MIRA INFORM REPORT

Report Date :

02.07.2008

IDENTIFICATION DETAILS

Name :	CENTRAL PHARMARTEUCIAL COMPANY NO.1
Registered Office :	No.356A Giai Phong Road, Phuong Liet Ward, Thanh Xuan Dist, Hanoi city
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	22.04.1993
Legal Form :	State Owned Enterprise
Line of Business :	Trading in pharmaceutical products and raw material for pharmaceutical industry Import of raw materials for making medicine, lens, absorbent cotton and bandage, essential oil, aroma, cosmetics, hygiene products and medical equipment

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 :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name			CENTRAL PHARMARTEUCIAL COMPANY NO.1
Vietnamese name			CONG TY DUOC PHAM TRUNG UONG 1
Trade name			CPC1
Type of Business			State owned enterprise
Established Decision			No. 408/BYT-QĐ
Issued on			April 22, 1993
Issued by			Ministry of Health
Current Business registration			No. 0106000664
Issued on			March 30^th 2006
Issued by			Hanoi Department of Planning & Investment
Former Business registration			No. 108263
Issued on			May 12, 1993
Issued by			Hanoi Department of Planning & Investment
Charter Capital			41,202,000,000 VND
Working Capital			36,840,000,000 VND
Fixed Capital			4,362,000,000 VND
Tax code			0100108536
Total Employees			300 Employees
Qualification			Fairly Good
ADDRESSES
Head office
Address	No.356A Giai Phong Road, Phuong Liet Ward, Thanh Xuan Dist, Hanoi city
Country	Vietnam
Tel	(84-4) 8642106/ 864 3327/ 864 3323/ 864 1342
Fax	(84-4) 864 1366
Notes: The given address is not quite correct. The right one is as above.
Branch in Hochiminh City
Address	No.2D Cu Xa, Dien Hong, Ward 14, Dist 10, Hochiminh City
Country	Vietnam
Tel	(84-8) 8665827 / 8665828
Fax	(84-8) 8665829
Branch in Bac Giang Province
Address	No. 96, Thanh Thien Str, Le Loi Ward, Bac Giang City, Bac Giang Province
Country	Vietnam
Tel	(84-240) 823824
Fax	(84-240) 823824
Distributing shops
1. Address	136 Nguyen Luong Bang Str, Dong Da Dist, Hanoi city
Country	Vietnam
Tel	(84-4) 851 3347
2. Address	105 Nguyen Cong Tru Str, Hai Ba Trung Dist, Hanoi city
Country	Vietnam
Tel	(84 -4) 976 1597 – 664 0879
3. Address	31 Lang Ha Str, Dong Da Dist, Hanoi city
Country	Vietnam
Tel	(84-4) 514 6474
4. Address	No. 8 Ngoc Khanh Str, Ba Dinh Dist, Hanoi city
Country	Vietnam
Tel	(84-4) 831 7870
5. Address	No. 7 Ngoc Khanh Str, Ba Dinh Dist, Hanoi city
Country	Vietnam
Tel	(84-4) 835 3984
6. Address	Dinh Cong, Thanh Tri Dist, Hanoi city
Country	Vietnam
Tel	(84-4) 640 8253
DIRECTORS
Current Directors
1. NAME	Mr. NGUYEN DOAN LIEM
Position	Director
Resident	Hanoi City
Hand phone	+84 904060890
Office tel	(84-4) 8641342
Nationality	Vietnamese
Note: Mr. Nguyen Doan Liem was formerly the Deputy Director of the subject. He replaced Mr. Nguyen Quy Son in July 01^st 2007.
2. NAME	Mrs. TRAN THUY KHANH
Position	Deputy Director and chief Accountant
Resident	Hanoi City
Hand phone	+84 912398395
Office tel	(84-4) 8643312
Nationality	Vietnamese
3. NAME	Mr. PHAM VAN QUAN
Position	Deputy Director
Resident	Hanoi City
Nationality	Vietnamese
NAME	Mr. NGUYEN QUY SON
Position	Director
Date of birth	October 30^th 1959
ID No.	010104643
Issued on	September 28^th 2001
Issued by	Police of Hanoi city
Resident	Room 12, Row C, Group 72, Phuong Liet Ward, Thanh Xuan Dist, Hanoi City
Nationality	Vietnamese
Note: At the moment, he is General director of Vietnam Pharmaceutical Corporation.
BUSINESS NATURE AND ACTIVITIES
Following are main business activities of the subject: · Trading in pharmaceutical products and raw material for pharmaceutical industry · Import of raw materials for making medicine, lens, absorbent cotton and bandage, essential oil, aroma, cosmetics, hygiene products and medical equipment
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports from India, France, Germany, Australia, The United Kingdom, Canada, America, Japan, Thailand, Singapore, Korea, and Italy.
EXPORT: N/A
BANKERS
1. VIETNAM BANK FOR FOREIGN TRADE (VIETCOM BANK)
Address			No.198 Tran Quang Khai Str, Hanoi city
Tel			(84-4) 8251322, 8265503, 9343137
Fax			(84-4) 8241395, 8269067
Acc USD			001.1.37.0081774
Acc VND			001.1.00.0015966
2. VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Address			No 2, Lang Ha Str, Ba Dinh Dist, Hanoi city
Tel			(84-4) 8313733 – 8313710
Fax			(84-4) 8313717 – 8313719
Swift			VBAAVNX
Telex			411-322 VBAVT
3. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM (INCOMBANK)– Transaction Office No.1
Address		No.10 Le Lai Str, Hanoi city
Tel		(84-4) 9349590
Acc USD		10202 00000 01866
Acc VND		10201 00000 28055
Note: The given banker’s name “Vietincombank” was former name of Incombank. Accout no. 710A 00602 was former account number of the subject in Incombank. It was changed to new account number following new rule of Vietnam banks system.
SHAREHOLDER(S)
The subject is a State Owned Enterprises: 100% State owned shares.
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Good
Liquidity		Normal
Previous Payments		Average
Past Financial Situation		Developed
Current Financial Situation		Fairly good
Legal Action		No recorded
Bankruptcy		No recorded
Mode of Payment		Direct payment or through its corresponding bank
Sales methods		Sales direct to clients or through its agents
FINANCIAL DATA
BALANCE SHEET
Unit: Million VND
Balance Sheet Date				31/12/06	31/12/05	31/12/04	31/12/03
Number of Weeks				52	52	52	52
ASSETS
A. Current assets & Short term Investment				378,200	266,973	208,232	171,545
I. Cash and cash equivalents				30,935	22,038	11,392	9,355
II. Short term investment				0	0	0	0
1. Short-term securities investment				0	0	0	0
2. Other short-term investment				0	0	0	0
3. Provision for discount on short-term investment				0	0	0	0
III. Receivables				175,191	118,865	96,524	74,325
1. Receivables from customers				168,789	116,953	97,313	74,085
2. Prepaid for providers				0	35	9	19
3. Value-added tax deducted				1,298	1,209	230	165
4. Internal receivables				92	0	0	0
5. Other receivables				7,262	2,068	109	717
6. Provision for bad receivables				-2,250	-1,400	-1,137	-661
IV. Inventory				170,470	123,635	98,628	86,961
1. Purchased goods in transit				0	7,774	6,473	6,320
2. Inventory raw materials				0	0	0	0
3. Inventory appliance				0	0	0	0
4. Cost of production and business in process				0	0	0	0
5. Inventory finished products				0	0	0	0
6. Inventory cargoes				171,616	116,995	93,074	81,469
7. Entrusted goods for sale				0	0	0	0
8. Provision for devaluation of stocks				-1,146	-1,134	-919	-828
V. Other current assets				1,604	2,435	1,688	904
1. Advances				0	144	270	257
2. Prepaid expenses				0	0	0	0
3. Pending expenses for transfer				0	0	0	0
4. Tax and accounts receivable to State budget				1,604	0	0	0
5. Other current assets				0	2,291	1,418	647
VI. Administrative				0	0	0	0
1. Administrative expenses for previous year				0	0	0	0
2. Administrative expenses for current year				0	0	0	0
B. Fixed assets & Long term investment				22,582	18,676	12,008	8,186
I. Fixed assets				13,062	15,086	12,008	7,616
1. Tangible fixed assets				7,035	9,327	12,008	7,616
+ Original cost				28,217	27,481	26,704	19,630
+ Accumulated depreciation value				-21,182	-18,154	-14,696	-12,014
2. Fixed assets of financing credit				0	0	0	0
+ Original cost				0	0	0	0
+ Accumulated depreciation value				0	0	0	0
3. Intangible fixed assets				6,027	5,759	0	0
+ Original cost				7,337	5,759	0	0
+ Accumulated depreciation value				-1,310	0	0	0
II. Long term investment				9,336	3,590	0	0
1. Long-term securities investment				0	239	0	0
2. Joint-venture capital contribution				6,300	3,351	0	0
3. Other long-term investment				3,036	0	0	0
4. Provision for long-term investment devaluation				0	0	0	0
III. Capital construction in process				0	0	0	570
IV. Other				184	0	0	0
TOTAL ASSETS				400,782	285,649	220,240	179,731
LIABILITIES
A. Payables				332,948	222,883	162,319	128,088
I. Short term payables				332,948	222,883	162,319	128,088
1.Short-term borrowings				115,892	70,548	80,903	63,939
2. Due long-term liabilities				0	0	0	1,712
3. Payable to seller				192,128	140,524	74,199	56,293
4. Prepaid for buyer				12,451	3,562	2,668	2,125
5. Taxes and accounts dutiable				2,329	717	-1,234	-431
6. Employee payments				6,904	5,778	4,258	3,666
7. Internal payments				0	0	0	0
8. Other payables				3,244	1,754	1,525	784
II. Long term payables				0	0	0	0
1. Long-term borrowing				0	0	0	0
2. Long-term loans				0	0	0	0
III. Other liabilities				0	0	0	0
1. Disbursed payable				0	0	0	0
2. Pending assets				0	0	0	0
3. Receipts long-term collateral and deposit				0	0	0	0
B. Owner’s Equity				67,834	62,766	57,921	51,643
I. Capital and Funds				62,666	58,639	55,199	49,887
1. Paid-in Capital				56,827	54,459	48,892	43,866
2. Differences from assets revaluation				0	0	0	0
3. Exchange rate differences				0	117	0	0
4. Business development fund				2,059	1,557	3,170	3,736
5. Reserved fund				3,197	2,506	1,867	1,016
6. Retained profit				183	0	0	0
7. Construction capital sources				0	0	1,270	1,269
8. Other budget				400	0	0	0
II. Other administrative and fund sources				5,168	4,127	2,722	1,756
1. Provident funds for unemployment				623	521	439	366
2. Welfare and reward funds				4,545	3,606	2,283	1,345
3. Management funds of higher level				0	0	0	0
4. Functional operation funds				0	0	0	45
+ Functional operation funds				0	0
+ Functional operation funds				0	0
5. Fund sources formed by fixed assets				0	0	0	0
TOTAL LIABILITY AND EQUITY				400,782	285,649	220,240	179,731
PROFIT & LOSE ACCOUNTS
Description				FY 2006	FY 2005	FY 2004	FY 2003
Total revenue				930,271	1,132,234	838,822	726,809
Deducted Items				1,192	588	405	793
- Discount				1,192	0	0	0
- Devaluation of sale price				0	193	113	101
- Return of sold goods				0	395	292	692
- Turnover tax, excise tax, import and export duties to be paid				0	0	0	0
1. Net revenue				929,079	1,131,646	838,417	726,016
2. Original rate of goods for sale				862,507	1,077,108	787,580	686,559
3. Combined Profit				66,572	54,538	50,837	39,457
4. Sales costs				40,904	33,318	27,439	23,605
5. Enterprise administrative costs				7,426	5,619	5,039	4,409
6. Net income from business activity				18,242	15,601	18,359	11,443
Income from financial activities				721	270	264	349
Costs of financial activities				8,453	6,779	9,968	6,706
7. Net income from financial operation				-7,732	-6,509	-9,704	-6,357
Irregular income				0	4	92	7
Irregular expenditure				0	0	0	0
8. Irregular Profit				0	4	92	7
9. Total pre-tax profit				10,510	9,096	8,747	5,093
10. Income tax				2,943	2,547	2,449	1,630
11. After tax profit				7,567	6,549	6,298	3,463
FINANCIAL FACTORS
Description				FY 2006	FY 2005	FY 2004	FY 2003
Current Liquidity Ratio				1.14	1.20	1.28	1.34
Quick Liquidity Ratio				0.62	0.64	0.68	0.66
Inventory Circle				5.06	9.69	8.49	7.90
Average Receivable Period (days)				68.83	38.34	42.02	37.37
Utilizing Asset performance				2.32	3.96	3.81	4.04
Liabilities / Total Assets (%)				83.07	78.03	73.70	71.27
Liabilities / Owner’s Equity (%)				490.83	355.10	280.24	248.03
Income before tax/Total assets (%) ROA				2.62	3.18	3.97	2.83
Income before tax / Owner’s Equity (%) ROE				15.49	14.49	15.10	9.86
Income before tax/Total revenues (%) NPM				1.13	0.80	1.04	0.70
Gross profit /Total revenues (%) GPM				7.16	4.82	6.06	5.43
Note: - Total revenue in first 9 months 2007 is 850 billion VND, in which profit is 10 billion VND
INTERPRETATION
Central Pharmaceutical Company Limited specializes in trading in pharmaceutical products and raw material for pharmaceutical industry. The subject imports raw materials for making medicine, lens, absorbent cotton and bandage, essential oil, aroma, cosmetics, hygiene products and medical equipment. It was established in 1993 as a State owned company according to the decision No. 408/BYT-QD by the Ministry of Health. Now, the subject is a member of Vietnam Pharmaceutical Corporation. The subject is one of state owned companies operating effectively. Now, Pharmaceutical branch in Vietnam is developing strongly and gets good results. It is a chance for the subject to develop more and more. Currently, the subject is a distribution unit that occupies over 10% in Vietnam market. The subject’s premises are big but not very standard. Management capability is acceptable. Business activities are busy. At present, the subject has 300 employees. Financial status of the subject is fairly good. Total annual turnover is fairly high and increased more and more. According to Mrs. Tran Thuy Khanh – Deputy Director and Chief Accountant of the subject, total revenue in 2006 was 932 billion VND, in which the after tax profit was 10.5 billion VND. Total revenue in 9 months of 2007 is 850 billion VND and the profit is about 10 billion VND. In general, the financial and operational bases of the subject are fair. General unfavourable factors will not cause fatal effect. The subject is capable to meet normal commitments and a little caution needed for big transactions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.43.34
UK Pound	1	Rs.86.52
Euro	1	Rs.68.54

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%)

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