MIRA INFORM REPORT

Report Date :

28.05.2014

IDENTIFICATION DETAILS

Name :	OAO KHIMPROM

Registered Office :	ul Promyshlennaya D 101, 429950 Chuvashskaya Resp Chuvashiya, G Novocheboksarsk

Country :	Russia

Financials (as on) :	31.03.2014

Date of Incorporation :	30.06.1994

Com. Reg. No.:	1022100910226

Legal Form :	Public Limited Company

Line of Business :	· Engaged in production of chemical goods. Manufacturer of made-up textile articles Manufacturer of builders carpentry and joinery Manufacturer of wooden containers Manufacturer of workwear Manufacturer of corrugated paper and paperboard and of containers of paper and paperboard Subject product ranges includes: Inorganic Products Organic Products Organophosphorus Products Chelators Surfactants And Detergents Technical Organosilicon Monomers Silicone Fluids Organosilicon Varnishes Silicone Resin Organosilicon Enamel Rubber Chemicals

No of Employees :	3216 (31.03.2014)

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

OAO "KHimprom"

Company address

ul Promyshlennaya d 101,
429950 CHuvashskaya Resp CHuvashiya, g Novocheboksarsk

Tel:       78001004465
Tel:       78352735969
E-Mail: himprom@chtts.ru
Web:    www.himprom.com

Company summary

Company development

Constant company development.

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

Business connection

Business connection appears permissible.

Established on

30/06/1994 - Public limited company (OAO)

Registered on

13/11/2002, Inspektsiya Ministerstva Rossiyskoy Federatsii po nalogam i sboram po g.Novocheboksarsku CHuvashskoy Respubliki,

RegNr.: 1022100910226
Tax number: 2124009521
Statistical number: 05763441

Registered capital		RUB	918 525 608,-
Stockholders	Etingale Management Limited (Etingeyl Menedzhment Limited) Naousis KARAPATAKIS BUILDING, 1, 6018 Larnaca, Cyprus	%	50,69

	ELLINBAY CONSULTANTS LIMITED (ELLINBEY KONSALTANTS LIMITED) Naousis 1, KARAPATAKIS BUILDING, 6018 Larnaca, Cyprus		%	29,4943
Board of directors		Aleksandr Anatolevich Mikhaylyuk Member of the board of directors

	Anna YUrevna KHudanova Member of the board of directors
	Igor Vladimirovich CHeremikin Member of the board of directors

	Viktor Ivanovich Kurmanov Member of the board of directors
	YAroslav Evgenevich Kuznetsov Member of the board of directors

	YUliya Vyacheslavovna Smolina Member of the board of directors
Management	Elena Vladimirovna Kolesnikova Director of Management Company

Sole Executive Body		ZAO "GRUPPA ORGSINTEZ" bulv Stroiteley d 4, korp 1, etazh IX, 143402 g Krasnogorsk Tel:74956385557 Fax:7204998
General data	Main activity: Manufacture of other organic basic chemicals
Product details	Inorganic Products Organic Products Organophosphorus Products Chelators Surfactants And Detergents Technical Organosilicon Monomers Silicone Fluids Organosilicon Varnishes Silicone Resin Organosilicon Enamel Rubber Chemicals

	Full name: Otkrytoe aktsionernoe obshchestvo "KHimprom"
	Name in foreign language: Joint stock company "Khimprom"

	Short name: OAO "KHimprom"

Residence address:
ul Promyshlennaya d 101, 429950 CHuvashskaya Resp CHuvashiya, g Novocheboksarsk
Tel:
78001004465
78352735969
E-Mail:
himprom@chtts.ru
Web:
www.himprom.com

The main activity of OAO “Khimprom” is production of chemical goods.

The company has the following licenses:

№ LО-21-01-000829; Type of activity: medical activity; Valid until: temporary unlimited;
№ VP-00-010325; Type of activity: operation of hazardous production facilities; Valid until: temporary unlimited;

№ EKH-00-010306; Type of activity: operation of chemically hazardous production facilities; Valid until: temporary unlimited.

Other activities

	Manufacture of made-up textile articles	(17.40)
	Manufacture of workwear	(18.21)

	Manufacture of builders carpentry and joinery	(20.30.1)
	Manufacture of wooden containers	(20.40)

	Manufacture of corrugated paper and paperboard and of containers of paper and paperboard	(21.21)
	Printing n.e.c.	(22.22)

	Manufacture of industrial gases	(24.11)
	Manufacture of dyes and pigments	(24.12)

	Manufacture of other inorganic basic chemicals	(24.13)
	Manufacture of fertilizers and nitrogen compounds	(24.15)

	Manufacture of plastics in primary forms	(24.16)
	Manufacture of pesticides and other agro-chemical products	(24.20)

	Manufacture of paints	(24.30.1)
	Manufacture of pharmaceutical preparations	(24.42.2)

	Manufacture of soap and detergents	(24.51.2)
	Manufacture of soap and detergents	(24.51.3)

	Manufacture of soap and detergents	(24.51.4)
	Manufacture of other chemical products n.e.c.	(24.66.3)

	Manufacture of other chemical products n.e.c.	(24.66.4)
	Manufacture of plastic packing goods	(25.22)

	Manufacture of other plastic products	(25.24.2)
	Other first processing of iron and steel n.e.c.; production of non-ECSC20) ferro-alloys	(27.35.3)

	Manufacture of metal structures and parts of structures	(28.11)
	Manufacture of steel drums and similar containers	(28.71)

	Manufacture of railway and tramway locomotives and rolling stock	(35.20.9)
	Production and distribution of electricity	(40.10.2)

	Manufacture of gas; distribution of gaseous fuels through mains	(40.20.2)
	Collection	(41.00.2)

	Demolition and wrecking of buildings; earth moving	(45.11.1)
	General construction of buildings and civil engineering works	(45.21.4)

	Other construction work involving special trades	(45.25.6)
	Building completion	(45.4)

	Maintenance and repair of motor vehicles	(50.20.1)
	Repair of electrical household goods	(52.72.2)

	Hotels without restaurants	(55.12)
	Other provision of lodgings n.e.c.	(55.23.1)

	Restaurants	(55.30)
	Transport via railways	(60.10.2)

	Other land passenger transport	(60.23)
	Storage and warehousing	(63.12.4)

	Other supporting land transport activities	(63.21.22)
	Other supporting land transport activities	(63.21.24)

	Activities of other transport agencies	(63.4)
	Software consultancy and supply	(72.20)

	Architectural and engineering activities and related technical consultancy	(74.20.14)
	Architectural and engineering activities and related technical consultancy	(74.20.41)

	Architectural and engineering activities and related technical consultancy	(74.20.42)
	Technical testing and analysis	(74.30.1)

	Technical testing and analysis	(74.30.8)
	Investigation and security activities	(74.6)

	Industrial cleaning	(74.70.2)
	Technical and vocational secondary education	(80.22.22)

	Hospital activities	(85.11.2)
	Sewage and refuse disposal	(90.00.1)

	Sewage and refuse disposal	(90.00.2)
	Sewage and refuse disposal	(90.00.3)

	Washing and dry-cleaning of textile and fur products		(93.01)
Employees	2013	3293 employees

		31/03/2014	3216 employees
Annual turnover	31/12/2006			Enterprise turnover	RUB	4 064 473 000,-

	31/12/2007	Enterprise turnover	RUB	4 065 164 000,-
	31/12/2008	Enterprise turnover	RUB	4 651 938 000,-

	31/12/2009	Enterprise turnover	RUB	4 693 785 000,-
	31/12/2010	Enterprise turnover	RUB	5 392 939 000,-

	31/12/2011	Enterprise turnover	RUB	6 017 897 000,-
	31/12/2012	Enterprise turnover	RUB	5 758 778 000,-

	31/12/2013		Enterprise turnover	RUB	5 669 350 000,-
Events, negative data		08.04.2013 - Legal debt collection procedure Remark: A79-2639/2013

	29.04.2013 - Legal debt collection procedure Remark: A79-3331/2013
	29.05.2013 - Legal debt collection procedure Remark: A79-4056/2013

	21.06.2013 - Legal debt collection procedure Remark: A79-4803/2013
	15.07.2013 - Legal debt collection procedure Remark: A79-5589/2013

	19.08.2013 - Legal debt collection procedure Remark: A79-6745/2013
	03.10.2013 - Legal debt collection procedure Remark: A79-8090/2013

	22.10.2013 - Legal debt collection procedure Remark: A79-8662/2013
	23.01.2014 - Legal debt collection procedure Remark: A79-305/2014

	30.01.2014 - Legal debt collection procedure Remark: A79-498/2014
	17.02.2014 - Legal debt collection procedure Remark: A79-1019/2014

	25.02.2014 - Legal debt collection procedure Remark: A79-1240/2014
	03.04.2014 - Legal debt collection procedure Remark: A79-2416/2014

	22.04.2014 - Legal debt collection procedure Remark: A79-3150/2014
	21.05.2014 - Legal debt collection procedure Remark: A56-31293/2014

Remarks

Since 21.06.2010 the register of shareholders of OAO “Khimprom” is held by a private non-state registrar:
ZAO “Proffesionalnyi registratsionnyi tsentr” – Reg. num.: 1023802254574.
The information about shareholders is closed. List of shareholders provided in the report was formed according to the information from last published official “List of affiliated persons” of the company of 31.03.2014.
According to the research, the affiliation through the director of OAO “Khimprom”, Yelena Vladimirovna Kolesnikova, with other legal persons has not been revealed.
OAO “Khimprom” participated in court cases as claimant having collected the following amount of debt:
In 2013: 8 415 893 RUB;
In 2012: 7 886 178 RUB.
The subject had several state contracts on the following sum:
In 2013: 2 723 451 RUB;
In 2012: 1 624 191 RUB;
In 2011: 10 859 349 RUB.
No state inspections of the company were planned in 2012-2014.
According to the information, disclosed by the Federal Tax Service, OAO “Khimprom” does not have tax arrears, the company is not going to be excluded from the state register as non-active.
According to the information, disclosed by the Pension Fund of Russian Federation, OAO “Khimprom” does not have delays in social payments.
According to the information, disclosed by the Federal Labor Service, OAO “Khimprom” does not plan to attract foreign employees.
According to the research, OAO “Khimprom” 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 “Khimprom” 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

CHUVASHSKOE OSB N 8613:
Central address: RU CHEBOKSARY, MOSKOVSKIY PR.,3
Account number: 40702810675020102257

ZAO YUNIKREDIT BANK:
Central address: RU MOSKVA, PRECHISTENSKAYA NAB.,9
Account number: 40702810600010649868

CHUVASHSKOE OSB N 8613:
Central address: RU CHEBOKSARY, MOSKOVSKIY PR.,3
Account number: 40702840275020000693
Account number: 40702978775020100693

ZAO YUNIKREDIT BANK:
Central address: RU MOSKVA, PRECHISTENSKAYA NAB.,9
Account number: 40702840200010649869
Account number: 40702978300012894057

SVYAZ-BANK:
Central address: RU CHEBOKSARY, UL.YAROSLAVSKAYA,44
Account number: 40702810400270000862
Account number: 40702840000271000862

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	90	0	25 854
The results of research and development	0	0	0
Intangible research assets	0	0	0
Tangible research assets	0	0	0
Fixed assets	2 298 543	2 339 181	2 350 791
Profitable investments in tangible assets	0	0	0
Financial investments	240 414	442 221	354 546
Deferred tax assets	62 073	60 054	65 129
Other non-current assets	0	0	0
TOTAL IN SECTION I.	2 601 120	2 841 456	2 796 320
II. CURRENT ASSETS
Inventories	655 263	701 028	757 495
VAT on acquired assets	32 372	12 314	17 572
Accounts receivable	1 494 260	1 723 029	2 175 066
Financial investments (excluding the monetary equivalent)	242 661	23 605	402 982
Cash and monetary equivalents	15 084	22 298	10 917
Other current assets	4 442	6 915	0
TOTAL IN SECTION II.	2 444 082	2 489 189	3 372 837
BALANCE	5 045 202	5 330 645	6 169 157
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	918 526	918 526	918 526
Treasury stock	0	0	0
Revaluation of fixed assets	1 060 652	1 058 277	1 055 183
Additional capital (without revaluation)	58 011	58 011	58 011
Reserve capital	27 057	50 369	62 110
Retained earnings (uncovered loss)	242 809	284 166	282 260
TOTAL IN SECTION III.	2 307 055	2 369 349	2 376 090
IV. LONG-TERM LIABILITIES
Borrowed funds	335 959	695 841	416 334
Deferred tax liabilities	112 722	123 934	129 015
Provisions	0	0	0
Other liabilities	0	0	0
TOTAL IN SECTION IV.	448 681	819 775	545 349
V. SHORT-TERM LIABILITIES
Borrowed funds	1 627 424	1 496 185	2 668 268
Payables	654 486	638 634	567 962
Deferred income	0	0	2 942
Provisions	7 556	6 702	8 546
Sonstige Verbindlichkeiten	0	0	0
TOTAL IN SECTION V.	2 289 466	2 141 521	3 247 718
BALANCE	5 045 202	5 330 645	6 169 157

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	6 007 403	5 758 778	5 669 350
Cost of sales	4 381 698	4 224 467	4 271 633
Gross profit (loss)	1 625 705	1 534 311	1 397 717
Selling expenses	399 603	523 334	531 554
Administrative expenses	539 166	540 535	572 444
Sales profit (loss)	686 936	470 442	293 719
Earnings from other entities	0	0	0
Interest receivable	43 658	16 575	21 109
Interest payable	122 800	171 176	255 992
Other operating income	899 497	1 534 239	2 035 817
Other operating expenses	1 185 229	1 534 610	2 034 306
Profit (loss) before tax	322 062	315 470	60 347
Current profit tax	124 028	54 563	16 618
Permanent tax liabilities (assets)	16 855	4 700	4 555
Change in deferred tax liabilities	349	11 212	5 081
Change in deferred tax assets	43 109	-2 019	5 075
Different	7 671	12 869	3 416
Net profit (loss)	233 123	234 807	40 307
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	233 123	234 807	40 307
A. The enclosed balance of 2014 is originated from official source, it is authenticated by the auditor . (31.03.2014 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).

Balance	A 31.03.2014	B	C
1. ASSETS
I. FIXED ASSETS
Intangible assets	25 250
The results of research and development	0
Intangible research assets	0
Tangible research assets	0
Fixed assets	2 340 050
Profitable investments in tangible assets	0
Financial investments	356 452
Deferred tax assets	71 483
Other non-current assets	0
TOTAL IN SECTION I.	2 793 235
II. CURRENT ASSETS
Inventories	747 664
VAT on acquired assets	21 965
Accounts receivable	1 979 833
Financial investments (excluding the monetary equivalent)	0
Cash and monetary equivalents	55 548
Other current assets	0
TOTAL IN SECTION II.	3 289 805
BALANCE	6 083 040
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	918 526
Treasury stock	0
Revaluation of fixed assets	1 054 701
Additional capital (without revaluation)	58 011
Reserve capital	62 110
Retained earnings (uncovered loss)	285 975
TOTAL IN SECTION III.	2 379 323
IV. LONG-TERM LIABILITIES
Borrowed funds	632 144
Deferred tax liabilities	138 459
Provisions	0
Other liabilities	0
TOTAL IN SECTION IV.	770 603
V. SHORT-TERM LIABILITIES
Borrowed funds	2 257 831
Payables	663 202
Deferred income	2 577
Provisions	9 504
Sonstige Verbindlichkeiten	0
TOTAL IN SECTION V.	2 933 114
BALANCE	6 083 040
A. The enclosed profit and loss account of 2014 is originated from official source, it is authenticated by the auditor . (31.03.2014 - 1000 RUB)

profit and loss account	A 31.03.2014
Turnover	1 289 013
Cost of sales	980 181
Gross profit (loss)	308 832
Selling expenses	147 067
Administrative expenses	145 288
Sales profit (loss)	16 477
Earnings from other entities	0
Interest receivable	10 623
Interest payable	64 353
Other operating income	105 000
Other operating expenses	58 401
Profit (loss) before tax	9 346
Current profit tax	0
Permanent tax liabilities (assets)	1 220
Change in deferred tax liabilities	9 443
Change in deferred tax assets	6 354
Different	1 397
Net profit (loss)	4 860
Results of fixed assets revaluation, non-includedin net profit/loss for period	0
Result of other transactions, non included in net profit/loss for period	0
Total financial result for period	4 860

Ratios		2011	2012	2013
	Quick ratio	0,77	0,83	0,8

	Current ratio	0,4	0,35	0,36
	Average Collection Period	45,39	102	125

	Payables turnover Period	27,26	55,86	51,55
	Debt ratio	0,54	0,56	0,61

	Equity to total assets ratio	0,46	0,44	0,39
	Funding ratio	0,84	0,8	0,63

	Return on sales	3,88	4,08	0,71
	Return on Assets	7,95	8,82	4,79

Return on Equity

n/a

10,04

1,7

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.06
UK Pound	1	Rs.99.61
Euro	1	Rs.88.60

INFORMATION DETAILS

Analysis Done by :	SUM

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

Company name

Company summary

Financial data

Unit