MIRA INFORM REPORT

Report No. :	333878
Report Date :	01.08.2015

IDENTIFICATION DETAILS

Name :	A.A.S. ADVANCED AUTOMATION SYSTEMS LIMITED

Registered Office :	9 Fyteion, Ypsona Industrial Area, Limassol, 3056

Country :	Cyprus

Financials (as on) :	December, 2013

Date of Incorporation :	12.07.2006

Com. Reg. No.:	C180195

Legal Form :	Limited Company

Line of Business :	The company in question is involved in the import (100%) of raw materials, manufacture and export (100%) of drippers that are used for water supply.

No. of Employee :	23

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 :	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 – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Cyprus

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

CYPRUS - ECONOMIC OVERVIEW

The area of the Republic of Cyprus under government control has a market economy dominated by the service sector, which accounts for four-fifths of GDP. Tourism, financial services, and real estate have traditionally been the most important sectors. Cyprus has been a member of the European Union (EU) since May 2004 and adopted the euro as its national currency in January 2008. During the first five years of EU membership, the Cyprus economy grew at an average rate of about 4%, with unemployment between 2004 and 2008 averaging about 4%. However, the economy tipped into recession in 2009 as the ongoing global financial crisis and resulting low demand hit the tourism and construction sectors. An overextended banking sector with excessive exposure to Greek debt added to the contraction. Cyprus’s biggest two banks were among the largest holders of Greek bonds in Europe and had a substantial presence in Greece through bank branches and subsidiaries. Following numerous downgrades of its credit rating, Cyprus lost access to international capital markets in May 2011. In July 2012, Cyprus became the fifth eurozone government to request an economic bailout program from the European Commission, European Central Bank and the International Monetary Fund - known collectively as the "Troika."

Shortly after the election of President Nikos ANASTASIADES in February 2013, Cyprus reached an agreement with the Troika on a $10 billion bailout that resulted in losses on uninsured bank deposits. The bailout triggered a two-week bank closure and the imposition of capital controls that were completely withdrawn in April 2015. Cyprus' two largest banks merged and the combined entity was recapitalized through conversion of some large bank deposits to shares and imposition of losses on bank bondholders. As with other EU countries, the Troika conditioned the bailout on passing financial and structural reforms and privatizing state-owned enterprises. Despite downsizing and restructuring, the Cypriot financial sector throughout 2014 remained burdened by the largest stock of non-performing loans (NPLs) in the euro-zone, equal to nearly half of all loans. Since the bailout, Cyprus has received positive appraisals by the Troika but met its first signs of resistance to passing bailout-mandated legislation in 2014. Political disagreements held up passage of contentious legislation required by the Troika to reform bankruptcy rules, delaying disbursal of bailout funds during the second half of the year. In October 2013, a US-Israeli consortium completed preliminary appraisals of hydrocarbon deposits in Cyprus’ exclusive economic zone (EEZ), which revealed an estimated gross mean reserve of about 140 billion cubic meters. Though exploration continues in Cyprus’ EEZ, no additional commercially exploitable reserves were identified during the exploratory drilling in 2014/2015. Nevertheless, developing its offshore hydrocarbon resources remains a critical component to the government’s economic recovery efforts. Industry experts say there may be exploratory and development drilling in 2016 and 2017.

Economy - overview: Even though the whole of the island is part of the EU, implementation of the EU "acquis communautaire" has been suspended in the area administered by Turkish Cypriots, known locally as the "Turkish Republic of Northern Cyprus" ("TRNC"), until political conditions permit the reunification of the island. The market-based economy of the TRNC is roughly one-fifth the size of its southern neighbor and is likewise dominated by the service sector with a large portion of the population employed by the government. In 2012 - the latest year for which data are available - the services sector, which includes the public sector, trade, tourism, and education, contributed 58.7% to economic output. In the same year, light manufacturing and agriculture contributed 2.7% and 6.2%, respectively. Manufacturing is limited mainly to food and beverages, furniture and fixtures, construction materials, metal and non-metal products, textiles and clothing. The “TRNC” maintains few economic ties with the Republic of Cyprus outside of trade in construction materials. Since its creation, the "TRNC" has heavily relied on financial assistance from Turkey, which supports the "TRNC" defense, telecommunications, water and postal services. The Turkish Lira is the preferred currency, though foreign currencies are widely accepted in business transactions. The "TRNC" remains vulnerable to the Turkish market and monetary policy because of its use of the Turkish Lira. The "TRNC" weathered the European financial crisis relatively unscathed - compared to the Republic of Cyprus - because of the lack of financial sector development, the health of the Turkish economy, and its separation from the rest of the island. The TRNC economy experienced growth estimated at 2.8% in 2013 and 2.3% in 2014 and is projected to grow 3.8% in 2015.

Source : CIA

Basic Information

Registered Name	A.A.S. ADVANCED AUTOMATION SYSTEMS LIMITED
English Name	A.A.S. ADVANCED AUTOMATION SYSTEMS LIMITED
Trade Style:	AAS
Registered Address	9 Fyteion, Ypsona Industrial Area, Limassol, 3056, Cyprus
Headquarters:	9 Fyteion, Limassol, 3056, PoBox 70101, Cyprus
Telephone	+35725399962
Fax	+35725399963
E-mail	office@aasystems.eu
Web Site	www.aasystems.eu
Legal Type	Limited Company
Registration No	C180195	Registration Date	12/07/2006
Start Date	12/07/2006	Years of Operation:	9
Last annual report	31/12/2012	Latest Annual Account Date	31/12/2013
Last return	28/04/2014	Tax Reg No:	VAT: CY10180195K
CINFO ID:	CYC23066304
Status:	Registered and operational

Summary


Employees	April 2014	December 2013	December 2012
	Company	Company	Company
Total Number	23	23	30


Financial Summary	December 2013	December 2012
	EUR	EUR
Revenue Sales	4,764,960.00	8,090,708.00
Pre Tax Profit	561,192.00	1,219,272.00
Working Capital	4,900,490.00	1,665,642.00
Total Equity	7,802,878.00	3,884,031.00
Long Term Debts	56,765.00	1,341,150.00
Trend	UP	-
Additional Info:
Correspondence: A.A.S. ADVANCED AUTOMATION SYSTEMS LIMITED, P.O.Box 70101, 4161, Limassol, Cyprus, Tel: 25399962 Legal Advisor: CHRISTODOULOS G. VASILEIADES & CO, Agiou Pavlou 15, Ledra House, 1105, Agios Andreas, Nicosia, Cyprus

Payment

Assessment:	Low Risk
Payment Habits:	No complaints	A check against all available information sources revealed that no late payment incidents against Subject Company exist.
Financial strength	Moderate	Please note that the maximum credit and financial strength was calculated based on the company's audited financial statements for the year 2013.
Maximum credit	119,000.00 EUR	The maximum credit provided was calculated based on the company's issued capital.

Business History

Previous Locations

Registered	From:	To:
229, Archiepiskopou Makariou C' Avenue, Meliza Court, 4th Floor, Limassol, 3105, , Cyprus,	12/07/2006	01/07/2007

Capital

Authorized Capital	146,574.00	EUR	Issued Capital	146,574.00	EUR
Nominal No Of Shares	146,574.00		Issued No Of Shares	146,574.00
Nominal value	1.00	EUR	Paid Up	146,574.00	EUR

Shares Breakdown

Value

Issued Shares Breakdown

Class

Type

146573

Value 1 EUR

146573

Ordinary

Value 1 EUR

Preferred

Corporate Structure

Directors

Position

Acts As

Occupation

Age

Appointed

Other dir.

ARGYROPOULOS IOANNIS

Director

AH2623035(Passport)

Businessman

05/12/2013

3 25 Martiou, 15452, Athina, Greece

Other Directorship:			No Information Found

Other Shareholding:			No Information Found

VERELIS CHRISTOS

Director

AH4364031(Passport)

05/12/2013

33 Akadimias, 10672, Athena, Greece

Other Directorship:			No Information Found

Other Shareholding:			No Information Found

ALI AHMAD AL NAJJAR

Director

A2554600(Passport)

Businessman

05/12/2013

Al Barsha Third, Villa 375, Dubai, United Arab Emirates

Other Directorship:			No Information Found

Other Shareholding:			No Information Found

PARASKEVOPOULOS DIMITRIOS

Director

AB1570281(Passport)

Businessman

30/06/2009

9 Fytion, Viomichaniki Periochi Ypsona, Ypsonas, 3056, Limassol, Cyprus

Other Directorship:			No Information Found

Other Shareholding:			No Information Found

ILEANA MONIKA PARASKEVOPOULOU

Director

13934016(Passport)

Director

30/06/2009

Yes

9 Fyteion, Ypsona Industrial Area, Limassol, 3056, Cyprus

Other Directorship:
	Name	Registration Date	Reg. No.	Status	Position	Update Date
	ALMODI LIMITED	28/06/2008	C232636	Registered and operational	Director	10/09/2009

Other Shareholding:
	Name	Registration Date	Reg. No.	Status	%	Update Date
	ALMODI LIMITED	28/06/2008	C232636	Registered and operational	50	10/09/2009

Secretary

Position

Acts As

Occupation

Age

Appointed

Other dir.

ILEANA MONIKA PARASKEVOPOULOU

Company Secretary

13934016(Passport)

Director

28/04/2014

Yes

9 Fyteion, Ypsona Industrial Area, Limassol, 3056, Cyprus

Other Directorship:
	Name	Registration Date	Reg. No.	Status	Position	Update Date
	ALMODI LIMITED	28/06/2008	C232636	Registered and operational	Director	10/09/2009

Other Shareholding:
	Name	Registration Date	Reg. No.	Status	%	Update Date
	ALMODI LIMITED	28/06/2008	C232636	Registered and operational	50	10/09/2009

Shareholders

ID / Reg. No.

Acts As

Nationality

Shares

Shares Breakdown

Class

Type

LOKI INVEST LIMITED

1038587

102601

69.99945

102601

Ordinary

Road Town, Tortola, British Virgin Islands

Other Directorship:			No Information Found

Other Shareholding:			No Information Found

ESME HOLDNG LIMITED

29312

19.99809

29312

Ordinary

Sheikh Zayed Road, Park Place Tower, Apt. 503, P.O.Box: 185343, Dubai, British Virgin Islands

Other Directorship:			No Information Found

Other Shareholding:			No Information Found

VERELIS CHRISTOS

AH4364031(Passport)

GREEK

14660

10.00177

14660

Ordinary

33 Akadimias, 10672, Athena, Greece

Other Directorship:			No Information Found

Other Shareholding:			No Information Found

DITS DRIP IRRIGATION TECHNOLOGIES SERVICES LIMITED

C230601

0.00068

Preferred

227 Archiepiskopou Makariou C' Avenue, Doma Bldg, 3rd Floor, Limassol, 3105, Cyprus

Other Directorship:			No Information Found

Other Shareholding:			No Information Found

Operation

Activity Code

Description

NACE 2.1

4661

Wholesale of agricultural machinery, equipment and supplies - This class includes: - wholesale of agricultural machinery and equipment: > ploughs, manure spreaders, seeders > harvesters > threshers > milking machines > poultry-keeping machines, bee-keeping machines > tractors used in agriculture and forestry - This class also includes: - lawn mowers however operated -

Line of Business

The company in question is involved in the import (100%) of raw materials, manufacture and export (100%) of drippers that are used for water supply.

According to the company's website, AAS is an internationally renowned global leader in the field of Drip Technology specializing in state of the art emitter and extrusion processes. The AAS team consists of global drip irrigation experts with knowledge and proficiency covering all aspects of a drip irrigation enterprise, ranging from drippers, production lines and manufacturing, all the way to finished product in the field.

The company in question provides the following services:

DRIPPER DESIGN
TURN-KEY PRODUCTION LINES
TECHNICAL CONSULTATION AND AFTER SALES SERVICE
EMITTER DESIGN AND DEVELOPMENT
FEASIBILITY STUDIES
STARTUPS

Subject has 7 vehicles which are used in the running of the business.

	Export to	Percentage
	Brazil, Chile, China, Germany, India, Italy, Russian Federation, United States of America, Switzerland	100%

	Export Terms		Percentage
	90 - 120 days credit facilities
	Cash Against Documents
	Prepayment

	Import from	Percentage
	Belgium, Greece	100%

Import Terms

Percentage

Acceptance credits

90-120 days

Market Territory

	International Presence	100%

Suppliers - Agencies
Company Name	Country	Product	Description
Plastica Kritis	Greece
Ravago Hellas	Greece

Premises

		Type	Headquarters
Address:	9 Fyteion, Limassol, 3056, PoBox 70101, Cyprus
Headquarters comprise of	Offices, Factory, Warehouse
Headquarters are	Owned

		Type	Branch
Country	Bulgaria
Town/City:	Sofia
Street:	Boyan Damyanov
Building No:	7
Postal Code	1784
Branch comprise of	Offices
Branch are	Rented

	Banks
	ETHNIKI TRAPEZA TIS ELLADOS (KYPROU) LIMITED
	15 Archiepiskopou Makariou C' Avenue, Nicosia, 1065, Cyprus
	Comment:	Reportedly, an overdraft facility is available.
	PIRAEUS BANK (CYPRUS) LIMITED
	Cyprus

Affiliates and Subsidiaries	Relation	Country	Year Reg.
LOKI INVEST LIMITED	Parent Company	British Virgin Islands	2010
Road Town, Tortola, British Virgin Islands
DITS DRIP IRRIGATION TECHNOLOGIES SERVICES LIMITED	Affiliated Company	Cyprus

Charges

No	Date registered	Date prepared	Type	Description/No	Amount	Sequence	Beneficiary
1	07/08/2014	14/05/2014	Floating Charge on all Company's Assets		1,500,000.00 EUR	-	National Bank of Greece (Cyprus) Limited
2	21/05/2014	14/05/2014	Floating Charge on all Company's Assets		150,000.00 EUR	-	Piraeus Bank (Cyprus) Ltd
3	24/08/2007	14/08/2007	Floating Charge on all Company's Assets		100,000.00 CYP	-	National Bank of Greece (Cyprus) Limited

	Total Number	Total Amount (EUR)
Floating Charge on all Company's Assets	3	1,820,860.14
TOTAL CHARGES	3	1,820,860.14

Negatives

A check against our revealed that no negative payment incidents against the subject company, such as unpaid bills or bankruptcies exist.

Financial Statement

Corporate financial statement

Balance Sheet

December 2013

December 2012

EUR

FIXED ASSETS
Property, plant and equipment	2,951,818	3,559,538
Intangible assets	7,334
Investment in associates	1	1
Total fixed assets	2,959,153	3,559,539
CURRENT ASSETS
Inventories	962,132	1,071,531
Trade and other receivables	3,485,910	4,974,753
Cash and cash equivalents	5,047,980	198,600
Total current assets	9,496,022	6,244,884
Total assets	12,455,175	9,804,423
CAPITAL AND RESERVES
Share capital	146,574	102,602
Reserves	2,700,276	3,781,429
Other reserves	4,956,028
Total equity	7,802,878	3,884,031
LONG-TERM LIABILITIES
Long-term Borrowings	27,242	1,280,433
Deferred income	29,523	56,558
Long term debt		4,159
Total long-term liabilities	56,765	1,341,150
CURRENT LIABILITIES
Trade and other payables	2,007,566	2,548,852
Current income tax liabilities	149,844	266,113
Deferred Current Income	4,921	8,080
Current Installments	2,383,133	1,642,800
Other Accounts	50,068	113,397
Total Current Liabilities	4,595,532	4,579,242
Total liabilities	4,652,297	5,920,392
Total equity and liabilities	12,455,175	9,804,423

Profit/Loss Account

December 2013

December 2012

EUR

Sales	4,764,960	8,090,708
Cost of goods sold	3,289,801	6,039,768
Gross profit	1,475,159	2,050,940
Other Operating income	18,462	8,080
Selling and distribution expenses	684,554	625,756
Other expenses	18,955	21,289
OPERATING PROFIT/LOSS	790,112	1,411,975
Finance Income	41,632	117,865
Finance costs	270,552	310,568
Profit/Loss before income tax	561,192	1,219,272
Income tax expense	90,834	144,233
Profit/Loss for the year	470,358	1,075,039

Key Ratios

December 2013

December 2012

PROFITABILITY RATIOS
Gross Profit margin on sales	0.31	0.25
Return on assets (ROA)	0.04	0.11
LIQUIDITY RATIOS
Current Ratio	2.07	1.36
TURNOVER RATIOS
Sales to Net Working Capital Ratio	0.97	4.86
Total assets turnover (times)	0.38	0.83

Notes

Please note the following significant changes in the financial statements of 2013 compared to the audited financial statements of 2012:

1. Sales decreased by 41.11%.

2. Cost of sales decreased by 45.54%

3. Gross profit decreased by 28.05%

4. Administrative expenses increased by 9.44%

5. Financial Expenses for 2013 decreased to a total of €270,552 from €310,568 in 2012 (12.9%).

6. Profit before Taxation decreased to €561,192 compared to Profit before Taxation €1,219,272 in 2012.

7. Current ratio increased from 1.36 to 2.07. Acceptable ratio varies from industry to industry. For most industries a ration above 1.5 is considered acceptable.

8. Trade and Other Receivables decreased by 29.94% whereas Trade and Other Payables decreased by 21.23% in 2013.

9. Property, plant and equipment decreased by 17.08%

10. Inventory decreased by 13.54%

11. Cash and cash equivalent in 2013 increased to €5,047,980 compared to €198,600 in 2012.

12. Long-term Borrowings decreased from 1,280,433 to 27,242 (97.87%).

Additional Information

We contacted the company in question, where we talked to a company accounting official, who declined to release any information regarding the Subject and asked for a written questionnaire to be forwarded to the company's directors.

This report contains information obtained from a previous interview with Ms. Maria Michael, company accounting official, in April 2014.

Should any additional information becomes available we will provide you with a revised report as soon as possible.

Please note that the financial statements for the year 2013 were obtained from the Official Companies Registrar.

CYPRUS COUNTRY DEVELOPMENTS:
http://infocreditgroup.com/News/453/en/Cyprus-Country-Development-2015

RISK RATING DEFINITION
RISK RATING DETAILS
Nil Rating
Lack of sufficient data (financial statements outdated or entity is dormant).
N Rating
Recently established company. Unable to provide credit risk rating due to lack of historical data.
X Rating
Entity that has ceased operations (Bankrupted, dissolved, under liquidation, under management control).
Low Risk
Indicates low credit risk and is assigned to companies of exceptional credit quality.
Average Risk
Indicates average credit risk and is assigned to companies of moderate credit quality.
Above Average Risk
Indicates increased credit risk and is assigned to companies of low credit quality.
High Risk
Indicates possibility of very high credit risk and is assigned to companies of very low credit quality.

Methodology Used For Report Preparation
- Perform Searches in:
· The Registrar of Companies and Official Receiver of the Republic of Cyprus.
· In house databases for Detrimental Information for up to 7 years:
· Bankruptcy and Dissolution procedures.
· Unpaid Bills including returned cheques.
· Proprietary databases and global subscription sites.
· Global and local media.
· Internet social networks.
· Relationship/Directorship Search through Local Database.
· Other local databases as deemed appropriate.
- Conduct Interviews with:
· Official(s) / correspondent(s) of the company under review.
· Supplier(s) or other associated entities of the company.
· Other local resources with extensive knowledge of the market.
- Analysis
· Process and analyse all information gathered.
Perform a thorough quality check of the report prior to sending it to the client.

Contact Information


Interview Date:	30/07/2015
Name:	Not Disclosed
Position:	company	Area:	accounting
Title:	official
Declined
Any info
A questionnaire was sent - no reply received

Recent Enquiries

Recent Enquiries on this subject

Last 6 months:

Last 3 months:

Last 1 month:

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.01
UK Pound	1	Rs.99.84
Euro	1	Rs.70.16

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	SDA

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.