MIRA INFORM REPORT

Report Date :

06.07.2013

IDENTIFICATION DETAILS

Name :	QUALICAPS ROMANIA SRL

Registered Office :	Bucharest, Sos Chitilei No. 423M, Sector 1

Country :	Romania

Financials (as on) :	30.06.2012

Date of Incorporation :	May, 200

Legal Form :	Limited liability company, joint venture of Romanian and Spanish capital

Line of Business :	Production of other chemical products (two-piece pharmaceutical capsules, equipment and technology)

No. of Employees :	93

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 – March 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Romania

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 name and address

NAME OF THE COMPANY	QUALICAPS ROMANIA SRL
Address	Bucharest, Sos Chitilei No. 423M, Sector 1
Phone no. Cell phone no.	0040-372-193200 0040-423-475706	Fax no.	0040-372-710290
Web-site	www.qualicaps.com	E-mail address	contact@qualicaps.ro

HISTORIC/OFFICIAL DATA

Date of foundation	May, 2008
Present legal form	Limited liability company, joint venture of Romanian and Spanish capital
Registered with the Trade Registry	J40/7912/2008
VAT no.	23830038
Registered capital	54,943,712 RON
Shareholders	Legal persons
	1.QUALICAPS EUROPE S.A. – Spanish legal person
	Address: Spain, Madrid, 49 Calle Granja, Alcobendas
	Participation			99.999958%
	2.TECHNOPAR EQUIPMENT AND SERVICE SRL
	Address: Romania, Prahova county, Cornu, DN 1, Km 96+200, No. 1168B
	Participation			0.000042%

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	30.06.2012
total	70	104	94	87	93
BUSINESS ACTIVITY - Production of other chemical products (two-piece pharmaceutical capsules, equipment and technology) Company is part of “The Qualicaps Group” - global supplier of two-piece pharmaceutical capsules, equipment and technology. Work-shop, as officially registered with the National Trade Registry Bucharest, Sos Chitilei No. 423M, Sector 1
OTHER PARTICIPATION
1. Company’s participation	not applicable
2. Shareholders other participation	not applicable
TANGIBLES*	46,873,476 RON, at 30.06.2012 *According to the accounting standards, for the middle of the year the company is no more obliged to detail its tangible assets, anymore. Therefore, the real estates are included in “Tangibles” position among the other assets
BANKS	n/a
MANAGEMENT · as officially registered with the National Trade Registry	Administrators 1.Carlos Martinez Sierra – Spanish citizen, born on 31.01.1948 Appointed on 22.04.2009 for unlimited period 2. Howe Keith Brian – American citizen, born on 3.12.1957 Appointed on 6.03.2012 for unspecified period 3. Brust Bernd – American citizen, born on 7.03.1967 Appointed on 6.03.2012 for unspecified period 4. Hans Christian Moxter Feld – German citizen, born on 6.12.1960 Appointed on 12.02.2009 for unlimited period
CURRENCY Exchange rate of EURO	1 EURO = 3.3817 RON on 31.12.2006 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 = 4.2341 RON on 30.06.2011 1 EURO = 4.3197 RON on 31.12.2011 1 EURO = 4.4494 RON on 30.06.2012

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2011	30.06.2012

INTANGIBLES - TOTAL	207,142	161,835
TANGIBLES - TOTAL	50,479,911	46,873,476
FINANCIALS - TOTAL	0	0
FIXED ASSETS - TOTAL	50,687,053	47,053,311
STOCKS - TOTAL	8,059,191	7,561,887
CLAIMS - TOTAL	5,163,346	10,822,926
CURRENT ASSETS	26,353,095	29,511,959
PREPAID EXPENSES	3,484,368	1,894,660
DEBTS WITHIN 1 YEAR	19,876,066	21,029,485
DEBTS OVER 1 YEAR	37,384,492	31,331,896
PROVISIONS	130,494	0
ADVANCED INCOMES	0	0
REGISTERED CAPITAL	54,943,712	54,943,712
RESERVES	56,029	56,029
LOSSES CARRIED FORWARD	32,930,831	31,866,277
NET RESULT - PROFIT	1,120,583	2,947,085
NET RESULT - LOSS	0	0
NET WORTH	23,133,464	26,080,549

PROFIT & LOSS ACCOUNT	30.06.2011	30.06.2012
Turnover	28,463,259	29,307,365
Own production & services	28,443,672	29,275,952
Sales	42,548	31,413
INCOMES FROM ORDINARY OPERATING ACTIVITY	26,466,605	26,595,987
Raw materials	6,392,470	8,047,077
Costs of goods sold	41,788	29,899
Wages	3,124,841	3,532,227
Depreciations & provisions	4,063,934	4,103,490
COSTS OF ORDINARY OPERATING ACTIVITY	21,348,453	21,307,681
ORDINARY OPERATING RESULT - PROFIT	5,118,152	5,288,306
ORDINARY OPERATING RESULT - LOSS	0	0
FINANCIAL INCOMES	7,310,428	5,293,612
FINANCIAL COSTS	4,153,467	7,634,833
FINANCIAL RESULT - PROFIT	3,156,961	2,341,221
FINANCIAL RESULT - LOSS	0
CURRENT RESULT - PROFIT	8,275,113	2,947,085
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	33,777,033	31,889,599
TOTAL COSTS	25,501,920	28,942,514
PRETAX RESULT - PROFIT	8,275,113	2,947,085
PRETAX RESULT - LOSS	0	0
TAX ON PROFIT	0	0
NET RESULT - PROFIT	8,275,113	2,947,085
NET RESULT - LOSS	0	0

N.B.: any difference occurred between former report and the present one regarding some positions of the “Balance Sheet” 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 30.06.2012. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 30.06.2012

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

Size

medium, considering the total no. of employees.

Position & trend

Large and generally increasing volume of activity, but considering the age of the company and also its field of activity, the economic results are fluctuating. Turnover was rather steady at June 2012 compared to June 2011, while gross profit registered a decreasing with 66% (in EURO) due to the losses from financials. Still, there are uncovered losses from the previous periods, in amount of 7,161,927 EURO.

Payments behavior looks correct, no delays being reported.

Financial standing looks rather satisfactory.

Concluding, we do appreciate the business relationships are permissible but considering especially the age of the subject and also the high level of uncovered previous losses, a further review is suggested.

31.12.2008

31.12.2009

31.12.2010

30.06.2011

31.12.2011

30.06.2012

Turnover

RON

3,895,622

24,720,770

38,525,089

28,463,259

48,155,401

29,307,365

EURO

977,522

5,846,642

8,991,106

6,722,387

11,147,858

6,586,813

Gross profit

RON

-1,898,886

-17,202,811

-13,790,656

8,275,113

1,120,583

2,947,085

EURO

-476,484

4,068,590

-3,218,506

1,954,397

259,412

662,356

Net profit

RON

-1,898,886

17,219,289

-13,812,656

8,275,113

1,120,583

2,947,085

EURO

-476,484

4,072,487

-3,223,641

1,954,397

259,412

662,356

30.06.2012

CREDITS & LOANS (ACTIVE BALANCE)

none

BALANCE CLAIMS-DEBTS

negative

Total claims

10,822,926

clients & trade debtors

9,568,710

Total debts

52,361,381

- Short term

21,029,485

NO FURTHER DETAILS ARE AVAILABLE

- Medium term

31,331,896

NO FURTHER DETAILS ARE AVAILABLE

PAYMENTS BEHAVIOR

Correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded during 28.06.2012 – 28.06.2013

RISK CATEGORY

Above normal

BUSINESS RELATIONS

Permissible

CREDIT LIMIT

Considering the large level of the losses carried forward, any contemplated amount should remain at the suppliers disposal. A further review is suggested.

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.

2008

2009

2010

2011

30.06.2012

Increasing up to very good lately

Liquidity analysis

- current ratio

0.32

0.31

1.43

1.33

1.40

- quick ratio

0.21

0.19

0.96

0.92

1.04

Solvability analysis

Got improved up to an acceptable indebtedness rate

- the borrowing ratio (total debts/net worth)

45.78

-6.90

2.87

2.48

2.01

Profitability analysis (%)

Recovering form consecutive losses

- return on capital

loss

4.84

11.30

- return on assets

loss

1.39

3.76

- gross profit margin

loss

2.33

10.06

Activity analysis

Debtors days seems normal considering the filed of activity

- debtor’s days

609

151

130

135

- creditor’s days

3,042

135

121

n/a

Stocks turnover, times/period

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.34
UK Pound	1	Rs.90.78
Euro	1	Rs.77.81

INFORMATION DETAILS

Report Prepared by :

PRL

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.

MIRA INFORM REPORT

Company name and address

HISTORIC/OFFICIAL DATA

FINANCIAL DATA: RON

Unit