MIRA INFORM REPORT

Report Date :

27.11.2014

IDENTIFICATION DETAILS

Name :	MARCHAND SRL
Registered Office :	Ilfov county / 077125 Magurele – Codrului Street No. 42-44, Camera 1
Country :	Romania
Financial Data :	31.12.2013
Date of Incorporation :	1992
Legal Form :	Limited Liability Company
Line of Business :	Wholesale of meat and meat products
No. of Employees :	119

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Romania	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	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

MARCHAND SRL

Address

Ilfov county / 077125 Magurele – Codrului Street No. 42-44, Camera 1

Phone no.

0040-21-4930048

Fax no.

0040-21-4930040

Web-site

www.marchand.ro

E-mail address

office@marchand.ro

HISTORIC/OFFICIAL DATA

Date of foundation

1992, in Bucharest. In January, 2009 the company moved its headquarters from Bucharest in Ilfov county and it was re-incorporated under a new registration number

Present legal form

limited liability company, entire Romanian capital

Registered with the Trade Registry

J23/2/2009 actual

J40/24763/1992 former

VAT no.

425257

Registered capital

4,313,260 RON

Shareholders

Unique owner, individual

Mrs. Predusel Irina – Romanian citizen, born on 21.04.1957

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

2008

2009

2010

2011

2012

2013

total

99

89

80

85

109

119

BUSINESS ACTIVITY

- wholesale of meat and meat products, according to the National Trade Registry updated files (NACE: 4632)

According to the company’s web-site

- processing and distribution of natural casings (sheep, hog and beef) to sausage factories and natural casings dealers across the world.

The complementary activities also include:

- processing and distribution of pork by-products and pork cuts

- provision of packaging solutions (films and bags) for meat industry

- import and distribution of other auxiliary raw materials for the meat industry, such as additives, spices and artificial casings

For more details, please visit www.marchand.ro

According to mass-media news, in May, 2013 MARCHAND SRL has taken in concession for 49 years a land of 20,247 sqm in Parcul Industrial Priboiu, Dambovita county.

In November, 2013 MARCHAND started the works for a new production facility in this location. Besides the natural casings production unit, the company is going to start a pharmaceuticals production unit, which will create, for the beginning, around 50-60 new jobs.

Also, MARCHAND SRL is thinking about the total re-location of the business in this industrial park.

OTHER PARTICIPATION

1. Company’s participation

not applicable

2. Shareholders other participation

Mrs. Predusel Irina

MARCHAND MOLDOVA SRL – J23/1224/2010, VAT 26822951

MARCHAND PPLASTICS SRL – J40/7863/2010, VAT 26823116

MARCHAND VEST SRL – J23/1226/2010, VAT 26822978

VITALIM INGREDIENTE SRL – J23/2749/2007, VAT 22604989

REAL ESTATE (RON)

- lands & buildings

2008

2009

2010

2011

2012

2013

13,688,904

12,892,571

13,828,888

13,398,055

N/A

13,453,200

BANKS

N/A

MANAGEMENT

as officially registered with the National Trade Registry

Administrator, General Manager

Mrs. Predusel Irina – appointed on 24.09.1992 for unlimited period

CURRENCY

Exchange rate of EURO

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

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	1,186	0	N/A	0
TANGIBLES - TOTAL	17,035,153	17,877,293	N/A	18,609,298
FINANCIALS - TOTAL	0	0	N/A	0
FIXED ASSETS - TOTAL	17,036,339	17,877,293	17,775,048	18,609,298
STOCKS - TOTAL	34,652,248	27,379,146	33,442,513	38,414,181
CLAIMS - TOTAL	20,517,546	25,737,268	22,806,211	26,719,571
CURRENT ASSETS	56,974,943	53,677,284	57,404,719	65,496,136
PREPAID EXPENSES	80,645	875,552	64,598	285,340
DEBTS WITHIN 1 YEAR	52,678,905	48,826,036	N/A	59,417,669
DEBTS OVER 1 YEAR	0	1,555,217	N/A	640,780
TOTAL DEBTS	52,678,905	50,381,253	52,475,368	60,058,449
PROVISIONS	0	0	0	77,765
ADVANCED INCOMES	0	0	0	0
REGISTERED CAPITAL	4,150,270	4,150,270	4,313,260	4,313,260
RESERVES from reassessment of the fixed assets	8,080,683	8,080,683	N/A	7,839,046
RESERVES	366,710	491,930	N/A	1,522,062
PROFITS CARRIED FORWARD	7,951,124	7,398,116	N/A	9,527,784
NET RESULT - PROFIT	922,035	2,053,097	1,182,486	1,120,738
NET WORTH	21,413,022	22,048,876	22,768,997	24,254,560
PROFIT & LOSS ACCOUNT	31.12.2010	31.12.2011	31.12.2012	31.12.2013
Turnover	62,310,185	80,391,685	70,286,643	71,614,989
Own production & services	45,293,960	61,819,650	N/A	45,345,213
Sales	17,911,079	19,903,721	N/A	26,366,037
Discounts granted	894,854	1,331,686	N/A	96,261
INCOMES FROM ORDINARY OPERATING ACTIVITY	62,728,149	86,204,699	N/A	73,016,142
Raw materials	34,966,037	61,683,267	N/A	37,403,698
Costs of goods sold	12,704,412	11,473,909	N/A	21,473,208
Wages	1,444,514	1,652,289	N/A	2,412,583
Depreciations & provisions	1,289,554	1,112,453	N/A	1,423,765
Other operating costs	4,122,473	3,775,201	N/A	5,495,049
COSTS OF ORDINARY OPERATING ACTIVITY	53,730,958	80,427,767	N/A	68,762,515
ORDINARY OPERATING RESULT - PROFIT	8,997,191	5,776,932	N/A	4,253,627
ORDINARY OPERATING RESULT - LOSS	0	0	N/A	0
FINANCIAL INCOMES	1,765,111	1,703,441	N/A	1,053,416
FINANCIAL COSTS	9,606,163	4,975,966	N/A	3,940,439
FINANCIAL RESULT - PROFIT	0	0	N/A	0
FINANCIAL RESULT - LOSS	7,841,052	3,272,525	N/A	2,887,023
CURRENT RESULT - PROFIT	1,156,139	2,504,407	N/A	1,366,604
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	64,493,260	87,908,140	73,937,173	74,069,558
TOTAL COSTS	63,337,121	85,403,733	72,543,785	72,702,954
PRETAX RESULT - PROFIT	1,156,139	2,504,407	1,393,388	1,366,604
PRETAX RESULT - LOSS	0	0	0	0
TAX ON PROFIT	234,104	451,310	N/A	245,866
NET RESULT - PROFIT	922,035	2,053,097	1,182,486	1,120,738
NET RESULT - LOSS	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

medium, considering the number of employees

Position & trend

Very large business volume, with a generally constant level of turnover and constant satisfactory financial standing.

The payments behavior is correct, without delays.

Business relationships are feasible and credit facilities are suitable.

Business trend: constant.

31.12.2008

31.12.2009

31.12.2010

31.12.2011

31.12.2012

31.12.2013

Turnover

RON

61,737,752

61,445,578

62,310,185

80,391,685

70,286,643

71,614,989

EURO

15,491,758

14,532,325

14,542,145

18,610,479

15,870,717

15,968,736

Gross profit

RON

3,310,268

1,577,116

1,156,139

2,504,407

1,393,388

1,366,604

EURO

830,640

372,999

269,823

579,764

314,627

304,726

Net profit

RON

2,903,928

1,267,777

922,035

2,053,097

1,182,486

1,120,738

EURO

728,678

299,838

215,187

475,287

267,005

249,903

31.12.2013

CREDITS & LOANS (ACTIVE BALANCE)

43,164,167

Bank credits & other financial loans, on short term (within 1year)

42,656,865

Bank credits & other financial loans, on medium term (over 1 year)

507,302

BALANCE CLAIMS-DEBTS

negative

Total claims

26,719,571

clients & trade debtors

7,298,094

claims with the affiliates

19,051,577

Total debts

60,058,449

- Short term

59,417,669

suppliers

12,4791,528

trade creditors

85,750

payable bills of exchange

1,766,759

to the affiliates

1,400,305

bank credits & other financial loans

42,656,865

other debts, including fiscal debts & dues to the Social Insurance

1,016,462

- Medium term

640,780

bank credits & other financial loans

507,302

other debts, including fiscal debts & dues to the Social Insurance

133,478

PAYMENTS BEHAVIOR

Correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded in the period 26.11.2013 – 26.11.2014

2008

2009

2010

2011

2012

2013

Constant modest

Liquidity analysis

- current ratio

1.05

1.07

1.08

1.10

1.09

1.10

- quick ratio

0.37

0.45

0.42

0.54

0.46

0.46

Solvability analysis

Constant acceptable

- the borrowing ratio (total debts/net worth)

2.91

2.45

2.46

2.28

2.30

2.48

Profitability analysis (%)

Fluctuating, generally modest

- return on capital

14.95

6.41

4.31

9.31

5.19

4.62

- return on assets

3.83

1.86

1.25

2.87

1.57

1.33

- gross profit margin

5.36

2.57

1.86

3.12

1.98

1.91

Activity analysis

Heavy settlements of debtors

- debtor’s days

81

120

120

117

118

136

- creditor’s days

91

52

56

31

n/a

64

Stocks turnover, times/year

2

2

2

3

2

2

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.87
UK Pound	1	Rs.97.23
Euro	1	Rs.77.21

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.