MIRA INFORM REPORT

Report Date :

30.12.2014

IDENTIFICATION DETAILS

Name :	PRO SANI PRO SRL
Registered Office :	Sibiu county, Sura Mare commune, Sura Mare village – 452 Principala Street
Country :	Romania
Financials (as on) :	31.12.2013
Date of Incorporation :	May, 2008
Legal Form :	Limited liability company
Line of Business :	Wholesale of chemical products
No. of Employees :	03

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Romania	B1	B1

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 EU 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 due 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. As a result of the global financial crisis, Romania signed on to a $26 billion emergency assistance package from the IMF, the EU, and other international lenders. GDP contracted from 2009 to 2011. 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. In September 2013, the Romanian authorities and the IMF/EU agreed to a follow-on stand-by agreement, worth $5.4 billion, to continue with reforms, although Bucharest announced that it does not intend to draw funds under the agreement. Economic growth accelerated in 2013, driven by strong industrial exports and an excellent agricultural harvest; in December 2013 inflation dropped to a historical low annual rate of 1.6%; and the current account deficit was reduced substantially. Yet, progress on structural reforms is uneven and the economy still is vulnerable to shocks

Source : CIA

Company name and address

NAME OF THE COMPANY

PRO SANI PRO SRL

Address

Sibiu county, Sura Mare commune, Sura Mare village – 452 Principala Street

Phone no.

Cell phone no.

0040-269-543207 ; 210955

0040-752-158630

0040-754-074099

0040-749-184990

Fax no.

0040-269-543570

Web-site

www.prosanipro.ro

E-mail address

office@prosanipro.ro

vanzari@prosanipro.ro

purchase@prosanipro.ro

economic@prosanipro.ro

HISTORIC/OFFICIAL DATA

Date of foundation

May, 2008

Present legal form

Limited liability company, entire Austrian capital

Registered with the Trade Registry

J32/773/2008

VAT no.

23823154

Registered capital

3,564 RON

Shareholders

Individual – unique owner

Vogelsang Cristina Carmen – Austrian citizen, born on 23.11.1966 in Romania

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

2009

2010

2011

2012

2013

total

1

1

4

3

3

BUSINESS ACTIVITY

- Wholesale of chemical products, according to the national Trade Registry updated files (NACE: 4675)

According to the company’s web-site

Import and distribution of:

• Pest-killers, micro- and macro-packed
• Herbicides, fungicides, insecticides
• Foliar fertilizers
• Fertilizers
• Seeds
• Seeds treatments
• Public hygiene products
• Anti-rats products
• “Purina” fodder
• Agricultural accessories

Business partners: InterForst, TAYOsis, Purina, Kollant, Witasek, Sharda International

OTHER PARTICIPATION

1. Company’s participation

not applicable

2. Shareholders other participation

H & V FLOROM SRL – Reg. no.: J32/67/2002, VAT 14418209

REAL ESTATE (RON)

2009

2010

2011

2012

2013

- lands

N/A

0

0

N/A

0

- buildings

N/A

0

0

N/A

0

- equipment

N/A

34,150

115,524

N/A

87,735

BANKS

N/A

MANAGEMENT

· as officially registered with the National Trade Registry

Vogelsang Cristina Carmen – Administrator

Appointed on 20.10.2014 for unlimited period

CURRENCY

Exchange rate of EURO

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

1 EURO = 4.4847 RON on 31.12.2013

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2010	31.12.2011	31.12.2012	31.12.2013
INTANGIBLES - TOTAL	563	519	N/A	72,033
TANGIBLES - TOTAL	34,150	112,524	N/A	87,735
FINANCIALS - TOTAL	0	0	N/A	150
FIXED ASSETS - TOTAL	34,713	113,043	185,790	159,918
STOCKS - TOTAL	545,621	1,015,281	1,443,726	717,212
CLAIMS - TOTAL	400,733	657,162	372,565	377,248
CURRENT ASSETS	1,030,149	1,753,859	1,896,397	1,127,800
PREPAID EXPENSES	3,581	4,520	3,189	3,244
DEBTS WITHIN 1 YEAR	1,136,774	1,995,118	N/A	1,303,393
DEBTS OVER 1 YEAR	220,927	54,411	N/A	627,858
TOTAL DEBTS	1,357,701	2,049,529	2,532,493	1,931,251
PROVISIONS	0	0	0	0
ADVANCED INCOMES	0	0	621	0
REGISTERED CAPITAL	3,564	3,564	3,564	3,564
RESERVES from reassessment of the fixed assets	0	0	N/A	0
RESERVES	0	0	N/A	0
PROFITS CARRIED FORWARD	-45,315	-292,910	N/A	-451,302
NET RESULT - PROFIT	0	62,219	0	0
NET RESULT - LOSS	247,507	0	220,611	195,022
NET WORTH	-289,258	-227,127	-447,738	-642,760
PROFIT & LOSS ACCOUNT	31.12.2010	31.12.2011	31.12.2012	31.12.2013
Turnover	672,335	2,653,497	2,234,434	2,887,035
Own production & services	0	9,199	N/A	61,333
Sales	672,335	2,644,298	N/A	2,825,702
INCOMES FROM ORDINARY OPERATING ACTIVITY	675,467	2,655,199	N/A	2,887,952
Raw materials	10,846	59,771	N/A	51,745
Costs of goods sold	547,630	1,857,037	N/A	2,215,862
Wages	39,448	99,251	N/A	199,119
Depreciations & provisions	13,375	26,238	N/A	70,479
Other operating costs	211,669	467,755	N/A	358,370
COSTS OF ORDINARY OPERATING ACTIVITY	836,717	2,543,778	N/A	2,953,831
ORDINARY OPERATING RESULT - PROFIT	0	111,421	N/A	0
ORDINARY OPERATING RESULT - LOSS	161,250	0	N/A	65,879
FINANCIAL INCOMES	80,501	95,348	N/A	112,685
FINANCIAL COSTS	163,533	144,550	N/A	241,828
FINANCIAL RESULT - PROFIT	0	0	N/A	0
FINANCIAL RESULT - LOSS	83,032	49,202	N/A	129,143
CURRENT RESULT - PROFIT	0	62,219	N/A	0
CURRENT RESULT - LOSS	244,282	0	N/A	195,022
Extraordinary incomes	0	0	N/A	0
Extraordinary costs	0	0	N/A	0
EXTRAORDINARY RESULT - PROFIT	0	0	N/A	0
EXTRAORDINARY RESULT - LOSS	0	0	N/A	0
TOTAL INCOMES	755,968	2,750,547	2,378,458	3,000,637
TOTAL COSTS	1,000,250	2,688,328	2,599,069	3,195,659
PRETAX RESULT - PROFIT	0	62,219	0	0
PRETAX RESULT - LOSS	244,282	0	220,611	195,022
TAX ON PROFIT	3,225	0	0	0
NET RESULT - PROFIT	0	62,219	0	0
NET RESULT - LOSS	247,507	0	220,611	195,022

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 31.12.2013. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 31.12.2013

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

Size

small, considering the number of employees

Position & trend

Satisfactory business volume, with generally increasing turnover in the investigated period, but mostly negative returns.

According to the financials at hand, the losses are coming quite from the operating activity.

Moreover, due to the registered losses, the equity registered constant negative values, meaning total lack of own sources for financing the activity and a total dependency on borrowed sources, consequently.

Overall, the financial standing looks weak, but the payments behaviour seems correct, no delays being reported.

We do appreciate the business relationships could be considered only under fully secured terms.

The credit facilities are not recommnended. Further review on the company’s situation is suggested.

31.12.2009

31.12.2010

31.12.2011

31.12.2012

31.12.2013

Turnover

RON

79,068

672,335

2,653,497

2,234,434

2,887,035

EURO

18,700

156,912

614,278

504,535

643,752

Gross profit

RON

-50,632

-244,282

62,219

-220,611

-195,022

EURO

-11,975

-57,011

14,404

-49,814

-43,486

Net profit

RON

-52,099

-247,507

62,219

-220,611

-195,022

EURO

-12,322

-57,764

14,404

-49,814

-43,486

31.12.2013

CREDITS & LOANS (ACTIVE BALANCE)

777,803

Bank credits, on medium term (over 1 year)

- payable within 1 year

- payable over 1 year

753,430

125,572

627,858

Other financial loans & afferent interests, on short term (within 1year)

24,373

BALANCE CLAIMS-DEBTS

negative

Total claims

377,248

clients & trade debtors

Total debts

1,931,251

- Short term

1,303,393

suppliers & trade creditors

1,143,039

bank credits

125,572

other financial loans & afferent interests

24,373

to the Social Insurance

3,659

to the State Budget

5,328

other debts

3,877

- Medium term

627,858

bank credits

627,858

PAYMENTS BEHAVIOR

SLOW

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded in the period 24.12.2013 – 24.12.2014

2009

2010

2011

2012

2013

Mostly low

Liquidity analysis

- current ratio

1.91

0.91

0.88

0.75*

0.87

- quick ratio

0.15

0.43

0.37

0.18*

0.32

*because the short term debt and the medium term are N/A, these ratios are calculated considering the total debt.

Solvability analysis

Constant unsatisfactory – constant negative equity

- the borrowing ratio (total debts/net worth)

-10.83

-4.69

-9.02

-5.66

-3.00

Profitability analysis (%)

Unsatisfactory – mostly losses

- return on capital

loss

loss

-27.39

loss

loss

- return on assets

loss

loss

3.32

loss

loss

- gross profit margin

loss

loss

2.34

loss

loss

Activity analysis

Improved debtors’ control up to normal limits

- debtor’s days

134

218

90

61

48

- creditor’s days

n/a

n/a

n/a

n/a

n/a

Stocks turnover, times/year

0.20

1.23

2.61

1.55

4.03

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.65
UK Pound	1	Rs.99.14
Euro	1	Rs.77.60

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIS

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.