MIRA INFORM REPORT

Report Date :

13.06.2014

IDENTIFICATION DETAILS

Name :	QUALICAPS ROMANIA SRL
Registered Office :	Bucharest, Sos Chitilei No. 423M, Sector 1
Country :	Romania
Financials (as on) :	31.12.2013
Date of Incorporation :	May 2008
Legal Form :	Limited Liability Company, Joint Venture of Romanian and Spanish Capital
Line of Business :	· Engaged in production of other chemical products · Subject is part of “The Qualicaps Group” – global supplier of two-piece pharmaceutical capsules, equipment and technology
No of Employees :	87 (2013)

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	Regular
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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Romania	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 & 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.comHYPERLINK "http://www.neobautech.ro" http://www.caranda.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 – Romanian legal person

Address: Prahova county / Cornu No. 1168B, DN 1, Km 96+200

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

2009

2010

2011

2012

2013

total

104

94

87

90

87

BUSINESS ACTIVITY

- Production of other chemical products

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, sector 1 – Soseaua Chitilei No. 423M

OTHER PARTICIPATION

1. Company’s participation

not applicable

2. Shareholders other participation

not applicable

REAL ESTATE

(RON)

- lands & buildings

- equipment

2010

2011

2012

2013

252,871

250,991

232,304

213,618

56,982,803

49,620,376

42,458,085

34,176,762

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 = 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	31.12.2011	31.12.2012	31.12.2013
INTANGIBLES - TOTAL	207,142	130,916	42,412
TANGIBLES - TOTAL	50,479,911	43,506,080	34,745,592
FINANCIALS - TOTAL	0	0	0
FIXED ASSETS - TOTAL	50,687,053	43,636,996	34,788,004
STOCKS - TOTAL	8,059,191	11,284,862	5,598,761
CLAIMS - TOTAL	5,163,346	9,271,238	11,293,697
CURRENT ASSETS	26,353,095	23,685,298	24,178,105
PREPAID EXPENSES	3,484,368	1,476,102	0
DEBTS WITHIN 1 YEAR	19,876,066	19,868,675	13,247,330
DEBTS OVER 1 YEAR	37,384,492	18,595,280	6,167,707
PROVISIONS	130,494	0	0
ADVANCED INCOMES	0	0	0
REGISTERED CAPITAL	54,943,712	54,943,712	54,943,712
RESERVES	56,029	386,953	847,784
LOSSES CARRIED FORWARD	32,930,831	31,866,277	24,996,224
NET RESULT - PROFIT	1,120,583	7,200,977	9,216,631
NET RESULT - LOSS	0	0	0
NET WORTH	23,133,464	30,334,441	39,551,072
PROFIT & LOSS ACCOUNT	31.12.2011	31.12.2012	31.12.2013
Turnover	48,155,401	52,227,004	52,792,401
Own production & services	48,112,853	52,037,564	52,734,318
Sales	42,548	44,929	58,083
INCOMES FROM ORDINARY OPERATING ACTIVITY	50,481,645	49,703,472	52,553,085
Raw materials	12,557,944	14,996,918	15,486,760
Costs of goods sold	41,788	43,096	67,996
Wages	6,822,055	7,778,193	8,289,810
Depreciations & provisions	8,127,353	8,233,718	8,093,943
Other operating costs	8,808,224	8,777,389	9,956,537
COSTS OF ORDINARY OPERATING ACTIVITY	43,766,976	44,060,624	47,795,575
ORDINARY OPERATING RESULT - PROFIT	6,714,669	5,642,848	4,757,510
ORDINARY OPERATING RESULT - LOSS	0	0	0
FINANCIAL INCOMES	10,908,656	14,577,548	7,328,013
FINANCIAL COSTS	16,502,742	13,019,419	2,868,892
FINANCIAL RESULT - PROFIT	0	1,558,129	4,459,121
FINANCIAL RESULT - LOSS	5,594,086	0	0
CURRENT RESULT - PROFIT	1,120,583	7,200,977	9,216,631
CURRENT RESULT - LOSS	0	0	0
Extraordinary incomes	0	0	0
Extraordinary costs	0	0	0
EXTRAORDINARY RESULT - PROFIT	0	0	0
EXTRAORDINARY RESULT - LOSS	0	0	0
TOTAL INCOMES	61,390,301	64,281,020	59,881,098
TOTAL COSTS	60,269,718	57,080,043	50,664,467
PRETAX RESULT - PROFIT	1,120,583	7,200,977	9,216,631
PRETAX RESULT - LOSS	0	0	0
TAX ON PROFIT	0	0	0
NET RESULT - PROFIT	1,120,583	7,200,977	9,216,631
NET RESULT - LOSS	0	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 31.12.2013. 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

medium, considering the total no. of employees.

Position & trend

Large and generally increasing volume of activity, with recovering economic results beginning with 2011. Turnover was rather steady in 2013 compared to 2012, while gross profit got increased with 26% (in EURO). Still, there are uncovered losses from the previous periods, in amount of 5,573,667 EURO.

Payments behavior looks correct, no delays being reported.

Financial standing got improved up to a high one.

Business trend: ascending.

31.12.2009

31.12.2010

31.12.2011

31.12.2012

31.12.2013

Turnover

RON

24,720,770

38,525,089

48,155,401

52,227,004

52,792,401

EURO

5,846,642

8,991,106

11,147,858

11,792,852

11,771,668

Gross profit

RON

-17,202,811

-13,790,656

1,120,583

7,200,977

9,216,631

EURO

4,068,590

-3,218,506

259,412

1,625,980

2,055,128

Net profit

RON

17,219,289

-13,812,656

1,120,583

7,200,977

9,216,631

EURO

4,072,487

-3,223,641

259,412

1,625,980

2,055,128

31.12.2012

CREDITS & LOANS (ACTIVE BALANCE)

none

BALANCE CLAIMS-DEBTS

negative

Total claims

11,293,697

clients & trade debtors

9,542,894

Total debts

19,415,037

- Short term

13,247,330

suppliers

12,776,157

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

471,173

- Medium term

6,167,707

suppliers

6,069,477

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

98,230

PAYMENTS BEHAVIOR

Correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded during 11.06.2013 – 11.06.2014

FINANCIAL STRENGTH

11,256 tsd EURO

BUSINESS RELATIONS

Permissible

2009

2010

2011

2012

2013

Increased up to very good in 2013

Liquidity analysis

- current ratio

0.31

1.43

1.33

1.19

1.83

- quick ratio

0.19

0.96

0.92

0.62

1.40

Solvability analysis

Improving; very good level in 2013

- the borrowing ratio (total debts/net worth)

-6.90

2.87

2.48

1.27

0.49

Profitability analysis (%)

Improving; very good since 2012

- return on capital

loss

loss

4.84

23.74

23.30

- return on assets

loss

loss

1.39

10.47

15.63

- gross profit margin

loss

loss

2.33

13.79

17.46

Activity analysis

Rather within normal limits, lately

- debtor’s days

151

130

39

32

78

- creditor’s days

135

121

146

65

88

Stocks turnover, times/year

3

5

6

5

9

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.33
UK Pound	1	Rs.99.68
Euro	1	Rs.80.30

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	MNL

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.