MIRA INFORM REPORT

Report Date :

17.01.2008

IDENTIFICATION DETAILS

Name :	VIETNAM VETERINARY PRODUCTS JOINT STOCK COMPANY
Registered Office :	No. 88 Truong Chinh Str., Dong Da Dist., Hanoi City
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	1993
Legal Form :	Joint Stock Company
Line of Business :	Research and production of veterinary medicines Trade of medicines and raw materials for making medicines

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
Current form
English Name	VIETNAM VETERINARY PRODUCTS JOINT STOCK COMPANY
Vietnamese name	CONG TY CO PHAN THUOC THU Y TRUNG UONG I
Trade Name	VINAVETCO JSC
Type of Business	Joint Stock Company
Equitization Decision	No. 1820/QD-BNN-TCCB
Date of Issuance	May 17^th, 2000
Place of Issuance	Ministry of Agriculture and Rural Development
Business Registration	No.0103000065
Date of Issuance	June 7^th, 2000
Date of last adjustment	October 17^th 2006
Place of Issuance	Hanoi Department of Planning And Investment
Current registered capital	VND 7,000,000,000
Tax Code	No. 0100102326
Total Employees	150 employees
Qualification	Normal
Former form
English Name	VIETNAM VETERINARY EQUIPMENT COMPANY
Type of Business	State Owned Company
Foundation	1993
Establishment Decision	No. 354NN/TCCB/QD
Date of Issuance	May 12^th, 1993
Place of Issuance	Ministry of Agriculture and Rural Development
Business Registration	No. 108514
Date of Issuance	June 14^th, 1993
Place of Issuance	Hanoi Department of Planning And Investment
Registered Capital	VND 4,952,000,000
ADDRESS
Head office
Address	No. 88 Truong Chinh Str., Dong Da Dist., Hanoi City, Vietnam
Tel	(84-4) 869 1262
Fax	(84-4) 869 1263
Branch in Dang Nang City
Current address	K 12/4, Ly Thuong Kiet Str., Hai Chau Dist., Da Nang City
Former address	No. 35, Nguyen Chi Thanh Str., Hai Chau Dist., Da Nang City
Business Registration	No. 3202000018
Tel	(84-511) 886591
Chief of Branch	Mr. NGUYEN QUANG THAO
Branch in Hochiminh City
Address	No. 343, Hoang Hoa Tham Str., Ward 13, Tan Binh Dist., Hochiminh City
Business Registration	No. 0300112201
Tel	(84-8) 810 5890
Fax	(84-8) 810 5890
DIRECTORS
1. NAME	Mr. LE VAN NAM
Position	Director and Deputy Chairman of Management Board
Hand Phone	++84 913 212 822
Tel Office	(84-4) 869 2655
Resident	Hanoi City
Nationality	Vietnamese
2. NAME	Mrs. NGUYEN THI PHUONG
Position	Chairwoman of Management Board
Hand Phone	++84 913 210 774
Office Tel	(84-4) 869 6243
ID No.	Hanoi City
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject focuses on the following activities:
Research and production of veterinary medicines Trade of medicines and raw materials for making medicines
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports from China, Bulgaria, Germany, Netherlands, USA, and Switzerland.
EXPORT: The subject exports its products to Mongolia.
BANKERS
1. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address	No.198 Tran Quang Khai Str, Hoan Kiem Dist, Ha Noi City
Tel	(84-4) 8244890
Fax No	(84-4) 9349527
Telex	411209 VCB
Swift	BFTVVNVX
SHAREHOLDERS
1.Name	Mrs. NGUYEN THI PHUONG
Date of Birth	October 5^th, 1954
ID No.	011563345
Resident	Hanoi City
Current Address	No. 126, Le Trong Tan Str., Thanh Xuan Dist., Hanoi City
Nationality	Vietnamese
2.Name	MR. LE VAN NAM
Date of Birth	May 19^th, 1951
ID No.	012045534
Resident	No. 40, Vuong Thua Vu Str, Thanh Xuan Dist., Hanoi City
Nationality	Vietnamese
3.Name	Mr. LE DUC LIEN
Date of Birth	September 14^th, 1961
ID No.	012275314
Resident	No. 318 D2-A2, Phuong Mai Ward, Dong Da Dist., Hanoi City
Nationality	Vietnamese
4. Name	199 OTHER SHAREHOLDERS
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Fairly good
Liquidity	Fair
Previous Payments	Fairly prompt
Payment status	Quickly
Past Financial Situation	Developed
Current Financial Situation	Fairly good
Legal Action	No recorded
Bankruptcy	No recorded
Sale methods	Directly sell to clients, and through out agency
Payment methods	Payment through out bank by L/C, DPA, TT
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000 VND
Balance Sheet Date		31/12/2005	31/12/2004		31/12/2003
Number of Weeks		52	52		52
ASSETS
A. Working assets & short-term Investment		14,900	17,678		16,134
I. Cash and cash equivalents		3,940	6,569		7,057
II. Short-term investment		0	0		0
1. Short-term securities investment		0	0		0
2. Other short-term investment		0	0		0
3. Provision for short-term investment		0	0		0
III. Receivables		2,191	3,049		1,829
1. Receivables from customers		1,953	2,060		1,829
2. Prepayment for providers		0	989		0
3. Value-added tax deducted		0	0		0
4. Internal receivables		0	0		0
5. Other receivables		238	0		0
6. Provision for bad receivables		0	0		0
IV. Inventory		8,373	7,525		6,674
1. Purchased goods in transit		0	0		0
2. Raw materials		1,135	1,532		1,160
3. Instrument, tools		212	183		149
4. Cost of production and business in process		90	0		0
5. Finished products		1,330	0		0
6. Goods		5,600	5,809		5,344
7. Goods on consignment		6	1		21
8. Provision for devaluation of stocks		0	0		0
V. Other current assets		396	535		574
1. Advances		375	500		541
2. Prepaid expenses		0	0		0
3. Pending expenses for transfer		0	21		25
4. Pending assets		21	14		8
5. Mortgage, collateral and short run collateral		0	0		0
VI. Administrative		0	0		0
1. Administrative expenses for previous year		0	0		0
2. Administrative expenses for current year		0	0		0
B. Fixed assets & Long term investment		6,273	5,547		3,440
I. Fixed assets		2,820	3,481		3,440
1. Tangible fixed assets		2,820	3,481		3,440
+ Original cost		8,412	8,574		7,937
+ Accumulated depreciation value		-5,592	-5,093		-4,497
2. Financial leasing fixed assets		0	0		0
+ Original cost		0	0		0
+ Accumulated depreciation value		0	0		0
3. Intangible fixed assets		0	0		0
+ Original cost		0	0		0
+ Accumulated depreciation value		0	0		0
II. Long term investment		701	701		0
1. Long-term securities investment		701	701		0
2. Joint-venture capital contribution		0	0		0
3. Other long-term investment		0	0		0
4. Provision for long-term investment devaluation		0	0		0
III. Capital construction in process		2,752	1,365		0
IV. Other		0	0		0
TOTAL ASSETS		21,173	23,225		19,574
LIABILITIES
A. Payable loans		5,917	8,560		5,586
I. Short term payables		5,828	8,560		5,586
1. Short-term borrowings		1,688	3,439		702
2. Due long-term liabilities		0	0		0
3. Payables to supplier		405	787		1,591
4. Prepayment of buyer		527	46		11
5. Taxes and accounts dutiable		-113	41		159
6. Employee payments		450	576		894
7. Internal payables		0	0		0
8. Other payables		2,871	3,671		2,229
II. Long term loans		0	0		0
1. Long-term borrowings		0	0		0
2. Long-term payables		0	0		0
III. Other payables		89	0		0
1. Payable expenses		89	0		0
2. Pending assets		0	0		0
3. Receipts long-term collateral and deposit		0	0		0
B. Owner’s Equity:		15,256	14,665		13,988
I. Capital and Funds		15,256	14,665		13,988
1. Working capital		12,179	7,279		7,279
2. Differences from asset revaluation		0	0		0
3. Exchange rate differences		0	0		0
4. Development investment funds		0	0		0
5. Reserved funds		0	6,737		0
6. Retained profit		1,000	649		612
7. Construction capital sources		2,077	0		6,097
II. Other administrative and fund sources		0	0		0
1. Provident funds for unemployment		0	0		0
2. Reward and welfare funds		0	0		0
3. Management funds of higher level		0	0		0
4. Functional operation funds		0	0		0
5. Fund sources formed by fixed assets		0	0		0
TOTAL LIABILITY AND EQUITY		21,173	23,225		19,574
PROFIT & LOSE ACCOUNTS
Description		FY 2005		FY 2004
Total Sales		37,722		37,915
Deductions Items		2,776		1,732
- Discount		2,763		1,690
- Devaluation		0		0
- Return of sold goods		13		42
- Turnover tax, Luxury tax & Export tax		0		0
1. Net Sales		34,946		36,183
2. Cost of goods sold		24,448		24,795
3. Gross Profit		10,498		11,388
4. Sales expenses		3,421		4,101
5. Enterprise administrative expenses		3,498		3,372
6. Net income from business activities		3,579		3,915
Income from financial activities		142		0
Expenditure from financial activities		97		0
7. Net income from financial operation		45		0
Irregular income		11		0
Irregular expenditure		0		0
8. Irregular Profit		11		0
9. Total pre-tax profit		3,635		3,915
10. Income tax		454		489
11. After tax profit		3,181		3,426
FINANCIAL FACTORS
Financial Factors		2005		2004
Current Liquidity Ratio		2.56		2.07
Quick Liquidity Ratio		1.12		1.19
Inventory Circle		3.08		0.71
Average Receivable Period (days)		22.88		30.76
Utilizing Asset performance		1.65		1.56
Liabilities / Total Assets (%)		27.95		36.86
Liabilities / Owner’s Equity (%)		38.78		58.37
Income before tax/ Total assets (%) ROA		17.17		16.86
Income before tax/ Owner’s Equity (%) ROE		23.83		26.70
Income before tax/ Total Sales (%) NPM		9.64		10.33
Gross Profit / Total Sales (%) GPM		27.83		30.04
INTERPRETATION ON THE SCORES
The subject was founded in 1973 as a state-owned factory, specialized in manufacturing and trading in veterinary medicines. In 1993, the subject was officially operated with name: Vietnam Veterinary Equipment Company. The registered capital was VND 4,952,000,000. Until the year 2000, the subject was changed into joint-stock company and its current name is Vietnam Veterinary Products Joint Stock Company. Currently, its registered capital to VND 7,000,000,000 and the total workforce of the subject is about 150 employees, including staffs in two branches: Hochiminh and Da Nang cities. The subject is focusing on research and production of veterinary medicines. It also trades in medicines and raw materials for medicines production. The subject imports materials, machines from China, Bulgaria, Germany, Netherlands, USA, and Switzerland. Its products are consumed widely in domestic market. They are evaluated fairly good about quality. The subject’s product is also exported to Mongolia. The subject has built a wide system of branches and agents in many provinces and cities. The premises of the subject are old but the facilities are rather good. The subject has operated for 37 years in veterinary medicine field. After equitization, the management capability of the subject is better. Recently, the subject achieves good result in its business activities. The financial ratios are fairly good. Its prestige in the industry is acceptable. The payment capacity of the subject is guarantee. Because the subject focuses on trading activities, so its fix assets are low. Now, the subject has five production lines enabling to produce 155 kinds of veterinary medicines. The profit of the subject is fairly high. In Vietnam, the demand on veterinary medicines will increase in coming times. Therefore, the prospect of the subject seems to be bright. In short, the subject’s operation is effective. Its financial and operational bases are considered fairly healthy and stable. The subject is enough capacity to meet small and normal financial commitments. Caution needed for big 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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