MIRA INFORM REPORT

Report Date :

16.04.2013

IDENTIFICATION DETAILS

Name :	GOVCREST INTERNATIONAL SRL
Registered Office :	Bucharest, 32 Pache Protopopescu Ave.
Country :	Romania
Financials (as on) :	30.06.2012
Date of Incorporation :	16.07.1991
Legal Form :	Limited liability company, entirely Romanian capital
Line of Business :	Subject is involved in the sale of fuels, ores, metals and industrial chemicals
No. of Employees :	23

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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 European Union 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. The country emerged in 2000 from a punishing three-year recession thanks to strong demand in EU export markets. Domestic consumption and investment fueled strong GDP growth, but led to large current account imbalances. 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. Inflation rose in 2007-08, driven by strong consumer demand, high wage growth, rising energy costs, a nation-wide drought, and a relaxation of fiscal discipline. As a result of the increase in rising fiscal and current account defcits and the global financial crisis, Romania signed on to a $26 billion emergency assistance package from the IMF, the EU, and other international lenders. Worsening international financial markets, as well as a series of drastic austerity measures implemented to meet Romania's obligations under the IMF-led bail-out agreement contributed to a GDP contraction of 6.6% in 2009, followed by a 1.1% GDP contraction in 2010. The economy returned to positive growth in 2011 due to strong exports, a better than expected harvest, and weak domestic demand. In 2012, however, growth slowed to less than 1%, partially due to slackening export demand and an extended drought that resulted in an exceptionally poor harvest. 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. The Romanian authorities announced that they do not intend to draw funds under the agreement

Source : CIA

Company name & address

NAME OF THE COMPANY	GOVCREST INTERNATIONAL SRL
Address	Bucharest, 32 Pache Protopopescu Ave.
Phone no. Cell phone no.	+4 0252 4985; 4986	Fax no.	+402524996
Web-site	www.govcrest.ro	E-mail address	office@govcrest.ro

HISTORIC/OFFICIAL DATA

Date of foundation	16.07.1991
Present legal form	Limited liability company, entirely Romanian capital
Registered with the Trade Registry	J40/6572/1991
VAT no.	2595924
Registered capital	2,325,400 RON
Shareholders	individuals
	Popa Emilia Anastasia , born on 17.03.1956
	Participation			0.63635%
	Petre Constanta, born on 30.08.1947
	Participation			0.45455%
	Boghiu Stefan, born on 03.01.1952
	Participation			47.45455%
	Dan Bogdan Nicolae, born on 27.07.1960
	Participation			0.45455%
	Legla person
	GRUPUL INDUSTRIAL VOICULESCU SI COMPANIA (GRIVCO) SA
	Address: Bucharest, 1B Garlei Str.
	participation			51%
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	2007	2008	2009	2010	2011	30.06.2012
total	23	24	23	23	22	23
BUSINESS ACTIVITY : intermediary involved in the sale of fuels, ores, metals and industrial chemicals

OTHER PARTICIPATION

1. Company’s participation	not applicable
2. Shareholders other participation	n/a
REAL ESTATE (RON)
- lands & buildings	2007	2008	2009	2010	2011
	1,673,309	1,658,694	2,571,574	2,542,469	n/a
TANGIBLES*	2,815,903 RON, at 30.06.2012 *According to the accounting standards, for the middle of the year the company is no more obliged to detail its tangible assets, anymore. 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	Administrator President &general manager BOGHIU STEFAN, born on 03.01.1952 App date: 17.06.2004 for unlimited period member DUMITRESCU GORLET IONEL born on 15.08.1951, App date: 20.04.2007 for unlimited period member ENACHE ELENA born on 27.05.1955 App date: 30.11.2009 for unlimited period
CURRENCY Exchange rate of EURO	1 EURO = 3.6102 RON on 31.12.2007 1 EURO = 3.9852 RON on 31.12.2008 1 EURO = 4.2282 RON on 31.12.2009 1 EURO = 4.2848 RON on 31.12.2010 1 EURO = 4.2341 RON on 30.06.2011 1 EURO = 4.3197 RON on 31.12.2011 1 EURO = 4.4494 RON on 30.06.2012

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2011	30.06.2012
INTANGIBLES - TOTAL	0	19,964
TANGIBLES - TOTAL	2,884,577	2,815,903
FINANCIALS - TOTAL	0	0
FIXED ASSETS - TOTAL	2,884,577	2,835,867
STOCKS - TOTAL	777,089	2,586,488
CLAIMS - TOTAL	28,596,033	32,206,073
CURRENT ASSETS	35,644,435	38,721,122
PREPAID EXPENSES	26,110	32,292
DEBTS WITHIN 1 YEAR	29,415,067	33,013,275
DEBTS OVER 1 YEAR	0	0
PROVISIONS	0	0
ADVANCED INCOMES	0	0
REGISTERED CAPITAL	2,325,400	2,325,400
RESERVES	1,317,063	1,317,063
RESERVES FROM ASETS REASSESSMENT	2,246,936	2,246,936
NET RESULT - PROFIT	3,448,529	2,452,517
NET RESULT - LOSS	0	0
NET WORTH	9,140,055	8,576,006
PROFIT & LOSS ACCOUNT	30.06.2011	30.06.2012
Turnover	61,516,718	49,871,753
Own production & services	470,385	618,311
Sales	61,074,651	49,258,354
INCOMES FROM ORDINARY OPERATING ACTIVITY	67,729,462	56,939,424
Raw materials	95,833	6,781
Costs of goods sold	52,933,962	41,454,318
Wages	820,794	784,948
Depreciations & provisions	51,780	76,542
COSTS OF ORDINARY OPERATING ACTIVITY	65,010,834	54,093,101
ORDINARY OPERATING RESULT - PROFIT	2,718,628	2,846,323
ORDINARY OPERATING RESULT - LOSS	0	0
FINANCIAL INCOMES	4,207,768	4,019,977
FINANCIAL COSTS	4,873,682	3,958,725
FINANCIAL RESULT - PROFIT	0	61,252
FINANCIAL RESULT - LOSS	665,914	0
CURRENT RESULT - PROFIT	2,052,714	2,907,575
CURRENT RESULT - LOSS	0	0
Extraordinary incomes	0	0
Extraordinary costs	0	0
EXTRAORDINARY RESULT - PROFIT	0	0
EXTRAORDINARY RESULT - LOSS	0	0
TOTAL INCOMES	71,937,230	60,959,401
TOTAL COSTS	69,884,516	58,051,826
PRETAX RESULT - PROFIT	2,052,714	2,907,575
PRETAX RESULT - LOSS	0	0
TAX ON PROFIT	369,246	455,058
NET RESULT - PROFIT	1,683,468	2,452,517
NET RESULT - LOSS	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 30.06.2012. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 30.06.2012

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

Size

small considering the total no. of employees.

Position & trend

Large volume of sales according to the figures, with positive results. Turnover trend presents an ascendant tendency since 2009, but a slight decrease at June 2012 faces to June 2011. The results are positive and always satisfactory, but since 2008 registered a descendant evolution. However, both key figures stand good.

Business trend should be followed.

Credit facilities are suitable.

	2007	2008	2009	2010	2011	Jun-11	Jun-12
TURNOVER
RON	58,972,459	92,549,279	74,567,564	105,620,288	118,279,545	61,516,718	49,871,753
EURO	16,334,956	23,223,246	17,635,770	24,649,993	27,381,426	14,528,877	11,208,647
GROSS PROFIT
RON	2,935,900	6,356,841	5,839,086	4,297,714	3,957,451	2,052,714	2,907,575
EURO	813,224	1,595,112	1,380,986	1,003,014	916,140	484,805	653,476
NET PROFIT
RON	2,515,949	5,371,356	4,878,482	3,570,967	3,448,529	1,683,468	2,452,517
EURO	696,900	1,347,826	1,153,796	833,403	798,326	397,598	551,202

30.06.2012

CREDITS & LOANS (ACTIVE BALANCE)

Bank credits, on short term (within 1year)

2,906,936

Bank credits, on medium term (over 1year)

0

Other financial loans & afferent interests, on short term (within 1year)

0

Other financial loans & afferent interests, on medium term (over 1year)

0

BALANCE CLAIMS-DEBTS

negative

Total claims

32,206,073

clients & trade debtors

30,101,530

Total debts

33,013,275

- Short term

33,013,275

suppliers & trade creditors

27,549,459

bank credits

2,906,936

other debts

2,186,364

PAYMENTS BEHAVIOR

Correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents between 10.04.2012-10.04.2013

FINANCIAL STRENGTH

3,210,000 EURO

RISK CATEGORY

Normal

BUSINESS RELATIONS

permissible

2007

2008

2009

2010

2011

30.06.2012

Constant good

Liquidity analysis

- current ratio

1.20

1.43

1.28

1.31

1.21

1.17

- quick ratio

0.92

1.21

1.13

1.14

1.19

1.09

Solvability analysis

Over normal limits

- the borrowing ratio (total debts/net worth)

3.29

1.78

2.36

2.34

3.22

3.85

Profitability analysis (%)

Generally satisfactory

- return on capital

53.13

69.84

58.25

37.56

37.73

28.60

- return on assets

12.25

25.00

194.17

11.17

8.94

5.90

- gross profit margin

4.97

6.86

7.83

4.06

3.34

5.83

Activity analysis

Debtors’ control got deteriorated

- debtor’s days

83

47

98

72

88

116

- creditor’s days

69

49

79

54

n/a

n/a

Stocks turnover, times/period

13

31

25

29

152

19

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.63
UK Pound	1	Rs.83.70
Euro	1	Rs.71.42

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%)

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.