MIRA INFORM REPORT

Report Date :

20.11.2012

IDENTIFICATION DETAILS

Name :	AHP PESTICIDE CO., LTD

Registered Office :	No. 374 Hong Bang Str, Ward 16, District 11, Ho Chi Minh City

Country :	Vietnam

Financials (as on) :	31.12.2011

Year of Establishment :	2000

Com. Reg. No.:	0301959022

Legal Form :	Limited Liability Company

Line of Business :	processing, packaging and trading in pesticides and other related chemicals

No. of Employees :	120 employees

RATING & COMMENTS

MIRA’s Rating :

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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Vietnam

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

vietnam - ECONOMIC OVERVIEW

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
Registered English Name		AHP PESTICIDE CO., LTD
Registered Vietnamese Name		CONG TY TNHH BAO VE THUC VAT AN HUNG PHAT
Type of Business		Limited liability company
Year Established		2000
Business Registration No.		0301959022
Date of latest adjustment (10^th)		09 Jun 2011
Place of Registration		Business registration office - Planning and Investment Department of Ho Chi Minh City
Chartered capital		VND 8,000,000,000
Tax code		0301959022
Total Employees		120

Historical Identification & Legal form

List	Changed Items
1	Subject has got former Registered Vietnamese Name: CONG TY TNHH DICH VU - THUONG MAI & SAN XUAT AN HUNG PHAT Changed to: CONG TY TNHH BAO VE THUC VAT AN HUNG PHAT
2	Subject has got former Chartered capital: VND 4,000,000,000 Changed to: VND 8,000,000,000
3	Subject has got former Business Registration No: 4102000691 issued on 7 Apr 2000 Changed to: 0301959022

COMPANY ADDRESSES

Head Office
Address		No. 374 Hong Bang Str, Ward 16, District 11, Ho Chi Minh City, Vietnam
Telephone		(84-8) 3960 7914 – 3969 2372 - 39607883 – 3960 8124 – 3969 3432
Fax		(84-8) 3960 4298 – 3960 5487
Email		ahp-q11@hcm.vnn.vn
Website		www.ahppesticide.com

Branch in Long An
Address		D3, Lot D, Road No.1, Tan Kim IP, Tan Kim Commune, , Can Giuoc District, Long An Province, Vietnam

Branch in Lam Dong
Address		Finom – Hiep Thanh Commune, Duc Trong District, Lam Dong Province, Vietnam

Branch in Can Tho
Address		Highway 80, Thot Not District, Can Tho City, Vietnam

Branch in Ho Chi Minh
Address		1185 Quarter 5, Highway 1A, Binh Tri Dong B Ward, Binh Tan District, Ho Chi Minh City, Vietnam

Branch in Ha Noi
Address		Group 3, Dia Hamlet, Nam Hong Commune, Dong Anh District, Ha Noi City, Vietnam

Branch in Ha Noi
Address		315A Hoang Mai Str, Group 45A, Hoang Van Thu Ward, Hoang Mai District, Ha Noi City, Vietnam

Warehouse
Address		203 Nguyen Thi Nho Str, Ward 16, District 11, Ho Chi Minh City, Vietnam

DIRECTORS

1. NAME		Mr. TRUONG DUC TANH
Position		President - Director
Date of Birth		17 Jul 1960
ID Number/Passport		020606839
ID Issue Date		17 Apr 1997
ID Issue Place		Police station of Hochiminh city
Resident		No. 374 Hong Bang Str, Ward 16, District 11, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Email		ahp-tanh@vnn.vn

2. NAME		Ms. NGUYEN THI NGOC HUONG
Position		Deputy Director
Nationality		Vietnamese

3. NAME		Ms. PHAN THI THUY LOAN
Position		Chief Accountant
Resident		Ho Chi Minh City, Vietnam
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is focusing on processing, packaging and trading in pesticides and other related chemicals.
Trading in chemicals, materials for industrial and agricultural sector, seeding, fertilizer, automobile
and motorbike, packages, and agricultural products
- Producing packs.
- Providing printing services
- Transporting passenger by land, materials and fuel.
- Processing, packaging plant protection medicines, and chemicals
- Trading in building materials (iron, steel)

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Market		China,Thailand, and India

EXPORT:
Note: Currently, the subject does not export

BANKERS

MARITIME COMMERICAL STOCK BANK HOCHIMINH CITY BRANCH
Address		26-28 Hai Ba Trung, District 1, Ho Chi Minh City, Vietnam
Telephone		(84-8) 3882 2177
Fax		(84-8) 3822 2141

SHAREHOLDERS

1. NAME		Mr. TRUONG DUC TANH
Position		President - Director
Date of Birth		17 Jul 1960
ID Number/Passport		020606839
Issued on		17 Apr 1997
Issued Place		Police station of Hochiminh city
Resident		No. 374 Hong Bang Str, Ward 16, District 11, Ho Chi Minh City, Vietnam
Email		ahp-tanh@vnn.vn
Nationality		Vietnamese
Value of shares		VND 2,000,000,000
Percentage		25%

2. NAME		Ms. TRUONG THUY NGOC AN
ID Number/Passport		024009103
Resident		374 Hong Bang Street, Ward 6, District 11, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Value of shares		VND 4,000,000,000
Percentage		50%

3. NAME		Ms. NGUYEN THI THU HONG
ID Number/Passport		020998499
Resident		374 Hong Bang Street, Ward 6, District 11, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Value of shares		VND 2,000,000,000
Percentage		25%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010	31/12/2009
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	57,207,000,000	48,057,000,000	32,147,000,000
I. Cash and cash equivalents	634,000,000	860,000,000	138,000,000
1. Cash	634,000,000	860,000,000	138,000,000
2. Cash equivalents	0	0	0
II. Short-term investments	3,872,000,000	3,873,000,000	2,372,000,000
1. Short-term investments	3,872,000,000	3,873,000,000	2,372,000,000
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	16,244,000,000	16,937,000,000	12,812,000,000
1. Receivable from customers	15,993,000,000	16,520,000,000	12,514,000,000
2. Prepayments to suppliers	0	0	0
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	251,000,000	417,000,000	298,000,000
6. Provisions for bad debts	0	0	0
IV. Inventories	19,688,000,000	12,788,000,000	9,441,000,000
1. Inventories	19,688,000,000	12,788,000,000	9,441,000,000
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	16,769,000,000	13,599,000,000	7,384,000,000
1. Short-term prepaid expenses	285,000,000	461,000,000	356,000,000
2. VAT to be deducted	0	330,000,000	21,000,000
3. Taxes and other accounts receivable from the State	286,000,000	118,000,000	77,000,000
4. Other current assets	16,198,000,000	12,690,000,000	6,930,000,000
B. LONG-TERM ASSETS	16,185,000,000	13,155,000,000	9,661,000,000
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	13,587,000,000	11,003,000,000	8,169,000,000
1. Tangible assets	5,959,000,000	7,070,000,000	3,867,000,000
- Historical costs	10,806,000,000	10,633,000,000	6,132,000,000
- Accumulated depreciation	-4,847,000,000	-3,563,000,000	-2,265,000,000
2. Financial leasehold assets	1,874,000,000	130,000,000	1,665,000,000
- Historical costs	1,980,000,000	571,000,000	2,785,000,000
- Accumulated depreciation	-106,000,000	-441,000,000	-1,120,000,000
3. Intangible assets	5,754,000,000	3,803,000,000	2,637,000,000
- Initial costs	7,765,000,000	5,364,000,000	3,928,000,000
- Accumulated amortization	-2,011,000,000	-1,561,000,000	-1,291,000,000
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	2,598,000,000	2,152,000,000	1,492,000,000
1. Long-term prepaid expenses	1,300,000,000	1,999,000,000	1,227,000,000
2. Deferred income tax assets	0	0	0
3. Other long-term assets	1,298,000,000	153,000,000	265,000,000
VI. Goodwill		0
1. Goodwill		0
TOTAL ASSETS	73,392,000,000	61,212,000,000	41,808,000,000

LIABILITIES
A- LIABILITIES	49,361,000,000	32,384,000,000	20,581,000,000
I. Current liabilities	47,033,000,000	30,602,000,000	18,958,000,000
1. Short-term debts and loans	44,820,000,000	25,682,000,000	17,236,000,000
2. Payable to suppliers	1,889,000,000	4,461,000,000	1,467,000,000
3. Advances from customers	0	0	0
4. Taxes and other obligations to the State Budget	251,000,000	459,000,000	199,000,000
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	73,000,000	0	56,000,000
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	2,328,000,000	1,782,000,000	1,623,000,000
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	611,000,000	83,000,000	564,000,000
4. Long-term debts and loans	1,717,000,000	1,699,000,000	1,059,000,000
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
8. Unearned Sale	0	0	0
9. Science and technology development fund	0	0	0
B- OWNER’S EQUITY	24,031,000,000	28,828,000,000	21,227,000,000
I. OWNER’S EQUITY	24,031,000,000	28,828,000,000	21,227,000,000
1. Capital	8,000,000,000	8,000,000,000	8,000,000,000
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	16,031,000,000	20,828,000,000	13,227,000,000
11. Construction investment fund	0	0	0
12. Business arrangement supporting 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	73,392,000,000	61,212,000,000	41,808,000,000

PROFIT & LOSS STATEMENT

Description	FY2011	FY2010	FY2009
1. Total Sales	142,050,000,000	125,749,000,000	112,713,000,000
2. Deduction item	240,000,000	232,000,000	213,000,000
3. Net sale	141,810,000,000	125,517,000,000	112,500,000,000
4. Costs of goods sold	116,751,000,000	102,525,000,000	91,015,000,000
5. Gross profit	25,059,000,000	22,992,000,000	21,485,000,000
6. Financial income	18,000,000	86,000,000	393,000,000
7. Financial expenses	7,619,000,000	3,978,000,000	2,078,000,000
- In which: Loan interest expenses	-	3,978,000,000	2,078,000,000
8. Selling expenses	5,493,000,000	5,029,000,000	4,862,000,000
9. Administrative overheads	6,347,000,000	6,354,000,000	5,873,000,000
10. Net operating profit	5,618,000,000	7,717,000,000	9,065,000,000
11. Other income	0	262,000,000	0
12. Other expenses	0	378,000,000	0
13. Other profit /(loss)	0	-116,000,000	0
14. Total accounting profit before tax	5,618,000,000	7,601,000,000	9,065,000,000
15. Current corporate income tax	1,405,000,000	1,825,000,000	2,266,000,000
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	4,213,000,000	5,776,000,000	6,799,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	1.22	1.57	1.70	1.56
Quick liquidity ratio	0.80	1.15	1.20	0.82
Inventory circle	5.93	9.22	9.64	7.71
Average receive period	41.81	49.25	41.57	57.49
Utilizing asset performance	1.93	2.05	2.69	2.53
Liability by total assets	67.26	52.90	49.23	59.02
Liability by owner's equity	205.41	112.34	96.96	219.47
Ebit / Total assets (ROA)	7.65	18.92	26.65	13.30
Ebit / Owner's equity (ROE)	23.38	40.17	52.49	35.73
Ebit / Total sale (NPM)	3.95	9.21	9.89	7.62
Gross profit / Total sale (GPM)	17.64	18.28	19.06	16.22
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Normal
Liquidity		Low/ Medium
Payment status		Average
Financial Situation		Average
Development trend		Positive
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		Direct payment or through its corresponding bank
Sale Methods		Retailer and Wholesaler

INTERPRETATION ON THE SCORES

The subject was established in the year 2000 under the business registration No. 4102000691 and the registered capital 4,000,000,000 VND. In 2009, the subject increased the capital to 8,000,000,000 VND. It has operated under English name AHP PESTICIDE CO., LTD and business registration No.0301959022

The subject specializes in trading in pesticides and other related materials. The material sources for production are imported from China, Thailand and India. Main operation market of subject is domestic. Its products are distributed in domestic market. The factory is located at No. D10/75Q, Highway 1, Lot 4, Tan Tao Commmune, Binh Chanh Dist, Hochiminh City. Besides, it has branches in Lam Dong, Long An provinces, Can Tho and Ha Noi Cities… In addition, the subject associates with a manufacturing enterprise in Thailand to processing plant protection drugs with quality standard of Thailand. At the moment, the business operation of the subject is stable. The products of subject are more and more familiar with the farmers of Vietnam and consumed nationwide. Its products are awarded “Vietnam high quality products” and “Viet Nam Agriculture Friend”.

According to financial data, business activities were not stable. Average growth rate of sale was 12%. However, profit of subject tends to decrease in recent years. Average growth rate of total asset was 33%. Its proportion of debt to total asset is relatively high, accounting for 67%, including 61% short-term debt and 3% long – term debt. Financial ratios were accepted.

In general, the subject’s financial situation is average.

In our opinion, the subject has capacity to meet small - normal transactions.

APPENDIX

INDUSTRY DATA

Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2010		Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,887		24,362.9	95,227
Industry and Construction	5.53	7.70	95,217		10,718.9	3,641,376
Trade and Services	6.69	7.52	187,195		15,270.2	6,957,082

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.54.97
UK Pound	1	Rs.87.50
Euro	1	Rs.70.16

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.