MIRA INFORM REPORT

Report Date :

24.12.2013

IDENTIFICATION DETAILS

Name :	A.G. –CHIM TRADING-COMPANY SRL
Registered Office :	Bucharest, Sos.Dudesti-Pantelimon No. 42C, Sector 3
Country :	Romania
Financials (as on) :	31.12.2012
Date of Incorporation :	September, 1995
Legal Form :	Limited liability company
Line of Business :	Import of raw materials chemical, pharmaceutical, cosmetics, paint and ink industries
No. of Employees :	24

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 – 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 and address

NAME OF THE COMPANY	A.G. –CHIM TRADING-COMPANY SRL
Address	Bucharest, Sos. Dudesti-Pantelimon No. 42C, Sector 3
Phone no. Cell phone no.	0040-21-2557020 -	Fax no.	0040-21-2557020
Web-site	www.agchim.ro	E-mail address	office@agchim.ro

HISTORIC/OFFICIAL DATA

Date of foundation	September, 1995
Present legal form	Limited liability company, entire Romanian capital
Registered with the Trade Registry	J40/7375/1995
VAT no.	7741052
Registered capital	360,000 RON
Shareholders	Individual – unique owner
	1. Rifai M. Ahmad – Romanian citizen, born on 9.05.1957 in Jordan
	Participation			100%
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	18	18	21		23	24
BUSINESS ACTIVITY Officially recorded with the National Trade Registry updated data basis - Intermadiation in trade with diverse products (NACE – 4619) Declared by the subject on its web site - export of chemicals products representing Romanian producers on Middle East, Far East, West Africa and Latin America - import of raw materials used by Romanian chemical, pharmaceutical, cosmetics, paint and ink industries.

OTHER PARTICIPATION

1. Company’s participation

not involved as shareholder in any other Romanian company

2. Shareholders other participation

not involved as shareholder in any other Romanian company

REAL ESTATE (RON)

- lands & buildings

2008

2009

2010

2011

2012

4,563,254

5,077,266

4,611,373

4,537,467

4,126,841

BANKS

n/a

MANAGEMENT

as officially registered with the National Trade Registry

Rifai M. Ahmad – Administrator

Appointed on 31.08.1995 for unspecified 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	2,345
TANGIBLES - TOTAL	5,026,624	4,761,834	4,383,121
FINANCIALS - TOTAL	1,350	1,650	1,650
FIXED ASSETS - TOTAL	5,027,974	4,763,484	4,387,116
STOCKS - TOTAL	5,194,040	4,288,716	11,055,548
CLAIMS - TOTAL	11,072,344	9,436,590	16,804,532
CURRENT ASSETS	16,530,375	15,811,794	28,263,807
PREPAID EXPENSES	1,679,008	1,586	1,409,271
DEBTS WITHIN 1 YEAR	19,220,388	15,221,182	26,349,914
DEBTS OVER 1 YEAR	1,153,620	0	0
PROVISIONS	0	0	0
ADVANCED INCOMES	0	0	842
REGISTERED CAPITAL	360,000	360,000	360,000
RESERVES from reassessment of the fixed assets	90,044	90,044	487,424
RESERVES	106,851	106,851	106,851
PROFITS CARRIED FORWARD	0	2,306,454	4,798,446
NET RESULT - PROFIT	2,376,454	2,491,992	1,956,717
NET RESULT - LOSS	0	0	0
NET WORTH	2,863,349	5,355,341	7,709,438
PROFIT & LOSS ACCOUNT	31.12.2010	31.12.2011	31.12.2012
Turnover	63,932,479	71,814,022	60,573,345
Own production & services	4,669,050	5,898,294	7,142,665
Sales	60,714,772	66,145,734	53,597,870
INCOMES FROM ORDINARY OPERATING ACTIVITY	64,038,738	71,814,217	60,576,077
Raw materials	69,894	66,516	70,908
Costs of goods sold	56,814,027	60,790,418	49,423,128
Wages	772,555	833,040	914,090
Depreciations & provisions	306,642	272,965	981,828
Other operating costs	5,697,058	6,003,574	7,205,782
COSTS OF ORDINARY OPERATING ACTIVITY	61,618,672	68,017,270	58,638,202
ORDINARY OPERATING RESULT - PROFIT	2,420,066	3,796,947	1,937,875
ORDINARY OPERATING RESULT - LOSS	0	0	0
FINANCIAL INCOMES	4,982,682	5,581,821	6,022,777
FINANCIAL COSTS	4,571,133	6,381,858	5,450,284
FINANCIAL RESULT - PROFIT	411,549	0	572,493
FINANCIAL RESULT - LOSS	0	800,037	0
CURRENT RESULT - PROFIT	2,831,615	2,996,910	2,510,368
CURRENT RESULT - LOSS	0	0	0
Extraordinary incomes	0	0	0
Extraordinary costs	0	0	0
EXTRAORDINARY RESULT - PROFIT	0	0	0
EXTRAORDINARY RESULT - LOSS	0	0	0
TOTAL INCOMES	69,021,420	77,396,038	66,598,854
TOTAL COSTS	66,189,805	74,399,128	64,088,486
PRETAX RESULT - PROFIT	2,831,615	2,996,910	2,510,368
PRETAX RESULT - LOSS	0	0	0
TAX ON PROFIT	455,161	504,918	553,651
NET RESULT - PROFIT	2,376,454	2,491,992	1,956,717
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

small, considering the number of employees

Position & trend

Fluctuant, but always large volume of activity, with variable but always positive economic results. Both, turnover and gross profit got decreased with 18% (in EURO), in 2012 compared to 2011.

Liquidity is satisfactory and solvability is till over limited.

Payments behaviour looks correct, no delays being reported.

Financial standing is satisfactory.

Business contacts are feasible.

31.12.2008

31.12.2009

31.12.2010

31.12.2011

31.12.2012

Turnover

RON

34,557,447

76,118,339

63,932,479

71,814,022

60,573,345

EURO

8,671,446

18,002,540

14,920,762

16,624,771

13,677,455

Gross profit

RON

1,216,725

3,086,790

2,831,615

2,996,910

2,510,368

EURO

305,311

730,048

660,851

693,777

566,841

Net profit

RON

1,026,781

2,585,898

2,376,454

2,491,992

1,956,717

EURO

257,649

611,584

554,624

576,890

441,826

31.12.2012

CREDITS & LOANS (ACTIVE BALANCE)

9,077,072

Bank credits & other financial loans, on short term (within 1year)

9,077,072

BALANCE CLAIMS-DEBTS

Negative

Total claims

16,804,532

clients & trade debtors

13,275,892

Total debts

26,349,914

- Short term

26,349,914

suppliers

16,389,883

trade creditors

174,166

bank credits & other financial loans

9,077,072

other debts, including fiscal debts & dues to the Social Insurance

708,793

PAYMENTS BEHAVIOR

Correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents reported during 24.12.2012 – 24.12.2013

FINANCIAL STRENGTH

2,200 tsd EURO

RISK CATEGORY

Above normal

BUSINESS RELATIONS

Permissible

Applies to short term credit facilities and should not be construed as a maximum credit limit, which can be only established by the supplier. The credit limit has been set using a formula which takes into consideration the credit rating, and the latest behavioral and financial performances. Other information may of course influence the size of the credit you may grant.

2008

2009

2010

2011

2012

Satisfactory

Liquidity analysis

- current ratio

1.11

1.27

0.86

1.04

1.07

- quick ratio

0.76

0.85

0.59

0.76

0.65

Solvability analysis

Still over limited indebtedness rate

- the borrowing ratio (total debts/net worth)

11.27

8.87

7.12

2.84

3.42

Profitability analysis (%)

Rather satisfactory

- return on capital

55.96

72.31

83.00

46.53

25.38

- return on assets

4.36

5.98

10.23

12.11

5.74

- gross profit margin

3.52

4.06

4.43

4.17

4.14

Activity analysis

Within normal limits starting with 2010

- debtor’s days

75

86

63

48

50

- creditor’s days

121

95

41

25

49

Stocks turnover, times/year

6

6

12

17

5

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.99
UK Pound	1	Rs.101.37
Euro	1	Rs.84.82

INFORMATION DETAILS

Report Prepared by :

NIS

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.