MIRA INFORM REPORT

Report Date :

09.05.2012

IDENTIFICATION DETAILS

Name :	HA NAM TEXTILE COMPANY
Registered Office :	Chau Son Industrial Park Chau Son Commune, Phu Ly City, Ha Nam Province
Country :	Vietnam
Financials (as on) :	31.12.2011
Year of Establishment :	1996
Com. Reg. No.:	0700101268
Legal Form :	Limited Liability Company
Line of Business :	Manufacturer of fibers, textile and finished textile products
No. of Employees :	1,000

RATING & COMMENTS

MIRA’s Rating :

B

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

Status :	Moderate
Payment Behaviour :	Slow
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
Registered English Name	HA NAM TEXTILE COMPANY
Registered Vietnamese Name	CONG TY DET HA NAM
Trade name	CONG TY DET HA NAM
Type of Business	Limited liability company
Year Established	1996
Business Registration No.	0700101268
Date of Registration	24 Dec 2008
Place of Registration	Ha Nam Department of Planning and Investment
Current registered capital	VND 350,000,000,000
Status	Unlisted
Tax code	0700101268
Total Employees	1,000
Size	Large

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Registered capital: 151,000,000,000 VND Changed to: 350,000,000,000 VND	24 Dec 2008
2	Subject has got former Business Registration No: 050149 (issued 11 Dec1996) Changed to: No.0700101268	24 Dec 2008
3	Subject has got former Board Of Director: Mr. NGUYEN HONG SON Changed to: Mr. NGUYEN THU YEN	N/A

company ADDRESSES

Head Office
Address	Chau Son Industrial Park Chau Son Commune, Phu Ly City, Ha Nam Province, Vietnam
Telephone	(84-351) 385 3033
Fax	(84-351) 385 3313
Email	hanatex@hn.vnn.vn
Website	http://www.hantex.com.vn
Branch in Ha Noi
Address	CT 2A-2B My Dinh 2 , Tu Liem District, Ha Noi City, Vietnam
Telephone	(84-4) 22118001
Fax	(84-4) 22118002

DIRECTORS

1. NAME	Mr. NGUYEN HONG SON
Position	Chairman
Resident	Group 5 Le Hong Phong Ward, Phu Ly City, Ha Nam Province, Vietnam
Current resident	Tu Liem District, Ha Noi City, Vietnam
Nationality	Vietnamese
2. NAME	Mr. GIANG ANH DUC
Position	General Director
Date of Birth	30 Oct 1973
ID Number/Passport	012526410
ID Issue Date	14 Aug 2003
ID Issue Place	Hanoi Department of Police
Current resident	No. 80 - Group 4 Khuong Thuong Ward, Dong Da District, Ha Noi City, Vietnam
Nationality	Vietnamese
3. NAME	Ms. PHAM THI THUY NHUAN
Position	Chief Accountant
Nationality	Vietnamese
Tel/Mobil phone	(84-351) 6291623/ (84) 979380395

BUSINESS NATURE AND ACTIVITIES

- Manufacture of fibers, textile and finished textile products.
- Trading in materials, chemical for dyeing textile and fabrics.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Equipments, material
· Market	Italy, Germany, China, USA, Pakistan, India
· Mode of payment	LC
EXPORT:
· Types of products	Fiber
· Market	South Korea, Japan, Taiwan, Columbia, USA, Thailand, Turkey
· Mode of payment	LC

BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM THANH CONG BRANCH
Address	No.3 Plot,O 4.1 CC Hoang Dao Thuy Str,Nhan Chinh Ward, Thanh Xuan District, Ha Noi City, Vietnam
Telephone	(84-4) 62578686 / 043 7761762/ 043 7761763
Fax	(84-4) 37761747
2. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT BIEN HOA BRANCH
Address	No.122 Bien Hoa Street, Phu Ly City, Ha Nam Province, Vietnam
Telephone	(84-351) 3829 766
Fax	(84-351) 3829 767
3. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM HA NAM BRANCH
Address	No. 210 Le Hoan Str., Phu Ly City, Ha Nam Province, Vietnam
Telephone	(84-351) 3 852 763

SHAREHOLDERS

1. NAME	Mr. NGUYEN HONG SON
Position	Chairman
Resident	Group 5 Le Hong Phong Ward, Phu Ly City, Ha Nam Province, Vietnam
Current Resident	Tu Liem District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 129,500,000,000
Percentage	37%
2. NAME	Mr. NGUYEN HUNG VU
Resident	Ngo Gia Kham Hamlet Chau Son Commune, Phu Ly City, Ha Nam Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 101,500,000,000
Percentage	29%
3. NAME	Ms. NGUYEN THANH HUONG
Resident	Group 3 Le Hong Phong Ward, Phu Ly City, Ha Nam Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 66,500,000,000
Percentage	19%
4. NAME	Mr. GIANG ANH DUC
Position	General Director
Date of Birth	30 Oct 1973
ID Number/Passport	012526410
Issued on	14 Aug 2003
Issued Place	Hanoi Department of Police
Current Resident	No. 80 - Group 4 Khuong Thuong Ward, Dong Da District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 35,000,000,000
Percentage	10%
5. NAME	Ms. NGUYEN THU HA
Resident	No. 17B Trang Thi Str. - Hang Trong Ward, Hoan Kiem District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 17,500,000,000
Percentage	5%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010	31/12/2009
Number of weeks	52	52	52
Status	Unknown	Unknown	Unknown
ASSETS
A – CURRENT ASSETS	720,494,504,729	606,968,051,509	636,775,859,166
I. Cash and cash equivalents	2,451,170,630	48,488,818,596	34,611,080,535
1. Cash	2,451,170,630	48,488,818,596	34,611,080,535
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	225,146,985,014	230,632,747,792	276,346,681,742
1. Receivable from customers	187,390,578,463	70,111,459,351	103,251,356,279
2. Prepayments to suppliers	19,430,035,887	129,647,960,850	173,095,325,463
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	10,883,388,404	30,873,327,591	0
6. Provisions for bad debts	7,442,982,260	0	0
IV. Inventories	448,666,069,375	305,005,968,492	318,753,620,055
1. Inventories	448,666,069,375	305,005,968,492	318,753,620,055
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	44,230,279,710	22,840,516,629	7,064,476,834
1. Short-term prepaid expenses	38,890,208,814	4,231,077,116	2,158,478,733
2. VAT to be deducted	0	3,322,686,542	4,522,327,860
3. Taxes and other accounts receivable from the State	0	0	0
4. Other current assets	5,340,070,896	15,286,752,971	383,670,241
B. LONG-TERM ASSETS	726,919,620,764	806,301,877,715	658,283,651,710
I. Long term accounts 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	659,026,195,641	738,206,442,893	613,733,004,210
1. Tangible assets	641,051,339,134	718,090,477,344	215,718,254,779
- Historical costs	959,755,918,367	970,437,113,677	389,862,729,645
- Accumulated depreciation	-318,704,579,233	-252,346,636,333	-174,144,474,866
2. Financial leasehold assets	4,585,590,662	6,435,431,396	10,058,392,848
- Historical costs	8,306,631,156	10,226,604,816	14,036,401,906
- Accumulated depreciation	-3,721,040,494	-3,791,173,420	-3,978,009,058
3. Intangible assets	4,833,527,663	5,277,795,971	5,722,064,276
- Initial costs	6,664,024,580	6,664,024,580	6,664,024,580
- Accumulated amortization	-1,830,496,917	-1,386,228,609	-941,960,304
4. Construction-in-progress	8,555,738,182	8,402,738,182	382,234,292,307
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	67,796,809,042	67,425,158,042	44,550,647,500
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	67,425,158,042	0
3. Other long-term investments	67,796,809,042	0	44,550,647,500
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	96,616,081	670,276,780	0
1. Long-term prepaid expenses	96,616,081	670,276,780	0
2. Deferred income tax assets	0	0	0
3. Other long-term assets	0	0	0
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	1,447,414,125,493	1,413,269,929,224	1,295,059,510,876
LIABILITIES
A- LIABILITIES	1,093,660,743,428	1,058,147,016,037	969,855,187,683
I. Current liabilities	650,304,076,753	581,009,541,923	523,918,314,160
1. Short-term debts and loans	428,020,207,584	464,367,744,796	467,598,742,072
2. Payable to suppliers	202,201,765,055	109,257,932,212	50,586,567,298
3. Advances from customers	784,651,621	737,912,647	2,726,484,768
4. Taxes and other obligations to the State Budget	6,884,682,443	1,348,031,281	0
5. Payable to employees	2,538,344,567	3,567,397,597	3,006,520,022
6. Accrued expenses	0	0	0
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	9,874,425,483	1,730,523,390	0
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	443,356,666,675	477,137,474,114	445,936,873,523
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	29,400,000,000	29,400,000,000	23,500,000,000
4. Long-term debts and loans	413,956,666,675	447,737,474,114	422,436,873,523
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	0	0	0
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	353,753,382,065	355,122,913,187	325,204,323,193
I. OWNER’S EQUITY	353,753,382,065	355,122,913,187	325,038,471,693
1. Capital	347,202,000,000	350,504,337,554	323,050,103,920
2. Share premiums	0	0	0
3. Other sources of capital	5,352,419,623	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	1,198,962,442	4,618,575,633	1,988,367,773
11. Construction investment fund	0	0	0
II. Other sources and funds	0	0	165,851,500
1. Bonus and welfare funds	0	0	165,851,500
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	1,447,414,125,493	1,413,269,929,224	1,295,059,510,876

PROFIT & LOSS STATEMENT
Description	FY2011	FY2010	FY2009
1. Total Sales	1,322,552,343,299	1,094,367,478,609	987,440,850,174
2. Deduction item	7,674,118,879	8,901,407,521	1,843,517,884
3. Net sale	1,314,878,224,420	1,085,466,071,088	985,597,332,290
4. Costs of goods sold	1,220,393,853,630	1,021,783,826,314	950,702,377,420
5. Gross profit	94,484,370,790	63,682,244,774	34,894,954,870
6. Financial income	4,530,966,148	33,056,240,403	29,113,886,295
7. Financial expenses	123,676,672,831	107,185,109,434	46,446,219,365
- In which: Loan interest expenses	86,712,974,086	59,352,333,828	31,036,806,043
8. Selling expenses	8,632,121,454	24,567,313,766	10,179,692,422
9. Administrative overheads	7,822,802,803	7,965,079,638	5,935,840,636
10. Net operating profit	-41,116,260,150	-42,979,017,661	1,447,088,742
11. Other income	68,832,449,672	50,826,100,964	649,464,745
12. Other expenses	26,033,324,955	1,574,138,885	45,450,040
13. Other profit /(loss)	42,799,124,717	49,251,962,079	604,014,705
14. Total accounting profit before tax	1,682,864,567	6,272,944,418	2,051,103,447
15. Current corporate income tax	420,716,142	1,568,236,105	512,775,862
16. Deferred corporate income tax		0
17. Interest from subsidiaries/related companies		0
18. Profit after tax	1,262,148,425	4,704,708,313	1,538,327,585

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	1.11	1.04	1.22	1.13
Quick liquidity ratio	0.42	0.52	0.61	0.62
Inventory circle	3.18	3.28	3.12	5.92
Average receive period	62.50	77.55	102.34	55.47
Utilizing asset performance	0.91	0.77	0.76	1.39
Liability by total assets	75.56	74.87	74.89	70.41
Liability by owner's equity	309.16	297.97	298.23	301.78
Ebit / Total assets (ROA)	6.11	4.64	2.55	9.72
Ebit / Owner's equity (ROE)	24.99	18.48	10.17	34.85
Ebit / Total sale (NPM)	6.68	6.00	3.35	7.85
Gross profit / Total sale (GPM)	7.14	5.82	3.53	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	Average
Financial Situation	Above Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C
Sale Methods	Retailer and Wholesaler
Public opinion	Good

CREDIT INQUIRY: 1,250,000 USD against DA in terms.

This credit inquiry is acceptable for the subject. The maximum credit limit is about 2,000,000 USD.

INTERPRETATION ON THE SCORES

HA NAM TEXTILE COMPANY was set up in December 1996 in Ha Nam Province. Currently, the subject operates under the business code No. 0700101268 with the registered capital of VND 350 billion.

HA NAM TEXTILE COMPANY specializes in manufacture of textile products. Its main products are kind of fiber for export and local demand. The factory has production capacity of 13 mill MT tons of fabric per year. The subject imports machinery and equipments from Japan and Germany. And the materials are mainly imported (with rate 95%) from China, Taiwan, India, and United States, etc. It also exports its product to South Korea, Japan, Taiwan, USA, Thailand, Turkey. The subject is considered the largest scale in the textile industry of Ha Nam Province. The facilities material and management capacity are above average.

We supplied the financial data in three years: 2009, 2010 and 2011. Regarding to that, its financial situation of the company is fair in recent years. Total assets of the company in the year 2011 reached VND 1,447 billion, increased 11.73% and 32.38% compared with 2010 and 2009. Parallel with the growth rate of total assets, the growth rate of liabilities was also relative. In 2011, liabilities of firm reached VND 1,093 billion, rose 12.79% and 41.39% against 2010 and 2009. Like this, the growth rate of liabilities was higher than the growth rate of total assets in 2011. It made the liquidity ratios of the subject in 2011 were lower than previous two years and the liability indexes as Liability by total assets and Liability by owner’s equity were also high and have uptrend.

In profit and loss statement of the company, we can see that total sales of the company in 2011 reached over VND 1,322 billion, rose 33.94% compared with 2010. However the profit after tax reduced about VND 276 million. The main reason is the financial expenses and administrative overheads expenses in the year 2011 were high. The subject had not profit from main business (Net operating profit was negative 41 billion), Its profit mainly came from other profit.

At present, the business activities of the company are stable. Its position in the industry is above average and now, it has no new plan for operation in the near future. The subject has capacity to meet small 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

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.34
UK Pound	1	Rs.86.09
Euro	1	Rs.69.37

INFORMATION DETAILS

Report Prepared by :

MNL

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.