MIRA INFORM REPORT

Report Date :

01.06.2012

IDENTIFICATION DETAILS

Name :	VAN SON SERVICE AGRICULTURE COMPANY LIMITED
Registered Office :	Cam Hamlet, Co Bi Commune, Gia Lam Dist Ha Noi City
Country :	Vietnam
Financials (as on) :	31.03.2012
Date of Incorporation :	20.11. 2000
Com. Reg. No.:	0102001481
Legal Form :	Limited Liability Company
Line of Business :	The subject is specialized in trading materials for production animal feed
No. of Employees :	40

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Exists

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	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	VAN SON SERVICE AGRICULTURE COMPANY LIMITED
Vietnamese Name	CONG TY TNHH DICH VU NONG NGHIEP VAN SON
Short name	VAN SON CO., LTD
Type of Business	Limited liability company
Year Established	2000
Business Registration No.	0102001481
Date of Registration	20 Nov 2000
Place of Registration	Ha Noi Department of Planning and Investment
Chartered capital	VND 30,000,000,000
Status	Unlisted
Tax code	0101074921
Total Employees	40
Size	Medium

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Chartered capital: VND 850,000,000 Changed to: VND 30,000,000,000	07 Oct 2009

Company name ADDRESSES

Head Office
Address	Cam Hamlet, Co Bi Commune, Gia Lam Dist Ha Noi City, Vietnam
Telephone	(84-4) 38767394
Fax	(84-4) 36763479
Email	vansontrang@vnn.vn
Notes: The given phone number "84-4-862560167" is incorrect. The correct one is above.

DIRECTORS

1. NAME	Mr. NGUYEN VAN SON
Position	Director
Date of Birth	11 Jul 1966
ID Number/Passport	012262538
ID Issue Date	20 Jul 2006
ID Issue Place	Hanoi Police Station
Resident	Cam Hamlet, Co Bi Commune, Gia Lam Dist, Ha Noi City, Vietnam
Nationality	Vietnamese
2. NAME	Ms. NGUYEN THI HA
Position	Deputy Director
Resident	Gia Tu Hamlet, Kim Son Commune, Gia Lam Dist, Ha Noi City, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in trading materials for production animal feed.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Type of products	Materials
· Market	Singapore, India
· Mode of payment	L/C (mostly); T/T
EXPORT: Currently, the subject does not export

BANKERS

1. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK HA NOI BRANCH
Address	No. 65 Ngo Thi Nham Str., Hai Ba Trung Dist., Hanoi, Vietnam
Telephone	(84-4) 39436007
Fax	(84-4) 39432988
2. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT GIA LAM BRANCH
Address	Nguyen Duc Thuan Str, Trau Quy, Gia Lam Dist., Hanoi, Vietnam
Telephone	(84-4) 38276288
Fax	(84-4) 38276618
3. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK YEN VIEN BRANCH
Address	No. 172 Ha Huy Tap Str, Yen Vien Town, Gia Lam Dist, Ha Noi City, Vietnam
Telephone	(84-4) 36983362
Fax	(84-4) 36983361

SHAREHOLDERS

1. NAME	Mr. NGUYEN VAN SON
Position	Director
Date of Birth	11 Jul 1966
ID Number/Passport	012262538
Issued on	20 Jul 2006
Issued Place	Hanoi Police Department
Resident	Cam Hamlet, Co Bi Commune, Gia Lam Dist, Ha Noi City, Vietnam
Nationality	Vietnamese
Percentage	70.6%
2. NAME	Ms. NGUYEN THI HA
Position	Deputy Director
Resident	Gia Tu Hamlet, Kim Son Commune, Gia Lam Dist, Ha Noi City, Vietnam
Nationality	Vietnamese
Percentage	29.4%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/3/2012	31/12/2011	31/12/2010
Number of weeks	13	52	52
ASSETS
A – CURRENT ASSETS	217,116,516,742	180,934,171,651	93,537,356,831
I. Cash and cash equivalents	49,158,160,295	46,483,546,947	26,901,613,056
1. Cash	49,158,160,295	46,483,546,947	26,901,613,056
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	55,060,363,727	59,032,964,163	33,540,794,534
1. Receivable from customers	51,473,203,439	43,854,961,517	33,540,794,534
2. Prepayments to suppliers	3,587,160,288	15,178,002,646	0
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	0	0	0
6. Provisions for bad debts	0	0	0
IV. Inventories	112,897,992,720	75,417,660,541	31,648,309,315
1. Inventories	102,532,579,800	75,417,660,541	31,648,309,315
2. Provisions for devaluation of inventories	10,365,412,920	0	0
V. Other Current Assets	0	0	1,446,639,926
1. Short-term prepaid expenses	0	0	0
2. VAT to be deducted	0	0	1,446,639,926
3. Taxes and other accounts receivable from the State	0	0	0
4. Other current assets	0	0	0
B. LONG-TERM ASSETS	1,061,253,334	1,428,473,761	1,670,856,338
I. Long term accounts receivable	0	0	1,670,856,338
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	1,061,253,334	1,428,473,761	1,670,856,338
1. Tangible assets	1,061,253,334	1,428,473,761	1,670,856,338
- Historical costs	2,996,108,397	2,996,108,397	2,996,108,397
- Accumulated depreciation	-1,934,855,063	-1,567,634,636	-1,325,252,059
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	0	0	0
- Initial costs	0	0	0
- Accumulated amortization	0	0	0
4. Construction-in-progress	0	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	0	0	0
1. Long-term prepaid expenses	0	0	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	218,177,770,076	182,362,645,412	95,208,213,169
LIABILITIES
A- LIABILITIES	168,802,411,101	141,997,232,492	50,031,522,738
I. Current liabilities	168,802,411,101	141,997,232,492	50,031,522,738
1. Short-term debts and loans	109,052,782,716	124,566,495,182	35,326,409,225
2. Payable to suppliers	58,694,885,955	8,124,010,473	14,705,113,513
3. Advances from customers	568,660,041	5,350,964,497	0
4. Taxes and other obligations to the State Budget	486,082,389	3,955,762,340	0
5. Payable to employees	0	0	0
6. Accrued expenses	0	0	0
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	0	0	0
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	0	0	0
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	0	0	0
4. Long-term debts and loans	0	0	0
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	0	0	0
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	49,375,358,975	40,365,412,920	45,176,690,431
I. OWNER’S EQUITY	49,375,358,975	40,365,412,920	45,176,690,431
1. Capital	30,000,000,000	30,000,000,000	30,000,000,000
2. Share premiums	0	0	0
3. Other sources of capital	0	0	0
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	0	0	0
7. Business promotion fund	0	0	0
8. Financial reserved fund	0	0	0
9. Other funds	0	0	0
10. Retained earnings	19,375,358,975	10,365,412,920	15,176,690,431
11. Construction investment fund	0	0	0
II. Other sources and funds	0	0	0
1. Bonus and welfare funds	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	218,177,770,076	182,362,645,412	95,208,213,169

PROFIT & LOSS STATEMENT
Description	The first quarter of 2012	FY2011	FY2010
1. Total Sales	428,430,685,420	768,402,176,577	514,455,479,070
2. Deduction item	0	0	0
3. Net revenue	428,430,685,420	768,402,176,577	514,455,479,070
4. Costs of goods sold	411,190,336,967	724,701,664,407	484,150,940,977
5. Gross profit	17,240,348,453	43,700,512,170	30,304,538,093
6. Financial income	51,401,287	1,673,489,098	179,275,995
7. Financial expenses	4,066,470,382	19,178,214,233	5,784,614,371
- In which: Loan interest expenses	4,066,470,382	12,786,385,014	5,784,614,371
8. Selling expenses	0	0	0
9. Administrative overheads	1,212,017,951	3,375,236,475	4,463,612,476
10. Net operating profit	12,013,261,407	22,820,550,560	20,235,587,241
11. Other income	0	0	0
12. Other expenses	0	0	0
13. Other profit /(loss)	0	0	0
14. Total accounting profit before tax	12,013,261,407	22,820,550,560	20,235,587,241
15. Current corporate income tax	3,003,315,352	5,705,137,640	5,058,896,810
16. Deferred corporate income tax
17. Interest from subsidiaries/related companies
18. Profit after tax	9,009,946,055	17,115,412,920	15,176,690,431

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	The first quarter of 2012	FY2011	FY2010	Average Industry
Current liquidity ratio	1.29	1.27	1.87	1.21
Quick liquidity ratio	0.62	0.74	1.24	0.72
Inventory circle	3.64	13.54	15.30	12.25
Average receive period	46.91	28.04	23.80	51.49
Utilizing asset performance	1.96	4.21	5.40	2.30
Liability by total assets	77.37	77.87	52.55	59.32
Liability by owner's equity	341.88	351.78	110.75	229.17
Ebit / Total assets (ROA)	7.37	19.53	27.33	8.16
Ebit / Owner's equity (ROE)	32.57	88.21	57.60	24.08
Ebit / Total revenue (NPM)	3.75	4.63	5.06	6.61
Gross profit / Total revenue (GPM)	4.02	5.69	5.89	16.82
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Fair
Liquidity	Medium
Payment status	Average
Financial Situation	Above Average
Development trend	Stable
Litigation data	Yes
Bankruptcy	No Record
Payment Methods	L/C, T/T
Sale Methods	Wholesaler
Note: Fake label from other manufacturer in 2006.

INTERPRETATION ON THE SCORES

Founded in 2000, VAN SON CO., LTD operated under the business registration number 0102001481 with original chartered capital of VND 850 million. On October 9^th 2009, subject has increased its chartered capital to VND 30 billion and contributed by two shareholders.

Currently, the subject is operating at address Cam Hamlet, Co Bi Commune, Gia Lam District with total employees are 40 people. It is specialized in import and trading materials for production animal feed. The subject imports materials from countries such as Singapore, India... and then it supplied for domestic market. In international transactions, L/C is main payment method of subject.

Financially, at the end of 2011, value of total assets was nearly doubled the last year. Revenue increased year after year showed that business activities of subject in recent years were fairly good. In 2011, it reached VND 768 billion, increased 49.3% compared with 2010. For three first months of 2012, it attained VND 428 billion that equaled 55% total sales of the year 2011. However, liability has upward tendency, especially liability by owner's equity increased from 110.75% in 2010 to 351.78% in 2011. Although the subject used capital effectively with ROE was 88.21%, it is not in safe condition for creditors. It has much risk in meeting and payment liabilities.

In general, the financial situation is considered as above average. The future prosperity of the subject seems bright. Now, the subject has capacity to meet the small and medium financial 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)
	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.56.42
UK Pound	1	Rs.87.37
Euro	1	Rs.69.95

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.