MIRA INFORM REPORT

Report Date :

24.02.2011

IDENTIFICATION DETAILS

Name :	CENTRAL PHARMACEUTICAL COMPANY N03

Registered Office :	No.115 Ngo Gia Tu - Hai Chau District - Da Nang City

Country :	Vietnam

Financials (as on) :	31.12.2009

Year of Establishment :	1969

Com. Reg. No.:	0400102077

Legal Form :	State Single Limited Liability Company

Line of Business :	Trading in material and medicines products

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

Vietnam

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
Registered English Name		CENTRAL PHARMACEUTICAL COMPANY N⁰3
Registered Vietnamese Name		CONG TY TNHH MOT THANH VIEN DUOC TW 3
Registered Short name		CENTERPHARCO
Type of Business		State single limited liability company
Year Established		1969
Establishment Decision		392/BYT-QD
Date of Issuance		20 Mar 1993
Place of Issuance		Ministry of health
Business Registration No.		0400102077
Date of Registration		19 Oct 2010
Place of Registration		Da Nang Department of Planning & Investment
Current registered capital		11,183,716,595 VND
Status		Unlisted
Tax code		0400102077
Total Employees		150
Note: The given English name (Danang Central Pharmaceutical Company) is wrong, the right one is as above

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No. 104040 Changed to: No. 3206000193	18 Sep 2007
2	Subject has got former Business Registration No. 3206000193 Changed to: The same tax code No. 0400102077	19 Oct 2010
3	Subject has got former Director is Mr. Pham Hung Thinh Changed to: Mr. Nguyen Thanh Linh	N/A
4	Subject has got former Type of Business: 100% State owned company Changed to: State single limited liability company	19 Oct 2010
5	Subject has got former Registered Vietnamese Name: CONG TY DUOC TW 3 Changed to: CONG TY TNHH MOT THANH VIEN DUOC TW 3	19 Oct 2010
6	Subject has got former Registered capital: VND 16.226 billion Changed to: VND 11,183,716,595 VND	N/A

company ADDRESSES

Head Office
Address		No.115 Ngo Gia Tu - Hai Chau District - Da Nang City - Vietnam
Telephone		(84-511) 381 6687/ 389 7866/ 382 2745
Fax		(84-511) 382 2767
Email		ctyduoctw3@dng.vnn.vn
Note: The given telephone and fax number is wrong, which are number of JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM DA NANG BRANCH. The given address (No 181, Ngo Gia Tu Street, Da Nang City) also is wrong; the right one is as above.

Branch in Ha Noi
Address		No.95 Lang Ha - Dong Da District - Ha Noi City - Vietnam
Telephone		(84-4) 3856 2365 / 35141881
Fax		(84-4) 3856 2584

Branch in Ho Chi Minh
Address		No.284/10 Ly Thuong Kiet str, ward 14 - 10 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3868 5166
Fax		(84-8) 3868 5166
Notes: The former address of branch was No 178, Dien Bien Phu str, 6 ward , 3 district, Hochiminh city.

SUBSIDIARIES AND RELATED COMPANIES

1. PARENT COMPANY - VIETNAM PHARMACEUTICAL CORPORATION
Business Registration		0106001031
Date of Registration		16 Dec 2008
Place of Registration		Ha Noi City Department of Planning and Investment
Registered Capital		269,629,776,752 VND
Tax code		0100109385
Address		No.138B Giang Vo Str - Ba Dinh District - Ha Noi City - Vietnam
Tel		(84-4) 3844 3153/ 3844 3151
Fax		(84-4) 3844 3665
Website		http://www.vinapharm.net.vn

DIRECTORS

1 . NAME		Mr. NGUYEN THANH LINH
Position		Director
Date of Birth		25 Jul 1964
ID Number/Passport		200259887
Resident		No 29 Hai Phong St - Thach Thang Ward - Hai Chau District - Da Nang City - Vietnam
Nationality		Vietnamese
Qualification		Pharmacist

2 . NAME		Ms. PHAM THI OANH
Position		Vice - Director
Resident		No.80/2 Tran Phu - Hai Chau District - Da Nang City - Vietnam
Nationality		Vietnamese
Qualification		Pharmacist

3 . NAME		Mr. Nhan
Position		Chief Accountant
Nationality		Vietnamese
Tel/Mobil phone		(84-511) 382 2745

4 . NAME		Mr. LE DUC LOI
Position		Business Manager
Date of Birth		1964
Nationality		Vietnamese

5 . NAME		Mr. TRUONG VAN VIET
Position		Administration Manager
Nationality		Vietnamese
Tel/Mobil phone		(84-511) 3822767

BUSINESS NATURE AND ACTIVITIES

The subject registered in the following lines of business:
• Trading in material and medicines products
• Trading in oriental medicines, medical equipment
• Manufacturing some kinds of simple medicines
• Trading in vaccine, biology finished products

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Market		The Subject imported medicines, medical equipment and material for pharmaceutical industry from Europe, USA, Korea, India, Taiwan, etc.
· Mode of payment		L/C

EXPORT:
· Market		The Subject mainly exports oriental medicines to Czech Public, Russia, Turkey.
· Mode of payment		L/C

BANKERS

1. VIETNAM BANK FOR AGRICULTURAL AND RURAL DEVELOPMENT (AGRIBANK) – DA NANG BRANCH
Address		No. 23 Phan Dinh Phung Str - Hai Chau District - Da Nang City - Vietnam
Telephone		(84-511) 382 1166
Fax		(84-511) 382 3495

2. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE DA NANG BRANCH
Address		No.172 Nguyen Van Linh - Thanh Khe District - Da Nang City - Vietnam
Telephone		(84-5113) 2691345

3. JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM DA NANG BRANCH
Address		No. 140 – 142 Le Loi Str - - Da Nang City - Vietnam
Telephone		(84-511) 3822110
Fax		(84-511) 3826062

SHAREHOLDERS

1 . NAME		VIETNAM PHARMACEUTICAL CORPORATION
Business Registration		0106001031
Date of Registration		16 Dec 2008
Place of Registration		Ha Noi City Department of Planning and Investment
Registered Capital		269,629,776,752 VND
Tax code		0100109385
Address		No.138B Giang Vo Str - Ba Dinh District - Ha Noi City - Vietnam
Tel		(84-4) 3844 3153/ 3844 3151
Fax		(84-4) 3844 3665
Value of shares		11,183,716,595 VND
Percentage		100%

FINANCIAL DATA

BALANCE SHEET
I: One VND
Balance sheet date	31/12/2009	31/12/2008	31/12/2007
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	81,622,475,599	50,126,000,000	46,497,000,000
I. Cash and cash equivalents	3,547,538,553	2,918,500,000	3,210,000,000
1. Cash	3,547,538,553	2,918,500,000	3,210,000,000
2. Cash equivalents	0	0	0
II. Short-term investments	0	1,200,000,000	0
1. Short-term investments	0	1,200,000,000	0
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	50,797,118,503	21,217,500,000	17,339,000,000
1. Receivable from customers	43,144,985,010	16,838,500,000	15,159,000,000
2. Prepayments to suppliers	3,253,969,906	631,000,000	226,000,000
3. Inter-company receivable	300,544,979	0	0
4. Receivable according to the progress of construction	0	303,000,000	0
5. Other receivable	4,097,618,608	3,445,000,000	1,954,000,000
6. Provisions for bad debts	0	0	0
IV. Inventories	26,503,087,538	24,123,000,000	24,648,000,000
1. Inventories	26,503,087,538	24,123,000,000	24,648,000,000
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	774,731,005	667,000,000	1,300,000,000
1. Short-term prepaid expenses	0	0	0
2. VAT to be deducted	526,837,549	548,000,000	515,000,000
3. Taxes and other accounts receivable from the State	0	0	0
4. Other current assets	247,893,456	119,000,000	785,000,000
B. LONG-TERM ASSETS	15,749,557,467	17,451,000,000	15,819,000,000
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
5. Provisions for bad debts from customers	0	0	0
II. Fixed assets	15,707,719,863	17,418,000,000	15,794,000,000
1. Tangible assets	15,707,719,863	17,343,000,000	15,722,000,000
- Historical costs	21,427,941,985	21,487,000,000	20,719,000,000
- Accumulated depreciation	-5,720,222,122	-4,144,000,000	-4,997,000,000
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	0	75,000,000	0
- Initial costs	0	75,000,000	0
- Accumulated amortization	0	0	0
4. Construction-in-progress	0	0	72,000,000
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	0	0	25,000,000
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	0	0
3. Other long-term investments	0	0	25,000,000
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	41,837,604	33,000,000	0
1. Long-term prepaid expenses	41,837,604	33,000,000	0
2. Deferred income tax assets	0	0	0
3. Other long-term assets	0	0	0
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	97,372,033,066	67,577,000,000	62,316,000,000

LIABILITIES
A- LIABILITIES	79,375,552,040	52,773,000,000	43,755,000,000
I. Current liabilities	78,266,269,540	52,773,000,000	43,094,000,000
1. Short-term debts and loans	25,900,167,706	25,251,000,000	24,661,000,000
2. Payable to suppliers	39,421,380,830	17,245,000,000	15,911,000,000
3. Advances from customers	5,626,130,646	3,572,000,000	401,000,000
4. Taxes and other obligations to the State Budget	1,011,023,182	456,000,000	70,000,000
5. Payable to employees	366,461,080	122,000,000	251,000,000
6. Accrued expenses	0	0	0
7. Inter-company payable	300,544,979	303,000,000	555,000,000
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	5,640,561,117	5,824,000,000	1,245,000,000
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	1,109,282,500	0	661,000,000
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	0	0	0
4. Long-term debts and loans	1,109,282,500	0	661,000,000
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	0	0	0
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	17,996,481,026	14,804,000,000	18,561,000,000
I. OWNER’S EQUITY	17,521,627,289	14,296,000,000	17,869,000,000
1. Capital	16,804,458,096	16,804,000,000	16,226,000,000
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	0	0	730,000,000
8. Financial reserved fund	0	0	91,000,000
9. Other funds	0	0	0
10. Retained earnings	717,169,193	-2,508,000,000	694,000,000
11. Construction investment fund	0	0	128,000,000
II. Other sources and funds	474,853,737	508,000,000	692,000,000
1. Bonus and welfare funds	474,853,737	508,000,000	652,000,000
2. Sources of expenditure	0	0	40,000,000
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	97,372,033,066	67,577,000,000	62,316,000,000

PROFIT & LOSS STATEMENT

Description	FY2009	FY2008	FY2007
1. Total Sale	203,353,133,321	164,012,000,000	144,120,000,000
2. Deduction item	815,526,507	1,001,000,000	1,103,000,000
3. Net Sale	202,537,606,814	163,011,000,000	143,017,000,000
4. Costs of goods sold	187,471,012,907	153,363,000,000	132,456,000,000
5. Gross profit	15,066,593,907	9,648,000,000	10,561,000,000
6. Financial income	126,477,519	142,000,000	76,000,000
7. Financial expenses	4,324,776,286	2,387,000,000	2,057,000,000
- In which: Loan interest expenses	0	0	2,057,000,000
8. Selling expenses	6,176,499,371	4,578,000,000	4,552,400,000
9. Administrative overheads	4,382,254,687	3,216,000,000	3,792,400,000
10. Net operating profit	309,541,082	-391,000,000	235,200,000
11. Other income	79,891,950	410,000,000	396,000,000
12. Other expenses	0		238,000,000
13. Other profit /(loss)	79,891,950	410,000,000	158,000,000
14. Total accounting profit before tax	389,433,032	19,000,000	393,200,000
15. Current corporate income tax	0	0	0
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	389,433,032	19,000,000	393,200,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2009	FY2008	FY2007	Average Industry
Current liquidity ratio	1.04	0.95	1.08	2.19
Quick liquidity ratio	0.70	0.49	0.51	1.41
Inventory circle	7.07	6.29	5.53	4.67
Average receive period	91.54	47.51	44.25	79.16
Utilizing asset performance	2.08	2.41	2.30	1.91
Liability by total asset	81.52	78.09	70.21	56.82
Liability by owner equity	441.06	356.48	235.74	486.78
Ebit / Total asset (ROA)	0.40	0.03	3.93	10.47
Ebit / Owner's equity (ROE)	2.16	0.13	13.20	34.50
Ebit / Total Sale (NPM)	0.19	0.01	1.70	6.80
Gross profit / Total Sale (GPM)	7.41	5.88	7.33	20.29
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Fair
Liquidity		Medium
Payment status		Average
Financial Situation		Average
Development trend		Stable
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		L/C
Sale Methods		Retailer and Wholesaler
Public opinion		Well-known

INTERPRETATION ON THE SCORES

The subject has a long time in operation and development, which was original found 1969 as a small factory to serve for Vietnamese people to fight against invader. It was re-established in 1976. In 1993, under the decision to set up corporation, the subject became member of Vietnam pharmaceutical corporation. Its operation is under the management of parent company, which is very large with many subsidiaries located in most provinces of Vietnam. Nowadays, the company operation under business registration No 0400102077 with registered capital is VND 11.183 billion. The products of the subject are fairly poor with about 40 kinds of common medicines such as Medicated Oil, Balm, Berberin, etc.

The main business line to make profit is importing and trading in pharmaceutical for the local market.
The subject is state owned companies, which is responsible for price stabilization of medicine in case of hard fluctuation of prices and to prepare medicine for prevention of the spread of epidemics when disaster happen.

The subject has met three pharmaceutical standards, including GMP, GSP and GLP. The management capacity is normal. It will be more developed if the subject improves its management capability. According to financial data, its capital structure is not safe. Financial leverage ratio is high in comparison with average industry, together with liquidity ratio is low. Besides, although its turnover was improved year after year, profitability is still limited. Total Sale in 2009 was VND 203 billion VND, increasing VND 59 billion compare with 2007, equally 41 %. But profit after tax was only equivalent in 2007. The main reasons were the high of cost of goods sold and financial expenses. Notable, in 2009 receivable from customers sharply increase compare with before years, which strongly affect to the company’s turnover capital ability. Suggest that, it is one of reasons cause liabilities of the subject distend by 52% in comparison with 2008 and then financial expenses accelerate wherefore reduce its profit.

In short, the subject is a State owned company, so it receives much support, relying on that it has ability to adverse changes in circumstances and economic conditions. No caution needed for small business transaction.

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.45.20
UK Pound	1	Rs.73.17
Euro	1	Rs.61.88

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

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.