MIRA INFORM REPORT

Report Date :

20.09.2013

IDENTIFICATION DETAILS

Name :	HANG KENH CORP
Registered Office :	124 Nguyen Duc Canh Cat Dai Ward, Le Chan Dist, Haiphong
Country :	Vietnam
Financials (as on) :	December 2010
Date of Incorporation :	03.11.2009
Legal Form :	Joint Stock Company
Line of Business :	Manufacturer of Textiles & Raw Material.
No. of Employees :	1,300

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 :	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 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

Organization Name	:	HANG KENH CORP
Address	:	124 Nguyen Duc Canh Cat Dai Ward, Le Chan Dist, Haiphong
Country	:	Vietnam
Phone (S)	:	[+84] 31-3700509
Facsimile	:	[+84] 31-3700440
Email	:	tapishangkenh@hn.vnn.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Textiles & Raw Material

Registered Legal Address

:

124 Nguyen Duc Canh Cat Dai Ward, Le Chan Dist, Haiphong

Operational Address

:

124 Nguyen Duc Canh Cat Dai Ward, Le Chan Dist, Haiphong

Trading Name

:

HAKO

Name History

:

Business Entity Name	Effective Date
CONG TY THAM HANG KENH	27 Aug, 1998
HANG KENH CORP	Jan, 2011

Issuing Authority

:

Dept. of Planning & Investment - Hai Phong

License Number

:

0200102626

License Status

:

License exists - Normal.

Legal Form - Category

:

Joint Stock Company

Legal Form

:

Corporation

Legal Form - Abbreviation

:

CORP

Operational Status of Business

:

Normal

Date of Registration

:

3 Nov, 2009

Employees

:

1,300

Capital

:

US$ 1,924,002

Report Details

Country	:	Vietnam
Business Entity Name	:	HANG KENH CORP
Primary Business Activity	:	Manufacturer
Primary Industry	:	Textiles & Raw Material
Office Contact Details
Operating Address	:	124 Nguyen Duc Canh Cat Dai Ward, Le Chan Dist, Haiphong
Tel	:	[+84] 31-3700509
	:	[+84] 31-3700695
Fax	:	[+84] 31-3700440
Email	:	tapishangkenh@hn.vnn.vn admin@t-ashoes.com.tw

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Chairman
Name	:	Mr. Hoang Manh The
Nationality	:	Vietnamese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Ms. Ngo Thi Hang	Vietnamese	Chief Accountant	-
2	Ms. Nguyen Thi Ngoc Lan	Vietnamese	Deputy Managing Director	-
3	Mr. Hoang Manh The	Vietnamese	Managing Director	-

Management Details - 1

Personal Unique Identifier	:	MI03140711
Name	:	Ms. Ngo Thi Hang
Date of Birth	:	1964

Management Details - 2

Personal Unique Identifier	:	MI03140710
Name	:	Ms. Nguyen Thi Ngoc Lan
Date of Birth	:	1957

Management Details - 3

Personal Unique Identifier	:	MI03140707
Name	:	Mr. Hoang Manh The
Date of Birth	:	1956

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03140707
Name	:	Mr. Hoang Manh The
Date of Birth	:	1956
Nationality	:	Vietnamese

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: VND - Vietnam Dong)

Authorized Capital

:

40,000,000,000

SHAREHOLDERS

Not available - According to the corporate statutory laws for this type of Legal Form - Category (Joint Stock Company) in Vietnam, there is no public disclosure of Shareholders.

PAYMENT INFORMATION

International Trade - Statistics  (Currency: USD - US Dollar)

Year	Imports	Exports	Total
2010	n/a	3,417,835	3,417,835

Supplementary Business

In addition to the core business, HANG KENH CORP also is engaged in the following areas of business:

Exporting

Exporting - Finished products

Importing

Importing - Raw materials

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	20%
International Sales (Export)	80%

Annual Purchases Analysis	Percentage
Local Purchases	20%
Imports	80%

PAYMENT TERMS

Selling

Type	Terms
Local	Cash on delivery (COD)
Export	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Received at time of transaction

Purchasing

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

GROUP STRUCTURE & AFFILIATED COMPANIES

N/a

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2010 Annual (*)	4,272,293	5,483,992	334,120

Note: (*)

Financials listed are the most recent available for this company.

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2010 Annual
Current Assets	79,209,000,000
Non Current Assets	27,674,000,000
Non Current Liabilities	5,673,000,000
Share Capital	40,000,000,000
Other long term assets
Total Assets	106,883,000,000
Total Liabilities	20,758,000,000
Current Liabilities	15,085,000,000
Long term liabilities
Shareholders Funds	86,125,000,000
Current assets & short term investments	79,209,000,000
Cash & cash equivalents	20,555,000,000
Cash	8,555,000,000
Cash equivalents	12,000,000,000
Short term investments	4,851,000,000
Short term securities investments	4,851,000,000
Accounts receivable	40,998,000,000
Accounts receivable trade	4,157,000,000
Trade prepayment	12,220,000,000
Inter company receivables	24,721,000,000
Provision for bad debts	(100,000,000)
I. Inventories	10,705,000,000
II. Inventories	10,705,000,000
I. Other short term asset	2,100,000,000
Prepaid expenses	69,000,000
VAT deductible	965,000,000
II. Other short term asset	1,066,000,000
Long term assets	27,674,000,000
Fixed assets	27,674,000,000
Tangible fixed assets	21,744,000,000
I. Cost	43,883,000,000
I. Accumulated depreciation	22,139,000,000
Intangible fixed assets	3,022,000,000
II. Cost	5,896,000,000
II. Accumulated depreciation	2,874,000,000
Construction in progress	2,908,000,000
Total assets	106,883,000,000
Liabilities	20,758,000,000
Current liabilities	15,085,000,000
Short term borrowings	8,184,000,000
Accounts payables-trade	1,377,000,000
Advances from customers	319,000,000
Taxes and payable to state budget	1,258,000,000
Payable to employees	2,737,000,000
Accrued expenses payable	202,000,000
Other payables	1,008,000,000
Long term liabilities	5,673,000,000
Long term other payables	1,549,000,000
Long term borrowings	3,781,000,000
Provision funds for unemployment	343,000,000
I. Owner's equity	86,125,000,000
II. Owner's equity	85,198,000,000
Business capital	40,000,000,000
Share capital's surplus	26,264,000,000
Financial reserved funds	5,477,000,000
Other funds from owner's equity	1,606,000,000
Retained earnings	9,976,000,000
Capital investment sources	1,875,000,000
Budget sources	927,000,000
Bonus and welfare funds	927,000,000
Total resources	106,883,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2010 Annual
Turnover	83,267,000,000
Profit (Loss) Before Tax	8,683,000,000
Profit After Tax attributable to Shareholders	6,512,000,000
Gross sales	83,267,000,000
Net income	83,267,000,000
Cost of goods sold	68,325,000,000
Gross margin	14,942,000,000
Income from financial activities	1,958,000,000
Expenses from financial activities	338,000,000
In which: Interest expenses	319,000,000
Selling expenses	781,000,000
General & administration expenses	6,953,000,000
Net income from operating activities	8,828,000,000
Extraordinary income	19,000,000
Extraordinary expenses	164,000,000
Extraordinary gains	(145,000,000)
Net profit before tax	8,683,000,000
Income tax	2,171,000,000
Net profit after tax	6,512,000,000

Financial Ratios

Financial Highlights	2010 Annual
Profitability
Profit Margin (%)	7.82
Return on Equity (%)	7.56
Return on Assets (%)	6.09
Leverage
Total Debt Equity (Times)	0.24
Current Debt Equity (Times)	0.18
Long Term Debt to Equity	0.07
Total Asset To Total Equity	1.24
Asset Management
Total Assets Turnover (Times)	0.78
Fixed Assets Turnover (Times)	3.01
Liquidity
Current Ratio	5.25

FOREIGN EXCHANGE RATES

N/a

ADDITIONAL INFORMATION

Primary Products

Products / Materials / Services Description	Activity
Carpet	Manufacturing, Exporting

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Carpets and rugs	2273	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Carpets & other textile floor coverings	5700	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of HANG KENH CORP is Manufacturing - Finished products.

Key product include :

Carpet

An integral part of the core business includes:

Distribution

REPUTATION

Reference checking for the purpose of establishing the HANG KENH CORP's reputation within the respective industry failed to reveal any adverse information.

BANK DETAILS

Bank Name	:	JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
Global Identifier	:	P1072025
Branch	:	Hanoi
Branch Address	:	31-33 Ngo Quyen Hanoi (Head Office)
SWIFT Code	:	BFTVVNVX

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
Europe	Medium	Importing, Exporting
Belgium	Medium	Exporting
China	Medium	Importing
France	Medium	Exporting
Germany	Medium	Importing, Exporting
Spain	Medium	Exporting
Taiwan	Medium	Importing, Exporting

OFFICE & FACILITIES

Name	:	HANG KENH CORP - LE CHAN DIST, HAIPHONG
Address	:	124 Nguyen Duc Canh Cat Dai Ward, Le Chan Dist, Haiphong
Country	:	Vietnam
Status	:	Operational

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
27 Aug, 1998	105556
12 Dec, 2005	0203001961

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.75
UK Pound	1	Rs.99.56
Euro	1	Rs.83.55

INFORMATION DETAILS

Report Prepared by :

NIS

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.