MIRA INFORM REPORT

Report Date :

24.12.2012

IDENTIFICATION DETAILS

Name :	VETERINARY MEDICINE IMPORT EXPORT JOINT STOCK COMPANY

Registered Office :	No.7, 30/4 Street, Xuan Khanh Ward, Ninh Kieu District, Can Tho City

Country :	Vietnam

Financials (as on) :	31.12.2011

Date of Incorporation :	1989

Com. Reg. No.:	1800155195

Legal Form :	Joint stock company

Line of Business :	Materials for manufacture of veterinary medicine

No. of Employees :	450

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 :	Regular

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^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Vietnam

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

vietnam - ECONOMIC OVERVIEW

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
Registered English Name		VETERINARY MEDICINE IMPORT EXPORT JOINT STOCK COMPANY
Registered Vietnamese Name		CONG TY CO PHAN SAN XUAT KINH DOANH VAT TU VA THUOC THU Y
Registered Short name		VEMEDIM
Type of Business		Joint stock company
Year Established		1989
Establishment Decision		1244/QD-UB
Date of Issuance		22 Nov 1992
Place of Issuance		Can Tho People Committee
Business Registration No.		1800155195
Date of Registration		17 Aug 2009
Place of Registration		Planning & Investment Department of Can Tho Province
Chartered capital		VND 20,000,000,000
Status		Unlisted
Tax code		1800155195
Total Employees		450
Size		Medium
Note: The subject’s exact name is as above

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 5703000179 dated on 18 Jan 2006 Changed to: 1800155195	17 Aug 2009
2	Subject has got former Business Registration No: 100504 dated on 24 Aug 2000 Changed to: No. 5703000179	18 Jan 2006
3	Subject has got former Registered English Name: CAN THO VETERINARY MEDICINE COMPANY Changed to: VETERINARY MEDICINE IMPORT EXPORT JOINT STOCK COMPANY	N/A
4	Subject has got former Registered Vietnamese Name: CONG TY SAN XUAT KINH DOANH VAT TU THUOC THU Y Changed to: CONG TY CO PHAN SAN XUAT KINH DOANH VAT TU VA THUOC THU Y	N/A
5	Subject has got former Type of Business: State owned company Changed to: Joint stock company	N/A

ADDRESSES

Head Office
Address		No.7, 30/4 Street, Xuan Khanh Ward, Ninh Kieu District, Can Tho City, Vietnam
Telephone		(84-710) 3820703 / 3820704
Fax		(84-710) 3825853 / 3738839
Email		vmd@hcm.vnn.vn
Website		http://www.vemedim.com.vn

Representative office in Malaysia
Address		No.60, Jala ¾, Subang Permai 47500 Petaling Jaya, Selangor, Malaysia
Telephone		(603) 80247118
Fax		(603) 80247168

Branch in Khanh Hoa
Address		No.49/10, Le Hong Phong Str., Nha Trang City, Khanh Hoa Province, Vietnam
Telephone		(84-58) 3875846

Branch in Binh Dinh
Address		No.11, Tang Bat Ho Str., Qui Nhon City, Binh Dinh Province, Vietnam
Telephone		(84-56) 3822749

Branch in Ha Noi
Address		No.61A Truong Chinh Str, Hai Ba Trung District, Ha Noi City, Vietnam
Telephone		(84-4) 38693930
Note: Besides, the subject has many branches or offices in almost provinces in Vietnam. It has relationship with 12 small companies & factories in Can Tho Province.

DIRECTORS

1. NAME		Mr. NGUYEN DUC HIEN
Position		Director
Date of Birth		01 Jan 1962
ID Number/Passport		No. 361093571
ID Issue Date		28 Feb 2003
ID Issue Place		Can Tho policy station
Resident		No 62A, Mau Than Str., An Nghiep ward, Ninh Kieu District, Can Tho City, Vietnam
Nationality		Vietnamese

2. NAME		Mr. LUU PHUOC HAU
Position		Deputy Director
Resident		Ninh Kieu District, Can Tho City, Vietnam
Nationality		Vietnamese

3. NAME		Mr. LE QUOC TUY
Position		Deputy Director
Nationality		Vietnamese

4. NAME		Mr. BUI TICH THIEN
Position		Chief Accountant
Resident		No 90 Nguyen Van Cu, Can Tho City, Vietnam
Tel/Mobile phone		(84-710) 3820703, ext: 162
Email		adslvmd@vnn.vn
Nationality		Vietnamese

5. NAME		Mr. LE QUAN TAM
Position		Import - Export Department
ID Number/Passport		361915130
Resident		Ninh Kieu Ward, Can Tho City, Ninh Kieu District, Can Tho City, Vietnam
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

• Producing and trading veterinary medicine for animal, pets, shrimps, fish. Including: Injectable solution, Oral solution, Sterile powder for injection, Water soluble powder, Feed additives, Premixes, Biological, Disinfectant, Water treatment products.
• Supply of consultant services

IMPORT & EXPORT ACTIVITIES

IMPORT:
Types of products		Materials for manufacture of veterinary medicine
Market		USA, Japan, Canada, China, India
Mode of payment		L/C, T/T

EXPORT:
Types of products		Veterinary medicine, aqua medicine
Market		Asia countries, Africa, Middle East, Southern United States
Mode of payment		L/C, T/T

BANKERS

1. MARITIME COMMERICAL STOCK BANK CAN THO BRANCH
Address		No.40 Phan Dinh Phung str, Ninh Kieu District, Can Tho City, Vietnam
Telephone		(84-710) 3824 792
Fax		(94-710) 3820 279

2. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT CAN THO BRANCH
Address		No.3 Phan Dinh Phung, Ninh Kieu District, Can Tho City, Vietnam
Telephone		(84-710) 3827832
Fax		(84-710) 3821594

3. HSBC BANK (VIET NAM) LTD - CAN THO BRANCH
Address		SST building, No.11, Hoa Binh St., Ninh Kieu Dist., Can Tho City, Vietnam
Telephone		(84-710) 373 5757

4. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
Address		107 A1, Cai Khe Trade Center, Ninh Kieu District, Can Tho City, Vietnam

SHAREHOLDERS

1. NAME		Mr. NGUYEN DUC HIEN
Position		Director
Date of Birth		01 Jan 1962
ID Number/Passport		No. 361093571
Issued on		28 Feb 2003
Issued Place		Can Tho policy station
Resident		No 62A Mau Than Str, An Nghiep ward, Ninh Kieu District, Can Tho City, Vietnam
Nationality	Vietnamese
Number of Shares		99,100

2. NAME		Mr. BUI TICH THIEN
Position		Chief Accountant
Resident		No 90 Nguyen Van Cu, , Can Tho City, Vietnam
Nationality		Vietnamese
Email		adslvmd@vnn.vn
Work phone		(84-710) 3820703, ext: 162
Number of Shares		71,200

3. NAME		Mr. TRAN VAN SY
Resident		Block H2 Mau Than collective zone, Can Tho City, Vietnam
Nationality		Vietnamese
Number of Shares		66,900

4. NAME		Mr. HUYNH HUU PHUOC
Resident		188/28 Nguyen Van Cu Str., Can Tho City, Vietnam
Nationality		Vietnamese
Number of Shares		31,500

5. NAME		Mr. PHAM MANH HUNG
Resident		No 69/3, 30/4 Str., Can Tho City, Vietnam
Nationality		Vietnamese
Number of Shares		42,300

6. NAME		THE OTHER STAFFS OWNED CAPITAL
Number of shares		1,063,460

7. NAME		THE OUTSIDE SHAREHOLDERS OWNED CAPITAL
Number of shares		625,540

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
Audit status	Unknown	Unknown	Unknown
ASSETS
A – CURRENT ASSETS	243,741,000,000	187,241,000,000	145,255,843,963
I. Cash and cash equivalents	51,919,000,000	44,768,000,000	17,599,115,661
1. Cash	51,919,000,000	44,768,000,000	17,599,115,661
2. Cash equivalents	0	0	0
II. Short-term investments	0	0	0
1. Short-term investments	0	0	0
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	79,571,000,000	61,290,000,000	61,726,345,427
1. Receivable from customers	61,538,000,000	61,447,000,000	0
2. Prepayments to suppliers	20,882,000,000	3,476,000,000	0
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	3,579,000,000	2,790,000,000	0
6. Provisions for bad debts	-6,428,000,000	-6,423,000,000	0
IV. Inventories	109,227,000,000	80,443,000,000	64,007,439,397
1. Inventories	112,464,000,000	83,675,000,000	0
2. Provisions for devaluation of inventories	-3,237,000,000	-3,232,000,000	0
V. Other Current Assets	3,024,000,000	740,000,000	1,922,943,478
1. Short-term prepaid expenses	650,000,000	276,000,000	0
2. VAT to be deducted	1,668,000,000	116,000,000	0
3. Taxes and other accounts receivable from the State	14,000,000	0	0
4. Other current assets	692,000,000	348,000,000	0
B. LONG-TERM ASSETS	32,478,000,000	34,033,000,000	30,734,883,238
I. Long term accounts 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	31,135,000,000	32,593,000,000	29,006,554,025
1. Tangible assets	30,817,000,000	32,593,000,000	29,006,554,025
- Historical costs	98,302,000,000	88,189,000,000	29,006,554,025
- Accumulated depreciation	-67,485,000,000	-55,596,000,000	0
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	0	0	0
- Initial costs	0	0	0
- Accumulated amortization	0	0	0
4. Construction-in-progress	318,000,000	0	0
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	0	0	0
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	0
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	1,343,000,000	1,440,000,000	1,728,329,213
1. Long-term prepaid expenses	1,161,000,000	1,440,000,000	0
2. Deferred income tax assets	182,000,000	0	0
3. Other long-term assets	0	0	1,728,329,213
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	276,219,000,000	221,274,000,000	175,990,727,201

LIABILITIES
A- LIABILITIES	93,776,000,000	81,291,000,000	87,959,590,308
I. Current liabilities	91,842,000,000	78,703,000,000	76,151,921,247
1. Short-term debts and loans	28,163,000,000	18,578,000,000	76,151,921,247
2. Payable to suppliers	43,599,000,000	40,092,000,000	0
3. Advances from customers	37,000,000	440,000,000	0
4. Taxes and other obligations to the State Budget	5,148,000,000	4,842,000,000	0
5. Payable to employees	7,071,000,000	119,000,000	0
6. Accrued expenses	5,896,000,000	12,984,000,000	0
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	1,928,000,000	1,648,000,000	0
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	1,934,000,000	2,588,000,000	11,807,669,061
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	1,560,000,000	2,270,000,000	0
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	374,000,000	318,000,000	0
7. Provisions for long-term accounts payable	0	0	0
8. Unearned Revenue	0	0	0
9. Science and technology development fund	0	0	0
B- OWNER’S EQUITY	182,443,000,000	139,983,000,000	88,031,136,893
I. OWNER’S EQUITY	177,413,000,000	136,750,000,000	88,031,136,893
1. Capital	20,000,000,000	20,000,000,000	88,031,136,893
2. Share premiums	0	0	0
3. Other sources of capital	0	0	0
4. Treasury stocks	-10,598,000,000	-9,984,000,000	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	0	0	0
7. Business promotion fund	94,735,000,000	61,935,000,000	0
8. Financial reserved fund	12,390,000,000	7,354,000,000	0
9. Other funds	4,201,000,000	4,201,000,000	0
10. Retained earnings	56,685,000,000	53,244,000,000	0
11. Construction investment fund	0	0	0
12. Business arrangement supporting fund	0	0	0
II. Other sources and funds	5,030,000,000	3,233,000,000	0
1. Bonus and welfare funds (Elder form)	5,030,000,000	3,233,000,000	0
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	276,219,000,000	221,274,000,000	175,990,727,201

PROFIT & LOSS STATEMENT

Description	FY2011	FY2010	FY2009
1. Total Sales	486,893,000,000	417,771,000,000	358,138,447,376
2. Deduction item	499,000,000	690,000,000	864,774,182
3. Net revenue	486,394,000,000	417,081,000,000	357,273,673,194
4. Costs of goods sold	281,487,000,000	224,478,000,000	219,441,601,896
5. Gross profit	204,907,000,000	192,603,000,000	137,832,071,298
6. Financial income	2,060,000,000	256,000,000	194,994,160
7. Financial expenses	54,004,000,000	26,666,000,000	40,110,518,640
- In which: Loan interest expenses	3,518,000,000	3,805,000,000	10,759,034,860
8. Selling expenses	35,349,000,000	59,263,000,000	23,351,999,504
9. Administrative overheads	56,450,000,000	52,020,000,000	37,946,268,619
10. Net operating profit	61,164,000,000	54,910,000,000	36,618,278,695
11. Other income	63,000,000	616,000,000	1,264,567,098
12. Other expenses	1,000,000	428,000,000	72,442,690
13. Other profit /(loss)	62,000,000	188,000,000	1,192,124,408
14. Total accounting profit before tax	61,226,000,000	55,098,000,000	37,810,403,103
15. Current corporate income tax	7,512,000,000	5,741,000,000	4,327,215,255
16. Deferred corporate income tax	-182,000,000	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	53,896,000,000	49,357,000,000	33,483,187,848

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	2.65	2.38	1.91	1.42
Quick liquidity ratio	1.46	1.36	1.07	0.78
Inventory circle	2.58	2.79	3.43	5.13
Average receive period	59.71	53.64	63.06	72.48
Utilizing asset performance	1.76	1.88	2.03	1.61
Liability by total assets	33.95	36.74	49.98	65.76
Liability by owner's equity	51.40	58.07	99.92	269.57
Ebit / Total assets (ROA)	23.44	26.62	27.60	11.97
Ebit / Owner's equity (ROE)	35.49	42.08	55.17	36.02
Ebit / Total revenue (NPM)	13.30	14.10	13.56	7.56
Gross profit / Total revenue (GPM)	42.08	46.10	38.49	14.67
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

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

INTERPRETATION ON THE SCORES

The subject was established in May 1989 as a State owned company. It was changed into Joint Stock Company in 2006 with 30 percent of stakes in subject of the state. However, the state sold its shares to private shareholders in Aug 2009. Currently, the subject operates under the business registration No. 1800155195 with the chartered capital is VND 20 billion.

Besides the headquarters in Can Tho City, the subject has also some branches at some cities and provinces in Vietnam, and a representative office in Malaysia. Its main products including antibiotics, vitamins, premix, enzymes, anti-inflammatory drugs, drugs kill parasites, hormones, increase metabolism, biological products, and environmental remediation. Its products are famous and familiar in Vietnam. Besides proving in domestic market, the subject also exports to Asian countries, Africa, Middle East and Southern United States. After more than twenty years of operation, the subject has progressed step by step and contributed considerably for development of province. Its prestige and position are being improved much.

The management capacity is fair. With production lines, modern equipment, advanced technology and quality management system efficiency, the subject has been certified in accordance WHO GMP standards (Good Manufacturing Practices) and ISO 9001:2000 (International Quality Management System). System storage of goods of subject is accordance standard GSP (Good Storage Practices). Besides, the environmental management system is consistent with international standards ISO 14001:2004. The laboratory system has been certified in accordance with GLP and ISO/IEC 17025 and it was granted VILAS stamp, which is accepted in 42 countries.

The financial situation of the subject is considered above average. Liquidity was quite good because the current assets were fairly high against the current liabilities. The liabilities were relatively low and guaranteed by its assets and owner’s equity, showing that the capital structure is fairly safe. Business operation was effective. This is reflected in the annual growth of total sales and profit. In 2011, total sales were increased 16.5% and 35.9% in comparison with 2010 and 2009 respectively. Although the subject had to bear high of financial expenses and administrative overheads, its profit was improved with the growth rate of 9%. Profitability indicators were quite good compared with the industry average.

In general, the subject is now operating on the medium scale. Its position in the line is above average. The future prospect seems brightly. It is reliable for small and medium transactions.

INDUSTRY DATA

Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2010		Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,887		24,362.9	95,227
Industry and Construction	5.53	7.70	95,217		10,718.9	3,641,376
Trade and Services	6.69	7.52	187,195		15,270.2	6,957,082

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.55.08
UK Pound	1	Rs.89.53
Euro	1	Rs.72.77

INFORMATION DETAILS

Report Prepared by :

SDA

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.