MIRA INFORM REPORT

Report Date :

16.01.2014

IDENTIFICATION DETAILS

Name :	FARMTECH (VIETNAM) CO LTD
Registered Office :	Industrial Zone Lot IV-1 Ho Nai 3, Trang Bom Dist, Dong Nai
Country :	Vietnam
Financials (as on) :	2012
Date of Incorporation :	16.04.2008
Legal Form :	Private Company with Limited Liability
Line of Business :	Manufacturer of Agricultural Products
No. of Employees :	36

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 :	Slow but correct
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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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	:	FARMTECH (VIETNAM) CO LTD
Address	:	Industrial Zone Lot IV-1 Ho Nai 3, Trang Bom Dist, Dong Nai
Country	:	Vietnam
Phone (S)	:	[+84] 61-3988158
Facsimile	:	[+84] 61-3988159
Email	:	phuongd.ngoc@gmail.com
Primary Business Activity	:	Manufacturer
Key Industry	:	Agricultural Products

Key Facts

Registered Legal Address	:	Industrial Zone Lot IV-1 Ho Nai 3, Trang Bom Dist, Dong Nai
Operational Address	:	Industrial Zone Lot IV-1 Ho Nai 3, Trang Bom Dist, Dong Nai
Issuing Authority	:	Dept. of Planning & Investment - Dong Nai
License Number	:	472043000439
License Status	:	License exists - Normal.
Legal Form - Category	:	Private Company with Limited Liability
Legal Form	:	Company Limited
Legal Form - Abbreviation	:	CO LTD
Operational Status of Business	:	Normal
Date of Registration	:	16 Apr, 2008
Employees	:	36
Capital	:	US$ 2,000,000

Report Details

Country	:	Vietnam
Business Entity Name	:	FARMTECH (VIETNAM) CO LTD
Primary Business Activity	:	Manufacturer
Primary Industry	:	Agricultural Products
Office Contact Details
Operating Address	:	Industrial Zone Lot IV-1 Ho Nai 3, Trang Bom Dist, Dong Nai
Tel	:	[+84] 61-3988158
Fax	:	[+84] 61-3988159
Email	:	phuongd.ngoc@gmail.com
Tax / VAT Details
Tax Issuing Authority	:	Ministry of Finance
Local Name Used	:	Gia Trj Gia Tang (Value Added Tax)
Acronym	:	GTGT / VAT
GTGT / VAT Number	:	3600727836

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
2005	n/a

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Managing Director
Name	:	Mr. Chen Chi Ming
Nationality	:	Vietnamese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Dinh Ngoc Phuong	Vietnamese	Chief Accountant	-

Management Details - 1

Personal Unique Identifier	:	MI03610647
Name	:	Mr. Dinh Ngoc Phuong
Date of Birth	:	1985

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03610608
Name	:	Mr. Chen Chi Ming
Date of Birth	:	1962
Nationality	:	Vietnamese

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing the FARMTECH (VIETNAM) CO LTD's reputation within the respective industry failed to reveal any adverse 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: USD - US Dollar)

Authorized Capital

:

2,000,000

SHAREHOLDERS

Total number of shareholders	:	1
Total number of shares	:	n/a

No.	Shareholders	Country	Shares
			Number	Amount (USD)	%
1	FARMTECH CO LTD	Saint Vincent and the Grenadines	n/a	n/a	100.00
Total			n/a	n/a	100.00

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

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	100%

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

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

DIRECT / INDIRECT CORPORATE PARENT DETAILS

Direct Parent	:	FARMTECH CO LTD
Global Identifier	:	P2955911
Legal Form Category	:	Private Company with Limited Liability
Country	:	Saint Vincent and the Grenadines
Operational Address	:	Paul's Ave Kingstown
Primary Business Activity	:	Service

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2010 Annual	4,848,692	2,591,278	79,425
2011 Annual	3,932,837	2,365,338	-19,539
2012 Annual (*)	3,456,287	2,522,586	-145,837

Sales Trend – Analysis

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

Note: (*)

Financials listed are the most recent available for this company.

FINANCIAL STATEMENT – DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2010 Annual	2011 Annual	2012 Annual
Current Assets	28,778,000,000	28,884,000,000	34,408,000,000
Non Current Assets	21,726,000,000	20,386,000,000	18,124,000,000
Non Current Liabilities	12,628,000,000	12,642,000,000	12,642,000,000
Share Capital	28,051,000,000	28,051,000,000	28,051,000,000
Other long term assets
Total Assets	50,504,000,000	49,270,000,000	52,532,000,000
Total Liabilities	19,867,000,000	18,980,000,000	25,328,000,000
Current Liabilities	7,239,000,000	6,338,000,000	12,686,000,000
Long term liabilities
Shareholders Funds	30,637,000,000	30,290,000,000	27,204,000,000
Current assets & short term investments	28,778,000,000	28,884,000,000	34,408,000,000
Cash & cash equivalents	3,069,000,000	2,693,000,000	4,471,000,000
Cash	3,014,000,000	793,000,000	3,371,000,000
Cash equivalents	55,000,000	1,900,000,000	1,100,000,000
Accounts receivable	21,699,000,000	20,923,000,000	23,257,000,000
Accounts receivable trade	20,587,000,000	19,670,000,000	22,494,000,000
Trade prepayment	25,000,000	307,000,000	50,000,000
Others receivables	1,563,000,000	1,582,000,000	1,558,000,000
Provision for bad debts	(476,000,000)	(636,000,000)	(845,000,000)
Inventories	3,781,000,000	4,878,000,000	6,268,000,000
Other short term asset	229,000,000	390,000,000	412,000,000
Prepaid expenses	174,000,000	212,000,000	175,000,000
VAT deductible	54,000,000	124,000,000	183,000,000
Other tax receivables	1,000,000	54,000,000	54,000,000
Long term assets	21,726,000,000	20,386,000,000	18,124,000,000
Fixed assets	21,721,000,000	19,260,000,000	16,423,000,000
Tangible fixed assets	19,026,000,000	16,593,000,000	13,834,000,000
Cost	28,430,000,000	29,043,000,000	29,173,000,000
Accumulated depreciation	9,404,000,000	12,450,000,000	15,339,000,000
Intangible fixed assets	2,695,000,000	2,667,000,000	2,589,000,000
i. Cost	3,007,000,000	3,053,000,000	3,053,000,000
i. Accumulated depreciation	312,000,000	386,000,000	464,000,000
Other long term assets	5,000,000	1,126,000,000	1,701,000,000
Long term prepayments	-	1,119,000,000	1,695,000,000
i. Other long term assets	5,000,000	7,000,000	6,000,000
Total assets	50,504,000,000	49,270,000,000	52,532,000,000
Liabilities	19,867,000,000	18,980,000,000	25,328,000,000
Current liabilities	7,239,000,000	6,338,000,000	12,686,000,000
Short term borrowings	475,000,000	2,377,000,000	8,561,000,000
Accounts payables-trade	5,563,000,000	2,651,000,000	2,818,000,000
Advances from customers	67,000,000	3,000,000	1,000,000
Taxes and payable to state budget	5,000,000	2,000,000	6,000,000
Payable to employees	210,000,000	272,000,000	203,000,000
Accrued expenses payable	881,000,000	990,000,000	1,039,000,000
Other payables	38,000,000	43,000,000	58,000,000
Long term liabilities	12,628,000,000	12,642,000,000	12,642,000,000
Long term borrowings	12,628,000,000	12,642,000,000	12,642,000,000
Owner's equity	30,637,000,000	30,290,000,000	27,204,000,000
Business capital	28,051,000,000	28,051,000,000	28,051,000,000
Foreign exchange differences	7,000,000	14,000,000	-
Retained earnings	2,579,000,000	2,225,000,000	(847,000,000)
Total resources	50,504,000,000	49,270,000,000	52,532,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2010 Annual	2011 Annual	2012 Annual
Turnover	94,501,000,000	81,921,000,000	71,976,000,000
Profit (Loss) Before Tax	1,602,000,000	(407,000,000)	(3,037,000,000)
Profit After Tax attributable to Shareholders	1,548,000,000	(407,000,000)	(3,037,000,000)
Gross sales	94,501,000,000	81,921,000,000	71,976,000,000
Less deductions	623,000,000	515,000,000	386,000,000
Net income	93,878,000,000	81,406,000,000	71,590,000,000
Cost of goods sold	84,628,000,000	73,691,000,000	67,934,000,000
Gross margin	9,250,000,000	7,715,000,000	3,656,000,000
Income from financial activities	212,000,000	160,000,000	204,000,000
Expenses from financial activities	3,092,000,000	3,040,000,000	1,731,000,000
In which: Interest expenses	0	0	1,683,000,000
Selling expenses	1,328,000,000	1,546,000,000	1,060,000,000
General & administration expenses	3,461,000,000	3,710,000,000	4,026,000,000
Net income from operating activities	1,581,000,000	(421,000,000)	(2,957,000,000)
Extraordinary income	26,000,000	15,000,000	118,000,000
Extraordinary expenses	5,000,000	1,000,000	198,000,000
Extraordinary gains	21,000,000	14,000,000	(80,000,000)
Net profit before tax	1,602,000,000	(407,000,000)	(3,037,000,000)
Income tax	54,000,000	0	0
Net profit after tax	1,548,000,000	(407,000,000)	(3,037,000,000)

Financial Ratios

Financial Highlights	2010 Annual	2011 Annual	2012 Annual
Growth %
Year-on-Year Growth	-	(13.31)	(12.14)
Profitability
Profit Margin (%)	1.64	(0.50)	(4.22)
Return on Equity (%)	5.05	(1.34)	(11.16)
Return on Assets (%)	3.07	(0.83)	(5.78)
Leverage
Total Debt Equity (Times)	0.65	0.63	0.93
Current Debt Equity (Times)	0.24	0.21	0.47
Long Term Debt to Equity	0.41	0.42	0.46
Total Asset To Total Equity	1.65	1.63	1.93
Asset Management
Total Assets Turnover (Times)	1.87	1.66	1.37
Fixed Assets Turnover (Times)	4.35	4.02	3.97
Liquidity
Current Ratio	3.98	4.56	2.71

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

FOREIGN EXCHANGE RATES

N/a

ADDITIONAL INFORMATION

Primary Products

Products / Materials / Services Description	Activity
Animal feed	Manufacturing

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Prepared feeds, nspf	2048	Manufacturing

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Preparations used in animal feeding	2309	Manufacturing

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of FARMTECH (VIETNAM) CO LTD is Manufacturing - Finished products.

Key product include:

Animal feed

An integral part of the core business includes:

Distribution

Supplementary Business

In addition to the core business, FARMTECH (VIETNAM) CO LTD also is engaged in the following areas of business:

Importing

Importing - Raw materials

BANK DETAILS

Bank Name	:	INDOVINA BANK LTD
Global Identifier	:	32404053
Branch	:	District 1,Ho Chi Minh
Branch Address	:	INDOVINA BANK LTD - DONG NAI
SWIFT Code	:	IABBVNVX

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing
India	Medium	Importing
Taiwan	Medium	Importing

OFFICE & FACILITIES

Name	:	FARMTECH (VIETNAM) CO LTD - TRANG BOM DIST, DONG NAI
Address	:	Industrial Zone Lot IV-1 Ho Nai 3, Trang Bom Dist, Dong Nai
Country	:	Vietnam
Status	:	Operational

NOTES & COMMENTS

N/a

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.59
UK Pound	1	Rs.101.09
Euro	1	Rs.83.99

INFORMATION DETAILS

Report Prepared by :

NIS

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.