MIRA INFORM REPORT

Report Date :

06.11.2013

IDENTIFICATION DETAILS

Name :	HORUS TRADING SRL
Registered Office :	Brasov county / 500069 Brasov – Strada de Mijloc No. 146, Bl. 10B, Ap. 3
Country :	Romania
Financials (as on) :	31.12.2012
Date of Incorporation :	August, 1999
Legal Form :	Limited liability company
Line of Business :	Subject is engaged in trading spare parts for tractors
No. of Employees :	06

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 :	Moderate
Payment Behaviour :	Slow
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 name and address

NAME OF THE COMPANY	HORUS TRADING SRL
Address	Brasov county / 500069 Brasov – Strada de Mijloc No. 146, Bl. 10B, Ap. 3
Phone no. Cell phone no.	0040-268-422561 0040-722-655043	Fax no.	0040-268-422561
Web-site	-	E-mail address	horustrading@clicknet.ro

HISTORIC/OFFICIAL DATA

Date of foundation	August, 1999
Present legal form	Limited liability company, entire Romanian capital
Registered with the Trade Registry	J8/719/1999
VAT no.	12149058
Registered capital	200 RON (the minimum share-capital requested by the Law as for a limited liability company)
Shareholders	Individuals
	1. Mrs. Simion Luminta – Romanian citizen, born on 10.06.1965
	Participation			50%
	2. Mr. Cotenescu Ioan – Romanian citizen, born on 13.04.1944
	Participation			50%
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	4	4	4		4	6
BUSINESS ACTIVITY - agents involved in trade with diverse productsAgents involved in the sale of a variety of goods. Agents involved in the sale of a variety of goods. Agents involved in the sale of a variety of goods., according to the National Trade Registry updated files (NACE: 4619) According to the business directories - the company is trading spare parts for tractors and has an important export activity (it was awarded by the local Chamber of Commerce for its exports). The exports go to Egypt and Iran.

OTHER PARTICIPATION

1. Company’s participation	not applicable
2. Shareholders other participation	Mrs. Simion Luminta		not applicable
	Mr. Cotenescu Ioan		BRACAMI COM SRL – J08/1193/1998, VAT 11075858
REAL ESTATE (RON)
	2010	2011		2012
- lands	0	0		0
- buildings	31,783	31,783		31,783
- equipment	3,829	18,094		18,095
BANKS	N/A
MANAGEMENT as officially registered with the National Trade Registry	Administrator Mrs. Simion Luminita – appointed on 19.07.1999 for an unspecified 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
INTANGIBLES - TOTAL	0	0
TANGIBLES - TOTAL	49,878	49,878
FINANCIALS - TOTAL	0	0
FIXED ASSETS - TOTAL	49,878	49,878
STOCKS - TOTAL	806,115	439,493
CLAIMS - TOTAL	964,305	1,230,173
CURRENT ASSETS	2,667,961	2,749,207
PREPAID EXPENSES	19,395	19,395
DEBTS WITHIN 1 YEAR	2,383,197	2,400,831
DEBTS OVER 1 YEAR	0	0
PROVISIONS	0	0
ADVANCED INCOMES	0	0
REGISTERED CAPITAL	200	200
RESERVES	38,235	38,235
PROFITS CARRIED FORWARD	245,090	315,602
NET RESULT - PROFIT	70,512	63,612
NET RESULT - LOSS	0	0
NET WORTH	354,037	417,649
PROFIT & LOSS ACCOUNT	31.12.2011	31.12.2012
Turnover	4,994,938	7,078,519
Own production & services	0	0
Sales	4,994,938	7,078,519
INCOMES FROM ORDINARY OPERATING ACTIVITY	4,994,938	7,078,519
Raw materials	21,777	5,608
Costs of goods sold	4,673,457	6,745,662
Wages	53,206	66,048
Depreciations & provisions	6,835	0
Other operating costs	156,141	198,781
COSTS OF ORDINARY OPERATING ACTIVITY	4,923,039	7,046,767
ORDINARY OPERATING RESULT - PROFIT	71,899	31,752
ORDINARY OPERATING RESULT - LOSS	0	0
FINANCIAL INCOMES	12,047	65,983
FINANCIAL COSTS	3	22,006
FINANCIAL RESULT - PROFIT	12,044	43,977
FINANCIAL RESULT - LOSS	0	0
CURRENT RESULT - PROFIT	83,943	75,729
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	5,006,985	7,144,502
TOTAL COSTS	4,923,042	7,068,773
PRETAX RESULT - PROFIT	83,943	75,729
PRETAX RESULT - LOSS	0	0
TAX ON PROFIT	13,431	12,117
NET RESULT - PROFIT	70,512	63,612
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 31.12.2012. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 31.12.2012

- all figures are reported in RON if otherwise not specified.

Size

micro, considering the number of employees

Position & trend

fair volume of activity developed, with rather satisfactory financial standing.

Special attention to the indebtedness rate: the too low equity level lead to constant over limited borrowing ratio, meaning rather high dependency on borrowed sources.

The payments behaviour is correct, without delays.

The business relationships are feasible and the credit facilities are suitable, but the business trend should be followed.

31.12.2008

31.12.2009

31.12.2010

31.12.2011

31.12.2012

Turnover

RON

4,288,940

4,890,658

4,172,180

4,994,938

7,078,519

EURO

1,076,217

1,156,676

973,716

1,156,316

1,598,329

Gross profit

RON

57,038

103,202

70,695

83,943

75,729

EURO

14,313

24,408

16,499

19,433

17,100

Net profit

RON

47,912

86,690

59,384

70,512

63,612

EURO

12,022

20,503

13,859

16,323

14,364

31.12.2012

CREDITS & LOANS (ACTIVE BALANCE)

None (zero)

BALANCE CLAIMS-DEBTS

Negative

Total claims

1,230,173

clients & trade debtors

755,644

claims with the State Budget & Social Insurance

466,362

Total debts, 100% on short term

2,400,831

suppliers & trade creditors

1,614,653

to the Social Insurance

5,146

to the State Budget

11,828

to the shareholders

600,964

other debts

165,354

PAYMENTS BEHAVIOR

correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded in the period 30.10.2012 – 30.10.2013

FINANCIAL STRENGTH

173,000 EURO

RISK CATEGORY

Above normal

BUSINESS RELATIONS

Permissible

Applies to short term credit facilities and should not be construed as a maximum credit limit, which can be only established by the supplier. The credit limit has been set using a formula which takes into consideration the credit rating, and the latest behavioral and financial performances. Other information may of course influence the size of the credit you may grant.

2008

2009

2010

2011

2012

Depreciated, but still satisfactory

Liquidity analysis

- current ratio

7.77

13.95

2.51

1.12

1.15

- quick ratio

7.25

11.12

2.41

0.78

0.96

Solvability analysis

Constant over limited indebtedness arte

- the borrowing ratio (total debts/net worth)

7.91

4.54

5.61

6.73

5.75

Profitability analysis (%)

Low (the good value of the “return on equity” is due to the low level of equity)

- return on capital

34.86

38.68

20.94

19.92

15.23

- return on assets

3.91

6.98

3.17

2.58

2.26

- gross profit margin

1.33

2.11

1.69

1.68

1.07

Activity analysis

Normal settlements of debtors

- debtor’s days

6

59

98

70

63

- creditor’s days

n/a

n/a

n/a

n/a

n/a

Stocks turnover, times/year

6

20

62

6

16

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.79
UK Pound	1	Rs.98.66
Euro	1	Rs.83.42

INFORMATION DETAILS

Report Prepared by :

NIS

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.