MIRA INFORM REPORT

Report Date :

14.07.2011

IDENTIFICATION DETAILS

Correct Name :	CENTRAL PHARMACEUTICAL COMPANY NO.1 - HO CHI MINH CITY BRANCH

Registered Office :	No. 7B/27/5 Thanh Thai Str, Ward 14 - 10 Dist - Ho Chi Minh City - Vietnam

Country :	Vietnam

Financials (as on) :	31.12.2010

Date of Incorporation :	04.08.2004

Com. Reg. No.:	0100108536-008

Legal Form :	State Owned Company

Line of Business :	Trading in pharmaceutical products and raw material for pharmaceutical industry

RATING & COMMENTS

MIRA’s Rating :

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 – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

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

English Name		CENTRAL PHARMACEUTICAL COMPANY NO.1 - HO CHI MINH CITY BRANCH
Vietnamese Name		CHI NHANH CONG TY TNHH MOT THANH VIEN DUOC PHAM TRUNG UONG 1
Type of Business		State Owned Company
Year Established		1999
Business Registration No.		0100108536-008
Date of Registration		04 Aug 2004
Place of Registration		Business Registration Ofice (Planning and Investment Department of Hochiminh City)
Tax code		0100108536-008
Total Employees		71

company ADDRESSES

Head Office
Address		No. 7B/27/5 Thanh Thai Str, Ward 14 - 10 Dist - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3866 5827
Fax		(84-8) 3866 5829
Email		cncpc1@yahoo.com
Website		www.pharbaco.com.vn

DIRECTORS

1 . NAME		Mr. NGUYEN TRI LY
Position		Director of Branch
ID Number/Passport		230404398
Nationality		Vietnamese

2 . NAME		Mr. CONG VIET HAI
Position		Deputy Director of Branch
Nationality		Vietnamese

3 . NAME		Ms. TRUONG THI HUE
Position		Chief Accountant
Nationality		Vietnamese

4 . NAME		Ms. HOANG BOI TRAN
Position		Administration Department
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject registers and operates in the following business activities:
• Trading in pharmaceutical products and raw material for pharmaceutical industry
• Import of raw materials for processing medicine, lens, absorbent cotton and bandage, essential oil, aroma, cosmetics, hygiene products and medical equipment
• Reserves medicines and other pharma products according to directions of the Ministry of Health of Vietnam or Government

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		Materials
· Market		India, France, Germany, Australia, The United Kingdom, Canada, America, Japan, Thailand, Singapore, Korea, and Italy.

EXPORT:
· Types of products		Products
· Market		Korea, Singapore

BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM HO CHI MINH BRANCH
Address		No. 29 Ben Chuong Duong - 1 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3829 7245 - 3823 0310 - 3823 0311
Fax		(84-8) 3829 7228

2. VIETIN BANK HO CHI MINH CITY BRANCH NO. 1
Address		No. 93 – 95 Ham Nghi Street, Nguyen Thai Binh Ward - 1 District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 38215388 – 38210089
Fax		(84-8) 38290696

SHAREHOLDERS

Subject is a branch of CENTRAL PHARMACEUTICAL COMPANY NO.1. Following is information about this company:
1 . NAME		CENTRAL PHARMACEUTICAL COMPANY NO1
Business Registration		0100108536
Date of Registration		26 Jul 2010
Place of Registration		Hanoi Department of Planning & Investment
Registered Capital		86,939,012,086 VND
Tax code		0100108536
Address		No.356A Giai Phong Str - Phuong Liet ward - Thanh Xuan District - Ha Noi City - Vietnam
Tel		(84-4) 38642106 / 3864 3327 / 3864 3323 / 3864 1342
Fax		(84-4) 3864 1366
Percentage		100%

FINANCIAL DATA

Subject’s financial statement is not available. Following is its financial data about its parent company for reference.
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	780,560,667,254	616,825,929,154	602,929,594,764
I. Cash and cash equivalents	36,260,844,415	30,786,076,281	49,797,474,783
1. Cash	36,260,844,415	30,786,076,281	49,797,474,783
2. Cash equivalents	0	0	0
II. Short-term investments	26,431,082,335	7,408,770,300	11,133,522,921
1. Short-term investments	28,011,842,035	8,989,530,000	13,570,598,921
2. Provisions for devaluation of short-term investments	-1,580,759,700	-1,580,759,700	-2,437,076,000
III. Accounts receivable	379,746,543,529	295,157,133,736	271,633,833,114
1. Receivable from customers	373,849,126,475	281,839,659,006	253,922,618,773
2. Prepayments to suppliers	0	0	0
3. Inter-company receivable	0	0	22,257,000
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	13,617,708,029	21,037,765,705	20,152,563,143
6. Provisions for bad debts	-7,720,290,975	-7,720,290,975	-2,463,605,802
IV. Inventories	332,933,880,401	276,168,432,108	256,947,288,159
1. Inventories	339,552,351,526	282,786,903,233	259,952,704,163
2. Provisions for devaluation of inventories	-6,618,471,125	-6,618,471,125	-3,005,416,004
V. Other Current Assets	5,188,316,574	7,305,516,729	13,417,475,787
1. Short-term prepaid expenses	0	0	0
2. VAT to be deducted	4,161,384,885	2,779,643,227	2,564,080,059
3. Taxes and other accounts receivable from the State	0	1,318,563,023	3,650,997,273
4. Other current assets	1,026,931,689	3,207,310,479	7,202,398,455
B. LONG-TERM ASSETS	90,970,775,610	52,787,226,339	45,222,302,349
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	54,605,075,610	36,384,214,170	24,653,210,180
1. Tangible assets	27,786,797,165	9,641,435,386	6,122,491,717
- Historical costs	62,219,239,649	36,527,212,406	32,984,678,442
- Accumulated depreciation	-34,432,442,484	-26,885,777,020	-26,862,186,725
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	10,134,777,134	7,833,391,406	8,012,417,378
- Initial costs	12,160,376,100	9,679,964,400	9,679,964,400
- Accumulated amortization	-2,025,598,966	-1,846,572,994	-1,667,547,022
4. Construction-in-progress	16,683,501,311	18,909,387,378	10,518,301,085
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	36,365,700,000	16,403,012,169	20,569,092,169
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	11,700,512,169	6,299,512,169
3. Other long-term investments	36,365,700,000	4,702,500,000	14,269,580,000
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	0	0	0
1. Long-term prepaid expenses	0	0	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	871,531,442,864	669,613,155,493	648,151,897,113

LIABILITIES
A- LIABILITIES	770,133,406,869	569,338,306,440	560,009,760,436
I. Current liabilities	751,389,409,948	551,913,784,823	548,505,187,727
1. Short-term debts and loans	273,811,104,455	203,624,641,006	253,917,815,464
2. Payable to suppliers	383,260,941,671	265,053,703,393	263,488,144,592
3. Advances from customers	22,404,077,668	11,008,697,496	10,208,916,004
4. Taxes and other obligations to the State Budget	4,308,171,197	3,641,738,536	3,756,882,398
5. Payable to employees	4,812,330,233	4,335,183,835	3,853,392,686
6. Accrued expenses	0	0	0
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	62,792,784,724	64,249,820,557	13,280,036,583
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	18,743,996,921	17,424,521,617	11,504,572,709
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	354,840,000	1,326,067,317
4. Long-term debts and loans	17,559,890,058	16,116,222,698	9,424,500,000
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	1,184,106,863	953,458,919	754,005,392
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	101,398,035,995	100,274,849,053	88,142,136,677
I. OWNER’S EQUITY	96,511,588,177	86,889,425,190	76,654,019,954
1. Capital	81,646,419,055	74,566,900,203	64,538,308,234
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	7,262,302,677	5,530,206,542	6,575,113,726
8. Financial reserved fund	7,602,866,445	6,792,318,445	5,340,597,994
9. Other funds	0	0	200,000,000
10. Retained earnings	0	0	0
11. Construction investment fund	0	0	0
II. Other sources and funds	4,886,447,818	13,385,423,863	11,488,116,723
1. Bonus and welfare funds	4,886,447,818	13,385,423,863	11,488,116,723
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	871,531,442,864	669,613,155,493	648,151,897,113

PROFIT & LOSS STATEMENT

Description	FY2010	FY2009	FY2008
1. Total Sale	2,002,542,130,862	1,770,419,260,210	1,390,182,975,187
2. Deduction item	2,317,745,142	2,601,106,632	2,710,395,653
3. Net Sale	2,000,224,385,720	1,767,818,153,578	1,387,472,579,534
4. Costs of goods sold	1,775,720,163,421	1,554,797,341,135	1,251,258,096,531
5. Gross profit	224,504,222,299	213,020,812,443	136,214,483,003
6. Financial income	9,350,672,305	12,744,095,566	6,293,449,286
7. Financial expenses	52,349,510,051	83,742,878,203	38,746,538,771
- In which: Loan interest expenses	28,767,985,654	13,285,246,109	17,545,348,995
8. Selling expenses	114,749,547,670	94,362,547,528	72,148,872,600
9. Administrative overheads	41,558,620,234	30,144,526,077	17,238,543,508
10. Net operating profit	25,197,216,649	17,514,956,201	14,373,977,410
11. Other income	138,669,301	1,382,543,593	326,872,359
12. Other expenses	0	0	0
13. Other profit /(loss)	138,669,301	1,382,543,593	326,872,359
14. Total accounting profit before tax	25,335,885,950	18,897,499,794	14,700,849,769
15. Current corporate income tax	6,333,971,487	4,380,295,288	3,949,967,095
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	19,001,914,463	14,517,204,506	10,750,882,674

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	1.04	1.12	1.10	1.74
Quick liquidity ratio	0.60	0.62	0.63	1.02
Inventory circle	5.33	5.83	5.12	3.74
Average receive period	69.30	60.94	71.46	76.97
Utilizing asset performance	2.30	2.64	2.14	1.31
Liability by total asset	88.37	85.03	86.40	49.32
Liability by owner equity	759.52	567.78	635.35	129.21
Ebit / Total asset (ROA)	6.21	4.81	4.98	8.55
Ebit / Owner's equity (ROE)	53.36	32.09	36.58	18.02
Ebit / Total Sale (NPM)	2.70	1.82	2.32	6.82
Gross profit / Total Sale (GPM)	11.21	12.03	9.80	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		Uptrend
Litigation data		No
Bankruptcy		No
Payment Methods		L/C, TT
Sale Methods		Retailer
Public opinion		Good

INTERPRETATION ON THE SCORES

Subject - CENTRAL PHARMACEUTICAL COMPANY NO.1 - HO CHI MINH CITY BRANCH was established in 1999 as a branch of State owned company under Business Registration No. 0100108536-008.
Now subject’s parent company is a member of Vietnam Pharmaceutical Corporation that specializes in trading in pharmaceutical products and raw material for pharmaceutical industry. Besides the trading activities, Central Pharmaceutical Company No.1 also has responsibility of reserves medicines and other pharmacy products according to directions of the Ministry of Health of Vietnam or Government. Central Pharmaceutical Company No.1 is one of state owned companies operating effectively. The network of the company has been considerably enlarged.
In overview, Subject has good operation base. Its management capabilities are fairly. Director boards of the subject include persons who have much experienced in management. The subject is reliable for any normal transactions if it is guaranteed by it parent company.

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.44.59
UK Pound	1	Rs.71.07
Euro	1	Rs.62.40

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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