MIRA INFORM REPORT

Report Date :

30.08.2011

IDENTIFICATION DETAILS

Name :	VACOPHARM PHARMACEUTICALS JOINT STOCK COMPANY
Formerly Known As :	LONG AN MEDICAL MATERIAL & PHARMACEUTICALS COMPANY
Registered Office :	No.59 Nguyen Hue Street - Ward 1 - Tan An City - Long An Province
Country :	Viet Nam
Financials (as on) :	31.12.2010
Year of Establishment :	1975
Com. Reg. No.:	1100112319
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Trading in 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 :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
Viet Nam	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SUBJECT IDENTIFICATION & LEGAL FORM
Current legal status
English Name	VACOPHARM PHARMACEUTICALS JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN DUOC VACOPHARM
Short name	VACOPHARM (VCP)
Type of Business	Joint stock company
Year Established	1975
Business Registration No.	1100112319
Date of Registration	29 Oct 2008
Place of Registration	Planning & Investment Department of Long An Province
Current registered capital	28,080,000,000 VND
Status	Unlisted
Tax code	1100112319
Total Employees	242
Size	Medium

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Registered English Name: LONG AN MEDICAL MATERIAL & PHARMACEUTICALS COMPANY Changed to: VACOPHARM PHARMACEUTICALS JOINT STOCK COMPANY	2006
2	Subject has got former Type of Business: State Owned Company Changed to: Joint Stock Company	2006
3	Subject has got former Business Registration No: 5003000147 Changed to: 1100112319	29 Oct 2008
4	Subject has got former Registered Vietnamese Name: CONG TY DUOC VA VAT TU Y TE LONG AN Changed to: CONG TY CO PHAN DUOC VACOPHARM	2006
5	Subject has got former Registered capital: VND 27,400,000,000 Changed to: VND 28,080,000,000	16 Nov 2010

ADDRESSES
Head Office
Address	No.59 Nguyen Hue Street - Ward 1 - Tan An City - Long An Province - Vietnam
Telephone	(84-72) 3826111/ 3829311/3821559 / 3821855
Fax	(84-72) 3822244
Email	vacopharm@vacopharm.com
Website	http://www.vacopharm.com
Factory Address
Address	Km 1954 National Road 1A Tan Khanh Ward - Tan An City - Long An Province - Vietnam
Telephone	(84-72) 3513111
Fax	(84-72) 3511655
Branch in Ho Chi Minh
Address	257/3 Ly Thuong Kiet - Ward 15 - 11 District - Ho Chi Minh City - Vietnam
Telephone	(84-8) 73020275
Fax	(84-8) 38685589

DIRECTORS
1. NAME	Mr. LE VAN HOANG
Position	Chairman and General Director
Date of Birth	28 Dec 1952
ID Number/Passport	020318197
ID Issue Date	07 Sep 2005
ID Issue Place	Hochiminh Police Station
Resident	No. 606/42 - Street 3/2 Ward 14 - 10 District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
2. NAME	Mr. HUA NGOC BICH
Position	Deputy General Director
Nationality	Vietnamese
3. NAME	Ms. TRUONG THANH THUY
Position	Deputy General Director
Nationality	Vietnamese
4. NAME	Ms. PHAN THI MINH THU
Position	Deputy General Director
Nationality	Vietnamese
5. NAME	Ms. HUYNH THI THU TRANG
Position	Chief Accountant
Resident	No. 5/329 - Loi Binh Nhon Commune - Tan An City - Long An Province - Vietnam
Nationality	Vietnamese
6. NAME	Mr. PHAN VAN BAO
Position	Administrative manager
Nationality	Vietnamese
Tel/Mobil phone	(84) 909283553

BUSINESS NATURE AND ACTIVITIES

The subject specialized in manufacturing and trading in medicines.

IMPORT & EXPORT ACTIVITIES
IMPORT:
Market	China, India (mainly), EU
Mode of payment	L/C, T/T
EXPORT:
Market	N/A

BANKERS
1. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK LONG AN BRANCH
Address	No.167-169 Hung Vuong No.2 - Tan An City - Long An Province - Vietnam
Telephone	(84-72) 3831592
Fax	(84-72) 3831587
2. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE LONG AN BRANCH
Address	No.396 No. I highway - Tan An City - Long An Province - Vietnam
Telephone	(84-72) 3829425
3. VIETNAM THUONGTIN COMMERCIAL JOINT STOCK BANK LONG AN BRANCH (VIETBANK LONG AN BRANCH)
Address	No. 292-294-296 Hung Vuong - Ward 3 - Tan An City - Long An Province - Vietnam
Telephone	(84-72) 3 587 587
Fax	(84-72) 3 587 888

SHAREHOLDERS
1. NAME	Mr. LE VAN HOANG
Position	Chairman and General Director
Date of Birth	28 Dec 1952
ID Number/Passport	020318197
Issued on	07 Sep 2005
Issued Place	Hochiminh Police Station
Resident	No. 606/42 - Street 3/2 Ward 14 - 10 District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Number of Shares	41,629
Value of shares	416,290,000 VND
Percentage	1.48%
2. NAME	Mr. BUI TUONG NHAT
Resident	129 My Hao- Phu My Hung - 7 District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Number of Shares	75,000
Value of shares	750,000,000 VND
Percentage	2.67%
3. NAME	Mr. PHAM VAN DUNG
Resident	Ham let 3 - Dang Vinh Phuc - Can Duoc District - Long An Province - Vietnam
Mobile phone	84913958222
Number of Shares	12,480
Value of shares	124,800,000 VND
Percentage	0.44%
4. NAME	Ms. HUYNH THI THU TRANG
Position	Chief Accountant
Resident	No. 5/329 - Loi Binh Nhon Commune - Tan An City - Long An Province - Vietnam
Nationality	Vietnamese
Number of Shares	16,226
Value of shares	162,260,000 VND
Percentage	0.58%
5. NAME	Mr. LE MINH TRI
ID Number/Passport	020648847
Resident	No. 109/9 Le Quoc Hung - Ward 12 - 4 District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Number of Shares	10,500
Value of shares	105,000,000 VND
Percentage	0.37%
6. NAME	OTHERS
Number of shares	2,652,165
Value of shares	26,521,650,000 VND
Percentage	94.46%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010	31/12/2009	31/12/2008
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	132,617,858,532	85,900,784,560	67,077,000,000
I. Cash and cash equivalents	59,210,284,596	10,628,331,217	14,183,000,000
1. Cash	4,010,284,596	10,628,331,217	14,183,000,000
2. Cash equivalents	55,200,000,000	0	0
II. Short-term investments	1,640,821,893	304,911,825	0
1. Short-term investments	1,640,821,893	304,911,825	0
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	29,332,927,325	32,948,534,482	17,739,000,000
1. Receivable from customers	29,288,814,775	31,860,974,457	17,529,000,000
2. Prepayments to suppliers	0	918,125,400	0
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	204,195,550	169,434,625	210,000,000
6. Provisions for bad debts	-160,083,000	0	0
IV. Inventories	41,512,091,599	40,573,156,296	33,519,000,000
1. Inventories	42,202,750,545	40,573,156,296	33,519,000,000
2. Provisions for devaluation of inventories	-690,658,946	0	0
V. Other Current Assets	921,733,119	1,445,850,740	1,636,000,000
1. Short-term prepaid expenses	35,600,000	0	193,000,000
2. VAT to be deducted	0	0	163,000,000
3. Taxes and other accounts receivable from the State	0	0	0
4. Other current assets	886,133,119	1,445,850,740	1,280,000,000
B. LONG-TERM ASSETS	25,054,209,613	27,587,080,135	32,306,000,000
I. Long term account receivable	0	0	0
1. Long term account receivable from customers	0	0	0
2. Working capital in affiliates	0	0	0
3. Long-term inter-company receivable	0	0	0
4. Other long-term receivable	0	0	0
5. Provisions for bad debts from customers	0	0	0
II. Fixed assets	22,975,609,161	25,478,479,684	30,132,000,000
1. Tangible assets	22,731,017,577	25,233,888,100	28,534,000,000
- Historical costs	51,083,267,704	49,156,443,527	49,264,000,000
- Accumulated depreciation	-28,352,250,127	-23,922,555,427	-20,730,000,000
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	244,591,584	22,391,585	548,000,000
- Initial costs	393,203,429	171,003,430	1,221,000,000
- Accumulated amortization	-148,611,845	-148,611,845	-673,000,000
4. Construction-in-progress	0	222,199,999	1,050,000,000
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	2,078,600,452	2,108,600,451	2,130,000,000
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	2,058,600,452	2,058,600,451	2,059,000,000
3. Other long-term investments	20,000,000	50,000,000	71,000,000
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	0	0	44,000,000
1. Long-term prepaid expenses	0	0	44,000,000
2. Deferred income tax assets	0	0	0
3. Other long-term assets	0	0	0
VI. Goodwill	0
1. Goodwill	0
TOTAL ASSETS	157,672,068,145	113,487,864,695	99,383,000,000
LIABILITIES
A- LIABILITIES	81,458,864,037	51,869,411,972	54,384,000,000
I. Current liabilities	80,866,153,507	51,869,411,972	49,380,000,000
1. Short-term debts and loans	0	0	0
2. Payable to suppliers	54,099,756,349	40,446,359,555	38,123,000,000
3. Advances from customers	0	0	0
4. Taxes and other obligations to the State Budget	3,856,131,236	1,260,544,514	1,922,000,000
5. Payable to employees	8,279,117,844	2,750,650,233	867,000,000
6. Accrued expenses	946,060,776	618,100,712	900,000,000
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	13,685,087,302	6,793,756,958	7,568,000,000
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	592,710,530	0	5,004,000,000
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	543,997,657	0	0
4. Long-term debts and loans	0	0	5,000,000,000
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	48,712,873	0	4,000,000
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	76,213,204,108	61,618,452,723	44,999,000,000
I. OWNER’S EQUITY	71,487,044,242	59,901,617,333	43,179,000,000
1. Capital	28,080,000,000	27,400,000,000	18,000,000,000
2. Share premiums	0	0	0
3. Other sources of capital	0	0	0
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	0	0	0
7. Business promotion fund	26,422,793,036	17,238,052,027	17,024,000,000
8. Financial reserved fund	3,445,457,872	2,256,122,747	1,426,000,000
9. Other funds	0	0	0
10. Retained earnings	13,538,793,334	13,007,442,559	6,729,000,000
11. Construction investment fund	0	0	0
II. Other sources and funds	4,726,159,866	1,716,835,390	1,820,000,000
1. Bonus and welfare funds	4,726,159,866	1,716,835,390	1,820,000,000
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	157,672,068,145	113,487,864,695	99,383,000,000

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009	FY2008
1. Total Sale	307,210,716,836	263,601,052,277	221,586,000,000
2. Deduction item	8,857,777,998	7,360,665,748	1,247,000,000
3. Net revenue	298,352,938,838	256,240,386,529	220,339,000,000
4. Costs of goods sold	243,308,130,027	217,922,964,808	187,002,000,000
5. Gross profit	55,044,808,811	38,317,421,721	33,337,000,000
6. Financial income	2,872,429,337	593,861,959	604,000,000
7. Financial expenses	395,420,880	609,879,792	487,000,000
- In which: Loan interest expenses	336,448,421	320,330,587	388,000,000
8. Selling expenses	20,574,559,559	15,151,811,887	13,966,000,000
9. Administrative overheads	6,489,021,479	3,008,819,163	3,045,000,000
10. Net operating profit	30,458,236,230	20,140,772,838	16,443,000,000
11. Other income	2,126,659,308	1,858,210,625	1,986,000,000
12. Other expenses	1,051,778,387	2,554	365,000,000
13. Other profit /(loss)	1,074,880,921	1,858,208,171	1,621,000,000
14. Total accounting profit before tax	31,533,117,151	21,998,981,009	18,064,000,000
15. Current corporate income tax	7,746,414,651	5,397,245,252	5,587,000,000
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0
18. Profit after tax	23,786,702,500	16,601,735,757	12,477,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	1.64	1.66	1.36	1.74
Quick liquidity ratio	1.13	0.87	0.68	1.02
Inventory circle	5.86	5.37	6.00	3.74
Average receive period	35.89	46.93	29.39	76.97
Utilizing asset performance	1.89	2.26	2.22	1.31
Liability by total asset	51.66	45.70	54.72	49.32
Liability by owner equity	106.88	84.18	120.86	129.21
Ebit / Total asset (ROA)	20.21	19.67	18.57	8.55
Ebit / Owner's equity (ROE)	41.82	36.22	41.01	18.02
Ebit / Total revenue (NPM)	10.37	8.47	8.33	6.82
Gross profit / Total revenue (GPM)	17.92	14.54	15.04	21.89
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

CASH FLOW STATEMENT
(Direct method)
Items	FY2010
I. Cash flows from operating activities
1.Cash received from customers	309,179,984,285
2. Cash paid to suppliers	-233,517,428,398
3. Cash paid to employees	-16,457,449,467
4. Interest paid	-336,448,421
5. Income taxes paid	-3,095,884,916
6. Other operating cash receipts	3,455,633,447
7. Other operating payments	-8,592,598,963
Net cash flows from operating activities	50,635,807,567
1. Purchases and construction of fixed assets and other long-term assets	-679,905,905
2. Gains from disposals and liquidation of fixed assets and other long-term assets	125,645,880
3. Loans given and purchases of debt instruments of other entities
4. Recovery of loans given and disposals of debt instruments of other entities
5. Investments into other entities
6. Withdrawals of investments in other entities	30,000,000
7. Receipts of loan interests, dividends and profit shared	2,872,429,337
Net cash flows from investing activities	2,348,169,312
1. Gains from stock issuance and capital contributions from shareholders	680,000,000
2. Repayment for capital contributions and re-purchases of stocks already issues
3. Short-term and long-term loans received
4. Loan principal amounts repaid
5. Payments for financial leasehold assets
6. Dividends and profit already paid to the owners	-5,082,023,500
Net cash flows from financing activities	4,402,023,500
Net cash flows during the year	48,581,953,379
Beginning cash and cash equivalents	10,628,331,217
Effects of fluctuations in foreign exchange rates
Ending cash and cash equivalents	59,210,284,596

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Fair
Liquidity	Medium
Payment status	Above Average
Financial Situation	Above Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Through its corresponding bank. Foreign remittance by L/C or T/T
Sale Methods	Retailer and Wholesaler
Public opinion	Good

INTERPRETATION ON THE SCORES

The subject was established in 1975 as a State Owned Company. Since 2006, the subject equitized with name Vacopharm Pharmaceutical Joint Stock Company under business registration No. 5003000147. Currently, it has business registration No. 1100112319 (the same tax code) with registered capital VND 28,080,000,000.

Head office of the subject is located at No. 59, Nguyen Hue Street, Ward 1, Tan An City, Long An Province. And its factory address is at Km 1954 National Road 1A, Tan Khanh Ward, Tan An City, Long An Province. The subject also has a branch in Ho Chi Minh City.

The subject is specializing in manufacturing and trading in medicines. Its factory has produces 117 commodities issued circulating register by Drug Administration. The subject now imports material and medicine from EU, China, India. Although it has not exported products yet, its medicine has appeared in Laos and Cambodia through border trading.

Regarding to financial data, financial situation of the subject is above average. The total sales and the profit increased year after year. The financial ratios are good in comparison with the average industry.

Generally, the subject is a medium company in the industry. The subject has capacity to develop strongly in the future. No caution needed for small and normal transactions with the subject.

------------ APPENDIXES ----------

INDUSTRY DATA
Industry code	Growth speed (%)		Total employees 2009 (Thousand)		Total enterprises	Annual average capital of enterprises
	Predict 2010	2009
Agriculture, Forestry and Fishing	2.8	3.0	24,788.5		2,399	50,530
Trade and Services	7.5	11	10,517.9		79,181	1,754,973
Construction	7	11.3	2,692.8		17,783	248,268
Manufacturing	12	7.6	7,591.2		30,786	967,068
ECONOMIC INDICATORS
			2010	2009		2008
Population (Million person)			86.93	86.02		86.1
Gross Domestic Products (US$ billion)			102.2	91		84.9
GDP Growth (%)			6.78	5.32		6.2
GDP Per Capita (US$)			1,160	1,080		1,040
Inflation (% Change in Composite CPI)			11.75	6.88		24.4
SERVICE TRADE PERFORMANCE
Billion USD			2010	2009		2008
Exports			71.6	56.6		62.9
Imports			84	68.8		76.6
Trade Balance			-12.4	-12.2		-14.6

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.87
UK Pound	1	Rs.75.14
Euro	1	Rs.66.67

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	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
----	NB	New Business	----

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.