MIRA INFORM REPORT

Report Date :

29.08.2013

IDENTIFICATION DETAILS

Name :	NAM VIET JOINT - STOCK COMPANY
Registered Office :	Town Area No.2 Pho Co Ward, Song Cong District, Thai Nguyen Province
Country :	Vietnam
Financials (as on) :	30.06.2013
Year of Incorporation :	2002
Com. Reg. No.:	4600305924
Legal Form :	Joint stock company
Line of Business :	The subject specializes in Producing and trading in animal feed and Retailing petrol and oil.
No. of Employees :	220

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 :	Slow but correct
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 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	NAM VIET JOINT - STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN NAM VIET
Type of Business	Joint stock company
Year Established	2002
Business Registration No.	4600305924
Date of Registration	27 Dec 2010
Place of Registration	Thai Nguyen Department of Planning and Investment
Chartered capital	VND 100,000,000,000
Status	Unlisted
Tax code	4600305924
Total Employees	220
Size	Medium
Note:  The latest business registration is adjusting in August 2013. It is completing the legal procedure.

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Chartered capital: VND 60,000,000,000 Changed to: VND 100,000,000,000	2013
2	Subject has got former Chartered capital: VND 40,000,000,000 Changed to: VND 60,000,000,000	28 Mar 2012
3	Subject has got former Chartered capital: VND 28,000,000,000 Changed to: VND 40,000,000,000	27 Jun 2011
4	Subject has got former Chartered capital: VND 19,500,000,000 Changed to: VND 28,000,000,000	27 Dec 2010

ADDRESSES

Head Office
Address	Town Area No.2 Pho Co Ward, Song Cong District, Thai Nguyen Province, Vietnam
Telephone	(84-280) 3861808
Fax	(84-280) 3861809
Petro Store
Address	Group 1 - Dong Bam Commune , Thai Nguyen City, Thai Nguyen Province, Vietnam

DIRECTORS

1. NAME	Mr. HA VAN AN
Position	President
Date of Birth	15 Aug 1962
ID Number/Passport	090717978
ID Issue Date	10 Jan 2008
ID Issue Place	Thai Nguyen Department of Public Security
Resident	Group 17 Dong Quang Ward, Thai Nguyen City, Thai Nguyen Province, Vietnam
Nationality	Vietnamese
2. NAME	Ms. NGUYEN THI NU
Position	Director
Date of Birth	02 Nov 1966
ID Number/Passport	090468310
ID Issue Date	10 Jan 2008
ID Issue Place	Thai Nguyen Department of Public Security
Resident	Group 17 Dong Quang Ward, Thai Nguyen City, Thai Nguyen Province, Vietnam
Nationality	Vietnamese
3. NAME	Mr. HOANG THANH PHONG
Position	Chief Accountant
Nationality	Vietnamese
Tel/Mobile phone	(84) 9 8379 6683
4. NAME	Mr. TRINH DANG TINH
Position	Deputy Director
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject specializes in:

- Producing and trading in animal feed

- Retailing petrol and oil

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Materials for animal feed production, equipment
· Market	India, USA, Pakistan, Ukraine, China
· Ratio	70%-80%
· Mode of payment	L/C, T/T
EXPORT:
Note: Currently, the subject does not export

BANKERS

1. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE SONG CONG TOWN BRANCH
Address	No. 1 Thang Loi str, Song Cong District, Thai Nguyen Province, Vietnam
Telephone	(84-280) 3861949
2. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK THAI NGUYEN BRANCH
Address	No.25 Hoang Van Thu str, Thai Nguyen City, Thai Nguyen Province, Vietnam
Telephone	(84-280) 3753 989
Fax	(84-280) 3755858

SHAREHOLDERS

1. NAME	Mr. HA VAN AN
Position	President
Date of Birth	15 Aug 1962
ID Number/Passport	090717978
Issued on	10 Jan 2008
Issued Place	Thai Nguyen Department of Public Security
Resident	Group 17 Dong Quang Ward, Thai Nguyen City, Thai Nguyen Province, Vietnam
Nationality	Vietnamese
Number of Shares	510,000
Value of shares	VND 51,000,000,000
Percentage	51%
2. NAME	Ms. NGUYEN THI NU
Position	Director
Date of Birth	02 Nov 1966
ID Number/Passport	090468310
Issued on	10 Jan 2008
Issued Place	Thai Nguyen Department of Public Security
Resident	Group 17 Dong Quang Ward, Thai Nguyen City, Thai Nguyen Province, Vietnam
Nationality	Vietnamese
Number of Shares	245,000
Value of shares	VND 24,500,000,000
Percentage	24.5%
3. NAME	Mr. NGUYEN DUC HUNG
Date of Birth	01 Sep 1981
ID Number/Passport	090816765
Issued on	03 Apr 2011
Issued Place	Police Station of Thai Nguyen Province
Resident	Group 23 Phan Dinh Phung , Thai Nguyen City, Thai Nguyen Province, Vietnam
Nationality	Vietnamese
Number of Shares	105,000
Value of shares	VND 10,500,000,000
Percentage	10.5%
4. NAME	Mr. HA VAN HUONG
Date of Birth	06 Oct 1976
ID Number/Passport	121232234
Issued on	17 Sep 1994
Issued Place	Police Station of Thai Nguyen Province
Resident	Vai Hamlet - Hoa Thuong , Dong Hy District, Thai Nguyen Province, Vietnam
Nationality	Vietnamese
Number of Shares	67,900
Value of shares	VND 6,790,000,000
Percentage	6.79%
5. NAME	Mr. HA VAN SON
Date of Birth	03 Mar 1968
ID Number/Passport	121055807
Issued on	22 Jul 1988
Issued Place	Police Station of Bac Giang Province
Resident	Luong Son Commune, Hiep Hoa District, Bac Giang Province, Vietnam
Nationality	Vietnamese
Number of Shares	70,000
Value of shares	VND 7,000,000,000
Percentage	7%
6. NAME	Mr. DUONG THE VINH
Date of Birth	08 May 1981
ID Number/Passport	090816795
Issued on	03 Apr 2002
Issued Place	Police Station of Thai Nguyen Province
Resident	Group 3 - Hoang Van Thu , Thai Nguyen City, Thai Nguyen Province, Vietnam
Nationality	Vietnamese
Number of Shares	2,100
Value of shares	VND 210,000,000
Percentage	0.21%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	30/06/2013	31/12/2012	31/12/2011
Number of weeks	26	52	52
Audit status	Unaudited	Audited	Audited
ASSETS
A – CURRENT ASSETS	360,809,314,720	244,238,912,801	177,120,118,631
I. Cash and cash equivalents	6,249,317,655	2,344,852,429	2,145,677,246
1. Cash	6,249,317,655	2,344,852,429	2,145,677,246
2. Cash equivalents	0	0	0
II. Short-term investments	0	0	0
1. Short-term investments	0	0	0
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	39,419,716,889	12,614,011,717	28,144,733,771
1. Receivable from customers	8,901,212,061	3,991,469,006	2,468,094,941
2. Prepayments to suppliers	26,568,504,828	4,322,542,711	23,905,413,741
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	4,911,744,771	4,911,744,771	1,771,225,089
6. Provisions for bad debts	-961,744,771	-611,744,771	0
IV. Inventories	306,014,306,352	224,145,596,400	138,367,474,884
1. Inventories	306,014,306,352	224,145,596,400	138,367,474,884
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	9,125,973,824	5,134,452,255	8,462,232,730
1. Short-term prepaid expenses	0	0	0
2. VAT to be deducted	0	0	1,515,581,983
3. Taxes and other accounts receivable from the State	0	294,674,544	5,626,875
4. Other current assets	9,125,973,824	4,839,777,711	6,941,023,872
B. LONG-TERM ASSETS	65,790,099,729	65,151,069,341	47,055,556,094
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	55,866,046,090	55,204,799,438	42,566,497,198
1. Tangible assets	34,330,300,187	35,700,029,029	33,369,052,205
- Historical costs	45,151,220,305	44,725,946,124	39,602,882,191
- Accumulated depreciation	-10,820,920,118	-9,025,917,095	-6,233,829,986
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	0	0	0
- Initial costs	0	0	0
- Accumulated amortization	0	0	0
4. Construction-in-progress	21,535,745,903	19,504,770,409	9,197,444,993
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	8,802,455,986	8,802,455,986	4,185,180,986
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	0	0
3. Other long-term investments	8,802,455,986	8,802,455,986	4,185,180,986
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	1,121,597,653	1,143,813,917	303,877,910
1. Long-term prepaid expenses	0	0	0
2. Deferred income tax assets	0	0	0
3. Other long-term assets	1,121,597,653	1,143,813,917	303,877,910
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	426,599,414,449	309,389,982,142	224,175,674,725
LIABILITIES
A- LIABILITIES	363,828,751,468	247,493,872,949	182,948,607,571
I. Current liabilities	339,286,932,623	232,452,054,104	170,948,607,571
1. Short-term debts and loans	237,596,894,620	189,309,916,248	116,792,674,338
2. Payable to suppliers	95,801,586,215	37,493,823,688	52,004,370,684
3. Advances from customers	503,988,030	4,262,713,413	63,006,701
4. Taxes and other obligations to the State Budget	118,563,936	295,276,785	1,027,962,442
5. Payable to employees	921,494,885	1,031,336,974	934,290,167
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	4,344,404,937	58,986,996	126,303,239
10. Provisions for short-term accounts payable	0	0	0
11. Bonus and welfare funds	0	0
II. Long-Term Liabilities	24,541,818,845	15,041,818,845	12,000,000,000
1. Long-term accounts payable to suppliers	24,500,000,000	15,000,000,000	0
2. Long-term inter-company payable	41,818,845	41,818,845	0
3. Other long-term payable	0	0	0
4. Long-term debts and loans	0	0	12,000,000,000
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 Revenue	0	0
9. Science and technology development fund	0	0
B- OWNER’S EQUITY	62,770,662,981	61,896,109,193	41,227,067,154
I. OWNER’S EQUITY	62,770,662,981	61,896,109,193	41,227,067,154
1. Capital	60,000,000,000	60,000,000,000	40,000,000,000
2. Share premiums	0	0	0
3. Other sources of capital	250,000,000	250,000,000	250,000,000
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	-46,072,460	0
6. Foreign exchange differences	0	0	-186,957,313
7. Business promotion fund	2,520,662,981	1,692,181,653	0
8. Financial reserved fund	0	0	0
9. Other funds	0	0	0
10. Retained earnings	0	0	1,164,024,467
11. Construction investment fund	0	0	0
12. Business arrangement supporting fund	0	0
II. Other sources and funds	0	0	0
1. Bonus and welfare funds (Elder form)	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	426,599,414,449	309,389,982,142	224,175,674,725

PROFIT & LOSS STATEMENT
Description	01/01/2013 - 30/06/2013	FY2012	FY2011
1. Total Sales	556,494,888,527	631,350,745,978	537,312,448,390
2. Deduction item	22,438,238,391	0	0
3. Net revenue	534,056,650,136	631,350,745,978	537,312,448,390
4. Costs of goods sold	518,207,354,730	601,444,579,723	507,762,612,578
5. Gross profit	15,849,295,406	29,906,166,255	29,549,835,812
6. Financial income	0	52,516,462	1,589,028,089
7. Financial expenses	7,471,838,780	16,777,427,058	16,032,552,556
- In which: Loan interest expenses	6,649,686,558	15,276,947,651	14,242,406,712
8. Selling expenses			0
9. Administrative overheads	6,212,718,075	12,743,203,816	13,694,508,543
10. Net operating profit	2,164,738,551	438,051,843	1,411,802,802
11. Other income	1,071,044,417	2,053,447,554	878,866,593
12. Other expenses	131,141,198	1,751,485,629	1,594,337,449
13. Other profit /(loss)	939,903,219	301,961,925	-715,470,856
14. Total accounting profit before tax	3,104,641,770	740,013,768	696,331,946
15. Current corporate income tax	776,160,443	211,856,579	233,304,070
16. Deferred corporate income tax			0
17. Interest from subsidiaries/related companies			0
18. Profit after tax	2,328,481,328	528,157,189	463,027,876

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	01/01/2013 - 30/06/2013	FY2012	FY2011	Average Industry
Current liquidity ratio	1.06	1.05	1.04	1.43
Quick liquidity ratio	0.16	0.09	0.23	0.56
Inventory circle	1.95	2.68	3.67	5.64
Average receive period	26.94	7.29	19.12	27.24
Utilizing asset performance	1.25	2.04	2.40	2.27
Liability by total assets	85.29	79.99	81.61	58.03
Liability by owner's equity	579.62	399.85	443.76	169.12
Ebit / Total assets (ROA)	2.29	5.18	6.66	16.77
Ebit / Owner's equity (ROE)	15.54	25.88	36.24	41.49
Ebit / Total revenue (NPM)	1.75	2.54	2.78	7.21
Gross profit / Total revenue (GPM)	2.85	4.74	5.50	12.54
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Fair
Liquidity	Low/Medium
Payment status	Average
Financial Situation	Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C,T/T
Sale Methods	Retailer and Wholesaler
Public opinion	Good

INTERPRETATION ON THE SCORES

The subject company operates in producing and trading animal feed. It was established in 2002 in Thai Nguyen Province. The head office and factory are located at Town Area No. 2 Pho Co Ward, Song Cong District, Thai Nguyen Province. At present, the subject is operating under the business code No. 4600305924, granted by Planning and Investment Department of Thai Nguyen Province. It has just increased the chartered capital from VND 60 billion to VND 100 billion in August 2013. The founding shareholders also were adjusted from 3 people to 6 people.

The brands which is manufacturing by the subject, includes “Nam Viet”, “Tru Dai”, “Red Apple”, etc. Besides, it has a retailed petrol and oil store. 95% of total sales of the subject are from animal feed. It imports agricultural products for its production from India, the United States, Pakistan, Ukraine. Currently, it doesn't export. All of output is sold in domestic market.

In February 2010, it installed the closing processing lines system, uses equipments were mainly imported from China. This equipment line is worth about VND 13 billion. After it had installed new equipment line, its output turnover increased from 20,000 tons animal feed to 37,132 tons animal feed. And its yield will continue to increase in the near future.

The nearest financial data shows that, the financial situation in recent years was average. Although total assets increased strongly through the years, liabilities also increased remarkable. Total assets at the end of the year 2011 was VND 224.1 billion, it increased to VND 426.5 at 30 June 2013, up about 90.31 percent. Besides that, the liabilities at the same period to compare up about 99.45%. Meaning the growth of liabilities were higher than the growth of total assets. It made the liquidity ratios were humble and the capital structure was relative poor for creditors and investors.

The business result was improved in six months of the year 2013. Total sales was VND 556.4 billion, reached 88% compared with of the year 2012 and the after tax was VND 2.3 billion. However, the profitability ratios were still humble against of the industry average.

In conclusion, the business activities of company are stable. It is a medium company in the industry with bright prospect. Caution is needed for large transactions.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 68.36
UK Pound	1	Rs. 106.03
Euro	1	Rs. 91.47

INFORMATION DETAILS

Report Prepared by :

NIS

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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