MIRA INFORM REPORT

Report Date :

12.09.2011

IDENTIFICATION DETAILS

Name :	TAINAN SPINNING COMPANY LIMITED (VIETNAM)

Registered Office :	No. 9 Road 17A, Bien Hoa II Industrial Zone - Dong Nai Province

Country :	Vietnam

Financials (as on) :	31.12.2009

Year of Establishment :	1996

Legal Form :	Foreign invested company

Line of Business :	Manufacturing and trading yarn and fabric

RATING & COMMENTS

MIRA’s Rating :

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

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 – March 31^st, 2011

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

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		TAINAN SPINNING COMPANY LIMITED (VIETNAM)
Vietnamese Name		CONG TY HUU HAN SOI TAINAN (VIET NAM)
Trade name		TAINAN SPINNING CO., LTD (VIETNAM)
Type of Business		Foreign invested company
Year Established		1996
Investment Certificate No		472043000478
Date of investment		23 May 2008
Place of investment		Dong Nai Province Department of Planning and Investment
Registered Investment Capital		145,000,000 USD
Chartered capital		145,000,000 USD
Status		Unlisted
Tax code		3600249837
Total Employees		4,000
Note		The given name is not correct. The right name is as above.

Historical Identification & Legal form

List

Changed Items

Date of changes

Subject has got former Investment Certificate No: 1491/GP Dated February 3, 1996 Changed to: 472043000478

May 23, 2008

Subject has got former Chartered capital: 99,000,000 USD

Changed to: 145,000,000 USD

18 Aug 2008

company ADDRESSES

Head Office
Address		No. 9 Road 17A, Bien Hoa II Industrial Zone - Dong Nai Province - Vietnam
Telephone		(84-61) 3836671
Fax		(84-61) 3834728/ 3836610
Email		tainan@hcm.vnn.vn

Branch in Ho Chi Minh
Address		No.207/6 Nguyen Van Thu Street - 1 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 38257 599/ 38257588
Fax		(84-8) 38257 588
Notes: Formerly, The company located at No. 2, Tran Cao Van, Da Kao Ward, Dist 1, Hochiminh City

SUBSIDIARIES AND RELATED COMPANIES

PARENT COMPANY - TAINAN SPINNING CO.,LTD
Address		No. 511 Yunong Road, East District, Tainan City 701, Taiwan (R.O.C) - - Taiwan - Taiwan
Tel		886-6-2376161
Fax		886-62361156
Website		http://www.tainanspin.com.tw

DIRECTORS

1 . NAME		Mr. LO YAO TANG
Position		General Director
Resident		No. 9 Road 17A, Bien Hoa II Industrial Zone - Dong Nai Province - Vietnam
Nationality		Taiwanese
Note		Formerly, Mr. Mr. HUANG RUEY –DER is general director of the subject.

2 . NAME		Mr. CHENG KAO HUEI
Position		Vice General Director
Nationality		Taiwanese

BUSINESS NATURE AND ACTIVITIES

The company is focusing on
Manufacturing and trading yarn and fabric
Importing and exporting yarn and fabric

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		Yarn
· Market		Taiwan, China…
· Mode of payment		L/C, TT

EXPORT:
· Types of products		Products
· Market		Hong Kong, Korea, Japan, Southeast Asia, India, Europe…
· Mode of payment		L/C, TT

BANKERS

1. ANZ BANK
Address		No. 11 Me Linh Square, Ben Nghe Ward, - 1 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 38299319
Fax		(84-8) 38299316

2. CHINFON BANK - HOCHIMINH CITY BRANCH
Address		27, Ward 17 Tu Xuong - 3 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3932 5888
Fax		(84-8) 3932 6431

SHAREHOLDERS

1 . NAME		TAINAN SPINNING CO.,LTD
Address		No. 511 Yunong Road, East District, Tainan City 701, Taiwan (R.O.C) - - Taiwan - Taiwan
Tel		886-6-2376161
Fax		886-62361156
Percentage		100%

FINANCIAL DATA


BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2009	31/12/2008
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	1,498,336,000,000	2,009,468,000,000
I. Cash and cash equivalents	265,235,000,000	107,244,000,000
1. Cash	265,235,000,000	107,244,000,000
2. Cash equivalents	0	0
II. Short-term investments	0	401,416,000,000
1. Short-term investments	0	401,416,000,000
2. Provisions for devaluation of short-term investments	0	0
III. Accounts receivable	441,604,000,000	479,556,000,000
1. Receivable from customers	342,881,000,000	167,507,000,000
2. Prepayments to suppliers	27,666,000,000	216,429,000,000
3. Inter-company receivable	64,372,000,000	74,463,000,000
4. Receivable according to the progress of construction	0	0
5. Other receivable	6,685,000,000	21,157,000,000
6. Provisions for bad debts	0	0
IV. Inventories	758,233,000,000	963,926,000,000
1. Inventories	758,233,000,000	1,119,912,000,000
2. Provisions for devaluation of inventories	0	-155,986,000,000
V. Other Current Assets	33,264,000,000	57,326,000,000
1. Short-term prepaid expenses	267,000,000	2,388,000,000
2. VAT to be deducted	16,249,000,000	36,731,000,000
3. Taxes and other accounts receivable from the State	0	861,000,000
4. Other current assets	16,748,000,000	17,346,000,000
B. LONG-TERM ASSETS	1,782,313,000,000	1,838,708,000,000
I. Long term account receivable	0	0
1. Long term account receivable from customers	0	0
2. Working capital in affiliates	0	0
3. Long-term inter-company receivable	0	0
4. Other long-term receivable	0	0
5. Provisions for bad debts from customers	0	0
II. Fixed assets	1,591,785,000,000	1,575,000,000,000
1. Tangible assets	1,591,785,000,000	1,575,000,000,000
- Historical costs	3,058,713,000,000	2,804,559,000,000
- Accumulated depreciation	-1,466,928,000,000	-1,229,559,000,000
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	0	0
- Initial costs	0	0
- Accumulated amortization	0	0
4. Construction-in-progress	0	0
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	190,528,000,000	263,434,000,000
1. Investments in affiliates	0	190,527,000,000
2. Investments in business concerns and joint ventures	190,528,000,000	0
3. Other long-term investments	0	72,907,000,000
4. Provisions for devaluation of long-term investments	0	0
V. Other long-term assets	0	274,000,000
1. Long-term prepaid expenses	0	0
2. Deferred income tax assets	0	274,000,000
3. Other long-term assets	0	0
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	3,280,649,000,000	3,848,176,000,000
LIABILITIES
A- LIABILITIES	820,279,000,000	1,660,431,000,000
I. Current liabilities	813,010,000,000	1,653,818,000,000
1. Short-term debts and loans	640,332,000,000	1,472,042,000,000
2. Payable to suppliers	104,819,000,000	73,481,000,000
3. Advances from customers	6,103,000,000	2,036,000,000
4. Taxes and other obligations to the State Budget	10,451,000,000	274,000,000
5. Payable to employees	17,738,000,000	12,594,000,000
6. Accrued expenses	18,841,000,000	8,149,000,000
7. Inter-company payable	13,330,000,000	84,314,000,000
8. Payable according to the progress of construction contracts	0	0
9. Other payable	1,396,000,000	928,000,000
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	7,269,000,000	6,613,000,000
1. Long-term accounts payable to suppliers	0	0
2. Long-term inter-company payable	0	0
3. Other long-term payable	0	0
4. Long-term debts and loans	0	0
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	7,269,000,000	6,613,000,000
7. Provisions for long-term accounts payable	0	0
B- OWNER’S EQUITY	2,460,370,000,000	2,187,745,000,000
I. OWNER’S EQUITY	2,460,370,000,000	2,187,745,000,000
1. Capital	2,199,194,000,000	2,199,194,000,000
2. Share premiums	0	0
3. Other sources of capital	0	0
4. Treasury stocks	0	0
5. Differences on asset revaluation	467,000,000	466,000,000
6. Foreign exchange differences	0	0
7. Business promotion fund	0	0
8. Financial reserved fund	0	0
9. Other funds	0	0
10. Retained earnings	260,709,000,000	-11,915,000,000
11. Construction investment fund	0	0
II. Other sources and funds	0	0
1. Bonus and welfare funds	0	0
2. Sources of expenditure	0	0
3. Fund to form fixed assets	0	0
MINORITY’S INTEREST		0
TOTAL LIABILITIES AND OWNER’S EQUITY	3,280,649,000,000	3,848,176,000,000

PROFIT & LOSS STATEMENT

Description	FY2009	FY2008
1. Total Sale	3,478,841,000,000	2,908,630,000,000
2. Deduction item	3,909,000,000	81,000,000
3. Net sale	3,474,932,000,000	2,908,549,000,000
4. Costs of goods sold	2,986,104,000,000	2,830,347,000,000
5. Gross profit	488,828,000,000	78,202,000,000
6. Financial income	35,437,000,000	40,129,000,000
7. Financial expenses	60,498,000,000	118,675,000,000
- In which: Loan interest expenses	0	0
8. Selling expenses	133,040,000,000	120,214,000,000
9. Administrative overheads	47,399,000,000	48,627,000,000
10. Net operating profit	283,328,000,000	-169,185,000,000
11. Other income	15,306,000,000	12,523,000,000
12. Other expenses	0	1,155,000,000
13. Other profit /(loss)	15,306,000,000	11,368,000,000
14. Total accounting profit before tax	298,634,000,000	-157,817,000,000
15. Current corporate income tax	25,734,000,000	0
16. Deferred corporate income tax	275,000,000	275,000,000
17. Interest from subsidiaries/related companies
18. Profit after tax	272,625,000,000	-157,542,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2009	FY2008	Average Industry
Current liquidity ratio	1.84	1.22	1.18
Quick liquidity ratio	0.91	0.63	0.72
Inventory circle	3.94	2.94	9.18
Average receive period	46.39	60.18	64.20
Utilizing asset performance	1.06	0.76	1.50
Liability by total asset	25.00	43.15	69.79
Liability by owner equity	33.34	75.90	238.92
Ebit / Total asset (ROA)	9.10	-4.10	6.08
Ebit / Owner's equity (ROE)	12.14	-7.21	21.50
Ebit / Total sale (NPM)	8.58	-5.43	4.89
Gross profit / Total sale (GPM)	14.05	2.69	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		Positive
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		L/C, TT, through its banks
Sale Methods		Other

INTERPRETATION ON THE SCORES

TAINAN SPINNING CO., LTD (VIETNAM) was established in 1996 in Dong Nai province by TAINAN SPINNING CO., LTD from Taiwan. Initial the subject run business following the Investment Certificate No. 1491/GP. Since May 23, 2008 the subject has operated according to the new investment certificate No. 472043000478. Currently, the subject has a big business scale with about 4,000 staffs. It is managed by Mr. LO YAO TANG.

The subject has head office at No. 9 Road 17A, Bien Hoa II Industrial Zone - Dong Nai Province – Vietnam. The subject also has a branch at No. 207/6 Nguyen Van Thu Street - 1 District - Ho Chi Minh City – Vietnam. The subject specializes in manufacturing, processing and trading various textile products and synthetic fiber materials. Tainan Spinning Co., Ltd is also engaged in the construction, lease and sale of apartments, residential and commercial buildings. The subject’s products are exported to Hong Kong, Korea, Japan, Southeast Asia, India, and Europe.

The company has received many awards such as Golden Dragon Ward, Typical Company in textiles in 2006. In October 4, 2009, the company’s warehouse was burnt. In this conflagration, there are about 1,000 quarter meter of warehouse area that was burnt down. That is a big damage to the company.

Based on the subject’s financial statements in 2009, total assets had a soft decrease comparison with the previous year. However, in this year liabilities also decreased about VND 840,152,000,000 therefore, liquidity ratios of the subject were not affected. Comparison with year 2008 the subject’s financial ratios were improved more. That reflected a good year in doing business of the subject. Income statement showed more detail about this. Total sale in 2009 increased of 16.39 % comparison with year 2008. In 2008 the subject was lost in doing business because of spending much on Financial expenses. However, in 2009 the subject had a big profit with amount as VND 272,625,000,000.

With over 13 years of formation and development, the company has a fairly good position and prestige in this field. It can meet all 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.46.38
UK Pound	1	Rs.74.01
Euro	1	Rs.64.48

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
--	NB	New Business	--

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