MIRA INFORM REPORT

Report Date :

21.03.2013

IDENTIFICATION DETAILS

Name :	GOLDEN STAR COMPANY LIMITED
Registered Office :	No. 1166 Nguyen Binh Khiem Street, Dong Hai 2 Ward , Hai An District, Hai Phong City
Country :	Vietnam
Financials (as on) :	31.12.2011
Year of Establishments:	1998
Com. Reg. No.:	0200288498
Legal Form :	Limited Liability Company
Line of Business :	Producing and doing outwork leather footwear in order to export
No. of Employees :	14500

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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 in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep 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 has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM
Current legal status
English Name	GOLDEN STAR COMPANY LIMITED
Vietnamese Name	CONG TY TNHH SAO VANG
Short name	GOLDEN STAR CO., LTD
Type of Business	Limited liability company
Year Established	1998
Business Registration No.	0200288498
Date of Registration	08 Sep 2012
Place of Registration	Hai Phong Department of Planning and Development
Chartered capital	VND 320,000,000,000
Status	Unlisted
Tax code	0200288498
Total Employees	14,500
Size	Large

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 053835 Changed to: 0200288498	08 Sep 2012
2	Subject has got former Chartered capital: VND 105,000,000,000 Changed to: VND 320,000,000,000	N/A

Company ADDRESSES
Head Office
Address	No. 1166 Nguyen Binh Khiem Street, Dong Hai 2 Ward , Hai An District, Hai Phong City, Vietnam
Telephone	(84-31) 3769 981/ 3769 982/ 3769 983
Fax	(84-31) 3769 987
Email	goldenstar-hp@hn.vnn.vn
Note: The correct address of the subject is as above.
Factory Address
Address	Van Trang Hamlet, Truong Son Commune, An Lao District, Hai Phong City, Vietnam
Telephone	(84-31) 3872 025/ 26/ 27
Factory Address
Address	Area 6 Tien Lang Town, Tien Lang District, Hai Phong City, Vietnam
Telephone	(84-31) 3942 101
Fax	(84-31) 3942 102
Factory Address
Address	Phu Thanh Tay Zone, Yen Thanh Ward, Uong Bi District, Quang Ninh Province, Vietnam
Telephone	(84-33) 662 270
Fax	(84-33) 662 478
Manager	Mr. TRAN VAN DO
Factory Address
Address	No.3 Group, Tran Hung Dao Str., Ninh Giang District, Hai Duong Province, Vietnam
Telephone	(84-320) 765 778/ 3765 899
Fax	(84-320) 3765 898
Factory Address
Address	No 47, 113 Hamlet, Quynh Coi Commune,, Quynh Phu District, Thai Binh Province, Vietnam

DIRECTORS
1. NAME	Mr. CHATCHAWAT MITRCHAIYANANT
Position	Chairman
Date of Birth	30 Jun 1964
ID Number/Passport	7056412
Resident	No.47/85 Mu 5 Uoter Ring rd, Bangkhae Dist, Bangkok , Thailand
Current resident	78/25 Street 2 Thanh Loc Ward, 12 District, Ho Chi Minh City, Vietnam
Nationality	Thai
Tel/Mobile phone	++84 903 648 888
2. NAME	Ms. NGUYEN KIM THUY
Position	Director
Date of Birth	24 Nov 1968
ID Number/Passport	030761457
ID Issue Date	26 Mar 2007
ID Issue Place	Police Station of Hai Phong city
Resident	No.4 Hoang Van Thu, Minh Khai Ward , Hong Bang District, Hai Phong City, Vietnam
Current resident	No.57/32 Quater 2, Thanh Loc Ward , 12 District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	++84 903709581
3. NAME	Mr. DO MANH TRUONG
Position	Deputy Director
Date of Birth	23 Oct 1964
Resident	No. 24/183 Cau Dat, Ngo Quyen District, Hai Phong City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	++84 903412789
4. NAME	Mr. DAO XUAN LONG
Position	Deputy Director
ID Number/Passport	030767944
Resident	Group 13 Dong Khe Ward, Hai Phong City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	++84 913 254 725
5. NAME	Ms. TRAN THI TO HOA
Position	Deputy Director
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject specializes in following activities:
- Producing and doing outwork leather footwear in order to export.
The subject registered in following activities:
- Agricultural development construction investment.
- Housing development construction investment.
- Trading in real property.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Materials (leather and other materials)
· Market	Taiwan, Hong Kong, China, Japan.
· Mode of payment	L/C, T/T
EXPORT:
· Market	EU, USA, Japan, Korea, Asean
· Mode of payment	L/C, T/T

BANKERS
1. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK HAI PHONG BRANCH
Address	No.32 Tran Phu Street, Ngo Quyen District, Hai Phong City, Vietnam
Telephone	(84-31) 3757578
Fax	(84-31) 3757571
Foreign Currency Account	160314851001820
VND Account	160314851001817
2. MILITARY COMMERCIAL JOINT STOCK BANK HAI PHONG BRANCH
Address	No.2B Lach Tray, Ngo Quyen District, Hai Phong City, Vietnam
Telephone	(84-31) 3739 124
Fax	(84-31) 3739 120

SHAREHOLDERS
1. NAME	Ms. NGUYEN KIM THUY
Position	Director
Date of Birth	24 Nov 1968
ID Number/Passport	030761457
Issued on	26 Nov 1992
Issued Place	Police Station of Hai Phong city
Resident	No.4 Hoang Van Thu, Minh Khai Ward , Hong Bang District, Hai Phong City, Vietnam
Current Resident	No.57/32 Quater 2, Thanh Loc Ward , 12 District, Ho Chi Minh City, Vietnam
Mobile phone	++84 903709581
Nationality	Vietnamese
Value of shares	VND 188,640,000,000
Percentage	58.95%
2. NAME	Mr. CHATCHAWAT MITRCHAIJANANT
ID Number/Passport	K83884
Resident	Bangkok , Thailand
Nationality	Thais
Value of shares	VND 131,360,000,000
Percentage	41.05%

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
ASSETS
A – CURRENT ASSETS	316,865,995,675	235,253,529,376	209,176,573,398
I. Cash and cash equivalents	13,985,165,918	18,538,116,613	28,001,348,967
1. Cash	13,985,165,918	18,538,116,613	28,001,348,967
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	224,748,822,878	149,426,958,126	112,328,515,757
1. Receivable from customers	41,195,041,025	0
2. Prepayments to suppliers	1,317,928,271	67,633,990	129,542,971
3. Inter-company receivable	179,273,126,309	138,853,599,745	109,301,213,922
4. Receivable according to the progress of construction	0	0
5. Other receivable	2,962,727,273	10,505,724,391	2,897,758,864
6. Provisions for bad debts	0	0
IV. Inventories	27,263,533,317	36,204,044,061	58,969,664,821
1. Inventories	27,263,533,317	36,204,044,061	58,969,664,821
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	50,868,473,562	31,084,410,576	9,877,043,853
1. Short-term prepaid expenses	678,192,958	764,168,068	1,250,841,315
2. VAT to be deducted	49,607,051,491	30,257,706,180	8,626,202,538
3. Taxes and other accounts receivable from the State	583,229,113	62,536,328
4. Other current assets	0	0
B. LONG-TERM ASSETS	118,849,862,875	125,334,213,233	129,179,642,702
I. Long term accounts receivable	0	0
1. Long term account receivable from customers	0	0
2. Working capital in affiliates	0	0
3. Long-term inter-company receivable	0	0
4. Other long-term receivable	0	0
5. Provisions for bad debts from customers	0	0
II. Fixed assets	106,859,529,653	110,727,054,722	111,651,052,487
1. Tangible assets	94,865,748,035	99,954,392,206	102,526,902,594
- Historical costs	153,736,264,921	151,639,509,614	147,674,492,139
- Accumulated depreciation	-58,870,516,886	-51,685,117,408	-45,147,589,545
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	967,251,674	970,951,250	1,039,450,826
- Initial costs	1,154,549,978	1,154,549,978	1,154,549,978
- Accumulated amortization	-187,298,304	-183,598,728	-115,099,152
4. Construction-in-progress	11,026,529,944	9,801,711,266	8,084,699,067
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	0	0
1. Investments in affiliates	0	0
2. Investments in business concerns and joint ventures	0	0
3. Other long-term investments	0	0
4. Provisions for devaluation of long-term investments	0	0
V. Other long-term assets	11,990,333,222	14,607,158,511	17,528,590,215
1. Long-term prepaid expenses	11,990,333,222	14,607,158,511	17,528,590,215
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	435,715,858,550	360,587,742,609	338,356,216,100
LIABILITIES
A- LIABILITIES	109,548,023,308	30,224,254,588	120,113,674,500
I. Current liabilities	109,548,023,308	30,224,254,588	120,113,674,500
1. Short-term debts and loans	93,000,000,000	0
2. Payable to suppliers	10,317,420	102,607,374	519,537,374
3. Advances from customers	0	21,261,171,429	111,431,041,504
4. Taxes and other obligations to the State Budget	589,045,200	0	-138,683,172
5. Payable to employees	15,836,940,396	8,554,940,369	8,301,778,794
6. Accrued expenses	111,720,292	305,535,416
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	0	0
10. Provisions for short-term accounts payable	0	0
11. Bonus and welfare funds	0	0
II. Long-Term Liabilities	0	0
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	0	0
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	0	0
7. Provisions for long-term accounts payable	0	0
8. Unearned Sales	0	0
9. Science and technology development fund	0	0
B- OWNER’S EQUITY	326,167,835,242	330,363,488,021	218,242,541,600
I. OWNER’S EQUITY	326,167,835,242	330,363,488,021	217,910,608,244
1. Capital	320,000,000,000	326,502,700,000	216,769,430,000
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	378,390,356	345,814,356
10. Retained earnings	5,789,444,886	3,514,973,665	1,141,178,244
11. Construction investment fund	0	0
12. Business arrangement supporting fund	0	0
II. Other sources and funds	0	0	331,933,356
1. Bonus and welfare funds (Elder form)	0	0	331,933,356
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	435,715,858,550	360,587,742,609	338,356,216,100

PROFIT & LOSS STATEMENT
Description	FY2011	FY2010	FY2009
1. Total Sales	569,370,485,905	406,093,154,276	201,538,124,776
2. Deduction item	0	0
3. Net sales	569,370,485,905	406,093,154,276	201,538,124,776
4. Costs of goods sold	548,266,107,265	390,754,541,990	191,827,677,054
5. Gross profit	21,104,378,640	15,338,612,286	9,710,447,722
6. Financial income	578,505,747	393,717,231	980,746,194
7. Financial expenses	955,045,491	0
- In which: Loan interest expenses		0
8. Selling expenses	12,909,195,694	9,692,878,111	5,763,964,240
9. Administrative overheads	5,435,406,361	4,330,359,954	3,579,564,185
10. Net operating profit	2,383,236,841	1,709,091,452	1,347,665,491
11. Other income	287,314,749	2,375,606,966	347,266,289
12. Other expenses	25,817,612	1,135,892,911	378,785,822
13. Other profit /(loss)	261,497,137	1,239,714,055	-31,519,533
14. Total accounting profit before tax	2,644,733,978	2,948,805,507	1,316,145,958
15. Current corporate income tax	370,262,757	589,761,101	329,036,490
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	2,274,471,221	2,359,044,406	987,109,468

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	2.89	7.78	1.74	1.22
Quick liquidity ratio	2.64	6.59	1.25	0.91
Inventory circle	17.28	10.79	3.25	11.97
Average receive period	144.08	134.31	203.44	137.12
Utilizing asset performance	1.31	1.13	0.60	1.09
Liability by total assets	25.14	8.38	35.50	58.32
Liability by owner's equity	33.59	9.15	55.04	169.46
Ebit / Total assets (ROA)	0.61	0.82	0.39	5.93
Ebit / Owner's equity (ROE)	0.81	0.89	0.60	21.06
Ebit / Total sales (NPM)	0.46	0.73	0.65	5.12
Gross profit / Total sales (GPM)	3.71	3.78	4.82	13.95
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Fair
Liquidity	Medium/High
Payment status	Above Average
Financial Situation	Above Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C, T/T
Sale Methods	Retailer and Wholesaler
Public opinion	Good

INTERPRETATION ON THE SCORES

Founded in 1998, GOLDEN STAR COMPANY LIMITED was granted the Business Registration No.053835 on 19 May 1998 by Hai Phong Department of Planning and Development. Currently, the subject has operated under business number that is the same tax code No.0200288498 with chartered capital of VND 320 billion.

Headquartered of the subject is located at No. 1166 Nguyen Binh Khiem Str., Dong Hai 2 Ward, Hai An District, Hai Phong City. It specializes in producing and doing outwork leather footwear in order to export. Import markets are diverse such as Taiwan, Hong Kong, China, Japan. Products are then exported to EU, USA, Japan, Korea and Asean.

An interview was conducted with Mr. Dao Xuan Long – Deputy Director of the subject. He shared that its business activities have been effective in the recent years. Total assets and total sales in 2011 soared over 2010 but profit decreased slightly.

Following financial data in 2011, its financial situation is above average. The financial ratios are safe and quite good in comparison with the average industry. The liquidity is high and the liabilities are low. However, the profitability is humble.

In general, the subject is a large company whose position is remarkable in the business field. The prospect seems bright in the future. The subject can meet all normal business transactions.

APPENDIX

INDUSTRY DATA
Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2010		Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,887		24,362.9	95,227
Industry and Construction	5.53	7.70	95,217		10,718.9	3,641,376
Trade and Services	6.69	7.52	187,195		15,270.2	6,957,082
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.54.38
UK Pound	1	Rs.82.07
Euro	1	Rs.70.37

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.