MIRA INFORM REPORT

Report Date :

17.05.2012

IDENTIFICATION DETAILS

Name :	SISECAM SODA LUKAVAC D.O.O.
Registered Office :	društvo za proizvodnju lake i teške (guste) sode i drugih proizvoda na bazi sode Lukavac, Prva ulica br. 1 BA 75300 Lukavac
Country :	Bosnia and Herzegovina
Financials (as on) :	31.12.2011
Year of Establishment :	2006
Legal Form :	Limited Liability Company
Line of Business :	Manufacturer of other inorganic basic chemicals
No. of Employees :	611

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^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
Bosnia and Herzegovina	B2	B2

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

Company name & address

SISECAM SODA LUKAVAC d.o.o.

društvo za proizvodnju lake i teške (guste) sode i drugih proizvoda na bazi sode Lukavac

Prva ulica br. 1

BA 75300 Lukavac

Tel: +387 35/552323, 552300, 552301

Fax: +387 35/552696, 552699, 552709

E-mail: sodalukavac@sisecam.com

Web: www.sisecam.ba

Company summary

Company profile

Established: 2006.
Statistic number: 4209796740001
Basic capital: KM 121.971.070,00
Activity: Manufacture of other inorganic basic chemicals (20.13)
Staff: 611
Last available data for year: 2011
Total revenue: KM 104.751.000
Loss before taxes: KM 4.510.097
Financial stability ratio: 0,9203
Solvency ratio (%): 30,8621
Current ratio: 1,0332

Company summary

Legal form	limited liability company
Established	2006
Registered	2006-08-28, Court Tuzla, MBS: 1-13849 last court entry: 2012-04-13 VAT number: 209796740001 Tax number: 03074460 Statistic number: 4209796740001

Establishers	FABRIKA SODE LUKAVAC d.d. u stečaju Lukavac (Statistic number: 4209465800004), Prva ulica br. 1, 75300 Lukavac, Bosnia and Herzegovina	10,70%
	SODA SANAYII A.S. Is kuleleri Kule 3, 34330 4. Levent, Istambul, Turkey	89,30%

Basic capital	KM 121.971.070,00
	- basic capital according to information from court register Changes of basic capital according to court register: -in 2012 the capital was increased from KM 112.191.920,00 to KM 121.970.070,00

Management

Dőnmez Umut Baris, manager Turkey

Activity

Manufacture of other inorganic basic chemicals Production of light and dense soda ash and refined sodium bicarbonate Production capacity: cca 250.000 tonnes per year Buying and selling goods Mediation on foreign and domestic market Products: SODA ASH LIGHT, SODA ASH DENSE, BICARBONATE TECHNICAL GRADE, BICARBONATE FEED GRADE, BICARBONATE FOOD GRADE legal site and business premises are located at the above address Basic activity code (according to NACE Rev.2): Manufacture of other inorganic basic chemicals

Staff	2007	774	employees
	2008	740	employees
	2009	668	employees
	2010	640	employees
	2011	611	employees

Total revenue	2007	KM	42.821.000
	2008	KM	63.035.000
	2009	KM	61.407.000
	2010	KM	83.263.850
	2011	KM	104.751.000

Real estate

the company owns real estates Book value of ground 2011-12-31: KM 12.831.796,00 Book value of buildings 2011-12-31: KM 29.947.885,00 information about eventual mortgage existance not available insight into real estate register not possible

Financial data

Assets	Currency: KM ( x 1.000 )	2011.12.31	2010.12.31	2009.12.31
	FIXED ASSETS	137.804	130.059	117.717
	Intangible assets	3.992	4.715	5.363
	Tangible assets	133.496	124.890	112.118
	- land and woods	12.832	12.832	12.832
	- buildings	29.948	25.433	23.769
	- plants and machinery	89.068	76.797	52.960
	- advance payments for tang. assets		560	206
	- tangible assets in preparement	1.648	9.269	22.351
	Long term financ. assets	0	0	0
	Long term receivables	316	454	236
	CURRENT ASSETS	40.073	24.859	25.480
	Inventories	12.614	10.364	15.584
	Short term receivables	19.470	14.168	9.688
	- from sales	17.862	11.370	8.093
	- others	1.608	2.797	1.595
	Short term financial assets	0	0	0
	Cash at bank and in hand	7.989	327	207
	ACCRUALS	50	30	32
	LOSS OVER THE CAPITAL	0	0	0
	TOTAL ASSETS	177.927	154.948	143.228
Liabilities	Currency: KM ( x 1.000 )	2011.12.31	2010.12.31	2009.12.31
	EQUITY	54.912	39.864	53.031
	Subscribed capital (in court register KM 121.971.070,00)	108.280	92.634	92.634
	Reserves	3.912	0	0
	Loss brought forward	57.280	52.770	39.602
	PROVISIONS	415	425	410
	LONG TERM LIABILITIES	83.110	71.914	36.108
	SHORT TERM LIABILITIES	38.786	42.279	52.134
	Credits	15.208	21.941	34.721
	Deposits, advances payments	257	209	214
	To suppliers	20.360	17.402	14.451
	To staff	826
	Taxes, fees, etc.	649	1.080	815
	Other short term liabilities	1.486	1.647	1.933
	DEFFERED ITEMS	704	466	1.546
	TOTAL LIABILITIES	177.927	154.948	143.228
Profit/loss account	Currency: KM ( x 1.000 )	2011.12.31	2010.12.31	2009.12.31
	OPERATING REVENUES	102.455	82.699	61.369
	Sales in the country	102.406	79.616	60.466
	Other revenues	49	3.083	903
	OPERATING EXPENSES	102.814	92.196	71.171
	Increase in inventories	287	0	0
	Material costs	59.731	75.225	54.934
	Staff costs	11.166
	Depreciation of fixed assets	12.797
	Other operating expenses	19.407
	FINANCIAL REVENUES	563	565	38
	FINANCIAL EXPENSES	5.041	3.374	3.373
	EXTRAORDINARY REVENUES	1.733	0	0
	EXTRAORDINARY EXPENSES	1.406	862	451
	TOTAL REVENUES	104.751	83.264	61.407
	TOTAL EXPENSES	109.261	96.431	74.995
	Profit before taxation	0	0	0
	Loss before taxation	4.510	13.168	13.588
	Taxation on profit	0	0	0
	PROFIT OF THE PERIOD	0	0	0
	LOSS OF THE PERIOD	4.510	13.168	13.588
Financial ratios		2011.12.31	2010.12.31	2009.12.31
	Financial stability ratio	0,9203	0,7990	0,6718
	Solvency ratio (%)	30,8621	25,7271	37,0256
	Debt ratio (in years)	9,5254	***	***
	Liquidity ratio	0,7080	0,3428	0,1898
	Current ratio	1,0332	0,5880	0,4887
	Total assets turnover	0,5887	0,5374	0,4287
	Inventories turnover	8,3043	8,0336	3,9403
	Collection period (in days)	68,4452	64,0625	57,6808
	Creditors Days	71,5739	78,6886	86,0353
	Inventories bonding (in days)	43,3508	44,8117	91,3634
	Total revenue per employee (x 1.000)	171,4419	130,0998	91,9267
	Loss per employee (x 1.000)	7,3813	20,5743	20,3415
	Equity per employee (x 1.000)	89,8723	62,2870	79,3881
	Total assets per employee (x 1.000)	291,2062	242,1068	214,4137
	Staff costs/Turnover (%)	10,6596	***	***
	EBIT (x 1.000)	-359	-9.497,3400	-9.802,2400
	EBITDA (x 1.000)	12.438	-9.497,3400	-9.802,2400
	EBIT Margin (%)	-0,3504	-11,4843	-15,9727
	EBITDA Margin (%)	12,1400	-11,4843	-15,9727

Remarks	2007 loss	KM	13.580.000
	2008 loss	KM	7.850.000
	2009 loss	KM	13.588.000
	2010 loss	KM	13.167.520
	2011 loss	KM	4.510.097

Short company name: SSL d.o.o. Lukavac

Due to continuously business with the loss since the establishment, further development should be monitored.

According to data from the court register, the company SISECAM SODA LUKAVAC d.o.o. is not in bankruptcy or liquidation.

The company SISECAM SODA LUKAVAC d.o.o. Lukavac is a joint-venture of SOODA SANAYII A.S. and FABRIKA SODE LUKAVAC d.d. in bankruptcy Lukavac. The contract was signed on 2006-05-04.

The company FABRIKA SODE LUKAVAC d.d. in bankruptcy Lukavac was established in 1893 as "Prva bosanska tvornica amoniacne sode". Before the civil war the company had 1.850 employees, after the war the production was closed down. The total rebuilding was finished in 2003-11-03 and the company took up business activity again. Today, company is in bankruptcy and is not business active.

SODA SANAYII A.S. (established in 1969) is a subsidiary of SISECAM. In Turkey the Sisecam group is leading glassfactory (production of a wide range of glass products and chemicals). SODA SANAYII fabricates chrome-chemicals and sodium-carbonate.

Exchange rate:
2007.12.31: EUR 1 = KM 1,9558
2008.12.31: EUR 1 = KM 1,9558
2009.12.31: EUR 1 = KM 1,9558
2010.12.31: EUR 1 = KM 1,9558
2011.12.31: EUR 1 = KM 1,9558

Inflations rate:
2007: 1,5%
2008: 7,4%
2009: -0,4%
2010: 2,1%
2011: 3,1%

Bankers

VOLKSBANK Account number: 1404010014822938 UNICREDIT BANK d.d. Account number: 3389002200929331 RAIFFEISEN BANK d.d. BIH Account number: 1610250020710032 TURKISH ZIRAAT BANK BOSNIA d.d.-Sarajevo Account number: 1860001023395032 According to information from Central Bank in Bosnia and Hercegovina from 2012-05-10 the company accounts are not blocked.

Mode of payment

mostly within agreed terms, but partly also delayed

Credit opinion

business connections appear permissible

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.29
UK Pound	1	Rs.86.61
Euro	1	Rs.68.87

INFORMATION DETAILS

Report Prepared by :

MNL

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.