MIRA INFORM REPORT

Report Date :

21.02.2014

IDENTIFICATION DETAILS

Name :	GOVCREST INTERNATIONAL SRL
Registered Office :	Bucharest, 32 Pache Protopopescu Ave.
Country :	Romania
Financials (as on) :	31.12.2012
Date of Incorporation :	16.07.1991
Legal Form :	Limited Liability Company
Line of Business :	· Engaged in the sale of fuels, ores, metals and industrial chemicals · exporter of chemicals such as soda ash light and dense, caustic soda liquid, solid and flakes, sodium silicate solid and solution, calcium carbide and sodium bicarbonate food grade .
No. of Employees :	23 (2012)

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 – december 01, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
Romania	B2	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 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 & address

NAME OF THE COMPANY	GOVCREST INTERNATIONAL SRL
Address	Bucharest, 32 Pache Protopopescu Ave.
Phone no. Cell phone no.	0040-21-25214996 / 2524985 -	Fax no.	0040-21-2524996
Web-site	www.govcrest.ro	E-mail address	office@govcrest.ro

HISTORIC/OFFICIAL DATA

Date of foundation	16.07.1991
Present legal form	Limited liability company, entire Romanian capital
Registered with the Trade Registry	J40/6572/1991
VAT no.	2595924
Registered capital	2,325,400 RON
Shareholders	Individuals
	Popa Emilia Anastasia – Romanian citizen, born on 17.03.1956
	Participation				0.63635%
	Boghiu Stefan – Romanian citizen, born on 03.01.1952
	Participation				48.36365%
	Legal person
	GRUPUL INDUSTRIAL VOICULESCU SI COMPANIA (GRIVCO) SA – Romanian legal person
	Reg. no.: J40/3766/1991, VAT 1569870
	Address: Bucharest, 1B Garlei Str., Sector 1
	Participation				51%
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	302012
total	23	24		23	23		22	23
BUSINESS ACTIVITY : intermediary involved in the sale of fuels, ores, metals and industrial chemicals exporter of chemicals such as soda ash light and dense, caustic soda liquid, solid and flakes, sodium silicate solid and solution, calcium carbide and sodium bicarbonate food grade .
OTHER PARTICIPATION
1. Company’s participation	not applicable
2. Shareholders other participation			Name of the company			Reg. no.			VAT
	GRUPUL INDUSTRIAL VOICULESCU SI COMPANIA (GRIVCO) SA		1.INTACT PRODUCTION SRL			J40/25348/1994			6812244
			2.INTACT MEDIA ADVISORS SRL			J40/16522/2003			15967078
			3.GRUPUL MEDIA CAMINA (G.M.C.) SRL			J40/13006/2002			15081313
			4.GRIVCO AIR S.R.L.			J40/15372/2008			24445243
			5.DIRECT HOME DELIVERY S.R.L.			J40/5792/2008			23615455
			6.AGRO DV S.R.L.			J40/3320/2000			12878251
			7.ANTENA 4 SRL			J40/16735/2003			15979862
			8.ANTENA TV GROUP S.A.			J40/3765/1991			1599030
			9.BENEFICA S.R.L.			J40/27540/1994			6812252
			10.CARPATFOREST S.R.L.			J23/1483/2004			2352917
			11.CONVERGENT MEDIA S.A.			J40/2690/1995			7447520
			12.MILLENIUM INSURANCE BROKER (M.I.B.) SA			J40/5065/1997			9557790
			13.MUTUAL INVEST S.R.L.			J40/19540/1994			7025584
			14.OMINVEST S.R.L			J40/21155/1993			4643017
			15.ROMBELL SECURITIES S.A.			J40/6505/1995			7614628
			16.SANGOLD (OMI) DISTRIBUTIE S.R.L.			J40/22356/1992			2604054
			17.SIXTIES RESTAURANTS S.R.L.			J40/11224/2000			13578449
			18.TIPOGRAFIA INTACT S.A.			J40/25349/1994			6812236
			19.VIP AIR S.R.L.			J40/5144/1999			11852733
			20.W.I.S.E. INVEST S.R.L.			J40/10143/2002			14943534
	Popa Emilia Anastasia		Not involved as shareholder in any other Romanian company
	Boghiu Stefan		ASCOM INTERNATIONAL SRL			J40/9541/2003			15583883
REAL ESTATE (RON)
- lands & buildings	2007	2008		2009	2010		2011	2012
	1,673,309	1,658,694		2,571,574	2,542,469		2,513,365	3,205,303
BANKS	n/a
MANAGEMENT · as officially registered with the National Trade Registry	President & General Manager BOGHIU STEFAN – Romanian citizen, born on 03.01.1952 Appointed on 17.06.2004 for unlimited period Administrators DUMITRESCU GORLET IONEL – Romanian citizen, born on 15.08.1951, Appointed on 20.04.2007 for unlimited period ENACHE ELENA – Romanian citizen, born on 27.05.1955 Appointed on 30.11.2009 for unlimited 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 = 4.3197 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	16,334
TANGIBLES - TOTAL	2,884,577	3,493,661
FINANCIALS - TOTAL	0	0
FIXED ASSETS - TOTAL	2,884,577	3,509,995
STOCKS - TOTAL	777,089	1,913,378
CLAIMS - TOTAL	28,596,033	33,933,459
CURRENT ASSETS	35,644,435	40,497,461
PREPAID EXPENSES	26,110	25,415
DEBTS WITHIN 1 YEAR	29,415,067	32,645,068
DEBTS OVER 1 YEAR	0	0
PROVISIONS	0	333,805
ADVANCED INCOMES	0	0
REGISTERED CAPITAL	2,325,400	2,325,400
RESERVES	1,317,063	1,496,270
RESERVES FROM ASSETS REASSESSMENT	2,246,936	2,967,978
PROFITS CARRIED FORWARD	0	425,590
NET RESULT - PROFIT	3,448,529	4,017,967
NET RESULT - LOSS	0	0
NET WORTH	9,140,055	11,053,998
PROFIT & LOSS ACCOUNT	31.12.2011	31.12.2012
Turnover	118,279,545	94,674,551
Own production & services	1,003,087	1,118,163
Sales	117,611,484	93,599,944
INCOMES FROM ORDINARY OPERATING ACTIVITY	128,834,855	104,980,265
Raw materials	113,730	25,847
Costs of goods sold	101,322,248	77,882,338
Wages	2,432,487	2,182,622
Depreciations & provisions	126,204	158,163
Other operating costs	19,979,004	19,473,626
COSTS OF ORDINARY OPERATING ACTIVITY	123,837,192	100,308,345
ORDINARY OPERATING RESULT - PROFIT	4,997,663	4,671,920
ORDINARY OPERATING RESULT - LOSS	0	0
FINANCIAL INCOMES	8,457,063	7,978,671
FINANCIAL COSTS	9,497,275	7,775,685
FINANCIAL RESULT - PROFIT	0	202,986
FINANCIAL RESULT - LOSS	1,040,212	0
CURRENT RESULT - PROFIT	3,957,451	4,874,906
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	137,291,918	112,958,936
TOTAL COSTS	133,334,467	108,084,030
PRETAX RESULT - PROFIT	3,957,451	4,874,906
PRETAX RESULT - LOSS	0	0
TAX ON PROFIT	508,922	856,939
NET RESULT - PROFIT	3,448,529	4,017,967
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

small considering the total no. of employees.

Position & trend

Large volume of activity developed, with positive results. Both, turnover and gross profit have a slightly fluctuant tendency, but always remain in the same good levels. Even turnover got decreased with 22% (in EURO), in 2012 compared to 2011, gross profit registered a growth with 20% (in EURO) mainly due to the financials.

Business trend should be followed.

Credit facilities are suitable.

	2007	2008	2009	2010	2011	2012
TURNOVER
RON	58,972,459	92,549,279	74,567,564	105,620,288	118,279,545	94,674,551
EURO	16,334,956	23,223,246	17,635,770	24,649,993	27,381,426	21,377,504
GROSS PROFIT
RON	2,935,900	6,356,841	5,839,086	4,297,714	3,957,451	4,874,906
EURO	813,224	1,595,112	1,380,986	1,003,014	916,140	1,100,753
NET PROFIT
RON	2,515,949	5,371,356	4,878,482	3,570,967	3,448,529	4,017,967
EURO	696,900	1,347,826	1,153,796	833,403	798,326	907,257

31.12.2012

CREDITS & LOANS (ACTIVE BALANCE)

6,673,931

Bank credits & other financial loans, on short term (within 1year)

6,673,931

BALANCE CLAIMS-DEBTS

positive

Total claims

33,933,459

clients & trade debtors

28,310,198

Total debts

32,645,068

- Short term

32,645,068

suppliers

23,262,012

trade creditors

1,122,389

bank credits & other financial loans

6,673,931

other debts, including fiscal debts & dues to the Social Insurance

1,585,736

PAYMENTS BEHAVIOR

Correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents between 21.02.2013-21.02.2014

FINANCIAL STRENGTH

3,269 tsd EURO

RISK CATEGORY

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.

2007

2008

2009

2010

2011

2012

Constant good

Liquidity analysis

- current ratio

1.20

1.43

1.28

1.31

1.21

1.24

- quick ratio

0.92

1.21

1.13

1.14

1.19

1.18

Solvability analysis

Over normal limits

- the borrowing ratio (total debts/net worth)

3.29

1.78

2.36

2.34

3.22

2.95

Profitability analysis (%)

Generally satisfactory

- return on capital

53.13

69.84

58.25

37.56

37.73

36.35

- return on assets

12.25

25.00

194.17

11.17

8.94

9.12

- gross profit margin

4.97

6.86

7.83

4.06

3.34

5.15

Activity analysis

Debtors’ control got deteriorated

- debtor’s days

83

47

98

72

88

131

- creditor’s days

69

49

79

54

62

90

Stocks turnover, times/year

13

31

25

29

152

49

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.28
UK Pound	1	Rs.103.84
Euro	1	Rs.85.70

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%)

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.