MIRA INFORM REPORT

Report Date :

01.11.2007

IDENTIFICATION DETAILS

Name :	MAY COSMETIC MEDICINE JOINT STOCK COMPANY
Registered Office :	53-55 Dien Bien Phu Str, Da Kao Ward, Dist 1, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	2002
Legal Form :	Joint Stock Company
Line of Business :	Trading in medicine cosmetic, equipment for health, vaccine, milk, candy, drink (except eating and drinking service), soap, food Manufacturing, processing and package milk, food

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

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	MAY COSMETIC MEDICINE JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN DUOC MY PHAM MAY
Trade Name	MAY COSMEDIC JSC
Founded	2002
Current Type of Business	Joint Stock Company
Business registration	No.4103003265
Date of issuance	April 4^th, 2005
Place of issuance	Planning and investment Department of Hochiminh City
Registered capital	10,800,000,000 VND
Tax	0302854463
Total Employees	120 employees
Qualification	Normal
The subject was re-organized to be joint stock company on April 4^th, 2005. Formerly, it was a liability limited company. Following is its former legal form:
English Name	MAY COSMETIC MEDICINE COMPANY
Vietnamese Name	CONG TY TNHH DUOC MY PHAM MAY
Trade Name	MAY COSMEDIC CO.,LTD
Founded	2002
Type of business	Liability limited company
Registered business	No.4102013231
Date of issuance	December 23^rd, 2002
Place of issuance	Planning and Investment Department of Hochiminh City
Registered capital	5,400,000,000 VND
ADDRESSES
Registered Location:
Address	53-55 Dien Bien Phu Str, Da Kao Ward, Dist 1, Hochiminh City
Country	Vietnam
Tel	(84-8) 9105022, 9104955, 9103641, 9101121,
Fax	(84-8) 9105023
Email	maycosmedic@hcm.vnn.vn
Workshop
Address	930B2, Road B, Cat lai Industry zone, Thanh My Loi Ward, Dist 2, Hochiminh City.
Country	Vietnam
Note: Besides, the subject also has agents in 64 provinces and cities of Vietnam.
DIRECTORS
1. NAME	Mrs. NGUYEN THI TU
Position	Director
Date of birth	August 10^th, 1952
Qualification	Management
I.D Card	020096036
Issued on	June 20^th, 1997
Issued by	Police statement of Hochiminh City
Resident	No.33 Tran Qui Khach Str, Tan Dinh Ward, Dist 1, Hochiminh City
Nationality	Vietnamese
2. NAME	Ms. KIEU MINH
Position	Vice Director
Qualification	Bachelor
Resident	Hochiminh City
Nationality	Vietnamese
3. NAME	Ms. KIEU THUY MAI
Position	Vice Director (In Charge of foreign affairs)
Qualification	Bachelor
Resident	Hochiminh City
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject registered in the following lines of business: - Trading in medicine cosmetic, equipment for health, vaccine, milk, candy, drink (except eating and drinking service), soap, food - Manufacturing, processing and package milk, food - Workshop, housing for rent
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports from France, Korea, China, Singapore.
EXPORT: N/A
BANKERS
1. EXIMBANK – HOCHIMINH CITY
Address	No.7 Le Thi Hong Gam Str, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 821 0055
Fax	(84-8) 829 6063
Telex	812690 EIB VT
Swift	EBVIVNVX
A/C No.	2000 1485 1080 873 (USD) 2000 1485 1002 710 (VND)
2. SAIGON BANK FOR INDUSTRY AND TRADE COMMERCIAL
Address	18-19-20 Ton Duc Thang Str, Ben Nghe Ward, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 8235654
Fax	(84-8) 8235655
SHAREHOLDERS
The subject is now a joint stock company. Its main shareholders are as follows:
1. NAME	Mrs. NGUYEN THI TU
Position	Director
Date of birth	August 10^th, 1952
Qualification	Management
I.D Card	020096036
Issued on	June 20^th, 1997
Issued by	Police Station of Hochiminh City
Resident	33 Tran Qui Khach Str, Tan Dinh Ward, Dist 1, Hochiminh City
Nationality	Vietnamese
Share	35,000 shares
Value	3,500,000,000 VND
Ratio	32.41%
2. NAME	Ms. KIEU DUC HOA
Position	Shareholder
ID No.	023663354
Resident	214 Dien Bien Phu Str, Ward 7, Dist 3, Hochiminh City
Nationality	Vietnamese
Share	10,000 shares
Value	1,000,000,000 VND
Ratio	9.26%
3. NAME	Mrs. NGUYEN THI TUYET
Position	Shareholder
ID No.	023381321
Resident	282/B3 Bui Huu Nghia Str, Ward 2, Binh Thanh Dist, Hochiminh City
Nationality	Vietnamese
Share	5,000 shares
Value	500,000,000 VND
Ratio	4.63%
4. NAME	Mr. TRAN VAN KHOAT
Position	Shareholder
ID No.	021585275
Resident	282/B3 Bui Huu Nghia Str, Ward 2, Binh Thanh Dist, Hochiminh City
Nationality	Vietnamese
Share	4,000 shares
Value	400,000,000 VND
Ratio	3.70%

PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Average
Liquidity		Normal
Previous Payments status		Normal
Current Payment status		Average
Past Financial Situation		Average
Current Financial Situation		Fairly good
Legal Action		No recorded
Bankruptcy		No recorded
Reputation		Average
Mode of Payment		Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C) or by telegraphic transfer (T/T).
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date			31/12/2006	31/12/2005
Number of weeks			52	52
ASSETS
A -	CURRENT ASSETS		54,454	32,552
I.	Cash and cash equivalents		1,794	5,340
1.	Cash		1,794	5,340
2.	Cash equivalents		0	0
II.	Short-term investments		0	0
1.	Short-term investments		0	0
2.	Provisions for short-term investment of short- term investments in securities		0	0
III.	Accounts receivable		15,164	8,707
1.	Receivable from customers		9,037	7,996
2.	Repayments to suppliers		0	0
3.	Value-added tax deducted		1,878	0
4.	Inter- company receivable		0	0
5.	Receivable according to the process of construction contracts		0	711
6.	Other receivable		4,249
7.	Provisions for bad debts		0	0
IV.	Inventories		37,476	18,505
1.	Inventories		37,476	18,505
2.	Provisions for devaluation of inventories		0	0
V.	Other current assets		20	0
1.	Short-term repaid expenses		0	0
2.	Taxes receivable		0	0
3.	Other current assets		0	0
B -	LONG TERM ASSETS		2,449	243
I.	Long term accounts receivable		0	0
1.	Long term accounts receivable from customers		0	0
2.	Long term inter- company receivable		0	0
3.	Other long term receivable		0	0
4.	Provisions for bad debts		0	0
II.	Fixed assets		848	243
1.	Tangible assets		848	243
	Original costs		1,245	343
	Accumulated depreciation		-397	100
2.	Financial leasehold assets		0	0
	Original costs		0	0
	Accumulated depreciation		0	0
3.	In-tangible assets		0	0
	Original costs		0	0
	Accumulated depreciation		0	0
4.	Construction in progress		0	0
III.	Investment property		0	0
	History costs		0	0
	Accumulated depreciation		0	0
IV.	Long term investments		0	0
1.	Investments in affiliates		0	0
2.	Investments in business concerns and joint ventures		0	0
3.	Other long term investments		0	0
4.	Provisions for devaluation of investments in securities		0	0
V.	Other long term assets		1,601	0
1.	Long term repaid expenses		0	0
2.	Deferred income tax		0	0
3.	Other long term assets		0	0
	TOTAL ASSETS		56,903	32,795
LIABILITIES
A -	LIABILITIES		38,262	18,080
I.	Short term liabilities		38,262	18,080
1.	Short term debts and loans		21,461	11,989
2.	Payable to suppliers		16,012	0
3.	Advances from customers		0	4,618
4.	Taxes and other obligations to the State Budget		777	0
5.	Payable to employees		0	1,473
6.	Accrued expenses		0	0
7.	Inter- company payable		0	0
8.	Payable according to the progress of construction contracts		0	0
9.	Other payables		12	0
II.	Long term liabilities		0	0
1.	Long term account payable to suppliers		0	0
2.	Long term inter- company payable		0	0
3.	Other long term payable		0	0
4.	Long term debts and loans		0	0
5.	Deferred income tax		0	0
B -	OWNER’S EQUITY		18,641	14,715
I.	Owner’s equity		18,015	14,321
1.	Capital		10,800	10,800
2.	Share premiums		0	0
3.	Treasury stocks		0	0
4.	Differences on asset re-valuation		0	0
5.	Foreign exchange differences		0	0
6.	Business promotion fund		0	613
7.	Financial reserved fund		0	204
8.	Other funds		0	2,704
9.	Retained earnings		5,162	0
10.	Other capital sources		2,053	0
II.	Other sources and funds		626	394
1.	Bonus and welfare funds		626	0
2.	Sources of expenditure		0	394
3.	Funds to form fixed assets		0	0
	TOTAL LIABLITIES AND OWNER’S EQUITY		56,903	32,795

PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Items	F/Y 2006	F/Y 2005
1.	Sales	151,981	81,042
2.	Deductions	50	95
3.	Net sales	151,931	80,947
4.	Costs of goods sold	131,078	69,769
5.	Gross profit	20,853	11,178
6.	Financial income	185	17
7.	Financial expenses	1,134	235
	- In which : Loan interest expenses	0	-
8.	Selling expenses	7,831	2,877
9.	Administrative overheads	6,352	2,719
10.	Net operating profit	5,721	5,364
11.	Other income	0	0
12.	Other expenses	0	0
13.	Other profits	0	-
14.	Profit (loss) before tax	5,721	5,364
15.	Income tax	1,602	1,502
16.	Profit (loss) after tax	4,119	3,862
FINANCIAL FACTORS
Description		FY 2006	FY 2005
Current Liquidity Ratio		1.42	1.80
Quick Liquidity Ratio		0.44	0.78
Inventory Circle		3.50	3.77
Average Receive Period		36.43	39.26
Utilizing Asset Performance		2.67	2.47
Liability / Total Asset (%)		67.24	55.13
Liability / Owner's Equity (%)		205.26	122.87
Income Before Tax / Total Asset (%) ROA		10.05	16.36
Income Before Tax / Owner's Equity (%) ROE		30.69	36.45
Income Before Tax / Total Revenue (%) NPM		3.76	6.62
Gross Profit / Total Revenue (%) GPM		13.72	13.79
INTERPRETATION
Originally, May Cosmetic was a Liability Limited Company. It was established in 2002 with registered capital of 5.4 billion VND. In 2005, the subject has equitized and increased registered capital up to 10.8 billion VND. The subject is specialized in trading in medicine cosmetic, equipment for health, vaccine, milk, confectionary, drink, soap, and food. The subject imported medicine, cosmetic and equipment from Germany, French, Korea, China, Malaysia… According to director of the subject, French is a big partner. Yearly, the subject imports products from French with total value of about 7 - 8 million USD. The premises and facilities of the subject are fair. It is now located at a convenient place. Besides the head office, the subject has a workshop with 11,000m2 area in Cat Lai Industrial Zone, Dist 2, Hochiminh city. It also has agents in 64 provinces and cities of Vietnam. The management of the subject is normal. The subject has not very large market share. When we exchanged with Mrs. Nguyen Thi Tu – Director of the subject, she said: the subject’s operation now is good. Its products are mainly for domestic uses. The subject’s revenue is increased year after year. In 2005, total revenue was 81 VND billion and in 2006 this number was 151 VND billion, 86.4 percent higher than 2005. Revenue of the subject in the first 6 months of 2007 is about 90 VND billion. In overview, the subject’s future prospect seems bright in near future.

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.	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%)

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