MIRA INFORM REPORT

Report Date :

02.05.2014

IDENTIFICATION DETAILS

Name :	OAO ROSOBORONEKSPORT

Registered Office :	ul Stromynka d 27, 107076 g Moskva

Country :	Russia

Financials (as on) :	31.12.2013

Date of Incorporation :	30.01.2001

Com. Reg. No.:	1117746521452

Legal Form :	Public Limited Company

Line of Business :	· importer and exporter of military and defense equipment · Wholesaler of vehicles and equipment’s · Agents involved in the sale of fuels · Agents involved in the sale of machinery

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 :	Slow But Correct

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 & address

OAO "Rosoboroneksport"
ul Stromynka d 27,
107076 g Moskva
Tel: 74959646183
Telefax: 9648311

Company summary

Company development

Constant company development.

Business course	Satisfactory order situation.
Terms of payment	Mostly within agreed terms, in individual cases dalays of payments / payment reminders.

Business connection

Business connection appears permissable.

Established on

30/01/2001 - Public limited company (OAO)

Registered on

01/07/2011, Mezhrayonnaya inspektsiya Federalnoy nalogovoy sluzhby № 46 po g. Moskve,

RegNr.: 1117746521452
Tax number: 7718852163
Statistical number: 56467052

Registered capital		RUB	3 363 893 000,-
Stockholders	Gosudarstvennaya korporatsiya "Rostekhnologii" BULV GOGOLEVSKIY D 21, KORP 1, 119991 G MOSKVA Beginning of validity: 04.07.2011	%	100

Board of directors	Aleksandr Vasilevich Fomin Member of the board of directors
	Aleksey Vladislavovich Aleshin Member of the board of directors

	Anatoliy Petrovich Isaykin Member of the board of directors
	Anatoliy Vasilevich Torkunov Member of the board of directors

	Andrey Valerevich Kondratev Member of the board of directors
	Andrey Vladimirovich YAtskin Member of the board of directors

	Igor Anatolevich Nagornyy Member of the board of directors
	Igor Nikolaevich Zavyalov Member of the board of directors

	Sergey Viktorovich CHemezov Managing committee chairman
Sole Executive Body	Anatoliy Petrovich Isaykin Managing director

General data	Main activity: Wholesaler of vehicles and equipment’s
		Full name: OAO "Rosoboroneksport"

	Name in foreign language: Joint Stock Company "Rosoboronexport"
	Short name: OAO "Rosoboroneksport"

	General contacts: Tel: 74959646183 Telefax: 9648311
	Residence address: ul Stromynka d 27, 107076 g Moskva

Other activities
	:

	Agents involved in the sale of fuels	(51.12.36)
	Agents involved in the sale of machinery	(51.14.2)

	Agents involved in the sale of machinery	(51.14.3)
	Wholesale of chemical products	(51.55.33)

	Wholesale of other machineries	(51.65.6)
	Other wholesale trade	(51.70)

		Database activities				(72.40)
Annual turnover	31/12/2006		Enterprise turnover	RUB	7 481 522 000,-

	31/12/2007	Enterprise turnover	RUB	7 931 862 000,-
	31/12/2008	Enterprise turnover	RUB	8 090 108 000,-

	31/12/2009	Enterprise turnover	RUB	10 177 926 000,-
	31/12/2010	Enterprise turnover	RUB	12 945 549 000,-

	31/12/2011	Enterprise turnover	RUB	5 490 536 000,-
	31/12/2012	Enterprise turnover	RUB	17 279 852 000,-

	31/12/2013		Enterprise turnover	RUB	15 615 522 000,-
Events, negative data		30.08.2013 - Legal debt collection procedure Remark: A40-121703/2013: 3126897,01 RUB

Remarks

The main activity of OAO "Rosoboroneksport" is the only state intermediary in Russia in import and export of military and defense equipment. The subject is a member of Corporation Rostekh.

OAO "Rosoboroneksport" has many representative offices in the regions of Russia.

The subject company has following licenses:

LO-77-01-005861 – valid until: temporally unlimited;
77-01-002792– valid until: temporally unlimited;
FS-99-01-006759– valid until: temporally unlimited;
LO-77-01-004031– valid until: temporally unlimited;
LO-77-01-004032– valid until: temporally unlimited.

The register of shareholders of company is held by a private non-state registrar - ZAO “Status” (Reg. number: 1027700003924). Due to this fact information about shareholders of company is closed and is not updated in the state register.
List of shareholders of OAO "Rosoboroneksport" provided in this report was formed according to the last available list of affiliated persons as on 31/03/2014.
During the research the affiliation of OAO "Rosoboroneksport" with other legal entities was revealed through the managing director, Anatoliy Petrovich Isaykin:
ОАО "Korporatsiya "Irkut" – INN: 3807002509; Moscow. Anatoliy Petrovich Isaykin is the member of board of directors of the company.
ОАО "Contsern "NPO "Avrora" - INN: 7802463197; Saint-Petersburg. Anatoliy Petrovich Isaykin is the member of board of directors of the company.
ОАО “Korporatsiya Takticheskoe Raketnoe vooruzhenie”- INN: 5099000013; Moscow region. Anatoliy Petrovich Isaykin is the member of board of directors of the company.

According to the available sources the subject company had several state contracts for the total sum of:

In 2014: 146 481 RUB;
In 2013: 158 117 858 RUB.

OAO "Rosoboroneksport" participated in court cases as claimant and collected:
In 2012: 7335420,06 USD and 484307011,39 RUB.

No negative information was revealed about the subject in open sources.

Financial data

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).

Balance	A 31.12.2011	B 31.12.2012	C 31.12.2013
1. ASSETS
I. FIXED ASSETS
Intangible assets	43 761	33 433	35 544
The results of research and development	711	559	426
Intangible research assets	0	0	0
Tangible research assets	0	0	0
Fixed assets	1 903 956	2 944 563	2 982 394
Profitable investments in tangible assets	0	0	0
Financial investments	8 028 448	7 923 820	6 377 926
Deferred tax assets	8 195	1 911	1 768
Other non-current assets	463 765	2 780 645	0
TOTAL IN SECTION I.	10 448 836	13 684 931	14 101 485
II. CURRENT ASSETS
Inventories	120 611	113 293	278 479
VAT on acquired assets	2 493	4 093	1 246
Accounts receivable	301 309 431	264 329 299	307 878 227
Financial investments (excluding the monetary equivalent)	3 536 478	3 864 823	1 800 778
Cash and monetary equivalents	17 242 241	63 472 386	64 311 586
Other current assets	99 185	29 215	178 407
TOTAL IN SECTION II.	322 310 439	331 813 109	374 448 723
BALANCE	332 759 275	345 498 040	388 550 208
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	3 363 893	3 363 893	3 363 893
Treasury stock	0	0	0
Revaluation of fixed assets	72 873	119 803	169 583
Additional capital (without revaluation)	70	-79	83
Reserve capital	0	38 634	168 195
Retained earnings (uncovered loss)	12 095 547	11 594 316	17 161 629
TOTAL IN SECTION III.	15 532 383	15 116 567	20 863 383
IV. LONG-TERM LIABILITIES
Borrowed funds	3 113 000	0	0
Deferred tax liabilities	13 127	16 190	19 997
Provisions	0	0	0
Other liabilities	141 466 679	136 787 551	198 625 188
TOTAL IN SECTION IV.	144 592 806	136 803 741	198 645 185
V. SHORT-TERM LIABILITIES
Borrowed funds	1 717 196	4 773 284	17 143 935
Payables	170 810 395	187 652 135	150 744 288
Deferred income	106	1 033 642	1 033 618
Provisions	106 389	118 671	119 799
Sonstige Verbindlichkeiten	0	0	0
TOTAL IN SECTION V.	172 634 086	193 577 732	169 041 640
BALANCE	332 759 275	345 498 040	388 550 208

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 account	A 31.12.2011	B 31.12.2012	C 31.12.2013
Turnover	5 490 536	17 279 852	15 615 522
Cost of sales	22 616	756 274	234 711
Gross profit (loss)	5 467 920	16 523 578	15 380 811
Selling expenses	507	2 286	4 446
Administrative expenses	3 100 014	5 982 051	6 291 244
Sales profit (loss)	2 367 399	10 539 241	9 085 121
Earnings from other entities	2 777	17 633	14 522
Interest receivable	253 066	863 783	1 098 109
Interest payable	266 749	443 386	255 325
Other operating income	3 946 557	3 735 189	4 930 178
Other operating expenses	4 908 792	6 445 550	4 773 384
Profit (loss) before tax	1 394 258	8 266 910	10 099 221
Current profit tax	527 660	2 398 185	2 310 657
Permanent tax liabilities (assets)	345 990	758 562	299 188
Change in deferred tax liabilities	4 167	3 063	-3 807
Change in deferred tax assets	-92 525	-6 284	-143
Different	6	5 136	-9 950
Net profit (loss)	769 900	5 854 242	7 774 664
Results of fixed assets revaluation, non-includedin net profit/loss for period	72 873	46 930	0
Result of other transactions, non included in net profit/loss for period	70	-113	0
Total financial result for period	842 843	5 901 059	7 824 606

Ratios		2011	2012	2013
	Quick ratio	1,87	1,72	2,23

	Current ratio	0,12	0,35	0,4
	Average Collection Period	10015	5974	6687

	Payables turnover Period	1378356	86502	263121
	Debt ratio	0,95	0,96	0,95

	Equity to total assets ratio	0,05	0,04	0,05
	Funding ratio	0,05	0,05	0,06

	Return on sales	14,02	33,88	49,79
	Return on Assets	0,42	2,27	2,38

Return on Equity

n/a

38,2

43,22

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.34
UK Pound	1	Rs.101.45
Euro	1	Rs.83.31

INFORMATION DETAILS

Analysis Done by :	SUB

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.

MIRA INFORM REPORT

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