MIRA INFORM REPORT

Report Date :

28.05.2012

IDENTIFICATION DETAILS

Name :	VEDIC FANXIPANG PHARMA CHEMIC COMPANY LIMITED
Registered Office :	Lot D Le Mon IP, Thanh Hoa City, Thanh Hoa Province
Country :	Vietnam
Financials (as on) :	31.12.2011
Year of Establishment :	2006
Legal Form :	Limited Liability Company
Line of Business :	manufacture and export of artemisinin
No. of Employees :	17

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 – March 31^st, 2012

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	VEDIC FANXIPANG PHARMA CHEMIC COMPANY LIMITED
Vietnamese Name	CONG TY TNHH HOA DUOC VEDIC FANXIPANG
Type of Business	Limited liability company
Year Established	2006
Investment Certificate No	262023000098
Date Of Issuance	19 May 2011
Place of Issuance	Nghi Son Industrial Zone Authority
Registered Investment Capital	USD 4,300,000
Chartered capital	USD 3,000,000
Status	Unlisted
Tax code	2800936472
Total Employees	17
Size	Small

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Shareholders: Fanxipang Construction and Investment Joint Stock Company (in Vietnam) Changed to: Sequent Scientific Company Limited (in India)	19 May 2011

company ADDRESSES

Head Office
Address	Lot D Le Mon IP, Thanh Hoa City, Thanh Hoa Province, Vietnam
Telephone	(84-37) 3913443
Fax	(84-37) 3913442

DIRECTORS

1. NAME	Mr. LE NHAT THANG
Position	General Director
Date of Birth	02 Apr 1978
ID Number/Passport	011899573
ID Issue Date	04 Dec 2006
ID Issue Place	Hanoi Police Station
Resident	No 125 Yen Lac, Hai Ba Trung District, Ha Noi City, Vietnam
Nationality	Vietnamese
2. NAME	Ms. DANG MINH NGUYET
Position	Chief Accountant
Nationality	Vietnamese
Tel/Mobil phone	++84978 360 999
Email	minh.dangnguyet08@gmail.com

BUSINESS NATURE AND ACTIVITIES

The subject is specializing in manufacture and export of artemisinin.

IMPORT & EXPORT ACTIVITIES

IMPORT:
Note: Currently, the subject does not import
EXPORT:
· Types of products	artemisinin
· Market	India
· Ratio	100%

BANKERS

1. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT BA DINH BRANCH
Address	Ba Dinh Town, Thanh Hoa City, Thanh Hoa Province, Vietnam

SHAREHOLDERS

1. NAME	VEDIC ELEMENTS PRIVATE COMPANY LIMITED
Business Registration	08/26027
Address	Strides House Bilekanalli Bannerghatta Bangalore 560076, India
Value of shares	USD 2,700,000
Percentage	90%
2. NAME	SEQUENT SCIENTIFIC COMPANY LIMITED
Business Registration	L99999MH1985PL036685
Address	No 116 Vardharnan INDL Complex, LBS Marg, Thane West, India
Value of shares	VND 300,000
Percentage	10%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	36,945,181,285	33,755,890,346
I. Cash and cash equivalents	6,442,142,711	15,548,485,361
1. Cash	6,442,142,711	15,548,485,361
2. Cash equivalents	0	0
II. Short-term investments	0	0
1. Short-term investments	0	0
2. Provisions for devaluation of short-term investments	0	0
III. Accounts receivable	10,944,374,888	283,483,422
1. Receivable from customers	0	0
2. Prepayments to suppliers	10,944,374,888	161,154,876
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	0	122,328,546
6. Provisions for bad debts	0	0
IV. Inventories	19,080,693,652	17,175,843,494
1. Inventories	19,080,693,652	17,175,843,494
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	477,970,034	748,078,069
1. Short-term prepaid expenses	0	0
2. VAT to be deducted	477,970,034	748,078,069
3. Taxes and other accounts receivable from the State	0	0
4. Other current assets	0	0
B. LONG-TERM ASSETS	14,464,341,728	9,632,368,515
I. Long term accounts receivable	0	0
1. Long term account receivable from customers	0	0
2. Working capital in affiliates	0	0
3. Long-term inter-company receivable	0	0
4. Other long-term receivable	0	0
5. Provisions for bad debts from customers	0	0
II. Fixed assets	14,225,184,124	9,379,944,951
1. Tangible assets	14,225,184,124	9,379,944,951
- Historical costs	18,659,374,654	12,654,901,465
- Accumulated depreciation	-4,434,190,530	-3,274,956,514
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	0	0
- Initial costs	0	0
- Accumulated amortization	0	0
4. Construction-in-progress	0	0
III. Investment property	0	0
Historical 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 long-term investments	0	0
V. Other long-term assets	239,157,604	252,423,564
1. Long-term prepaid expenses	0	0
2. Deferred income tax assets	0	0
3. Other long-term assets	239,157,604	252,423,564
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	51,409,523,013	43,388,258,861
LIABILITIES
A- LIABILITIES	26,495,880,054	14,644,885,435
I. Current liabilities	4,489,097,733	1,392,485,435
1. Short-term debts and loans	0	0
2. Payable to suppliers	2,146,683,432	1,307,311,787
3. Advances from customers	685,807,513	0
4. Taxes and other obligations to the State Budget	1,683,528	1,683,528
5. Payable to employees	0	0
6. Accrued expenses	1,654,923,260	83,490,120
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	0	0
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	22,006,782,321	13,252,400,000
1. Long-term accounts 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	22,006,782,321	13,252,400,000
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	0	0
7. Provisions for long-term accounts payable	0	0
B- OWNER’S EQUITY	24,913,642,959	28,743,373,426
I. OWNER’S EQUITY	24,913,642,959	28,743,373,426
1. Capital	47,179,436,808	45,127,368,601
2. Share premiums	0	0
3. Other sources of capital	0	0
4. Treasury stocks	0	0
5. Differences on asset revaluation	0	0
6. Foreign exchange differences	0	0
7. Business promotion fund	0	0
8. Financial reserved fund	0	0
9. Other funds	0	0
10. Retained earnings	-22,265,793,849	-16,383,995,175
11. Construction investment fund	0	0
II. Other sources and funds	0	0
1. Bonus and welfare funds	0	0
2. Sources of expenditure	0	0
3. Fund to form fixed assets	0	0
MINORITY’S INTEREST	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	51,409,523,013	43,388,258,861

PROFIT & LOSS STATEMENT
Description	FY2011	FY2010
1. Total Sales	23,424,648,000	0
2. Deduction item	0	0
3. Net revenue	23,424,648,000	0
4. Costs of goods sold	23,566,664,525	0
5. Gross profit	-142,016,525	0
6. Financial income	1,390,863,255	43,544,705
7. Financial expenses	2,999,877,727	67,775,134
- In which: Loan interest expenses	1,654,944,680	0
8. Selling expenses	0	0
9. Administrative overheads	4,361,795,953	535,455,976
10. Net operating profit	-6,112,826,950	-559,686,405
11. Other income	473,612,115
12. Other expenses	242,583,839	995,596,597
13. Other profit /(loss)	231,028,276	-995,596,597
14. Total accounting profit before tax	-5,881,798,674	-1,555,283,002
15. Current corporate income tax	0	0
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies		0
18. Profit after tax	-5,881,798,674	-1,555,283,002

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	FY2010	Average Industry
Current liquidity ratio	8.23	24.24	1.65
Quick liquidity ratio	3.98	11.91	1.04
Inventory circle	1.30	-	4.14
Average receive period	170.53	-	105.37
Utilizing asset performance	0.46	-	1.20
Liability by total assets	51.54	33.75	53.11
Liability by owner's equity	106.35	50.95	159.74
Ebit / Total assets (ROA)	-8.22	-3.58	10.37
Ebit / Owner's equity (ROE)	-16.97	-5.41	23.03
Ebit / Total revenue (NPM)	-18.04	-	10.15
Gross profit / Total revenue (GPM)	-0.61	-	25.88
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CASH FLOW STATEMENT
(Direct method)
Items	FY2011	FY2010
I. Cash flows from operating activities
1.Cash received from customers	24,398,174,443
2. Cash paid to suppliers	-37,479,072,937	-45,969,621
3. Cash paid to employees	-1,445,809,078	-360,000,000
4. Interest paid
5. Income taxes paid
6. Other operating cash receipts	2,195,255,096
7. Other operating payments	-64,657,640
Net cash flows from operating activities	-12,396,110,116	-405,969,621
II. Cash flows from investing activities
1. Purchases and construction of fixed assets and other long-term assets	-6,004,473,189	-14,264,000
2. Gains from disposals and liquidation of fixed assets and other long-term assets
3. Loans given and purchases of debt instruments of other entities
4. Recovery of loans given and disposals of debt instruments of other entities
5. Investments into other entities
6. Withdrawals of investments in other entities
7. Receipts of loan interests, dividends and profit shared	22,265,218
Net cash flows from investing activities	-5,982,207,971	-14,264,000
III. Cash flows from financing activities
1. Gains from stock issuance and capital contributions from shareholders	2,052,068,207	2,153,814,876
2. Repayment for capital contributions and re-purchases of stocks already issues
3. Short-term and long-term loans received	12,347,500,000	13,252,400,000
4. Loan principal amounts repaid	-5,075,018,103
5. Payments for financial leasehold assets
6. Dividends and profit already paid to the owners
Net cash flows from financing activities	9,324,550,104	15,406,214,876
Net cash flows during the year	-9,053,767,983	14,985,981,255
Beginning cash and cash equivalents	15,548,485,361	941,131,975
Effects of fluctuations in foreign exchange rates	-52,574,667	35,098,531
Ending cash and cash equivalents	6,442,142,711	15,962,211,761

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Normal
Liquidity	High
Payment status	Average
Financial Situation	Average
Development trend	Negative
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	TT and LC
Sale Methods	To contracts
Public opinion	Normal

INTERPRETATION ON THE SCORES

VEDIC FANXIPANG PHARMA CHEMIC COMPANY LIMITED was established in 2006 as a joint venture company between Vietnam and India. The subject had USD 3 million of chartered capital, in which Vedic Elements Private Co.,Ltd held 90% shares of the subject and remain belonged the Vietnamese company, Fanxipang Construction and Investment Joint Stock Company. Then, in May 2009 that Vietnamese company transferred its shares to another company named Sequent Scientific Company Limited (in India), the subject became 100% invested company.

Business of the subject is manufacture and export of artemisinin. It is using in the treatment of malaria and skin diseases. It has officially gone into manufacture total system of the project since August 2011. All of products are exported to India. In the plan, the subject is going to import materials from India. Previously, it imported machines for production from China, Singapore and India.

Factory and head office of the subject is at Lot D Le Mon IP, Thanh Hoa City, Thanh Hoa Province, Vietnam. The subject is a small company with only 17 employees. Its General director is Mr. Le Nhat Thang. He is Vietnamese. Premise and facilities of the subject is normal.

On the hand of finance, the subject is assessed average. In 2010 the subject had not run business officially yet, so it had not have revenue. Next to 2011, it reached VND 23,424 million of total sale. Amounts of revenue and total asset are normal comparison with its scale business. In the first years of manufacturing, the subject still lost business and it is expected to get profit in the coming time.

In short, the subject is still a new and small company in the field business. Its financial strengthen is normal and it can meet small financial commitments.

APPENDIX

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)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,749		23,896.3	81,559
Industry and Construction	5.53	7.70	85,115		10,630	2,751,975
Trade and Services	6.69	7.52	154,978		14,522	4,939,069
ECONOMIC INDICATORS
			2011	2010		2009
Population (Million person)			87.84	86.93		86.02
Gross Domestic Products (USD billion)			119	102.2		91
GDP Growth (%)			5.89	6.78		5.32
GDP Per Capita (USD/person/year)			1,300	1,160		1,080
Inflation (% Change in Composite CPI)			18.58	11.75		6.88
State Budget Deficit compared with GDP (%)			4.9	5.8		6.9
SERVICE TRADE PERFORMANCE
Billion USD			2011	2010		2009
Exports			96.3	72.2		57.1
Imports			105.8	84.8		69.9
Trade Balance			-9.5	-12.6		-12.8

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.73
UK Pound	1	Rs.87.26
Euro	1	Rs.69.89

INFORMATION DETAILS

Report Prepared by :

MNL

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.