MIRA INFORM REPORT

Report Date :

17.09.2007

IDENTIFICATION DETAILS

Name :	GIAY VIET JOINT STOCK COMPANY
Registered Office :	No. 180-182 Ly Chinh Thang Str, Ward 9, Dist 3, Hochiminh City
Country :	Viet Nam
Financials (as on) :	31.12.2006
Date of Incorporation :	06.06.1990
Legal Form :	Joint Stock Enterprise
Line of Business :	Trading & Production of Various Kinds of Footwear

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	GIAY VIET JOINT STOCK COMPANY
Vietnamese name	CONG TY CO PHAN GIAY VIET
Trade Name	VINA GIAY CORPORATION
Abbreviated Name	VINAGI CO
Founded	June 6^th, 1990
Type of business	Joint Stock Enterprise
Equitized	2001
Business Registration No.	4103000317
Date of Issuance	March 1^st, 2001
Place of Issuance	Planning and Investment Department of Hochiminh City
Current Registered Capital	17,000,000,000 VND
Original Registered Capital	4,000,000,000 VND
Tax Code	0302247980
Total Employees	500 employees
Qualification	Normal
Note: The Subject’s business license was renewed 04 times and the last time dated on June 07^th, 2004.
ADDRESS
Head Office
Address	No. 180-182 Ly Chinh Thang Str, Ward 9, Dist 3, Hochiminh City
Country	Vietnamese
Tel	(84-8) 9319787 / 9319785 / 8031193
Fax	(84-8) 9318343 / 8224432 / 8031192
E-mail	vinagiay@hcm.vnn.vn, giayvietplaza@fmail.vnn.vn
Website	www.vinagiay.com
Branch Office No 1
Address	No. 55 Hai Ba Trung Str, Ben Nghe Ward, Dist 1, Hochiminh City
Country	Vietnamese
Tel	(84-8) 8230153
Director	Mrs. NGUYEN THI KIM THOA
Business Registration	03006205 CN41
Branch Office No 2
Address	No. 22 Tran Huy Lieu Str, Ward 12, Phu Nhuan Dist, Hochiminh City
Country	Vietnamese
DIRECTORS
1. NAME	MR. VU VAN MINH
Position	General Director
Qualification	Management
Born	March 19^th, 1960
ID No	020376423
Resident	No. 638 Nguyen Dinh Chieu Str, Ward 3, Dist 3, Hochiminh City
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The Subject is specializing in trading & production of various kinds of footwear.
The subject registered in the following lines of business: Produce, trade products footwear males and females. Trade materials, industry shoes leather chemical. Commerce service. Goods consignment, trade agent. To hold exhibit. To hold professional arts performing. The office for rent. To hold fair service, conference, seminar. Workshop for rent.
IMPORT & EXPORT ACTIVITIES
IMPORT: The Subject imports material from EU, USA…
EXPORT: The Subject’s products are exported to some East EU Countries
BANKERS
1. ASIA COMMERCIAL JOINT STOCK BANK (ACB BANK)
Address	No.442 Nguyen Thi Minh Khai Str, Ward 5, Dist 3, Hochiminh City
Country	Vietnam
Tel	(84-8) 8334085 – 8395179
Fax	(84-8) 8359156
Telex	813158ACBVT
Swift	ASCBVNVX
2. VIETNAM BANK FOR FOREIGN TRADE ( VIETCOMBANK)
Address	No.29 Ben Chuong Duong Str, Hochiminh City
Country	Vietnam
Tel	(84-8) 8251317
Fax	(84-8) 8297228
Telex	811234/5 VVB-VT
Swift	BFTVVBVX 007
3. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM (INCOMBANK) BRANH NO. 2
Address	No. 79A Ham Nghi Str, Nguyen Thai Binh Ward, Dist 1, Hochiminh City
Country	Vietnam
Tel	(84-8) 8290491
Fax	(84-8) 9141936
Telex	8211266NHCMVT
Swift	ICBVVNVX900
Email	Incombankmto2@hcm.vnn.vn
SHAREHOLDERS
The subject is a joint-stock company. However, the main shareholders are members of Mr. Director’s family. The detail of shareholders are as follows :
1. NAME	MR. VU VAN MINH
Position	Chairman & General Director
Qualification	Business management
Date of birth	September 19, 1960
ID Number	020376423
Issued by	Hochiminh Police Station
Issued on	September 04^th, 2002
Resident	638 Nguyen Dinh Chieu Str, Ward 3, Dist 3, Hochiminh City.
Nationality	Vietnamese
Shares	200 shares
2. NAME	Mr. VU VAN CHAM
Position	Shareholder
Resident	No. 55 Hai Ba Trung, Ben Nghe Ward, Dist 1, Hochiminh City
Nationality	Vietnamese
Shares	1,200 shares
Note	Mr. VU VAN CHAM is father of Mr.VU VAN MINH
3. NAME	Mrs. PHAM THI KIM ANH
Position	Shareholder
Resident	No. 55 Hai Ba Trung, Ben Nghe Ward, Dist 1, Hochiminh City
Nationality	Vietnamese
Shares	1,200 shares
Note	Mrs. PHAM THI KIM ANH is mother Mr. VU VAN MINH
4. NAME	Mr. VU VAN CHAU
Position	Shareholder
Resident	43 Tran Huy Lieu Str, Ward 12, Phu Nhuan Dist, Hochiminh City.
Nationality	Vietnamese
Shares	200 shares
Note	Mr. VU VAN CHAU is younger brother Mr. VU VAN MINH
5. NAME	Mrs. VU THI KIM DUNG
Position	Shareholder
Resident	No. 406A Cach Mang Thang Tam Str, Ward 11, Dist 3, Hochiminh City.
Nationality	Vietnamese
Shares	200 shares
6. NAME	Ms. VU THI KIM CHI
Position	Shareholder & Marketing Director
Resident	No. 638 Nguyen Dinh Chieu Str, Ward 3, Dist 3, Hochiminh City
Nationality	Vietnamese
Shares	200 shares
7. NAME	Mr. VU VAN CHUONG
Position	Shareholder
Resident	No. 43 Tran Huy Lieu, Ward 12, Phu Nhuan Dist
Province/City	Hochiminh City.
Nationality	Vietnamese
Shares	200 shares
8. NAME	Mr. VU VAN LAN
Position	Shareholder & Manufacturing Director
Resident	No. 55 Hai Ba Trung Str, Ben Nghe Ward, Dist 1, Hochiminh City
Nationality	Vietnamese
Shares	200 shares
9. NAME	Mr. VU VAN HIEN
Position	Shareholder
Resident	No. 55 Hai Ba Trung Str, Ben Nghe Ward, Dist 1
Province/City	Hochiminh City.
Nationality	Vietnamese
Shares	200 shares
10. NAME	Mr. VU VAN THI
Position	Shareholder & Business Director.
Resident	No. 153-155 Pham Phu Thu, Ward 11, Tan Binh Dist
Province/City	Hochiminh City.
Nationality	Vietnam
Shares	200 shares
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Fair
Liquidity	Normal
Previous Payments	Normal
Payment status	Normal
Past Financial Situation	Normal
Current Financial Situation	Normal
Litigation Data	No recorded
Bankruptcy	No recorded
Public opinion	Fair
Sales Methods	Direct to clients and through its distribution networks.
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 VND
Balance sheet date		31/12/2006	31/12/2005
Number of weeks		52	52
ASSETS
A -	CURRENT ASSETS	15,895,996,977	6,468,600,227
I.	Cash and cash equivalents	853,606,711	862,553,128
1.	Cash	710,638,711	719,585,128
2.	Cash equivalents	142,968,000	142,968,000
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	6,709,083,547	1,403,498,233
1.	Receivable from customers	0	0
2.	Repayments to suppliers	6,673,387,532	1,367,802,218
3.	Inter- company receivable	0	0
4.	Receivable according to the process of construction contracts	0	0
5.	Other receivable	35,696,015	35,696,015
6.	Provisions for credit risk	0	0
IV.	Inventories	8,330,786,719	3,614,285,924
1.	Inventories	8,330,786,719	3,614,285,924
2.	Provisions for devaluation of inventories	0	0
V.	Other current assets	2,520,000	588,262,942
1.	Short-term repaid expenses	0	256,629,317
2.	Taxes receivable	2,520,000	331,633,625
3.	Other current assets	0	0
B -	LONG TERM ASSETS	34,300,865,543	32,499,127,385
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	32,280,384,174	30,478,646,016
1.	Tangible assets	5,672,619,831	27,600,404,649
	Historical costs	7,474,719,115	29,178,166,109
	Accumulated depreciation	1,802,099,284	1,577,761,460
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	26,607,764,343	2,878,241,367
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	2,020,481,369	2,020,481,369
1.	Long term repaid expenses	2,020,481,369	2,020,481,369
2.	Deferred income tax	0	0
3.	Other long term assets	0	0
	TOTAL ASSETS	50,196,862,520	38,967,727,612
LIABILITIES
A -	LIABILITIES	37,079,503,360	26,317,419,225
I.	Short term liabilities	19,426,822,960	12,754,738,825
1.	Short term debts and loans	16,500,000,000	10,000,000,000
2.	Payable to suppliers	0	0
3.	Advances from customers	208,130,384	1,030,015,123
4.	Taxes and other obligations to the State Budget	90,051,390	47,635,320
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	2,628,641,186	1,677,088,382
II.	Long term liabilities	17,652,680,400	13,562,680,400
1.	Long term account payable to suppliers	0	0
2.	Long term inter- company payable	0	0
3.	Other long term payable	16,514,400	16,514,400
4.	Long term debts and loans	17,636,166,000	13,546,166,000
5.	Deferred income tax	0	0
B -	OWNER’S EQUITY	13,117,359,160	12,650,308,387
I.	Owner’s equity	13,117,359,160	12,650,308,387
1.	Capital	17,000,000,000	17,000,000,000
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	(3,882,640,840)	(4,349,691,613)
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	50,196,862,520	38,967,727,612

PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
		F/Y 2006
1.	Sales	18,634,327,470
2.	Deductions
3.	Net sales	18,634,327,470
4.	Costs of goods sold	4,964,889,424
5.	Gross profit	13,669,438,046
6.	Financial income	9,255,139
7.	Financial expenses	3,246,765,208
	- In which : Loan interest expenses	3,244,988,562
8.	Selling expenses	5,992,023,250
9.	Administrative overheads	4,782,865,954
10.	Net operating profit	-342,961,227
11.	Other income	-
12.	Other expenses	-
13.	Other profits	0
14.	Profit (loss) before tax	-342,961,227
15.	Income tax	-
16.	Profit (loss) after tax	-342,961,227
FINANCIAL FACTORS
Description		F/Y2006
Current Liquidity Ratio		0.82
Quick Liquidity Ratio		0.39
Inventory Circle		0.83
Average Receive Period		131.41
Utilizing Asset Performance		0.37
Liability / Total Asset (%)		73.87
Liability / Owner's Equity (%)		282.68
Income Before Tax / Total Asset (%) ROA		-0.68
Income Before Tax / Owner's Equity (%) ROE		-2.61
Income Before Tax / Total Revenue (%) NPM		-1.84
Gross Profit / Total Revenue (%) GPM		73.36
INTERPRETATION ON THE SCORES
GIAY VIET JOINT STOCK COMPANY originally is a family private company. It was established from in 1990. The subject exports about 10% its products to the world market. Its market share is covering whole country. The subject now is member of international footwear organizations: SATRA (Shoe And Allied Trades Research Association) in UK and NSRA (National Shoe Retailers Association) in USA. The subject was selected as “High Quality Vietnamese Goods” by consumers in recent years. And in March 2001, it became a joint stock company. Market share is large and the current position in the industry is good. The subject is now specialized in producing footwear. Besides, the company is focusing on business activities such as trade in materials, industry shoe leather chemical, goods consignment, trade agent, to hold fair service, to hold professional arts performing, office for rent, Workshop for rent. GIAY VIET JOINT STOCK COMPANY imports materials from EU, USD… And The subject’s products are exported to some East Europe countries. Currently, subject invests much in real estate. It built a big building, where is used as trading center & office for leasing with name ”GIAY VIET PLAZA” for 03 years ago and it is preparing for building another building. According to the reported financial statement, the subject’s financial situation is not healthy. However, actually the financial and operational base regarded healthy. This company is running by a very rich family. The payment is normal and it is capable to meet any normal commitments. No caution needed for small & normal transactions.
The company has ADEQUATE capacity to meet financial commitments.

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%)

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