MIRA INFORM REPORT

Report Date :

31.07.2007

IDENTIFICATION DETAILS

Name :	VINH PHUC PHARMACEUTICAL JOINT STOCK COMPANY
Registered Office :	10 To Hieu Str, Vinh Yen Town, Vinh Phuc Province
Country :	Vietnam
Date of Incorporation :	1996
Legal Form :	Joint Stock Company
Line of Business :	Producing and trading in pharmaceutical products, chemicals, and cosmetics Trading medical materials and equipment

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 :	Usually correct
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name				VINH PHUC PHARMACEUTICAL JOINT STOCK COMPANY
Vietnamese name				CONG TY CO PHAN DUOC PHAM VINH PHUC
Trade name				VINPHACO
Former name				VINHPHUC PHARMACEUTICAL MEDICAL SUPPLY COMPANY
Current legal status				Joint Stock Company
Former legal status				State Owned Company
Founded				1996
Equitization				June 23^rd 2004
Business Registration No.				1903000089
Date of issuance				June 23rd 2004
Place of issuance				Vinh Phuc of Planning and Investment Department
Registered capital total				17,832,000,000.00 VND
Tax code				2500154594
Total Employees				350 employees
Qualification				Qualified
ADDRESSES
Head Office
Address	10 To Hieu Str, Vinh Yen Town, Vinh Phuc Province
Country	Vietnam
Tel	(84-211) 861233
Fax	(84-211) 862774
Branch in Hanoi City:
Address	No. 9, Lane.55, Huynh Thuc Khang Str., Hanoi City
Country	Vietnam
Tel	(84-4) 7733959
Fax	(84-4) 7733932
DIRECTORS
2. NAME	DO VAN DOANH
Position	Director
Date of birth	November 10^th 1957
ID No.	135180034
Issued on	September 10^th 2002
Issued by	Vinh Phuc Police Station
Nationality	Vietnamese
1. NAME	Mr, DO NGOC SON
Position	Chief of Branch in Hanoi city
Nationality	Vietnamese
BUSNESS ACTIVITIES
Following are the main business activities of the Subject:
· Producing and trading in pharmaceutical products, chemicals, and cosmetics · Trading medical materials and equipment · Import – export pharmaceutical products and medical materials
IMPORT & EXPORT ACTIVITIES
IMPORT: The Subject imports from South Korea, India, France and Germany, China
EXPORT: The Subject exports to Laos.
BANKERS
1. BANK FOR INVESTMENT AND DEVELOPMENT OF VIET NAM – Branch in Vinh Phuc
Address		No. 8 Kim Ngoc Str, Vinh Phuc Town, Vinh Phuc Province
Tel		(84-211) 862761
Fax No		(84-211) 862510
Acc No		42510000000088
Note: The given address of banker is not correct.
2. BANK FOR FOREIGN TRADE OF VIET NAM
Address		No. 198 Tran Quang Khai Str, Hoan Kiem Dist, Hanoi City
Tel		(84-4) 9343137
Fax No		(84-4) 8269067
Telex		411504/411229 VCB - VT
Swift		BFTV VNVX
SHAREHOLDERS
1. NAME			Mr. DO VAN DOANH
Position			Director
Date of birth			November 10^th 1957
ID No.			135180034
Issued on			September 10^th 2002
Issued by			Vinh Phuc Police
Nationality			Vietnamese
Share			9,170 shares
2. NAME			Mr. TRAN NGOC SENH
Position			Deputy director
Current address			No. 153 Trung Liet Str., Dong Da Dist., Hanoi City
Tel home			(84-4) 8573625
Mobil			+84 0913205430
Share			3,560 shares
3. NAME			Mrs. VU THI BINH
Position			Shareholder
Current address			Vinh Phuc Province
National			Vietnamese
Share			3,528 shares
4. NAME			Mrs. NGUYEN THI HUAN
Position			Shareholder
Current address			Vinh Phuc Province
National			Vietnamese
Share			3,650 shares
5. NAME			Mrs. TRAN THI THUY
Position			Shareholder
Current address			Vinh Phuc Province
National			Vietnamese
Share			3,540 shares
PAYMENT HISTORY AND EXPERIENCES
Trade Morality					Fairly
Liquidity					Normal
Former payment					Normal
Current Payment					Prompt
Former financial situation					Normal
Current Financial Situation					Developed
Litigation Data					No recorded
Bankruptcy					No recorded
FINANCIAL DATA
The full financial data of company is not available in latest years. Following is its financial highlight:
Unit: VND Million
Description							2005
Short-term Assets							52,019
Long term Assets							21,620
Total Assets							73,639
Payable							67,543
Owner’s Equity							6,096
Total liability and owner’s equity							73,639
Total Revenues							157,750
Deduction items							2,641
Net Revenue							155,109
Profit from business activities							755
Total pre-tax profit							755
BALANCE SHEET
Unit: 1,000,000 VND
Description						FY 2003		FY2002
Balance Sheet Date						31/12/2003		31/12/2002
ASSETS
A. Working assets & short-term Investment						59,718		45,023
I. Cash and cash equivalents						1,588		709
II. Short-term investment						0		0
1. Short-term securities investment						0		0
2. Other short-term investment						0		0
3. Provision for short-term investment						0		0
III. Receivables						49,005		36,982
1. Receivables from customers						43,584		4,796
2. Prepayment for providers						3,163		277
3. Value-added tax deducted						107		803
4. Internal receivables						1,885		30,861
5. Other receivables						266		245
6. Provision for bad receivables						0		0
IV. Inventory						8,820		7,175
1. Purchased goods in transit						0		0
2. Raw materials						4,834		4,424
3. Instrument, tools						8		7
4. Cost for production and business in process						883		413
5. End products						1,495		1,433
6. Goods						871		898
7. Goods on consignment						729		0
8. Provision for devaluation of stocks						0		0
V. Other current assets						305		157
1. Advances						123		130
2. Prepaid expenses						182		27
3. Pending expenses for transfer						0		0
4. Pending assets						0		0
5. Mortgage, collateral and short run collateral						0		0
VI. Administrative						0		0
1. Administrative expenses for previous year						0		0
2. Administrative expenses for current year						0		0
B. Fixed assets & Long term investment						13,169		4,497
I. Fixed assets						2,951		3,717
1. Tangible fixed assets						2,951		3,717
+ Original cost						11,553		10,063
+ Accumulated depreciation value						-8,602		-6,346
2. Financial leasing fixed assets						0		0
+ Original cost						0		0
+ Accumulated depreciation value						0		0
3. Intangible fixed assets						0		0
+ Original cost						0		0
+ Accumulated depreciation value						0		0
II. Long term investment						0		0
1. Long-term securities investment						0		0
2. Joint-venture capital contribution						0		0
3. Other long-term investment						0		0
4. Provision for long-term investment devaluation						0		0
III. Capital construction in process						10,218		780
IV. Other						0		0
TOTAL ASSETS						72,887		49,520
LIABILITIES
A. Payable loans						67,435		44,221
I. Short term payables						56,361		41,251
1. Short-term borrowings						30,508		20,694
2. Due long-term liabilities						0		0
3. Payables to supplier						25,347		17,582
4. Prepayment of buyer						68		48
5. Taxes and accounts dutiable						-316		1,281
6. Employee payments						564		657
7. Internal payables						0		924
8. Other payables						190		65
II. Long term loans						11,074		2,970
1. Long-term borrowings						8,614		446
2. Long-term payables						2,460		2,524
III. Other payables						0		0
1. Payable expenses						0		0
2. Pending assets						0		0
3. Receipts long-term collateral and deposit						0		0
B. Owner’s Equity:						5,452		5,299
I. Capital and Funds						5,295		5,209
1. Working capital						5,100		5,100
2. Differences from asset revaluation						0		0
3. Exchange rate differences						0		0
4. Development investment funds						195		109
5. Reserved funds						0		0
6. Retained profit						0		0
7. Construction capital sources						0		0
II. Other administrative and fund sources						157		90
1. Provident funds for unemployment						0		0
2. Reward and welfare funds						157		90
3. Management funds of higher level						0		0
4. Functional operation funds						0		0
5. Fund sources formed by fixed assets						0		0
TOTAL LIABILITY AND EQUITY:						72,887		49,520
PROFIT & LOSE ACCOUNT
Description						FY 2003
Total revenue						164,861
Deductions Items						10,776
- Discount						0
- Devaluation						9
- Return of sold goods						10,767
- Turnover tax, Luxury tax & Export tax						0
1. Net revenue						154,085
2. Cost of goods sold						141,944
3. Gross Profit						12,141
4. Sales expenses						6,303
5. Enterprise administrative expenses						4,622
6. Net income from business activities						1,216
Income from financial activities						2,418
Expenditure from financial activities						3,327
7. Net income from financial operation						-909
Irregular income						326
Irregular expenditure						380
8. Irregular Profit						-54
9. Total pre-tax profit						253
10. Income tax						81
11. After tax profit						172
FINANCIAL FACTORS
Description						FY2003		FY2002
Current Liquidity Ratio						1.06		1.09
Quick Liquidity Ratio						0.90		0.92
Inventory Circle						17.75		0.00
Average Receive Period						116.08		#DIV/0!
Utilizing Asset Performance						2.11		0.00
Liability / Total Asset (%)						92.52		89.30
Liability / Owner's Equity (%)						1,236.89		834.52
Income Before Tax / Total Asset (%) ROA						0.35		0.00
Income Before Tax / Owner's Equity (%) ROE						4.64		0.00
Income Before Tax / Total Revenue (%) NPM						0.15		#DIV/0!
Gross Profit / Total Revenue (%) GPM						7.36		#DIV/0!
INTERPRETATION
The Vinh Phuc Pharmaceutical Joint Stock Company, its forerunner was state owned company, was established in 1959, with name as Vinh Phuc Pharmaceutical Medical Supply Company. Head office is located at Vinh Yen Town, Vinh Phuc Province. In 2004, VINPHACO was changed to Joint Stock Company. At present, it has 350 employees working and increased legal capital to 17,832 million VND. All the shareholders of the subject are its staffs and board of management, the state holds zero percent. The subject is specializing in manufacturing, trading, import – export of pharmaceutical products, medical materials, health equipment… The subject imports pharmaceutical products from Korea, India, France.. and medical materials from China. In the beginning of 2007 Vinphanco has become the sole producer and distributor of an anti-cancer injection, Aslem in Vietnam. The drug, a success of a national – level research project conducted by Hanoi Pharmaceutical University, is able to boost immunity and inhibit the development of cancerous cells. Aslem was tested clinically on over 100 patients at the Hanoi-based Vietnam-Germany Hospital and showed good results. In general, its operation is fairly stable. It seems stable for development. Its market share and position in the industry is normal. The subject has capacity to meet its financial commitments. No caution needed for small and normal transactions.

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