MIRA INFORM REPORT

Report Date :

27.04.2013

IDENTIFICATION DETAILS

Name :	THIEN NAM INVESTMENT AND DEVELOPMENT JOINT STOCK COMPANY
Formerly Known As :	THIEN NAM COMPANY LIMITED
Registered Office :	Dong An Industrial Park, Binh Hoa Ward, Thuan An Town, Binh Duong Province
Country :	Vietnam
Financials (as on) :	31.12.2011
Year of Establishments:	1990
Com. Reg. No.:	3700352789
Legal Form :	Joint Stock Company
Line of Business :	subject is specialized in manufacturing fibre and textile products
No. of Employees :	835

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 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Vietnam	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

vietnam ECONOMIC OVERVIEW

Vietnam is a densely-populated developing country that has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. Poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession hurt Vietnam's export-oriented economy, with GDP in 2012 growing at 5%, the slowest rate of growth since 1999. In 2012, however, exports increased by more than 18%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the Government shifted policy away from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. Although Vietnam unveiled a broad, "three pillar" economic reform program in early 2012, proposing the restructuring of public investment, state-owned enterprises, and the banking sector, little perceptible progress had been made by early 2013. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some independent analysts believe it could be higher than 15%.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM
Current legal status
English Name	THIEN NAM INVESTMENT AND DEVELOPMENT JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN DAU TU VA PHAT TRIEN THIEN NAM
Short name	THIEN NAM JSC.,
Type of Business	Joint stock company
Year Established	1990
Business Registration No.	3700352789
Date of the latest (4^th) Adjustment	29 Mar 2011
Place of Registration	Business Registration Office - Planning and Investment Department of Binh Duong Province
Chartered capital	VND 240,000,000,000
Tax code	3700352789
Total Employees	835

Historical Identification & Legal form

List	Changed Items							Date of changes
1	Subject has got former Business Registration No: 4603000362 issued on June 18^th2007 Changed to: 3700352789							02 Nov 2009
2	Subject has got former Registered English Name: THIEN NAM COMPANY LIMITED Changed to: THIEN NAM INVESTMENT AND DEVELOPMENT JOINT STOCK COMPANY							18 Jun 2007
3	Subject has got former Registered Vietnamese Name: CONG TY TNHH THIEN NAM Changed to: CONG TY CO PHAN DAU TU VA PHAT TRIEN THIEN NAM							18 Jun 2007
CompANY ADDRESSES
Head Office
Address			Dong An Industrial Park, Binh Hoa Ward, Thuan An Town, Binh Duong Province, Vietnam
Telephone			(84-650) 375 7821
Fax			(84-650) 375 7780
Email			thiennamco@hcm.vnn.vn
Website			www.thiennamspinning.com
Branch in Binh Duong
Address			Binh An Textile and Garment Industrial Zone, Di An Town, Binh Duong Province, Vietnam
Telephone			(84-650) 377 4346 - 377 4374 - 377 4375
Fax			(84-650) 377 4345
Email			sales@thiennamspinning.com
SUBSIDIARIES AND RELATED COMPANIES
1.English Name			TCE VINA DENIM JOINT STOCK COMPANY
Vietnamese Name			CONG TY CO PHAN TCE VINA DENIM
Trade name			TCE VINA DENIM JSC
Type of Business			Joint stock company
Year Established			2007
Business Registration No.			0703000820
Place of Registration			Business Registration Office - Planning and Investment Department of Nam Dinh Province
Chartered capital			VND 208,000,000,000
Tax code			0600387327
Address			Lot S6 – S7 Pham Ngu Lao Str, Hoa Xa Industrial Park, Nam Dinh City, Nam Dinh Province, Vietnam
Telephone			(84-350) 3677 025
Fax			(84-350) 3677 024
2.English Name			VINATEX INVESTMENT JOINT STOCK COMPANY
Vietnamese Name			CONG TY CO PHAN DAU TU VINATEX
Type of Business			Joint stock company
Business Registration No.			0600389814
Place of Registration			Business Registration Office - Planning and Investment Department of Nam Dinh Province
Tax code			0600389814
Address			Lot L1, Road D1, Bao Minh Industrial Park, Road No. 10, Vu Ban District, Nam Dinh Province, Vietnam
Telephone			(84-350) 3821 666
Fax			(84-350) 3821 666
DIRECTORS
1. NAME		Mr. TRAN DANG TUONG
Position		Chairman
Date of Birth		21 May 1957
ID Number/Passport		023008410
ID Issue Date		24 Dec 2008
ID Issue Place		Police Station of Ho Chi Minh City
Resident		No. 90/92 Bau Cat 2 Str, Ward 12, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
2. NAME		Mr. TRAN LE HA
Position		General Director
ID Number/Passport		023006731
Resident		No. 15 Hoang Ke Viem Str, Ward 12, Tan Binh District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
3. NAME		Mr. TRINH TAN HOANG
Position		Director of Branch
Nationality		Vietnamese
Tel/Mobile phone		++ 84 903 337794
4. NAME		Mr. PHAN DUC LE HOANG
Position		Sales Manager
Nationality		Vietnamese
5. NAME		Mr. BUI HUNG NAM
Position		Chief Accountant
Current resident		Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Tel/Mobile phone		+ 84 915 722 033
Email		hungduynam@gmail.com
Qualification		Bachelor
BUSINESS NATURE AND ACTIVITIES
The subject is specialized in manufacturing fibre and textile products.
IMPORT & EXPORT ACTIVITIES
IMPORT:
· Market			USA, Thailand, Germany, Italy, China, India
EXPORT:
· Market			Japan, Taiwan, Korea, Hong Kong, Singapore, Philippines, and Malaysia.
BANKERS
1. ANZ BANK
Address			No. 11 Me Linh Square, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Telephone			(84-8) 3829 9319
Fax			(84-8) 3829 9316
2. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM SONG THAN BRANCH
Address			No 1 Xa Lo Truong Son, Di An Town, Binh Duong Province, Vietnam
Telephone			(84-650) 3792 159
Fax			(84-650) 3792 387
3. HSBC BANK (VIETNAM) LTD
Address			06^th Floor, The Metropolitan Building, 235 Dong Khoi Str, District 1, Ho Chi Minh City, Vietnam
Telephone			(84 8) 3829 2288
Fax			(84 8) 3299 0018
4. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE TRANSACTION CENTER NO.2
Address			No.79A Ham Nghi Str, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Vietnam
Telephone			(84-8) 3829 0715
Fax			(84-8) 3829 5342
SHAREHOLDERS
1. NAME			Mr. TRAN DANG TUONG
Position			Chairman
Date of Birth			21 May 1957
ID Number/Passport			023008410
Issued on			24 Dec 2008
Issued Place			Police Station of Ho Chi Minh City
Resident			No. 90/92 Bau Cat 2 Str, Ward 12, Ho Chi Minh City, Vietnam
Nationality			Vietnamese
Number of Shares			1,750,000
Value of shares			VND 175,000,000,000
Percentage			72.92%
2. NAME			Mr. TRAN LE HA
Position			General Director
ID Number/Passport			023006731
Resident			15 Hoang Ke Viem Str, Ward 12, Tan Binh District, Ho Chi Minh City, Vietnam
Nationality			Vietnamese
Number of Shares			190,000
Value of shares			VND 19,000,000,000
Percentage			7.92%
3. NAME			Mr. TRAN VAN VIET
ID Number/Passport			021544987
Resident			No. 72/4 Road No. 13, Phu Thanh Ward, Tan Phu District, Ho Chi Minh City, Vietnam
Nationality			Vietnamese
Number of Shares			10,000
Value of shares			VND 1,000,000,000
Percentage			0.42%
4. NAME			Mr. MAI HOANG AN
ID Number/Passport			010253541
Resident			29 Hang Bo Quarter, Hang Bo Ward, Hoan Kiem District, Ha Noi City, Vietnam
Nationality			Vietnamese
Number of Shares			50,000
Value of shares			VND 5,000,000,000
Percentage			2.08%
5. NAME			Mr. TRAN DANG CHUC
ID Number/Passport			021444924
Resident			157A Quarter No. 1, Linh Trung Str, Linh Trung Ward, Thu Duc District, Ho Chi Minh City, Vietnam
Nationality			Vietnamese
Number of Shares			200,000
Value of shares			VND 20,000,000,000
Percentage			8.33%
6. NAME			Mr. TRAN DANG TU
ID Number/Passport			162650962
Resident			No. 15 May To Quarter, Ngo Quyen Ward, Nam Dinh City, Nam Dinh Province, Vietnam
Nationality			Vietnamese
Number of Shares			200,000
Value of shares			VND 20,000,000,000
Percentage			8.33%
FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date					31/12/2011				31/12/2010
Number of weeks					52				52
ASSETS
A – CURRENT ASSETS					194,685,257,010				168,019,672,936
I. Cash and cash equivalents					11,144,806,812				31,672,672,785
1. Cash					11,144,806,812				31,672,672,785
2. Cash equivalents					0				0
II. Short-term investments					0				0
1. Short-term investments					0				0
2. Provisions for devaluation of short-term investments					0				0
III. Accounts receivable					161,669,169,380				88,058,067,959
1. Receivable from customers					68,858,728,750				70,063,225,482
2. Prepayments to suppliers					1,222,688,000				6,645,322,241
3. Inter-company receivable					0				0
4. Receivable according to the progress of construction					0				0
5. Other receivable					91,587,752,630				11,349,520,236
6. Provisions for bad debts					0				0
IV. Inventories					8,529,442,369				40,092,376,745
1. Inventories					8,529,442,369				40,092,376,745
2. Provisions for devaluation of inventories					0				0
V. Other Current Assets					13,341,838,449				8,196,555,447
1. Short-term prepaid expenses					0				0
2. VAT to be deducted					11,936,598,561				987,040,046
3. Taxes and other accounts receivable from the State					0				0
4. Other current assets					1,405,239,888				7,209,515,401
B. LONG-TERM ASSETS					303,933,823,849				289,273,930,160
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					153,485,585,622				194,865,691,933
1. Tangible assets					109,371,556,123				151,268,363,810
- Historical costs					372,938,765,198				356,583,162,140
- Accumulated depreciation					-263,567,209,075				-205,314,798,330
2. Financial leasehold assets					0				0
- Historical costs
- Accumulated depreciation
3. Intangible assets					24,574,920,407				24,568,328,123
- Initial costs					28,993,509,200				28,352,625,000
- Accumulated amortization					-4,418,588,793				-3,784,296,877
4. Construction-in-progress					19,539,109,092				19,029,000,000
III. Investment property					0				0
Historical costs					0				0
Accumulated depreciation					0				0
IV. Long-term investments					122,408,238,227				94,408,238,227
1. Investments in affiliates					78,141,023,670				78,141,023,670
2. Investments in business concerns and joint ventures					44,267,214,557				16,267,214,557
3. Other long-term investments					0				0
4. Provisions for devaluation of long-term investments					0				0
V. Other long-term assets					28,040,000,000				0
1. Long-term prepaid expenses					28,040,000,000				0
2. Deferred income tax assets					0				0
3. Other long-term assets					0				0
VI. Goodwill					0				0
1. Goodwill					0				0
TOTAL ASSETS					498,619,080,859				457,293,603,096
LIABILITIES
A- LIABILITIES					232,251,583,284				247,366,240,054
I. Current liabilities					167,215,312,194				182,516,856,126
1. Short-term debts and loans					95,735,590,549				132,906,355,452
2. Payable to suppliers					50,198,761,968				38,002,768,773
3. Advances from customers					2,474,927,297				1,837,368,607
4. Taxes and other obligations to the State Budget					1,686,542,688				1,147,297,331
5. Payable to employees					16,938,392,102				8,452,934,437
6. Accrued expenses					0				47,500,000
7. Inter-company payable					0				0
8. Payable according to the progress of construction contracts					0				0
9. Other payable					181,097,590				122,631,526
10. Provisions for short-term accounts payable					0				0
11. Bonus and welfare funds					0				0
II. Long-Term Liabilities					65,036,271,090				64,849,383,928
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					64,470,345,174				64,283,458,012
5. Deferred income tax payable					0				0
6. Provisions for unemployment allowances					565,925,916				565,925,916
7. Provisions for long-term accounts payable					0				0
8. Unearned Sale					0				0
9. Science and technology development fund					0				0
B- OWNER’S EQUITY					266,367,497,575				209,927,363,042
I. OWNER’S EQUITY					266,367,497,575				209,927,363,042
1. Capital					240,000,000,000				198,000,000,000
2. Share premiums					0				0
3. Other sources of capital					0				0
4. Treasury stocks					0				0
5. Differences on asset revaluation					0				0
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					26,367,497,575				11,927,363,042
11. Construction investment fund					0				0
12. Business arrangement supporting fund					0				0
II. Other sources and funds					0				0
1. Bonus and welfare funds (Elder form)					0				0
2. Sources of expenditure					0				0
3. Fund to form fixed assets					0				0
MINORITY’S INTEREST					0				0
TOTAL LIABILITIES AND OWNER’S EQUITY					498,619,080,859				457,293,603,096
PROFIT & LOSS STATEMENT
Description					FY2011				FY2010
1. Total Sales					963,527,595,050				868,020,085,264
2. Deduction item					1,095,992,573				76,080,000
3. Net sale					962,431,602,477				867,944,005,264
4. Costs of goods sold					878,440,951,877				787,675,155,715
5. Gross profit					83,990,650,600				80,268,849,549
6. Financial income					9,712,708,937				3,016,643,918
7. Financial expenses					16,643,536,686				21,342,831,818
- In which: Loan interest expenses					16,397,136,594				16,525,906,893
8. Selling expenses					18,712,365,238				22,855,141,663
9. Administrative overheads					32,789,884,942				25,928,465,791
10. Net operating profit					25,557,572,671				13,159,054,195
11. Other income					215,040,000				0
12. Other expenses					22,901,735				0
13. Other profit /(loss)					192,138,265				0
14. Total accounting profit before tax					25,749,710,936				13,159,054,195
15. Current corporate income tax					1,260,058,647				1,236,137,956
16. Deferred corporate income tax
17. Interest from subsidiaries/related companies
18. Profit after tax					24,489,652,289				11,922,916,239
FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description						FY2011	FY2010			Average Industry
Current liquidity ratio						1.16	0.92			1.13
Quick liquidity ratio						1.11	0.70			0.62
Inventory circle						36.13	19.65			5.92
Average receive period						61.31	37.03			55.47
Utilizing asset performance						1.93	1.90			1.39
Liability by total assets						46.58	54.09			70.41
Liability by owner's equity						87.19	117.83			301.78
Ebit / Total assets (ROA)						8.45	6.49			9.72
Ebit / Owner's equity (ROE)						15.82	14.14			34.85
Ebit / Total sale (NPM)						4.37	3.42			7.85
Gross profit / Total sale (GPM)						8.72	9.25			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				Above Average
Financial Situation				Above Average
Development trend				Uptrend
Litigation data				No
Bankruptcy				No
Payment Methods				Cash, L/C, T/T
Sale Methods				Retailer and Wholesaler
INTERPRETATION ON THE SCORES
The subject - THIEN NAM INVESTMENT AND DEVELOPMENT JOINT STOCK COMPANY was established in 1990. Currently, the subject is operating under the Business Registration No. 3700352789 with chartered capital of VND 240,000,000,000. Factory No. 1, Factory No. 2 and head office are located at “Dong An Industrial Park, Binh Hoa Ward, Thuan An Town, Binh Duong Province, Vietnam”. In addition, the subject has other factory located at “Binh An Textile and Garment Industrial Zone, Di An Town, Binh Duong Province, Vietnam” At first the company’s main business sold raw material and chemicals for the textile and garment industry. In 1996, Thien Nam changed the direction to manufacturing yarns. Besides, it is trading materials in textile and garment industry, fabric, woolens, chemicals, machines and equipment in textile industry. The subject’s factories were invested and installed with high quality machinery and equipment for producing yarn made in Japan, Italy, Korea and China so its production was evaluated high. Its products are sold about 30% in domestic market, and 70% are sold world-wide. Its international markets include countries such as: Japan, Taiwan, Korea, Hong Kong, Singapore, Philippines, and Malaysia. etc. According to the financial data, total sale and profit after tax increased year after year. Although economic in Vietnam is going down and most companies in same industry also meet difficulties, subject’s operation was still effective. The subject has the safety capital structure, due to liability by owner's equity was very lower than industry average ratio and quick liquidity ratios were quite high in 2011. In general, financial situation are good, the management capability of the subject is fair. It is operating effectively and its businesses are expanding. The subject has prospect of future development. In our opinion, the BB credit estimate on the subject reflects that the subject has capacity to meet medium business commitments.

APPENDIX

INDUSTRY DATA
Industry code	GDP growth speed by price compared with 1994 (%)		Total enterprises 2010		Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
	2012	2011
Agriculture, Forestry and Fishing	2.72	4.00	8,887		24,362.9	95,227
Industry and Construction	4.52	5.53	95,217		10,718.9	3,641,376
Trade and Services	6.42	6.69	187,195		15,270.2	6,957,082
ECONOMIC INDICATORS
			2012	2011		2010
Population (Million person)			88.78	87.84		86.93
Gross Domestic Products (USD billion)			136	119		102.2
GDP Growth (%)			5.03	5.89		6.78
GDP Per Capita (USD/person/year)			1,540	1,300		1,160
Inflation (% Change in Composite CPI)			9.21	18.58		11.75
State Budget Deficit compared with GDP (%)			4.8	4.9		5.8
SERVICE TRADE PERFORMANCE
Billion USD			2012	2011		2010
Exports			114.6	96.3		72.2
Imports			114.3	105.8		84.8
Trade Balance			0.3	-9.5		-12.6

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.29
UK Pound	1	Rs.83.88
Euro	1	Rs.70.68

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.