MIRA INFORM REPORT

Report Date :

16.05.2014

IDENTIFICATION DETAILS

Name :	DAMSAN YARNTEX JSC
Registered Office :	Nguyen Duc Canh Industrial Park Lot 4A Bui Vien Rd, Thai Binh
Country :	Vietnam
Financials (as on) :	December 2012
Date of Incorporation :	11.07.2013
Legal Form :	Joint Stock Company
Line of Business :	Manufacturer & Exporter of Cotton Yarn, Polyester-Viscose Blended Yarn, Towels, Yarns & Viscose Filament Yarn
No of Employees :	500

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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Vietnam	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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	:	DAMSAN YARNTEX JSC
Address	:	Nguyen Duc Canh Industrial Park Lot A4 Bui Vien Rd, Thai Binh, Thai Binh
Country	:	Vietnam
Phone (S)	:	[+84] 36-3642311
Facsimile	:	[+84] 36-3648569
Email	:	damsan@gmail.com
Website	:	http://www.ddamsanjsc.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Textiles & Raw Material

Registered Legal Address	:	Nguyen Duc Canh Industrial Park Lot 4A Bui Vien Rd, Thai Binh, Thai Binh
Operational Address	:	Nguyen Duc Canh Industrial Park Lot A4 Bui Vien Rd, Thai Binh, Thai Binh
Trading Name	:	DAMSAN CO
Issuing Authority	:	Dept. of Planning & Investment - Thai Binh
License Number	:	1000389853
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	:	11 Jul, 2013
Employees	:	500
Capital	:	US$ 4,832,610

Country	:	Vietnam
Business Entity Name	:	DAMSAN YARNTEX JSC
Primary Business Activity	:	Manufacturer
Primary Industry	:	Textiles & Raw Material
Office Contact Details
Operating Address	:	Nguyen Duc Canh Industrial Park Lot A4 Bui Vien Rd, Thai Binh, Thai Binh
Tel	:	[+84] 36-3642311
	:	[+84] 36-3568789
	:	[+84] 36-3643998
Fax	:	[+84] 36-3648569
	:	[+84] 36-3642312
Email	:	damsan@gmail.com ddamsanjsc@vnn.vn
Website Details
Website	:	http://www.ddamsanjsc.vn
Status	:	Normal - operational
Country of Registration	:	Vietnam
Ownership Type	:	Registered ownership by Subject Business Entity
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	:	1000389853

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Chairman
Name	:	Mr. Vu Huy Dong
Nationality	:	Vietnamese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Vu Huu Dao	Vietnamese	Deputy Managing Director	-
2	Mr. Vu Huy Dong	Vietnamese	Managing Director	-
3	Ms. Luong Thi Huyen	Vietnamese	Chief Accountant	-

Management Details - 1

Personal Unique Identifier	:	MI03695642
Name	:	Mr. Vu Huu Dao
Date of Birth	:	1952

Management Details - 2

Personal Unique Identifier	:	MI03695644
Name	:	Mr. Vu Huy Dong
Date of Birth	:	1955

Management Details - 3

Personal Unique Identifier	:	MI03695647
Name	:	Ms. Luong Thi Huyen
Date of Birth	:	1965

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI02405099
Name	:	Mr. Dong Huy Vu
Email	:	damsan@gmail.com
Tel	:	84-363-643998
Mobile No.	:	84-84-987696688

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing the DAMSAN YARNTEX 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

:

₫ 100,700,000,000

Date	Authorized Capital - History
12 Jun, 2006	33,668,000,000
2013	100,700,000,000

SHAREHOLDERS

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

Currency

:

VND - Vietnam Dong

No.	Shareholders	Country	Shares
			Number	Amount (VND)	%
1	Undisclosed Shareholders	n/a	n/a	n/a	43.80
2	Mr. Nguyen Le Hung	Vietnam	n/a	n/a	35.54
3	Ms. Le Mai Khanh	Vietnam	n/a	n/a	8.06
4	CONG TY CP XNK THU CONG MY NGHE	Vietnam	n/a	n/a	5.95
5	Ms. Duong Thi Ngan	Vietnam	n/a	n/a	4.96
6	CONG TY CP THUONG MAI DAU TU THAI BINH	Vietnam	n/a	n/a	1.24
7	Mr. Nguyen Tuan An	Vietnam	n/a	n/a	0.25
8	Mr. Vu Huu Dao	Vietnam	n/a	n/a	0.20
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	20%
International Sales (Export)	80%

Annual Purchases Analysis	Percentage
Local Purchases	20%
Imports	80%

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
Import	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Executed at time of transaction

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2012 Annual (*)	55,598,075	27,918,007	1,662,836

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	336,097,000,000
Non Current Assets	245,286,000,000
Non Current Liabilities	125,816,000,000
Other long term assets
Total Assets	581,383,000,000
Total Liabilities	456,281,000,000
Current Liabilities	330,465,000,000
Long term liabilities
Shareholders Funds	125,102,000,000
Current assets & short term investments	336,097,000,000
Cash & cash equivalents	8,050,000,000
Cash	8,050,000,000
Short term investments	20,762,000,000
Short term securities investments	20,762,000,000
Accounts receivable	145,408,000,000
Accounts receivable trade	107,765,000,000
Trade prepayment	32,987,000,000
Inter company receivables	255,000,000
Others receivables	4,433,000,000
Provision for bad debts	(32,000,000)
i. Inventories	146,134,000,000
ii. Inventories	46,134,000,000
i.Other short term asset	15,743,000,000
Prepaid expenses	278,000,000
VAT deductible	10,417,000,000
Other tax receivables	1,101,000,000
ii. Other short term asset	3,947,000,000
Long term assets	245,286,000,000
Fixed assets	228,599,000,000
Tangible fixed assets	217,106,000,000
i. Cost	314,339,000,000
i. Accumulated depreciation	97,233,000,000
Intangible fixed assets	2,037,000,000
ii. Cost	2,285,000,000
ii. Accumulated depreciation	248,000,000
Construction in progress	9,456,000,000
Long term investments	12,600,000,000
Invest to subsidiary company	12,600,000,000
Other long term assets	4,087,000,000
Long term prepayments	4,087,000,000
Total assets	581,383,000,000
Liabilities	456,281,000,000
Current liabilities	330,465,000,000
Short term borrowings	260,349,000,000
Accounts payables-trade	39,799,000,000
Advances from customers	7,391,000,000
Taxes and payable to state budget	10,822,000,000
Payable to employees	2,483,000,000
Accrued expenses payable	962,000,000
Inter company payable	58,000,000
Other payables	6,957,000,000
Bonus and welfare funds	644,000,000
Long term liabilities	125,816,000,000
Long term borrowings	125,788,000,000
Provision funds for unemployment	28,000,000
i. Owners equity	125,102,000,000
ii. Owners equity	125,102,000,000
Business capital	80,700,000,000
Share capitals surplus	323,000,000
Other owners equity	1,499,000,000
Business development funds	1,991,000,000
Financial reserved funds	600,000,000
Retained earnings	39,989,000,000
Total resources	581,383,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2012 Annual
Turnover	1,157,811,000,000
Profit (Loss) Before Tax	35,792,000,000
Profit After Tax attributable to Shareholders	34,628,000,000
Gross sales	1,157,811,000,000
Less deductions	4,385,000,000
Net income	1,153,426,000,000
Cost of goods sold	1,055,473,000,000
Gross margin	97,953,000,000
Income from financial activities	1,774,000,000
Expenses from financial activities	37,199,000,000
Selling expenses	16,262,000,000
General & administration expenses	10,405,000,000
Net income from operating activities	35,861,000,000
Extraordinary income	1,127,000,000
Extraordinary expenses	1,196,000,000
Extraordinary gains	(69,000,000)
Net profit before tax	35,792,000,000
Income tax	1,164,000,000
Income tax delay	0
Net profit after tax	34,628,000,000

Financial Ratios

Financial Highlights	2012 Annual
Profitability
Profit Margin (%)	2.99
Return on Equity (%)	27.68
Return on Assets (%)	5.96
Leverage
Total Debt Equity (Times)	3.65
Current Debt Equity (Times)	2.64
Long Term Debt to Equity	1.01
Total Asset To Total Equity	4.65
Asset Management
Total Assets Turnover (Times)	1.99
Fixed Assets Turnover (Times)	4.72
Liquidity
Current Ratio	1.02

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

Today's Exchange rate

:

1.00 VND Vietnam Dong

=

0.000048 USD United States Dollars

ADDITIONAL INFORMATION

Primary Products

Products / Materials / Services Description	Activity
Cotton yarns	Manufacturing, Exporting
Polyester-viscose blended yarn	Manufacturing, Exporting
Towels	Manufacturing, Exporting
Viscose filament yarn	Manufacturing, Exporting
Yarns	Manufacturing, Exporting

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Thread and handwork yarns	2284	Manufacturing, Exporting
Yarn Mills	2282	Manufacturing, Exporting
Yarn, spun, of cotton, man-made fibers, and silk	2281	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Artificial filament yarn (no sew thread), no retail	5403	Manufacturing, Exporting
Cotton waste (including yarn waste etc.)	5202	Manufacturing, Exporting
Cotton, inc. yarns & woven fabrics thereof	5200	Manufacturing, Exporting
Man-made filaments, inc. yarns & woven etc.	5400	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of DAMSAN YARNTEX JSC is Manufacturing - Finished products.

Key products include :

Polyester-viscose blended yarn

Yarns

Viscose filament yarn

An integral part of the core business includes:

Distribution

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
Europe	Medium	Importing
China	Medium	Exporting
Germany	Medium	Importing
India	Medium	Importing
Italy	Medium	Importing
Japan	Medium	Importing, Exporting
Korea, South (Republic of Korea)	Medium	Exporting
Sweden	Medium	Importing
Taiwan	Medium	Exporting

OFFICE & FACILITIES

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

Name	:	DAMSAN YARNTEX JSC - THAI BINH, THAI BINH
Primary Use	:	Office & Administration facilities
Type of Location	:	Industrial Area
Address	:	Nguyen Duc Canh Industrial Park Lot A4 Bui Vien Rd, Thai Binh, Thai Binh
Country	:	Vietnam
Status	:	Operational

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
12 Jun, 2006	0803000284

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.47
UK Pound	1	Rs.99.70
Euro	1	Rs.81.55

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	MNL

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.