MIRA INFORM REPORT

Report Date :

30.08.2007

IDENTIFICATION DETAILS

Name :	HOANG LAM TRADING COMPANY LTD
Registered Office :	No. 496 No Trang Long Str, Ward 13, Binh Thanh Dist, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	November, 2001
Legal Form :	Liability Limited Company
Line of Business :	Manufacturing and trading in garment and textiles, leather and imitation leather products, machine, material, accessories of plastic, and rubber industry, and trading in imported wines.

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
Subject’s English Name				HOANG LAM TRADING COMPANY LTD
Vietnamese Name				CONG TY TNHH THUONG MAI HOANG LAM
Abbreviation				HOA LAM CO., LTD
Established				November, 2001
Type of business				Liability Limited Company
Business Registration				No 4102007524
Issued on				November 28^th, 2001
By				Planning and Investment Department of Hochiminh City
Registered Capital				1,300,000,000 VND
Tax Code				No 0302464689
Total Employees				200 employees of the whole company
Qualification				Normal
ADDRESSES
Head Office
Address				No. 496 No Trang Long Str, Ward 13, Binh Thanh Dist, Hochiminh City, Vietnam
Tel				(84-8) 5530226
Fax				(84-8) 5530455
Email				hoanglamco@hcm.vnn.vn
Note: The given Tel and fax Number (84-8) 8822304 and 889929 are not available.
Current Factory Location
Address				Binh Tien 2 Hamlet, Duc Hoa Ha Village, Duc Hoa District, Long An Province, Vietnam
Tel				(84-72) 762924-762925-763197-763198
Fax				(84-72) 763197
Note: The factory of the subject has been moved to Duc Hoa Ha Ward, Long An province for a bigger location since July 2006.
Former Factory Location
Address				A8/13A, Hamlet 1, Vinh Loc B Ward, Binh Chanh Dist, Hochiminh City, Vietnam
Tel				(84-8) 4250032 – 8822304
Fax				(84-8) 4250031
Representative Office In USA
Address				663 Strander Blvd Tukwila WA 98188
Country				USA
Tel				206.575.2675
Fax				206.575.2679
Contact Person				Mr. Davidlam
Cell Phone				206.351.9787
DIRECTORS
1. NAME				Ms. NGUYEN THI NGOC NU
Position				Director
Qualification				Management
Born				August 11^th, 1960
ID No				020125443
Resident				No. 496 No Trang Long Str, Ward 13, Binh Thanh Dist, Hochiminh City
Nationality				Vietnamese
Hand Phone				++84 903195930
2. NAME				Mr. VO THANH DO
Position				Deputy Director
Qualification				Management
Resident				No. 336/54, Phan Van Tri Str, Ward 11, Binh Thanh Dist, Hochiminh City
Nationality				Vietnamese
Hand Phone				++84 903810748
3. NAME				Mr. NGUYEN QUANG AN
Position				Chief of Organizational and Administrative Department
Qualification				Management
Resident				Hochiminh City
Nationality				Vietnamese
4. NAME				Mr. HOANG HUY CUONG
Position				Chief Accountant
Qualification				Bachelor
Resident				Hochiminh City
Nationality				Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in manufacturing and trading in garment and textiles, leather and imitation leather products, machine, material, accessories of plastic, and rubber industry, and trading in imported wines.
IMPORT & EXPORT ACTIVITIES
IMPORT: The Subject imports material and product from Singapore, USA, Thailand, Korea, Taiwan, Switzerland, and Germany
EXPORT: The Subject’s products are exported to USA, Taiwan, France and Australia
BANKERS
1. VIETNAM EXPORT-IMPORT COMMERCIAL JOINT STOCK BANK (EXIMBANK) – Tan Dinh Branch
	Address					No.48-50 Nguyen Huu Cau Street, Tan Dinh Ward, District No.1
	Province/City					HoChiMinh City
	Country					Vietnam
	Tel					(84-8) 8205305
	Fax					(84-8) 8205301
	Telex					812690 EIB VT
	Swift					EBVIVNVXTDH
2. VP BANK
Address					No. 87 Ham Nghi Str, Dist 1, Hochiminh City, Vietnam
Telephone					(84-8) 8210076
Fax					(84-8) 8243456
Swift					VPBKVNVXXXX
3. ORIENT COMMERCIAL JOINT STOCK BANK
Address					No.45 Le Duan Str, Ben Nghe Ward, Dist 1, Hochiminh City, Vietnam
Tel					(84-8) 8220962
Fax					(84-8) 8220963
Telex					811357OCB-VT
Swift					ORCOVNVX
4. UNITED OVERSEAS BANK
Address					No.17 Le Duan Street, Ben Nghe Ward , District 1.
Province/City					Hochiminh City - Vietnam
Tel					(84-8) 8251424
Fax					(84-8) 8251423
SHAREHOLDER(S)
The Subject is a private limited company. Following are its shareholders:
1. NAME			Ms. NGUYEN THI NGOC NU
Position			Director
Qualification			Management
Born			August 11^th, 1960
ID No			020125443
Resident			No. 496 No Trang Long Str, Ward 13, Binh Thanh Dist, Hochiminh City
Nationality			Vietnamese
Share			61.54%
Value			800,000,000 VND
2. NAME			Mr. VO THANH DO
Position			Deputy Director
Qualification			Management
Resident			No. 336/54, Phan Van Tri Str, Ward 11, Binh Thanh Dist, Hochiminh City
Nationality			Vietnamese
Share			23.08%
Value			300,000,000 VND
3. NAME			Mr. DOAN THANH SON
Position			Shareholder
Qualification			Management
Resident			No. 18/28, Tang Bat Ho Str, Ward 11, Binh Thanh Dist, Hochiminh City
Nationality			Vietnamese
Share			15.38%
Value			200,000,000 VND
PAYMENT HISTORY AND EXPERIENCES
Trade Morality			GOOD
Liquidity			ABOVE AVERAGE
Previous Payments			FAIRLY PROMPT
Current payment status			PROMPT
Past Financial Situation			FAIRLY GOOD
Current Financial Situation			GOOD
Legal Action			NO RECORDED
Bankruptcy			NO RECORDED
Reputation			AVERAGE
Sales methods			FREE ON BOARD (FOB), COST AND FREIGHT (CNF)
Mode of Payment			DIRECT PAYMENT OR THROUGH ITS CORRESPONDING BANK. FOREIGN REMITTANCE BY LETTER OF CREDIT (L/C), BY TELEGRAPHIC TRANSFER (T/T).
FINANCIAL DATA
Unit: 1,000,000 VND
BALANCE SHEET
Balance sheet date							31/12/2006
Number of weeks							52
ASSETS
A -		CURRENT ASSETS					3,089
I.		Cash and cash equivalents					563
1.		Cash					563
2.		Cash equivalents					0
II.		Short-term financial investments					0
1.		Short-term investments					0
2.		Provisions for devaluation of short-term investment stocks					0
III.		Accounts receivables					924
1.		Receivable from customers					924
2.		Prepayment to suppliers					0
3.		Inter- company receivables					0
4.		Progress receipts due from construction contract					0
5.		Other receivables					0
6.		Provisions for bad debts					0
IV.		Inventories					1,390
1.		Raw materials, spare parts,					1,390
2.		Provisions for devaluation of inventories					0
V.		Other current assets					212
1.		Short-term prepaid expenses					0
2.		Taxes receivables					212
3.		Other current assets					0
B -		LONG TERM ASSETS					1,134
I.		Long term accounts receivable					0
1.		Long term accounts receivable from customers					0
2.		Long term inter- company receivable					0
3.		Other long term accounts receivables					0
4.		Provisions for bad debts					0
II.		Fixed assets					1,134
1.		Tangible fixed assets					1,134
		Historical costs					3,827
		Accumulated depreciation					-2,693
2.		Finance lease assets					0
		Historical costs					0
		Accumulated depreciation					0
3.		Intangible assets					0
		Historical costs					0
		Accumulated depreciation					0
4.		Construction in progress					0
III.		Investment property					0
		Historical costs					0
		Accumulated depreciation					0
IV.		Long term financial investments					0
1.		Investments subsidiary company					0
2.		Investments in business concerns and joint ventures					0
3.		Other long term investments					0
4.		Provisions for devaluation of long-term investments stock					0
V.		Other long term assets					0
1.		Long term prepaid expenses					0
2.		Deferred income tax assets					0
3.		Other long term assets					0
		TOTAL ASSETS					4,223
A -		LIABILITIES					2,208
I.		Short term liabilities					2,208
1.		Short term debts and borrowings					2,198
2.		Payable to suppliers					0
3.		Advances from customers					0
4.		Taxes and other accounts payable to the State Budget					10
5.		Payable to employees					0
6.		Accrued expenses					0
7.		Payable to inter- company					0
8.		Progress payments due to construction contract					0
9.		Other payables					0
II.		Long term liabilities					0
1.		Long term account payable to suppliers					0
2.		Long term inter-company payables					0
3.		Other long term payables					0
4.		Long term debts and borrowings					0
5.		Deferred income tax liabilities					0
B -		OWNER’S EQUITY					2,015
I.		Owner’s equity					2,015
1.		Owners' Investment capital					1,652
2.		Share premiums					0
3.		Treasury shares					0
4.		Differences upon asset revaluation					0
5.		Foreign exchange differences					0
6.		Business promotion fund					0
7.		Financial reserved fund					0
8.		Other funds					0
9.		Undistributed earnings					363
II.		Other sources and funds					0
1.		Bonus and welfare funds					0
2.		Sources of expenditure					0
3.		Funds used to acquire fixed assets					0
		TOTAL LIABLITIES AND OWNER’S EQUITY					4,223

PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
		Description			F/Y 2006
1.		Revenue from sales of goods and rendering of services			12,348
2.		Deductible items			0
3.		Net revenue from sales of goods and rendering of services			12,348
4.		Costs of goods sold			10,320
5.		Gross profit			2,028
6.		Income from financial activities			0
7.		Expenses from financial activities			159
		- In which: Loan Interest expenses			0
8.		Selling expenses			989
9.		General & administration expenses			376
10.		Net operating profit			504
11.		Other incomes			0
12.		Other expenses			0
13.		Other profits			0
14.		Profit (loss) before tax			504
15.		Income tax			141
16.		Profit (loss) after tax			363
FINANCIAL FACTORS
Description					FY 2006
Current Liquidity Ratio					1.40
Quick Liquidity Ratio					0.77
Inventory Circle					7.42
Average Receive Period					27.31
Utilizing Asset Performance					2.92
Liability / Total Asset (%)					52.29
Liability / Owner's Equity (%)					109.58
Income Before Tax / Total Asset (%) ROA					11.93
Income Before Tax / Owner's Equity (%) ROE					25.01
Income Before Tax / Total Revenue (%) NPM					4.08
Gross Profit / Total Revenue (%) GPM					16.42
Following is the financial statement of 2005, 2004 and 2003 of the Subject
	Unit: 1,000,000 VND
	BALANCE SHEET
	Balance Sheet Date			31/12/2005			31/12/2004	31/12/2003
	Number of Weeks			52			52	52
	ASSETS
	A. Current assets & Short term Investment			2,258			2,636	2,685
	I. Cash and cash equivalents			100			192	53
	II. Short term investment			0			0	0
	1. Short-term securities investment			0			0	0
	2. Other short-term investment			0			0	0
	3. Provision for devaluation of short-term investment			0			0	0
	III. Receivables			968			1,422	1,246
	1. Receivables from customers			847			1,358	1,075
	2. Prepaid for providers			0			0	0
	3. Value-added tax deducted			121			64	171
	4. Internal receivables			0			0	0
	5. Other receivables			0			0	0
	6. Provision for bad receivables			0			0	0
	IV. Inventory			1,190			1,022	1,334
	1. Purchased goods in transit			0			0	0
	2. Inventory raw materials			165			247	376
	3. Inventory appliance			48			15	0
	4. Cost for production and business in process			0			0	0
	5. Inventory finished products			0			0	0
	6. Inventory cargoes			977			760	958
	7. Entrusted goods for sale			0			0	0
	8. Provision for devaluation of stocks			0			0	0
	V. Other current assets			0			0	52
	1. Advances			0			0	0
	2. Prepaid expenses			0			0	0
	3. Pending expenses for transfer			0			0	52
	4. Pending assets			0			0	0
	5. Hypothecation, collateral and short run collateral			0			0	0
	VI. Administrative			0			0	0
	1. Administrative expenses for previous year			0			0	0
	2. Administrative expenses for current year			0			0	0
	B. Fixed assets & Long term investment			2,752			2,425	2,237
	I. Fixed assets			2,752			2,425	2,237
	1. Tangible fixed assets			2,752			2,425	2,237
	+ Original cost			3,732			2,924	2,345
	+ Accumulated depreciation value			-980			-499	-108
	2. Fixed assets of financing credit			0			0	0
	+ Original cost			0			0	0
	+ Accumulated depreciation value			0			0	0
	3. Intangible fixed assets			0			0	0
	+ Original cost			0			0	0
	+ Accumulated depreciation value			0			0	0
	II. Long term investment			0			0	0
	1. Long-term securities investment			0			0	0
	2. Joint-venture capital contribution			0			0	0
	3. Other long-term investment			0			0	0
	4. Provision for long-term investment devaluation			0			0	0
	III. Capital construction in process			0			0	0
	IV. Other			0			0	0
	TOTAL ASSETS			5,010			5,061	4,922
	LIABILITIES
	A. Payables		3,619			3,627		3,370
	I. Short term payables		3,619			3,627		3,370
	1.Short-term borrowings		1,640			1,710		1,500
	2. Due long-term liabilities		0			0		0
	3. Payable to seller		1,979			1,917		1,877
	4. Prepaid buyer		0			0		0
	5. Taxes and accounts dutiable		0			0		-7
	6. Employee payments		0			0		0
	7. Internal payments		0			0		0
	8. Other payables		0			0		0
	II. Long term payables		0			0		0
	1. Long-term borrowing		0			0		0
	2. Long-term loans		0			0		0
	III. Other liabilities		0			0		0
	1. Disbursement payable		0
	2. Pending assets		0			0		0
	3. Receipts long-term collateral and deposit		0			0		0
	B. Owner’s Equity:		1,391			1,434		1,552
	I. Capital and Funds		1,391			1,434		1,552
	1. Working capital		1,290			1,300		1,300
	2. Differences from assets revaluation		0			0		0
	3. Exchange rate differences		0			0		0
	4. Business development fund		0			0		0
	5. Reserved fund		0			0		0
	6. Retained profit		0			134		252
	7. Construction capital sources		101			0		0
	II. Other administrative and fund sources		0			0		0
	1. Provident funds for unemployment		0			0		0
	2. Welfare and reward funds		0			0		0
	3. Management funds of higher level		0			0		0
	4. Functional operation funds		0			0		0
	5. Fund sources formed by fixed assets		0			0		0
	TOTAL LIABILITY AND EQUITY		5,010			5061		4922
	PROFIT & LOSE ACCOUNTS
	Description		FY 2005			FY 2004		FY 2003
	Total revenue		8,522			7,258		N/A
	Revenue from export		0			0		-
	Deductions Items		0			0		-
	- Discount		0			0		-
	- Devaluation of sale price		0			0		-
	- Return of sold goods		0			0		-
	- Turnover tax, excise tax, import and export duties to be paid		0			0		-
	1. Net revenue		8,522			7,258		-
	2. Original rate of goods for sale		6,624			5,952		-
	3. Combined Profit		1,898			1,306		-
	4. Sales costs		566			447		-
	5. Enterprise administrative costs		1,023			553		-
	6. Net income from business activity		309			306		-
	Income from financial activities		29			7		-
	Costs for financial activities		190			178		-
	7. Net income from financial operation		-161			-171		-
	Irregular income		2			0		-
	Irregular expenditure		0			0		-
	8. Irregular Profit		2			0		-
	9. Total pre-tax profit		150			135		-
	10. Income tax		42			38		-
	11. After tax profit		108			97		-
	FINANCIAL FACTORS
	Description		2005			2004		2003
	Current Liquidity Ratio		0.62			0.73		0.80
	Quick Liquidity Ratio		0.30			0.44		0.40
	Inventory Circle		5.99			5.05		N/A
	Average Receivable Period (days)		41.46			71.51		-
	Utilizing Asset performance		1.70			1.43		-
	Liabilities / Total Assets (%)		72.24			71.67		68.47
	Liabilities / Owner’s Equity (%)		260.17			252.93		217.14
	Income before tax/Total assets (%) ROA		2.99			2.67		N/A
	Income before tax / Owner’s Equity (%) ROE		10.78			9.41		-
	Income before tax/Total revenues (%) NPM		1.76			1.86		-
	Gross profit /Total revenues (%) GPM		22.27			17.99		-
INTERPRETATION
The subject is a private owned company, established at the end of 2001 and started operation at the beginning of 2002. The subject is specializing in producing and trading garment and textiles such as pack back, hand bag, jacket clothes, T- shirt, plastic and cloth toy for dog and cat, material for hand bag, pack back, plastic key…Those products are exported to USA, France, Australia and Taiwan. The subject has a good management crew. After 4 years of operation, the subject has gained some significant achievement. It has a factory with 3,500 m^2 in Binh Chanh district which contains two workshops: a garment workshop with more than 155 employees and modern machines, a pressing plastic workshop with 5 pressing plastic machines with capacity from 75 tons to 500 tons… The factory of the subject has been moved to Duc Hoa Ha, Long An province for a bigger location and output capacity since July, 2006. This factory locates in area of 8,000 square meters. Having modern machine and well equipped workshops but the subject still faces with difficulties in output. According to client’s contracts, the subject operates mainly and busy from June to November. The rest of the year, the capacity is just a half. The subject is investing in plastic with equipped well machine but the capacity is just accounting for 15 % of the whole capacity. The subject has now been looking for partners and opening market share indoor and outdoor. It has good relationship with traditional foreign partners such as: Wing Tote, Canine Hardware, Sunline, Tcs, Gerbing’s, and Amtech… The subject facility is good. Its annual revenue is increasing well in recent years. Its revenue in 2004 is 7,258 billion VND and in 2005 is 8,522 billion VND. In 2006, it increased up to 12,348 billion VND. Its future prospect is rather good. Currently, the subject’s position in the industry is average but it may operate effectively and have potential prospect in the future.

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.	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