MIRA INFORM REPORT

Report Date :

25.04.2012

IDENTIFICATION DETAILS

Name :	C.M.C VINA CO., LTD
Registered Office :	Lot 11, Road 20, Song Than II Industrial Zone (VSIP 2), Di An Town, Binh Duong Province
Country :	Vietnam
Financials (as on) :	31.12.2010
Year of Establishment :	2002
Legal Form :	Limited Liability Company
Line of Business :	manufacturing and trading in garment products
No. of Employees :	779

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 – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
Vietnam	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
Registration English Name	C.M.C VINA CO., LTD
Registration Vietnamese Name	CONG TY TNHH C.M.C VINA
Registration Short name	CMC VINA
Type of Business	Limited liability company
Year Established	2002
Investment Certificate No	462023000549
Date Of Issuance	11 Jul 2008
Date of Registration	21 Jan 2011
Place of Issuance	Authority of Binh Duong Industrial Zones
Registered Investment Capital	USD 1,866,185
Chartered capital	USD 895,000
Investment Duration	43 years
Tax code	3700424232
Total Employees	779

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Investment Certificate No: 157/GP-KCN-BD issued on 23 Apr 2002 Changed to: 462023000549	11 Jul 2008
2	Subject has got former Shareholders: C.M.C KOREA CO., LTD Changed to: C.P.M, S.A and Mr. Kwon Uk Ju	N/A

company ADDRESSES

Head Office
Address	Lot 11, Road 20, Song Than II Industrial Zone (VSIP 2), Di An Town, Binh Duong Province, Vietnam
Telephone	(84-650) 3732781 / 3732782 / 3732780 / 3732783 / 373269
Fax	(84-650) 3732784
Email	cmcvina@hcm.vnn.vn

DIRECTORS

1. NAME	Mr. KWON WOOK JOO (Kwon Uk Ju)
Position	General Director
Date of Birth	07 Apr 1964
ID Number/Passport	YP1960246
ID Issue Date	07 Aug 2006
ID Issue Place	Ministry of Foreign Affairs and Commerce of Korea
Resident	6/103 Jukong Apt. 532-11/5, Kojan-Dong, Dawon-gu, Ansan-si, Kyunggi-do , Korea
Current resident	Lot 11, Road 20, Song Than II Industrial Zones , Di An Town, Binh Duong Province, Vietnam
Nationality	Korean
2. NAME	Mr. VO HOANG HAI
Position	Managing Director
Nationality	Vietnamese
3. NAME	Ms. NGUYEN THI YEN
Position	Chief of Human Resource
Nationality	Vietnamese
Email	yen.nguyen@cmc-group.net
4. NAME	Ms. VU THI HIEN
Position	Chief Accountant
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject specialized in manufacturing and trading in garment products. Main products of the subject are shirts, short, trousers, swimwear, suit and other related textile products

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	materials
· Market	Korea, USA and ASEAN countries
EXPORT:
· Market	EU and USA

BANKERS

SHINHANVINA JOINT VENTURE BANK HO CHI MINH BRANCH 2
Address	No.3-5 Ho Tung Mau Str - Nguyen Thanh Binh Ward, District 1, Ho Chi Minh City, Vietnam
Telephone	(84-8) 38291581
Fax	(84-8) 3914 2635

SHAREHOLDERS

1. NAME	C.P.M, S.A
Business Registration	45919-549-139
Address	Km 16.5 Carretera A San Juan SAC., Condominio Industrial Mixco Norte Lotes 15Y16, Guatemala
Value of shares	USD 599,650
Percentage	67%
Legal representative person	Mr.CHUNG JONG HWA
2. NAME	Mr. KWON WOOK JOO (Kwon Uk Ju)
Position	General Director
Date of Birth	07 Apr 1964
ID Number/Passport	YP1960246
Issued on	07 Aug 2006
Issued Place	Ministry of Foreign Affairs and Commerce of Korea
Resident	6/103 Jukong Apt. 532-11/5, Kojan-Dong, Dawon-gu, Ansan-si, Kyunggi-do, Korea
Current Resident	Lot 11, Road 20, Song Than 2 Industrial Zones , Di An Town, Binh Duong Province, Vietnam
Nationality	Korean
Value of shares	VND 295,350
Percentage	33%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010	31/12/2009
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	129,210,234,185	71,486,778,246
I. Cash and cash equivalents	9,343,774,248	13,246,447,661
1. Cash	9,343,774,248	13,246,447,661
2. Cash equivalents
II. Short-term investments	3,500,000,000	37,392,400,000
1. Short-term investments	3,500,000,000	37,392,400,000
2. Provisions for devaluation of short-term investments
III. Accounts receivable	83,111,999,801	18,045,531,597
1. Receivable from customers	42,287,892,630	7,810,380,666
2. Prepayments to suppliers	40,817,389,171	3,865,496,765
3. Inter-company receivable
4. Receivable according to the progress of construction
5. Other receivable	6,718,000	6,369,654,166
6. Provisions for bad debts
IV. Inventories	30,524,870,097	1,977,416,791
1. Inventories	30,524,870,097	1,977,416,791
2. Provisions for devaluation of inventories
V. Other Current Assets	2,729,590,039	824,982,197
1. Short-term prepaid expenses		116,527,349
2. VAT to be deducted	2,464,344,064	468,269,793
3. Taxes and other accounts receivable from the State	17,262,926
4. Other current assets	247,983,049	240,185,055
B. LONG-TERM ASSETS	55,200,874,492	34,414,372,208
I. Long term accounts receivable
1. Long term account receivable from customers
2. Working capital in affiliates
3. Long-term inter-company receivable
4. Other long-term receivable
5. Provisions for bad debts from customers
II. Fixed assets	7,170,513,249	7,591,303,456
1. Tangible assets	7,170,513,249	7,591,303,456
- Historical costs	20,568,842,850	18,817,885,689
- Accumulated depreciation	-13,398,329,601	-11,226,582,233
2. Financial leasehold assets
- Historical costs
- Accumulated depreciation
3. Intangible assets
- Initial costs
- Accumulated amortization
4. Construction-in-progress
III. Investment property
Historical costs
Accumulated depreciation
IV. Long-term investments	42,677,765,481	20,722,204,997
1. Investments in affiliates	42,677,765,481	20,722,204,997
2. Investments in business concerns and joint ventures
3. Other long-term investments
4. Provisions for devaluation of long-term investments
V. Other long-term assets	5,352,595,762	6,100,863,755
1. Long-term prepaid expenses	4,017,291,844	4,765,559,836
2. Deferred income tax assets
3. Other long-term assets	1,335,303,918	1,335,303,919
TOTAL ASSETS	184,411,108,677	105,901,150,454
LIABILITIES
A- LIABILITIES	68,921,930,334	17,721,820,062
I. Current liabilities	68,500,409,512	17,593,496,665
1. Short-term debts and loans	18,104,019,969
2. Payable to suppliers	33,739,865,948	9,770,929,588
3. Advances from customers
4. Taxes and other obligations to the State Budget	2,244,550,385	2,559,253,200
5. Payable to employees	4,360,014,901	3,842,867,287
6. Accrued expenses	8,378,923,704	242,014,266
7. Inter-company payable	1,673,034,605	1,178,432,324
8. Payable according to the progress of construction contracts
9. Other payable
10. Provisions for short-term accounts payable
II. Long-Term Liabilities	421,520,822	128,323,397
1. Long-term accounts payable to suppliers
2. Long-term inter-company payable
3. Other long-term payable
4. Long-term debts and loans
5. Deferred income tax payable
6. Provisions for unemployment allowances	421,520,822	128,323,397
7. Provisions for long-term accounts payable
B- OWNER’S EQUITY	115,489,178,343	88,179,330,392
I. OWNER’S EQUITY	115,489,178,343	88,179,330,392
1. Capital	14,025,716,839	14,025,716,839
2. Share premiums
3. Other sources of capital
4. Treasury stocks
5. Differences on asset revaluation
6. Foreign exchange differences
7. Business promotion fund	4,417,673,022	4,417,673,022
8. Financial reserved fund
9. Other funds
10. Retained earnings	97,045,788,482	69,735,940,531
11. Construction investment fund
II. Other sources and funds
1. Bonus and welfare funds
2. Sources of expenditure
3. Fund to form fixed assets
MINORITY’S INTEREST
TOTAL LIABILITIES AND OWNER’S EQUITY	184,411,108,677	105,901,150,454

PROFIT & LOSS STATEMENT
Description	FY2010
1. Total Sales	384,130,945,865
2. Deduction item
3. Net sale	384,130,945,865
4. Costs of goods sold	346,634,243,187
5. Gross profit	37,496,702,678
6. Financial income	3,240,161,628
7. Financial expenses	340,550,490
- In which: Loan interest expenses	338,752,091
8. Selling expenses	1,901,401,489
9. Administrative overheads	9,809,398,157
10. Net operating profit	28,685,514,170
11. Other income	310,363,063
12. Other expenses
13. Other profit /(loss)	310,363,063
14. Total accounting profit before tax	28,995,877,233
15. Current corporate income tax	1,686,029,281
16. Deferred corporate income tax
18. Profit after tax	27,309,847,952

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	Average Industry
Current liquidity ratio	1.89	1.13
Quick liquidity ratio	1.44	0.62
Inventory circle	21.33	5.92
Average receive period	78.97	55.47
Utilizing asset performance	2.08	1.39
Liability by total assets	37.37	70.41
Liability by owner's equity	59.68	301.78
Ebit / Total assets (ROA)	15.91	9.72
Ebit / Owner's equity (ROE)	25.40	34.85
Ebit / Total sale (NPM)	7.64	7.85
Gross profit / Total sale (GPM)	9.76	16.74
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Fair
Liquidity	Medium
Payment status	Normal
Financial Situation	Above Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Direct payment or through its corresponding bank, (T/T, L/C)
Sale Methods	Wholesaler
CREDIT INQUIRY: US$ 125,000, D/A terms

INTERPRETATION ON THE SCORES

C.M.C Vina Co., ltd is a 100% foreign investment company which was established in 2002. Now, C.P.M, S.A and Mr.Kwon Uk Ju are investors of subject. Its head office is at Lot 11, Road 20, Song Than II Industrial Zone (VSIP 2), Di An Town, Binh Duong Province, Vietnam.

The subject specialized in manufacturing and trading in garment products. Main products of the subject are: trousers 1,600,000 dozens/year, shirt 400,000 dozens/year, short 2,400,000 dozens/year, pyjamas 1,600,000 dozens/year, swimwear 2,000,000 dozens/year, suits 3,000,000 dozens/year, textile products 400,000 dozens/year.

Competition capacity of the subject is fair. Market share of the subject is stable. All of its products are for export. Main export markets of subject are EU and USA. Robinson Manufacturing Co., Inc and Selecta Corp LLC are some of the subject traditional clients. Now, the subject is processing products for some famous brands such as JC Penney, Wal-Mart, Fruit of the Loom, Philips Vanheusen... Business of the subject is busy now.

In general, the subject is operating fair effectively. Its annual turnover and profit are fair. The subject has capacity to meet normal financial commitments.

APPENDIX

INDUSTRY DATA
Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2009		Total employees 2010 (Thous.pers.)	Annual average capital of enterprises 2009 (billion dongs)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,749		23,896.3	81,559
Industry and Construction	5.53	7.70	85,115		10,630	2,751,975
Trade and Services	6.69	7.52	154,978		14,522	4,939,069
ECONOMIC INDICATORS
			2011	2010		2009
Population (Million person)			87.84	86.93		86.02
Gross Domestic Products (USD billion)			119	102.2		91
GDP Growth (%)			5.89	6.78		5.32
GDP Per Capita (USD/person/year)			1,300	1,160		1,080
Inflation (% Change in Composite CPI)			18.58	11.75		6.88
State Budget Deficit compared with GDP (%)			4.9	5.8		6.9
SERVICE TRADE PERFORMANCE
Billion USD			2011	2010		2009
Exports			96.3	72.2		57.1
Imports			105.8	84.8		69.9
Trade Balance			-9.5	-12.6		-12.8

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.79
UK Pound	1	Rs.85.17
Euro	1	Rs.69.53

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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