MIRA INFORM REPORT

Report Date :

07.02.2013

IDENTIFICATION DETAILS

Name :	ADVANCED AGRICULTURE SOLUTION JOINT STOCK COMPANY

Registered Office :	743/32 Hong Bang Street - Ward 6, District 6, Ho Chi Minh City

Country :	Vietnam

Financials (as on) :	31.12.2011

Date of Incorporation :	05.09.2011

Com. Reg. No.:	0311122762

Legal Form :	Joint stock company

Line of Business :	Wholesale of waste and scrap and other products n.e.c

No. of Employees :	70

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 :	Slow

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

English Name		ADVANCED AGRICULTURE SOLUTION JOINT STOCK COMPANY
Vietnamese Name		CONG TY CO PHAN GIAI PHAP NONG NGHIEP TIEN TIEN
Trade name		ADVANCED AGRICULTURE SOLUTION JOINT STOCK COMPANY
Short name		AA
Type of Business		Joint stock company
Year Established		2011
Business Registration No.		0311122762
Date of Registration		05 Sep 2011
Place of Registration		Business Registration Office - Planning and Investment Department of Ho Chi Minh City
Chartered capital		VND 10,000,000,000
Tax code		0311122762
Total Employees		70
Note: The 1^st adjustment was on 28 Nov 2011

ADDRESSES

Head Office
Address		743/32 Hong Bang Street - Ward 6, District 6, Ho Chi Minh City, Vietnam
Telephone		(84-8) 3960 7943
Fax		(84-8) 39607941
Email		info@aasvn.com
Website		www.aasvn.com

Factory Address
Address		Lot 02, HC7 - HC8, Trans- Asia Industrial Park, My Hanh Bac Commune , Duc Hoa District, Long An Province, Vietnam
Occupied Area		1,600m²
Land-use Right		Leased

Branch in Nghe An
Address		No. 113 Pham Hong Thai Street, Group 6A, Cua Nam Ward , Vinh City, Nghe An Province, Vietnam

DIRECTORS

1. NAME		Mr. LAM VAN LOI
Position		Director
Date of Birth		29 Oct 1976
ID Number/Passport		023374651
ID Issue Date		29 Jun 2009
ID Issue Place		Police Station of Ho Chi Minh City
Resident		57 Dong Ho Street - Ward 4, District 8, Ho Chi Minh City, Vietnam
Nationality		Vietnamese

2. NAME		Mr. NGUYEN XUAN TIEN
Position		Deputy Director
Date of Birth		16 Sep 1956
ID Number/Passport		021276553
ID Issue Date		11 Jul 2002
ID Issue Place		Police Station of Hochiminh City
Resident		Nguyen Van Quy Str, Hamlet 1, Tan Thuan Dong Village, 7th District, Ho Chi Minh City, Vietnam
Current resident		354/89/42 Phan Van Tri Street, Ward 11, Binh Thanh District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Qualification		Bachelor

3. NAME		Mr. HUYNH VAN HAI
Position		Chief Accountant
Current resident		Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Tel/Mobile phone		+ 84 919 610 501
Qualification		Bachelor

BUSINESS NATURE AND ACTIVITIES

Wholesale of waste and scrap and other products n.e.c
Short-term accommodation activities
Other land transport of passenger
Restaurants and mobile food service activities
Wholesale of metals and metal ores
Retail sale of audio and video equipment in specialized stores
Repair of consumer electronics
Service activities related to printing
Wholesale of other machinery and equipment n.e.c
Wholesale of waste and scrap and other products n.e.c
Manufacture of soap and detergents, cleaning and polishing preparations
Retail sale of computer, computer peripheral equipment, software and telecommunication equipment in specialized stores
Other transportation support activities
Computer consultancy and system administration
Repair of computers and peripheral equipment
Repair of electrical equipment
Wholesale of computer, computer peripheral equipment and software
Computer programming
Advertising

IMPORT & EXPORT ACTIVITIES

IMPORT:
Types of products		Material and pesticides
Market		China, India

EXPORT:
Types of products		drugs
Market		Laos, Cambodia

BANKERS

1. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK SAI GON BRANCH
Address		No.211-213-215 Pham Ngu Lao Pham Ngu Lao ward, District 1, Ho Chi Minh City, Vietnam
Telephone		(84-8) 38360243
Fax		(84-8) 38368598

2. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK 5 DISTRICT BRANCH
Address		No.107C Ngo Quyen str, No.11 ward, District 5, Ho Chi Minh City, Vietnam
Telephone		(84-8) 38539202 /03
Fax		(84-8) 38539204

3. DONG A COMMERCIAL JOINT STOCK BANK
Address		No. 130 Phan Dang Luu St, Ward 3, Phu Nhuan District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 39951483
Fax		(84-8) 39951614

4. GLOBAL PETRO COMMERCIAL JOINT STOCK BANK
Address		No. 109 Tran Hung Dao, Hoan Kiem District, Ha Noi City, Vietnam
Telephone		(84-4) 3734 5345
Fax		(84-4) 3726 3999

SHAREHOLDERS

1. NAME		Ms. CHU HOANG NGUYEN DIEM THUY
ID Number/Passport		022674334
Resident		225/12/2 Nguyen Dinh Chieu Street – Ward 5, District 3, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Shares		80,000
Value of shares		VND 800,000,000
Percentage		8%

2. NAME		Mr. NGUYEN XUAN TIEN
Position		Deputy Director
Date of Birth		16 Sep 1956
ID Number/Passport		021276553
Issued on		11 Jul 2002
Issued Place		Police Station of Hochiminh City
Resident		Nguyen Van Quy Str, Hamlet 1, Tan Thuan Dong Village, 7^th District, Ho Chi Minh City, Vietnam
Current Resident		354/89/42 Phan Van Tri Street, Ward 11, Binh Thanh District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Shares		39,000
Value of shares		VND 390,000,000
Percentage		3.9%

3. NAME		Mr. NGUYEN VAN TIEP
ID Number/Passport		300667730
Resident		134/15 Tran Hung Dao Street – Moc Hoa Town, Moc Hoa District, Long An Province, Vietnam
Nationality		Vietnamese
Shares		39,000
Value of shares		VND 390,000,000
Percentage		3.9%

4. NAME		Mr. LA VAN LY
ID Number/Passport		011266527
Resident		263 Bach Dang Street – Chuong Duong Ward, Hoan Kiem District, Ha Noi City, Vietnam
Nationality		Vietnamese
Shares		30,000
Value of shares		VND 300,000,000
Percentage		3%

5. NAME		Ms. NGUYEN THU NGA
ID Number/Passport		020249569
Resident		128 Nguyen Trai Street – Ben Thanh Ward, District 1, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Shares		100,000
Value of shares		VND 1,000,000,000
Percentage		10%

6. NAME		Ms. NGUYEN THI SON
ID Number/Passport		020617751
Resident		118/57 Tran Quang Dieu Street – Ward 14, District 3, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Shares		39,000
Value of shares		VND 390,000,000
Percentage		3.9%

7. NAME		Mr. NGUYEN VAN TAM
ID Number/Passport		022493440
Resident		108/9 Tran Quang Dieu Street – Ward 14, District 3, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Shares		369,000
Value of shares		VND 3,690,000,000
Percentage		36.9%

8. NAME		Mr. LE TRUNG HUAN
ID Number/Passport		022079148
Resident		119B/68/75 Nguyen Thi Tan Street – Ward 2, District 8, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Shares		70,000
Value of shares		VND 700,000,000
Percentage		7%

9. NAME		Mr. BUI QUY TU
ID Number/Passport		022244262
Resident		194/50/26D Bach Dang Street- Ward 24, Binh Thanh District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Shares		39,000
Value of shares		VND 390,000,000
Percentage		3.9%

10. NAME		Mr. NGUYEN TRONG TIN
ID Number/Passport		025167527
Resident		184/20 Phu Tho Hoa Street - Phu Tho Hoa Ward, Tan Phu District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Shares		39,000
Value of shares		VND 390,000,000
Percentage		3.9%

11. NAME		Ms. NGUYEN THI KIM BINH
ID Number/Passport		024541904
Resident		85/6B Thach Thi Thanh Street - Tan Dinh Ward, District 1, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Shares		39,000
Value of shares		VND 390,000,000
Percentage		3.9%

12. NAME		Mr. LY VU MINH
ID Number/Passport		301103200
Resident		49/13 Nguyen Du Street - Quarter 1 - Moc Hoa Town, Moc Hoa District, Long An Province, Vietnam
Nationality		Vietnamese
Shares		39,000
Value of shares		VND 390,000,000
Percentage		3.9%

13. NAME		Mr. NGUYEN XUAN CHIEN
ID Number/Passport		011927105
Resident		Room 502 - D7 House - 8/3 Weave Tenement Quynh Mai Ward, Hai Ba Trung District, Ha Noi City, Vietnam
Nationality		Vietnamese
Shares		39,000
Value of shares		VND 390,000,000
Percentage		3.9%

14. NAME		Mr. LAM VAN LOI
Position		Director
Date of Birth		29 Oct 1976
ID Number/Passport		023374651
Issued on		29 Jun 2009
Issued Place		Police Station Of Ho Chi Minh City
Resident		57 Dong Ho Street - Ward 4, District 8, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Shares		39,000
Value of shares		VND 390,000,000
Percentage		3.9%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011
Number of weeks	N/A
ASSETS
A – CURRENT ASSETS	14,749,000,000
I. Cash and cash equivalents	478,000,000
1. Cash	478,000,000
2. Cash equivalents	0
II. Short-term investments	1,800,000,000
1. Short-term investments	1,800,000,000
2. Provisions for devaluation of short-term investments	0
III. Accounts receivable	1,355,000,000
1. Receivable from customers	950,000,000
2. Prepayments to suppliers	405,000,000
3. Inter-company receivable	0
4. Receivable according to the progress of construction	0
5. Other receivable	0
6. Provisions for bad debts	0
IV. Inventories	8,340,000,000
1. Inventories	8,340,000,000
2. Provisions for devaluation of inventories	0
V. Other Current Assets	2,776,000,000
1. Short-term prepaid expenses	459,000,000
2. VAT to be deducted	1,223,000,000
3. Taxes and other accounts receivable from the State	1,000,000
4. Other current assets	1,093,000,000
B. LONG-TERM ASSETS	6,876,000,000
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	6,681,000,000
1. Tangible assets	6,094,000,000
- Historical costs	6,130,000,000
- Accumulated depreciation	-36,000,000
2. Financial leasehold assets	0
- Historical costs	0
- Accumulated depreciation	0
3. Intangible assets	0
- Initial costs	0
- Accumulated amortization	0
4. Construction-in-progress	587,000,000
III. Investment property	0
Historical costs	0
Accumulated depreciation	0
IV. Long-term investments	0
1. Investments in affiliates	0
2. Investments in business concerns and joint ventures	0
3. Other long-term investments	0
4. Provisions for devaluation of long-term investments	0
V. Other long-term assets	195,000,000
1. Long-term prepaid expenses	195,000,000
2. Deferred income tax assets	0
3. Other long-term assets	0
VI. Goodwill	0
1. Goodwill	0
TOTAL ASSETS	21,625,000,000

LIABILITIES
A- LIABILITIES	13,589,000,000
I. Current liabilities	13,589,000,000
1. Short-term debts and loans	720,000,000
2. Payable to suppliers	11,805,000,000
3. Advances from customers	0
4. Taxes and other obligations to the State Budget	12,000,000
5. Payable to employees	280,000,000
6. Accrued expenses	0
7. Inter-company payable	0
8. Payable according to the progress of construction contracts	0
9. Other payable	772,000,000
10. Provisions for short-term accounts payable	0
11. Bonus and welfare funds	0
II. Long-Term Liabilities	0
1. Long-term accounts payable to suppliers	0
2. Long-term inter-company payable	0
3. Other long-term payable	0
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
8. Unearned Revenue
9. Science and technology development fund
B- OWNER’S EQUITY	8,036,000,000
I. OWNER’S EQUITY	8,036,000,000
1. Capital	9,612,000,000
2. Share premiums	0
3. Other sources of capital	0
4. Treasury stocks	0
5. Differences on asset revaluation	0
6. Foreign exchange differences	0
7. Business promotion fund	0
8. Financial reserved fund	0
9. Other funds	0
10. Retained earnings	-1,576,000,000
11. Construction investment fund	0
12. Business arrangement supporting fund	0
II. Other sources and funds	0
1. Bonus and welfare funds (Elder form)	0
2. Sources of expenditure	0
3. Fund to form fixed assets	0
MINORITY’S INTEREST	0
TOTAL LIABILITIES AND OWNER’S EQUITY	21,625,000,000

PROFIT & LOSS STATEMENT

Description	FY2011
1. Total Sales	1,246,000,000
2. Deduction item	26,000,000
3. Net revenue	1,220,000,000
4. Costs of goods sold	1,129,000,000
5. Gross profit	91,000,000
6. Financial income	39,000,000
7. Financial expenses	11,000,000
- In which: Loan interest expenses	11,000,000
8. Selling expenses	3,000,000
9. Administrative overheads	1,682,000,000
10. Net operating profit	-1,566,000,000
11. Other income	0
12. Other expenses	0
13. Other profit /(loss)	0
14. Total accounting profit before tax	-1,566,000,000
15. Current corporate income tax	0
16. Deferred corporate income tax	0
17. Interest from subsidiaries/related companies	0
18. Profit after tax	-1,566,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2011	Average Industry
Current liquidity ratio	1.09	1.72
Quick liquidity ratio	0.47	1.06
Inventory circle	0.14	13.62
Average receive period	405.39	78.59
Utilizing asset performance	0.06	1.55
Liability by total assets	62.84	52.62
Liability by owner's equity	169.10	163.63
Ebit / Total assets (ROA)	-7.19	13.16
Ebit / Owner's equity (ROE)	-19.35	29.85
Ebit / Total revenue (NPM)	-124.80	7.13
Gross profit / Total revenue (GPM)	7.30	19.87
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		Normal
Financial Situation		Below Average
Development trend		N/A
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		Through the banks
Sale Methods		Retailer and Wholesaler

INTERPRETATION ON THE SCORES

The subject - ADVANCED AGRICULTURE SOLUTION JOINT STOCK COMPANY was established in September 2011. It is operating under Business Registration No. 0311122762 issued by Business Registration Office – Planning Investment Department of Ho Chi Minh City with a chartered capital VND 10 billion

The subject specializes in manufacturing and trading plant protection drugs. The subject is a new established company so the position in industry of the subject is small. Currently, it mainly imports material from China and India. The subject’s products export to Laos and Cambodia. Premises and facilities of the subject are standard. Head office of the subject is located at 743/32 Hong Bang Street - Ward 6 - District 6 - Ho Chi Minh City. The subject has factory at Trans –Asia Industrial Park in Long An province with total area about 1,600m². And this factory started manufacturing and trading in Dec 2011. Besides, the subject has a representative office in Laos.

Currently, business situation of the subject is now busy. Up to now, total employees of the subject is 70 (in Feb 2012 was 40). Management capacity is average. Basing on financial statements in 2011, revenue of the subject was low and profit was negative.

The subject is a small young company in this field so its position is limited. In 2013, the subject has new strategies to stabilize market share. In general, the subject has capacity to meet small financial commitments only. Caution is needed for big transactions.

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.53.08
UK Pound	1	Rs.83.11
Euro	1	Rs.72.01

INFORMATION DETAILS

Report Prepared by :

SDA

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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