MIRA INFORM REPORT

Report Date :

12.09.2014

IDENTIFICATION DETAILS

Name :	SIMI INTERNATIONAL SRL
Registered Office :	Calarasi County / 915400 Oltenita – Ion Heliade Radulescu Street Bl. N2, Ap. 2
Country :	Romania
Financials (as on) :	31.12.2013
Date of Incorporation :	March, 2003
Legal Form :	Limited Liability company
Line of Business :	Trade of agricultural raw materials, alive animals, textile raw materials and semi-finished products.
No of Employees :	2

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	25,000 EURO
Status :	Moderate
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 01, 2014

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

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

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	SIMI INTERNATIONAL SRL
Address	Calarasi county / 915400 Oltenita – Ion Heliade Radulescu Street Bl. N2, Ap. 2 (officially registered headquarters) N.B.: the address supplied by you – Str. Anbro Mache Nr. 204, sector 2, Bucharest – is wrongly spelled (the correct one is: Andronache Street no. 203, sector 2, Bucharest) and it is one of the company’s work-shops, see below, with the “Business Activity” chapter
Phone no. Cell Phone No.:	0040-21-2200706 0040-723-399994	Fax no.	0040-21-2206384
Web-site	-	E-mail address	simiintl_srl@yahoo.com

HISTORIC/OFFICIAL DATA

Date of foundation	March, 2003
Present legal form	Limited liability company
Registered with the Trade Registry	J51/112/2003
VAT no.	15269687
Registered capital	25,200 RON
Shareholders	Unique owner, individual
	Mrs. Khan Nicoleta – Romanian citizen, born on 18.04.1981
	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

EMPLOYEES	2009	2010	2011	2012	2013
total	-	1	1	2	2

BUSINESS ACTIVITY

- Agents involved in the trade of agricultural raw materials, alive animals, textile raw materials and semi-finished products, according to the National Trade Registry updated files (NACE: 4611)

According to the business directories

- import (from Pakistan) and distribution of sheep bowels

- import (from Pakistan) and distribution of textiles for children

- trade with other products

Work-shops, as officially registered with the National Trade Registry

1. Bucharest, sector 2 – Andronache Street No. 203

2. Bucharest, sector 2 – Moroieni Street, Complex Europa

OTHER PARTICIPATION

1. Company’s participation	not applicable
2. Shareholders other participation	not applicable
REAL ESTATE (RON)
	2010	2011	2012	2013
- lands	0	0	N/A	0
- buildings	280,500	269,880	N/A	265,900
- equipment	1,725	37,322	N/A	97,337
BANKS	N/A
MANAGEMENT · as officially registered with the National Trade Registry	Administrator Mrs. Khan Nicoleta; Date of appointment is N/A; Mandate duration: unlimited

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2010	31.12.2011	31.12.2012	31.12.2013
INTANGIBLES - TOTAL	0	0	N/A	0
TANGIBLES - TOTAL	282,225	307,202	N/A	363,237
FINANCIALS - TOTAL	0	0	N/A	0
FIXED ASSETS - TOTAL	282,225	307,202	290,361	363,237
STOCKS - TOTAL	835,256	1,102,265	1,469,023	1,517,582
CLAIMS - TOTAL	331,050	1,165,123	1,065,493	1,065,266
CURRENT ASSETS	1,289,041	2,277,145	2,612,386	2,601,683
PREPAID EXPENSES	0	0	0	0
DEBTS WITHIN 1 YEAR	1,035,574	1,967,342	N/A	2,013,067
DEBTS OVER 1 YEAR	218,610	224,982	N/A	237,388
TOTAL DEBTS	1,254,184	2,192,324	2,354,264	2,250,455
PROVISIONS	0	0	0	0
ADVANCED INCOMES	0	0	0	0
REGISTERED CAPITAL	25,200	25,200	25,200	25,200
RESERVES from reassessment of the fixed assets	52,352	52,352	N/A	69,612
RESERVES	15,382	15,382	N/A	15,381
PROFITS CARRIED FORWARD	174,529	224,148	N/A	455,551
NET RESULT - PROFIT	49,619	74,941	156,461	148,721
NET RESULT - LOSS	0	0	0	0
NET WORTH	317,082	392,023	548,483	714,465
PROFIT & LOSS ACCOUNT	31.12.2010	31.12.2011	31.12.2012	31.12.2013
Turnover	1,154,268	3,121,347	5,937,686	4,316,712
Own production & services	0	0	N/A	0
Sales	1,154,268	3,121,347	N/A	4,316,712
INCOMES FROM ORDINARY OPERATING ACTIVITY	1,154,268	3,141,771	N/A	4,316,712
Raw materials	329	1,208	N/A	7,392
Costs of goods sold	944,611	2,833,338	N/A	3,837,693
Wages	349	9,204	N/A	26,066
Depreciations & provisions	17,737	15,533	N/A	19,583
Other operating costs	72,263	111,563	N/A	199,238
COSTS OF ORDINARY OPERATING ACTIVITY	1,035,971	2,975,754	N/A	4,101,081
ORDINARY OPERATING RESULT - PROFIT	118,297	166,017	N/A	215,631
ORDINARY OPERATING RESULT - LOSS	0	0	N/A	0
FINANCIAL INCOMES	8,582	31,148	N/A	47,757
FINANCIAL COSTS	66,420	104,367	N/A	78,593
FINANCIAL RESULT - PROFIT	0	0	N/A	0
FINANCIAL RESULT - LOSS	57,838	73,219	N/A	30,836
CURRENT RESULT - PROFIT	60,459	92,798	N/A	184,795
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	1,162,850	3,172,919	5,995,408	4,364,469
TOTAL COSTS	1,102,391	3,080,121	5,807,620	4,179,674
PRETAX RESULT - PROFIT	60,459	92,798	187,788	184,795
PRETAX RESULT - LOSS	0	0	0	0
TAX ON PROFIT	10,840	17,857	N/A	36,074
NET RESULT - PROFIT	49,619	74,941	156,461	148,721
NET RESULT - LOSS	0	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

micro, considering the number of employees

Position & trend

Developing business volume in the investigated period, reaching a fair level.

The turnover registered a generally ascending trend, but in 2013 a certain regress was reported, of 28%, in EURO, compared to 2012.

The returns followed the same tendency and they generally give a moderate profitability.

The liquidity is also moderate and the solvability, by the indebtedness rate, does not looks quite well (the debts level exceed too much the equity).

The payments behaviour is correct, without delays.

Overall, the business relationshios rae feasible and the credit facilities are suitable, but the business trend should be monitored.

31.12.2009

31.12.2010

31.12.2011

31.12.2012

31.12.2013

Turnover

RON

757,409

1,154,268

3,121,347

5,937,686

4,316,712

EURO

179,133

269,387

722,584

1,340,729

962,542

Gross profit

RON

16,047

60,459

92,798

187,788

184,795

EURO

3,795

14,110

21,483

42,403

41,206

Net profit

RON

6,731

49,619

74,941

156,461

148,721

EURO

1,592

11,580

17,349

35,329

33,162

CREDITS & LOANS (ACTIVE BALANCE)

	31.12.2013
CREDITS & LOANS (ACTIVE BALANCE)	402,573
Bank credits, on short term (within 1year)	132,496
Bank credits, on medium term (over 1 year) - payable within 1 year - payable over 1 year	252,699 15,311 237,388
Other financial loans & afferent interests, on short term (within 1year)	17,378

BALANCE CLAIMS-DEBTS

BALANCE CLAIMS-DEBTS		Negative
Total claims		1,065,266
clients & trade debtors	973,899
Total debts		2,250,455
- Short term		2,013,067
suppliers & trade creditors	699,253
bank credits	147,807
other financial loans & afferent interests	17,378
to the Social Insurance	750
to the State Budget	10,285
to the shareholders	1,067,041
other debts	69,267
- Medium term		237,388
bank credits	237,388

PAYMENTS BEHAVIOR

PAYMENTS BEHAVIOR		Correct, no delays reported
PAYMENTS INCIDENTS, as officially recorded with the Payment Incident Bureau	No incidents recorded in the period 9.09.2013 – 9.09.2014

FINANCIAL STRENGTH	291,000 EURO
RISK CATEGORY	Above normal
BUSINESS RELATIONS	Permissible
CREDIT LIMIT	25,000 EURO

	2009	2010	2011	2012	2013
	Moderate
Liquidity analysis
- current ratio	1.29	1.24	1.16	1.11*	1.29
- quick ratio	0.39	0.44	0.60	0.49*	0.54
	*because the short term debt and the medium term are N/A, these ratios are calculated considering the total debt.
Solvability analysis	Not quite in a good condition –over limited indebtedness rate
- the borrowing ratio (total debts/net worth)	4.17	3.96	5.59	4.29	3.15
Profitability analysis (%)	Moderate
- return on capital	3.05	15.65	19.12	28.53	20.82
- return on assets	0.59	3.16	2.90	5.39	5.02
- gross profit margin	2.12	5.24	2.97	3.16	4.28
Activity analysis	Debtors’ settlements is generally not too good
- debtor’s days	124	105	136	66	90
- creditor’s days	n/a	n/a	n/a	n/a	n/a
Stocks turnover, times/year	1.22	1.38	2.83	4.04	2.84

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.92
UK Pound	1	Rs.98.66
Euro	1	Rs.78.64

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	NIT

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.