MIRA INFORM REPORT

Report Date :

31.10.2013

IDENTIFICATION DETAILS

Name :	A&Q GENERAL TRADING COMPANY LIMITED

Registered Office :	No. 66, Ngan Son Street, Group 5, Vinh Trai Ward, Lang Son City, Lang Son Province

Country :	Vietnam

Financials (as on) :	31.12.2011

Date of Incorporation :	26.04.2010

Com. Reg. No.:	4900528181

Legal Form :	Limited liability company

Line of Business :	The subject acts as consignee and trust import-export agent. Therefore, products are various including frozen food, dried food, cereal, agricultural products, fruits, vegetables, salmon.

No. of Employees :	50

RATING & COMMENTS

MIRA’s Rating :

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 – March, 31^st,2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Vietnam

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

SUBJECT IDENTIFICATION & LEGAL FORM

English Name		A&Q GENERAL TRADING COMPANY LIMITED
Vietnamese Name		CONG TY TNHH KINH DOANH THUONG MAI TONG HOP A&Q
Short name		A&Q GT CO.,LTD
Type of Business		Limited liability company
Year Established		2010
Business Registration No.		4900528181
Date of Registration		26 Apr 2010
Place of Registration		Planning and Investment Department of Lang Son Province
Chartered capital		VND 3,000,000,000
Status		Unlisted
Tax code		4900528181
Total Employees		50
Size		Small

ADDRESSES

Head Office
Address		No. 66, Ngan Son Street, Group 5, Vinh Trai Ward, Lang Son City, Lang Son Province, Vietnam
Telephone		(84-25) 3870 381
Fax		(84-25) 3870 381
Email		duyhungtanthanh@gmail.com

Transaction office in Ha Noi
Address		Rm. D2, 6th Fl, No. 713, Lac Long Quan Street , Tay Ho District, Ha Noi City, Vietnam

Transaction office in Hai Phong
Address		Vo Thi Sau Street , Ngo Quyen District, Hai Phong City, Vietnam

DIRECTORS

1. NAME		Mr. NGUYEN ANH QUAN
Position		Director
Date of Birth		21 May 1959
ID Number/Passport		080680375
ID Issue Date		04 Mar 1999
ID Issue Place		Police Station of Lang Son
Resident		No. 66, Ngan Son Street, Group 5, Vinh Trai ward , Lang Son City, Lang Son Province, Vietnam
Nationality		Vietnam
Tel/Mobile phone		(84-25) 3870381

2. NAME		Mr. NGUYEN DUY HUNG
Position		Deputy Director
ID Number/Passport		081037682
Resident		Cement factory Collective, Mai Pha Commune, Lang Son City, Lang Son Province, Vietnam
Nationality		Vietnam
Tel/Mobile phone		(84) 984422888

3. NAME		Ms. TRINH THI THAO
Position		Chief Accountant
Nationality		Vietnamese
Tel/Mobile phone		(84) 988 129 181

BUSINESS NATURE AND ACTIVITIES

The subject acts as consignee and trust import-export agent. Therefore, products are various including frozen food, dried food, cereal, agricultural products, fruits, vegetables, salmon.

IMPORT & EXPORT ACTIVITIES

IMPORT:
Types of products		Agricultural products, frozen food, fruits
Market		China, India, Norway

EXPORT:
Types of products		Fruits, onion, garlic, frozen food
Market		Cambodia, Laos, China

BANKERS

1. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE LANG SON BRANCH
Address		No.51 Le Loi str, Lang Son City, Lang Son Province, Vietnam
Telephone		(84-25) 3876689

2. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK LANG SON BRANCH
Address		No.54 Tran Dang Ninh, Hoang Van Thu ward, Lang Son City, Lang Son Province, Vietnam
Telephone		(84-25) 3713968
Fax		(84-25) 3713966

3. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK BA TRIEU BRANCH
Address		348 Pho Hue, Hai Ba Trung District, Ha Noi City, Vietnam

4. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT BAC SON BRANCH
Address		Luong Van Chi Zone Bac Son Town, Bac Son District, Lang Son Province, Vietnam

SHAREHOLDERS

1. NAME		Mr. NGUYEN ANH QUAN
Position		Director
Date of Birth		21 May 1959
ID Number/Passport		080680375
Issued on		04 Mar 1999
Issued Place		Police Station of Lang Son
Resident		No. 66, Ngan Son Street, Group 5, Vinh Trai ward , Lang Son City, Lang Son Province, Vietnam
Home phone		(84-25) 3870381
Nationality		Vietnam
Value of shares		VND 2,700,000,000
Percentage		90%

2. NAME		Mr. NGUYEN DUY HUNG
Position		Deputy Director
ID Number/Passport		081037682
Resident		Cement factory Collective, Mai Pha Commune , Lang Son City, Lang Son Province, Vietnam
Mobile phone		+84 984422888
Nationality		Vietnam
Value of shares		VND 300,000,000
Percentage		10%

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	267,928,438,089	169,238,023,341
I. Cash and cash equivalents	13,117,432,499	3,968,597,268
1. Cash	13,117,432,499	3,968,597,268
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	256,093,151,467	165,232,757,684
1. Receivable from customers	255,963,945,182	165,103,551,400
2. Prepayments to suppliers	1	0
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	129,206,284	129,206,284
6. Provisions for bad debts
IV. Inventories	-1,282,145,877	36,668,389
1. Inventories	-1,282,145,877	36,668,389
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	0	0
1. Short-term prepaid expenses	0	0
2. VAT to be deducted	0	0
3. Taxes and other accounts receivable from the State	0	0
4. Other current assets	0	0
B. LONG-TERM ASSETS	38,500,000	38,500,000
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	38,500,000	38,500,000
1. Tangible assets	38,500,000	38,500,000
- Historical costs	38,500,000	38,500,000
- 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	267,966,938,089	169,276,523,341

LIABILITIES
A- LIABILITIES	264,937,688,089	166,246,730,716
I. Current liabilities	265,822,436,125	166,246,730,716
1. Short-term debts and loans	33,530,128,179	0
2. Payable to suppliers	229,782,444,802	164,918,031,614
3. Advances from customers	0	0
4. Taxes and other obligations to the State Budget	2,509,863,144	1,328,699,102
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
II. Long-Term Liabilities	-884,748,036
1. Long-term accounts payable to suppliers	0	0
2. Long-term inter-company payable	0	0
3. Other long-term payable	-884,748,036	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	3,029,250,000	3,029,792,625
I. OWNER’S EQUITY	3,029,250,000	3,029,792,625
1. Capital	3,000,000,000	3,000,000,000
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	29,250,000	29,792,625
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	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	267,966,938,089	169,276,523,341

PROFIT & LOSS STATEMENT

Description	FY2011	FY2010
1. Total Sales	285,892,170,752	172,879,992,000
2. Deduction item	0	0
3. Net revenue	285,892,170,752	172,879,992,000
4. Costs of goods sold	285,415,903,630	172,677,632,649
5. Gross profit	476,267,122	202,359,351
6. Financial income	6,601,328	872,819
7. Financial expenses	0	0
- In which: Loan interest expenses	0	0
8. Selling expenses	0	0
9. Administrative overheads	443,868,450	163,508,670
10. Net operating profit	39,000,000	39,723,500
11. Other income	0	0
12. Other expenses	0	0
13. Other profit /(loss)	0	0
14. Total accounting profit before tax	39,000,000	39,723,500
15. Current corporate income tax	9,750,000	9,930,875
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	29,250,000	29,792,625

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2011	FY2010	Average Industry
Current liquidity ratio	1.01	1.02	1.25
Quick liquidity ratio	1.01	1.02	0.71
Inventory circle	-458.32	4,709.17	20.29
Average receive period	326.96	348.85	61.81
Utilizing asset performance	1.07	1.02	2.53
Liability by total assets	98.87	98.21	69.15
Liability by owner's equity	8,745.98	5,487.07	261.12
Ebit / Total assets (ROA)	0.01	0.02	9.66
Ebit / Owner's equity (ROE)	1.29	1.31	41.58
Ebit / Total revenue (NPM)	0.01	0.02	4.49
Gross profit / Total revenue (GPM)	0.17	0.12	9.69
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Fair
Liquidity		Medium
Payment status		Normal
Financial Situation		Normal
Development trend		Developing
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		Through its bank, T/T, L/C
Sale Methods		To contracts
Public opinion		Good

INTERPRETATION ON THE SCORES

A&Q GT CO.,LTD is two member limited liability company, including Mr. Nguyen Anh Quan – director holding 90% of the capital and Mr. Nguyen Duy Hung - deputy director holding the remaining. As a trading company, the subject's chartered capital is VND 3 billion and total employees are about 50 people.

Started operation in 2010, the main business activities of the subject are import-export and trading agricultural products, frozen food and fruit. Currently, the subject mainly imports fruits from China, frozen seafood from Norway and Australia, cereal from India then wholesale in domestic market. Besides, it re-exports imported frozen seafood to China.

Head office of the subject locates at No. 66, Ngan Son Street, Group 5, Vinh Trai Ward, Lang Son Province. This is also private house of Mr. Nguyen Anh Quan. Besides, the subject has two transaction offices in Hanoi and Hai Phong city.

Financially, the financial situation of the subject is considered normal. Total assets were 268 billion VND in 2011, rose by 58.3% compared with 2010. With the humble capital, the subject's assets financed mainly by liabilities. Liability occupied over 90% in total assets. This shows that its self-financing is weak and not safe for creditors. In 2011, although total sales of the subject increased, valued at VND 286 billion, up 65.4% against 2010, profit after tax reduced slightly. Most of financial ratios were not good and risky in relation to the average industry.

In short, the subject is small company that has operated as a family business. Its business activities seem busy now. To be safe, please caution for medium and big transactions with the subject.

INDUSTRY DATA

Industry code	GDP growth speed by price compared with 1994 (%)		Total enterprises 2010		Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
	2012	2011
Agriculture, Forestry and Fishing	2.72	4.00	8,887		24,362.9	95,227
Industry and Construction	4.52	5.53	95,217		10,718.9	3,641,376
Trade and Services	6.42	6.69	187,195		15,270.2	6,957,082

ECONOMIC INDICATORS

			2012	2011		2010
Population (Million person)			88.78	87.84		86.93
Gross Domestic Products (USD billion)			136	119		102.2
GDP Growth (%)			5.03	5.89		6.78
GDP Per Capita (USD/person/year)			1,540	1,300		1,160
Inflation (% Change in Composite CPI)			9.21	18.58		11.75
State Budget Deficit compared with GDP (%)			4.8	4.9		5.8

SERVICE TRADE PERFORMANCE

Billion USD			2012	2011		2010
Exports			114.6	96.3		72.2
Imports			114.3	105.8		84.8
Trade Balance			0.3	-9.5		-12.6

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.48
UK Pound	1	Rs.98.70
Euro	1	Rs.84.48

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%)

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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.