MIRA INFORM REPORT

Report Date :

07.02.2014

IDENTIFICATION DETAILS

Name :	TAINAN SPINNING CO LTD VIETNAM
Registered Office :	Bien Hoa Industrial Zone 2, 17A 9 Rd, Bien Hoa, Dong Nai
Country :	Vietnam
Financials (as on) :	December 2012
Date of Incorporation :	23.05.2008
Legal Form :	Company Limited
Line of Business :	Manufacturer of Textiles and Raw Material
No of Employees :	4,400

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 :	Satisfactory
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 – december 01, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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	:	TAINAN SPINNING CO LTD VIETNAM
Address	:	Bien Hoa Industrial Zone 2, 17A 9 Rd, Bien Hoa, Dong Nai
Country	:	Vietnam
Phone (S)	:	[+84] 61-3836671
Facsimile	:	[+84] 61-3836610
Email	:	tainan@kstcinetvn.com
Primary Business Activity	:	Manufacturer
Key Industry	:	Textiles & Raw Material

Key Facts

Registered Legal Address	:	Bien Hoa Industrial Zone 2, 17A 9 Rd, Bien Hoa, Dong Nai
Operational Address	:	Bien Hoa Industrial Zone 2, 17A 9 Rd, Bien Hoa, Dong Nai
Issuing Authority	:	Dept. of Planning & Investment - Bien Hoa
License Number	:	472043000478
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	:	23 May, 2008
Employees	:	4,400
Capital	:	US$ 145,000,000

Report Details

Country	:	Vietnam
Business Entity Name	:	TAINAN SPINNING CO LTD VIETNAM
Primary Business Activity	:	Manufacturer
Primary Industry	:	Textiles & Raw Material
Office Contact Details
Operating Address	:	Bien Hoa Industrial Zone 2, 17A 9 Rd, Bien Hoa, Dong Nai
Tel	:	[+84] 61-3836671
	:	[+84] 61-3836672
	:	[+84] 61-3836673
Fax	:	[+84] 61-3836610
Email	:	tainan@kstcinetvn.com
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	:	3600249837

DIRECTORS/MANAGEMENT

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Chi-chich Lin	Taiwanese	Chief Accountant	-
2	Mr. Tun-cheng Wang	Taiwanese	Managing Director	-

Management Details - 1

Personal Unique Identifier	:	MI03618488
Name	:	Mr. Chi-chich Lin

Management Details - 2

Personal Unique Identifier	:	MI03618466
Name	:	Mr. Tun-cheng Wang

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03618466
Name	:	Mr. Tun-cheng Wang
Nationality	:	Taiwanese

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing the TAINAN SPINNING CO LTD VIETNAM'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

:

145,000,000

SHAREHOLDERS

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

No.	Shareholders	Country	Shares
			Number	Amount (USD)	%
1	TAINAN SPINNING CO LTD	Taiwan	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
Local	Cash on delivery (COD) Credit - Unsecured 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 - Unsecured 30~60 days
Import	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Executed at time of transaction

GROUP STRUCTURE & AFFILIATED COMPANIES

DIRECT / INDIRECT CORPORATE PARENT DETAILS

Direct Parent	:	TAINAN SPINNING CO LTD
Global Identifier	:	31528794
Legal Form Category	:	Public Listed Company
Country	:	Taiwan
Operational Address	:	511 Yu Nung Rd East Dist Tainan City 701
Primary Business Activity	:	Manufacturer

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2012 Annual (*)	271,922,087	163,393,304	6,258,830

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	2012 Annual
Current Assets	2,043,000,000,000
Non Current Assets	1,359,610,000,000
Non Current Liabilities	14,000,000,000
Share Capital	2,199,194,000,000
Other long term assets
Total Assets	3,402,610,000,000
Total Liabilities	691,826,000,000
Current Liabilities	677,826,000,000
Long term liabilities
Shareholders Funds	2,710,784,000,000
Current assets & short term investments	2,043,000,000,000
Cash & cash equivalents	222,473,000,000
Cash	122,473,000,000
Cash equivalents	100,000,000,000
Accounts receivable	612,503,000,000
Accounts receivable trade	611,643,000,000
Others receivables	860,000,000
i. Inventories	1,188,577,000,000
ii. Inventories	1,188,577,000,000
i Other short term asset	19,447,000,000
Prepaid expenses	643,000,000
VAT deductible	10,573,000,000
Other tax receivables	3,705,000,000
ii. Other short term asset	4,526,000,000
Long term assets	1,359,610,000,000
Fixed assets	1,050,952,000,000
Tangible fixed assets	1,049,186,000,000
Cost	3,104,536,000,000
Accumulated depreciation	2,055,350,000,000
Construction in progress	1,766,000,000
Long term investments	208,077,000,000
Other long term investments	220,970,000,000
Provision for long term investments	(12,893,000,000)
Other long term assets	100,581,000,000
Long term prepayments	100,581,000,000
Total assets	3,402,610,000,000
Liabilities	691,826,000,000
Current liabilities	677,826,000,000
Accounts payables-trade	611,585,000,000
Advances from customers	10,574,000,000
Taxes and payable to state budget	390,000,000
Payable to employees	33,680,000,000
Accrued expenses payable	20,208,000,000
Other payables	1,389,000,000
Long term liabilities	14,000,000,000
Provision funds for unemployment	14,000,000,000
i. Owner's equity	2,710,784,000,000
ii. Owner's equity	2,710,784,000,000
Business capital	2,199,194,000,000
Revaluation differences	467,000,000
Retained earnings	511,123,000,000
Total resources	3,402,610,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2012 Annual
Turnover	5,662,685,000,000
Profit (Loss) Before Tax	158,949,000,000
Profit After Tax attributable to Shareholders	130,338,000,000
Gross sales	5,662,685,000,000
Less deductions	754,000,000
Net income	5,661,931,000,000
Cost of goods sold	5,289,135,000,000
Gross margin	372,796,000,000
Income from financial activities	6,114,000,000
Expenses from financial activities	20,348,000,000
Selling expenses	153,193,000,000
General & administration expenses	80,003,000,000
Net income from operating activities	125,366,000,000
Extraordinary income	33,583,000,000
Extraordinary gains	33,583,000,000
Net profit before tax	158,949,000,000
Income tax	28,611,000,000
Net profit after tax	130,338,000,000

Financial Ratios

Financial Highlights	2012 Annual
Profitability
Profit Margin (%)	2.30
Return on Equity (%)	4.81
Return on Assets (%)	3.83
Leverage
Total Debt Equity (Times)	0.26
Current Debt Equity (Times)	0.25
Long Term Debt to Equity	0.01
Total Asset To Total Equity	1.26
Asset Management
Total Assets Turnover (Times)	1.66
Fixed Assets Turnover (Times)	4.16
Liquidity
Current Ratio	3.01

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
Thread	Manufacturing, Exporting

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Thread and handwork yarns	2284	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Yarn of jute & other textile bast fibers	5307	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

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

Key product include :

· Thread

An integral part of the core business includes:

· Distribution

Supplementary Business

In addition to the core business, TAINAN SPINNING CO LTD VIETNAM 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
Domestic Sales	60%
International Sales (Export)	40%

Annual Purchases Analysis	Percentage
Local Purchases	15%
Imports	85%

BANK DETAILS

Bank Name	:	ANZ BANK (VIETNAM) LTD
Global Identifier	:	P1310499
Branch	:	District 1,Ho Chi Minh
Branch Address	:	39 Le Duan St District 1 Ho Chi Minh (Head Office)
SWIFT Code	:	This bank does not have a SWIFT Code
Bank Name	:	CHINA TRUST COMMERCIAL BANK
Global Identifier	:	P0839418
Branch	:	District 1,Ho Chi Minh
Branch Address	:	Room 116, 37 Ton Duc Thang District 1 Ho Chi Minh (Head Office)
SWIFT Code	:	CTCBVNVX
Bank Name	:	FIRST COMMERCIAL BANK (FCB)
Global Identifier	:	P0062134
Branch	:	District 1,Ho Chi Minh
Branch Address	:	Suite A 9Fl Office Service Int'l Center (OSIC Bldg) 8 Nguyen Hue St District 1 Ho Chi Minh (Head Office)
SWIFT Code	:	FCBKVNVX
Bank Name	:	HSBC BANK (VIETNAM) LTD
Global Identifier	:	32403760
Branch	:	District 1,Ho Chi Minh
Branch Address	:	HSBC BANK (VIETNAM) LTD - HANOI
SWIFT Code	:	HSBCVNVX
Bank Name	:	TAIPEI FUBON COMMERCIAL BANK CO LTD (HANOI BRANCH)
Global Identifier	:	P2405422
Branch	:	Hanoi
Branch Address	:	Hanoi (Head Office)
SWIFT Code	:	This bank does not have a SWIFT Code

LOCAL BRANCHES & MANAGEMENT

Branch	:	TAINAN SPINNING CO LTD VIETNAM - NHON TRACH DIST, DONG NAI
Branch Address	:	Nhon Trach 2 Industrial Zone, Nhon Trach Dist, Dong Nai

INTERNATIONAL TRADE - Activity & Markets

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

OFFICE & FACILITIES

Name	:	TAINAN SPINNING CO LTD VIETNAM - BIEN HOA, DONG NAI
Land Size	:	30 Hectares
Address	:	Bien Hoa Industrial Zone 2, 17A 9 Rd, Bien Hoa, Dong Nai
Country	:	Vietnam
Status	:	Operational

STRATEGIC PARTNER/S & ALLIANCES

Group / Alliance name	:	TAINAN SPINNING GROUP
Recognition Status	:	The TAINAN SPINNING GROUP is not a formally registered business entity name in Vietnam. It is understood to be used by both the Subject Business Entity (SBE), as well as other overseas firms, to collectively identify the network of independently owned companies participating in the same industry sector and used primarily for collective marketing purposes.
Holding Company	:	PRESIDENT ENERGY DEVELPOMENT LTD
Country	:	Cayman Islands (British)
Flagship Company	:	TAINAN SPINNING CO LTD
Country	:	Taiwan

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
2 Mar, 1996	1491/GP

NOTES & COMMENTS

Na

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 62.50
UK Pound	1	Rs. 101.91
Euro	1	Rs. 84.49

INFORMATION DETAILS

Report Prepared by :

DPT

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.