MIRA INFORM REPORT

Report Date :

26.06.2008

IDENTIFICATION DETAILS

Name :	MINH DAN PHARMACEUTICAL JOINT STOCK COMPANY
Registered Office :	Lot E2, Road N4, Hoa Xa Industrial Zone, Nam Dinh Province
Country :	Vietnam
Financials (as on) :	31.12.2007
Date of Incorporation :	2004
Com. Reg. No.:	0703000511
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Trading Pharmaceutical Products, Medial, Medical Equipments and Materials

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 :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM

English registered name	MINH DAN PHARMACEUTICAL JOINT STOCK COMPANY
Vietnamese registered name	CONG TY CO PHAN DUOC PHAM MINH DAN
Registered shortened name	MDPHARCO
Type of Business	Joint stock company
Founded	2004
Business Registration	0703000511
Issuance on	November 23^rd, 2004
Issuance by	Planning and investment department of Nam Dinh Province
Registered Capital	11,000,000,000 VND
Tax code	0600337774
Total Employees	170 employees

ADDRESSES

Head Office and factory:
Address	Lot E2, Road N4, Hoa Xa Industrial Zone, Nam Dinh Province
Country	Vietnam
Tel	(84-3503) 671629/ 086/ 668
Fax	(84-3503) 671113
Email	mdpharco@minhdan.com.vn
Website	www.minhdan.com.vn

DIRECTORS

1. NAME	Mr. NGUYEN HUY SAN
Position	Director/ representative by law
Date of birth	May 12^th, 1959
ID No	162117144
Issued on	September 1^st, 1995
Issued by	Police station of Nam Ha Province
Resident	63C, Lot 20, Ha Long Ward, Nam Dinh City, Nam Dinh Province
Nationality	Vietnamese
2. NAME	Mr. NGUYEN THE DUNG
Position	Managing director
Nationality	Vietnamese
3. NAME	Mr. DANG NGOC VINH
Position	Deputy director
Date of birth	1974
Nationality	Vietnamese
4. NAME	Mr. PHAM VAN SAU
Position	Deputy director
Date of birth	1973
Nationality	Vietnamese
5. NAME	Mr. VU CHI NGUYEN
Position	Deputy director
Date of birth	1974
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject registers and operates in manufacturing and trading pharmaceutical products, medial, medical equipments and materials

IMPORT & EXPORT ACTIVITIES

IMPORT:

• Kinds of goods: materials for production, machines and equipments
• Market: India, Spain, China, Austria
• Ratios: 60%-70%
• Mode of payments: L/C, T/T, D/A, D/P, TTR

EXPORT: The subject company is now preparing to be granted authorization to exports its products to Laos

BANKERS

1. VIETINBANK-NAM DINH BRANCH
Address	No. 73, Quang Trung Street, Nam Dinh City, Nam Dinh Province
Country	Vietnam
Tel	84-3503 848285
2. INVESTMENT AND DEVELOPMENT BANK OF VIETNAM-NAM DINH BRANCH
3. AGRIBANK-NAM DINH BRANCH

SHAREHOLDER(S)

The subject is a Joint stock company. Following is its shareholders:
1. NAME	CONG TY CP THUONG MAI MINH DAN
English name	MINH DAN TRADING JOINT STOCK COMPANY
Address	No. 113A, La Thanh Street, Ngoc Khanh Ward, Ba Dinh District, Hanoi City
Representative person	Mr. NGUYEN THE DUNG
Share	71,500 shares
2. NAME	CONG TY CP THIET BI, DUOC PHAM VA DICH VU Y TE NAM DINH
Address	No. 145, Hoang Van Thu Street, Nam Dinh City, Nam Dinh Province
Representative person	Mr. Nguyen Huy San
Share	36,300 shares
3. NAME	Mr. NGUYEN VAN YEN
Position	Shareholder
Resident	Co Le Town, Truc Ninh District, Nam Dinh Province
Nationality	Vietnamese
Share	2,200 shares

FINANCIAL DATA

BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date	31/12/2007	31/12/2006
Number of weeks	52	52
ASSETS
A. Working assets & short-term Investment	12,386	5,469
I. Cash and cash equivalents	2,454	4,855
II. Short-term investment	0	0
1. Short-term securities investment	0	0
2. Other short-term investment	0	0
3. Provision for short-term investment	0	0
III. Receivables	8,296	13
1. Receivables from customers	5,922	0
2. Prepayment for providers	2,291	0
3. Value-added tax deducted	0	1
4. Internal receivables	0	0
5. Other receivables	83	11
6. Provision for bad receivables	0	0
IV. Inventory	1,365	0
1. Purchased goods in transit	0	0
2. Raw materials	0	0
3. Instrument, tools	0	0
4. Cost for production and business in process	0	0
5. End products	0	0
6. Goods	1,365	0
7. Goods on consignment	0	0
8. Provision for devaluation of stocks	0	0
V. Other current assets	271	601
1. Advances	0	0
2. Prepaid expenses	271	476
3. Pending expenses for transfer	0	0
4. Pending assets	0	0
5. Mortgage, collateral and short run collateral	0	125
VI. Administrative	0	0
1. Administrative expenses for previous year	0	0
2. Administrative expenses for current year	0	0
B. Fixed assets & Long term investment	24,908	17,820
I. Fixed assets	0	0
1. Tangible fixed assets	0	0
+ Original cost	0	0
+ Accumulated depreciation value	0	0
2. Financial leasing fixed assets	0	0
+ Original cost	0	0
+ Accumulated depreciation value	0	0
3. Intangible fixed assets	0	0
+ Original cost	0	0
+ Accumulated depreciation value	0	0
II. Long term investment	0	0
1. Long-term securities investment	0	0
2. Joint-venture capital contribution	0	0
3. Other long-term investment	0	0
4. Provision for long-term investment devaluation	0	0
III. Capital construction in process	24,908	17,820
IV. Other	0	0
TOTAL ASSETS	37,294	23,290
LIABILITES
A. Payable loans	19,772	9,417
I. Short term payables	11,422	1,067
1. Short-term borrowings	5,450	110
2. Due long-term liabilities	0	0
3. Payables to supplier	5,837	957
4. Prepayment of buyer	0	0
5. Taxes and accounts dutiable	0	0
6. Employee payments	84	0
7. Internal payables	0	0
8. Other payables	51	0
II. Long term loans	8,350	8,350
1. Long-term borrowings	8,350	8,350
2. Long-term payables	0	0
III. Other payables	0	0
1. Payable expenses	0	0
2. Pending assets	0	0
3. Receipts long-term collateral and deposit	0	0
B. Owner’s Equity	17,522	13,873
I. Capital and Funds	17,522	13,873
1. Working capital	11,000	13,873
2. Differences from asset revaluation	0	0
3. Exchange rate differences	0	0
4. Development investment funds	6,521	0
5. Reserved funds	0	0
6. Retained profit	1	0
7. Construction capital sources	0	0
II. Other administrative and fund sources	0	0
1. Provident funds for unemployment	0	0
2. Reward and welfare funds	0	0
3. Management funds of higher level	0	0
4. Functional operation funds	0	0
5. Fund sources formed by fixed assets	0	0
TOTAL LIABILITY AND EQUITY	37,294	23,290

PROFIT & LOSE ACCOUNT (INCOME STATEMENT)

Description	FY 2007
Total revenue	7,464
Deductions Items	0
- Discount	0
- Devaluation	0
- Return of sold goods	0
- Turnover tax, Luxury tax & Export tax	0
1. Net revenue	7,464
2. Cost of goods sold	7,138
3. Gross Profit	326
4. Sales expenses	4
5. Enterprise administrative expenses	47
6. Net income from business activities	275
Income from financial activities	1
Expenditure from financial activities	281
7. Net income from financial operation	-280
Irregular income	6
Irregular expenditure	0
8. Irregular Profit	6
9. Total pre-tax profit	1
10. Income tax	0
11. After tax profit	1

FINANCIAL FACTORS

Description	FY 2007
Current Liquidity Ratio	1.08
Quick Liquidity Ratio	0.96
Inventory Circle	5.23
Average Receive Period	405.69
Utilizing Asset Performance	0.20
Liability / Total Asset (%)	53.02
Liability / Owner's Equity (%)	112.84
Income Before Tax / Total Asset (%) ROA	2.68
Income Before Tax / Owner's Equity (%) ROE	57.7
Income Before Tax / Total Revenue (%) NPM	13.3
Gross Profit / Total Revenue (%) GPM	4.37

PAYMENT HISTORY AND EXPERIENCES

Trade Morality	Normal
Liquidity	Average
Payment status	Average
Financial Situation	Average
Development trend	Normal
Litigation data	No recorded
Bankruptcy	No recorded
Payment Methods	Through its bank, L.C, T.T, D.A 45 days, D.P
Sale Methods	Through its distributors agent

INTERPRETATION ON THE SCORES

Minh Dan Pharmaceutical Joint Stock Company was found basing on the shares of two companies which are Minh Dan Trading Joint Stock Company and Nam Dinh Medical Equipments, Pharmaceutical and Health Service Join Stock Company and one private shareholder in November of 2004.

The subject is specializing in manufacturing and trading pharmaceutical products, medial, medical equipments and materials.

Being a quite new enterprise in this trading field, the subject now has two producing workshops to manufacture penicillin and cephalosporin with capacity of 150 million in compress and film packaging tablets, 200 million capsules, 10 million fluor packages, 3 million flour jars.

Its workshops and equipments are installed based on the GMP WHO, GLP, GSP standards granted by Ministry of Health under the decision No. 134/CN-QLD issued on June 27^th, 2007.

The subject now is investing on building more workshops to produce pharmaceutical products replacing import products to supply domestic market and expected to export to foreign market.

The subject has just been found so its reputation is quite limited. It is setting up its distribution agents in Northern province of Vietnam.

In the hard competitive pharmaceutical environment in Vietnam recently, the subject needed to save its expense to reduce price to have standing in domestic market and exist in the industry.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.42.79
UK Pound	1	Rs.85.04
Euro	1	Rs.67.39

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