MIRA INFORM REPORT

Report Date :

23.04.2008

IDENTIFICATION DETAILS

Name :	TIPHARCO PHARMACEUTICAL JOINT STOCK COMPANY
Formerly Known As :	TIEN GIANG PHARMACEUTICAL AND MEDICAL EQUIPMENT COMPANY
Registered Office :	No. 15, Doc Binh Kieu Str, Ward 2, My Tho City, Tien Giang Province
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	1976
Com. Reg. No.:	5303000050
Legal Form :	Joint Stock Company
Line of Business :	Producing and Trading in Pharmaceutical Products and Medical Materials, Equipments.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM

Current English Name		TIPHARCO PHARMACEUTICAL JOINT STOCK COMPANY
Current Vietnamese Name		CONG TY CO PHAN DUOC PHAM TIPHARCO
Former English Name		TIEN GIANG PHARMACEUTICAL AND MEDICAL EQUIPMENT COMPANY
Former Vietnamese Name		CONG TY DUOC VA VAT TU Y TE TIEN GIANG
Brand name		TIPHARCO
Original Founded		1976
Current Type of Business		Joint Stock Company
Former Type of Business		State owned company
Equalization Decision No.		4905/QD-UBND
Issued on		July 22^nd 2005
Issued by		People Committee of Tien Giang Province
Current Business registration		5303000050
Issued on		February 28^th 2006
Issued by		Health Department of Tien Giang Province
Former Business registration		101228
Issued on		December 11^th, 2000
Issued by		Health Department of Tien Giang Province
Current Registered Capital		15,000,000,000 VND
Current Tax Code		1200100557
Former Tax Code		1200440715
Total Employees		300 employees of the whole company
ADDRESSES
Head Office and Factory
Address		No. 15, Doc Binh Kieu Str, Ward 2, My Tho City, Tien Giang Province
Country		Vietnam
Tel		(84-73) 872 972, 871 817, 881301
Fax		(84-73) 885 040
Email		tipharco@pmail.vnn.vn
Hochiminh City Branch
Address		L3, No. 131/1, To Hien Thanh Str, Ward 15, Hochiminh City
Country		Vietnam
Established decision No		1661/QD-UB
Issued on		October 20^th, 1995
Issued by		People’s Committee of Hochiminh City
Business registration No		301392
Issued on		February 15^th, 1996
Issued by		Planning and Investment Department of Hochiminh City
Tel		(84-8) 864 4521
Former Hanoi City Branch
Address		No. 35 Cu Loc , Km 6, Nguyen Trai Str, Thanh Xuan Dist, Hanoi City
Country		Vietnam
Tel/Fax		(84-4) 514 3793
Note: Hanoi City Branch is now paused operation
DIRECTORS
1. NAME		Ms. TRAN THI THU PHONG
Position		General Director
Qualification		Management
DOB		1955
ID No.		341999207
Issued on		December 10^th 2003
Issued by		Police Station of Tien Giang Province
Resident		No.2A, 30/4 Str, Ward 1, My Tho City, Tien Giang Province
Nationality		Vietnamese
2. NAME		Mr. PHAM QUANG BINH
Position		Vice General Director
Qualification		Management
Resident		No.8A, Binh Phong A Hamlet, Tan My Chanh Village, My Tho City, Tien Giang Province
Nationality		Vietnamese
3. NAME		Ms. TRAN THI TAM
Position		Sales Manager
Qualification		Management
Resident		Tien Giang Province
Nationality		Vietnamese
Cell phone		84-918 985 758
4. NAME		Mr. LE VAN CHAU
Position		Chief Accountant
Qualification		Management
Resident		No.2/6C, Ly Thuong Kiet Str, Ward 6, My Tho City, Tien Giang Province
Nationality		Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject specializes in producing and trading in pharmaceutical products and medical materials, equipments.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports materials and equipments from China, France, Germany, Italia, and India
EXPORT: N/A
BANKERS
1. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM (INCOMBANK) BRANH IN TIEN GIANG
Address		No. 15B, Nam Ky Khoi Nghia Str, Ward 4, My Tho City, Tien Giang province
Country		Vietnam
Tel		(84-73) 873 023
Fax		(84-73) 872 544
2. BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM – BRANCH IN TIEN GIANG PROVINCE
Address		No. 208A, Nam Ky Khoi Nghia Str, Ward 4, My Tho City, Tien Giang province
Country		Vietnam
Tel		(84-73) 872 125
Fax		(84-73) 876 092
SHAREHOLDER(S)
The subject is a joint stock company which was equitized from a 100% State owned enterprise. Its current shareholders are as follows:
1. NAME		Ms. TRAN THI THU PHONG
Position		General Director
Qualification		Management
DOB		1955
ID No.		341999207
Issued on		December 10^th 2003
Issued by		Police Station of Tien Giang Province
Resident		No.2A, 30/4 Str, Ward 1, My Tho City, Tien Giang Province
Nationality		Vietnamese
Share		274,550 shares
2. NAME		Mr. PHAM QUANG BINH
Position		Vice General Director
Qualification		Management
Resident		No.8A, Binh Phong A Hamlet, Tan My Chanh Village, My Tho City, Tien Giang Province
Nationality		Vietnamese
Share		32,643 shares
3. NAME		DAI VIET A PHARMACEUTICAL COMPANY LIMITED
Address		No.109, 3/2 Str, Ward 11, Dist 10, Hochiminh City
Representative by		Mr. PHAM TRUNG NGHIA
Nationality		Vietnamese
Share		340,000 shares
4. NAME		THIEN KHANH PHARMACEUTICAL COMPANY LIMITED
Address		No.632, Ba Hat Str, Ward 6, Dist 10, Hochiminh City
Representative by		Mr. NGUYEN VAN TAM
Nationality		Vietnamese
Share		3,000 shares
5. NAME		Mr. LE VAN CHAU
Position		Chief Accountant
Qualification		Management
Resident		No.2/6C, Ly Thuong Kiet Str, Ward 6, My Tho City, Tien Giang Province
Nationality		Vietnamese
Share		81,357 shares
FINANCIAL DATA
Unit: VND million
Description				FY 2006
Current assets & Short term Investment				52,472
Fixed assets & Long term investment				27,109
TOTAL ASSETS				79,581
Payables				62,286
Owner’s Equity				17,295
TOTAL LIABILITY AND EQUITY				79,581
Total revenue				140,429
Deductions Items				2,942
Net revenue				137,487
Net income from business activity				966
Net income from financial operation				0
Irregular Profit				1,466
Total pre-tax profit				2,432
BALANCE SHEET
	Unit: VND million
	Balance sheet date		31/12/2005
	Number of weeks		52
	ASSETS
	A. Working assets & short-term Investment		48,512
	I. Cash and cash equivalents		2,976
	II. Short-term investment		0
	1. Short-term securities investment		0
	2. Other short-term investment		0
	3. Provision for short-term investment		0
	III. Receivables		20,532
	1. Receivables from customers		20,594
	2. Prepayment for providers		0
	3. Value-added tax deducted		0
	4. Internal receivables		0
	5. Other receivables		0
	6. Provision for bad receivables		-62
	IV. Inventory		24,872
	1. Purchased goods in transit		0
	2. Raw materials		6,823
	3. Instrument, tools		3,084
	4. Cost for production and business in process		438
	5. End products		3,704
	6. Goods		5,460
	7. Goods on consignment		5,363
	8. Provision for devaluation of stocks		0
	V. Other current assets		0
	1. Advances		0
	2. Prepaid expenses		0
	3. Pending expenses for transfer		0
	4. Pending assets		0
	5. Mortgage, collateral and short run collateral		0
	VI. Administrative		132
	1. Administrative expenses for previous year		0
	2. Administrative expenses for current year		132
	B. Fixed assets & Long term investment		25,752
	I. Fixed assets		23,283
	1. Tangible fixed assets		23,145
	+ Original cost		35,524
	+ Accumulated depreciation value		-12,379
	2. Financial leasing fixed assets		0
	+ Original cost		0
	+ Accumulated depreciation value		0
	3. Intangible fixed assets		138
	+ Original cost		148
	+ Accumulated depreciation value		-10
	II. Long term investment		25
	1. Long-term securities investment		25
	2. Joint-venture capital contribution		0
	3. Other long-term investment		0
	4. Provision for long-term investment devaluation		0
	III. Capital construction in process		2,444
	IV. Other		0
	TOTAL ASSETS		74,264
	LIABILITIES
	A. Payable loans		55,105
	I. Short term payables		50,034
	1. Short-term borrowings		15,474
	2. Due long-term liabilities		0
	3. Payables to supplier		24,465
	4. Prepayment of buyer		463
	5. Taxes and accounts dutiable		-234
	6. Employee payments		2,365
	7. Internal payables		135
	8. Other payables		7,366
	II. Long term loans		5,055
	1. Long-term borrowings		5,055
	2. Long-term payables		0
	III. Other payables		16
	1. Payable expenses		0
	2. Pending assets		0
	3. Receipts long-term collateral and deposit		16
	B. Owner’s Equity		19,159
	I. Capital and Funds		18,690
	1. Working capital		14,083
	2. Differences from asset revaluation		0
	3. Exchange rate differences		0
	4. Development investment funds		2,898
	5. Reserved funds		508
	6. Retained profit		1,201
	7. Construction capital sources		0
	II. Other administrative and fund sources		469
	1. Provident funds for unemployment		124
	2. Reward and welfare funds		345
	3. Management funds of higher level		0
	4. Functional operation funds		0
	5. Fund sources formed by fixed assets		0
	TOTAL LIABILITY AND EQUITY		74,264
	PROFIT & LOSE STATEMENT
	Description		FY 2005
	Total revenue		156,905
	Revenue from export		0
	Deductions Items		1,062
	- Discount		0
	- Devaluation		517
	- Return of sold goods		545
	- Turnover tax, Luxury tax & Export tax		0
	1. Net revenue		155,843
	2. Cost of goods sold		140,757
	3. Gross Profit		15,086
	4. Sales expenses		10,512
	5. Enterprise administrative expenses		2,248
	6. Net income from business activities		2,326
	Income from financial activities		1,510
	Expenditure from financial activities		2,635
	7. Net income from financial operation		-1,125
	Irregular income		0
	Irregular expenditure		0
	8. Irregular Profit		0
	9. Total pre-tax profit		1,201
	10. Income tax		178
	11. After tax profit		1,023
	FINANCIAL FACTORS
	Description		FY 2005
	Current Liquidity Ratio		0.97
	Quick Liquidity Ratio		0.47
	Inventory Circle		5.66
	Average Receive Period		48.09
	Utilizing Asset Performance		2.10
	Liability / Total Asset (%)		74.20
	Liability / Owner's Equity (%)		287.62
	Income Before Tax / Total Asset (%) ROA		1.62
	Income Before Tax / Owner's Equity (%) ROE		6.27
	Income Before Tax / Total Revenue (%) NPM		0.77
	Gross Profit / Total Revenue (%) GPM		9.61
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Good
Liquidity		Normal
Current Payment Status		Fairly Prompt
Financial Situation		Fairly Good
Legal Action		No Recorded
Bankruptcy		No record
Reputation		Average
Mode Of Payment		Direct Payment Or Through Its Corresponding Bank.
Sales Methods		Directly To Clients
INTERPRETATION ON THE SCORES
The Tien Giang Pharmaceutical And Medical Equipment Company with brand name of TIPHARCO is a state owned enterprise which was established in 1976. At the end of February 2006, the subject completed its equalization process and officially operated as a joint stock company. Its name also has been changed to Tipharco Pharmaceutical Joint Stock Company since then. The subject has main duty of producing and trading pharmaceutical products and medical material. It also processes and concession producing for many pharmaceutical producers in the nation. The subject imports materials, machineries to India, France, China, Germany… It provides products for Mekong Delta provinces and some cities such as Hanoi, Hai Phong, Hai Duong, Thanh Hoa, Nghe An, Dak Lak…Its distributed network is large. The subject has many retail outlets in domestic. Up to now, products of the subject have not been exported. However, the subject is on planning of exporting its products to some countries such as Myanmar, Laos, and Cambodia. The company is producing 140 types of drugs and trading on more than 4,500 types of drugs (both locally made and imported) permitted by The Ministry of Health. To sharpen its competitiveness, the company has invested VND45 billion to put in place the good manufacturing practice (GMP), good laboratory practice (GLP), and good storage practice (GSP) for its non-betalactam and betalactam drug production factories, quality control department, and general depot. The company has completed process for the construction of a GMP standard betalactam drug production factory, completed and put into operation a GLP standard quality control department and a GSP standard general depot, and built two drug trading centers in My Tho City and Go Cong Tay District. Those two centers seek to earn a good distribution practice certification in the near future. In addition, the company has invested heavily in modern machinery and equipment aiming at diversifying the product ranges. It seeks to launch about 15-20 new kinds of drugs a year to meet growing market requirements. The subject has won rewards during its developments The subject’s management capacity is fairly good. In 2006, General Director is received reward “Vietnam Typical Entrepreneur”. The subject is voted as effective business in Cuu Long River Delta. The subject’s financial situation is fairly good. Profit before tax is improved year after year. The subject’s operation is stable and developing. The subject is operating relatively effectively and has prospect of development. Being a joint stock company that was equalized from a state owned enterprise so the subject gets much supports from the local government. Its management capability is gradually improved. It is changing the way of operating and expected to have capability to catch up with the innovation of the competitive environment.

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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