MIRA INFORM REPORT

Report Date :

25.02.2011

IDENTIFICATION DETAILS

Name :	UNITED PHARMA VIETNAM COMPANY
Registered Office :	Floor 8, Unit 8.5-8.7 Etown 2, No. 364, Cong Hoa Street - Ho Chi Minh City - Vietnam
Country :	Viet Nam
Financials (as on) :	31.12.2008
Year of Establishment :	1995
Legal Form :	Foreign invested company
Line of Business :	Production and Trading in Special Pharmaceutical 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 :	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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
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	UNITED PHARMA VIETNAM COMPANY
Vietnamese Name	CONG TY UNITED PHARMA VIETNAM
Trade name	UNITED PHARMA (VIETNAM)., INC
Type of Business	Foreign invested company
Year Established	1995
Current Investment Certificate	No. 411043001010
Date of Registration	03 Oct 2009
Place of Registration	People’s committee of Hochiminh City
Former Investment Certificate	1214/GPDT
Place of Registration	24 Apr 1995
Place of Registration	People’s committee of Hochiminh City
Current Investment Capital	12,500,000 USD
Former Investment Capital	7,500,000 USD
Chartered capital	3,750,000 USD
Tax code	0300733689
Total Employees	450

ADDRESSES
Head Office
Address	Floor 8, Unit 8.5-8.7 Etown 2, No. 364, Cong Hoa Street - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3810 0800
Fax	(84-8) 3810 3330
Former address	No. 61A Cao Thang Street - Ward 3 - District 3 - Hochiminh City - Vietnam.
Factory Address
Address	2 Hamlet Binh Chanh Commune - Binh Chanh District - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3760 5312, 3760 5321
Fax	(84-8) 3760 5315
Email	ng.hieu.thuan@unitedpharma.com.vn
Occupied Area	10,000 m2
Total employees	150
Representative office in Hanoi City
Address	Room 8, Floor 3, Hapaco Building, No. 2 - Hang Bai Street - Trang Tien Ward - - Ha Noi City - Vietnam
Tel	(84-4) 3936 7473
Sales Department in Hochiminh City
Address	27/2 Cong Hoa Street - Ward 4 - Tan Binh District - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3948 1915
Fax	(84-8) 3948 1941
DIRECTORS

1 . NAME	Mr. BENEDICTO N. CALEDA
Position	General Director
Nationality	Philippines
Tel/Mobil phone	++ 84 903 803 088
Email	bncaleda@unitedpharma.com.vn
Qualification	Management
Note: The name given (Mr. Lamberto Lara) is former general director of the subject.
2 . NAME	Ms. CLARAVIC MAGSILA
Position	Director of Factory
Current resident	Ho Chi Minh City - Vietnam
Nationality	Philippines
Qualification	Management
3 . NAME	Mr. RENAN S. DANGANAN
Position	Finance and Admin Director
Nationality	Philippines
Tel/Mobil phone	++ 84 908 080 448
Email	renan.danganan@unitedpharma.com.vn
4 . NAME	Mr. LE THI THANH LAN
Position	Chief Accountant
Education	Bachelor
Resident	Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Qualification	Bachelor
Email	le.t.thanh.lan@unitedpharma.com.vn
Tel	(84-8) 3810 0800 . Ext.502
5 . NAME	Mr. NGUYEN HIEU THUAN
Position	Sales Manager
Education	Bachelor
Resident	Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Tel/Mobil phone	+84 903 840 817
BUSINESS NATURE AND ACTIVITIES

The subject is specialized in the production and trading in special pharmaceutical products.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	raw materials
· Market	USA, EU, India, China, Philippine
· Mode of payment	Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C).
EXPORT:
· Market	Malaysia, Myanmar
· Mode of payment	T/T

BANKERS
1. DEUTSCHE BANK AG, HO CHI MINH CITY BRANCH
Address	Floor 14th - Saigon Center Building- No. 65 Le Loi Street - Ben Nghe Ward - 1 District - Ho Chi Minh City - Vietnam
Telephone	(84-8) 38222667
Fax	(84 8) 3822 2760
SWIFT Code	DEUTDESM676
2. CITY BANK - HOCHIMINH CITY BRANCH
Address	No.115, Nguyen Hue Street - Ben Nghe Ward - 1 District - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3824 2118
Fax	(84-8) 3824 2114
SWIFT Code	CITIVNVXHCM
SHAREHOLDERS

1 . NAME	UNITED LABORATORIES, INC
Address	66 United Str, Mandaluyong, Manila - - - Philippines
Percentage	100%
FINANCIAL DATA

BALANCE SHEET
Balance sheet date	31/12/2008	31/12/2007
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	159,662,395,000	137,538,691,000
I. Cash and cash equivalents	19,370,796,000	69,163,535,000
1. Cash	19,370,796,000	69,163,535,000
2. Cash equivalents		0
II. Short-term investments	0	0
1. Short-term investments		0
2. Provisions for devaluation of short-term investments		0
III. Accounts receivable	34,543,694,000	19,002,037,000
1. Receivable from customers	27,674,216,000	16,023,350,000
2. Prepayments to suppliers	3,267,227,000	2,631,602,000
3. Inter-company receivable		0
4. Receivable according to the progress of construction		0
5. Other receivable	3,602,251,000	347,085,000
6. Provisions for bad debts		0
IV. Inventories	94,053,078,000	39,186,618,000
1. Inventories	94,952,976,000	41,407,781,000
2. Provisions for devaluation of inventories	-899,898,000	-2,221,163,000
V. Other Current Assets	11,694,827,000	10,186,501,000
1. Short-term prepaid expenses	2,748,573,000	2,633,075,000
2. VAT to be deducted	5,465,348,000	1,996,465,000
3. Taxes and other accounts receivable from the State		0
4. Other current assets	3,480,906,000	5,556,961,000
B. LONG-TERM ASSETS	56,901,388,000	56,134,632,000
I. Long term account receivable	0	0
1. Long term account receivable from customers		0
2. Working capital in affiliates		0
3. Long-term inter-company receivable		0
4. Other long-term receivable		0
5. Provisions for bad debts from customers		0
II. Fixed assets	52,147,756,000	52,746,241,000
1. Tangible assets	49,388,067,000	49,887,191,000
- Historical costs	177,573,461,000	168,813,417,000
- Accumulated depreciation	-128,185,394,000	-118,926,226,000
2. Financial leasehold assets	0	0
- Historical costs		0
- Accumulated depreciation		0
3. Intangible assets	2,691,701,000	2,859,050,000
- Initial costs	3,346,977,000	3,346,977,000
- Accumulated amortization	-655,276,000	-487,927,000
4. Construction-in-progress	67,988,000	0
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	0	0
1. Investments in affiliates	0	0
2. Investments in business concerns and joint ventures	0	0
3. Other long-term investments	0	0
4. Provisions for devaluation of long-term investments	0	0
V. Other long-term assets	4,753,632,000	3,388,391,000
1. Long-term prepaid expenses	0	0
2. Deferred income tax assets	4,753,632,000	3,388,391,000
3. Other long-term assets	0	0
TOTAL ASSETS	216,563,783,000	193,673,323,000
LIABILITIES
A- LIABILITIES	83,692,092,000	59,253,051,000
I. Current liabilities	74,676,037,000	51,407,979,000
1. Short-term debts and loans	0	0
2. Payable to suppliers	6,960,175,000	1,967,012,000
3. Advances from customers	0	0
4. Taxes and other obligations to the State Budget	10,227,021,000	9,221,940,000
5. Payable to employees	9,763,367,000	4,875,452,000
6. Accrued expenses	47,581,828,000	35,336,250,000
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	143,646,000	7,325,000
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	9,016,055,000	7,845,072,000
1. Long-term accounts payable to suppliers	0	0
2. Long-term inter-company payable	0	0
3. Other long-term payable	0	0
4. Long-term debts and loans	0	0
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	9,016,055,000	7,845,072,000
7. Provisions for long-term accounts payable		0
B- OWNER’S EQUITY	132,871,691,000	134,420,272,000
I. OWNER’S EQUITY	132,871,691,000	134,420,272,000
1. Capital	49,327,000,000	49,327,000,000
2. Share premiums		0
3. Other sources of capital		0
4. Treasury stocks		0
5. Differences on asset revaluation		0
6. Foreign exchange differences		0
7. Business promotion fund		0
8. Financial reserved fund		0
9. Other funds		0
10. Retained earnings	83,544,691,000	85,093,272,000
11. Construction investment fund		0
II. Other sources and funds	0	0
1. Bonus and welfare funds		0
2. Sources of expenditure		0
3. Fund to form fixed assets		0
MINORITY’S INTEREST
TOTAL LIABILITIES AND OWNER’S EQUITY	216,563,783,000	193,673,323,000

PROFIT & LOSS STATEMENT
Description	FY2008	FY2007
1. Total Sale	353,884,957,000	279,817,645,000
2. Deduction item	7,848,317,000	4,040,852,000
3. Net revenue	346,036,640,000	275,776,793,000
4. Costs of goods sold	103,475,526,000	80,467,663,000
5. Gross profit	242,561,114,000	195,309,130,000
6. Financial income	4,093,188,000	2,010,856,000
7. Financial expenses	0	231,291,000
- In which: Loan interest expenses	0	231,291,000
8. Selling expenses	147,760,911,000	117,622,636,000
9. Administrative overheads	47,745,025,000	37,206,683,000
10. Net operating profit	51,148,366,000	42,259,376,000
11. Other income	305,361,000	87,700,000
12. Other expenses	42,942,000	7,154,000
13. Other profit /(loss)	262,419,000	80,546,000
14. Total accounting profit before tax	51,410,785,000	42,339,922,000
15. Current corporate income tax	12,324,607,000	9,732,602,000
16. Deferred corporate income tax	1,365,241,000	-563,672,000
18. Profit after tax	37,720,937,000	32,043,648,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2008	FY2007	Average Industry
Current liquidity ratio	2.14	2.68	1.74
Quick liquidity ratio	0.88	1.91	1.02
Inventory circle	1.55	2.23	3.74
Average receive period	36.44	25.15	76.97
Utilizing asset performance	1.60	1.42	1.31
Liability by total asset	38.65	30.59	49.32
Liability by owner equity	62.99	44.08	129.21
Ebit / Total asset (ROA)	23.74	16.66	8.55
Ebit / Owner's equity (ROE)	38.69	24.01	18.02
Ebit / Total revenue (NPM)	14.53	11.53	6.82
Gross profit / Total revenue (GPM)	68.54	69.80	21.89
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Normal
Liquidity	N/A
Payment status	N/A
Financial Situation	Above Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C).
Sale Methods	Retailer and Wholesaler
Public opinion	Good

INTERPRETATION ON THE SCORES

United Pharma Vietnam is a 100% of Philippines invested company. The subject is a subsidiary of United Laboratories, one of the leading pharmaceutical and health care companies in Southeast Asia. The subject specializes in producing and trading in special pharmaceutical products. It has created a wide contributed system throughout Vietnam with 27 leading pharmaceutical and health care products such as Alaxan, Decolgen Forte, Decolgen No-Drowse, Decolgen Ace, Decolgen Liquid, Enervon-C, Nutroplex, Kremil-S, New-Diatabs, Clazic Sr, Ferlin, Ceelin.
The premises and facilities of the subject are standard. It has a factory, a representative office in Hochiminh city and a branch in Hanoi city. It had received 02 good manufacturing practices: good laboratory practice (GLP) and good storage practice (GSP) certificates in 1999 and in 2002 of the Ministry of Health, through the Drug Administration of Vietnam. In 2003, the Bureau Veritas Quality International (BVQI) gave United Pharma Vietnam the ISO 9001:2000 certification. The subject was also prized a golden dragon award in 2004 for its contribution to the development of Vietnam’s pharmaceutical sector and health care system. In 2005, United Pharma Vietnam has been chosen the "Vietnam high quality products". Current the subject is building factory in Binh Duong province and the plan will be completed in 2012.
In May, 2010 Subject had signed an agreement with Tue Lam Company Limited, which made Tue Lam become the second distributor of the United Pharma Vietnam.
The pharmaceutical industry in Vietnam is in the development stage, in both consumption and producing, so the operating of all the businesses in this line is facing many difficulties. Not along to the limitation producing of each firm, the over depending on imported material, the weaken distribution system…are also the challenging for pharmaceutical companies
The financial and operational bases of the subject are fair. Following the reported finance, financial ratios of the subject are relatively good. The subject is developing stably. Although the year 2008 was a difficult year for Vietnam economy, its turnover and profit still increased. Regarding to subject’s accountant, its turnover in 2009 was increased compared with 2008.
With over 15-year-history, subject is considered strong in its line due to the competitive capability, regularly development...however, Subject may over use its vantages to put its product’s price higher than its real price, to create an unfair competition and the patients are, of course, their victims. Development without thinking of code of ethics is not stable and can cause Subject trouble in the future.
In our opinion, the subject has capacity to meet normal and medium transactions.

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.45.37
UK Pound	1	Rs.73.54
Euro	1	Rs.62.39

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	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 Company	----

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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