MIRA INFORM REPORT

Report Date :

04.10.2011

IDENTIFICATION DETAILS

Name :	SUMY PLANT OF PUMPING AND POWER ENGINEERING NASOSENERGOMASH, PJSC
Registered Office :	1 Pryvokzalna sq., Sumy, 40011
Country :	Ukraine
Financials (as on) :	31.03.2011
Date of Incorporation :	09.10.1997
Com. Reg. No.:	05785448
Legal Form :	Public Joint-Stock Company
Line of Business :	Manufacturing of pumps

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 Limit :	500 000 EUR
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^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
Ukraine	b2	b2

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

Identification

Full Name

:

Publichne aktsionerne tovarystvo Sumskyy zavod nasosonogo ta energetychnogo mashynobuduvannya NASOSENERGOMASH

Name in English

:

Sumy plant of pumping and power engineering NASOSENERGOMASH, PJSC

Office address

:

1 Pryvokzalna sq., Sumy, 40011, Ukraine

Legal Address

:

1 Pryvokzalna sq., Sumy, 40011, Ukraine

Contacts

:

-	Phone	:	(+38 0542) 619975
-	Fax	:	(+38 0542) 780445
-	E-mail	:	info@nempump.com
-	WWW	:	www.nempump.com

company SUMMARY

Legal Form : PAT (Public Joint-Stock Company by Ukrainian Law)

Incorporation : 1997

Staff : 2 000

Litigation events : n/a Remarks on payments : n/a

Sales :	107 789.00 th UAH ( for 3 months, ended 31.03.2011 )
	385 660.00 th UAH ( for 12 months, ended 31.12.2010 )

Credit Opinion

Credit Limit

:

500 000 EUR Credit line at value over the Credit Limit is advised to be secured with proper guarantees.

Incorporation

:

1997

Registration Data

Date of registration

:

09.10.1997

Registration number

:

05785448

Registr. authority

:

Executive committee of city council (Sumy, Ukraine)

VAT number

:

057854418194

Registr. place

:

Ukraine

Number of VAT-certificate: 100335943 Date of issue: 19.05.2011

Legal Form

:

PAT (Public Joint-Stock Company by Ukrainian Law)

since 20.04.2011

Share Capital

:

24 721 658 UAH (registered)

since 09.10.1997

Shareholders

:

The information about the shareholders is not available at the official sources. Due to the companys legal form (JSC) the list of shareholders is kept by the Registrar with the restricted public access. According to the mass-media data as of 15.04.2009 OJSC "GRUPPA GMS" company (Russian Federation) is the shareholder of NASOSENERGOMASH company (share - 82.9984%). Source: http://www.smida.gov.ua/emitents/owners_zvit.php?id=05785448

Board / Executives

Executives

Director

:

Mr Yamburenko Vladimir Nikolaevich (Ukraine)

Authorised signature

:

Mr Yamburenko Vladimir Nikolaevich

Changes in Registration Data

- 20.04.2011

:

name

- 05.02.2009

:

managers, authorised signature

- 22.03.2006

:

managers, authorised signature

- 14.07.2003

:

managers, authorised signature

- 20.03.2003

:

managers, authorised signature

- 09.06.2000

:

managers, authorised signature

Activities

:

-	3561	Pumps and pumping equipment
		(NACE 2912: Manufacture of pumps and compressors)

Manufacturing of pumps.

Staff employed

:

2 000

Staff History

:

-	2 000 [E]
	( the data as of 13.07.2011 )
-	1 911
	Official data.
	( the data as of 31.03.2010 )
-	1 911
	( the data as of 31.12.2009 )

Export

- 01.05.2011

:

Fiscal period: 4 month(s), currency: UAH

115 164 432.00

Iran, Hungary, China, India, Kazakhstan

- 01.01.2011

:

Fiscal period: 12 month(s), currency: UAH

349 997 369.00

Russian Federation, Iran, Turkmenistan, Kazakhstan, Armenia

- 01.01.2010

:

Fiscal period: 12 month(s), currency: UAH

301 774 709.00

Iran, India, Italy, Russian Federation, Lithuania

Import

- 01.05.2011

:

Fiscal period: 4 month(s), currency: UAH

322 594 584.00

Russian Federation, Korea Republic, Lithuania, Germany, Czech Republic

- 01.01.2011

:

Fiscal period: 12 month(s), currency: UAH

135 483 739.00

Korea, Republic, Germany, Russian Federation, Italy, Lithuania

- 01.01.2010

:

Fiscal period: 12 month(s), currency: UAH

41 294 502.00

Korea, Republic, Germany, Russian Federation, Switzerland, Czech Republic

Facilities

Real estate

:

own:
-	Premises - Office and production
	address	:	1 Pryvokzalna sq., Sumy, 40000, Ukraine

Branches

:

There are 8 branches in Ukraine.

Subsidiaries and Participation

:

There are 9 subsidiaries in Ukraine.

Bankers

:

-	ALFA-BANK (Ukraine)
	bank code	:	300346
	account(s)	:	26007100366001 USD
-	OTP BANK (Ukraine)
	bank code	:	300528
	account(s)	:	26001001300313 USD
-	UKREKSIMBANK (Ukraine)
	bank code	:	322313
	account(s)	:	2600801282681 USD

Clients

:

-	Ahvaz Electric Power Generation Management Company (Iran)
-	JSW Steel Limited (India)
-	Jiangsu Nuclear Power Corporation (China)
-	SHAH ALLOYS LTD. (India)
-	VAT Mozrskiy NPZ (Belarus)

Suppliers

:

-	J.B. Plus s.r.o (Czechia)
-	NWM Trade & Consulting GmbH (Germany)
-	REINZ Dichtungs-GmbH & Co. (Germany)
-	UAB AUTOVERSLAS Lypkiu (Lithuania)
-	ZAT Gidromashservis (Russian Federation)

Other associated Companies

:

-	Holding OAO Group GMS
	NASOSENERGOMASH is the part of the OAO Group GMS (machine-building holding). Source:http://www.nempump.com/ru/company

Litigation

:

According to the data of Bulletin of the State Registration as of 03.10.2011, there are no bankruptcy registered in the name of the subject company.

There have been traced 23 court records where the subject company is filed as a defendant, co-defendant, claimant and co-claimant in the period from 20.06.2006 up to 30.08.2011. There are no bankruptcy/insolvency records filed. These litigation processes arise in the course of company's usual operation

Remarks on payment

:

No official information is available according to the Ukrainian legislation.

Financial Elements

Period, months	3	12	12
Ended	31.03.2011	31.12.2010	31.12.2009
Currency	UAH th	UAH th	UAH th
Non-current assets	275 545.00	201 989.00	95 984.00
incl: - Fixed assets	263 107.00	189 659.00	40 633.00
- Financial assets	311.00	311.00	50 773.00
Current assets	1 056 462.00	967 026.00	202 279.00
incl: - Stock	421 888.00	256 544.00	95 722.00
- Debtors	630 175.00	693 855.00	80 842.00
- Cash	3 328.00	16 105.00	25 405.00
ASSETS TOTAL	1 333 128.00	1 170 395.00	299 990.00
Equity	190 192.00	186 682.00	137 855.00
incl: - Share capital	24 722.00	24 722.00	24 722.00
Liabilities Total	1 135 851.00	978 507.00	158 813.00
incl: - Long-term liabilities	57 377.00	55 804.00	36 484.00
- Short-term liabilities	1 078 474.00	922 703.00	122 329.00
EQUITY AND LIABILITIES TOTAL	1 333 128.00	1 170 395.00	299 990.00
Net sales	107 789.00	385 660.00	303 309.00
Cost of goods sold	72 779.00	231 792.00	196 812.00
Operating profit	16 075.00	88 419.00	66 070.00
Profit before taxation	13 303.00	75 065.00	71 768.00
Net profit	3 510.00	48 827.00	51 759.00
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	12.34	19.46	23.66
Profit before taxation / Net sales
Operating margin of profit, %	14.91	22.93	21.78
Operating profit / Net sales
Return on investment, %	6.99	40.21	52.06
Profit before taxation / Equity
Current assets turnover	0.10	0.40	1.50
Net sales / Current assets
Working capital	-22 012.00	44 323.00	79 950.00
Current assets - Short-term liabilities
Leverage	0.14	0.16	0.46
Equity / Total assets
Current ratio	0.98	1.05	1.65
Current assets / Short-term liabilities
Quick ratio	0.59	0.77	0.87
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	5.97	5.24	1.15
Total liabilities / Equity

The company is registered as a taxpayer at the State Tax Administration

FINAL COMMENTS

The information given in this report was collected from all the sources accessible. We contacted Mrs Skomproha Yuliya (secretary) on 03.10.2011 by the tel. number: +38 0542 619975. She confirmed the general information and asked us to send a questionnaire. An inquiry was sent for the attention of the Director but no answer was received. If the additional information comes in we will update the subject report.

Legal Form History

- 09.10.1997

:

VAT (Public Joint-Stock Company by Ukrainian Law)

( the data as of 09.10.1997, cancelled since 20.04.2011 )

COUNTRY REVIEW

UKRAINIAN COUNTRY REVIEW, UPDATE AS OF AUGUST 2010 (DATA OF THE MINISTRY OF ECONOMI

CS)

Gross Domestic Product

By a preliminary estimate, GDP in the first quarter of 2010, (in invariable prices

of 2007) grew by 4.8% in comparison with the first quarter of 2009.

Real GDP for 2009 in comparison with 2008 decreased by 15.1%, nominal GDP for the r

eporting period amounted to 914.7 bln UAH .

Reduction of gross added cost in 2009 compared to 2008 has occurred in construction

(by 45.9%), processing industry (by 26.6%), commerce (by 15.7%), production and di

stribution of electricity, gas and water (11.7%), extraction industry (by 10.5%), t

ransport and communication (by 9.1%).

Industrial sector

The volume of industrial production for January-June 2010 compared to the relevant

period of the last year increased by 12.0%. Industrial output of processing industr

y grew by 13.8%, extraction industry - by 6,1%, production and distribution of elec

tricity, gas and water - by 12.5%.

In June 2010 compared to May 2010 the total industrial output decreased by 0.5%.

In the processing industry production output decreased by 0.4%. The volume of indus

trial production reduced significantly among enterprises of metallurgical productio

n and manufacturing of finished metal products - by 11.0%, coke production, petrole

um refining products - by 10.1%. However, production increased in light industry (b

y 20.2%), pulp and paper production, publishing (by 9.6%), mechanical engineering (

7.6%) and wood processing and manufacturing of wood products, except furniture (by

6.7%), manufacture of other nonmetallic mineral products (by 3.4%),

food beverages and tobacco (by 2.7%).

In the mining industry industrial output decreased compared to May 2010 by 2.7%, in

cluding industrial output in mining operations, except energy minerals mining which

decreased by 4.1% and mining of energy minerals - by 1.6% down.

Industrial production for individual activities

Mechanical engineering.* Industrial production of engineering enterprises (machine-

building industry) increased by 30.1% in January-June 2010 compared to the relevant

period of the last year. The growth of the machinery production is caused by the i

ncrease in production at enterprises, which produce railway rolling stock - by 156.

7%, machinery and equipment for agriculture and forestry - by 74.5%, machinery and

equipment for the mining industry and construction - by 44.6%, production of equipm

ent for radio, television and communication - by 23.7%, electric machines and equip

ment - by 12.9%, machinery and equipment for metallurgy - by 7.3%,

road transportation - by 2.2%. In January-May 2010 the number of profitable enterpr

ises was 52.2% (last year - 50.7%).

*Iron and steel production and manufacture of fabricated metal products.*

In January-June 2010 industry output compared to the corresponding period in 2009 i

ncreased by 19.1%. The metallurgical enterprises showed the 25,7 increase in the ou

tput of other types of primary processing of steel, fabricated metal products: +19.

8%, iron, steel and ferroalloys: +18.8%, pipes: +13.9%, production of nonferrous me

tals: +12,8%. In January-May 2010 the number of profitable enterprises was 48.4% (l

ast year - 43.2%).

*Chemical and petrochemical industries.*

Industrial output in January-June 2010 compared to the corresponding period of 2009

increased by 21.4%, including the increase in the production of basic chemical pro

ducts - by 20,8%, pharmaceutical products - by 37.6% soap and detergents, cleaner a

nd polish, perfume and cosmetics - by 9.2%, varnishes and paints - by 2.5%, rubber

and plastic products - by 16.7% and 7.7% accordingly. In January-May 2010 the numbe

r of profitable enterprises was 63.2% (last year - 62.6%).

*Production of food, beverages and tobacco products.*

Industrial output of the branch in January-June 2010 compared to the corresponding

period of the last year increased by 0.8%. At the enterprises which produce oils an

d fats production growth was 10.3%, meat industry - 5.3%, confectionery industry -

4.6%. Production reduced in processing and preservation of fruits and vegetables (b

y 5.8%), in dairy and beverage industry (by 4.0%), manufacture of tobacco products

(by 2.3%). In January-May 2010 the number of profitable enterprises was 57.1% (last

year - 59.2%).

*Light industry.*

In January-June 2010 compared to the corresponding period of the last year output g

rew by 7.5%. The enterprises of textile manufacture, clothes, fur and fur productio

n output increased by 8.2%, leather production, leather and other materials - by 5.

1%. In January-May 2010 the number of profitable enterprises constituted 52.6% (las

t year 54.8%).

Wholesale and retail trade

The physical volume of wholesale trade turnover in January-June 2010 compared to th

e corresponding period of the last year increased by 5.0% (last year - decreased by

24.6%).

Retail trade turnover in January-June 2010 compared to the corresponding period in

2009 increased by 2.3% (last year - was reduced by 15.2%).

Volume of retail trade of enterprises, which operate in retail trade and restaurant

business, in January-June 2010 increased in comparable prices against the same per

iod of the last year by 2.5% (last year - was reduced by 19.9%).

Foreign trade in goods

In January-May 2010 export of goods amounted to 18,769.0 mln USD and increased comp

ared to the corresponding period of 2009 by 31.4% and import amounted to 20,869.3 m

ln USD that is 25.9% up. A negative balance of foreign trade amounted to 2,100.3 ml

n USD (last year negative balance amounted to 2,290.3 mln USD).

Import-export ratio of goods in January-May 2010 amounted to 0.90 (last year - 0.86

).

The largest volume of export was supplied to Russian Federation 24.9% of total ex

port, Turkey - 6.6%, Italy - 4.6%, Belarus - 3.5%, Poland - 3.2%, Germany - 3 1%, I

ndia - 2.9%. In January-May 2010, compared to the corresponding period of 2009, exp

ort to Russia increased by 68.2%, import 2.2 times. The balance of foreign trade

with Russia was negative and amounted to 3,054.2 mln USD.

The greatest import to Ukraine came from Russia - 37.1% of total imports, Germany -

7.3%, China 6.9%, Poland 4.1%, Belarus - 3.2%, the USA 2.9%, Italy - 2.4%.

*Labour market*

During June 2010 the number of citizens who had the status of unemployed has decrea

sed by 4.9% and amounted 398.7 million people as of July 1, 2010. Since 2010 the nu

mber of registered unemployed has decreased by 25.0% (in comparison with June 2009

- by 39.5%).

Registered unemployment rate on July 1, 2010 amounted to 1.4% of the population of

working age. The highest unemployment rate was observed in Zhytomyr (2.6%), Poltava

(2.4%), Rivne and Sumy (2.3% each) regions and the lowest one - in Kyiv (0.3%).

APPENDIX A

Financial Statements

Period, months	3	12	12
Ended	31.03.2011	31.12.2010	31.12.2009
Currency	UAH th	UAH th	UAH th
PROFIT AND LOSS ACCOUNT (s)
010 Sales revenue (Income from sales of goods, work,	107 789.00	385 660.00	303 309.00
services
015 VAT tax	1 348.00	8 342.00	1 938.00
020 Excise tax	0.00	0.00	0.00
025
030 Other compulsory payments	0.00	26.00	29.00
035 Net sales revenue	106 441.00	377 292.00	301 342.00
040 Cost of goods, work, services	72 779.00	231 792.00	196 812.00
050 Gross profit	33 662.00	145 500.00	104 530.00
055 Gross loss	0.00	0.00	0.00
060 Other operating income	156 167.00	518 476.00	271 577.00
070 Administrative and management costs	11 045.00	39 068.00	22 229.00
080 Distribution costs	3 556.00	13 227.00	11 880.00
090 Other operating charges	159 153.00	523 262.00	275 928.00
100 Operating profit	16 075.00	88 419.00	66 070.00
105 Operating loss	0.00	0.00	0.00
110 Income from capital participating	0.00	0.00	13 897.00
120 Other financial income	0.00	0.00	0.00
130 Other income	324.00	14 222.00	11 855.00
140 Financial charges	1 014.00	3 594.00	6 698.00
150 Capital participating expenses	0.00	3 992.00	0.00
160 Other expenses	2 082.00	20 027.00	13 314.00
170 Profit from ordinary activity before taxation	13 303.00	75 028.00	71 810.00
175 Loss from ordinary activity before taxation	0.00	0.00	0.00
180 Ordinary activity Income-tax	9 793.00	26 238.00	20 009.00
190 Profit from ordinary activity	3 510.00	48 790.00	51 801.00
195 Loss from ordinary activity	0.00	0.00	0.00
200 Extraordinary income	0.00	41.00	0.00
205 Extraordinary charges	0.00	4.00	42.00
210 Extraordinary activity Income-Tax	0.00	0.00	0.00
220 Net profit	3 510.00	48 827.00	51 759.00
225 Net loss	0.00	0.00	0.00
Operating charges details:
230 Tangible expenses	98 847.00	227 493.00	130 969.00
240 Payroll costs	27 308.00	74 551.00	55 638.00
250 Allocation to social needs	10 257.00	27 188.00	20 361.00
260 Amortization charges	1 850.00	5 413.00	2 165.00
270 Other operating charges	9 322.00	46 256.00	33 609.00
280 Operating charges total	147 584.00	380 901.00	242 742.00
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
BALANCE SHEET
ASSETS
I. NON-CURRENT ASSETS
Intangible assets
010 residual value	3 345.00	3 226.00	6.00
011 acquisition cost	3 772.00	3 480.00	242.00
012 depreciation	427.00	254.00	236.00
020 Construction in progress	191 305.00	126 260.00	9 778.00
Fixed assets
030 residual assets	71 802.00	63 399.00	30 855.00
031 acquisition cost	122 896.00	113 006.00	75 840.00
032 depreciation	51 094.00	49 607.00	44 985.00
Long-term financial assets
040 Capital participation in other enterprises	0.00	0.00	50 462.00
045 Other financial investments	311.00	311.00	311.00
050 Long-term accounts receivable	1 129.00	1 140.00	10.00
060 Deferred tax charges	7 650.00	7 650.00	4 562.00
070 Other non-current assets	0.00	0.00	0.00
080 NON-CURRENT ASSETS TOTAL	275 545.00	201 989.00	95 984.00
II. CURRENT ASSETS
Stock
100 Raw materials, consumables and supplies	204 729.00	96 584.00	17 528.00
110 Working and productive animals	0.00	0.00	0.00
120 Construction in progress	193 749.00	136 760.00	51 557.00
130 Finished goods	23 341.00	23 133.00	26 579.00
140 Goods for resale	69.00	67.00	58.00
150 Bills of exchange receivable	0.00	0.00	0.00
Trade debtors:
160 net realizable value	10 254.00	7 379.00	28 871.00
161 acquisition cost	10 457.00	7 582.00	29 073.00
162 doubtful debts reserve	203.00	203.00	202.00
Accounts receivable
170 Budget accounts receivable	116 366.00	89 576.00	21 649.00
180 Payments in advance	501 946.00	595 475.00	29 554.00
190 Accrued income	0.00	0.00	0.00
200 Internal payments	0.00	0.00	0.00
210 Other current accounts receivable	1 609.00	1 425.00	768.00
220 Current financial investments	0.00	0.00	0.00
Cash at bank and in hand
230 Funds in local currency	1 052.00	15 162.00	15 231.00
240 Funds in foreign currencies	2 276.00	943.00	10 174.00
250 Other current assets	1 071.00	522.00	310.00
260 CURRENT ASSETS TOTAL	1 056 462.00	967 026.00	202 279.00
270 III. DEFERRED CHARGES	1 121.00	1 380.00	1 727.00
280 ASSETS TOTAL	1 333 128.00	1 170 395.00	299 990.00
EQUITY AND LIABILITIES
I. CAPITAL AND RESERVES
300 Authorized capital	24 722.00	24 722.00	24 722.00
310 Share capital	0.00	0.00	0.00
320 Additional contributed capital	270.00	270.00	269.00
330 Other additional capital	10 648.00	10 652.00	10 757.00
340 Reserve capital	6 952.00	6 952.00	4 375.00
350 Retained earnings (loss)	147 613.00	144 099.00	97 745.00
360 Unpaid capital (minus)	0.00	0.00	0.00
370 Retired capital (minus)	13.00	13.00	13.00
380 CAPITAL AND RESERVES TOTAL	190 192.00	186 682.00	137 855.00
II. PROVISIONS FOR EXPENSES AND
LIABILITIES
400 Provisions for payments to personnel	6 777.00	4 957.00	3 150.00
410 Other provisions	308.00	249.00	172.00
415 Insurance reserves	0.00	0.00	0.00
416 portion covered by insurers	0.00	0.00	0.00
420 Special-purpose funding	0.00	0.00	0.00
430 PROVISIONS FOR EXPENSES AND	7 085.00	5 206.00	3 322.00
LIABILITIES TOTAL
III. LONG-TERM LIABILITIES
440 Long-term amounts owed to credit institutions	0.00	0.00	0.00
450 Other financial liabilities	18 980.00	17 399.00	0.00
460 Deferred tax liabilities	0.00	0.00	0.00
470 Other long-term liabilities	38 397.00	38 405.00	36 484.00
480 TOTAL LONG-TERM LIABILITIES	57 377.00	55 804.00	36 484.00
IV. SHORT-TERM LIABILITIES
500 Short-term amounts owed to credit institutions	2 630.00	0.00	24 844.00
510 Short-term portion of long-term liabilities	0.00	0.00	0.00
520 Bills of exchange payable	0.00	0.00	0.00
530 Trade creditors	70 897.00	19 318.00	7 167.00
Accounts payable:
540 Advance payments	963 718.00	857 604.00	75 536.00
550 Budget accounts payable	5 339.00	10 935.00	4 868.00
560 Non-budget accounts payable	0.00	0.00	0.00
570 Insurance payments	2 509.00	2 092.00	1 539.00
580 Accrued payroll	5 118.00	4 625.00	3 346.00
590 Liabilities to shareholders	140.00	141.00	152.00
600 Internal payments	0.00	0.00	0.00
610 Other short-term liabilities	28 123.00	27 988.00	4 877.00
620 SHORT-TERM LIABILITIES TOTAL	1 078 474.00	922 703.00	122 329.00
630 V. DEFERRED INCOME	0.00	0.00	0.00
640 EQUITY AND LIABILITIES TOTAL	1 333 128.00	1 170 395.00	299 990.00

- 31.12.2008

:

Fiscal period: 12 month(s), currency: UAH, th
PROFIT AND LOSS ACCOUNT (s)
010 Sales revenue (Income from sales of goods, work,	238 749.00
services
015 VAT tax	4 202.00
020 Excise tax	0.00
025
030 Other compulsory payments	0.00
035 Net sales revenue	234 547.00
040 Cost of goods, work, services	175 379.00
050 Gross profit	59 168.00
055 Gross loss	0.00
060 Other operating income	223 842.00
070 Administrative and management costs	16 971.00
080 Distribution costs	10 430.00
090 Other operating charges	241 461.00
100 Operating profit	14 148.00
105 Operating loss