MIRA INFORM REPORT

Report Date :

27.07.2013

IDENTIFICATION DETAILS

Name :	KOLHIDA-SLIVEN AD
Registered Office :	j.k. Industrialna zona, 8800 Sliven
Country :	Bulgaria
Financials (as on) :	31.12.2011
Year of Establishments:	1991
Legal Form :	Joint Stock Company (AD)
Line of Business :	Preparation and spinning of woollen-type fibres
No. of Employees :	178

RATING & COMMENTS

MIRA’s Rating :	B
	With financials

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

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)
Bulgaria	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

bulGaria ECONOMIC OVERVIEW

Bulgaria, a former Communist country that entered the EU on 1 January 2007, averaged more than 6% annual growth from 2004 to 2008, driven by significant amounts of bank lending, consumption, and foreign direct investment. Successive governments have demonstrated a commitment to economic reforms and responsible fiscal planning, but the global downturn sharply reduced domestic demand, exports, capital inflows, and industrial production. GDP contracted by 5.5% in 2009, stagnated in 2010, despite a significant recovery in exports, grew 1.7% in 2011, and 1% in 2012. Despite having a favorable investment regime, including low, flat corporate income taxes, significant challenges remain. Corruption in public administration, a weak judiciary, and the presence of organized crime continue to hamper the country's investment climate and economic prospects.

Source : CIA

COMPANY DETAILS

Local name: KOLHIDA-SLIVEN AD

International name: KOLHIDA-SLIVEN AD

Registered address:

j.k. Industrialna zona
8800 Sliven
Bulgaria
Telephone: +359-44-622395, +359-44-619200
Fax: +359-44-624019
E-Mail: kolhida-sliven@mbox.contact.bg, kolhida_bachvarov@abv.bg

ESTABLISHMENT & REGISTRATION:

Established: 1991
Registered at Sliven district court
Court number 2240/1991
Bulstat/VAT number: 829054281

LEGAL FORM:

Joint Stock Company (AD)

REGISTERED CAPITAL:

BGN 2 027 358.00

BANKERS:

Unicredit Bulbank AD

SHAREHOLDERS/MANAGEMENT

SHAREHOLDERS:

BIAMOND	49,72%
ID 119003011
MKB	49,72%
ID 123117428
Others	0,56%

MANAGEMENT

VIOLETA HRISTOVA BACHVAROVA	- Representative
GOSPODIN GEORGIEV GOSPODINOV	- Representative

RELATED COMPANIES

None

BUSINESS ACTIVITY

BUSINESS OPERATION:

NACE 1.1: 17.12 Preparation and spinning of woollen-type fibres

NUMBER OF EMPLOYEES:

As at date	Value
31.12.2006	182
31.12.2007	179
31.12.2008	154
31.12.2009	131
31.12.2010	152
Latest stand	178

EXPORT:

Serbia, Germany, Turkey, Syria, Poland

IMPORT:

Serbia, Macedonia

REAL ESTATE:

Own premises.

FINANCIAL DATA

TURNOVER:

Year	Currency	Value
2002	BGN	6 321 000.00
2003	BGN	11 183 000.00
2004	BGN	9 239 000.00
2006	BGN	9 589 000.00
2007	BGN	8 411 000.00
2008	BGN	7 481 000.00
2009	BGN	6 291 000.00
2010	BGN	10 078 000.00
2011	BGN	15 396 000.00

MODES OF PAYMENT:

Payments are made within agreed terms.

DEBT COLLECTION:

No debt collection cases are registered against the company.

BANK DISTRAINTS:

No shares of the company are under bank distraint.

UNPAID TAXES/ CONTRIBUTIONS TO GOVERNMENT:

There is no publication about overdue unpaid taxes.

INVOLVEMENT IN LEGAL DISPUTES:

There is no publication about legal claims or disputes against the company.

OTHER PAYMENT INFORMATION:

No adverse payment information is available.

BRANCH INDICATOR:

The company's payment behaviour is average for the branch.

Exchange rate since 1998 is 1 BGN (denominated lev) = 0.51 EUR

COMMENTS ON FINANCIAL DATA

2012 accounts are not published yet!

Ratio	2010	2011
Debt ratio	0.64	0.58
Quick ratio	0.79	0.63
Current ratio	2.23	2.74
Days purchase in payables	59.28	36.13
Operating margin in %	2.04	2.83
Cash ratio (acid ratio)	0.02	0.05
Return on sales ROS in %	1.83	2.54
Return on assets ROA in %	2.23	4.92
Return on equity ROE in %	6.39	11.95
Days supply in inventory	85.36	76.24
Days sales in receivables	45.65	20.97

BALANCE SHEET in BGN'000	2010	2011
Accounting period:	1.1.2010 - 31.12.2010	1.1.2011 - 31.12.2011
A.UNPAID CAPITAL
B. FIXED ASSETS
I Fixed Intangible Assets:
R&D Products		2
Concessions, patents, trade-marks etc
Goodwill
Intangible fixed assets under construction
thereof advances
Total I:		2
II Fixed Tangible Assets
Land and Buildings	1267	1213
thereof Land	248	248
thereof Buildings	1019	965
Machines, Vehicles	1737	1141
Equipment	816	893
Tangible fixed assets under construction	558	324
thereof advances
Total II	4378	3571
III. Fixed Financial Assets
Shares in group companies
Loans granted to group companies
Shares in joint ventures
Long term investments	143	137
Other loans
Bought back own shares
Total III	143	137
IV. Deferred Taxes
B. FIXED ASSETS TOTAL	4521	3710
C. CURRENT ASSETS
I. Inventories
Raw Materials	785	1835
Work in progress	555	943
thereof young animals
Trading goods	1046	476
thereof production	1010	466
thereof goods for sale	36	10
Advances
Total I	2386	3254
II. Receivables
Receivables from customers	1186	833
thereof more than 1 year
Receivables from group companies
thereof more than 1 year
Receivables from joint ventures
thereof more than 1 year
Other receivables	90	62
thereof more than 1 year
Total II	1276	895
III. Current Financial Assets
Current investments in related companies
Bought back own shares
Other current financial assets
Total III
IV. Cash equivalents
Cash and accounts in the country
thereof cash	1	34
Thereof cash in foreign currency (equivalent)
thereof current accounts	35	46
thereof blocked accounts
thereof cash equivalents
Cash and accounts abroad
thereof cash
Thereof cash in foreign currency (equivalent)
thereof current accounts
thereof blocked accounts
Total IV	36	80
C. CURRENT ASSETS TOTAL	3698	4229
D. Deferred expenses	14	15
TOTAL ASSETS	8233	7954
A. OWNERS EQUITY
I. Share capital	2027	2027
II. Issue premium	1	1
III. Revaluation reserves
thereof revaluation reserves of financial instruments
IV. Reserves
legal reserves	203	203
reserve related to bought back own shares
reserve from company foundation
other reserves
Total IV	203	203
V. Result from previous period
Undistributed profit	465	649
Uncovered loss
Total V	465	649
VI. Current result profit (loss)	184	391
A. OWNERS EQUITY TOTAL	2880	3271
B. PROVISIONS
Provisions for pensions
Provisions for taxes	37	23
thereof deferred taxes	37	23
Other provisions
B. PROVISIONS TOTAL	37	23
C. LIABILITIES
Bond-backed loans
less than 1 year
more than 1 year
Bank loans	3908	3745
less than 1 year	324	659
more than 1 year	3584	3086
Advances received	5
less than 1 year	5
more than 1 year
Payables to suppliers	1130	678
less than 1 year	1130	678
more than 1 year
Liabilities on policies
less than 1 year
more than 1 year
Liabilities to group companies
less than 1 year
more than 1 year
Liabilities to joint-venture companies
less than 1 year
more than 1 year
Other liabilities	235	205
less than 1 year	14	20
more than 1 year
thereof to personnel	121	119
less than 1 year	90	119
more than 1 year
thereof to social insurance	37	8
less than 1 year	31	8
more than 1 year
thereof for taxes	63	58
less than 1 year	63	58
more than 1 year
C. LIABILITIES TOTAL	5278	4628
less than 1 year	1657	1542
more than 1 year	3584	3086
D. FINANCING AND DEFERRED INCOME	38	32
thereof
Financing	38	32
Deferred income
TOTAL EQUITY AND LIABILITIES	8233	7954

P&L ACCOUNT in BGN'000	2010	2011
Accounting period:	1.1.2010 - 31.12.2010	1.1.2011 - 31.12.2011
A. EXPENSES
I. OPERATION EXPENSES
Decrease of inventories	673	154
thereof for materials	5941	10435
thereof for services	491	773
Personnel expenses	1756	2118
thereof wages	1599	1793
thereof social insurance	157	184
thereof pensions	81	103
Depreciation	445	959
thereof Depreciation of fixed assets	445	959
Other expenses	169	171
thereof Book value of sold assets (without production)	7	20
I. OPERATION EXPENSES TOTAL	9475	14610
II. Financial expenditures
Depreciation of financial assets	22	14
thereof exchange rate losses	22	14
Paid interest	382	359
thereof interest to group companies
Thereof expenditures for securities operations
II. Financial expenditures Total	404	373
B. Profit on ordinary activity	205	435
III. Extraordinary expenses
thereof expenses on disasters and emergency expenses
C. Total expenses (I+II+III)	9879	14983
D. Accounting profit	206	435
IV. Taxation on profit	22	44
V. Other taxes
E. Net profit	184	391
Total expenses	10085	15418
A. REVENUES
I . OPERATING REVENUES
Net sales	10063	15366
Production	10055	15313
Goods	1	7
Services	7	46
Increase of production and work in progress
Expenses on acquisition of assets
Other revenues	15	30
thereof financing	5	5
I. TOTAL OPERATING REVENUES	10078	15396
II FINANCIAL REVENUES
Income from shares
thereof income from shares in group companies
Income from investments and loans
thereof from investments in group companies
Income from interest
thereof from interest from group companies
II FINANCIAL REVENUES TOTAL	6	22
TOTAL REVENUES FROM ORDINARY ACTIVITIES	10084	15418
LOSS
Extraordinary revenues	1
AFTER TAX LOSS
TOTAL REVENUES	10085	15418

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.58.91
UK Pound	1	Rs.90.68
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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.