MIRA INFORM REPORT

Report Date :

16.07.2014

IDENTIFICATION DETAILS

Name :	OAO MELON FESHN GRUP

Registered Office :	UL 10-Ya Krasnoarmeyskaya D 22, 190103 G Sankt-Peterburg

Country :	Russia

Financials (as on) :	31.12.2013

Date of Incorporation :	27.12.2005

Com. Reg. No.:	1057813298553

Legal Form :	Public limited company

Line of Business :	· Wholesale and retail trade of clothes · Renting of other machinery and equipment

No. of Employees	Not Available

RATING & COMMENTS

MIRA’s Rating :

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)

Russia

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

RUSSIA ECONOMIC OVERVIEW

Russia has undergone significant changes since the collapse of the Soviet Union, moving from a globally-isolated, centrally-planned economy towards a more market-based and globally-integrated economy, but stalling as a partially reformed, statist economy with a high concentration of wealth in officials' hands. Economic reforms in the 1990s privatized most industry, with notable exceptions in the energy and defense-related sectors. The protection of property rights is still weak and the private sector remains subject to heavy state interference. Russia is one of the world's leading producers of oil and natural gas and is also a top exporter of metals such as steel and primary aluminum. Russia's manufacturing sector is generally uncompetitive on world markets and is geared toward domestic consumption. Russia's reliance on commodity exports makes it vulnerable to boom and bust cycles that follow the volatile swings in global prices. The economy, which had averaged 7% growth during 1998-2008 as oil prices rose rapidly, was one of the hardest hit by the 2008-09 global economic crisis as oil prices plummeted and the foreign credits that Russian banks and firms relied on dried up. Slowly declining oil prices over the past few years and difficulty attracting foreign direct investment have contributed to a noticeable slowdown in GDP growth rates. In late 2013, the Russian Economic Development Ministry reduced its growth forecast through 2030 to an average of only 2.5% per year, down from its previous forecast of 4.0 to 4.2%. In 2014, following Russia's military intervention in Ukraine, prospects for economic growth declined further, with expections that GDP growth could drop as low as zero

Source : CIA

Company name and address

OAO "MELON FESHN GRUP"

UL 10-ya KRASNOARMEYSKAYA D 22,
190103 G SANKT-PETERBURG

Tel: 78122404626
E-Mail: office@melonfashion.ru
Web: www.melonfashion.ru

Company summary

Established on

27/12/2005 - Public limited company (OAO)

Registered on

27/12/2005, MEZHRAYONNAYA INSPEKTSIYA FNS ROSSII N 15 PO SANKT-PETERBURGU,

RegNr.: 1057813298553
Tax number: 7839326623
Statistical number: 79723322

Registered capital		RUB			48 156 000,-
Stockholders	I.G.M.MANUFAKTRAST LIMITED VIRONOS 36 NIKOSIYA TAUER TSENTR 8 этаж, 1506 g Nikosiya, Cyprus		%	35,28

	Ist Kepital Eksplorer Investments AB 11193, 1364 g Stokgolm, Sweden	%	29,62
	MFG Intressenter AB 11193, 1364 g Stokgolm, Sweden	%	11,23

	Mikhail Mikhaylovich Urzhumtsev	%	6,37
	KHumarito Limited Temistokli Dervi,3 Dzhulia KHaus, 1066 g Nikosiya, Cyprus	%	6,34

	David Gustav Kellerman	%	4,17
	Galina Genrikhovna Sintsova	%	1,57

	OOO "TAKSI.STIL" UL 10 KRASNOARMEYSKAYA 22, 190103 G SANKT-PETERBURG		%	0,02
Board of directors		David Gustav Kellerman Member of the board of directors

	Galina Genrikhovna Sintsova Member of the board of directors
	Kestutis Sasnauskas Member of the board of directors

	KHerlin Klas Member of the board of directors
	Kristel Kinning Member of the board of directors

	Lennart Dalgren Member of the board of directors
	Matias Pedersen Member of the board of directors

Sole Executive Body		Polina Olegovna Bakshaeva Managing director
General data	Main activity: Retail sale of clothing		(52.42)

	Full name: Otkrytoe aktsionernoe obshchestvo "Melon Feshn Grup"
	Name in foreign language: Public Joint Stock Company "Melon Fashion Group"

	Short name: OAO "Melon Feshn Grup"

	Residence address: UL 10-ya KRASNOARMEYSKAYA D 22, 190103 G SANKT-PETERBURG Tel: 78122404620 78122404626 E-Mail: office@melonfashion.ru Web: www.melonfashion.ru
	The main activity of OAO “Melon Feshn Grup” is the wholesale and retail trade of clothes. The company sells clothes under brands befree, ZARINA, LOVE REPUBLIC. According to the information from open sources, OAO “Melon Feshn Grup” had 572 shops in Russia on the date 01.03.2014.

Other activities

	Manufacture of other outerwear	(18.22.3)
	Wholesale of clothing and footwear	(51.42)

	Retail sale via mail order houses	(52.61.2)
	Freight transport by road	(60.24.3)

	Letting of own property	(70.20.2)
	Renting of office machinery and equipment	(71.33)

	Renting of other machinery and equipment n.e.c.	(71.34.7)
	Other business activities not elsewhere classified	(74.84)

Annual turnover	31/12/2006	Enterprise turnover	RUB	1 196 064 000,-
	31/12/2007	Enterprise turnover	RUB	1 398 682 000,-

	31/12/2008	Enterprise turnover	RUB	2 132 458 000,-
	31/12/2009	Enterprise turnover	RUB	3 051 729 000,-

	31/12/2010	Enterprise turnover	RUB	4 622 430 000,-
	31/12/2011	Enterprise turnover	RUB	6 263 775 000,-

	31/12/2012	Enterprise turnover	RUB	8 207 745 000,-
	31/12/2013	Enterprise turnover	RUB	9 305 729 000,-

Events, negative data	06.02.2012 - Legal debt collection procedure Remark: A40-24941/2012
	21.03.2012 - Legal debt collection procedure Remark: A56-14745/2012

	04.09.2013 - Legal debt collection procedure Remark: A40-124346/2013
	04.02.2014 - Legal debt collection procedure Remark: A56-5256/2014

	04.02.2014 - Legal debt collection procedure Remark: A40-14063/2014: 296 176,48 RUB and 4 080,87 USD
	26.02.2014 - Legal debt collection procedure Remark: A56-10737/2014

Remarks

Since 27.12.2005 the register of shareholders of OAO “Melon Feshn Grup” is held by a private non-state registrar:
ZAO “Edinyi Registrator” – Reg. num.: 1027802488570.
The information about shareholders is closed. List of shareholders provided in the report was formed according to the information from last published “List of affiliated persons” of the company of 30.06.2014.
The general director of the company was changed 23.01.2014 from Urzhumcev Mikhail Mikhailovich to Bakshaeva Polina Olegovna.
During the research no affiliation of the subject with other entities was revealed through the general director, Bakshaeva Polina Olegovna.
The company participated in court cases as claimant and collected following amount of debt:
In 2013: 324 899 RUB.
According to the information, disclosed by the Federal Tax Service, OAO “Melon Feshn Grup” does not have tax arrears, company is not going to be excluded from the state register as non-active.
According to the nformation, disclosed by the Pension Fund of Russian Federation, OAO “Melon Feshn Grup” does not have delays in social payments.
According to the nformation, disclosed by the Federal Labor Service, OAO “Melon Feshn Grup” does not plan to attract foreign employees.
According to the research, OAO “Melon Feshn Grup” does not meet the most frequently encountered in practice characteristics of unreliable companies (so-called “shell” companies), developed by the Federal Tax Service of Russian Federation.
OAO “Melon Feshn Grup” is not in the list of default debtors, the Register of unfair suppliers, the blacklist of Russian companies.
The management of the company is not in the list of default debtors, the register of disqualified persons, the blacklist of Russian Private Persons.

Bank relations

A. The enclosed balance of 2011 is originated from official source, no data available about authentication. (31.12.2011 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).
B. The enclosed balance of 2012 is originated from official source, no data available about authentication. (31.12.2012 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).
C. The enclosed balance of 2013 is originated from official source, it is authenticated by the auditor . (31.12.2013 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).

Financial data

balance	A 31.12.2011	B 31.12.2012	C 31.12.2013
1. ASSETS
I. FIXED ASSETS
Intangible assets	5 877	5 076	6 469
The results of research and development	0	0	0
Intangible research assets	0	0	0
Tangible research assets	0	0	0
Fixed assets	314 415	284 433	318 176
Profitable investments in tangible assets	827	579	331
Financial investments	3 015	175 813	3 005
Deferred tax assets	29 078	11 323	25 225
Other non-current assets	144 159	179 201	161 289
TOTAL IN SECTION I.	497 371	656 425	514 496
II. CURRENT ASSETS
Inventories	924 324	1 014 646	1 034 972
VAT on acquired assets	176	1 753	3 165
Accounts receivable	340 691	426 937	676 877
Financial investments (excluding the monetary equivalent)	152 612	8 231	172 990
Cash and monetary equivalents	104 238	368 828	253 605
Other current assets	7 219	14 580	33 869
TOTAL IN SECTION II.	1 529 260	1 834 975	2 175 406
BALANCE	2 026 631	2 491 400	2 689 903
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	46 754	48 156	46 156
Treasury stock	0	0	0
Revaluation of fixed assets	0	0	0
Additional capital (without revaluation)	579 738	608 013	608 013
Reserve capital	2 338	2 338	2 408
Retained earnings (uncovered loss)	242 903	839 853	810 503
TOTAL IN SECTION III.	871 733	1 498 360	1 469 080
IV. LONG-TERM LIABILITIES
Borrowed funds	0	0	0
Deferred tax liabilities	20 170	20 933	23 656
Provisions	0	0	0
Other liabilities	0	0	0
TOTAL IN SECTION IV.	20 170	20 933	23 656
V. SHORT-TERM LIABILITIES
Borrowed funds	289 370	0	1 000
Payables	809 613	907 014	1 103 535
Deferred income	1 692	2 289	3 251
Provisions	28 682	56 550	86 202
Sonstige Verbindlichkeiten	5 371	6 254	3 179
TOTAL IN SECTION V.	1 134 728	972 107	1 197 167
BALANCE	2 026 631	2 491 400	2 689 903
A. The enclosed profit and loss account of 2011 is originated from official source, no data available about authentication. (31.12.2011 - 1000 RUB) B. The enclosed profit and loss account of 2012 is originated from official source, no data available about authentication. (31.12.2012 - 1000 RUB) C. The enclosed profit and loss account of 2013 is originated from official source, it is authenticated by the auditor . (31.12.2013 - 1000 RUB)

profit and loss

profit and loss account	A 31.12.2011	B 31.12.2012	C 31.12.2013
Turnover	6 263 775	8 207 745	9 305 729
Cost of sales	2 667 088	3 392 146	4 075 542
Gross profit (loss)	3 596 687	4 815 599	5 230 187
Selling expenses	3 513 105	3 877 503	4 445 391
Administrative expenses	137 796	150 570	170 544
Sales profit (loss)	-54 214	787 526	614 252
Earnings from other entities	0	0	0
Interest receivable	16 064	24 510	27 060
Interest payable	19 022	26 974	4 247
Other operating income	131 161	157 072	267 375
Other operating expenses	195 239	181 210	326 363
Profit (loss) before tax	-121 250	760 924	678 077
Current profit tax	0	141 577	137 480
Permanent tax liabilities (assets)	3 526	7 910	10 685
Change in deferred tax liabilities	4 339	763	-2 723
Change in deferred tax assets	25 063	-17 755	13 902
Different	389	3 879	-1 069
Net profit (loss)	-100 915	596 950	450 707
Results of fixed assets revaluation, non-includedin net profit/loss for period	0	0	0
Result of other transactions, non included in net profit/loss for period	0	0	0
Total financial result for period	-100 915	596 950	450 707

Ratios


Ratios		2011	2012	2013

	Quick ratio	0,54	0,88	1
	Current ratio	1,08	1,54	1,35

	Average Collection Period	9,93	17,07	21,65
	Payables turnover Period	55,4	92,36	90,03

	Debt ratio	0,57	0,4	0,45
	Equity to total assets ratio	0,43	0,6	0,55

	Funding ratio	0,78	1,6	1,3
	Return on sales	-1,61	7,27	4,84

	Return on Assets	-5,84	30,64	24,36
	Return on Equity	n/a	50,37	30,38

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.22
UK Pound	1	Rs.102.79
Euro	1	Rs.81.95

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.