MIRA INFORM REPORT

Report Date :

18.09.2012

IDENTIFICATION DETAILS

Name :	AN XUYEN JOINT STOCK COMPANY
Registered Office :	No 9, Hung Vuong Street, My Quy Industrial Zone, Long Xuyen City, An Giang Province
Country :	Viet Nam
Financials (as on) :	31.12.2009
Date of Incorporation :	2003
Com. Reg. No.:	1600673418
Legal Form :	Joint stock company
Line of Business :	Trading and exporting seafood
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 :	Unknown
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

VIET NAM - 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
English Name	AN XUYEN JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN AN XUYEN
Type of Business	Joint stock company
Year Established	2003
Business Registration No.	1600673418
Date of Registration	20 Jul 2009
Place of Registration	An Giang Department of Planning and Investment
Chartered capital	VND 19,900,000,000
Status	Unlisted
Tax code	1600673418
Total Employees	About 200
Size	Small

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Registered English Name: An Xuyen Limited Liability Company Changed to: An Xuyen Joint Stock Company	20 Jul 2009
2	Subject has got former Type of Business: Limited Liability Company Changed to: Joint Stock Company	20 Jul 2009
3	Subject has got former Registered Vietnamese Name: Cong Ty TNHH An Xuyen Changed to: Cong Ty Co Phan An Xuyen	20 Jul 2009

ADDRESSES
Head Office and Factory
Address	No 9, Hung Vuong Street, My Quy Industrial Zone, Long Xuyen City, An Giang Province, Vietnam
Telephone	(84 - 76) 3932520/1
Fax	(84 - 76) 3932522
Email	anxuyen@vnn.vn
Website	www.anxuyen.com.vn
Fish raising area address
Address	Dong Phu, Lane Dong Phu, Long Ho District, Vinh Long Province, Vietnam
Occupied Area	200 ha

DIRECTORS
1. NAME	Mr. NGUYEN AN NINH
Position	Chairman
Date of Birth	07 Nov 1958
ID Number/Passport	024986574
ID Issue Date	30 Sep 2008
ID Issue Place	Ho Chi Minh City Public Security
Resident	No 111 Cao Thang, 17 Ward, Phu Nhuan District, Ho Chi Minh City, Vietnam
Tel/Mobile phone	+84 913893268
2. NAME	Mr. NGUYEN TRUNG CAN
Position	General Director
ID Number/Passport	350705389
ID Issue Date	30 Sep 2008
Resident	No 211A Nguyen Truong To, Binh Khanh, Long Xuyen City, An Giang Province, Vietnam
Tel/Mobile phone	+84 913971008
3. NAME	Mr. HUYNH CHI PHONG
Position	Deputy General Director
Tel/Mobile phone	+84 918738213

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in processing, trading and exporting seafood. Besides, it also trades machinery and equipment for seafood processing.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Market	Japan, Germany, India, Brazil,...
EXPORT:
· Market	Australia, Germany, Switzerland, Hong Kong, Spain, Singapore,...

BANKERS
1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM AN GIANG BRANCH
Address	No.1 Hung Vuong, Long Xuyen City, An Giang Province, Vietnam
Telephone	(84-76) 3843589 / 3843590
Fax	(84-76) 3841591
2. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM AN GIANG BRANCH
Address	No.49-51-53 Nguyen Hue B Street, Long Xuyen City, An Giang Province, Vietnam
Telephone	(84-76) 3840018
3. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE AN GIANG BRANCH
Address	No. 270 Ly Thai To Str, Long Xuyen City, An Giang Province, Vietnam
Telephone	(84-76) 384 4210
Fax	(84-76) 384 3238

SHAREHOLDERS
1. NAME	Mr. NGUYEN AN NINH
Position	Chairman
Date of Birth	07 Nov 1958
ID Number/Passport	024986574
Issued on	30 Sep 2008
Issued Place	Ho Chi Minh City Public Security
Resident	No 111 Cao Thang, 17 Ward, Phu Nhuan District, Ho Chi Minh City, Vietnam
Mobile phone	+84 913893268
Number of Shares	840,000
Percentage	42.21%
2. NAME	Mr. NGUYEN TRUNG CAN
Position	General Director
ID Number/Passport	350705389
Issued on	30 Sep 2008
Resident	No 211A Nguyen Truong To, Binh Khanh, Long Xuyen City, An Giang Province, Vietnam
Mobile phone	+84 913971008
Number of Shares	773,020
Percentage	38.85%
3. NAME	Mr. PHAN THANH LONG
ID Number/Passport	350820713
Issued on	01 Feb 2002
Resident	Tan Khanh 6 My Hoa, Long Xuyen City, An Giang Province, Vietnam
Number of Shares	12,590
Percentage	6.33%
4. NAME	Mr. LAM DU HUNG
Date of Birth	26 Nov 2003
ID Number/Passport	351804413
Issued on	26 Nov 2003
Issued Place	An Giang Police Dept
Resident	No. 55 Road No. 1, Hiep An Residential, Ward 5, 8 District, Ho Chi Minh City, Vietnam
Current Resident	4/4 Le Qui Don, My Binh Ward, Long Xuyen City, An Giang Province, Vietnam
Email	lamduhung@vnn.vn
Mobile phone	+84 918156455
Nationality	Vietnamese
Number of Shares	50,360
Percentage	2.53%
5. NAME	Mr. NGUYEN PHU CUONG
ID Number/Passport	350845233
Issued on	02 Jan 1985
Resident	Long Phu, Long Bien B, Cho Moi District, An Giang Province, Vietnam
Mobile phone	+84 913679539
Number of Shares	50,360
Percentage	2.53%
6. NAME	Mr. HUYNH THANH TON
ID Number/Passport	350442435
Issued on	01 Nov 2002
Resident	278/14 Tran Hung Dao, Binh Khanh, An Giang Province, Vietnam
Mobile phone	++84 913679539
Number of Shares	50,360
Percentage	2.53%
7. NAME	Mr. THIEU THI BICH VAN
ID Number/Passport	350039165
Issued on	01 Apr 2002
Resident	393/1 bis Hung Vuong, My Long, Long Xuyen City, An Giang Province, Vietnam
Mobile phone	+84 913707274
Number of Shares	50,000
Percentage	2.51%
8. NAME	Mr. NGUYEN THANH GIANG
ID Number/Passport	350700938
Issued on	31 Aug 2005
Resident	Hoa Phu, Dinh Thanh, Thoai Son District, An Giang Province, Vietnam
Mobile phone	+84 914122980
Number of Shares	50,000
Percentage	2.51%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2009	31/12/2008	31/12/2007
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	121,746,969,434	78,476,263,968	41,341,740,547
I. Cash and cash equivalents	7,135,728,593	10,673,320,335	1,236,303,568
1. Cash	7,135,728,593	10,673,320,335	1,236,303,568
2. Cash equivalents
II. Short-term investments	0	0	0
1. Short-term investments
2. Provisions for devaluation of short-term investments
III. Accounts receivable	39,492,339,274	33,035,612,286	13,998,768,600
1. Receivable from customers	39,060,916,364	33,035,612,286	12,071,768,600
2. Prepayments to suppliers	933,366,358
3. Inter-company receivable
4. Receivable according to the progress of construction
5. Other receivable	49,317,610		1,927,000,000
6. Provisions for bad debts	-551,261,058
IV. Inventories	69,545,070,236	28,479,700,660	23,438,180,804
1. Inventories	69,545,070,236	28,479,700,660	23,438,180,804
2. Provisions for devaluation of inventories
V. Other Current Assets	5,573,831,331	6,287,630,687	2,668,487,575
1. Short-term prepaid expenses	0	0	746,667,781
2. VAT to be deducted	1,105,476,356	419,058,341	221,324,405
3. Taxes and other accounts receivable from the State	103,792,437
4. Other current assets	4,364,562,538	5,868,572,346	1,700,495,389
B. LONG-TERM ASSETS	47,241,423,389	41,995,392,417	21,006,505,674
I. Long term accounts receivable	0	0	0
1. Long term account receivable from customers
2. Working capital in affiliates
3. Long-term inter-company receivable
4. Other long-term receivable
5. Provisions for bad debts from customers
II. Fixed assets	47,239,205,592	41,995,392,417	21,006,505,674
1. Tangible assets	38,958,549,998	13,165,788,452	8,320,159,379
- Historical costs	45,756,064,290	16,589,402,737	9,560,551,314
- Accumulated depreciation	-6,797,514,292	-3,423,614,285	-1,240,391,935
2. Financial leasehold assets	0	0	0
- Historical costs
- Accumulated depreciation
3. Intangible assets	6,338,735,283	4,874,205,712	0
- Initial costs	6,947,500,000	5,052,205,712	10,000,000
- Accumulated amortization	-608,764,717	-178,000,000	-10,000,000
4. Construction-in-progress	1,941,920,311	23,955,398,253	12,686,346,295
III. Investment property	0	0	0
Historical costs
Accumulated depreciation
IV. Long-term investments	0	0	0
1. Investments in affiliates
2. Investments in business concerns and joint ventures
3. Other long-term investments
4. Provisions for devaluation of long-term investments
V. Other long-term assets	2,217,797	0	0
1. Long-term prepaid expenses
2. Deferred income tax assets	2,217,797
3. Other long-term assets
TOTAL ASSETS	168,988,392,823	120,471,656,385	62,348,246,221
LIABILITIES
A- LIABILITIES	145,704,671,147	96,553,813,715	50,400,739,839
I. Current liabilities	113,449,715,385	74,253,813,715	26,906,897,979
1. Short-term debts and loans	84,302,411,200	60,455,600,000	14,373,107,199
2. Payable to suppliers	28,141,402,212	11,906,017,192	10,030,415,878
3. Advances from customers	477,013,353
4. Taxes and other obligations to the State Budget		-60,100,750	-63,719,312
5. Payable to employees		1,403,303,000	1,399,315,120
6. Accrued expenses		249,300,000	936,795,000
7. Inter-company payable
8. Payable according to the progress of construction contracts
9. Other payable	528,888,620	299,694,273	230,984,094
10. Provisions for short-term accounts payable
II. Long-Term Liabilities	32,254,955,762	22,300,000,000	23,493,841,860
1. Long-term accounts payable to suppliers
2. Long-term inter-company payable
3. Other long-term payable	15,200,000,000	1,300,000,000	1,500,000,000
4. Long-term debts and loans	17,000,000,000	21,000,000,000	21,993,841,860
5. Deferred income tax payable	54,955,762
6. Provisions for unemployment allowances
7. Provisions for long-term accounts payable
B- OWNER’S EQUITY	23,283,721,676	23,917,842,670	11,947,506,382
I. OWNER’S EQUITY	23,352,776,376	23,987,197,370	12,016,561,082
1. Capital	19,900,000,000	16,250,000,000	8,104,705,712
2. Share premiums
3. Other sources of capital
4. Treasury stocks
5. Differences on asset revaluation
6. Foreign exchange differences
7. Business promotion fund
8. Financial reserved fund
9. Other funds
10. Retained earnings	3,452,776,376	7,737,197,370	3,911,855,370
11. Construction investment fund
II. Other sources and funds	-69,054,700	-69,354,700	-69,054,700
1. Bonus and welfare funds (Elder form)	-69,054,700	-69,354,700	-69,054,700
2. Sources of expenditure
3. Fund to form fixed assets
MINORITY’S INTEREST
TOTAL LIABILITIES AND OWNER’S EQUITY	168,988,392,823	120,471,656,385	62,348,246,221

PROFIT & LOSS STATEMENT
Description	FY2009	FY2008
1. Total Sales	214,923,726,456	169,921,547,884
2. Deduction item	9,338,892,980	1,928,637
3. Net revenue	205,584,833,476	169,919,619,247
4. Costs of goods sold	177,173,649,766	156,966,826,000
5. Gross profit	28,411,183,710	12,952,793,247
6. Financial income	1,346,825,454	334,312,310
7. Financial expenses	8,259,278,422	6,488,258,575
- In which: Loan interest expenses	8,259,278,422	10,917,188,513
8. Selling expenses	12,623,520,356	9,406,944,866
9. Administrative overheads	5,372,025,071	4,885,892,997
10. Net operating profit	3,503,185,315	-7,493,990,881
11. Other income	95,302,000	3,213,026,264
12. Other expenses	145,710,939	76,117,611
13. Other profit /(loss)	-50,408,939	3,136,908,653
14. Total accounting profit before tax	3,452,776,376	-4,357,082,228
15. Current corporate income tax	0	0
16. Deferred corporate income tax	0	0
18. Profit after tax	3,452,776,376	-4,357,082,228

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2009	FY2008	FY2007	Average Industry
Current liquidity ratio	1.07	1.06	1.54	1.57
Quick liquidity ratio	0.46	0.67	0.67	0.86
Inventory circle	3.61	6.05	-	7.14
Average receive period	70.12	70.96	-	66.41
Utilizing asset performance	1.22	1.41	-	1.75
Liability by total assets	86.22	80.15	80.84	61.36
Liability by owner's equity	625.78	403.69	421.85	314.49
Ebit / Total assets (ROA)	6.93	5.45	-	5.49
Ebit / Owner's equity (ROE)	50.30	27.43	-	11.04
Ebit / Total revenue (NPM)	5.45	3.86	-	1.64
Gross profit / Total revenue (GPM)	13.22	7.62	-	12.04
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Fair
Liquidity	N/A
Payment status	N/A
Financial Situation	Below Average
Development trend	Negative
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C, TT, DP
Sale Methods	Retailer and Wholesaler

INTERPRETATION ON THE SCORES

Established in 2003 as a limited liability company but up to 2009, the subject transferred into joint stock company. Currently, it runs under the business registration No. 1600673418 with chartered capital of VND 19.9 billion.

The subject registers business in many fields but now it only focuses on processing, trading and exporting seafood. Besides, it also trades machinery and equipment for seafood processing.

The subject's head office and factory are located at No. 09 Hung Vuong Street - My Quy Industrial Zone - Long Xuyen City - An Giang Province. It also has on fish raising area in Vinh Long Province. Formerly, the subject has one representative office in Hochiminh City and its total employees are 670 persons, but at the moment, its labor force remains 200 persons, its representative office stopped operating.

The subject is applying the quality management system under standards of ISO 9001:2000, ISO: 14001:2004, HALAL, IFS, etc. Its product is types of frozen fish and processed product. The subject supplies products for BigC system in Vietnam. Besides, it also exports to many countries such as Australia, Germany, Switzerland, Hong Kong, Spain, Singapore,...

Financially, according to its above financial data, in 2008, under affect of economic crisis, the subject got loss. In 2009, it gained 214,923,726,456 VND in total revenue, increased 26.5 % compared with 2008 and it gained 3,452,776,376 VND in profit after tax. ROA, ROE and profit ratios were fairly good. However, its liquidity ratios were normal and its debt rate was high. The foregoing shows that, at that time, the subject's business activities were effective but its liquidity was somewhat limited and its capital structure was not safe.

We have tried best to collect the latest financial data of the subject but unreachable, so we do not have comment about it. However, according to Mr. Thanh_business department of the subject, in 2011, the subject's turnover reached about USD 2 million. Ms. Vu Thi Tuoi_the subject's deputy manager of accountant department also said that, in two recent years, the subject's business result was worse than those in previous years due to influence of common difficulties in seafood industry. Besides, the price competition of other units in same field also brings about many difficulties for the subject.

In recent years, Vietnamese seafood industry has to face with many difficulties. Many seafood businesses have to temporary close or perfunctorily production and do not have money to pay for employees for lack of raw materials and do not capital to business.

In general, the subject is operating normally but its business situation has downtrend compared with previous years. Caution is very needed for normal and big with the subject.

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.53.97
UK Pound	1	Rs.87.52
Euro	1	Rs.70.84

INFORMATION DETAILS

Report Prepared by :

PDT

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.