MIRA INFORM REPORT

Report Date :

23.05.2007

IDENTIFICATION DETAILS

Name :	MEYER- BPC JOINT VENTURE COMPANY
Registered Office :	No. 6A3, National Road No. 60, Phu Khuong Ward, Ben Tre Town, Ben Tre Province
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	2001
Legal Form :	Joint Venture Company
Line of Business :	Manufacturing and trading pharmaceutical

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 :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	MEYER- BPC JOINT VENTURE COMPANY
Vietnamese name	CONG TY LIEN DOANH MEYER-BPC
Trade Name	MEYER –BPC CO
Type of Business	Joint venture company
Foundation	2001
Investment license No	2215/GP
Date of Issuance	August 20^th, 2001
Place of Issuance	Planning and investment department of Ben Tre Province
Invested capital	1,500,000 USD
Legal capital	1,000,000 USD
Investment duration	30 years
Tax Code	1300337479
Total Employees	230 employees
Qualification	Fairly good
ADDRESS
Head Office
Address	No. 6A3, National Road No. 60, Phu Khuong Ward, Ben Tre Town, Ben Tre Province
Country	Vietnam
Tel	(84-75) 822428
Fax	(84-75) 817573
Email	meyerbpc@hcm.vnn.vn
DIRECTORS
1. NAME	Mr. DINH VAN BICH
Position	Director
Resident	Ben Tre Town, Ben Tre Province
Nationality	Vietnamese
2. NAME	Mr. NGUYEN VAN NON
Position	Deputy Director
Resident	Ben Tre Town, Ben Tre Province
Nationality	Vietnamese
3. NAME	Mr. HUYNH THIEN NGHIA
Position	Deputy Director
Resident	Ben Tre Town, Ben Tre Province
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in manufacturing and trading pharmaceutical
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports materials and equipments from Italy, France, China and India
EXPORT: The subject does not export.
BANKERS
1. INVESMENT AND DEVELOPMENT BANK – BEN TRE BRANCH
Address	No. 21, Dong Khoi Street, Ward 3, Ben Tre Town, Ben Tre Province
Tel	84-75 829492
Fax	84-75 824964
SHAREHOLDERS
1. Name	BEN TRE PHARMACEUTICAL JOINT STOCK COMPANY
Address	No. 6A3, National Road No. 60, Phu Khuong Ward, Ben Tre Town, Ben Tre Province
Country	Vietnam
Tel	(84-75) 822429
Fax	(84-75) 817617
Website	www.bepharco.com
Share	60 %
Value	600,000 USD
2. Name	MEYER PHARMACEUTICAL LTD
Country	Hong Kong
Share	40 %
Value	400,000 USD
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Above average
Liquidity	Normal
Previous Payments	Normal
Payment status	Above average
Past Financial Situation	Average
Current Financial Situation	Fairly good
Litigation Data	No recorded
Bankruptcy	No recorded
Public opinion	Fairly good
Payment Methods	Through its bank, T.T, D.P at sight
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date		31/12/2006
Number of weeks		52
ASSETS
A. Working assets & short-term Investment		26,305
I. Cash and cash equivalents		1,760
II. Short-term investment		0
1. Short-term securities investment		0
2. Other short-term investment		0
3. Provision for short-term investment		0
III. Receivables		12,965
1. Receivables from customers		12,250
2. Prepayment for providers		288
3. Value-added tax deducted		426
4. Internal receivables		0
5. Other receivables		1
6. Provision for bad receivables		0
IV. Inventory		11,519
1. Purchased goods in transit		0
2. Raw materials		11,519
3. Instrument, tools		0
4. Cost for production and business in process		0
5. End products		0
6. Goods		0
7. Goods on consignment		0
8. Provision for devaluation of stocks		0
V. Other current assets		61
1. Advances		0
2. Prepaid expenses		61
3. Pending expenses for transfer		0
4. Pending assets		0
5. Mortgage, collateral and short run collateral		0
VI. Administrative		0
1. Administrative expenses for previous year		0
2. Administrative expenses for current year		0
B. Fixed assets & Long term investment		19,824
I. Fixed assets		7,074
1. Tangible fixed assets		7,074
+ Original cost		9,860
+ Accumulated depreciation value		-2,786
2. Financial leasing fixed assets		0
+ Original cost		0
+ Accumulated depreciation value		0
3. Intangible fixed assets		0
+ Original cost		0
+ Accumulated depreciation value		0
II. Long term investment		0
1. Long-term securities investment		0
2. Joint-venture capital contribution		0
3. Other long-term investment		0
4. Provision for long-term investment devaluation		0
III. Capital construction in process		12,750
IV. Other		0
TOTAL ASSETS		46,129
A. Payable loans		30,725
I. Short term payables		25,974
1. Short-term borrowings		13,988
2. Due long-term liabilities		0
3. Payables to supplier		11,687
4. Prepayment of buyer		0
5. Taxes and accounts dutiable		0
6. Employee payments		37
7. Internal payables		0
8. Other payables		262
II. Long term loans		4,219
1. Long-term borrowings		4,219
2. Long-term payables		0
III. Other payables		532
1. Payable expenses		532
2. Pending assets		0
3. Receipts long-term collateral and deposit		0
B. Owner’s Equity		15,404
I. Capital and Funds		15,413
1. Working capital		15,629
2. Differences from asset revaluation		0
3. Exchange rate differences		0
4. Development investment funds		0
5. Reserved funds		0
6. Retained profit		-216
7. Construction capital sources		0
II. Other administrative and fund sources		-9
1. Provident funds for unemployment		0
2. Reward and welfare funds		-9
3. Management funds of higher level		0
4. Functional operation funds		0
5. Fund sources formed by fixed assets		0
TOTAL LIABILITY AND EQUITY		46,129

PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
Description	F.Y 2006
Total revenue	31,083
Deductions Items	499
- Discount	0
- Devaluation	0
- Return of sold goods	499
- Turnover tax, Luxury tax & Export tax	0
1. Net revenue	30,584
2. Cost of goods sold	30,114
3. Gross Profit	470
4. Sales expenses	0
5. Enterprise administrative expenses	5
6. Net income from business activities	465
Income from financial activities	27
Expenditure from financial activities	10
7. Net income from financial operation	17
Irregular income	86
Irregular expenditure	5
8. Irregular Profit	81
9. Total pre-tax profit	563
10. Income tax	0
11. After tax profit	563
FINANCIAL FACTORS
Description		F.Y 2006
Current Liquidity Ratio		1.01
Quick Liquidity Ratio		0.57
Inventory Circle		5.23
Average Receive Period		154.73
Utilizing Asset Performance		0.66
Liability / Total Asset (%)		66.61
Liability / Owner's Equity (%)		199.46
Income Before Tax / Total Asset (%) ROA		1.22
Income Before Tax / Owner's Equity (%) ROE		3.65
Income Before Tax / Total Revenue (%) NPM		1.81
Gross Profit / Total Revenue (%) GPM		1.51
INTERPRETATION
Meyer-BPC Joint Venture Company is a 60 %-40 % joint venture company between Ben Tre Pharmaceutical Joint Stock Company and Meyer Pharmaceutical Ltd. The subject got invested license No. 2215/GP on August 20^th, 2001 issued by Planning and investment department of Ben Tre Province. The plant was built at the beginning of 2003 and started operation since July of 2005. Meyer-BPC Joint Stock Company is specializing in manufacturing and trading pharmaceutical, especially non-betalactam tablet, capsule and powder tablet. After nearly two years of operation, the subject has produced about 70 kinds of products under the GMP, GLP, and GPS standard. Currently, the subject has four distributor branches in Hochiminh City, Hanoi City, Da Nang City and Can Tho City, more than detail shops and more than 360 agents in all over the country. The subject has good business relationship with partners and is distributor of foreign firms such as Egis, Helm, AG, Cipla, Raptakos, Meyer, Gedeon Richter, Lactose New Zealand, Neo Unicap, Aceto PTE which are belonged to national such as Australia, Hungary, India, Korea, New Zealand, Germany, Thailand, China and Singapore. The subject has just been found and operation not long time but it has prospect of development and operation.

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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