MIRA INFORM REPORT

Report Date :

31.01.2008

IDENTIFICATION DETAILS

Name :	SAMWOO VIETNAM COMPANY LIMITED
Registered Office :	Nhon Trach I Industrial Zone, Nhon Trach Dist, Dong Nai Province
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	2001
Legal Form :	Foreign Invested Company
Line of Business :	Producing and Trading in Genuine and Artificial Leather used for Hand Bag, Shoes and Furniture Goods

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 :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM

English Name	SAMWOO VIETNAM COMPANY LIMITED
Vietnamese Name	CONG TY TNHH SAMWOO VIETNAM
Trade Name	SAMWOO VIETNAM CO., LTD
Year Established	2001
Type of Business	100% Foreign Invested Company
Investment License	No. 98/GP-KCN-DN
Place of issuance	Management Board of Dong Nai Industrial Park
Date of issuance	November 8^th, 2001
Started operation	August, 2002
Investment duration	46 years
Current Investment capital	15,000,000,000 USD
Current Legal Capital	4,500,000,000 USD
Former investment capital	USD 8,330,000
Former Legal Capital	USD 3,500,000
Date of increasing	April 4^th 2007
Tax Code	3600515655
Total Employees	Nearly 400 employees (Including Staffs and Workers)
Qualification	Normal

ADDRESS

Head Office and Factory
Address	Nhon Trach I Industrial Zone, Nhon Trach Dist, Dong Nai Province
Country	Vietnam
Tel	(84-61) 3560 823/ 3560 825/ 3560 829
Fax	(84-61) 3560 824
Email	marketingsamwoo@hcm.vnn.vn; lucaso4o3@samwoovietnam.com
Website	www.samwoovietnam.com (under construction)

DIRECTORS

Current Directors
1. NAME	Mr. KI KWANG JUN
Position	General Director
Qualification	Management
Current Resident	Dong Nai Province
Nationality	Korean
Inauguration Day	April 2006
2. NAME	Mr. YOU BYUNG JOO
Position	Managing Director
Qualification	Management
Office Tel	(84-61) 3560 823
Current Resident	Dong Nai Province
Nationality	Korean
Note: He replaced Mr. SEO DONG HI in January 2007.
3. NAME	Mr. LUCAS JEONG
Position	Marketing Director
Qualification	Management
Current Residence	Dong Nai Province
Nationality	Korean
Cell phone	++84 918 279 314
Email	lucas0403@samwoovietnam.com
4. NAME	Mr. BUI BAO QUOC
Position	Chief Accountant
Current Residence	Dong Nai Province
Nationality	Vietnamese
Former Directors
NAME	Mr. YOO BYUNG MOON
Position	General Director
Qualification	Management
Current Residence	Dong Nai Province
Nationality	Korean
Email	bmyoo@samwoovietnam.com
Retirement	April 2006

BUSINESS NATURE AND ACTIVITIES

The subject focuses on the following lines of business:

- Producing and trading in genuine and artificial leather used for hand bag, shoes and furniture goods.

IMPORT & EXPORT ACTIVITIES

IMPORT: The principal materials of the subject are imported from Indonesia, Korea, Australia, and Italy.

EXPORT: The subject’s products are exported to Korea, Indonesia, Hong Kong, Taiwan, Japan and USA

BANKERS

The subject has banking relation with the banks:
1. SHINHANVINA BANK – HOCHIMINH CITY
Address	No. 3 – 5, Ho Tung Mau Str, Nguyen Thai Binh Ward, Dist 1, Hochiminh City.
Country	Vietnam
Tel	(84-8) 8291581 - 8211648
Fax	(84-8) 8213923
Telex	813220FVBANK-VT
Swift	FIRVVNVN
2. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK) - BRANCH IN NHON TRACH
Address	Road No.25B, Nhon Trach III Industrial Zone, Nhon Trach Dist, Dong Nai province
Country	Vietnam
Tel	(84-61) 3560033
Fax	(84-61) 3560880
Swift	BFTVVNVX 012
3. KOREA EXCHANGE BANK – Hanoi Branch
Address	14^th floor, 360 Kim Ma str, Ba Dinh dist, Hanoi city
Country	Vietnam
4. KEXIM VIETNAM LEASING CO.,LTD
Address	Flr.9, Diamond Plaza, No.34 Le Duan Str, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 8257000

SHAREHOLDERS

The subject is a 100% Foreign Invested Company. Its investor is as follows:
English Name	SAMWOO CO., LTD
Founded	1986
Address	#90 SINEUM-DONG, KIMCHEON-SI, KYUNGBUK, KOREA
Tel	82-54-432 7781
Email	82-54-431 1576
Website	www.samwookorean.com
Representative	Mr. TAEK GUN CHOUNG
Position	Chairman
Share	100%

PAYMENT HISTORY AND EXPERIENCES

Trade Morality	Fairly good
Liquidity	Average
Previous Payments	Average
Current Payment status	Average
Past Financial Situation	Above average
Current Financial Situation	Developing
Litigation Data	No recorded
Bankruptcy	No recorded
Public opinion	Fairly good
Payment Method	L/C at sight
Sales method	Through marketing team
Development trend	Fairly good with hard competition

FINANCIAL DATA

BALANCE SHEET
Unit: VND
Balance sheet date	31/12/2006			31/12/2005		31/12/2004			31/12/2003
Number of weeks	52			52		52			52
Unit	Million VND			VND		VND			VND
ASSETS
A. Working assets & short-term Investment	222,564		119,097,186,218			69,039,389,098		75,490,988,621
I. Cash and cash equivalents	1,018		403,699,306			2,134,807,194		7,621,161,057
II. Short-term investment	0		0			0		0
III. Receivables	39,490		23,400,930,318			23,646,573,240		22,368,956,627
1. Receivables from customers	36,335		20,708,328,914			23,215,731,528		20,306,123,240
2. Prepayment for providers	0		260,889,141			0		0
3. Value-added tax deducted	0		1,104,394,095			283,261,712		1,627,497,947
4. Internal receivables	0		0			0		0
5. Other receivables	3,155		1,327,318,168			147,580,000		435,335,440
6. Provision for bad receivables	0		0			0		0
IV. Inventory	179,712		95,173,266,142			42,799,662,771		45,446,010,516
1. Purchased goods in transit	0		12,834,650			0		1,502,390,906
2. Raw materials	0		13,113,566,935			17,852,069,926		22,870,184,661
3. Instrument, tools	0		0			0		0
4. Cost for production and business in process	0		68,749,700,303			21,428,791,053		16,373,244,174
5. Finished products	0		0			3,518,801,792		4,700,190,775
6. Goods	179,712		0			0		0
7. Goods on consignment	0		0			0		0
8. Provision for devaluation of stocks	0		0			0		0
V. Other current assets	2,344		119,290,452			458,345,893		54,860,421
1. Advances	-		8,500,452			87,834,100		54,860,421
2. Prepaid expenses	-		0			270,511,793		0
3. Pending expenses for transfer	-		0			0		0
4. Pending assets	-		0			0		0
5. Mortgage, collateral and short run collateral	-		110,790,000			100,000,000		0
VI. Administrative	0		0			0		0
B. Fixed assets & Long term investment	101,498		97,280,008,001			58,852,316,490		60,394,503,665
I. Fixed assets	96,627		86,593,363,047			56,428,709,763		57,857,204,010
1. Tangible fixed assets	83,014		76,821,358,535			43,459,337,229		42,210,142,337
+ Original cost	113,934		95,227,769,793			54,752,207,539		47,967,847,521
+ Accumulated depreciation value	-30,920		18,406,411,258			11,292,870,310		5,757,705,184
2. Financial leasing fixed assets	13,431		9,408,368,144			12,423,917,986		14,919,788,945
+ Original cost	21,566		15,007,629,200			16,132,424,078		16,132,424,078
+ Accumulated depreciation value	-8,135		5,599,261,056			3,708,506,092		1,212,635,133
3. Intangible fixed assets	182		363,636,368			545,454,548		727,272,728
+ Original cost	909		909,090,908			909,090,908		909,090,908
+ Accumulated depreciation value	-727		545,454,540			363,636,360		181,818,180
II. Long term investment	0		0			0		0
III. Long term receivables	3,277		0			0		0
IV. Capital construction in process	0		6,968,218,417			0		627,333,577
V. Other	1,594		3,718,426,537			2,423,606,727		1,909,966,078
TOTAL ASSETS	324,062		216,377,194,219			127,891,705,588		135,885,492,286
LIABILITIES
A. Payable loans	287,757		182,285,306,195			98,217,626,090		123,921,082,622
I. Short term payables	242,004		159,534,580,170			71,833,840,834		79,052,996,229
1. Short-term borrowings	47,170		40,310,458,019			32,116,449,387		32,570,028,338
2. Due long-term liabilities			0			0		0
3. Payables to supplier	185,521		112,974,926,200			36,502,757,703		42,411,293,773
4. Prepayment of buyer	72		15,846,425			95,710,670		0
5. Taxes and accounts dutiable	356		288,377,156			747,342,322		1,877,045,348
6. Employee payments	3,323		2,722,061,917			217,189,360		239,135,235
7. Internal payables			0			0		0
8. Other payables	5,562		3,222,910,453			2,154,391,392		1,955,493,535
II. Long term loans	45,753		22,750,726,025			26,383,785,256		44,329,827,397
1. Long-term borrowings	-		12,985,750,000			12,874,502,000		28,375,344,000
2. Long-term payables	-		9,764,976,025			13,509,283,256		15,954,483,397
III. Other payables	0		0			0		538,258,996
1. Payable expenses	0		0			0		538,258,996
2. Pending assets	0		0			0		0
3. Receipts long-term collateral and deposit	0		0			0		0
B. Owner’s Equity:	36,305		34,091,888,024			29,674,079,498		11,964,409,664
I. Capital and Funds	36,305		34,091,888,024			29,674,079,498		11,964,409,664
1. Working capital	38,528		38,527,701,800			38,527,701,800		22,760,701,800
2. Differences from asset revaluation	0		0			0		0
3. Exchange rate differences	0		0			0		0
4. Development investment funds	0		0			0		0
5. Reserved funds	0		0			0		0
6. Retained profit	-2,223		-4,435,813,776			-8,853,622,302		-10,796,292,136
7. Construction capital sources	0		0			0		0
II. Other administrative and fund sources	0		0			0		0
TOTAL LIABILITY AND EQUITY	324,062		216,377,194,219			127,891,705,588		135,885,492,286
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
Description		FY 2006			FY 2005		FY 2004
Unit		Million VND			VND		VND
Total revenue		226,666			217,462,896,225		288,299,817,397
Deductions Items		1,423			6,722,526,088		1,494,181,871
- Discount		1,423			3,213,561,698		0
- Devaluation		0			3,508,964,390		475,466,310
- Return of sold goods		0			0		1,018,715,561
- Turnover tax, Luxury tax & Export tax		0			0		0
1. Net revenue		225,243			210,740,370,137		286,805,635,526
2. Cost of goods sold		194,987			186,406,749,437		258,465,317,907
3. Gross Profit		30,256			24,333,620,700		28,340,317,619
4. Sales expenses		7,852			2,980,542,134		10,878,069,703
5. Enterprise administrative expenses		11,093			12,311,366,956		9,766,723,767
6. Net income from business activities		11,311			9,041,711,610		7,695,524,149
Income from financial activities		557			389,828,570		377,784,517
Expenditure from financial activities		9,782			5,308,464,675		6,137,423,712
7. Net income from financial operation		-9,225			-4,918,636,105		- 5,759,639,195
Irregular income		531			383,173,267		166,998,011
Irregular expenditure		394			88,440,245		160,213,130
8. Irregular Profit		137			294,733,022		6,784,881
9. Total pre-tax profit		2,223			4,417,808,527		1,942,669,835
10. Income tax		0			0		0
11. After tax profit		2,223			4,417,808,527		1,942,669,835

FINANCIAL FACTORS

Description	FY 2006	FY 2005	FY 2004	FY 2003
Current liquidity ratio	0.92	0.75	0.96	0.95
Quick Liquidity ratio	0.18	0.15	0.37	0.38
Inventory circle	1.08	1.96	3.75	-
Average receive period	63.99	40.53	30.09	-
Utilizing Asset Performance	0.70	0.97	2.24	-
Liability/ Total Asset (%)	88.80	84.24	76.80	91.20
Liability/ Owner's equity (%)	792.61	534.69	330.99	1,035.75
Income before tax/ Total asset (%) ROA	0.69	2.04	1.52	-
Income before tax/ Owner's equity (%) ROE	6.12	12.96	6.55	-
Income before tax/ Total revenue (%) NPM	0.98	2.03	0.67	-
Gross Profit / Total revenue (%) GPM	13.35	11.19	9.83	-

INTERPRETATION ON THE SCORES

The Samwoo Vietnam is a 100% Foreign Investment company of Korea. It was granted investment license in late 2001 and officially operated in August 2002 with the original investment capital of 5,000,000 USD and original legal capital of 1,500,000 USD. It has increased investment and legal capital to USD 15 million and USD 4.5 million in April 2007.

The subject has been in the field of leather industry for more than 6 years. Formerly, the subject specialized in manufactured and trading in leather used to produce shoes, clothes and etc. At the end of 2005, its new factory producing artificial leather was completed. Products of the SC is not only supplied for domestic market but also be exported to Japan. It is fairly busy now. Its main products are waterproof type leather, soft and natural leather, grain leather and action leather.

The subject is one of seven units of Samwoo Korea and one of three manufacturers of this group. The management board of Samwoo Korea decided to establish factory in Vietnam thanks to the investment incentive policy and cheap price of labor force. Samwoo Vietnam is capable to produce 8,000,000 S/F of grain leather and 12,000,000 S/F of action leather per month.

The subject sells its products directly to domestic clients through marketing team, not through agents. Formerly, the Southern provinces of Vietnam are main markets of the subject.

Recent business result of the subject is fairly good. Its turnover and number of employees are increased sharply year after year. However, its profit is still modest because the costs of operation is high. The financial situation of the subject is not quite good but there is a good adjustment in capital structure in 2004. Profit in 2005 is much better. In 2006, total revenue was higher than 2005 but its profit was lower. However, this field of business contains hard competitiveness. Besides, the fluctuation of the market, especially the price of material and output items also impacts to SC’s operation and revenue.

Generally, the subject is a medium scale company. Its financial status seems fairly healthy. The leather and shoes industry in Vietnam market is developing. The demand on leather is increased much. Thus, the subject’s prospect expects bright. It is capable to meet small and normal commitments. Caution needed for big business transactions.

To be rated at BBB, the company has ADEQUATE capacity to meet financial commitments.

CREDIT INQUIRY: 5,000,000,000 USD

This credit inquiry is big for the Subject. The guarantee is necessary.

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