MIRA INFORM REPORT

Report Date :

02.04.2011

IDENTIFICATION DETAILS

Name :	HIKOSEN CARA COMPANY LIMITED

Registered Office :	Dong Xuyen Industrial Zone, Rach Dua Ward - Vung Tau City - Ba Ria-Vung Tau Province

Country :	Vietnam

Financials (as on) :	31.12.2009

Date of Incorporation :	2000

Legal Form :	Foreign Invested Company

Line of Business :	manufacturing and trading in garments, aprons, bags, cushion, table-cover and home accessories

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Vietnam

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
English Name		HIKOSEN CARA COMPANY LIMITED
Vietnamese Name		CONG TY TNHH HIKOSEN CARA
Trade name		HIKOSEN CARA CO., LTD
Short name		HICOSEN CARA
Type of Business		Foreign invested company
Year Established		2000
Investment Certificate No		04/GP-KCN-BV
Date of investment		19 Jan 2000
Place of investment		Industrial Zone Authority of Ba Ria - Vung Tau Pro
Registered Investment Capital		2,000,000 USD
Current Chartered capital		700,000 USD
Former Chartered capital		500,000 USD
Tax code		3500388234
Total Employees		700

company ADDRESSES

Head Office
Address		Dong Xuyen Industrial Zone, Rach Dua Ward - Vung Tau City - Ba Ria-Vung Tau Province - Vietnam
Telephone		(84-64) 384 8374, 384 8331, 384 8595, 384 8206
Fax		(84-64) 3848373
Email		info@hikosen-cara.com
Occupied Area		18,000m2
Land-use Right		Leased
Note: The correct address is as above.

Branch in Ho Chi Minh
Address		101 Nguyen Hue Street - Ben Nghe Ward - 1 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3821 5054
Fax		(84-8) 3821 5054

DIRECTORS

1 . NAME		Mrs. SACHIKO OKUYAMA
Position		General Director
Current resident		Ba Ria-Vung Tau Province - Vietnam
Nationality		Japanese
Qualification		Management

2 . NAME		Mr. NGUYEN PHUOC LOC
Position		Deputy General Director
Current resident		Ba Ria-Vung Tau Province - Vietnam
Nationality		Vietnamese
Qualification		Management
3 . NAME		Mr. TAKASHI SAKA
Position		Deputy General Director
Current resident		Vung Tau City - Ba Ria-Vung Tau Province - Vietnam
Nationality		Japanese
Qualification		Management

4 . NAME		Mr. NGO QUANG THUY
Position		Chief Accountant
Current resident		Ba Ria-Vung Tau Province - Vietnam
Nationality		Vietnamese
Email		accounting@hikosen-cara.com
Qualification		Bachelor

BUSINESS NATURE AND ACTIVITIES

The subject is specializing in manufacturing and trading in garments, aprons, bags, cushion, table-cover and home accessories.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Market		The subject imports materials from Japan and European countries

EXPORT:
· Market		Japan and Taiwan
· Mode of payment		T/T

BANKERS

1. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM BA RIA-VUNG TAY BRANCH
Address		No.24 Tran Hung Dao Street - No.1 ward - Vung Tau City - Ba Ria-Vung Tau Province - Vietnam
Telephone		(84-64) 3852266

2. ASIA COMMERCIAL BANK VUNG TAU BRANCH
Address		No.3A Tran Hung Dao Street - No.1 ward - Vung Tau City - Ba Ria-Vung Tau Province - Vietnam
Telephone		(84-64) 351 1970
Fax		(84-64) 351 1971

3. TOKYO MITSUBISHI BANK
Address		5B Ton Duc Thang Street - Ben Nghe Ward - 1 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 382 31560
Fax		(84-8) 382 31559

SHAREHOLDERS

NAME		HIKOSEN PLANNING CO., LTD
Address		2-5-9 Nakamachi, Musashino-Shi - - Tokyo - Japan
Tel		+ 81-422-502711
Fax		+ 81-422-502712
Percentage		100%

FINANCIAL DATA

BALANCE SHEET
Unit: One USD
Balance sheet date	31/12/2009
Number of weeks	52
ASSETS
A – CURRENT ASSETS	1,509,809
I. Cash and cash equivalents	90,321
1. Cash	90,321
2. Cash equivalents	0
II. Short-term investments	0
1. Short-term investments	0
2. Provisions for devaluation of short-term investments	0
III. Accounts receivable	535,500
1. Receivable from customers	532,401
2. Prepayments to suppliers	6,087
3. Inter-company receivable	0
4. Receivable according to the progress of construction	0
5. Other receivable	3,443
6. Provisions for bad debts	-6,431
IV. Inventories	797,691
1. Inventories	797,691
2. Provisions for devaluation of inventories	0
V. Other Current Assets	86,297
1. Short-term prepaid expenses	6,176
2. VAT to be deducted	47,598
3. Taxes and other accounts receivable from the State	0
4. Other current assets	32,523
B. LONG-TERM ASSETS	1,050,986
I. Long term account receivable	0
1. Long term account receivable from customers	0
2. Working capital in affiliates	0
3. Long-term inter-company receivable	0
4. Other long-term receivable	0
5. Provisions for bad debts from customers	0
II. Fixed assets	1,039,534
1. Tangible assets	1,039,534
- Historical costs	1,668,363
- Accumulated depreciation	-628,829
2. Financial leasehold assets	0
- Historical costs	0
- Accumulated depreciation	0
3. Intangible assets	0
- Initial costs	0
- Accumulated amortization	0
4. Construction-in-progress	0
III. Investment property	0
Historical costs	0
Accumulated depreciation	0
IV. Long-term investments	1,863
1. Investments in affiliates	0
2. Investments in business concerns and joint ventures	0
3. Other long-term investments	1,863
4. Provisions for devaluation of long-term investments	0
V. Other long-term assets	9,589
1. Long-term prepaid expenses	9,589
2. Deferred income tax assets	0
3. Other long-term assets	0
VI. Goodwill	0
1. Goodwill	0
TOTAL ASSETS	2,560,795

LIABILITIES
A- LIABILITIES	833,323
I. Current liabilities	790,405
1. Short-term debts and loans	257,271
2. Payable to suppliers	202,414
3. Advances from customers	70,373
4. Taxes and other obligations to the State Budget	16,639
5. Payable to employees	156,982
6. Accrued expenses	5,375
7. Inter-company payable	0
8. Payable according to the progress of construction contracts	0
9. Other payable	81,351
10. Provisions for short-term accounts payable	0
II. Long-Term Liabilities	42,918
1. Long-term accounts payable to suppliers	0
2. Long-term inter-company payable	0
3. Other long-term payable	0
4. Long-term debts and loans	42,918
5. Deferred income tax payable	0
6. Provisions for unemployment allowances	0
7. Provisions for long-term accounts payable	0
B- OWNER’S EQUITY	1,727,472
I. OWNER’S EQUITY	1,727,472
1. Capital	700,000
2. Share premiums	0
3. Other sources of capital	0
4. Treasury stocks	0
5. Differences on asset revaluation	0
6. Foreign exchange differences	0
7. Business promotion fund	0
8. Financial reserved fund	0
9. Other funds	0
10. Retained earnings	1,027,472
11. Construction investment fund	0
II. Other sources and funds	0
1. Bonus and welfare funds	0
2. Sources of expenditure	0
3. Fund to form fixed assets	0
MINORITY’S INTEREST	0
TOTAL LIABILITIES AND OWNER’S EQUITY	2,560,795

PROFIT & LOSS STATEMENT

Description	FY2009
1. Total Sale	3,925,560
2. Deduction item	0
3. Net sale	3,925,560
4. Costs of goods sold	2,664,066
5. Gross profit	1,261,494
6. Financial income	29,392
7. Financial expenses	43,790
- In which: Loan interest expenses	31,646
8. Selling expenses	549,792
9. Administrative overheads	472,666
10. Net operating profit	224,638
11. Other income	31,319
12. Other expenses	11,667
13. Other profit /(loss)	19,652
14. Total accounting profit before tax	244,290
15. Current corporate income tax	26,518
16. Deferred corporate income tax	-404
17. Interest from subsidiaries/related companies	0
18. Profit after tax	218,176

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2009	Average Industry
Current liquidity ratio	1.91	1.18
Quick liquidity ratio	0.90	0.72
Inventory circle	3.25	9.18
Average receive period	49.79	64.20
Utilizing asset performance	1.53	1.50
Liability by total asset	32.54	69.79
Liability by owner equity	48.24	238.92
Ebit / Total asset (ROA)	10.78	6.08
Ebit / Owner's equity (ROE)	15.97	21.50
Ebit / Total sale (NPM)	7.03	4.89
Gross profit / Total sale (GPM)	32.14	12.63
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Fair
Liquidity		Medium
Payment status		Above Average
Financial Situation		Above Average
Development trend		Developing
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		Through the Bank
Sale Methods		To contracts
Public opinion		Well-known

CREDIT INQUIRY: 125,000 USD Against da in terms

The subject has capacity to meet this credit inquiry!

INTERPRETATION ON THE SCORES

The subject - HIKOSEN CARA COMPANY LIMITED is a foreign invested company from Japan. which was established in 2000 under investment certificate No. 04/GP-KCN- BV issued by Industrial Zone Authority of Ba Ria - Vung Tau Province and total investment capital 2,000,000 USD.

The subject’s head office and factory are locating at Dong Xuyen Industrial Zone in Vung Tau city – Ba Ria – Vung Tau province with total area 18,000m2. The subject has representative office in Hochiminh City. Currently, the subject has 20 shops in domestic market (Vung Tau: 2 shops, Hochiminh City: 11 Shops, Hanoi City: 5 shops, Nha Trang: 1 shop, Can Tho: 1). The subject has developed many stores selling products that showed consumer demand for domestic goods is growing. The subject’s brand is highly praised in Vietnam and in the world.
The subject is specializing in manufacturing and trading in garments, aprons, bags, cushion, table-cover and home accessories. All of them are designed from Japan with Cats and Dogs characters. The products of the subject are exported about 85% to Japan and Taiwan.
According to the financial data, the business result of the subject in 2009 is fair although the subject has affected by economic crisis. Its sale and profit pre tax in 2009 was high increased compared with 2008 (its sale and profit pre tax in 2008 was 68,300 million VND and 519 million VND). Currently, the sale from domestic market of the subject average increase of 10-15% per year and accounts for 20-25% of the total sale of the subject company. According to deputy general director – Mr. Nguyen Phuoc Loc, in 2009 the subject is one of the companies producing the most stable sale and profit increase compared to 2008 although the export prices decrease, increase labor costs but in return, inputs the first months also decreased by 10% and plus the additional 5% share of domestic sales so the subject's sale in 2009 was still increased.
In general, the subject company is operating fair effectively. Its business situation is now busy. Its management is fairly good. The position in industry of the subject is fair. It has good development and large market share since the establishment. Its current financial status is fair and has good prospect in the future. In our opinion, the subject has capacity to meet small-normal transactions.

APPENDIXES

INDUSTRY DATA

Industry code	Growth speed (%)		Total employees 2009 (Thousand)		Total enterprises	Annual average capital of enterprises
	Predict 2010	2009
Agriculture, Forestry and Fishing	2.8	3.0	24,788.5		2,399	50,530
Trade and Services	7.5	11	10,517.9		79,181	1,754,973
Construction	7	11.3	2,692.8		17,783	248,268
Manufacturing	12	7.6	7,591.2		30,786	967,068

ECONOMIC INDICATORS

			2010	2009		2008
Population (Million person)			86.93	86.02		86.1
Gross Domestic Products (US$ billion)			102.2	91		84.9
GDP Growth (%)			6.78	5.32		6.2
GDP Per Capita (US$)			1,160	1,080		1,040
Inflation (% Change in Composite CPI)			11.75	6.88		24.4

SERVICE TRADE PERFORMANCE

Billion USD			2010	2009		2008
Exports			71.6	56.6		62.9
Imports			84	68.8		76.6
Trade Balance			-12.4	-12.2		-14.6

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.65
UK Pound	1	Rs.71.93
Euro	1	Rs.63.24

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	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

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.