MIRA INFORM REPORT

Report No. :	349411
Report Date :	20.11.2015

IDENTIFICATION DETAILS

Name :	NATALI FARM LLC
Registered Office :	Abovyan Street 42/2 Yerevan 375009
Country :	Armenia
Date of Incorporation :	12.12.1998
Legal Form :	Limited Liability Company
Line of Business :	Trading as importers, wholesalers, retailers and distributors of pharmaceuticals and medical products.
No. of Employees :	1300

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

Maximum Credit Limits :	DRAM 454,000,000
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)
Armenia	B2	B2

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

ARMENIA - ECONOMIC OVERVIEW

Under the old Soviet central planning system, Armenia developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics, in exchange for raw materials and energy. Armenia has since switched to small-scale agriculture and away from the large agroindustrial complexes of the Soviet era. Armenia has only two open trade borders - Iran and Georgia - because its borders with Azerbaijan and Turkey have been closed since 1991 and 1993, respectively, as a result of Armenia's ongoing conflict with Azerbaijan over the separatist Nagorno-Karabakh region. Armenia's geographic isolation, a narrow export base, and pervasive monopolies in important business sectors have made it particularly vulnerable to the sharp deterioration in the global economy and the economic downturn in Russia. Armenia is particularly dependent on Russian commercial and governmental support and most key Armenian infrastructure is Russian-owned and/or managed, especially in the energy sector, including electricity and natural gas. Remittances from expatriates working in Russia are equivalent to about 20% of GDP and partly offset the country's severe trade imbalance. Armenia joined Russia in the Eurasian Economic Union upon the bloc's launch in January 2015, even though the ruble's sharp depreciation in December 2014 led to currency instability, inflation, and significant decrease of export from Armenia to Russia. Armenia joined the WTO in January 2003. The government has made some improvements in tax and customs administration in recent years, but anti-corruption measures have been ineffective. Armenia will need to pursue additional economic reforms and to strengthen the rule of law in order to regain economic growth and improve economic competitiveness and employment opportunities, especially given its economic isolation from two of its nearest neighbors, Turkey and Azerbaijan.

Source : CIA

Company name nad address

Natali Farm LLC (Correct)

NATALI FARM LTD (WERSJA ANG NATALY PHARM LLC) (Requested)

ADDRESS

Street : Tichina 3^rd Alley 2/2

Area : Malatia-Sebastia District

Town : Yerevan 0065

Country : Armenia

Telephone : (374 10) 744 212 / 744 214 / 744 215 / 744 231 (Accountants) / 744 492 / 730 620 (Import

Manager) / Mobile (374 55) 720 620

Fax : (374 10) 744 215 / 74 216

E-Mail : natali@netsys.am / rshtuni87@mail.ru

Website : www.natalipharm.am

Trading Style : Natali Pharm / Natali Agro / Best Optics / Nike / Malatia MC

English Translation : Natali Pharm LLC

Also Known As : Natali Farm OOO

SENIOR COMPANY PERSONNEL

Name Position

1. Asatur Maratovich Asatryan General Director

2. Osik Gazaryan Chief Accountant

3. Shakem Meliksetyan Deputy Chief Accountant

4. Susanna Asatryan Accountant

(niece of Asatur Maratovich Asatryan)

5. Ruzanna Magakyan Import Manager

Total Employees : 1,300

PAYMENTS

No complaints have been heard regarding payments from local suppliers or banks.

We consider it is acceptable to deal with subject for LARGE amounts, although it is normal accepted practice for international suppliers to deal on secured terms with Armenian importers.

Opinion on maximum credit : DRAM 454,000,000

Trade risk assessment: Normal

SIGNIFICANT CHANGES

ZHAMANAK: NATALI PHARM TO EXPORT MEAT TO RUSSIA

On 15 November 2014, (www.panorama.am): Armenian Agriculture Ministry’s State Food Safety Service and the Russian Federal Service for Veterinary and Phytosanitary Surveillance have reached an agreement that Armenia will export meat products to Russia, Zhamanak reports.

"It is noteworthy that Natali Pharm LLC, which belongs to businessman Samvel Alexanyan (Republican Party of Armenia), is among the companies that got a meat export license.

“The government has recently granted a license to Natali Pharm to import and sell psychotropic drugs, and there was logic in that move, while there is no logic in its latest decision. It is at least unintelligible how a company that imports medicines and drugs can export meat products,” the newspaper says.

MP ALEKSANYAN'S NATALI PHARM GETS FINED 50 MILLION AMD

On 11 June 2012, (www.hetq.am): Today, the RA State Committee to Protect Economic Competitiveness announced that it would be fining drug importer and retailer Natali Pharm 50 million AMD for unfair business practices.

The company, owned by MP Samvel Aleksanyan, is the largest drug importer in Armenia and has a chain of retail pharmacies.

6 other companies with a much smaller share of the medicine market got away with a stern warning by the committee to put a halt to any type of domestic collusion preventing others from entering the market.

The study was launched after Heritage Party MPs received a complaint from one such firm that established players were placing artificial roadblocks in their way.

NATALI PHARM TO PAY 50MLN AMD FINE FOR ABUSE OF DOMINANCE

On 12 June 2012, (www.arminfo.info): The State Commission for the Protection of Economic Competition of Armenia ruled on Monday that Natali Pharm, the country's biggest medicine importer and retailer, owned by MP Samvel Alexanyan, should pay a fine worth 50mln AMD ($121,100).

Chairman of the Commission Artak Shaboyan says that in Jan 2011 MPs from Heritage party Anahit Bakhshyan and Stepan Safaryan complained of anti-competitive actions preventing Szni company from entering the medicine market.

A following inquiry has shown that Natali Pharm, Europharm, Ruspharm, Amikus, Egdani, Megi ES, Kamelia, Anikopharm, Hrant Gevorgyan and 30 state medical centers all over Armenia acted anti-competitively during state procurements.

In some cases procurements were carried out without tenders, in others tenders were just a formality. There were cases when Natali Pharm bribed hospital officials so they refused to buy medicines from winning companies.

Shaboyan blames hospitals for creating favourable conditions for anti- competitive and corrupt activities but has punished only Natali Pharm.

He says that it is the first such big investigation in the field.

Since the case may involve waste of budgetary funds, the materials of the investigations have been sent to the Prosecutor General's Office, the Supervisory Chamber and the Finance Ministry.

In 2010 the Government budgeted 3.7bln AMD ($9.9mln) for the procurement of medicines. The same year medicine production in Armenia totaled 3.3bln AMD, the imports - $73mln, with Natali Pharm being the biggest importer in 2007-2010.

Established in 2001 Natali Pharm has over 40 partners, including Servier, Nycomed, Novartis Pharma, Novartis Consumer, Orion, Santen, Berlin Chemie AG. It is exclusive representative of Krewel Meuselbach, Unipharm, Nizhpharm and Kievmedpreparat in Armenia. The company has over 30 drugstores in Yerevan and over 10 all over Armenia.

According to ArmInfo's Ranking of Biggest Trade and Service Companies of Armenia, in 2010 Natali Pharm's net profit totalled $1.6mln, assets - $22.6mln, own capital - $7.7mln.

PRINCIPAL BANKERS

NAME : AMERIABANK CJSC

Branch : Grigor Lusavorich Street 9

Town : Yerevan 0015

Telephone : (374 10) 561 111

Fax : (374 10) 513 133

Subject previously had an account with :

1. HSBC Bank Armenia CJSC

Teryan Street 66

Yerevan

Telephone: (374 10) 515 000

Fax : (374 10) 515 001

2. Areximbank-Gazprombank Group CJSC

Northern Avenue 6-10

Yerevan 0001

Telephone: (374 10) 583 131 / 514 054

Fax : (374 10) 520 995

3. Unionbank

Yerevan

FINANCIAL INFORMATION

Private companies in Armenia are not required to publish or disclose balance sheets. However, the subject interviewed offered the following information :

Sales Turnover : DRAM 2,754,732,000 - 2003 - exact

: DRAM 3,000,000,000 - 2004 - approx

: DRAM 4,485,047,000 - 2005 - exact

: DRAM 4,500,000,000 - 2006 – approx

: not given – 2007/2013

: DRAM 22,700,000,000 - 2014 – exact

Net Profit : DRAM 138,204,000 - 2003 - exact

: DRAM 150,000,000 - 2004 - approx

: DRAM 365,017,000 - 2005 – exact

: not given – 2007/2013

: DRAM 637,000,000 - 2014 – exact

Financial year ends 31 December.

LEGAL STATUS AND HISTORY

Date Started : 12 December 1998

History : Subject was established on 12 December 1998 with the following shareholding structure :

- Karen Hachatryan

- Levon Hachatryan

Later on, subject’s sole shareholder became : Mr. Asatur Maratovich Asatryan.

In 2012, subject’s shareholding structure changed to the present.

C.R. No. : 271.110.01887

Tax No. : 01222567

Authorised Capital : DRAM 350,000 (increased from DRAM 50,000 in 2014)

Paid-Up Capital : DRAM 350,000 (increased from DRAM 50,000 in 2014)

Limited Liability Company with the following director and shareholders:

Director

Asatur Maratovich Asatryan

(Armenian national)

Shareholder Percentage

1. Asatur Maratovich Asatryan 99.4%

(Armenian national)

2. Shovirina Mkrtchyan 0.6%

(Armenian national)

* It is understood that subject Samvel Aleksanyan is the unofficial owner of the business.

Personal Profile on Samvel Aleksanyan :

Samvel Aleksanyan was born on 19 August 1968 in Yerevan. Mr. Aleksanyan received his degree in economics from the Armenia Agricultural Academy. He was awarded a medal for his services in promoting the Olympic movement in the RA in 2002. From 1988 - 1990 he served in the Soviet Army. In 1990, worked as a skilled worker in a factory producing sanitation technologies. In 1993 he was head of a production unit of metal constructions. For the past decade he has had his own business. From 2003 - 2007 he was a deputy in the NA (electoral district No. 14). He was a member of the NA Standing Committee on Financial-Credit, Budgetary and Economic Affairs. He was not involved in any faction. On 12 May 2007, he was elected to the NA from electoral district No. 7. Mr. Aleksanyan is married and has five children.

Samvel Aleksanian is also known as “Lfik Samo”. A semi-criminal oligarch, Aleksanian maintains an army of bodyguards. He boasts little formal education (maybe the least among oligarchs). Close to the President’s office. Tries to resemble Dodi Gago in everything : his house has the same architecture, he drives the same make of cars, etc.

Samvel Aleksanyan is one of the richest persons in Armenia. He has the following legal businesses :

— Lusastgh (Shining Star) : produces vodka and vegetable oil, owns

supermarkets;

— Informal “Feudal Lord” of Malatia (a district in Yerevan);

- “Yerevan City” supermarkets chain;

- “Parvana” restaurant complex;

— Major importer of wheat, sugar and butter;

— Other additional minor businesses.

Anti-monopoly Committee recently looked into his case, and admitted that there is a monopoly in sugar and butter importation. Due to his very close ties with the Customs Committee, he is able to import products with best possible privileges, thus minimizing competition in the market for his company.

Affiliated companies of Natali Farm LLC :

Associates

1. Yerevan City

Tichinai Street 3^rd Lane 2/2

Malatia-Sebastia District

Yerevan 0065

Telephone: (374 11) 776 051 / (374 10) 731 700

Managing Director : Vardan V. Farmanyan

Est. : 2007

(Supermarkets chain)

2. Parvana

Hrazdan Gorge

Kentron District

Yerevan 0082

Telephone: (374 10) 516 602

Managing Director : Sergey M. Stepanyan

Est. : 27 December 1996

Tax No. : 01814351

(restaurant complex)

ACTIVITIES

The Company is involved in the following activities :

Trading as importers, wholesalers, retailers and distributors of pharmaceuticals and medical products.

Subject is operator of medical centre styled “Natali Pharm Malatia”, polyclinic of medical centre, retail outlets and pharmacies styled “Natali Pharm”.

Distributors for :

- Servier;

- Nycomed;

- Novartis Pharma;

- Novartis Consumer;

- HIPP;

- Orion;

- Santen;

- Berlin Chemie AG.

Subject’s main partners include :

- Krewel Meusebach;

- Kievmedpreparat;

- Nizhfarm;

- Unipharm.

Subject has the following departments / divisions :

- Natali Agro;

Tichina 3^rd Alley 2/2

Malatia-Sebastia District

Yerevan 0065

Mobile : (374 55) 685 060

Est. : 2004

Distributes wide range of agrochemicals products. The company is

the largest importer of pesticides in Armenia.

- Best Optics;

Tichina 3^rd Alley 2/2

Malatia-Sebastia District

Yerevan 0065

Est. : 2010

Specialized optics store chain with about 50 showrooms in Armenia.

Operates a workshop and service center.

- Nike Sporting Goods Specialty Shop;

Hanrapetutyan Street 62

Kentron District

Yerevan 0010

Telephone: (374 10) 540 870

Managing Director : Arman P. Ghazaryan

- Nike Sporting Goods Specialty Shop;

Komitasi Avenue 60/2 (in the territory of "Yerevan City")

Arabkir District

Yerevan 0014

Telephone: (374 10) 201 670

NACE Codes : 4646 / 4774 / 8610

Imports from Europe, Germany, Lithuania, France, Italy, Turkey, Georgia, Brazil, Malta, UAE, Canada, Norway, Belgium, Belarus, Ukraine, Check Republic, India, UK, Austria, Finland, Switzerland, Russia, Bulgaria, Cyprus, Ireland, USA, Syria and Vietnam.

Exports occasionally to Dubai.

FACILITIES

The Company has the following facilities :

Owned premises comprising administrative offices, retail outlet, warehouse and storage facilities located at the heading address as well as near 80 pharmacies (58 of them in Yerevan) and 22 retail outlets located throughout Armenia (see 'Branch Offices' below).

Until 6 November 2006, subject was located at :

Artashisyan Street 89

Subject previously used the following telephone and fax numbers :

Telephone: (374 10) 420 604 / 420 612 / 420 620 / 420 622 / 523 557 / 772 079 / 273 022 / 539 883 / 440 401 / 774 915

Fax : (374 10) 420 614 / 420 622

REGISTERED OFFICE

Abovyan Street 42/2

Yerevan 375009

BRANCH OFFICES

1. Gyurjyan Street 1/2

Yerevan

2. Tumanyan Street 24/9

Yerevan

3. Andranik Street 2A

Yerevan

4. Abovyan Street 39/41

Yerevan

5. Abovyan Street 33

Yerevan

6. Avan Babajanyan Street 21/5

Yerevan

7. Avanesov Street 8/1

Yerevan

8. Bagratunyats Street 5/3

Yerevan

9. Gayi Avenue 16

Yerevan

10.G. Nzhdeh Street 4

Yerevan

11.G. Nzhdeh Street 19

Yerevan

12.Gyurjyan Street 10

Yerevan

13.D. Varuzhan Street 28A

Yerevan

14.Davitashen Q3 25/5

Yerevan

15.T. Petrosyan Street 48/5

Yerevan

16.Er. Qochar Street 9/4

Yerevan

17.Erebuni Street 17

Yerevan

18.Tumanyan Street 27

Yerevan

19.Khudyakov Street 212/4

Yerevan

20.Tsitsernakaberd Highway 3

Yerevan

21.Kasyan Street 2

Yerevan

22.Komitas Avenue 30

Yerevan

23.Komitas Avenue 45/40

Yerevan

24.Komitas Avenue 60/2

Yerevan

25.Kievyan Street 7

Yerevan

26.H. Qochar Street 22/16

Yerevan

27.Malatia Street 68/74

Yerevan

28.Mamikonyants Street 21

Yerevan

29.Mashtots Avenue 5

Yerevan

30.Mashtots Avenue 15

Yerevan

31.Paronyan Street 9/42

Yerevan

32.Vilnius Street 41/146

Yerevan

33.Rubinyants Street 15/5

Yerevan

34.Sebastia Street 141/5

Yerevan

35.Khaghaghutyan Street 4/8

Gyumri

36.Rizhkov Street 1/5

Gyumri

37.M. Gorki Street 109/2

Gyumri

38.Sayat-Nova Street 2/10

Gyumri

39.P. Sevak Street 11/7

Gyumri

40.T. Mets Street 67B

Vanadzor

41.G. Lusavorich Street 54A/1

Vanadzor

42.V. Teryan Street 83/50

Yerevan

43.Hanrapetutyan Street 20

Abovyan

44.Hatis Street 1/30/42

Abovyan

45.Nairyan Street 160

Sevan

46.Baghramyan Street 59A

Ejmiatsin

47.Khanjyan Street 47

Ararat

48.Shahumyan Street 50/4

Armavir

49.Crossroad Mashtots Street & Kostanyan Street

Ejmiatsin

50.Avetisyan Street 1A/66

Kapan

51.T. Mets Street 59

Yerevan

52.Nzhdeh Street 3/1

Gyumri

53.Shahumyan Street 188/22

Gyumri

54.Hanrapetutyan Street 33/3

Armavir

55.Vazgen I Street 10D/1

Ejmiatsin

56.R. Meliqyan Street 8/1

Kapan

57.Alma-Ata Street 94

Yerevan

58.Isakov Avenue 3/12

Yerevan

59.S. Tarontsi Street 22A

Yerevan

60.Babajanyan Street 23/2

Yerevan

61.Khudyakov Street 165/2

Yerevan

62.T. Mets Street 10

Yerevan

63.Charents Street 196

Eghvard

64.Ohanov Street 21

Yerevan

65.T. Mets Street 36/219

Yerevan

66.A. Khachatryan Street 4/1

Yerevan

67.Artashesyan Street 25/6

Yerevan

68.“Natali Pharm Malatia" Medical Center

Daniel Varuzhani Street 28A

Malatia-Sebastia District

Yerevan 0032

Telephone: (374 10) 773 930 / 779 779

69.Polyclinic of "Natali Pharm Malatia”

Daniel Varuzhani Street 28A

Malatia-Sebastia District

Yerevan 0032

Telephone: (374 10) 774 670

Managing Director : Narine Igityan

SPECIAL NOTES

You enquired on : “NATALI FARM LTD (WERSJA ANG NATALY PHARM LLC)”. Please note that the correct registered name is as per heading.

The address which you provided : “Ul Abovyan 42-2, Erewan Armenia” is misspelt and applies to subject's registered office address. Please note that subject’s correct address is as per heading.

Interviewed : Susanna Asatryan (Accountant).

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.11
UK Pound	1	Rs.101.03
Euro	1	Rs.70.71

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TRU

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.