MIRA INFORM REPORT

Report Date :

24.08.2012

IDENTIFICATION DETAILS

Name :	SUHEUNG VIETNAM CO., LTD
Registered Office :	Long Thanh Industrial Zone, Tam An Commune, Long Thanh District, Dong Nai Province
Country :	Vietnam
Financials (as on) :	31.12.2011
Year of Establishment :	2006
Legal Form :	Limited Liability Company
Line of Business :	manufacturing and trading capsule for pharmaceuticals
No. of Employees :	250 employees

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, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
Vietnam	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	SUHEUNG VIETNAM CO., LTD
Vietnamese Name	CONG TY TRACH NHIEM HUU HAN SUHEUNG VIET NAM
Type of Business	Limited liability company
Year Established	2006
Date of Issuance	11 Sep 2006
Investment Certificate No	473042000007
Date Of Issuance	11 Sep 2006
Place of Issuance	Dong Nai Industrial Zone Authority
Registered Investment Capital	USD 40,000,000
Chartered capital	USD 13,000,000
Status	Unlisted
Tax code	3600840239
Total Employees	250
Size	Medium

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Address: 3rd Fl, Room 6, No. 268 To Hien Thanh Street, Ward 15 – District 10 - Ho Chi Minh City - Vietnam Changed to: 9th Floor, SPT Tower, 199 Dien Bien Phu Street, Binh Thanh District, Ho Chi Minh City, Vietnam	2011
2	Subject has got former Registered Investment Capital: USD 30,700,000 Changed to: USD 40,000,000	N/A

company ADDRESSES

Head Office
Address	Long Thanh Industrial Zone, Tam An Commune, Long Thanh District, Dong Nai Province, Vietnam
Transaction office in Ho Chi Minh
Address	9th Floor, SPT Tower, 199 Dien Bien Phu Street, Binh Thanh District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 5422-2357
Fax	(84-8) 5422-2358
Email	sjcho@suheung.com
Website	http://www.suheung.com

SUBSIDIARIES AND RELATED COMPANIES

PARENT COMPANY - SUHEUNG CAPSULE CO., LTD
Address	6th Fl, Jung-An Bldg 6th Fl, Jung-An Bldg, 435-5 Jangan 3 Dong, Dongdaemun-Gu, Seoul , Korea, South
Tel	82-2-2210-8175
Fax	82-2-2217-2356

DIRECTORS

1. NAME	Mr. CHO SUNG JUN
Position	General Director
Date of Birth	08 Aug 1956
ID Number/Passport	EP0040657
ID Issue Date	23 Nov 2007
ID Issue Place	Korea
Resident	Rm.#701, 115 Dong Bukhansan Hyundai-Hometown, 663, Bulkwang-Dong, Eunpyeong-Gu, Seoul , Korea, South
Nationality	Korean
2. NAME	Ms. TRAN THI MINH
Position	Chief Accountant
Nationality	Vietnamese
Tel/Mobile phone	(84-8) 5422-2357, ext 140 / +84 908 959 768
Email	minhtran@suheung-vietnam.com
3. NAME	Mr. NGUYEN DO HONG LINH
Position	Chief of Import - Export Department
Nationality	Vietnamese
Tel/Mobile phone	(84-8) 5422-2357, ext 172

BUSINESS NATURE AND ACTIVITIES

The subject specializes in manufacturing and trading capsule for pharmaceuticals

IMPORT & EXPORT ACTIVITIES

IMPORT:
 Types of products	Materials
 Market	India, China, USA, Japan, EU
 Ratio	100%
 Mode of payment	L/C, T/T
EXPORT:
 Market	28 countries in the world
 Ratio	80%
 Mode of payment	L/C, T/T

BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM BINH THANH BRANCH
Address	No. 169 Dien Bien Phu str,No.15 ward, Binh Thanh District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 38407927
Fax	(84-8) 38407923
2. INDUSTRIAL BANK OF KOREA
Address	No.34 Le Duan Str, 1 District, Ho Chi Minh City, Vietnam
Telephone	84-8.38232661
Fax	84-8.38232669

SHAREHOLDERS

1. NAME	SUHEUNG CAPSULE CO., LTD
Address	6th Fl, Jung-An Bldg 6th Fl, Jung-An Bldg, 435-5 Jangan 3 Dong, Dongdaemun-Gu, Seoul , Korea, South
Tel	82-2-2210-8175
Fax	82-2-2217-2356
Percentage	100%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010	31/12/2009
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	221,048,967,020	204,548,175,128	142,698,244,043
I. Cash and cash equivalents	15,558,347,880	24,750,084,023	4,382,862,834
1. Cash	15,558,347,880	24,750,084,023	4,382,862,834
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	121,773,910,882	111,314,475,389	70,812,592,499
1. Receivable from customers	117,760,259,450	98,033,466,210	60,731,097,118
2. Prepayments to suppliers	4,612,332,816	5,395,480,004	3,420,790,279
3. Inter-company receivable		0	0
4. Receivable according to the progress of construction		0	0
5. Other receivable	399,354,187	8,071,081,746	6,660,705,102
6. Provisions for bad debts	-998,035,571	-185,552,571	0
IV. Inventories	80,968,351,128	67,795,644,461	60,724,947,500
1. Inventories	80,968,351,128	67,795,644,461	61,169,854,695
2. Provisions for devaluation of inventories		0	-444,907,195
V. Other Current Assets	2,748,357,130	687,971,255	6,777,841,210
1. Short-term prepaid expenses	822,774,176	227,194,838	1,112,153,348
2. VAT to be deducted	1,833,643,499	407,699,086	5,537,003,412
3. Taxes and other accounts receivable from the State		53,077,331	0
4. Other current assets	91,939,455	0	128,684,450
B. LONG-TERM ASSETS	523,659,662,215	579,619,183,684	624,488,147,017
I. Long term accounts 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	459,788,479,893	510,728,412,463	547,885,427,037
1. Tangible assets	422,715,184,639	0	504,173,086,682
- Historical costs		469,509,877,301	547,279,663,292
- Accumulated depreciation		0	-43,106,576,610
2. Financial leasehold assets	23,157,610,690	0	30,132,794,640
- Historical costs		26,505,698,986	33,480,882,936
- Accumulated depreciation		0	-3,348,088,296
3. Intangible assets	13,915,684,564	0	13,579,545,715
- Initial costs		14,712,836,176	14,417,156,000
- Accumulated amortization		0	-837,610,285
4. Construction-in-progress		0	0
III. Investment property		0	0
Historical costs		0	0
Accumulated depreciation		0	0
IV. Long-term investments	29,249,226,800	29,249,226,800	29,249,226,800
1. Investments in affiliates		0	0
2. Investments in business concerns and joint ventures		0	0
3. Other long-term investments	29,249,226,800	29,249,226,800	29,249,226,800
4. Provisions for devaluation of long-term investments		0	0
V. Other long-term assets	34,621,955,522	39,641,544,421	47,353,493,180
1. Long-term prepaid expenses	33,941,532,102	39,188,762,461	46,988,861,220
2. Deferred income tax assets		0	0
3. Other long-term assets	680,423,420	452,781,960	364,631,960
VI. Goodwill		0
1. Goodwill		0
TOTAL ASSETS	744,708,629,235	784,167,358,812	767,186,391,060
LIABILITIES
A- LIABILITIES	562,225,709,909	594,672,128,488	575,976,592,457
I. Current liabilities	562,225,709,909	320,035,192,789	216,564,534,191
1. Short-term debts and loans	383,359,166,590	166,347,197,842	44,804,517,194
2. Payable to suppliers	171,263,835,513	148,683,652,200	167,672,339,654
3. Advances from customers	214,188,070	597,245,153	0
4. Taxes and other obligations to the State Budget	773,914,924	239,032,442	66,763,441
5. Payable to employees	1,336,448,040	1,262,328	859,347,684
6. Accrued expenses	5,100,356,433	4,159,607,824	3,128,084,855
7. Inter-company payable		0	0
8. Payable according to the progress of construction contracts		0	0
9. Other payable	177,800,339	7,195,000	33,481,363
10. Provisions for short-term accounts payable		0	0
11. Bonus and welfare funds
II. Long-Term Liabilities		274,636,935,699	359,412,058,266
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		274,636,935,699	359,412,058,266
5. Deferred income tax payable		0	0
6. Provisions for unemployment allowances		0	0
7. Provisions for long-term accounts payable		0	0
8. Unearned Revenue
9. Science and technology development fund
B- OWNER’S EQUITY	182,482,919,326	189,495,230,324	191,209,798,603
I. OWNER’S EQUITY	182,482,919,326	0	191,209,798,603
1. Capital	215,240,599,200	215,240,599,200	215,240,599,200
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	-53,665,847,771	-19,141,890,500	-7,027,189,292
7. Business promotion fund		0	0
8. Financial reserved fund		0	0
9. Other funds		0	0
10. Retained earnings	20,908,167,897	-6,603,478,376	-17,003,611,305
11. Construction investment fund		0	0
12. Business arrangement supporting fund
II. Other sources and funds		0	0
1. Sources of expenditure		0	0
2. Fund to form fixed assets		0	0
MINORITY’S INTEREST		0
TOTAL LIABILITIES AND OWNER’S EQUITY	744,708,629,235	784,167,358,812	767,186,391,060

PROFIT & LOSS STATEMENT
Description	FY2011	FY2010	FY2009
1. Total Sales	357,844,717,857	291,050,474,266	165,550,649,715
2. Deduction item	1,143,735,790	91,680,000	33,366,221
3. Net revenue	356,700,982,067	290,958,794,266	165,517,283,494
4. Costs of goods sold	257,568,097,191	211,468,899,546	141,910,620,820
5. Gross profit	99,132,884,876	79,489,894,720	23,606,662,674
6. Financial income	8,095,051,143	4,732,459,641	9,377,203,138
7. Financial expenses	32,557,277,763	31,913,099,721	15,196,183,601
- In which: Loan interest expenses	6,984,664,232	10,076,278,417	8,728,078,149
8. Selling expenses	37,406,383,928	33,951,092,766	15,222,830,497
9. Administrative overheads	11,541,241,299	9,084,032,221	11,469,224,487
10. Net operating profit	25,723,033,029	9,274,129,653	-8,904,372,773
11. Other income	1,943,690,156	1,264,670,314	626,594,747
12. Other expenses	155,076,915	138,667,037	157,465,084
13. Other profit /(loss)	1,788,613,241	1,126,003,277	469,129,663
14. Total accounting profit before tax	27,511,646,270	10,400,132,930	-8,435,243,110
15. Current corporate income tax			0
16. Deferred corporate income tax			0
17. Interest from subsidiaries/related companies
18. Profit after tax	27,511,646,270	10,400,132,930	-8,435,243,110

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	0.39	0.64	0.66	1.65
Quick liquidity ratio	0.25	0.43	0.38	1.04
Inventory circle	3.18	3.12	2.34	4.14
Average receive period	124.61	139.64	156.16	105.37
Utilizing asset performance	0.48	0.37	0.22	1.20
Liability by total assets	75.50	75.83	75.08	53.11
Liability by owner's equity	308.10	313.82	301.23	159.74
Ebit / Total assets (ROA)	4.63	2.61	0.04	10.37
Ebit / Owner's equity (ROE)	18.90	10.81	0.15	23.03
Ebit / Total revenue (NPM)	9.64	7.04	0.18	10.15
Gross profit / Total revenue (GPM)	27.70	27.31	14.26	25.88
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CASH FLOW STATEMENT
(Indirect method)
Items	FY2011
1. Profit before tax	27,511,646,270
2. Adjustments
- Depreciation and amortization	55,139,954,845
- Provisions	812,483,000
- Unrealized foreign exchange difference
- Gain/loss from investing activities	-313,708,032
- Interest expense	6,984,664,232
3. Operating profit before movements in working capital	90,135,040,315
- (Increase)/Decrease in receivables	-12,335,356,054
- (Increase)/Decrease in inventories	-13,172,706,666
- Increase/(Decrease) in accounts payable	10,647,520,909
- (Increase)/Decrease in prepaid expenses	4,651,651,021
- Interest paid	-6,805,282,717
- Corporate income tax paid
- Other cash inflows
- Other cash outflows	-227,641,460
Net cash from (used in) operating activities	72,893,225,348
II. Cash flows from investing activities
1. Acquisition of fixed assets and other long - term assets	-4,200,022,275
2. Proceeds from fixed assets and long - term assets disposal
3. Cash outflow for lending, buying debt instruments of other companies
4. Cash recovered from lending, selling debt instruments of other companies
5. Investment in other entities
6. Cash recovered from investments in other entities
7. Interest income, dividend and profit paid	313,708,032
Net cash from (used in) investing activities	-3,886,314,243
III. Cash flows from financing activities
1. Proceeds from issuing stocks, receiving capital from owners
2. Capital withdrawal, buying back issued stocks
3. Proceeds from borrowings	263,731,258,091
4. Repayment of borrowings	-324,081,706,177
5. Repayment of obligations under finance leased	-18,047,467,325
6. Dividends paid
Net cash from (used in) financing activities	-78,397,915,411
Net increase/(decrease) in cash and cash equivalents	-9,391,004,306
Cash and cash equivalents at beginning of year	24,750,084,023
Effect from changing foreign exchange rate	199,268,163
Cash and cash equivalents at end of year	15,558,347,880

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Fair
Liquidity	Normal
Payment status	Average
Financial Situation	Above Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Through its bank, LC at sight, TT
Sale Methods	To contracts
Public opinion	Good

INTERPRETATION ON THE SCORES

SUHEUNG VIETNAM CO., LTD is wholly foreign invested company from Korea, established in 2006. The subject is operating under investment certificate No.473042000007 and tax code No. 3600840239.

Head office and factory are placed at Long Thanh Industrial Zone, Tam An Commune, Long Thanh District - Dong Nai Province – Vietnam. However, all business transactions are performed at 9th Floor, SPT Tower, 199 Dien Bien Phu Street, Binh Thanh District, Ho Chi Minh City.

The subject focuses on manufacturing capsule products following the GMP–WHO requirements. Materials for production are imported from EU, USA and some Asia countries. Its products are exported to 28 countries in the world.

Looking at financial statements above, we found a remarkable growth of total sales and profit year after year. However, total assets in 2011 decreased compared with 2010. The liquidity seems not very good. The current liquidity ratio and quick liquidity ratio are humble and the financial leverage is higher than the average industry. The operation ratios should be improved more. The business result of the subject is fairly good but the financial ratios are not very safe.

In general, the subject is a medium company whose facilities are quite standard. It is expected to develop in the future. Caution needed for large transactions with the subject.

APPENDIX

INDUSTRY DATA
Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2009		Total employees 2010 (Thous.pers.)	Annual average capital of enterprises 2009 (billion dongs)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,749		23,896.3	81,559
Industry and Construction	5.53	7.70	85,115		10,630	2,751,975
Trade and Services	6.69	7.52	154,978		14,522	4,939,069
ECONOMIC INDICATORS
			2011	2010		2009
Population (Million person)			87.84	86.93		86.02
Gross Domestic Products (USD billion)			119	102.2		91
GDP Growth (%)			5.89	6.78		5.32
GDP Per Capita (USD/person/year)			1,300	1,160		1,080
Inflation (% Change in Composite CPI)			18.58	11.75		6.88
State Budget Deficit compared with GDP (%)			4.9	5.8		6.9
SERVICE TRADE PERFORMANCE
Billion USD			2011	2010		2009
Exports			96.3	72.2		57.1
Imports			105.8	84.8		69.9
Trade Balance			-9.5	-12.6		-12.8

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.19
UK Pound	1	Rs.87.65
Euro	1	Rs.69.16

INFORMATION DETAILS

Report Prepared by :

MNL

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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