MIRA INFORM REPORT

Report Date :

30.07.2012

IDENTIFICATION DETAILS

Name :	GIA KHANH ONE MEMBER COMPANY LIMITED

Registered Office :	No. 33, Van Vi Str, Chi Lang Ward, Lang Son City, Lang Son Province

Country :	Vietnam

Financials (as on) :	31.12.2011

Date of Incorporation :	16.01.2008

Com. Reg. No.:	4900267860

Legal Form :	One Member Liability Limited Company

Line of Business :	Importing and trading in fruit and agricultural products

No. of Employees :	10

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Vietnam

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

SUBJECT IDENTIFICATION & LEGAL FORM

Translation English Name		GIA KHANH ONE MEMBER COMPANY LIMITED
Registered Vietnamese Name		CONG TY TNHH MTV GIA KHANH
Type of Business		One member liability limited company
Year Established		2008
Business Registration No.		4900267860
Date of Registration		16 Jan 2008
Place of Registration		Lang Son Department of Planning and Investment
Chartered capital		VND 1,000,000,000
Status		Unlisted
Tax code		4900267860
Total Employees		10
Size		Small
Notes: The subject does not register English name. The name given GIA KANH ONE MEMBER COMPANY LIMITED is not absolutely correct.

company ADDRESSES

Head Office
Address		No. 33, Van Vi Str, Chi Lang Ward, Lang Son City, Lang Son Province, Vietnam
Telephone		(84-25) 3711722
Fax		(84-25) 3711722

Notes: The exact address of subject is as above.

DIRECTORS

1. NAME		Mr. HOANG QUANG HAI
Position		Director
Date of Birth		08 Jul 1982
ID Number/Passport		081040383
ID Issue Date		02 Dec 2003
ID Issue Place		Lang Son Police Station
Resident		Collective of Cultural Centre, Block 3, Tam Thanh Ward, Lang Son City, Lang Son Province, Vietnam
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

Importing and trading in fruit and agricultural products.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		Fruit, sesame, ground-nut...
· Market		China, India

EXPORT:
· Market		Thailand, China

BANKERS

1. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT LANG SON BRANCH
Address		No. 3, Ly Thai To Str, Dong Kinh Ward, Lang Son City, Lang Son Province, Vietnam
Telephone		(84-25) 3717205
Fax		(84-25) 3717251

SHAREHOLDERS


1. NAME		Mr. HOANG QUANG HAI
Position		Director
Date of Birth		08 Jul 1982
ID Number/Passport		081040383
Issued on		02 Dec 2003
Issued Place		Lang Son Police Station
Resident		Collective of Cultural Centre, Block 3, Tam Thanh Ward, Lang Son City, Lang Son Province, Vietnam
Nationality		Vietnamese
Value of shares		VND 1,000,000,000
Percentage		100%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010
Number of weeks	52	52
Audited Status	Unaudited	Unaudited
ASSETS
A – CURRENT ASSETS	47,035,906,968	3,128,711,248
I. Cash and cash equivalents	46,480,030,022	1,509,706,739
1. Cash	46,480,030,022	1,509,706,739
2. Cash equivalents	0	0
II. Short-term investments	0	0
1. Short-term investments	0	0
2. Provisions for devaluation of short-term investments	0	0
III. Accounts receivable	540,603,000	0
1. Receivable from customers	540,603,000	0
2. Prepayments to suppliers	0	0
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	0	0
6. Provisions for bad debts	0	0
IV. Inventories	15,253,082	1,618,848,960
1. Inventories	15,253,082	1,618,848,960
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	20,864	155,549
1. Short-term prepaid expenses	0	0
2. VAT to be deducted	0	0
3. Taxes and other accounts receivable from the State	20,864	155,549
4. Other current assets	0	0
B. LONG-TERM ASSETS	0	0
I. Long term accounts receivable	0	0
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	0	0
5. Provisions for bad debts from customers	0	0
II. Fixed assets	0	0
1. Tangible assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	0	0
- Initial costs	0	0
- Accumulated amortization	0	0
4. Construction-in-progress	0	0
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	0	0
1. Investments in affiliates	0	0
2. Investments in business concerns and joint ventures	0	0
3. Other long-term investments	0	0
4. Provisions for devaluation of long-term investments	0	0
V. Other long-term assets	0	0
1. Long-term prepaid expenses	0	0
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	47,035,906,968	3,128,711,248

LIABILITIES
A- LIABILITIES	49,909,125,207	4,905,591,385
I. Current liabilities	49,909,125,207	4,905,591,385
1. Short-term debts and loans	0	0
2. Payable to suppliers	49,454,933,207	4,779,342,170
3. Advances from customers	0	0
4. Taxes and other obligations to the State Budget	454,192,000	126,249,215
5. Payable to employees	0	0
6. Accrued expenses	0	0
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	0	0
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	0	0
1. Long-term accounts payable to suppliers	0	0
2. Long-term inter-company payable	0	0
3. Other long-term payable	0	0
4. Long-term debts and loans	0	0
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	0	0
7. Provisions for long-term accounts payable	0	0
B- OWNER’S EQUITY	-2,873,218,239	-1,776,880,137
I. OWNER’S EQUITY	-2,873,218,239	-1,776,880,137
1. Capital	1,000,000,000	1,000,000,000
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	-2,938,216,957	-2,307,661,411
7. Business promotion fund	0	0
8. Financial reserved fund	0	0
9. Other funds	0	0
10. Retained earnings	-935,001,282	-469,218,726
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	47,035,906,968	3,128,711,248

PROFIT & LOSS STATEMENT

Description	FY2011	FY2010
1. Total Sales	52,250,388,000	27,242,558,800
2. Deduction item	509,724,219	91,000,000
3. Net sale	51,740,663,781	27,151,558,800
4. Costs of goods sold	52,692,794,101	26,453,496,426
5. Gross profit	-952,130,320	698,062,374
6. Financial income	902,559	0
7. Financial expenses	0	688,062,374
- In which: Loan interest expenses	0	0
8. Selling expenses	0	0
9. Administrative overheads	119,854,636	0
10. Net operating profit	-1,071,082,397	10,000,000
11. Other income	144,195,394	0
12. Other expenses	7,414,279	0
13. Other profit /(loss)	136,781,115	0
14. Total accounting profit before tax	-934,301,282	10,000,000
15. Current corporate income tax	700,000	2,500,000
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	-935,001,282	7,500,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2011	FY2010	Average Industry
Current liquidity ratio	0.94	0.64	1.29
Quick liquidity ratio	0.94	0.31	0.90
Inventory circle	64.49	16.34	16.60
Average receive period	3.81	0.00	61.82
Utilizing asset performance	1.10	8.68	2.31
Liability by total assets	106.11	156.79	66.08
Liability by owner's equity	-1,737.05	-276.08	252.07
Ebit / Total assets (ROA)	-1.99	0.32	6.85
Ebit / Owner's equity (ROE)	32.52	-0.56	25.35
Ebit / Total sale (NPM)	-1.79	0.04	4.35
Gross profit / Total sale (GPM)	-1.82	2.56	8.03
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CASH FLOW STATEMENT
*(Direct method)*
Items	FY2011	FY2010
I. Cash flows from operating activities
1. Cash received from customers	52,251,290,559	28,362,894,300
2. Cash paid to suppliers	-6,210,781,664	0
3. Cash paid to employees	-117,000,000	-90,000,000
4. Interest paid	0	0
5. Income taxes paid	-700,000	-1,200,000
6. Other operating cash receipts	144,195,394	2,222,075,000
7. Other operating payments	-466,125,460	-29,648,744,544
Net cash flows from operating activities	45,600,878,829	845,024,756
II. Cash flows from investing activities
1. Purchases and construction of fixed assets and other long-term assets	0	0
2. Gains from disposals and liquidation of fixed assets and other long-term assets	0	0
3. Loans given and purchases of debt instruments of other entities	0	0
4. Recovery of loans given and disposals of debt instruments of other entities	0	0
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	0	0
Net cash flows from investing activities	0	0
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	0	0
4. Loan principal amounts repaid	0	0
5. Payments for financial leasehold assets	0	0
6. Dividends and profit already paid to the owners	0	0
Net cash flows from financing activities	0	0
Net cash flows during the year	45,600,878,829	845,024,756
Beginning cash and cash equivalents	1,509,706,739	2,121,918,095
Effects of fluctuations in foreign exchange rates	-630,555,546	-1,457,236,112
Ending cash and cash equivalents	46,480,030,022	1,509,706,739

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Good
Liquidity		Low/Medium
Payment status		Normal
Financial Situation		Below Average
Development trend		Developing
Litigation data		No
Bankruptcy		No
Payment Methods		Cash, transfer
Sale Methods		Retailer and Wholesaler

CREDIT INQUIRY: USD 125,000 - Caution needed for this transaction

INTERPRETATION ON THE SCORES

Subject was established in 2008. It operated under the legal form as a one member liability limited company. Its business registration number 4900267860 which is also the same tax code. Current chartered capital is VND 1 billion. Mr. Hoang Quang Hai is Director and only shareholder of subject.

Head office of subject is locating at No. 33, Van Vi street, Lang Son city, Lang Son province. Beside the subject, other company named NGUYEN HOANG GIA KHANH ONE MEMBER COMPANY LIMITED is also operating here. On the legal, two these companies are independent. However, they operate in the same field; their facilities and department are common. According to subject, India and China are main import markets. Fruit and agricultural products are supplied for Southern provinces and the remaining is exported to Thailand and China.

Financially, total assets of subject has increased strongly in 2011 from VND 3,128 million to VND 47,035 million, in which main is come from cash with VND 46,480 million. In 2011, growth of turnover was nearly doubled compared to the previous year. However, subject did not have from business activities due to high costs. Besides, owner's equity of subject dropped continuously in 2010 and 2011. Subject increased debt to finance for need its capital, this indicating that capital structure of subject is not really safe.

Generally, subject is in the first time of development. Its business activities in the last year were not effectively. With small business scale as now, subject can meet difficulty for the given credit inquiry that have value USD 125,000, thus caution is needed with this transaction.

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.55.41
UK Pound	1	Rs.86.93
Euro	1	Rs.68.10

INFORMATION DETAILS

Report Prepared by :

MNL

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.