MIRA INFORM REPORT

Report Date :

16.12.2014

IDENTIFICATION DETAILS

Name :	TONGKOOK VIETNAM SPINNING CO LTD
Registered Office :	Suit A 3Fl Cantavil Bldg An Phu Ward, District 2, Ho Chi Minh
Country :	Vietnam
Financials (as on) :	December, 2013
Date of Incorporation :	16.07.2008
Legal Form :	Company Limited
Line of Business :	Manufacturer of Textiles & Raw Material
No of Employees :	600

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 :	Good
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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Vietnam	A2	A2

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 20% in 2013, while industry's share increased from 36% to more than 42% in the same period. State-owned enterprises account for about 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 2013 growing at 5%, the slowest rate of growth since 1999. In 2013, however, exports increased by more than 12%, 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 relatively stable in 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 has been made. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses.

Source : CIA

REGISTERED NAME & COMPANY SUMMARY

Organization Name	:	TONGKOOK VIETNAM SPINNING CO LTD
Address	:	Suit A 3Fl Cantavil Bldg An Phu Ward, District 2, Ho Chi Minh
Country	:	Vietnam
Phone (S)	:	[+84] 8-37402257
Facsimile	:	[+84] 8-37402260
Email	:	hcmadmin@tkvn.com.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Textiles & Raw Material

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Chairman
Name	:	Mr. Young-Woo Chun
Nationality	:	Korean

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Kyu-Chul Hwang	Korean	Managing Director	-
2	Ms. Le Thi Bich Thu	Vietnamese	Chief Accountant	-

Management Details – 1

Personal Unique Identifier	:	MI03805158
Name	:	Mr. Kyu-Chul Hwang

Management Details – 2

Personal Unique Identifier	:	MI03805166
Name	:	Ms. Le Thi Bich Thu
Date of Birth	:	1979

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03805158
Name	:	Mr. Kyu-Chul Hwang
2
Personal Unique Identifier	:	MI03805165
Name	:	Mr. Young-Woo Chun

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing TONGKOOK VIETNAM SPINNING 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

CIVIL LITIGATION

No Record Found

PERFORMANCE DEFAULTS

No Record Found

ADVERSE LOCAL MEDIA COVERAGE / ADVERSE FILING HISTORY

No Record Found

SHARE & SHARE CAPITAL INFORMATION

Capital

:

US$ 39,198,016

CAPITAL (Currency: VND - Vietnam Dong)

Authorized Capital

:

₫ 828,787,162,512

SHAREHOLDERS

Total number of shareholders	:	1
Total number of shares	:	N/A

Currency

:

VND - Vietnam Dong

No.	Shareholders	Country	Shares
			Number	Amount (VND)	%
1	DAEWON CO LTD	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

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

Year	Imports	Exports	Total
2012	n/a	25,612,192	25,612,192
2013	n/a	27,483,172	27,483,172

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	10%
International Sales (Export)	90%

Annual Purchases Analysis	Percentage
Local Purchases	100%

PAYMENT TERMS

Selling

Type	Terms
Local	Cash on delivery (COD) Credit - Secured with Post-dated checks 30~60 days
Export	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Received at time of transaction

Purchasing

Type	Terms
Local	Cash on delivery (COD) Credit - Secured with Post-dated checks 30~60 days

GROUP STRUCTURE & AFFILIATED COMPANIES

DIRECT / INDIRECT CORPORATE PARENT DETAILS

Direct Parent	:	DAEWON CO LTD
Global Identifier	:	P1067788
Legal Form Category	:	Private Company with Limited Liability
Country	:	Korea, South (Republic of Korea)
Operational Address	:	2Fl, A-Dong Twin Tower 275-3 Yangjae 2-dong Socho-gu Seoul 137944
Primary Business Activity	:	Manufacturer

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2012 Annual	28,457,992	27,370,531	655,809
2013 Annual	30,536,858	31,406,163	2,628,213

Sales Trend – Analysis

2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
-	-	-	-	-	-	-	-	-

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2012 Annual	2013 Annual
Current Assets(*)	363,097,000,000	436,575,000,000
Non Current Assets(*)	206,885,000,000	225,721,000,000
Non Current Liabilities(*)	2,487,000,000	2,658,000,000
Share Capital(*)	440,742,000,000	440,742,000,000
Other long term assets
Total Assets(*)	569,982,000,000	662,296,000,000
Total Liabilities(*)	132,850,000,000	169,739,000,000
Current Liabilities(*)	130,363,000,000	167,081,000,000
Long term liabilities
Shareholders Funds(*)	437,132,000,000	492,557,000,000
Current assets & short term investments	363,097,000,000	436,575,000,000
Cash & cash equivalents	14,533,000,000	14,187,000,000
Cash	14,533,000,000	14,187,000,000
Short term investments	253,795,000,000	296,250,000,000
Short term securities investments	253,795,000,000	296,250,000,000
Accounts receivable	34,409,000,000	44,018,000,000
Accounts receivable trade	35,019,000,000	41,214,000,000
Trade prepayment	392,000,000	894,000,000
Others receivables	7,160,000,000	10,072,000,000
Provision for bad debts	(8,162,000,000)	(8,162,000,000)
i.Inventories	56,512,000,000	64,150,000,000
ii.Inventories	56,512,000,000	64,383,000,000
Provision for decline in inventory	-	(233,000,000)
i.Other short term asset	3,848,000,000	17,970,000,000
Prepaid expenses	2,268,000,000	2,412,000,000
VAT deductible	1,427,000,000	15,136,000,000
ii.Other short term asset	153,000,000	422,000,000
Long term assets	206,885,000,000	225,721,000,000
Fixed assets	200,205,000,000	190,662,000,000
Tangible fixed assets	199,526,000,000	190,565,000,000
i.Cost	340,256,000,000	339,084,000,000
i.Accumulated depreciation	140,730,000,000	148,519,000,000
Intangible fixed assets	679,000,000	97,000,000
ii.Cost	9,699,000,000	9,699,000,000
ii.Accumulated depreciation	9,020,000,000	9,602,000,000
Long term investments	3,160,000,000	28,865,000,000
Other long term investments	3,160,000,000	28,865,000,000
Other long term assets	3,520,000,000	6,194,000,000
Long term prepayments	2,874,000,000	5,532,000,000
Asset of income tax delay	646,000,000	662,000,000
Total assets	569,982,000,000	662,296,000,000
Liabilities	132,850,000,000	169,739,000,000
Current liabilities	130,363,000,000	167,081,000,000
Short term borrowings	106,514,000,000	142,569,000,000
Accounts payables-trade	6,017,000,000	5,938,000,000
Advances from customers	518,000,000	182,000,000
Taxes and payable to state budget	12,129,000,000	12,947,000,000
Payable to employees	3,952,000,000	4,162,000,000
Accrued expenses payable	1,004,000,000	1,236,000,000
Other payables	229,000,000	47,000,000
Long term liabilities	2,487,000,000	2,658,000,000
Long term other payables	2,452,000,000	2,658,000,000
Payable income tax delay	35,000,000	-
Owner's equity	437,132,000,000	492,557,000,000
Business capital	440,742,000,000	440,742,000,000
Retained earnings	(3,610,000,000)	51,815,000,000
Total resources	569,982,000,000	662,296,000,000

Note: (*)

Financial Highlights

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2012 Annual	2013 Annual
Turnover(*)	592,628,000,000	643,964,000,000
Profit (Loss) Before Tax(*)	18,683,000,000	75,949,000,000
Profit After Tax attributable to Shareholders(*)	13,657,000,000	55,424,000,000
Gross sales	592,628,000,000	643,964,000,000
Net income	592,628,000,000	643,964,000,000
Cost of goods sold	563,910,000,000	556,052,000,000
Gross margin	28,718,000,000	87,912,000,000
Income from financial activities	19,787,000,000	24,436,000,000
Expenses from financial activities	2,921,000,000	5,960,000,000
In which: Interest expenses	0	3,768,000,000
Selling expenses	12,018,000,000	14,281,000,000
General & administration expenses	15,061,000,000	16,011,000,000
Net income from operating activities	18,505,000,000	76,096,000,000
Extraordinary income	8,670,000,000	1,854,000,000
Extraordinary expenses	8,492,000,000	2,001,000,000
Extraordinary gains	178,000,000	(147,000,000)
Net profit before tax	18,683,000,000	75,949,000,000
Income tax	6,118,000,000	20,577,000,000
Income tax delay	1,092,000,000	52,000,000
Net profit after tax	13,657,000,000	55,424,000,000

Note: (*)

Financial Highlights

Financial Ratios

Financial Highlights	2012 Annual	2013 Annual
Growth %
Year-on-Year Growth	-	8.66
Profitability
Profit Margin (%)	2.30	8.61
Return on Equity (%)	3.12	11.25
Return on Assets (%)	2.40	8.37
Leverage
Total Debt Equity (Times)	0.30	0.34
Current Debt Equity (Times)	0.30	0.34
Long Term Debt to Equity	0.01	0.01
Total Asset To Total Equity	1.30	1.34
Asset Management
Total Assets Turnover (Times)	1.04	0.97
Fixed Assets Turnover (Times)	2.86	2.85
Liquidity
Current Ratio	2.79	2.61

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 basic financials were obtained for reference.

FOREIGN EXCHANGE RATES

Today's Exchange rate

:

1.00 VND Vietnam Dong

=

0.000047 USD United States Dollars

ADDITIONAL INFORMATION

Key Facts

Registered Legal Address	:	Suit A 3Fl Cantavil Bldg An Phu Ward, District 2, Ho Chi Minh
Operational Address	:	Suit A 3Fl Cantavil Bldg An Phu Ward, District 2, Ho Chi Minh
Issuing Authority	:	Industrial Zone Management Board - Dong Nai
License Number	:	472043000293
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	:	16 Jul, 2008
Employees	:	600

Report Details
Country	:	Vietnam
Business Entity Name	:	TONGKOOK VIETNAM SPINNING CO LTD
Primary Business Activity	:	Manufacturer
Primary Industry	:	Textiles & Raw Material
Office Contact Details
Operating Address	:	Suit A 3Fl Cantavil Bldg An Phu Ward, District 2, Ho Chi Minh
Tel	:	[+84] 8-37402257
	:	[+84] 8-37402259
Fax	:	[+84] 8-37402260
Email	:	hcmadmin@tkvn.com.vn
Factory Contact Details
Address	:	Nhon Trach Industrial Zone Rd 4, Nhon Trach Dist, Dong Nai
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	:	3600249192
Date of Issuance	:	28 Oct, 1998

Primary Products

Products / Materials / Services Description	Activity
Plastic film	Manufacturing, Exporting
Textile products	Manufacturing, Exporting
Yarns	Manufacturing, Exporting

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Textile Mill Products	2200	Manufacturing, Exporting
Thread and handwork yarns	2284	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Art of yarn like of head 5404/5405 twine or cable	5609	Manufacturing, Exporting
Textile products etc. for specific tech uses	5911	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of TONGKOOK VIETNAM SPINNING CO LTD is Manufacturing - Finished products.

Key products include:

Textile products

Yarns

An integral part of the core business includes:

Distribution

Supplementary Business

In addition to the core business, TONGKOOK VIETNAM SPINNING CO LTD also is engaged in the following areas of business:

Exporting

Exporting - Finished products

BANK DETAILS

Bank Name	:	ASIA COMMERCIAL JOINT STOCK BANK
Global Identifier	:	P0075118
Branch	:	District 3,Ho Chi Minh
Branch Address	:	ASIA COMMERCIAL JOINT STOCK BANK - DONG NAI
SWIFT Code	:	ASCBVNVX

INTERNATIONAL TRADE - Activity & Markets
Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Exporting

OFFICE & FACILITIES

The following information relates to the Business Entity's office as listed above:

Name	:	TONGKOOK VIETNAM SPINNING CO LTD - DISTRICT 2, HO CHI MINH
Primary Use	:	Office & Administration facilities
Address	:	Suit A 3Fl Cantavil Bldg An Phu Ward, District 2, Ho Chi Minh
Country	:	Vietnam
Status	:	Operational

FACTORIES, SIZE, & LOCATIONS

The following information relates to the Business Entity's factory as listed above:

Address

:

Nhon Trach Industrial Zone Rd 4, Nhon Trach Dist, Dong Nai

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
1 Jul, 1997	1009/GPDC

NOTES & COMMENTS

N/A

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.65
UK Pound	1	Rs.98.53
Euro	1	Rs.78.15

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ANK

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.