MIRA INFORM REPORT

Report Date :

17.05.2014

IDENTIFICATION DETAILS

Name :	DONG QUANG YARN INC
Registered Office :	Hai Son Industrial Group Binh Tien 2 Hamlet Duc Hoa Ha Commune, Duc Hoa, Long An
Country :	Vietnam
Financials (as on) :	31.12.2013
Date of Incorporation :	18.03.2010
Legal Form :	Joint Stock Company
Line of Business :	Manufacturer of Textiles & Raw Material
No. of Employees :	1,400

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 – 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
Moderately Low Risk	B1
Moderate Risk	B2
Moderately 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	:	DONG QUANG YARN INC
Address	:	Hai Son Industrial Group Binh Tien 2 Hamlet Duc Hoa Ha Commune, Duc Hoa, Long An
Country	:	Vietnam
Phone (S)	:	[+84] 72-3778663
Facsimile	:	[+84] 72-3778665
Primary Business Activity	:	Manufacturer
Key Industry	:	Textiles & Raw Material

Registered Legal Address	:	Hai Son Industrial Group Binh Tien 2 Hamlet Duc Hoa Ha Commune, Duc Hoa, Long An
Operational Address	:	Hai Son Industrial Group Binh Tien 2 Hamlet Duc Hoa Ha Commune, Duc Hoa, Long An
Issuing Authority	:	Dept. of Planning & Investment - Long An
License Number	:	1101254901
License Status	:	License exists - Normal.
Legal Form - Category	:	Joint Stock Company
Legal Form	:	Incorporated
Legal Form - Abbreviation	:	INC
Operational Status of Business	:	Normal
Date of Registration	:	18 Mar, 2010
Employees	:	1,400
Capital	:	US$ 18,620,187

Country	:	Vietnam
Business Entity Name	:	DONG QUANG YARN INC
Primary Business Activity	:	Manufacturer
Primary Industry	:	Textiles & Raw Material
Office Contact Details
Operating Address	:	Hai Son Industrial Group Binh Tien 2 Hamlet Duc Hoa Ha Commune, Duc Hoa, Long An
Tel	:	[+84] 72-3778663
	:	[+84] 72-3778666
	:	[+84] 72-3778667
Fax	:	[+84] 72-3778665
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	:	1101254901

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Managing Director
Name	:	Mr. Nguyen Viet Dung
Nationality	:	Vietnamese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Ms. Nguyen Ngo Tan Phat	Vietnamese	Chief Accountant	-

Management Details - 1

Personal Unique Identifier	:	MI03695638
Name	:	Ms. Nguyen Ngo Tan Phat

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03695609
Name	:	Mr. Nguyen Viet Dung
Date of Birth	:	1971

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing the DONG QUANG YARN INC'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

:

₫ 388,000,000,000

Date	Authorized Capital - History
18 Mar, 2010	198,000,000,000
15 Oct, 2013	388,000,000,000

SHAREHOLDERS

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

No.	Shareholders	Country	Shares
			Number	Amount	%
1	Mr. Tang Dien Quang	Vietnam	n/a	n/a	50.00
2	Mr. Nguyen Viet Dung	Vietnam	n/a	n/a	22.00
3	Mr. Nguyen Tai Chau	Vietnam	n/a	n/a	18.00
4	Mr. Nguyen Thi Thu Ha	Vietnam	n/a	n/a	5.00
5	Mr. Nguyen Van Thang	Vietnam	n/a	n/a	5.00
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

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	80%
International Sales (Export)	20%

Annual Purchases Analysis	Percentage
Local Purchases	70%
Imports	30%

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

GROUP STRUCTURE & AFFILIATED COMPANIES

N/a

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2013 Annual	7,791,317	50,301,379	256,495

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2013 Annual
Current Assets	335,699,000,000
Non Current Assets	725,061,000,000
Non Current Liabilities	490,199,000,000
Share Capital	198,000,000,000
Other long term assets
Total Assets	1,060,760,000,000
Total Liabilities	755,739,000,000
Current Liabilities	265,540,000,000
Long term liabilities
Shareholders Funds	305,021,000,000
ASSETS
Current assets & short term investments	335,699,000,000
Cash & cash equivalents	30,407,000,000
Cash	30,407,000,000
Short term investments	15,000,000,000
Short term securities investments	15,000,000,000
Accounts receivable	156,581,000,000
Accounts receivable trade	71,147,000,000
Trade prepayment	78,448,000,000
Others receivables	6,986,000,000
Inventories	125,170,000,000
i.Inventories	125,170,000,000
Other short term asset	8,541,000,000
Prepaid expenses	716,000,000
VAT deductible	6,498,000,000
i.Other short term asset	1,327,000,000
Long term assets	725,061,000,000
Fixed assets	714,016,000,000
Tangible fixed assets	590,544,000,000
i.Cost	718,568,000,000
i.Accumulated depreciation	128,024,000,000
Finance lease assets	58,664,000,000
ii.Cost	72,600,000,000
ii.Accumulated depreciation	13,936,000,000
Intangible fixed assets	44,549,000,000
iii.Cost	47,222,000,000
iii.Accumulated depreciation	2,673,000,000
Construction in progress	20,259,000,000
Other long term assets	11,045,000,000
Long term prepayments	7,123,000,000
i.Other long term assets	3,922,000,000
Total assets	1,060,760,000,000
LIABILITIES AND EQUITY
Liabilities	755,739,000,000
Current liabilities	265,540,000,000
Short term borrowings	155,650,000,000
Accounts payables-trade	62,325,000,000
Advances from customers	11,100,000,000
Taxes and payable to state budget	24,000,000
Payable to employees	21,729,000,000
Accrued expenses payable	14,291,000,000
Other payables	421,000,000
Long term liabilities	490,199,000,000
i.Long term borrowings	490,199,000,000
Owner's equity	305,021,000,000
i.Owner's equity	305,021,000,000
Business capital	198,000,000,000
Retained earnings	107,021,000,000
Total resources	1,060,760,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2013 Annual
Turnover	164,304,000,000
Profit (Loss) Before Tax	5,409,000,000
Profit After Tax attributable to Shareholders	5,409,000,000
Gross sales	164,304,000,000
Net income	164,304,000,000
Cost of goods sold	146,765,000,000
Gross margin	17,539,000,000
Income from financial activities	469,000,000
Expenses from financial activities	6,439,000,000
In which: Interest expenses	1,779,000,000
Selling expenses	2,606,000,000
General & administration expenses	3,164,000,000
Net income from operating activities	5,799,000,000
Extraordinary income	15,000,000
Extraordinary expenses	405,000,000
Extraordinary gains	(390,000,000)
Net profit before tax	5,409,000,000
Net profit after tax	5,409,000,000

Financial Ratios

Financial Highlights	2013 Annual
Profitability
Profit Margin (%)	3.29
Return on Equity (%)	1.77
Return on Assets (%)	0.51
Leverage
Total Debt Equity (Times)	2.48
Current Debt Equity (Times)	0.87
Long Term Debt to Equity	1.61
Total Asset To Total Equity	3.48
Asset Management
Total Assets Turnover (Times)	0.15
Fixed Assets Turnover (Times)	0.23
Liquidity
Current Ratio	1.26

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

N/a

ADDITIONAL INFORMATION

Primary Products

Products / Materials / Services Description	Activity
Yarn products	Manufacturing, Exporting

SIC PRODUCT CLASSIFICATION & ACTIVITY

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

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Asbestos yarn and thread	6812200000	Manufacturing, Exporting
Silk, inc. yarns & woven fabrics thereof	5000	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of DONG QUANG YARN INC is Manufacturing - Finished products.

Key product include :

Yarn products

An integral part of the core business includes:

Distribution

Supplementary Business

In addition to the core business, DONG QUANG YARN INC also is engaged in the following areas of business:

Exporting

Exporting - Finished products

Importing

Importing - Raw materials

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 - HO CHI MINH
SWIFT Code	:	ASCBVNVX
Bank Name	:	HSBC BANK (VIETNAM) LTD
Global Identifier	:	32403760
Branch	:	District 1,Ho Chi Minh
Branch Address	:	HSBC BANK (VIETNAM) LTD - HO CHI MINH
SWIFT Code	:	HSBCVNVX
Bank Name	:	JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
Global Identifier	:	P1072025
Branch	:	Hanoi
Branch Address	:	JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM - HO CHI MINH
SWIFT Code	:	BFTVVNVX

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
China	Medium	Importing
Korea, South (Republic of Korea)	Medium	Exporting
Malaysia	Medium	Exporting
Thailand	Medium	Importing

OFFICE & FACILITIES

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

Name	:	DONG QUANG YARN INC - DUC HOA, LONG AN
Primary Use	:	Office & Administration facilities
Address	:	Hai Son Industrial Group Binh Tien 2 Hamlet Duc Hoa Ha Commune, Duc Hoa, Long An
Country	:	Vietnam
Status	:	Operational

NOTES & COMMENTS

N/a

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.58.86
UK Pound	1	Rs.98.82
Euro	1	Rs.80.72

INFORMATION DETAILS

Analysis Done by :	KAR
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.