MIRA INFORM REPORT

Report Date :

05.01.2012

IDENTIFICATION DETAILS

Correct Name :	SOC TRANG SEAFOOD JOINT STOCK COMPANY
Registered Office :	No. 220, National Road 1A, Ward 7, Soc Trang City, Soc Trang Province
Country :	Vietnam
Financials (as on) :	31.12.2010
Year of Establishment :	1978
Com. Reg. No.:	2200108445
Legal Form :	Joint Stock Company
Line of Business :	Processing and trading of frozen seafood, farm produce and animal products
No. of Employees :	3,000

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 – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Vietnam	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	SOC TRANG SEAFOOD JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN THUY SAN SOC TRANG
Short name	STAPIMEX
Type of Business	Joint stock company
Year Established	1978
Business Registration No.	2200108445
Date of Registration	19 May 2009
Place of Registration	Soc Trang Department of Planning and Investment
Current registered capital	VND 77,500,000,000
Status	Unlisted
Tax code	2200108445
Total Employees	3,000
Size	Large

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Registered English Name: SOCTRANG AQUATIC PRODUCTS AND GENERAL IMPORT-EXPORT COMPANY Changed to: SOC TRANG SEAFOOD JOINT STOCK COMPANY	08 May 2006
2	Subject has got former Type of Business: State Owned Company Changed to: Joint Stock Company	2006
3	Subject has got former Address: No. 119 National Road 1A, Ward 7, Soc Trang City, Soc Trang Province Changed to: No. 220 National Road 1A, Ward 7, Soc Trang City, Soc Trang Province	N/A
4	Subject has got former Business Registration No: 5903000041 Changed to: 2200108445	19 May 2009

company ADDRESSES

Head Office
Address	No. 220, National Road 1A, Ward 7, Soc Trang City, Soc Trang Province, Vietnam
Telephone	(84-79) 3822367 /3822164
Fax	(84-79) 3821801
Email	stapimex@hcm.vnn.vn
Website	http://www.stapimex.com.vn
Note: The given address "Son Trang" is not exact. The correct one is above.
Shop
Address	No. 77, Le Loi Str., Ward 6, Soc Trang City, Soc Trang Province, Vietnam
Note: This is aquatic veterinary medicine shop of the subject

DIRECTORS

1. NAME	Mr. TRAN VAN PHAM
Position	General Director
Date of Birth	20 Nov 1967
ID Number/Passport	366017929
ID Issue Date	14 Apr 2010
ID Issue Place	Soc Trang Police Station
Nationality	Vietnamese
2. NAME	Mr. HA HUU TRI
Position	Chairman cum Vice General Director
Date of Birth	1959
ID Number/Passport	365578851
ID Issue Date	04 Apr 2002
ID Issue Place	Soc Trang Police Station
Resident	No.79B, Kenh 8m Road, Ward 2, Soc Trang City, Soc Trang Province, Vietnam
Nationality	Vietnamese
3. NAME	Mr. NGUYEN VAN MANG
Position	Deputy General Director
Nationality	Vietnamese
4. NAME	Mr. TA VAN VUNG
Position	Deputy General Director and Vice Chairman
Nationality	Vietnamese
5. NAME	Ms. AU CHAU PHUONG
Position	Chief Accountant
ID Number/Passport	365769119
ID Issue Date	14 Apr 2010
ID Issue Place	Soc Trang Police Station
Resident	No. 57, Dinh Tien Hoang Street, Ward 1, Soc Trang City, Soc Trang Province, Vietnam
Nationality	Vietnamese
Tel/Mobil phone	+84 919265995
Email	acphuong@vnn.vn

BUSINESS NATURE AND ACTIVITIES

The subject is operating in the following activities:
• Processing and trading of frozen seafood, farm produce and animal products;

• Import materials and equipments for production and some kinds of essential consumer goods;

• Trading in materials using in aquaculture.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Materials and equipment for production
· Market	Denmark, Japan, Sweden, France, England, Italy and USA
· Mode of payment	L/C, T/T
EXPORT:
· Types of products	Frozen seafood products
· Market	USA, Japan, Korea, Canada and EU
· Mode of payment	L/C, T/T

BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM SOC TRANG BRANCH
Address	No 25-27 Hai Ba Trung, Ward 1, Soc Trang City, Soc Trang Province, Vietnam
Telephone	(84-079) 3821036
Fax	(84-079) 3824186
2. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK SOC TRANG BRANCH
Address	No.65 Phu Loi, ward 2, Soc Trang City, Soc Trang Province, Vietnam
Telephone	(84-79) 3616762
Fax	(84-79) 3616761
3. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM SOC TRANG BRANCH
Address	No.40, Nguyen Du Street, Ward 9, Soc Trang City, Soc Trang Province, Vietnam
Telephone	(84-79) 3615445

SHAREHOLDERS

The foundation shareholder is registered on the legal document.
1. NAME	STATE CAPITAL INVESTMENT CORPORATION
Business Registration	0101992921
Date of Registration	09 Jul 2010
Place of Registration	Ha Noi Planning and Investment Department
Registered Capital	VND 19,000,000,000,000
Tax code	0101992921
Address	No. 15A, Tran Khanh Du Str., Hoan Kiem District, Ha Noi City, Vietnam
Tel	(84-4) 62780126
Fax	(84-4) 62780136
Number of shares	2,695,000
Value of shares	VND 26,950,000,000
Percentage	34.77%

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	386,566,000,000	404,491,844,024	367,230,000,000
I. Cash and cash equivalents	4,163,000,000	194,894,216,240	19,432,000,000
1. Cash	4,163,000,000	194,894,216,240	19,432,000,000
2. Cash equivalents	0	0	0
II. Short-term investments	158,242,000,000	7,353,063,156	4,170,000,000
1. Short-term investments	158,242,000,000	7,353,063,156	4,170,000,000
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	81,327,000,000	72,800,629,633	58,393,000,000
1. Receivable from customers	80,159,000,000	65,573,134,392	47,513,000,000
2. Prepayments to suppliers	17,294,000,000	19,737,751,414	18,764,000,000
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	346,000,000	184,808,494	123,000,000
6. Provisions for bad debts	-16,472,000,000	-12,695,064,667	-8,007,000,000
IV. Inventories	139,091,000,000	127,691,096,848	282,309,000,000
1. Inventories	139,091,000,000	127,691,096,848	282,309,000,000
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	3,743,000,000	1,752,838,147	2,926,000,000
1. Short-term prepaid expenses	0	0	0
2. VAT to be deducted	3,349,000,000	1,185,546,462	2,618,000,000
3. Taxes and other accounts receivable from the State	15,000,000	0	0
4. Other current assets	379,000,000	567,291,685	308,000,000
B. LONG-TERM ASSETS	173,524,000,000	160,865,354,249	169,565,000,000
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	168,340,000,000	154,793,705,761	161,790,000,000
1. Tangible assets	138,972,000,000	123,920,075,585	131,850,000,000
- Historical costs	267,695,000,000	232,683,627,537	220,718,000,000
- Accumulated depreciation	-128,723,000,000	-108,763,551,952	-88,868,000,000
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	16,620,000,000	16,826,674,459	15,822,000,000
- Initial costs	17,125,000,000	17,068,612,040	15,877,000,000
- Accumulated amortization	-505,000,000	-241,937,581	-55,000,000
4. Construction-in-progress	12,748,000,000	14,046,955,717	14,118,000,000
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	5,000,000,000	5,000,000,000	5,000,000,000
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	0	0
3. Other long-term investments	5,000,000,000	5,000,000,000	5,000,000,000
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	184,000,000	1,071,648,488	2,775,000,000
1. Long-term prepaid expenses	0	1,071,648,488	2,775,000,000
2. Deferred income tax assets	0	0	0
3. Other long-term assets	184,000,000	0	0
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	560,090,000,000	565,357,198,273	536,795,000,000
LIABILITIES
A- LIABILITIES	329,972,000,000	346,050,740,334	317,283,000,000
I. Current liabilities	315,640,000,000	331,448,317,959	271,596,000,000
1. Short-term debts and loans	278,124,000,000	311,774,774,049	245,894,000,000
2. Payable to suppliers	18,290,000,000	6,549,430,680	12,608,000,000
3. Advances from customers	251,000,000	1,018,172,500	14,000,000
4. Taxes and other obligations to the State Budget	711,000,000	928,592,436	76,000,000
5. Payable to employees	15,517,000,000	9,212,055,490	10,224,000,000
6. Accrued expenses	1,335,000,000	521,794,693	707,000,000
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	1,412,000,000	1,443,498,111	2,073,000,000
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	14,332,000,000	14,602,422,375	45,687,000,000
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	13,659,000,000	13,778,817,510	45,687,000,000
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	673,000,000	823,604,865	0
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	230,118,000,000	219,306,457,939	219,512,000,000
I. OWNER’S EQUITY	228,527,000,000	216,978,722,304	219,231,000,000
1. Capital	77,500,000,000	77,500,000,000	77,500,000,000
2. Share premiums	107,650,000,000	107,650,000,000	107,650,000,000
3. Other sources of capital	0	0	0
4. Treasury stocks	-2,695,000,000	-2,695,000,000	-2,695,000,000
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	-556,000,000	-2,759,776,676	0
7. Business promotion fund	13,152,000,000	11,230,127,455	7,489,000,000
8. Financial reserved fund	8,760,000,000	6,838,723,319	4,345,000,000
9. Other funds	0	0	0
10. Retained earnings	24,716,000,000	19,214,648,206	24,942,000,000
11. Construction investment fund	0	0	0
II. Other sources and funds	1,591,000,000	2,327,735,635	281,000,000
1. Bonus and welfare funds	1,591,000,000	2,327,735,635	281,000,000
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	560,090,000,000	565,357,198,273	536,795,000,000

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009	FY2008
1. Total Sales	1,577,331,000,000	1,314,292,522,338	1,106,824,000,000
2. Deduction item	13,360,000,000	10,809,236,615	0
3. Net sale	1,563,971,000,000	1,303,483,285,723	1,106,824,000,000
4. Costs of goods sold	1,479,602,000,000	1,225,196,906,217	1,003,732,000,000
5. Gross profit	84,369,000,000	78,286,379,506	103,092,000,000
6. Financial income	34,725,000,000	29,657,304,896	16,034,000,000
7. Financial expenses	14,007,000,000	20,859,358,256	33,125,000,000
- In which: Loan interest expenses	11,117,000,000	17,903,975,715	23,711,000,000
8. Selling expenses	64,163,000,000	48,272,730,976	39,971,000,000
9. Administrative overheads	15,813,000,000	18,856,128,680	22,492,000,000
10. Net operating profit	25,111,000,000	19,955,466,490	23,538,000,000
11. Other income	817,000,000	682,406,829	1,579,000,000
12. Other expenses	96,000,000	614,492,926	67,000,000
13. Other profit /(loss)	721,000,000	67,913,903	1,512,000,000
14. Total accounting profit before tax	25,832,000,000	20,023,380,393	25,050,000,000
15. Current corporate income tax	1,116,000,000	808,732,187	108,000,000
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	24,716,000,000	19,214,648,206	24,942,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	1.22	1.22	1.35	1.45
Quick liquidity ratio	0.78	0.84	0.31	0.93
Inventory circle	10.64	9.60	4.11	7.42
Average receive period	18.98	20.39	19.26	68.87
Utilizing asset performance	2.79	2.31	2.06	1.66
Liability by total assets	58.91	61.21	59.11	63.62
Liability by owner's equity	143.39	157.79	144.54	289.65
Ebit / Total assets (ROA)	6.60	6.71	9.08	8.16
Ebit / Owner's equity (ROE)	16.06	17.29	22.21	27.66
Ebit / Total sale (NPM)	2.34	2.89	4.41	5.74
Gross profit / Total sale (GPM)	5.35	5.96	9.31	11.21
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CASH FLOW STATEMENT
(Direct method)
Items	FY2010		FY2009
I. Cash flows from operating activities
1.Cash received from customers	1,494,232,000,000		1,247,506,684,033
2. Cash paid to suppliers	-1,410,858,000,000		-1,023,732,172,623
3. Cash paid to employees	-94,620,000,000		-84,422,921,691
4. Interest paid	-11,294,000,000		-17,907,619,427
5. Income taxes paid	-1,502,000,000		-76,491,862
6. Other operating cash receipts	43,335,000,000		37,679,310,245
7. Other operating payments	-11,234,000,000		-6,785,659,774
Net cash flows from operating activities	8,059,000,000		152,261,128,901
II. Cash flows from investing activities
1. Purchases and construction of fixed assets and other long-term assets	-34,117,000,000	-16,658,432,662
2. Gains from disposals and liquidation of fixed assets and other long-term assets	55,000,000	427,272,727
3. Loans given and purchases of debt instruments of other entities	-762,505,000,000	-260,802,765,400
4. Recovery of loans given and disposals of debt instruments of other entities	611,588,000,000	257,614,365,750
5. Investments into other entities	0	0
6. Withdrawals of investments in other entities	0	0
7. Receipts of loan interests, dividends and profit shared	10,143,000,000	22,730,574,854
Net cash flows from investing activities	-174,836,000,000	3,311,015,269
III. Cash flows from financing activities
1. Gains from stock issuance and capital contributions from shareholders	0	0
2. Repayment for capital contributions and re-purchases of stocks already issues	0	0
3. Short-term and long-term loans received	2,890,020,000,000	2,134,899,638,648
4. Loan principal amounts repaid	-2,911,315,000,000	-2,101,423,885,477
5. Payments for financial leasehold assets	0	0
6. Dividends and profit already paid to the owners	-13,322,000,000	-15,024,820,000
Net cash flows from financing activities	-34,617,000,000	18,450,933,171
Net cash flows during the year	-201,394,000,000	174,023,077,341
Beginning cash and cash equivalents	194,894,000,000	19,432,291,486
Effects of fluctuations in foreign exchange rates	10,663,000,000	1,438,847,413
Ending cash and cash equivalents	4,163,000,000	194,894,216,240

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Fair
Liquidity	Medium
Payment status	Average
Financial Situation	Above Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C, T/T
Sale Methods	To contracts
Public opinion	Good

CREDIT INQUIRY: USD 125,000 Against D/A in terms

Acceptable!

INTERPRETATION ON THE SCORES

The subject was established in 1978 under the form a state owned company. In 1993, the subject operated with name SOCTRANG AQUATIC PRODUCTS AND GENERAL IMPORT-EXPORT COMPANY. Up to 2006, the subject has equitized and changed its name to SOC TRANG SEAFOOD JOINT STOCK COMPANY. Currently, it is operating following to business registration No. 2200108445 (as the same tax code) with VND 77,500,000,000.

Head office of the subject is locating at No. 220, National Road 1A, Ward 7, Soc Trang City, Soc Trang Province. Besides, it has an aquatic veterinary medicine shop in Soc Trang Province.

Currently, the subject imports materials and equipment for production from many countries such as Denmark, Japan, France, England, USA, etc. The subject is mainly processing and exporting of shrimp with multiform products like Sushi, Raw PTO, CPTO, HLSO, RING shrimp, HLSO, Skewer, Raw PD… Products sold to about 20 countries in the world, in which USA and Japan are the biggest export markets.

The subject was applied quality management programs in processing HACCP, ISO 9001:2000, BRC. Region to purchase raw materials was mainly Soc Trang province (80%) and the rest were Ca Mau and Bac Lieu province (20%).

Financially, base on the above financial data of the subject, we see its financial situation is above average. In 2010, value of total asset was VND 560 billion lower than 2009 due to cash reduce; total sale attained VND 1,577 billion, increase 20% compared to 2009; profit after tax had growth from VND 19 billion in 2009 to VND 24 billion in 2010.

The current liquidity ratio was acceptable but the quick liquidity ratio was low due to inventories still large. Liabilities in 2010 were lower than previous year so liability ratios had decrease. However profitable ratios were humble in compared with the industry average.

In general, business activities of the subject is stable, it is developing and has prospect in the future. According to Mr. Danh - Administrative Management, the subject's business transactions can be up to USD 300,000. With its current financial situation, it has capacity to meet normal commitments.

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.53.14
UK Pound	1	Rs.83.08
Euro	1	Rs.69.25

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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