MIRA INFORM REPORT

Report Date :

08.06.2012

IDENTIFICATION DETAILS

Name :	MAYCOSMETIC MEDICINE JOINT STOCK COMPANY
Registered Office :	No. 53-55 Dien Bien Phu Str - Dakao Ward - District 1 - Ho Chi Minh
Country :	Vietnam
Financials (as on) :	31.12.2011
Date of Incorporation :	2002
Com. Reg. No.:	4103003265
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.
No. of Employees :	99

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, 2011

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
Vietnam	B1	B1

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 (registration)	MAYCOSMETIC MEDICINE JOINT STOCK COMPANY
Vietnamese Name (registration)	CONG TY CO PHAN DUOC MY PHAM MAY
Short name (registration)	MAY COSMEDIC JSC
Type of Business	Joint stock company
Year Established	2002
Business Registration No.	4103003265
Date of 01^st Registration	04 Apr 2005
Date of 07^th Adjustment	30 May 2008
Place of Registration	Business Registration Office- Planning and Investment Department of Ho Chi Minh City
Current registered capital	VND 36,000,000,000
Tax code	0302854463
Total Employees	99
Size	Medium

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Registered English Name: MAY COSMETICS MEDICINE CO., LTD Changed to: MAY COSMETIC MEDICINE JOINT STOCK COMPANY	04 Apr 2005
2	Subject has got former Registered Vietnamese Name: CONG TY TNHH DUOC- MY PHAM MAY Changed to: CONG TY CO PHAN DUOC MY PHAM MAY	04 Apr 2005
3	Subject has got former Type of Business: Liability limited company Changed to: Joint Stock Company	04 Apr 2005
4	Subject has got former Business Registration No: 4102013231 which was issued on December 23^rd, 2002 Changed to: 4103003265	04 Apr 2005

ADDRESSES

Head Office
Address	No. 53-55 Dien Bien Phu Str - Dakao Ward - District 1 - Ho Chi Minh City - Vietnam
Telephone	(84-8) 39105022, 39104955, 39103641, 39101121
Fax	(84-8) 39105023
Email	maycosmedic@hcm.vnn.vn
Occupied Area	600m^2
Workshop Address
Address	No. 930B2 Road B - Cat lai Industry Zone - Thanh My Loi Ward - District 2- Ho Chi Minh City - Vietnam
Occupied Area	11,000m^2

DIRECTORS

1. NAME	Ms. NGUYEN THI TU
Position	Director – Legal Representer
Date of Birth	10 Aug 1952
ID Number/Passport	020096036
ID Issue Date	20 Jun 1997
ID Issue Place	Police Station of Hochiminh City
Resident	No. 16 Nguyen Thanh Y Str - Dakao Ward - District 1- Ho Chi Minh City - Vietnam
Current Resident	No. 33 Tran Qui Khoach Str - Tan Dinh Ward - District 1 - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Qualification	Management
2. NAME	Mr. KIEU MINH
Position	Vice Director
Resident	Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Qualification	Bachelor
3. NAME	Ms. KIEU THUY MAI
Position	Vice Director (In charge of foreign affairs)
Resident	Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Qualification	Bachelor
4. NAME	Ms. DONG THI THE THUAN
Position	Chief of accountant
Resident	Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Qualification	Bachelor
5. NAME	Ms. NGUYEN THI MAI HUONG
Position	Manager of Export & Import Department
Resident	Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Email	maihuong@cosmetic.com

BUSINESS NATURE AND ACTIVITIES

The subject registered operating 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 packaging milk and food
  - Workshop, housing for rent

IMPORT & EXPORT ACTIVITIES

IMPORT:
Types of products	Vacxin, medicine
Market	France, China, India, Germany, Singapore
EXPORT:
Market	N/A

BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM NAM TAN THUAN BRANCH
Address	Tan Thuan Export Processing Zone - District 7 - Ho Chi Minh City - Vietnam
Telephone	84-8 37701634
Fax	84-8 37701635
2. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK
Address	8^th Floor, Vincom Center - No. 72 Le Thanh Ton Str - Ben Nghe Ward - District 1 - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3821 0056
Fax	(84-8) 3821 6913
Foreign Currency Account	2000 1485 1080 873 (USD)
VND Account	2000 1485 1002 710 (VND)
SWIFT Code	EBVIVNVX

SHAREHOLDERS

Following are its registration shareholders:
1. NAME	Ms. NGUYEN THI TU
Position	Director – Legal representer
Date of Birth	10 Aug 1952
ID Number/Passport	020096036
Issued on	20 Jun 1997
Issued Place	Police statement of Hochiminh City
Resident	No. 16 Nguyen Thanh Y Str - Dakao Ward - District 1 - Ho Chi Minh City - Vietnam
Current Resident	No. 33 Tran Qui Khoach Str - Tan Dinh Ward - District 1 - Ho Chi Minh City – Vietnam
Nationality	Vietnamese
Number of Shares	35,000
Value of shares	VND 3,500,000,000
Percentage	9.722%
2. NAME	Mr. KIEU DUC HOA
ID Number/Passport	023663354
Resident	No. 214 Dien Bien Phu Str - Ward 7 -District 3 - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Number of Shares	10,000
Value of shares	VND 1,000,000,000
Percentage	2.778%
3. NAME	Ms. NGUYEN THI TUYET
ID Number/Passport	023381321
Resident	No. 282/B3 Bui Huu Nghia Str - Ward 2 - Binh Thanh District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Number of Shares	5,000
Value of shares	VND 500,000,000
Percentage	1.389%
4. NAME	Mr. TRAN VAN KHOAT
ID Number/Passport	021585275
Resident	No. 282/B3 Bui Huu Nghia Str - Ward 2 - Binh Thanh District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Number of Shares	4,000
Value of shares	VND 400,000,000
Percentage	1.111%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011		31/12/2010			31/12/2009
Number of weeks	52		52			52
ASSETS
A – CURRENT ASSETS	213,550,000,000		163,647,000,000			183,243,592,388
I. Cash and cash equivalents	2,081,000,000		4,026,000,000			11,543,737,976
1. Cash	2,081,000,000		4,026,000,000			11,543,737,976
2. Cash equivalents	0		0			0
II. Short-term investments	0		0			0
1. Short-term investments	0		0			0
2. Provisions for devaluation of short-term investments	0		0			0
III. Accounts receivable	75,889,000,000		42,198,000,000			74,989,491,215
1. Receivable from customers	74,426,000,000		41,627,000,000			74,738,472,414
2. Prepayments to suppliers	1,061,000,000		0			0
3. Inter-company receivable	0		0			251,018,801
4. Receivable according to the progress of construction	0		0			0
5. Other receivable	402,000,000		571,000,000			0
6. Provisions for bad debts	0		0			0
IV. Inventories	135,580,000,000		114,658,000,000			96,538,233,916
1. Inventories	135,580,000,000		114,658,000,000			96,538,233,916
2. Provisions for devaluation of inventories	0		0			0
V. Other Current Assets	0		2,765,000,000			172,129,281
1. Short-term prepaid expenses	0		0			0
2. VAT to be deducted	0		0			0
3. Taxes and other accounts receivable from the State	0		0			0
4. Other current assets	0		2,765,000,000			172,129,281
B. LONG-TERM ASSETS	70,974,000,000		74,520,000,000			32,536,995,635
I. Long term accounts receivable	0		0			0
1. Long term account receivable from customers	0		0			0
2. Working capital in affiliates	0		0			0
3. Long-term inter-company receivable	0		0			0
4. Other long-term receivable	0		0			0
5. Provisions for bad debts from customers	0		0			0
II. Fixed assets	70,974,000,000		74,520,000,000			32,536,995,635
1. Tangible assets	70,974,000,000		74,520,000,000			32,536,995,635
- Historical costs	85,564,000,000		83,143,000,000			37,122,058,184
- Accumulated depreciation	-14,590,000,000		-8,623,000,000			-4,585,062,549
2. Financial leasehold assets	0		0			0
- Historical costs	0		0			0
- Accumulated depreciation	0		0			0
3. Intangible assets	0		0			0
- Initial costs	0		0			0
- Accumulated amortization	0		0			0
4. Construction-in-progress	0		0			0
III. Investment property	0		0			0
Historical costs	0		0			0
Accumulated depreciation	0		0			0
IV. Long-term investments	0		0			0
1. Investments in affiliates	0		0			0
2. Investments in business concerns and joint ventures	0		0			0
3. Other long-term investments	0		0			0
4. Provisions for devaluation of long-term investments	0		0			0
V. Other long-term assets	0		0			0
1. Long-term prepaid expenses	0		0			0
2. Deferred income tax assets	0		0			0
3. Other long-term assets	0		0			0
TOTAL ASSETS	284,524,000,000		238,167,000,000			215,780,588,023
LIABILITIES
A- LIABILITIES	234,392,000,000		189,123,000,000			178,436,305,810
I. Current liabilities	211,080,000,000		189,123,000,000			178,436,305,810
1. Short-term debts and loans	47,474,000,000		72,581,000,000			51,582,778,704
2. Payable to suppliers	152,868,000,000		105,447,000,000			115,870,065,822
3. Advances from customers	2,694,000,000		0			2,580,632,023
4. Taxes and other obligations to the State Budget	8,009,000,000		4,581,000,000			6,636,389,725
5. Payable to employees	0		0			0
6. Accrued expenses	0		0			0
7. Inter-company payable	0		0			0
8. Payable according to the progress of construction contracts	0		0			0
9. Other payable	35,000,000		6,514,000,000			1,766,439,536
10. Provisions for short-term accounts payable	0		0			0
II. Long-Term Liabilities	23,312,000,000		0			0
1. Long-term accounts payable to suppliers	0		0			0
2. Long-term inter-company payable	0		0			0
3. Other long-term payable	0		0			0
4. Long-term debts and loans	23,045,000,000		0			0
5. Deferred income tax payable	0		0			0
6. Provisions for unemployment allowances	267,000,000		0			0
7. Provisions for long-term accounts payable	0		0			0
B- OWNER’S EQUITY	50,132,000,000		49,044,000,000			37,344,282,213
I. OWNER’S EQUITY	49,543,000,000		48,455,000,000			36,755,023,286
1. Capital	36,000,000,000		36,000,000,000			36,000,000,000
2. Share premiums	0		0			0
3. Other sources of capital	0		0			0
4. Treasury stocks	0		0			0
5. Differences on asset revaluation	0		0			0
6. Foreign exchange differences	0		0			0
7. Business promotion fund	0		0			0
8. Financial reserved fund	0		0			0
9. Other funds	0		0			0
10. Retained earnings	13,543,000,000		12,455,000,000			755,023,286
11. Construction investment fund	0		0			0
II. Other sources and funds	589,000,000		589,000,000			589,258,927
1. Bonus and welfare funds	589,000,000		589,000,000			0
2. Sources of expenditure	0		0			589,258,927
3. Fund to form fixed assets	0		0			0
MINORITY’S INTEREST	0		0
TOTAL LIABILITIES AND OWNER’S EQUITY	284,524,000,000		238,167,000,000			215,780,588,023
PROFIT & LOSS STATEMENT
Description	FY2011		FY2010			FY2009
1. Total Sales	445,902,000,000		424,035,000,000			377,149,159,779
2. Deduction item	0		0			0
3. Net revenue	445,902,000,000		424,035,000,000			377,149,159,779
4. Costs of goods sold	378,505,000,000		365,179,000,000			318,628,185,182
5. Gross profit	67,397,000,000		58,856,000,000			58,520,974,597
6. Financial income	42,000,000		878,000,000			67,934,622
7. Financial expenses	20,547,000,000		24,119,000,000			17,917,017,151
- In which: Loan interest expenses	6,874,000,000		5,610,000,000			2,715,189,432
8. Selling expenses			9,878,000,000			16,344,244,237
9. Administrative overheads	35,869,000,000		20,251,000,000			8,952,883,053
10. Net operating profit	11,023,000,000		5,486,000,000			15,374,764,778
11. Other income	16,357,000,000		11,006,000,000			7,684,409,207
12. Other expenses	0		0			0
13. Other profit /(loss)	16,357,000,000		11,006,000,000			7,684,409,207
14. Total accounting profit before tax	27,380,000,000		16,492,000,000			23,059,173,985
15. Current corporate income tax	4,791,000,000		4,123,000,000			4,035,355,448
16. Deferred corporate income tax	0		0			0
17. Interest from subsidiaries/related companies	0
18. Profit after tax	22,589,000,000		12,369,000,000			19,023,818,537
FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	FY2010		FY2009	Average Industry
Current liquidity ratio	1.01	0.87		1.03	1.65
Quick liquidity ratio	0.37	0.26		0.49	1.04
Inventory circle	2.79	3.18		3.30	4.14
Average receive period	62.12	36.32		72.57	105.37
Utilizing asset performance	1.57	1.78		1.75	1.20
Liability by total assets	82.38	79.41		82.69	53.11
Liability by owner's equity	467.55	385.62		477.81	159.74
Ebit / Total assets (ROA)	12.04	9.28		11.94	10.37
Ebit / Owner's equity (ROE)	68.33	45.07		69.02	23.03
Ebit / Total revenue (NPM)	7.68	5.21		6.83	10.15
Gross profit / Total revenue (GPM)	15.11	13.88		15.52	25.88
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Normal
Liquidity	Low
Payment status	Average
Financial Situation	Above Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Direct payment or through its corresponding bank (L/C or by T/T, D/A, D/P)
Sale Methods	Wholesaler

INTERPRETATION ON THE SCORES

The subject was established in 2002 as a limited liability company under the Business Registration No. 4102013231. Since 04 Apr 2005, the subject has been changed into joint stock company with English Name “MAYCOSMETIC MEDICINE JOINT STOCK COMPANY”. Currently, the subject is operating under the Business Registration No. 4103003265 with chartered capital VND 36 billion.

The subject is specialized in trading in medicine cosmetic, equipment for health, vaccine, milk and confectionery. The subject has imported medicine, and equipment for health almost from French market. In addition, the subject imports from China, India, Germany, Singapore. The subject was the distributor of the famous brands such as: NUTRIBIO, NUTRA LIFE, SANOPASTEUR, KOTRA, REMY PANNIER… The subject has a workshop locating in an 11,000 square meter area in Cat Lai Industrial Zone- Dist 2- Hochiminh City. This subject has built a wide range of core agents in most of provinces and cities in Viet Nam and gained the stable foothold in its operating industry.

According to the financial data, total assets, revenue of the subject increases year after year. In 2010, current assets decreased lightly. Cash and cash equivalents decreased by 65.12% and receivable accounts decreased by 43.73% while inventories increased by 18.77%. So liquidity ratios were lower than in 2009 and industry average ratios. Amount of tangible assets raised remarkably and in new means partly that this subject is on the road of expanding and development business activities. In 2011, revenue of the subject was 445,902,000,000 VND and profit after tax was VND 22,589,000,000 VND (increased by 82.63% in comparision with profit 2010). By increasing stably in revenue, most of operating ratios of this subject is quite relative than other competitors working in the same field. Nonetheless, using high financial leverage for reserving inventories and contributing in receivable account which made this subject fall in risk of liquidity if having fluctuation in medicine market. ROA and ROE in 2011 were higher than in 2010 and industry average ratios.Thank to stable development of medicine industry, this subject shall have a long way for blooming.

The BB credit rating on this subject reflects that this subject has good expectation in the future and capacity to deal with all small and medium business transactions.

INDUSTRY DATA
Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2009		Total employees 2010 (Thous.pers.)	Annual average capital of enterprises 2009 (billion dongs)
	2010	2009
Agriculture, Forestry and Fishing	2.78	1.82	8,749		23,896.3	81,559
Industry and Construction	7.70	5.52	85,115		10,630	2,751,975
Trade and Services	7.52	6.63	154,978		14,522	4,939,069
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			72.2	57.1		62.7
Imports			84.8	69.9		80.7
Trade Balance			-12.6	-12.8		-18

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.14
UK Pound	1	Rs.85.22
Euro	1	Rs.69.24

INFORMATION DETAILS

Report Prepared by :

SDA

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.