MIRA INFORM REPORT

Report Date :

14.08.2013

IDENTIFICATION DETAILS

Name :	FOOD & CHEMICALS COMPANY LIMITED
Registered Office :	No. 106/10, Phan Van Tri Street, Ward 12, Binh Thanh District, Ho Chi Minh City
Country :	Vietnam
Financials (as on) :	31.12.2010
Date of Incorporation :	2002
Com. Reg. No.:	0302764114
Legal Form :	Limited liability company
Line of Business :	Subject engaged in - Trading industry raw material and chemical. - Trading Cosmetic, seafood, Food and feed - Real estate
No. of Employees :	41

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, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Viet Nam	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	FOOD & CHEMICALS COMPANY LIMITED
Vietnamese Name	CONG TY TNHH HOA CHAT & THUC PHAM
Trade name	FOOD & CHEMICALS COMPANY LIMITED
Short name	FC CO., LTD
Type of Business	Limited liability company
Year Established	2002
Business Registration No.	0302764114
Date of Registration	23 Jan 2013 (09^th adjustment)
Place of Registration	Business Registration Office - Planning and Investment of Ho Chi Minh City
Chartered capital	VND 8,000,000,000
Tax code	0302764114
Total Employees	41
Size	Small

Historical Identification & Legal form

List	Changed Items												Date of changes
1	Subject has got former Address: 8/2, Nguyen Huy Tuong, Ward 6, Binh Thanh District, Ho Chi Minh City, Vietnam Changed to: 106/10 Phan Van Tri street, ward 12, Binh Thanh district, Ho Chi Minh City, Vietnam												23 Jan 2013
2	Subject has got former Business Registration No: 4102012327 Changed to: 0302764114												28 Jun 2010
3	Subject has got former chartered capital: VND 2,000,000,000 Changed to: VND 8,000,000,000												28 Jun 2010
ADDRESSES
Head Office
Address					No. 106/10, Phan Van Tri Street, Ward 12, Binh Thanh District, Ho Chi Minh City, Vietnam
Telephone					(84-8) 3516 7544/43
Fax					(84-8) 3515 4520
Email					hht@foodchemco.com.vn
Warehouse
Address					No.216R, Quang Trung Street - Ward 10, Go Vap District, Ho Chi Minh City, Vietnam
DIRECTORS
1. NAME				Mr. NGUYEN VU QUANG
Position				Chief Executive Officer (CEO)
Date of Birth				25 Oct 1968
ID Number/Passport				021781860
ID Issue Date				20 May 2004
ID Issue Place				Police station of Ho Chi Minh City
Resident				No.25, Road.30, Binh Trung Tay, District 2, Ho Chi Minh City, Vietnam
Nationality				Vietnamese
2. NAME				Ms. HUYNH HANH TRANG
Position				Deputy Director
ID Number/Passport				022253981
Resident				No.67/236C, Bui Dinh Tuy, Ward 12, Binh Thanh District, Ho Chi Minh City, Vietnam
Nationality				Vietnamese
3. NAME				Ms. NGUYEN HA MY HANH
Position				Sales Manager
ID Number/Passport				022613997
Resident				No.198, Cao Lang street, Phu Thanh ward, Tan Phu District, Ho Chi Minh City, Vietnam
Nationality				Vietnamese
Tel/Mobile phone				+84 908 282 062
4. NAME				Ms. NGUYEN HA MY KHANH
Position				Chief Accountant
Resident				Ho Chi Minh City, Vietnam
Nationality				Vietnamese
Email				mykhanh@foodchemco.com.vn
BUSINESS NATURE AND ACTIVITIES
The subject registers operating in: - Trading industry raw material and chemical. - Trading Cosmetic, seafood, Food and feed - Real estate
IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products					Raw materials and goods
· Market					France, Germany, Singapore, Indonesia, Malaysia, India, Canada and Thailand.
EXPORT:
· Types of products					N/A
Following is tax payable (related to imports/ exports) of the company (updated on 28^th May 2013):
Customs code		Registration Date	Import tax payable (unit: VND)				Export tax payable (unit: VND)				VAT on imports/ exports (unit: VND)						Fee (unit: VND)
C02X		11/03/2013	0				0				0						20,000
C02X		15/03/2013	0				0				0						20,000
A02B04		23/04/2013	0				0				0						20,000
C02I02		06/03/2013	0				0				0						20,000
C02I02		06/03/2013	0				0				0						20,000
C02I02		11/03/2013	0				0				0						20,000
C02I02		11/03/2013	0				0				0						20,000
C02I02		12/03/2013	0				0				0						20,000
C02I02		12/03/2013	0				0				0						20,000
C02I02		12/03/2013	0				0				0						20,000
C02I02		15/03/2013	0				0				0						20,000
C02I02		15/03/2013	0				0				0						20,000
C02I02		18/03/2013	0				0				0						20,000
C02I02		19/03/2013	0				0				0						20,000
C02I02		19/03/2013	104,171,242				0				218,759,608						0
C02I02		20/03/2013	0				0				0						20,000
C02I02		20/03/2013	0				0				0						20,000
C02I02		22/03/2013	0				0				0						20,000
C02I02		25/03/2013	0				0				0						20,000
C02I02		26/03/2013	0				0				0						20,000
C02I02		28/03/2013	0				0				0						20,000
C02I02		28/03/2013	0				0				0						20,000
C02I02		29/03/2013	0				0				0						20,000
C02I02		29/03/2013	0				0				0						20,000
C02I02		29/03/2013	0				0				0						20,000
C02I02		29/03/2013	0				0				0						20,000
C02X		12/04/2013	0				0				0						20,000
C02X		15/04/2013	0				0				0						20,000
A02B		15/05/2013	0				0				0						20,000
A02B		15/05/2013	6,981,702				0				14,661,574						0
A02B04		15/05/2013	0				0				0						20,000
A02B04		15/05/2013	11,698,722				0				24,567,316						0
A02B04		21/05/2013	0				0				0						20,000
A02B04		21/05/2013	1,778,961				0				3,735,818						0
A02B04		23/05/2013	0				0				0						20,000
A02B04		23/05/2013	2,980,487				0				2,285,040						0
C02I02		03/04/2013	0				0				0						20,000
C02I02		04/04/2013	0				0				0						20,000
C02I02		08/04/2013	0				0				0						20,000
C02I02		10/04/2013	0				0				0						20,000
C02I02		10/04/2013	3,363,722				0				7,063,816						0
C02I02		15/04/2013	0				0				0						20,000
C02I02		15/04/2013	14,079,728				0				29,567,429						0
C02I02		16/04/2013	0				0				0						20,000
C02I02		16/04/2013	0				0				42,489,120						0
C02I02		16/04/2013	0				0				0						20,000
C02I02		16/04/2013	104,171,242				0				218,759,608						0
C02I02		18/04/2013	0				0				0						20,000
C02I02		18/04/2013	24,296,164				0				51,750,924						0
C02I02		18/04/2013	0				0				0						20,000
C02I02		18/04/2013	15,708,478				0				64,117,332						0
C02I02		24/04/2013	0				0				0						20,000
C02I02		24/04/2013	28,159,456				0				59,134,858						0
C02I02		24/04/2013	0				0				0						20,000
C02I02		24/04/2013	0				0				0						20,000
C02I02		25/04/2013	0				0				0						20,000
C02I02		25/04/2013	5,248,656				0				52,386,586						0
C02X		02/05/2013	0				0				0						20,000
C02X		08/05/2013	0				0				0						20,000
C02X		10/05/2013	0				0				0						20,000
C02X		20/05/2013	0				0				0						20,000
C02X		20/05/2013	0				0				38,587,203						0
C02X		23/05/2013	0				0				0						20,000
C02X		23/05/2013	0				0				59,984,640						0
D02S		08/05/2013	0				0				0						20,000
D02S		08/05/2013	433,222				0				909,767						0
I02K		15/05/2013	0				0				58,664,974						0
BANKERS
ASIA COMMERCIAL BANK
Address					No.442, Nguyen Thi Minh Khai Street, District 3, Ho Chi Minh City, Vietnam
Telephone					(84-8) 3929 0999
Fax					(84-8) 3839 9885
SHAREHOLDERS
1. NAME					Ms. HUYNH HANH TRANG
Position					Deputy Director
ID Number/Passport					022253981
Resident					67/236C Bui Dinh Tuy, Ward 12, Binh Thanh District, Ho Chi Minh City, Vietnam
Nationality					Vietnamese
Value of shares					VND 3,600,000,000
Percentage					45%
2. NAME					Ms. NGUYEN HA MY HANH
Position					Sales Manager
ID Number/Passport					022613997
Resident					198 Cao Lang street, Phu Thanh ward, Tan Phu District, Ho Chi Minh City, Vietnam
Mobile phone					+84 908 282 062
Nationality					Vietnamese
Value of shares					VND 3,600,000,000
Percentage					45%
3. NAME					Ms. NGUYEN THI YEN PHUONG
ID Number/Passport					022613995
Resident					38/12 Hoang Ngoc Bach street, Phu Tho Hoa ward, Tan Phu District, Ho Chi Minh City, Vietnam
Nationality					Vietnamese
Value of shares					VND 800,000,000
Percentage					10%
FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date										31/12/2010						31/12/2009
Number of weeks										52						52
ASSETS
A – CURRENT ASSETS										53,553,000,000						32,473,300,634
I. Cash and cash equivalents										14,922,000,000						4,812,209,071
1. Cash										14,922,000,000						4,812,209,071
2. Cash equivalents										0						0
II. Short-term investments										0						0
1. Short-term investments										0						0
2. Provisions for devaluation of short-term investments										0						0
III. Accounts receivable										18,956,000,000						18,721,034,019
1. Receivable from customers										17,781,000,000						16,863,016,249
2. Prepayments to suppliers										1,168,000,000						1,853,388,858
3. Inter-company receivable										0						0
4. Receivable according to the progress of construction										0						0
5. Other receivable										11,000,000						4,628,912
6. Provisions for bad debts										-4,000,000						0
IV. Inventories										19,495,000,000						8,779,591,272
1. Inventories										19,495,000,000						8,779,591,272
2. Provisions for devaluation of inventories										0						0
V. Other Current Assets										180,000,000						160,466,272
1. Short-term prepaid expenses										129,000,000						139,773,839
2. VAT to be deducted										0						0
3. Taxes and other accounts receivable from the State										10,000,000						0
4. Other current assets										41,000,000						20,692,433
B. LONG-TERM ASSETS										1,650,000,000						1,953,701,993
I. Long term accounts receivable										0						0
1. Long term account receivable from customers										0						0
2. Working capital in affiliates										0						0
3. Long-term inter-company receivable										0						0
4. Other long-term receivable										0						0
5. Provisions for bad debts from customers										0						0
II. Fixed assets										1,271,000,000						1,652,351,993
1. Tangible assets										1,239,000,000						1,576,333,133
- Historical costs										2,737,000,000						2,684,683,262
- Accumulated depreciation										-1,498,000,000						-1,108,350,129
2. Financial leasehold assets																0
- Historical costs																0
- Accumulated depreciation																0
3. Intangible assets										32,000,000						76,018,860
- Initial costs										133,000,000						133,024,155
- Accumulated amortization										-101,000,000						-57,005,295
4. Construction-in-progress										0						0
III. Investment property										0						0
Historical costs										0						0
Accumulated depreciation										0						0
IV. Long-term investments										0						0
1. Investments in affiliates										0						0
2. Investments in business concerns and joint ventures										0						0
3. Other long-term investments										0						0
4. Provisions for devaluation of long-term investments										0						0
V. Other long-term assets										379,000,000						301,350,000
1. Long-term prepaid expenses										0						0
2. Deferred income tax assets										0						0
3. Other long-term assets										379,000,000						301,350,000
VI. Goodwill
1. Goodwill
TOTAL ASSETS										55,203,000,000						34,427,002,627
LIABILITIES
A- LIABILITIES										27,585,000,000						14,015,079,363
I. Current liabilities										26,697,000,000						14,015,079,363
1. Short-term debts and loans										15,600,000,000						9,600,000,000
2. Payable to suppliers										7,834,000,000						1,303,872,592
3. Advances from customers										0						0
4. Taxes and other obligations to the State Budget										2,542,000,000						3,089,687,831
5. Payable to employees										701,000,000						8,788,000
6. Accrued expenses										0						0
7. Inter-company payable										0						0
8. Payable according to the progress of construction contracts										0						0
9. Other payable										20,000,000						12,730,940
10. Provisions for short-term accounts payable										0						0
11. Bonus and welfare funds
II. Long-Term Liabilities										888,000,000						0
1. Long-term accounts payable to suppliers										0						0
2. Long-term inter-company payable										0						0
3. Other long-term payable										0						0
4. Long-term debts and loans										0						0
5. Deferred income tax payable										0						0
6. Provisions for unemployment allowances										888,000,000						0
7. Provisions for long-term accounts payable										0						0
8. Unearned Revenue
9. Science and technology development fund
B- OWNER’S EQUITY										27,618,000,000						20,411,923,264
I. OWNER’S EQUITY										27,618,000,000						20,411,923,264
1. Capital										8,000,000,000						2,000,000,000
2. Share premiums										0
3. Other sources of capital										7,351,000,000						2,351,113,317
4. Treasury stocks										0						0
5. Differences on asset revaluation										0						0
6. Foreign exchange differences										0						0
7. Business promotion fund										0						0
8. Financial reserved fund										0						0
9. Other funds										0						0
10. Retained earnings										12,267,000,000						16,060,809,947
11. Construction investment fund										0						0
12. Business arrangement supporting fund
II. Other sources and funds										0						0
1. Bonus and welfare funds (Elder form)										0						0
2. Sources of expenditure										0						0
3. Fund to form fixed assets										0						0
MINORITY’S INTEREST										0
TOTAL LIABILITIES AND OWNER’S EQUITY										55,203,000,000						34,427,002,627
PROFIT & LOSS STATEMENT
Description									FY2010						FY2009
1. Total Sales									175,139,000,000						123,085,435,939
2. Deduction item									209,000,000						110,329,220
3. Net revenue									174,930,000,000						122,975,106,719
4. Costs of goods sold									138,694,000,000						98,232,062,142
5. Gross profit									36,236,000,000						24,743,044,577
6. Financial income									295,000,000						261,064,664
7. Financial expenses									3,815,000,000						2,293,418,361
- In which: Loan interest expenses									1,768,000,000						743,237,084
8. Selling expenses									1,197,000,000						312,483,745
9. Administrative overheads									14,893,000,000						8,828,279,682
10. Net operating profit									16,626,000,000						13,569,927,453
11. Other income									103,000,000						449,777,786
12. Other expenses									0						0
13. Other profit /(loss)									103,000,000						449,777,786
14. Total accounting profit before tax									16,729,000,000						14,019,705,239
15. Current corporate income tax									4,212,000,000						2,458,895,292
16. Deferred corporate income tax									0						0
17. Interest from subsidiaries/related companies
18. Profit after tax									12,517,000,000						11,560,809,947
FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description								FY2010				FY2009		Average Industry
Current liquidity ratio								2.01				2.32		1.70
Quick liquidity ratio								1.28				1.69		1.05
Inventory circle								9.81				11.19		7.68
Average receive period								39.55				55.57		37.77
Utilizing asset performance								3.17				3.57		1.72
Liability by total assets								49.97				40.71		51.74
Liability by owner's equity								99.88				68.66		145.40
Ebit / Total assets (ROA)								33.51				42.88		14.18
Ebit / Owner's equity (ROE)								66.97				72.33		31.73
Ebit / Total revenue (NPM)								10.56				11.99		10.11
Gross profit / Total revenue (GPM)								20.69				20.10		20.29
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data
PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality						Normal
Liquidity						N/A
Payment status						N/A
Financial Situation						Average
Development trend						Stable
Litigation data						No Record
Bankruptcy						No Record
Payment Methods						Cash or through the bank (L/C, T/T)
Sale Methods						Retailer and Wholesaler
Public opinion						Normal
INTERPRETATION ON THE SCORES
FOOD & CHEMICALS COMPANY LIMITED is a limited liability company which was established in 2002 under the Business Registration No. 4102012327. Since 2010 its business registration number has been merged into tax code (No. 0302764114) and its registration capital has been increased to VND 8,000,000,000. The subject is specializing in trading food, bouillon, noodle, dairy, additives and material for food industry such as jelly, bakery, candy, flour.... It is also an exclusive agent of J.Rettenmaier & Sohne Gmbh+Co (Deutsch) in Vietnam. Its products are almost imported from so many countries such as France, Germany, Singapore, Indonesia, Malaysia, India, Canada and Thailand. Most of the subject’s clients are super markets, groceries stores and factories in Ho Chi Minh City. Its market share is quite good. Its premise and facility are normal. The subject has moved to 106/10 Phan Van Tri street, ward 12, Binh Thanh district, Ho Chi Minh City, Vietnam since the beginning of this year. In general, the subject is operating normally under small scale. Total workforce is 41 employees. No caution is needed for small financial commitments.

------------ APPENDIX 1 ----------

INDUSTRY DATA
Industry code	GDP growth speed by price compared with 1994 (%)		Total enterprises 2010		Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
	2012	2011
Agriculture, Forestry and Fishing	2.72	4.00	8,887		24,362.9	95,227
Industry and Construction	4.52	5.53	95,217		10,718.9	3,641,376
Trade and Services	6.42	6.69	187,195		15,270.2	6,957,082
ECONOMIC INDICATORS
			2012	2011		2010
Population (Million person)			88.78	87.84		86.93
Gross Domestic Products (USD billion)			136	119		102.2
GDP Growth (%)			5.03	5.89		6.78
GDP Per Capita (USD/person/year)			1,540	1,300		1,160
Inflation (% Change in Composite CPI)			9.21	18.58		11.75
State Budget Deficit compared with GDP (%)			4.8	4.9		5.8
SERVICE TRADE PERFORMANCE
Billion USD			2012	2011		2010
Exports			114.6	96.3		72.2
Imports			114.3	105.8		84.8
Trade Balance			0.3	-9.5		-12.6

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.43
UK Pound	1	Rs.95.07
Euro	1	Rs.81.77

INFORMATION DETAILS

Report Prepared by :

NLM

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.