MIRA INFORM REPORT

Report Date :

22.09.2012

IDENTIFICATION DETAILS

Name :	SANOFI - SYNTHELABO VIETNAM PHARMACEUTICAL SHAREHOLDING COMPANY
Registered Office :	No. 10 Ham Nghi Street, Ben Nghe Ward, District 1, Ho Chi Minh City
Country :	Vietnam
Financials (as on) :	31.12.2011
Year of Establishment :	1993
Legal Form :	Joint Stock Company
Line of Business :	The subject specializes in producing and trading pharmaceutical products.
No. of Employees :	315

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 :	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 – 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

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
English Name	SANOFI - SYNTHELABO VIETNAM PHARMACEUTICAL SHAREHOLDING COMPANY
Vietnamese Name	CONG TY CO PHAN DUOC PHAM SANOFI - SYNTHELABO VIET NAM
Short name	SANOFI-SYNTHELABO VIETNAM
Type of Business	Joint stock company
Year Established	1993
Investment Certificate No	411032000012
Date Of Issuance	16 Oct 2007
Place of Issuance	People's Committee of Hochiminh City
Registered Investment Capital	USD 9,082,644 (equivalent VND 110,947,766,211)
Chartered capital	USD 6,341,718 (equivalent VND 77,467,000,000)
Status	Unlisted
Duration	30 years (since 28 Jan 1993)
Tax code	0300815204
Total Employees	315

Historical Identification & Legal form

The Former Legal of Subject
English name		SANOFI-SYNTHELABO VIETNAM PHARMACEUTICAL JOINT VENTURE COMPANY
Former registered Vietnamese name		CONG TY LIEN DOANH DUOC PHAM SANOFI-SYNTHELABO VIETNAM
Former registered trade name		SANOFI-SYNTHELABO VIETNAM
Former type of business		Joint venture company
Former Investment License		No. 519/GP
Issuance on		January 28^th 1993
Issuance by		Ministry of Planning and Investment
Former total investment capital		USD 9,082,614
Former registered capital		USD 6,341,604
ADDRESSES
Head Office
Address	No. 10 Ham Nghi Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3829 8526
Fax	(84-8) 3914 4801
Website	www.sanofi-aventis.com.vn
Factory Address
Address	15/6C Dang Van Bi Street - Truong Tho Ward, Thu Duc District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3896 6905
Fax	(84-8) 3896 1196
Workshop Address
Address	Lot III-21 Plot III Tan Binh Industrial Park - Road 19/5A - Tay Thanh Ward, Tan Phu District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3816 4790
Branch in Ha Noi
Address	G1 Logitem, 104 Thai Thinh Street, Dong Da District, Ha Noi City, Vietnam
Telephone	(84-4) 3537 1834
Fax	(84-4) 3537 1841

DIRECTORS
1. NAME	Mr. CHRISTOPHE HIRTZ, MARIE, PIERRE, PAUL
Position	Legal Representative
Date of Birth	03 Dec 1965
ID Number/Passport	07CI93292
ID Issue Date	19 Nov 2007
ID Issue Place	France Embassy in SIngapore
Resident	19 A Holland Rise, Singapore 278710, Singapore
Nationality	French
2. NAME	Mr. PHILIP LEROY
Position	General Director
Resident	Ho Chi Minh City, Vietnam
Nationality	French
3. NAME	Mr. VO BAO QUOC
Position	Chief Accountant
Current resident	Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	(84-8) 3829 8526. Ext. 311
Email	baoquoc.vo@sanofi-aventis.com
Qualification	Bachelor

BUSINESS NATURE AND ACTIVITIES

The subject specializes in producing and trading pharmaceutical products.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Market	France and some other markets: Germany, Italy, Spain, Netherlands, Switzerland, Sweden, USA, Japan, Korea, and China.
EXPORT:
· Market	Hong Kong, Singapore and Cambodia

BANKERS
1. CITI BANK – VIETNAM - HO CHI MINH CITY BRANCH
Address	Sun wah Building, No. 115 Nguyen Hue Street, Ben Nghe Ward,, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 38242 118
Fax	(84-8) 38242 267
2. NATEXIS BANK
Address	No.11 Me Linh Square, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3822 2830
Fax	(84-8) 3829 9128
3. HSBC VIETNAM LTD
Address	6 Floor, No. 235 Dong Khoi Str., Ben Nghe ward, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3829 2288
4. JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM HO CHI MINH BRANCH
Address	No. 29 Ben Chuong Duong Str-Nguyen Thai Binh Ward, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3825 1317
Fax	(84-8) 3829 7228

SHAREHOLDERS
1. NAME	S.P.I VIETNAM COMPANY LIMITED
Business Registration	011043000060
Address	Floor 3 - DETECH Building - no. 15 Pham Hung street - My Dinh Commune, Tu Liem District, Ha Noi City, Vietnam
Tel	84-4 768 8587, 768 8589
Value of shares	VND 54,226,200,000
Percentage	69.9991%
Note: S.P.I Vietnam is a subsidiary of SANOFI-AVENTIS GROUP.
2. NAME	PHARBACO CENTRAL PHARMACEUTICAL JOINT STOCK COMPANY NO1
Business Registration	0103018671
Date of Registration	25 Jul 2007
Place of Registration	Hanoi Department of Planning and Investment
Registered Capital	VND 49,000,000,000
Tax code	0100109032
Address	No. 160 Ton Duc Thang Str. Hang Bot Ward, Dong Da District, Ha Noi City, Vietnam
Tel	(84-4) 37322098/ 38437246
Fax	(84-4) 38237460
Email	pharbaco@pharbaco.com.vn
Website	www.pharbaco.com.vn
Value of shares	VND 1,000,000
Percentage	0.0013%
3. NAME	VIETNAM PHARMACEUTICAL CORPORATION
Business Registration	111335
Address	No. 138B Giang Vo Street, Ba Dinh District, Ha Noi City, Vietnam
Tel	(84-4) 38443151
Fax	(84-4) 38443665
Website	www.vinapharm.net.vn
Value of shares	VND 23,239,800,000
Percentage	29.9996%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010
Number of weeks	52	52
Audit status	Audited	Audited
ASSETS
A – CURRENT ASSETS	539,582,317,968	517,240,663,788
I. Cash and cash equivalents	152,693,967,261	171,084,713,667
1. Cash	114,693,967,261	65,084,713,667
2. Cash equivalents	38,000,000,000	106,000,000,000
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	283,862,425,155	195,864,329,355
1. Receivable from customers	266,755,771,161	185,198,244,384
2. Prepayments to suppliers	4,868,656,555	6,549,929,793
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	12,237,997,439	4,116,155,178
6. Provisions for bad debts	0	0
IV. Inventories	100,581,700,066	146,910,061,817
1. Inventories	101,710,226,891	147,254,948,738
2. Provisions for devaluation of inventories	-1,128,526,825	-344,886,921
V. Other Current Assets	2,444,225,486	3,381,558,949
1. Short-term prepaid expenses	1,030,809,275	2,088,973,766
2. VAT to be deducted	0	0
3. Taxes and other accounts receivable from the State	222,280,296	224,997,701
4. Other current assets	1,191,135,915	1,067,587,482
B. LONG-TERM ASSETS	76,775,421,250	69,549,608,455
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	71,554,573,949	64,948,845,277
1. Tangible assets	67,096,029,501	64,187,798,130
- Historical costs	191,821,995,094	182,305,255,262
- Accumulated depreciation	-124,725,965,593	-118,117,457,132
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	2,609,871,648	29,305,182
- Initial costs	6,720,820,900	3,706,915,077
- Accumulated amortization	-4,110,949,252	-3,677,609,895
4. Construction-in-progress	1,848,672,800	731,741,965
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	0	0
1. Investments in affiliates	0	0
2. Investments in business concerns and joint ventures	0	0
3. Other long-term investments	0	0
4. Provisions for devaluation of long-term investments	0	0
V. Other long-term assets	5,220,847,301	4,600,763,178
1. Long-term prepaid expenses	824,877,700	1,360,759,262
2. Deferred income tax assets	4,395,969,601	3,240,003,916
3. Other long-term assets	0	0
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	616,357,739,218	586,790,272,243
LIABILITIES
A- LIABILITIES	120,019,828,736	140,602,500,686
I. Current liabilities	118,691,139,482	139,761,804,800
1. Short-term debts and loans	0	0
2. Payable to suppliers	73,510,240,387	108,349,964,632
3. Advances from customers	0	0
4. Taxes and other obligations to the State Budget	16,026,284,131	12,116,212,867
5. Payable to employees	147,127,107	112,120,863
6. Accrued expenses	22,935,608,207	17,913,899,423
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	6,071,879,650	1,269,607,015
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	1,328,689,254	840,695,886
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	0	0
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	1,328,689,254	840,695,886
7. Provisions for long-term accounts payable	0	0
8. Unearned Revenue	0	0
9. Science and technology development fund	0	0
B- OWNER’S EQUITY	496,337,910,482	446,187,771,557
I. OWNER’S EQUITY	496,337,910,482	446,187,771,557
1. Capital	77,467,000,000	77,467,000,000
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	0	0
7. Business promotion fund	50,000,000,000	50,000,000,000
8. Financial reserved fund	30,929,918,533	24,230,854,105
9. Other funds	0	0
10. Retained earnings	337,940,991,949	294,489,917,452
11. Construction investment fund	0	0
12. Business arrangement supporting fund	0	0
II. Other sources and funds	0	0
1. Bonus and welfare funds (Elder form)	0	0
2. Sources of expenditure	0	0
3. Fund to form fixed assets	0	0
MINORITY’S INTEREST	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	616,357,739,218	586,790,272,243

PROFIT & LOSS STATEMENT
Description	FY2011	FY2010
1. Total Sales	1,077,314,959,400	915,062,045,073
2. Deduction item	5,788,510,577	3,381,215,514
3. Net revenue	1,071,526,448,823	911,680,829,559
4. Costs of goods sold	695,308,898,698	588,362,261,833
5. Gross profit	376,217,550,125	323,318,567,726
6. Financial income	20,253,417,887	16,237,581,900
7. Financial expenses	5,573,821,882	9,034,072,087
- In which: Loan interest expenses
8. Selling expenses	154,267,957,804	132,360,759,360
9. Administrative overheads	33,285,628,469	21,686,229,542
10. Net operating profit	203,343,559,857	176,475,088,637
11. Other income	1,609,405,629	1,090,350,304
12. Other expenses	1,875,969,536	1,627,769,270
13. Other profit /(loss)	-266,563,907	-537,418,966
14. Total accounting profit before tax	203,076,995,950	175,937,669,671
15. Current corporate income tax	54,082,822,710	42,397,737,912
16. Deferred corporate income tax	-1,155,965,685	-441,356,809
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	150,150,138,925	133,981,288,568

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	FY2010	Average Industry
Current liquidity ratio	4.55	3.70	1.65
Quick liquidity ratio	3.70	2.65	1.04
Inventory circle	5.62	4.00	4.14
Average receive period	96.69	78.42	105.37
Utilizing asset performance	1.74	1.55	1.20
Liability by total assets	19.47	23.96	53.11
Liability by owner's equity	24.18	31.51	159.74
Ebit / Total assets (ROA)	32.95	29.98	10.37
Ebit / Owner's equity (ROE)	40.92	39.43	23.03
Ebit / Total revenue (NPM)	18.85	19.23	10.15
Gross profit / Total revenue (GPM)	34.92	35.33	25.88
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Good
Liquidity	High
Payment status	Above Average
Financial Situation	Above Average
Development trend	Even
Litigation data	No
Bankruptcy	No
Payment Methods	Through its corresponding bank
Sale Methods	Retailer and Wholesaler

INTERPRETATION ON THE SCORES

The subject was found in Vietnam since 1993 as a joint venture company with name “SANOFI-SYNTHELABO VIETNAM PHARMACEUTICAL JOINT VENTURE COMPANY”. In Oct 2007, the subject got new Investment Certificate No. 411032000012 issued by People's Committee of Hochiminh City and changed its type of business, became to joint stock company. Currently, the subject is operating under name “SANOFI - SYNTHELABO VIETNAM PHARMACEUTICAL SHAREHOLDING COMPANY” with total investment capital of USD 9,082,644.

The subject is as a subsiadiary of Sanofi-Aventis Group (Sanofi-Aventis Group has headquarters at Paris, France. Currently, the presence of Sanofi-Aventis Group in Vietnam includes the subject and Sanofi - Aventis Vietnam Co., Ltd). The subject specializes in producing and trading pharmaceutical products. Its pharmaceutical products are very popular in Vietnam market. Besides, its products also are exported to Hong Kong, Singapore, Cambodia, and Laos.

Operated for a long time and having many strong supports from the group so market share of the subject is large. The competitiveness of the subject is strong. According to reported financial statements, financial situation of it quite optimistic. Its revenue and profit in 2011 were increased about 17.7% and 12% compared with 2010. Liquidity ratios of the subject are higher than industry average liquidity ratio. Currently, its business operation is busy.

Comparison with other company in this field, the subject is big scale company. The management capability of the subject is good. The subject has capacity to meet all small-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)
	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.53.90
UK Pound	1	Rs.87.60
Euro	1	Rs.70.01

INFORMATION DETAILS

Report Prepared by :

PRL

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.