MIRA INFORM REPORT

Report Date :

15.03.2013

IDENTIFICATION DETAILS

Name :	NAM NONG COMPANY LIMITED
Registered Office :	206 Road 55, Tan Tao Ward, Binh Tan District, Ho Chi Minh City
Country :	Vietnam
Year of Incorporation :	2007
Com. Reg. No.:	0305230350
Legal Form :	Limited Liability Company
Line of Business :	Wholesale of pesticides, fertilizers and agricultural chemicals
No. of Employees :	70

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)
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 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
Current legal status
English Name	NAM NONG COMPANY LIMITED
Registered Vietnamese Name	CONG TY TNHH THUOC BAO VE THUC VAT NAM NONG
Short name	NAM NONG CO., LTD
Type of Business	Limited liability company
Year Established	2007
Business Registration No.	0305230350
Date of latest adjustment (4^th)	19 Jul 2012
Place of Registration	Business registration Office - Planning and Investment Department of Hochiminh City
Chartered capital	VND 20,000,000,000
Tax code	0305230350
Total Employees	70

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Chartered capital: VND 300,000,000 Changed to VND 3,500,000,000 Changed to: VND 20,000,000,000	19 Jul 2012
2	Subject has got former Business Registration No: 4102054608 issued on 05 Oct 2007 Changed to: 0305230350	-

ADDRESSES
Head Office
Address	206 Road 55, Tan Tao Ward, Binh Tan District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 6260 2014 - 3754 7303
Fax	(84-8) 6253 9734
Occupied Area	120m2
Land-use Right	Leased
Note: This location is also private house of subject’s director – Mr. Phan Van Sy.

DIRECTORS
1. NAME	Mr. PHAN VAN SY
Position	Director
Date of Birth	10 Apr 1967
ID Number/Passport	025052880
ID Issue Date	10 Nov 2008
ID Issue Place	Police Station of Hochiminh City
Resident	206 Road 55, Quarter 9, Tan Tao Ward, Binh Tan District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Qualification	Managing
2. NAME	Mr. DOAN KIM VAN
Position	Chief Accountant
ID Number/Passport	194085550
Resident	Phu Hoa, Phu Thuy, Le Thuy District, Quang Binh Province, Vietnam
Current resident	Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Email	doanvanact@gmail.com
Tel/Mobile phone	+84 937 433 111

BUSINESS NATURE AND ACTIVITIES

The subject registered in:
Wholesale of pesticides, fertilizers and agricultural chemicals
Wholesale of textiles, clothing, footwear
Wholesale of other household products
Wholesale of agricultural machinery, equipment and supplies
Retail sale of electrical household appliances, furniture and lighting equipment and other household articles n.e.c in specialized stores
Wholesale on a fee or contract basis
Wholesle of construction materials, installation supplies
Wholesale of waste and scrap and other products n.e.c
Restaurants and mobile food service activities
Manufacture of fertilizer and nitrogen compounds

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Market	China, India
· Mode of payment	L/C
EXPORT: N/A

BANKERS
1. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK
Address	8th Floor, VinCom Center, No. 72 Le Thanh Ton Street, District 1, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3821 0055
Fax	(84-8) 3829 6063
2. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE HOCHIMINH CITY BRANCH
Address	No.134 Nguyen Cong Tru Street, District 1, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3821 6827
Fax	(84-8) 3829 8862

SHAREHOLDERS
1. NAME	Mr. PHAN VAN SY
Position	Director
Date of Birth	10 Apr 1967
ID Number/Passport	025052880
Issued on	10 Nov 2008
Issued Place	Police Station of Hochiminh City
Resident	206 Road 55, Quarter 9, Tan Tao Ward, Binh Tan District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Value of shares	VND 19,900,000,000
Percentage	99.5%
2. NAME	Mr. DOAN KIM VAN
Position	Chief Accountant
ID Number/Passport	194085550
Resident	Phu Hoa, Phu Thuy, Le Thuy District, Quang Binh Province, Vietnam
Current Resident	Ho Chi Minh City, Vietnam
Mobile phone	+84 937 433 111
Nationality	Vietnamese
Value of shares	VND 100,000,000
Percentage	0.5%

FINANCIAL DATA
Revenue in 2012	VND 75,698,118,937
Profit after tax in 2012	VND 9,584,159,443
Revenue in 2011	VND 37,905,142,573
Profit after tax in 2011	VND 5,478,965,108

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Normal
Liquidity	N/A
Payment status	N/A
Financial Situation	Normal
Development trend	N/A
Litigation data	No Recorded
Bankruptcy	No Recorded
Payment Methods	Direct payment by cash or through its corresponding bank, LC
Sale Methods	Wholesaler
Public opinion	Normal

INTERPRETATION ON THE SCORES

The subject - NAM NONG CO., LTD was established in 2010.

The subject is also processing insecticides. It imports materials mainly from China and India, after that directly processing products and distributing to customers. Main market of the subject is in domestic, especially in the West and the Central of Vietnam.

Premises and facilities of the subject is average. The subject has office at No.206 Street No.55, Tan Tao Ward - Binh Tan District and a factory (leased) in Le Minh Xuan Industrial Park, Hochiminh City. Total workforce of the subject is about 70 persons now.

Its financial statement is not available. However, according to Mr. Doan Kim Van – subject’s chief accountant, its annual revenue and profit were increased high. Its revenue and profit in 2012 were VND 75,698,118,937 and VND 9,584,159,443, in 2011 were VND 37,905,142,573 and VND 5,478,965,108.

In overview, its business activities are effective. Its market share is stable. Its competitiveness is fair. It is reliable for small transactions. Caution needed with medium and big transactions to subject company.

------------ 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.54.44
UK Pound	1	Rs.81.33
Euro	1	Rs.70.50

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%)

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