MIRA INFORM REPORT

Report Date :

18.11.2014

IDENTIFICATION DETAILS

Name :	ELLEX MEDICAL PTY LTD
Registered Office :	82, Gilbert Street, Adelaide, South Australia 5000
Country :	Australia
Financials (as on) :	30.06.2014
Date of Incorporation :	28.11.1989
Com. Reg. No.:	008276060
Legal Form :	Australian Proprietary Company, Limited by Shares
Line of Business :	The Subject’s business consists of import, manufacturing and distribution of of lasers and ultrasound systems.
No of Employees :	221

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 :	No Complaints
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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Australia	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

AUSTRALIA - ECONOMIC OVERVIEW

The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, stemming from rising global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia has bilateral free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, has a regional FTA with ASEAN and New Zealand, is negotiating agreements with China, India, Indonesia, Japan, and the Republic of Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council countries, and is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.

Source : CIA

CORPORATE DETAILS

Verified Address

Subject name ELLEX MEDICAL PTY LTD Business address 82 Gilbert Street Town Adelaide Province South Australia Zip / Postal code 5000 Country Australia Telephone +61 8 81045200 / +61 8 81045264 Fax +61 8 81045231 Website www.ellex.com

Registered address 82 Gilbert Street Town Adelaide Province South Australia Zip / Postal code 5000 Country Australia

SUMMARY DETAILS

Report Summary

Date registered 28/11/1989 Legal form Australian Proprietary Company, Limited by Shares Key personnel Victor Konrad Previn Line of business The Subject’s business consist of import, manufacturing and distribution of of lasers and ultrasound systems. Staff employed 221 employees (Ellex Group)

Paid-up capital AUD 27,032.00 Sales turnover / Revenue / Income AUD 54,378,000.00 (Group-Consolidated 12 months, 30/06/2014) Net income / loss AUD 788,000.00 (Group-Consolidated 12 months, 30/06/2014) Total assets AUD 54,228,000.00 (Group-Consolidated 12 months, 30/06/2014) Share equity AUD 36,950,000.00 (Group-Consolidated 12 months, 30/06/2014)

Subject’s Credit Risk Analysis

Country risk Country risk is minimal Operation trend Operational trend is progressing Management experience Management is adequately experienced Financial performance Financial performance is good

Organisation structure Organisational structure is stable Detrimental No detrimental found Payment history No payment delays noted Credit amount requested Not described.

STATUTORY DETAILS

Registry Information

Date registered 28/11/1989 Legal form Australian Proprietary Company, Limited by Shares Registration number Australian Company Number: 008276060 Registered authority Australian Securities and Investments Commission Tax / VAT number Australian Business Number: 35008276060

Statutory status Active Previous name ELLEX (OPERATIONS) PTY LTD TARACAN PTY. LTD. (initial) Change of legal form None reported.

BOARD OF MANAGEMENT

Key Personnel

Name Victor Konrad Previn Designation Managing Director Name Maria Designation Financial Controller

BOARD OF DIRECTORS

Appointments

Name Victor Konrad Previn Title Director Appointment date 08/01/90 Address 30 Marlborough Street College Park, SA 5069 Australia Biography Born on 05-08-1958 in Adelaide, South Australia, Australia. Mr. Victor Previn is the Executive Chairman of the Board of Ellex Medical Lasers Ltd. He was appointed director on 16 July 2001 after the acquisition of Ellex Laser Systems. He is currently an Executive Technical Director who has considerable experience in the ophthalmic laser industry and was one of the original founders and shareholders of Ellex. Name Giuseppe Canala Title Director Appointment date 20/10/08 Address Lot 40 Valley Road Montacute, SA 5134 Australia Biography Born on 21-03-1947 in Ascoli Picenco, Italy. Name Maria Maddalena Maieli Title Company Secretary Appointment date 01/01/13 Address 25 Fifth Avenue Cheltenham, SA 5014 Australia Biography Born on 12-11-1967 in Lanzina, Calabria, Italy.

Staff employed 221 employees (Ellex Group)

Other Appointments

Auditor DELOITTE TOUCHE TOHMATSU Level 17, 11 Waymouth Street Adelaide, SA 5000 Australia

SHARE CAPITAL

Composition

Authorized capital AUD27,032.00 Number / Type of shares 27,032 Ordinary Shares Share par value AUD1.00 Issued capital AUD27,032.00

Paid-up capital AUD27,032.00

OWNERSHIP / SHAREHOLDERS

Composition

Shareholder name ELLEX MEDICAL LASERS LIMITED Address 82 Gilbert Street Adelaide, SA 5000 Australia Number / Type of shares 27,032 Ordinary Shares Percentage (%) of shares 100%

CORPORATE AFFILIATIONS AND RELATED COMPANIES

Structure

Company name ELLEX MEDICAL LASERS LIMITED Affiliation type Parent Company Country of business 82 Gilbert Street Adelaide, SA 5000 Australia Comments Ellex Medical Lasers Limited designs, manufactures, markets, and sells lasers and ultrasound systems for ophthalmologists to diagnose and treat eye diseases. The company offers selective laser trabeculoplasty (SLT)/YAG combination laser systems for the SLT treatment in glaucoma patients under the Tango and Solo names: iTRACK 250 microcatheter for the treatment of open-angle glaucoma; and Ultra Q Reflex, a multi-modality YAG laser with intraocular lenses (IOL), peripheral iridotomy for glaucoma, and YAG laser vitreolysis for the treatment of floaters. It also provides capsulotomy Ultra Q Reflex multi-modality YAG laser for the treatment of vitreous strands and opacities; Ultra Q, a microsurgical YAG laser for IOL-friendly photodisruption; and Super Q, a YAG laser to correct myopia or hyperopia. In addition, the company offers photocoagulators, including Solitaire, a portable green laser for the treatment of retinal disease; Integre Pro, a laser for use in the diagnosis and treatment of retinal disease; and Rapide, a pattern scanning photocoagulator. Further, it provides Eye Cubed, a diagnostic ultrasound system for the posterior and anterior segments of an eye. Additionally, the company is developing Retinal Rejuvenation Therapy, a non-thermal laser therapy for the treatment of diabetic retinopathy and age-related macular degeneration. It also offers a range of third-party medical devices and technologies. The company sells its products directly to end-user customers, as well as through independent third-party distributors in Australia, the United States, Europe, the Middle East, Asia, South America, and internationally. Ellex Medical Lasers Limited is headquartered in Adelaide, Australia. Company name ELLEX (USA) INC Affiliation type Sister Company Country of business United States of America Company name ELLEX (JAPAN) CORPORATION Affiliation type Sister Company Country of business Japan Company name ELLEX DEUTSCHLAND GMBH Affiliation type Sister Company Country of business Germany Company name ELLEX SERVICES EUROPE SARL Affiliation type Sister Company Country of business France

Remarks on corporate affiliations and related companies Other companies of the Ellex group should be considered affiliates of the Subject.

BANK AND MORTGAGES

Bank Details

Name of bank Westpac Banking Corporation Address Australia

Comments It is generally not the policy of local banks to provide credit status information to non-related parties. However, interested parties are advised to first consult with the Subject if banker''s references are required.

Mortgages

None reported.

Legal Filings

Bankruptcy filings None reported. Court judgements None reported.

Tax liens None reported. Others None reported.

FINANCIAL STATISTICS

Description

Financial statement source Public Record Sources Financial statement date 30/06/14 Style of financial statement Full audited

Currency of financial statement Australia Dollar (AUD) Exchange rate 1 USD = AUD 1.15 as of 14-11-2014

Concise Financial Data	Consolidation style	Group Consolidated	Group Consolidated
	Currency	Australia Dollar (AUD)	Australia Dollar (AUD)
	Date of financial year end	30/06/14	30/06/13
	Length of financial accounts	12 months	12 months
	Sales turnover / Revenue / Income	54,378,000.00	42,804,000.00
	Profit / Loss before tax	1,311,000.00	140,000.00
	Net income / loss	788,000.00	-816,000.00
	Non-current assets	25,071,000.00	21,384,000.00
	Property, plant and equipment	3,078,000.00	2,473,000.00
	Current assets	29,157,000.00	25,962,000.00
	Inventories	14,172,000.00	13,587,000.00
	Cash and cash equivalents	1,768,000.00	786,000.00
	Accounts receivable	11,805,000.00	10,242,000.00
	Total assets	54,228,000.00	47,346,000.00
	Current liabilities	13,873,000.00	15,342,000.00
	Non-current liabilities	3,405,000.00	1,175,000.00
	Accounts payable	218,000.00	217,000.00
	Total liabilities	17,278,000.00	16,517,000.00
	Share equity	36,950,000.00	30,829,000.00
	Retained earnings	-2,148,000.00	-2,936,000.00

Remarks

The group consolidated financial statement above relates to the Subject's Parent Company Ellex Medical Lasers Limited and all its subsidiaries.

BUSINESS DETAILS

Operational Details

Main activities The Subject engages in import, manufacturing and distribution of of lasers and ultrasound systems used by ophthalmologists to diagnose and treat eye disease. The Subject is a wholly owned subsidiary of Ellex Medical Lasers Limited, a Public Listed Company on Australian Stock Exchange. Ellex Medical Lasers Limited designs, manufactures, markets, and sells lasers and ultrasound systems for ophthalmologists to diagnose and treat eye diseases. The company offers selective laser trabeculoplasty (SLT)/YAG combination laser systems for the SLT treatment in glaucoma patients under the Tango and Solo names: iTRACK 250 microcatheter for the treatment of open-angle glaucoma; and Ultra Q Reflex, a multi-modality YAG laser with intraocular lenses (IOL), peripheral iridotomy for glaucoma, and YAG laser vitreolysis for the treatment of floaters. It also provides capsulotomy Ultra Q Reflex multi-modality YAG laser for the treatment of vitreous strands and opacities; Ultra Q, a microsurgical YAG laser for IOL-friendly photodisruption; and Super Q, a YAG laser to correct myopia or hyperopia. In addition, the company offers photocoagulators, including Solitaire, a portable green laser for the treatment of retinal disease; Integre Pro, a laser for use in the diagnosis and treatment of retinal disease; and Rapide, a pattern scanning photocoagulator. Further, it provides Eye Cubed, a diagnostic ultrasound system for the posterior and anterior segments of an eye. Additionally, the company is developing Retinal Rejuvenation Therapy, a non-thermal laser therapy for the treatment of diabetic retinopathy and age-related macular degeneration. It also offers a range of third-party medical devices and technologies. The company sells its products directly to end-user customers, as well as through independent third-party distributors in Australia, the United States, Europe, the Middle East, Asia, South America, and internationally. Ellex Medical Lasers Limited is headquartered in Adelaide, Australia. Products and services Photodisruption Photocoagulation Selective Laser Trabeculoplasty Retinal Rejuvenation Therapy Innovative Imaging Brands ELLEX

Purchases

Local The Subject sources its product(s) / material(s) locally.

International The Subject sources its product(s) / material(s) from countries such as Europe, USA and Asia.

Sales

Local The Subject sells its product(s) locally.

International The Subject exports its product(s) to countries such as Europe, USA and Asia.

Business Facilities and Assets

Premises The Subject operates from the verified heading address consisting of a production facility, warehouse and an administrative office.

Branches None reported.

SUMMARIZED COUNTRY RISK

Gross Domestic Products (GDP) and Economic Overview

Central bank Reserve Bank of Australia Reserve of foreign exchange and gold US$ 58.415 billion Gross domestic product (GDP) US$ 1.436 trillion Purchasing power parity (GPP) 1.041 trillion of International dollars GDP per capita (current prices) US$ 61,137 GDP composition by sector agriculture: 3.8% industry: 27.4% services: 68.7% Inflation 2012: 1.8% 2013: 2.5% 2014: 2.3% Unemployment rate 2012: 5.2% 2013: 5.7% 2014: 6.2%

Public debt (general Government gross debt as percentage (%) of GDP) 2012: 27.2% 2013: 28.8% 2014: 30.8% Government bond ratings Standard & Poor's: AAA Moody's rating: Aaa Moody's outlook: STA Market value of publicly traded shares US$1.198 trillion

Trade and Competitiveness Overview

Total exports US$251.7 billion Export commodities Coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport equipment Total imports US$245.8 billion Import commodities Machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products Best countries for doing business 11 out of 189 countries Global competitiveness ranking 22 (ranking by country on a basis of 144, the first is the best)

Major export partners China 29.5%, Japan 19.3%, South Korea 8%, India 4.9% Major import partners China 18.4%, US 11.7%, Japan 7.9%, Singapore 6%, Germany 4.6%, Thailand 4.2%, South Korea 4.1% FDI inflows 2011: US$ 65,209 million 2012: US$ 55,518 million 2013: US$ 49,826 million FDI outflows 2011: US$ 8,702 million 2012: US$ 6,212 million 2013: US$ 6,364 million

Country and Population Overview

Total population 23.485 million Total area 7,741,220 sq km Capital Canberra

Currency Australian dollars (AUD) Internet users as percentage (%) of total population 83.00%

PAYMENT OUTLOOK

Purchases Term

Local Prepayment, Bank transfer, D/P, Credit 30-120 days

International L/C, Prepayment, Telegraphic transfer, D/P, Credit 30-120 days

Sales Term

Local Prepayment, Bank transfer, D/P, Credit 30-120 days

International L/C, Prepayment, Telegraphic transfer, D/P, Credit 30-120 days

Trade Reference / Payment Behaviour

Comments Due to local and international trade references not being supplied, the Subject''s payment track record history cannot be appropriately determined. However, based on our research, payments are believed to be met without delay.

Investigation Note

Sources Interviews and material provided by the Subject Other official and local business sources

Attachments

Attachments Financial statements

KEY FINANCIAL RATIOS

For financial year end	30/06/14	30/06/13	.
Profitability	.	.	.
Pre-tax profit (loss) margin (%)	2.41	0.33
Net profit (loss) margin (%)	1.45	-1.91
Earnings per share (currency based on financial statement)	29.15	-30.19
Return on Invested Capital	.	.	.
Return on assets (%)	1.45	-1.72
Return on equity (%)	2.13	-2.65
Liquidity	.	.	.
Current ratio	2.10	1.69
Quick ratio	1.08	0.81
Cash ratio	0.06	0.03
Accounts receivable turnover ratio (times)	4.61	4.18
Accounts payable turnover ratio (times)	249.44	197.25
Collection period (days)	79.24	87.34
Payment period (days)	1.46	1.85
Inventory turnover ratio (times)	3.84	3.15
Inventory conversion period (days)	95.13	115.86
Asset Management	.	.	.
Fixed asset turnover ratio (times)	17.67	17.31
Asset turnover ratio (times)	1.00	0.90
Capital Structure and Solvency	.	.	.
Total debt to asset ratio (%)	31.86	34.89
Total debt to equity ratio (%)	46.76	53.58
Non-current debt to equity ratio (%)	9.22	3.81

ATTACHMENT

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.68
UK Pound	1	Rs.96.94
Euro	1	Rs.77.36

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TPT

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.