MIRA INFORM REPORT

Report No. :	301737
Report Date :	19.01.2015

IDENTIFICATION DETAILS

Name :	MUADONG TEXTILE JSC
Registered Office :	47 Nguyen Tuan St Thanh Xuan Ward, Thanh Xuan, Hanoi
Country :	Vietnam
Financials (as on) :	December 2012
Date of Incorporation :	06.04.2006
Legal Form :	Joint Stock Company
Line of Business :	Manufacturer of Textiles & Raw Material.
No. of Employee :	600

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Vietnam	A2	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

Organization Name	:	MUADONG TEXTILE JSC
Address	:	47 Nguyen Tuan St Thanh Xuan Ward, Thanh Xuan, Hanoi
Country	:	Vietnam
Phone (S)	:	[+84] 4-38584517
Facsimile	:	[+84] 4-38582061
Email	:	contact@muadong.com.vn
Website	:	http://www.muadong.com.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Textiles & Raw Material

Key Facts

Registered Legal Address	:	47 Nguyen Tuan St Thanh Xuan Ward, Thanh Xuan, Hanoi
Operational Address	:	47 Nguyen Tuan St Thanh Xuan Ward, Thanh Xuan, Hanoi
Issuing Authority	:	Dept. of Planning & Investment - Hanoi
License Number	:	0103011689
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	:	6 Apr, 2006
Employees	:	600
Capital	:	US$ 1,643,277
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.

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Chairman
Name	:	Ms. Tran Kim Phuong
Nationality	:	Vietnamese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Ms. Lai Thi Binh	Vietnamese	Deputy Managing Director	-
2	Mr. Nguyen Hoai Duc	Vietnamese	Managing Director	-
3	Mr. Do Thi Thuy Giang	Vietnamese	Chief Accountant	-
4	Mr. Doan Trung Son	Vietnamese	Deputy Managing Director	-
5	Mr. Nguyen Huu Thanh	Vietnamese	Deputy Managing Director	-

Management Details - 1

Personal Unique Identifier	:	MI03813200
Name	:	Ms. Lai Thi Binh
Date of Birth	:	1958

Management Details - 2

Personal Unique Identifier	:	MI03813119
Name	:	Mr. Nguyen Hoai Duc
Date of Birth	:	1961

Management Details - 3

Personal Unique Identifier	:	MI03813203
Name	:	Mr. Do Thi Thuy Giang
Date of Birth	:	1974

Management Details - 4

Personal Unique Identifier	:	MI03813201
Name	:	Mr. Doan Trung Son
Date of Birth	:	1972

Management Details - 5

Personal Unique Identifier	:	MI03813198
Name	:	Mr. Nguyen Huu Thanh
Date of Birth	:	1955

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03813119
Name	:	Mr. Nguyen Hoai Duc
Date of Birth	:	1961
2
Personal Unique Identifier	:	MI03813196
Name	:	Ms. Tran Kim Phuong
Date of Birth	:	1959

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing MUADONG TEXTILE 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

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: VND - Vietnam Dong)

Authorized Capital

:

₫ 35,000,000,000

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

DOMESTIC SALES & PURCHASES

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

Annual Purchases Analysis	Percentage
Local Purchases	60%
Imports	40%

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

N/a

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2011 Annual	1,418,723	3,993,519	146,519
2012 Annual (*)	1,630,903	4,170,248	155,057

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(*)	36,385,000,000	40,389,000,000
Non Current Assets(*)	46,800,000,000	46,455,000,000
Non Current Liabilities(*)	5,272,000,000	5,272,000,000
Share Capital(*)	35,000,000,000	35,000,000,000
Other long term assets
Total Assets(*)	83,185,000,000	86,844,000,000
Total Liabilities(*)	13,986,000,000	17,132,000,000
Current Liabilities(*)	8,714,000,000	11,860,000,000
Long term liabilities
Shareholders Funds(*)	69,199,000,000	69,712,000,000
Current assets & short term investments	36,385,000,000	40,389,000,000
Cash & cash equivalents	4,257,000,000	6,156,000,000
Cash	4,257,000,000	6,156,000,000
Accounts receivable	7,319,000,000	7,030,000,000
Accounts receivable trade	5,016,000,000	6,716,000,000
Others receivables	2,303,000,000	314,000,000
Inventories	24,281,000,000	26,450,000,000
Other short term asset	191,000,000	753,000,000
VAT deductible	337,000,000	-
Long term assets	46,800,000,000	46,455,000,000
Fixed assets	46,800,000,000	46,455,000,000
Tangible fixed assets	11,874,000,000	28,689,000,000
I. Cost	33,622,000,000	52,529,000,000
Accumulated depreciation	21,748,000,000	23,840,000,000
Intangible fixed assets	-	13,188,000,000
II. Cost	-	13,188,000,000
Construction in progress	34,926,000,000	4,578,000,000
Total assets	83,185,000,000	86,844,000,000
Liabilities	13,986,000,000	17,132,000,000
Current liabilities	8,714,000,000	11,860,000,000
Short term borrowings	3,708,000,000	4,173,000,000
Accounts payables-trade	1,084,000,000	1,665,000,000
Advances from customers	735,000,000	630,000,000
Taxes and payable to state budget	1,677,000,000	2,266,000,000
Payable to employees	761,000,000	1,297,000,000
Other payables	749,000,000	1,789,000,000
I. Bonus and welfare funds	-	40,000,000
Long term liabilities	5,272,000,000	5,272,000,000
Long term borrowings	5,272,000,000	5,272,000,000
I. Owner's equity	69,199,000,000	69,712,000,000
II. Owner's equity	69,144,000,000	69,712,000,000
Business capital	35,000,000,000	35,000,000,000
Share capital's surplus	10,438,000,000	10,437,000,000
Other owner's equity	292,000,000	292,000,000
Foreign exchange differences	(336,000,000)	-
Business development funds	698,000,000	753,000,000
Retained earnings	3,052,000,000	3,230,000,000
Capital investment sources	20,000,000,000	20,000,000,000
Budget sources	55,000,000	-
II. Bonus and welfare funds	55,000,000	-
Total resources	83,185,000,000	86,844,000,000

Note: (*)

Financial Highlights

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual
Turnover(*)	29,552,000,000	33,963,000,000
Profit (Loss) Before Tax(*)	4,069,000,000	3,914,000,000
Profit After Tax attributable to Shareholders(*)	3,052,000,000	3,229,000,000
Gross sales	29,552,000,000	33,963,000,000
Net income	29,552,000,000	33,963,000,000
Cost of goods sold	16,639,000,000	20,458,000,000
Gross margin	12,913,000,000	13,505,000,000
Income from financial activities	463,000,000	13,000,000
Expenses from financial activities	2,130,000,000	1,603,000,000
In which: Interest expenses	1,766,000,000	1,260,000,000
Selling expenses	1,836,000,000	2,516,000,000
General & administration expenses	5,341,000,000	5,460,000,000
Net income from operating activities	4,069,000,000	3,939,000,000
Extraordinary income	-	28,000,000
Extraordinary expenses	-	53,000,000
Extraordinary gains	-	(25,000,000)
Net profit before tax	4,069,000,000	3,914,000,000
Income tax	1,017,000,000	685,000,000
Net profit after tax	3,052,000,000	3,229,000,000

Note: (*)

Financial Highlights

Financial Ratios

Financial Highlights	2011 Annual	2012 Annual
Growth %
Year-on-Year Growth	-	14.93
Profitability
Profit Margin (%)	10.33	9.51
Return on Equity (%)	4.41	4.63
Return on Assets (%)	3.67	3.72
Leverage
Total Debt Equity (Times)	0.20	0.25
Current Debt Equity (Times)	0.13	0.17
Long Term Debt to Equity	0.08	0.08
Total Asset To Total Equity	1.20	1.25
Asset Management
Total Assets Turnover (Times)	0.36	0.39
Fixed Assets Turnover (Times)	0.63	0.73
Liquidity
Current Ratio	4.18	3.41

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 basic financials were obtained for reference.

FOREIGN EXCHANGE RATES

N/a

ADDITIONAL INFORMATION

Report Details
Country	:	Vietnam
Business Entity Name	:	MUADONG TEXTILE JSC
Primary Business Activity	:	Manufacturer
Primary Industry	:	Textiles & Raw Material
Office Contact Details
Operating Address	:	47 Nguyen Tuan St Thanh Xuan Ward, Thanh Xuan, Hanoi
Tel	:	[+84] 4-38584517
Fax	:	[+84] 4-38582061
Email	:	contact@muadong.com.vn
Website Details
Website	:	http://www.muadong.com.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	:	0100102100

Primary Products

Products / Materials / Services Description	Activity
Textile products	Manufacturing, Exporting
Wool	Manufacturing, Exporting

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Apparel/Other Textile Products	2300	Manufacturing, Exporting
Broad woven fabrics, wool	2231	Manufacturing, Exporting
Fabricated textile products, nspf	2399	Manufacturing, Exporting
Textile goods, nspf	2299	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Made-up articles of textile materials	6307	Manufacturing, Exporting
Textile products etc. for specific tech uses	5911	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of MUADONG TEXTILE JSC is Manufacturing - Finished products.

Key products include :

Wool

Textile products

An integral part of the core business includes:

Distribution

Supplementary Business

In addition to the core business, MUADONG TEXTILE JSC also is engaged in the following areas of business:

Exporting

Exporting - Finished products

Importing

Importing - Raw materials

BANK DETAILS

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 - HANOI
SWIFT Code	:	BFTVVNVX

LOCAL BRANCHES & MANAGEMENT

Branch	:	MUADONG TEXTILE JSC - BA DINH, HANOI
Branch Address	:	5 Tran Phu St, Ba Dinh, Hanoi
Branch	:	MUADONG TEXTILE JSC - DONG DA, HANOI
Branch Address	:	Y17 New Thai Ha St, Dong Da, Hanoi

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
Europe	Medium	Exporting
North America	Medium	Exporting
Canada	Medium	Exporting
China	Medium	Importing
Indonesia	Medium	Importing
Japan	Medium	Exporting
Malaysia	Medium	Importing
Thailand	Medium	Importing
USA	Medium	Exporting

OFFICE & FACILITIES

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

Name	:	MUADONG TEXTILE JSC - THANH XUAN, HANOI
Primary Use	:	Office & Administration facilities
Building Size	:	23,000 Square meters
Address	:	47 Nguyen Tuan St Thanh Xuan Ward, Thanh Xuan, Hanoi
Country	:	Vietnam
Ownership of Property	:	Rented / Leased
Status	:	Operational

COMPANY HISTORY

Date	Details
1960	Commenced business operations as government enterprise.
2006 - Apr	Changed legal form to joint stock company.

QUALITY ACCREDITATION

Quality Accreditation Listings

#	Name	Accreditation Category
1	INTERNATIONAL STANDARDS ORGANIZATION (ISO)	9001:2008

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
21 Jul, 2004	0106000302

NOTES & COMMENTS

N/a

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.89
UK Pound	1	Rs.93.92
Euro	1	Rs.72.01

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	ANK

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.