MIRA INFORM REPORT

Report Date :

27.09.2012

IDENTIFICATION DETAILS

Correct Name :	TV.PHARM PHARMACEUTICAL JOINT STOCK COMPANY

Registered Office :	No. 27 Dien Bien Phu Str - Group 2 - Ward 9, Tra Vinh City, Tra Vinh Province

Country :	Vietnam

Financials (as on) :	31.12.2011

Year of Establishment :	1992

Com. Reg. No.:	2100274872

Legal Form :	Joint Stock Company

Line of Business :	Manufacturing, trading, export – import: new medicine, oriental medicine, medical component and health food

No. of Employees :	513 employees

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 :	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

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		TV.PHARM PHARMACEUTICAL JOINT STOCK COMPANY
Vietnamese Name		CONG TY CO PHAN DUOC PHAM TV.PHARM
Short name		TV.PHARM
Type of Business		Joint stock company
Year Established		1992
Establishment Decision		81/QD – UBT
Date of Issuance		20 May 1992
Place of Issuance		People’s Committee of Tra Vinh province
Business Registration No.		2100274872
Date of Registration		20 Aug 2010
Place of Registration		Planning and Investment Department of Tra Vinh Province
Chartered capital		VND 63,000,000,000
Status		Unlisted
Tax code		2100274872
Total Employees		513

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Board Of Director: Mr. LE VAN HO - Chairman and General Director Changed to: Mr. BUI VAN TONG - Chairman; Mr. NGUYEN DANG NGUYEN - General Director	01 Aug 2011
2	Subject has got former Business Registration No: 5803000005 Changed to: 2100274872	20 Aug 2010
3	Subject has got former Address: No. 37-39 Pham Thai Buong Str. - Ward 3, Tra Vinh City, Tra Vinh Province, Vietnam Changed to: No. 27 Dien Bien Phu Str - Group 2 - Ward 9, Tra Vinh City, Tra Vinh Province, Vietnam	2003
4	Subject has got former Type of Business: State owned enterprise Changed to: Joint Stock Company	2003
5	Subject has got former Trade Name: TRA VINH PHARIMEXCO Changed to: TV.PHARM	2003
6	Subject has got former Chartered capital: 35,000,000,000 (In 2005); Changed to 48,000,000,000 VND (In 2006) Changed to: 63,000,000,000 VND	N/A

company ADDRESSES

Head Office
Address		No. 27 Dien Bien Phu Str - Group 2 - Ward 9, Tra Vinh City, Tra Vinh Province, Vietnam
Telephone		(84-74) 3753121/ 3855372
Fax		(84-74) 3855372
Email		info@tvpharm.com.vn
Website		http://www.tvpharm.com.vn
Note		The full address of the subject is as above.

Branch in Ho Chi Minh
Address		Q1 Bis Bach Ma - Bac Hai Quarters - Ward 15, 10 District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 39702357 – 39702315
Fax		(84-8) 38652024
Email		tv@hcm.vnn.vn
Note: Business Registration: 4113012045 Chief of HCMC Branch: Ms. Tran Thi Hoa

Branch in Tra Vinh
Address		No. 1/8 Tran Phu Str. - Ward 7, Tra Vinh City, Tra Vinh Province, Vietnam
Telephone		(84-74) 3753095

Branch in Ha Noi
Address		No. 22 11B Trung Yen 10 Trung Hoa Ward, Cau Giay District, Ha Noi City, Vietnam
Telephone		(84-4) 37833516

Branch in Da Nang
Address		No.423 Trung Nu Vuong, Hai Chau District, Da Nang City, Vietnam
Telephone		(84-511) 3633951

Branch in Dong Nai
Address		20/4 KP3 Quang Vinh Ward, Bien Hoa City, Dong Nai Province, Vietnam

Branch in An Giang
Address		11B Bui Thi Xuan Street My Xuyen Ward, Long Xuyen City, An Giang Province, Vietnam
Telephone		(84-766) 3253117

Branch in Can Tho
Address		17B2 Collective 91B Xuan Khanh Street, Ninh Kieu District, Can Tho City, Vietnam
Telephone		(84-71) 3781345

DIRECTORS

1. NAME		Mr. BUI VAN TONG
Position		Chairman
ID Number/Passport		334000958
Resident		No. 70 Dong Khoi str - ward 6, Tra Vinh City, Tra Vinh Province, Vietnam
Nationality		Vietnamese
Tel/Mobile phone		(84) 913891092

2. NAME		Mr. NGUYEN DANG NGUYEN
Position		General Director
Date of Birth		10 Mar 1960
ID Number/Passport		025203490
ID Issue Date		28 Dec 2009
ID Issue Place		Ho Chi Minh Police Dept
Resident		No. 28 Road 81, Tan Quy Ward, 7 District, Ho Chi Minh City, Vietnam
Current resident		No. 28 Road 81, Tan Quy Ward, 7 District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Tel/Mobile phone		+84 903829806

3. NAME		Mr. HA VAN DONG
Position		Deputy General Director
ID Number/Passport		334454430
Resident		No. 37 Pham Thai Buong str - ward, Tra Vinh City, Tra Vinh Province, Vietnam
Nationality		Vietnamese

4. NAME		Mr. HOANG VAN GIOI
Position		Chief Accountant
ID Number/Passport		334001896
Resident		Ward 5, Vinh Long City, Vinh Long Province, Vietnam
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject registered in the following activities:
- Manufacturing, trading, export – import: new medicine, oriental medicine, medical component and health food; Medicine and raw materials for veterinary; Flavoring, drug, package for making medicine and gear for public health;
- Beauty product, chemical for test, equipment and tools for laboratory, germicide, nutria food, milk, still mineral water, fresh water, drug water and water without alcohol.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		Raw material and medicine product, equipment
· Market		Hungary, China, Korea, India, Holland, France…
· Mode of payment		LC, TT

EXPORT:
· Market		Nigeria
· Mode of payment		LC, TT

BANKERS

1. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK
Address		8th Floor, VinCom Center, No. 72 Le Thanh Ton street , 1 District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 3821 0055
Fax		(84-8) 3829 6063
SWIFT Code		EBVIVNVX

2. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE TRA VINH BRANCH
Address		No.15A Dien Bien Phu, Tra Vinh City, Tra Vinh Province, Vietnam
Telephone		(84-74) 3863827

3. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM TRA VINH BRANCH
Address		No.24-26 Pham Thai Buong Street, Tra Vinh City, Tra Vinh Province, Vietnam
Telephone		(84-74) 3856627

SHAREHOLDERS

Following is the list of founding shareholders.
1. NAME		STATE CAPITAL INVESTMENT CORPORATION
Business Registration		0101992921
Date of Registration		09 Jul 2010
Place of Registration		Ha Noi Planning and Investment Department
Registered Capital		VND 19,000,000,000,000
Tax code		0101992921
Address		No. 15A Tran Khanh Du Str.,, Hoan Kiem District, Ha Noi City, Vietnam
Tel		(84-4) 62780126
Fax		(84-4) 62780136
Number of shares		2,738,700
Value of shares		VND 27,387,000,000
Percentage		43.47%

2. NAME		Mr. BUI VAN TONG
Position		Chairman
ID Number/Passport		334000958
Resident		No. 70 Dong Khoi str - ward 6, Tra Vinh City, Tra Vinh Province, Vietnam
Mobile phone		(84) 913891092
Nationality		Vietnamese
Number of Shares		13,083
Value of shares		VND 130,830,000
Percentage		0.21%

3. NAME		Mr. NGUYEN DANG NGUYEN
Position		General Director
Date of Birth		10 Mar 1960
ID Number/Passport		025203490
Issued on		28 Dec 2009
Issued Place		Ho Chi Minh Police Dept
Resident		No. 28 Road 81, Tan Quy Ward, 7 District, Ho Chi Minh City, Vietnam
Current Resident		No. 28 Road 81, Tan Quy Ward, 7 District, Ho Chi Minh City, Vietnam
Mobile phone		+84 903829806
Nationality		Vietnamese
Number of Shares		162,081
Value of shares		VND 1,620,810,000
Percentage		2.57%

4. NAME		Mr. HA VAN DONG
Position		Deputy General Director
ID Number/Passport		334454430
Resident		No. 37 Pham Thai Buong str - ward, Tra Vinh City, Tra Vinh Province, Vietnam
Nationality		Vietnamese
Number of Shares		18,934
Value of shares		VND 189,340,000
Percentage		0.3%

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	Audited	Unknown	Unknown
ASSETS
A – CURRENT ASSETS	182,846,568,678	180,691,450,102	178,489,751,397
I. Cash and cash equivalents	29,083,129,487	26,278,292,374	15,031,956,951
1. Cash	29,083,129,487	26,278,292,374	15,031,956,951
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	75,154,400,304	80,513,427,241	76,762,547,740
1. Receivable from customers	79,753,840,937	79,790,840,262	64,486,204,134
2. Prepayments to suppliers	878,820,000	1,165,255,000	1,687,176,195
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	928,157,457	2,557,331,979	13,139,167,411
6. Provisions for bad debts	-6,406,418,090	-3,000,000,000	-2,550,000,000
IV. Inventories	69,103,568,104	64,148,015,036	73,441,072,256
1. Inventories	69,103,568,104	64,148,015,036	73,441,072,256
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	9,505,470,783	9,751,715,451	13,254,174,450
1. Short-term prepaid expenses	137,100,000	78,100,000	87,000,000
2. VAT to be deducted	241,869,380	181,378,924	700,068,836
3. Taxes and other accounts receivable from the State	94,030	0	0
4. Other current assets	9,126,407,373	9,492,236,527	12,467,105,614
B. LONG-TERM ASSETS	45,979,200,447	50,359,369,827	53,866,925,035
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	45,285,359,276	49,604,475,212	53,120,817,891
1. Tangible assets	35,329,845,037	39,194,909,517	42,666,705,821
- Historical costs	95,162,052,585	93,044,752,559	90,585,260,528
- Accumulated depreciation	-59,832,207,548	-53,849,843,042	-47,918,554,707
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	9,955,514,239	10,344,487,469	9,796,433,844
- Initial costs	11,345,787,028	11,345,787,028	10,465,577,028
- Accumulated amortization	-1,390,272,789	-1,001,299,559	-669,143,184
4. Construction-in-progress	0	65,078,226	657,678,226
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	693,841,171	754,894,615	746,107,144
1. Long-term prepaid expenses	693,841,171	754,894,615	746,107,144
2. Deferred income tax assets	0	0	0
3. Other long-term assets	0	0	0
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	228,825,769,125	231,050,819,929	232,356,676,432

LIABILITIES
A- LIABILITIES	86,815,882,541	97,655,133,251	106,919,372,972
I. Current liabilities	85,428,241,903	91,388,563,497	106,443,865,750
1. Short-term debts and loans	40,578,295,123	51,800,342,268	50,359,987,855
2. Payable to suppliers	31,867,084,603	31,664,960,976	48,040,755,018
3. Advances from customers	35,367,406	32,317,056	563,037,208
4. Taxes and other obligations to the State Budget	3,802,330,981	1,329,951,662	1,149,706,761
5. Payable to employees	6,607,686,697	5,542,278,780	5,613,681,739
6. Accrued expenses	2,496,931,334	0	0
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	801,899,019	1,018,712,755	716,697,169
10. Provisions for short-term accounts payable	0	0	0
11. Bonus and welfare funds	-761,353,260
II. Long-Term Liabilities	1,387,640,638	6,266,569,754	475,507,222
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	300,000,000	5,758,767,047	0
4. Long-term debts and loans	0	0	0
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	516,370,371	507,802,707	475,507,222
7. Provisions for long-term accounts payable	0	0	0
8. Unearned Sale	571,270,267	0	0
9. Science and technology development fund	0	0	0
B- OWNER’S EQUITY	142,009,886,584	133,395,686,678	125,437,303,460
I. OWNER’S EQUITY	142,009,886,584	133,642,090,220	125,251,103,527
1. Capital	63,000,000,000	63,000,000,000	63,000,000,000
2. Share premiums	34,563,108,125	34,563,108,125	34,563,108,125
3. Other sources of capital	0	0	0
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	444,161,082	13,180,409	-274,795,004
7. Business promotion fund	15,711,475,296	6,548,966,123	2,047,727,089
8. Financial reserved fund	5,822,613,090	4,953,926,610	3,829,141,852
9. Other funds	0	0	0
10. Retained earnings	22,468,528,991	24,562,908,953	22,085,921,465
11. Construction investment fund	0		0
12. Business arrangement supporting fund	0
II. Other sources and funds	0	-246,403,542	186,199,933
1. Bonus and welfare funds (Elder form)	0	-246,403,542	186,199,933
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	228,825,769,125	231,050,819,929	232,356,676,432

PROFIT & LOSS STATEMENT

Description	FY2011	FY2010	FY2009
1. Total Sales	334,947,017,795	257,714,017,875	243,687,509,707
2. Deduction item	3,987,143,481	3,246,342,417	6,258,649,361
3. Net sale	330,959,874,314	254,467,675,458	237,428,860,346
4. Costs of goods sold	210,360,860,259	162,385,265,675	155,134,461,915
5. Gross profit	120,599,014,055	92,082,409,783	82,294,398,431
6. Financial income	4,636,988,643	2,539,447,841	2,986,474,287
7. Financial expenses	12,959,141,239	14,346,113,248	13,584,952,785
- In which: Loan interest expenses	7,319,889,846	6,543,792,952	4,199,180,497
8. Selling expenses	59,838,180,649	44,385,290,809	38,387,479,507
9. Administrative overheads	15,776,127,321	9,366,100,072	9,937,782,395
10. Net operating profit	36,662,553,489	26,524,353,495	23,370,658,031
11. Other income	646,555,536	736,237,222	1,219,276,764
12. Other expenses	295,165,772	10,653,720	2,066,570
13. Other profit /(loss)	351,389,764	725,583,502	1,217,210,194
14. Total accounting profit before tax	37,013,943,253	27,249,936,997	24,587,868,225
15. Current corporate income tax	8,085,396,075	4,112,341,399	1,906,254,956
16. Deferred corporate income tax	0	0	185,918,105
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	28,928,547,178	23,137,595,598	22,495,695,164

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	2.14	1.98	1.68	1.65
Quick liquidity ratio	1.33	1.28	0.99	1.04
Inventory circle	3.04	2.53	2.11	4.14
Average receive period	82.88	115.49	118.01	105.37
Utilizing asset performance	1.45	1.10	1.02	1.20
Liability by total assets	37.94	42.27	46.02	53.11
Liability by owner's equity	61.13	73.21	85.24	159.74
Ebit / Total assets (ROA)	19.37	14.63	12.39	10.37
Ebit / Owner's equity (ROE)	31.22	25.33	22.95	23.03
Ebit / Total sale (NPM)	13.24	13.11	11.81	10.15
Gross profit / Total sale (GPM)	36.01	35.73	33.77	25.88
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CASH FLOW STATEMENT

*(Indirect method)*
Items	FY2011	FY2010
I. Cash flows from operating activities
*1. Profit before tax*	37,013,943,253	27,249,936,997
*2. Adjustments*
- Depreciation and amortization	6,424,943,897	6,263,444,710
- Provisions	3,406,418,090	450,000,000
- Unrealized foreign exchange difference	0
- Gain/loss from investing activities	-256,237,332	-237,398,250
- Interest expense	7,319,889,846	6,543,792,952
*3. Operating profit before movements in working capital*	53,908,957,754	40,269,776,409
- (Increase)/Decrease in receivables	1,808,500,269	-707,320,502
- (Increase)/Decrease in inventories	-4,955,553,068	9,293,057,220
- Increase/(Decrease) in accounts payable	-12,360,131,392	-14,874,389,662
- (Increase)/Decrease in prepaid expenses	2,053,444	112,529
- Interest paid	-7,319,889,846	-6,543,792,952
- Corporate income tax paid	5,542,569,642	-4,025,167,466
- Other cash inflows	2,080,649,889	4,026,345,110
- Other cash outflows	-5,131,379,394	-168,880,247
Net cash from (used in) operating activities	33,575,777,298	27,269,740,439
II. Cash flows from investing activities
1. Acquisition of fixed assets and other long - term assets	-2,111,742,898	-2,747,102,031
2. Proceeds from fixed assets and long - term assets disposal	3,300,000
3. Cash outflow for lending, buying debt instruments of other companies	0
4. Cash recovered from lending, selling debt instruments of other companies	0
5. Investment in other entities	0
6. Cash recovered from investments in other entities	0
7. Interest income, dividend and profit paid	258,852,269	237,398,250
Net cash from (used in) investing activities	-1,849,590,629	-2,509,703,781
III. Cash flows from financing activities
1. Proceeds from issuing stocks, receiving capital from owners	0
2. Capital withdrawal, buying back issued stocks	0
3. Proceeds from borrowings	189,840,883,929	154,885,271,813
4. Repayment of borrowings	-201,130,558,372	-153,363,211,086
5. Repayment of obligations under finance leased	0	-15,034,584,318
6. Dividends paid	-17,633,989,000
Net cash from (used in) financing activities	-28,923,663,443	-13,512,523,591
Net increase/(decrease) in cash and cash equivalents	2,802,523,226	11,247,513,067
Cash and cash equivalents at beginning of year	26,278,292,374	15,031,956,951
Effect from changing foreign exchange rate	2,313,887	-1,177,644
Cash and cash equivalents at end of year	29,083,129,487	26,278,292,374

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

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

CREDIT INQUIRY: USD 125,000 against D/A in terms

Acceptable!

INTERPRETATION ON THE SCORES

The company was founded in 1992 as a State Owned Enterprise with the former name Tra Vinh Pharimexco. In 2003, it was capitalized and changed name to TV.Pharm Pharmaceutical Joint Stock Company (TV.Pharm). Currently, the subject is operating under the business registration No. 2100274872 which is the same with its tax code. It has chartered capital of VND 63 billion in which State Capital Investment Corporation holds 43.47%.

The company’s head office is located at No. 27, Dien Bien Phu Street, Group 2, Ward 8, Tra Vinh City, Tra Vinh Province, Viet Nam. In addition, it has many branches in other provinces such as: Ho Chi Minh City, Ha Noi City, An Giang Province, etc. The company specializes in manufacturing, trading, importing kind of new medicines, oriental medicines, medical components, flavoring, drug, package for making medicine and gear for public health. The subject is the first company producing most modern soft capsules in Vietnam. The source of raw material, drug and equipment are imported from Hungary, China, Korea, India, Holland, France…

The company is ranked as a medium sized company in the industry with the total assets in 2011 of VND 228.8 billion. According to the balance sheet, self-financing ability is fair. Liability by total assets in 2011 was 37.94% and tended to decrease compared to previous year. The reason is that the subject reduced liability through years while the owner equity increased continuously. It shows that the subject reduces its reliance on external financial resources and the capital structure of the subject is safe. According to the balance sheet, we can see the company’s current liability went down through years, too. It made the company’s current liquidity improved from 1.98 in 2010 to 2.14 in 2011. The liquidity ratio of the subject is fairly high. The profitability of the subject is good. The subject’s total sales in 2011 were VND 334.9 billion and it made profit of VND 28.9 billion; better than previous year.

Generally, the subject’s business situation is stable. It has a high position in the industry. No is caution needed for normal transactions with the subject.

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.53.58
UK Pound	1	Rs.86.60
Euro	1	Rs.68.94

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.