MIRA INFORM REPORT

Report Date :

12.02.2012

IDENTIFICATION DETAILS

Name :	VEDAN VIETNAM ENTERPRISE CORPORATION LIMITED
Registered Office :	National Road 51 - 1A Hamlet Phuoc Thai Commune, Long Thanh District, Dong Nai Province
Country :	Viet Nam
Financials (as on) :	31.12.2010
Date of Incorporation :	1991
Legal Form :	Foreign invested company
Line of Business :	Manufacturing and trading of MSG (monosodium glutamate), glutamic Acid, Sugar syrup, NaOH, HCP, etc
No. of Employees :	2,800

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 :	Good
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 – 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
Current legal status
English Name	VEDAN VIETNAM ENTERPRISE CORPORATION LIMITED
Registered Vietnamese Name	CONG TY CO PHAN HUU HAN VEDAN VIETNAM
Short name	VEDAN VIETNAM
Type of Business	Foreign invested company
Year Established	1991
Investment Certificate No	471033000143
Date Of Issuance	30 Jun 2008
Place of Issuance	Dong Nai province People’s Committee
Registered Investment Capital	USD 501,860,000
Chartered capital	USD 133,470,000
Investment Duration	50 years
Status	Unlisted
Tax code	3600239719
Total Employees	2,800
Size	Large

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Registered Investment Capital: USD 452,600,000, changed to USD 460,724,000, changed to USD 500,360,000, then Changed to: USD 501,860,000	30 Dec 2011
2	Subject has got former Chartered capital: USD 129,961,924 increased to USD 131,970,000, then Changed to: USD 133,470,000	09 Dec 2010
3	Subject has got former Investment Certificate No: 171A/GPDC21, Issuance on June 09th 2006, Issuance by Dong Nai industrial zone authority. Changed to: 471033000143, Issuance by Dong Nai province People’s Committee	30 Jun 2008
4	Subject has got former Board Of Director: The General Directors: Mr. JOEL.J.WANG Changed to: Mr. YANG KUN HSIANG	2008
5	Subject has got former Shareholders: VEDAN ENTERPRISE CORPORATION - TAIWAN Changed to: BURGHLEY ENTERPRISES PTE., LTD	2002

ADDRESSES
Head Office
Address	National Road 51 - 1A Hamlet Phuoc Thai Commune, Long Thanh District, Dong Nai Province, Vietnam
Telephone	(84-61) 382 5111
Fax	(84-61) 354 3160
Email	vnmkt@vedaninternational.com
Website	www.vedan.com.vn
Factory Address
Address	Tan Lap ward, Ham Thuan Nam District, Binh Thuan Province, Vietnam
Telephone	(84-62) 3869371
Manager	Mr. HUANJG LIANG MING
Factory Address
Address	National Road 12 My Tan Village Ki Son Ward, Ky Anh District, Ha Tinh Province, Vietnam
Telephone	(84-39) 3866385
Factory Address
Address	Ky Son commune , Ky Anh District, Ha Tinh Province, Vietnam
Telephone	(84-39) 374341/ 42/43/.../49.
Fax	(84-39) 374349
Manager	Mr. CHANG JUNG CHOU
Branch in Ha Noi
Address	No 34 Plot 1A, Trung Yen 11B, Cau Giay District, Ha Noi City, Vietnam
Telephone	(84-4) 37833721
Fax	(84-4) 37833720
Branch in Binh Phuoc
Address	Long Phu Str Bu Nho ward, Phuoc Long District, Binh Phuoc Province, Vietnam
Telephone	(84-651) 3777627
Fax	(84-651) 3777631

DIRECTORS
1. NAME	Mr. YANG TOU HSIUNG - DUONG DAU HUNG in Vietnamese
Position	Chairman of Board of Directors
Date of Birth	1942
Resident	No. 65 Hsin An Street, Shalu, Taichung, Taiwan
Nationality	Taiwanese
2. NAME	Mr. YANG KUN HSIANG
Position	General Director and Deputy Chairman
Nationality	Taiwanese
3. NAME	Mr. HSIEH JAU HWANG
Position	Deputy General Director
Date of Birth	1950
Nationality	Taiwanese
Qualification	Management

BUSINESS NATURE AND ACTIVITIES

The subject registers and operates in the manufacturing and trading:
 - MSG (monosodium glutamate), glutamic Acid, Sugar syrup, NaOH, HCP, etc
 - High-grade starch, Lysine, caustic soda 45%, 32%, bleaching agent
 - Agricultural products such as additives for cattle feed and fertilizer
 - Power plant 72MW

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Molasses and Industrial salt
· Market	Thailand, Indonesia, Singapore, Taiwan, Japan, and Australia
· Mode of payment	L/C, T/T
EXPORT:
· Types of products	Finished Products
· Market	Taiwan, Japan, China, Hong Kong, Korea, Thailand, India, and Australia.
· Mode of payment	L/C, TT

BANKERS
1. BANGKOK BANK HOCHIMINH BRANCH
Address	No. 35, Nguyen Hue Str, Ben Nghe Ward,, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3821 4396
Fax	(84-4) 3821 4721
2. CHINFON BANK Hochiminh City Branch
Address	27Tu Xuong Str, Ward 17 , 3 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3932 5888
Fax	(84-8) 3932 6431
3. MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD - HO CHI MINH BRANCH
Address	No.5B Ton Duc Thang Str, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 38225697
Fax	(84-8) 38225698
4. CHINATRUST COMMERCIAL BANK
Address	Floor 1 - Petrovietnam Tower - 1-5 Le Duan St , 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 39101888
Fax	(84-8) 39101999

SHAREHOLDERS
1. NAME	BURGHLEY ENTERPRISE PTE., LTD
Address	No. 51 - Goldhill Plaza#18-05 , Singapore
Number of shares	133,203,060
Value of shares	USD 133,203,060
Percentage	99.8%
2. NAME	VIETNAM ORSAN COMPANY LIMITED
Business Registration	411043000936
Tax code	0300828436
Address	Hamlet 9 Tan Thoi Hiep ward, 12 District, Ho Chi Minh City, Vietnam
Tel	(84-8) 37171428/ 37171563
Number of shares	133,470
Value of shares	USD 133,470
Percentage	0.1%
3. NAME	VEYU COMPANY LIMITED
Business Registration	391045000068
Tax code	5900345493
Address	Tan An ward, Gia Lai Province, Vietnam
Tel	(84-59) 383 2282
Number of shares	133,470
Value of shares	USD 133,470
Percentage	0.1%

FINANCIAL DATA
BALANCE SHEET
Balance sheet date	31/12/2010	31/12/2009	31/12/2008
Number of weeks	52	52	52
Unit	VND	USD	VND
ASSETS
A – CURRENT ASSETS	2,595,373,188,768	113,090,831	1,942,310,000,000
I. Cash and cash equivalents	455,979,302,520	22,955,866	280,163,000,000
1. Cash	333,115,298,724	11,309,934	148,669,000,000
2. Cash equivalents	122,864,003,796	11,645,932	131,494,000,000
II. Short-term investments	9,000,007,752	278,691	3,002,000,000
1. Short-term investments	9,000,007,752	278,691	3,002,000,000
2. Provisions for devaluation of short-term investments	0		0
III. Accounts receivable	810,344,218,820	31,661,402	613,987,000,000
1. Receivable from customers	755,592,893,752	29,010,606	471,468,000,000
2. Prepayments to suppliers	40,091,671,644	1,641,362	130,617,000,000
3. Inter-company receivable	0		0
4. Receivable according to the progress of construction	0		0
5. Other receivable	54,450,268,404	2,849,841	27,710,000,000
6. Provisions for bad debts	-39,790,614,980	-1,840,407	-15,808,000,000
IV. Inventories	1,301,154,293,096	56,657,164	1,033,120,000,000
1. Inventories	1,306,168,509,024	56,983,071	1,052,240,000,000
2. Provisions for devaluation of inventories	-5,014,215,928	-325,907	-19,120,000,000
V. Other Current Assets	18,895,366,580	1,537,708	12,038,000,000
1. Short-term prepaid expenses	1,722,433,360	147,451	1,340,000,000
2. VAT to be deducted	16,614,742,132	1,362,623	10,301,000,000
3. Taxes and other accounts receivable from the State	0		0
4. Other current assets	558,191,088	27,634	397,000,000
B. LONG-TERM ASSETS	2,175,426,290,976	121,089,353	1,715,629,000,000
I. Long term accounts receivable	17,325,998,440	1,398,333	24,919,000,000
1. Long term account receivable from customers	0		0
2. Working capital in affiliates	0		0
3. Long-term inter-company receivable	0		0
4. Other long-term receivable	17,325,998,440	1,398,333	24,919,000,000
5. Provisions for bad debts from customers	0		0
II. Fixed assets	2,008,015,329,044	109,601,147	1,478,441,000,000
1. Tangible assets	1,883,090,160,544	96,998,069	1,316,922,000,000
- Historical costs	9,365,496,751,792	476,240,668	7,474,652,000,000
- Accumulated depreciation	-7,482,406,591,248	-379,242,599	-6,157,730,000,000
2. Financial leasehold assets	0		0
- Historical costs	0		0
- Accumulated depreciation	0		0
3. Intangible assets	19,967,731,856	1,090,865	19,260,000,000
- Initial costs	31,157,622,980	1,514,600	24,188,000,000
- Accumulated amortization	-11,189,891,124	-423,735	-4,928,000,000
4. Construction-in-progress	104,957,436,644	11,512,213	142,259,000,000
III. Investment property	0		0
Historical costs	0		0
Accumulated depreciation	0		0
IV. Long-term investments	112,437,867,416	8,731,494	149,325,000,000
1. Investments in affiliates	110,527,628,616	5,838,138	99,248,000,000
2. Investments in business concerns and joint ventures	0		0
3. Other long-term investments	1,910,238,800	2,893,356	50,077,000,000
4. Provisions for devaluation of long-term investments	0		0
V. Other long-term assets	37,647,096,076	1,358,379	62,944,000,000
1. Long-term prepaid expenses	29,093,788,864	938,402	54,179,000,000
2. Deferred income tax assets	7,634,007,156	370,893	7,911,000,000
3. Other long-term assets	919,300,056	49,084	854,000,000
VI. Goodwill	0
1. Goodwill	0
TOTAL ASSETS	4,770,799,479,744	234,180,184	3,657,939,000,000
LIABILITIES
A- LIABILITIES	1,470,384,222,656	60,357,919	1,083,238,000,000
I. Current liabilities	1,177,095,206,800	43,979,462	1,018,180,000,000
1. Short-term debts and loans	351,890,712,152	17,641,428	581,467,000,000
2. Payable to suppliers	532,791,235,248	16,192,399	177,385,000,000
3. Advances from customers	6,884,167,432	393,361	5,220,000,000
4. Taxes and other obligations to the State Budget	26,954,453,932	2,181,297	104,328,000,000
5. Payable to employees	32,026,261,004	1,398,796	24,491,000,000
6. Accrued expenses	2,668,011,032	58,120	2,354,000,000
7. Inter-company payable	0		0
8. Payable according to the progress of construction contracts	0		0
9. Other payable	223,880,366,000	6,114,061	122,935,000,000
10. Provisions for short-term accounts payable	0		0
II. Long-Term Liabilities	293,289,015,856	16,378,457	65,058,000,000
1. Long-term accounts payable to suppliers	0		0
2. Long-term inter-company payable	0		0
3. Other long-term payable	274,627,592	17,856	53,000,000
4. Long-term debts and loans	288,892,456,428	16,222,000	63,717,000,000
5. Deferred income tax payable	0		0
6. Provisions for unemployment allowances	4,121,931,836	138,601	1,288,000,000
7. Provisions for long-term accounts payable	0		0
B- OWNER’S EQUITY	3,300,415,257,088	173,822,265	2,574,701,000,000
I. OWNER’S EQUITY	3,300,415,257,088	173,822,265	2,574,701,000,000
1. Capital	2,498,456,040,000	129,961,924	2,056,353,000,000
2. Share premiums	0		0
3. Other sources of capital	0		0
4. Treasury stocks	0		0
5. Differences on asset revaluation	0		0
6. Foreign exchange differences	0	-1,334,535	0
7. Business promotion fund	0		0
8. Financial reserved fund	0		0
9. Other funds	0		0
10. Retained earnings	801,959,217,088	45,194,876	518,348,000,000
11. Construction investment fund	0		0
II. Other sources and funds	0		0
1. Bonus and welfare funds	0		0
2. Sources of expenditure	0		0
3. Fund to form fixed assets	0		0
MINORITY’S INTEREST	0		0
TOTAL LIABILITIES AND OWNER’S EQUITY	4,770,799,479,744	234,180,184	3,657,939,000,000

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009	FY2008
1. Total Sales	5,443,658,757,284	238,221,393	5,067,469,000,000
2. Deduction item	2,507,808,448	195,363	0
3. Net revenue	5,441,150,948,836	238,026,030	5,067,469,000,000
4. Costs of goods sold	4,316,399,957,964	164,224,409	3,917,145,000,000
5. Gross profit	1,124,750,990,872	73,801,621	1,150,324,000,000
6. Financial income	42,772,783,620	1,309,980	71,214,000,000
7. Financial expenses	75,979,435,892	3,788,668	96,701,000,000
- In which: Loan interest expenses	22,488,716,976	985,479	36,909,000,000
8. Selling expenses	304,509,898,664	14,016,474	224,783,000,000
9. Administrative overheads	218,394,345,700	12,109,065	217,191,000,000
10. Net operating profit	568,640,094,236	45,197,394	682,863,000,000
11. Other income	16,067,266,556	883,649	10,810,000,000
12. Other expenses	267,595,868,560	3,277,903	15,362,000,000
13. Other profit /(loss)	-251,528,602,004	-2,394,254	-4,552,000,000
14. Total accounting profit before tax	317,111,492,232	42,803,140	678,311,000,000
15. Current corporate income tax	80,927,503,412	7,004,872	117,836,000,000
16. Deferred corporate income tax	612,241,948	94,451	6,666,000,000
17. Interest from subsidiaries/related companies	0
18. Profit after tax	236,796,230,768	35,703,817	567,141,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	2.20	2.57	1.91	1.30
Quick liquidity ratio	1.10	1.28	0.89	0.68
Inventory circle	3.32	2.90	4.36	6.60
Average receive period	54.36	48.55	44.22	47.55
Utilizing asset performance	1.14	1.02	1.39	1.63
Liability by total assets	30.82	25.77	29.61	60.84
Liability by owner's equity	44.55	34.72	42.07	157.24
Ebit / Total assets (ROA)	7.12	18.70	19.55	9.87
Ebit / Owner's equity (ROE)	10.29	25.19	27.78	29.99
Ebit / Total revenue (NPM)	6.24	18.38	14.11	6.43
Gross profit / Total revenue (GPM)	20.66	30.98	22.70	15.71
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	Above Average
Financial Situation	Strong
Development trend	Positive
Litigation data	Yes
Bankruptcy	No Record
Payment Methods	L/C, T/TR, D/A, D/P
Sale Methods	Retailer and Wholesaler

INTERPRETATION ON THE SCORES

The subject is a Foreign invested company, which was almost invested by Singapore partner. It was established in 1991. After 21 years of operation, the subject’s operation is effective with a big turnover. Under the new law of investment in Viet Nam, on 30 Jun 2008, the company changed its investment certificate from No. 171A/GPDC21 to No. 471033000143. After increasing capital at final last year, the current registered investment capital is USD 501,860,000, in which the chartered capital accounts USD 133,470,000.

The head office and factory of the subject are located at National Road 51 - 1A Hamlet Phuoc Thai Commune, Long Thanh District, Dong Nai Province, Vietnam. It also has many factories in Binh Thuan, Binh Phuoc, Ha Tinh Province, one transaction office in Ha Noi City, two subsidiaries - Vezu Company Limited in Gia Lai Province and Orsan Viet Nam Company Limited in Hochiminh City, and a system of distributing agencies nationwide. The organization is good. The subject has to import almost materials and additives from many foreign countries, such as Thailand, Indonesia, Singapore, Taiwan, Japan, and Australia. Currently, the strongest activity of the subject is producing and trading in MSG (monosodium glutamate), high-grade starch. It has a big distribution network throughout Vietnam. Besides, its products have been exported to Taiwan, Japan, China, Hong Kong, Korea, Thailand, India, and Australia. The products of the company are appreciated by consumers.

According to financial data, we found that its recent operation situation has been good. The revenue increased well. However, its profit in 2010 decreased in compared with the previous year, because costs were not managed well and increased per unit of product. High annual retained earnings show that it always obtains the profit. It shows that its business effectiveness was good. In 2010 total assets had a stable growth of about 16.6% against 2009, indicating that the subject expanded its scale well.

Current liquidity ratios witnessed a decrease in FY2010 over FY2009. The liabilities always accounted a safe ratio in its capital structure.

According to Mr. Thong, legal department, in 2011 the subject improved slightly and stably. He also revealed that although in last year the industry faced some difficulties of market and input sources, the subject had had a good preparation. Thus, it did not affect much and has still developed well. This trend suggests a growing performance operation in the future.

The company was received ISO 9001, OHSAS, HACCP, HALAL, KOSHER, B2, ISO 14001:2004, ISO/IEC 17025: 2005 standards in managing quality. In 2011, the subject stood at number 136 in VNA500 (500 most famous Vietnamese trademarks), No. 75 in V1000 (top 1000 enterprises paying the biggest tax).

In general, the finance situation and business operation of the subject appear good. Its business is stable and developing. The subject has capacity to meet the financial commitments. No caution needed for the small and medium business 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)
	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.49.64
UK Pound	1	Rs.78.35
Euro	1	Rs.65.79

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.