MIRA INFORM REPORT

Report Date :

03.07.2013

IDENTIFICATION DETAILS

Name :	INDIAN HERBAL SRL
Registered Office :	Bucharest, sector 3 – Gura Ialomiei Street No. 6, Bl. H30, Ap. 18
Country :	Romania
Financials (as on) :	31.12.2011
Date of Incorporation :	May, 2008
Legal Form :	Limited liability company, entire Romanian capital
Line of Business :	Wholesale with flowers and plants, according to the National Trade Registry updated files
No. of Employees :	1

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, 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Romania	B	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

COMMERCIAL INFORMATION REPORT

NAME OF THE COMPANY	INDIAN HERBAL SRL
Address	Bucharest, sector 3 – Gura Ialomiei Street No. 6, Bl. H30, Ap. 18
Phone no.	0040-745-135497 0040-720-136643	Fax no.	N/A
Web-site http://www.caranda.ro/	http://www.xxx.ro/www.indianherbal.ro	E-mail address	mailto:office@xxx.rooffice@indianherbal.ro

HISTORIC/OFFICIAL DATA

Date of foundation	May, 2008
Present legal form	Limited liability company, entire Romanian capital
Registered with the Trade Registry	J40/8775/2008
VAT no.	23916970
Registered capital	200 RON (minium share-capital requested by the Law as for a limited liability company)
Shareholders	Unique owner, individual
	Mrs. Mitrea Gabriela Angelica – Romanian citizen, born on 9.11.1983
	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	2008	2009	2010	2011
total	1	1	1	1
BUSINESS ACTIVITY - wholesale with flowers and plants, according to the National Trade Registry updated files (NACE: 4622) According to the company’s web-site - trade with pharmaceuticals, in Ayurveda spirit (Indian traditional medicine) Work-shop, as officially registered with the National Trade Registry 1. Bucharest, sector 3 – Calea Vitan No. 150

OTHER PARTICIPATION

1. Company’s participation	not applicable
2. Shareholders other participation	not applicable
REAL ESTATE / TANGIBLES	None
BANKS	Transilvania Bank
MANAGEMENT as officially registered with the National Trade Registry	Administrator Mrs. Mitrea Gabriela Angelica – appointed on 12.05.2008 for an unlimited period
CURRENCY Exchange rate of EURO	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

FINANCIAL DATA: RON

According to the Ministry of Public Finance databases, the investigated company has not submitted its financial statements for June, 2012

Suite of some regulations issued by the Ministry of the Public Finance, the companies which in the previous fiscal year (2011 – our note) recorded a turnover in RON under the equivalent of EUR 35,000 do not submit intermediary financial statements (for 30.06.2012, our note) during 2012 fiscal year.

The investigated company is founded in this situation.

BALANCE SHEET	31.12.2010	31.12.2011
INTANGIBLES - TOTAL	0	0
TANGIBLES - TOTAL	0	0
FINANCIALS - TOTAL	0	0
FIXED ASSETS - TOTAL	0	0
STOCKS - TOTAL	15,694	39,335
CLAIMS - TOTAL	30,151	39,137
CURRENT ASSETS	49,449	79,230
PREPAID EXPENSES	574	501
DEBTS WITHIN 1 YEAR	617	3,541
DEBTS OVER 1 YEAR	80,291	102,899
PROVISIONS	0	0
ADVANCED INCOMES	0	0
REGISTERED CAPITAL	200	200
RESERVES	0	0
LOSSES CARRIED FORWARD	18,358	31,084
NET RESULT - PROFIT	0	4,175
NET RESULT - LOSS	12,727	0
NET WORTH	-30,885	-26,709
PROFIT & LOSS ACCOUNT	31.12.2010	31.12.2011
Turnover	108,503	86,722
Own production & services	175	88
Sales	108,328	86,634
INCOMES FROM ORDINARY OPERATING ACTIVITY	108,523	86,723
Raw materials	10,453	11,388
Costs of goods sold	65,531	41,776
Wages	4,622	4,644
Depreciations & provisions	0	0
Other operating costs	34,497	16,842
COSTS OF ORDINARY OPERATING ACTIVITY	117,753	81,828
ORDINARY OPERATING RESULT - PROFIT	0	4,895
ORDINARY OPERATING RESULT - LOSS	9,230	0
FINANCIAL INCOMES	242	10
FINANCIAL COSTS	514	730
FINANCIAL RESULT - PROFIT	0	0
FINANCIAL RESULT - LOSS	272	720
CURRENT RESULT - PROFIT	0	4,175
CURRENT RESULT - LOSS	9,502	0
Extraordinary incomes	0	0
Extraordinary costs	0	0
EXTRAORDINARY RESULT - PROFIT	0	0
EXTRAORDINARY RESULT - LOSS	0	0
TOTAL INCOMES	108,765	86,733
TOTAL COSTS	118,267	82,558
PRETAX RESULT - PROFIT	0	4,175
PRETAX RESULT - LOSS	9,502	0
TAX ON PROFIT	3,225	0
NET RESULT - PROFIT	0	4,175
NET RESULT - LOSS	12,727	0

N.B.: any difference occurred between former report and the present one regarding some positions of the “Balance Sheet” or P/L Account for the end of the previous years 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 31.12.2011. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 31.12.2011

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

Size

micro, considering the number of employees

Position & trend

Small business, with similarly returns.

The figures at hand reveal a modest financial standing, but correct payments behaviour (as for the investigated date).

Considering that fresher financials are not available, yet, based on the data at hand, we do appreciate the business contacts are feasible, but any contemplated credit based transaction should be secured. Credit facilities without safe modalities of payment are not recommended.

Company’s situation should be checked at a later date.

31.12.2008

31.12.2009

31.12.2010

31.12.2011

Turnover

RON

18,856

86,046

108,503

86,722

EURO

4,752

20,351

25,323

20,076

Gross profit

RON

510

-16,081

-9,502

4,175

EURO

128

-3,803

-2,218

967

Net profit

RON

36

-18,393

-12,727

4,175

EURO

9

-4,350

-2,970

967

31.12.2011

CREDITS & LOANS (ACTIVE BALANCE)

none

BALANCE CLAIMS-DEBTS

negative

Total claims

39,137

clients & trade debtors

36,351

Total debts

106,440

- Short term

3,541

suppliers & trade creditors

2,857

to the Social Insurance

434

- Medium term

102,899

to the shareholders

102,899

PAYMENTS BEHAVIOR

Seems correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded in the period 1.07.2012 – 1.07.2013

2008

2009

2010

2011

Unusual values

Liquidity analysis

- current ratio

30.26

4.13

80.14

22.38

- quick ratio

26.40

2.17

54.71

11.27

Solvability analysis

Constant unsatisfactory; even negative net worth since 2009

- the borrowing ratio (total debts/net worth)

91.87

-3.66

-2.62

-3.99

Profitability analysis (%)

Recovered from losses, but still modest

- return on capital

15.26

Loss

Loss

-15.63

- return on assets

0.17

Loss

Loss

5.24

- gross profit margin

2.71

Loss

Loss

4.81

Activity analysis

Debtors out of control!

- debtor’s days

359

79

101

165

- creditor’s days:

n/a

n/a

n/a

n/a

Stocks turnover, times/year

6.83

3.80

6.91

2.20

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.41
UK Pound	1	Rs.90.38
Euro	1	Rs.77.61

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.