MIRA INFORM REPORT

Report No. :	347707
Report Date :	16.11.2015

IDENTIFICATION DETAILS

Name :	QUALICAPS ROMANIA SRL
Registered Office :	Bucharest, SOS Chitilei No. 423M, Sector 1
Country :	Romania
Financials (as on) :	30.06.2015
Date of Incorporation :	May 2008
Legal Form :	Limited Liability Company
Line of Business :	Subject is engaged in production of other chemical products
No. of Employee :	91 (30.06.2015)

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 – 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

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.com			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
	2010	2011	2012		2013			2014	30.06.2015
total	94	87	90		87			91	91

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

2014

252,871

250,991

232,304

213,618

N/A

56,982,803

49,620,376

42,458,085

34,176,762

N/A

TANGIBLES*

35,619,133 RON, at 30.06.2015

*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

N/A

MANAGEMENT

as officially registered with the National Trade Registry

Administrators

1.Ahumada Ciro – Swiss citizen, born on 10.12.1965

Appointed on 24.02.2014 for unlimited period

2. Maruoka Rei – Japanese citizen, born on 13.10.1970

Appointed on 23.06.2015 for unlimited period

3. Tamura Takanori – Japanese citizen, born on 20.05.1959

Appointed on 23.06.2015 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 = 4.3888 RON on 30.06.2014

1 EURO = 4.4821 RON on 31.12.2014

1 EURO = 4.4735 RON on 30.06.2015

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2012	31.12.2013	31.12.2014	30.06.2015
INTANGIBLES - TOTAL	130,916	42,412	27,249	27,426
TANGIBLES - TOTAL	43,506,080	34,745,592	34,913,887	35,619,133
FINANCIALS - TOTAL	0	0	0	0
FIXED ASSETS - TOTAL	43,636,996	34,788,004	34,941,136	35,646,559
STOCKS - TOTAL	11,284,862	5,598,761	8,941,340	7,146,277
CLAIMS - TOTAL	9,271,238	11,293,697	9,532,961	13,430,262
CURRENT ASSETS	23,685,298	24,178,105	26,232,785	23,301,335
PREPAID EXPENSES	1,476,102	0	5,044	2,459
DEBTS WITHIN 1 YEAR	19,868,675	13,247,330	16,838,888	10,283,012
DEBTS OVER 1 YEAR	18,595,280	6,167,707	70,013	109,674
PROVISIONS	0	0	0	0
ADVANCED INCOMES	0	0	0	0
REGISTERED CAPITAL	54,943,712	54,943,712	54,943,712	54,943,712
RESERVES	386,953	847,784	1,067,746	1,067,746
LOSSES CARRIED FORWARD	31,866,277	24,996,224	-5,920,677	11,741,394
NET RESULT - PROFIT	7,200,977	9,216,631	4,399,245	4,287,603
NET RESULT - LOSS	0	0	0	0
NET WORTH	30,334,441	39,551,072	44,270,064	48,557,667
PROFIT & LOSS ACCOUNT	31.12.2012	31.12.2013	31.12.2014	30.06.2015
Turnover	52,227,004	52,792,401	51,002,506	29,320,706
Own production & services	52,037,564	52,734,318	N/A	N/A
Sales	44,929	58,083	N/A	N/A
INCOMES FROM ORDINARY OPERATING ACTIVITY	49,703,472	52,553,085	52,161,293	29,833,365
Raw materials	14,996,918	15,486,760	N/A	N/A
Costs of goods sold	43,096	67,996	N/A	N/A
Wages	7,778,193	8,289,810	N/A	N/A
Depreciations & provisions	8,233,718	8,093,943	N/A	N/A
Other operating costs	8,777,389	9,956,537	N/A	N/A
COSTS OF ORDINARY OPERATING ACTIVITY	44,060,624	47,795,575	47,034,116	24,662,272
ORDINARY OPERATING RESULT - PROFIT	5,642,848	4,757,510	5,127,177	5,171,093
ORDINARY OPERATING RESULT - LOSS	0	0	0	0
FINANCIAL INCOMES	14,577,548	7,328,013	1,877,758	1,040,980
FINANCIAL COSTS	13,019,419	2,868,892	2,605,690	1,924,470
FINANCIAL RESULT - PROFIT	1,558,129	4,459,121	0	0
FINANCIAL RESULT - LOSS	0	0	727,932	883,490
CURRENT RESULT - PROFIT	7,200,977	9,216,631	4,399,245	4,287,603
CURRENT RESULT - LOSS	0	0	0	0
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	64,281,020	59,881,098	54,039,051	30,874,345
TOTAL COSTS	57,080,043	50,664,467	49,639,806	26,586,742
PRETAX RESULT - PROFIT	7,200,977	9,216,631	4,399,245	4,287,603
PRETAX RESULT - LOSS	0	0	0	0
TAX ON PROFIT	0	0	0	0
NET RESULT - PROFIT	7,200,977	9,216,631	4,399,245	4,287,603
NET RESULT - LOSS	0	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 30.06.2015. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 30.06.2015

- 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. Both, turnover and gross profit got increased at June 2015 compared to June 2014, with 65 (in EURO) and respectively with23% (in EURO). Still, there are uncovered losses from the previous periods, in amount of 2,624,655 EURO.

Payments behavior looks correct, no delays being reported.

Financial standing got continuosly improved up to a high one.

Business trend: ascending.

31.12.2010

31.12.2011

31.12.2012

31.12.2013

30.06.2014

31.12.2014

30.06.2015

Turnover

RON

38,525,089

48,155,401

52,227,004

52,792,401

27,088,836

51,002,506

29,320,706

EURO

8,991,106

11,147,858

11,792,852

11,771,668

6,172,265

11,379,154

6,554,310

Gross profit

RON

-13,790,656

1,120,583

7,200,977

9,216,631

3,418,807

4,399,245

4,287,603

EURO

-3,218,506

259,412

1,625,980

2,055,128

778,984

981,514

958,445

Net profit

RON

-13,812,656

1,120,583

7,200,977

9,216,631

3,418,807

4,399,245

4,287,603

EURO

-3,223,641

259,412

1,625,980

2,055,128

778,984

981,514

958,445

30.06.2015

CREDITS & LOANS (ACTIVE BALANCE)

N/A

BALANCE CLAIMS-DEBTS

Positive

Total claims, no further details available

13,430,262

Total debts

10,392,686

- Short term, no further details available

10,283,012

- Medium term, no further details available

109,674

PAYMENTS BEHAVIOR

No Complaints

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded during 5.11.2014 – 5.11.2015

BLACKLISTING (international sanctions)

Not applicable

FINANCIAL STRENGTH

13,765 tsd EURO

2010

2011

2012

2013

2014

30.06.2015

Increasing up to very good

Liquidity analysis

- current ratio

1.43

1.33

1.19

1.83

1.56

2.27

- quick ratio

0.96

0.92

0.62

1.40

1.03

1.57

Solvability analysis

Improving up to a very good indebtedness rate

- the borrowing ratio (total debts/net worth)

2.87

2.48

1.27

0.49

0.38

0.21

Profitability analysis (%)

Improving; very good since 2012

- return on capital

loss

4.84

23.74

23.30

9.94

8.83

- return on assets

loss

1.39

10.47

15.63

7.19

7.27

- gross profit margin

loss

2.33

13.79

17.46

8.63

14.62

Activity analysis

Not too good debtors control at June 2015

- debtor’s days

130

39

32

78

68

167

- creditor’s days

121

146

65

88

114

n/a

Stocks turnover, times/period

5

6

5

9

6

4

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.14
UK Pound	1	Rs.100.55
Euro	1	Rs.71.27

INFORMATION DETAILS

Analysis Done by :	KAS
Report Prepared by :	ASH

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.