MIRA INFORM REPORT

Report Date :

07.05.2012

IDENTIFICATION DETAILS

Name :	TIPHARCO PHARMACEUTICAL JOINT STOCK COMPANY
Registered Office :	No. 15, Doc Binh Kieu Ward 2, My Tho City, Tien Giang Province
Country :	Vietnam
Financials (as on) :	31.12.2011
Year of Establishment :	1976
Com. Reg. No.:	1200100557
Legal Form :	Joint Stock Company
Line of Business :	Manufacture and trading medical products and pharmaceutical products
No. of Employees :	340

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but Correct
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
Registered English Name	TIPHARCO PHARMACEUTICAL JOINT STOCK COMPANY
Registered Vietnamese Name	CONG TY CO PHAN DUOC PHAM TIPHARCO
Trade name	TIPHARCO
Type of Business	Joint stock company
Year Established	1976
Establishment Decision	4905/QD-UBND
Date of Issuance	22 Jul 2005
Place of Issuance	People Committee of Tien Giang Province
Business Registration No.	1200100557
Date of Registration	06 Aug 2011
Place of Registration	Tien Giang Department of Planning and Investment
Current registered capital	VND 15,000,000,000
Status	Unlisted
Tax code	1200100557
Total Employees	340

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 5303000050 Changed to: 1200100557	06 Aug 2011
2	Subject has got former Board Of Director: Ms. TRAN THI THU PHONG - the former General Director Changed to: Mr. PHAM QUANG BINH - the current General Director	01 Jun 2010
3	Subject has got former Business Registration No: 101228 issued on December 11th, 2000 Changed to: 5303000050	28 Feb 2006
4	Subject has got former Registered English Name: TIEN GIANG PHARMACEUTICAL AND MEDICAL EQUIPMENT COMPANY Changed to: TIPHARCO PHARMACEUTICAL JOINT STOCK COMPANY	01 Feb 2006
5	Subject has got former Registered Vietnamese Name: CONG TY DUOC VA VAT TU Y TE TIEN GIANG Changed to: CONG TY CO PHAN DUOC PHAM TIPHARCO	01 Feb 2006
6	Subject has got former Type of Business: State owned company Changed to: Joint stock company	01 Feb 2006
7	Subject has got former Tax code No: 1200440715 Changed to: 1200100557	N/A

company ADDRESSES

Head Office
Address	No. 15, Doc Binh Kieu Ward 2, My Tho City, Tien Giang Province, Vietnam
Telephone	(84-73) 3871817/ 3872972
Fax	(84-73) 3885040
Email	tipharco@vnn.vn or tipharco@pmail.vnn.vn
Website	http://www.tipharco.com.vn
Branch in Ho Chi Minh
Address	L3 - No. 131/1 To Hien Thanh Street - Ward 15, Ho Chi Minh City, Vietnam
Telephone	(84-8) 38644521

DIRECTORS

1. NAME	Mr. PHAM QUANG BINH
Position	General Director & Chairman
Date of Birth	06 Jun 1954
ID Number/Passport	310663953
ID Issue Date	08 Sep 2006
ID Issue Place	Tien Giang Police Dept
Resident	No. 1/12, Hoc Lac Street Ward 8, My Tho City, Tien Giang Province, Vietnam
Current resident	No. 1/12, Hoc Lac Street Ward 8, My Tho City, Tien Giang Province, Vietnam
Nationality	Vietnamese
2. NAME	Ms. TRAN THI TAM
Position	Deputy General Director
Current resident	No. 15 Doc Binh Kieu Street, Ward 2, My Tho City, Tien Giang Province, Vietnam
Nationality	Vietnamese
3. NAME	Mr. LE VAN CHAU
Position	Deputy General Director and Chief Accountant
Current resident	No.2/6C, Ly Thuong Kiet Street Ward 6, My Tho City, Tien Giang Province, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

- Manufacture and trading medical products and pharmaceutical products.
- Import materials for pharmaceutical production, medical chemistry, packaging and pharmaceutical products.
- Processing, franchise and agent for trading pharmaceutical products.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Material and Complete pharmaceutical products
· Market	China, France, Italy, India, Australia
· Mode of payment	TT, DP, LC
EXPORT:
Note: Currently, the subject does not export.

BANKERS

1. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM TIEN GIANG BRANCH
Address	No.208A Nam Ky Khoi Nghia Street, My Tho City, Tien Giang Province, Vietnam
Telephone	(84-73) 3877559
2. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE TIEN GIANG BRANCH
Address	No.15B Nam Ky Khoi Nghia Street, My Tho City, Tien Giang Province, Vietnam
Telephone	(84-73) 3872429/3872456
Fax	(84-73) 3872429

SHAREHOLDERS

Following is the list of the company’s shareholders updated to 31 Dec 2011.
1. NAME	THE STATE
Value of shares	0
Percentage	0%
2. NAME	PHAM TRUNG NGHIA
Nationality	Vietnamese
Value of shares	VND 3,400,000,000
Percentage	23%
3. NAME	NGUYEN VAN TAM
Nationality	Vietnamese
Value of shares	VND 4,260,000,000
Percentage	28%
4. NAME	HUYNH THI NGUYEN THUY
Nationality	Vietnamese
Value of shares	VND 3,797,330,000
Percentage	25%
5. NAME	OTHER SHAREHOLDERS
Value of shares	VND 3,542,670,000
Percentage	24%

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
Status	Audited	Audited	Audited
ASSETS
A – CURRENT ASSETS	70,502,882,439	62,773,320,730	56,885,669,495
I. Cash and cash equivalents	10,955,616,843	6,450,130,165	5,994,750,008
1. Cash	10,955,616,843	2,450,130,165	5,994,750,008
2. Cash equivalents	0	4,000,000,000	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	22,633,610,208	23,001,494,501	13,640,398,974
1. Receivable from customers	22,229,039,207	20,411,003,643	12,439,485,184
2. Prepayments to suppliers	694,421,000	2,678,172,790	1,208,008,738
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	0	14,754,392	27,861,052
6. Provisions for bad debts	-289,849,999	-102,436,324	-34,956,000
IV. Inventories	36,656,061,371	33,233,074,938	36,987,467,522
1. Inventories	36,656,061,371	33,233,074,938	36,987,467,522
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	257,594,017	88,621,126	263,052,991
1. Short-term prepaid expenses	55,000,000	20,378,489	32,857,876
2. VAT to be deducted	106,362,263	0	102,545,718
3. Taxes and other accounts receivable from the State	27,989,117	0	0
4. Other current assets	68,242,637	68,242,637	127,649,397
B. LONG-TERM ASSETS	26,774,724,312	28,432,474,796	30,975,243,703
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	26,757,547,007	28,432,474,796	30,955,243,703
1. Tangible assets	26,107,356,078	27,753,654,703	30,247,794,446
- Historical costs	51,419,335,336	50,174,106,518	49,638,586,024
- Accumulated depreciation	-25,311,979,258	-22,420,451,815	-19,390,791,578
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	650,190,929	678,820,093	707,449,257
- Initial costs	807,729,733	807,729,733	807,729,733
- Accumulated amortization	-157,538,804	-128,909,640	-100,280,476
4. Construction-in-progress	0	0	0
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	0	0	20,000,000
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	20,000,000
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	17,177,305	0	0
1. Long-term prepaid expenses	17,177,305	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	97,277,606,751	91,205,795,526	87,860,913,198
LIABILITIES
A- LIABILITIES	69,891,344,239	66,258,870,475	66,080,610,827
I. Current liabilities	66,182,364,819	61,190,917,446	59,552,577,680
1. Short-term debts and loans	32,671,335,189	28,965,056,137	26,492,498,882
2. Payable to suppliers	24,941,598,942	26,278,275,956	25,942,627,685
3. Advances from customers	3,892,329,735	2,884,875,529	6,196,286,047
4. Taxes and other obligations to the State Budget	738,148,450	436,583,350	642,198,495
5. Payable to employees	3,615,147,784	2,260,508,558	0
6. Accrued expenses	0	0	0
7. Inter-company payable	0	24,476,428	0
8. Payable according to the progress of construction contracts	0	341,141,488	0
9. Other payable	323,804,719	0	278,966,571
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	3,708,979,420	5,067,953,029	6,528,033,147
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	3,708,979,420	5,067,953,029	6,451,831,467
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	0	0	76,201,680
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	27,386,262,512	24,946,925,051	21,780,302,371
I. OWNER’S EQUITY	27,325,779,178	24,946,925,051	21,298,754,864
1. Capital	15,000,000,000	15,000,000,000	15,000,000,000
2. Share premiums	0	0	0
3. Other sources of capital	0	0	0
4. Treasury stocks	0	-720,000,000	-720,000,000
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	-248,235,682	0	0
7. Business promotion fund	6,320,713,376	5,049,044,813	3,691,300,551
8. Financial reserved fund	1,883,391,415	1,490,188,513	1,139,537,463
9. Other funds	0		0
10. Retained earnings	4,369,910,069	4,127,691,725	2,187,916,850
11. Construction investment fund	0	0	0
II. Other sources and funds	60,483,334	0	481,547,507
1. Bonus and welfare funds	60,483,334	0	481,547,507
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	97,277,606,751	91,205,795,526	87,860,913,198

PROFIT & LOSS STATEMENT
Description	FY2011	FY2010	FY2009
1. Total Sales	214,140,275,388	205,384,615,374	192,678,242,599
2. Deduction item	1,341,005,658	728,387,474	364,603,931
3. Net sale	212,799,269,730	204,656,227,900	192,313,638,668
4. Costs of goods sold	182,841,513,002	178,707,528,058	168,950,882,389
5. Gross profit	29,957,756,728	25,948,699,842	23,362,756,279
6. Financial income	94,867,216	132,937,615	33,094,767
7. Financial expenses	4,782,375,337	4,819,856,472	3,676,554,038
- In which: Loan interest expenses	4,686,113,606	4,227,822,899	2,478,844,576
8. Selling expenses	10,953,576,466	13,544,376,616	12,863,741,930
9. Administrative overheads	9,881,909,391	3,463,154,090	2,498,805,852
10. Net operating profit	4,434,762,750	4,254,250,279	4,356,749,226
11. Other income	916,712,954	715,036,526	332,598,103
12. Other expenses	177,014,976	0	0
13. Other profit /(loss)	739,697,978	715,036,526	332,598,103
14. Total accounting profit before tax	5,174,460,728	4,969,286,805	4,689,347,329
15. Current corporate income tax	450,579,730	518,610,988	413,992,891
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	4,723,880,998	4,450,675,817	4,275,354,438

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	1.07	1.03	0.96	1.65
Quick liquidity ratio	0.51	0.48	0.33	1.04
Inventory circle	4.99	5.09	4.48	4.14
Average receive period	38.82	41.02	25.89	105.37
Utilizing asset performance	2.19	2.24	2.19	1.20
Liability by total assets	71.85	72.65	75.21	53.11
Liability by owner's equity	255.21	265.60	303.40	159.74
Ebit / Total assets (ROA)	10.14	10.08	8.16	10.37
Ebit / Owner's equity (ROE)	36.01	36.87	32.91	23.03
Ebit / Total sale (NPM)	4.60	4.48	3.72	10.15
Gross profit / Total sale (GPM)	13.99	12.63	12.13	25.88
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CASH FLOW STATEMENT
(Direct method)
Items	FY2011	FY2010	FY2009
I. Cash flows from operating activities
1.Cash received from customers	152,926,353,662	149,743,103,748	151,801,052,999
2. Cash paid to suppliers	-130,610,177,355	-134,907,239,144	-137,303,228,076
3. Cash paid to employees	-8,870,041,759	-9,047,685,847	-9,175,337,986
4. Interest paid	-4,645,224,237	-4,227,822,899	-2,478,844,576
5. Income taxes paid	-141,875,000	-710,073,410	-331,963,457
6. Other operating cash receipts	2,682,603,354	57,406,700	1,341,974,349
7. Other operating payments	-6,255,093,353	-484,821,079	-930,663,333
Net cash flows from operating activities	5,086,545,312	422,868,069	2,922,989,920
II. Cash flows from investing activities
1. Purchases and construction of fixed assets and other long-term assets	-1,320,052,609	-535,520,494	-7,433,630,509
2. Gains from disposals and liquidation of fixed assets and other long-term assets	101,974,636	0	0
3. Loans given and purchases of debt instruments of other entities	0	0	0
4. Recovery of loans given and disposals of debt instruments of other entities	0	20,000,000	0
5. Investments into other entities	0	0	0
6. Withdrawals of investments in other entities	0	0	0
7. Receipts of loan interests, dividends and profit shared	81,000,776	132,937,615	33,094,767
Net cash flows from investing activities	-1,137,077,197	-382,582,879	-7,400,535,742
III. Cash flows from financing activities
1. Gains from stock issuance and capital contributions from shareholders	720,000,000	0	0
2. Repayment for capital contributions and re-purchases of stocks already issues	0	0	0
3. Short-term and long-term loans received	70,309,663,760	61,931,495,802	91,421,353,334
4. Loan principal amounts repaid	-68,182,858,317	-60,842,816,985	-83,497,295,007
5. Payments for financial leasehold assets	0	0	0
6. Dividends and profit already paid to the owners	-2,193,097,850	-673,583,850	-1,258,670,000
Net cash flows from financing activities	653,707,593	415,094,967	6,665,388,327
Net cash flows during the year	4,603,175,708	455,380,157	2,187,842,505
Beginning cash and cash equivalents	6,450,130,165	5,994,750,008	3,806,907,503
Effects of fluctuations in foreign exchange rates	-97,689,030	0	0
Ending cash and cash equivalents	10,955,616,843	6,450,130,165	5,994,750,008

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Good
Liquidity	Medium
Payment status	Average
Financial Situation	Above Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	TT, L/C, DP
Sale Methods	Retailer and Wholesaler
Public opinion	Excellent

CREDIT INQUIRY: USD 125,000 against DA in terms

Acceptable!

INTERPRETATION ON THE SCORES

The subject was originally established in 1976 as a state owned company. In 2006, the subject was capitalized and its name also changed to Tipharco Pharmaceutical Joint Stock Company. Currently, the subject is operating under the business registration No. 1200100557 issued by Tien Giang Department of Planning and Investment. It has registered capital of VND 15 billion.

The company is specialized in manufacturing, trading, importing medicine, cosmetic, hygienic products, nutritive products, other pharmaceutical products, health service equipments and material.

Its head office and factory are located at No. 15, Doc Binh Kieu Street, Ward 2, My Tho City, Tien Giang Province. Currently, it produces more than 140 types of drugs and trading more than 4,500 types of drugs. The subject also built the agent system in Tien Giang Province and Mekong Delta area. Its products are consumed in many provinces, both in the North and the South of Viet Nam.

The company’s financial situation seems fairly good and stable. In 2011, the value of the company’s total assets was VND 97.3 billion. According to the balance sheet, current assets always took higher rate in the company’s total assets and account receivable and inventories were two items has highest proportion in current assets. According to the financial ratio table, the company’s operational ratios are fairly good. Inventory circle was above average industry and average receivable period was shorter than average industry. The company managed inventories and account receivable quite effectively. According to the financial ratio table, the company’s liability by total assets was still bigger than average industry. But it had down compared to previous year. The subject has tended to reduce the reliance on external financial resources. However, this process still happened with low speed. The profitability of the subject is average. In 2011, the subject attained VND 214 billion of total sales and it made a profit of VND 4.7 billion; higher than previous year.

In general, the subject is a medium sized company in the industry. The production activities and trading activities of the subject are busy. It is reliable for all small 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)
	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.53.72
UK Pound	1	Rs.86.98
Euro	1	Rs.70.65

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%)

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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.