees :	420

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 :	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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Vietnam	B1	B1

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

VIETNAM - ECONOMIC OVERVIEW

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM
Current legal status
English Name	BACONCO CO., LTD
Vietnamese Name	CONG TY TNHH BACONCO
Short name	BACONCO
Type of Business	Limited Liability Company (Foreign Invested Company)
Year Established	1996
Investment Certificate No	492043000013
Date Of Issuance	28 Dec 2006
Place of Issuance	Ba Ria-Vung Tau Industrial Zones Authority
Registered Investment Capital	USD 30,885,128
Chartered capital	USD 25,833,128
Investment Duration	50 years
Tax code	3500101065
Total Employees	420

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Shareholders: EMC GESTION Changed to: SOLEADO HOLDINGS PTE LTD.	12 Jul 2009
2	Subject has got former Shareholders: SCPA (La Société Commerciale des Potasses et de l'Azote) SIVEX INTERNATIONAL Changed to: EMC GESTION	02 Apr 2009
3	Subject has got former Registered English Name: BACONCO JOINT VENTURE COMPANY Changed to: BACONCO CO., LTD	28 Dec 2006
4	Subject has got former Registered Vietnamese Name: CONG TY LIEN DOANH BACONCO Changed to: CONG TY TNHH BACONCO	28 Dec 2006
5	Subject has got former Type of Business: Joint Venture Company Changed to: Liability Limited Company	28 Dec 2006
6	Subject has got former Investment Certificate No: 1217/GP, issuance on April 27th 1995 by Ministry of Planning and Investment Department Changed to: 492043000013 by Management Board of Industrial Zones of Ba Ria – Vung Tau Province	28 Dec 2006
7	Subject has got former Registered Investment Capital: USD 10,500,000 Changed to: USD 30,885,128	-

ADDRESSES
Head Office
Address	Phu My I Industrial Zone, Tan Thanh District, Ba Ria-Vung Tau Province, Vietnam
Telephone	(84-64) 3893 400 - 3893 459 - 3893 458 - 3893 460
Fax	(84-64) 3873 030 - 3893 398 - 3876 030
Email	contact@baconco.com.vn
Website	www.baconco.com.vn/
Transaction office in Ho Chi Minh
Address	Petroland Tower - No. 12 Tan Trao Street Tan Phu Ward, District 7, Ho Chi Minh City, Vietnam
Telephone	(84-8) 5416 0662
Fax	(84-8) 5416 0661
Email	bcchcm@fmail.vnn.vn
Branch in Hai Phong
Address	4th Floor, Thanh Dat Building, No. 3, Le Thanh Tong street Ngo Quyen Street, Ngo Quyen District, Hai Phong City, Vietnam
Telephone	(84-31) 3765 724
Fax	(84-31) 3765 296

DIRECTORS
1. NAME	Mr. SIGMUND STROMME
Position	Chairman
Nationality	Norwegian
2. NAME	Mr. SIQUET, PIERRE LOUIS BERNARD
Position	General Director
ID Number/Passport	EI371509
Current resident	697H, An Dien-An Phu Str, District 2, Ho Chi Minh City, Vietnam
Nationality	Belgian
Qualification	Management
3. NAME	Mr. DIDIER PINGUET
Position	Deputy General Director
Resident	France
Nationality	French
4. NAME	Mr. HO NGOC CHAU
Position	Finance Director
Nationality	Vietnamese
Tel/Mobile phone	(84-64) 3893 400 +84 908 250 993
6. NAME	Mr. NGUYEN DINH TOAN
Position	Chief Accountant
Current resident	471B No Trang Long Str, Ward 13, Binh Thanh Distr, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	(84-64) 3893 460
Email	n.d.toan@baconco.com.vn

BUSINESS NATURE AND ACTIVITIES

The subject is focusing on manufacturing and trading NPK fertilizer and plant protection drugs.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Materials
· Market	China, Japan (Misubishi)
· Mode of payment	L/C, T/T
EXPORT:
· Market	Africa, Thailand, Korea
· Mode of payment	L/C, T/T

BANKERS
1. HSBC VIETNAM LTD
Address	6 Floor, No. 235 Dong Khoi Str., Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3829 2288
2. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK
Address	No. 266-268 Nam Ky Khoi Nghia Street, Ward 8, District 3, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3932 0420
Fax	(84-8) 3932 2488
3. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT TAN THANH INDUSTRIAL PARK
Address	Phu My 1 Industrial park , Tan Thanh District, Ba Ria-Vung Tau Province, Vietnam

SHAREHOLDERS
NAME	SOLEADO HOLDINGS PTE LTD.
Address	Singapore
Percentage	100%
Note: Soleado Holdings Pte Ltd. operates as a subsidiary of Thoresen Thai Agencies Public Co. Ltd.(www.thoresen.com)

FINANCIAL DATA
The latest financial data of subject is not available although we tried to collect.
BALANCE SHEET
Unit: One VND
Balance sheet date	31/03/2010	31/12/2009	31/12/2008
Number of weeks	13	52	52
ASSETS
A – CURRENT ASSETS	325,296,844,770	265,867,956,353	744,903,876,413
I. Cash and cash equivalents	165,104,597,801	88,000,297,131	39,946,628,568
1. Cash	165,104,597,801	88,000,297,131	39,946,628,568
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	22,378,560,914	12,828,987,208	76,770,084,368
1. Receivable from customers	13,899,156,117	14,616,995,793	75,306,279,838
2. Prepayments to suppliers	11,091,842,968	736,576,848	3,589,810,439
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0		0
5. Other receivable	0	87,852,738	145,902,534
6. Provisions for bad debts	-2,612,438,171	-2,612,438,171	-2,271,908,443
IV. Inventories	136,674,664,793	125,052,322,261	616,250,754,832
1. Inventories	137,460,705,599	127,246,037,515	730,197,268,173
2. Provisions for devaluation of inventories	-786,040,806	-2,193,715,254	-113,946,513,341
V. Other Current Assets	1,139,021,262	39,986,349,753	11,936,408,645
1. Short-term prepaid expenses	439,261,184	873,882,584	1,034,100,324
2. VAT to be deducted	0	0	2,310,310,996
3. Taxes and other accounts receivable from the State	20,229,184	14,880,000	7,277,917,743
4. Other current assets	679,530,894	39,097,587,169	1,314,079,582
B. LONG-TERM ASSETS	116,095,626,736	119,069,267,062	119,065,276,324
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	113,473,404,666	116,120,488,119	119,065,276,324
1. Tangible assets	108,037,629,165	110,436,580,002	112,420,618,074
- Historical costs	292,881,965,436	290,680,020,182	275,321,633,453
- Accumulated depreciation	-184,844,336,271	-180,243,440,180	-162,901,015,379
2. Financial leasehold assets	0	5,683,908,117	0
- Historical costs	0	14,635,721,002	0
- Accumulated depreciation	0	-8,951,812,885	0
3. Intangible assets	5,435,775,501	0	6,644,658,250
- Initial costs	14,635,721,002	0	14,607,261,002
- Accumulated amortization	-9,199,945,501	0	-7,962,602,752
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	2,622,222,070	2,948,778,943	0
1. Long-term prepaid expenses	2,622,222,070	2,948,778,943	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	441,392,471,506	384,937,223,415	863,969,152,737
LIABILITIES
A- LIABILITIES	108,233,191,463	84,549,018,270	593,841,452,729
I. Current liabilities	106,915,955,068	83,303,454,625	592,528,491,826
1. Short-term debts and loans	0	0	221,795,148,894
2. Payable to suppliers	13,372,565,034	36,620,707,463	346,690,224,522
3. Advances from customers	79,395,768,964	14,560,421,252	770,650,593
4. Taxes and other obligations to the State Budget	3,684,012,458	4,278,643,726	111,931,401
5. Payable to employees	480,000,000	3,845,389,000	179,171,000
6. Accrued expenses	992,160,443	415,459,994	1,801,668,760
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	8,991,448,169	23,582,833,190	21,179,696,656
10. Provisions for short-term accounts payable	0	0	0
11. Bonus and welfare funds
II. Long-Term Liabilities	1,317,236,395	1,245,563,645	1,312,960,903
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	1,317,236,395	1,245,563,645	1,312,960,903
7. Provisions for long-term accounts payable	0	0	0
8. Unearned Revenue	0	0	0
9. Science and technology development fund	0	0	0
B- OWNER’S EQUITY	333,159,280,043	300,388,205,145	270,127,700,008
I. OWNER’S EQUITY	333,159,280,043	300,388,205,145	270,127,700,008
1. Capital	377,072,638,790	377,072,638,790	377,072,638,790
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	-43,913,358,747	-76,684,433,645	-106,944,938,782
11. Construction investment fund	0	0
12. Business arrangement supporting fund
II. Other sources and funds	0	0	0
1. Bonus and welfare funds (Elder form)	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	441,392,471,506	384,937,223,415	863,969,152,737

PROFIT & LOSS STATEMENT
Description	The first 3 months of FY2010	FY2009	FY2008
1. Total Sales	425,789,982,306	1,310,260,810,604	1,202,648,859,067
2. Deduction item	10,419,225,692	31,053,074,830	44,218,461,362
3. Net revenue	415,370,756,614	1,279,207,735,774	1,158,430,397,705
4. Costs of goods sold	409,147,432,934	1,158,782,888,242	1,058,319,099,676
5. Gross profit	6,223,323,680	120,424,847,532	100,111,298,029
6. Financial income	1,471,567,589	4,944,702,018	9,173,971,503
7. Financial expenses	19,295,425,275	37,689,741,649	63,454,362,025
- In which: Loan interest expenses	5,863,661,075	13,444,075,242	27,206,463,884
8. Selling expenses	8,661,212,152	32,067,897,885	38,985,396,313
9. Administrative overheads	3,090,720,780	14,844,845,619	13,161,524,313
10. Net operating profit	-23,352,466,938	40,767,064,397	-6,316,013,119
11. Other income	0	277,786,196	11,641,222,316
12. Other expenses	88,213,779	457,148,795	1,896,605,547
13. Other profit /(loss)	-88,213,779	-179,362,599	9,744,616,769
14. Total accounting profit before tax	-23,440,680,717	40,587,701,798	3,428,603,650
15. Current corporate income tax	0	10,327,196,661	0
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	-23,440,680,717	30,260,505,137	3,428,603,650

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2009	FY2008	Average Industry
Current liquidity ratio	3.19	1.26	1.72
Quick liquidity ratio	1.69	0.22	1.01
Inventory circle	3.13	2.53	6.75
Average receive period	3.66	24.19	67.18
Utilizing asset performance	3.32	1.34	1.75
Liability by total assets	21.96	68.73	56.43
Liability by owner's equity	28.15	219.84	231.20
Ebit / Total assets (ROA)	14.04	3.55	9.35
Ebit / Owner's equity (ROE)	17.99	11.34	20.56
Ebit / Total revenue (NPM)	4.12	2.55	3.99
Gross profit / Total revenue (GPM)	9.19	8.32	15.29
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Good
Liquidity	N/A
Payment status	N/A
Financial Situation	Above Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C, T/T
Sale Methods	Wholesaler
Public opinion	Good

INTERPRETATION ON THE SCORES

BACONCO CO., LTD is a limited liability company (foreign invested company) now. Formerly, it was a joint venture between Agricultural Materials Dong Nai Joint Stock (code tax: 3600333736) (Viet Nam) and La Société Commerciale des Potasses et de l'Azote (French).

It specializes in manufacturing and trading NPK fertilizer and plant protection drugs. Specially, ConCo fertilizer brand has been widely known to farmers.

It is located at Phu My I Industrial Zone, Tan Thanh District, Ba Ria – Vung Tau Province, Vietnam. It is near Phu My Port, advantage for business activities of the subject. Besides, the subject has a strong network of more than 300 wholesalers distributes BACONCO’s products to more than 5,000 nationwide retailers, serving several million Vietnamese farmers. It also imports materials from China and Japan markets and exports products to Africa, Korea, Thailand.

BACONCO CO., LTD has applied new technology in its producing operation. It has given “AVS” technology on fertilizer production. “AVS” fertilizes make to increase quality of land and help farmers to produce effectively.

An interview was conducted with Mr. Ho Ngoc Chau - Finance Director. He shared that the subject achieved revenue of about VND 2,000 billion in 2011. However, in 2012, its financial situation was not as good as that in previous year.

In general, the subject is a large company whose position is remarkable in the business field. Premises and facilities of the company are standard. The subject has ability to meet all the normal transactions.

------------ APPENDIX ----------

INDUSTRY DATA
Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2010		Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,887		24,362.9	95,227
Industry and Construction	5.53	7.70	95,217		10,718.9	3,641,376
Trade and Services	6.69	7.52	187,195		15,270.2	6,957,082
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.54.85
UK Pound	1	Rs.88.39
Euro	1	Rs.72.63

INFORMATION DETAILS

Report Prepared by :

PRL

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%)