MIRA INFORM REPORT

Report Date :

17.01.2012

IDENTIFICATION DETAILS

Correct Name :	BINHDINH PHARMACEUTICAL AND MEDICAL EQUIPMENT COMPANY
Registered Office :	No 498, Nguyen Thai Hoc Str., Qui Nhon City, Binh Dinh Province
Country :	Vietnam
Financials (as on) :	31.12.2010
Year of Establishment :	1979
Com. Reg. No.:	4100259564
Legal Form :	One Member Liability Limited Company
Line of Business :	manufacture and trading in pharmaceutical products, material for medical production, medical equipments
No. of Employees :	700

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 – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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	BINHDINH PHARMACEUTICAL AND MEDICAL EQUIPMENT COMPANY
Vietnamese Name	CONG TY DUOC - TRANG THIET BI Y TE BINH DINH (BIDIPHAR)
Short name	BIDIPHAR
Type of Business	One member liability limited company
Year Established	1979
Establishment Decision	264/QD-UBND
Date of Issuance	23 Jun 2010
Place of Issuance	People’s Committee of Binh Dinh Province
Business Registration No.	4100259564
Date of Registration	01 Sep 2010
Place of Registration	Binh Dinh Department of Planning and Investment
Current registered capital	VND 146,866,000,000
Status	Unlisted
Tax code	4100259564
Total Employees	700
Size	Large
Notes:  Formerly, the subject was state owned company. In September 2006, the subject transformed to parent-subsidiary company model. Then, in Jun 2010, it transformed to One member liability limited company following the decision No. 264/QD-UBND of People’s Committee of Binh Dinh Province.

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Board Of Director: General Director: Mr. LE MINH TAN Changed to: General Director: Mr. NGUYEN VAN QUA	08 Jan 2009
2	Subject has got former registered capital: 55,379,762,329 VND Changed to: 123,675,000,000 VND	08 Jan 2009
3	Subject has got former Establishment Decision No: 922/QD-UB Changed to: 264/QD-UBND	23 Jun 2010
4	Subject has got former Type of Business: State owned company Changed to: One member limited liability company	23 Jun 2010
5	Subject has got former Business Registration No: 3506000010 Changed to: 4100259564	01 Sep 2010
6	Subject has got former Registered capital: 123,675,000,000 VND Changed to: 146,866,000,000 VND	N/A

company ADDRESSES

Head Office
Address	No 498, Nguyen Thai Hoc Str., Qui Nhon City, Binh Dinh Province, Vietnam
Telephone	(84-56) 384 6500 /384 7798/ 384 6040
Fax	(84-56) 3546 683
Email	info@bidiphar.com
Website	www.bidiphar.com
Notes:  - The given fax number "3846846" is former number of the subject. The current one is above. - The given email ctyducbd@dng.vnn.vn is not exact. The correct one is above.
Branch in Ha Noi
Address	No 1038, Nguyen Khoai Str., Group 10, Thanh Tri ward, Hoang Mai District, Ha Noi City, Vietnam
Telephone	(84-4) 36449961
Fax	(84-4) 36449960
Branch in Ho Chi Minh
Address	No 433/24-26, Su Van Hanh Str., Ward 12, District 10, Ho Chi Minh City, Vietnam
Telephone	(84-8) 38626230
Fax	(84-8) 38626231
Branch in Khanh Hoa
Address	No 2-D2- Le Hong Phong Apartment Building, Phuoc Hai ward, Nha Trang City, Khanh Hoa Province, Vietnam
Telephone	(84-58) 6282862
Fax	(84-58) 6282862
Branch in Dak Lak
Address	No. 419, Resettlement Area, Thanh Nhat Ward, Buon Ma Thuot City, Dak Lak Province, Vietnam
Branch in Can Tho
Address	Lot A3-3, A3-4, A3-5, Road No. 9, Nam Long Housing Area, Cai Rang District, Can Tho City, Vietnam
Branch in Nghe An
Address	Lot 4, Vinaconex Urban Zone, V. Le Nin Highway - Nghi Phu Commune, Vinh City, Nghe An Province, Vietnam
Telephone	(84-38) 3572299 /38909997
Fax	(84-38) 3576568
Branch in Da Nang
Address	No. 76, Huynh Ngoc Hue Str., Group 52, Thanh Khe District, Da Nang City, Vietnam
Branch in Quang Ngai
Address	No. 202, Nguyen Trai Str., Quang Ngai City, Quang Ngai Province, Vietnam
Note: Besides, the subject also has 8 branches in some districts of Binh Dinh province.

SUBSIDIARIES AND RELATED COMPANIES

SUBSIDIARY COMPANIES:
1. QUY NHON MINERAL WATER COMPANY LIMITED
Address	No 249, Bach Dang Str., Qui Nhon City, Binh Dinh Province, Vietnam
2. BINH DINH SALT COMPANY LIMITED
Address	My Chanh Commune, Phu My District, Binh Dinh Province, Vietnam
3. CBF PHARMA CO., LTD
Address	Km 4, Road 13, Pakse Town, Champasec, Laos
4. BIDIPHAR I PHARMACEUTICAL JOINT STOCK COMPANY
Address	No 498, Nguyen Thai Hoc Str., Qui Nhon City, Binh Dinh Province, Vietnam
5. BIDIPHAR RUBBER JOINT STOCK COMPANY
Address	No 498, Nguyen Thai Hoc Str., Qui Nhon City, Binh Dinh Province, Vietnam
ASSOCIATED COMPANIES:
1. BINH DINH PRINTING AND PACKING JOINT STOCK COMPANY
Address	No 20, Nguyen Van Troi Str., Qui Nhon City, Binh Dinh Province, Vietnam
2. BIOTAN MINERAL JOINT STOCK COMPANY
Address	No 422, Nguyen Thai Hoc Str., Qui Nhon City, Binh Dinh Province, Vietnam
3. FRESENIUS KABI BIDIPHAR JOINT STOCK COMPANY
Address	Nhon Phu ward, Qui Nhon City, Binh Dinh Province, Vietnam

DIRECTORS

1. NAME	Mr. NGUYEN VAN QUA
Position	Chairman and General Director
Date of Birth	02 Feb 1961
ID Number/Passport	210111956
ID Issue Date	14 Aug 1999
ID Issue Place	Binh Dinh Police Station
Resident	No. 45, Dien Hong Str., Qui Nhon City, Binh Dinh Province, Vietnam
Nationality	Vietnamese
Tel/Mobil phone	(84-56) 3846 935
Note:  Formerly, Mr. LE MINH TAN is General Director of the subject. Currently, he is retired.
2. NAME	Mr. NGUYEN THANH GIANG
Position	Vice General Director
Date of Birth	05 Dec 1967
Resident	Qui Nhon City, Binh Dinh Province, Vietnam
Nationality	Vietnamese
Tel/Mobil phone	(84-56) 3847 099
3. NAME	Ms. PHAM THI THANH HUONG
Position	Vice General Director
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in manufacture and trading in pharmaceutical products, material for medical production, medical equipments.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Market	India, Korea, France, United State, and China.
· Mode of payment	L/C, T/T
EXPORT:
· Market	The subject supplies its product to Laos, Myanmar, Cambodia, South Africa, Mongolia, Italy, Canada, Nigeria …
· Mode of payment	T/T, L/C

BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM QUY NHON BRANCH
Address	No 152 Le Loi, Qui Nhon City, Binh Dinh Province, Vietnam
Telephone	(84-56) 3821498
Fax	(84-56) 3823181
SWIFT Code	BFTV VNVX 005/BFTVVBVX 007
2. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE BINH DINH BRANCH
Address	No.257 Le Hong Phong, Qui Nhon City, Binh Dinh Province, Vietnam
Telephone	(84-56) 3823591
3. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM BINH DINH BRANCH
Address	No.72 Le Duan Street, Qui Nhon City, Binh Dinh Province, Vietnam
Telephone	(84-56) 3520067
VND Account	58010000000512
Note:  The correct name of bank is above.

SHAREHOLDERS

1. NAME	PEOPLE’S COMMITTEE OF BINH DINH PROVINCE
Address	No. 1, Tran Phu Str, Qui Nhon City, Binh Dinh Province, Vietnam
Tel	(84-56) 3821804
Fax	(8456) 3822057
Percentage	100%

FINANCIAL DATA

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	386,252,000,000	368,864,760,378	282,235,400,000
I. Cash and cash equivalents	38,723,000,000	19,341,876,395	14,821,000,000
1. Cash	38,723,000,000	19,341,876,395	14,821,000,000
2. Cash equivalents	0	0	0
II. Short-term investments	2,473,000,000	4,758,287,894	2,438,000,000
1. Short-term investments	3,615,000,000	5,825,500,094	2,438,000,000
2. Provisions for devaluation of short-term investments	-1,142,000,000	-1,067,212,200
III. Accounts receivable	247,799,000,000	254,009,341,915	200,122,000,000
1. Receivable from customers	241,056,000,000	249,819,347,026	174,374,000,000
2. Prepayments to suppliers	7,942,000,000	3,525,420,031	2,121,000,000
3. Inter-company receivable	0	0	1,050,000,000
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	3,383,000,000	3,094,527,502	23,830,000,000
6. Provisions for bad debts	-4,582,000,000	-2,429,952,644	-1,253,000,000
IV. Inventories	90,968,000,000	86,811,294,883	55,886,000,000
1. Inventories	90,968,000,000	86,811,294,883	55,886,000,000
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	6,289,000,000	3,943,959,291	8,968,400,000
1. Short-term prepaid expenses	755,000,000	492,763,639	1,269,000,000
2. VAT to be deducted	977,000,000	95,083,061	3,000,000
3. Taxes and other accounts receivable from the State	49,000,000	0	400,000
4. Other current assets	4,508,000,000	3,356,112,591	7,696,000,000
B. LONG-TERM ASSETS	223,383,000,000	128,274,531,872	111,006,000,000
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	78,664,000,000	33,578,308,182	13,105,000,000
1. Tangible assets	47,683,000,000	11,242,515,008	10,010,000,000
- Historical costs	74,339,000,000	34,085,925,003	31,690,000,000
- Accumulated depreciation	-26,656,000,000	-22,843,409,995	-21,680,000,000
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	17,859,000,000	8,983,654,409	3,095,000,000
- Initial costs	18,116,000,000	9,145,643,501	3,246,000,000
- Accumulated amortization	-257,000,000	-161,989,092	-151,000,000
4. Construction-in-progress	13,122,000,000	13,352,138,765	0
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	143,742,000,000	94,433,433,620	97,657,000,000
1. Investments in affiliates	12,148,000,000	17,257,226,923	52,155,000,000
2. Investments in business concerns and joint ventures	126,003,000,000	73,950,800,000	41,498,000,000
3. Other long-term investments	5,674,000,000	3,264,556,000	4,004,000,000
4. Provisions for devaluation of long-term investments	-83,000,000	-39,149,303	0
V. Other long-term assets	977,000,000	262,790,070	244,000,000
1. Long-term prepaid expenses	977,000,000	262,790,070	244,000,000
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	609,635,000,000	497,139,292,250	393,241,400,000
LIABILITIES
A- LIABILITIES	416,857,000,000	319,702,390,649	237,217,000,000
I. Current liabilities	392,121,000,000	319,328,645,739	236,999,000,000
1. Short-term debts and loans	104,560,000,000	102,867,414,169	74,141,000,000
2. Payable to suppliers	219,998,000,000	157,739,345,063	135,361,000,000
3. Advances from customers	8,758,000,000	22,356,350,072	1,011,000,000
4. Taxes and other obligations to the State Budget	6,049,000,000	1,773,717,361	1,844,000,000
5. Payable to employees	39,868,000,000	23,382,772,874	21,953,000,000
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	12,888,000,000	11,209,046,200	2,689,000,000
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	24,736,000,000	373,744,910	218,000,000
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	353,000,000	358,000,000	218,000,000
4. Long-term debts and loans	24,000,000,000	0	0
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	383,000,000	15,744,910	0
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	192,778,000,000	177,436,901,601	156,024,000,000
I. OWNER’S EQUITY	172,462,000,000	169,379,492,455	146,049,000,000
1. Capital	41,246,000,000	41,541,442,748	42,255,000,000
2. Share premiums	0	0	52,331,000,000
3. Other sources of capital	97,899,000,000	84,361,993,785	30,701,000,000
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	1,098,000,000	5,121,934,553	6,120,000,000
6. Foreign exchange differences	2,941,000,000	0	0
7. Business promotion fund	19,071,000,000	12,842,507,717	2,667,000,000
8. Financial reserved fund	9,583,000,000	5,921,450,810	5,577,000,000
9. Other funds	624,000,000	522,000	0
10. Retained earnings	0	19,589,640,842	6,398,000,000
11. Construction investment fund	0	0	0
II. Other sources and funds	20,316,000,000	8,057,409,146	9,975,000,000
1. Bonus and welfare funds	20,316,000,000	8,057,409,146	9,975,000,000
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	609,635,000,000	497,139,292,250	393,241,000,000

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009	FY2008
1. Total Sales	873,584,000,000	891,029,652,157	734,718,000,000
2. Deduction item	24,302,000,000	15,975,865,440	54,413,000,000
3. Net sale	849,282,000,000	875,053,786,717	680,305,000,000
4. Costs of goods sold	686,989,000,000	736,774,801,531	535,534,000,000
5. Gross profit	162,293,000,000	138,278,985,186	144,771,000,000
6. Financial income	9,110,000,000	11,467,250,199	12,310,000,000
7. Financial expenses	23,375,000,000	14,233,456,462	22,975,000,000
- In which: Loan interest expenses	19,618,000,000	7,335,149,348	19,565,000,000
8. Selling expenses	106,163,000,000	99,822,995,122	90,779,000,000
9. Administrative overheads	18,575,000,000	14,588,322,439	24,520,000,000
10. Net operating profit	23,290,000,000	21,101,461,362	18,807,000,000
11. Other income	4,286,000,000	385,314,246	688,000,000
12. Other expenses	35,000,000	1,027,625	292,000,000
13. Other profit /(loss)	4,251,000,000	384,286,621	396,000,000
14. Total accounting profit before tax	27,541,000,000	21,485,747,983	19,203,000,000
15. Current corporate income tax	6,334,000,000	3,545,891,814	3,275,000,000
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	21,207,000,000	17,939,856,169	15,928,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	0.99	1.16	1.19	1.74
Quick liquidity ratio	0.75	0.88	0.96	1.02
Inventory circle	7.55	8.49	6.23	3.74
Average receive period	106.50	105.95	107.37	76.97
Utilizing asset performance	1.39	1.76	1.73	1.31
Liability by total assets	68.38	64.31	60.32	49.32
Liability by owner's equity	216.24	180.18	152.04	129.21
Ebit / Total assets (ROA)	7.74	5.80	9.86	8.55
Ebit / Owner's equity (ROE)	24.46	16.24	24.85	18.02
Ebit / Total sale (NPM)	5.40	3.23	5.28	6.82
Gross profit / Total sale (GPM)	18.58	15.52	19.70	21.89
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Good
Liquidity	Medium
Payment status	Above Average
Financial Situation	Above Average
Development trend	Even
Litigation data	No record
Bankruptcy	No record
Payment Methods	T/T, L/C
Sale Methods	Retailer and Wholesaler
Public opinion	N\A

CREDIT INQUIRY: USD 125,000 Against D/A in term.

Reliable!

INTERPRETATION ON THE SCORES

BIDIPHAR was founded in 1979 with the name PHARMACEUTICAL ENTERPRISE II NGHIA BINH and started to manufacture of pharmaceutical since 1980. To June 1995, BINHDINH PHARMACEUTICAL AND MEDICAL EQUIPMENT COMPANY was established according to Decision No. 922/QD-UB of Binh Dinh People’s Committee. Currently, the subject is operating under the business code No. 4100259564 with registered capital VND 146,866 million.

The premises and facilities of the subject are large. Beside head office in Binh Dinh province, the subject also has 8 branches in the same province and some branches in other provinces and cities of Vietnam. Manufacturing factory of BIDIPHAR has 11 production lines with WHO GMP standard, drug management system GSP standard, laboratory GLP standard, all work on quality management system ISO 9001:2008.

Through more than 30 years of operation and development, the subject has several achievements in the industry such as: "Prestigious pharmaceutical" in Vietnam and International in 2003; "High quality Vietnam Products" in 2004, 2005 and 2006; "Vietnam quality" in 2005; "The first Labor Medal" and "Hero of Labor" by President…

Financially, following the financial data of the subject in recent years, we see that the subject is fairly stable. In 2010, value of total asset increased 22% compared with 2009 from VND 497 billion to VND 609 billion in 2010. Total sale reached VND 873 billion, although it has reduce compared with previous year but profit was higher, it was VND 21 billion, while that one in 2009 was nearly VND 18 billion due to other income is fairly much.

In addition, management capacities of the subject were fairly good. This show by inventory circle, this ratio is always higher than average industry. Raito of utilizing assets performance also was better than average industry proved the subject used asset to made sale was fairly good. However liquidity ratios still were humble due to current liabilities was relatively high.

According to Ms. May - General accountant, in 2011, profit of the subject was about VND 25 billion.

In general, the subject is a large company in the industry, it is stable and development. Its future seems bright and has prospect. With financial situation at present, the subject has capacity to meet small and medium financial commitments.

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)
	2010	2009
Agriculture, Forestry and Fishing	2.78	1.82	8,749		23,896.3	81,559
Industry and Construction	7.70	5.52	85,115		10,630	2,751,975
Trade and Services	7.52	6.63	154,978		14,522	4,939,069
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			72.2	57.1		62.7
Imports			84.8	69.9		80.7
Trade Balance			-12.6	-12.8		-18

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.65
UK Pound	1	Rs.79.09
Euro	1	Rs.65.32

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.