MIRA INFORM REPORT

Report Date :

07.04.2012

IDENTIFICATION DETAILS

Name :	GLOBAL DYEING CO., LTD
Registered Office :	Long Thanh Industrial Zone - Tam An Commune - Long Thanh District - Dong Nai Province
Country :	Viet Nam
Financials (as on) :	30.06.2010
Date of Incorporation :	2004
Legal Form :	Foreign invested company
Line of Business :	Manufacture and trading in fabric
No. of Employees :	700

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

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Viet Nam	B1	B1

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	GLOBAL DYEING CO., LTD
Vietnamese Name	CONG TY TRACH NHIEM HUU HAN GLOBAL DYEING
Trade name	GLOBAL DYEING CO., LTD
Type of Business	Foreign invested company
Year Established	2004
Investment Certificate No	472043000369
Date of investment	08 Jan 2008
Place of investment	Dong Nai Industrial Zone Authority
Registered Investment Capital	USD 64,000,000
Chartered capital	USD 51,500,000
Investment Duration	50 years
Status	Unlisted
Tax code	3600690618
Total Employees	700

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Investment Certificate No: No. 309/GP-KCN-DN issued on August 2nd 2004 Changed to: No. 472043000369	08 Jan 2008
2	Subject has got former Chartered capital: 40,000,000 USD Changed to: USD 51,500,000	N/A
3	Subject has got former Registered Investment Capital: USD 40,000,000 Changed to: USD 64,000,000	N/A

ADDRESSES
Head Office
Address	Long Thanh Industrial Zone - Tam An Commune - Long Thanh District - Dong Nai Province - Vietnam
Telephone	(84-61) 3514050
Fax	(84-61) 3514051
Occupied Area	127,171 square meters
Land-use Right	Leased

DIRECTORS
1 . NAME	Mr. LEE KANG YEOL
Position	General Director
Date of Birth	22 Feb 1962
ID Number/Passport	GU0004278
Resident	7395/3 Baekma 208-102 Madu-dong Isan-gu Goyang - Kyonggi-do 467-850 - Korea, South
Current resident	Long Thanh Industrial Zone - Long Thanh District - Dong Nai Province - Vietnam
Nationality	Korean
Tel/Mobil phone	(84-61) 3514050 ext 6014
Email	kylee@globaldyeing.com
2 . NAME	Ms. KIM HEE JIN
Position	Managing Director
Nationality	Korean
Tel/Mobil phone	(84-61) 3514050/ (84) 958707054
Email	gracekim@globaldyeing.com
3 . NAME	Mr. KIM KIWON
Position	Director of Manufacturing
Current resident	Long Thanh Industrial Zone - Long Thanh District - Dong Nai Province - Vietnam
Nationality	Korean
4 . NAME	Ms. PHAM THI BICH LIEN
Position	Chief Accountant
Contact	Long Thanh Industrial Zone - Long Thanh District - Dong Nai Province - Vietnam
Nationality	Vietnamese
Email	bichlien@globaldyeing.com

BUSINESS NATURE AND ACTIVITIES

- Manufacture and trading in fabric
- Textile
Main products:
- Single jersey: cotton, cotton/modal, CVC and stretched jersey etc
- Various French Terry
- Various fleeces
- Thermal, Drop Needles & various Ribs including spandex ribs
- Pique and spandex pique.
- Paperweight jersey and Velour, Modal, Tencel, Nylon (2007).
- Major yarns: Cotton, Cotton/Polyester, Polyester/Cotton, Cotton/Modal, and Polyester.
  Tencel, Lyocell, Modal, Rayon spun yarn

IMPORT & EXPORT ACTIVITIES
IMPORT:
Types of products	Materials for production
Market	Korea, India, Indonesia
Mode of payment	L/C, T/T
EXPORT:
Types of products	Finished fabric
Market	Korea, Indonesia, Cambodia
Ratio	90%
Mode of payment	L/C, T/T

BANKERS
1. SHINHANVINA JOINT VENTURE BANK
Address	100 Nguyen Thi Minh Khai Str - Ward 6 - 3 District - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3829-1581
Fax	(84-8) 3821-1648
2. KEXIM VIETNAM LEASING COMPANY LIMITED
Address	9^th loor, Diamond Plaza, No.34 Le Duan Street - 1 District - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3825 7000
Fax	(84-8) 3823 0854

SHAREHOLDERS
1 . NAME	HAN-SOLL TEXTILE., LTD
Position	Shareholder
Address	651-3 Yeoksam - Dong Kangnam-Ku - Seoul - Korea, South
Percentage	100%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	30/06/2010	31/12/2009	31/12/2008
Number of weeks	26	52	52
ASSETS
A – CURRENT ASSETS	768,798,685,710	436,997,216,624	258,278,782,647
I. Cash and cash equivalents	31,142,985,496	13,402,339,348	17,678,105,009
1. Cash	31,142,985,496	13,402,339,348	17,678,105,009
2. Cash equivalents	0	0	0
II. Short-term investments	0	0	0
1. Short-term investments	0	0	0
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	108,440,368,712	102,409,500,396	74,700,948,273
1. Receivable from customers	81,239,450,665	83,979,662,892	71,038,857,639
2. Prepayments to suppliers	25,977,604,402	13,557,868,127	2,062,792,144
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	3,089,179,891	6,737,835,623	1,599,298,4900
6. Provisions for bad debts	-1,865,866,246	-1,865,866,246	0
IV. Inventories	601,891,194,872	305,248,019,442	159,675,209,099
1. Inventories	601,891,194,872	305,248,019,442	159,675,209,099
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	27,324,136,630	15,937,357,438	6,224,520,266
1. Short-term prepaid expenses	1,356,808,160	375,460,960	218,469,149
2. VAT to be deducted	25,967,328,470	15,062,898,320	5,646,566,212
4. Other current assets	0	498,998,158	359,484,905
B. LONG-TERM ASSETS	432,104,912,719	421,036,341,102	377,336,341,565
I. Long term account receivable	0	557,181,078	0
1. Long term account receivable from customers	0	0	0
2. Working capital in affiliates	0	0	0
3. Long-term inter-company receivable	0	0	0
4. Other long-term receivable	0	557,181,078	0
5. Provisions for bad debts from customers	0	0	0
II. Fixed assets	395,699,008,934	383,304,601,276	331,197,259,613
1. Tangible assets	352,660,329,350	345,966,993,192	269,488,318,868
- Historical costs	440,583,921,857	421,831,819,437	324,350,454,275
- Accumulated depreciation	-87,923,592,507	-75,864,826,245	-54,862,135,407
2. Financial leasehold assets	2,385,224,119	2,489,686,489	2,698,611,229
- Historical costs	3,133,871,104	3,133,871,104	3,133,871,104
- Accumulated depreciation	-748,646,985	-644,184,615	-435,259,875
3. Intangible assets	34,428,095,465	34,847,921,595	35,727,894,116
- Initial costs	39,339,876,509	39,339,876,509	39,339,876,509
- Accumulated amortization	-4,911,781,044	-4,491,954,914	-3,611,982,393
4. Construction-in-progress	6,225,360,000	0	23,282,435,400
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	0	0	0
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	0	0
3. Other long-term investments	0	0	0
4. Provisions for devaluation of long-term investments	0	0	0
VI. Other long-term assets	36,405,903,785	37,174,558,748	46,139,081,952
1. Long-term prepaid expenses	35,825,769,214	37,174,558,748	44,008,935,268
2. Deferred income tax assets	0	0	0
3. Other long-term assets	580,134,571	0	2,130,146,684
TOTAL ASSETS	1,200,903,598,429	858,033,557,726	635,615,124,212
LIABILITIES
A- LIABILITIES	670,881,313,624	391,199,919,291	254,832,246,401
I. Current liabilities	669,840,468,295	390,159,073,962	253,234,176,704
1. Short-term debts and loans	161,701,411,512	111,453,419,105	105,889,625,516
2. Payable to suppliers	506,320,002,483	276,162,112,386	144,623,410,343
3. Advances from customers	144,078,057	47,933,867	687,998,113
4. Taxes and other obligations to the State Budget	879,445,832	629,564,991	561,817,433
5. Payable to employees	0	1,484,853,000	1,240,106,000
6. Accrued expenses	334,000,195	0	0
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	461,530,216	381,190,613	231,219,299
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	1,040,845,329	1,040,845,329	1,598,069,697
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	106,550,100	106,550,100	106,550,100
4. Long-term debts and loans	875,461,056	875,461,056	1,491,519,597
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	58,834,173	58,834,173	0
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	530,022,284,805	466,833,638,435	380,782,877,811
I. OWNER’S EQUITY	530,022,284,805	466,833,638,435	380,782,877,811
1. Capital	483,311,345,570	483,311,345,570	483,311,345,570
2. Share premiums	0	0	0
3. Other sources of capital	0	0	0
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	0	0	0
7. Business promotion fund	0	0	0
8. Financial reserved fund	0	0	0
9. Other funds	0	0	0
10. Retained earnings	46,710,939,235	-16,477,707,135	-102,528,467,759
11. Construction investment fund	0	0	0
II. Other sources and funds	0	0	0
1. Bonus and welfare funds	0	0	0
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	1,200,903,598,429	858,033,557,726	635,615,124,212

PROFIT & LOSS STATEMENT
Description	The first 6 months of 2010	FY2009	FY2008
1. Total Sale	654,067,046,643	1,284,594,338,629	949,810,634,314
2. Deduction item	0	0	0
3. Net revenue	654,067,046,643	1,284,594,338,629	949,810,634,314
4. Costs of goods sold	547,039,787,134	1,097,302,158,110	867,341,246,832
5. Gross profit	107,027,259,509	187,292,180,519	82,469,387,482
6. Financial income	10,460,755,613	31,428,657,887	8,538,745,780
7. Financial expenses	10,068,113,208	51,110,627,677	24,199,480,909
- In which: Loan interest expenses	3,535,744,008	4,863,626,080	7,283,028,890
9. Administrative overheads	26,041,084,745	45,877,023,041	37,866,226,062
10. Net operating profit	63,177,465,609	83,763,230,413	10,017,811,809
11. Other income	514,957,610	4,054,746,262	857,305,568
12. Other expenses	503,759,840	1,767,216,051	1,562,370,908
13. Other profit /(loss)	11,197,770	2,287,530,211	-705,065,340
14. Total accounting profit before tax	63,188,663,379	86,050,760,624	9,312,746,469
15. Current corporate income tax	0	0	0
16. Deferred corporate income tax	0	0	0
17. Profit after tax	63,188,663,379	86,050,760,624	9,312,746,469

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	The first 6 months of 2010	FY2009	FY2008	Average Industry
Current liquidity ratio	1.15	1.12	1.02	1.56
Quick liquidity ratio	0.25	0.34	0.39	1.09
Inventory circle	0.91	3.59	5.92	35.05
Average receive period	60.51	29.10	28.71	69.03
Utilizing asset performance	0.54	1.50	1.49	1.62
Liability by total asset	55.86	45.59	40.09	64.22
Liability by owner equity	126.58	83.80	66.92	344.12
Ebit / Total asset (ROA)	5.56	10.60	2.61	6.74
Ebit / Owner's equity (ROE)	12.59	19.47	4.36	25.13
Ebit / Total revenue (NPM)	10.20	7.08	1.75	4.75
Gross profit / Total revenue (GPM)	16.36	14.58	8.68	15.45
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

CASH FLOW STATEMENT
(Indirect method)
Items		FY2009	FY2008
I. Cash flows from operating activities
1. Profit before tax		86,050,760,624	9,312,746,469
2. Adjustments
- Depreciation and amortization		21,882,663,359	18,411,634,227
- Provisions		1,865,866,246	0
- Unrealized foreign exchange difference		0	756,098,180
- Gain/loss from investing activities		0	0
- Interest expense		4,863,626,080	7,283,028,890
3. Operating profit before movements in working capital		114,662,916,309	35,763,507,766
- (Increase)/Decrease in receivables		-37,557,298,124	-42,884,945,275
- (Increase)/Decrease in inventories		-145,572,810,343	-26,198,913,655
- Increase/(Decrease) in accounts payable		-606,755,562,957	-27,503,251,628
- (Increase)/Decrease in prepaid expenses		6,677,384,709	-14,246,550,381
- Interest paid		-4,863,626,080	-7,283,028,890
- Corporate income tax paid		0	0
- Other cash inflows		0	0
- Other cash outflows		0	0
Net cash from (used in) operating activities		-673,408,996,486	-82,353,182,063
II. Cash flows from investing activities
1. Acquisition of fixed assets and other long - term assets		-73,990,005,022	-45,562,462,459
2. Proceeds from fixed assets and long - term assets disposal		0	0
3. Cash outflow for lending, buying debt instruments of other companies		0	0
4. Cash recovered from lending, selling debt instruments of other companies		0	0
5. Investment in other entities		0	0
6. Cash recovered from investments in other entities		0	0
7. Interest income, dividend and profit paid		0	0
Net cash from (used in) investing activities		-73,990,005,022	-45,562,462,459
III. Cash flows from financing activities
1. Proceeds from issuing stocks, receiving capital from owners		0	149,029,942,250
2. Capital withdrawal, buying back issued stocks		0	0
3. Proceeds from borrowings		374,343,514,718	-18,062,538,022
4. Repayment of borrowings		368,779,721,129	0
5. Repayment of obligations under finance leased		0	0
6. Dividends paid		0	0
Net cash from (used in) financing activities		743,123,235,847	130,967,404,228
Net increase/(decrease) in cash and cash equivalents		-4,275,765,661	3,051,759,706
Cash and cash equivalents at beginning of year		17,678,105,009	15,382,443,483
Effect from changing foreign exchange rate		0	-756,098,180
Cash and cash equivalents at end of year		13,402,339,348	17,678,105,009
PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Fair
Liquidity	Medium
Payment status	Above Average
Financial Situation	Above Average
Development trend	Uptrend
Litigation data	No
Bankruptcy	No
Payment Methods	L/C, TT
Sale Methods	OEM Supplier

INTERPRETATION ON THE SCORES

GLOBAL DYEING CO., LTD is a 100% Korean invested company. It was officially licensed in 2004 with current total registered investment capital of USD 64,000,000. In early 2008, the subject revised investment license to investment certificate No.472043000369 pursuant to new laws. After establishment, the subject started building factory and came into operation from April 2005. Currently, the subject is located in Long Thanh Industrial Zone - Long Thanh District - Dong Nai Province - Vietnam.

The subject focuses on manufacturing of kinds of fabric to supply for garment marking companies in foreign market, especially for members of Han-Soll Textile Co., Ltd which is the parent company of the subject. The subject’s products are mainly exported to Korea. The materials for productions are imported from Korea, India, Indonesia. Some main products include:

• Single jersey: cotton, cotton/modal, CVC and stretched jersey etc

• Various French Terry

• Various fleeces

• Thermal, Drop Needles & various Ribs including spandex ribs

• Pique and spandex pique.

• Paperweight jersey and Velour, Modal, Tencel, Nylon

• Major yarns: Cotton, Cotton/Polyester, Polyester/Cotton, Cotton/Modal, and Polyester.

According to financial data in recent years, the subject’s business operations are fairly efficient: total revenue and profit after tax have been increased since 2007 to present. The subject’s debt ratio was quite low and in late second quarter 2010 increased to 55.86% show it has strong financial capability, safe capital structure. However, due to it maintains short-term debt rate and inventory rate is very high, it makes its current liquidity and quick liquidity are much lower than industry average, cause from the characteristics of the textile industry.

The subject’s utilizing asset performance was lower than the average industry due to inventory rotation speed was too low. However, its receivables recovery speed was much faster than the industry average, thus improving the capital rotation.

In 2009 profitability of the subject increased and was higher than the industry because it has managed costs more efficiently, cost per unit of product decreased, utilizing asset performance increased slightly, financial leverage increased. This trend suggests a growing performance operation.

In general, the subject is a large company in the industry. With higher self-financing, fairly effective operation and good profitability, it can implement the small and medium payment commitments. Therefore, no caution needed for small-normal transaction with the subject.

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
			2009	2008		2007
Population (Million person)			87	86.1		85.1
Gross Domestic Products (US$ billion)			91	84.9		71.2
GDP Growth (%)			5.32	6.2		8.5
GDP Per Capita (US$)			1,080	1,040		814
Inflation (% Change in Composite CPI)			6.88	24.4		8.3
SERVICE TRADE PERFORMANCE
Billion USD			2009	2008		2007
Exports			56.6	62.9		48.6
Imports			68.8	76.6		58.9
Trade Balance			-12.2	-14.6		-10.3

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.04
UK Pound	1	Rs.81.08
Euro	1	Rs.67.39

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%)

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.