MIRA INFORM REPORT

Report No. :	337084
Report Date :	20.08.2015

IDENTIFICATION DETAILS

Name :	FARMEX COMPANY SRL
Registered Office :	Ilfov county / 077191 Voluntari, Pipera – Drumul Potcoavei Street No. 30
Country :	Romania
Financials (as on) :	31.12.2014
Date of Incorporation :	October, 1998
Legal Form :	Limited liability company, entire foreign (Syrian) capital
Line of Business :	Manufacture of pharmaceutical preparations.
No. of Employee :	50

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 :	Slow but correct
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, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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. 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. In the aftermath of the global financial crisis, Romania signed on to a $26 billion emergency assistance package from the IMF, the EU, and other international lenders, but GDP contracted until 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, Romanian authorities and the IMF/EU agreed to a follow-on precautionary two-year stand-by agreement, worth $5.4 billion, to continue with reforms, although Bucharest has announced that it does not intend to draw funds under the agreement. Economic growth rebounded in 2013, driven by strong industrial exports and an excellent agricultural harvest, and the current account deficit was reduced substantially. The economy closed out 2014 with 2.8% growth, down from the 3.5% posted in 2013. Industry outperformed other sectors of the economy. Exports remained the engine of economic growth, led by trade with the EU, which accounts for roughly 70% of Romania trade. In 2014, the Government of Romania succeeded in meeting its annual target for the budget deficit, the external deficit remained low, and inflation was the lowest since 1989, allowing a gradual loosening of the monetary policy throughout the year. However, progress on structural reforms has been uneven and the economy still is vulnerable to external shocks. An ageing population, weak domestic demand, tax evasion, and insufficient health-care represent the top vulnerabilities.

Source : CIA

Company name and address

NAME OF THE COMPANY

FARMEX COMPANY SRL

Address

Ilfov county / 077191 Voluntari, Pipera – Drumul Potcoavei Street No. 30

Phone No.

0040-21-2308086

Fax no.

0040-21-2308085

Web-site

www.farmex.ro

E-mail address

office@farmex.ro

HISTORIC / OFFICIAL DATA

Date of foundation

October, 1998 in Bucharest. In November, 2002 it moved its headquarters in Ilfov county and it was re-incorporated under a new registration number.

Present legal form

Limited liability company, entire foreign (Syrian) capital

Registered with the Trade Registry

J23/2303/2002 actual

J40/10758/1998

VAT no.

11239802

Registered capital

200 RON

- the minimum share-capital requested by the Law as for a limited liability company

Shareholders

Individuals

1. Mr. Abdulnaser Sijari – Syrian citizen, born on 14.02.1965

Participation

10%

2. Mr. Alsukhni Abdulmohsen – Syrian citizen, born on 11.01.1982

Participation

30%

3. Mr. Alsakhni Zaher – Syrian citizen, born on 1.01.1984

Participation

30%

4. Mr. Alsakhni Firas – Syrian citizen, born on 1.01.1980

Participation

30%

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

2010

2011

2012

2013

2014

total

32

30

25

N/A

50

BUSINESS ACTIVITY

- Manufacture of pharmaceutical preparations, according to the National Trade Registry updated files (NACE: 2120)

According to the company’s web-site

FARMEX COMPANY SRL is a Romanian company producing medicines for human use, single dose solid dosage forms, capsules and tablets, filmed tablets, ß-lactam antibiotics and nutritional supplements.

Work-shop

Ilfov county / 077191 Voluntari, Pipera – Drumul Potcoavei Street No. 30

OTHER PARTICIPATION

1. Company’s participation

not applicable

2. Shareholders other participation

1. Mr. Abdulnaser Sijari

AXON FARM SRL – J40/11694/2009, VAT 26315762

SUN PARTNERS SRL – J40/767/2013, VAT 31127897

2. Mr. Alsukhni Abdulmohsen

AXON FARM SRL – J40/11694/2009, VAT 26315762

3. Mr. Alsakhni Zaher

AXON FARM SRL – J40/11694/2009, VAT 26315762

4. Mr. Alsakhni Firas

not applicable

TANGIBLES*

9,931,312 RON, at 31.12.2014

*no further details are available regarding the real estate (lands, buildings) or other premises (equipment, etc.)

BANKS

Romanian Bank for Development – Groupe Societe Generale

MANAGEMENT

· as officially registered with the National Trade Registry

Administrator

Mr. Alsakhni Zaher – appointed on 20.10.2009 for unlimited period

Administrator

Mr. Saijari Maher – Syrian citizen, born on 7.01.1962

Appointed on 16.05.2013 for unlimited period

CURRENCY

Exchange rate of EURO

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 = 4.4821 RON on 31.12.2014

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2011	31.12.2012	31.12.2013	31.12.2014
INTANGIBLES - TOTAL	0	0	368	266
TANGIBLES - TOTAL	5,750,709	5,491,235	5,663,694	9,931,312
FINANCIALS - TOTAL	75,303	0	0	0
FIXED ASSETS - TOTAL	5,826,012	5,491,235	5,664,062	9,931,578
STOCKS - TOTAL	442,712	617,270	1,912,327	2,280,789
CLAIMS - TOTAL	1,424,563	2,200,411	3,670,231	3,982,282
CURRENT ASSETS	1,998,676	2,840,411	10,192,124	6,421,056
PREPAID EXPENSES	0	0	2,408	35,641
DEBTS WITHIN 1 YEAR	6,275,778	6,301,673	13,639,750	14,538,715
DEBTS OVER 1 YEAR	0	0	0	0
PROVISIONS	376,856	264,245	264,245	264,245
ADVANCED INCOMES	0	0	0	0
REGISTERED CAPITAL	200	200	200	200
RESERVES from reassessment of the fixed assets	2,189,539	2,507,606	2,507,606	2,507,606
RESERVES	15,997	19,572	19,572	19,572
PROFITS CARRIED FORWARD	-1,036,061	-766,894	-756,406	-572,779
NET RESULT - PROFIT	2,379	5,244	183,627	0
NET RESULT - LOSS	0	0	0	369,284
NET WORTH	1,172,054	1,765,728	1,954,599	1,585,315
PROFIT & LOSS ACCOUNT	31.12.2011	31.12.2012	31.12.2013	31.12.2014
Turnover	818,068	1,876,446	1,915,497	3,529,286
Own production & services	N/A	N/A	N/A	N/A
Sales	N/A	N/A	N/A	N/A
INCOMES FROM ORDINARY OPERATING ACTIVITY	1,230,602	1,892,936	2,404,556	3,871,307
Raw materials	N/A	N/A	N/A	N/A
Costs of goods sold	N/A	N/A	N/A	N/A
Wages	N/A	N/A	N/A	N/A
Depreciations & provisions	N/A	N/A	N/A	N/A
Other operating costs	N/A	N/A	N/A	N/A
COSTS OF ORDINARY OPERATING ACTIVITY	2,458,905	1,936,155	2,302,510	3,921,952
ORDINARY OPERATING RESULT - PROFIT	0	0	102,046	0
ORDINARY OPERATING RESULT - LOSS	1,228,303	43,219	0	50,645
FINANCIAL INCOMES	2,301,481	723,282	998,539	403,895
FINANCIAL COSTS	1,070,799	674,819	916,958	722,534
FINANCIAL RESULT - PROFIT	1,230,682	48,463	81,581	0
FINANCIAL RESULT - LOSS	0	0	0	318,639
CURRENT RESULT - PROFIT	2,379	5,244	183,627	0
CURRENT RESULT - LOSS	0	0	0	369,284
Extraordinary incomes	0	0	0	0
Extraordinary costs	0	0	0	0
EXTRAORDINARY RESULT - PROFIT	0	0	0	0
EXTRAORDINARY RESULT - LOSS	0	0	0	0
TOTAL INCOMES	3,532,083	2,616,218	3,403,095	4,275,202
TOTAL COSTS	3,529,704	2,610,974	3,219,468	4,644,486
PRETAX RESULT - PROFIT	2,379	5,244	183,627	0
PRETAX RESULT - LOSS	0	0	0	369,284
TAX ON PROFIT	0	0	0	0
NET RESULT - PROFIT	2,379	5,244	183,627	0
NET RESULT - LOSS	0	0	0	369,284

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 31.12.2014. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 31.12.2014

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

Size

medium, considering the number of employees

Position & trend

The figures at hand reveal increasing business volume in the investigated period, up to rather satisfactory level of turnover.

Nonetheless, the returns became negative in 2014, the losses coming quite from the operating activity.

Also, in terms of B/S accounts, liquidity stands very low and the solvability stands unsatisfactory, with constant over limited indebtedness rate.

Overall, the financial standing does not look too well, but the payments behaviour proved to be correct, without delays.

For the tome being, we appreciate the business relationships are feasible, but the credit based transactions should be secured.

Further review on the company’s situation is suggested.

31.12.2010

31.12.2011

31.12.2012

31.12.2013

31.12.2014

Turnover

RON

1,083,932

818,068

1,876,446

1,915,497

3,529,286

EURO

252,971

189,381

423,701

427,118

787,418

Gross profit

RON

8,372

2,379

5,244

183,627

-369,284

EURO

1,954

551

1,184

40,945

-82,391

Net profit

RON

1,922

2,379

5,244

183,627

-369,284

EURO

449

551

1,184

40,945

-82,391

31.12.2014

CREDITS & LOANS (ACTIVE BALANCE)

N/A

BALANCE CLAIMS-DEBTS

negative

Total claims; no further details are available

3,982,282

Total debts, 100% on short term; no further details are available

14,538,715

PAYMENTS BEHAVIOR

Slow but correct

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded in the period 14.08.2014 – 14.08.2015

BLACKLISTING (international sanctions)

Not applicable

FINANCIAL STRENGTH

Negative

FIRM’S RATING

D

RISK CATEGORY

Above normal

BUSINESS RELATIONS

Under secured terms

CREDIT LIMIT

For the time being, any contemplated credit based transaction should be secured. Further review is suggested!

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.

2010

2011

2012

2013

2014

Very low

Liquidity analysis

- current ratio

0.29

0.32

0.45

0.75

0.44

- quick ratio

0.20

0.25

0.35

0.61

0.28

Solvability analysis

Unsatisfactory – constant over limited indebtedness rate

- the borrowing ratio (total debts/net worth)

7.73

5.35

3.57

6.98

9.17

Profitability analysis (%)

Mostly unsatisfactory

- return on capital

0.16

0.20

0.30

9.39

loss

- return on assets

0.02

0.03

0.06

1.16

loss

- gross profit margin

0.77

0.29

0.28

9.59

loss

Activity analysis

Debtors out of control (usually in this line of business in Romania); slow stocks’ rotation

- debtor’s days

598

636

428

699

412

- creditor’s days

n/a

n/a

n/a

n/a

n/a

Stocks turnover, times/year

1

2

3

1

2

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.25
UK Pound	1	Rs.102.25
Euro	1	Rs.72.19

INFORMATION DETAILS

Analysis Done by :	RAS
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%)

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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.