MIRA INFORM REPORT

Report Date :

07.11.2013

IDENTIFICATION DETAILS

Name :	QUALICAPS ROMANIA SRL
Registered Office :	Bucharest, Sos Chitilei No. 423M, Sector 1
Country :	Romania
Financials (as on) :	31.12.2012
Date of Incorporation :	May, 2008
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 :	90

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	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 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 http://www.caranda.ro/	www.qualicaps.comhttp://www.neobautech.ro/	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	2012
total	70	104	94	87	90
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 involved as shareholder in any other Romanian company
2. Shareholders other participation	not applicable
REAL ESTATE (RON)
- lands & buildings	2010	2011	2012
	252,871	250,991	232,304
- equipment	56,982,803	49,620,376	42,458,085
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 = 3.6102 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	207,142	130,916
TANGIBLES - TOTAL	50,479,911	43,506,080
FINANCIALS - TOTAL	0	0
FIXED ASSETS - TOTAL	50,687,053	43,636,996
STOCKS - TOTAL	8,059,191	11,284,862
CLAIMS - TOTAL	5,163,346	9,271,238
CURRENT ASSETS	26,353,095	23,685,298
PREPAID EXPENSES	3,484,368	1,476,102
DEBTS WITHIN 1 YEAR	19,876,066	19,868,675
DEBTS OVER 1 YEAR	37,384,492	18,595,280
PROVISIONS	130,494	0
ADVANCED INCOMES	0	0
REGISTERED CAPITAL	54,943,712	54,943,712
RESERVES	56,029	386,953
LOSSES CARRIED FORWARD	32,930,831	31,866,277
NET RESULT - PROFIT	1,120,583	7,200,977
NET RESULT - LOSS	0	0
NET WORTH	23,133,464	30,334,441
PROFIT & LOSS ACCOUNT	31.12.2011	31.12.2012
Turnover	48,155,401	52,227,004
Own production & services	48,112,853	52,037,564
Sales	42,548	44,929
INCOMES FROM ORDINARY OPERATING ACTIVITY	50,481,645	49,703,472
Raw materials	12,557,944	14,996,918
Costs of goods sold	41,788	43,096
Wages	6,822,055	7,778,193
Depreciations & provisions	8,127,353	8,233,718
Other operating costs	8,808,224	8,777,389
COSTS OF ORDINARY OPERATING ACTIVITY	43,766,976	44,060,624
ORDINARY OPERATING RESULT - PROFIT	6,714,669	5,642,848
ORDINARY OPERATING RESULT - LOSS	0	0
FINANCIAL INCOMES	10,908,656	14,577,548
FINANCIAL COSTS	16,502,742	13,019,419
FINANCIAL RESULT - PROFIT	0	1,558,129
FINANCIAL RESULT - LOSS	5,594,086	0
CURRENT RESULT - PROFIT	1,120,583	7,200,977
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	61,390,301	64,281,020
TOTAL COSTS	60,269,718	57,080,043
PRETAX RESULT - PROFIT	1,120,583	7,200,977
PRETAX RESULT - LOSS	0	0
TAX ON PROFIT	0	0
NET RESULT - PROFIT	1,120,583	7,200,977
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

medium, considering the total no. of employees.

Position & trend

Large and generally increasing volume of activity, with recovering economic results beginning with 2011. Turnover is slightly increasing, with 6% (in EURO) in 2012 compared to 2011, while the returns got spectacularly increased. Still, there are uncovered losses from the previous periods, in amount of 7,195,402 EURO.

Payments behavior looks correct, no delays being reported.

Financial standing got improved up to a good one.

Business trend: ascending.

31.12.2008

31.12.2009

31.12.2010

31.12.2011

31.12.2012

Turnover

RON

3,895,622

24,720,770

38,525,089

48,155,401

52,227,004

EURO

977,522

5,846,642

8,991,106

11,147,858

11,792,852

Gross profit

RON

-1,898,886

-17,202,811

-13,790,656

1,120,583

7,200,977

EURO

-476,484

4,068,590

-3,218,506

259,412

1,625,980

Net profit

RON

-1,898,886

17,219,289

-13,812,656

1,120,583

7,200,977

EURO

-476,484

4,072,487

-3,223,641

259,412

1,625,980

31.12.2012

CREDITS & LOANS (ACTIVE BALANCE)

none

BALANCE CLAIMS-DEBTS

negative

Total claims

9,271,238

clients & trade debtors

7,517,539

Total debts

38,463,955

- Short term

19,868,675

suppliers

18,942,336

other debts, including fiscal debts & dues to the Social Insurance

926,339

- Medium term

18,595,280

suppliers

18,523,377

other debts, including fiscal debts & dues to the Social Insurance

71,903

PAYMENTS BEHAVIOR

Correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded during 29.10.2012 – 29.10.2013

FINANCIAL STRENGTH

7,700 tsd EURO

RISK CATEGORY

Normal

BUSINESS RELATIONS

Permissible

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

2012

Generally satisfactory

Liquidity analysis

- current ratio

0.32

0.31

1.43

1.33

1.19

- quick ratio

0.21

0.19

0.96

0.92

0.62

Solvability analysis

Got improved up to a rather good level of indebtedness rate

- the borrowing ratio (total debts/net worth)

45.78

-6.90

2.87

2.48

1.27

Profitability analysis (%)

Recovering up to very good

- return on capital

loss

loss

loss

4.84

23.74

- return on assets

loss

loss

loss

1.39

10.47

- gross profit margin

loss

loss

loss

2.33

13.79

Activity analysis

Within normal limits, lately

- debtor’s days

609

151

130

39

32

- creditor’s days

3,042

135

121

146

65

Stocks turnover, times/period

1

3

5

6

5

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.6192
UK Pound	1	Rs.99.60
Euro	1	Rs.83.74

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.