MIRA INFORM REPORT

Report Date :

30.07.2008

IDENTIFICATION DETAILS

Name :	BEN TRE PHARMACEUTICAL JOINT-STOCK COMPANY
Formerly Known As :	BENTRE PHARMACEUTICAL AND MEDICAL EQUIPMENT COMPANY
Registered Office :	6A3 National Road 60, Phu Khuong Ward, Ben Tre Town, Ben Tre Province
Country :	Vietnam
Financials (as on) :	31.12.2007
Date of Incorporation :	1976
Com. Reg. No.:	5503000017
Legal Form :	Joint Stock Company
Line of Business :	Import and Trade in Pharmaceutical Raw Materials, Medicine Products, Medical Equipments and Manufacturing Non Beta-Lactam Products.

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 :	Good
Payment Behaviour :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM

English Name	BEN TRE PHARMACEUTICAL JOINT-STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN DUOC PHAM BEN TRE
Trade name	BEPHARCO
Original Founded	1976
Type of Business	Joint Stock Company
Decision of equitization	1541/QD-UB
Issued on	May 06^th, 2004
Issued by	People’s Committee of Ben Tre Province
Business Registration No	5503000017
Issued on	July 5^th, 2004 (the last changed on January 31^st, 2008)
Issued by	Ben Tre Department of Planning and Investment
Current Registered Capital	30,000,000,000 VND
Former Registered Capital	20,000,000,000 VND
Tax Code	1300382591
Employees	About 300 employees
Former Legal Information
Former English name	BENTRE PHARMACEUTICAL AND MEDICAL EQUIPMENT COMPANY
Former Vietnamese Name	CONG TY DUOC VA VAT TU Y TE BEN TRE
Type of Business	State Owned Enterprise
Decision of Foundation	987/QD-UB
Issued on	December 1^st,, 1992
Issued by	People’s Committee of Ben Tre Province
Registered Capital	5,586,000,000 VND

ADDRESSES

Head Office and factory:
Address	6A3 National Road 60, Phu Khuong Ward, Ben Tre Town, Ben Tre Province
Country	Vietnam
Tel	(84-75) 827467/ 813447, 822429, 829528
Fax	(84-75) 824248
Email	bepharco@hcm.vnn.vn
Website	www.berpharco.com
Hanoi Office:
Address	No 9, Branch 12/2, Nguyen Phuc Lai Str, O Cho Dua Ward, Dong Da Dist, Hanoi City
Tel	(84-4) 5147604
Fax	(84-4) 5147605
Email	bepharcohn@fpt.vn
Da Nang Office:
Address	No. 408 Le Duan Str, Chinh Gian Ward, Thanh Khe Dist, Da Nang City
Tel	(84-511) 3646548 / 3647289
Fax	(84-511) 3646548
Email	bepharcodng@vnn.vn
Hochiminh Office:
Address	436B/76, 3-2 Str, Ward 12, Dist 10, Hochiminh City, Vietnam
Tel	(84-8) 8632146
Fax	(84-8) 8632115
Email	bepharcohcm@hcm.vnn.vn
Can Tho Branch Office:
Address	No. 176B Tran Quang Dieu Str, An Thoi Ward, Binh Thuy Dist, Can Tho city
Tel	(84-71) 887859
Fax	(84-71) 888392

JOINT-VENTURE COMPANY

Name	MAYER-BPC JOINT VENTURE COMPANY LTD (MAYER-BPC)
Address	6A3 National Road 60, Phu Khuong Ward, Ben Tre Town, Ben Tre Province
Country	Vietnam
Tel	(84-75) 822428, 817571
Fax	(84-75) 817573
Main Business	Manufacturing non teta-lactam.
Shareholders	BENTRE PHARMACEUTICAL JOINT-STOCK COMPANY (60%) AND MEYER PHARMACEUTICAL COMPANY LTD, HONGKONG (40%).

DIRECTORS

1. NAME	Mr. DINH VAN BICH
Position	Chairman
Date of birth	December 20^th, 1949
ID No	320001481
Dated on	February 20^th, 1978
Issued by	Police Station of Ben Tre Province
Qualification	Management and Pharmacist
Resident	No.200A4 National Road 60, Phu Khuong Ward, Ben Tre Town.
Nationality	Vietnamese
2. NAME	Mr. NGUYEN VIET SON
Position	Director
Date of birth	February 10^th, 1952
Qualification	Management and Pharmacist
Resident	Tan Binh Hamlet, Tan Thuy Commune, Ba Tri Dist, Ben Tre Province
Nationality	Vietnamese
3. NAME	Mr. NGUYEN VAN NEN
Position	Deputy Director
Date of birth	October 22^nd, 1954
Qualification	Management and Pharmacist
Resident	No 91^A, Str 30/4, Ward 3, Ben Tre Town, Ben Tre Province
Nationality	Vietnamese
4. NAME	Mr. DUONG THANH DONG
Position	Deputy Director
Date of birth	November 22^nd, 1953
Qualification	Management and Pharmacist
Resident	No. 25 Nguyen Hue Str, Ward 1, Ben Tre Town, Ben Tre Province
Nationality	Vietnamese
5. NAME	Ms. TRAN THI NGOC PHUONG
Position	Deputy Director
Year of birth	1964
Nationality	Vietnamese
6. NAME	Mr. NGUYEN VAN CHI CUONG
Position	Chief Accountant
Year of birth	1967
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject specializes in import & trade in pharmaceutical raw materials, medicine products, medical equipments and manufacturing non beta-lactam products.

IMPORT & EXPORT ACTIVITIES

IMPORT: Main imported markets of the subject are Australia, Hungary, India, France, Korea, Hong Kong, New Zealand, Germany, Thailand, China, Singapore…

EXPORT: N/A

BANKERS

1. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM (INCOMBANK) – Ben Tre branch
Address	No. 142 Nguyen Dinh Chieu Str, Ward 2, Ben Tre Town, Ben Tre province
Country	Vietnam
Tel	(84-75) 829540
2. VIETCOMBANK
Address	No.29 Ben Chuong Duong Str, Hochiminh City
Country	Vietnam
Tel	(84-8) 8251317
Fax	(84-8) 8297228
Telex	811234/5 VVB-VT
Swift	BFTVVBVX 007
3. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM
Address	Ben Tre Town, Ben Tre Province
Country	Vietnam
Tel	(84-75) 826084

SHAREHOLDER(S)

The subject is a Joint Stock Company. Following is its founding shareholders:
STATE ONWED SHARES: 1,020,000 shares
Representative person	Mr. DINH VAN BICH
Position	Chairman
Date of birth	December 20^th, 1949
ID No	320001481
Dated on	February 20^th, 1978
Issued by	Police Station of Ben Tre Province
Resident	No 179, Nguyen Dinh Chieu Str, Ward 2, Ben Tre Town, Ben Tre Province .
PRIVATE SHAREHOLDERS:
1. NAME	Mr. DINH VAN BICH
Position	Chairman
Date of birth	December 20^th, 1949
ID No	320001481
Dated on	February 20^th, 1978
Issued by	Police Station of Ben Tre Province
Resident	No 179, Nguyen Dinh Chieu Str, Ward 2, Ben Tre Town, Ben Tre Province .
Nationality	Vietnamese
Share	25,410 shares
2. NAME	MR. NGUYEN VAN NEN
Position	Deputy Director
ID No	320869631
Address	91A, 30-4 Str, Ward 3, Ben Tre Town, Ben Tre Province
Nationality	Vietnamese
Shares	20,220 shares
3. NAME	LE PHUONG LE
Position	Shareholder
Address	83B Truong Dinh Str, Ward 6, Ben Tre town, Ben Tre Province
Nationality	Vietnamese
Shares	4,899 shares

FINANCIAL DATA

BALANCE SHEET
Unit: Million VND
Balance sheet date	31/12/2007	31/12/2006
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	137,814	112,004
I. Cash and cash equivalents	2,996	1,967
1.Cash	2,996	1,967
2.Cash equivalents	0	0
II. Short-term investments	0	0
1. Short-term investments	0	0
2. Provisions for devaluation of short-term investments	0	0
III. Accounts receivable	62,316	53,553
1. Receivable from customers	41,113	52,769
2. Prepayments to suppliers	20,275	360
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	928	424
6. Provisions for bad debts	0	0
IV. Inventories	69,410	53,461
1. Inventories	71,840	53,461
2. Provisions for devaluation of inventories	-2,430	0
V. Other Current Assets	3,092	3,023
1. Short-term prepaid expenses	0	0
2. VAT to be deducted	464	419
3. Taxes and other accounts receivable from the State	0	0
4. Other current assets	2,628	2,604
B. LONG-TERM ASSETS	31,456	30,648
I. Long term account receivable	0	0
1. Long term account receivable from customers	0	0
2. Working capital in affiliates	0	0
3. Long-term inter-company receivable	0	0
4. Other long-term receivable	0	0
5. Provisions for bad debts from customers	0	0
II. Fixed assets	17,788	16,972
1. Tangible assets	15,708	5,662
Historical costs	20,893	9,939
Accumulated depreciation	5,185	4,277
2. Financial leasehold assets	0	0
Historical costs	0	0
Accumulated depreciation	0	0
3. Intangible assets	1,844	1,849
Initial costs	1,851	1,851
Accumulated amortization	7	2
4. Construction-in-progress	236	9,461
III. Investment property	65	0
Historical costs	125	53
Accumulated depreciation	60	53
IV. Long-term investments	9,734	9,722
1. Investments in affiliates	0	0
2. Investments in business concerns and joint ventures	9,447	9,447
3. Other long-term investments	287	275
4. Provisions for devaluation of long-term investments	0	0
VI. Other long-term assets	3,869	3,954
1. Long-term prepaid expenses	3,854	3,954
2. Deferred income tax assets	15	0
3. Other long-term assets	0	0
TOTAL ASSETS	169,270	142,652
LIABILITIES
A- LIABILITIES	101,233	116,979
I. Current liabilities	93,432	101,644
1. Short-term debts and loans	65,193	47,465
2. Payable to suppliers	20,654	47,699
3. Advances from customers	3,467	1,547
4. Taxes and other obligations to the State Budget	475	253
5. Payable to employees	2,857	4,180
6. Accrued expenses	0	0
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	786	500
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	7,801	15,335
1. Long-term accounts payable to suppliers	0	0
2. Long-term inter-company payable	0	0
3. Other long-term payable	3,279	10,172
4. Long-term debts and loans	4,392	5,036
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	130	127
7. Provisions for long-term accounts payable	0	0
B- OWNER'S EQUITY	68,037	25,673
I. Owner's equity	67,987	25,623
1. Capital	30,000	17,549
2. Share premiums	26,494	0
3. Other sources of capital	0	0
4. Treasury stocks	0	0
5. Differences on asset revaluation	0	0
6. Foreign exchange differences	0	0
7. Business promotion fund	0	2,389
8. Financial reserved fund	0	0
9. Other funds	0	62
10.Retained earnings	11,493	5,623
11. Construction investment fund	0	0
II. Other sources and funds	50	50
1. Bonus and welfare funds	0	0
2. Sources of expenditure	50	50
3. Fund to form fixed assets	0	0
TOTAL LIABILITIES AND OWNER'S EQUITY	169,270	142,652

PROFIT & LOSE STATEMENT

Description	FY 2007	FY 2006
Revenue	296,826	255,517
Deductions Items	1,050	777
Net Revenue	295,776	254,740
Costs of goods sold	243,336	222,003
Gross profit	52,440	32,737
Financial income	725	138
Financial expenses	9,021	7,039
In which: Loan interest expenses	8,870	6,152
Selling expenses	33,794	2,969
Administrative overheads	8,553	19,535
Net operating profit	1,797	3,332
Other income	12,552	13,090
Other expenses	3,914	10,667
Other profit /(loss)	8,638	2,423
Total accounting profit before tax	10,435	5,755
Current corporate income tax	1,468	0
Deferred corporate income tax	15	0
Profit after tax	8,982	5,755

FINANCIAL FACTORS

Description	2007	2006
Current liquidity ratio	1.48	1.10
Quick Liquidity ratio	0.73	0.58
Inventory circle	3.96	4.15
Average receive period	93.47	88.05
Utilizing Asset Performance	1.44	1.56
Liability/ Total Asset (%)	59.81	82.00
Liability/ Owner's equity (%)	148.79	455.65
Ebit/ Total asset (%) ROA	11.40	8.35
Ebit/ Owner's equity (%) ROE	28.37	46.38
Ebit/ Total revenue (%) NPM	6.50	4.66
Gross Profit / Total revenue (%) GPM	17.67	12.81

PAYMENT HISTORY AND EXPERIENCES

Trade Morality	Fair
Liquidity	Above average
Payment Status	Above average
Current Financial Situation	Fair
Legal Action	No Recorded
Bankruptcy	No Recorded
Reputation	Fairly Good
Methods Of Payment	Direct Payment Or Through Its Corresponding Bank. L/C, TT
Sales Methods	Direct to clients or through its agents

INTERPRETATION ON THE SCORES

Ben Tre Pharmaceutical Joint Stock Company was equitized in 2004 according to equitizaton decision of People’s Committee of Ben Tre Province. Formerly, the subject was a 100% State Owned Company. In 1983, Ben Tre Pharmaceutical Conjugate Enterprise was established to basing on the merger between Ben Tre Pharmaceutical Company (founded in 1976) and Ben Tre Pharmaceutical Enterprise (founded in 1978). In 1992, Ben Tre Pharmaceutical Conjugate Enterprise changed its name to Bentre Pharmaceutical And Medical Equipment Company. In 2004, it changed into joint stock company. Currently, the subject’s registered capital is 30,000,000,000 VND.

The subject has good relationship with domestic and foreign partners. The subject is distributor for foreign partners such as Egis, Helm, AG, Cipla, Raptakos, Meyer, Gedeon Ruchter, Lactose Newzealand, Neo Unicap, Aceto PTE of many countries such as Australia, Hungary, India, France, Korea, Hong Kong, New Zealand, Germany, Thailand, China, and Singapore.

The premises and facilities of the subject are big. The subject’s scale is fair. The subject has 4 branches in Hanoi City, Da Nang City, Can Tho Province and Hochiminh City. Besides, the subject holds pharmaceutical shops and agency system nationwide. The subject contributed capital with Meyer Pharmaceuticals Ltd.Co (Hong Kong) to set up Mayer-Bpc Joint Venture Company Ltd.

The management capability of the subject is above average. The business operations of the subject are quite busy. Its local market share is quite good. Currently, the subject has about 300 employees. The subject has won awards “The Viet Brand Name Golden Cup” in many years. The subject has receives ISO 9001:2000 quality management systems and others.

According to financial data, the subject’s financial situation is fair. The growth revenue in 2007 was 116.2% and the growth profit before tax was 181.3%. ROA and ROE ratios in 2007 were fair. The solvency of the subject in 2007 was satisfactory. One unit of the short term liabilities was guaranteed by 0.78 units of the quick liquidity assets. The solvency in 2007 was better than in 2006. The structure of the capital of the subject was relatively safe for creditors. Liabilities held 59.81% in total capital. In short, the subject operates relatively effectively.

In general, the overall financial and operation bases of the subject is considered fairly good. The business of the subject is stable and development. The subject has capacity to meet financial commitments and no caution needed for small and normal business transactions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.42.47
UK Pound	1	Rs.84.00
Euro	1	Rs.66.14

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