MIRA INFORM REPORT

 

 

Report Date :

20.07.2013

 

IDENTIFICATION DETAILS

 

Name :

MEDOCHEMIE (FAR EAST) LTD.

 

 

Registered Office :

No. 40 Road No. 6, Vietnam - Singapore 2 IP, Hoa Phu Ward, Thu Dau Mot City, Binh Duong Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

16.09.2008

 

 

Legal Form :

One Member Limited liability company (Foreign Invested Company)

 

 

Line of Business :

Subject registers in manufacturing pharmaceuticals and medicine.

 

 

No. of Employees :

100

 

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, 31st, 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

English Name

 

MEDOCHEMIE (FAR EAST) LTD.

Vietnamese Name

 

CONG TY TNHH MEDOCHEMIE (VIEN DONG)

Type of Business

 

One Member Limited liability company (Foreign Invested Company)

Year Established

 

2008

Investment Certificate No

 

463043000279

Date Of Issuance

 

16 Sep 2008

Date of the latest adjustment

 

17 Apr 2013

Place of Issuance

 

Vietnam Singapore Industrial Park Authority

Registered Investment Capital

 

USD 13,924,600

Chartered capital

 

USD 5,424,600

Tax code

 

3700996141

Total Employees

 

100

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Registered Investment Capital: USD 11,424,600

Changed to: USD 13,924,600

2012

 

 

 

ADDRESSES

 

Head Office

Address

 

No. 40 Road No. 6, Vietnam - Singapore 2 IP, Hoa Phu Ward, Thu Dau Mot City, Binh Duong Province, Vietnam

Telephone

 

(84-650) 3815 600~622

Fax

 

(84-650) 3815 628

 

DIRECTORS

 

1. NAME

 

Mr. GREGORIS CHARITONOS

Position

 

Director

Date of Birth

 

28 Mar 1961

ID Number/Passport

 

K00013517

ID Issue Date

 

08 Apr 2011

ID Issue Place

 

Cyprus

Resident

 

No. 51 Kastellorizou Street, Aglantzia Area, Nicosia, Cyprus

Current resident

 

Room 6, 5th Floor, An Khang Building, An Phu An Khanh Area, An Phu Ward, District 2, Ho Chi Minh City, Vietnam

Nationality

 

Cypriot

Qualification

 

Management

 

2. NAME

 

Ms. PHAM THI TRAM

Position

 

Chief Accountant

Nationality

 

Vietnamese

Email

 

tram.pham@medochemie.com

Qualification

 

Bachelor

 

3. NAME

 

Ms. TRUONG UYEN NHU

Position

 

Logistics Manager

Current resident

 

Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 903 996 785

Email

 

nhu.truong@medochemie.com

Qualification

 

Bachelor

 

 

BUSINESS NATURE AND ACTIVITIES

 

Subject registers in manufacturing pharmaceuticals and medicine.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT: N/A

 

EXPORT: N/A

 

 

 

BANKERS

 

JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM BINH DUONG BRANCH

Address

 

No 72 Phu Hoa Ward, Thu Dau Mot City, Binh Duong Province, Vietnam

Telephone

 

(84-650) 3898 989

Fax

 

(84-650) 3831 220

 

 

SHAREHOLDERS

 

NAME

 

MEDOCHEMIE LTD

Business Registration

 

7761

Date of Registration

 

11 Feb 1976

Place of Registration

 

Cyprus

Address

 

1-10 Constantinoupoleos Street, 3011 Limassol, Cyprus

Tel

 

+357 25867600

Fax

 

+357 25560863

Email

 

office@medochemie.com 

Website

 

www.medochemie.com 

Percentage

 

100%

Representative

 

Mr. ANDREAS PITTAS

Date of Birth

 

04 Apr 1943

ID Number/Passport

 

J010117

Issued on

 

08 Nov 2004

Issued Place

 

Cyprus

Resident

 

No. 8 Anthimou Gazi Street, 3077 Limassol, Cyprus

Nationality

 

Cypriot

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2012

31/12/2011

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

76,725,000,000

24,967,000,000

I. Cash and cash equivalents

1,886,000,000

2,962,000,000

1. Cash

1,886,000,000

2,962,000,000

2. Cash equivalents

0

0

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

59,214,000,000

302,000,000

1. Receivable from customers

50,943,000,000

0

2. Prepayments to suppliers

1,462,000,000

170,000,000

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

6,809,000,000

132,000,000

6. Provisions for bad debts

0

0

IV. Inventories

13,076,000,000

7,995,000,000

1. Inventories

13,076,000,000

7,995,000,000

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

2,549,000,000

13,708,000,000

1. Short-term prepaid expenses

377,000,000

311,000,000

2. VAT to be deducted

2,159,000,000

13,268,000,000

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

13,000,000

129,000,000

B. LONG-TERM ASSETS

189,419,000,000

206,827,000,000

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

181,777,000,000

196,158,000,000

1. Tangible assets

168,813,000,000

181,240,000,000

- Historical costs

192,246,000,000

190,327,000,000

- Accumulated depreciation

-23,433,000,000

-9,087,000,000

2. Financial leasehold assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

3. Intangible assets

12,050,000,000

14,553,000,000

- Initial costs

13,173,000,000

15,394,000,000

- Accumulated amortization

-1,123,000,000

-841,000,000

4. Construction-in-progress

914,000,000

365,000,000

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

7,642,000,000

10,669,000,000

1. Long-term prepaid expenses

7,570,000,000

10,597,000,000

2. Deferred income tax assets

0

0

3. Other long-term assets

72,000,000

72,000,000

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

266,144,000,000

231,794,000,000

 

LIABILITIES

A- LIABILITIES

201,633,000,000

172,055,000,000

I. Current liabilities

35,629,000,000

147,578,000,000

1. Short-term debts and loans

21,445,000,000

51,029,000,000

2. Payable to suppliers

13,447,000,000

95,693,000,000

3. Advances from customers

0

0

4. Taxes and other obligations to the State Budget

31,000,000

28,000,000

5. Payable to employees

0

0

6. Accrued expenses

706,000,000

798,000,000

7. Inter-company payable

0

0

8. Payable according to the progress of construction contracts

0

0

9. Other payable

0

30,000,000

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

0

0

II. Long-Term Liabilities

166,004,000,000

24,477,000,000

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

166,004,000,000

24,477,000,000

5. Deferred income tax payable

0

0

6. Provisions for unemployment allowances

0

0

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

64,511,000,000

59,739,000,000

I. OWNER’S EQUITY

64,511,000,000

59,739,000,000

1. Capital

101,241,000,000

101,241,000,000

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

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

-36,730,000,000

-41,502,000,000

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

266,144,000,000

231,794,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2012

FY2011

1. Total Sales

72,796,000,000

0

2. Deduction item

0

0

3. Net revenue

72,796,000,000

0

4. Costs of goods sold

49,367,000,000

0

5. Gross profit

23,429,000,000

0

6. Financial income

509,000,000

1,655,000,000

7. Financial expenses

4,844,000,000

9,125,000,000

- In which: Loan interest expenses

4,122,000,000

0

8. Selling expenses

2,587,000,000

0

9. Administrative overheads

18,330,000,000

26,191,000,000

10. Net operating profit

-1,823,000,000

-33,661,000,000

11. Other income

6,595,000,000

1,000,000

12. Other expenses

0

0

13. Other profit /(loss)

6,595,000,000

1,000,000

14. Total accounting profit before tax

4,772,000,000

-33,660,000,000

15. Current corporate income tax

0

0

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

4,772,000,000

-33,660,000,000

 

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2012

FY2011

Average Industry

Current liquidity ratio

2.15

0.17

1.80

Quick liquidity ratio

1.79

0.12

1.12

Inventory circle

4.69

-

3.56

Average receive period

296.90

-

117.46

Utilizing asset performance

0.27

-

1.10

Liability by total assets

75.76

74.23

50.87

Liability by owner's equity

312.56

288.01

169.03

Ebit / Total assets (ROA)

3.34

-14.52

12.05

Ebit / Owner's equity (ROE)

13.79

-56.35

27.25

Ebit / Total revenue (NPM)

12.22

-

12.32

Gross profit / Total revenue (GPM)

32.18

-

29.69

Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Medium/High

Payment status

 

Normal

Financial Situation

 

Average

Development trend

 

Developing

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Through its corresponding bank, L/C, T/T

Sale Methods

 

Distributor

Public opinion

 

Normal

 

 

 

INTERPRETATION ON THE SCORES

 

The subject - MEDOCHEMIE (FAR EAST) LTD - was established in 2008. It is a 100% foreign invested Company by MEDOCHEMIE LTD in Cyprus. Subject is now operating under business registration No. 463043000279 issued by Vietnam Singapore Industrial Park Authority. Its Investment Capital is USD 13,924,600. Mr. Gregoris Charitonos is legal representative and Director of subject.

The head office and factory of subject locates at No. 40 Road No. 6 Vietnam - Singapore 2 IP, Hoa Phu Ward, Thu Dau Mot City, Binh Duong Province. Its premises and facilities are standard with 18,400 square meters. Its factory is constructed basing on GMP - WHO - EU STANDARD. 

Subject specializes in manufacturing pharmaceuticals and medicine for human. It intends to manufacture a wide range of oral solid dosage forms, oral solutions, powder and solutions for injection, dry powders for inhalation, and creams, ointments and suppositories. Its products are supplied for domestic market and exported to international market.

As finance statement, subject has just started to have the sale revenue in 2012. Its revenue and profit were remarkable for young company. Its liquidity ratios are higher than average industry. Its finance situation is average. However, its liabilities were quite high compared to its asset structure. Therefore, there is high risk for huge transaction in short term.

At present, subject is a young company. Its management capability is normal. It has not much reputation and market share in Viet Nam yet. Its parent company is a well-know company in pharmaceutical field in Cyprus with over 37 years experience. Subject received great support from our parent company. Its future prospect seems bright.

In our opinion, subject has capacity to meet normal financial commitments. No caution needed for small business transactions with subject.

 

 

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.59.79

UK Pound

1

Rs.91.03

Euro

1

Rs.78.52

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.