MIRA INFORM REPORT

Report Date :

11.12.2014

IDENTIFICATION DETAILS

Name :	UNITED PVS SRL
Registered Office :	Suceava County / 720103 Suceava – Eroilor Street No. 66
Country :	Romania
Financials (as on) :	31.12.2013
Date of Incorporation :	October, 2011
Legal Form :	Limited Liability Company, Entire Foreign (Indian) capital
Line of Business :	· Wholesaler of wood and Construction Materials as well as Sanitary Equipment Engaged in trading of Sawn Timber, Softwoods, Hardwoods, Panel, Logs & Veneers
No of Employees :	14 (2013)

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 :	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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Romania	b1	b1

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 EU 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 due 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. As a result of the global financial crisis, Romania signed on to a $26 billion emergency assistance package from the IMF, the EU, and other international lenders. GDP contracted from 2009 to 2011. 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. In September 2013, the Romanian authorities and the IMF/EU agreed to a follow-on stand-by agreement, worth $5.4 billion, to continue with reforms, although Bucharest announced that it does not intend to draw funds under the agreement. Economic growth accelerated in 2013, driven by strong industrial exports and an excellent agricultural harvest; in December 2013 inflation dropped to a historical low annual rate of 1.6%; and the current account deficit was reduced substantially. Yet, progress on structural reforms is uneven and the economy still is vulnerable to shocks.

Source : CIA

Company Summary

NAME OF THE COMPANY

UNITED PVS SRL

Address

Suceava county / 720103 Suceava – Eroilor Street No. 66

Phone no.

Cell phone no.

0040-330-803701

0040-371-097339

0040-745-329690

0040-736-160275

Fax no.

N/A

Web-site

www.pvsinternational.com

E-mail address

mmargarit@pvsinternational.com

dvandronic@pvsinternational.com

HISTORIC/OFFICIAL DATA

Date of foundation

October, 2011

Present legal form

Limited liability company, entire foreign (Indian) capital

Registered with the Trade Registry

J33/939/2011

VAT no.

29229038

Registered capital

3,136,890 RON

Shareholders

Unique owner, individual

Mr. Nihalani Vijay Choithram – Indian citizen, born on 29.11.1955

Participation

100%

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

2011

2012

2013

total

-

3

14

BUSINESS ACTIVITY

- Wholesale of wood and construction materials as well as sanitary equipment, according to the National Trade Registry updated files

(NACE: 4673)

Engaged in trading of Sawn Timber, Softwoods, Hardwoods, Panel, Logs & Veneers

According to www.pvsinternational.com

UNITED PVS SRL is the Romanian wing of the Indian PVS International, a global leader in the supply of wood products.

According to the Romanian business directories, UNIVED PVS SRL is trading (exporting) timber.

Work-shops, as officially registered with the National Trade Registry

1. Constanta county / Constanta Port (harbor), inside free zone, Agigea, parcela 17 (Cladirea Beta Intertrans, camera 3)

Phone no.: 0040-371-097339

2. Constanta county/ Constanta Port (harbor), Agigea

OTHER PARTICIPATION

1. Company’s participation

not applicable

2. Shareholders other participation

not applicable

REAL ESTATE (RON)

2011

2012

2013

- lands

0

N/A

0

- buildings

0

N/A

0

- equipment

0

N/A

492,328

BANKS

N/A

MANAGEMENT

· as officially registered with the National Trade Registry

Administrator

Mr. Khemani Ashok Menghraj – Indian citizen, born on 24.04.1947

Appointed on 11.10.2011 for unlimited period

CURRENCY

Exchange rate of EURO

1 EURO = 4.3197 RON on 31.12.2011

1 EURO = 4.4287 RON on 31.12.2012

1 EURO = 4.4847 RON on 31.12.2013

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2011	31.12.2012	31.12.2013
INTANGIBLES - TOTAL	373	N/A	360
TANGIBLES - TOTAL	0	N/A	541,728
FINANCIALS - TOTAL	0	N/A	0
FIXED ASSETS - TOTAL	373	189,110	542,088
STOCKS - TOTAL	165	0	2,077,199
CLAIMS - TOTAL	0	53,377	619,622
CURRENT ASSETS	3,954	205,938	3,074,267
PREPAID EXPENSES	0	32,815	0
DEBTS WITHIN 1 YEAR	0	N/A	311,148
DEBTS OVER 1 YEAR	7,000	N/A	151,452
TOTAL DEBTS	7,000	422,812	462,600
PROVISIONS	0	0	0
ADVANCED INCOMES	0	0	0
REGISTERED CAPITAL	2,000	2,000	3,136,890
PROFITS CARRIED FORWARD	0	N/A	4,713
NET RESULT - PROFIT	0	7,724	12,152
NET RESULT - LOSS	4,673	0	0
NET WORTH	-2,673	5,051	3,153,755
PROFIT & LOSS ACCOUNT	31.12.2011	31.12.2012	31.12.2013
Turnover	0	143,135	7,871,243
Own production & services	0	N/A	894,946
Sales	0	N/A	6,976,297
INCOMES FROM ORDINARY OPERATING ACTIVITY	0	N/A	7,920,643
Raw materials	0	N/A	148,816
Costs of goods sold	0	N/A	6,744,699
Wages	0	N/A	353,730
Depreciations & provisions	2	N/A	66,877
Other operating costs	4,671	N/A	453,071
COSTS OF ORDINARY OPERATING ACTIVITY	4,673	N/A	7,817,029
ORDINARY OPERATING RESULT - PROFIT	0	N/A	103,614
ORDINARY OPERATING RESULT - LOSS	4,673	N/A	0
FINANCIAL INCOMES	0	N/A	111,080
FINANCIAL COSTS	0	N/A	191,935
FINANCIAL RESULT - PROFIT	0	N/A	0
FINANCIAL RESULT - LOSS	0	N/A	80,855
CURRENT RESULT - PROFIT	0	N/A	22,759
CURRENT RESULT - LOSS	4,673	N/A	0
Extraordinary incomes	0	N/A	0
Extraordinary costs	0	N/A	0
EXTRAORDINARY RESULT - PROFIT	0	N/A	0
EXTRAORDINARY RESULT - LOSS	0	N/A	0
TOTAL INCOMES	0	171,163	8,031,723
TOTAL COSTS	4,673	161,850	8,008,964
PRETAX RESULT - PROFIT	0	9,313	22,759
PRETAX RESULT - LOSS	4,673	0	0
TAX ON PROFIT	0	N/A	10,607
NET RESULT - PROFIT	0	7,724	12,152
NET RESULT - LOSS	4,673	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 31.12.2013. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 31.12.2013

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

Size

small, considering the number of employees

Position & trend

Although incorporated in October, 2011, the subject company has really started its activity just in 2012, considering the figures at hand. Moreover, just in 2013 it registered a consistent business volume, with an already considerable turnover.

Also, the equity registered a significant increase, following the share-capital increase.

Generally, the business trend seems upward. For the moment, we still appreciate the business relationships are feasible, but any contemplated credit based transaction should be secured.

The company’s situation should be checked at a later date.

31.12.2011

31.12.2012

31.12.2013

Turnover

RON

0

143,135

7,871,243

EURO

0

32,320

1,755,133

Gross profit

RON

-4,673

9,313

22,759

EURO

-1,082

2,103

5,075

Net profit

RON

-4,673

7,724

12,152

EURO

-1,082

1,744

2,710

31.12.2013

CREDITS & LOANS (ACTIVE BALANCE)

151,452

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

151,452

BALANCE CLAIMS-DEBTS

Negative

Total claims

619,622

clients & trade debtors

313,059

claims with the Social Insurance & the State Budget

84,998

Total debts

462,600

- Short term

311,148

suppliers & trade creditors

254,675

to the Social Insurance

25,398

to the State Budget

8,494

- Medium term

151,452

other financial loans & afferent interests

151,452

PAYMENTS BEHAVIOR

Correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded in the period 10.12.2013 – 10.12.2014

FINANCIAL STRENGTH

1,319 tsd EURO

BUSINESS RELATIONS

Under secured terms

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.

2011

2012

2013

Improving

Liquidity analysis

- current ratio

*

0.49*

9.88

- quick ratio

*

0.49*

3.20

*because the short term debt and the medium term are N/A, these ratios are calculated considering the total debt.

Solvability analysis

Improving

- the borrowing ratio (total debts/net worth)

*

83.71

0.15

Profitability analysis (%)

Very low in 2013

- return on capital

*

152.92

0.39

- return on assets

*

1.81

0.34

- gross profit margin

*

6.51

0.29

Activity analysis

Normal settlements of debtors in 2013

- debtor’s days

*

136

29

- creditor’s days

*

n/a

n/a

Stocks turnover, times/year

*

*

4

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.95
UK Pound	1	Rs.97.16
Euro	1	Rs.76.75

INFORMATION DETAILS

Analysis Done by :	DIV
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%)

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.