MIRA INFORM REPORT

Report Date :

26.03.2013

IDENTIFICATION DETAILS

Name :	SPICA ELASTIC VIETNAM CO., LTD
Registered Office :	Factory I2-01 Lot I2, Que Vo Industrial Zone (expanded), Que Vo District, Bac Ninh Province
Country :	Vietnam
Date of Incorporation :	16.08.2010
Com. Reg. No.:	Not available
Legal Form :	Foreign Invested Company
Line of Business :	manufacturing and trading elastic narrow fabric
No. of Employees :	100

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 :	New Company
Payment Behaviour :	Usually Correct
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
English Name	SPICA ELASTIC VIETNAM CO., LTD
Vietnamese Name	CONG TY TNHH SPICA ELASTIC VIET NAM
Type of Business	Foreign invested company
Year Established	2010
Investment Certificate No	212043000292
Date Of Issuance	16 Aug 2010
Place of Issuance	Bac Ninh Industrial Zones Authority
Registered Investment Capital	USD 300,000
Chartered capital	USD 300,000
Status	Unlisted
Tax code	2300564258
Total Employees	100
Size	Medium

Company ADDRESSES
Head Office
Address	Factory I2-01 Lot I2, Que Vo Industrial Zone (expanded), Que Vo District, Bac Ninh Province, Vietnam
Telephone	(84-241) 3952071/ 2171
Fax	(84-241) 39522701
Note: The correct address of the subject is as above.

DIRECTORS
1. NAME	Mr. AMISH RAJNIKANT JAITHA
Position	General Director
ID Number/Passport	Z2266580
Nationality	Indian

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in manufacturing and trading elastic narrow fabric.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Market	India
EXPORT:
· Market	The subject does not export.

BANKERS
1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM QUE VO TRANSACTION
Address	Que Vo Industrial Zone, Que Vo District, Bac Ninh Province, Vietnam
Telephone	(84-241) 3614362
Fax	(84-241) 3614363

SHAREHOLDERS
1. NAME	SPICA ELASTIC PRIVATE LIMITED
Address	22/2, Hadapsar Industrial Estate, Pune 411 013, India
Tel	+91-20-2687 0051
Fax	+91-20-2687 2212
Percentage	100%

FINANCIAL DATA

N/A

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Normal
Liquidity	N/A
Payment status	N/A
Financial Situation	Below Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	T/T, L/C
Sale Methods	To contracts
Public opinion	Limited

INTERPRETATION ON THE SCORES

SPICA ELASTIC VIETNAM CO., LTD was newly established in 2010 as a wholly foreign invested company from India. It is granted under the Investment Certificate No. 212043000292 issued by Bac Ninh Industrial Zones Authority. The investment capital and chartered capital are both USD 300,000.

The head office and factory of the subject are located at Factory I2-01 Lot I2, Que Vo Industrial Zone (expanded), Que Vo District, Bac Ninh Province, Vietnam. The subject is specialized in manufacturing and trading elastic narrow fabric used for underwear production for men and women. The subject mainly imports from India. SPICA ELASTIC PRIVATE LIMITED – the subject’s parent company was founded in 1965 and is the pioneer of the Narrow Elastic business in India. Its main products are Men's Underwear, Women's Lingerie and Intimate Apparel, Special Purpose Elastics.

The latest financial statement of the subject is not yet available in our source at the moment. Regarding to its new existence in Vietnam market and small investment capital, the financial situation of the subject could be modest now.

In short, the subject is a medium sized company. The management capacity is on average. Its position seems to be limited in the industry. Caution is needed for medium and big financial commitments with the subject.

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)
	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.54.09
UK Pound	1	Rs.82.47
Euro	1	Rs.70.49

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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