MIRA INFORM REPORT

Report Date :

27.09.2014

IDENTIFICATION DETAILS

Name :	EZTM JSC

Registered Office :	Ul Krasnaya d 19, 144000 Moskovskaya obl, g Elektrostal

Country :	Russia

Financials (as on) :	31.12.2013

Date of Incorporation :	15.01.1993

Legal Form :	Public limited company (OAO)

Line of Business :	Manufacture of machinery for metallurgy

No. of Employees :	1743

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Moderate

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 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Russia

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

OAO "EZTM"

ul Krasnaya d 19,
144000 Moskovskaya obl, g Elektrostal
Tel:                   74957029757
Telefax:             74965777342
E-Mail:              eztm@eztm.ru
Web:                www.eztm.ru

COMPANY SUMMARY

Business course	Satisfactory order situation.
Terms of payment	Recently, occasionally dalays of payments / payment reminders; earlier, within agreed terms, partly.

Business connection

Business connection appears permissable.

Established on	15/01/1993 - Public limited company (OAO)
Registered on	19/12/2002, INSPEKTSIYA MNS ROSSII PO G ELEKTROSTALI MOSKOVSKOY OBLASTI, RegNr.: 1025007116100 Tax number: 5053000564 Statistical number: 05744403

Registered capital		RUB			161 250,-
Stockholders	Vladimir Vladimirovich Rasskazov		%	5,77

	Andrey Leonidovich Burtsev	%	5,63
	Mikhail Sergeevich Semenov	%	5,63

	Pavel Anatolevich Popov	%	0,05
Owner	ZAO "Oykumena" ul Nizhnyaya Krasnoselskaya d 40/12, korp 20, 105066 g Moskva Beginning of validity: 21.09.2012	%	61,69

Employees	Lyubov Leonidovna Bogdanova Director of accounting
Management	Andrey Leonidovich Burtsev Managing committee chairman

	Lev Viktorovich Gnidenko Member of the board of directors
	Mikhail Sergeevich Semenov Member of the board of directors

	Pavel Anatolevich Popov Member of the board of directors
	Vladimir Vladimirovich Rasskazov Member of the board of directors

	YUriy Nikolaevich SHleyfer Member of the board of directors
Sole Executive Body	Vladimir Semenovich Zarudnyy Managing director

General data	Main activity: Manufacture of machinery for metallurgy
		Full name: Otkrytoe aktsionernoe obshchestvo "ELEKTROSTALSKIY ZAVOD TYAZHELOGO MASHINOSTROENIYA"

	Name in foreign language: EZTM JSC
	Short name: OAO "EZTM"


	Residence address: ul Krasnaya d 19, 144000 Moskovskaya obl, g Elektrostal Tel: 74957029757 74957029402 74965777522 74965777242 Telefax: 74965777342 E-Mail: tsb@eztm.ru eztm@eztm.ru Web: www.eztm.ru

	Representative office: per Snayperskiy dom 8-A, 49000 g Dnepropetrovsk
	EP-15 Diplomatic Enclave Chanakyapuri New Delhi-110021, Deli

	CHerepanova dom 10, 140000 Pavlodarskaya oblast, gorod Pavlodar
	av.Getulio Vargas 109-302, San Vicente

OAO "EZTM" specializes in production of equipment for steel, pipe and section rolling plants, mining and cement industries. The subject belongs to the largest enterprises of Russian heavy industry and manufactures the following type of production:
- rolling equipment;
- mineral processing equipment;
- furnace equipment;
- crushing and grinding machinery;
- cement equipment;
- different types of individual mechanisms and components.

Other activities

	:
	Printing n.e.c.	(22.22)

	Manufacture of basic iron and steel and of ferro-alloys	(27.14)
	Casting of iron	(27.51)

	Casting of steel	(27.52)
	Casting of light metals	(27.53)

	Casting of other non-ferrous metals	(27.54)
	Forging	(28.40)

	General mechanical engineering	(28.52)
	Manufacture of tools	(28.62)

	Manufacture of furnaces and furnace burners	(29.21.1)
	Manufacture of machine tools	(29.40.3)

	Manufacture of machinery for mining	(29.52)
	Recycling of metal waste and scrap	(37.10)

	Production and distribution of electricity	(40.10.2)
	Steam and hot water supply	(40.30.14)

	Retail sale of automotive fuel	(50.50)
	Wholesale of solid	(51.51.2)

	Retail sale of alcoholic and other beverages	(52.25)
	Hotels without restaurants	(55.12)

	Other provision of lodgings n.e.c.	(55.23.1)
	Other provision of lodgings n.e.c.	(55.23.2)

	Restaurants	(55.30)
	Bars	(55.40)

	Canteens	(55.51)
	Activity in fixed telephone services	(64.20.11)

	Letting of own property	(70.20.1)
	Letting of own property	(70.20.2)

	Management of real estate on a fee or contract basis	(70.32.1)
	Hospital activities	(85.11.2)

	Library and archives activities	(92.51)
	Washing and dry-cleaning of textile and fur products	(93.01)

Employees	2012	2181 employees
	2013	1743 employees

Annual turnover	31/12/2006	Enterprise turnover	RUB	2 115 594 000,-
	31/12/2007	Enterprise turnover	RUB	2 507 312 000,-

	31/12/2008	Enterprise turnover	RUB	2 752 846 000,-
	31/12/2009	Enterprise turnover	RUB	1 957 367 000,-

	31/12/2010	Enterprise turnover	RUB	1 980 632 000,-
	31/12/2011	Enterprise turnover	RUB	2 154 080 000,-

	31/12/2012	Enterprise turnover	RUB	2 157 829 000,-
	31/12/2013	Enterprise turnover	RUB	2 235 236 000,-

Events, negative data	02.03.2012 - Legal debt collection procedure Remark: A41-12031/2012: 87702,31 RUB
	27.08.2012 - Legal debt collection procedure Remark: A41-39321/2012: 1 128 349 RUB

	28.09.2012 - Legal debt collection procedure Remark: A41-40185/2012
	31.01.2013 - Legal debt collection procedure Remark: A41-3221/2013: 12871,3 EURO

	02.04.2013 - Legal debt collection procedure Remark: A41-13406/2013: 31290 RUB
	01.07.2013 - Legal debt collection procedure Remark: A41-29357/2013: 22425,32 RUB

	11.07.2013 - Legal debt collection procedure Remark: A41-32314/2013: 161167,48 RUB
	05.08.2013 - Legal debt collection procedure Remark: A41-37719/2013: 122496,26 RUB

	12.08.2013 - Legal debt collection procedure Remark: A41-39024/2013: 331 549,00 RUB
	11.11.2013 - Legal debt collection procedure Remark: A41-58360/2013: 2 544 301,32 RUB

	04.12.2013 - Legal debt collection procedure Remark: A41-64209/2013: 590,18 RUB
	13.01.2014 - Legal debt collection procedure Remark: A41-382/2014: 601 701,74 RUB

	31.01.2014 - Legal debt collection procedure Remark: A41-4576/2014: 5 373,79 RUB
	31.01.2014 - Legal debt collection procedure Remark: A41-4578/2014: 171,46 RUB

	31.01.2014 - Legal debt collection procedure Remark: A41-4577/2014: 199,32 RUB
	31.01.2014 - Legal debt collection procedure Remark: A41-4580/2014: 340,46 RUB

	31.01.2014 - Legal debt collection procedure Remark: A41-4579/2014: 21,68 RUB
	11.02.2014 - Legal debt collection procedure Remark: A41-7333/2014: 1 400 000,00 RUB

	18.03.2014 - Legal debt collection procedure Remark: A41-15032/2014: 49 288,25 RUB - in process
	25.03.2014 - The claim for the recognition of debtor insolvency Remark: A41-17105/2014

	27.03.2014 - Legal debt collection procedure Remark: A41-17702/2014: 1 029 209,75 RUB
	25.04.2014 - Legal debt collection procedure Remark: A41-24104/2014: 48 126,76 EURO

	25.04.2014 - Legal debt collection procedure Remark: A41-24104/2014: 75 000,00 RUB
	28.05.2014 - Legal debt collection procedure Remark: A41-30842/2014: 280 755,00 RUB

	16.06.2014 - Legal debt collection procedure Remark: A41-34495/2014: 420 285,16 RUB
	24.06.2014 - Legal debt collection procedure Remark: A41-36562/2014: 172 784,07 RUB

	01.07.2014 - Rejection of claim for the recognition of debtor insolvency Remark: A41-17105/2014
	04.07.2014 - Legal debt collection procedure Remark: A41-40166/2014: 635 047,19 RUB

	24.07.2014 - Legal debt collection procedure Remark: A43-18753/2014: 3 540 000,00 RUB - in process
	25.07.2014 - Legal debt collection procedure Remark: A41-44985/2014: 2 642 823,95 RUB - in process

	07.08.2014 - Legal debt collection procedure Remark: A41-48021/2014: 220 436,06 RUB
	23.09.2014 - Legal debt collection procedure Remark: A41-58805/2014: 1 388 131,08 RUB in process

Remarks

During the phone call the representative of the company informed that business premises at ul Krasnaya d 19, 144000 Moskovskaya obl, g Elektrostal are rented by OAO "EZTM".
The company has some licenses:
№ 91974 – local telephone communication services, by the exception of local telephone services using payphones and multiple access – is valid till: 24 May, 2016;
№ LO-50-01-002469 - medical activities - unlimited;
№ RRS 00-043578- permission on usage of quick narrowing devices, types BSU 100 (150, 200, 300, 400, 500, 700, 1000)/7.5 by TU 3667 - 013 - 05744403 - 2009 – is valid till: 24 May, 2016;
№ 50.99.08.002.Л.000164.12.10 - usage and storage of ionizing radiation sources (generators) for industrial inspections- is valid till: 13 December, 2015; and others.
Through the managing director, Vladimir Semenovich Zarudnyy (INN: 771510922657), the affiliation of the subject was found with:
OOO " Bogaevskyy karier" – Reg.number: 1055010952446, INN: 5075019720, Moskovskaya obl, der Oreshki; is currently active. Vladimir Semenovich Zarudnyy is the owner of 37,50% of share capital of this company;
OOO " SHAMBALA" – Reg.number: 1047796369246; INN: 7703519240, Moskovskaya obl, g Elektrostal; is currently active. Vladimir Semenovich Zarudnyy is the owner of 20% of share capital of the company;
ZAO " Elektrostal Zink" – Reg.number: 1065053028480; INN: 5053049320, Moskovskaya obl, g Elektrostal; is currently active. Vladimir Semenovich Zarudnyy is the owner of 10% of share capital of the company;
OOO " Nerudprom-Ruza" – Reg.number: 1035011659385; INN: 5075017240, Moskovskaya obl, pos Staroteryaevo; is currently active. Vladimir Semenovich Zarudnyy is the owner of 50% of share capital of the company;
OOO " Trans-Zapad" – Reg.number: 1065075010990; INN: 5075033323, Moskovskaya obl, der Oreshki; is currently active. Vladimir Semenovich Zarudnyy is the owner of 13,61% of share capital of the company;
OOO " STILSTROY" – Reg.number: 1057748573740; INN: 7719568162, g Moskva; is currently active. Vladimir Semenovich Zarudnyy is the owner of 33,34% of share capital of the company;
OOO " CH. I V." – Reg.number: 1037739358018; INN: 7734156646, g Moskva; is currently active. Vladimir Semenovich Zarudnyy is the owner of 20% of share capital of the company;
OOO " ELF" – Reg.number: 1047796301630; INN: 7703517250, Moskovskaya obl, der Oreshki; is currently active. Vladimir Semenovich Zarudnyy is the owner of 14% of share capital of the company.
According to available information, in 2011-2014 OAO "EZTM" had 5 state contracts for the total sum:
In 2013: 892 984, 00 RUB;
In 2012: 1 250 000,00 RUB;
In 2011: 277 700,00 RUB.
The subject participated in court cases as claimant and collected:
In 2014: 1 072 295,09RUB;
In 2013: 30 933,00 RUB;
In 2012: 4 719 984,00 RUB.
Acсording to information, disclosed by the Federal Tax Service, OAO "EZTM" does not have tax arrears, company is not going to be excluded from the state register as non-active.
According to information, disclosed by the Pension Fund of Russian Federation, the company does not have delays in social payments.
According to information, disclosed by the Federal Labor Service, the company does not plan to attract foreign employees.
The company is not in the list of default debtors, the Register of unfair suppliers, the blacklist of Russian companies.
The management of OAO "EZTM" is not in the list of default debtors, the register of disqualified persons, the blacklist of Russian Private Persons.

Bank relations

FORSHTADT:
Central address: RU ORENBURG, UL.CHKALOVA,35/1
Account number: 40702810000010441121

VOZROZHDENIE:
Central address: RU MOSKVA, LUCHNIKOV PER.7/4 STR.1
Account number: 40702810606100540246

SBERBANK ROSSII OAO:
Central address: RU MOSKVA, UL.VAVILOVA,19
Account number: 40702756740280000283 40702756740280000283 407

BSZHV:
Central address: RU MOSKVA, YAKIMANSKAYA NAB.,2
Account number: 40702978702651238334

ROSBANK:
Central address: RU MOSKVA, UL.SMOLNAYA,22 STR.1
Account number: 40702978197210000109

A. The enclosed balance of 2012 is originated from official source, it is authenticated by the auditor . (31.12.2012 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).
B. The enclosed balance of 2013 is originated from official source, no data available about authentication. (31.12.2013 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).

FINANCIAL

balance	A 31.12.2012	B 31.12.2013	C
1. ASSETS
I. FIXED ASSETS
Intangible assets	839	1 174
The results of research and development	2 233	1 397
Intangible research assets	0	0
Tangible research assets	0	0
Fixed assets	1 446 946	1 487 027
Profitable investments in tangible assets	0	0
Financial investments	3 908	3 358
Deferred tax assets	1 962	43 967
Other non-current assets	296	0
TOTAL IN SECTION I.	1 456 184	1 536 923
II. CURRENT ASSETS
Inventories	1 185 584	991 323
VAT on acquired assets	10 171	20 899
Accounts receivable	779 298	737 557
Financial investments (excluding the monetary equivalent)	0	0
Cash and monetary equivalents	20 107	4 634
Other current assets	48 763	39 273
TOTAL IN SECTION II.	2 043 923	1 793 686
BALANCE	3 500 107	3 330 609
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	161	161
Treasury stock	0	0
Revaluation of fixed assets	504 863	500 490
Additional capital (without revaluation)	0	0
Reserve capital	8	8
Retained earnings (uncovered loss)	531 273	551 456
TOTAL IN SECTION III.	1 036 305	1 052 115
IV. LONG-TERM LIABILITIES
Borrowed funds	492 214	909 200
Deferred tax liabilities	126 189	133 972
Provisions	0	0
Other liabilities	0	0
TOTAL IN SECTION IV.	618 403	1 043 172
V. SHORT-TERM LIABILITIES
Borrowed funds	1 026 394	683 104
Payables	763 675	524 491
Deferred income	0	0
Provisions	37 026	25 582
Sonstige Verbindlichkeiten	18 304	2 145
TOTAL IN SECTION V.	1 845 399	1 235 322
BALANCE	3 500 107	3 330 609
A. The enclosed profit and loss account of 2012 is originated from official source, it is authenticated by the auditor . (31.12.2012 - 1000 RUB) B. The enclosed profit and loss account of 2013 is originated from official source, no data available about authentication. (31.12.2013 - 1000 RUB)

profit and loss account	A 31.12.2012	B 31.12.2013	C
Turnover	2 157 829	2 235 236
Cost of sales	1 387 420	1 659 561
Gross profit (loss)	770 409	575 675
Selling expenses	95 149	79 636
Administrative expenses	479 943	383 926
Sales profit (loss)	195 317	112 113
Earnings from other entities	3	3
Interest receivable	77	53
Interest payable	131 221	163 003
Other operating income	474 043	521 744
Other operating expenses	516 503	469 228
Profit (loss) before tax	21 716	1 682
Current profit tax	0	15 653
Permanent tax liabilities (assets)	10 881	18 905
Change in deferred tax liabilities	15 225	7 783
Change in deferred tax assets	0	42 005
Different	5 462	4 442
Net profit (loss)	1 029	15 809
Results of fixed assets revaluation, non-includedin net profit/loss for period	0	0
Result of other transactions, non included in net profit/loss for period	0	0
Total financial result for period	1 029	15 809
A. The enclosed balance of 2014 is originated from official source, no data available about authentication. (30.06.2014 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).

balance	A 30.06.2014	B	C
1. ASSETS
I. FIXED ASSETS
Intangible assets	1 159
The results of research and development	746
Intangible research assets	0
Tangible research assets	0
Fixed assets	1 505 607
Profitable investments in tangible assets	0
Financial investments	3 358
Deferred tax assets	74 358
Other non-current assets	0
TOTAL IN SECTION I.	1 585 228
II. CURRENT ASSETS
Inventories	990 189
VAT on acquired assets	5 773
Accounts receivable	616 525
Financial investments (excluding the monetary equivalent)	0
Cash and monetary equivalents	5 411
Other current assets	42 404
TOTAL IN SECTION II.	1 660 302
BALANCE	3 245 530
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	161
Treasury stock	0
Revaluation of fixed assets	500 009
Additional capital (without revaluation)	0
Reserve capital	8
Retained earnings (uncovered loss)	41 360
TOTAL IN SECTION III.	913 838
IV. LONG-TERM LIABILITIES
Borrowed funds	1 123 435
Deferred tax liabilities	139 738
Provisions	0
Other liabilities	0
TOTAL IN SECTION IV.	1 263 173
V. SHORT-TERM LIABILITIES
Borrowed funds	437 517
Payables	597 502
Deferred income	0
Provisions	31 355
Sonstige Verbindlichkeiten	2 145
TOTAL IN SECTION V.	1 068 519
BALANCE	3 245 530
A. The enclosed profit and loss account of 2014 is originated from official source, no data available about authentication. (30.06.2014 - 1000 RUB)

profit and loss account	A 30.06.2014	B	C
Turnover	718 816
Cost of sales	550 653
Gross profit (loss)	168 163
Selling expenses	34 028
Administrative expenses	187 514
Sales profit (loss)	-53 379
Earnings from other entities	0
Interest receivable	17
Interest payable	90 667
Other operating income	178 165
Other operating expenses	201 063
Profit (loss) before tax	-166 927
Current profit tax	0
Permanent tax liabilities (assets)	-8 761
Change in deferred tax liabilities	-5 766
Change in deferred tax assets	30 391
Different	4 026
Net profit (loss)	-138 276
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	-138 276

Ratios		2011	2012	2013
	Quick ratio	n/a	n/a	n/a

	Current ratio	n/a	n/a	n/a
	Average Collection Period	n/a	n/a	n/a

	Payables turnover Period	n/a	n/a	n/a
	Debt ratio	n/a	n/a	n/a

	Equity to total assets ratio	n/a	n/a	n/a
	Funding ratio	n/a	n/a	n/a

	Return on sales	n/a	n/a	n/a
	Return on Assets	n/a	n/a	n/a

Return on Equity

n/a

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.57
UK Pound	1	Rs.100.42
Euro	1	Rs.78.44

INFORMATION DETAILS

Analysis Done by :	SUB

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.

MIRA INFORM REPORT

COMPANY NAME AND ADDRESS

COMPANY SUMMARY

FINANCIAL

Unit