MIRA INFORM REPORT

Report Date :

08.10.2012

IDENTIFICATION DETAILS

Name :	PHARMACEUTICAL AND VETERINARY JOINT STOCK COMPANY
Formerly Known As :	PHARMACEUTICAL AND VETERINARY ENTERPRISE
Registered Office :	No. 88, Truong Chinh Street, Dong Da District, Hanoi City, Vietnam
Country :	Vietnam
Financials (as on) :	2002
Date of Incorporation :	01.10.1988
Com. Reg. No.:	No. 055931
Legal Form :	Joint Stock Company
Line of Business :	· Distributors of a wide range of veterinary products and animal nutrition, feed additives and raw materials supplying to animal feed industry. · Manufacturing many kinds of veterinary products; trading and processing agriculture, seafood’s. Trading in chemical materials for aquatic products.
No. of Employees :	300 employees

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
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	B1	B1

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
Subject’ English Name				:			PHARMACEUTICAL AND VETERINARY JOINT STOCK COMPANY
Vietnamese name				:			CONG TY CO PHAN DUOC VA VAT TU THU Y
Former name				:			PHARMACEUTICAL AND VETERINARY ENTERPRISE
Trade Name				:			HANVET
Founded				:			October 1^st 1988
Current type of business				:			Joint Stock Company
Former type of business				:			State Owned Company
Equitized				:			1999
Equitization Decision				:			No. 50/1999/QD/BNN-TCCB
Issued on				:			March 18^th 1999
Issued by				:			Ministry of Agriculture and Rural Development
Business registration				:			No. 055931
Date of registration				:			April 19^th, 1999
Place of registration				:			Hanoi Department of Planning & Investment
Registered Capital				:			12,018,000,000 VND
Total Employees				:			300 (Staffs & Workers)
Qualification				:			Qualified
Note: The subject last changed business registration on March 18^th 2005.
ADDRESSES
Head office
Address		:			No.88 Truong Chinh Street, Dong Da District, Hanoi city
Country		:			Vietnam
Tel		:			(84-4) 8685996
Fax		:			(84-4) 8691263 / 8690097
Email		:			hanvet@fpt.vn
Branch in Hochiminh City
Address		:			No. 3, Rach Sau Str, Binh Thanh Ward, Dist No.12.
Province/City		:			Hochiminh City
Country		:			Vietnam
Tel		:			(84-8) 8919947
Fax		:			(89-8) 8919947
The Subject has shares at Ha Linh Joint Stock Company
Add		:			Thuong Le Small Village, Dai Thinh Village, Me Linh Dist., Vinh Phuc Province, Vietnam
Tel		:			(84-211)878561
Fax		:			(84-211)878561
Besides, the Subject has medicinal rooms at No. 454 Hoang Hoa Tham Str., and 102 Truong Trinh Str., Hanoi City, Vietnam.
DIRECTORS
1. NAME		:			MRS. NGUYEN HUU VU
Position		:			General Director & Chairman of Shareholders
Qualification		:			Management
Born		:			May 14th, 1946
ID No.		:			011712640
Issued on		:			August 8^th, 1999
Resident		:			No. 231 Bach Mai Street, Hai Ba Trung District-Hanoi City
Nationality		:			Vietnamese
2. NAME		:			MR. NGUYEN DUC LUU
Position		:			Deputy general director
Qualification		:			Management
Born		:			March 7th, 1950
ID No.		:			010040869
Issued		:			August 20^th, 1991
Resident		:			Room 308, A2 Building-H10, Phuong Mai Ward, Dong Da District Hanoi City-Vietnam
Nationality		:			Vietnamese
BUSINESS NATURE AND ACTIVITIES
§ THE SUBJECT ACTS AS A DISTRIBUTOR IN VIETNAM OF A WIDE RANGE OF VETERINARY PRODUCTS AND ANIMAL NUTRITION, FEED ADDITIVES AND RAW MATERIALS SUPPLYING TO ANIMAL FEED INDUSTRY, REPRESENTING AS EXCLUSIVE DISTRUBUTOR IN VIETNAM FOR MANY WORLD MANUFACTURERS.
§ THE SUBJECT ALSO REGISTERED FOLLOWING FUNCTIONS: MANUFACTURING MANY KINDS OF VETERINARY PRODUCTS; TRADING & PROCESSING ARICULTURE, SEA FOODS. TRADING IN CHEMICAL METERIALS FOR AQUATIC PRODUCTS.
At present, the subject has more than 150 items such as Han-Prost, Hanoxylin L.A., Hamolin L.A., Hantox, Handertil-B, Hanmectin, Gona-estrol, Anti-Gumboro, Hancipro-50, Han-lopatol...
CERTIFICATE COMPANY
· ISO 9001:2000 has been approved by JAS-ANZ international quality organization.
· “Gold rice award” in 2003.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports materials from China (60% material form China), Germany, Holland, Switzerland, Italy,…
EXPORT: N/A
BANKERS
1. VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Address			:					No.2 Lang Ha Street, Ba Dinh District, Hanoi city
Tel			:					(84-4) 8313729
Fax			:					(84-4) 8313850
Telex			:					411-322 VBAVT
Swift			:					VBAAVNVX
SHAREHOLDER(S)
The Subject is a joint-stock company. The following are its main shareholders:
1. NAME		:			MRS. NGUYEN HUU VU
Position		:			Chairman of Shareholders
Qualification		:			Management
Born		:			May 14th, 1946
ID No.		:			011712640
Issued on		:			August 8^th, 1999
Resident		:			No. 231 Bach Mai Street, Hai Ba Trung District-Hanoi City
Nationality		:			Vietnamese
Shares		:			11,940 shares
Values		:			1,194,000,000 VND
2. NAME	:					MR. HOANG VAN TIEN
Position	:					Shareholder
Born	:					May 8th, 1958
ID No.	:					010610186
Resident	:					Room 5, A2 Building-H10, Phuong Mai Ward, Dong Da District-Hanoi City
Nationality	:					Vietnamese
Shares	:					7,203 Shares
Valued	:					720,300,000 VND
3. NAME	:					MR. NGUYEN HUU THOI
Position	:					Shareholder
Born	:					September 19th, 1946
ID No.	:					010512160
Resident	:					Room 25A, B Building, Kim Ma Street-Hanoi City
Nationality	:					Vietnamese
Shares	:					3,045 Shares
Valued	:					304,500,000 VND
4.NAME	:					MR. NGUYEN DUC LUU
Position	:					Deputy
Qualification	:					Management
Born	:					March 7th, 1950
ID No.	:					010040869
Issued	:					August 20^th, 1991
Resident	:					Room 308, A2 Building-H10, Phuong Mai Ward, Dong Dai District Hanoi City-Vietnam
Nationality	:					Vietnamese
Shares	:					6,450 shares
Values	:					645,000,000 VND
5. NAME	:					MR. NGUYEN THI LIEN
Position	:					Shareholder
Born	:					October 28th, 1956
ID No.	:					012243701
Resident	:					A13/3- No. 198 Tay Son Street, Dong Da District–Hanoi City
Nationality	:					Vietnamese
Shares	:					2,100 Shares
Valued	:					210,000,000 VND
206 other shareholders owned 89,442 shares (Values : 8,944,200,000 VND)
PAYMENT HISTORY AND EXPERIENCES
Trade Morality			:				GOOD
Liquidity			:				NORMAL
Previous Payments			:				GOOD
Current Payment			:				FAIRLY GOOD
Past Financial Situation			:				PROMPT
Current Financial Situation			:				DEVELOPED
Financial Situation			:				GOOD
Litigation Data			:				NO RECORD
Bankruptcy			:				NO RECORD
FINANCIAL DATA
BALANCE SHEET
Description									FY 2002		FY 2001
A. Current assets & Short term Investment:									24,814		17,152
I. Cash and cash equivalents									1,190		1,257
II. Short term investment									0		0
1. Short-term securities investment									0		0
2. Other short-term investment									0		0
3. Provision for discount on value of short-term investment									0		0
III. Receivables									13,228		7,832
1. Receivables from customers									11,587		6,066
2. Prepaid for providers									0		0
3. Value-added tax deducted									0		0
4. Internal receivables									0		0
5. Other receivables									1,846		1,766
6. Provision for bad receivables									-205		0
IV. Inventory									10,396		8,063
1. Purchased goods in transit									0		0
2. Inventory raw materials									4,706		3,130
3. Inventory appliance									0		0
4. Cost for production and business in process									0		0
5. Inventory finished products									5,690		4,910
6. Inventory cargoes									0		23
7. Entrusted goods for sale									0		0
8. Provision for devaluation of stocks									0		0
V. Other current assets									0		0
1. Advances									0		0
2. Prepaid expenses									0		0
3. Pending expenses for transfer									0		0
4. Pending assets									0		0
5. Hypothecation, collateral and short run collateral									0		0
VI. Administrative									0		0
1. Administrative expenses for previous year									0		0
2. Administrative expenses for current year									0		0
B. Fixed assets & Long term investment:									8,106		5,315
I. Fixed assets									5,492		4,701
1. Tangible fix assets									5,492		4,701
+ Original cost									9,069		7,206
+ Accumulated depreciation value									-3,577		-2,505
2. Financial leasing fixed assets									0		0
+ Original cost									0		0
+ Accumulated depreciation value									0		0
3. Intangible fix assets									0		0
+ Original cost									0		0
+ Accumulated depreciation value									0		0
II. Long term investment									2,614		614
1. Long-term securities investment									614		614
2. Joint-venture capital contribution									2,000		0
3. Other long-term investment									0		0
4. Provision for long-term investment devaluation									0		0
III. Construction in progress									0		0
IV. Other									0		0
TOTAL ASSETS:									32,920		22,467
LIABILITIES
A. Payables:									13,444		19,476
B. Owner’s Equity:									9,023		13,444
I. Capital and Funds									7,954		11,438
1. Working capital									5,494		6,267
2. Differences from assets revaluation									0		0
3. Exchange rate differences									0		0
4. Business development fund									1,888		4,519
5. Reserved fund									380		400
6. Retained profit									192		252
7. Construction capital sources									0		0
II. Other administrative and fund sources									1,069		2,006
1. Provident funds for unemployment									251		483
2. Welfare and reward funds									818		1,523
3. Management funds of higher level									0		0
4. Functional operation funds									0		0
5. Fund sources formed by fixed assets									0		0
TOTAL LIABILITY AND EQUITY:									22,467		32,920
PROFIT & LOSE ACCOUNTS
Description										FY 2003
Total revenue										57,696
Deductions Items										0
- Discount										0
- Devaluation of sale price										0
- Return of sold goods										0
- Turnover tax, excise tax, import and export duties to be paid										0
1. Net revenue										57,696
2. Cost of goods sold										45,511
3. Combined Profit										12,185
4. Sales costs										1,834
5. Enterprise administrative costs										4,283
6. Net income from business operation										6,068
Income from financial activities										113
Costs for financial activities										0
7. Net income from financial operation										113
Irregular income										38
Irregular expenditure										0
8. Irregular Profit										38
9. Total pre-tax profit										6,219
10. Income tax										1,545
11. After tax profit										4,674

FINANCIAL FACTORS
Description	FY 2002	FY 2001
Current Liquidity Ratio	1.27	1.45
Quick Liquidity Ratio	0.74	0.77
Inventory Circle	5.55	N/A
Average Receivable Period (days)	83.68	-
Utilizing Asset performance	1.75	-
Liabilities / Total Assets (%)	59.16%	59.84%
Liabilities / Owner’s Equity (%)	144.87%	149.00%
Income before tax/Total revenues (%)	10.78%	N/A
Income before tax/Total assets (%)	18.89%	-
Income before tax / Owner’s Equity (%)	46.26%	-
INTERPRETATION
THE SUBJECT IS A JOINT STOCK COMPANY. ITS FORMER NAME WAS PHARMACEUTICAL AND VETERINARY MATERIAL ENTERPRISE. IT WAS RE-STRUCTURED AND RENAMED TO PHARMACEUTICAL AND VETERINARY MATERIAL JOINT STOCK COMPANY UNDER THE DECISION NO. 50/1999/QD/BNN-TCCB ON MARCH 18^TH 1999 BY MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT. ACCORDING TO THAT EQUITIZATION DECISION, THE LEGAL CAPITAL OF THE SUBJECT IS 4 BILLION VND, THE STATE HELD 25%, BUT IN 2000, THE SUBJECT WAS COMPLETELY EQUITIZED (IT BOUGHT ALL THE STATE SHARES). THE LEGAL CAPITAL HAS MORE THAN 12 BILLION VND AT THE TIME. UP TO NOW, THE SUBJECT HAS HAD OVER 500 DISTRIBUTION AGENTS ALL OVER THE COUNTRY. THIS YEAR, ANOTHER FACTORY OF THE SUBJECT WILL GO INTO OPERATION IN HUNG YEN PROVINCE.
THE SUBJECT’S PREMISES IS QUITE STANDARD, MANAGEMENT CAPABILITY SEEMS TO BE GOOD. ITS REVENUE IS GRADUALLY INCREASING. THE PAYMENT CAPABILITY IS PROMPT. THE LIABILITIES IS MORE AND MORE REDUCED WITH POSITIVE SIGNS. THE PROFITS INDEXES IS GOOD. THE BUSINESS ACTIVITIES OF THE SUBJECT HAS DEVELOPED IN RECENT YEARS. THE CURRENT POSITION IN THE ECONOMY IS FAIRLY GOOD AND THE PROSPECT OF DEVELOPMENT WILL BE BETTER IN NEAR FUTURE.
THE OVERALL OPERATION OF THE SUBJECT IS CONSIDERED FAIRLY GOOD. THE COMPANY HAS ADEQUATE CAPACITY TO MEET FINANCIAL COMMITMENTS. AND NO CAUTION NEEDED FOR NORMAL TRANSACTIONS.
CREDIT INQUIRY 150,000 USD TERMS: D/A.
No caution needed for this transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.62
UK Pound	1	Rs.83.57
Euro	1	Rs.67.17

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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