MIRA INFORM REPORT

Report Date :

09.07.2014

IDENTIFICATION DETAILS

Name :	ADINA SRL
Registered Office :	Galati County / 800114 Galati – Piata Victoriei No. 12
Country :	Romania
Financials (as on) :	31.12.2013
Date of Incorporation :	September 1991
Legal Form :	Limited liability company
Line of Business :	Manufacture of clothing articles (excluding underwear),
No. of Employees	Not Available

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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Romania	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 name and address

NAME OF THE COMPANY	ADINA SRL
Address	Galati county / 800114 Galati – Piata Victoriei No. 12 N.B.: the address supplied by you belongs to an work-shop (see below)
Phone no.	0040-336-802043 (ext. 120)				Fax no.				0040-236-464183
Web-site	www.echipamentemilitare.ro www.adina.com.ro				E-mail address				vanzari@adina.ro
HISTORIC/OFFICIAL DATA
Date of foundation	September, 1991
Present legal form	Limited liability company, entire Romanian capital
Registered with the Trade Registry	J17/1360/1991
VAT no.	1649058
Registered capital	362,000 RON
Shareholders	Unique owner, individual
	Mrs. Blidaru Rodica Camelia – Romanian citizen, born on 6.08.1964
	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	2009		2010			2011				2012	2013
total	n/a		29			25				38	29
BUSINESS ACTIVITY - Manufacture of other clothing articles (excluding underwear), according to the National Trade Registry updated files (NACE: 1413) According to www.adina.com.ro The company is one of the main suppliers of military equipment for the governmental institutions in Romania: The Army, the Gendarmerie, the Firemen and the Police. Its goal is to become a provider of complete solutions in order to accomplish the most demanding requirements of its customers. To this end, it permanently develops new international partnerships in the field of design, research and logistics. Work-shops 1. Galati county / Galati –Falezei Blvd. No. 1 2. Bucharest, sector 6 – Timisoara Blvd. No. 45; Phone no.; 0040-31-4252117; e-mail: bucuresti@adina.com.ro For more details, please visit www.adina.com.ro
OTHER PARTICIPATION
1. Company’s participation	not applicable
2. Shareholders other participation	not applicable
REAL ESTATE (RON)
	2010	2011		2012				2013
- lands	892,753	892,753		892,753				892,753
- buildings	0	0		0				0
- equipment	370,200	280,076		N/A				142,089
BANKS	Romanain bank for Development – Groupe Societe Generale (BRD-GSG)
MANAGEMENT as officially registered with the National Trade Registry other executives	Administrator, General Manager Mrs. Blidaru Rodica Camelia – appointed on 19.09.1991 for a period of 99 years Economic Director Mrs. Eliza Mihaela Necula; phone no.: 0040-742-030034
CURRENCY Exchange rate of EURO	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 1 EURO = 4.4847 RON on 31.12.2013

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2010	31.12.2011	31.12.2012	31.12.2013
INTANGIBLES - TOTAL	1,617	2,617	N/A	5,891
TANGIBLES - TOTAL	1,262,953	1,172,829	N/A	1,034,842
FINANCIALS - TOTAL	400	400	N/A	0
FIXED ASSETS - TOTAL	1,264,970	1,175,846	1,078,511	1,040,733
STOCKS - TOTAL	1,524,176	2,122,701	2,642,888	2,408,495
CLAIMS - TOTAL	487,524	1,860,724	1,991,606	293,822
CURRENT ASSETS	2,156,559	4,702,064	4,779,198	2,818,206
PREPAID EXPENSES	1,375	1,136	1,455	77,024
DEBTS WITHIN 1 YEAR	1,755,853	4,201,945	N/A	2,814,806
DEBTS OVER 1 YEAR	315,643	270,551	N/A	199,972
TOTAL DEBTS	2,071,496	6,543,992	4,516,616	3,014,778
PROVISIONS	0	0	0	0
ADVANCED INCOMES	0	0	7,000	0
REGISTERED CAPITAL	362,000	362,000	362,000	362,000
RESERVES	923,560	923,560	N/A	474,560
NET RESULT - PROFIT	65,848	120,990	49,988	84,625
NET RESULT - LOSS	0	0	0	0
NET WORTH	1,351,408	1,406,550	1,335,548	921,185
PROFIT & LOSS ACCOUNT	31.12.2010	31.12.2011	31.12.2012	31.12.2013
Turnover	7,129,544	9,366,764	10,173,903	7,889,361
Own production & services	4,932,341	6,988,167	N/A	4,581,950
Sales	2,197,203	2,378,597	N/A	3,132,443
INCOMES FROM ORDINARY OPERATING ACTIVITY	7,300,208	9,767,361	N/A	8,410,276
Raw materials	2,847,293	3,243,533	N/A	2,121,455
Costs of goods sold	1,783,697	1,909,393	N/A	2,030,386
Wages	499,041	571,395	N/A	451,017
Depreciations & provisions	139,620	150,406	N/A	91,818
Other operating costs	1,488,827	3,278,733	N/A	3,156,314
COSTS OF ORDINARY OPERATING ACTIVITY	6,960,833	9,385,332	N/A	8,010,460
ORDINARY OPERATING RESULT - PROFIT	339,375	382,029	N/A	399,816
ORDINARY OPERATING RESULT - LOSS	0	0	N/A	0
FINANCIAL INCOMES	6,446	29,467	N/A	12,627
FINANCIAL COSTS	255,645	267,479	N/A	290,771
FINANCIAL RESULT - PROFIT	0	0	N/A	0
FINANCIAL RESULT - LOSS	249,199	238,012	N/A	278,144
CURRENT RESULT - PROFIT	90,176	144,017	N/A	121,672
CURRENT RESULT - LOSS	0	0	N/A	0
Extraordinary incomes	0	0	N/A	0
Extraordinary costs	0	0	N/A	0
EXTRAORDINARY RESULT - PROFIT	0	0	N/A	0
EXTRAORDINARY RESULT - LOSS	0	0	N/A	0
TOTAL INCOMES	7,306,654	9,796,828	10,911,054	8,422,903
TOTAL COSTS	7,216,478	9,652,811	10,843,472	8,301,231
PRETAX RESULT - PROFIT	90,176	144,017	67,582	121,672
PRETAX RESULT - LOSS	0	0	0	0
TAX ON PROFIT	24,328	23,027	N/A	37,047
NET RESULT - PROFIT	65,848	120,990	49,988	84,625
NET RESULT - LOSS	0	0	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

Considerable business volume, with a rather satisfactory financial standing.

A certain decrease of the equity is to be mentioned for 2013 compared to the previous year. Also, the increase of the stocks’ level led to the deterioration of the liquidity.

The profitability stands positive, but at a low level.

The payments behavior is facing some problems, but the delays are only over 30 days.

Overall, we appreciate the business relationships are feasible and the credit facilities are suitable.

The business trend should be followed.

31.12.2009

31.12.2010

31.12.2011

31.12.2012

31.12.2013

Turnover

RON

5,043,538

7,129,544

9,366,764

10,173,903

7,889,361

EURO

1,192,833

1,663,915

2,168,383

2,297,266

1,759,173

Gross profit

RON

141,653

90,176

144,017

67,582

121,672

EURO

33,502

21,046

33,340

15,260

27,130

Net profit

RON

118,287

65,848

120,990

49,988

84,625

EURO

27,976

15,368

28,009

11,287

18,870

31.12.2013

CREDITS & LOANS (ACTIVE BALANCE)

1,260,358

Bank credits, on short term (within 1year)

1,060,386

Bank credits, on medium term (over 1 year)

180,467

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

19,505

BALANCE CLAIMS-DEBTS

negative

Total claims

293,822

clients & trade debtors

178,741

Total debts

3,014,778

- Short term

2,814,806

suppliers & trade creditors

1,676,745

bank credits

1,060,386

to the Social Insurance

11,780

to the State Budget

52,487

other debts

487

- Medium term

199,972

bank credits

180,467

other financial loans & afferent interests

19,505

PAYMENTS BEHAVIOR

with delays

Total overdue of 20.63% of turnover (57.83% of total short term debt)

1,627,817

To suppliers, 97,08% over 30 days delayed

1,627,817

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded in the period 4.07.2013 – 4.07.2014

FINANCIAL STRENGTH

206,000 EURO

RISK CATEGORY

Above normal

BUSINESS RELATIONS

Permissible

2009

2010

2011

2012

2013

High level of stocks, lately!

Liquidity analysis

- current ratio

1.73

1.23

1.12

1.06*

1.00

- quick ratio

1.14

0.36

0.61

0.47*

0.15

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

Solvability analysis

Not quite in a good condition – over limited indebtedness rate

- the borrowing ratio (total debts/net worth)

0.88

1.53

3.18

3.38

3.27

Profitability analysis (%)

Low

- return on capital

6.95

4.87

8.60

3.74

9.19

- return on assets

3.70

1.92

2.06

0.85

2.15

- gross profit margin

2.81

1.26

1.54

0.66

1.54

Activity analysis

Settlements within rather normal limits

- debtor’s days

92

25

73

71

14

- creditor’s days

n/a

n/a

n/a

n/a

78

Stocks turnover, times/year

8

5

4

4

3

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.80
UK Pound	1	Rs.102.42
Euro	1	Rs.81.32

INFORMATION DETAILS

Analysis Done by :	DIV
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.