MIRA INFORM REPORT

Report Date :

25.09.2013

IDENTIFICATION DETAILS

Name :	DAE YUN (VIETNAM) CO LTD
Registered Office :	Linh Trung 1 Industrial Zone Lot 23-25 Rd 4 Linh Trung Ward, Thu Duc, Ho Chi Minh
Country :	Vietnam
Financials (as on) :	December 2012
Date of Incorporation :	17.04.1995
Legal Form :	Company Limited
Line of Business :	Manufacturer of Footwear.
No. of Employees :	600

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

Company Details

Organization Name	:	DAE YUN (VIETNAM) CO LTD
Address	:	Linh Trung 1 Industrial Zone Lot 23-25 Rd 4 Linh Trung Ward, Thu Duc, Ho Chi Minh
Country	:	Vietnam
Phone (S)	:	[+84] 8-38962720
Facsimile	:	[+84] 8-38962719
Email	:	daeyun-vn@hcm.fpt.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Footwear

Key Facts

Registered Legal Address	:	Linh Trung 1 Industrial Zone Lot 23-25 Rd 4 Linh Trung Ward, Thu Duc, Ho Chi Minh
Operational Address	:	Linh Trung 1 Industrial Zone Lot 23-25 Rd 4 Linh Trung Ward, Thu Duc, Ho Chi Minh
Issuing Authority	:	Dept. of Planning & Investment - Ho Chi Minh
License Number	:	044/GP-DT
License Status	:	License exists - Normal.
Legal Form - Category	:	Private Company with Limited Liability
Legal Form	:	Company Limited
Legal Form - Abbreviation	:	CO LTD
Operational Status of Business	:	Normal
Date of Registration	:	17 Apr, 1995
Employees	:	600
Capital	:	US$ 2,120,000

Report Details

Country	:	Vietnam
Business Entity Name	:	DAE YUN (VIETNAM) CO LTD
Primary Business Activity	:	Manufacturer
Primary Industry	:	Footwear
Office Contact Details
Operating Address	:	Linh Trung 1 Industrial Zone Lot 23-25 Rd 4 Linh Trung Ward, Thu Duc, Ho Chi Minh
Tel	:	[+84] 8-38962720
	:	[+84] 8-38962721
	:	[+84] 8-38962722
Fax	:	[+84] 8-38962719
Email	:	daeyun-vn@hcm.fpt.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	:	0300741383

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Managing Director
Name	:	Mr. Dae-hoon Kwak
Nationality	:	Korean

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Dinh Van Thanh	Vietnamese	Chief Accountant	-

Management Details - 1

Personal Unique Identifier	:	MI03341408
Name	:	Mr. Dinh Van Thanh
Date of Birth	:	1971

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI01097989
Name	:	Mr. Dae-hoon Kwak
Date of Birth	:	1967
Nationality	:	Korean

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing the DAE YUN (VIETNAM) CO LTD's reputation within the respective industry failed to reveal any adverse 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

:

2,120,000

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. Dae-hoon Kwak	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

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

Na

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2011 Annual (*)	13,689,966	7,030,965	-264,570

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	2011 Annual
Current Assets	131,163,000,000
Non Current Assets	15,292,000,000
Other long term assets
Total Assets	146,455,000,000
Total Liabilities	135,409,000,000
Current Liabilities	135,409,000,000
Long term liabilities
Shareholders Funds	11,046,000,000
Current assets & short term investments	131,163,000,000
Cash & cash equivalents	7,782,000,000
Cash	7,782,000,000
Accounts receivable	78,713,000,000
Accounts receivable trade	77,227,000,000
Trade prepayment	1,466,000,000
Others receivables	20,000,000
Inventories	43,343,000,000
I. Other short term asset	1,325,000,000
Prepaid expenses	125,000,000
II. Other short term asset	1,200,000,000
Long term assets	15,292,000,000
Fixed assets	6,144,000,000
Tangible fixed assets	6,144,000,000
Cost	52,456,000,000
Accumulated depreciation	46,312,000,000
Long term prepayments	9,148,000,000
Other long term assets	9,148,000,000
Total assets	146,455,000,000
Liabilities	135,409,000,000
Current liabilities	135,409,000,000
Short term borrowings	74,020,000,000
Accounts payables-trade	53,120,000,000
Advances from customers	3,077,000,000
Taxes and payable to state budget	(1,917,000,000)
Payable to employees	6,450,000,000
Other payables	659,000,000
Owner's equity	11,046,000,000
Business capital	44,149,000,000
Retained earnings	(33,103,000,000)
Total resources	146,455,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual
Turnover	285,162,000,000
Profit (Loss) Before Tax	(5,511,000,000)
Profit After Tax attributable to Shareholders	(5,511,000,000)
Gross sales	285,162,000,000
Less deductions	1,751,000,000
Net income	283,411,000,000
Cost of goods sold	249,344,000,000
Gross margin	34,067,000,000
Income from financial activities	4,978,000,000
Expenses from financial activities	4,140,000,000
Selling expenses	32,452,000,000
General & administration expenses	14,503,000,000
Net income from operating activities	(12,050,000,000)
Extraordinary income	6,539,000,000
Extraordinary gains	6,539,000,000
Net profit before tax	(5,511,000,000)
Net profit after tax	(5,511,000,000)

Financial Ratios

Financial Highlights	2011 Annual
Profitability
Profit Margin (%)	(1.93)
Return on Equity (%)	(49.89)
Return on Assets (%)	(3.76)
Leverage
Total Debt Equity (Times)	12.26
Current Debt Equity (Times)	12.26
Total Asset To Total Equity	13.26
Asset Management
Total Assets Turnover (Times)	1.95
Fixed Assets Turnover (Times)	18.65
Liquidity
Current Ratio	0.97

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. Although financials were obtained for reference.

FOREIGN EXCHANGE RATES

Na

ADDITIONAL INFORMATION

Primary Products

Products / Materials / Services Description	Activity
Shoes	Manufacturing, Exporting
Sports shoes	Manufacturing, Exporting

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

Year	Imports	Exports	Total
2011	n/a	13,689,966	13,689,966

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Footwear, nspf	3149	Manufacturing, Exporting
Rubber and plastics footwear	3021	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Footwear	6405	Manufacturing, Exporting
Footwear with uppers of textile materials and outer soles of rubber or plastics, sports footwear, including tennis, basketball, and gym shoes etc	6404110000	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of DAE YUN (VIETNAM) CO LTD is Manufacturing - Finished products.

Key products include :

Shoes

Sports shoes

An integral part of the core business includes:

Distribution

Supplementary Business

In addition to the core business, DAE YUN (VIETNAM) CO LTD also is engaged in the following areas of business:

Exporting

Exporting - Finished products

Importing

Importing - Raw materials

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
International Sales (Export)	100%

Annual Purchases Analysis	Percentage
Local Purchases	20%
Imports	80%

BANK DETAILS

Bank Name

:

FIRSTVINA BANK

Global Identifier

:

32402471

Branch

:

District 1,Ho Chi Minh

Branch Address

:

3 Ho Tung Mau St District 1 Ho Chi Minh (Head Office)

SWIFT Code

:

This bank does not have a SWIFT Code

#	Account Number
1	3621.06.99.0000.2223.01

Bank Name

:

SHINHANVINA BANK

Global Identifier

:

P0824947

Branch

:

District 1,Ho Chi Minh

Branch Address

:

SONG THAN

SWIFT Code

:

SHBKVNVN

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
Europe	Medium	Importing, Exporting
North America	Medium	Exporting
Italy	Medium	Importing, Exporting
Korea, South (Republic of Korea)	Medium	Importing, Exporting
Singapore	Medium	Exporting
USA	Medium	Exporting

OFFICE & FACILITIES

Name	:	DAE YUN (VIETNAM) CO LTD - THU DUC, HO CHI MINH
Address	:	Linh Trung 1 Industrial Zone Lot 23-25 Rd 4 Linh Trung Ward, Thu Duc, Ho Chi Minh
Country	:	Vietnam
Status	:	Operational

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.66
UK Pound	1	Rs.100.46
Euro	1	Rs.84.60

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.