MIRA INFORM REPORT

Report Date :

07.01.2014

IDENTIFICATION DETAILS

Name :	VINH PHUC TEXTILE CO LTD
Registered Office :	Lot 30 Quang Minh Industrial Zone, Me Linh, Hanoi
Country :	Vietnam
Financials (as on) :	2012
Date of Incorporation :	18.10.2010
Legal Form :	Private Company with Limited Liability
Line of Business :	Manufacturer of Textiles & Raw Material
No. of Employees :	350

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 :	Slow but correct
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, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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	:	VINH PHUC TEXTILE CO LTD
Address	:	Lot 30 Quang Minh Industrial Zone, Me Linh, Hanoi
Country	:	Vietnam
Phone (S)	:	[+84] 4-38182470
Facsimile	:	[+84] 4-38134691
Primary Business Activity	:	Manufacturer
Key Industry	:	Textiles & Raw Material

Registered Legal Address	:	Lot 30 Quang Minh Industrial Zone, Me Linh, Hanoi
Operational Address	:	Lot 30 Quang Minh Industrial Zone, Me Linh, Hanoi
Trading Name	:	VIPTEX
Issuing Authority	:	Dept. of Planning & Investment - Hanoi
License Number	:	2500224058
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	:	18 Oct, 2010
Employees	:	350
Capital	:	US$ 1,507,960

DIRECTORS/MANAGEMENT

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Vu Quy Phuc	Vietnamese	Deputy Director	-
2	Ms. Ha Phuong Thao	Vietnamese	Chief Accountant	-

Management Details - 1

Personal Unique Identifier	:	MI03605175
Name	:	Mr. Vu Quy Phuc
Date of Birth	:	1966

Management Details - 2

Personal Unique Identifier	:	MI03605177
Name	:	Ms. Ha Phuong Thao
Date of Birth	:	1981

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03605171
Name	:	Mr. Nguyen Van Tien
Date of Birth	:	1963
Nationality	:	Vietnamese

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing the VINH PHUC TEXTILE 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: VND - Vietnam Dong)

Authorized Capital

:

31,800,000,000

SHAREHOLDERS

Total number of shareholders	:	6
Total number of shares	:	n/a

No.	Shareholders	Country	Shares
			Number	Amount (VND)	%
1	Mr. Nguyen Quy Phuc	Vietnam	n/a	n/a	20.09
2	Mr. Nguyen Van Tien	Vietnam	n/a	n/a	20.00
3	Mr. Nguyen Xuan Dong	Vietnam	n/a	n/a	20.00
4	Mr. Nguyen Tien Thong	Vietnam	n/a	n/a	14.29
5	Mr. Nguyen Manh Tien	Vietnam	n/a	n/a	14.20
6	Mr. Nguyen Minh Tuan	Vietnam	n/a	n/a	11.42
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

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	70%
International Sales (Export)	30%

Annual Purchases Analysis	Percentage
Local Purchases	40%
Imports	60%

PAYMENT TERMS

Selling

Type	Terms
Local	Cash on delivery (COD) Credit - Unsecured 30~60 days
Export	Letter of Credit (At-sight) Documents against Acceptance (D/A)

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

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2011 Annual	15,497,600	7,444,935	-217,811
2012 Annual (*)	13,081,750	5,778,102	121,923

Sales Trend – Analysis

2003	2004	2005	2006	2007	2008	2009	2010	2011	2012
-	-	-	-	-	-	-	-	-

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	2012 Annual
Current Assets	86,254,000,000	57,847,000,000
Non Current Assets	68,824,000,000	62,480,000,000
Non Current Liabilities	46,347,000,000	30,776,000,000
Share Capital	31,800,000,000	31,800,000,000
Other long term assets
Total Assets	155,078,000,000	120,327,000,000
Total Liabilities	132,054,000,000	102,615,000,000
Current Liabilities	85,707,000,000	71,839,000,000
Long term liabilities
Shareholders Funds	23,024,000,000	17,712,000,000
Current assets & short term investments	86,254,000,000	57,847,000,000
Cash & cash equivalents	9,246,000,000	4,470,000,000
Cash	9,246,000,000	4,470,000,000
Accounts receivable	40,913,000,000	35,794,000,000
Accounts receivable trade	27,860,000,000	21,389,000,000
Trade prepayment	2,600,000,000	2,684,000,000
Others receivables	10,696,000,000	12,071,000,000
Provision for bad debts	(243,000,000)	(350,000,000)
Inventories	25,385,000,000	17,062,000,000
Other short term asset (I)	10,710,000,000	521,000,000
Prepaid expenses	521,000,000	414,000,000
VAT deductible	666,000,000	35,000,000
Other short term asset (II)	9,523,000,000	72,000,000
Long term assets	68,824,000,000	62,480,000,000
Fixed assets	64,844,000,000	58,150,000,000
Tangible fixed assets	59,982,000,000	57,906,000,000
Cost (I)	114,278,000,000	118,113,000,000
Accumulated depreciation (I)	54,296,000,000	60,207,000,000
Intangible fixed assets	273,000,000	193,000,000
Cost (II)	763,000,000	763,000,000
Accumulated depreciation (II)	490,000,000	570,000,000
Construction in progress	4,589,000,000	51,000,000
Other long term assets	3,980,000,000	4,330,000,000
Long term prepayments	3,980,000,000	4,330,000,000
Total assets	155,078,000,000	120,327,000,000
Liabilities	132,054,000,000	102,615,000,000
Current liabilities	85,707,000,000	71,839,000,000
Short term borrowings	51,054,000,000	37,493,000,000
Accounts payables-trade	16,261,000,000	27,164,000,000
Advances from customers	10,642,000,000	614,000,000
Taxes and payable to state budget	3,894,000,000	2,000,000
Payable to employees	2,931,000,000	4,047,000,000
Accrued expenses payable	-	916,000,000
Other payables	925,000,000	1,603,000,000
Long term liabilities	46,347,000,000	30,776,000,000
Long term borrowings	46,287,000,000	30,776,000,000
Provision funds for unemployment	60,000,000	-
Owner's equity	23,024,000,000	17,712,000,000
Business capital	31,800,000,000	31,800,000,000
Foreign exchange differences	(2,531,000,000)	-
Retained earnings	(6,245,000,000)	(14,088,000,000)
Total resources	155,078,000,000	120,327,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual
Turnover	322,815,000,000	272,423,000,000
Profit (Loss) Before Tax	(4,537,000,000)	2,539,000,000
Profit After Tax attributable to Shareholders	(4,537,000,000)	2,539,000,000
Gross sales	322,815,000,000	272,423,000,000
Less deductions	660,000,000	556,000,000
Net income	322,155,000,000	271,867,000,000
Cost of goods sold	308,754,000,000	251,583,000,000
Gross margin	13,401,000,000	20,284,000,000
Income from financial activities	1,205,000,000	858,000,000
Expenses from financial activities	10,368,000,000	7,349,000,000
In which: Interest expenses	10,368,000,000	6,208,000,000
Selling expenses	5,051,000,000	5,570,000,000
General & administration expenses	3,639,000,000	4,272,000,000
Net income from operating activities	(4,452,000,000)	3,951,000,000
Extraordinary income	4,000,000	1,462,000,000
Extraordinary expenses	89,000,000	2,874,000,000
Extraordinary gains	(85,000,000)	(1,412,000,000)
Net profit before tax	(4,537,000,000)	2,539,000,000
Net profit after tax	(4,537,000,000)	2,539,000,000

Financial Ratios

Financial Highlights	2011 Annual	2012 Annual
Growth %
Year-on-Year Growth	-	(15.61)
Profitability
Profit Margin (%)	(1.41)	0.93
Return on Equity (%)	(19.71)	14.33
Return on Assets (%)	(2.93)	2.11
Leverage
Total Debt Equity (Times)	5.74	5.79
Current Debt Equity (Times)	3.72	4.06
Long Term Debt to Equity	2.01	1.74
Total Asset To Total Equity	6.74	6.79
Asset Management
Total Assets Turnover (Times)	2.08	2.26
Fixed Assets Turnover (Times)	4.69	4.36
Liquidity
Current Ratio	1.01	0.81

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

N/a

ADDITIONAL INFORMATION

Country	:	Vietnam
Business Entity Name	:	VINH PHUC TEXTILE CO LTD
Primary Business Activity	:	Manufacturer
Primary Industry	:	Textiles & Raw Material
Office Contact Details
Operating Address	:	Lot 30 Quang Minh Industrial Zone, Me Linh, Hanoi
Tel	:	[+84] 4-38182470
	:	[+84] 4-35860209
	:	[+84] 4-35860210
Fax	:	[+84] 4-38134691

Primary Products

Products / Materials / Services Description	Activity
Garment products	Manufacturing, Exporting
Textile products	Manufacturing, Exporting
Towels	Manufacturing, Exporting
Yarns	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
Yarn, spun, of cotton, man-made fibers, and silk	2281	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Articles of apparel & clothing accessories-knitted or crocheted	6100	Manufacturing, Exporting
Cotton, inc. yarns & woven fabrics thereof	5200	Manufacturing, Exporting
Garments nesoi, knitted or crocheted	6114	Manufacturing, Exporting
Textile products etc. for specific tech uses	5911	Manufacturing, Exporting
Toilet paper, paper tissues, towels, napkins etc	4818	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of VINH PHUC TEXTILE CO LTD is Manufacturing - Finished products.

Key products include :

Textile products

Garment products

Towels

Yarns

An integral part of the core business includes:

Distribution

Supplementary Business

In addition to the core business, VINH PHUC TEXTILE CO LTD also is engaged in the following areas of business:

Exporting

Exporting - Finished products

Importing

Importing - Raw materials

BANK DETAILS

Bank Name	:	VIETNAM DEVELOPMENT BANK , THE
Global Identifier	:	P2215949
SWIFT Code	:	This bank does not have a SWIFT Code
Bank Name	:	VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK
Global Identifier	:	32408823
Branch	:	District 1,Ho Chi Minh
Branch Address	:	VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK CO - LONG BIEN DIST, HANOI
SWIFT Code	:	EBVIVNVX
Bank Name	:	VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY & TRADE
Global Identifier	:	32404058
Branch	:	Hoan Kiem Dist,Hanoi
Branch Address	:	108 Tran Hung Dao St Hoan Kiem Dist Hanoi (Head Office)
SWIFT Code	:	ICBVVNVX

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
China	Medium	Exporting
India	Medium	Importing
Indonesia	Medium	Importing
Malaysia	Medium	Importing
Thailand	Medium	Importing

OFFICE & FACILITIES

Name	:	VINH PHUC TEXTILE CO LTD - ME LINH, HANOI
Building Size	:	7,000 Square meters
Address	:	Lot 30 Quang Minh Industrial Zone, Me Linh, Hanoi
Country	:	Vietnam
Ownership of Property	:	Rented / Leased
Status	:	Operational

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
4 Feb, 2004	1902000479

NOTES & COMMENTS

N/a

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.33
UK Pound	1	Rs.101.99
Euro	1	Rs.84.62

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%)

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