MIRA INFORM REPORT

Report No. :	332676
Report Date :	01.08.2015

IDENTIFICATION DETAILS

Name :	INTERALLIS CHEMICALS SA
Registered Office :	Bucharest, 24 Preciziei Street, Building H5, 1st Fllor, Rooms E1-10-B18 and E1-11-B19, Sector 6
Country :	Romania
Financials (as on) :	31.12.2014
Date of Incorporation :	2003
Legal Form :	Joint Stock Company, Entire Foreign Capital
Line of Business :	Wholesale trade with chemical products (NACE -4675)
No. of Employee :	15

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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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. 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. In the aftermath of the global financial crisis, Romania signed on to a $26 billion emergency assistance package from the IMF, the EU, and other international lenders, but GDP contracted until 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, Romanian authorities and the IMF/EU agreed to a follow-on precautionary two-year stand-by agreement, worth $5.4 billion, to continue with reforms, although Bucharest has announced that it does not intend to draw funds under the agreement. Economic growth rebounded in 2013, driven by strong industrial exports and an excellent agricultural harvest, and the current account deficit was reduced substantially. The economy closed out 2014 with 2.8% growth, down from the 3.5% posted in 2013. Industry outperformed other sectors of the economy. Exports remained the engine of economic growth, led by trade with the EU, which accounts for roughly 70% of Romania trade. In 2014, the Government of Romania succeeded in meeting its annual target for the budget deficit, the external deficit remained low, and inflation was the lowest since 1989, allowing a gradual loosening of the monetary policy throughout the year. However, progress on structural reforms has been uneven and the economy still is vulnerable to external shocks. An ageing population, weak domestic demand, tax evasion, and insufficient health-care represent top vulnerabilities.

Source : CIA

COMMERCIAL INFORMATION REPORT

NAME OF THE COMPANY	INTERALLIS CHEMICALS SA former NEOCHIMIKI ROMANIA SA
Address	Bucharest, 24 Preciziei Street, Building H5, 1st Fllor, Rooms E1-10-B18 and E1-11-B19, Sector 6
Phone no. Cell phone no.	0040-21-2009420/ 2501125/ 3373711 0040- 721 337869/ 723 363031/ 723 363045/ 724 377736	Fax no.	0040-21-2501125
Web-site	www.interallis.com	E-mail address	romania@interallis.com

HISTORIC/OFFICIAL DATA

Date of foundation	2003
Present legal form	Joint Stock Company, Entire Foreign Capital
Registered with the Trade Registry	Actual J40/7268/2013 former: J23/3178/2010 former: J40/19987/2006 former: J40/1872/2004 former: J40/581/2003
VAT no.	15134701
Registered capital	344,250 RON
	Legal persons
	1. INTERALLIS HOLDING II LIMITED – Cypriot legal person
	Address: Cyprus, 1066 Nicosia, 15 Themistokli Dervi Street, Margarita House, 5th Floor, Ap. 502
	Participation					99.9%%
	2. INTERALLIS HOLDING I LIMITED – Cypriot legal person
	Address: Cyprus, 1066 Nicosia, 15 Themistokli Dervi Street, Margarita House, 5th Floor, Ap. 502
	Participation					0.1%
Obligation to publish	According to the Romanian Financial Legislation, subject company is obliged to lodge with the Ministry of Public Finance its yearly accounts
EMPLOYEES	2010		2011		2012			2013		2014
total	13		18		15			17		15
BUSINESS ACTIVITY Officially registered with the National Trade Registry updated files and confirmed with the company’s web site - wholesale trade with chemical products (NACE -4675) Subject company is part of the international group of companies “Interallis” According to its web site: “Interallis is an international chemical distributor Group, with Headquarters in Nicosia, Cyprus. Core activity of Interallis is the distribution of chemicals, representing leading producers, across South East Europe.” Work-shops: 0
OTHER PARTICIPATION
1. Company’s participation	Not applicable
2. Shareholders other participation	Not applicable
REAL ESTATE (RON)
	2010	2011		2012			2013		2014
- lands & buildings	0	0		0			0		0
- equipment	n/a	21,742		14,175,632			15,278,385		11,051,772
BANKS	CREDIT AGRICOLE BANK
MANAGEMENT as officially registered with the National Trade Registry	Administrator Musat Maria Adina – Romanian citizen, born on 22-01-1972 Appointed on 17.05.2010 , Expiration date of mandate: 28.04.2018
CURRENCY Exchange rate of EURO	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 = 4.4821 RON on 31.12.2014

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2011	31.12.2012	31.12.2013	31.12.2014
INTANGIBLES - TOTAL	836	7,669,381	7,453,558	7,085,500
TANGIBLES - TOTAL	21,742	3,669,304	4,287,325	2,434,868
FINANCIALS - TOTAL	54,203	0	0	0
FIXED ASSETS - TOTAL	76,781	344,250	344,250	344,250
STOCKS - TOTAL	3,177,671	5,321,451	5,937,073	2,287,902
CLAIMS - TOTAL	7,890,967	7,669,381	7,453,558	7,085,500
CURRENT ASSETS	13,072,107	13,583,232	14,334,508	10,212,587
PREPAID EXPENSES	4,299	9,877,222	10,227,949	10,667,258
DEBTS WITHIN 1 YEAR	4,282,407	3,669,304	4,287,325	2,434,868
DEBTS OVER 1 YEAR	0	94,367	65,244	32,202
PROVISIONS	0	152,621	0	172,249
ADVANCED INCOMES	N/A	N/A	N/A	N/A
REGISTERED CAPITAL	344,250	344,250	344,250	344,250
RESERVES from reassessment of the fixed assets	0	N/A	N/A	N/A
RESERVES	78,133	N/A	N/A	N/A
PROFITS/LOSSES CARRIED FORWARD	8,857,843	N/A	N/A	N/A
NET RESULT - PROFIT	0	1,006442	350,727	439,310
NET RESULT - LOSS	409,446	0	0	0
NET WORTH	8,870,780	9,877,222	10,227,949	10,667,258
PROFIT & LOSS ACCOUNT	31.12.2011	31.12.2012	31.12.2013	31.12.2014
Turnover	33,054,430	30,305,343	29,469,508	34,754,037
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	33,066,569	31,877,161	29,771,049	35,109,552
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	33,489,339	30,809,254	29,398,148	34,445,733
ORDINARY OPERATING RESULT - PROFIT	0	1,067,907	372,901	663,819
ORDINARY OPERATING RESULT - LOSS	422,770	0	0	0
FINANCIAL INCOMES	512,598	338,053	615,650	307,913
FINANCIAL COSTS	499,274	399,518	637,824	532,422
FINANCIAL RESULT - PROFIT	13,324	0	0	0
FINANCIAL RESULT - LOSS	0	61,465	22,174	224,509
CURRENT RESULT - PROFIT	0	1,006,442	350,727	439,310
CURRENT RESULT - LOSS	409,446	0	0	0
Extraordinary incomes	0	0	0	0
Extraordinary costs	0	0	0	0
EXTRAORDINARY RESULT - PROFIT	0	0	0	0
EXTRAORDINARY RESULT - LOSS	0	0	0	0
TOTAL INCOMES	33,579,167	32,215,214	30,386,699	35,417,465
TOTAL COSTS	33,988,613	31,208,772	30,035,972	34,978,155
PRETAX RESULT - PROFIT	0	1,006,442	350,727	439,310
PRETAX RESULT - LOSS	409,446	0	0	0
TAX ON PROFIT	0	0	0	0
NET RESULT - PROFIT	0	1,006,442	350,727	439,310
NET RESULT - LOSS	409,446	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 31.12.2014. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 31.12.2014

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

Size

small, considering the number of employees

Position & trend

Large volume of activity, with variable, even generally very low returns. In 2014 compared to 2013 both, turnover and gross profit got increased with 18% (in EURO) and, respectively with 25% (in EURO).

Liquidity is rich and solvability is in very good conditions.

Insignificant delays in payments were reported, representing 0.44% from the level of turnover and 6.32% from short term debts.

Financial standing is satisfactory.

Business contacts are feasible and credit facilities are suitable.

31.12.2010

31.12.2011

31.12.2012

31.12.2013

31.12.2014

Turnover

RON

32,688,528

33,054,430

30,305,343

29,469,508

34,754,037

EURO

7,628,951

7,652,020

6,842,943

6,571,121

7,753,963

Gross profit

RON

551,132

-409,446

1,006,442

350,727

439,310

EURO

128,625

-94,786

227,254

78,205

98,014

Net profit

RON

534,632

-409,446

1,006,442

350,727

439,310

EURO

124,774

-94,786

227,254

78,205

98,014

31.12.2014

CREDITS & LOANS (ACTIVE BALANCE)

N/A

BALANCE CLAIMS-DEBTS

positive

Total claims, no further details available

7,085,500

Total debts

2,467,070

- Short term, no further details available

2,434,868

- Medium term, no further details available

32,202

PAYMENTS BEHAVIOR

Insignificant delays

Total overdue of 0.44% of turnover (6.32% from total short term debts)

153,815

To suppliers, over 1 year

153,815

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

no incidents between : no incidents between 11.07.2011-11.07.2012

FINANCIAL STRENGTH

4,115,000 EURO

FIRM’S RATING

D

RISK CATEGORY

above normal

BUSINESS RELATIONS

permissible

Applies to short term credit facilities and should not be construed as a maximum credit limit, which can be only established by the supplier. The credit limit has been set using a formula which takes into consideration the credit rating, and the latest behavioral and financial performances. Other information may of course influence the size of the credit you may grant.

2010

2011

2012

2013

2014

Rich

Liquidity analysis

- current ratio

3.76

3.05

3.70

3.34

4.19

- quick ratio

2.74

2.31

2.25

1.96

3.25

Solvability analysis

constant very good

- the borrowing ratio (total debts/net worth)

0.35

0.48

0.38

0.43

0.23

Profitability analysis (%)

Fluctuant; generally very lowy

- return on capital

5.76

losses

10.19

3.43

4.12

- return on assets

4.24

losses

7.30

2.41

3.30

- gross profit margin

1.68

losses

3.32

1.19

1.26

Activity analysis

settlements with debtors stand normal in the last year

- debtor’s days

79

87

92

92

74

- creditor’s days:

20

33

n/a

n/a

n/a

Stocks turnover, times/year

10

10

6

5

15

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 :	RAS
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%)

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.