MIRA INFORM REPORT

Report Date :

31.05.2013

IDENTIFICATION DETAILS

Name :	ROMPETROL RAFINARE SA
Registered Office :	Constanta County, Navodari, Navodari Ave. No. 215
Country :	Romania
Financials (as on) :	30.06.2012
Date of Incorporation :	05.02.1991
Legal Form :	joint stock company, joint venture of Romanian state and private capital & foreign capital
Line of Business :	Subject offer products of a leading refining technologies
No. of Employees :	977

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Poor
Payment Behaviour :	Unknown
Litigation :	--

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	ROMPETROL RAFINARE SA
Address	Constanta County, Navodari, Navodari Ave. No. 215
Phone no. Cell phone no.	0241-506000, 506100, 506150	Fax no.	0241-506930, 506933, 506901
Web-site http://www.caranda.ro/	www.rompetrol-rafinare.rohttp://www.neobautech.ro/	E-mail address	office.rafinare@rompetrol.com

HISTORIC/OFFICIAL DATA

Date of foundation	5.02.1991
Present legal form	joint stock company , joint venture of Romanian state and private capital &foreign capital
Registered with the Trade Registry	J13/534/1991
VAT no.	1860712
Registered capital	4,410,920,572.6 RON
Shareholders	Individuals
	1. List of individuals
	Participation			11.5626%
	Legal persons
	2. THE ROMPETROL GROUP N.V..
	Address: Holland , Amsterdam , STRAWINSKYLAAN 807 TOWER A-8, 1077XX
	Participation			43.7415%
	3. Romanian State through Ministry of Public Finance
	Address: Bucharest, 14 Apolodor Str.
	Participation			44.6959%
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	June 2012
total	879	1,127	1,016	1,057	1,103	977
BUSINESS ACTIVITY Identity Rompetrol Rafinare SA, member of The Rompetrol Group (originally owned by businessman Dinu Patriciu, Rompetrol Group NV is currently owned 75% of Kazakh company KazMunazGaz), operates the most modern refinery in Romania, combining new technologies for processing oil with a team of professional experience. The company processes a wide variety of crude oils with high sulfur content. Supply of crude oil is achieved by Midia port, located in the vicinity of the industrial platform, which can accommodate ships up to 24,000 dwt or port Constanta, through a pipeline 40 kilometers. The refinery has a marine terminal facilities and rail car for loading / unloading products. Activity ROMPETROL REFINING offer products of a leading refining technologies. In addition to various types of vehicles (petrol, diesel, LPG), the company is the only national producer of type jet fuel A-1, aiming to become the next period leading supplier of fuel to airlines operating in Romania and Moldova. ROMPETROL REFINING products comply with European standards of quality and environmental standards, are sold in Romania: - Through the distribution network ROMPETROL DOWNSTREAM - Through other retail distribution and wholesale and regional markets: - In countries such as Moldova, Bulgaria, Turkey, Georgia, Hungary ROMPETROL REFINING products are also exported constantly in Croatia, Bosnia, Albania and Western Europe. Products Unleaded Petrol Petroleum Other medium and heavy oil used as fuel for heating Gas Cyclic hydrocarbons Liquefied Petroleum Gas Petroleum Coke Propylene CC Oil sulfur Rompetrol Rafinare SA are listed on BSE, as of 07/04/2004 (symbol: RRC). Work-shops, as officially registered with the National Trade Registry Constanta County, Navodari, Navodari Ave no: 1-283 prahova County, 146 Valeni Str. mass-media information: According to press (source: the Wall Street / 03.11.2008), Rompetrol Rafinare bought Rompetrol SA (the other member company of Rompetrol Group) facilities, technological equipment and other assets of Vega for $ 102 7 million RON (27.6 million), excluding VAT. 30-40 Vega produces special products such as organic solvents and heating fuels and has a capacity of 300,000 tons / year.
OTHER PARTICIPATION
1. Company’s participation				ROM OIL S.A. J08 /549 /1998 10600770
				ECOMASTER - SERVICII ECOLOGICE S.R.L. J40/6646/2001 VAT 14045827
2. Shareholders other participation	THE ROMPETROL GROUP N.V. is involved as shareholder in other 7 Romanian companies

REAL ESTATE (RON)

- lands & buildings	2007	2008	2009	2010	2011
	654,075,050	620,215,482	688,202,336	n/a	n/a
TANGIBLES*	2,284,506,065 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	board of administrators : president of the board ZHANGULOV AZAMAT, citizen of Kazakhstan , born on 16.03.1980 App date: 06.08.2012 Exp date: 30.04.2014 Member of the board and general manager GRAURE SORIN born on 12.09.1978, Loc. Constanţa, Constanţa, România App date: 05.03.2013 Exp date: 30.04.2014 Member of the board VULPESCU DUMITRU REMUS born on 16.05.1972 App date: 26.10.2012 Exp date: 30.04.2014 Member of the board BUTNARU IULIAN MARIAN born on 30.06.1963 App date: 26.10.2012 Exp date: 30.04.2014 Member of the board Nicolcioiu Alexandru , born on 26.09.1951 App. Date: 18.02.2010 exp. Date: 30.04.2014 accounting manager MANOLE VASILE GABRIEL, Romanian citizen, born on 22.08.1980 app. Date: 01.11.2010 for unspecified period
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

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2011	30.06.2012
INTANGIBLES - TOTAL	2,271,469	1,803,931
TANGIBLES - TOTAL	2,265,630,938	2,284,506,065
FINANCIALS - TOTAL	2,032,861,978	2,032,861,978
FIXED ASSETS - TOTAL	4,300,764,385	4,319,171,974
STOCKS - TOTAL	906,137,452	1,240,286,408
CLAIMS - TOTAL	1,312,047,632	1,198,722,888
CURRENT ASSETS	2,261,247,232	2,490,579,697
PREPAID EXPENSES	1,555,268	839,512
DEBTS WITHIN 1 YEAR	6,617,973,868	4,579,345,780
DEBTS OVER 1 YEAR	0	80,638,480
PROVISIONS	79,684,017	118,049,014
ADVANCED INCOMES	0	11,227,300
REGISTERED CAPITAL	4,410,920,573	4,410,920,573
RESERVES	30,517,089	2,614,817,397
RESERVES FROM ASETS REASSESSMENT	215,074,275	215,074,275
UNCOVERED LOSSES FORM PREVIOUS YEARS	4,287,392,460	5,023,240,044
NET RESULT - PROFIT	0	0
NET RESULT - LOSS	735,847,584	428,878,699
NET WORTH	-134,091,000	2,021,330,609
PROFIT & LOSS ACCOUNT	30.06.2011	30.06.2012
Turnover	5,295,110,753	5,949,098,028
Own production & services	5,291,346,456	5,936,814,387
Sales	5,044,226	12,283,641
INCOMES FROM ORDINARY OPERATING ACTIVITY	5,406,160,546	5,995,365,621
Raw materials	5,090,061,839	5,642,144,430
Costs of goods sold	2,397,714	11,678,215
Wages	34,936,928	26,378,104
Depreciations & provisions	73,585,082	88,978,342
COSTS OF ORDINARY OPERATING ACTIVITY	5,505,439,897	6,150,812,580
ORDINARY OPERATING RESULT - PROFIT	0	0
ORDINARY OPERATING RESULT - LOSS	99,279,351	155,446,959
FINANCIAL INCOMES	935,340,200	615,003,526
FINANCIAL COSTS	656,424,505	888,435,266
FINANCIAL RESULT - PROFIT	278,915,695	0
FINANCIAL RESULT - LOSS	0	273,431,740
CURRENT RESULT - PROFIT	179,636,344	0
CURRENT RESULT - LOSS	0	428,878,699
Extraordinary incomes	0	0
Extraordinary costs	0	0
EXTRAORDINARY RESULT - PROFIT	0	0
EXTRAORDINARY RESULT - LOSS	0	0
TOTAL INCOMES	6,341,500,746	6,610,369,147
TOTAL COSTS	6,161,864,402	7,039,247,846
PRETAX RESULT - PROFIT	179,636,344	0
PRETAX RESULT - LOSS	0	428,878,699
TAX ON PROFIT	0	0
NET RESULT - PROFIT	179,636,344	0
NET RESULT - LOSS	0	428,878,699

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

Subject is one of the most important companies in its field, occupying an important position in the Romanian business environment, being an important contributor to the state budget and local budgets.
Financial data available confirms huge volume of business. In terms of economic and financial results for a company of this size, the financial standing shows generally modest, although there are registered especially losses.

It should be noted that, especially in this field, economic and financial results depend on many external factors (eg, global price of oil barrel, political situations of countries in which are business partners, etc)

Overall, we consider ROMPETROL RAFINARE SA is a company that can conduct business relations, including trade credit based. Also, taking into account the state involvement in the shareholding of the company, the importance of the company in the economic environment.

	2007	2008	2009	2010	2011	Jun-11	Jun-12
TURNOVER
RON	5,429,312,435	8,665,021,543	6,281,160,059	7,099,249,720	10,174,808,952	5,295,110,753	5,949,098,028
EURO	1,503,881,346	2,174,300,297	1,485,539,960	1,656,845,062	2,355,443,422	1,250,587,079	1,337,056,239
GROSS PROFIT
RON	-314,323,203	-465,013,141	-474,087,418	-669,730,238	-735,847,584	179,636,344	-428,878,699
EURO	-87,065,316	-116,685,020	-112,125,117	-156,303,734	-170,346,919	42,426,099	-96,390,232
NET PROFIT
RON	-314,323,203	-465,013,141	-474,116,085	-669,762,488	-735,847,584	179,636,344	-428,878,699
EURO	-87,065,316	-116,685,020	-112,131,897	-156,311,260	-170,346,919	42,426,099	-96,390,232

30.06.2012

CREDITS & LOANS (ACTIVE BALANCE)

Bank credits, on short term (within 1year)

44,927

Bank credits, on medium term (over 1year)

0

Other financial loans & afferent interests, on short term (within 1year)

0

Other financial loans & afferent interests, on medium term (over 1year)

34,940,025

BALANCE CLAIMS-DEBTS

negative

Total claims

1,198,722,888

clients & trade debtors

1,005,553,135

Other claims

61,618,706

Claims with the state budget

43,756,368

Total debts

4,659,984,260

- Short term

4,579,345,780

suppliers & trade creditors

2,779,515,486

bank credits

44,927

to the Social Insurance and state budget

358,680,577

debts to the entities of the group

1,403,318,657

-on medium term

80,638,480

Other financial loans & afferent interests, on medium term (over 1year)

34,940,025

PAYMENTS BEHAVIOR

with delays

Total overdue of 11 % of turnover

676,976,491

To suppliers

676,976,491

over 30 days

665,488,493

over 90 days

6,914,260

over 1 year

4,573,738

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents between 29.05.2012-29.05.2013

RISK CATEGORY

above normal

BUSINESS RELATIONS

permissible

2007

2008

2009

2010

2011

June 2012

Liquidity analysis

- current ratio

1.05

0.71

0.40

0.41

0.34

0.54

- quick ratio

0.74

0.51

0.24

0.25

0.20

0.27

Solvability analysis

- the borrowing ratio (total debts/net worth)

1.07

1.71

3.46

9.53

-4.95

2.31

Profitability analysis (%)

- return on capital

0

0

0

0

0

0

- return on assets

0

0

0

0

0

0

- gross profit margin

0

0

0

0

0

0

Activity analysis

- debtor’s days

101

52

53

70

47

36

- creditor’s days

78

53

63

n/a

n/a

n/a

Stocks turnover, times/period

9

17

10

8

11

5

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.56.10
UK Pound	1	Rs.85.13
Euro	1	Rs.72.80

INFORMATION DETAILS

Report Prepared by :

SDA

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.