MIRA INFORM REPORT

Report Date :

27.11.2013

IDENTIFICATION DETAILS

Name :	VIDIPHA CENTRAL PHARMACEUTICAL JSC

Registered Office :	184/2 Le Van Sy St Ward 10, Phu Nhuan, Ho Chi Minh

Country :	Vietnam

Financials (as on) :	2012

Date of Incorporation :	24.11.2010

Legal Form :	Joint Stock Company

Line of Business :	Manufacturer of medical equipment & pharmaceutical

No. of Employees :	290

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 :	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

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 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

REGISTERED NAME & COMPANY SUMMARY

Company Details

Organization Name	:	VIDIPHA CENTRAL PHARMACEUTICAL JSC
Name in Local Language		CONG TY CO PHAN DUOC PHAM TRUNG UONG VIDIPHA
Address	:	184/2 Le Van Sy St Ward 10, Phu Nhuan, Ho Chi Minh
Country	:	Vietnam
Phone (S)	:	[+84] 8-38440106
Facsimile	:	[+84] 8-38440446
Email	:	vidipha@hcm.vnn.vn
Website	:	http://www.vidipha.com.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Medical Equipment & Pharmaceutical

Key Facts

Registered Legal Address	:	184/2 Le Van Sy St Ward 10, Phu Nhuan, Ho Chi Minh
Trading Name / DBA	:	VIDIPHA
Issuing Authority	:	Dept. of Planning & Investment - Ho Chi Minh
License Number	:	0300470246
License Status	:	License exists - Normal
Legal Form - Category	:	Joint Stock Company
Legal Form	:	Joint Stock Company
Legal Form - Abbreviation	:	JSC
Operational Status of Business	:	Normal
Date of Registration	:	24 Nov, 2010
Employees	:	290
Capital	:	US$ 4,121,189

Report Details

Country	:	Vietnam
Business Entity Name	:	VIDIPHA CENTRAL PHARMACEUTICAL JSC
Primary Business Activity	:	Manufacturer
Primary Industry	:	Medical Equipment & Pharmaceutical
Office Contact Details
Operating Address	:	184/2 Le Van Sy St Ward 10, Phu Nhuan, Ho Chi Minh
Tel	:	[+84] 8-38440106
	:	[+84] 8-38443869
	:	[+84] 8-38440448
Fax	:	[+84] 8-38440446
Email	:	vidipha@hcm.vnn.vn
Website Details
Website	:	http://www.vidipha.com.vn
Status	:	Normal - operational
Country of Registration	:	Vietnam
Ownership Type	:	Registered ownership by Subject Business Entity

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Chairman
Name	:	Mr. Kieu Hung
Nationality	:	Vietnamese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Hoang The Bac	Vietnamese	Chief Accountant	-
2	Mr. Nguyen Van Hoa	Vietnamese	Deputy Managing Director	-
3	Mr. Kieu Hung	Vietnamese	Managing Director	-
4	Ms. Pham Thi Lu	Vietnamese	Director	Production
5	Mr. Nguyen Ngoc Tuan	Vietnamese	Director	Marketing

Management Details - 1

Personal Unique Identifier	:	MI03570261
Name	:	Mr. Hoang The Bac
Date of Birth	:	1977

Management Details - 2

Personal Unique Identifier	:	MI03570284
Name	:	Mr. Nguyen Van Hoa
Date of Birth	:	1965

Management Details - 3

Personal Unique Identifier	:	MI03570239
Name	:	Mr. Kieu Hung
Date of Birth	:	1948

Management Details - 4

Personal Unique Identifier	:	MI03570246
Name	:	Ms. Pham Thi Lu
Date of Birth	:	1953

Management Details - 5

Personal Unique Identifier	:	MI03570259
Name	:	Mr. Nguyen Ngoc Tuan
Date of Birth	:	1957

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03570239
Name	:	Mr. Kieu Hung
Date of Birth	:	1948
Nationality	:	Vietnamese

NEGATIVE INFORMATION

	REPUTATION
	Reference checking for the purpose of establishing the VIDIPHA CENTRAL PHARMACEUTICAL JSC's reputation within the respective industry failed to reveal any adverse information.


	NEGA-SCAN - ADVERSE DATA MONITORING

DISHONORED CHECKS

No Record Found

DEBT

No Record Found

LITIGATION

No Record Found

PERFORMANCE DEFAULTS

No Record Found

ADVERSE LOCAL MEDIA COVERAGE / ADVERSE FILING HISTORY

No Record Found

SHARE & SHARE CAPITAL INFORMATION

CAPITAL (Currency: VND - Vietnam Dong)

Authorized Capital

87,000,000,000

SHAREHOLDERS

Total number of shareholders	:	n/a
Total number of shares	:	n/a

Currency

VND - Vietnam Dong

No.	Shareholders	Country	Shares
No.	Shareholders	Country	Number	Amount (VND)	%
1	UNDISCLOSED SHAREHOLDERS	n/a	n/a	n/a	70.35
2	VIETNAM PHARMACEUTICAL CORP	Vietnam	n/a	n/a	29.65
Total			n/a	n/a	100.00

Based on corporate statutory laws / regulations in Vietnam, there is no requirement for public disclosure of Shareholders. In this case, the Shareholders information was supplied by the Subject Business Entity.
However in the absence of data normally obtained from local Statutory Authorities, it is not possible to verify the accuracy of data supplied and hence is provided as reference ONLY.

PAYMENT INFORMATION

PAYMENT TERMS

Selling

Type

Terms

Local

Cash on delivery (COD)

Credit - Unsecured 30~60 days

Export

Letter of Credit (At-sight)

Telegraphic Transfer (T/T) - Received at time of transaction

Purchasing

Type

Terms

Local

Cash on delivery (COD)

Credit - Unsecured 30~60 days

Import

Letter of Credit (At-sight)

Telegraphic Transfer (T/T) - Executed at time of transaction

GROUP STRUCTURE & AFFILIATED COMPANIES

FINANCIAL INFORMATION

Financials - Summary (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2010 Annual	12,822,884	15,718,009	1,337,814
2011 Annual	13,778,349	18,170,571	1,262,170
2012 Annual	15,177,151	19,617,991	1,033,294

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2010 Annual	2011 Annual	2012 Annual
Current Assets	194,264,000,000	154,588,000,000	189,264,000,000
Non Current Assets	112,080,000,000	223,905,000,000	219,274,000,000
Non Current Liabilities	35,164,000,000	40,641,000,000	34,597,000,000
Share Capital	60,000,000,000	82,870,000,000	82,870,000,000
Other long term assets
Total Assets	306,344,000,000	378,493,000,000	408,538,000,000
Total Liabilities	101,422,000,000	131,967,000,000	155,067,000,000
Current Liabilities	66,258,000,000	91,326,000,000	120,470,000,000
Long term liabilities
Shareholders Funds	204,922,000,000	246,526,000,000	253,471,000,000

Current assets & short term investments	194,264,000,000	154,588,000,000	189,264,000,000
Cash & cash equivalents	9,440,000,000	7,932,000,000	16,192,000,000
Cash	7,940,000,000	7,932,000,000	16,192,000,000
Cash equivalents	1,500,000,000	-	-
Short term investments	25,000,000,000	-	-
Accounts receivable	99,514,000,000	68,458,000,000	83,660,000,000
Accounts receivable trade	50,921,000,000	64,295,000,000	79,540,000,000
Trade prepayment	47,777,000,000	2,348,000,000	4,177,000,000
Others receivables	1,020,000,000	2,019,000,000	147,000,000
Provision for bad debts	(204,000,000)	(204,000,000)	(204,000,000)
Inventories	51,220,000,000	75,740,000,000	85,604,000,000
I. Other short term asset	9,090,000,000	2,458,000,000	3,808,000,000
Prepaid expenses	-	-	429,000,000
VAT deductible	7,979,000,000	2,023,000,000	2,277,000,000
Other tax receivables	23,000,000	-	-
II. Other short term asset	1,088,000,000	435,000,000	1,102,000,000
Long term assets	112,080,000,000	223,905,000,000	219,274,000,000
Fixed assets	103,231,000,000	141,662,000,000	134,184,000,000
Tangible fixed assets	48,106,000,000	132,397,000,000	124,571,000,000
I. Cost	97,757,000,000	179,966,000,000	186,695,000,000
I. Accumulated depreciation	49,651,000,000	47,569,000,000	62,124,000,000
Intangible fixed assets	8,712,000,000	8,508,000,000	8,856,000,000
II. Cost	9,223,000,000	9,223,000,000	9,783,000,000
II. Accumulated depreciation	511,000,000	715,000,000	927,000,000
Construction in progress	46,413,000,000	757,000,000	757,000,000
Long term investments	8,737,000,000	82,225,000,000	85,090,000,000
Invest to subsidiary company	-	77,693,000,000	-
Invest to joint venture company	4,205,000,000	-	80,558,000,000
Other long term investments	4,532,000,000	4,532,000,000	4,532,000,000
Other long term assets	112,000,000	18,000,000	-
Long term prepayments	13,000,000	-	-
Asset of income tax delay	99,000,000	18,000,000	-
Total assets	306,344,000,000	378,493,000,000	408,538,000,000
Liabilities	101,422,000,000	131,967,000,000	155,067,000,000
Current liabilities	66,258,000,000	91,326,000,000	120,470,000,000
Short term borrowings	30,615,000,000	60,900,000,000	82,329,000,000
Accounts payables-trade	22,717,000,000	23,524,000,000	25,303,000,000
Advances from customers	553,000,000	1,856,000,000	9,842,000,000
Taxes and payable to state budget	6,043,000,000	4,635,000,000	1,399,000,000
Payable to employees	910,000,000	-	-
Other payables	5,420,000,000	411,000,000	1,597,000,000
Long term liabilities	35,164,000,000	40,641,000,000	34,597,000,000
Long term borrowings	35,000,000,000	40,597,000,000	34,597,000,000
Provision funds for unemployment	164,000,000	44,000,000	-
I. Owner's equity	204,922,000,000	246,526,000,000	253,471,000,000
II. Owner's equity	200,615,000,000	244,284,000,000	250,740,000,000
Business capital	60,000,000,000	82,870,000,000	82,870,000,000
Share capital surplus	61,803,000,000	77,065,000,000	77,065,000,000
Other owner's equity	13,031,000,000	13,031,000,000	13,031,000,000
Foreign exchange differences	138,000,000	-	-
Business development funds	40,288,000,000	39,701,000,000	49,789,000,000
Financial reserved funds	5,083,000,000	5,817,000,000	6,448,000,000
Retained earnings	20,272,000,000	25,800,000,000	21,537,000,000
Budget sources	4,307,000,000	2,242,000,000	2,731,000,000
Bonus and welfare funds	4,307,000,000	2,242,000,000	2,731,000,000
Total resources	306,344,000,000	378,493,000,000	408,538,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2010 Annual	2011 Annual	2012 Annual
Turnover	249,918,000,000	287,003,000,000	316,059,000,000
Profit (Loss) Before Tax	33,637,000,000	30,822,000,000	25,379,000,000
Profit After Tax attributable to Shareholders	26,074,000,000	26,291,000,000	21,518,000,000

Gross sales	249,918,000,000	287,003,000,000	316,059,000,000
Less deductions	878,000,000	5,327,000,000	2,444,000,000
Net income	249,040,000,000	281,676,000,000	313,615,000,000
Cost of goods sold	189,212,000,000	218,401,000,000	256,339,000,000
Gross margin	59,828,000,000	63,275,000,000	57,276,000,000
Income from financial activities	4,525,000,000	3,697,000,000	(214,000,000)
Expenses from financial activities	5,160,000,000	8,341,000,000	6,430,000,000
In which: Interest expenses	5,115,000,000	5,982,000,000	6,090,000,000
Selling expenses	8,135,000,000	10,053,000,000	9,221,000,000
General & administration expenses	17,446,000,000	19,014,000,000	17,167,000,000
Net income from operating activities	33,612,000,000	29,564,000,000	24,244,000,000
Extraordinary income	410,000,000	1,347,000,000	6,576,000,000
Extraordinary expenses	385,000,000	89,000,000	5,441,000,000
Extraordinary gains	25,000,000	1,258,000,000	1,135,000,000
Net profit before tax	33,637,000,000	30,822,000,000	25,379,000,000
Income tax	7,464,000,000	4,549,000,000	3,861,000,000
Income tax delay	(99,000,000)	18,000,000	-
Net profit after tax	26,074,000,000	26,291,000,000	21,518,000,000

Financial Ratios

Financial Highlights	2010 Annual	2011 Annual	2012 Annual
Growth %
Year-on-Year Growth	-	14.84	10.12
Profitability
Profit Margin (%)	10.43	9.16	6.81
Return on Equity (%)	12.72	10.66	8.49
Return on Assets (%)	8.51	6.95	5.27
Leverage
Total Debt Equity (Times)	0.49	0.54	0.61
Current Debt Equity (Times)	0.32	0.37	0.48
Long Term Debt to Equity	0.17	0.16	0.14
Total Asset To Total Equity	1.49	1.54	1.61
Asset Management
Total Assets Turnover (Times)	0.82	0.76	0.77
Fixed Assets Turnover (Times)	2.23	1.28	1.44
Liquidity
Current Ratio	2.93	1.69	1.57

Based on the corporate laws of Vietnam, legal entities which are Joint Stock Company are not required to make public disclosure of their annual financials. Although financials were obtained for reference.

FOREIGN EXCHANGE RATES

Today's Exchange rate

1.00 VND
Vietnam Dong

0.000047 USD
United States Dollars

ADDITIONAL INFORMATION

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Drugs/Druggists' Sundries	5122	Manufacturing, Exporting
Medical/Dental Equip/Supplies	5047	Manufacturing, Exporting
Medicinals and botanicals	2833	Manufacturing, Exporting
Pharmaceutical preparations	2834	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Antibiotics	2941	Manufacturing, Exporting
Medicaments nesoi, mixed or not, in dosage etc form	3004	Manufacturing, Exporting
Pharmaceutical goods (specified sterile prod etc.)	3006	Manufacturing, Exporting
Pharmaceutical products	3000	Manufacturing, Exporting
Provitamins and vitamins & derivatives & intermixs	2936	Manufacturing, Exporting


	CORE BUSINESS DESCRIPTION

	Core Business
	The primary business focus of VIDIPHA CENTRAL PHARMACEUTICAL JSC is Manufacturing - Finished products. Key products include : Antibiotics Pharmaceutical Analgesics Vitamins An integral part of the core business includes: Distribution

	Supplementary Business
	In addition to the core business, VIDIPHA CENTRAL PHARMACEUTICAL JSC also is engaged in the following areas of business: Exporting Exporting - Finished products Importing Importing - Raw materials

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	60%
International Sales (Export)	40%

Annual Purchases Analysis	Percentage
Local Purchases	30%
Imports	70%

BANK DETAILS

Bank Name	:	VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY & TRADE
Global Identifier	:	32404058
Branch	:	Hoan Kiem Dist,Hanoi
Branch Address	:	NAM SAI GON
SWIFT Code	:	ICBVVNVX

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
Europe	Medium	Importing, Exporting
Cambodia	Medium	Exporting
China	Medium	Importing
Germany	Medium	Importing
Hong Kong	Medium	Exporting
India	Medium	Importing
Malaysia	Medium	Exporting
Netherlands	Medium	Importing
Russia	Medium	Exporting
Taiwan	Medium	Importing
Thailand	Medium	Importing
Ukraine	Medium	Exporting

OFFICE & FACILITIES

Name	:	VIDIPHA CENTRAL PHARMACEUTICAL JSC - PHU NHUAN, HO CHI MINH
Address	:	184/2 Le Van Sy St Ward 10, Phu Nhuan, Ho Chi Minh
Country	:	Vietnam
Status	:	Operational

COMPANY HISTORY

Date	Details
2010 - Nov	Changed legal structure from Government Enterprise to Joint Stock Company.

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
24 Mar, 2003	4103001522

NOTES & COMMENTS

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.45
UK Pound	1	Rs.100.86
Euro	1	Rs.84.50

INFORMATION DETAILS

Report Prepared by :

NIS

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.