MIRA INFORM REPORT

Report Date :

06.12.2013

IDENTIFICATION DETAILS

Name :	FARMEXPERT D.C.I. SRL
Registered Office :	060859 Bucharest, sector 6 – Amilcar C. Sandulescu Street No. 7
Country :	Romania
Financials (as on) :	31.12.2012
Date of Incorporation :	November, 1996
Legal Form :	Limited liability company, entire German capital
Line of Business :	Wholesale of pharmaceutical goods
No. of Employees :	713

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

Maximum Credit Limit :	Over 500,000 EURO
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)
Romania	B2	B2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

ROMANIA - ECONOMIC OVERVIEW

Romania, which joined the European Union on 1 January 2007, began the transition from Communism in 1989 with a largely obsolete industrial base and a pattern of output unsuited to the country's needs. The country emerged in 2000 from a punishing three-year recession thanks to strong demand in EU export markets. Domestic consumption and investment fueled strong GDP growth, but led to large current account imbalances. Romania's macroeconomic gains have only recently started to spur creation of a middle class and to address Romania''s widespread poverty. Corruption and red tape continue to permeate the business environment. Inflation rose in 2007-08, driven by strong consumer demand, high wage growth, rising energy costs, a nation-wide drought, and a relaxation of fiscal discipline. As a result of the increase in fiscal and current account deficits and the global financial crisis, Romania signed on to a $26 billion emergency assistance package from the IMF, the EU, and other international lenders. Worsening international financial markets, as well as a series of drastic austerity measures implemented to meet Romania''s obligations under the IMF-led bail-out agreement contributed to a GDP contraction of 6.6% in 2009, followed by a 1.1% GDP contraction in 2010. The economy returned to positive growth in 2011 due to strong exports, a better than expected harvest, and weak domestic demand. In 2012, however, growth slowed to less than 1%, partially due to slackening export demand and an extended drought that resulted in an exceptionally poor harvest. In March 2011, Romania and the IMF/EU/World Bank signed a 24-month precautionary stand-by agreement, worth $6.6 billion, to promote fiscal discipline, encourage progress on structural reforms, and strengthen financial sector stability. The Romanian authorities announced that they do not intend to draw funds under the agreement.

Source : CIA

Company identification

NAME OF THE COMPANY	FARMEXPERT D.C.I. SRL
Address	060859 Bucharest, sector 6 – Amilcar C. Sandulescu Street No. 7
Phone no.	0040-21-4077711		Fax no.			0040-21- 4077712
Web-site	www.farmexpert.ro		E-mail address			office@farmexpert.ro procurement@farmexpert.ro
HISTORIC/OFFICIAL DATA
Date of foundation	November, 1996
Present legal form	Limited liability company, entire German capital
Registered with the Trade Registry	J40/9802/1996
VAT no.	8955860
Registered capital	9,500,070 RON
Shareholders	Unique owner, legal person
	ALLIANCE HEALTHCARE DEUTSCHLAND AG – German legal person
	Address: Germany / 60486 Frankurt am Main – Solmsstrasse 25
	Participation				100%
Obligation to publish	According to the Romanian Financial Legislation, subject company is obliged to lodge with the Ministry of Public Finance its half-yearly accounts
EMPLOYEES
- total	2007	2008		2009	2010		2011	2012
	83	392		526	638		676	713

BUSINESS ACTIVITY

- Wholesale of pharmaceutical goods, according to the national Trade Registry updated files (NACE: 4646)

According to the company’s web-site

Farmexpert is one of the most important pharmaceutical and para-pharmaceutical distributors in Romania, offering a full range of products and services, in a partnership with 170 manufacturers and over 3,400 pharmacies, hospitals, institutions and doctors.

Farmexpert won its title as a market leader in the Romanian pharmaceutical products distribution sector with a turnover of 445 million euro in 2012.

With a national coverage through 6 affiliates in the main cities of the country (Iasi, Brasov, Ploiesti, Cluj, Timisoara, Bucharest-South), Farmexpert offers its clients a portfolio of approximately 5,800 imported and local products, available on a temporary or a permanent basis.

The distribution to the final client is provided nationwide (~ 10 million km covered every year nationwide ) through its own car fleet( ~ 170 vehicles) specially designed to maintain the quality of the drugs, para-pharmaceutical products and medical devices throughout the entire chain of distribution up to the final consumer.

Branches

1. FARMEXPERT D.C.I. SRL BUCURESTI SUCURSALA CLUJ – J12/3812/2008, VAT 24481335

2. FARMEXPERT D.C.I. SRL BUCURESTI SUCURSALA TIMISOARA – J35/3290/2008, VAT 24464750

3. FARMEXPERT D.C.I. SRL BUCURESTI SUCURSALA SUD – J40/15485/2008, VAT 24452925

4. FARMEXPERT D.C.I. SRL BUCURESTI SUCURSALA BRASOV – J8/2493/2008, VAT 24486901

5. FARMEXPERT D.C.I. SRL BUCURESTI SUCURSALA PLOIESTI – J29/2546/2008, VAT 24471943

6. FARMEXPERT D.C.I. SRL BUCURESTI SUCURSALA IASI – J22/2786/2008, VAT 24471234

Company has also a number of 26 work-shops (including the ware-houses chain: 1 central and 5 regionals), officially registered with the National Trade Registry updated files.

For more details, please visit www.farmexpert.ro

OTHER PARTICIPATION

1. Company’s participation	SKILLS IN HEALTHCARE ROMANIA SRL – J23/1192/2013, VAT 31512671
2. Shareholders other participation	not applicable

REAL ESTATE (RON)

- lands & buildings	2008	2009	2010	2011	2012
	31,403,021	32,525,193	41,910,257	41,816,072	55,753,379

BANKS

Romanian Commercial Bank

MANAGEMENT

as officially registered with the National Trade Registry

Board of the Administration

President of the Board

Thomas Trumper – German citizen, born on 25.04.1950

Appointed on: 28.06.2008; Expiration date of mandate: 28.06.2014

6,422,459

Member of the Board

Ralph Harald Lieb – German citizen, born on 16.08.1963

Appointed on: 1.01.2011; Expiration date of mandate: 5.02.2015

Administrator, legal person

PRO STREAMLINE CONSULTING SRL – Romanian legal person (J23/3237/2010, VAT 27814426)

Appointed on: 1.04.2012; Expiration date of mandate: 1.04.2014

Represented by

Mr. Iulian George Trandafir – Romanian citizen, born on 21.08.1968

Directorship

Member (General Manager)

Iulian George Trandafir – Romanian citizen, born on 21.08.1968

Appointed on: 15.03.2012; Expiration date of mandate: 15.03.2015

Member (Executive Director)

Daniel Stefan – Romanian citizen, born on2.06.1974

Appointed on: 15.03.2012; Expiration date of mandate: 15.03.2015

Member (Executive Director)

Marius Tanase – Romanian citizen, born on 21.07.1978

Appointed on: 15.03.2012; Expiration date of mandate: 15.03.2015

Member (Executive Director)

Emilian Trasnea – Romanian citizen, born on 1.08.1970

Appointed on: 15.03.2012; Expiration date of mandate: 15.03.2015

Member (Executive Director)

Valentin Enea – Romanian citizen, born on 1.12.1970

Appointed on: 15.03.2012; Expiration date of mandate: 15.03.2015

Branch representatives

1. ALDIADI SRL – Romanian legal person (J33/1045/2012, VAT 30976142)

Appointed on: 1.03.2013; Expiration date of mandate: 1.06.2014

Represented by

Diaconita Daniel Solomon – Romanian citizen, born on 31.05.1976

2. CEPENE SRL – Romanian legal person (J24/477/2010, VAT 27213264)

Appointed on: 23.08.2012; Expiration date of mandate: 1.06.2014

Represented by

Schiop Vasile Ciprian –Romanian citizen, born on 23.03.1979

3. DUO TEAM SRL – Romanian legal person (J33/776/2010, VAT 27864300)

Appointed on: 1.02.2011; Expiration date of mandate: 1.06.2014

Represented by

Ciubotariu Sorin – Romanian citizen (the date of birth is N/A)

4. VITAVISION SRL – Romanian legal person (J28/588/2003, VAT 15716262)

Appointed on: 15.02.2011; Expiration date of mandate: 1.06.2014

Represented by

Neacsu Gheorghe – Romanian citizen, born on 04.01.1973

5. PHARMACON MED SRL – Romanian legal person (J22/962/2004, VAT 16417218)

Appointed on: 15.02.2011; Expiration date of mandate: 1.06.2014

Represented by

Esanu Adrian Eugen – Romanian citizen, born on 27.10.1969

6. MARKETING CONSULT SAID SRL – Romanian legal person (J08/2691/2007, VAT 16438660)

Appointed on: 5.09.2010; Expiration date of mandate: 23.08.2012

Represented by

Ciubotariu Daniel – Romanian citizen, born on 1.03.1974

CURRENCY

Exchange rate of EURO

1 EURO = 3.6102 RON on 31.12.2007

1 EURO = 3.9852 RON on 31.12.2008

1 EURO = 4.2282 RON on 31.12.2009

1 EURO = 4.2848 RON on 31.12.2010

1 EURO = 4.3197 RON on 31.12.2011

1 EURO = 4.4287 RON on 31.12.2012

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2011	31.12.2012
INTANGIBLES - TOTAL	586,537	479,031
TANGIBLES - TOTAL	66,290,643	89,287,931
FINANCIALS - TOTAL	0	0
FIXED ASSETS - TOTAL	66,877,180	89,766,962
STOCKS - TOTAL	189,055,366	239,993,482
CLAIMS - TOTAL	926,382,911	1,066,156,687
CURRENT ASSETS	1,174,219,287	1,338,902,065
PREPAID EXPENSES	3,338,041	6,980,059
DEBTS WITHIN 1 YEAR	1,127,188,836	1,319,963,768
DEBTS OVER 1 YEAR	28,523	0
PROVISIONS	7,614,417	7,171,275
ADVANCED INCOMES	0	71,836
REGISTERED CAPITAL	9,500,070	9,500,070
RESERVES from assets reassessment	10,703,718	10,330,529
RESERVES	2,229,565	2,457,530
NET RESULT - PROFIT	86,369,568	86,348,870
NET RESULT - LOSS	0	0
NET WORTH	109,602,732	108,442,207
PROFIT & LOSS ACCOUNT	31.12.2011	31.12.2012
Turnover	1,821,368,650	2,053,874,075
Own production & services	38,322,096	43,024,778
Sales	1,835,684,061	2,092,048,788
Discounts granted	52,637,507	81,199,491
INCOMES FROM ORDINARY OPERATING ACTIVITY	1,830,456,985	2,058,274,836
Raw materials	6,422,805	7,624,347
Costs of goods sold	1,787,643,331	2,070,082,112
Wages	24,173,360	27,774,191
Depreciations & provisions	7,342,457	7,533,212
Other operating costs	105,664,361	95,313,075
COSTS OF ORDINARY OPERATING ACTIVITY	1,746,122,300	1,957,932,285
ORDINARY OPERATING RESULT - PROFIT	84,334,685	100,342,551
ORDINARY OPERATING RESULT - LOSS	0	0
FINANCIAL INCOMES	32,774,470	17,850,052
FINANCIAL COSTS	16,786,104	18,051,281
FINANCIAL RESULT - PROFIT	15,988,366	0
FINANCIAL RESULT - LOSS	0	201,229
CURRENT RESULT - PROFIT	100,323,051	100,141,322
CURRENT RESULT - LOSS	0	0
Extraordinary incomes	0	0
Extraordinary costs	0	0
EXTRAORDINARY RESULT - PROFIT	0	0
EXTRAORDINARY RESULT - LOSS	0	0
TOTAL INCOMES	1,863,231,455	2,076,124,888
TOTAL COSTS	1,762,908,404	1,975,983,566
PRETAX RESULT - PROFIT	100,323,051	100,141,322
PRETAX RESULT - LOSS	0	0
TAX ON PROFIT	13,953,483	13,792,452
NET RESULT – PROFIT	86,369,568	86,348,870
NET RESULT –LOSS	0	0

N.B.: any difference occurred between former reports and the present one regarding some positions of the “Balance Sheet” or P/L Account for previous periods does not belong to us.

The financial data from this report are the ones officially declared by the subject with the Ministry of Public Finance data basis for 31.12.2012. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 31.12.2012

- all figures are reported in RON if otherwise not specified.

Size

Large, considering the number of employees

Position & trend

Farmexpert DCI is one of the leading distributors of pharmaceutical products in Romania.

The figures at hand indicate a continuously increasing turnover in the investigated period and a generally fair financial standing.

The payments behavior is correct, without delays.

This is a solid business and we do appreciate business relationships are feasible and high credit figures are suitable.

	31.12.2007	31.12.2008	31.12.2009	31.12.2010	31.12.2011	31.12.2012
Turnover
RON	425,456,251	613,936,106	1,051,987,166	1,527,411,981	1,821,368,650	2,053,874,075
EURO	117,848,388	154,054,026	248,802,603	356,472,176	421,642,394	463,764,553
Gross profit
RON	12,321,628	8,360,781	47,173,771	67,405,760	100,323,051	100,141,322
EURO	3,413,004	2,097,958	11,156,939	15,731,367	23,224,541	22,611,900
Net profit
RON	10,786,160	6,310,550	39,430,497	53,564,784	86,369,568	86,348,870
EURO	2,987,690	1,583,496	9,325,599	12,501,117	19,994,344	19,497,566

			31.12.2012
CREDITS & LOANS (ACTIVE BALANCE)			30,479,059
Bank credits & other financial loans, on short term (within 1year)			30,479,059
BALANCE CLAIMS-DEBTS			Negative
Total claims			1,066,156,687
clients & trade debtors		835,192,227
other claims		230,964,460
Total debts, 100% on short term			1,319,963,768
suppliers		1,279,120,662
trade creditors		1,333,819
bank credits & other financial loans		30,479,059
other debts, including fiscal debts & dues to the Social Insurance		9,030,228
PAYMENTS BEHAVIOR			correct, no delays reported
PAYMENTS INCIDENTS, as officially recorded with the Payment Incident Bureau	No incidents recorded in the period 2.12.2012 – 2.12.2013

FINANCIAL STRENGTH	28,763 tsd EURO
RISK CATEGORY	Above normal
BUSINESS RELATIONS	Permissible
CREDIT LIMIT	Over 500,000 EURO
Applies to short term credit facilities and should not be construed as a maximum credit limit, which can be only established by the supplier. The credit limit has been set using a formula which takes into consideration the credit rating, and the latest behavioral and financial performances. Other information may of course influence the size of the credit you may grant.

	2007	2008	2009	2010	2011	2012
	Rather good
Liquidity analysis
- current ratio	1.03	1.04	1.05	1.07	1.04	1.02
- quick ratio	0.88	0.81	0.88	0.93	0.87	0.84
Solvability analysis	Unsatisfactory – constant over limited indebtedness rate
- the borrowing ratio (total debts/net worth)	2.08	6.79	6.55	7.24	10.28	10.14
Profitability analysis (%)	Mostly satisfactory
- return on capital	8.00	11.84	46.16	42.68	78.80	79.63
- return on assets	2.60	1.49	6.08	5.13	6.94	6.02
- gross profit margin	2.90	1.36	4.48	4.41	5.50	4.88
Activity analysis	Above normal limits, but specific to its line of business in Romania
- debtor’s days	198	161	166	189	186	189
- creditor’s days	185	187	165	210	216	227
Stocks turnover, times/year	10	7	11	12	10	9

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.69
UK Pound	1	Rs.101.08
Euro	1	Rs.84.07

INFORMATION DETAILS

Report Prepared by :

NNA

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.