MIRA INFORM REPORT

Report Date :

06.11.2013

IDENTIFICATION DETAILS

Name :	SEPTIMA SRL
Registered Office :	Brasov county, Cristian commune, Mihai Eminescu Street no. 38A
Country :	Romania
Financials (as on) :	31.12.2012
Date of Incorporation :	February, 1993
Legal Form :	Limited liability company
Line of Business :	Wholesale trade with spare parts and accessories for auto vehicles
No. of Employees :	02

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 NAME AND ADDRESS

NAME OF THE COMPANY	SEPTIMA SRL
Address	Brasov county, Cristian commune, Mihai Eminescu Street no. 38A
Phone no. Cell phone no.	0040-268-257847 ; 331456 0040-740-300704 0040-742-001628	Fax no.	0040-268-257847 ; 331456
Web-site	www.septima.com.ro	E-mail address	septima@clicknet.ro z

HISTORIC/OFFICIAL DATA

Date of foundation	February, 1993
Present legal form	Limited liabilityu company, entire Romanian capital
Registered with the Trade Registry	J8/2690/1992
VAT no.	3047458
Registered capital	17,320 RON
Shareholders	Individuals
	1. Georgescu Anca – Romanian citizen, born on 15.12.1975
	Participation			94.226%
	2. Georgescu Dorinel – Romanian citizen, born on 20.06.1955
	Participation			5.774%
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	-	1	2		2	2
BUSINESS ACTIVITY According to the National Trade Registry update data files - wholesale trade with spare parts and accessories for auto vehicles (NACE-4531) According to company’s web site: - it develop its activity on line (on line shop) -it has an work shop in Brasov county, Brasov, 15 Noiembrie blvd. No. 84, Bl. C26. Et. 2, Ap. 4

OTHER PARTICIPATION

1. Company’s participation	not involved as shareholder in any other Romanian company
2. Shareholders other participation	Georgescu Anca	1.SEPTIMA CONT SRL Reg. no.: J08/939/2007, VAT 21480203 2.SEPTIMA DISTRIBUTION SRL Reg. no.: J08/809/2013, VAT 31679760
	Gerogescu Dorinel	not involved as shareholder in any other Romanian company

REAL ESTATE (RON)

	2010	2011	2012
- lands	64,371	64,371	64,371
- buildings	0	0	0
- equipment	596,794	158,064	84,902
BANKS	N/A
MANAGEMENT as officially registered with the National Trade Registry	ADMINISTRATORS 1.Georgescu Dorinel – appointed on 14.07.2004 for unlimited period Georgescu Anca – appointed on 11.11.2008 for unlimited 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	222,435	149,273
FINANCIALS - TOTAL	0	0
FIXED ASSETS - TOTAL	222,435	149,273
STOCKS - TOTAL	329,239	713,550
CLAIMS - TOTAL	65,827	152,229
CURRENT ASSETS	645,380	1,209,537
PREPAID EXPENSES	0	0
DEBTS WITHIN 1 YEAR	267,054	851,500
DEBTS OVER 1 YEAR	0	0
PROVISIONS	0	0
ADVANCED INCOMES	0	0
REGISTERED CAPITAL	17,320	17,320
RESERVES	50,647	50,647
PROFITS CARRIED FORWARD	420,000	370,000
NET RESULT - PROFIT	112,794	69,343
NET RESULT - LOSS	0	0
NET WORTH	600,761	507,310
PROFIT & LOSS ACCOUNT	31.12.2011	31.12.2012
Turnover	2,120,087	1,912,071
Own production & services	218	120
Sales	2,120,052	1,912,038
INCOMES FROM ORDINARY OPERATING ACTIVITY	2,120,318	1,913,321
Raw materials	27,630	30,318
Costs of goods sold	1,673,012	1,518,107
Wages	51,542	51,542
Depreciations & provisions	79,788	79,733
COSTS OF ORDINARY OPERATING ACTIVITY	1,970,949	1,836,349
ORDINARY OPERATING RESULT - PROFIT	149,369	76,972
ORDINARY OPERATING RESULT - LOSS	0	0
FINANCIAL INCOMES	75,948	76,088
FINANCIAL COSTS	88,596	68,292
FINANCIAL RESULT - PROFIT	0	7,796
FINANCIAL RESULT - LOSS	12,648	0
CURRENT RESULT - PROFIT	136,721	84,768
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	2,196,266	1,989,409
TOTAL COSTS	2,059,545	1,904,641
PRETAX RESULT - PROFIT	136,721	84,768
PRETAX RESULT - LOSS	0	0
TAX ON PROFIT	23,927	15,425
NET RESULT - PROFIT	112,794	69,343
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

Descendant volume of activity, up to a satisfactory level of turnover with strongly fluctuant but always positive economic returns. Both, turnover and gross profit got decreased in 2012, with 12% (in EURO) and respectively with 40% (in EURO).

Liquidity is decreasing up to a low quick ratio and solvability got deteriorated, but indebtedness rate is still acceptable.

Payments behaviour looks correct, no delays being reported.

Financial standing is acceptable.

Business trend should be followed.

31.12.2008

31.12.2009

31.12.2010

31.12.2011

31.12.2012

Turnover

RON

4,310,620

3,400,861

2,064,706

2,120,087

1,912,071

EURO

1,081,657

804,328

481,868

490,795

431,745

Gross profit

RON

380,967

291,335

34,332

136,721

84,768

EURO

95,595

68,903

8,013

31,651

19,141

Net profit

RON

317,005

244,003

19,674

112,794

69,343

EURO

79,546

57,708

4,592

26,112

15,658

31.12.2012

CREDITS & LOANS (ACTIVE BALANCE)

none

BALANCE CLAIMS-DEBTS

Negative

Total claims

152,229

clients & trade debtors

152,229

Total debts

851,500

- Short term

851,500

suppliers & trade creditors

781,865

to the Social Insurance

1,490

to the State Budget

2,499

to the shareholders

55,364

other debts

7,857

PAYMENTS BEHAVIOR

Correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No payments incidents recorded during 30.10.2012 – 30.10.2013

2008

2009

2010

2011

2012

Decreasing up to a low quick ratio

Liquidity analysis

- current ratio

2.81

2.36

1.87

2.42

1.42

- quick ratio

1.47

0.98

0.99

1.18

0.58

Solvability analysis

Deteriorated, but still acceptable indebtedness rate

- the borrowing ratio (total debts/net worth)

0.42

0.38

0.56

0.44

1.68

Profitability analysis (%)

Fluctuant

- return on capital

60.84

37.65

3.41

18.78

13.67

- return on assets

32.05

27.32

2.19

13.00

5.10

- gross profit margin

8.84

8.57

1.66

6.45

4.43

Activity analysis

Debtors days within normal limits

- debtor’s days

7

12

35

11

14

- creditor’s days

n/a

n/a

n/a

n/a

n/a

Stocks turnover, times/year

15

10

7

6

3

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.