MIRA INFORM REPORT

Report Date :

24.05.2014

IDENTIFICATION DETAILS

Name :	KWIZDA AGRO ROMANIA SRL
Registered Office :	031296 Bucharest, sector 3 – Calea Vitan No. 6-6A, “Phoenix Tower” Business Center, 9^th floor
Country :	Romania
Financials (as on) :	31.12.2012
Date of Incorporation :	June, 2007
Legal Form :	Limited Liability Company
Line of Business :	Wholesale trade with chemical products, according to the National Trade Registry updated files (NACE: 4675)
No. of Employees	60

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
Moderately Low Risk	B1
Moderate Risk	B2
Moderately 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

NAME OF THE COMPANY	KWIZDA AGRO ROMANIA SRL
Address	031296 Bucharest, sector 3 – Calea Vitan No. 6-6A, “Phoenix Tower” Business Center, 9^th floor
Phone no.	0040-372-089700		Fax no.				0040-372-089710
Web-site	www.kwizda-agro.ro		E-mail address				office@kwizda-agro.ro
HISTORIC/OFFICIAL DATA
Date of foundation	June, 2007
Present legal form	limited liability company, entire foreign (Austrian) capital
Registered with the Trade Registry	J40/12406/2007
VAT no.	22001678
Registered capital	40,000,000 RON
Shareholders	Legal persons
	1. KWIZDA AGRO GMBH – Austrian legal person
	Address: Austria / 1010 Wien – Dr. Karl Lueger Ring No. 6
	Participation					95%
	2. KWIZDA HOLDING GMBH – Austrian legal person
	Address: Austria / 1010 Wien – Dr. Karl Lueger Ring No. 6
	Participation					5%
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	2012
total	60	61		53		64		57	60
BUSINESS ACTIVITY - wholesale trade with chemical products, according to the National Trade Registry updated files (NACE: 4675) The subject is part of the KWIZDA Austrian group, specialized in crop protection and pest control. In Romania, KWIZDA AGRO ROMANIA SRL distributes at the national level, through its 4 divisions, the following products: - plant protection products (herbicides, fungicides, insecticides) - seeds & seeds treatment products - fertilizers - special products (DDD)
OTHER PARTICIPATION
1. Company’s participation	not applicable
2. Shareholders other participation	1. KWIZDA AGRO GMBH				KWIZDA ROMANIA SRL – J40/18944/2007, VAT 22543440
	2. KWIZDA HOLDING GMBH				KWIZDA ROMANIA SRL – J40/18944/2007, VAT 22543440
REAL ESTATE (RON)
- lands & buildings	2007	2008		2009		2010		2011	2012
	n/a	0		0		157,862		82,088	160,924
BANKS	Raiffeisen Bank SA
MANAGEMENT · as officially registered with the National Trade Registry · according to the company’s web-site	Administrator Mr. Andreas Stockl – Austrian citizen, born on 17.06.1954 Appointed on 5.10.2007; expiration date of mandate: 4.10.2015 Administrator Mrs. Marinela Liliana Dura – Romanian citizen, born on 22.07.1978 Appointed on 166.11.2009; expiration date of mandate: 16.11.2013 Administrator Mr. Salai Dionisie Razvan – Romanian citizen, born on 4.03.1975 Appointed on 29.06.2010; expiration date of mandate: 29.06.2014 Executives Mr. Ravan Salai General Manager Mrs. Marinela Dura Financial Manager Mr. Lucian Dejeu Sales manager (Romania North) Mr. Dragos Vaetis Sales Manager (Romania South) Mr. Silviu Dumitru Technical Manager Mr. Cristian Brat Logistic Manager
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	31.12.2010	31.12.2011	31.12.2012
INTANGIBLES - TOTAL	93,740	18,616	4,377
TANGIBLES - TOTAL	1,316,155	1,196,539	1,733,408
FINANCIALS - TOTAL	115,098	80,971	198,674
FIXED ASSETS - TOTAL	1,524,993	1,296,126	1,936,459
STOCKS - TOTAL	6,543,571	10,759,087	15,331,127
CLAIMS - TOTAL	22,590,843	26,664,735	52,008,244
CURRENT ASSETS	30,384,798	38,616,534	69,208,647
PREPAID EXPENSES	78,779	90,503	114,066
DEBTS WITHIN 1 YEAR	15,192,540	27,727,440	57,695,888
DEBTS OVER 1 YEAR	551,285	630,983	847,917
PROVISIONS	349,031	1,191,450	1,237,460
ADVANCED INCOMES	0	0	0
REGISTERED CAPITAL	40,000,000	40,000,000	40,000,000
RESERVES from reassessment of the fixed assets	0	0	0
RESERVES	10,944	10,944	10,944
LOSSES CARRIED FORWARD	8,783,498	24,115,230	29,557,654
NET RESULT - PROFIT	0	0	1,024,617
NET RESULT - LOSS	15,331,732	5,442,424	0
NET WORTH	15,895,714	10,453,290	11,477,907
PROFIT & LOSS ACCOUNT	31.12.2010	31.12.2011	31.12.2012
Turnover	25,452,924	66,127,288	114,585,099
Own production & services	3,604,623	419,321	145,505
Sales	24,285,612	70,631,360	119,898,072
Discounts granted	2,437,311	4,923,393	5,458,478
INCOMES FROM ORDINARY OPERATING ACTIVITY	22,512,255	65,176,950	114,923,079
Raw materials	658,150	794,174	846,860
Costs of goods sold	19,658,339	62,577,065	103,722,187
Wages	3,747,857	5,233,840	6,464,791
Depreciations & provisions	460,344	649,618	695,437
Other operating costs	5,092,782	5,168,098	7,543,290
COSTS OF ORDINARY OPERATING ACTIVITY	36,646,568	69,972,518	113,633,615
ORDINARY OPERATING RESULT - PROFIT	0	0	1,289,464
ORDINARY OPERATING RESULT - LOSS	14,134,313	4,795,568	0
FINANCIAL INCOMES	819,302	857,438	2,191,724
FINANCIAL COSTS	2,000,221	1,504,294	2,347,909
FINANCIAL RESULT - PROFIT	0	0	0
FINANCIAL RESULT - LOSS	1,180,919	646,856	156,185
CURRENT RESULT - PROFIT	0	0	1,133,279
CURRENT RESULT - LOSS	15,315,232	5,442,424	0
Extraordinary incomes	0	0	0
Extraordinary costs	0	0	108,662
EXTRAORDINARY RESULT - PROFIT	0	0	0
EXTRAORDINARY RESULT - LOSS	0	0	108,662
TOTAL INCOMES	23,331,557	66,034,388	117,114,803
TOTAL COSTS	38,646,789	71,476,812	116,090,186
PRETAX RESULT - PROFIT	0	0	1,024,617
PRETAX RESULT - LOSS	15,315,232	5,442,424	0
TAX ON PROFIT	16,500	0	0
NET RESULT - PROFIT	0	0	1,024,617
NET RESULT - LOSS	15,331,732	5,442,424	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

medium, considering the number of employees

Position & trend

Large volume of activity developed, with a resuming of the turnover growth since 2011, after the significant dropping in 2009 and 2010. A significant growth was registered in 2012 compared to 2011: +69%, in EURO.

Regarding the returns, they also started to recover in 2012, after 4 years with consecutive losses.

The B/S accounts reveal a generally good liquidity, but a weak solvability, with an over limited indebtedness rate.

The payments behaviour is correct, without delays. Still, special attention to the heavy settlements of debtors is recommended. It could cause further payments problems!

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

Business trend should be followed.

31.12.2007

31.12.2008

31.12.2009

31.12.2010

31.12.2011

31.12.2012

Turnover

RON

15,243,741

46,935,747

35,519,463

25,452,924

66,127,288

114,585,099

EURO

4,222,409

11,777,514

8,400,611

5,940,283

15,308,306

25,873,303

Gross profit

RON

218,878

- 2,280,641

- 6,253,403

- 15,315,232

-5,442,424

1,024,617

EURO

60,628

- 572,278

- 1,478,975

- 3,574,317

-1,259,908

231,358

Net profit

RON

178,940

- 2,683,424

- 6,268,070

- 15,331,732

-5,442,424

1,024,617

EURO

49,565

- 673,347

- 1,482,444

- 3,578,167

-1,259,908

231,358

31.12.2012

CREDITS & LOANS (ACTIVE BALANCE)

1,387,308

Other financial loans & afferent interests, on short term (within 1year)

539,391

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

847,917

BALANCE CLAIMS-DEBTS

Negative

Total claims

52,008,244

clients & trade debtors

68,466,194*

*the company declared with the annexes of the B/S ”clients & trade debtors” higher than the total claims declared with the B/S

Total debts

58,543,805

- Short term

57,695,888

suppliers & trade creditors

12,705,812

other financial loans & afferent interests

539,391

to the Social Insurance

218,420

to the State Budget

287,558

to the special funds

86,280

to the affiliates

43,698,618

- Medium term

847,917

other financial loans & afferent interests

847,917

PAYMENTS BEHAVIOR

Correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded in the period 23.05.2013 – 23.05.2014

2007

2008

2009

2010

2011

.2012

Generally good

Liquidity analysis

- current ratio

1.01

1.02

1.04

1.93

1.39

1.20

- quick ratio

0.71

0.54

0.71

1.51

1.00

0.93

Solvability analysis

Fluctuant; depreciated lately – the indebtedness rate became again over limited

- the borrowing ratio (total debts/net worth)

28.50

31.65

17.87

0.99

2.71

5.10

Profitability analysis (%)

Recovered from losses

- return on capital

22.92

loss

loss

loss

loss

8.93

- return on assets

0.78

loss

loss

loss

loss

1.44

- gross profit margin

1.44

loss

loss

loss

loss

0.89

Activity analysis

Debtors out of control – pay attention, it could cause future payments problems

- debtor’s days

341

183

285

324

147

166

- creditor’s days

n/a

45

14

104

85

40

Stocks turnover, times/year

2

2

3

4

6

7

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.58.48
UK Pound	1	Rs.98.67
Euro	1	Rs.79.80

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	PDT

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.