MIRA INFORM REPORT

Report Date :

05.02.2013

IDENTIFICATION DETAILS

Name :	PRYVATNE PIDPRYEMSTVO PROGRESFARM
Registered Office :	59, Pivdenna str., Velykiy Dalnyk settlement, Odessa region, Bilyaivskiy district, 67668
Country :	Ukraine
Financials (as on) :	30.06.2012
Date of Incorporation :	25.08.2004
Com. Reg. No.:	33137689
Legal Form :	PP (Private Company by Ukrainian Law)
Line of Business :	Wholesale trade of medicaments.
No. of Employees :	300

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 :	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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Ukraine	B2	B2

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

UKRAINE - ECONOMIC OVERVIEW

After Russia, the Ukrainian republic was the most important economic component of the former Soviet Union, producing about four times the output of the next-ranking republic. Its fertile black soil generated more than one-fourth of Soviet agricultural output, and its farms provided substantial quantities of meat, milk, grain, and vegetables to other republics. Likewise, its diversified heavy industry supplied the unique equipment (for example, large diameter pipes) and raw materials to industrial and mining sites (vertical drilling apparatus) in other regions of the former USSR. Shortly after independence in August 1991, the Ukrainian Government liberalized most prices and erected a legal framework for privatization, but widespread resistance to reform within the government and the legislature soon stalled reform efforts and led to some backtracking. Output by 1999 had fallen to less than 40% of the 1991 level. Ukraine's dependence on Russia for energy supplies and the lack of significant structural reform have made the Ukrainian economy vulnerable to external shocks. Ukraine depends on imports to meet about three-fourths of its annual oil and natural gas requirements and 100% of its nuclear fuel needs. After a two-week dispute that saw gas supplies cutoff to Europe, Ukraine agreed to 10-year gas supply and transit contracts with Russia in January 2009 that brought gas prices to "world" levels. The strict terms of the contracts have further hobbled Ukraine's cash-strapped state gas company, Naftohaz. Outside institutions - particularly the IMF - have encouraged Ukraine to quicken the pace and scope of reforms. Ukrainian Government officials eliminated most tax and customs privileges in a March 2005 budget law, bringing more economic activity out of Ukraine's large shadow economy, but more improvements are needed, including fighting corruption, developing capital markets, and improving the legislative framework. Ukraine's economy was buoyant despite political turmoil between the prime minister and president until mid-2008. Real GDP growth exceeded 7% in 2006-07, fueled by high global prices for steel - Ukraine's top export - and by strong domestic consumption, spurred by rising pensions and wages. A drop in steel prices and Ukraine's exposure to the global financial crisis due to aggressive foreign borrowing lowered growth in 2008. Ukraine reached an agreement with the IMF for a $16.4 billion Stand-By Arrangement in November 2008 to deal with the economic crisis, but the program quickly stalled due to the Ukrainian Government's lack of progress in implementing reforms. The economy contracted nearly 15% in 2009, among the worst economic performances in the world. In April 2010, Ukraine negotiated a price discount on Russian gas imports in exchange for extending Russia's lease on its naval base in Crimea. In August 2010, Ukraine, under the YANUKOVYCH Administration, reached a new agreement with the IMF for a $15.1 billion Stand-By Agreement. Economic growth resumed in 2010 and 2011, buoyed by exports, but slowed in 2012. After initial disbursements, the IMF program stalled in early 2011 due to the Ukrainian Government's lack of progress in implementing key gas sector reforms, namely gas tariff increases.

Source : CIA

Identification

Full Name

:

PRYVATNE PIDPRYEMSTVO PROGRESFARM

Name in English

:

PROGRESSPHARMA, PC

Name in national language

:

Приватне Підприємство ПРОГРЕСФАРМ

Office Address

:

59, Pivdenna str., Velykiy Dalnyk settlement, Odessa region, Bilyaivskiy district, 67668, Ukraine

Legal Address

:

59, Pivdenna str., Velykiy Dalnyk settlement, Odessa region, Bilyaivskiy district, 67668, Ukraine

Contacts

:

-	Phone	:	(+38 048) 7401375, 7401353, 7401354
-	Fax	:	(+38 048) 7401375
-	E-mail	:	secretary@progresspharma.com.ua
-	WWW	:	www.progresspharma.com.ua

SUMMARY

Legal Form : PP (Private Company by Ukrainian Law)

Incorporation : 2004

Staff : 300

Litigation events : n/a Remarks on payments : n/a

Sales :	56 467.90 th UAH ( for 6 months, ended 30.06.2012 )
	133 594.20 th UAH ( for 12 months, ended 31.12.2011 )

Incorporation

:

2004

Registration Data

Date of registration

:

25.08.2004

Registration number

:

33137689

Registr. authority

:

Local Administration (Bilyaivka, Odessa region, Bilyaivskiy district, Ukraine)

Number of the Certificate of State Registration: 173127 Series of the Certificate: A01

VAT number

:

331376815544

Registr. place

:

Ukraine

Number of VAT-certificate: 100093149 Date of issue: 26.01.2008

Legal Form

:

PP (Private Company by Ukrainian Law)

since 25.08.2004

Share Capital

:

2 500 000 UAH (registered)

since 07.09.2012

Shareholders

:

-	Mr Anurag Kumar (India)				100.00 %
		share's book value	:	2 500 000 UAH

Board / Executives

Executives
Director	:	Mr Anurag Kumar (India)
Authorised signature	:	Mr Anurag Kumar

Changes in Registration Data

- 07.09.2012

:

share capital

- 26.02.2009

:

share capital

- 27.12.2007

:

share capital

- 24.09.2007

:

legal address

- 16.02.2006

:

managers, authorised signature

Activities

:

-	5047	Medical/Dental Equip/Supplies
		(NACE 5190: Other wholesale)

Wholesale trade of medicaments.

Staff employed

:

300 [E]

Staff History

:

-	40 [E]
	( the data as of 12.04.2010 )
-	15
	( the data as of 31.03.2010 )
-	15
	( the data as of 31.12.2009 )

Export

- 01.11.2012

:

Fiscal period: 10 month(s), currency: UAH

149 936 024.00

Moldova

- 01.05.2011

:

Fiscal period: 4 month(s), currency: UAH

6 682 048.00

- 01.01.2011

:

Fiscal period: 12 month(s), currency: UAH

22 928 013.00

Import

- 01.11.2012

:

Fiscal period: 10 month(s), currency: UAH

20 691 506.00

India

- 01.05.2011

:

Fiscal period: 4 month(s), currency: UAH

22 885 237.00

- 01.01.2011

:

Fiscal period: 12 month(s), currency: UAH

65 891 047.00

Facilities

Real estate

:

unknown ownership:
-	Premises - Office
	address	:	59, Pivdenna str., Velykiy Dalnyk settlement, Odessa region, Bilyaivskiy district, 67668, Ukraine

Branches

:

none

Subsidiaries and Participation

:

none

Bankers

:

-	Forum (Ukraine)
	bank code	:	388409
	account(s)	:	26002300000143 UAH
-	Ukrsotsbank (Ukraine)
	bank code	:	328016
	account(s)	:	26009665620741 UAH, USD

Clients

:

-	Keyser, LLC (Moldova)
-	Remedium, LLC (Moldova)

Suppliers

:

-	Alembic Pharmaceuticals Limited (India)
-	Dr.Reddy's Laboratories Ltd (India)

Litigation

:

According to the data of Bulletin of the State Registration as of 30.01.2013, there are no bankruptcy registered in the name of the subject company.

Generally in the DB of the Unified State Register of the Legal Judgements data there have been traced 10 court where the subject company is filed as a defendant, co-defendant, claimant and co-claimant in the period from 09.12.2009 up to 29.10.2012 . There are no bankruptcy/insolvency records filed. These litigation processes arise in the course of company's usual operation.

Remarks on payment

:

No official information is available according to the Ukrainian legislation.

Financial Elements

Period, months	6	12	12
Ended	30.06.2012	31.12.2011	31.12.2010
Currency	UAH th	UAH th	UAH th
===== BALANCE SHEET ====================
--- A S S E T S --------------------
NON-CURRENT ASSETS
- Intangible assets
- Fixed assets	585.10	522.00	705.80
- Investments in tangible assets
- Financial assets	0.00	0.00	0.00
- Other non-current assets	0.00	0.00
Non-current assets total	585.10	522.00	705.80
CURRENT ASSETS
- Stock	16 653.60	14 220.40	12 187.40
- Debtors	24 665.90	36 101.70	25 975.80
- Other receivables	6 875.40	8 341.80
- Short-term financial investments	0.00	0.00
- Cash	1 969.50	414.50	241.50
- Other current assets	0.00	285.70
Current assets total	50 164.40	59 364.10	38 559.80
Assets total	50 749.50	59 886.10	39 299.40
--- EQUITY AND LIABILITIES ---------
CAPITAL AND RESERVES
- Share capital	200.10	200.10	200.10
- Additional capital	0.00	0.00
- Other capital	0.00	0.00
- Reserve capital	0.00	0.00
- Retained earnings (Non-covered loss)	178.20	-1 191.60
Capital and reserves total	378.30	-991.50	-6 317.20
Provisions	0.00	0.00
LONG-TERM LIABILITIES
- Loans and credits
- long-term amounts owed to banks
- Other long-term liabilities
Long-term liabilities total	0.00	0.00	0.00
SHORT-TERM LIABILITIES
- Loans and credits	8 400.00	8 400.00
- short-term amounts owed to banks	8 400.00	8 400.00
- Creditors	41 723.10	51 766.30
- trade debts	41 678.90	51 766.10
- accrued payroll	29.80	0.00
- tax liabilities	14.40	0.20
- other creditors
- advances received
- Dividends in arrears
- Accrued income, deferred charges	0.00	0.00
- Other short-term liabilities	248.10	711.30
Short-term liabilities total	50 371.20	60 877.60	45 616.60
Liabilities total	50 371.20	60 877.60	45 616.60
Equity and liabilities total	50 749.50	59 886.10	39 299.40
===== PROFIT AND LOSS ACCOUNT ==========
ORDINARY ACTIVITY INCOME AND CHARGES
Net sales	56 467.90	133 594.20	135 304.10
Cost of goods sold	53 933.80	123 539.90
Gross profit
Distribution costs	2 904.70	5 552.80
Administrative and management costs
Profit on sales
OPERATING INCOME AND CHARGES
Interest receivable
Interest payable
Income from participating interests
Other operating income	1 654.70	2 224.60
Other operating charges	756.00	893.90
Operating profit
INVESTMENT INCOME AND CHARGES
Investment income less charges
Profit before taxation	528.10	5 832.20	-5 967.40
Income-tax and other similar payments	252.20	506.50
Profit (loss) from ordinary activity
Extraordinary income less charges
Net profit	275.90	5 325.70	-5 967.40
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	0.94	4.37	-4.41
Profit before taxation / Net sales
Operating margin of profit, %
Operating profit / Net sales
Return on investment, %	139.60	-588.22	94.46
Profit before taxation / Equity
Current assets turnover	1.13	2.25	3.51
Net sales / Current assets
Working capital	-206.80	-1 513.50	-7 056.80
Current assets - Short-term liabilities
Leverage	0.01	-0.02	-0.16
Equity / Total assets
Current ratio	1.00	0.98	0.85
Current assets / Short-term liabilities
Quick ratio	0.67	0.74	0.58
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	133.15	-61.40	-7.22
Total liabilities / Equity

The company is registered as a taxpayer at the State Tax Administration.

FINAL COMMENTS

The information given in this report was collected from all the sources accessible. We contacted Mrs Alena Kreder (Assistant Director) on 30.01.2013 by the tel. number: +38 048 7401353. She confirmed the general information and asked us to send a questionnaire. An inquiry was sent for the attention of the Director but no answer was received. If the additional information comes in we will update the subject report. Registration file does not contain information about account No 26001000059057 Ukrsotsbank.

Capital History

- 26.02.2009

:

200 100 UAH (registered)

( the data as of 12.04.2010, cancelled since 07.09.2012 )

APPENDIX A

Financial Statements

Period, months	6	12	12
Ended	30.06.2012	31.12.2011	31.12.2010
Currency	UAH th	UAH th	UAH th
SMALL ENTREPRENEUR's PROFIT AND LOSS
ACCOUNT (s)
010 Sales revenue (Income from sales of goods, work,	61 219.90	143 806.70
services
020 Indirect taxes and other compulsory payments	4 752.00	10 212.50
030 Net sales revenue (010-020)	56 467.90	133 594.20
040 Other operating income	1 649.80	2 204.40
050 Other income	4.90	20.20
070 Net revenue total (030+040+050)	58 122.60	135 818.80
080 Cost of goods, works, services	53 933.80	123 539.90
090 Other operating charges	2 904.70	5 552.80
091 incl.
092
100 Other charges	756.00	893.90
120 Charges total (080+090+100)	57 594.50	129 986.60
130 Profit before taxation (070-120)	528.10	5 832.20
140 Profit tax	252.20	506.50
150 Net profit (130-140)	275.90	5 325.70
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
BALANCE SHEET
ASSETS
I. NON-CURRENT ASSETS
020 Construction in progress	0.00	0.00
Fixed assets
030 residual assets	585.10	522.00
031 acquisition cost	1 505.20	1 288.70
032 depreciation	920.10	766.70
Long-term biological assets
035 residual assets
036 acquisition cost
037 depreciation
040 Long-term financial investments	0.00	0.00
070 Other non-current assets	0.00	0.00
080 NON-CURRENT ASSETS TOTAL	585.10	522.00
II. CURRENT ASSETS
Stock
100 Raw materials, consumables and supplies	23.00	5.10
110 Current biological assets
130 Finished goods	16 630.60	14 215.30
Trade debtors:
160 net realizable value	24 665.90	36 101.70
161 acquisition cost	24 665.90	36 101.70
162 doubtful debts reserve	0.00	0.00
Accounts receivable
170 Budget accounts receivable	70.80	148.90
210 Other current accounts receivable	6 804.60	8 192.90
220 Current financial investments	0.00	0.00
Cash at bank and in hand
230 Funds in local currency	1 969.50	414.50
231 incl. cash in hand
240 Funds in foreign currencies	0.00	0.00
250 Other current assets	0.00	285.70
260 CURRENT ASSETS TOTAL	50 164.40	59 364.10
270 III. DEFERRED CHARGES	0.00	0.00
275 IV. NON-CURRENT ASSETS HELD FOR SALE
280 ASSETS TOTAL	50 749.50	59 886.10
EQUITY AND LIABILITIES
I. CAPITAL AND RESERVES
300 Authorized capital	200.10	200.10
320 Additional contributed capital	0.00	0.00
340 Reserve capital	0.00	0.00
350 Retained earnings (loss)	178.20	-1 191.60
360 Unpaid capital (minus)	0.00	0.00
380 CAPITAL AND RESERVES TOTAL	378.30	-991.50
430 II. PROVISIONS OF DEFERRED CHARGES	0.00	0.00
AND TARGETED FUNDING
480 III. LONG-TERM LIABILITIES	0.00	0.00
IV. SHORT-TERM LIABILITIES
500 Short-term amounts owed to credit institutions	8 400.00	8 400.00
510 Short-term portion of long-term liabilities	0.00	0.00
530 Trade creditors	41 678.90	51 766.10
Accounts payable:
550 Budget accounts payable	0.00	0.20
570 Insurance payments	14.40	0.00
580 Accrued payroll	29.80	0.00
605 Liabilities connected with non-current assets held
for sale
610 Other short-term liabilities	248.10	711.30
620 SHORT-TERM LIABILITIES TOTAL	50 371.20	60 877.60
630 V. DEFERRED INCOME	0.00	0.00
640 EQUITY AND LIABILITIES TOTAL	50 749.50	59 886.10

- 31.12.2010

:

Fiscal period: 12 month(s), currency: UAH, th
SMALL ENTREPRENEUR's PROFIT AND LOSS
ACCOUNT (s)
010 Sales revenue (Income from sales of goods, work,	135 304.10
services
020 Indirect taxes and other compulsory payments	3 965.20
030 Net sales revenue (010-020)	131 338.90
040 Other operating income	462.60
050 Other income from ordinary activity	3.50
060 Extraordinary income	0.00
070 Net revenue total (030+040+050+060)	131 805.00
080 Change in work-in-progress and finished goods	0.00
090 Tangible expenses	499.90
100 Payroll costs	412.70
110 Allocation to social needs	218.30
120 Amortization charges	209.20
130 Other operating charges	2 766.80
131 incl.	0.00
140 Cost of sales	128 712.10
150 Other ordinary activity expenses	4 953.40
160 Extraordinary charges	0.00
170 Profit tax	0.00
180 Charges total (090+100+110+120+130+140+150+	137 772.40
+160+170+ -080)
190 Net profit (070-180)	-5 967.40
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
BALANCE SHEET
ASSETS
I. NON-CURRENT ASSETS
020 Construction in progress	0.00
Fixed assets
030 residual assets	705.80
031 acquisition cost	1 109.00
032 depreciation	403.20
Long-term financial assets
040 Capital participation in other enterprises	0.00
070 Other non-current assets	0.00
080 NON-CURRENT ASSETS TOTAL	705.80
II. CURRENT ASSETS
Stock
100 Raw materials, consumables and supplies	132.00
130 Finished goods	12 055.40
Trade debtors:
160 net realizable value	23 633.80
161 acquisition cost	23 633.80
162 doubtful debts reserve	0.00
Accounts receivable
170 Budget accounts receivable	198.60
210 Other current accounts receivable	2 143.40
220 Current financial investments	0.00
Cash at bank and in hand
230 Funds in local currency	241.50
240 Funds in foreign currencies	0.00
250 Other current assets	155.10
260 CURRENT ASSETS TOTAL	38 559.80
270 III. DEFERRED CHARGES	33.80
280 ASSETS TOTAL	39 299.40
EQUITY AND LIABILITIES
I. CAPITAL AND RESERVES
300 Authorized capital	200.10
320 Additional contributed capital	0.00
340 Reserve capital	0.00
350 Retained earnings (loss)	-6 517.30
360 Unpaid capital (minus)	0.00
380 CAPITAL AND RESERVES TOTAL	-6 317.20
430 II. PROVISIONS FOR EXPENSES AND	0.00
LIABILITIES
480 III. LONG-TERM LIABILITIES	0.00
IV. SHORT-TERM LIABILITIES
500 Short-term amounts owed to credit institutions	4 000.00
510 Short-term portion of long-term liabilities	0.00
530 Trade creditors	41 029.60
Accounts payable:
550 Budget accounts payable	6.10
570 Insurance payments	0.00
580 Accrued payroll	0.00
610 Other short-term liabilities	580.90
620 SHORT-TERM LIABILITIES TOTAL	45 616.60
630 V. DEFERRED INCOME	0.00
640 EQUITY AND LIABILITIES TOTAL	39 299.40

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.97
UK Pound	1	Rs.83.17
Euro	1	Rs.72.20

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.