MIRA INFORM REPORT

Report Date :

19.07.2013

IDENTIFICATION DETAILS

Name :	HOLZINDUSTRIE SCHWEIGHOFER SRL
Registered Office :	Alba county / 515800 Sebes – Industriilor Street No. 1
Country :	Romania
Financials (as on) :	30.06.2012
Date of Incorporation :	01.04.2002
Legal Form :	Limited liability company, entirely foreign capital
Line of Business :	Subject is involved in wood processing; production
No. of Employees :	1,313

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 details

NAME OF THE COMPANY

HOLZINDUSTRIE SCHWEIGHOFER SRL

Address

Alba county / 515800 Sebes – Industriilor Street No. 1

Phone no. Cell phone no.

0040-258-806300

Fax no.

0040-258-806301

Web-site

www.schweighofer.ro

E-mail address

office@schweighofer.ro

HISTORIC/OFFICIAL DATA

Date of foundation

01.04.2002

Present legal form

Limited liability company, entirely foreign capital

Registered with the Trade Registry

J1/141/2002

VAT no.

14554103

Registered capital

200 RON

Shareholders

Legal person, unique owner

SPB INDUSTRIEHOLDING GMBH – Austrian legal person

Address: Austria / Wien – FAVORITEN Str. No. 7/2, 1040

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

2007

2008

2009

2010

2011

30.06.2012

2012

total

634

893

1,189

1,231

1,267

634

1,313

BUSINESS ACTIVITY : Company belongs to Schweighofer Group- Market leader in the wood industry. The Schweighofer Group is an Austrian family enterprise and is organised as a holding. The Schweighofer family's over 360 years of experience testify to the quality and stand for trust. In Romania, the investment was estimated to 64 m. EURO and the company is involved in: - wood processing; production - forestry & agriculture - purchase - sales (markets: Japan, Asia, Europe, Near/Middle East, USA) Company has 10 work-shops of which 2 saw mills opened in: 1. Alba county / 515800 Sebes – Industriilor Street No. 1 opened in 2003, already working Functions: Production of soft wood timber and semi-final products Production of pellets Central purchase department Romania Forest management and forest road construction 2. Suceava county / 725400 Radauti – Ioan Nistor Street No. 16 Phone no.: 0040-230-207400; Fax no.: 0040-230-207399 opened in 2004, working beginning with first quarter of 2008 In order to offer an appropriate high level accommodation opportunity for customers and business partners, Holzindustrie Schweighofer opened the hotel „The Gerald’s“ in 2007 (www.geraldshotel.com) For more details, please do visit www.schweighofer.ro

OTHER PARTICIPATION

1. Company’s participation

n/a

2. Shareholders other participation

n/a

REAL ESTATE (RON)

- lands & buildings

2007

2008

2009

2010

2011

87,438,788

94,680,102

184,236,087

216,134,487

n/a

TANGIBLES*

764,069,465 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 Cosma Razvan Nicolae , Romanian citizen, born on 25.11.1975 App date: 17.03.2011, for unspecified period Administrator and branch representative Schweighofer Gerald – Austrian citizen, born on 16.06.1958 Appointed on: 7.07.2005 for unspecified period Administrator and branch representative Mittermuller Otmar – Austrian citizen, born on 7.10.1956 Appointed on: 7.07.2005 for unspecified period Administrator Mr. Ruhdorfer Bruno – Austrian citizen, born on 16.03.1959 Appointed on: 7.07.2005 for unspecified period Administrator and branch representative Nichifor Tofan – Romanian citizen, born on 20.06.1971 Appointed on: 13.12.2006 for an unlimited period Administrator Chrintian Horburger, Austrian citizen, born on 03.11.1965 App date: 21.04.2010, for unlimited period Administrator Pop Emil , Romanian citizen, born on 23.11.1966 App date: 17.03.2011 for unspecified period Jurgen Wolfgang Bergner Austrian citizen, born on 02.03.1977, App date: 21.04.2010 for unlimited period Branch representatives: Mitrea Horia

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 1 EURO = 4.4287 RON on 31.12.2012

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2011	30.06.2012
INTANGIBLES - TOTAL	515,791	462,041
TANGIBLES - TOTAL	651,066,153	764,069,465
FINANCIALS - TOTAL	35,157,242	35,135,010
FIXED ASSETS - TOTAL	686,739,186	799,666,516
STOCKS - TOTAL	197,790,225	165,505,066
CLAIMS - TOTAL	160,562,321	196,998,757
CURRENT ASSETS	491,056,630	534,320,281
PREPAID EXPENSES	2,922,876	4,525,692
DEBTS WITHIN 1 YEAR	315,972,103	389,900,675
DEBTS OVER 1 YEAR	111,077,314	80,094,209
PROVISIONS	9,804,816	10,138,407
ADVANCED INCOMES	0	0
REGISTERED CAPITAL	200	200
RESERVES FROM ASETS REASSESSMENT	18,073,226	18,073,226
RESERVES	245,255	245,255
UNPAID PROFIT FROM PREVIOUS YEARS	412,679,050	680,905,777
NET RESULT - PROFIT	312,866,728	159,154,740
NET RESULT - LOSS	0	0
NET WORTH	743,864,459	858,379,198
PROFIT & LOSS ACCOUNT	30.06.2011	30.06.2012
Turnover	754,039,804	882,164,255
Own production & services	709,727,851	828,700,790
Sales	44,311,953	53,615,480
INCOMES FROM ORDINARY OPERATING ACTIVITY	770,126,080	877,184,365
Raw materials	382,907,184	455,212,427
Costs of goods sold	30,029,977	38,310,958
Wages	23,834,759	29,042,103
Depreciations & provisions	21,686,538	22,281,446
COSTS OF ORDINARY OPERATING ACTIVITY	566,575,865	680,089,011
ORDINARY OPERATING RESULT - PROFIT	203,550,215	197,095,354
ORDINARY OPERATING RESULT - LOSS	0	0
FINANCIAL INCOMES	35,254,176	16,088,441
FINANCIAL COSTS	39,598,631	25,089,830
FINANCIAL RESULT - PROFIT	0	0
FINANCIAL RESULT - LOSS	4,344,455	9,001,389
CURRENT RESULT - PROFIT	199,205,760	188,093,965
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	805,380,256	893,272,806
TOTAL COSTS	606,174,496	705,178,841
PRETAX RESULT - PROFIT	199,205,760	188,093,965
PRETAX RESULT - LOSS	0	0
TAX ON PROFIT	31,000,000	28,939,225
NET RESULT - PROFIT	168,205,760	159,154,740
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

Large, considering the total no. of employees.

Position & trend

This is a huge company, belongs to a group with a long tradition in the wood processing field. The figures prove a constant increasing trend of sales. The economic results follow the same tendency like turnover. The preliminary figures for 2012 demonstrate the same ascendant trend of the business.

Financial specific ratios prove a very good evolution.

Business trend looks ascendant.

Credit facilities are suitable.

Preliminary figures for 2012 (RON)

Total debts= 389,512,479

Net worth =1,035,464,601

Current asets=564,080,230

Fixed asets =879,746,535

Stocks=216,224,471

Claims=204,281,137

	2007	2008	2009	2010	2011	Jun-11	Jun-12	2012
TURNOVER
RON	475,043,351	545,138,196	875,673,942	1,287,854,231	1,589,521,923	754,039,804	882,164,255	1,816,739,799
EURO	131,583,666	136,790,674	207,103,245	300,563,441	367,970,443	178,087,387	198,265,891	410,219,658
GROSS PROFIT
RON	-4,674,834	-31,223,397	101,229,949	319,687,828	369,819,996	199,205,760	188,093,965	400,551,394
EURO	-1,291,676	-7,834,838	23,941,618	74,609,743	85,612,426	47,047,958	42,274,007	90,444,463
NET PROFIT
RON	-4,674,834	-31,223,397	101,201,282	287,686,705	312,866,728	168,205,760	159,154,740	340,611,321
EURO	-1,291,676	-7,834,838	23,934,838	67,141,221	72,427,883	39,726,450	35,769,933	76,910,001

30.06.2012

CREDITS & LOANS (ACTIVE BALANCE)

Bank credits, on short term (within 1year)

173,526,600

Bank credits, on medium term (over 1year)

147,829,524

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

196,998,757

clients & trade debtors

184,996,196

Total debts

469,994,884

- Short term

389,900,675

suppliers & trade creditors

121,556,124

bank credits

173,526,600

to the Social Insurance& to the State Budget

23,342,940

- Medium term

80,094,209

bank credits

Higher than total debts on medium term !!!

147,829,524

PAYMENTS BEHAVIOR

with delays

Total overdue of under 1% of turnover

2,360,287

To suppliers

2,360,287

over 30 days

310,944

over 90 days

92,688

over 1 year

1,956,655

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents between 17.07.2012-17.07.2013

2007

2008

2009

2010

2011

30.06.2012

Increased up to good

Liquidity analysis

- current ratio

0.75

0.72

0.84

0.89

1.55

1.37

- quick ratio

0.38

0.32

0.50

0.62

0.93

0.95

Solvability analysis

Improved lately

- the borrowing ratio (total debts/net worth)

3.65

7.37

3.47

1.48

0.57

0.55

Profitability analysis (%)

Good for several years

- return on capital

0

0

54.27

63.37

42.06

18.54

- return on assets

0

0

12.17

25.61

26.50

11.89

- gross profit margin

0

0

11.56

24.82

23.27

21.32

Activity analysis

Normal limits

- debtor’s days

38

46

41

44

37

40

- creditor’s days

32

23

18

8

n/a

n/a

Stocks turnover, times/period

8

6

10

10

8

5

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 :

PRL

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.