MIRA INFORM REPORT

Report Date :

03.09.2014

IDENTIFICATION DETAILS

Name :	METAL RAVNE D.O.O.

Registered Office :	Koroška cesta 14, 2390 Ravne na Koroškem

Country :	Slovenia

Financials (as on) :	31.12.2012

Date of Incorporation :	17.12.1992

Com. Reg. No.:	10727000

Legal Form :	Limited Liability Company

Line of Business :	Manufacture of basic iron and steel and of ferro-alloys

No of Employees :	963

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 – June 01, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Slovenia

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

SLOVENIA - ECONOMIC OVERVIEW

With excellent infrastructure, a well-educated work force, and a strategic location between the Balkans and Western Europe, Slovenia has one of the highest per capita GDPs in Central Europe. Slovenia became the first 2004 European Union entrant to adopt the euro (on 1 January 2007) and has experienced one of the most stable political transitions in Central and Southeastern Europe. In March 2004, Slovenia became the first transition country to graduate from borrower status to donor partner at the World Bank. In 2007, Slovenia was invited to begin the process for joining the OECD; it became a member in 2012. However, long-delayed privatizations, particularly within Slovenia’s largely state-owned and increasingly indebted banking sector, have fueled investor concerns since 2012 that the country would need EU-IMF financial assistance. In 2013, the European Commission granted Slovenia permission to begin recapitalizing ailing lenders and transferring their nonperforming assets into a “bad bank” established to restore bank balance sheets. Yield-seeking bond investors’ strong demand for Slovenian debt helped the government in 2013 to continue to finance itself independently on international markets. The government has embarked on a program of state asset sales intended to bolster investor confidence in the economy, which in 2014 is poised to contract 1%, its third-year of recession.

Source : CIA

Company name & address

METAL RAVNE D.O.O.

Koroška cesta 14,

2390 Ravne na Koroškem

Phone: 02 870 70 00

Telefax: 02 870 70 06

E-Mail: info@metalravne.com

Web: www.metalravne.com

Company summary

Legal form	d.o.o. - Limited liability company (Ltd.)
Established on		17/12/1992 - d.o.o. - Limited liability company (Ltd.)
		last entry on 27.12.2011 on 02/07/2005 change of company name from SŽ METAL RAVNE d.o.o. into METAL RAVNE d.o.o. 01/16/2004 incorporation of company ŽELEZARNE RAVNE-VIP d.o.o.
Registered on		23/12/1992, Slovenj Gradec, Registration number: 10727000 Tax number: SI64537641 Company number: 5686482
Registered capital									EUR			31.714.238,00
Owner		SIJ, d.d., Ljubljana (Statistical number: 5046432) Gerbičeva ulica 98, 1000 Ljubljana							EUR			31.714.238,00
Manager		Andrej Gradišnik Pod gonjami 131, 2391 Prevalje director
General data		company activity is production of stainless steel, black metallurgy production of steel for: automotive and aircraft industries, construction metalworking industry, agri-food industry, chemical industry, medical and pharmaceutical industry, energy industry Headquarters and business premises are located on the address above
		Main activity: Manufacture of basic iron and steel and of ferro-alloys (NACE 2)												(24.10)
		Export: European Union USA
		Import: European Union China

		Residence address: Koroška cesta 14, 2390 Ravne na Koroškem Phone: 02 870 70 00 Telefax: 02 870 70 06 E-Mail: info@metalravne.com Web: www.metalravne.com
Other activities
Employees		2007		995 employees
		2008		1020 employees
		2009		928 employees
		2010		941 employees
		2011		940 employees
		2012		1022 employees
		2013		963 employees
Annual turnover		2007				Enterprise turnover			EUR			170.275.957,-
		2008				Enterprise turnover			EUR			185.082.459,-
		2009				Enterprise turnover			EUR			83.958.176,-
		2010				Enterprise turnover			EUR			140.444.951,-
		2011				Enterprise turnover			EUR			179.081.829,-
		2012				Enterprise turnover			EUR			165.651.532,-
Property		Company's property: Business premises SI-2390 Ravne na Koroškem, Koroška cesta 14 Company's property: Land per 31.12.2012 SI- Book value: 2.871.453,- EUR () Company's property: Buildings per 31.12.2012 SI- Book value: 21.732.461,- EUR ()
Remarks		Full name of the company: METAL RAVNE podjetje za proizvodnjo plemenitih jekel d.o.o. balance sheet per 31.12.2013 is not yet available Participation in capital: KOPO international New Jersey, USA (100% share) SERPA d.o.o. Slovenia (85.61% share) Ravne steel center d.o.o. Slovenia(22,7% share) (stand per 31.12.2012)
Interests		METAL RAVNE d.o.o. (Statistical number: 5686482):
		KLS LJUBNO d.d. (Statistical number: 5075335)							Head shareholders								2,29%
		RAVNE STEEL CENTER d.o.o. (Statistical number: 1906887)							Owner
		SERPA d.o.o. (Statistical number: 5754593)							Owner
		SIJ, d.d., Ljubljana (Statistical number: 5046432):
		ACRONI, d.o.o. (Statistical number: 5688418)							Owner
		ELEKTRODE JESENICE, d.o.o. (Statistical number: 1254430)							Owner
		NOŽI RAVNE d.o.o. (Statistical number: 5439264)							Owner
		ODPAD d.o.o. Pivka (Statistical number: 5577772)							Owner
		RAVNE STEEL CENTER d.o.o. (Statistical number: 1906887)							Owner
		Slovenske železarne - Energetika Štore d.o.o. (Statistical number: 1254855)							Owner
		Slovenske zelezarne Jeklolivarna d.o.o. (Statistical number: 5439132)							Owner
		SUZ, d.o.o. (Statistical number: 1199781)							Owner
		SŽ - ARMATURE MUTA Ravne d.o.o. (Statistical number: 5439256)							Owner
		SŽ PFJ d.o.o. (Statistical number: 5434513)							Owner
		SŽ-PFP d.o.o. (Statistical number: 5434521)							Owner
		TIO PNEUMATIKA d.o.o. (Statistical number: 5868459)							Owner
Bank relations		NOVA LJUBLJANSKA BANKA d.d., LJUBLJANA: Central address: SI Trg republike 2, 1520 Ljubljana Account number: 02470-0019185172 SKB BANKA d.d. LJUBLJANA: Central address: SI Ajdovščina 4, 1513 Ljubljana Account number: 03100-1002105063 NOVA KREDITNA BANKA MARIBOR d.d.: Central address: SI Ulica Vita Kraigherja 4, 2505 Maribor Account number: 04870-0000217271 BANKA KOPER d.d.: Central address: SI Pristaniška 14, 6502 Koper Account number: 10100-0034642769 RAIFFEISEN BANKA d.d.: Central address: SI Slovenska ulica 17, 2000 Maribor Account number: 24302-9003729513 PROBANKA d.d.: Central address: SI Trg Leona Štuklja 12, 2000 Maribor Account number: 25100-9700230145 HYPO ALPE-ADRIA-BANK d.d.: Central address: SI Dunajska cesta 117, 1000 Ljubljana Account number: 25100-9700230145 ABANKA VIPA d.d.: Central address: SI Slovenska cesta 58, 1517 Ljubljana Account number: SI56 051008013129233 BANKA SPARKASSE d.d.: Central address: SI Cesta v Kleče 15, 1000 Ljubljana Account number: SI56 3400 0101 4646 651 UNICREDIT BANKA SLOVENIJA d.d.: Central address: SI Šmartinska 140, 1000 Ljubljana Account number: SI56 290000055512569
Company development		Constant												(30)
Terms of payment		No complaints, but occasional delays												(31)
Business connection		Business connection appear premissable												(31)
Financial
A. The enclosed balance of 2012 is originated from official source, it is not authenticated by the auditor. (31.12.2012 - 1 EUR) B. The enclosed balance of 2011 is originated from official source, it is authenticated by the auditor . (31.12.2011 - 1 EUR) C. The enclosed balance of 2010 is originated from official source, it is authenticated by the auditor . (31.12.2010 - 1 EUR) D. The enclosed balance of 2009 is originated from official source, it is authenticated by the auditor . (31.12.2009 - 1 EUR)
BALANCE					A 31.12.2012		B 31.12.2011				C 31.12.2010				D 31.12.2009
ASSETS (AKTIVA)					200.015.562		199.449.728				181.171.179				156.511.271
LONG-TERM ASSETS					107.160.311		105.111.533				92.843.156				98.510.514
Intangible assets and long-term deferred costs and accrued revenues					1.776.609		1.142.968				1.136.457				1.510.929
Intangible assets					1.776.609		1.142.968				4.133				1.510.929
Long-term deferred costs and accrued revenues					0		0				1.132.324				0
Tangible fixed assets					100.368.675		97.872.574				86.110.800				90.803.248
Long-term financial investments and Real estate investments					4.178.335		5.338.878				3.400.007				3.310.078
Investment property					0		0				197.266				221.916
Long-term financial investments					4.178.335		5.338.878				3.202.741				3.088.162
Long-term operating receivables					0		155.054				0				176.934
Deferred receivables for taxes					836.692		602.059				2.195.892				2.709.325
SHORT-TERM ASSETS					92.189.539		94.087.981				88.307.358				56.502.369
Assets (group for estrange) for sell					0		0				0				0
Inventories					47.699.193		53.562.289				43.873.411				31.832.602
Short-term financial investments					4.666.143		1.031.415				0				2.220.364
Short-term operating receivables					36.976.528		39.252.587				36.595.173				21.836.089
Cash assets					2.847.675		241.690				7.838.774				613.314
Short-term deferred costs and accrued revenues					665.712		250.214				20.665				1.498.388
Off-balance sheet items					0		0				0				0
LIABILITIES					200.015.562		199.449.728				181.171.179				156.511.271
CAPITAL					83.391.077		79.540.429				70.419.673				71.652.317
Called-up capital					31.714.238		31.714.238				31.714.238				31.714.238
Basic (subscribed) capital					31.714.238		31.714.238				31.714.238				31.714.238
Non called-up capital (deductive item)					0		0				0				0
Capital reserves					30.478		30.478				30.478				30.478
Reserves from profit					3.140.946		3.140.946				3.259.813				3.140.946
Surplus from revaluation					85.404		123.678				0				137.969
Retained net					48.420.011		35.415.144				35.415.144				36.628.686
Net business result for the business year					0		9.115.945				0				0
PROVISIONS AND LONG-TERM ACCRUED COSTS AND DEFERRED REVENUES					3.858.980		3.898.728				4.028.322				4.194.439
FINANCIAL AND BUSINESS LIABILITIES					111.779.488		114.589.110				105.648.874				79.901.052
LONG-TERM LIABILITIES					48.073.323		41.357.221				43.750.346				39.331.454
Long-term financial liabilities					48.039.003		41.306.434				43.635.768				39.154.520
Long-term operating liabilities					34.320		50.787				114.578				176.934
Deferred liabilities for taxes					0		0				0				0
SHORT-TERM LIABILITIES					63.706.165		73.231.889				61.898.528				40.569.598
Liabilities, included in groups for estrange					0		0				0				0
Short-term financial liabilities					23.985.013		22.885.580				27.911.211				21.574.163
Short-term operating liabilities					39.721.152		50.346.309				33.987.317				18.995.435
SHORT-TERM ACCRUED COSTS AND DEFERRED REVENUES					986.017		1.421.461				1.074.310				763.463
Off-balance sheet items					0		0				0				0
A. The enclosed profit and loss account of 2012 is originated from official source, it is not authenticated by the auditor. (31.12.2012 - 1 EUR) B. The enclosed profit and loss account of 2011 is originated from official source, it is authenticated by the auditor . (31.12.2011 - 1 EUR) C. The enclosed profit and loss account of 2010 is originated from official source, it is authenticated by the auditor . (31.12.2010 - 1 EUR) D. The enclosed profit and loss account of 2009 is originated from official source, it is authenticated by the auditor . (31.12.2009 - 1 EUR)
PROFIT AND LOSS ACCOUNT					A 31.12.2012		B 31.12.2011				C 31.12.2010				D 31.12.2009
Net sales					162.626.766		167.926.024				129.535.624				93.918.497
Changes in the value of inventories of products and work-in-process					-4.152.190		8.825.647				7.726.443				11.307.418
Capitalised own products and own services					0		0				0				0
Other operating revenues (with subventions, grants,...)					2.760.093		2.050.448				2.948.402				1.179.897
GROSS OPERATING YIELD					161.234.669		178.802.119				140.210.469
Cost of goods, material and services					119.242.790		129.379.533				102.506.616				63.828.795
Purchase value of goods and materials sold and cost of material and cost of material used					0		0				0				0
Cost of services					0		0				0				0
Labour cost					25.202.203		26.048.272				22.473.935				19.549.131
Cost of wages					18.088.477		18.334.013				10.446.539				10.918.986
Cost of pension insurance					0		0				0				3.814.354
Cost of other social insurance					4.092.654		4.116.200				8.868.126				2.145.803
Other labour cost					3.021.072		3.598.059				3.139.270				2.669.988
Write-offs					8.628.179		8.184.944				9.159.159				6.726.172
Depreciation					8.628.179		8.184.944				8.088.572				6.726.172
Revaluation operating expenses for non-tangible assets and tangible fixed assets					0		0				0				0
Revaluation operating expenses for current assets					0		0				1.070.587				0
Other operating expenses					2.582.059		1.659.430				131.951				2.498.822
OPERATING REVENUES					165.386.859		169.976.472				132.484.026
OPERATING EXPENSES					155.655.231		165.272.179				134.271.661
OPERATING RESULT					9.731.628		4.704.293				-1.787.635
EBIT					5.579.438		13.529.940				5.938.808				-8.811.944
Financial income from investments in other enterprises															0
Financial income from loans															167.200
Financial income from operating receivables															0
Financial expenses from depreciation and write-offs of financial investments															0
Financial expenses from financial liabilities															1.718.160
Financial expenses from operating liabilities															0
Financial income					264.673		279.710				234.482				167.200
Financial expenses					2.228.096		2.658.464				1.892.501				1.718.160
Other revenues					0		0				0				0
Other expenses					0		0				0				647
Total revenues					161.499.342		179.081.829				140.444.951				83.958.176
Total costs					157.883.327		167.930.643				136.164.162				94.321.727
Total business result					3.616.015		11.151.186				4.280.789				-10.363.551
Tax on profit					-9.835		436.597				-4.811				0
Deferred taxs					-224.798		1.598.644				518.244				-2.026.356
Net business result for the accounting period					3.850.648		9.115.945				3.767.356				-8.337.195

Ratios								2009		2010			2011			2012
			Equity ratio					0,2		0,18			0,16			0,16
			Cleared equity ratio					0,2		0,18			0,16			0,16
			Current liquidity					1,39		1,43			1,28			1,45
			Quick liquidity					0,61		0,72			0,55			0,7
			Working capital					15932771		26408830			20856092			28483374
			Gearing					4,93		5,71			6,29			6,31
			Cleared gearing					1,92		2,26			2,03			2,28
			Profitability					-12,34		3,05			6,23			2,24
			Operating profitability					-9,93		2,68			5,09			2,38
			Stock days					138		114			109			108
			Debtor days					94,93		95,11			80			83,57
			Supplier days					82,58		88,33			103			89,77

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.61
UK Pound	1	Rs.100.49
Euro	1	Rs.79.56

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	TPT

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

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