MIRA INFORM REPORT

Report Date :

09.09.2014

IDENTIFICATION DETAILS

Name :	ZAO VERTEKS
Registered Office :	Ul Tipanova d 8, kv 100, 196135 g Sankt-Peterburg
Country :	Russia
Financials (as on) :	31.12.2013
Date of Incorporation :	07.12.1999
Com. Reg. No.:	1037821026484
Legal Form :	Closed and joint-stock companies
Line of Business :	Manufacture of basic pharmaceutical products
No. of Employees	Not Available

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 :	Satisfactory
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)
Russia	A2	B1

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

RUZSSIA ECONOMIC OVERVIEW

Russia has undergone significant changes since the collapse of the Soviet Union, moving from a globally-isolated, centrally-planned economy towards a more market-based and globally-integrated economy, but stalling as a partially reformed, statist economy with a high concentration of wealth in officials' hands. Economic reforms in the 1990s privatized most industry, with notable exceptions in the energy and defense-related sectors. The protection of property rights is still weak and the private sector remains subject to heavy state interference. Russia is one of the world's leading producers of oil and natural gas and is also a top exporter of metals such as steel and primary aluminum. Russia's manufacturing sector is generally uncompetitive on world markets and is geared toward domestic consumption. Russia's reliance on commodity exports makes it vulnerable to boom and bust cycles that follow the volatile swings in global prices. The economy, which had averaged 7% growth during 1998-2008 as oil prices rose rapidly, was one of the hardest hit by the 2008-09 global economic crisis as oil prices plummeted and the foreign credits that Russian banks and firms relied on dried up. Slowly declining oil prices over the past few years and difficulty attracting foreign direct investment have contributed to a noticeable slowdown in GDP growth rates. In late 2013, the Russian Economic Development Ministry reduced its growth forecast through 2030 to an average of only 2.5% per year, down from its previous forecast of 4.0 to 4.2%. In 2014, following Russia's military intervention in Ukraine, prospects for economic growth declined further, with expections that GDP growth could drop as low as zero

Source : CIA

Company name and address

ZAO "VERTEKS"

ul Tipanova d 8, kv 100,
196135 g Sankt-Peterburg

Tel: 78002000305
Telefax: 78123293041
E-Mail: vertex@vertex.spb.ru
Web: www.vertex.spb.ru

Company summary

Legal form

Closed and joint-stock companies (ZAO)

Established on

07/12/1999 - Closed and joint-stock companies (ZAO)

Registered on

04/02/2003, INSPEKTSIYA MNS ROSSII PO MOSKOVSKOMU RAYONU SANKT-PETERBURGA, RegNr.: 1037821026484 Tax number: 7810180435 Statistical number: 52164484

Registered capital

RUB

10 500,-

Stockholders

Rossii Grazhdane

%

100

Sole Executive Body

GEORGIY EDUARDOVICH POBELYANSKIY Managing director

General data

Main activity: Manufacture of basic pharmaceutical products

(24.41)

Full name:
Zakrytoe aktsionernoe obshchestvo "VERTEKS"

Name in foreign language:
j.-s.Co. "VERTEX"

Short name:
ZAO "VERTEKS"

Residence address:
ul Tipanova d 8, kv 100, 196135 g Sankt-Peterburg

Permanent address:
24-ya liniya V.O. d 27-A, 199106 g Sankt-Peterburg
Tel:
78123295684
78002000305
Telefax:
78123293041
E-Mail:
vertex@vertex.spb.ru
Web:
www.vertex.spb.ru

The main activity of ZAO “VERTEKS” is production of pharmaceutical products under the brands “ASPIKOR”, “GINOKOMFORT”, “MON AMI”, “ALERANA, “NORMAVEN”, “REDERM”, etc.

Other activities

:

Manufacture of pharmaceutical preparations

(24.42)

Manufacture of pharmaceutical preparations

(24.42.1)

Manufacture of pharmaceutical preparations

(24.42.2)

Manufacture of perfumes and toilet preparations

(24.52)

Agents specializing in the sale of particular products or ranges of products n.e.c.

(51.18.1)

Wholesale of perfume and cosmetics

(51.45.1)

Wholesale of pharmaceutical goods

(51.46.1)

Letting of own property

(70.2)

Research and experimental development on natural sciences and engineering

(73.10)

Business and management consultancy activities

(74.14)

Technical testing and analysis

(74.30.1)

Technical testing and analysis

(74.30.3)

Annual turnover

31/12/2007

Enterprise turnover

RUB

533 163 000,-

31/12/2008

Enterprise turnover

RUB

811 021 000,-

31/12/2009

Enterprise turnover

RUB

1 232 036 000,-

31/12/2010

Enterprise turnover

RUB

1 904 218 000,-

31/12/2011

Enterprise turnover

RUB

2 105 158 000,-

31/12/2012

Enterprise turnover

RUB

2 407 702 000,-

31/12/2013

Enterprise turnover

RUB

2 339 970 000,-

Events, negative data

27.04.2012 - Legal debt collection procedure Remark: A56-25189/2012

Remarks

ZAO “VERTEKS” has following licenses: - FS 99-02-000209 «Pharmaceutical activity: The wholesale trade», temporary unlimited - № 11247-LS-P «The production of medicines for medical use”, valid until 10.06.2016 According to the research, through managing director of ZAO “VERTEKS”, Pobelyanskiy Georgiy Eduardovich, the company is affiliated with following legal persons: OOO “Melon” – INN 7801538989, Saint-Petersburg. He is general director and 50% stock shareholder of the company. The company is registered at the same address as the subject. According to the research, affiliation through the director with other legal persons has not been revealed. The register of shareholders of ZAO “VERTEKS” is held by a private non-state registrar. The information about shareholders is closed. List of shareholders provided in the report was formed according to the last official information from the Federal Service of State Statistics. ZAO “VERTEKS” had several state contracts on the total sum: In 2011: 463 058 RUB The company participated in court cases as claimant and collected following amount of debt: In 2013: 314 251 RUB. In 2014: 6 173 141 RUB. According to the information, disclosed by the Federal Tax Service, ZAO “VERTEKS” does not have tax arrears, the company is not going to be excluded from the state register as non-active. According to the information, disclosed by the Pension Fund of Russian Federation, ZAO “VERTEKS” does not have delays in social payments. According to the information, disclosed by the Federal Labor Service, ZAO “VERTEKS” does not plan to attract foreign employees. According to the research, ZAO “VERTEKS” does not meet the most frequently encountered in practice characteristics of unreliable companies (so-called “shell” companies), developed by the Federal Tax Service of Russian Federation. ZAO “VERTEKS” is not in the list of default debtors, the Register of unfair suppliers, the blacklist of Russian companies. The management of the company is not in the list of default debtors, the register of disqualified persons, the blacklist of Russian Private Persons.

Financial data

A. The enclosed balance of 2011 is originated from official source, no data available about authentication. (31.12.2011 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).
B. The enclosed balance of 2012 is originated from official source, no data available about authentication. (31.12.2012 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).
C. The enclosed balance of 2013 is originated from official source, no data available about authentication. (31.12.2013 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).

balance	A 31.12.2011	B 31.12.2012	C 31.12.2013
1. ASSETS
I. FIXED ASSETS
Intangible assets	5 050	5 500	8 308
The results of research and development	3 154	9 755	20 874
Intangible research assets	0	0	0
Tangible research assets	0	0	0
Fixed assets	139 335	198 477	172 852
Profitable investments in tangible assets	0	0	0
Financial investments	0	0	0
Deferred tax assets	12 696	15 478	14 176
Other non-current assets	95 284	224 138	624 074
TOTAL IN SECTION I.	255 519	453 348	840 284
II. CURRENT ASSETS
Inventories	368 591	364 533	399 344
VAT on acquired assets	12 625	21 464	14 929
Accounts receivable	744 977	920 698	1 013 745
Financial investments (excluding the monetary equivalent)	0	0	66 280
Cash and monetary equivalents	147 435	126 031	10 445
Other current assets	3 195	3 056	19 920
TOTAL IN SECTION II.	1 276 823	1 435 781	1 524 663
BALANCE	1 532 342	1 889 129	2 364 947
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	11	11	11
Treasury stock	0	0	0
Revaluation of fixed assets	0	0	0
Additional capital (without revaluation)	49 998	49 998	49 998
Reserve capital	2	2	2
Retained earnings (uncovered loss)	866 340	1 152 562	1 320 092
TOTAL IN SECTION III.	916 351	1 202 573	1 370 103
IV. LONG-TERM LIABILITIES
Borrowed funds	368 609	270 590	599 790
Deferred tax liabilities	14 105	20 632	39 441
Provisions	0	0	0
Other liabilities	0	0	0
TOTAL IN SECTION IV.	382 714	291 221	639 231
V. SHORT-TERM LIABILITIES
Borrowed funds	268	1 033	21 678
Payables	222 267	383 777	316 817
Deferred income	0	0	0
Provisions	10 742	10 525	17 118
Sonstige Verbindlichkeiten	0	0	0
TOTAL IN SECTION V.	233 277	395 335	355 613
BALANCE	1 532 342	1 889 129	2 364 947

A. The enclosed profit and loss account of 2011 is originated from official source, no data available about authentication. (31.12.2011 - 1000 RUB)
B. The enclosed profit and loss account of 2012 is originated from official source, no data available about authentication. (31.12.2012 - 1000 RUB)
C. The enclosed profit and loss account of 2013 is originated from official source, no data available about authentication. (31.12.2013 - 1000 RUB)

profit and loss account

profit and loss account	A 31.12.2011	B 31.12.2012	C 31.12.2013
Turnover	2 105 158	2 407 702	2 339 970
Cost of sales	502 348	674 103	641 726
Gross profit (loss)	1 602 810	1 733 599	1 698 244
Selling expenses	430 058	437 119	488 572
Administrative expenses	262 570	309 291	347 337
Sales profit (loss)	910 182	987 189	862 335
Earnings from other entities	0	0	0
Interest receivable	7 269	15 543	3 656
Interest payable	26 119	26 591	29 892
Other operating income	380 308	496 827	492 026
Other operating expenses	875 102	1 104 989	1 110 518
Profit (loss) before tax	396 538	367 979	217 607
Current profit tax	79 384	75 506	29 631
Permanent tax liabilities (assets)	-5 085	-5 193	5 426
Change in deferred tax liabilities	14 105	6 526	18 811
Change in deferred tax assets	9 096	2 782	-1 302
Different	36	2 505	333
Net profit (loss)	312 109	286 224	167 530
Results of fixed assets revaluation, non-includedin net profit/loss for period	0	0	0
Result of other transactions, non included in net profit/loss for period	0	0	0
Total financial result for period	312 109	286 224	167 530

Ratios

Ratios

2011

2012

2013

Quick ratio

4,01

2,72

3,22

Current ratio

2,33

1,28

1,47

Average Collection Period

64,58

126

151

Payables turnover Period

80,75

164

199

Debt ratio

0,4

0,36

0,42

Equity to total assets ratio

0,6

0,64

0,58

Funding ratio

1,51

1,78

1,4

Return on sales

14,83

11,89

7,16

Return on Assets

27,11

20,06

10,31

Return on Equity

n/a

27,02

13,02

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.26
UK Pound	1	Rs.97.51
Euro	1	Rs.77.94

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.