MIRA INFORM REPORT

Report Date :

06.06.2013

IDENTIFICATION DETAILS

Name :	SKANEM AS
Formerly Known as:	SKANEM INDUSTRIER AS
Registered Office :	Hesbygaten 14, Stavanger 4014
Country :	Norway
Financials (as on) :	2011
Date of Incorporation :	20.03.1997
Com. Reg. No.:	977337445
Legal Form :	Limited Company
Line of Business :	Producers of self adhesive labels
No. of Employees :	09

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 :	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 31^st 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Norway	A1	A1

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

norway ECONOMIC OVERVIEW

The Norwegian economy is a prosperous mixed economy, with a vibrant private sector, a large state sector, and an extensive social safety net. The government controls key areas, such as the vital petroleum sector, through extensive regulation and large-scale state-majority-owned enterprises. The country is richly endowed with natural resources - petroleum, hydropower, fish, forests, and minerals - and is highly dependent on the petroleum sector, which accounts for the largest portion of export revenue and about 20% of government revenue. Norway is the world's third-largest natural gas exporter; and seventh largest oil exporter, making one of its largest offshore oil finds in 2011. Norway opted to stay out of the EU during a referendum in November 1994; nonetheless, as a member of the European Economic Area, it contributes sizably to the EU budget. In anticipation of eventual declines in oil and gas production, Norway saves state revenue from the petroleum sector in the world's second largest sovereign wealth fund, valued at over $700 billion in January 2013 and uses the fund's return to help finance public expenses. After solid GDP growth in 2004-07, the economy slowed in 2008, and contracted in 2009, before returning to positive growth in 2010-12, however, the government budget is set to remain in surplus.

Source : CIA

Company summary

Company name	SKANEM AS	Company number	977337445
Address	Hesbygaten 14
City	STAVANGER 4014	Legal form	Limited company
Website address	www.skanem.com	E-mail address	bente.saeland@skanem.com
Telephone Number	00 47 51859721	Fax Number	00 47 51859781
Registration date	20/03/1997	Status	Active
Previous Name	SKANEM INDUSTRIER AS	Share capital	163,000,000
Name change date	20/03/1997	Currency	-
		Number of employees	9

Postal Address

Address	City	Postal Code
Postboks 1529	STAVANGER	4093

Ultimate Holding Company

Company Name	Company Number
SKANEM AS	977337445

Key Financials

Year to Date	Sales Revenue	Profit Before Tax	Total Equity
2011	1,205,802,000	5,250,000	202,709,000
2010	1,240,295,000	17,416,000	214,185,000
2009	1,275,928,000	27,984,000	204,178,000
2008	1,397,598,000	10,040,000	203,196,000
2007	1,422,707,000	11,053,000	200,958,000

Industry

Main Industry Code & Description	Producers of self adhesive labels
Secondary Industry Code & Description	-
Other Industry Code & Description	-

Shareholders

Shareholder Name	Number of Shares	Percentage Share
OLE KRISTIAN RUGLAND	326,000	100.0

Current Directors

Name	Address	Function
Rugland, Ole	Markveien 42 STAVANGER 4020	General manager/CEO
Willumsen, Thor Inge	Stokkahagen 46 STAVANGER 4022	Chairman of the board
Osmundsen, Tor Morten	Tarjodd Bondes Vei 50 STAVANGER 4032	Board member(s)
Rugland, Ole	Markveien 42 STAVANGER 4020	Board member(s)
Østensen, Tatiana Albertovna	Slettmyrhagen 6 STAVANGER 4034	Board member(s)

Other Company Officials

No data exist

Profit & Loss Account

Financial Year	2011		2010		2009		2008		2007
Currency	NOK		NOK		NOK		NOK		NOK
Consolidated Accounts	Yes		Yes		Yes		Yes		Yes
Sales Revenue	1,205,802,000	-2.8 %	1,240,295,000	-2.8 %	1,275,928,000	-8.7 %	1,397,598,000	-1.8 %	1,422,707,000
Other operating income	0	-	0	-	0	-	0	100.0 %	-350,000
Total Operating Income	1,205,802,000	-2.8 %	1,240,295,000	-2.8 %	1,275,928,000	-8.7 %	1,397,598,000	-1.7 %	1,422,357,000
Total Operating Expenses	1,169,451,000	-3.7 %	1,214,232,000	-1.5 %	1,233,276,000	-8.0 %	1,340,959,000	-2.7 %	1,378,231,000
Operating Profit	36,351,000	39.5 %	26,063,000	-38.9 %	42,652,000	-24.7 %	56,639,000	28.4 %	44,126,000
Wages & Salaries	335,195,000	-4.2 %	349,753,000	-1.1 %	353,603,000	-11.3 %	398,470,000	-0.7 %	401,212,000
Depreciation	54,701,000	-10.1 %	60,819,000	-9.1 %	66,891,000	-7.1 %	72,018,000	-2.0 %	73,459,000
Financial Income	97,245,000	3.4 %	94,084,000	-0.6 %	94,643,000	161.0 %	36,255,000	126.1 %	16,033,000
Financial Expenses	128,346,000	24.9 %	102,731,000	-6.0 %	109,311,000	31.9 %	82,854,000	68.7 %	49,106,000
Profit Before Tax	5,250,000	-69.9 %	17,416,000	-37.8 %	27,984,000	178.7 %	10,040,000	-9.2 %	11,053,000
Tax	-3,455,000	18.2 %	-4,225,000	52.8 %	-8,953,000	5.3 %	-9,450,000	-15.7 %	-8,170,000
Profit After Tax	1,795,000	-86.4 %	13,191,000	-30.7 %	19,031,000	3,125.6 %	590,000	-79.5 %	2,883,000
Extraordinary Result	-4,298,000	-	0	-	0	-	0	-	0
Dividends	-	-	-	-	-	-	-	-	-
Net Result after Dividends	-2,503,000	-119.0 %	13,191,000	-30.7 %	19,031,000	3,125.6 %	590,000	-79.5 %	2,883,000

Balance Sheet

Financial Year	2011		2010		2009		2008		2007
Currency	NOK		NOK		NOK		NOK		NOK
Consolidated Accounts	Yes		Yes		Yes		Yes		Yes
Land & Buildings	118,133,000	-19.5 %	146,810,000	-2.4 %	150,456,000	-13.8 %	174,547,000	2.3 %	170,554,000
Plant & Machinery	0	-	0	-	0	-	0	-	0
Other Tangible Assets	222,129,000	-14.9 %	261,168,000	1.6 %	256,941,000	-18.5 %	315,103,000	-4.1 %	328,661,000
Total Tangible Assets	340,262,000	-16.6 %	407,978,000	0.1 %	407,397,000	-16.8 %	489,650,000	-1.9 %	499,215,000
Intangible Assets	64,718,000	-1.1 %	65,436,000	0.8 %	64,919,000	-8.1 %	70,632,000	12.7 %	62,697,000
Other Fixed Assets	657,000	-21.2 %	834,000	-17.0 %	1,005,000	-12.5 %	1,148,000	-3.1 %	1,185,000
TOTAL FIXED ASSETS	405,637,000	-14.5 %	474,248,000	0.2 %	473,321,000	-15.7 %	561,430,000	-0.3 %	563,097,000
Inventories	163,095,000	-1.7 %	165,896,000	11.4 %	148,955,000	-3.9 %	154,945,000	-4.1 %	161,532,000
Trade Receivables	203,542,000	-5.3 %	214,928,000	1.2 %	212,359,000	-	0	-100.0 %	210,207,000
Other Receivables	45,939,000	88.5 %	24,370,000	-	0	-100.0 %	265,095,000	1,182.0 %	20,678,000
Cash & Bank Deposits	0	-	0	-	0	-	0	-	0
Other Current Assets	0	-	0	-100.0 %	18,658,000	-	0	-	0
TOTAL CURRENT ASSETS	412,576,000	1.8 %	405,194,000	6.6 %	379,972,000	-9.5 %	420,040,000	7.0 %	392,417,000
TOTAL ASSETS	818,213,000	-7.0 %	879,442,000	3.1 %	853,293,000	-13.1 %	981,470,000	2.7 %	955,514,000
Trade Creditors	132,244,000	-17.4 %	160,164,000	27.0 %	126,107,000	-	0	-	0
Short Term Liabilities to Financial Institutions	44,738,000	-35.3 %	69,168,000	-49.5 %	136,954,000	-9.3 %	151,029,000	110.6 %	71,705,000
Short Term Liabilities to Group	0	-	0	-	0	-	0	-	0
Other Short Term Loans	0	-	0	-	0	-	0	-	0
Miscellaneous Current Liabilities	63,205,000	0.1 %	63,157,000	-9.5 %	69,796,000	-67.9 %	217,323,000	-10.4 %	242,617,000
TOTAL CURRENT LIABILITIES	240,187,000	-17.9 %	292,489,000	-12.1 %	332,857,000	-9.6 %	368,352,000	17.2 %	314,322,000
Long Term Liabilities to Financial Institutions	330,001,000	-7.2 %	355,618,000	19.0 %	298,890,000	-23.5 %	390,505,000	-9.2 %	430,039,000
Other Long Term Loans	0	-	0	-	0	-	0	-	0
Long Term Pension Commitments	2,706,000	-38.7 %	4,414,000	-39.8 %	7,334,000	-6.3 %	7,828,000	-4.6 %	8,208,000
Other Long Term Liabilities	42,608,000	234.5 %	12,736,000	26.9 %	10,034,000	-13.4 %	11,589,000	482.9 %	1,988,000
TOTAL LONG TERM LIABILITIES	375,315,000	0.7 %	372,768,000	17.9 %	316,258,000	-22.8 %	409,922,000	-6.9 %	440,235,000
TOTAL LIABILITIES	615,502,000	-7.5 %	665,257,000	2.5 %	649,115,000	-16.6 %	778,274,000	3.1 %	754,557,000
Share Capital	163,000,000	0.0 %	163,000,000	0.0 %	163,000,000	0.0 %	163,000,000	0.0 %	163,000,000
Share Premium Reserve	0	-	0	-	0	-	0	-	0
Revaluation Fund	0	-	0	-	0	-	0	-	0
Total Retained Earnings	39,709,000	-22.4 %	51,185,000	24.3 %	41,178,000	2.4 %	40,196,000	5.9 %	37,958,000
Other Reserves	0	-	0	-	0	-	0	-	0
TOTAL EQUITY	202,709,000	-5.4 %	214,185,000	4.9 %	204,178,000	0.5 %	203,196,000	1.1 %	200,958,000

Other Financials

Financial Year	2011		2010		2009		2008		2007
Total Exports	1,058,846,000	-5.6 %	1,121,361,000	2.6 %	1,092,498,000	-	-	-	-
Working Capital	172,389,000	53.0 %	112,705,000	139.2 %	47,115,000	-8.8 %	51,688,000	-33.8 %	78,095,000
Net Worth	137,991,000	-7.2 %	148,749,000	6.8 %	139,259,000	5.1 %	132,564,000	-4.1 %	138,261,000
Capital Employed	578,024,000	-1.5 %	586,953,000	12.8 %	520,436,000	-15.1 %	613,118,000	-4.4 %	641,193,000

Ratios

Financial Year	2011	2010	2009	2008	2007
Pre-Tax Profit Margin	0.44	1.40	2.19	0.72	0.78
Return on Capital Employed	0.91	2.97	5.38	1.64	1.72
Return on Total Assets Employed	0.64	1.98	3.28	1.02	1.16
Return on Net Assets Employed	2.59	8.13	13.71	4.94	5.50
Sales/Net Working Capital	6.99	11.00	27.08	27.04	18.22
Stock Turnover Ratio	13.53	13.38	11.67	11.09	11.35
Debtor Days	61.61	63.25	60.75	-	53.93
Creditor Days	40.03	47.13	36.07	-	-
Current Ratio	1.72	1.39	1.14	1.14	1.25
Liquidity Ratio/Acid Test	1.04	0.82	0.69	0.72	0.73
Current Debt Ratio	1.18	1.37	1.63	1.81	1.56
Solvency Ratio	24.77	24.35	23.93	20.70	21.03
Equity in Percentage	26.93	26.34	25.93	22.34	22.54
Total Debt Ratio	3.04	3.11	3.18	3.83	3.75

Event History

Date	Description
08/11/2012	CHANGE OF BUSINESS ADDRESS
10/10/2012	CHANGE OF BOARD OF DIRECTORS
30/06/2012	APPROVED END OF YEAR REPORT AND ACCOUNTS
11/06/2012	Limit Change
11/06/2012	Rating Change
24/05/2012	APPROVED END OF YEAR REPORT AND ACCOUNTS
14/05/2012	CHANGE OF BOARD OF DIRECTORS
23/11/2011	Limit Change
23/11/2011	Rating Change

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.56.42
UK Pound	1	Rs.86.54
Euro	1	Rs.73.86

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.