MIRA INFORM REPORT

Report Date :

10^th March, 2007

IDENTIFICATION DETAILS

Name :	LATEK (VIETNAM) LEATHER MANUFACTURE COMPANY LIMITED
Registered Office :	Lot 36-38-40, Linh Trung Export Processing Zone, Thu Duc Dist, Ho Chi Minh City
Country :	Viet Nam
Financials (as on) :	31.12.2005
Date of Incorporation :	1996
Legal Form :	Foreign Invested Enterprise
Line of Business :	Engaged in manufacturing leather shoes.

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 :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM

English Name	LATEK (VIETNAM) LEATHER MANUFACTURE COMPANY LIMITED
Vietnamese name	CONG TY TNHH HANG DA LATEK VN
Trade Name	LATEK (VN) LEATHER MANUFACTURE CO., LTD
Type of Business	100% foreign invested enterprise
Founded	1996
Investment license	No. 86/GP-KCX-HCM
Issued on	May 02^nd 1996
Issued by	Planning and Investment Department of Hochiminh City
Legal capital	1,000,000 USD
Investment capital	2,000,000 USD
Tax Code	0300674641
Total Employees	2,300 employees
Qualification	Normal

ADDRESS

Head Office
Address	Lot 36-38-40, Linh Trung Export Processing Zone, Thu Duc Dist, Ho Chi Minh City
Country	Vietnam
Tel	(84-8) 8969408, 8969409, 8969410
Fax	(84-8) 8966853
Email	latexvn@hcm.vnn.vn

DIRECTORS

1. NAME	Mr. CHEN TSUN
Position	General Director
Resident	Ho Chi Minh City
Nationality	Taiwanese
2. NAME	Mr. WANG WEN HU
Position	Legal representative person
Resident	Ho Chi Minh City
Nationality	Taiwanese

BUSINESS NATURE AND ACTIVITIES

The subject registered in manufacturing leather shoes.

IMPORT & EXPORT ACTIVITIES

IMPORT: The subject imports materials and equipment from Taiwan, Hong Kong, Korea and EU

EXPORT: The subject’s products are export to EU, Canada and USA

BANKERS

1. MEGA INTERNATIONAL COMERCIAL BANK KEELUNG BRANCH (FORMERLY ICBC KEELUNG BRANCH)
Address	No.24, Nan-jung Rd., Keelung City 20045, Taiwan
Tel	02-24228558
Fax	02-24294089
Swift	ICBCTWTP049
Website	www.megabank.com.tw
2. MEGA INTERNATIONAL COMMERCIAL BANK OF CHINA- HO CHI MINH CITY BRANCH (formerly ICBC Ho Chi Minh city Branch)
Adresse	1st Fl., Land Mark Building, No. 5B Ton Duc Thang Str, Ben Nghe Ward, Dist 1, Hochiminh City
Tel	(84-8) 8225697
Fax	(84-8) 8225698
Telex	811361VNVT
Swift	ICBCVNVX
3. BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM (BIDV)- HCM CITY BRANCH
Address	No. 134 Nguyen Cong Tru Street, District 1, Hochiminh City
Country	Vietnam
Tel	(84-8) 8230125, 8297384
Fax	(84-8) 8298862
Swift	BIDVVNVX310

SHAREHOLDERS

The subject is a 100% foreign investment enterprise. Following is its registered shareholder:
1. Name	Mr. WANG WEN HU
Registered address	4F No4 Alley 70 Chi Tung Street Taipei, Taiwan
Nationality	Taiwanese

PAYMENT HISTORY AND EXPERIENCES

Trade Morality	Average
Liquidity	Good
Previous Payments	Prompt
Payment status	Prompt
Past Financial Situation	Average
Current Financial Situation	Development
Litigation Data	No recorded
Bankruptcy	No recorded
Public opinion	Normal
Payment Methods	Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C), by telegraphic transfer (T/T).

FINANCIAL DATA

BALANCE SHEET
Unit: 01 USD
Balance sheet date		31/12/2005	31/12/2004
Number of weeks		52	52
ASSETS
A -	CURRENT ASSETS	10,402,557	10,923,973
I.	Cash and cash equivalents	1,104,479	2,662,570
1.	Cash	1,104,479	2,662,570
2.	Cash equivalents	0	0
II.	Short-term investments	0	0
1.	Short-term investments	0	0
2.	Provisions for short-term investment of short- term investments in securities	0	0
III.	Accounts receivable	2,072,814	2,927,622
1.	Receivable from customers	1,978,473	2,875,793
2.	Repayments to suppliers	0	0
3.	Inter- company receivable	0	0
4.	Receivable according to the process of construction contracts	0	0
5.	Other receivable	94,341	51,829
6.	Provisions for credit risk	0	0
IV.	Inventories	7,225,264	5,333,781
1.	Inventories	7,225,264	5,333,781
2.	Provisions for devaluation of inventories	0	0
V.	Other current assets	0	0
1.	Short-term repaid expenses	0	0
2.	Taxes receivable	0	0
3.	Other current assets	0	0
B -	LONG TERM ASSETS	4,255,643	3,501,768
I.	Long term accounts receivable	0	0
1.	Long term accounts receivable from customers	0	0
2.	Long term inter- company receivable	0	0
3.	Other long term receivable	0	0
4.	Provisions for bad debts	0	0
II.	Fixed assets	3,171,832	2,637,295
1.	Tangible assets	2,676,823	2,637,295
	Historical costs	3,724,833	3,443,112
	Accumulated depreciation	1,048,010	805,817
2.	Financial leasehold assets	0	0
	Historical costs	0	0
	Accumulated depreciation	0	0
3.	In-tangible assets	0	0
	Historical costs	0	0
	Accumulated depreciation	0	0
4.	Construction in progress	495,009	0
III.	Investment property	0	0
	History 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 investments in securities	0	0
V.	Other long term assets	1,083,811	864,473
1.	Long term repaid expenses	1,083,811	864,473
2.	Deferred income tax	0	0
3.	Other long term assets	0	0
	TOTAL ASSETS	14,658,200	14,425,741
LIABILITIES
A -	LIABILITIES	2,090,804	6,067,347
I.	Short term liabilities	1,739,026	5,715,569
1.	Short term debts and loans	0	324,000
2.	Payable to suppliers	1,717,261	4,601,510
3.	Advances from customers	0	0
4.	Taxes and other obligations to the State Budget	20,403	287,993
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 payables	1,362	502,066
II.	Long term liabilities	351,778	351,778
1.	Long term account payable to suppliers	0	0
2.	Long term inter- company payable	0	0
3.	Other long term payable	0	0
4.	Long term debts and loans	351,778	351,778
5.	Deferred income tax	0	0
B -	OWNER’S EQUITY	12,567,396	8,358,394
I.	Owner’s equity	12,567,396	8,358,394
1.	Capital	2,500,000	1,000,000
2.	Share premiums	0	0
3.	Treasury stocks	0	0
4.	Differences on asset re-valuation	0	0
5.	Foreign exchange differences	0	0
6.	Business promotion fund	0	0
7.	Financial reserved fund	0	0
8.	Other funds	0	0
9.	Retained earnings	10,067,396	7,358,394
II.	Other sources and funds	0	0
1.	Bonus and welfare funds	0	0
2.	Sources of expenditure	0	0
3.	Funds to form fixed assets	0	0
	TOTAL LIABLITIES AND OWNER’S EQUITY	14,658,200	14,425,741

PROFIT & LOSE ACCOUNT (INCOME STATEMENT)

	Items	F/Y 2005	F/Y 2004
1.	Sales	26,765,027	-
2.	Deductions	219,325	-
3.	Net sales	26,545,702	-
4.	Costs of goods sold	21,888,144	-
5.	Gross profit	4,657,558	-
6.	Financial income	6,450	-
7.	Financial expenses	28,133	-
	- In which : Loan interest expenses	28,133	-
8.	Selling expenses	74,282	-
9.	Administrative overheads	624,775	-
10.	Net operating profit	3,936,818	-
11.	Other income	62,803	-
12.	Other expenses	95,407	-
13.	Other profits	-32,604	-
14.	Profit (loss) before tax	3,904,214	-
15.	Income tax	195,210	-
16.	Profit (loss) after tax	3,709,004	-

FINANCIAL FACTORS

Description	FY 2005	FY 2004
Current Liquidity Ratio	5.98	-
Quick Liquidity Ratio	1.83	-
Inventory Circle	3.49	-
Average Receive Period	28.50	-
Utilizing Asset Performance	1.81	-
Liability / Total Asset (%)	14.26	-
Liability / Owner's Equity (%)	16.64	-
Income Before Tax / Total Asset (%) ROA	26.64	-
Income Before Tax / Owner's Equity (%) ROE	31.07	-
Income Before Tax / Total Revenue (%) NPM	14.59	-
Gross Profit / Total Revenue (%) GPM	17.40	-

INTERPRETATION ON THE SCORES

The Subject was established in 1996. It is a 100% foreign invested enterprise which was licensed in 1996 and started manufacturing in 1999. The subject is now focusing on manufacturing and trading in leather shoes.

In the first three years, the subject had lost so much. In this phase, the subject had difficulties in finding customers. Since the fourth operation year, the subject has operated effectively.

Management capacity of the subject is good. Premises and facilities of the subject are standard. The subject’s factory locating in the total area of 17.223,85 m2. Currently, the subject’s production is very busy. The subject has a total workforce of more than 2,300 employees. The subject’s products are mainly for export. Its main export markets are Taiwan, EU and North America.

Generally, the subject has prospect of development.

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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