MIRA INFORM REPORT

Report Date :

01.08.2007

IDENTIFICATION DETAILS

Name :	VIETNAM CANADA CAPSULE ENTERPRISE
Registered Office :	No. 21B, Phan Dinh Phung Street, Vinh Long Province
Country :	Vietnam
Financials (as on) :	31.12.2004
Date of Incorporation :	1996
Legal Form :	Belonged factory of joint stock company
Line of Business :	Manufacturing and trading gelatin capsule

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Status :	Moderate
Payment Behaviour :	Usually correct
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name			VIETNAM CANADA CAPSULE ENTERPRISE
Vietnamese name			NHA MAY SAN XUAT CAPSULE
Trade Name			VICANCAP
Type of Business			Belonged factory of joint stock company
Foundation			1996
Established Decision No.			9/QDTL-96
Issued on			October 11^th, 1996
Issued by			Vinh Long People Committee
Business Registration No.			310695
Date of Issuance			October, 1996
Place of Issuance			Planning and investment department of Vinh Long Province
Registered Capital			N.A
Tax Code			1500202535-022
Total Employees			130 employees
Qualification			Above average
The Subject is belonged factory of Cuu Long Pharmaceutical Js Co - PHARIMEXCO, following is the information of Cuu Long Pharmaceutical Js Co – PHARIMEXCO:
English Name		CUU LONG PHARMACEUTICAL JOINT STOCK COMPANY
Vietnamese name		CONG TY CO PHAN DUOC PHAM CUU LONG
Abbreviated Name		PHARIMEXCO
Address		No. 150, 14-9 Road, Ward 5 Vinh Long Town, Vinh Long Province
Country		Vietnam
Tel		(84-70) 822533
Fax		(84-70) 822129
		pharimexco@hcm.vnn.vn
Website		www.pharimexco.com.vn
Founded		1976
Type of Business		Joint Stock Company
Equitization		2004
Equitization Decision		No. 2314 QD-UB
Date of Issuance		August 09^th 2004
Place of Issuance		Vinh Long People’s Committee
Business Registration		No. 5403000021
Date of Issuance		November 09^th 2004
Place of Issuance		Vinh Long Department of Planning and Investment
Current registered capital		81,000,000,000 VND
Former registered capital		56,000,000,000 VND
Tax code		1500202535
ADDRESS
Head Office
Address			No. 21B, Phan Dinh Phung Street, Vinh Long Province
Country			Vietnam
Tel			84-70 825316
Fax			84-70 821183
Email			Vpcpharimexco-ca@hcm.vnn.vn
DIRECTORS
1. NAME			Mr. DIEU NGOC HUAN
Position			Director
Resident			Vih Long Province
Nationality			Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in manufacturing and trading gelatin capsule
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject’s materials are imported from EU countries
EXPORT: Its products are exported to Cambodia, Lao, Myanmar
BANKERS
1. BANK FOR FOREIGN TRADE OF VIETNAM (VIETCOMBANK) – VINH LONG BRANCH
Address	No. 143 Le Thai To Str, Vinh Long Town, Vinh Long Province
Country	Vietnam
Tel	(84-70) 833583
Fax	(84-70) 830562
2. BANK FOR INVESTMENT AND DEVELOPMENT OF VIET NAM – VINH LONG BRANCH
Address	No. 50 Nguyen Hue St., Ward 2, Vinh Long Town, Vinh Long Province
Country	Vietnam
Tel	(84-70) 863086
Fax	(84-70) 824928
SHAREHOLDERS
The Subject is a factory, 100% capital are owned by the parent company, following is some information its parent company:
Name		CUU LONG PHARMACEUTICAL JOINT STOCK COMPANY
Address		No. 150, 14-9 Road, Ward 5 Vinh Long Town, Vinh Long Province
Country		Vietnam
Tel		(84-70) 822533
Fax		(84-70) 822129
		pharimexco@hcm.vnn.vn
Website		www.pharimexco.com.vn
Share		100%
PAYMENT HISTORY AND EXPERIENCES
Trade Morality			Fairly good
Liquidity			Fairly good
Previous Payments			Prompt
Payment status			Prompt
Past Financial Situation			Fairly good
Current Financial Situation			Good
Litigation Data			No recorded
Bankruptcy			No recorded
Public opinion			Fairly good
Payment Methods			Through its parent company
FINANCIAL DATA
The subject is a belonged factory so its financial statement is not available. Following is the financial data of the parent company, we give you for reference.
BALANCE SHEET
Unit: VND million
Balance Sheet Date					31/12/2004			31/12/2003
Number of Weeks					52			52
ASSETS
A. Current assets & Short term Investment					102,384			79,172
I. Cash and cash equivalents					6,261			4,086
II. Short term investment					0			0
1. Short-term securities investment					0			0
2. Other short-term investment					0			0
3. Provision for devaluation of short-term investment					0			0
III. Receivables					49,867			32,979
1. Receivables from customers					34,924			29,207
2. Prepaid for providers					432			987
3. Value-added tax deducted					883			983
4. Internal receivables					0			0
5. Other receivables					13,628			4,348
6. Provision for bad receivables					0			-2,546
IV. Inventory					42,137			40,368
1. Purchased goods in transit					145			6,010
2. Inventory raw materials					12,395			10,639
3. Inventory appliance					245			32
4. Cost for production and business in process					1,844			1,511
5. Inventory finished products					20,559			15,268
6. Inventory cargoes					6,949			9,259
7. Entrusted goods for sale					0			170
8. Provision for devaluation of stocks					0			-2,521
V. Other current assets					4,116			1,689
1. Advances					1,929			1,386
2. Prepaid expenses					1,248			116
3. Pending expenses for transfer					0			0
4. Pending assets					0			0
5. Hypothecation, collateral and short run collateral					939			187
VI. Administrative					3			50
1. Administrative expenses for previous year					3			50
2. Administrative expenses for current year					0			0
B. Fixed assets & Long term investment					145,793			134,575
I. Fixed assets					141,475			114,004
1. Tangible fixed assets					137,957			113,801
+ Original cost					209,724			163,152
+ Accumulated depreciation value					-71,767			-49,351
2. Financial leasing fixed assets					0			0
+ Original cost					0			0
+ Accumulated depreciation value					0			0
3. Intangible fixed assets					3,518			203
+ Original cost					3,518			203
+ Accumulated depreciation value					0			0
II. Long term investment					1,008			14,008
1. Long-term securities investment					0			0
2. Joint-venture capital contribution					1,008			14,008
3. Other long-term investment					0			0
4. Provision for long-term investment devaluation					0			0
III. Capital construction in process					86			3,173
IV. Other					3,224			3,390
TOTAL ASSETS					248,177			213,747
LIABILITIES
A. Payables					184,589			186,450
I. Short term payables					114,296			120,753
1.Short-term borrowings					70,796			72,404
2. Due long-term liabilities					21,461			19,621
3. Payable to seller					13,820			22,385
4. Prepaid buyer					188			314
5. Taxes and accounts dutiable					4,760			3,409
6. Employee payments					2,859			2,532
7. Internal payments					0			0
8. Other payables					412			88
II. Long term payables					57,053			55,671
1. Long-term borrowing					39,325			34,943
2. Long-term loans					17,728			20,728
III. Other liabilities					13,240			10,026
1. Disbursement payable					13,240			10,026
2. Pending assets					0			0
3. Receipts long-term collateral and deposit					0			0
B. Owner’s Equity					63,588			27,297
I. Capital and Funds					65,505			27,411
1. Working capital					64,055			23,306
2. Differences from assets revaluation					0			1,085
3. Exchange rate differences					0			0
4. Business development fund					921			2,500
5. Reserved fund					509			500
6. Retained profit					0			0
7. Construction capital sources					20			20
II. Other administrative and fund sources					-1,917			-114
1. Provident funds for unemployment					0			0
2. Welfare and reward funds					-1,917			-264
3. Management funds of higher level					0			0
4. Functional operation funds					0			150
5. Fund sources formed by fixed assets					0			0
TOTAL LIABILITY AND EQUITY					248,177			213,747
PROFIT AND LOSE ACCOUNT
Description				FY 2004			FY 2003
Total revenue				154,192			141,695
Deductions Items				1,218			2,279
- Discount				0			0
- Devaluation				0			0
- Return of sold goods				0			0
- Turnover tax, luxury and export taxes				1,218			2,279
1. Net Revenue				152,974			139,416
2. Cost of Goods Sold				114,796			108,548
3. Gross Profit				38,178			30,868
4. Sale expense				9,029			9,613
5. Administration expense				8,637			7,166
6. Income from business activities				20,512			14,089
7. Income from financial activities				317			138
8. Expense from financial activities				15,781			12,947
9. Profit from financial activities				-15,464			-12,809
10. Other incomes				1,888			1,690
11. Other expenses				1,844			724
12. Other profit				44			966
13. Total profit before tax				5,092			2,246
14. Income tax				508			793
15. Profit after income tax				4,584			1,453
FINANCIAL FACTORS
Description					2004		2003
Current liquidity ratio					0.90		0.66
Quick Liquidity ratio					0.53		0.32
Inventory circle					2.78		5.38
Average receive period					118.98		86.34
Utilizing Asset Performance					0.62		0.65
Liability/ Total Asset (%)					74.38		87.23
Liability/ Owner’s equity (%)					290.29		683.04
Income before tax/ Total asset (%) ROA					2.05		1.05
Income before tax/ Owner’s equity (%) ROE					8.01		8.23
Income before tax/ Total revenue (%) NPM					24.76		21.78
Gross Profit / Total revenue (%) GPM					3.30		1.59
And following is the financial highlight of Cuu Long JSC in 2005:
Unit: VND million
Description						2005
Current assets & Short term Investment						137,294
Fixed assets & Long term investment						136,931
TOTAL ASSETS						274,225
Payables						208,431
Owner’s Equity						65,794
TOTAL LIABILITY AND EQUITY						274,225
Total revenue						167,109
Deductions Items						1,739
Net revenue						165,370
Net income from business activity						23,720
Net income from financial operation						-13,216
Irregular Profit						883
Total pre-tax profit						13,390
Following is financial highlight in 2006 and estimated in 2007:
Total revenue in 2006						348,403,790,091 VND
After tax profit in 2006						17.5 billion VND
Profit/Equity in 2006						31,38%
Estimated revenue in 2007						525,000,000,000 VND
Estimated After tax profit in 2007						40.5 billion VND
Estimated Profit/Equity in 2007						50%
INTERPRETATION
Cuu Long Pharmaceutical Joint Stock Company (Pharimexco) has more than 30 years of experience in Pharmaceutical, Cosmetic and Medical Facilities Manufacture. With different kinds using pharmaceutical chemicals and natural vegetation under international and national standard modern technology (ISO 9001, 2000, GMP – GLP – GSP), Pharimexco’s products are highly appreciated in all region in Vietnam as well as in some developed countries in the World. Pharimexco has relationships with many International Company to manufacture products and Import pharmaceuticals, cosmetics, pharmaceutical chemicals, medical facilities and special medication tools for Pharmacy and Health Service Industry. Vietnam Canada Capasule Enterprise has the trade name of VICANCAP factory, which is a belonged factory of Pharimexco, which was found in 1996 and formally started operation since 1999 with the capacity of 1,5 billion capsules per year and up to now is 2 billion capsule per year. Its technology is Northern America from size 0 to size 3. The Vincancap factory is the unique in Vietnam to make gelatin capsules under the Canadian technology. The factory turns out 2 billion capsules a year, meeting the demand of domestic drug factories and for export. The firm is setting up plans for the construction of another factory to double its capacity to 4 billion capsules year by 2007. Pharimexco established VICANCAP Factory (Vietnam – Canada). This is the only high-tech factory specialized in producing Capsule in Vietnam which was build and transferred by Canada. Each year, VICANCAP gives out about 2 billion production unit with high quality at competitive price and works as a sole distributor to most Companies, Enterprises in Vietnam, replaces import products. Besides, we also export to countries in the region as Cambodia, Lao, Myanmar. Along with proper investment to pharmaceutical factory, VICANCAP also produce many items with high quality for domestic demand as well as export. The subject is now operating well and has good development. It is expecting chance to expand market share and increase capacity.

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