MIRA INFORM REPORT

Report No. :	315975
Report Date :	07.04.2015

IDENTIFICATION DETAILS

Name :	ICPE SA
Registered Office :	030138 Bucharest, Sector 3 – Splaiul Unirii No. 313
Country :	Romania
Financials (as on) :	30.06.2014
Date of Incorporation :	August 1992
Legal Form :	Joint Stock Company
Line of Business :	Research & Development on Natural Sciences and Engineering
No. of Employees :	306 [2014]

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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 summary

NAME OF THE COMPANY

ICPE SA

Address

030138 Bucharest, sector 3 – Splaiul Unirii No. 313

Phone no.

Cell phone no.

0040-21-5893300, 5893484, 5893364

0040-745-119487

Fax no.

0040-21-5893434

Web-site

www.icpe.ro

E-mail address

office@icpe.ro

HISTORIC/OFFICIAL DATA

Date of foundation

1950, as a State research institute on electro-technics. In August, 1992, suite of a Governmental Decision, it was transformed into a joint stock company, entire State capital and renamed as ICPE SA; later on, it was totally privatized.

Present legal form

Joint stock company, entire Romanian capital

Registered with the Trade Registry

J40/21438/1992

VAT no.

423140

Registered capital

9,585,632.5 RON

Shareholders

Individuals

1. Mrs. Fleischer Maria – Romanian citizen, born on 4.05.1955

Participation

0.00994%

2. Mr. Pencioiu Paul – Romanian citizen, born on 8.03.1946

Participation

0.02642%

3. Mr. Kappel M. Wilhelm – Romanian citizen, born on 17.06.1946

Participation

0.00994%

4. Mr. Balanescu Traian – Romanian citizen, born on 3.11.1950

Participation

0.02631%

5. Mr. Racicovschi Dan Vergil – Romanian citizen, born on 5.03.1954

Participation

0.02642%

6. Mr. Marinescu Ioan – Romanian citizen, born on 6.02.1933

Participation

0.00994%

7. Mr. Vasile Nicolae – Romanian citizen, born on 16.06.1954

Participation

0.03946%

Legal persons

8. Asociatia Salariatilor ICPE (the employees association) – Romanian legal person

Address: 030138 Bucharest, sector 3 – Splaiul Unirii No. 313

Participation

64.80681%

9. SIF “Muntenia” (Financial Investment Company) – Romanian legal person (J40/27499/1992, VAT 3168735)

Address: Bucharest, sector 4 – Splaiul Unirii No. 4

Participation

35.04476%

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

2009

2010

2011

2012

2013

30.06.2014

total

352

346

336

324

313

306

BUSINESS ACTIVITY

- Research & development on natural sciences and engineering, according to the National Trade Registry updated files

(NACE: 7219)

According to the company’s web-site

Established for country’s electrification purposes, nowadays, ICPE SA represents a complex structure which covers varied ranges of innovating thematic, connected by ELECTRIC profile:

• Renewable energy
• Power efficiency
• Environmental Protection
• Electrical and ecological apparatus
• Special electric cables
• Special electric machines
• Servo control
• Industrial and agricultural automation
• Electrical vehicles
• Electrotechnologies
• Product quality

Work-shops

1. Constanta county / Agigea

2. Bucharest, sector 3 – Splaiul Unirii No. 313

The company has also officially registered other 3 sub-units, all of them experimental stations:

1. Covasna county / Ghidfalau

2. Constata county / Costinesti

3. Constanta county / Agigea

OTHER PARTICIPATION

1. Company’s participation

ICPE LOGISTICS SRL – J40/6559/2013, VAT 31680489

2. Shareholders other participation

1. Mrs. Fleischer Maria

not applicable

2. Mr. Pencioiu Paul

ICPE - INGINERIE ELECTRICA SRL –

J40/20703/2008, VAT 24856192

3. Mr. Kappel M. Wilhelm

ROCHIN BUSINESS SRL – J40/9811/2008,

VAT 24000296

4. Mr. Balanescu Traian

not applicable

5. Mr. Racicovschi Dan Vergil

KROBETON SRL – J40/4018/2008, VAT 23427567

6. Mr. Marinescu Ioan

not applicable

7. Mr. Vasile Nicolae

G.N.I.R. HOLDING SA – J40/13926/2005,

VAT 17858808

ROCHIN BUSINESS SRL – J40/9811/2008,

VAT 24000296

8. Asociatia Salariatilor ICPE

not applicable

9. SIF “Muntenia”

in other over 100 Romanian companies

REAL ESTATE (RON)

- lands & buildings

2009

2010

2011

2012

2013

2,480,066

3,249,931

3,377,814

3,439,700

4,499,597

TANGIBLES*

9,209,555 RON, at 30.06.2014

*According to the accounting standards, for the middle of the year the company is not obliged to detail its tangible assets. Therefore, the real estates are included in “Tangibles” position among the other assets

BANKS

Nextebank SA

MANAGEMENT

· as officially registered with the National Trade Registry

President of the Board, General Manager

Mr. Racicovschi Dan Vergil – appointed on 21.03.2008;

expiration date of mandate: 28.06.2015

Member of the Board

Mr. Pencioiu Paul – appointed on 8.05.2013; expiration date of mandate: 28.06.2015

Member of the Board

Mr. Pauna Ion – Romanian citizen, born on 17.10.1956

Appointed on 21.03.2008; Expiration date of mandate: 28.06.2015

Member of the Board

Mr. Spiridon Ion Eugen – Romanian citizen, born on 9.09.1967

Appointed on 28.06.2011; Expiration date of mandate: 28.06.2015

Member of the Board

Mrs, Pirvu Raluca Dafina – Romanian citizen, born on 26.10.1976

Appointed on 21.03.2008; Expiration date of mandate: 28.06.2015

General Manager

Mr. Racicovschi Dan Vergil – appointed on 8.03.2007 for unspecified period

Economic Director

Mr. Balanescu Traian – appointed on 26.03.2008 for unspecified period

Technical Director

Mr. Jivan Ioan Corneliu – Romanian citizen, born on 23.10.1980

Appointed on 14.03.2012; Expiration date of mandate: 12.07.2015

Technical Director

Mr. Pauna Ion – Romanian citizen, born on 17.10.1956

Appointed on 26.03.2008 for unspecified period

CURRENCY

Exchange rate of EURO

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

1 EURO = 4.3888 RON on 30.06.2014

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2011	31.12.2012	31.12.2013	30.06.2014
INTANGIBLES - TOTAL	146.545	94.855	62.727	23.561
TANGIBLES - TOTAL	8.652.214	9.902.888	10.108.749	9.209.555
FINANCIALS - TOTAL	59.675	65.022	63.005	45.624
FIXED ASSETS - TOTAL	8.858.434	10.062.765	10.234.481	9.278.740
STOCKS - TOTAL	4.596.691	7.600.767	7.679.955	11.556.269
CLAIMS - TOTAL	8.607.200	7.372.016	5.871.397	5.479.482
CURRENT ASSETS	15.080.124	15.799.247	16.044.402	18.953.616
PREPAID EXPENSES	1.694	319.226	48.180	28.174
DEBTS WITHIN 1 YEAR	9.649.551	8.942.067	9.597.213	11.264.212
DEBTS OVER 1 YEAR	0	1.311.218	977.920	979.210
PROVISIONS	63.164	63.164	63.164	63.164
ADVANCED INCOMES	1.881.861	1.369.961	997.742	757.924
REGISTERED CAPITAL	7.369.705	9.585.633	9.585.633	9.585.633
RESERVES	1.581.459	1.691.535	2.257.634	2.316.072
PROFITS CARRIED FORWARD	1.443.500	1.443.012	1.517.869	2.267.869
NET RESULT - PROFIT	1.889.094	1.710.224	827.669	504.995
NET RESULT - LOSS	0	0	0	0
NET WORTH	12.345.676	14.494.828	14.691.024	15.196.020
PROFIT & LOSS ACCOUNT	31.12.2011	31.12.2012	31.12.2013	30.06.2014
Turnover	24.640.949	20.775.591	22.870.353	8.728.230
Own production & services	N/A	N/A	N/A	N/A
Sales	N/A	N/A	N/A	N/A
INCOMES FROM ORDINARY OPERATING ACTIVITY	27.211.407	25.804.893	24.924.919	13.258.697
Raw materials	N/A	N/A	N/A	N/A
Costs of goods sold	N/A	N/A	N/A	N/A
Wages	N/A	N/A	N/A	N/A
Depreciations & provisions	N/A	N/A	N/A	N/A
Other operating costs	N/A	N/A	N/A	N/A
COSTS OF ORDINARY OPERATING ACTIVITY	24.511.645	23.228.896	23.523.756	12.432.293
ORDINARY OPERATING RESULT - PROFIT	2.699.762	2.575.997	1.401.163	826.404
ORDINARY OPERATING RESULT - LOSS	0	0	0	0
FINANCIAL INCOMES	220.021	182.971	289.742	92.140
FINANCIAL COSTS	684.217	729.489	718.878	253.256
FINANCIAL RESULT - PROFIT	0	0	0	0
FINANCIAL RESULT - LOSS	464.196	546.518	429.136	161.116
CURRENT RESULT - PROFIT	2.235.566	2.029.479	972.027	665.288
CURRENT RESULT - LOSS	0	0	0	0
Extraordinary incomes	0	0	88.298	0
Extraordinary costs	0	0	4.982	0
EXTRAORDINARY RESULT - PROFIT	0	0	83.316	0
EXTRAORDINARY RESULT - LOSS	0	0	0	0
TOTAL INCOMES	27.431.428	25.987.864	25.302.959	13.350.837
TOTAL COSTS	25.195.862	23.958.385	24.247.616	12.685.549
PRETAX RESULT - PROFIT	2.235.566	2.029.479	1.055.343	665.288
PRETAX RESULT - LOSS	0	0	0	0
TAX ON PROFIT	0	319.255	227.674	160.293
NET RESULT - PROFIT	1.889.094	1.710.224	827.669	504.995
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 30.06.2014. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 30.06.2014

- all figures are reported in RON if otherwise not specified.

Size

large, considering the total no. of employees.

Position & trend

Well-established and well-experienced company, with a solid background.

It develops a considerable business volume, with fair financial standing.

The payments behaviour is facing some problems, but not worrying.

The business relationships are feasible and the credit facilities aresuitable.

Business trend is rather constant.

31.12.2009

31.12.2010

31.12.2011

31.12.2012

31.12.2013

30.06.2014

Turnover

RON

22,331,605

23,664,030

24,640,949

20,775,591

22,870,353

8,728,230

EURO

5,281,587

5,522,785

5,704,320

4,691,126

5,099,639

1,988,751

Gross profit

RON

505,480

980,294

2,235,566

2,029,479

1,055,343

665,288

EURO

119,550

228,784

517,528

458,256

235,321

151,588

Net profit

RON

405,902

813,273

1,889,094

1,710,224

827,669

504,995

EURO

95,999

189,804

437,321

386,168

184,554

115,064

30.06.2014

CREDITS & LOANS (ACTIVE BALANCE)

N/A

BALANCE CLAIMS-DEBTS

Negative

Total claims; no further details are available

5,479,482

Total debts

12,243,422

- Short term; no further details are available

11,264,212

- Medium term; no further details are available

979,210

PAYMENTS BEHAVIOR

with some delays

Total overdue of 9.30% of turnover (7.21% of total short term debt)

812,049

To suppliers

812,049

over 30 days

566,740

over 90 days

221,177

over 1 year

24,132

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded in the period 6.04.2014 – 6.04.2015

BLACKLISTING (international sanctions)

Not applicable

2009

2010

2011

2012

2013

30.06.2014

Depreciated, but still passable

Liquidity analysis

- current ratio

1.51

1.73

1.56

1.77

1.67

1.68

- quick ratio

1.12

1.21

1.09

0.92

0.87

0.66

Solvability analysis

Very good

- the borrowing ratio (total debts/net worth)

1.21

0.82

0.78

0.71

0.72

0.81

Profitability analysis (%)

Mostly fair

- return on capital

4.83

7.60

15.30

11.80

5.63

3.32

- return on assets

1.90

3.71

7.89

6.53

3.14

1.79

- gross profit margin

2.26

4.14

9.07

9.77

4.61

7.62

Activity analysis

Debtors control not good (therefore certain payments problems)

- debtor’s days

158

139

128

130

94

112

- creditor’s days

46

46

31

36

17

n/a

Stocks turnover, times/period

6

5

5

3

3

0.76

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.15
UK Pound	1	Rs.92.74
Euro	1	Rs.68.23

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%)

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.