MIRA INFORM REPORT

Report Date :

08.08.2013

IDENTIFICATION DETAILS

Name :	SAO TA FOODS JOINT STOCK COMPANY
Registered Office :	Km 2132 Highway 1A, Ward 2, Soc Trang City, Soc Trang Province
Country :	Vietnam
Financials (as on) :	30.09.2011
Year of Establishment :	1996
Com. Reg. No.:	2200208753
Legal Form :	Joint Stock Company
Line of Business :	Specializes in processing and preserving agricultural, aquatic food; trading food and raw agricultural products, import of machinery and equipments for processing works.
No. of Employees :	2,500

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Vietnam	B1	B1

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 has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. 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 hurt Vietnam's export-oriented economy, with GDP in 2012 growing at 5%, the slowest rate of growth since 1999. In 2012, however, exports increased by more than 18%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the Government shifted policy away from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. Although Vietnam unveiled a broad, "three pillar" economic reform program in early 2012, proposing the restructuring of public investment, state-owned enterprises, and the banking sector, little perceptible progress had been made by early 2013. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some independent analysts believe it could be higher than 15%.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM
Current legal status
English Name	SAO TA FOODS JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN THUC PHAM SAO TA
Trade name	FIMEX VN
Type of Business	Joint stock company
Year Established	1996
Business Registration No.	2200208753
Date of Registration	19 Oct 2009
Place of Registration	Planning and Investment Department of Soc Trang Province
Current registered capital	VND 80,000,000,000
Status	Listed
Stock symbol	FMC
Stock Market	HOSE
Outstanding stock	8,000,000
Paid-up capital	VND 80,000,000,000
Tax code	2200208753
Total Employees	2,500
Size	Large

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 5903000012 Changed to: 2200208753	19 Oct 2009
2	Subject has got former Type of Business: State Owned Enterprise Changed to: Joint Stock Company

ADDRESSES
Head Office
Address	Km 2132 Highway 1A, Ward 2, Soc Trang City, Soc Trang Province, Vietnam
Telephone	(84-79) 3822201/3822203.
Fax	(84-79) 3822122/3825665
Email	fimexvn@hcm.vnn.vn
Website	http://fimexvn.com
Note: The correct tel is as above.

DIRECTORS
1. NAME	Mr. HO QUOC LUC
Position	Chairman and General Director
Date of Birth	07 May 1956
ID Number/Passport	365260213
ID Issue Date	24 Jul 1997
ID Issue Place	Soc Trang Police Station
Resident	8 Phan Boi Chau - Ward 3, Soc Trang City, Soc Trang Province, Vietnam
Nationality	Vietnamese
Qualification	Doctor of Economics
Years of experience	He has been Chairman and General Director since 2003
2. NAME	Ms. DUONG NGOC KIM
Position	Deputy General Director
Date of Birth	18 Aug 1958
Resident	Soc Trang Province, Vietnam
Nationality	Vietnamese
Qualification	Bachelor of Law and Administrative Management
3. NAME	Mr. PHAM HOANG VIET
Position	Deputy General Director
Date of Birth	25 Nov 1964
Resident	D9, Mau Than , Ninh Kieu District, Can Tho City, Vietnam
Nationality	Vietnamese
Qualification	Bachelor of Administrative Management
Years of experience	He has been working for the subject since 1996
4. NAME	Mr. MA ICH HUNG
Position	Deputy General Director
Date of Birth	11 Feb 1970
ID Number/Passport	361156850
Resident	No.186 Kinh Xang, Ward 8, Soc Trang City, Soc Trang Province, Vietnam
Nationality	Vietnamese
Qualification	Economics Bachelor
5. NAME	Mr. DINH VAN THOI
Position	Deputy General Director
Education	University
Date of Birth	02 Oct 1962
Current resident	171A, Nguyen Thi Minh Khai Street Ward 3, Soc Trang City, Soc Trang Province, Vietnam
Nationality	Vietnamese
Qualification	Bachelor of Engineering
6. NAME	Mr. TO MINH CHANG
Position	Chief Accountant
Education	University
Date of Birth	12 Jun 1970
Current resident	227 Luong Dinh Cua Ward 5, Soc Trang City, Soc Trang Province, Vietnam
Nationality	Vietnamese
Tel/Mobil phone	(84-79) 3822223
Qualification	Bachelor of Accounting

BUSINESS NATURE AND ACTIVITIES

The subject specializes in processing and preserving agricultural, aquatic food; trading food and raw agricultural products, import of machinery and equipments for processing works.

IMPORT & EXPORT ACTIVITIES
IMPORT:
Note: Currently, the subject does not import
EXPORT:
· Types of products	Frozen shrimp, agricultural products
· Market	Mainly Japan and USA
· Ratio	90%

BANKERS
1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM SOC TRANG BRANCH
Address	No 25-27 Hai Ba Trung,No.1 Ward, Soc Trang City, Soc Trang Province, Vietnam
Telephone	(84-79) 3821036
Fax	(84-79) 3824186
2. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT SOC TRANG BRANCH
Address	No 4 Tran Hung Dao, 2Ward , Soc Trang City, Soc Trang Province, Vietnam
Telephone	(84-79) 3820 403

SHAREHOLDERS
The bellowing is shareholder list in business license
1. NAME	Mr. HO QUOC LUC
Position	Chairman and General Director
Date of Birth	07 May 1956
ID Number/Passport	365260213
Issued on	24 Jul 1997
Issued Place	Soc Trang Police Station
Resident	8 Phan Boi Chau - Ward 3, Soc Trang City, Soc Trang Province, Vietnam
Nationality	Vietnamese
Number of Shares	28,500
Value of shares	VND 285,000,000
Percentage	0.36%
2. NAME	Ms. DUONG NGOC KIM
Position	Deputy General Director
Date of Birth	18 Aug 1958
Resident	Soc Trang Province, Vietnam
Nationality	Vietnamese
Number of Shares	28,500
Value of shares	VND 285,000,000
Percentage	0.36%
3. NAME	Mr. HUYNH THANH SU
Nationality	Vietnamese
Number of Shares	11,500
Value of shares	VND 115,000,000
Percentage	0.14%
4. NAME	Mr. HUYNH QUOC MINH
Nationality	Vietnamese
Number of Shares	12,660
Value of shares	VND 126,600,000
Percentage	0.16%
5. NAME	Mr. PHAM HOANG VIET
Position	Deputy General Director
Date of Birth	25 Nov 1964
Resident	D9, Mau Than , Ninh Kieu District, Can Tho City, Vietnam
Nationality	Vietnamese
Number of Shares	27,500
Value of shares	VND 275,000,000
Percentage	0.34%
6. NAME	Ms. TRAN NGOC HIEP
Resident	Long An Province, Vietnam
Nationality	Vietnamese
Number of Shares	15,000
Value of shares	VND 150,000,000
Percentage	0.19%
7. NAME	Ms. PHAM THANH NHAN
Nationality	Vietnamese
Number of Shares	14,500
Value of shares	VND 145,000,000
Percentage	0.18%
8. NAME	Mr. MA ICH HUNG
Position	Deputy General Director
Date of Birth	11 Feb 1970
ID Number/Passport	361156850
Resident	No.186 Kinh Xang, Ward 8, Soc Trang City, Soc Trang Province, Vietnam
Nationality	Vietnamese
Number of Shares	9,700
Value of shares	VND 97,000
Percentage	0.12%
9. NAME	Mr. DINH VAN THOI
Position	Deputy General Director
Date of Birth	02 Oct 1962
Current Resident	171A, Nguyen Thi Minh Khai Street Ward 3, Soc Trang City, Soc Trang Province, Vietnam
Nationality	Vietnamese
Number of Shares	9,500
Value of shares	VND 95,000,000
Percentage	0.12%
10. NAME	Communist Party’s Office of SocTrang province
Number of shares	1,380,000
Value of shares	VND 13,800,000,000
Percentage	17.25%
11. NAME	Other Shareholders
Percentage	80.78%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	30/09/2011	31/12/2010	31/12/2009
Number of weeks	39	52	52
ASSETS
A – CURRENT ASSETS	482,683,466,506	379,761,514,665	505,691,248,415
I. Cash and cash equivalents	6,390,260,170	40,590,243,550	282,929,316,898
1. Cash	6,390,260,170	40,590,243,550	282,929,316,898
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	190,152,635,538	90,080,338,572	57,652,179,817
1. Receivable from customers	180,328,143,223	72,815,542,274	50,376,985,181
2. Prepayments to suppliers	19,972,286,115	25,798,881,006	7,078,812,510
3. Inter-company receivable		0
4. Receivable according to the progress of construction		0
5. Other receivable	3,005,614,141	4,619,323,233	3,074,311,923
6. Provisions for bad debts	-13,153,407,941	-13,153,407,941	-2,877,929,797
IV. Inventories	275,439,139,593	243,228,288,014	161,158,494,649
1. Inventories	275,439,139,593	243,228,288,014	161,158,494,649
2. Provisions for devaluation of inventories		0
V. Other Current Assets	10,701,431,205	5,862,644,529	3,951,257,051
1. Short-term prepaid expenses	116,941,588	201,702,288	66,002,540
2. VAT to be deducted	9,856,851,779	5,029,599,280	3,512,087,655
3. Taxes and other accounts receivable from the State		0
4. Other current assets	727,637,838	631,342,961	373,166,856
B. LONG-TERM ASSETS	133,942,467,432	122,211,730,812	117,586,842,977
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	109,087,301,164	93,976,925,632	85,465,091,518
1. Tangible assets	73,341,997,836	70,133,471,941	66,488,743,985
- Historical costs	246,813,855,482	233,138,819,815	224,492,315,844
- Accumulated depreciation	-173,471,857,646	-163,005,347,874	-158,003,571,859
2. Financial leasehold assets		0
- Historical costs		0
- Accumulated depreciation		0
3. Intangible assets	2,790,920,370	2,861,527,953	2,888,477,533
- Initial costs	3,228,583,100	3,228,583,100	3,172,583,100
- Accumulated amortization	-437,662,730	-367,055,147	-284,105,567
4. Construction-in-progress	32,954,382,958	20,981,925,738	16,087,870,000
III. Investment property		0
Historical costs		0
Accumulated depreciation		0
IV. Long-term investments	14,880,000,000	14,880,000,000	15,240,000,000
1. Investments in affiliates		0
2. Investments in business concerns and joint ventures		0
3. Other long-term investments	24,800,000,000	24,800,000,000	25,160,000,000
4. Provisions for devaluation of long-term investments	-9,920,000,000	-9,920,000,000	-9,920,000,000
V. Other long-term assets	9,975,166,268	13,354,805,180	16,881,751,459
1. Long-term prepaid expenses	9,975,166,268	13,354,805,180	16,881,751,459
2. Deferred income tax assets		0
3. Other long-term assets		0
VI. Goodwill		0
1. Goodwill		0
TOTAL ASSETS	616,625,933,938	501,973,245,477	623,278,091,392
LIABILITIES
A- LIABILITIES	463,238,102,762	335,665,324,456	469,766,296,001
I. Current liabilities	462,698,102,762	335,135,324,456	469,206,296,001
1. Short-term debts and loans	420,901,559,302	305,850,448,000	452,874,000,000
2. Payable to suppliers	20,002,526,771	10,782,360,412	5,696,051,136
3. Advances from customers	836,949,400	455,770,200	172,055,323
4. Taxes and other obligations to the State Budget	117,467,730	959,918,015	822,546,234
5. Payable to employees	17,806,747,270	11,887,368,190	6,803,781,633
6. Accrued expenses		2,850,178,937	1,244,072,490
7. Inter-company payable		0
8. Payable according to the progress of construction contracts		0
9. Other payable	3,032,852,289	2,349,280,702	1,593,789,185
10. Provisions for short-term accounts payable		0
II. Long-Term Liabilities	540,000,000	530,000,000	560,000,000
1. Long-term accounts payable to suppliers		0
2. Long-term inter-company payable		0
3. Other long-term payable	540,000,000	530,000,000	560,000,000
4. Long-term debts and loans		0
5. Deferred income tax payable		0
6. Provisions for unemployment allowances		0
7. Provisions for long-term accounts payable		0
B- OWNER’S EQUITY	153,387,831,176	166,307,921,021	153,511,795,391
I. OWNER’S EQUITY	153,387,831,176	166,185,165,781	151,473,528,319
1. Capital	80,000,000,000	80,000,000,000	80,000,000,000
2. Share premiums	34,273,007,111	34,265,680,227	34,200,000,000
3. Other sources of capital		0
4. Treasury stocks	-10,535,247,254	-10,603,009,370	-10,835,225,761
5. Differences on asset revaluation		0
6. Foreign exchange differences		0
7. Business promotion fund	29,678,453,307	26,999,023,239	25,601,174,123
8. Financial reserved fund	8,000,000,000	7,764,725,010	7,066,600,452
9. Other funds		0
10. Retained earnings	11,971,618,012	27,758,746,675	15,440,979,505
11. Construction investment fund		0
II. Other sources and funds		122,755,240	2,038,267,072
1. Bonus and welfare funds		122,755,240	2,038,267,072
2. Sources of expenditure		0
3. Fund to form fixed assets		0
MINORITY’S INTEREST		0
TOTAL LIABILITIES AND OWNER’S EQUITY	616,625,933,938	501,973,245,477	623,278,091,392

PROFIT & LOSS STATEMENT
Description	3 quarters/2011	FY2010	FY2009
1. Total Sales	1,307,248,000,902	1,477,274,999,305	940,084,023,992
2. Deduction item		7,253,988,126
3. Net revenue	1,307,248,000,902	1,470,021,011,179	940,084,023,992
4. Costs of goods sold	1,247,117,083,807	1,369,099,274,945	889,380,063,059
5. Gross profit	60,130,917,095	100,921,736,234	50,703,960,933
6. Financial income	31,267,689,071	19,131,595,455	38,372,344,832
7. Financial expenses	28,540,976,896	27,233,434,567	27,340,317,887
- In which: Loan interest expenses	25,058,128,408	20,711,146,874	19,445,164,724
8. Selling expenses	41,017,343,017	43,692,691,837	32,804,372,022
9. Administrative overheads	12,578,694,758	24,777,882,674	13,441,281,448
10. Net operating profit	9,261,591,495	24,349,322,611	15,490,334,408
11. Other income	46,645,369	2,159,478,163	87,108,754
12. Other expenses	2,500,000	926,783,173
13. Other profit /(loss)	44,145,369	1,232,694,990	87,108,754
14. Total accounting profit before tax	9,305,736,864	25,582,017,601	15,577,443,162
15. Current corporate income tax	86,515,852	-1,212,283,074	140,909,657
16. Deferred corporate income tax		0
17. Interest from subsidiaries/related companies		0
18. Profit after tax	9,219,221,012	26,794,300,675	15,436,533,505

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	3quarters/2011	FY2010	FY2009	Average Industry
Current liquidity ratio	1.04	1.13	1.08	1.45
Quick liquidity ratio	0.45	0.41	0.73	0.93
Inventory circle	4.53	5.63	6.51	7.42
Average receive period	_	22.37	22.38	68.87
Utilizing asset performance	2.12	2.93	1.51	1.66
Liability by total assets	75.12	66.87	75.37	63.62
Liability by owner's equity	302.00	201.83	306.01	289.65
Ebit / Total assets (ROA)	5.57	9.22	5.62	8.16
Ebit / Owner's equity (ROE)	22.40	27.84	22.81	27.66
Ebit / Total revenue (NPM)	2.63	3.13	3.73	5.74
Gross profit / Total revenue (GPM)	4.60	6.83	5.39	11.21
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Good
Liquidity	Medium
Payment status	Average
Financial Situation	Above Average
Development trend	Positive
Litigation data	No
Bankruptcy	No
Payment Methods	L/C,TT
Sale Methods	Retailer and Wholesaler
Public opinion	Well-known

CREDIT INQUIRY: 125,000 USD against DA in terms

Acceptable

INTERPRETATION ON THE SCORES

SAO TA FOODS JOINT STOCK COMPANY’s precursor was a state owned enterprise, whose capital was wholly contributed Communist Party’s Office of SocTrang province. It was officially operated on 3rd February 1996. On 1st January 2003, the firm was equitized and changed its name into SAO TA FOODS JOINT STOCK COMPANY and trade name as FIMEX VN. The subject is operating under business registration number 2200208753 with registered capital of 80 billion VND. On 7th December 2006, stock of FIMEX was officially traded on Ho Chi Minh Stock Exchange with stock symbol “FMC”.

Manufacturing factory of the firm is located at Km 2132, 1A Highway, ward 2, Soc Trang province, which is near main traffic roads, residential areas and shrimp material area. Thus, FIMEX VN has advantages in transporting inputs and outputs. The subject specializes in processing, preserving agricultural, aquaculture products for export, mainly shrimp, prawn. Exporting shrimp has been targeted operation and major revenue source since establishment. Japan and USA are main export market of the subject. These two markets take 90% market share of FIMEX VN. The company has enough materials for production inside the country, specifically, shrimp materials in Soc Trang province and neighboring regions. Therefore, the company does not depend on foreign sources of inputs.

The subject’s stock has been listed on stock exchange, therefore, its financial statement are audited ones. In comparison with 2009, the subject has better business result in 2010. Total sale grew 56.37% and profit after tax increased 73.57%. The improvement in profit after tax is due to the increases in other income and reduction of current corporate income tax. Total sales of the first 3 quarters of 2011 is equivalent to 88% that of 2010, yet profit before tax just equaled 36% that of the previous year. That made all profitability ratios declined relatively to those of 2010. However, this is not business result of the whole year. According to the subject, it will surpass its targeted sales by 10%. At the time of 23^rd Nov 2011, the company has reached targeted sale of 80 million USD for the year 2011.

In conclusion, the firm is big company in the industry. With 15 years of experience on exporting, available traditional partnerships, and stable profit generated, it can have capacity to meet small and medium 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)
	2010	2009
Agriculture, Forestry and Fishing	2.78	1.82	8,749		23,896.3	81,559
Industry and Construction	7.70	5.52	85,115		10,630	2,751,975
Trade and Services	7.52	6.63	154,978		14,522	4,939,069
ECONOMIC INDICATORS
			2010	2009		2008
Population (Million person)			86.93	86.02		86.1
Gross Domestic Products (US$ billion)			102.2	91		84.9
GDP Growth (%)			6.78	5.32		6.2
GDP Per Capita (US$)			1,160	1,080		1,040
Inflation (% Change in Composite CPI)			11.75	6.88		24.4
SERVICE TRADE PERFORMANCE
Billion USD			2010	2009		2008
Exports			72.2	57.1		62.7
Imports			84.8	69.9		80.7
Trade Balance			-12.6	-12.8		-18

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.39
UK Pound	1	Rs.94.17
Euro	1	Rs.81.70

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.