MIRA INFORM REPORT

Report Date :

02.03.2011

IDENTIFICATION DETAILS

Name :	DAVI PHARM COMPANY LIMITED

Registered Office :	Lot. M7a - CN D17 Street-My Phuoc Industrial Zone - Ben Cat District - Binh Duong Province - Vietnam

Country :	Vietnam

Financials (as on) :	31.12.2008

Date of Incorporation :	07.06.2004

Com. Reg. No.:	4602001093

Legal Form :	Limited Liability Company

Line of Business :	Producing and trading pharmaceuticals and cosmetics.

RATING & COMMENTS

MIRA’s Rating :

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 – June 30, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Viet Nam

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SUBJECT IDENTIFICATION & LEGAL FORM


Current legal status
English Name		DAVI PHARM COMPANY LIMITED
Vietnamese Name		CONG TY TNHH DUOC PHAM DAT VI PHU
Trade name		DAVI PHARM CO., LTD
Short name		CTY TNHH DAVI
Type of Business		Limited liability company
Year Established		2004
Business Registration No.		4602001093
Date of Registration		07 Jun 2004
Place of Registration		Business Registration Office- Planning & Investment Department of Binh Duong Province
Current registered capital		30,000,000,000 VND
Tax code		3700575898
Total Employees		120

Historical Identification & Legal form

List

Changed Items

Date of changes

Subject has got former Registered Vietnamese Name: Cong ty TNHH Thuong Mai va San Xuat Dat Vi Phu

Changed to: Cong Ty TNHH Duoc Pham Dat Vi Phu

13 Mar 2006

ADDRESSES


Head Office
Address		Lot. M7a - CN D17 Street-My Phuoc Industrial Zone - Ben Cat District - Binh Duong Province - Vietnam
Telephone		(84-650) 3567 687 - 3567 689
Fax		(84-650) 3567 688
Email		david@viettel.com.vn
Website		www.datviphu.com.vn

Branch in Ho Chi Minh
Address		No.39- Street No.2 - Lu Gia Housing Compound-Ward 15 – 11^thDistrict - Ho Chi Minh City - Vietnam
Telephone		(84-8) 38663622
Fax		(84-8) 38661463

DIRECTORS


1. NAME		Mr. MAI TRUNG KIEN
Position		Director
Date of Birth		29 Oct 1955
ID Number/Passport		010444182
Resident		No 3/9 Quoc Huong Street-Thao Dien Ward – 2^nd District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese

2 . NAME		Mr. PHAM TAI TRUONG
Position		Deputy Director
Date of Birth		15 Feb 1960
ID Number/Passport		022617613
Resident		No. 19/4 Nguyen Cuu Dam Street-Tan Son Nhi Ward - Tan Binh District - Ho Chi Minh City - Vietnam
Tel/Mobil phone		+84 903709624
Qualification		Management

3 . NAME		Ms. NGUYEN THI KIEU MY
Position		Chief Accountant
Resident		Binh Duong Province - Vietnam
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject’s registered business items are producing and trading pharmaceuticals and cosmetics.

IMPORT & EXPORT ACTIVITIES


IMPORT:
· Types of products		Packaging, pack, plastic bag, semi-finished product, equipment, machinery
· Market		China, India.

EXPORT:
· Types of products		Products
· Market		Africa, Asia

BANKERS


1. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK BINH DUONG BRANCH
Address		No.431 Dai Lo Binh Duong - Thu Dau Mot City - Binh Duong Province - Vietnam
Telephone		(84-650) 3859593
Fax		(84-650) 3859591
SWIFT Code		SGTTVNVX

2. JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM BINH DUONG BRANCH
Address		No. 314 Binh Duong Highway - Thu Dau Mot City - Binh Duong Province - Vietnam
Telephone		(84-650) 3898989
Fax		(84-650) 3842321

SHAREHOLDERS

1 . NAME		Mr. PHAM TAI TRUONG
Position		Deputy Director
Date of Birth		15 Feb 1960
ID Number/Passport		022617613
Issued on		07 Jul 2004
Issued Place		Police Station of Ho Chi Minh City
Resident		No. 19/4 Nguyen Cuu Dam Street-Tan Son Nhi Ward - Tan Binh District - Ho Chi Minh City - Vietnam
Value of shares		25,000,000,000 VND
Percentage		83.33%

2 . NAME		Mr. MAI TRUNG KIEN
Position		Director
Date of Birth		29 Oct 1955
ID Number/Passport		010444182
Issued on		08 Jul 1993
Issued Place		Police Station of Ha Noi City
Resident		No 3/9 Quoc Huong Street-Thao Dien Ward – 2^nd District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		5,000,000,000 VND
Percentage		16.67%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2008
Number of weeks	52
ASSETS
A – CURRENT ASSETS	43,603,006,310
I. Cash and cash equivalents	1,129,735,377
1. Cash	1,129,735,377
2. Cash equivalents	0
II. Short-term investments	0
1. Short-term investments	0
2. Provisions for devaluation of short-term investments	0
III. Accounts receivable	8,146,513,562
1. Receivable from customers	858,524,389
2. Prepayments to suppliers	6,828,078,842
3. Inter-company receivable	0
4. Receivable according to the progress of construction	0
5. Other receivable	459,910,331
6. Provisions for bad debts	0
IV. Inventories	33,417,291,320
1. Inventories	33,417,291,320
2. Provisions for devaluation of inventories	0
V. Other Current Assets	909,466,051
1. Short-term prepaid expenses	270,197,731
2. VAT to be deducted	89,229,957
3. Taxes and other accounts receivable from the State	15,449,295
4. Other current assets	534,589,068
B. LONG-TERM ASSETS	46,535,263,794
I. Long term account receivable	0
1. Long term account receivable from customers	0
2. Working capital in affiliates	0
3. Long-term inter-company receivable	0
4. Other long-term receivable	0
5. Provisions for bad debts from customers	0
II. Fixed assets	43,295,812,256
1. Tangible assets	43,056,480,256
- Historical costs	49,468,803,205
- Accumulated depreciation	-6,412,322,949
2. Financial leasehold assets	0
- Historical costs	0
- Accumulated depreciation	0
3. Intangible assets	0
- Initial costs	0
- Accumulated amortization	0
4. Construction-in-progress	239,332,000
III. Investment property	0
Historical costs	0
Accumulated depreciation	0
IV. Long-term investments	0
1. Investments in affiliates	0
2. Investments in business concerns and joint ventures	0
3. Other long-term investments	0
4. Provisions for devaluation of long-term investments	0
V. Other long-term assets	3,239,451,538
1. Long-term prepaid expenses	3,239,451,538
2. Deferred income tax assets	0
3. Other long-term assets	0
TOTAL ASSETS	90,138,270,104

LIABILITIES
A- LIABILITIES	62,214,748,824
I. Current liabilities	60,505,836,157
1. Short-term debts and loans	5,681,250,921
2. Payable to suppliers	8,053,031,000
3. Advances from customers	1,092,865,724
4. Taxes and other obligations to the State Budget	0
5. Payable to employees	0
6. Accrued expenses	0
7. Inter-company payable	0
8. Payable according to the progress of construction contracts	0
9. Other payable	45,678,688,512
10. Provisions for short-term accounts payable	0
II. Long-Term Liabilities	1,708,912,667
1. Long-term accounts payable to suppliers	0
2. Long-term inter-company payable	0
3. Other long-term payable	0
4. Long-term debts and loans	1,708,912,667
5. Deferred income tax payable	0
6. Provisions for unemployment allowances	0
7. Provisions for long-term accounts payable	0
B- OWNER’S EQUITY	27,923,521,280
I. OWNER’S EQUITY	27,923,521,280
1. Capital	30,000,000,000
2. Share premiums	0
3. Other sources of capital	0
4. Treasury stocks	0
5. Differences on asset revaluation	0
6. Foreign exchange differences	0
7. Business promotion fund	0
8. Financial reserved fund	0
9. Other funds	0
10. Retained earnings	-2,076,478,720
11. Construction investment fund	0
II. Other sources and funds	0
1. Bonus and welfare funds	0
2. Sources of expenditure	0
3. Fund to form fixed assets	0
MINORITY’S INTEREST	0
TOTAL LIABILITIES AND OWNER’S EQUITY	90,138,270,104


PROFIT & LOSS STATEMENT

Description	FY2008
1. Total Sale	24,649,022,506
2. Deduction item	126,170,640
3. Net revenue	24,522,851,866
4. Costs of goods sold	13,448,484,250
5. Gross profit	11,074,367,616
6. Financial income	16,522,374
7. Financial expenses	780,703,264
- In which: Loan interest expenses	0
8. Selling expenses	0
9. Administrative overheads	9,165,694,889
10. Net operating profit	1,144,491,837
11. Other income	0
12. Other expenses	0
13. Other profit /(loss)	0
14. Total accounting profit before tax	1,144,491,837
15. Current corporate income tax	0
16. Deferred corporate income tax	0
18. Profit after tax	1,144,491,837


FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2008	Average Industry
Current liquidity ratio	0.72	1.74
Quick liquidity ratio	0.17	1.02
Inventory circle	0.40	3.74
Average receive period	121.25	76.97
Utilizing asset performance	0.27	1.31
Liability by total asset	69.02	49.32
Liability by owner equity	222.80	129.21
Ebit / Total asset (ROA)	1.27	8.55
Ebit / Owner's equity (ROE)	4.10	18.02
Ebit / Total revenue (NPM)	4.64	6.82
Gross profit / Total revenue (GPM)	44.93	21.89
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data


Unit: 1,000,000 VND

Description		FY 2007
Current assets & Short term Investment		32,940
Fixed assets and long-term investment		46,666
Total Assets		78,940
Payable		52,362
Owner’s Equity		26,578
Total Liability and Equity		78,940

Total Revenue		7,778
Deduction items		0
Net Revenue		7,778
Net Income From business Activities		-3,276
Net Income From Financial Operation		0
Irregular Profit		-32
Total pre-tax Profit		-3,308

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Normal
Liquidity	Low/ Medium
Payment status	Normal
Financial Situation	Above Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	By cash or through the bank.
Sale Methods	Retailer and Wholesaler
Public opinion	Normal

INTERPRETATION ON THE SCORES

Davi Pharm Company Limited was established in 2004 with the former name of Dat Vi Phu Trading And Producing Company Limited and Business Registration No 4602001093 which was issued by Planning & Investment Department of Binh Duong Province. Since 13 March 2006, the subject has been re-named Davi Pharm Company Limited. Its current registered capital is VND 30 billion. The head office of the subject is located in Lot M7A-CN - Road D17- My Phuoc Industrial zone- Ben Cat District - Binh Duong Province, and its branch is located at No 39 - Street No.2- Lu Gia Housing Compound-Ward 15 – 11^th District - Ho Chi Minh City.

Office and factories of the subject locating in a 20,000 square meter area. Construction was divided into two phases. In 2004, the office block and factory were built in the area of 10,000m². Its factory was started operating in November 2005. Since 2010, the subject has expanded its production by building in the rest 10,000 square meter area.

At present, the main business of subject is producing and trading medicine and pharmaceutical product to serve the domestic market and exporting products to Africa and Asia countries. The subject imports goods such as packaging, pack, plastic bag, semi-finished products, equipment and machinery from India and Japan market.

The managers have a lot of experience in this area. Its deputy director - Mr. Pham Tai Truong - used to be director of another pharmaceutical trading company named T.D Pharmaceutical Co., Ltd. This company’s address is at No. 299/19/2- Ly Thuong Kiet Street- Ward 15- District 11- Ho Chi Minh City. He also works for PHD Trading Co., Ltd. PHD Co., Ltd is located at No. 1/110 Lu Gia Housing Compound- Ward 15- Dist 10- Ho Chi Minh City and also specializes in pharmaceutical.

The management capabilities, facilities and organization of Subject are normal.

The subject’s business field is a potential field in Vietnam recently. It is necessary for the subject to invest with a long time strategy to have a good competitive capability and a good position in the industry. The B credit rating estimate on this subject expresses that this subject has capacity to deal with small.

INDUSTRY DATA


Industry code	Growth speed (%)		Total employees 2009 (Thousand)	Total enterprises	Annual average capital of enterprises
Industry code	Predict 2010	2009	Total employees 2009 (Thousand)	Total enterprises	Annual average capital of enterprises
Agriculture, Forestry and Fishing	2.8	3.0	24,788.5	2,399	50,530
Trade and Services	7.5	11	10,517.9	79,181	1,754,973
Construction	7	11.3	2,692.8	17,783	248,268
Manufacturing	12	7.6	7,591.2	30,786	967,068

ECONOMIC INDICATORS


	2010	2009	2008
Population (Million person)	86.93	86.02	86.1
Gross Domestic Products (US$ billion)	102.2	91	84.9
GDP Growth (%)	6.78	5.32	6.2
GDP Per Capita (US$)	1,160	1,080	1,040
Inflation (% Change in Composite CPI)	11.75	6.88	24.4

SERVICE TRADE PERFORMANCE


Billion USD	2010	2009	2008
Exports	71.6	56.6	62.9
Imports	84	68.8	76.6
Trade Balance	-12.4	-12.2	-14.6

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.12
UK Pound	1	Rs.73.43
Euro	1	Rs.62.32

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.

MIRA INFORM REPORT

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status

ADDRESSES

DIRECTORS

BUSINESS NATURE AND ACTIVITIES

IMPORT & EXPORT ACTIVITIES

BANKERS

SHAREHOLDERS

FINANCIAL DATA

Unit: One VND

ASSETS

LIABILITIES

Unit: 1,000,000 VND

INTERPRETATION ON THE SCORES

INDUSTRY DATA

ECONOMIC INDICATORS

SERVICE TRADE PERFORMANCE

Unit