MIRA INFORM REPORT

Report Date :

22.10.2007

IDENTIFICATION DETAILS

Name :	VIMEDIMEX MEDI-PHARMA JOINT STOCK COMPANY HANOI BRANCH
Registered Office :	No. 260 Nghi Tam Str, Yen Phu Ward, Tay Ho Dist, Hanoi City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	1997
Legal Form :	Branch of Joint Stock Company
Line of Business :	Trading in materials for pharmaceutical industry Trading in medial equipments Trading in handicraft, essential oil, agriculture products Trading in chemical test, materials for pharmaceutical manufacturers Trading in food, milk, tea

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.	Small

Status :	Small Company
Payment Behaviour :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name		VIMEDIMEX MEDI-PHARMA JOINT STOCK COMPANY HANOI BRANCH
Vietnamese Name		CONG TY CO PHAN Y DUOC PHAM VIMEDIMEX – CHI NHANH HANOI
Trade Name		VIMEDIMEX MEDI-PHARMA JSC, HANOI BRANCH
Type of Business		Branch of Joint Stock Company
Founded		1997
Business Registration No.		0113013317
Issued on		25^th July 2006
Issued by		Hanoi Department of Planning and Investment
Tax code		0300479760-002
Total Employees		30
Qualification		Above average
ADDRESS
Head Office
Address		No. 260 Nghi Tam Str, Yen Phu Ward, Tay Ho Dist, Hanoi City
Country		Vietnam
Tel		(84-4) 8293907
Fax		(84-4) 7160752
DIRECTORS
1. NAME		Ms. TRUONG THI LAN
Position		Branch Director
Contact Address		No. 260 Nghi Tam Str, Yen Phu Ward, Tay Ho Dist, Hanoi City
Nationality		Vietnamese
2. NAME		Mr. NGUYEN QUOC HUNG
Position		Branch Vice Director
Contact Address		No. 260 Nghi Tam Str, Yen Phu Ward, Tay Ho Dist, Hanoi City
Nationality		Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject registered in the following lines of business:
- Trading in materials for pharmaceutical industry - Trading in medial equipments - Trading in handicraft, essential oil, agriculture products - Trading in chemical test, materials for pharmaceutical manufacturers - Trading in food, milk, tea - Trading in pharmaceutical - Production medicine - Research and technology transfer - Leasing warehouse and office service
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports from Germany, Bangladesh, France, Canada, Korea, Singapore, Taiwan, India …
EXPORT: N/A
BANKERS
HANOI BUILDING COMMERCIAL JOINT STOCK BANK
Address		B7, Giang Vo Str, Ba Dinh Dist, Hanoi City
Country		Vietnam
Tel		(84-4) 8460153
Fax		(84-4) 8235693
VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT – DONG HA NOI BRANH
Address		No. 23 Quang Trung Str, Hoan Kiem Dist, Hanoi City
Country		Vietnam
Tel		(84-4) 8920580
SHAREHOLDERS
English Name		VIMEDIMEX MEDI-PHARMA JOINT STOCK COMPANY
Vietnamese name		CONG TY CO PHAN Y DUOC PHAM VIMEDIMEX
Trade Name		VIMEDIMEX
Current Type of Business		Joint Stock Company
Founded		1984
Establishment Decision		No. 415/BYT-QD
Date of decision
	April 22^nd 1993
Place of Issuance		Ministry of Health
Business registration		4103004872
Date of registration		June 12^th 2006
Place of registration		Planning and Investment Department of Ho Chi Minh City
Registered Capital		25,000,000,000 VND
Address		No.246 Cong Quynh St, Dist 1, Hochiminh City, Vietnam
Tel		(84-8) 839 8441 - 839 8449 – 8369012
Fax		(84-8) 832 5953
Share		100%
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Above Average
Liquidity		Weak
Payments		Average
Financial Situation		Weak
Development trend		Above Average
Litigation Data		No reported
Bankruptcy		No reported
Payment Method		TT, L/C
Sale Method		Supplying for projects and agents
FINANCIAL DATA
BALANCE SHEET
Unit: Million VND
Balance sheet date			31/12/2006	31/12/2005
Number of weeks			52	52
ASSETS
A. Working assets & short-term Investment			81,595	26,276
I. Cash and cash equivalents			6,284	2,374
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			72,280	21,728
1. Receivables from customers			69,918	19,143
2. Prepayment for providers			1,051	2,374
3. Value-added tax deducted			0	0
4. Internal receivables			0	0
5. Other receivables			1,311	211
6. Provision for bad receivables			0	0
IV. Inventory			2,947	2,164
1. Purchased goods in transit			0	0
2. Raw materials			0	0
3. Instrument, tools			0	0
4. Cost for production and business in process			0	0
5. End products			0	0
6. Goods			2,947	2,164
7. Goods on consignment			0	0
8. Provision for devaluation of stocks			0	0
V. Other current assets			84	10
1. Advances			17	0
2. Prepaid expenses			67	10
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			389	443
I. Fixed assets			389	443
1. Tangible fixed assets			378	443
+ Original cost			625	590
+ Accumulated depreciation value			-247	-147
2. Financial leasing fixed assets			0	0
+ Original cost			0	0
+ Accumulated depreciation value			0	0
3. Intangible fixed assets			11	0
+ Original cost			12	0
+ Accumulated depreciation value			-1	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			0	0
IV. Other			0	0
TOTAL ASSETS			81,984	26,719
LIABILITIES
A. Payable loans			81,984	26,719
I. Short term payables			79,586	19,961
1. Short-term borrowings			3,090	3,643
2. Due long-term liabilities			70,573	8,625
3. Payables to supplier			2,106	3,202
4. Prepayment of buyer			706	1,284
5. Taxes and accounts dutiable			262	195
6. Employee payments			0	0
7. Internal payables			2,598	2,254
8. Other payables			251	758
II. Long term loans			2,398	6,758
1. Long-term borrowings			2,398	6,758
2. Long-term payables			0	0
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			0	0
I. Capital and Funds			0	0
1. Working capital			0	0
2. Differences from asset revaluation			0	0
3. Exchange rate differences			0	0
4. Development investment funds			0	0
5. Reserved funds			0	0
6. Retained profit			0	0
7. Construction capital sources			0	0
II. Other administrative and fund sources			0	0
1. Provident funds for unemployment			0	0
2. Reward and welfare funds			0	0
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			81,984	26,719
PROFIT & LOSE STATEMENT
Description				FY 06
Total Revenues				54,430
Deductions Items				0
- Discount				0
- Devaluation				0
- Return of sold goods				0
- Turnover tax, luxury and export taxes				0
1. Net Revenue				54,430
2. Cost of Goods Sold				50,821
3. Gross Profit				3,609
4. Income from financial activities				652
5. Expense from financial activities				1,436
In there: Interest expense				869
6. Sale expense				871
7. Administration expense				2,072
8. Income from business activities				-118
9. Other incomes				161
10. Other expenses				4
11. Other profit				157
12. Total profit before tax				39
13. Income tax				0
14. Profit after income tax				39
FINANCIAL FACTORS
Description			FY 06	FY 05
Current liquidity ratio			1.03	1.32
Quick Liquidity ratio			0.99	1.21
Inventory circle			19.89	-
Average receive period			484.70	N/A
Utilizing Asset Performance			0.66	-
Liability/ Total Asset (%)			100.00	100.00
Liability/ Owner's equity (%)			N/A	N/A
Income before tax/ Total asset (%) ROA			1.11	-
Income before tax/ Owner's equity (%) ROE			N/A	N/A
Gross Profit / Total revenue (%) GPM			6.63	N/A
Income before tax/ Total revenue (%) NPM			1.67	N/A
INTERPRETATION
The subject is a branch of joint stock company. It was founded in 1997 and re-established in 2006. The subject is specialized in trading medical equipments and pharmaceutical products. The current position in the industry of the subject is average. The premise of the subject is normal. The head office of the subject is located in Nghi Tam Street, Tay Ho District, Hanoi City. The subject imports products from foreign manufacturers then it distributes for retailers and agents. The subject is responsible for the Northern market of its parent company which is in Ho Chi Minh City. The turnover of the subject in 2006 was above average. It increased rapidly but the income from business activities was negative. The profit of the subject in 2006 was low. It made up to only 0.07% in total revenue. The receivable accounts in 2006 were large. The subject has pursued easy credit terms policy with the customers. The management capacity of the subject is normal. The staffs of the subject are grade at average. The future prosperity of the subject seems bright. In general, the operation and finance of the subject regard average. The business of the subject is stable and development. The parent company of the subject bears for financial commitments and financial obligations. All the business transactions need to approve of the parent company of subject. About its parent company: Vimedimex was established in 1984. It was equitized in 2006 and became joint stock company with 51% share owned by the State. It is one of the biggest companies in import, trading pharmaceutical products and medical equipments. Beside, it also large company in production traditional materials for oriental medicine. Its revenue in 2065 was VND 2,532,339,011,278.

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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