MIRA INFORM REPORT

Report Date :

09.06.2007

IDENTIFICATION DETAILS

Name :	NATIONAL PHYTOPHARMA JOINT STOCK COMPANY
Registered Office :	24, Nguyen Thi Nghia Str, Ben Thanh Ward, Dist 1, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	1993
Legal Form :	Joint-Stock Company
Line of Business :	Production, trading, import-export of pharmaceutical products, medicinal herb, essential oil flavors, cosmetics, oriental & western medicines, and medical instrument. Inland travel service, Transport of Passenger and goods

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 :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name				NATIONAL PHYTOPHARMA JOINT STOCK COMPANY
Vietnamese Name				CONG TY CO PHAN DUOC LIEU TRUNG UONG 2
Trade Name				NATIONAL PHYTOPHARMA JOINT STOCK COMPANY
Abbreviated Name				PHYTOPHARMA
Brand name				PHYTOPHARCO
Former Trade name				NATIONAL PHYTOPHARMA COMPANY NO. 2
Former Vietnamese name				CONG TY DUOC LIEU TRUNG UONG 2
Founded				1993
Current Type of business				Joint-Stock Company
Former Type of business				State owned Enterprise
Establishment decision				407/BYT
Issued on				April 22^nd, 1993
Issued by				Ministry of Health
Equitization Decision				184/QD-TTg
Issued on				March 4^th, 2002
Issued by				Prime Minister
Current Business registration				No. 4103000980
Issued on				May 8^th, 2002
Issued by				Planning and Investment Department of Hochiminh City
Former Business Registration				102664
Issued on				May 12th, 1993
Registered Capital				14,000,000,000 VND
Tax Code				0302597576
Total Employees				150 employees
Qualification				Qualified
ADDRESSES
Head Office
Address		24, Nguyen Thi Nghia Str, Ben Thanh Ward, Dist 1, Hochiminh City
Vietnam		Vietnam
Tel		(84-8) 832 3009
Fax		(84-8) 832 3012
Email		phytopharco@hcm.vnn.vn
Warehouse
Address		97, Quang Trung St, Ward 11, Go Vap Dist, Hochiminh City
Vietnam		Vietnam
Tel		(84-8) 895 9964
Fax		(84-8) 895 9407
Processing shop
Address		124/59 Xom Dat St, Ward 8, Dist 11, Hochiminh city
Vietnam		Vietnam
Tel		(84-8) 858 9224
Branch in Hanoi
Address		23/25, Vu Ngoc Phan St, Dong Da Dist, Hanoi city
Vietnam		Vietnam
Tel		(84-4) 8781048 / 7761077
Fax		(84-4) 7761311
Contact Person		Mr. NGUYEN CONG CHIEN
DIRECTORS
1. NAME			Mr. HOANG THE TAN
Position			General Director/ Chairman
Qualification			Pharmacist
Date of birth			June 6^th, 1941
ID No			023504355
Issued on			May 23^rd, 1997
Issued by			Police Station of Hochiminh City
Resident			40 Chau Van Liem St, Dist 5, Hochiminh city
Nationality			Vietnamese
2. NAME			Mr. DAM THAN BON
Position			Administration Deputy general Director
Qualification			Pharmacist
Resident			57, Nguyen Du St, Ben Nghe Ward, Dist 1, Hochiminh city
Nationality			Vietnamese
3. NAME				Mr. PHAN THANH LAY
Position				Sales Deputy General Director
Qualification				Pharmacist
Resident				Hochiminh City - Vietnam
Nationality				Vietnamese
Tel				(84-8) 8323007 (ext: 119)
4. NAME				Mr. VU VIET HUNG
Position				Financial Deputy General Director
Resident				Hochiminh City - Vietnam
Nationality				Vietnamese
5. NAME			Mr. LE TAT TUAN
Position			Financial Deputy General Director
Qualification			Pharmacist
Resident			No. 155, Nguyen Duy Duong Str, Ward 3, Dist 10, Hochiminh City
Nationality			Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in the following activities
ü Production, trading, import-export of pharmaceutical products, medicinal herb, essential oil flavors, cosmetics, oriental & western medicines, and medical instrument. ü Inland travel service, Transport of Passenger and goods ü Warehouse service and technology transfer ü Agent for foreign exchange ü Housing business and real estate intermediary.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports various kinds of pharmaceutical products, medical equipment, and materials from USA, Europe including France, Switzerland, and Germany... and Asia such as Taiwan, China, and India.
EXPORT: The subject exports its products to Japan, France and Germany.
BANKERS
1. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address				No. 29, Ben Chuong Duong Str, Hochiminh City
Tel				(84-8) 825 1317
Fax				(84-8) 829 7228
Telex				811234/5 VVB-VT
Swift				BFTVVBVX 007
2. BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM- HCM CITY BRANCH
Address				No. 134, Nguyen Cong Tru Str, Dist 1, Hochiminh city
Tel				(84-8) 823 0125, 829 7384
Fax				(84-8) 829 8862
Swift				BIDVVNVX310
3. SGN COMMERCIAL JOINT STOCK BANK (SACOMBANK)
Address				No. 278, Nam Ky Khoi Nghia Str, Ward 8, Dist 3, Hochiminh City
Tel				(84-8) 932 0420 - 932 0643
Fax				(84-8) 932 2488
Telex				813603SGTT/VT
Swift				SGTTVNVX
SHAREHOLDERS
Formerly, the subject was a State Owned Enterprise. It was equitized to be a Joint Stock Company since 2002. Its current shareholders are as follows:
State owned shares: 30 percent
NAME				VIETNAM PHARMACEUTICAL CORPORATION
Representative				Mr. HOANG THE TAN
Share				420,000 shares
Proportion of Shares				30 percent
Private shares: 70 percent
1. NAME				Mr. HOANG THE TAN
Position				General Director/ Chairman
Qualification				Pharmacist
Date of birth				June 6^th, 1941
ID No				023504355
Issued on				May 23^rd, 1997
Issued by				Police Station of Hochiminh City
Resident				No. 40 Chau Van Liem Str, Dist 5, Hochiminh city
Nationality				Vietnamese
Share				760 shares
Proportion of Shares				5.43 percent
2. NAME				Mr. DAM THAN BON
Position				Administration Deputy general Director
Qualification				Pharmacist
Resident				No. 57, Nguyen Du Str, Ben Nghe Ward, Dist 1, Hochiminh city
Nationality				Vietnamese
Share				600 shares
Proportion of Shares				4.28 percent
3. NAME				Mr. LE TAT TUAN
Position				Financial Deputy General Director
Qualification				Pharmacist
Resident				No. 155, Nguyen Duy Duong str, Ward 3, Dist 10, Hochiminh City
Nationality				Vietnamese
Share				430 shares
Proportion of Shares				3.07 percent
4. NAME				Mr. NGUYEN CONG CHIEN
Position				Shareholder
Resident				Yen Thuong, Gia Lam Dist, Hanoi
Nationality				Vietnamese
Share				250 shares
Proportion of Shares				1.79 percent
5. NAME				Mr. PHAM HONG TUAN
Position				Shareholder
Resident				No. 44 Chau Van Liem Str, Ward No.10, Dist 5, Hochiminh city
Nationality				Vietnamese
Share				550 shares
Proportion of Shares				3.93 percent
6. NAME				217 other shareholders
Share				721,000 Shares
Proportion of Shares				51.5 percent
PAYMENT HISTORY AND EXPERIENCES
Trade Morality				Normal
Liquidity				Normal
Previous Payment Status				Fairly prompt
Current payment Status				Fairly prompt
Past Financial Situation				Fairly good
Current Financial Situation				Fairly good
Legal Action				Recorded
Bankruptcy				No recorded
Reputation				Fairly good
Mode of Payment				Direct payment or through its corresponding bank.
Sales methods				Directly to clients or through its agents
Note: In 2005, the subject and Hau Giang Pharmaceutical Joint Stock Company have been collected income tax of more than 3 billion VND because of evading taxation through being foreign consumer goods agent (for NOVARTIS-Switzerland)
FINANCIAL DATA
BALANCE SHEET
Unit: 01 VND
Balance sheet date					31/12/2005
Number of weeks					52
ASSETS
A -	CURRENT ASSETS				971,923,534,013
I.	Cash and cash equivalents				32,670,894,683
1.	Cash				32,670,894,683
2.	Cash equivalents
II.	Short-term investments				2,000,000
1.	Short-term investments				2,000,000
2.	Provisions for short-term investment of short- term investments in securities
III.	Accounts receivable				789,969,881,031
1.	Receivable from customers				83,840,563,034
2.	Repayments to suppliers
3.	Inter- company receivable				5,918,910,704
4.	Receivable according to the process of construction contracts
5.	Other receivable				700,210,407,293
6.	Provisions for bad debts
IV.	Inventories				138,564,251,880
1.	Inventories				138,564,251,880
2.	Provisions for devaluation of inventories
V.	Other current assets				10,716,506,419
1.	Short-term repaid expenses				551,974,520
2.	Taxes receivable				10,164,531,899
3.	Other current assets
B -	LONG TERM ASSETS				10,702,549,197
I.	Long term accounts receivable				0
1.	Long term accounts receivable from customers
2.	Long term inter- company receivable				0
3.	Other long term receivable
4.	Provisions for bad debts
II.	Fixed assets				10,437,049,856
1.	Tangible assets				9,435,025,097
	Historical costs				15,876,576,940
	Accumulated depreciation				6,441,551,843
2.	Financial leasehold assets				0
	Historical costs
	Accumulated depreciation
3.	In-tangible assets				83,538,201
	Historical costs				170,858,402
	Accumulated depreciation				87,320,201
4.	Construction in progress				918,486,558
III.	Investment property				0
	History costs
	Accumulated depreciation
IV.	Long term investments				100,000,000
1.	Investments in affiliates
2.	Investments in business concerns and joint ventures				100,000,000
3.	Other long term investments
4.	Provisions for devaluation of investments in securities
V.	Other long term assets				165,499,341
1.	Long term repaid expenses				165,499,341
2.	Deferred income tax
3.	Other long term assets
	TOTAL ASSETS				982,626,083,210
LIABILITIES
A -	LIABILITIES				932,832,377,184
I.	Short term liabilities				927,870,166,246
1.	Short term debts and loans				4,161,831,829
2.	Payable to suppliers				895,084,214,484
3.	Advances from customers
4.	Taxes and other obligations to the State Budget				20,876,307,611
5.	Payable to employees				2,656,065,693
6.	Accrued expenses				90,437,938
7.	Inter- company payable				2,002,575,018
8.	Payable according to the progress of construction contracts
9.	Other payables				2,998,733,673
II.	Long term liabilities				4,962,210,938
1.	Long term account payable to suppliers
2.	Long term inter- company payable				3,102,522,938
3.	Other long term payable				0
4.	Long term debts and loans				1,859,688,000
5.	Deferred income tax
B -	OWNER’S EQUITY				49,793,706,026
I.	Owner’s equity				43,673,443,537
1.	Capital				13,998,332,274
2.	Share premiums
3.	Treasury stocks
4.	Differences on asset re-valuation
5.	Foreign exchange differences
6.	Business promotion fund				14,982,425,997
7.	Financial reserved fund				1,738,955,658
8.	Other funds				2,372,270,711
9.	Retained earnings				10,581,458,897
II.	Other sources and funds				6,120,262,489
1.	Bonus and welfare funds				2,109,947,489
2.	Sources of expenditure				4,010,315,000
3.	Funds to form fixed assets
	TOTAL LIABLITIES AND OWNER’S EQUITY				982,626,083,210
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Description				F/Y 2005
1.	Sales				2,494,514,223,278
2.	Deductions				85,452,399,883
3.	Net sales				2,409,061,823,395
4.	Costs of goods sold				2,370,869,426,117
5.	Gross profit				38,192,397,278
6.	Financial income				13,086,280,340
7.	Financial expenses				13,629,487,842
	- In which: Loan interest expenses				329,189,378
8.	Selling expenses				12,904,669,409
9.	Administrative overheads				10,409,989,040
10.	Net operating profit				14,334,531,327
11.	Other income				346,503,950
12.	Other expenses				29,848,342
13.	Other profits				316,655,608
14.	Profit (loss) before tax				14,651,186,935
15.	Income tax				4,102,332,342
16.	Profit (loss) after tax				10,548,854,593
FINANCIAL FACTORS
Description					FY 2005
Current Liquidity Ratio					1.05
Quick Liquidity Ratio					0.90
Inventory Circle					17.11
Average Receive Period					119.69
Utilizing Asset Performance					2.45
Liability / Total Asset (%)					94.93
Liability / Owner's Equity (%)					1,873.39
Income Before Tax / Total Asset (%) ROA					1.49
Income Before Tax / Owner's Equity (%) ROE					29.42
Income Before Tax / Total Revenue (%) NPM					0.59
Gross Profit / Total Revenue (%) GPM					1.53
INTERPRETATION
Originally, the subject was a State Owned Enterprise. On February 18^th, 2002, the Ministry of Health submitted the document No.1069/TTR-BYT of National Phytopharma No. 2 to the Prime Minister about the equitization suggestion for the subject. On March 4^th, 2002, the Prime Minister had a decision number 184/QD-TTg to equitize the subject into Joint stock company and it was officially changed into “National Phytopharma Joint Stock Company”. However, Vietnamese people often call the original form of the subject as their habit, so that a few of newspapers in Vietnam still call the subject as “National Phytopharma Joint Stock Company No.2” to distinguish the subject before equitization. According to document No.110/CV-BQL-DT issued on July 12^th, 2001 by the management board of Ha Noi industrial and export processing zones, after September 2004, Zueligg Pharma Vietnam (ZPV) must stop its entrusted import and start producing medicine in Vietnam. So the entrusted import contract between Phytopharma and ZPV also ended. The subject took a place of ZPV Phytopharma to distribute medicine in Vietnam market and also is the sole distributor of the brand name “Eagle Brand Medicated Oil” (Singapore). The subject imports medicines from many countries such as Spain, France, Germany, Korea, Taiwan, and Canada. Its products are exported to Germany, Japan and France. Phytopharma has more than ten subsidiaries at the moment. In Vietnam medicine field, Phytopharma plays an important role in stabilization of exported medicine price. The subject has been supported strongly from Vietnam government (tax incentive and capital). Its market is very large. The subject has built a wide distribution system in many provinces and cities nationwide. The facilities of the subject are relative good. Its management capacity is normal. At the moment, the activities of the subject are quite busy. Annual turnover and profits of the subject are stable and increased well. In overview, the subject is operating on the big scale. Its development prospect is bright and it has financial capacity for medium size of payments.

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