MIRA INFORM REPORT

Report No. :	304959
Report Date :	31.01.2015

IDENTIFICATION DETAILS

Name :	VINH PHUC PHARMACEUTICAL JSC

Registered Office :	777 Me Linh St Khai Quang Ward Vinh Yen City, Vinh Phuc

Country :	Vietnam

Financials (as on) :	31.12.2013

Date of Incorporation :	03.02.2009

Legal Form :	Joint Stock Company

Line of Business :	Manufacturer of Medical Equipment & Pharmaceutical.

No. of Employee :	720

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 :	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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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 20% in 2013, while industry's share increased from 36% to more than 42% in the same period. State-owned enterprises account for about 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 2013 growing at 5%, the slowest rate of growth since 1999. In 2013, however, exports increased by more than 12%, 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 relatively stable in 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 has been made. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses.

Source : CIA

REGISTERED NAME & COMPANY SUMMARY

Company Details
Organization Name	:	VINH PHUC PHARMACEUTICAL JSC ⁽¹⁾
Address	:	777 Me Linh St Khai Quang Ward Vinh Yen City, Vinh Phuc
Country	:	Vietnam
Phone (S)	:	[+84] 211-3861233
Facsimile	:	[+84] 211-3862774
Email	:	vinphaco@vnn.vn
Website	:	http://www.vinphaco.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Medical Equipment & Pharmaceutical

Key Facts
Registered Legal Address	:	777 Me Linh St Khai Quang Ward Vinh Yen City, Vinh Phuc
Operational Address	:	777 Me Linh St Khai Quang Ward Vinh Yen City, Vinh Phuc
Trading Name	:	VINPHACO JSC
Issuing Authority	:	Dept. of Planning & Investment - Vinh Phuc
License Number	:	2500228415
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	:	3 Feb, 2009
Employees	:	720
Capital	:	US$ 1,897,713
Note	:	⁽¹⁾ Legal status of the English corporate name The English name of the Subject Business Entity (SBE) is a randomly selected translation / transliteration made by the owners of the SBE. It is not a registered English corporate name, but simply a translation / transliteration of the local language name.

Report Details

Country	:	Vietnam
Business Entity Name	:	VINH PHUC PHARMACEUTICAL JSC
Primary Business Activity	:	Manufacturer
Primary Industry	:	Medical Equipment & Pharmaceutical
Office Contact Details
Operating Address	:	777 Me Linh St Khai Quang Ward Vinh Yen City, Vinh Phuc
Tel	:	[+84] 211-3861233
	:	[+84] 211-3862706
Fax	:	[+84] 211-3862774
Email	:	vinphaco@vnn.vn
Website Details
Website	:	http://www.vinphaco.vn
Status	:	Normal - operational
Country of Registration	:	Vietnam
Tax / VAT Details
Tax Issuing Authority	:	Ministry of Finance
Local Name Used	:	Gia Trj Gia Tang (Value Added Tax)
Acronym	:	GTGT / VAT
GTGT / VAT Number	:	2500228415
Date of Issuance	:	7 Jun, 2004

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Ms. Vu Thi Binh	Vietnamese	Chief Accountant	-
2	Mr. Do Ngoc Son	Vietnamese	Managing Director	-
3	Mr. Dang Tuong Van	Vietnamese	Deputy Managing Director	-

Management Details - 1

Personal Unique Identifier	:	MI03818734
Name	:	Ms. Vu Thi Binh
Date of Birth	:	1969

Management Details - 2

Personal Unique Identifier	:	MI03818730
Name	:	Mr. Do Ngoc Son
Date of Birth	:	1974

Management Details - 3

Personal Unique Identifier	:	MI03818733
Name	:	Mr. Dang Tuong Van
Date of Birth	:	1974

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03818730
Name	:	Mr. Do Ngoc Son
Date of Birth	:	1974

2
Personal Unique Identifier	:	MI03818732
Name	:	Mr. Nguyen Van Truong
Date of Birth	:	1980

NEGATIVE INFORMATION

	REPUTATION
	Reference checking for the purpose of establishing VINH PHUC 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

CIVIL 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	:	₫ 40,419,200,000
Paid-up Capital	:	₫ 40,419,200,000

Date	Authorized Capital - History
31 Dec, 2011	30,314,000,000
2013	40,419,200,000

Date	Paid-up Capital - History
31 Dec, 2011	30,314,000,000
2013	40,419,200,000

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	24,041,340,160	59.48
2	Mr. Nguyen Van Truong	Vietnam	n/a	11,232,495,680	27.79
3	Ms. Vu Thi Binh	Vietnam	n/a	2,922,308,160	7.23
4	Mr. Dang Tuong Van	Vietnam	n/a	1,394,462,400	3.45
5	Ms. Pham Thi Lan Huong	Vietnam	n/a	424,401,600	1.05
6	Mr. Nguyen Anh Tuan	Vietnam	n/a	404,192,000	1.00
Total			n/a	40,419,200,000	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 - Secured with Post-dated checks 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 - Secured with Post-dated checks 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	Turnover	Assets	Net Income
2011 Annual	23,384,494	16,710,418	366,971
2012 Annual	28,316,381	17,501,990	956,990
2013 Annual (*)	28,803,225	18,614,867	1,161,746

Sales Trend – Analysis

2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
-	-	-	-	-	-	-	-

Note: (*)

Financials listed are the most recent available for this company.

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Current Assets(*)	252,350,000,000	273,433,000,000	306,361,000,000
Non Current Assets(*)	95,728,000,000	91,040,000,000	86,191,000,000
Non Current Liabilities(*)	32,595,000,000	41,688,000,000	54,052,000,000
Share Capital(*)	30,314,000,000	30,314,000,000	40,419,000,000
Other long term assets
Total Assets(*)	348,078,000,000	364,473,000,000	392,552,000,000
Total Liabilities(*)	309,974,000,000	312,484,000,000	321,070,000,000
Current Liabilities(*)	277,379,000,000	270,796,000,000	267,018,000,000
Long term liabilities
Shareholders Funds(*)	38,104,000,000	51,989,000,000	71,482,000,000

Current assets & short term investments	252,350,000,000	273,433,000,000	306,361,000,000
Cash & cash equivalents	32,025,000,000	30,662,000,000	44,821,000,000
Cash	32,025,000,000	30,662,000,000	44,821,000,000
Accounts receivable	126,684,000,000	173,930,000,000	178,893,000,000
Accounts receivable trade	117,794,000,000	161,775,000,000	169,862,000,000
Trade prepayment	8,110,000,000	11,365,000,000	14,748,000,000
Others receivables	1,676,000,000	3,096,000,000	829,000,000
Provision for bad debts	(896,000,000)	(2,306,000,000)	(6,546,000,000)
Inventories	89,689,000,000	67,322,000,000	81,721,000,000
i. Inventories	90,008,000,000	67,710,000,000	82,729,000,000
Provision for decline in inventory	(319,000,000)	(388,000,000)	(1,008,000,000)
Other short term asset	3,952,000,000	1,519,000,000	926,000,000
Prepaid expenses	369,000,000	239,000,000	337,000,000
VAT deductible	2,502,000,000	904,000,000	529,000,000
Other tax receivables	-	-	11,000,000
i. Other short term asset	1,081,000,000	376,000,000	49,000,000
Long term assets	95,728,000,000	91,040,000,000	86,191,000,000
Fixed assets	87,714,000,000	81,581,000,000	75,726,000,000
Tangible fixed assets	86,189,000,000	77,299,000,000	74,592,000,000
Cost	155,878,000,000	160,121,000,000	167,131,000,000
Accumulated depreciation	69,689,000,000	82,822,000,000	92,539,000,000
Intangible fixed assets	402,000,000	488,000,000	362,000,000
i. Cost	569,000,000	767,000,000	797,000,000
i. Accumulated depreciation	167,000,000	279,000,000	435,000,000
Construction in progress	1,123,000,000	3,794,000,000	772,000,000
Other long term assets	8,014,000,000	9,459,000,000	10,465,000,000
Long term prepayments	8,014,000,000	9,459,000,000	10,465,000,000
Total assets	348,078,000,000	364,473,000,000	392,552,000,000
Liabilities	309,974,000,000	312,484,000,000	321,070,000,000
Current liabilities	277,379,000,000	270,796,000,000	267,018,000,000
Short term borrowings	113,879,000,000	103,789,000,000	122,318,000,000
Accounts payables-trade	149,572,000,000	120,119,000,000	112,883,000,000
Advances from customers	942,000,000	19,197,000,000	10,955,000,000
Taxes and payable to state budget	4,131,000,000	6,963,000,000	5,921,000,000
Payable to employees	7,151,000,000	8,606,000,000	12,539,000,000
Accrued expenses payable	29,000,000	414,000,000	579,000,000
Other payables	1,675,000,000	1,532,000,000	875,000,000
Provision for short term payable	-	10,080,000,000	-
Bonus and welfare funds	-	96,000,000	948,000,000
Long term liabilities	32,595,000,000	41,688,000,000	54,052,000,000
Long term borrowings	31,169,000,000	38,906,000,000	54,052,000,000
Provision funds for unemployment	1,426,000,000	2,782,000,000	-
Owner's equity	38,104,000,000	51,989,000,000	71,482,000,000
i. Owner's equity	37,900,000,000	51,989,000,000	71,482,000,000
Business capital	30,314,000,000	30,314,000,000	40,419,000,000
Business development funds	698,000,000	1,080,000,000	2,076,000,000
Financial reserved funds	1,519,000,000	1,901,000,000	3,895,000,000
Retained earnings	5,369,000,000	18,694,000,000	25,092,000,000
Budget sources	204,000,000	-	-
i. Bonus and welfare funds	204,000,000	-	-
Total resources	348,078,000,000	364,473,000,000	392,552,000,000

Note: (*)

Financial Highlights

INCOME STATEMENT

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Turnover(*)	487,099,000,000	589,679,000,000	607,405,000,000
Profit (Loss) Before Tax(*)	9,627,000,000	25,001,000,000	31,542,000,000
Profit After Tax attributable to Shareholders(*)	7,644,000,000	19,929,000,000	24,499,000,000

Gross sales	487,099,000,000	589,679,000,000	607,405,000,000
Less deductions	14,922,000,000	5,391,000,000	5,220,000,000
Net income	472,176,000,000	584,288,000,000	602,185,000,000
Cost of goods sold	345,968,000,000	434,141,000,000	432,835,000,000
Gross margin	126,208,000,000	150,147,000,000	169,350,000,000
Income from financial activities	4,766,000,000	1,476,000,000	226,000,000
Expenses from financial activities	25,859,000,000	23,433,000,000	17,015,000,000
In which: Interest expenses	0	21,798,000,000	16,362,000,000
Selling expenses	61,305,000,000	58,838,000,000	65,857,000,000
General & administration expenses	31,196,000,000	45,990,000,000	55,525,000,000
Net income from operating activities	12,615,000,000	23,362,000,000	31,179,000,000
Extraordinary income	662,000,000	1,685,000,000	367,000,000
Extraordinary expenses	3,650,000,000	46,000,000	4,000,000
Extraordinary gains	(2,988,000,000)	1,639,000,000	363,000,000
Net profit before tax	9,627,000,000	25,001,000,000	31,542,000,000
Income tax	1,982,000,000	5,072,000,000	7,043,000,000
Income tax delay	0	0	0
Net profit after tax	7,644,000,000	19,929,000,000	24,499,000,000

Note: (*)

Financial Highlights

FINANCIAL RATIOS

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Growth %
Year-on-Year Growth	-	21.06	3.01
Profitability
Profit Margin (%)	1.57	3.38	4.03
Return on Equity (%)	20.06	38.33	34.27
Return on Assets (%)	2.20	5.47	6.24
Leverage
Total Debt Equity (Times)	8.13	6.01	4.49
Current Debt Equity (Times)	7.28	5.21	3.74
Long Term Debt to Equity	0.86	0.80	0.76
Total Asset To Total Equity	9.13	7.01	5.49
Asset Management
Total Assets Turnover (Times)	1.40	1.62	1.55
Fixed Assets Turnover (Times)	5.09	6.48	7.05
Liquidity
Current Ratio	0.91	1.01	1.15

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 basic 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

Primary Products

Products / Materials / Services Description	Activity
Pharmaceutical preparations	Manufacturing, Exporting

International Trade - Statistics (Currency: USD - US Dollar)

Year	Imports	Exports	Total
2011	n/a	18,707,595	18,707,595
2012	n/a	22,653,105	22,653,105
2013	n/a	23,042,580	23,042,580

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Pharmaceutical preparations	2834	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Pharmaceutical goods (specified sterile prod etc.)	3006	Manufacturing, Exporting
Pharmaceutical products	3000	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of VINH PHUC PHARMACEUTICAL JSC is Manufacturing - Finished products.

Key product include :

Pharmaceutical preparations

Supplementary Business

In addition to the core business, VINH PHUC 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	20%
International Sales (Export)	80%

Annual Purchases Analysis	Percentage
Local Purchases	20%
Imports	80%

BANK DETAILS

Bank Name	:	JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
Global Identifier	:	P1072025
Branch	:	Hanoi
Branch Address	:	JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM, VINH PHUC
SWIFT Code	:	BFTVVNVX

Bank Name	:	JOINT STOCK COMMERCIAL BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM
Global Identifier	:	32400483
Branch	:	Hoan Kiem Dist,Hanoi
Branch Address	:	JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - VINH PHUC
SWIFT Code	:	BIDVVNVX

Bank Name	:	VIETNAM INTERNATIONAL COMMERCIAL JOINT STOCK BANK
Global Identifier	:	P2461558
Branch Address	:	VIETNAM INTERNATIONAL COMMERCIAL JOINT STOCK BANK - VINH PHUC
SWIFT Code	:	VNIBVNVX

Bank Name	:	VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY & TRADE
Global Identifier	:	32404058
Branch	:	Hoan Kiem Dist,Hanoi
Branch Address	:	VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE - BINH XUYEN, VINH PHUC
SWIFT Code	:	ICBVVNVX

Bank Name	:	VIETNAM MARITIME COMMERCIAL JOINT STOCK BANK JSC
Global Identifier	:	32404826
Branch	:	Dong Da,Hanoi
Branch Address	:	VIETNAM MARITIME COMMERCIAL JOINT STOCK BANK JSC - VINH YEN, VINH PHUC, NGO QUYEN WARD 2 NGO QUYEN
SWIFT Code	:	MCOBVNVX

LOCAL BRANCHES & MANAGEMENT

Branch	:	VINH PHUC PHARMACEUTICAL JSC - CAM LE DIST, DA NANG
Branch Address	:	513 Nguyen Huu Tho St, Cam Le Dist, Da Nang

Branch	:	VINH PHUC PHARMACEUTICAL JSC - CAU GIAY DIST, HANOI
Branch Address	:	16M1 Yen Hoa Urban Area Yen Hoa Ward, Cau Giay Dist, Hanoi

Branch	:	VINH PHUC PHARMACEUTICAL JSC - DISTRICT 10, HO CHI MINH
Branch Address	:	42/16 Nguyen Gian Thanh St Ward 15, District 10, Ho Chi Minh

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
Europe	Medium	Importing
Cambodia	Medium	Exporting
Laos	Medium	Exporting

OFFICE & FACILITIES

The following information relates to the Business Entity's office as listed above:

Name	:	VINH PHUC PHARMACEUTICAL JSC - VINH PHUC
Primary Use	:	Office & Administration facilities
Address	:	777 Me Linh St Khai Quang Ward Vinh Yen City, Vinh Phuc
Country	:	Vietnam
Status	:	Operational

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
23 Jun, 2004	1903000089

NOTES & COMMENTS

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.76
UK Pound	1	Rs.93.13
Euro	1	Rs.70.03

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	ANK

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.