MIRA INFORM REPORT

Report Date :

17.01.2013

IDENTIFICATION DETAILS

Name :	QUANG ANH TRADING IMPORT EXPORT AND PRODUCTION COMPANY LIMITED
Registered Office :	No. 121, Tam Trinh Street, Group 18, Mai Dong Ward, Hoang Mai District, Ha Noi City
Country :	Vietnam
Financials (as on) :	31.11.2011
Date of Incorporation :	30.09.2009
Com. Reg. No.:	0102042523
Legal Form :	Limited liability company
Line of Business :	The subject is specializing in temporary import for re-export services of agricultural products such as fish, dried fruits
No. of Employees :	4

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 :	Small Company
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	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 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

Registered English Name	QUANG ANH TRADING IMPORT EXPORT AND PRODUCTION COMPANY LIMITED
Registered Vietnamese Name	CONG TY TNHH SAN XUAT VA XUAT NHAP KHAU THUONG MAI QUANG ANH
Registered Short name	QUANG ANH TIEAP CO.,LTD
Type of Business	Limited liability company
Year Established	2009
Business Registration No.	0102042523
Date of Registration	30 Sep 2009
Place of Registration	Planning and Investment Department of Ha Noi City
Chartered capital	VND 1,500,000,000
Status	Unlisted
Tax code	0104193966
Total Employees	4
Size	Small

Note: The complete name of subject is as above.

ADDRESSES

Head Office
Address	No. 121, Tam Trinh Street, Group 18, Mai Dong Ward, Hoang Mai District, Ha Noi City, Vietnam
Telephone	(84-4) 36369495
Fax	(84-4) 36339953

DIRECTORS

NAME	Mr. NGUYEN THE ANH
Position	Director
Date of Birth	18 Nov 1975
ID Number/Passport	011800181
ID Issue Date	25 Oct 2007
ID Issue Place	Police Department of Ha Noi City
Current resident	No. 121, Tam Trinh Street, Group 18, Mai Dong Ward, Hoang Mai District, Ha Noi City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	+84 919888666

BUSINESS NATURE AND ACTIVITIES

The subject registered many fields to operate. But now, the subject is specializing in temporary import for re-export services of agricultural products such as fish, dried fruits...

IMPORT & EXPORT ACTIVITIES

IMPORT:
Types of products	Pakistan, Indonesia, Brazil....
EXPORT:
Market	China

BANKERS

1. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM HA NOI BRANCH
Address	Kinh Do Building, 93 Lo Duc, Hai Ba Trung District, Ha Noi City, Vietnam
Telephone	(84-4) 38254609
2. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT HA NOI BRANCH
Address	No.77 Lac Trung Street, Hai Ba Trung District, Ha Noi City, Vietnam
Telephone	(84-4) 36363235
Fax	(84-4) 38219352
3. JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM HA NOI BRANCH
Address	No. 78 Nguyen Du Str., Hoan Kiem District, Ha Noi City, Vietnam
Telephone	(84-4) 38268035
Fax	(84-4) 38228039

SHAREHOLDERS

1. NAME	Mr. NGUYEN THE ANH
Position	Director
Date of Birth	18 Nov 1975
ID Number/Passport	011800181
Issued on	25 Oct 2007
Issued Place	Police Department of Ha Noi City
Current Resident	No. 121, Tam Trinh Street, Group 18, Mai Dong Ward, Hoang Mai District, Ha Noi City, Vietnam
Mobile phone	+84 919888666
Nationality	Vietnamese
Value of shares	VND 1,000,000,000
Percentage	66.7%
2. NAME	Mr. LY BA BON
ID Number/Passport	111887056
Resident	Ai Hamlet, Thuong Thanh, Thanh Cao Commune, Thanh Oai District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 500,000,000
Percentage	33.3%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	1,296,221,405	148,434,286
I. Cash and cash equivalents	399,459,691	144,040,818
1. Cash	399,459,691	144,040,818
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	857,573,231	0
1. Receivable from customers	857,573,231	0
2. Prepayments to suppliers	0	0
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	0	0
6. Provisions for bad debts	0	0
IV. Inventories	4,393,468	4,393,468
1. Inventories	4,393,468	4,393,468
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	34,795,015	0
1. Short-term prepaid expenses	0	0
2. VAT to be deducted	34,353,603	0
3. Taxes and other accounts receivable from the State	441,412	0
4. Other current assets	0	0
B. LONG-TERM ASSETS	272,727,273	0
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	272,727,273	0
1. Tangible assets	272,727,273	0
- Historical costs	272,727,273	0
- Accumulated depreciation	0	0
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	0	0
- Initial costs	0	0
- Accumulated amortization	0	0
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	0	0
1. Long-term prepaid expenses	0	0
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	1,568,948,678	148,434,286
LIABILITIES
A- LIABILITIES	1,150,500,000	0
I. Current liabilities	1,150,500,000	0
1. Short-term debts and loans	0	0
2. Payable to suppliers	1,110,000,000	0
3. Advances from customers	0	0
4. Taxes and other obligations to the State Budget	40,500,000	0
5. Payable to employees	0	0
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	0	0
10. Provisions for short-term accounts payable	0	0
11. Bonus and welfare funds	0	0
II. Long-Term Liabilities	0	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	0	0
7. Provisions for long-term accounts payable	0	0
8. Unearned Revenue	0	0
9. Science and technology development fund	0	0
B- OWNER’S EQUITY	418,448,678	148,434,286
I. OWNER’S EQUITY	418,448,678	148,434,286
1. Capital	400,000,000	150,000,000
2. Share premiums	0	0
3. Other sources of capital	0	0
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	18,448,678	-1,565,714
11. Construction investment fund	0	0
12. Business arrangement supporting fund	0	0
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	0
TOTAL LIABILITIES AND OWNER’S EQUITY	1,568,948,678	148,434,286

PROFIT & LOSS STATEMENT
Description	FY2011	FY2010
1. Total Sales	7,845,079,262	8,700,000
2. Deduction item	0	0
3. Net revenue	7,845,079,262	8,700,000
4. Costs of goods sold	7,670,872,722	2,365,714
5. Gross profit	174,206,540	6,334,286
6. Financial income	15,774	0
7. Financial expenses	0	0
- In which: Loan interest expenses
8. Selling expenses	0	0
9. Administrative overheads	148,058,363	7,900,000
10. Net operating profit	26,163,951	-1,565,714
11. Other income	0	0
12. Other expenses	0	0
13. Other profit /(loss)	0	0
14. Total accounting profit before tax	26,163,951	-1,565,714
15. Current corporate income tax	0	0
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	26,163,951	-1,565,714

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2011	FY2010	Average Industry
Current liquidity ratio	1.13	-	1.29
Quick liquidity ratio	1.12	-	0.90
Inventory circle	1,745.97	0.54	16.60
Average receive period	39.90	-	61.82
Utilizing asset performance	5.00	0.06	2.31
Liability by total assets	73.33	-	66.08
Liability by owner's equity	274.94	-	252.07
Ebit / Total assets (ROA)	1.67	-1.05	6.85
Ebit / Owner's equity (ROE)	6.25	-1.05	25.35
Ebit / Total revenue (NPM)	0.33	-18.00	4.35
Gross profit / Total revenue (GPM)	2.22	72.81	8.03
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CASH FLOW STATEMENT
(Indirect method)
Items	FY2011	FY2010
I. Cash flows from operating activities
1. Profit before tax	26,163,951	-1,565,714
2. Adjustments
- Depreciation and amortization	0	0
- Provisions	0	0
- Unrealized foreign exchange difference	0	0
- Gain/loss from investing activities	0	0
- Interest expense	0	0
3. Operating profit before movements in working capital	26,163,951	-1,565,714
- (Increase)/Decrease in receivables	-891,926,834	0
- (Increase)/Decrease in inventories	0	-4,393,468
- Increase/(Decrease) in accounts payable	1,150,500,000	0
- (Increase)/Decrease in prepaid expenses	0	0
- Interest paid	0	0
- Corporate income tax paid	-6,590,971	0
- Other cash inflows	0	0
- Other cash outflows	0	0
Net cash from (used in) operating activities	278,146,146	-5,959,182
II. Cash flows from investing activities
1. Acquisition of fixed assets and other long - term assets	-272,727,273	0
2. Proceeds from fixed assets and long - term assets disposal	0	0
3. Cash outflow for lending, buying debt instruments of other companies	0	0
4. Cash recovered from lending, selling debt instruments of other companies	0	0
5. Investment in other entities	0	0
6. Cash recovered from investments in other entities	0	0
7. Interest income, dividend and profit paid	0	0
Net cash from (used in) investing activities	-272,727,273	0
III. Cash flows from financing activities
1. Proceeds from issuing stocks, receiving capital from owners	250,000,000	150,000,000
2. Capital withdrawal, buying back issued stocks	0	0
3. Proceeds from borrowings	0	0
4. Repayment of borrowings	0	0
5. Repayment of obligations under finance leased	0	0
6. Dividends paid	0	0
Net cash from (used in) financing activities	250,000,000	150,000,000
Net increase/(decrease) in cash and cash equivalents	255,418,873	144,040,818
Cash and cash equivalents at beginning of year	144,040,818	0
Effect from changing foreign exchange rate	0	0
Cash and cash equivalents at end of year	399,459,691	144,040,818

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Fair
Liquidity	Normal
Payment status	Average
Financial Situation	Below Average
Development trend	Developing
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Through its bank
Sale Methods	Other

INTERPRETATION ON THE SCORES

QUANG ANH TRADING IMPORT EXPORT AND PRODUCTION COMPANY LIMITED was established in late 2009 in Ha Noi City.  The subject is operating under the business registration number 0102042523, granted by Planning and Investment Department of Ha Noi City on 30 Sep 2009. Its chartered capital is VND 1.5 billion, which is contributed by 2 shareholders.

All business activities of subject are realized at No. 121, Tam Trinh Street, Group 18, Mai Dong Ward, Hoang Mai District, Ha Noi City. Its office is small. There are 4 employees in office. Its facilities and management capacity are normal. The subject specializes in temporary import for re-export services of agricultural products such as fish, dried fruits... It imports goods from Pakistan, Indonesia, Brazil... Then it mainly re-exports to China.

The subject is considered as a small size company in industry. Both total assets and capital of subject are small. According to profit and loss statement, the business result showed a growth strongly in total sales in 2011. Its total sales were VND 8,700,000 in FY 2010, meanwhile FY 2011, total sales were VND 7,845,079,262. Corresponds to it, the profits improved significantly.

In short, the subject mainly does import and export services. With current business activities, the subject only can meet small 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.54.54
UK Pound	1	Rs.87.69
Euro	1	Rs.72.85

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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