MIRA INFORM REPORT

Report No. :	315235
Report Date :	04.04.2015

IDENTIFICATION DETAILS

Name :	MICROSIN SRL
Registered Office :	Bucharest, 51-63 Pericle Papahagi Street, Bl. Corp C1
Country :	Romania
Financials (as on) :	30.06.2014
Date of Incorporation :	May 1991
Legal Form :	Limited liability company, entire Romanian capital
Line of Business :	Manufacture of pharmaceutical preparations Manufacturer of pharmaceutical active ingredients
No. of Employee :	39 (30.06.2014)

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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

MICROSIN SRL

Address

Bucharest, 51-63 Pericle Papahagi Street, Bl. Corp C1

Phone no.

Cell phone no.

0040-21-3452066

0040-744-750463

Fax no.

0040-21-3452067

Web-site

www.microsin.ro

E-mail address

office@microsin.ro

HISTORIC / OFFICIAL DATA

Date of foundation

May 1991

Present legal form

Limited liability company, entire Romanian capital

Registered with the Trade Registry

J40/3074/1991

VAT no.

326288

Registered capital

1,000,000 RON

Shareholders

Individuals

1.Garbea Florin Manuel – Romanian citizen, born on 27.06.1975

Participation

3%

2. Garbea Ioan – Romanian citizen, born on 1.01.1939

Participation

87%

3. Marinica Teodor – Romanian citizen, born on 21.02.1930

Participation

10%

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

30.06.2014

total

24

24

28

27

33

39

BUSINESS ACTIVITY

According to the national Trade Registry updated files

- manufacture of pharmaceutical preparations NACE: 2120)

As declared by the company on its web site

- manufacturer of pharmaceutical active ingredients

Work-shop: Bucharest, 50 Theodor Pallady Street, Sector 3

OTHER PARTICIPATION

1. Company’s participation

not applicable

2. Shareholders other participation

Garbea Florin Manuel

FINE CHEMICALS AND PHARMACEUTICAL BUSINESS SRL – Reg. no.: J40/6325/2012, VAT 30269699

Garbea Ioan

Not applicable

Marinica Teodor

FABIOL SA – Reg. no.: J40/854/1994, VAT 5221967
FITOTERAPIA SA – Reg. no.: J40/3935/1991, VAT 459497

TANGIBLES*

11,252,239 RON, at 30.06.2014

*According to the accounting standards, for the middle of the year the company is not obliged to detail its tangible assets. Therefore, the real estates are included in “Tangibles” position among the other assets

BANKS

ROMANIAN COMMERCIAL BANK

ROMANIAN BANK FOR DEVELOPMENT – GROUPE SOCIETE GENERALE

MANAGEMENT

· as officially registered with the National Trade Registry

Garbea Ioan – appointed on 14.04.2009, expiration date of mandate: 5.12.2016

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

1 EURO = 4.3888 RON on 30.06.2014

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2013	30.06.2014
INTANGIBLES - TOTAL	13,105	12,925
TANGIBLES - TOTAL	11,320,545	11,252,239
FINANCIALS - TOTAL	0	0
FIXED ASSETS - TOTAL	11,333,650	11,265,164
STOCKS - TOTAL	913,402	972,303
CLAIMS - TOTAL	1,426,992	1,798,176
CURRENT ASSETS	2,483,163	3,311,877
PREPAID EXPENSES	85,941	215,267
DEBTS WITHIN 1 YEAR	2,122,347	1,853,362
DEBTS OVER 1 YEAR	2,436,396	3,236,657
PROVISIONS	0	0
ADVANCED INCOMES	0	0
REGISTERED CAPITAL	1,000,000	1,000,00,
RESERVES	138,002	138,002
NET RESULT - PROFIT	384,398	742,676
NET RESULT - LOSS	0	0
NET WORTH	9,344,011	9,702,289
PROFIT & LOSS ACCOUNT	31.12.2013	30.06.2014
Turnover	6,576,201	4,855,163
Own production & services	N/A	N/A
Sales	N/A	N/A
INCOMES FROM ORDINARY OPERATING ACTIVITY	6,505,647	4,959,138
Raw materials	N/A	N/A
Costs of goods sold	N/A	N/A
Wages	N/A	N/A
Depreciations & provisions	N/A	N/A
Other operating costs	N/A	N/A
COSTS OF ORDINARY OPERATING ACTIVITY	5,499,122	3,896,707
ORDINARY OPERATING RESULT - PROFIT	1,006,525	1,062,431
ORDINARY OPERATING RESULT - LOSS	0	0
FINANCIAL INCOMES	79,414	17,634
FINANCIAL COSTS	623,648	195,926
FINANCIAL RESULT - PROFIT	0	0
FINANCIAL RESULT - LOSS	544,234	178,292
CURRENT RESULT - PROFIT	462,291	884,139
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	6,585,061	4,976,772
TOTAL COSTS	6,122,770	4,092,633
PRETAX RESULT - PROFIT	462,291	884,139
PRETAX RESULT - LOSS	0	0
TAX ON PROFIT	77,893	141,463
NET RESULT - PROFIT	384,398	742,676
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 30.06.2014. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 30.06.2014

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

Size

small, considering the total no. of employees.

Position & trend

Continuously increasing bussines, reaching a considerable level of turnover with generally rather good economic results.

Payments behavior looks correct.

Financial analysis of the specific ratios reveal a very good standing.

Business trend: ascending

31.12.2009

31.12.2010

31.12.2011

31.12.2012

31.12.2013

30.06.2014

Turnover

RON

2,658,522

3,248,537

4,660,593

7,848,304

6,576,201

4,855,163

EURO

628,760

758,154

1,078,916

1,772,146

1,466,364

1,106,262

Gross profit

RON

68,409

260,094

339,924

284,756

462,291

884,139

EURO

16,179

60,702

78,692

64,298

103,082

201,453

Net profit

RON

62,676

253,644

328,716

384,398

742,676

742,676

EURO

14,823

59,196

76,097

86,797

165,602

169,221

30.06.2014

CREDITS & LOANS (ACTIVE BALANCE)

N/A

BALANCE CLAIMS-DEBTS

Negative

Total claims, no further details available

1,798,176

Total debts

5,090,019

- Short term, no further details available

1,853,362

- Medium term, no further details available

3,236,657

PAYMENTS BEHAVIOR

Correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded during 1.04.2014 – 1.04.2015

BLACKLISTING (international sanctions)

Not applicable

FINANCIAL STRENGTH

2,500,000 EURO

FIRM’S RATING

B

RISK CATEGORY

Low

BUSINESS RELATIONS

Feasible

CREDIT LIMIT

340,000 EURO

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.

2009

2010

2011

2012

2013

30.06.2014

Generally very good

Liquidity analysis

- current ratio

2.20

2.24

1.52

1.43

1.17

1.79

- quick ratio

0.98

1.41

0.36

1.17

0.74

1.26

Solvability analysis

Very good indebtedness rate

- the borrowing ratio (total debts/net worth)

0.76

0.37

0.61

0.47

0.49

0.52

Profitability analysis (%)

Fluctuant; increased up to very good at June 2014

- return on capital

1.31

2.63

3.29

3.89

7.95

7.65

- return on assets

0.74

1.92

2.04

2.65

5.34

5.02

- gross profit margin

2.57

8.01

7.29

3.63

7.03

18.21

Activity analysis

Debtors control is generally not too good

- debtor’s days

98

137

75

109

79

135

- creditor’s days

n/a

n/a

n/a

n/a

n/a

n/a

Stocks turnover, times/period

3

4

1

14

7

5

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.59
UK Pound	1	Rs.92.46
Euro	1	Rs.67.51

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	ANK

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.