MIRA INFORM REPORT

Report Date :

31.10.2007

IDENTIFICATION DETAILS

Name :	TV PHARM PHARMACEUTICAL JOINT STOCK COMPANY
Registered Office :	No. 27 Dien Bien Phu Str, Group 2, Ward 9, Tra Vinh Town, Tra Vinh Province
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	1992
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing, trading, export – import: new medicine, oriental medicine, medical component and health food; Medicine and raw materials, excipient for veterinary; Flavoring, drug, package for making medicine and gear for public health

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		TV PHARM PHARMACEUTICAL JOINT STOCK COMPANY
Vietnamese name		CONG TY CO PHAN DUOC PHAM TV PHARM
Trade Name		TV.PHARM
Current Type of Business		Joint stock company
Former Type of Business		State owned enterprise
Founded		1992
Established Decision No.		81/QĐ – UBT
Date of Issuance		May 20^th 1992
Place of Issuance		People’s Committee of Tra Vinh province
Business Registration No.		5803000005
Date of Issuance		September 5^th, 2003
Place of Issuance		Planning and Investment of Tra Vinh province
Current Registered Capital		48,000,000,000 VND
Former Registered Capital		35,000,000,000 VND
Tax Code		2100274872
Total Employees		500 employees (whole of the company)
Qualification		Fairly
Note: The subject’s business registration has adjusted 03 times. The latest was on March 6^th 2007.
ADDRESS
Head Office
Address		No. 27 Dien Bien Phu Str, Group 2, Ward 9, Tra Vinh Town, Tra Vinh Province
Country		Vietnam
Tel		(84-74) 753121, 855372
Fax		(84-74) 855372
Email		tvptvh@hcm.vnn.vn
Branch in Ho Chi Minh City
Address		Q1 Bis Bach Ma, Bac Hai Quarters, Ward 15, Dist 10, Hochiminh City
Country		Vietnam
Tel		(84-8) 9702357 – 9702315
Fax		(84-8) 8652024
Email		tv@hcm.vnn.vn
Business Registration		4113012045
Director		Mr. Bui Van Tong
Branch in Hanoi
Address		No. 95 Lang Ha Str, Lang Ha Ward, Dong Da Dist, Hanoi city
Country		Vietnam
Tel		(84-4) 8561029
Fax		(84-4) 5140237
Business Registration		0113002430
Director		Mr. Nguyen Dinh Sau
Branch in Tra Vinh
Address		No. 37-39 Pham Thai Buong Str, Ward 3, Tra Vinh Town, Tra Vinh Province
Country		Vietnam
DIRECTORS
1. NAME		Mr. LE VAN HO
Position		Chairman / General Director
I.D Card		334349567
Issued on		March 07^th, 2003
Issued by		Police Station of Tra Vinh Province
Date of birth		1950
Resident		No. 27 Dien Bien Phu Str, Group 2, Ward 9, Tra Vinh Town, Tra Vinh Province
Nationality		Vietnamese
Private Tel		++ 84 913 891 324
2. NAME		Mr. BUI VAN TONG
Position		Deputy General Director – Director of Branch in Hochiminh city
ID No.		334000958
Resident		No. 70, Dong Khoi Str, Ward 6, Tra Vinh Town, Tra Vinh Province
Nationality		Vietnamese
Private Tel		++ 84 913 891 092
3. NAME		Mr. NGUYEN DANG NGUYEN
Position		Deputy General Director
ID No.		334001329
Resident		No. 7, Road 9, Chu Van An Quarters, Ward 26, Binh Thanh Dist, Hochiminh City
Nationality		Vietnamese
Private Tel		++ 84 903 829 806
BUSINESS NATURE AND ACTIVITIES
The subject registered in the following activities:
- Manufacturing, trading, export – import: new medicine, oriental medicine, medical component and health food; Medicine and raw materials, excipient for veterinary; Flavoring, drug, package for making medicine and gear for public health; - Beauty product, chemical for test, equipment and tools for laboratory, germicide, nutria food, milk, still mineral water, fresh water, drug water and water without alcohol.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports raw material and medicine product from Hungary, China, Korea, India, Holland, France…
EXPORT: N/A
BANKERS
1. EXIMBANK – HOCHIMINH CITY
Address		No. 7 Le Thi Hong Gam street, District 1, Hochiminh city
Country		Vietnam
Tel		(84-8) 821 0055
Fax		(84-8) 829 6063
Telex		812690 EIB VT
Swift		EBVIVNVX
2. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM (INCOMBANK) BRANCH IN TRAVINH
Address		No. 15A, Dien Bien Phu Str, Tra Vinh Town, Tra Vinh Province
Country		Vietnam
Tel		(84-74) 863827 - 863828
Fax		(84-74) 863886
3. BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM – BRANCH IN TRA VINH
Address		No. 24-26 Pham Thai Buong, Ward 3, Tra Vinh Town, Tra Vinh Province
Country		Vietnam
Tel		(84-74) 856289 – 753327
Fax		(84-74) 753462
SHAREHOLDERS
The subject is a joint stock company. As of March 6 2007, the subject’s registered capital is 48,000,000,000 VND. Some main shareholders of the subject are as follows:
1. NAME		Mr. LE VAN HO
Position		Chairman / General Director
I.D Card		334349567
Issued on		March 07^th, 2003
Issued by		Police Station of Tra Vinh Province
Date of birth		1950
Resident		No. 27 Dien Bien Phu Str, Group 2, Ward 9, Tra Vinh Town, Tra Vinh province
Nationality		Vietnamese
Private Tel		++ 84 913 891 324
Representative for State
Share		2,448,000 shares
Value		51%
Individual
Share		48,809 shares
Value		1 %
2. NAME		Mr. BUI VAN TONG
Position		Deputy General Director – Director of Branch in Hochiminh city
ID No.		334000958
Resident		No. 70, Dong Khoi Str, Ward 6, Tra Vinh Town, Tra Vinh province
Nationality		Vietnamese
Private Tel		++ 84 913 891 092
Share		13,083 shares
Value		0.27%
3. NAME		Mr. NGUYEN DANG NGUYEN
Position		Deputy General Director
ID No.		334001329
Resident		No.7, Road 9, Chu Van An Quarters, Ward 26, Binh Thanh Dist, Hochiminh City
Nationality		Vietnamese
Private Tel		++ 84 903 829 806
Share		124,306 shares
Value		2.6%
4. Name		Mr. TRUONG CONG HA
Position		Shareholder
ID No.		334000868
Resident		Dau Bo Hamlet, Hoa Thuan commune, Chau Thanh Dist
Nationality		Vietnamese
Share		34,313 shares
Value		0.7%
5. Name		Mr. HOANG VAN GIOI
Position		Shareholder
ID No.		334001896
Resident		Ward 5, Vinh Long Town, Vinh Long province
Nationality		Vietnamese
Share		24,000 shares
Value		0.5%
6. Name		Mr. HA VAN DONG
Position		Shareholder
ID No.		334454430
Resident		No. 37 Pham Thai Buong Str, Ward 3, Tra Vinh Town, Tra Vinh province
Nationality		Vietnamese
Share		30,638 shares
Value		0.6 %
7. Name		Ms. TRAN THI HOA
Position		Shareholder
ID No.		334136530
Resident		No. 43 Nguyen Thi Minh Khai Str, Ward 7, Tra Vinh Town, Tra Vinh province
Nationality		Vietnamese
Share		8,489 shares
Value		0.17%
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Fairly good
Liquidity		Fair
Previous Payments		Fair
Payment status		Fair
Past Financial Situation		Average
Current Financial Situation		Fair
Litigation Data		No recorded
Bankruptcy		No recorded
Public opinion		Fairly good
Payment Methods		Direct payment or through its corresponding bank Foreign remittance by letter of credit (L/C), by telegraphic transfer (T/T)
Sales Methods		Directly to clients or supply to retails and hospitals
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date			31/12/2005
Number of weeks			52
ASSETS
A -	CURRENT ASSETS		99,900
I.	Cash and cash equivalents		4,148
1.	Cash		0
2.	Cash equivalents		0
II.	Short-term investments		0
1.	Short-term investments		0
2.	Provisions for short-term investment of short- term investments in securities		0
III.	Accounts receivable		51,962
1.	Receivable from customers		37,420
2.	Repayments to suppliers		2,655
3.	Value-added tax deducted		0
4.	Inter- company receivable		5,467
5.	Receivable according to the process of construction contracts		6,420
6.	Other receivable
7.	Provisions for bad debts		0
IV.	Inventories		43,790
1.	Inventories		43,790
2.	Provisions for devaluation of inventories		0
V.	Other current assets		0
1.	Short-term repaid expenses		0
2.	Taxes receivable		0
3.	Other current assets		0
B -	LONG TERM ASSETS		22,471
I.	Long term accounts receivable		0
1.	Long term accounts receivable from customers		0
2.	Long term inter- company receivable		0
3.	Other long term receivable		0
4.	Provisions for bad debts		0
II.	Fixed assets		20,498
1.	Tangible assets		11,400
	Original costs		45,273
	Accumulated depreciation		33,873
2.	Financial leasehold assets		0
	Original costs		0
	Accumulated depreciation		0
3.	In-tangible assets		6,696
	Original costs		6,696
	Accumulated depreciation		0
4.	Construction in progress		2,402
III.	Investment property		0
	History costs		0
	Accumulated depreciation		0
IV.	Long term investments		20
1.	Investments in affiliates		20
2.	Investments in business concerns and joint ventures		0
3.	Other long term investments		0
4.	Provisions for devaluation of investments in securities		0
V.	Other long term assets		1,953
1.	Long term repaid expenses		1,953
2.	Deferred income tax		0
3.	Other long term assets		0
	TOTAL ASSETS		122,371
LIABILITIES
A -	LIABILITIES		70,255
I.	Short term liabilities		62,748
1.	Short term debts and loans		24,253
2.	Payable to suppliers		0
3.	Advances from customers		31,220
4.	Taxes and other obligations to the State Budget		1,808
5.	Payable to employees		586
6.	Accrued expenses		3,051
7.	Inter- company payable		124
8.	Payable according to the progress of construction contracts		0
9.	Other payables		1,706
II.	Long term liabilities		7,507
1.	Long term account payable to suppliers		6,818
2.	Long term inter- company payable		0
3.	Other long term payable		689
4.	Long term debts and loans		0
5.	Deferred income tax		0
B -	OWNER’S EQUITY		52,116
I.	Owner’s equity		50,266
1.	Capital		48,098
2.	Share premiums		0
3.	Treasury stocks		0
4.	Differences on asset re-valuation		0
5.	Foreign exchange differences		0
6.	Business promotion fund		263
7.	Financial reserved fund		1,905
8.	Other funds		0
9.	Retained earnings		0
II.	Other sources and funds		1,850
1.	Bonus and welfare funds		0
2.	Sources of expenditure		1,850
3.	Funds to form fixed assets		0
	TOTAL LIABLITIES AND OWNER’S EQUITY		122,371
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Items		F/Y 2005
1.	Sales		158,567
2.	Deductions		2,459
3.	Net sales		156,108
4.	Costs of goods sold		127,597
5.	Gross profit		28,511
6.	Financial income		102
7.	Financial expenses		1,955
	- In which: Loan interest expenses		-
8.	Selling expenses		7,448
9.	Administrative overheads		6,384
10.	Net operating profit		12,826
11.	Other income		220
12.	Other expenses		35
13.	Other profits		185
14.	Profit (loss) before tax		13,011
15.	Income tax		1,301
16.	Profit (loss) after tax		11,710
FINANCIAL FACTORS
Description			FY 2005
Current Liquidity Ratio			1.59
Quick Liquidity Ratio			0.89
Inventory Circle			2.91
Average Receive Period			121.49
Utilizing Asset Performance			1.28
Liability / Total Asset (%)			57.41
Liability / Owner's Equity (%)			134.81
Income Before Tax / Total Asset (%) ROA			10.63
Income Before Tax / Owner's Equity (%) ROE			24.97
Income Before Tax / Total Revenue (%) NPM			8.21
Gross Profit / Total Revenue (%) GPM			17.98
INTERPRETATION
The subject originally was a State Owned Enterprise, which was established in 1992. Formerly, it was named “Tra Vinh Pharmaceutical and Medical Equipment Company” (in Vietnamese “Cong ty Duoc va Vat Tu Y Te Tra Vinh”. At that time, the subject was specializing in circulation and supplying medicine. In 1994, the subject built a manufacturing medicine factory. In 2003, the subject was equitized and changed name to TV Pharm Pharmaceutical Joint Stock company. Currently, the subject is focusing on manufacturing, trading, export and import of kind of new medicines, oriental medicines, medical components, flavoring, drug, package for making medicine and gear for public health. The source of raw material, drug and equipment are imported from Hungary, China, Korea, India, Holland, France…. The subject has only supplied for domestic market. Comparison capacity of the subject is fairly. Its market share is acceptable. Its products are awarded “High quality Vietnamese goods” from 2003 up to now. The premise and facility of the subject is quite good. Currently, besides 3 branches in Hochiminh city, Hanoi city, Tra Vinh town, the subject has also 262 agents around the country. The management capability of the subject is good. Total its workforce is 500 employees with fairly qualification. The revenue of the subject is rapidly increasing, especially after equitiing. According to Deputy General Director of the subject, in 2006 the revenue of the subject was 207.4 billion VND and estimated figure in 2007 will be 232 billion VND. Current financial situation of the subject is fairly good. The subject is operating effectively. It has a prospect of bright development. No caution needed for any small and medium transactions with the subject.
The company has ADEQUATE capacity to meet financial commitments.

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.	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%)

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