MIRA INFORM REPORT

Report Date :

29.01.2013

IDENTIFICATION DETAILS

Name :	GIANG HONG COMPANY LIMITED
Registered Office :	Dong Van Industrial Zone, Dong Van Town, Duy Tien District, Ha Nam Province
Country :	Vietnam
Financials (as on) :	31.12.2009
Year of Incorporation :	2001
Com. Reg. No.:	0101115663
Legal Form :	Limited Liability Company
Line of Business :	The subject is specialized in manufacturing and trading animal feed.
No. of Employees :	80

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	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
English Name	GIANG HONG COMPANY LIMITED
Vietnamese Name	CONG TY TRACH NHIEM HUU HAN GIANG HONG
Short name	G-H CO., LTD
Type of Business	Limited liability company
Year Established	2001
Business Registration No.	0101115663
Date of Registration	27 May 2009
Place of Registration	Ha Nam Department of Planning and Investment
Chartered capital	VND 17,500,000,000
Status	Unlisted
Tax code	0101115663
Total Employees	80
Size	Medium

Note: The correct name of the subject is as above.
ADDRESSES
Head Office
Address	Dong Van Industrial Zone, Dong Van Town, Duy Tien District, Ha Nam Province, Vietnam
Telephone	(84-351) 3582605
Fax	(84-351) 3582773
Website	http://www.gianghong.com

DIRECTORS
1. NAME	Mr. NGUYEN TRONG HONG
Position	Chairman cum Director
Date of Birth	04 Apr 1958
ID Number/Passport	011457981
ID Issue Date	31 Jul 2000
ID Issue Place	Public Securities of Hanoi City
Resident	No. 112 Group 29, Phuong Liet Ward, Thanh Xuan District, Ha Noi City, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in manufacturing and trading animal feed.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Materials
· Market	India
· Mode of payment	L/C
EXPORT:
· Market	The subject does not export.

BANKERS
1. BANK FOR DEVELOPMENT AND INVESTMENT OF VIETNAM HA NAM BRANCH
Address	No.210 Le Hoan Quang Trung Ward, Phu Ly City, Ha Nam Province, Vietnam
Telephone	(84-351) 3852763
Note: The transaction bank of the subject is as above.

SHAREHOLDERS
1. NAME	Mr. NGUYEN TRONG HONG
Position	Chairman cum Director
Date of Birth	04 Apr 1958
ID Number/Passport	011457981
Issued on	31 Jul 2000
Issued Place	Public Securities of Hanoi City
Resident	No. 112 Group 29, Phuong Liet Ward, Thanh Xuan District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 12,250,000,000
Percentage	70%
2. NAME	Ms. VU THI QUYEN
ID Number/Passport	011444521
Resident	No. 112 Group 29, Phuong Liet Ward, Thanh Xuan District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 5,250,000,000
Percentage	30%

FINANCIAL DATA
Note: Despite trying best, the latest financial data is not available.
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2009
Number of weeks	52
ASSETS
A – CURRENT ASSETS	17,022,000,000
I. Cash and cash equivalents	485,000,000
1. Cash	268,000,000
2. Cash equivalents	217,000,000
II. Short-term investments	0
1. Short-term investments	0
2. Provisions for devaluation of short-term investments	0
III. Accounts receivable	2,233,000,000
1. Receivable from customers	2,233,000,000
2. Prepayments to suppliers	0
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	12,049,000,000
1. Inventories	12,049,000,000
2. Provisions for devaluation of inventories	0
V. Other Current Assets	2,255,000,000
1. Short-term prepaid expenses	0
2. VAT to be deducted	848,000,000
3. Taxes and other accounts receivable from the State	0
4. Other current assets	1,407,000,000
B. LONG-TERM ASSETS	8,814,000,000
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	8,814,000,000
1. Tangible assets	8,814,000,000
- Historical costs	11,542,000,000
- Accumulated depreciation	-2,728,000,000
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	0
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	0
1. Long-term prepaid expenses	0
2. Deferred income tax assets	0
3. Other long-term assets	0
VI. Goodwill	0
1. Goodwill	0
TOTAL ASSETS	25,836,000,000
LIABILITIES
A- LIABILITIES	8,066,000,000
I. Current liabilities	6,866,000,000
1. Short-term debts and loans	4,548,000,000
2. Payable to suppliers	2,320,000,000
3. Advances from customers	0
4. Taxes and other obligations to the State Budget	-7,000,000
5. Payable to employees	0
6. Accrued expenses	0
7. Inter-company payable	0
8. Payable according to the progress of construction contracts	0
9. Other payable	5,000,000
10. Provisions for short-term accounts payable	0
11. Bonus and welfare funds	0
II. Long-Term Liabilities	1,200,000,000
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	1,200,000,000
5. Deferred income tax payable	0
6. Provisions for unemployment allowances	0
7. Provisions for long-term accounts payable	0
8. Unearned Revenue	0
9. Science and technology development fund	0
B- OWNER’S EQUITY	17,770,000,000
I. OWNER’S EQUITY	17,690,000,000
1. Capital	5,600,000,000
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	12,090,000,000
11. Construction investment fund	0
12. Business arrangement supporting fund	0
II. Other sources and funds	80,000,000
1. Bonus and welfare funds (Elder form)	80,000,000
2. Sources of expenditure	0
3. Fund to form fixed assets	0
MINORITY’S INTEREST	0
TOTAL LIABILITIES AND OWNER’S EQUITY	25,836,000,000

PROFIT & LOSS STATEMENT
Description	FY2009
1. Total Sales	84,814,000,000
2. Deduction item	0
3. Net revenue	84,814,000,000
4. Costs of goods sold	75,154,000,000
5. Gross profit	9,660,000,000
6. Financial income	0
7. Financial expenses	558,000,000
- In which: Loan interest expenses	0
8. Selling expenses	0
9. Administrative overheads	5,353,000,000
10. Net operating profit	3,749,000,000
11. Other income	397,000,000
12. Other expenses	0
13. Other profit /(loss)	397,000,000
14. Total accounting profit before tax	4,146,000,000
15. Current corporate income tax	218,000,000
16. Deferred corporate income tax	0
17. Interest from subsidiaries/related companies	0
18. Profit after tax	3,928,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2009	Average Industry
Current liquidity ratio	2.48	1.47
Quick liquidity ratio	0.72	0.70
Inventory circle	6.24	8.31
Average receive period	9.61	28.57
Utilizing asset performance	3.28	2.64
Liability by total assets	31.22	58.07
Liability by owner's equity	45.39	182.19
Ebit / Total assets (ROA)	16.05	10.02
Ebit / Owner's equity (ROE)	23.33	25.93
Ebit / Total revenue (NPM)	4.89	3.82
Gross profit / Total revenue (GPM)	11.39	8.54
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Normal
Liquidity	Medium
Payment status	Average
Financial Situation	Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C
Sale Methods	Wholesaler
Public opinion	Normal

INTERPRETATION ON THE SCORES

GIANG HONG COMPANY LIMITED was established in 2001 as a limited liability company. Currently, it is operating under the Business Registration No. 0101115663 issued by Ha Nam Department of Planning and Investment. The chartered capital is now VND 17,500,000,000 contributed by two individual shareholders.

In the past, the subject’s address was in Hanoi City. Currently, the head office and factory of the subject are located at Dong Van Industrial Zone, Dong Van Town, Duy Tien District, Ha Nam Province, Vietnam. The subject focuses on manufacturing and trading animal feed. The subject has started importing materials from India in 2012. According to Mr. Dau Dang Khoi - Chief Accountant, the subject aims to enhance more import and export activities with foreign partners.

Regarding to the financial data, the subject achieved the total assets of VND 25.8 billion in 2009, in which the current assets held over VND 17 billion and the long-term assets valued at VND 8.8 billion. In FY2009, the subject reached VND 84.8 billion as total sales and VND 3.9 billion as profit after tax. The costs of goods sold accounted for 88.6% of net revenue. The liability by total assets was 31.22% and the liability by owner’s equity was 45.39%, which were both lower than the industry average. It meant a fairly safe financial leverage for the subject.

In short, the subject is a medium sized company in the industry. The firm has been operating for over 10 years in the market. It is capable for small financial commitments with the subject.

------------ APPENDIX ----------

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.53.89
UK Pound	1	Rs.84.92
Euro	1	Rs.72.51

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%)

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.