MIRA INFORM REPORT

Report Date :

13.06.2012

IDENTIFICATION DETAILS

Correct Name :	HANDICRAFT AND ART ARTICLES EXPORT- IMPORT CORPORATION

Registered Office :	Artexport House Building - No. 2A - Pham Su Manh Str Phan Chu Trinh Ward - Hoan Kiem District - Ha Noi City

Country :	Vietnam

Financials (as on) :	31.12.2009

Date of Incorporation :	18.01.2005

Com. Reg. No.:	0103006536

Legal Form :	Joint Stock Company

Line of Business :	Trading, importing and exporting handcrafts and art articles, material, machines and equipment for construction, office electric

No. of Employees :	124

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, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Viet Nam

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		HANDICRAFT AND ART ARTICLES EXPORT- IMPORT CORPORATION
Vietnamese Name		CONG TY CO PHAN XUAT NHAP KHAU THU CONG MY NGHE
Short name		ARTEXPORT HA NOI
Type of Business		Joint stock company
Year Established		1964
Establishment Decision		617/BNGT-TCCB
Date of Issuance		23 Dec 1964
Place of Issuance		Ministry of Foreign Trade
Business Registration No.		0103006536
Date of Registration		18 Jan 2005
Place of Registration		Hanoi City Planning & Investment Department
Current registered capital		85,220,000,000 VND
Status		Unlisted
Tax code		0100107356
Total Employees		124
Note		The correct subject name is as above

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Type of Business: State Owned Enterprise Changed to: Joint Stock Company	04 Oct 2004
2	Subject has got former Registered English Name: HANDICRAFT AND ART ARTICLES EXPORT- IMPORT JOINT STOCK COMPANY Changed to: HANDICRAFT AND ART ARTICLES EXPORT- IMPORT CORPORATION	N/A
3	Subject has got former Business Registration No: 108474 issued on May 14, 1993 Changed to: 0103006536 Dated 18 January 2005	18 Jan 2005
4	Subject has got former registered capital: 55,000,000,000 VND Changed to: 85,220,000,000 VND	N/A

ADDRESSES

Head Office
Address		Artexport House Building - No. 2A - Pham Su Manh Str Phan Chu Trinh Ward - Hoan Kiem District - Ha Noi City - Vietnam
Telephone		(84-4) 3826 5438, 38252760, 38266576
Fax		(84-4) 3825 9275
Email		trade@artexport.com.vn
Website		http://www.artexport.com.vn

Workshop Address and Warehouse
Address		Thanh Lan Commune - Thanh Tri District - Ha Noi City
Country		Vietnam
Telephone		(84–4) 38610093/ 36446003/ 36446191
Note: There are about 50 employees working here with total area of 6,000 square meters

Former Workshop Address
Address		Hamlet 1, Dong My commune - Thanh Tri District - Ha Noi City - Vietnam
Telephone		(84–4) 3686022/ 38615244

Fomer Workshop Address
Address		Bat Trang Commune – Gia Lam District – Ha Noi City – Vietnam
Telephone		(84–4) 38740021

Branch in Ho Chi Minh
Address		No. 31 Tran Quoc Thao Str Ward 6 – 3 District – Ho Chi Minh City
Country		Vietnam
Telephone		(84-8) 39304357/ 38244357 / 39303748
Fax		(84-8) 3930383
Email		arthcm@hcm.fpt.vn
Website		www.artexporthcm.com

Branch in Da Nang
Address		No. 74 Trung Nu Vuong Str - Hai Chau District - Da Nang City
Country		Vietnam
Telephone		(84-511) 3823749/ 3823751
Fax		(84-511) 3823747

Branch in Hai Phong
Address		No. 25 Da Nang - May To Ward - Ngo Quyen District - Hai Phong City
Country		Vietnam
Telephone		(84-31) 3836537/ 3836516
Fax		(84-31) 3836704

SUBSIDIARIES AND RELATED COMPANIES

The company has one subsidiary as follows
English Name		SERVICES AND TRADING ARTEXPORT COMPANY LIMITED
Vietnamese Name		CONG TY TNHH ARTEXPORT THUONG MAI VA DICH VU
Business Registration		0104005892
Address		Floor 9, Artexport Building- No. 31-33 Ngo Quyen Hang Bai Ward - Hoan Kiem District - Ha Noi City
Country		Vietnam

DIRECTORS

1 . NAME		Ms. DUONG THI NGAN
Position		Chairwoman cum Deputy General Director
Contact address		Artexport House Building - No. 2A - Pham Su Manh Str Phan Chu Trinh Ward - Hoan Kiem District - Ha Noi City
Nationality		Vietnamese
Work phone		(84-4) 38265438

2 . NAME		Mr. TRINH QUOC THAI
Position		General Director
Date of Birth		22 Apr 1967
Passport		PTA1407636A
Resident		No.23 Doan Nhu Hai Tran Quoc Toan Str - Hoan Kiem District - Ha Noi City
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

The company is involving in:
4Trading, importing and exporting handcrafts and art articles, material, machines and equipment for construction, office electric
4Producing and processing wooden products, fine arts, embroideries, consumer goods
4Trading real estate, office leasing
4Trading agent for producers, commerce, organizer trade fairs, handicrafts and art articles exhibition in Vietnam and foreign countries
4Trading vehicles
4Importing and exporting products of the company

IMPORT & EXPORT ACTIVITIES

IMPORT:
Types of products		Equipments and Materials
Market		USA, Japan, Germany, China, England and Singapore.
Mode of payment		L/C, TT

EXPORT:
Types of products		Its products
Market		Japan, Europe countries, USA
Ratio		100%
Mode of payment		L/C, TT

BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
Address		No. 198 Tran Quang Khai Street - Hoan Kiem District - Ha Noi City - Vietnam
Telephone		(84-4) 3934 3137/ 3814 8919
Fax		(84-4) 3826 9067/ 3825 1322

2. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK HA NOI BRANCH
Address		No.18 Tran Hung Dao Street - Hai Ba Trung District - Ha Noi City - Vietnam
Telephone		(84-4) 38242 306
Fax		(84-4) 38267 798
SWIFT Code		EBVIVNVX

SHAREHOLDERS

1 . NAME		STATE CAPITAL INVESTMENT CORPORATION
Business Registration		0106000737
Address		No. 15A Tran Khanh Du Street - Hoan Kiem District - Ha Noi City
Country		Vietnam
Tel		(84-4) 62780126
Fax		(84-4) 62780136
Number of shares		739,200
Value of shares		7,392,000,000 VND

2 . NAME		Mr. NGUYEN VAN BINH
Date of Birth		20 Mar 1962
ID Number		010194842
Issued on		07 Jul 1998
Issued Place		Police station of Hanoi City
Resident		07 Nam Trang Str Truc Bach Ward - Ba Dinh District - Ha Noi City
Nationality		Vietnamese
Number of Shares		614,590
Value of shares		6,145,900,000 VND

3 . NAME		Mr. NGUYEN VAN CAN
ID Number		010060393
Resident		No.20 Branch 26 - Alley 162 Doi Can Doi Can Ward - Ba Dinh District - Ha Noi City
Nationality		Vietnamese
Number of Shares		47,560
Value of shares		475,500,000 VND

4 . NAME		Ms. LE THI MY HOAN
ID Number		011152771
Resident		No. 13 Phu Dong Thien Vuong Ngo Thi Nham Ward - Hai Ba Trung District - Ha Noi City
Nationality		Vietnamese
Number of Shares		156,220
Value of shares		1,562,200,000 VND

5 . NAME		Ms. NGUYEN THI KIM HUONG
ID Number		010065157
Resident		No. 24 - Alley 4 - Nguyen Son Str Bo De Ward - Long Bien District - Ha Noi City
Nationality		Vietnamese
Number of Shares		33,980
Value of shares		339,800,000 VND

6 . NAME		Mr. HA XUAN KHANG
ID Number		011485968
Resident		No. 12E - Van Ho 2 Le Dai Hanh Ward - Hai Ba Trung District - Ha Noi City
Nationality		Vietnamese
Number of Shares		110,890
Value of shares		1,108,900,000 VND

7 . NAME		Mr. DO VAN KHOI
Date of Birth		01 Jan 1956
ID Number		010060392
Resident		No. 15 - Kim Dong Str Giap Bat Ward - Hoang Mai District - Ha Noi City
Nationality		Vietnamese
Number of Shares		298,968
Value of shares		2,989,680,000 VND

8 . NAME		Mr. VU VAN PHUC
Date of Birth		17 Oct 1951
ID Number		011075325
Issued on		29 Jun 1999
Issued Place		Hanoi Department of Police
Resident		135/73/3 - No. 20. Doi Can Str Ngoc Ha Ward - Ba Dinh District - Ha Noi City
Nationality		Vietnamese
Number of Shares		55,730
Value of shares		557,300,000 VND

9 . NAME		354 OTHER SHAREHOLDERS
Number of shares		4,917,612
Value of shares		49,176,120,000 VND

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2009		31/12/2008	31/12/2007
Number of weeks	52		52	52
ASSETS
A – CURRENT ASSETS	132,649,799,428	136,771,000,000		268,729,831,005
I. Cash and cash equivalents	7,789,939,369	8,242,000,000		39,334,436,664
1. Cash	7,789,939,369	8,242,000,000		39,334,436,664
2. Cash equivalents	0	0		0
II. Short-term investments	0	8,482,000,000		9,971,250,000
1. Short-term investments	0	9,510,000,000		10,334,611,650
2. Provisions for devaluation of short-term investments	0	-1,028,000,000		-363,361,650
III. Accounts receivable	101,040,635,240	102,831,000,000		177,415,961,214
1. Receivable from customers	79,715,319,202	83,601,000,000		107,470,538,582
2. Prepayments to suppliers	18,285,627,898	13,306,000,000		27,093,657,220
3. Inter-company receivable	0	0		0
4. Receivable according to the progress of construction	0	0		0
5. Other receivable	3,039,688,140	5,924,000,000		42,851,765,412
6. Provisions for bad debts	0	0		0
IV. Inventories	13,786,654,503	8,057,000,000		30,060,090,910
1. Inventories	13,786,654,503	8,057,000,000		30,060,090,910
2. Provisions for devaluation of inventories	0	0		0
V. Other Current Assets	10,032,570,316	9,159,000,000		11,948,092,217
1. Short-term prepaid expenses	0	0		0
2. VAT to be deducted	7,391,537,032	3,863,000,000		2,901,718,913
3. Taxes and other accounts receivable from the State	2,641,033,284	0		772,180,843
4. Other current assets	0	5,296,000,000		8,274,192,461
B. LONG-TERM ASSETS	121,237,269,772	124,387,000,000		85,290,794,806
I. Long term account receivable	0	0		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	0		0
5. Provisions for bad debts from customers	0	0		0
II. Fixed assets	92,141,779,980	59,847,000,000		67,712,322,814
1. Tangible assets	89,050,773,812	58,482,000,000		39,493,239,256
- Historical costs	122,809,094,687	74,233,000,000		63,437,011,135
- Accumulated depreciation	-33,758,320,875	-15,751,000,000		-23,943,771,879
2. Financial leasehold assets	0	0		0
- Historical costs	0	0		0
- Accumulated depreciation	0	0		0
3. Intangible assets	0	1,329,000,000		327,033,333
- Initial costs	0	1,339,000,000		328,700,000
- Accumulated amortization	0	-10,000,000		-1,666,667
4. Construction-in-progress	3,091,006,168	36,000,000		27,892,050,225
III. Investment property	0	31,168,000,000		0
Historical costs	0	42,935,000,000		0
Accumulated depreciation	0	-11,767,000,000		0
IV. Long-term investments	25,400,000,000	25,400,000,000		5,800,405,808
1. Investments in affiliates	0	0		0
2. Investments in business concerns and joint ventures	1,600,000,000	1,600,000,000		1,350,000,000
3. Other long-term investments	23,800,000,000	23,800,000,000		4,450,405,808
4. Provisions for devaluation of long-term investments	0	0		0
VI. Other long-term assets	3,695,489,792	7,972,000,000		11,778,066,184
1. Long-term prepaid expenses	3,695,489,792	7,554,000,000		11,778,066,184
2. Deferred income tax assets	0	418,000,000		0
3. Other long-term assets	0	0		0
TOTAL ASSETS	253,887,069,200	261,158,000,000		354,020,625,811

LIABILITIES
A- LIABILITIES	147,722,795,736	177,243,000,000		275,521,492,761
I. Current liabilities	124,994,525,421	151,233,000,000		247,879,723,871
1. Short-term debts and loans	36,669,394,578	41,394,000,000		99,718,692,281
2. Payable to suppliers	17,505,883,546	23,560,000,000		22,882,480,304
3. Advances from customers	50,234,688,855	75,587,000,000		104,167,663,556
4. Taxes and other obligations to the State Budget	12,765,808,481	3,218,000,000		5,716,321,699
5. Payable to employees	1,777,582,301	993,000,000		5,400,000
6. Accrued expenses	443,167,869	768,000,000		1,190,400,362
7. Inter-company payable	0	0		0
8. Payable according to the progress of construction contracts	0	0		0
9. Other payable	5,597,999,791	5,713,000,000		14,198,765,669
10. Provisions for short-term accounts payable	0	0		0
II. Long-Term Liabilities	22,728,270,315	26,010,000,000		27,641,768,890
1. Long-term accounts payable to suppliers	0	0		0
2. Long-term inter-company payable	0	0		0
3. Other long-term payable	7,000,000	0		0
4. Long-term debts and loans	22,599,396,219	25,952,000,000		27,540,094,976
5. Deferred income tax payable	0	0		17,657,084
6. Provisions for unemployment allowances	121,874,096	58,000,000		84,016,830
7. Provisions for long-term accounts payable	0	0		0
B- OWNER’S EQUITY	106,164,273,464	83,915,000,000		78,499,133,050
I. OWNER’S EQUITY	105,790,893,009	84,386,000,000		78,646,297,143
1. Capital	85,220,000,000	85,220,000,000		85,220,000,000
2. Share premiums	18,100,000,000	18,100,000,000		18,100,000,000
3. Other sources of capital	0	0		0
4. Treasury stocks	-27,500,000	-28,000,000		0
5. Differences on asset revaluation	0	0		0
6. Foreign exchange differences	688,458,316	0		0
7. Business promotion fund	678,732,075	679,000,000		678,732,075
8. Financial reserved fund	234,024,250	234,000,000		234,024,250
9. Other funds	0	0		0
10. Retained earnings	897,178,368	-19,819,000,000		-25,586,459,182
11. Construction investment fund	0	0		0
II. Other sources and funds	373,380,455	-471,000,000		-147,164,093
1. Bonus and welfare funds	373,380,455	-471,000,000		-147,164,093
2. Sources of expenditure	0	0		0
3. Fund to form fixed assets	0	0		0
C. MINORITY’S INTERES	0	0		0
TOTAL LIABILITIES AND OWNER’S EQUITY	253,887,069,200	261,158,000,000		354,020,625,811

PROFIT & LOSE STATEMENT
Description	FY2009	FY2008	FY2007
1. Total Sale	548,437,903,859	530,101,000,000	646,061,649,821
2. Deduction item	0	0	0
3. Net revenue	548,437,903,859	530,101,000,000	646,061,649,821
4. Costs of goods sold	481,232,504,456	468,697,000,000	588,531,633,461
5. Gross profit	67,205,399,403	61,404,000,000	57,530,016,360
6. Financial income	12,616,136,828	14,146,000,000	8,195,098,446
7. Financial expenses	18,050,831,589	19,593,000,000	15,783,633,015
- In which: Loan interest expenses	0	10,878,000,000	12,939,848,370
8. Selling expenses	24,463,112,499	34,511,000,000	38,563,739,046
9. Administrative overheads	7,498,114,674	8,358,000,000	9,512,901,818
10. Net operating profit	29,809,477,469	13,088,000,000	1,864,840,927
11. Other income	744,307,435	1,759,000,000	1,412,217,655
12. Other expenses	4,433,224,558	2,553,000,000	28,899,802,868
13. Other profit /(loss)	-3,688,917,123	-794,000,000	-27,487,585,213
14. Total accounting profit before tax	26,120,560,346	12,294,000,000	-25,622,744,286
15. Current corporate income tax	4,518,983,332	1,848,000,000	0
16. Deferred corporate income tax	0	435,000,000	17,657,084
17. Profit after tax	21,601,577,014	10,881,000,000	-25,605,087,202

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2009	FY2008	FY2007	Average Industry
Current liquidity ratio	1.06	0.90	1.08	1.56
Quick liquidity ratio	0.95	0.85	0.96	1.09
Inventory circle	34.91	24.59	11.12	35.05
Average receive period	67.25	70.80	100.23	69.03
Utilizing asset performance	2.16	2.03	1.82	1.62
Liability by total asset	58.18	67.87	77.83	64.22
Liability by owner equity	139.15	211.22	350.99	344.12
Ebit / Total asset (ROA)	10.29	8.87	-3.58	6.74
Ebit / Owner's equity (ROE)	24.60	27.61	-16.16	25.13
Ebit / Total revenue (NPM)	4.76	4.37	-1.96	4.75
Gross profit / Total revenue (GPM)	12.25	11.58	8.90	15.45
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 Average

Financial Situation Above Average

Development trend Uptrend

Litigation data No

Bankruptcy No

Payment Methods L/C, TT

Sale Methods To contracts

Public opinion Good

INTERPRETATION ON THE SCORES

Established in 1964 as a state owned enterprise, till 2005, the company made its equitization to become a joint stock company according to the business registration number 0103006536 dated on 18 January 2005 by Hanoi City Department of Planning and Investment and up to now, the business registration number still have not been changed yet.

The registered capital of the company has been increase time by time. At the moment, with total chartered capital of VND 85,220,000,000, the company is focusing on trading, importing and exporting handicraft and art articles, material, machines and equipment for construction, office electric, producing and processing wooden products, fine arts, embroideries. Moreover, the company is also engaging in trading real estate, office leasing, trading agent for producers, comer, organizer trade fairs, handicrafts and articles exhibition in Vietnam and foreign countries, trading vehicles.

The head office of the company locates at Artexport House Building - No. 2A - Pham Su Manh Street - Phan Chu Trinh Ward - Hoan Kiem District - Ha Noi City – Vietnam with an area of 607 square meter. Besides, the company has three branches in Ho Chi Minh City, Da Nang City and Hai Phong City. Formerly, the company had three workshops in Ha Noi City – Vietnam but recently, the workshop that based in Hamlet 1, Dong My commune - Thanh Tri District - Ha Noi City – Vietnam and the other one located at Bat Trang Commune - Gia Lam District - Ha Noi City – Vietnam were canceled. At the moment, the embroidery workshop and ware house with 6000 square meters in are locate at Thanh Lan Commune - Thanh Tri District - Ha Noi City – Vietnam still belong to the company.

Nowadays, the company imports equipments and materials from USA, Japan, Germany, China, England and Singapore. 100% products of the company are now exported to a lot of countries such as Japan, Europe countries, USA.

Passing over 45 years of formation and development, the company is now one of the biggest companies in this field in Viet Nam. The company’s market share is fairly big. The company has also obtained many achievements such as Government’s First-Class Labor Medal, Vietnam Gold Star Award 2006, Business Excellence Award 2006…

The management capability of the company is evaluated fair. The company’s facilities are standard. At the moment, there are about 124 employees working for the company. The business activities of the company are quite busy.

Taking a look at the financial report of the company, the company’s financial situation is much improved year by year. While the total sales in 2009 slightly increased of 3.5 percents in comparison with 2008, before tax profit of the company in 2009 was extremely up of 98.5 percents against 2008. The solvency of the company is quite stable.

On the whole, the company has been affirming its firm position in Vietnam. The prospect of the company is expected bright. At present, the company is capable to taking all medium transactions.

APPENDIXES

INDUSTRY DATA

Industry code	Growth speed (%)		Total employees 2008 (Thousand)		Total enterprises	Annual average capital of enterprises
	2009	Predict 10
Agriculture, Forestry and Fishing	3.0	2.8	23,634.7		2,399	50,530
Trade and Services	11	7.5	9,724.2		79,181	1,754,973
Construction	11.3	7	2,394		17,783	248,268
Manufacturing	7.6	12	6,962		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.56.05
UK Pound	1	Rs.86.69
Euro	1	Rs.69.98

INFORMATION DETAILS

Report Prepared by :

PRL

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.

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status