IRA INFORM REPORT

Report Date :

25.11.2013

IDENTIFICATION DETAILS

Name :	QUANG NINH SEAPRODUCTS IMPORT EXPORT JSC
Registered Office :	35 Ben Tau St Bach Dang Ward, Ha Long, Quang Ninh
Country :	Vietnam
Financials (as on) :	December 2012
Date of Incorporation :	20.10.2011
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Exporting of Frozen Fish, Frozen Shrimps, Seafood, Squid, Frozen
No. of Employees :	220

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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 has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. 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 hurt Vietnam's export-oriented economy, with GDP in 2012 growing at 5%, the slowest rate of growth since 1999. In 2012, however, exports increased by more than 18%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the government shifted from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. Although Vietnam unveiled a broad, "three pillar" economic reform program in early 2012, proposing the restructuring of public investment, state-owned enterprises, and the banking sector, little perceptible progress had been made by early 2013. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some independent analysts believe it could be higher than 15%.

Source : CIA

REGISTERED NAME & COMPANY SUMMARY

Company Details

Organization Name	:	QUANG NINH SEAPRODUCTS IMPORT EXPORT JSC
Address	:	35 Ben Tau St Bach Dang Ward, Ha Long, Quang Ninh
Country	:	Vietnam
Phone (S)	:	[+84] 33-3829851
Facsimile	:	[+84] 33-3826683
Email	:	spef41.qn@hn.vnn.vn
Website	:	http://www.quangninhseaprodex.com.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Seafood & Fishing Industry

Key Facts

Registered Legal Address	:	35 Ben Tau St Bach Dang Ward, Ha Long, Quang Ninh
Operational Address	:	35 Ben Tau St Bach Dang Ward, Ha Long, Quang Ninh
Trading Name	:	QUANG NINH SEAPRODEX QUANGNINH SEAPRODUCTS IMPORT-EXPORT
Issuing Authority	:	Dept. of Planning & Investment - Quang Ninh
License Number	:	5700100714
License Status	:	License exists - Normal.
Legal Form - Category	:	Joint Stock Company
Legal Form	:	Joint Stock Company
Legal Form - Abbreviation	:	JSC
Operational Status of Business	:	Normal
Date of Registration	:	20 Oct, 2011
Employees	:	220
Capital	:	US$ 473,700

Report Details

Country	:	Vietnam
Business Entity Name	:	QUANG NINH SEAPRODUCTS IMPORT EXPORT JSC
Primary Business Activity	:	Manufacturer
Primary Industry	:	Seafood & Fishing Industry
Office Contact Details
Operating Address	:	35 Ben Tau St Bach Dang Ward, Ha Long, Quang Ninh
Tel	:	[+84] 33-3829851
	:	[+84] 33-3825190
	:	[+84] 33-3825196
Fax	:	[+84] 33-3826683
Email	:	spef41.qn@hn.vnn.vn
Website Details
Website	:	http://www.quangninhseaprodex.com.vn
Status	:	Normal - operational
Country of Registration	:	Vietnam
Ownership Type	:	Registered ownership by Subject Business Entity

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Chairman
Name	:	Mr. Do Quang Sang
Nationality	:	Vietnamese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Le Xuan Cau	Vietnamese	Vice Director	-
2	Ms. Ngo Thi Hoa	Vietnamese	Chief Accountant	-
3	Mr. Vu Quang Huy	Vietnamese	Vice Director	-
4	Mr. Nguyen Thuong Uyen	Vietnamese	Vice Director	-

Management Details - 1

Personal Unique Identifier	:	MI03565905
Name	:	Mr. Le Xuan Cau
Date of Birth	:	1951

Management Details - 2

Personal Unique Identifier	:	MI03565909
Name	:	Ms. Ngo Thi Hoa
Date of Birth	:	1977

Management Details - 3

Personal Unique Identifier	:	MI03565907
Name	:	Mr. Vu Quang Huy
Date of Birth	:	1957

Management Details - 4

Personal Unique Identifier	:	MI03565906
Name	:	Mr. Nguyen Thuong Uyen
Date of Birth	:	1972

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03565852
Name	:	Mr. Do Quang Sang
Date of Birth	:	1950
Nationality	:	Vietnamese

NEGATIVE INFORMATION

NEGA-SCAN - ADVERSE DATA MONITORING

DISHONORED CHECKS

No Record Found

DEBT	No Record Found

LITIGATION

No Record Found

PERFORMANCE DEFAULTS

No Record Found

ADVERSE LOCAL MEDIA COVERAGE / ADVERSE FILING HISTORY

No Record Found

SHARE & SHARE CAPITAL INFORMATION

CAPITAL (Currency: VND - Vietnam Dong)

Authorized Capital

:

10,000,000,000

SHAREHOLDERS

Total number of shareholders	:	n/a
Total number of shares	:	n/a

Currency

:

VND - Vietnam Dong

No.	Shareholders	Country	Shares
			Number	Amount (VND)	%
1	Undisclosed Shareholders	n/a	n/a	n/a	n/a
2	Mr. Chau Hoa	Vietnam	n/a	n/a	11.48
3	Mr. Do Quang Sang	Vietnam	n/a	n/a	9.08
4	Mr. Do Quang Huy	Vietnam	n/a	n/a	1.52
Total			n/a	n/a	22.08

Today's Exchange rate

:

1.00 VND Vietnam Dong

=

0.000047 USD United States Dollars

Based on corporate statutory laws / regulations in Vietnam, there is no requirement for public disclosure of Shareholders. In this case, the Shareholders information was supplied by the Subject Business Entity.
However in the absence of data normally obtained from local Statutory Authorities, it is not possible to verify the accuracy of data supplied and hence is provided as reference ONLY.

PAYMENT INFORMATION

International Trade - Statistics  (Currency: USD - US Dollar)

Year	Imports	Exports	Total
2010	n/a	5,037,891	5,037,891
2011	n/a	15,946,855	15,946,855
2012	n/a	20,352,193	20,352,193

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	50%
International Sales (Export)	50%

Annual Purchases Analysis	Percentage
Local Purchases	20%
Imports	80%

PAYMENT TERMS

Selling

Type	Terms
Local	Cash on delivery (COD) Credit - Secured with Post-dated checks 30~60 days
Export	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Received at time of transaction

Purchasing

Type	Terms
Local	Cash on delivery (COD) Credit - Secured with Post-dated checks 30~60 days
Import	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Executed at time of transaction

GROUP STRUCTURE & AFFILIATED COMPANIES

N/a

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2010 Annual	10,075,782	4,162,545	58,132
2011 Annual	31,893,711	5,218,051	46,759
2012 Annual	40,704,386	4,529,918	60,793

Sales Trend – Analysis

2003	2004	2005	2006	2007	2008	2009	2010	2011	2012
-	-	-	-	-	-	-	-

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2010 Annual	2011 Annual	2012 Annual
Current Assets	52,655,000,000	78,306,000,000	65,103,000,000
Non Current Assets	28,473,000,000	30,386,000,000	29,231,000,000
Non Current Liabilities	4,907,000,000	4,850,000,000	10,056,000,000
Other long term assets
Total Assets	81,128,000,000	108,692,000,000	94,334,000,000
Total Liabilities	70,841,000,000	98,230,000,000	80,939,000,000
Current Liabilities	65,934,000,000	93,380,000,000	70,883,000,000
Long term liabilities
Shareholders Funds	10,287,000,000	10,462,000,000	13,395,000,000
Assest
Current assets & short term investments	52,655,000,000	78,306,000,000	65,103,000,000
Cash & cash equivalents	1,065,000,000	2,502,000,000	2,384,000,000
Cash	1,065,000,000	2,502,000,000	2,384,000,000
Accounts receivable	6,816,000,000	26,845,000,000	20,306,000,000
Accounts receivable trade	3,188,000,000	22,318,000,000	11,589,000,000
Trade prepayment	3,120,000,000	4,019,000,000	4,079,000,000
Others receivables	508,000,000	508,000,000	4,638,000,000
Inventories	41,558,000,000	46,254,000,000	40,868,000,000
I. Other short term asset	3,216,000,000	2,705,000,000	1,545,000,000
Prepaid expenses	1,478,000,000	1,514,000,000	944,000,000
VAT deductible	205,000,000	111,000,000	107,000,000
Other tax receivables	42,000,000	84,000,000	-
II. Other short term asset	1,491,000,000	996,000,000	494,000,000
Long term assets	28,473,000,000	30,386,000,000	29,231,000,000
Fixed assets	27,210,000,000	28,669,000,000	27,560,000,000
Tangible fixed assets	25,979,000,000	26,185,000,000	27,196,000,000
I. Cost	46,573,000,000	48,142,000,000	50,787,000,000
I. Accumulated depreciation	20,594,000,000	21,957,000,000	23,591,000,000
Construction in progress	1,231,000,000	2,484,000,000	364,000,000
Investment immovable property	1,263,000,000	1,238,000,000	1,192,000,000
II. Cost	1,616,000,000	1,616,000,000	1,616,000,000
II. Accumulated depreciation	353,000,000	378,000,000	424,000,000
Other long term assets	-	479,000,000	479,000,000
Long term prepayments	-	479,000,000	479,000,000
Total assets	81,128,000,000	108,692,000,000	94,334,000,000
Liabilities	70,841,000,000	98,230,000,000	80,939,000,000
Current liabilities	65,934,000,000	93,380,000,000	70,883,000,000
Short term borrowings	40,101,000,000	49,751,000,000	49,000,000,000
Accounts payables-trade	12,117,000,000	9,883,000,000	4,466,000,000
Advances from customers	3,949,000,000	23,857,000,000	14,623,000,000
Taxes and payable to state budget	319,000,000	167,000,000	575,000,000
Payable to employees	575,000,000	910,000,000	1,202,000,000
Accrued expenses payable	252,000,000	308,000,000	-
Other payables	8,621,000,000	8,453,000,000	835,000,000
Provision for short term payable	-	51,000,000	-
I. Bonus and welfare funds	-	-	182,000,000
Long term liabilities	4,907,000,000	4,850,000,000	10,056,000,000
Long term other payables	-	-	10,000,000
Long term borrowings	4,850,000,000	4,850,000,000	-
Provision funds for unemployment	57,000,000	-	-
Deffered revenue	-	-	10,046,000,000
I. Owner's equity	10,287,000,000	10,462,000,000	13,395,000,000
II. Owner's equity	10,225,000,000	10,462,000,000	13,395,000,000
Business capital	10,018,000,000	10,018,000,000	10,018,000,000
Share capital's surplus	2,609,000,000	2,609,000,000	2,609,000,000
Shares	(4,642,000,000)	(4,631,000,000)	-
Business development funds	57,000,000	57,000,000	57,000,000
Financial reserved funds	391,000,000	391,000,000	391,000,000
Retained earnings	1,792,000,000	2,018,000,000	320,000,000
Budget sources	62,000,000	-	-
II. Bonus and welfare funds	62,000,000	-	-
Total resources	81,128,000,000	108,692,000,000	94,334,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2010 Annual	2011 Annual	2012 Annual
Turnover	196,377,000,000	664,346,000,000	847,655,000,000
Profit (Loss) Before Tax	1,511,000,000	1,265,000,000	1,535,000,000
Profit After Tax attributable to Shareholders	1,133,000,000	974,000,000	1,266,000,000
Gross sales	196,377,000,000	664,346,000,000	847,655,000,000
Less deductions	0	0	238,000,000
Net income	196,377,000,000	664,346,000,000	847,417,000,000
Cost of goods sold	182,603,000,000	631,417,000,000	821,630,000,000
Gross margin	13,774,000,000	32,929,000,000	25,787,000,000
Income from financial activities	28,000,000	45,000,000	61,000,000
Expenses from financial activities	4,917,000,000	7,663,000,000	8,010,000,000
In which: Interest expenses	4,917,000,000	0	0
Selling expenses	3,776,000,000	20,515,000,000	12,879,000,000
General & administration expenses	3,799,000,000	3,224,000,000	3,414,000,000
Net income from operating activities	1,310,000,000	1,572,000,000	1,545,000,000
Extraordinary income	313,000,000	75,000,000	63,000,000
Extraordinary expenses	112,000,000	382,000,000	73,000,000
Extraordinary gains	201,000,000	(307,000,000)	(10,000,000)
Net profit before tax	1,511,000,000	1,265,000,000	1,535,000,000
Income tax	378,000,000	291,000,000	269,000,000
Net profit after tax	1,133,000,000	974,000,000	1,266,000,000

Financial Ratios

Financial Highlights	2010 Annual	2011 Annual	2012 Annual
Growth %
Year-on-Year Growth	-	238.30	27.59
Profitability
Profit Margin (%)	0.58	0.15	0.15
Return on Equity (%)	11.01	9.31	9.45
Return on Assets (%)	1.40	0.90	1.34
Leverage
Total Debt Equity (Times)	6.89	9.39	6.04
Current Debt Equity (Times)	6.41	8.93	5.29
Long Term Debt to Equity	0.48	0.46	0.75
Total Asset To Total Equity	7.89	10.39	7.04
Asset Management
Total Assets Turnover (Times)	2.42	6.11	8.99
Fixed Assets Turnover (Times)	6.90	21.86	29.00
Liquidity
Current Ratio	0.80	0.84	0.92

Based on the corporate laws of Vietnam, legal entities which are Joint Stock Company are not required to make public disclosure of their annual financials. Although financials were obtained for reference.

FOREIGN EXCHANGE RATES

Today's Exchange rate

:

1.00 VND Vietnam Dong

=

0.000047 USD United States Dollars

ADDITIONAL INFORMATION

Primary Products

Products / Materials / Services Description	Activity
Frozen fish	Manufacturing, Exporting
Frozen shrimps	Manufacturing, Exporting
Seafood	Manufacturing, Exporting
Squid, frozen	Manufacturing, Exporting

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Business Svcs, NEC	7389	Service
Fish & Seafoods	5146	Manufacturing, Exporting
Fresh/Frozen Fish/Seafoods, NEC	2092	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Food preparations	2106	Service
Shrimps and prawns, prepared nesoi, frozen	1605201030	Manufacturing, Exporting
Squid fillets, frozen	0307490010	Manufacturing, Exporting

DETAILED PRODUCT CLASSIFICATION & ACTIVITY

Products / Materials / Services Description	Ranking	Activity
Food processing	Secondary	Service

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of QUANG NINH SEAPRODUCTS IMPORT EXPORT JSC is Manufacturing - Finished products.

Key products include :

· Frozen fish

· Frozen shrimps

· Seafood

· Squid, frozen

An integral part of the core business includes:

· Distribution

Supplementary Business

In addition to the core business, QUANG NINH SEAPRODUCTS IMPORT EXPORT JSC also is engaged in the following areas of business:

1. Exporting

· Exporting - Natural food items, Unprocessed (Meats, Produce or Seafood)

2. Importing

· Importing - Natural food items, Unprocessed (Meats, Produce or Seafood)

3. Service

· Specialized professional services

REPUTATION

Due to the recent incorporation of the QUANG NINH SEAPRODUCTS IMPORT EXPORT JSC, and the relatively small nature of its business, no meaningful points of reference in terms of reputation within the respective industry was possible.

BANK DETAILS

Bank Name	:	JOINT STOCK COMMERCIAL BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM
Global Identifier	:	32400483
Branch	:	Hoan Kiem Dist,Hanoi
Branch Address	:	194 Tran Quang Khai Hoan Kiem Dist Hanoi (Head Office)
SWIFT Code	:	BIDVVNVX
Bank Name	:	VIETNAM BANK FOR AGRICULTURE & RURAL DEVELOPMENT
Global Identifier	:	32408794
Branch	:	Tu Liem,Hanoi
Branch Address	:	18 Tran Huu Duc My Dinh Tu Liem Hanoi (Head Office)
SWIFT Code	:	VBAAVNVX

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
China	Medium	Exporting
Indonesia	Medium	Importing
Japan	Medium	Importing, Exporting

OFFICE & FACILITIES

Name	:	QUANG NINH SEAPRODUCTS IMPORT EXPORT JSC - HA LONG, QUANG NINH
Address	:	35 Ben Tau St Bach Dang Ward, Ha Long, Quang Ninh
Country	:	Vietnam
Status	:	Operational

COMPANY HISTORY

Date	Details
2000 - Aug	Incorporated to continue a government enterprise XI NGHIEP XUAT KHAU THUY SAN QUANG NINH which was originally established in 1983.

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
30 Aug, 2000	2203000764

NOTES & COMMENTS

N/a

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.02
UK Pound	1	Rs.102.04
Euro	1	Rs.84.91

INFORMATION DETAILS

Report Prepared by :

NLM

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.