MIRA INFORM REPORT

Report Date :

21.07.2011

IDENTIFICATION DETAILS

Name :	ORIENT PHARMACEUTICAL CORPORATION

Registered Office :	Lot 7 Street No.2, Tan Tao Industrial Zone, Tan Tao A Ward - Binh Tan District - Ho Chi Minh City

Country :	Vietnam

Financials (as on) :	31.12.2010

Year of Establishment :	2007

Com. Reg. No.:	0305030898

Legal Form :	Joint Stock Company

Line of Business :	Manufacturing Pharmaceutical 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 :	Unknown

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)

Vietnam

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

Bottom of Form

SUBJECT IDENTIFICATION & LEGAL FORm

English Name		ORIENT PHARMACEUTICAL CORPORATION
Vietnamese Name		CONG TY CO PHAN DUOC PHAM PHUONG DONG
Short name		ORIENT PHARMA CORP
Type of Business		Joint stock company
Year Established		2007
Business Registration No.		0305030898
Date of Registration		31 Dec 2009
Place of Registration		Business registration office of Hochiminh city
Current registered capital		60,000,000,000 VND
Tax code		0305030898
Total Employees		150

company ADDRESSES

Head Office
Address		Lot 7 Street No.2, Tan Tao Industrial Zone, Tan Tao A Ward - Binh Tan District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 3754 0724/ 3754 0725
Fax		(84-8) 3750 5807

DIRECTORS

1. NAME		Mr. VO TAN LOC
Position		President
Date of Birth		13 Mar 1955
ID Number/Passport		020190901
Resident		26/7 Truong Dinh Street, Ben Thanh Ward - 1 District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese

2. NAME		Mr. MAI XUAN LAI
Position		Director
Resident		Ho Chi Minh City – Vietnam
Nationality		Vietnamese

3. NAME		Mr. LE DUY PHONG
Position		Chief Accountant
Resident		Ho Chi Minh City – Vietnam
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in manufacturing pharmaceutical products.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		Material
· Market		China, India

EXPORT:
· Types of products		N/A

BANKERS

VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE BINH TAN BRANCH
Address		No.9 Plot C Str, Tan Tao Industrial Park - Binh Tan District - Ho Chi Minh City - Vietnam
Telephone		(84-8) 37542193
Fax		(84-8) 37542193
SWIFT Code		ICBVVNVX

SHAREHOLDERS

1. NAME		Mr. VO TAN LOC
Position		President
Date of Birth		13 Mar 1955
ID Number/Passport		020190901
Resident		26/7 Truong Dinh Street, Ben Thanh Ward - 1 District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		57,300,000,000 VND
Percentage		95.5%

2. NAME		Mr. BIEN CONG PHUC
ID Number/Passport		331090806
Resident		21 Street No.28 Quarter 2, Binh Tri Dong B Ward - Binh Tan District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		150,000,000 VND
Percentage		0.25%

3. NAME		Mr. CHUNG ANH QUANG
ID Number/Passport		023051300
Resident		107 Nguyen Xi Str, Ward 26 - Binh Thanh District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		600,000,000 VND
Percentage		1%

4. NAME		Mr. TA QUAN LUONG
ID Number/Passport		021861943
Resident		350-352 Dien Bien Phu Street, Ward 11 - 10 District - Ho Chi Minh City - Vietnam
Nationality		Vietnamese
Value of shares		1,950,000,000 VND
Percentage		3.25%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010	31/12/2009
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	21,124,000,000	12,177,499,761
I. Cash and cash equivalents	349,000,000	177,104,567
1. Cash	349,000,000	177,104,567
2. Cash equivalents	0	0
II. Short-term investments	0	0
1. Short-term investments	0	0
2. Provisions for devaluation of short-term investments	0	0
III. Accounts receivable	2,239,000,000	33,146,833
1. Receivable from customers	2,083,000,000	33,146,833
2. Prepayments to suppliers	156,000,000	0
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	0	0
6. Provisions for bad debts	0	0
IV. Inventories	15,140,000,000	9,631,523,133
1. Inventories	15,140,000,000	9,631,523,133
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	3,396,000,000	2,335,725,228
1. Short-term prepaid expenses	695,000,000	77,825,562
2. VAT to be deducted	2,669,000,000	2,231,875,813
3. Taxes and other accounts receivable from the State	0	0
4. Other current assets	32,000,000	26,023,853
B. LONG-TERM ASSETS	63,051,000,000	64,815,859,750
I. Long term account receivable	0	0
1. Long term account receivable from customers	0	0
2. Working capital in affiliates	0	0
3. Long-term inter-company receivable	0	0
4. Other long-term receivable	0	0
5. Provisions for bad debts from customers	0	0
II. Fixed assets	63,051,000,000	64,815,859,750
1. Tangible assets	46,391,000,000	31,576,646,299
- Historical costs	55,660,000,000	35,432,394,998
- Accumulated depreciation	-9,269,000,000	-3,855,748,699
2. Financial leasehold assets	0	18,491,365,991
- Historical costs	0	19,144,234,259
- Accumulated depreciation	0	-652,868,268
3. Intangible assets	14,717,000,000	14,523,946,792
- Initial costs	14,717,000,000	14,717,599,414
- Accumulated amortization	0	-193,652,622
4. Construction-in-progress	1,943,000,000	223,900,668
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	0	0
1. Long-term prepaid expenses	0	0
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
TOTAL ASSETS	84,175,000,000	76,993,359,511

LIABILITIES
A- LIABILITIES	55,355,000,000	44,521,561,687
I. Current liabilities	27,915,000,000	18,430,202,332
1. Short-term debts and loans	3,713,000,000	9,135,500,000
2. Payable to suppliers	8,016,000,000	9,119,276,666
3. Advances from customers	15,674,000,000	108,799,910
4. Taxes and other obligations to the State Budget	314,000,000	54,745,896
5. Payable to employees	0	0
6. Accrued expenses	0	0
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	198,000,000	11,879,860
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	27,440,000,000	26,091,359,355
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	27,440,000,000	26,091,359,355
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	0	0
7. Provisions for long-term accounts payable	0	0
B- OWNER’S EQUITY	28,820,000,000	32,471,797,824
I. OWNER’S EQUITY	28,820,000,000	32,471,797,824
1. Capital	53,010,000,000	50,686,775,772
2. Share premiums	0	0
3. Other sources of capital	0	0
4. Treasury stocks	0	0
5. Differences on asset revaluation	0	0
6. Foreign exchange differences	0	0
7. Business promotion fund	0	0
8. Financial reserved fund	0	0
9. Other funds	0	0
10. Retained earnings	-24,190,000,000	-18,214,977,948
11. Construction investment fund	0	0
II. Other sources and funds	0	0
1. Bonus and welfare funds	0	0
2. Sources of expenditure	0	0
3. Fund to form fixed assets	0	0
MINORITY’S INTEREST	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	84,175,000,000	76,993,359,511

PROFIT & LOSS STATEMENT

Description	FY2010	FY2009
1. Total Sale	26,312,000,000	3,077,640,930
2. Deduction item	0	0
3. Net sale	26,312,000,000	3,077,640,930
4. Costs of goods sold	26,665,000,000	8,257,831,092
5. Gross profit	-353,000,000	-5,180,190,162
6. Financial income	60,000,000	2,679,681
7. Financial expenses	2,774,000,000	1,209,633,396
- In which: Loan interest expenses	2,161,000,000	1,164,788,726
8. Selling expenses	8,000,000	834,256
9. Administrative overheads	2,894,000,000	5,571,324,492
10. Net operating profit	-5,969,000,000	-11,959,302,625
11. Other income	6,000,000	485,197
12. Other expenses	12,000,000	0
13. Other profit /(loss)	-6,000,000	485,197
14. Total accounting profit before tax	-5,975,000,000	-11,958,817,428
15. Current corporate income tax	0	0
16. Deferred corporate income tax	0	0
18. Profit after tax	-5,975,000,000	-11,958,817,428

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2010	FY2009	Average Industry
Current liquidity ratio	0.76	0.66	1.74
Quick liquidity ratio	0.21	0.14	1.02
Inventory circle	1.76	0.86	3.74
Average receive period	31.06	3.93	76.97
Utilizing asset performance	0.31	0.04	1.31
Liability by total asset	65.76	57.83	49.32
Liability by owner equity	192.07	137.11	129.21
Ebit / Total asset (ROA)	-4.53	-14.02	8.55
Ebit / Owner's equity (ROE)	-13.23	-33.24	18.02
Ebit / Total sale (NPM)	-14.50	-350.72	6.82
Gross profit / Total sale (GPM)	-1.34	-168.32	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		Low
Payment status		Normal
Financial Situation		Normal
Development trend		Even
Litigation data		No
Bankruptcy		No
Payment Methods		Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C)
Sale Methods		Wholesaler
Public opinion		N/A

CREDIT INQUIRY: 125,000 USD

In our opinion, accept with close term and this is also maximum credit limited.

INTERPRETATION ON THE SCORES

ORIENT PHARMACEUTICAL CORPORATION was established in 2007 which is joint stock company. The subject operates under the business registration No. 0305030898 and the registration capital is 60,000,000,000 VND. The subject is specialized in manufacturing and trading pharmaceutical. Its materials are mainly imported from India and China. Products of the subject are traded through Vietnam. Besides, the subject is also trading products of DN PHARMA CORP.
The subject’s owners have another company operating in the same field - DN PHARMA CORP - which is a joint stock company, established in 2001. Products of this company are given award such as: "Gold Cup of Vietnamese brand", Certificate of Good Manufacturing Practices by Drug Administration of Vietnam. DN Pharma is operating fairly effective.
Directors of the subject have long year experience in this field and created good relationship with suppliers and customers. They are building a stable market share for the subject.
The subject’s premises and facilities are fairly good. Its head office and factory located at Lot 7 Street No.2, Tan Tao Industrial Zone, Tan Tao A Ward - Binh Tan District - Ho Chi Minh City. This factory has just completed and it has gone to operation for 2 years. It is supported much from its related company. However, its turnover is still small in comparison with companies in the same field. Its profit 2009 - 2010 is decrease much. In current, its financial situation is normal. The subject has capacity to meet small commitments. Caution need for medium and big 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.44.46
UK Pound	1	Rs.71.67
Euro	1	Rs.62.94

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.