MIRA INFORM REPORT

Report Date :

04.12.2013

IDENTIFICATION DETAILS

Name :	AGROTECH SRL
Registered Office :	Brasov county / Brasov – Zizinului Street No. 113
Country :	Romania
Financials (as on) :	31.12.2012
Date of Incorporation :	January, 2006
Legal Form :	Limited liability company, entire Romanian capital
Line of Business :	Wholesale trade with spare parts and accessories for auto vehicles
No. of Employees :	Not Available

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 :	Moderate
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, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Romania	B2	B2

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 fiscal and current account deficits 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	AGROTECH SRL
Address	Brasov county / Brasov – Zizinului Street No. 113
Phone no.	0040-268-312396, 414810	Fax no.	0040-268-315393
Web-site	-	E-mail address	N/A

HISTORIC/OFFICIAL DATA

Date of foundation	January, 2006
Present legal form	Limited liability company, entire Romanian capital
Registered with the Trade Registry	J8/60/2006
VAT no.	18278620
Registered capital	200 RON (the minimum share-capital requested by the Law as for a limited liability company)
Shareholders	Individuals
	1. Zincescu Marian Sandu – Romanian citizen, born on 08.09.1960
	Participation			50%
	2. Bacanu Paulian – Romanian citizen, born on 28.12.1955
	Participation			Participation
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	2008	2009	2010		2011	2012
total	not declared	not declared	not declared		0	0

BUSINESS ACTIVITY

- wholesale trade with spare parts and accessories for auto vehicles, according to the National Trade Registry updated files (NACE: 4531)

No further details are available with any other source

OTHER PARTICIPATION

1. Company’s participation	not applicable
2. Shareholders other participation	Zincescu Marian Sandu		TREISON COM SRL – J08/2230/1994, VAT 6195980
	Bacanu Paulian		TREISON COM SRL – J08/2230/1994, VAT 6195980
REAL ESTATE (RON)
	2010	2011		2012
- lands	241,300	241,300		241,300
- buildings	201,421	190,985		180,549
- equipment	3,989	32,169		23,683
BANKS	N/A
MANAGEMENT as officially registered with the National Trade Registry	Administrators Mr. Zincescu Marian Sandu – appointed on 6.01.2006 for an unlimited period Mr. Bacanu Paulian – appointed on 6.01.2006 for an unlimited period
CURRENCY Exchange rate of EURO	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 = 4.3197 RON on 31.12.2011 1 EURO = 4.4287 RON on 31.12.2012

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2010	31.12.2011	31.12.2012
INTANGIBLES - TOTAL	0	0	0
TANGIBLES - TOTAL	446,710	464,454	445,532
FINANCIALS - TOTAL	0	0	0
FIXED ASSETS - TOTAL	446,710	464,454	445,532
STOCKS - TOTAL	3,000	3,000	3,000
CLAIMS - TOTAL	534,746	661,680	429,895
CURRENT ASSETS	551,248	673,696	436,797
PREPAID EXPENSES	0	0	0
DEBTS WITHIN 1 YEAR	414,103	554,295	272,409
DEBTS OVER 1 YEAR	0	0	0
PROVISIONS	0	0	0
ADVANCED INCOMES	0	0	0
REGISTERED CAPITAL	200	200	200
RESERVES from reassessment of the fixed assets	163,952	163,952	163,952
RESERVES	40	40	40
PROFITS CARRIED FORWARD	339,508	419,663	419,663
NET RESULT - PROFIT	80,155	42,736	26,065
NET RESULT - LOSS	0	0	0
DISTRIBUTION OF PROFIT	0	42,736	0
NET WORTH	583,855	583,855	609,920
PROFIT & LOSS ACCOUNT	31.12.2010	31.12.2011	31.12.2012
Turnover	1,693,373	1,545,757	1,564,198
Own production & services	0	0	0
Sales	1,693,373	1,545,757	1,564,198
INCOMES FROM ORDINARY OPERATING ACTIVITY	1,693,373	1,545,757	1,564,198
Raw materials	1,341	2,671	3,797
Costs of goods sold	1,500,025	1,411,167	1,416,336
Wages	0	0	0
Depreciations & provisions	21,040	15,370	18,922
Other operating costs	63,365	67,606	73,597
COSTS OF ORDINARY OPERATING ACTIVITY	1,592,049	1,499,791	1,516,141
ORDINARY OPERATING RESULT - PROFIT	101,324	45,966	48,057
ORDINARY OPERATING RESULT - LOSS	0	0	0
FINANCIAL INCOMES	8,552	10,780	5,005
FINANCIAL COSTS	14,427	9,100	22,032
FINANCIAL RESULT - PROFIT	0	1,680	0
FINANCIAL RESULT - LOSS	5,875	0	17,027
CURRENT RESULT - PROFIT	95,449	47,646	31,030
CURRENT RESULT - LOSS	0	0	0
Extraordinary incomes	0	3,230	0
Extraordinary costs	22	0	0
EXTRAORDINARY RESULT - PROFIT	0	3,230	0
EXTRAORDINARY RESULT - LOSS	22	0	0
TOTAL INCOMES	1,701,925	1,559,767	1,569,203
TOTAL COSTS	1,606,498	1,508,891	1,538,173
PRETAX RESULT - PROFIT	95,427	50,876	31,030
PRETAX RESULT - LOSS	0	0	0
TAX ON PROFIT	15,272	8,140	4,965
NET RESULT - PROFIT	80,155	42,736	26,065
NET RESULT - LOSS	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 31.12.2012. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 31.12.2012

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

Size

undetermined, considering the lack of the number of employees

Position & trend

Moderate business volume, with generally fair economic results.

According to the figures, the turnover is easily decreasing.

Also, a depreciation of the profitability is to be noticed for 2012, compared to the previous periods.

The payments behaviour seems correct, since no delays are reported.

Business contacts are feasible, but just small credit facilities are suitable.

Business trend should be followed.

31.12.2008

31.12.2009

31.12.2010

31.12.2011

31.12.2012

Turnover

RON

1,599,358

1,771,062

1,693,373

1,545,757

1,564,198

EURO

401,324

418,869

395,205

357,839

353,196

Gross profit

RON

75,821

9,391

95,427

50,876

31,030

EURO

19,026

2,221

22,271

11,778

7,007

Net profit

RON

63,690

1,373

80,155

42,736

26,065

EURO

15,982

325

18,707

9,893

5,885

31.12.2012

CREDITS & LOANS (ACTIVE BALANCE)

none (zero)

BALANCE CLAIMS-DEBTS

negative

Total claims

429,895

clients & trade debtors

415,462

claims with the State Budget

14,433

Total debts, 100% on short term

272,409

suppliers & trade creditors

8,071

to the shareholders

40,247

other debts

224,091

PAYMENTS BEHAVIOR

seems correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded in the period 28.11.2012 – 28.11.2013

FINANCIAL STRENGTH

175,000 EURO

RISK CATEGORY

Above normal

BUSINESS RELATIONS

Permissible

2008

2009

2010

2011

2012

Good

Liquidity analysis

- current ratio

1.52

1.04

1.32

1.22

1.60

- quick ratio

1.51

1.04

1.32

1.21

1.59

Solvability analysis

Very good since 2010

- the borrowing ratio (total debts/net worth)

1.85

2.80

0.71

0.95

0.45

Profitability analysis (%)

Fluctuant; very low, lately

- return on capital

18.82

0.40

13.73

7.32

4.27

- return on assets

6.60

0.11

8.03

3.75

2.95

- gross profit margin

4.74

0.53

5.64

3.29

1.98

Activity analysis

Heavy settlements of debtors – pay attention!

- debtor’s days

142

189

115

156

100

- creditor’s days

n/a

n/a

n/a

n/a

n/a

Stocks turnover, times/year

*

*

*

*

*

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.34
UK Pound	1	Rs.102.06
Euro	1	Rs.84.46

INFORMATION DETAILS

Report Prepared by :

NNA

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.