MIRA INFORM REPORT

Report Date :

05.05.2012

IDENTIFICATION DETAILS

Name :	AUSTFEED BINH DINH CO.,LTD
Registered Office :	Lot L1-4, Nhon Hoi industrial zone, Nhon Hoi Economic Zone, Nhon Hoi commune, Qui Nhon City, Binh Dinh Province
Country :	Vietnam
Financials (as on) :	31.12.2010
Date of Incorporation :	12.11.2009
Com. Reg. No.:	35221000069
Legal Form :	Limited Liability Company
Line of Business :	Manufacturing of animal feed.
No. of Employees :	200

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 :	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 – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
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
English Name	AUSTFEED BINH DINH CO.,LTD
Vietnamese Name	CONG TY TNHH AUSTFEED BINH DINH
Type of Business	Limited liability company
Business Registration No.	35221000069
Date of Registration	12 Nov 2009
Place of Registration	Binh Dinh Industrial Zone Authority
Current registered capital	VND 20,000,000,000
Status	Unlisted
Tax code	4100984795
Total Employees	200
Size	Medium

ADDRESSES
Head Office
Address	Lot L1-4, Nhon Hoi industrial zone, Nhon Hoi Economic Zone, Nhon Hoi commune, Qui Nhon City, Binh Dinh Province, Vietnam
Telephone	(84-56) 2220055
Email	binhdinh@austfeed.com.vn
Notes: The detail address of the subject is like above.

DIRECTORS
1. NAME	Mr. DAO MANH LUONG
Position	Chairman and General Director
Date of Birth	17 Aug 1975
ID Number/Passport	012009198
ID Issue Date	15 Jun 1997
ID Issue Place	Ha Noi Police
Resident	Villa 2 No.26 X2 Bac Linh Dam, Hoang Liet Ward, Hoang Mai District, Ha Noi City, Vietnam
Current resident	Villa 2 No.26 X2 Bac Linh Dam, Hoang Liet Ward, Hoang Mai District, Ha Noi City, Vietnam
Nationality	Vietnamese
Tel/Mobil phone	+ 84 903413579
2. NAME	Mr. NGUYEN THANH HA
Position	Chief Accountant
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject company is involving in manufacturing animal feed.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Materials and admixture
· Market	India, China and Argentina
· Mode of payment	L/C, D/P
EXPORT:
Notes: Currently, the subject does not export

BANKERS
1. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK BINH DINH BRANCH
Address	No.98 Mai Xuan Thuong Ly Thuong Kiet ward, Qui Nhon City, Binh Dinh Province, Vietnam
Telephone	(84-56) 3817493
Fax	(84-56) 3817312

SHAREHOLDERS
1. NAME	AUSTFEED VIETNAM COMPANY LIMITED
Business Registration	0900235251
Date of Registration	22 Jun 2009
Place of Registration	Hung Yen Department of Planning and Investment
Registered Capital	VND 50,000,000,000
Tax code	0900235251
Address	Hong Tien Commune, Khoai Chau District, Hung Yen Province, Vietnam
Tel	84-321 3920930
Fax	84-321 3920989
Value of shares	VND 20,000,000,000
Percentage	100%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010
Number of weeks	52
ASSETS
A – CURRENT ASSETS	38,478,000,000
I. Cash and cash equivalents	1,003,000,000
1. Cash	1,003,000,000
2. Cash equivalents	0
II. Short-term investments	0
1. Short-term investments	0
2. Provisions for devaluation of short-term investments	0
III. Accounts receivable	12,982,000,000
1. Receivable from customers	60,000,000
2. Prepayments to suppliers	7,039,000,000
3. Inter-company receivable	5,801,000,000
4. Receivable according to the progress of construction	0
5. Other receivable	82,000,000
6. Provisions for bad debts	0
IV. Inventories	20,002,000,000
1. Inventories	20,002,000,000
2. Provisions for devaluation of inventories	0
V. Other Current Assets	4,491,000,000
1. Short-term prepaid expenses	55,000,000
2. VAT to be deducted	4,212,000,000
3. Taxes and other accounts receivable from the State	0
4. Other current assets	224,000,000
B. LONG-TERM ASSETS	33,044,000,000
I. Long term accounts receivable	0
1. Long term account receivable from customers	0
2. Working capital in affiliates	0
3. Long-term inter-company receivable	0
4. Other long-term receivable	0
5. Provisions for bad debts from customers	0
II. Fixed assets	27,470,000,000
1. Tangible assets	15,052,000,000
- Historical costs	15,111,000,000
- Accumulated depreciation	-59,000,000
2. Financial leasehold assets	0
- Historical costs	0
- Accumulated depreciation	0
3. Intangible assets	0
- Initial costs	0
- Accumulated amortization	0
4. Construction-in-progress	12,418,000,000
III. Investment property	0
Historical costs	0
Accumulated depreciation	0
IV. Long-term investments	0
1. Investments in affiliates	0
2. Investments in business concerns and joint ventures	0
3. Other long-term investments	0
4. Provisions for devaluation of long-term investments	0
V. Other long-term assets	5,574,000,000
1. Long-term prepaid expenses	5,319,000,000
2. Deferred income tax assets	0
3. Other long-term assets	255,000,000
VI. Goodwill	0
1. Goodwill	0
TOTAL ASSETS	71,522,000,000
LIABILITIES
A- LIABILITIES	52,316,000,000
I. Current liabilities	29,685,000,000
1. Short-term debts and loans	4,544,000,000
2. Payable to suppliers	22,739,000,000
3. Advances from customers	1,581,000,000
4. Taxes and other obligations to the State Budget	6,000,000
5. Payable to employees	316,000,000
6. Accrued expenses	383,000,000
7. Inter-company payable	109,000,000
8. Payable according to the progress of construction contracts	0
9. Other payable	7,000,000
10. Provisions for short-term accounts payable	0
II. Long-Term Liabilities	22,631,000,000
1. Long-term accounts payable to suppliers	0
2. Long-term inter-company payable	0
3. Other long-term payable	0
4. Long-term debts and loans	22,631,000,000
5. Deferred income tax payable	0
6. Provisions for unemployment allowances	0
7. Provisions for long-term accounts payable	0
B- OWNER’S EQUITY	19,206,000,000
I. OWNER’S EQUITY	19,242,000,000
1. Capital	18,999,000,000
2. Share premiums	0
3. Other sources of capital	0
4. Treasury stocks	0
5. Differences on asset revaluation	0
6. Foreign exchange differences	-8,000,000
7. Business promotion fund	0
8. Financial reserved fund	0
9. Other funds	0
10. Retained earnings	251,000,000
11. Construction investment fund	0
II. Other sources and funds	-36,000,000
1. Bonus and welfare funds	-36,000,000
2. Sources of expenditure	0
3. Fund to form fixed assets	0
MINORITY’S INTEREST	0
TOTAL LIABILITIES AND OWNER’S EQUITY	71,522,000,000

PROFIT & LOSS STATEMENT
Description	FY2010
1. Total Sales	37,104,000,000
2. Deduction item	1,071,000,000
3. Net revenue	36,033,000,000
4. Costs of goods sold	31,858,000,000
5. Gross profit	4,175,000,000
6. Financial income	76,000,000
7. Financial expenses	1,382,000,000
- In which: Loan interest expenses	0
8. Selling expenses	1,454,000,000
9. Administrative overheads	1,164,000,000
10. Net operating profit	251,000,000
11. Other income	0
12. Other expenses	0
13. Other profit /(loss)	0
14. Total accounting profit before tax	251,000,000
15. Current corporate income tax	0
16. Deferred corporate income tax	0
17. Interest from subsidiaries/related companies	0
18. Profit after tax	251,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	Average Industry
Current liquidity ratio	1.30	1.21
Quick liquidity ratio	0.62	0.41
Inventory circle	1.59	4.09
Average receive period	131.50	35.22
Utilizing asset performance	0.50	1.99
Liability by total assets	73.15	64.75
Liability by owner's equity	272.39	199.02
Ebit / Total assets (ROA)	0.35	12.59
Ebit / Owner's equity (ROE)	1.31	36.14
Ebit / Total revenue (NPM)	0.68	6.48
Gross profit / Total revenue (GPM)	11.25	12.11
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	Normal
Financial Situation	Above Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C; D/P
Sale Methods	Retailer and Wholesaler
Public opinion	Good

CREDIT INQUIRY: 125,000 USD Against DA in terms

Acceptable!

INTERPRETATION ON THE SCORES

Austfeed Binh Dinh Company Limited was set up in 2009 with the Business Registration No. 35221000069 and the tax code of 4100984795. The Business Registration Certificated registered the first time on November 2009 and there has been no change in it until now. The registered capital of the subject is 20 billion VND which is contributed totally by Austfeed Vietnam Company Limited – the business’s parent company. Presently, the subject has about 200 employees working for it.

The firm’s head office is at Lot L1-4, Nhon Hoi B Industrial Zone, Nhon Hoi Economic Zone, Nhon Hoi Commune, Quy Nhon City, Binh Dinh Province, Vietnam. In 2009, the subject started constructing its factory and on 16^th December 2010, it officially went into operation. The factory is equipped with modern machinery coming from Switzerland which has capacity of 100,000 tons per year. Main activities are manufacturing animal feed. The source of input is imported from India, China and Argentina.  The finished product is consumed in domestic market.

In 2010, total sales the subject gained were more than 37 billion VND and profit after tax was 251 million VND which took small amount in the whole sales. The reason is that costs of goods sold in 2010 were high; besides financial expenses as well as selling expenses and administrative overheads were big. Through conversation with Ms. Thuy – Accountant, she said that in 2011, the company reached to higher total sales and profit. Particularly, total sales and profit after tax was over 120 billion VND and more than 4 billion VND respectively.

Both current liquidity ratios were higher than the average industry but quick liquidity ratio was not high due to the amount of inventories took 51.98% in current assets. Average receive period tripled the average industry level, showing that the subject was not effective in collecting its account receivables. In debt structure, the subject used both short and long term liabilities. It mainly took advantage capital from its suppliers in short-term while external debts and loans were used wholly in long term. Liability by owner’s equity nearly tripled the owner’s equity, illustrating that the firm did not have strong self financial ability. Profitability indicators were low due to the humble amount in profit at year 2010. However, in 2010 with the improved total sales and profit after tax, profit ratios would be enhanced. Anyway, profit generated by the subject was not equivalent to the growth in total sales and total assets.

To sum up, the subject is medium and new firm in the industry but its operation is quite positive. Therefore, the firm now can have ability to meet normal 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)
	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.53.72
UK Pound	1	Rs.86.98
Euro	1	Rs.70.64

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%)

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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.