MIRA INFORM REPORT

Report Date :

26.11.2014

IDENTIFICATION DETAILS

Name :	SCAVI HUE CO
Registered Office :	Phong Dien Industrial Zone, Phong Dien Dist, Thua Thien-Hue
Country :	Vietnam
Financials (as on) :	December, 2013
Date of Incorporation :	27.03.2008
Legal Form :	Private Company with Limited Liability
Line of Business :	Manufacturer of Garments & Accessories
No. of Employees :	3,000

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Vietnam	B1	A2

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 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

Company Details
Organization Name	:	SCAVI HUE CO ^(1)
Address	:	Phong Dien Industrial Zone, Phong Dien Dist, Thua Thien-Hue
Country	:	Vietnam
Phone (S)	:	[+84] 54-3751751
Facsimile	:	[+84] 54-3751761
Email	:	scavi@scavihue.com
Website	:	http://www.scavi.com.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Garments & Accessories

Key Facts
Registered Legal Address	:	Phong Dien Industrial Zone, Phong Dien Dist, Thua Thien-Hue
Operational Address	:	Phong Dien Industrial Zone, Phong Dien Dist, Thua Thien-Hue
Issuing Authority	:	Department of Planning and Investment - National
License Number	:	313023000011
License Status	:	License exists - Normal.
Legal Form - Category	:	Private Company with Limited Liability
Legal Form	:	Company
Legal Form - Abbreviation	:	CO
Operational Status of Business	:	Normal
Date of Registration	:	27 Mar, 2008
Employees	:	3,000
Capital	:	US$ 11,500,000
Note	:	^(1) Legal status of the English corporate name The English name of the Subject Business Entity (SBE) is a randomly selected translation / transliteration made by the owners of the SBE. It is not a registered English corporate name, but simply a translation / transliteration of the local language name.

Report Details

Country	:	Vietnam
Business Entity Name	:	SCAVI HUE CO
Primary Business Activity	:	Manufacturer
Primary Industry	:	Garments & Accessories
Office Contact Details
Operating Address	:	Phong Dien Industrial Zone, Phong Dien Dist, Thua Thien-Hue
Tel	:	[+84] 54-3751751
Fax	:	[+84] 54-3751761
Email	:	scavi@scavihue.com
Website Details
Website	:	http://www.scavi.com.vn
Status	:	Normal - operational
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	:	3300382362

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Chairman
Name	:	Mr. Tran Van Phu
Nationality	:	French

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Ms. Tran Thi Moc Lan	Vietnamese	Managing Director	-
2	Mr. Dang Van Vinh	Vietnamese	Chief Accountant	-

Management Details - 1

Personal Unique Identifier	:	MI02825279
Name	:	Ms. Tran Thi Moc Lan
Date of Birth	:	1954

Management Details - 2

Personal Unique Identifier	:	MI02825283
Name	:	Mr. Dang Van Vinh
Date of Birth	:	1974

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI02825281
Name	:	Mr. Tran Van Phu
Date of Birth	:	1955
2
Personal Unique Identifier	:	MI02825279
Name	:	Ms. Tran Thi Moc Lan
Date of Birth	:	1954

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing SCAVI HUE CO'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

CIVIL 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

:

$ 11,500,000

Date	Authorized Capital - History
25 Jul, 2005	5,000,000
2011	9,000,000
2014	11,500,000

SHAREHOLDERS

Total number of shareholders	:	2
Total number of shares	:	n/a

Currency

:

VND - Vietnam Dong

No.	Shareholders	Country	Shares
			Number	Amount (VND)	%
1	SCAVI SAS	France	n/a	n/a	97.50
2	Mr. Tran Van Phu	France	n/a	n/a	2.50
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
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

DIRECT / INDIRECT CORPORATE PARENT DETAILS

Direct Parent	:	SCAVI SAS
Global Identifier	:	P1820817
Country	:	France

RELATED PARTIES (Subsidiaries , Joint-ventures & Affiliates)

The following provides a summary of the number of businesses that are related to SCAVI HUE CO:

TYPE	DOMESTIC
	TOTAL
Subsidiaries	-
Joint-Ventures	-
Minority shareholdings	-
Affiliates	1
Liaison / Representative Offices	-

Domestic

Business Entity Name	:	SCAVI VIETNAM CO LTD - LAM DONG CO LTD
Global Identifier	:	32406684
Country	:	Vietnam
Relationship	:	Affiliate
Operational Address	:	735 An Dien An Phu Ward, District 2, Ho Chi Minh
Primary Business Activity	:	Manufacturer
Industry	:	Garments & Accessories

FINANCIAL INFORMATION

Financials - Summary (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2011 Annual	28,714,354	26,000,288	2,128,325
2012 Annual	23,463,288	28,583,084	1,611,071
2013 Annual	47,951,569	48,629,772	4,342,641

Sales Trend – Analysis

2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
-	-	-	-	-	-	-

FINANCIALS - SUMMARY (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2009 Annual	23,001,501	26,851,162	1,174,831

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Current Assets(*)	407,979,000,000	450,051,000,000	886,445,000,000
Non Current Assets(*)	133,607,000,000	145,182,000,000	139,064,000,000
Non Current Liabilities(*)	45,106,000,000	38,895,000,000	24,890,000,000
Other long term assets
Total Assets(*)	541,586,000,000	595,233,000,000	1,025,509,000,000
Total Liabilities(*)	355,367,000,000	370,522,000,000	741,945,000,000
Current Liabilities(*)	310,261,000,000	331,627,000,000	717,055,000,000
Long term liabilities
Shareholders Funds(*)	186,219,000,000	224,711,000,000	283,564,000,000
ASSETS
Current assets & short term investments	407,979,000,000	450,051,000,000	886,445,000,000
Cash & cash equivalents	15,971,000,000	30,529,000,000	79,050,000,000
Cash	15,971,000,000	27,529,000,000	79,050,000,000
Cash equivalents	-	3,000,000,000	-
Short term investments	-	-	5,986,000,000
Short term securities investments	-	-	5,986,000,000
Accounts receivable	197,824,000,000	181,949,000,000	332,627,000,000
Accounts receivable trade	78,212,000,000	57,648,000,000	129,007,000,000
Trade prepayment	11,361,000,000	15,377,000,000	4,359,000,000
Inter company receivables	102,175,000,000	100,028,000,000	188,839,000,000
Others receivables	6,076,000,000	9,407,000,000	10,938,000,000
Provision for bad debts	-	(511,000,000)	(516,000,000)
Inventories	182,676,000,000	233,449,000,000	458,238,000,000
I. Inventories	182,676,000,000	233,449,000,000	458,238,000,000
Other short term asset	11,508,000,000	4,124,000,000	10,544,000,000
Prepaid expenses	1,752,000,000	617,000,000	1,268,000,000
VAT deductible	6,838,000,000	2,565,000,000	8,434,000,000
Other tax receivables	2,687,000,000	879,000,000	716,000,000
I. Other short term asset	231,000,000	63,000,000	126,000,000
Long term assets	133,607,000,000	145,182,000,000	139,064,000,000
Fixed assets	133,415,000,000	143,692,000,000	114,515,000,000
Tangible fixed assets	116,210,000,000	129,657,000,000	99,721,000,000
Cost	150,051,000,000	184,039,000,000	154,832,000,000
Accumulated depreciation	33,841,000,000	54,382,000,000	55,111,000,000
Intangible fixed assets	16,159,000,000	13,142,000,000	7,722,000,000
I. Cost	26,910,000,000	29,315,000,000	29,550,000,000
I. Accumulated depreciation	10,751,000,000	16,173,000,000	21,828,000,000
Construction in progress	1,046,000,000	893,000,000	7,072,000,000
Other long term assets	192,000,000	1,490,000,000	24,549,000,000
Long term prepayments	-	1,365,000,000	24,423,000,000
I. Other long term assets	192,000,000	125,000,000	126,000,000
Total assets	541,586,000,000	595,233,000,000	1,025,509,000,000
LIABILITIES AND EQUITY
Liabilities	355,367,000,000	370,522,000,000	741,945,000,000
Current liabilities	310,261,000,000	331,627,000,000	717,055,000,000
Short term borrowings	175,053,000,000	158,275,000,000	351,554,000,000
Accounts payables-trade	53,877,000,000	67,815,000,000	187,412,000,000
Advances from customers	30,396,000,000	33,618,000,000	78,147,000,000
Taxes and payable to state budget	30,000,000	4,709,000,000	10,016,000,000
Payable to employees	7,391,000,000	7,317,000,000	8,830,000,000
Accrued expenses payable	2,441,000,000	3,806,000,000	8,548,000,000
Inter company payable	26,113,000,000	52,505,000,000	68,807,000,000
Other payables	14,960,000,000	3,582,000,000	3,741,000,000
Long term liabilities	45,106,000,000	38,895,000,000	24,890,000,000
Long term borrowings	44,652,000,000	37,987,000,000	24,016,000,000
Provision funds for unemployment	454,000,000	-	-
Provision for long term payable	-	908,000,000	874,000,000
Owner's equity	186,219,000,000	224,711,000,000	283,564,000,000
I. Owner's equity	186,219,000,000	224,711,000,000	283,564,000,000
Business capital	83,312,000,000	187,452,000,000	189,324,000,000
Retained earnings	102,907,000,000	37,259,000,000	94,240,000,000
Total resources	541,586,000,000	595,233,000,000	1,025,509,000,000

Note: (*)

Financial Highlights

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Turnover(*)	598,120,000,000	488,615,000,000	1,011,207,000,000
Profit (Loss) Before Tax(*)	44,333,000,000	35,520,000,000	99,701,000,000
Profit After Tax attributable to Shareholders(*)	44,333,000,000	33,550,000,000	91,578,000,000
Gross sales	598,120,000,000	488,615,000,000	1,011,207,000,000
Less deductions	520,000,000	1,196,000,000	36,000,000
Net income	597,600,000,000	487,419,000,000	1,011,171,000,000
Cost of goods sold	410,385,000,000	331,916,000,000	732,915,000,000
Gross margin	187,215,000,000	155,503,000,000	278,256,000,000
Income from financial activities	15,440,000,000	565,000,000	2,607,000,000
Expenses from financial activities	28,502,000,000	27,429,000,000	29,121,000,000
Selling expenses	34,154,000,000	8,366,000,000	32,907,000,000
General & administration expenses	90,219,000,000	74,414,000,000	112,080,000,000
Net income from operating activities	49,780,000,000	45,859,000,000	106,755,000,000
Extraordinary income	1,251,000,000	1,407,000,000	557,000,000
Extraordinary expenses	6,698,000,000	11,746,000,000	7,611,000,000
Extraordinary gains	(5,447,000,000)	(10,339,000,000)	(7,054,000,000)
Net profit before tax	44,333,000,000	35,520,000,000	99,701,000,000
Income tax	-	1,970,000,000	8,123,000,000
Net profit after tax	44,333,000,000	33,550,000,000	91,578,000,000

Note: (*)

Financial Highlights

Financial Ratios

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Growth %
Year-on-Year Growth	-	(18.31)	106.95
Profitability
Profit Margin (%)	7.41	6.87	9.06
Return on Equity (%)	23.81	14.93	32.30
Return on Assets (%)	8.19	5.64	8.93
Leverage
Total Debt Equity (Times)	1.91	1.65	2.62
Current Debt Equity (Times)	1.67	1.48	2.53
Long Term Debt to Equity	0.24	0.17	0.09
Total Asset To Total Equity	2.91	2.65	3.62
Asset Management
Total Assets Turnover (Times)	1.10	0.82	0.99
Fixed Assets Turnover (Times)	4.48	3.37	7.27
Liquidity
Current Ratio	1.31	1.36	1.24

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 basic financials were obtained for reference.

FOREIGN EXCHANGE RATES

Today's Exchange rate

:

1.00 VND Vietnam Dong

=

0.000047 USD United States Dollars

ADDITIONAL INFORMATION

Primary Products

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

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

Year	Imports	Exports	Total
2011	n/a	28,714,354	28,714,354
2012	n/a	23,463,288	23,463,288
2013	n/a	47,951,569	47,951,569

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Apparel/Other Textile Products	2300	Manufacturing, Exporting
Brassieres and allied garments	2342	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Garments nesoi, knitted or crocheted	6114	Manufacturing, Exporting
Made-up clothing access nesoi, garment etc parts	6217	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of SCAVI HUE CO is Manufacturing - Finished products.

Key product include :

Garment products

An integral part of the core business includes:

Distribution

Supplementary Business

In addition to the core business, SCAVI HUE CO also is engaged in the following areas of business:

Exporting

Exporting - Finished products

Importing

Importing - Finished products

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
International Sales (Export)	100%

Annual Purchases Analysis	Percentage
Local Purchases	30%
Imports	70%

BANK DETAILS

Bank Name	:	ANZ BANK (VIETNAM) LTD
Global Identifier	:	P1310499
Branch	:	District 1,Ho Chi Minh
Branch Address	:	ANZ BANK (VIETNAM) LTD - HO CHI MINH
SWIFT Code	:	This bank does not have a SWIFT Code
Bank Name	:	ASIA COMMERCIAL JOINT STOCK BANK
Global Identifier	:	P0075118
Branch	:	District 3,Ho Chi Minh
Branch Address	:	ASIA COMMERCIAL BANK JSC - BINH DUONG
SWIFT Code	:	ASCBVNVX
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, BIEN HOA
SWIFT Code	:	BFTVVNVX
Bank Name	:	VIET NAM INT'L COMMERCIAL JOINT STOCK BANK
Global Identifier	:	P0741176
Branch	:	Dong Da,Hanoi
Branch Address	:	NHA TRANG
SWIFT Code	:	VNIBVNVX

LOCAL BRANCHES & MANAGEMENT

Branch	:	SCAVI HUE CO - HUE, THUA THIEN-HUE
Branch Address	:	83 Nguyen Sinh Cung St, Hue, Thua Thien-Hue

INTERNATIONAL TRADE - Statistics (Currency: USD - US Dollar)

Year	Imports	Exports	Total
2009	n/a	23,001,501	23,001,501

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	High	Importing
Europe	High	Exporting
North America	Medium	Exporting
China	Medium	Importing
France	Medium	Exporting
Hong Kong	Medium	Importing
Italy	Medium	Exporting
Taiwan	Medium	Importing
USA	Medium	Exporting

OFFICE & FACILITIES

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

Name	:	SCAVI HUE CO - PHONG DIEN DIST, THUA THIEN-HUE
Primary Use	:	Office & Administration facilities
Building Size	:	19,000 Square meters
Address	:	Phong Dien Industrial Zone, Phong Dien Dist, Thua Thien-Hue
Country	:	Vietnam
Ownership of Property	:	Rented / Leased
Status	:	Operational

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
25 Jul, 2005	04/GP-KCN-TTH

NOTES & COMMENTS

NA

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.92
UK Pound	1	Rs.97.12
Euro	1	Rs.76.93

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	NIT

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.