MIRA INFORM REPORT

 

 

Report Date :

19.07.2013

 

IDENTIFICATION DETAILS

 

Name :

GEMAR INDUSTRIES SRL

 

 

Registered Office :

Bucharest, sector 4 – Tineretului Blvd. No. 47, Bl. 57, Ap. 3

 

 

Country :

Romania

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

May, 1999

 

 

Legal Form :

Limited liability company, entire Romanian capital

 

 

Line of Business :

Wholesaler of textiles

trader of buttons & threads, lace & strips, zippers, metallic accessories

 

 

No. of Employees :

02 (2011)

 

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 :

Small Company 

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 31st 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   

 

GEMAR INDUSTRIES SRL

Address      

 

Bucharest, sector 4 – Tineretului Blvd. No. 47, Bl. 57, Ap. 3

Phone no.

 

Cell phone no.            

0040-21-3177705

 

0040-744-500267

0040-722-384144

Fax no.  

0040-21-3177706

0040-31-4016635

Web-site

www.gemar.ro

E-mail address

irugescu@rdsmail.ro

officegentex@rdsmail.ro            

 

HISTORIC/OFFICIAL DATA

 

Date of foundation

May, 1999

Present legal form

Limited liability company, entire Romanian capital

Registered with the Trade Registry  

J40/4403/1999

VAT no.  

11768951

Registered capital    

200 RON

(the minimum share-capital requested by the Law in case of limited liability companies)

Shareholders

 

Individuals

Rugescu Ioana Adina – Romanian citizen, born on 2.04.1971

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

 

 1

 

1

 

1

2

not declared

BUSINESS ACTIVITY 

- wholesale with textiles, according to the National Trade Registry updated files (NACE: 4641)

 

According to the company’s web-site

- trade with: buttons & threads, lace & strips, zippers, metallic accessories

- customizing accessories

 

OTHER PARTICIPATION

1. Company’s participation

 

not applicable

 

2. Shareholders other participation

 

 

Rugescu Ioana Adina

AMATCO INDUSTRIES 2000 SRL – J40/14601/1991,

 

VAT 3317004

GEMAR TRADING AND TRANSPORTING SRL –

                                                            J40/1183/1991, VAT 1600186

REAL ESTATE                                                              

N/A 

BANKS

 

 

N/A 

MANAGEMENT

·         as officially registered with the National Trade Registry

 

Administrator, General Manager

Mrs. Rugescu Ioana Adina – appointed on 25.04.2005 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

31.12.2011

31.12.2012

 

 

 

FIXED ASSETS - TOTAL

840

3,639

STOCKS - TOTAL

21,621

40,560

CLAIMS - TOTAL

24,506

130,363

CASH & BANK ACCOUNTS

506

1,450

CURRENT ASSETS

46,633

172,373

PREPAID EXPENSES

0

0

TOTAL DEBT (100% ON SHORT TERM)

100,446

214,587

PROVISIONS

0

0

ADVANCED INCOMES

0

0

REGISTERED CAPITAL

200

200

NET WORTH

-52,973

-38,575

 

 

 

PROFIT & LOSS ACCOUNT

31.12.2011

31.12.2012

 

 

 

TURNOVER

191,065

216,858

TOTAL INCOMES

191,467

217,006

TOTAL COSTS

138,072

202,608

PRETAX RESULT - PROFIT

53,395

14,398

PRETAX RESULT - LOSS

0

0

TAX ON PROFIT

0

0

NET RESULT - PROFIT

53,395

14,398

NET RESULT - LOSS

0

0

 

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

(seems micro-sized company, considering  the no. of employees before 31.12.2012).

Position & trend

According to the figures available so far, the subject company is developing a small volume of activity, with similarly results.

The turnover increased significantly in 2011 and 2012, but it is still at a low level.

The returns are fluctuating from losses to profits, giving a very unstable profitability.

The B/S accounts reveal a constant poor liquidity and a constant unsatisfactory solvability (the net worth stands negative for all the investigated period, meaning no own source at all to cover the engaged debt and a total dependency on borrowed sources).

The payments behaviour is correct so far, since no delays were reported, but a special attention to the debtors’ control is suggested, which could cause further payments problems!

Overall, the volume of activity is low and the financial standing is weak.

We appreciate the business contacts are feasible, but the credit based transactions are not advisable.

Further review on the company’s situation is suggested.

 

 

 

31.12.2008

31.12.2009

31.12.2010

31.12.2011

31.12.2012

Turnover

 

 

 

 

 

RON

15,398

31,918

60,828

191,065

216,858

EURO

3,863

7,549

14,196

44,231

48,967

 

 

 

 

 

 

Gross profit

 

 

 

 

 

RON

-14,303

3,325

-17,679

53,395

14,398

EURO

-3,589

786

-4,126

12,361

3,251

 

 

 

 

 

 

Net profit

 

 

 

 

 

RON

-14,688

1,592

-19,329

53,395

14,398

EURO

-3,686

377

-4,511

12,361

3,251

 

 

31.12.2012

 

CREDITS & LOANS (ACTIVE BALANCE)

           

N/A

 

 

BALANCE CLAIMS-DEBTS

Negative

Total claims

 

130,363

No further details are available

 

Total debts, 100% on short term

214,587

No further details are available

 

 

PAYMENTS BEHAVIOR

N/A

 

 

PAYMENTS INCIDENTS,

as  officially recorded with the Payment Incident Bureau

 

No incidents recorded in the period 18.07.2012 – 18.07.2013

 

FINANCIAL STRENGTH

 

Negative

 

 

2008

2009

2010

2011

2012

 

 

Constant poor

Liquidity analysis

- current ratio  

0.37

0.33

0.36

0.46

0.81

- quick ratio    

0.25

0.22

0.29

0.25

0.62

 

 

Solvability analysis

Constant unsatisfactory

- the borrowing ratio (total debts/net worth) 

-1.59

-1.50

-1.58

-1.90

-5.57

 

 

Profitability analysis (%)

Variable

- return on capital

Loss

-1.83

Loss

-100.80

-37.33

- return on assets

Loss

3.71

Loss

112.47

8.19

- gross profit margin

Loss

10.42

Loss

27.95

6.64

 

 

Activity analysis

Debtors out of control – pay attention, bad payments problems could appear!

- debtor’s days  

817

284

138

47

219

- creditor’s days

n/a

n/a

n/a

n/a

n/a

Stocks turnover, times/year

0.95

2.28

5.13

8.84

5.35

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.71

UK Pound

1

Rs.90.59

Euro

1

Rs.78.22

 

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.