MIRA INFORM REPORT

Report Date :

16.03.2013

IDENTIFICATION DETAILS

Correct Name :	BINH THUAN FRUITS AND GREENS, CO
Registered Office :	Lot 2 Phong Nam Resettlement Area, Dang Van Lanh Str., Phu Tai Ward, Phan Thiet City, Binh Thuan Province
Country :	Vietnam
Financials (as on) :	31.12.2011
Year of Establishments:	2000
Com. Reg. No.:	3400351590
Legal Form :	Sole proprietorship
Line of Business :	subject specializes in purchasing, processing, packaging, importing and exporting agricultural products
No. of Employees :	200

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 (31.03.2012)	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
Current legal status
Registered English Name	BINH THUAN FRUITS AND GREENS, CO
Registered Vietnamese Name	DOANH NGHIEP TN RAU QUA BINH THUAN
Registered Short name	FRUITS AND GREENS., CO
Type of Business	Sole proprietorship
Year Established	2000
Business Registration No.	3400351590
Date of latest adjustment	11 Nov 2012
Place of Registration	Business Registration Office - Planning and Investment Department of Binh Thuan Province
Chartered capital	VND 50,000,000,000
Tax code	3400351590
Total Employees	200

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Chartered capital: VND 2,000,000,000 Changed to VND 10,000,000,000 (29 March 2010) Changed to: VND 50,000,000,000	11 Nov 2012
2	Subject has got former Business Registration No: 4801000348 (dated on June 5th, 2000) Changed to: 3400351590	-

Company ADDRESSES
Head Office
Address	Lot 2 Phong Nam Resettlement Area, Dang Van Lanh Str., Phu Tai Ward, Phan Thiet City, Binh Thuan Province, Vietnam
Telephone	(84-62) 2210 779 - 3932 446
Fax	(84-62) 3823 062 – 3823 731
Email	foodsandgreens@hcm.vnn.vn; fruitandgreen@gmail.com
Website	www.fruitsandgreens.com
Branch in Ho Chi Minh
Address	No. 137/31 Tran Dinh Xu Street, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3838 8394
Fax	(84-8) 3838 8394
Branch in Ha Noi
Address	No. 104A Yen Phu Street, Nguyen Trung Truc Ward, Ba Dinh District, Ha Noi City, Vietnam

DIRECTORS
1. NAME	Ms. DO THI MINH TUYEN
Position	Director
Date of Birth	20 Apr 1971
ID Number/Passport	261013927
ID Issue Date	04 Jun 2002
ID Issue Place	Police Station of Binh Thuan Province
Resident	Xuan Hai Hamlet, Phu Tai Ward, Phan Thiet City, Binh Thuan Province, Vietnam
Current resident	Lot 2, Phong Nam Re-settlement Area, Dang Van Lanh Str., Phu Tai Ward, Phan Thiet City, Binh Thuan Province, Vietnam
Nationality	Vietnamese
Qualification	Management
2. NAME	Mr. VO HUY HOANG
Position	Vice Director
Date of Birth	1966
Current resident	Lot. 2 - Phong Nam re-settlement area - Dang Van Lanh Str - Phu Tai Ward, Phan Thiet City, Binh Thuan Province, Vietnam
Nationality	Vietnamese
Qualification	Management
Tel/Mobile phone	+84 913 932 446
3. NAME	Mr. NGUYEN VAN PHUC
Position	Chief Accountant
Resident	Binh Thuan Province, Vietnam
Nationality	Vietnamese
Qualification	Bachelor
Tel/Mobile phone	+84 903 758 507

BUSINESS NATURE AND ACTIVITIES

The subject specializes in purchasing, processing, packaging, importing and exporting agricultural products.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Fruit
· Market	USA, China, South Africa, Australia, New Zealand...
· Mode of payment	L/C, T/T
EXPORT:
· Types of products	Kinds of fruit (sweet potato and dragon fruit)
· Market	Malaysia, Singapore, Taiwan, Hong Kong, Indonesia, China
· Mode of payment	L/C, T/T

BANKERS
1. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE BINH THUAN BRANCH
Address	No.02 Nguyen Tat Thanh, Phan Thiet City, Binh Thuan Province, Vietnam
Telephone	(84-62) 3828 079
2. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM BINH THUAN BRANCH
Address	No.286A Tran Hung Dao Street, Phan Thiet City, Binh Thuan Province, Vietnam
Telephone	(84-62) 3821 058
3. VIETNAM BANK FOR AGRICULTURAL AND RURAL DEVELOPMENT (AGRIBANK) BINH THUAN BRANCH
Address	7 Tran Quoc Toan Str, Phan Thiet City, Binh Thuan Province, Vietnam
Telephone	(84-62) 3815 524
Fax	(84-62) 3815 522

SHAREHOLDERS
NAME	Ms. DO THI MINH TUYEN
Position	Director
Date of Birth	20 Apr 1971
ID Number/Passport	261013927
Issued on	04 Jun 2002
Issued Place	Police Station of Binh Thuan Province
Resident	Xuan Hai Hamlet Phu Tai Ward, Phan Thiet City, Binh Thuan Province, Vietnam
Current Resident	Lot 2, Phong Nam Re-settlement Area Dang Van Lanh Str., Phu Tai Ward, Phan Thiet City, Binh Thuan Province, Vietnam
Nationality	Vietnamese
Qualification	Management
Value of shares	VND 50,000,000,000
Percentage	100%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010	31/12/2009
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	79,404,010,197	70,405,843,592	74,547,922,803
I. Cash and cash equivalents	845,837,023	1,977,919,426	308,719,986
1. Cash	845,837,023	1,977,919,426	308,719,986
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	53,324,290,930	60,207,066,738	24,474,402,203
1. Receivable from customers	53,022,945,016	21,031,531,840	2,627,932,844
2. Prepayments to suppliers	0	38,613,613,024	21,663,205,138
3. Inter-company receivable	14,479,914	2,467,187	3,538,482
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	286,866,000	559,454,687	179,725,739
6. Provisions for bad debts	0	0	0
IV. Inventories	25,147,813,771	7,843,897,494	49,193,485,101
1. Inventories	25,147,813,771	7,843,897,494	49,193,485,101
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	86,068,473	376,959,934	571,315,513
1. Short-term prepaid expenses	0	56,852,934	334,108,188
2. VAT to be deducted	0	0	0
3. Taxes and other accounts receivable from the State	0	0	0
4. Other current assets	86,068,473	320,107,000	237,207,325
B. LONG-TERM ASSETS	12,807,861,588	9,088,459,885	7,570,726,200
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	12,807,861,588	8,833,223,521	6,932,635,291
1. Tangible assets	10,915,747,342	6,941,109,275	3,553,932,528
- Historical costs	13,346,019,455	8,705,273,588	4,750,332,071
- Accumulated depreciation	-2,430,272,113	-1,764,164,313	-1,196,399,543
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	1,892,114,246	1,892,114,246	3,378,702,763
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	0	0	0
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	0	0
3. Other long-term investments	0	0	0
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	0	255,236,364	638,090,909
1. Long-term prepaid expenses	0	255,236,364	638,090,909
2. Deferred income tax assets	0	0	0
3. Other long-term assets	0	0	0
VI. Goodwill		0	0
1. Goodwill		0	0
TOTAL ASSETS	92,211,871,785	79,494,303,477	82,118,649,003
LIABILITIES
A- LIABILITIES	77,971,693,406	67,384,879,264	71,468,681,317
I. Current liabilities	77,191,693,406	64,644,879,264	70,168,681,317
1. Short-term debts and loans	73,871,188,709	56,405,000,000	46,767,000,000
2. Payable to suppliers	2,256,776,416	5,873,092,740	8,573,240,270
3. Advances from customers	0	1,591,239,340	4,849,121,669
4. Taxes and other obligations to the State Budget	1,042,146,471	518,947,184	317,188,144
5. Payable to employees	0	0	0
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	21,581,810	256,600,000	9,662,131,234
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	780,000,000	2,740,000,000	1,300,000,000
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	0	0	0
4. Long-term debts and loans	780,000,000	2,740,000,000	1,300,000,000
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
9. Science and technology development fund
B- OWNER’S EQUITY	14,240,178,379	12,109,424,213	10,649,967,686
I. OWNER’S EQUITY	14,240,178,379	12,109,424,213	10,649,967,686
1. Capital	10,000,000,000	10,000,000,000	10,000,000,000
2. Share premiums	0	0	0
3. Other sources of capital	0	0	0
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	0	0	0
7. Business promotion fund	0	0	0
8. Financial reserved fund	0	0	0
9. Other funds	0	0	0
10. Retained earnings	4,240,178,379	2,109,424,213	649,967,686
11. Construction investment fund	0	0	0
12. Business arrangement supporting fund	0	0	0
II. Other sources and funds	0	0	0
1. Bonus and welfare funds	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	92,211,871,785	79,494,303,477	82,118,649,003

PROFIT & LOSS STATEMENT
Description	FY2011	FY2010	FY2009
1. Total Sales	323,073,303,922	253,232,166,637	131,103,398,006
2. Deduction item	5,956,493,344	0	0
3. Net revenue	317,116,810,578	253,232,166,637	131,103,398,006
4. Costs of goods sold	243,087,933,667	197,878,705,337	103,670,132,597
5. Gross profit	74,028,876,911	55,353,461,300	27,433,265,409
6. Financial income	3,928,167,610	2,932,222,933	14,747,858
7. Financial expenses	2,638,693,664	1,452,544,574	1,230,722,271
- In which: Loan interest expenses	2,638,693,664	1,452,544,574	-
8. Selling expenses	65,929,957,046	50,738,126,156	23,692,841,159
9. Administrative overheads	6,541,878,087	4,327,662,912	2,044,369,257
10. Net operating profit	2,846,515,724	1,767,350,591	480,080,580
11. Other income	0	60,454,545	110,000,000
12. Other expenses	250,389,463	26,600,000	256,912,500
13. Other profit /(loss)	-250,389,463	33,854,545	-146,912,500
14. Total accounting profit before tax	2,596,126,261	1,801,205,136	333,168,080
15. Current corporate income tax	454,322,095	450,301,284	93,287,062
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	2,141,804,166	1,350,903,852	239,881,018

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	1.03	1.09	1.06	1.29
Quick liquidity ratio	0.70	0.97	0.36	0.90
Inventory circle	9.67	6.94	2.11	16.60
Average receive period	61.38	86.78	68.14	61.82
Utilizing asset performance	3.44	3.19	1.60	2.31
Liability by total assets	84.56	84.77	87.03	66.08
Liability by owner's equity	547.55	556.47	671.07	252.07
Ebit / Total assets (ROA)	5.68	4.09	0.41	6.85
Ebit / Owner's equity (ROE)	36.76	26.87	3.13	25.35
Ebit / Total revenue (NPM)	1.62	1.28	0.25	4.35
Gross profit / Total revenue (GPM)	22.91	21.86	20.92	8.03
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CASH FLOW STATEMENT
(Indirect method)
Items	FY2010	FY2009
I. Cash flows from operating activities
1. Profit before tax	1,801,205,136	333,168,080
2. Adjustments
- Depreciation and amortization	-674,164,770	-364,384,098
- Provisions
- Unrealized foreign exchange difference
- Gain/loss from investing activities
- Interest expense
3. Operating profit before movements in working capital	1,127,040,366	-31,216,018
- (Increase)/Decrease in receivables	-21,944,865,793	-2,692,134,288
- (Increase)/Decrease in inventories	41,349,587,607	-38,399,404,923
- Increase/(Decrease) in accounts payable	-29,032,500,470	-10,415,730,727
- (Increase)/Decrease in prepaid expenses	660,109,799	57,436,196
- Interest paid
- Corporate income tax paid	-133,992,854	-11,346,240
- Other cash inflows	22,810,139,258	9,342,165,738
- Other cash outflows
Net cash from (used in) operating activities	14,835,517,913	-42,150,230,262
II. Cash flows from investing activities
1. Acquisition of fixed assets and other long - term assets	-15,287,273	-701,274,000
2. Proceeds from fixed assets and long - term assets disposal
3. Cash outflow for lending, buying debt instruments of other companies
4. Cash recovered from lending, selling debt instruments of other companies
5. Investment in other entities
6. Cash recovered from investments in other entities
7. Interest income, dividend and profit paid
Net cash from (used in) investing activities	-15,287,273	-701,274,000
III. Cash flows from financing activities
1. Proceeds from issuing stocks, receiving capital from owners	8,000,000,000	0
2. Capital withdrawal, buying back issued stocks
3. Proceeds from borrowings	13,732,304,994	62,598,804,163
4. Repayment of borrowings	-34,883,336,194	-22,912,481,926
5. Repayment of obligations under finance leased
6. Dividends paid
Net cash from (used in) financing activities	-13,151,031,200	39,686,322,237
Net increase/(decrease) in cash and cash equivalents	1,669,199,440	-3,165,182,025
Cash and cash equivalents at beginning of year	308,719,986	3,473,902,011
Effect from changing foreign exchange rate
Cash and cash equivalents at end of year	1,977,919,426	308,719,986

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Fair
Liquidity	Low/Medium
Payment status	Normal
Financial Situation	Average
Development trend	Uptrend
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C, T/T
Sale Methods	Retailer and Wholesaler

INTERPRETATION ON THE SCORES

BINH THUAN FRUITS AND GREENS, CO was established in 2000 as a private enterprise in Binh Thuan province. Currently, it is running under the business registration No. 3400351590. Its chartered capital has just been increased from VND 10 billion to VND 50 billion and it also has opened an extra one branch in Hanoi City.

The subject's main activities are importing, processing, packaging and exporting of fruit. Now, the subject has 50 official employees. It also employed about 150 to 200 season workers. Its products are imported from USA, China, Australia, and South Africa… and exported to many countries such as Malaysia, Singapore, Taiwan, Hong Kong, Indonesia, China, etc. According to the subject, its main export product is dragon fruit, occupying about 80-90% of its total export value.

After over a decade of operation, the subject achieved awards such as Reliable Exporter in years: 2004, 2005, 2006, 2008, 2009 by Ministry of Industry and Trade of Vietnam; Excellent Exporter in 2009 by Vietnam Association of Small and Medium Enterprises (VINASME). It was issued Global Gap and HACCP certificate. Currently, it is building brand "ROYAL DIAMOND" for dragon fruit and sweet potato.

Financially, total sales and profit after tax of the subject were fair and increased continuously from 2008 to 2011. This shows that, the subject's business activities are relatively stable and effective. However, the subject's solvency seems normal. The subject's liquidity ratios were a bit lower than the average industry and its debt rate always were higher than the average industry. The main cause of this was the subject's liabilities were large. The subject's liquidity ratios and debt rate reflect that, the subject’s liquidity was somewhat limited and its capital structure was not also very safe. But, in November 2012, the subject increased its capital from VND 10 billion to VND 50 billion, like this, its debt rate can be improved.

Following chart shows total sales and profit after tax of the subject from 2008 to 2011:

According to Mr. Nguyen Van Phuc - chief accountant of subject, revenue in 2012 increased about 20% compared to 2011. However, he also shared that its profit in 2012 was lower than 2011.

In general, subject is a medium enterprise in the industry. Its future seems bright. In our opinion, it has capacity to meet small financial commitments.

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.54.16
UK Pound	1	Rs.81.74
Euro	1	Rs.70.50

INFORMATION DETAILS

Report Prepared by :

MNL

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.