MIRA INFORM REPORT

Report Date :

03.08.2013

IDENTIFICATION DETAILS

Name :	PHARMACEUTICAL JOINT STOCK COMPANY OF FEBRUARY 3 RD
Registered Office :	No. 10 Cong Truong Quoc Te Street, Ward 6, District 3, Ho Chi Minh City,
Country :	Vietnam
Financials (as on) :	31.12.2012
Date of Incorporation :	1976
Legal Form :	Joint Stock Company
Line of Business :	Subject specializes in manufacturing and trading pharmaceutical products, pharmaceutical materials, herbals, functional foods, and other products under the administration of the Ministry of Medicine.
No. of Employees :	330

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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 has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. 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 hurt Vietnam's export-oriented economy, with GDP in 2012 growing at 5%, the slowest rate of growth since 1999. In 2012, however, exports increased by more than 18%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the Government shifted policy away from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. Although Vietnam unveiled a broad, "three pillar" economic reform program in early 2012, proposing the restructuring of public investment, state-owned enterprises, and the banking sector, little perceptible progress had been made by early 2013. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some independent analysts believe it could be higher than 15%.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM
Current legal status
Registration English Name	PHARMACEUTICAL JOINT STOCK COMPANY OF FEBRUARY 3 RD
Registration Vietnamese Name	CONG TY CO PHAN DUOC PHAM 3/2
Registration Short name	F.T.PHARMA
Type of Business	Joint stock company
Year Established	1976
Establishment Decision	789 QĐ-TTg
Date of Issuance	28 Jun 2001
Place of Issuance	Prime Minister
Business Registration No.	0302408317
Date of Registration	19 Oct 2009
Date of latest adjustment (8^th)	12Jun 2013
Place of Registration	Business Registration Office of Planning and Investment Department of Ho Chi Minh City
Chartered capital	VND 46,500,000,000
Status	Unlisted
Tax code	0302408317
Total Employees	330

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 4103000613 issued on 24 Sep 2001 Changed to: 0302408317	19 Oct 2009

ADDRESSES
Head Office
Address	No. 10 Cong Truong Quoc Te Street, Ward 6, District 3, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3823 0512 - 3823 7339 - 3829 1851
Fax	(84-8) 3829 5221
Email	duocpham32@ft-pharma.com.vn
Website	www.ft-pharma.com.vn
Factory Address
Address	No. 930 C2 Road C, Cat Lai Industrial Zone, Thanh My Loi Ward, District 2, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3742 1207
Occupied Area	10,200m2
Land-use Right	Leased
Transaction office in Ho Chi Minh
Address	No. 601 Cach Mang Thang Tam Street, Ward 15, District 10, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3977 0963
Fax	(84-8) 3977 0968
Branch in Ha Noi
Address	No.42, Alley 169, Tay Son Street, Quang Trung Ward, Dong Da District, Ha Noi, Vietnam

RELATED COMPANIES
SAIGON PHARMACEUTICAL COMPANY LIMITED
Business Registration	0300523385
Date of Registration	15 Sep 2011
Place of Registration	Business Registration Office- Ho Chi Minh City Department of Planning and Investment
Chartered capital	VND 436,548,000,000
Tax code	0300523385
Address	No. 18-20 Nguyen Truong To Street, Ward 12, District 4, Ho Chi Minh City, Vietnam
Tel	(84-8) 3940 0388 - 3825 4553 - 3825 4554 - 3940 0459
Fax	(84-8) 3940 1975
Website	www.sapharco.com

DIRECTORS
1. NAME	Mr. LE THANH SU
Position	Chairman - General Director
Date of Birth	04 Jun 1951
ID Number/Passport	024043876
ID Issue Date	14 Nov 2002
ID Issue Place	Police Station of Ho Chi Minh City
Resident	48D Thach Thi Thanh, Tan Dinh Ward, District 1, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Qualification	Pharmacist
2. NAME	Ms. TRAN THI THANH HUONG
Position	Deputy General Director
Current resident	Ho Chi Minh City, Vietnam
Nationality	Vietnamese
3. NAME	Ms. NGUYEN THI CHAU OANH
Position	Deputy General Director
Current resident	Ho Chi Minh City, Vietnam
Nationality	Vietnamese
4. NAME	Ms. LY THI THANH VAN
Position	Deputy General Director
Nationality	Vietnamese
5. NAME	Mr. VU TIEN DONG
Position	Chief Accountant
Current resident	Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Qualification	Accounting
6 . NAME	Mr. NGUYEN TRUNG THIEN
Position	Chief of Board of Controllers
Nationality	Vietnamese
7 . NAME	Mr. NGUYEN TAN LOC
Position	Member of Board of Controllers
ID Number/Passport	022594481
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

Subject specializes in manufacturing and trading pharmaceutical products, pharmaceutical materials, herbals, functional foods, and other products under the administration of the Ministry of Medicine.
Subject registers operating in the following lines of business:
+ Real estate services including office rental service, housing service, storage service, etc.
+ Education and training services
+ Magazine distributor etc.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Material
· Market	Asian countries (India, China,...)
EXPORT:
· Market	Laos, Cambodia and Myanmar

BANKERS
1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM BEN THANH BRANCH
Address	No 69 Bui Thi Xuan, District 1, Ho Chi Minh City, Vietnam
Telephone	(84-8) 38 359 262
Fax	(84-8) 38 325 041
SWIFT Code	BFTVVNVX
2. VIET NAM BANK OF AGRICULTURE AND RURAL DEVELOPMENT
Address	No. 324 – 326 Vo Van Tan Str ,Ward 5, District 3, Ho Chi Minh City, Vietnam
Telephone	(84-8) 38 344 909

SHAREHOLDERS
Following are subject’s registered shareholders:
1. NAME	THE GOVERNMENT
Address	Ho Chi Minh City, Vietnam
Number of shares	38,750
Value of shares	VND 3,875,000,000
Percentage	8.33%
Note: Mr. Le Thanh Su and Mr. Nguyen Thanh Xieu are the representative for the State Own shares.
NAME	Mr. LE THANH SU
Position	Chairman - General Director
Date of Birth	04 Jun 1951
ID Number/Passport	024043876
Issued on	14 Nov 2002
Issued Place	Police Station of Ho Chi Minh City
Resident	48D Thach Thi Thanh, Tan Dinh Ward, District 1, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
NAME	Mr. NGUYEN THANH XIEU
Current Resident	444 Nguyen Trai Street, Ward 8, District 5, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
2. NAME	Mr. LE HOANG PHONG
Date of Birth	01 Jan 1951
ID Number/Passport	020083917
Resident	19/24B Tran Binh Trong, Ward 5, Binh Thanh District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Number of Shares	750
Value of shares	VND 75,000,000
Percentage	0.16%
3. NAME	Mr. NGUYEN MINH DUC
Date of Birth	01 Mar 1955
ID Number/Passport	020036532
Resident	50 Dang Thi Nhu Street, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Number of Shares	750
Value of shares	VND 75,000,000
Percentage	0.16%
4. NAME	Ms. PHAM THI THANH
Date of Birth	27 Jul 1950
ID Number/Passport	020089923
Resident	42CC Group 2, Tan Qui Ward, District 7, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Number of Shares	700
Value of shares	VND 70,000,000
Percentage	0.15%
5. NAME	Mr. PHAN KHAC THACH
Date of Birth	21 Jul 1952
ID Number/Passport	350590056
Resident	330/19/4 Phan Dinh Phung, Phu Nhuan District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Number of Shares	700
Value of shares	VND 70,000,000
Percentage	0.15%
6. NAME	Mr. HUYNH VAN HONG
Date of Birth	30 Oct 1963
ID Number/Passport	280081892
Resident	432/K4 Binh Hoa Hamlet, Binh Kham Commune, Thuan An Town, Binh Duong Province, Vietnam
Nationality	Vietnamese
Number of Shares	500
Value of shares	VND 50,000,000
Percentage	0.11%
7. NAME	531 OTHER SHAREHOLDERS
Number of Shares	112,850
Value of shares	VND 11,285,000,000
Percentage	24.27%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2012	31/12/2011
Number of weeks	52	52
Audit status	Audited	Audited
ASSETS
A – CURRENT ASSETS	87,397,032,669	78,743,406,355
I. Cash and cash equivalents	20,123,657,944	13,893,271,311
1. Cash	20,123,657,944	13,893,271,311
2. Cash equivalents
II. Short-term investments
1. Short-term investments
2. Provisions for devaluation of short-term investments
III. Accounts receivable	34,599,867,506	28,485,032,075
1. Receivable from customers	33,067,843,976	28,118,492,133
2. Prepayments to suppliers	2,328,782,200
3. Inter-company receivable
4. Receivable according to the progress of construction
5. Other receivable	609,082,792	876,554,185
6. Provisions for bad debts	-1,405,841,462	-510,014,243
IV. Inventories	31,516,515,227	34,598,691,987
1. Inventories	31,516,515,227	34,598,691,987
2. Provisions for devaluation of inventories
V. Other Current Assets	1,156,991,992	1,766,410,982
1. Short-term prepaid expenses	874,800,100	863,290,376
2. VAT to be deducted		620,511,555
3. Taxes and other accounts receivable from the State
4. Other current assets	282,191,892	282,609,051
B. LONG-TERM ASSETS	57,156,472,030	61,098,307,913
I. Long term accounts receivable
1. Long term account receivable from customers
2. Working capital in affiliates
3. Long-term inter-company receivable
4. Other long-term receivable
5. Provisions for bad debts from customers
II. Fixed assets	49,715,664,613	51,629,274,550
1. Tangible assets	44,731,654,228	46,775,009,338
- Historical costs	94,664,061,207	89,527,229,720
- Accumulated depreciation	-49,932,406,979	-42,752,220,382
2. Financial leasehold assets
- Historical costs
- Accumulated depreciation
3. Intangible assets	4,099,310,385	4,142,984,212
- Initial costs	4,291,421,979	4,241,421,979
- Accumulated amortization	-192,111,594	-98,437,767
4. Construction-in-progress	884,700,000	711,281,000
III. Investment property	404,060,245	2,461,084,200
Historical costs	2,406,071,400	5,633,477,465
Accumulated depreciation	-2,002,011,155	-3,172,393,265
IV. Long-term investments	3,683,000,000	3,683,000,000
1. Investments in affiliates
2. Investments in business concerns and joint ventures
3. Other long-term investments	3,683,000,000	3,683,000,000
4. Provisions for devaluation of long-term investments
V. Other long-term assets	3,353,747,172	3,324,949,163
1. Long-term prepaid expenses	3,343,747,172	3,314,949,163
2. Deferred income tax assets
3. Other long-term assets	10,000,000	10,000,000
VI. Goodwill
1. Goodwill
TOTAL ASSETS	144,553,504,699	139,841,714,268
LIABILITIES
A- LIABILITIES	42,733,545,745	43,546,632,339
I. Current liabilities	42,733,545,745	43,366,632,339
1. Short-term debts and loans	27,679,002,697	34,897,115,560
2. Payable to suppliers	3,977,364,331	1,842,746,772
3. Advances from customers	30,000,352	47,208,874
4. Taxes and other obligations to the State Budget	2,244,678,056	1,008,427,407
5. Payable to employees	2,967,048,929	291,750
6. Accrued expenses	60,000,000	27,000,000
7. Inter-company payable
8. Payable according to the progress of construction contracts
9. Other payable	5,775,451,380	5,543,841,976
10. Provisions for short-term accounts payable
11. Bonus and welfare funds
II. Long-Term Liabilities		180,000,000
1. Long-term accounts payable to suppliers
2. Long-term inter-company payable
3. Other long-term payable		180,000,000
4. Long-term debts and loans
5. Deferred income tax payable
6. Provisions for unemployment allowances
7. Provisions for long-term accounts payable
8. Unearned Revenue
9. Science and technology development fund
B- OWNER’S EQUITY	101,819,958,954	96,295,081,929
I. OWNER’S EQUITY	101,819,958,954	96,295,081,929
1. Capital	46,500,000,000	46,500,000,000
2. Share premiums	24,195,000,000	24,195,000,000
3. Other sources of capital
4. Treasury stocks
5. Differences on asset revaluation
6. Foreign exchange differences
7. Business promotion fund	4,872,162,344	4,872,162,344
8. Financial reserved fund	2,408,041,192	2,408,041,192
9. Other funds
10. Retained earnings	23,844,755,418	18,319,878,393
11. Construction investment fund
12. Business arrangement supporting fund
II. Other sources and funds
1. Bonus and welfare funds (Elder form)
2. Sources of expenditure
3. Fund to form fixed assets
MINORITY’S INTEREST
TOTAL LIABILITIES AND OWNER’S EQUITY	144,553,504,699	139,841,714,268

PROFIT & LOSS STATEMENT
Description	FY2012	FY2011
1. Total Sales	205,259,392,385	187,703,960,966
2. Deduction item	795,862,276	1,200,723,713
3. Net revenue	204,463,530,109	186,503,237,253
4. Costs of goods sold	140,757,287,740	137,883,171,982
5. Gross profit	63,706,242,369	48,620,065,271
6. Financial income	287,220,519	408,204,098
7. Financial expenses	3,422,562,391	3,935,463,388
- In which: Loan interest expenses	3,329,619,421	3,824,839,409
8. Selling expenses	22,431,743,544	19,145,647,825
9. Administrative overheads	10,492,212,426	7,702,594,978
10. Net operating profit	27,646,944,527	18,244,563,178
11. Other income	418,878,579	1,387,944,101
12. Other expenses	229,168,620	568,572,445
13. Other profit /(loss)	189,709,959	819,371,656
14. Total accounting profit before tax	27,836,654,486	19,063,934,834
15. Current corporate income tax	7,488,299,292	4,215,223,706
16. Deferred corporate income tax
17. Interest from subsidiaries/related companies
18. Profit after tax	20,348,355,194	14,848,711,128

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2012	FY2011	Average Industry
Current liquidity ratio	2.05	1.82	1.80
Quick liquidity ratio	1.31	1.02	1.12
Inventory circle	4.26	3.99	3.56
Average receive period	61.77	55.75	117.46
Utilizing asset performance	1.41	1.33	1.10
Liability by total assets	29.56	31.14	50.87
Liability by owner's equity	41.97	45.22	169.03
Ebit / Total assets (ROA)	21.56	16.37	12.05
Ebit / Owner's equity (ROE)	30.61	23.77	27.25
Ebit / Total revenue (NPM)	15.18	12.19	12.32
Gross profit / Total revenue (GPM)	31.04	25.90	29.69
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Fair
Liquidity	Medium/High
Payment status	Above Average
Financial Situation	Above Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	By cash or through the bank
Sale Methods	Wholesaler

INTERPRETATION ON THE SCORES

F.T.PHARMA was first established in 1976 under the name Eftiphar as a state owned enterprise. The subject was equitized and became a joint stock company under Establishment Decision No. 789 QĐ-TTg in 2001. During operation, the subject has changed its business registration 8 times, the last time was on 12 June 2013. Currently, the subject is operating under the business registration No. 0302408317 with chartered capital of VND 46.5 billion.

Subject specializes in manufacturing and trading pharmaceutical products, pharmaceutical material, herbals, functional foods… It imports material from few countries in Southeast Asia. Products of subject do not only consumed in domestic market but also exported to foreign markets. Subject exports its products to Thailand, China, and Africa… It has built up a standard premises and facilities and thanks to the effort; its product was committed to the GMP Standard of the World Health Organization. Currently, the pharmaceutical industry in Vietnam has developing prospect.

As finance statement, the revenue and profit of subject had trend to well grow over the years. Its total revenue grew 9.35%, similarly, its net profit increased 51.53% in 2012. Its total assets strong increased over 3.36% in 2012 compared to 2011. Its total asset reached nearly VND 144.554 billion in the end 2012. Its current liabilities decreased 1.4% in 2012. Its liquidity and operational ratios were fair.

Subject’s business activities are fairly good. Its financial situation is above average. In our opinion, subject has capacity to meet normal financial commitments. No caution needed for small-medium business transactions with subject.

------------ APPENDIX ----------

INDUSTRY DATA
Industry code	GDP growth speed by price compared with 1994 (%)		Total enterprises 2010		Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
	2012	2011
Agriculture, Forestry and Fishing	2.72	4.00	8,887		24,362.9	95,227
Industry and Construction	4.52	5.53	95,217		10,718.9	3,641,376
Trade and Services	6.42	6.69	187,195		15,270.2	6,957,082
ECONOMIC INDICATORS
			2012	2011		2010
Population (Million person)			88.78	87.84		86.93
Gross Domestic Products (USD billion)			136	119		102.2
GDP Growth (%)			5.03	5.89		6.78
GDP Per Capita (USD/person/year)			1,540	1,300		1,160
Inflation (% Change in Composite CPI)			9.21	18.58		11.75
State Budget Deficit compared with GDP (%)			4.8	4.9		5.8
SERVICE TRADE PERFORMANCE
Billion USD			2012	2011		2010
Exports			114.6	96.3		72.2
Imports			114.3	105.8		84.8
Trade Balance			0.3	-9.5		-12.6

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.80
UK Pound	1	Rs.91.95
Euro	1	Rs.80.36

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%)

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.