MIRA INFORM REPORT

Report Date :

19.06.2008

IDENTIFICATION DETAILS

Name :	VIETNAM CANADA CAPSULE ENTERPRISE
Registered Office :	No. 21B, Phan Dinh Phung Str, Ward 8, Vinh Long Town, Vinh Long Province
Country :	Vietnam
Financials (as on) :	31.12.2007
Date of Incorporation :	1996
Com. Reg. No.:	310695
Legal Form :	Belonged Factory of Joint Stock Company
Line of Business :	Manufacturing and Trading Gelatin Capsule

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 :	Usually Correct
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
Former Legal Information:
English Name			VIETNAM CANADA CAPSULE ENTERPRISE
Vietnamese name			NHA MAY SAN XUAT CAPSULE
Trade Name			VICANCAP
Type of Business			Belonged factory of joint stock company
Founded			1996
Established Decision No.			9/QDTL-96
Issuance			October 11^th, 1996
Issuance			Vinh Long People Committee
Business Registration No.			310695
Issuance			October, 1996
Issuance			Planning and investment department of Vinh Long Province
Tax Code			1500202535-022
Current Legal Information:
The subject now is belonged factory of Cuu Long Pharmaceutical Js Co - PHARIMEXCO, following is the information of Cuu Long Pharmaceutical Js Co – PHARIMEXCO:
English Name		CUU LONG PHARMACEUTICAL JOINT STOCK COMPANY
Vietnamese name		CONG TY CO PHAN DUOC PHAM CUU LONG
Abbreviated Name		PHARIMEXCO
Address		No. 150, 14-9 Road, Ward 5 Vinh Long Town, Vinh Long Province
Country		Vietnam
Tel		(84-70) 822533
Fax		(84-70) 822129
Email		pharimexco@hcm.vnn.vn
Website		www.pharimexco.com.vn
Founded		1976
Type of Business		Joint Stock Company
Equitization		2004
Equitization Decision		No. 3214/QD-UB
Date of Issuance		August 09^th 2004
Place of Issuance		Vinh Long People’s Committee
Business Registration		No. 5403000021
Date of Issuance		November 09^th 2004
Place of Issuance		Vinh Long Department of Planning and Investment
Current registered capital		81,000,000,000 VND
Former registered capital		56,000,000,000 VND
Tax code		1500202535
ADDRESS
Head Office
Address			No. 21B, Phan Dinh Phung Str, Ward 8, Vinh Long Town, Vinh Long Province
Country			Vietnam
Tel			(84-70) 825316/ 895605
Fax			(84-70) 821183
Email			vpcpharimexco-ca@hcm.vnn.vn
DIRECTORS
1. NAME			Mr. DIEU NGOC HUAN
Position			Director
Resident			Vinh Long Province
Nationality			Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject is specialized in manufacturing and trading gelatin capsule
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject’s materials are imported from EU countries
EXPORT: Now, Its products are exported to Cambodia, Lao.
BANKERS
1. BANK FOR FOREIGN TRADE OF VIETNAM (VIETCOMBANK) – VINH LONG BRANCH
Address	No. 143 Le Thai To Str, Vinh Long Town, Vinh Long Province
Country	Vietnam
Tel	(84-70) 833583
Fax	(84-70) 830562
2. BANK FOR INVESTMENT AND DEVELOPMENT OF VIET NAM – VINH LONG BRANCH
Address	No. 50 Nguyen Hue St., Ward 2, Vinh Long Town, Vinh Long Province
Country	Vietnam
Tel	(84-70) 863086
Fax	(84-70) 824928
SHAREHOLDERS
The subject is a factory, 100% capital is owned by the parent company, following is some information its parent company:
Name		CUU LONG PHARMACEUTICAL JOINT STOCK COMPANY
Address		No. 150, 14-9 Road, Ward 5 Vinh Long Town, Vinh Long Province
Country		Vietnam
Tel		(84-70) 822533
Fax		(84-70) 822129
		pharimexco@hcm.vnn.vn
Website		www.pharimexco.com.vn
Share		100%
FINANCIAL DATA
The subject is a belonged factory so its financial statement is not available. Following is the financial data of the parent company, we give you for reference.
BALANCE SHEET
Unit: Million VND
Balance sheet date					31/12/2007		31/12/2006
Number of weeks					52		52
ASSETS
A – CURRENT ASSETS					266,185		124,781
I. Cash and cash equivalents					6,308		9,707
1.Cash					-		-
2.Cash equivalents					-		-
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					162,434		53,988
1. Receivable from customers					-		45,084
2. Prepayments to suppliers					-		2,981
3. Inter-company receivable					-		0
4. Receivable according to the progress of construction					-		0
5. Other receivable					-		5,923
6. Provisions for bad debts					-		0
IV. Inventories					91,327		59,083
1. Inventories					-		59,083
2. Provisions for devaluation of inventories					-		0
V. Other Current Assets					6,116		2,003
1. Short-term prepaid expenses					-		-
2. VAT to be deducted					-		-
3. Taxes and other accounts receivable from the State					-		-
4. Other current assets					-		-
B. LONG-TERM ASSETS					141,633		138,421
I. Long term account receivable					-		-
1. Long term account receivable from customers					-		-
2. Working capital in affiliates					-		-
3. Long-term inter-company receivable					-		-
4. Other long-term receivable					-		-
5. Provisions for bad debts from customers					-		-
II. Fixed assets					140,625		137,413
1. Tangible assets					124,992		131,569
Historical costs					-		226,391
Accumulated depreciation					-		-94,822
2. Financial leasehold assets					0		0
Historical costs					0		0
Accumulated depreciation					0		0
3. Intangible assets					10,766		5,255
Initial costs					-		5,255
Accumulated amortization					-		-
4. Construction-in-progress					4,867		589
III. Investment property					0		0
Historical costs					0		0
Accumulated depreciation					0		0
IV. Long-term investments					1,008		1,008
1. Investments in affiliates					-		-
2. Investments in business concerns and joint ventures					-		1,008
3. Other long-term investments					-		-
4. Provisions for devaluation of long-term investments					-		-
VI. Other long-term assets					0		0
1. Long-term prepaid expenses					0		0
2. Deferred income tax assets					0		0
3. Other long-term assets					0		0
TOTAL ASSETS					407,818		263,202
LIABILITIES
A- LIABILITIES					165,976		189,677
I. Current liabilities					132,564		155,648
1. Short-term debts and loans					-		121,678
2. Payable to suppliers					-		1,540
3. Advances from customers					-		663
4. Taxes and other obligations to the State Budget					-		3,909
5. Payable to employees					-		14,620
6. Accrued expenses					-		0
7. Inter-company payable					-		0
8. Payable according to the progress of construction contracts					-		0
9. Other payable					-		13,238
10. Provisions for short-term accounts payable					-		0
II. Long-Term Liabilities					33,412		34,029
1. Long-term accounts payable to suppliers					-		-
2. Long-term inter-company payable					-		-
3. Other long-term payable					-		-
4. Long-term debts and loans					-		-
5. Deferred income tax payable					-		-
6. Provisions for unemployment allowances					-		-
7. Provisions for long-term accounts payable					-		-
B- OWNER'S EQUITY					241,842		73,525
I. Owner's equity					241,425		71,621
1. Capital					81,000		56,000
2. Share premiums					110,556		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		94
7. Business promotion fund					11,578		4,641
8. Financial reserved fund					0		1,432
9. Other funds					0		0
10.Retained earnings					38,271		0
11. Construction investment fund					20		9,454
II. Other sources and funds					417		1,904
1. Bonus and welfare funds					417		1,904
2. Sources of expenditure					0		0
3. Fund to form fixed assets					0		0
TOTAL LIABILITIES AND OWNER'S EQUITY					407,818		263,202
PROFIT & LOSS STATEMENT
Description				FY 2007			FY 2006
Revenue				367,967			348,404
Deductions Items				6,082			1,907
Net Revenue				361,885			346,497
Costs of goods sold				274,166			291,100
Gross profit				87,719			55,397
Financial income				930			593
Financial expenses				9,222			13,619
In which: Loan interest expenses
Selling expenses				19,196			14,913
Administrative overheads				11,570			9,064
Net operating profit				48,661			18,394
Other income				1,031			646
Other expenses				1,721			1,468
Other profit /(loss)				-690			(822)
Total accounting profit before tax				47,971			17,572
Current corporate income tax				4,797			0
Deferred corporate income tax				0			0
Profit after tax				43,174			17,572
FINANCIAL FACTORS
Description						2007		2006
Current liquidity ratio						2.01		0.80
Quick Liquidity ratio						1.32		0.42
Inventory circle						3.65		4.93
Average receive period						163.83		56.87
Utilizing Asset Performance						0.89		1.32
Liability/ Total Asset (%)						40.70		72.07
Liability/ Owner's equity (%)						68.63		257.98
Income before tax/ Total asset (%) ROA						11.76		6.68
Income before tax/ Owner's equity (%) ROE						19.84		23.90
Income before tax/ Total revenue (%) NPM						13.04		5.04
Gross Profit / Total revenue (%) GPM						23.84		15.90
PAYMENT HISTORY AND EXPERIENCES
Trade Morality			Fairly good
Liquidity			Relative
Current Payment			Fairly Prompt
Current Financial Situation			Fairly Good
Litigation Data			No recorded
Bankruptcy			No recorded
Public opinion			Fairly good
Payment Methods			Through its parent company
INTERPRETATION ON THE SCORES
VICANCAP factory was established in 1996 under the established decision no. 9/QDTL-96. It formally started operation since 1999. The subject is specialized in manufacturing and trading gelatin capsule. It now is belonged factory of CUU LONG PHARMACEUTICAL JOINT STOCK COMPANY (Pharimexco). Pharimexco has more than 30 years of experience in Pharmaceutical, Cosmetic and Medical Facilities Manufacture. With different kinds using pharmaceutical chemicals and natural vegetation under international and national standard modern technology (ISO 9001, 2000, GMP – GLP – GSP), Pharimexco’s products are highly appreciated in all regions in Vietnam as well as in some developed countries in the World. Pharimexco has relationships with many International Company to manufacture products and Import pharmaceuticals, cosmetics, pharmaceutical chemicals, medical facilities and special medication tools for Pharmacy and Health Service Industry. The subject operates with the capacity of 1.5 billion capsules per year and up to now 2 billion capsules per year. Its technology is of Northern America from size 0 to size 3. The Vicancap factory is the unique in Vietnam to make gelatin capsules under the Canadian technology. The firm is setting up plans for the construction of another factory to double its capacity to 4 billion capsules year by 2007. Pharimexco established VICANCAP Factory (Vietnam – Canada). This is the only high-tech factory specialized in producing Capsule in Vietnam which was build and transferred by Canada. Each year, VICANCAP gives out about 2 billion production unit with high quality at competitive price and works as a sole distributor to most Companies, Enterprises in Vietnam, replaces import products. Formerly, its products were exported to Indonesia, Myanmar, Cambodia, Laos. However, due to big demand in local market, the subject only exports to Lao and Cambodia with small quantity. Pharimexco built a factory Vicancap II capacity of 2.25 billion units / year with total investment of 10 million USD. This plant is expected to operate in the end of 2008. Along with proper investment to pharmaceutical factory, VICANCAP also produce many items with high quality for domestic demand as well as export. The subject is now operating well and has good development. It is expecting chance to expand market share and increase capacity.

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