MIRA INFORM REPORT

Report Date :

12.11.2013

IDENTIFICATION DETAILS

Name :	KOVINA FASHION INC
Registered Office :	6 Trang Bang Industrial Zone, Trang Bang Dist, Tay Ninh
Country :	Viet Nam
Date of Incorporation :	01.10.2010
Legal Form :	Private Company with Limited Liability
Line of Business :	Manufacturer of Garments & Accessories
No. of Employees :	1,100

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 :	Moderate
Payment Behaviour :	Unknown
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)
Viet Nam	B1	B1

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

VIET NAM - 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 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

REGISTERED NAME & COMPANY SUMMARY

Company Details

Organization Name	:	KOVINA FASHION INC
Address	:	6 Trang Bang Industrial Zone, Trang Bang Dist, Tay Ninh
Country	:	Vietnam
Phone (S)	:	[+84] 66-3896575
Facsimile	:	[+84] 66-3896579
Email	:	kovina@hcm.vnn.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Garments & Accessories

Key Facts

Registered Legal Address	:	6 Trang Bang Industrial Zone, Trang Bang Dist, Tay Ninh
Operational Address	:	6 Trang Bang Industrial Zone, Trang Bang Dist, Tay Ninh
Issuing Authority	:	Dept. of Planning & Investment - Tay Ninh
License Number	:	452023000042
License Status	:	License exists - Normal.
Legal Form - Category	:	Private Company with Limited Liability
Legal Form	:	Incorporated
Legal Form - Abbreviation	:	INC
Operational Status of Business	:	Normal
Date of Registration	:	1 Oct, 2010
Employees	:	1,100
Capital	:	US$ 5,000,000

Report Details

Country	:	Vietnam
Business Entity Name	:	KOVINA FASHION INC
Primary Business Activity	:	Manufacturer
Primary Industry	:	Garments & Accessories
Office Contact Details
Operating Address	:	6 Trang Bang Industrial Zone, Trang Bang Dist, Tay Ninh
Tel	:	[+84] 66-3896575
	:	[+84] 66-3896578
Fax	:	[+84] 66-3896579
Email	:	kovina@hcm.vnn.vn
Tax / VAT Details
Tax Issuing Authority	:	Ministry of Finance
Local Name Used	:	Gia Trj Gia Tang (Value Added Tax)
Acronym	:	GTGT / VAT
GTGT / VAT Number	:	3900317414

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Chairman
Name	:	Mr. Hee-jung Bang
Nationality	:	Korean

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Ki-hong Kwon	Korean	Managing Director	-
2	Ms. Tran Thi Nam Phuong	Vietnamese	Chief Accountant	-

Management Details – 1

Personal Unique Identifier	:	MI03554974
Name	:	Mr. Ki-hong Kwon
Date of Birth	:	1973

Management Details – 2

Personal Unique Identifier	:	MI03554977
Name	:	Ms. Tran Thi Nam Phuong
Date of Birth	:	1973

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03554975
Name	:	Mr. Hee-jung Bang
Date of Birth	:	1968
Nationality	:	Korean
2
Personal Unique Identifier	:	MI03554974
Name	:	Mr. Ki-hong Kwon
Date of Birth	:	1973
Nationality	:	Korean

NEGATIVE INFORMATION

NEGA-SCAN - ADVERSE DATA MONITORING

DISHONORED CHECKS

No Record Found

DEBT	No Record Found

LITIGATION

No Record Found

PERFORMANCE DEFAULTS

No Record Found

ADVERSE LOCAL MEDIA COVERAGE / ADVERSE FILING HISTORY

No Record Found

SHARE & SHARE CAPITAL INFORMATION

CAPITAL (Currency: USD - US Dollar)

Authorized Capital

:

5,000,000

SHAREHOLDERS

Total number of shareholders	:	1
Total number of shares	:	n/a

Currency

:

USD - US Dollar

No.	Shareholders	Country	Shares
			Number	Amount (USD)	%
1	Mr. Hee-jung Bang	Korea, South (Republic of Korea)	n/a	n/a	100.00
Total			n/a	n/a	100.00

Based on corporate statutory laws / regulations in Vietnam, there is no requirement for public disclosure of Shareholders. In this case, the Shareholders information was supplied by the Subject Business Entity.
However in the absence of data normally obtained from local Statutory Authorities, it is not possible to verify the accuracy of data supplied and hence is provided as reference ONLY.

PAYMENT INFORMATION

Supplementary Business

In addition to the core business, KOVINA FASHION INC also is engaged in the following areas of business:

1. Exporting
• Exporting - Finished products
2. Importing
• Importing - Raw materials

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
International Sales (Export)	100%

Annual Purchases Analysis	Percentage
Local Purchases	20%
Imports	80%

PAYMENT TERMS

Selling

Type	Terms
Export	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Received at time of transaction

Purchasing

Type	Terms
Local	Cash on delivery (COD) Credit - Unsecured 30~60 days
Import	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Executed at time of transaction

GROUP STRUCTURE & AFFILIATED COMPANIES

N/a

FINANCIAL INFORMATION

FINANCIAL STATEMENT - DETAILED

Based on the corporate laws of Vietnam, legal entities which are Private Company with Limited Liability are not required to make public disclosure of their annual financials. Therefore no financials are available for this entity.

FOREIGN EXCHANGE RATES

N/a

ADDITIONAL INFORMATION

Primary Products

Products / Materials / Services Description	Activity
Fashion garments	Manufacturing, Exporting
Jackets	Manufacturing, Exporting
Jeans	Manufacturing, Exporting
Pants	Manufacturing, Exporting
Textile products	Manufacturing, Exporting

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Apparel and accessories, nspf	2389	Manufacturing, Exporting
Apparel/Other Textile Products	2300	Manufacturing, Exporting
Fabricated textile products, nspf	2399	Manufacturing, Exporting
Textile goods, nspf	2299	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Articles of apparel	4203100090	Manufacturing, Exporting
Articles of apparel & clothing accessories-knitted or crocheted	6100	Manufacturing, Exporting
Garments nesoi, knitted or crocheted	6114	Manufacturing, Exporting
Other made up clothing accessories, knitted or crocheted, parts of garments: parts, of coats and jackets: of cotton	6117909040	Manufacturing, Exporting
Textile products etc. for specific tech uses	5911	Manufacturing, Exporting
Worn clothing and other worn textile articles	6309	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of KOVINA FASHION INC is Manufacturing - Finished products.

Key products include :

• Fashion garments
• Jackets
• Jeans
• Pants
• Textile products

An integral part of the core business includes:

• Distribution

REPUTATION

Reference checking for the purpose of establishing the KOVINA FASHION INC's reputation within the respective industry failed to reveal any adverse information.

BANK DETAILS

Bank Name	:	VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY & TRADE
Global Identifier	:	P1243404
SWIFT Code	:	This bank does not have a SWIFT Code

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
North America	Medium	Exporting
China	Medium	Importing
Hong Kong	Medium	Importing
Korea, South (Republic of Korea)	Medium	Importing, Exporting
USA	Medium	Exporting

OFFICE & FACILITIES

Name	:	KOVINA FASHION INC - TRANG BANG DIST, TAY NINH
Address	:	6 Trang Bang Industrial Zone, Trang Bang Dist, Tay Ninh
Country	:	Vietnam
Status	:	Operational

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
13 Jan, 2001	12/GP-KCN-TN

NOTES & COMMENTS

N/a

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.29
UK Pound	1	Rs.101.36
Euro	1	Rs.84.59

INFORMATION DETAILS

Report Prepared by :

PDT

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.