MIRA INFORM REPORT

Report Date :

09.01.2008

IDENTIFICATION DETAILS

Name :	TRANG AN PRIVATE ENTERPRISES
Registered Office :	Lot C8 – 5, Hoa Xa Industrial Zone, Nam Dinh city, Nam Dinh province
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	March, 2000
Com. Reg. No.:	0701000009
Legal Form :	Private Enterprises
Line of Business :	Manufacturing & pulling thread

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Small Company
Payment Behaviour :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name		TRANG AN PRIVATE ENTERPRISE
Vietnamese name		DOANH NGHIEP TU NHAN TRANG AN
Type of Business		Private Enterprise
Founded		2000
Business Registration No.		No. 0701000009
Date of Issuance		March 27^th 2000
Place of Issuance		Planning & Investment Department of Nam Dinh province
Registered Capital		250,000,000 VND
Tax Code		No.0600201452
Total Employees		More than 200 employees
Qualification		Normal
Note: Currently, the subject still registered capital of 250 million VND. However, this figure in the account- book of the subject is 25 billion VND, increased ten times.
ADDRESS
Head Office
Address		Lot C8 – 5, Hoa Xa Industrial Zone, Nam Dinh city, Nam Dinh province
Country		Vietnam
Tel		(84-350) 3844737 / 3671092
Fax		(84-350) 3844743
DIRECTORS
1. NAME		MR. NGUYEN DINH HOAN
Position		Director
Year of birth		1969
Resident		No 168, Alley 4, Truong Thi ward, Nam Dinh city, Nam Dinh province
ID number		161989679
Nationality		Vietnamese
Office Tel		(84-350) 3671092
2. NAME		Mrs. NGUYEN THI HONG THUY
Position		Deputy director
Year of birth		1943
Contact address		Lot C8 – 5, Hoa Xa Industrial Zone, Nam Dinh city, Nam Dinh province
Nationality		Vietnamese
3. NAME		Ms. LE THUY DUONG
Position		Chief accountant
Year of birth		1981
Contact address		Lot C8 – 5, Hoa Xa Industrial Zone, Nam Dinh city, Nam Dinh province
Nationality		Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject specializes in manufacturing & pulling thread
IMPORT & EXPORT ACTIVITIES
IMPORT: 90% cotton material are imported from foreign markets, such as: USA, India, China, Thailand
EXPORT: N/A
BANKERS
1. VIETNAM INDUSTRIAL & COMMERCIAL BANK – NAM DINH BRANCH
Address		No 119, Quang Trung Str, Nam Dinh city, Nam Dinh province
Tel		(84-350) 3848648
Fax		(84-350) 3848668
Website		www.icb.com.vn
2. MILITARY COMMERCIAL JOINT STOCK BANK - MCSB
Address		No. 3, Lieu Giai Str., Ba Dinh Dist., Hanoi city
Country		Vietnam
Tel		(84-4) 2661088
Fax		(84-4) 2661080
Website		www.militarybank.com.vn
SHAREHOLDERS
The subject is a private enterprise, so 100% capital owned by its director:
1. Name		MR. NGUYEN DINH HOAN
Identity Card		161989679
Resident		No 168, Alley 4, Truong Thi ward, Nam Dinh city, Nam Dinh province
Nationality		Vietnamese
Office Tel		(84-350) 3671092
Share		100%
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Normal
Liquidity		Average
Payment status		Average
Past Financial Situation		Normal
Current Financial Situation		Developed
Litigation Data		No record
Bankruptcy		No record
Sale methods		Directly to its clients and its partner that is Viet An JSC
Payment Methods		Payment through out bank 100% by L/C
FINANCIAL DATA
BALANCE SHEET
Unit: VND 1,000,000
Balance sheet date			31/12/2006	31/12/2005
Number of weeks			52	52
ASSETS
A -	CURRENT ASSETS		22.091	17.265
I.	Cash and cash equivalents		4.725	4.274
1.	Cash		4.725	4.274
2.	Cash equivalents		0	0
II.	Short-term financial investments		0	0
1.	Short-term investments		0	0
2.	Provisions for devaluation of short-term investment stocks		0	0
III.	Accounts receivables		937	6.648
1.	Receivable from customers		937	6.648
2.	Prepayment to suppliers		0	0
3.	Inter- company receivables		0	0
4.	Progress receipts due from construction contract		0	0
5.	Other receivables		0	0
6.	Provisions for bad debts		0	0
IV.	Inventories		16.094	6.336
1.	Inventories		16.094	6.336
2.	Provisions for devaluation of inventories		0	0
V.	Other current assets		335	7
1.	Short-term prepaid expenses		335	0
2.	VAT deductible		0	7
3.	Tax and accounts receivable to State budget		0	0
4.	Other current assets		0	0
B -	LONG TERM ASSETS		21.726	22.449
I.	Long term accounts receivable		0	0
1.	Long term accounts receivable from customers		0	0
2.	Capital in subsidiary units		0	0
3.	Long term inter- company receivable		0	0
4.	Other long term accounts receivables		0	0
5.	Provisions for bad debts		0	0
II.	Fixed assets		21.497	22.449
1.	Tangible fixed assets		21.497	18.806
	Historical costs		26.852	20.746
	Accumulated depreciation		5.355	1.940
2.	Finance lease assets		0	0
	Historical costs		0	0
	Accumulated depreciation		0	0
3.	Intangible assets		0	0
	Historical costs		0	0
	Accumulated depreciation		0	0
4.	Construction in progress		0	3.643
III.	Investment property		0	0
	Historical costs		0	0
	Accumulated depreciation		0	0
IV.	Long term financial investments		0	0
1.	Investments subsidiary company		0	0
2.	Investments in associates and joint ventures		0	0
3.	Other long term investments		0	0
4.	Provisions for devaluation of long-term investments		0	0
V.	Other long term assets		229	0
1.	Long term prepaid expenses		229	0
2.	Deferred income tax assets		0	0
3.	Other long term assets		0	0
	TOTAL ASSETS		43.817	39.714
LIABILITIES
A -	LIABILITIES		16.490	14.770
I.	Short term liabilities		8.410	5.789
1.	Short term debts and borrowings		5.689	2.881
2.	Payable to suppliers		2.374	2.827
3.	Advances from customers		0	0
4.	Taxes and other account payables to the State Budget		157	16
5.	Payable to employees		0	0
6.	Accrued expenses		190	65
7.	Payable to inter- company		0	0
8.	Progress payments due to construction contracts		0	0
9.	Other payables		0	0
10.	Provision for short-term payables		0	0
II.	Long term liabilities		8.080	8.981
1.	Long term account payable to suppliers		0	0
2.	Long term inter-company payables		0	0
3.	Other long term payables		0	0
4.	Long term debts and borrowings		8.080	8.981
5.	Deferred income tax liabilities		0	0
6.	Reserved funds for unemployment		0	0
7.	Provision for long-term payables		0	0
B -	OWNER’S EQUITY		27.327	24.944
I.	Owner’s equity		27.327	24.944
1.	Owners' investment capital		25.964	24.491
2.	Share premiums		0	134
3.	Owners’ other capital		0	0
4.	Treasury shares		0	0
5.	Differences upon asset revaluation		0	0
6.	Foreign exchange differences		0	0
7.	Business promotion fund		0	0
8.	Financial reserved fund		0	0
9.	Other funds		80	0
10.	Undistributed earnings		1.283	319
II.	Other sources and funds		0	0
1.	Bonus and welfare funds		0	0
2.	Sources of expenditure		0	0
3.	Funds used to acquire fixed assets		0	0
	TOTAL LIABLITIES AND OWNER’S EQUITY		43.817	39.714
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Description			FY 2006
1.	Revenue from sales of goods and rendering of services			49.001
2.	Deductible items			0
3.	Net revenue from sales of goods and rendering of services			49.001
4.	Costs of goods sold			45.139
5.	Gross profit			3.862
6.	Income from financial activities			0
7.	Expenses from financial activities			1.296
	- In which: Loan Interest expenses			0
8.	Selling expenses			625
9.	General & administration expenses			665
10.	Net operating profit			1.276
11.	Other incomes			10
12.	Other expenses			3
13.	Other profits			7
14.	Profit (loss) before tax			1.283
15.	Income tax			193
16.	Profit (loss) after tax			1.090
FINANCIAL FACTORS
Description				FY 2006
Current Liquidity Ratio				2,63
Quick Liquidity Ratio				0,71
Inventory Circle				4,02
Average Receive Period				6,98
Utilizing Asset Performance				1,12
Liability / Total Asset (%)				37,63
Liability / Owner's Equity (%)				60,34
Income Before Tax / Total Asset (%) ROA				2,93
Income Before Tax / Owner's Equity (%) ROE				4,69
Income Before Tax / Total Revenue (%) NPM				2,62
Gross Profit / Total Revenue (%) GPM				7,88
INTERPRETATION ON THE SCORES
The subject is a private enterprise. It was established in March 2000 with the first capital of 250 million VND. The subject officially operated in June 2000 and specializes in manufacturing & pulling thread. It has office and factory located at lot C8-5, Hoa Xa industrial zone, Nam Dinh city, Nam Dinh province. The premises & facilities of the subject are fairly good. The subject invested over 1million USD to equip and install modern machine line for production. To serve for production, the subject imports 90% cotton materials from foreign markets, such as: USA, India, China, and Thailand. Now, the subject has total 200 employees. Its business operation is fairly busy. The subject’s products are sale in domestic market. The subject directly sells to its clients or through out its partner named Viet An joint stock company. This company is located at An Xa industrial park, Nam Dinh city and also focuses on manufacturing thread. Only through five operation years, the subject has grown fairly well. Total asset and total revenue increased continuously in 2005, 2006. In comparison with 2004, total asset doubled and total revenue increased 2.5 times. Generally, the business & financial status of the subject are ensured. The director of the subject – Mr. Nguyen Dinh Hoan is fairly active. All business decisions are done by him. The subject has no late payment sign. It has ability to meet normal commitments. Caution needed with big transactions.

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