MIRA INFORM REPORT

Report Date :

08.01.2014

IDENTIFICATION DETAILS

Name :	SON NAM TEXTILE AND GARMENT JSC
Registered Office :	63 Nguyen Van Troi St Tran Quang Khai Ward, Nam Dinh, Nam Dinh
Country :	Vietnam
Financials (as on) :	31.12.2012
Date of Incorporation :	19.05.2010
Legal Form :	Joint Stock Company
Line of Business :	Manufacturer of Textiles & Raw Material
No. of Employees :	1,200

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 – 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

Company Details

Organization Name	:	SON NAM TEXTILE AND GARMENT JSC
Address	:	63 Nguyen Van Troi St Tran Quang Khai Ward, Nam Dinh, Nam Dinh
Country	:	Vietnam
Phone (S)	:	[+84] 350-3847681
Facsimile	:	[+84] 350-3847588
Email	:	sonatex@hn.vnn.vn
Website	:	http://www.sonatex.com.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Textiles & Raw Material

Key Facts

Registered Legal Address	:	63 Nguyen Van Troi St Tran Quang Khai Ward, Nam Dinh, Nam Dinh
Operational Address	:	63 Nguyen Van Troi St Tran Quang Khai Ward, Nam Dinh, Nam Dinh
Trading Name	:	SONATEX
Issuing Authority	:	Dept. of Planning & Investment - Nam Dinh
License Number	:	0600014269
License Status	:	License exists - Normal.
Legal Form - Category	:	Joint Stock Company
Legal Form	:	Joint Stock Company
Legal Form - Abbreviation	:	JSC
Operational Status of Business	:	Normal
Date of Registration	:	19 May, 2010
Employees	:	1,200
Capital	:	US$ 2,410,874

Report Details

Country	:	Vietnam
Business Entity Name	:	SON NAM TEXTILE AND GARMENT JSC
Primary Business Activity	:	Manufacturer
Primary Industry	:	Textiles & Raw Material
Office Contact Details
Operating Address	:	63 Nguyen Van Troi St Tran Quang Khai Ward, Nam Dinh, Nam Dinh
Tel	:	[+84] 350-3847681
	:	[+84] 350-3849763
	:	[+84] 350-3849479
Fax	:	[+84] 350-3847588
Email	:	sonatex@hn.vnn.vn
Website Details
Website	:	http://www.sonatex.com.vn
Status	:	Normal - operational
Country of Registration	:	Vietnam
Ownership Type	:	Registered ownership by Subject Business Entity

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Chairman
Name	:	Mr. Nguyen The Minh
Nationality	:	Vietnamese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Ms. Nguyen Thi Ngoc Lan	Vietnamese	Chief Accountant	-
2	Mr. Nguyen The Minh	Vietnamese	Managing Director	-
3	Mr. Tran Nhu Minh	Vietnamese	Deputy Managing Director	-
4	Ms. Nguyen Thi Minh Thuan	Vietnamese	Deputy Managing Director	-
5	Ms. Le Thi Minh Tu	Vietnamese	Deputy Managing Director	-

Management Details - 1

Personal Unique Identifier	:	MI03520016
Name	:	Ms. Nguyen Thi Ngoc Lan
Date of Birth	:	1959

Management Details - 2

Personal Unique Identifier	:	MI03520008
Name	:	Mr. Nguyen The Minh
Date of Birth	:	1957

Management Details - 3

Personal Unique Identifier	:	MI03520010
Name	:	Mr. Tran Nhu Minh
Date of Birth	:	1955

Management Details - 4

Personal Unique Identifier	:	MI03520011
Name	:	Ms. Nguyen Thi Minh Thuan
Date of Birth	:	1959

Management Details - 5

Personal Unique Identifier	:	MI03520015
Name	:	Ms. Le Thi Minh Tu
Date of Birth	:	1960

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03520008
Name	:	Mr. Nguyen The Minh
Date of Birth	:	1957
Nationality	:	Vietnamese

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing the SON NAM TEXTILE AND GARMENT JSC'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

:

50,840,720,000

Date	Authorized Capital - History
17 Sep, 1996	14,039,320,000
2010	50,840,720,000

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

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

Na

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2011 Annual	35,502,208	18,165,675	976,572
2012 Annual (*)	37,739,536	18,605,058	1,296,348

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	182,919,000,000	196,760,000,000
Non Current Assets	195,472,000,000	190,684,000,000
Non Current Liabilities	140,036,000,000	131,738,000,000
Share Capital	50,841,000,000	50,841,000,000
Other long term assets
Total Assets	378,391,000,000	387,444,000,000
Total Liabilities	252,301,000,000	252,041,000,000
Current Liabilities	112,265,000,000	120,303,000,000
Long term liabilities
Shareholders Funds	126,090,000,000	135,403,000,000
Current assets & short term investments	182,919,000,000	196,760,000,000
Cash & cash equivalents	3,464,000,000	15,400,000,000
Cash	3,464,000,000	15,400,000,000
Short term investments	31,270,000,000	96,429,000,000
Short term securities investments	31,270,000,000	96,429,000,000
Accounts receivable	75,061,000,000	37,802,000,000
Accounts receivable trade	20,284,000,000	20,871,000,000
Trade prepayment	49,746,000,000	10,061,000,000
Others receivables	5,031,000,000	7,789,000,000
Provision for bad debts	-	(919,000,000)
Inventories	65,125,000,000	46,787,000,000
I. Other short term asset	7,999,000,000	342,000,000
VAT deductible	7,651,000,000	-
II. Other short term asset	348,000,000	342,000,000
Long term assets	195,472,000,000	190,684,000,000
Fixed assets	194,462,000,000	171,529,000,000
Tangible fixed assets	190,235,000,000	170,256,000,000
Cost	296,733,000,000	311,129,000,000
Accumulated depreciation	106,498,000,000	140,873,000,000
Construction in progress	4,227,000,000	1,273,000,000
Long term investments	1,010,000,000	19,155,000,000
Invest to subsidiary company	-	18,145,000,000
Other long term investments	1,010,000,000	1,010,000,000
Total assets	378,391,000,000	387,444,000,000
Liabilities	252,301,000,000	252,041,000,000
Current liabilities	112,265,000,000	120,303,000,000
Short term borrowings	87,776,000,000	76,503,000,000
Accounts payables-trade	12,980,000,000	8,206,000,000
Advances from customers	427,000,000	3,525,000,000
Taxes and payable to state budget	246,000,000	5,482,000,000
Payable to employees	4,786,000,000	5,840,000,000
Other payables	6,050,000,000	9,169,000,000
I. Bonus and welfare funds	-	11,578,000,000
Long term liabilities	140,036,000,000	131,738,000,000
Long term borrowings	138,597,000,000	90,039,000,000
Provision funds for unemployment	1,439,000,000	-
Provision for long term payable	-	41,699,000,000
I Owner's equity	126,090,000,000	135,403,000,000
II. Owner's equity	116,090,000,000	135,403,000,000
Business capital	50,841,000,000	50,841,000,000
Share capital's surplus	30,000,000	30,000,000
Other owner's equity	4,191,000,000	5,208,000,000
Shares	-	(542,000,000)
Business development funds	35,185,000,000	46,352,000,000
Financial reserved funds	5,501,000,000	6,518,000,000
Retained earnings	20,342,000,000	26,996,000,000
Budget sources	10,000,000,000	-
II. Bonus and welfare funds	10,000,000,000	-
Total resources	378,391,000,000	387,444,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual
Turnover	739,511,000,000	785,913,000,000
Profit (Loss) Before Tax	21,866,000,000	31,029,000,000
Profit After Tax attributable to Shareholders	20,342,000,000	26,996,000,000
Gross sales	739,511,000,000	785,913,000,000
Less deductions	-	308,000,000
Net income	739,511,000,000	785,605,000,000
Cost of goods sold	688,755,000,000	676,372,000,000
Gross margin	50,756,000,000	109,233,000,000
Income from financial activities	11,856,000,000	9,256,000,000
Expenses from financial activities	17,913,000,000	15,375,000,000
In which: Interest expenses	9,042,000,000	13,848,000,000
Selling expenses	16,527,000,000	22,730,000,000
General & administration expenses	7,233,000,000	51,843,000,000
Net income from operating activities	20,939,000,000	28,541,000,000
Extraordinary income	1,082,000,000	2,695,000,000
Extraordinary expenses	155,000,000	207,000,000
Extraordinary gains	926,000,000	2,488,000,000
Net profit before tax	21,866,000,000	31,029,000,000
Income tax	1,524,000,000	4,033,000,000
Net profit after tax	20,342,000,000	26,996,000,000

Financial Ratios

Financial Highlights	2011 Annual	2012 Annual
Growth %
Year-on-Year Growth	-	6.27
Profitability
Profit Margin (%)	2.75	3.43
Return on Equity (%)	16.13	19.94
Return on Assets (%)	5.38	6.97
Leverage
Total Debt Equity (Times)	2.00	1.86
Current Debt Equity (Times)	0.89	0.89
Long Term Debt to Equity	1.11	0.97
Total Asset To Total Equity	3.00	2.86
Asset Management
Total Assets Turnover (Times)	1.95	2.03
Fixed Assets Turnover (Times)	3.78	4.12
Liquidity
Current Ratio	1.63	1.64

Based on the corporate laws of Vietnam, legal entities which are Joint Stock Company 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
Garment products	Manufacturing, Exporting
Textiles	Manufacturing, Exporting
Towels	Manufacturing, Exporting
Yarns	Manufacturing, Exporting

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

Year	Imports	Exports	Total
2011	n/a	17,751,104	17,751,104
2012	n/a	18,869,768	18,869,768

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
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
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
Yarn (no sew thread), art staple fib, not retail	5510	Manufacturing, Exporting
Yarn (no sew thread), manmade staple fiber, retail	5511	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of SON NAM TEXTILE AND GARMENT JSC is Manufacturing - Finished products.

Key products include :

· Garment products

· Textiles

· Towels

· Yarns

An integral part of the core business includes:

· Distribution

Supplementary Business

In addition to the core business, SON NAM TEXTILE AND GARMENT JSC 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	50%
International Sales (Export)	50%

Annual Purchases Analysis	Percentage
Local Purchases	60%
Imports	40%

BANK DETAILS

Bank Name	:	VIETNAM BANK FOR AGRICULTURE & RURAL DEVELOPMENT
Global Identifier	:	32408794
Branch	:	Tu Liem,Hanoi
Branch Address	:	VIETNAM BANK FOR AGRICULTURE
SWIFT Code	:	VBAAVNVX
Bank Name	:	VIETNAM DEVELOPMENT BANK , THE
Global Identifier	:	P2215949
Branch Address	:	VIETNAM DEVELOPMENT BANK , THE - NAM DINH
SWIFT Code	:	This bank does not have a SWIFT Code
Bank Name	:	VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY & TRADE
Global Identifier	:	32404058
Branch	:	Hoan Kiem Dist,Hanoi
Branch Address	:	VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY
SWIFT Code	:	ICBVVNVX

INTERNATIONAL TRADE - Activity & Markets

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

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
17 Sep, 1996	103521
17 Dec, 2004	0703000413

REAL ESTATE OWNERSHIP

The following property / ies are owned by SON NAM TEXTILE AND GARMENT JSC :

Property Name	:	SON NAM TEXTILE AND GARMENT JSC - NAM DINH, NAM DINH
Type of Property	:	Office
Address	:	63 Nguyen Van Troi St Tran Quang Khai Ward, Nam Dinh, Nam Dinh
Office Size	:	3 Hectares

NOTES & COMMENTS

Na

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.38
UK Pound	1	Rs.102.25
Euro	1	Rs.84.97

INFORMATION DETAILS

Report Prepared by :

NNA

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.