MIRA INFORM REPORT

Report No. :	331546.2
Report Date :	14.08.2015

IDENTIFICATION DETAILS

Name :	AK ALROSA (OAO)

Registered Office :	Ul Lenina d 6, 678170 G Mirnyy

Country :	Russia

Financials (as on) :	31.03.2015

Date of Incorporation :	13.08.1992

Com. Reg. No.:	1021400967092

Legal Form :	Public Limited Company

LINE OF BUSINESS :	· GROWING OF CEREALS AND OTHER CROPS · FARMING OF ANIMALS · FARMING OF CATTLE · FARMING OF POULTRY · DIAMOND PRODUCTS

No. of Employees :	31117 [2013]

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good

Payment Behaviour :	Regular

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)

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. In 2014, economic growth declined further when Russia forcibly violated Ukraine’s sovereignty and territorial integrity, and interfered in Ukraine’s internal affairs. In the second half of 2014, the Russian ruble lost about half of its value, contributing to increased capital outflows that reached $151.5 billion for the year; the ruble remains volatile. Declining oil prices, lack of economic reforms, and the imposition of foreign sanctions have contributed to the downturn and created wide expectations the economy will continue to slump. In April 2015, the Russian Ministry of Economic Development predicted that the Russia’s economy will contract by 3% in 2015, and average only 2.5% growth through 2030.

Source : CIA

Company name & address

AK "ALROSA" (OAO)
Ul Lenina d 6,
678170 g Mirnyy
Tel: 74113622550
Tel: 74113690021
Telefax: 74113630451
E-Mail: info@alrosa.ru
Web: www.alrosa.ru

Company summary

Business connection

Business connection and credit are supported.

(11)

Established on

13/08/1992 - Public limited company (OAO)

Registered on

17/07/2002, Mezhrayonnaya inspektsiya Ministerstva Rossiyskoy Federatsii po nalogam i sboram №1 po Respublike Sakha (YAkutiya) (Strukturnoe podrazdelenie,

Reg Nr.: 1021400967092

Tax number: 1433000147

Statistical number: 23308410

Registered capital		RUB	3 682 482 815,-
Stockholders	Rosimushchestvo NIKOLSKIY PER D 9, 109012 G MOSKVA	%	43,92

	MIiZO RS(YA) UL AMMOSOVA D 8, 677000 G YAKUTSK	%	25
	Administratsiya MO "Mirninskiy rayon" RS (YA) ul Lenina d 16, 678170 g Mirnyy	%	1

	Administratsiya MR "Vilyuyskiy ulus (rayon)" RS(YA) ul Lenina d 49, 678200 g Vilyuysk	%	1
	ADMINISTRATSIYA MR "SUNTARSKIY ULUS (RAYON)" UL LENINA D 26, 678290 S SUNTAR	%	0,99

	Administratsiya MR "Verkhnevilyuyskiy ulus (rayon)" UL GEROYA VASILEVA D 2, 678230 S VERKHNEVILYUYSK	%	0,99
	ADMINISTRATSIYA MUNITSIPALNOGO OBRAZOVANIYA "LENSKIY RAYON" ul Lenina d 65, 678144 g Lensk	%	0,99

	Administratsiya Nyurbinskogo rayona UL LENINA D 31, 678450 G NYURBA	%	0,99
	MO "Anabarskiy natsionalnyy ulus" UL OKTYABRSKAYA D 10, 678440 S SASKYLAKH	%	0,99

	Naslezhnaya administratsiya MO "Olenekskiy natsnasleg" UL OKTYABRSKAYA D 20, 678480 S OLENEK	%	0,99
Board of directors	Andrey Vladimirovich SHaronov Member of the board of directors

	Denis Stanislavovich Morozov Member of the board of directors
	Fedor Borisovich Andreev Member of the board of directors

	Igor Arnoldovich Lozhevskiy Member of the board of directors
	Ilya Arturovich YUzhanov Managing committee chairman

	Ivan Kirillovich Demyanov Member of the board of directors
	Nadezhda Egorovna Kononova Member of the board of directors

	Nina Antoninovna Osipova Member of the board of directors
	Oleg Romanovich Fedorov Member of the board of directors

	Sergey Konstantinovich Dubinin Member of the board of directors
	Sergey Vasilevich Mestnikov Member of the board of directors

	Spartak Grigorevich Illarionov Member of the board of directors
	Valentina Ilinichna Kondrateva Member of the board of directors

Management	Dmitriy Petrovich Zakharov Member of the board of directors
	Natalya Filippova Gureva Member of the board of directors

	Pavel Andreevich Borodin Member of the board of directors
	Sergey Vladimirovich Barsukov Member of the board of directors

	YAkov Moiseevich Urinson Member of the board of directors
Sole Executive Body	Andrey Vyacheslavovich ZHarkov President

General data	Main activity: Other mining and quarrying n.e.c.	(14.50.22)
	Full name: Aktsionernaya kompaniya "ALROSA" (OAO)

	Short name: AK "ALROSA" (OAO)

	Residence address: ul Lenina d 6, 678170 g Mirnyy Tel: 74113690021 74113622550 Telefax: 74113630451 E-Mail: info@alrosa.ru Web: www.alrosa.ru
	Representative office: 1-7 Kazachiy pereulok d. 10/12, 119017 g. Moskva Tel: 74956209250 Telefax: 74954117515

	ul. Ammosova d. 8, 677018 g. YAkutsk Tel: 74112421815 Telefax: 74112423378 E-Mail: yakpredst@sakha.ru
	ul. Maksima Gorkogo d. 24, 302028 g. Orel Tel: 74862437113 Telefax: 74862437113 E-Mail: ak-alrosa@orel.ru

	Nevskiy pr-kt d. 128, liter A, 193036 g. Sankt-Peterburg Tel: 78127175965 Telefax: 78127172957
	Address of the company premises: Alameda Principe Real 31/33, Luanda Tel: 244222449391 Telefax: 244222445609 E-Mail: aaluanda@alrosa.ru

	352831 Krasnodarskiy kray, selo Nebug
	140160 Moskovskaya oblast, g. ZHukovskiy

Other activities
	:

	Growing of cereals and other crops n.e.c.	(01.11.6)
	Farming of animals	(01.2)

	Farming of cattle	(01.21)
	Farming of poultry	(01.24)

	Hunting	(01.50)
	Fishing	(05.01.2)

	Extraction of crude petroleum and natural gas	(11.10)
	Manufacture of refined petroleum products	(23.20)

	Manufacture of jewellery and related articles n.e.c.	(36.22)
	Manufacture of jewellery and related articles n.e.c.	(36.22.3)

	Production and distribution of electricity	(40.10.2)
	Production and distribution of electricity	(40.10.3)

	Production and distribution of electricity	(40.10.5)
	Steam and hot water supply	(40.30.14)

	Steam and hot water supply	(40.30.2)
	Steam and hot water supply	(40.30.3)

	Steam and hot water supply	(40.30.4)
	Steam and hot water supply	(40.30.5)

	Collection	(41.00)
	General construction of buildings and civil engineering works	(45.21)

	Wholesale of other household goods	(51.47.34)
	Wholesale of other intermediate products	(51.56.3)

	Other retail sale in non-specialized stores	(52.12)
	Other retail sale of food	(52.27.36)

	Other retail sale in specialized stores	(52.48.2)
	Other provision of lodgings n.e.c.	(55.23.1)

	Other provision of lodgings n.e.c.	(55.23.2)
	Other land passenger transport	(60.23)

	Freight transport by road	(60.24)
	Transport via pipelines	(60.30)

	Inland water transport	(61.20)
	Scheduled air transport	(62.10)

	Cargo handling	(63.11)
	Activities of travel agencies and tour operators; tourist assistance activities n.e.c.	(63.30.1)

	Administration of financial markets	(67.11.19)
	Letting of own property	(70.20.2)

	Renting of personal and household goods n.e.c.	(71.40.4)
	Research and experimental development on natural sciences and engineering	(73.10)

	Architectural and engineering activities and related technical consultancy	(74.20.3)
	Primary education	(80.10.1)

	Primary education	(80.10.3)
	Driving school activities	(80.41.1)

	Adult and other education n.e.c.	(80.42)
	Hospital activities	(85.11.2)

	Sewage and refuse disposal	(90.00.1)
	Motion picture and video activities	(92.1)

	Artistic and literary creation and interpretation	(92.31.21)
	Library	(92.5)

	Sporting activities	(92.6)
	Other recreational activities n.e.c.	(92.72)

Annual turnover	31/12/2006	Enterprise turnover	RUB	75 847 320 000,-
	31/12/2007	Enterprise turnover	RUB	71 894 396 000,-

	31/12/2008	Enterprise turnover	RUB	73 985 812 000,-
	31/12/2009	Enterprise turnover	RUB	63 849 137 000,-

	31/12/2010	Enterprise turnover	RUB	96 820 391 000,-
	31/12/2011	Enterprise turnover	RUB	117 783 576 000,-

	31/12/2013	Enterprise turnover	RUB	138 224 691 000,-
	31/12/2014	Enterprise turnover	RUB	159 174 480 000,-

Events, negative data	10.03.2015 - Legal debt collection procedure Remark: A58-732/2015 (in process)
	03.04.2015 - Legal debt collection procedure Remark: A58-1614/2015 (in process)

Remarks

AK "ALROSA" (OAO) is a parent company of Group of companies "Alrosa", specializing in diamond production.
As of 1 January 2015, stocks of the company, approved by the State Reserves Commission, up 1.158 million carats. According to expert estimates, it is about one-third of total world reserves.
According to the available information, AK "ALROSA" (OAO) has currently over 300 licenses for carrying out activities such as exploration and mining; construction and operation of underground structures; geological studies; water use; activity on manufacturing and repair of measuring instruments; inland water transport services.
It should be noted, that the register of shareholders of the company is held by a private non-state registrar. Due to this fact information about shareholders of company is closed and is not updated in Common State Register. List of shareholders of AK "ALROSA" (OAO) provided in this report was formed according to official information from Federal State Statistics Service disclosed by 31 March, 2015.
The affiliation of the company with other legal entities was revealed through the President of AK "ALROSA" (OAO), Andrey Vyacheslavovich Zharkov:
OOО "TSENTRSTROIREKONSTRUKTSIYA" – OGRN: 771405817477; g Moskva- active legal entity. Andrey Vyacheslavovich Zharkov was previously the managing director and sole owner 100% of this company;
OOО "VETMASTER" – OGRN: 1047796812238; g Moskva –non-active since 29 September, 2014. Andrey Vyacheslavovich Zharkov was previously the owner of 31% of share capital of this company;
IP Zharkov Andrey Vyacheslavovich- OGRN: 307770000243909; g Moskva- non-active since 21 March, 2012.
In 2013-2015 AK "ALROSA" (OAO) participated in more than 175 court cases as a claimant; following sum of debt have been declared for collection:
In 2015: 18 762 131 RUB;
In 2014: 121 290 100 RUB;
In 2013: 202 638 271 RUB.
The company had numerous state contracts:
In 2015 - 236 state contracts for the total sum 155 023 879 RUB;
In 2014 - 195 state contracts for the total sum 913 145 314 RUB;
In 2013 - 321 state contracts for the total sum 397 170 175 RUB.
According to information, disclosed by the Federal Tax Service AK "ALROSA" (OAO) 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, AK "ALROSA" (OAO) does not have delays in social payments.
According to information, disclosed by the Federal Labor Service, AK "ALROSA" (OAO) does not plan to attract foreign employees.
AK "ALROSA" (OAO) is not in the list of default debtors, the Register of unfair suppliers, the blacklist of Russian companies.
The management of the company is not in the list of default debtors, the register of disqualified persons, the blacklist of Russian Private Persons

Bank relations

MAK-BANK:
Central address: RU MOSKVA, UL.B.YAKIMANKA,23
Account number: 40702810000010000058

OAO BANK VTB:
Central address: RU MOSKVA, UL.KUZNETSKIY MOST,16
Account number: 40702810400060000066

ZAO YUNIKREDIT BANK:
Central address: RU MOSKVA, PRECHISTENSKAYA NAB.,9
Account number: 40702810100010165017

FILIAL KIT FINANS INVEST. BANK:
Central address: RU MOSKVA, UL.B.NIKITSKAYA,17/2
Account number: 40702810201000000001

ALFA-BANK:
Central address: RU MOSKVA, UL.KALANCHEVSKAYA,27
Account number: 40702810400000008607

A. 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).
B. The enclosed balance of 2014 is originated from official source, no data available about authentication. (31.12.2014 - 1000 rub) - warning! The figures stated in the balance sheet may contain error(s).

Financials statements

Balance	A 31.12.2013	B 31.12.2014	C
1. ASSETS
I. FIXED ASSETS
Intangible assets	91 272	66 066
The results of research and development	137 587	139 612
Intangible research assets	1 181 774	2 157 332
Tangible research assets	475 861	88 439
Fixed assets	184 260 356	195 338 191
Profitable investments in tangible assets	745 808	731 566
Financial investments	119 736 218	139 935 180
Deferred tax assets	2 800 396	3 712 751
Other non-current assets	2 999 054	5 241 666
TOTAL IN SECTION I.	312 428 326	347 410 803
II. CURRENT ASSETS
Inventories	39 592 762	44 503 558
VAT on acquired assets	817 369	768 133
Accounts receivable	16 458 447	16 795 421
Financial investments (excluding the monetary equivalent)	48 068 843	77 264 905
Cash and monetary equivalents	4 560 277	14 165 526
Other current assets	28 314	83 568
TOTAL IN SECTION II.	109 526 012	153 581 111
BALANCE	421 954 338	500 991 914
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	3 682 483	3 682 483
Treasury stock	0	0
Revaluation of fixed assets	7 781 980	7 405 140
Additional capital (without revaluation)	50 039 070	50 041 284
Reserve capital	736 500	736 500
Retained earnings (uncovered loss)	175 157 446	188 154 782
TOTAL IN SECTION III.	237 397 479	250 020 189
IV. LONG-TERM LIABILITIES
Borrowed funds	81 738 603	175 807 500
Deferred tax liabilities	22 778 392	27 100 431
Provisions	7 105 262	5 815 674
Other liabilities	0	0
TOTAL IN SECTION IV.	111 622 257	208 723 605
V. SHORT-TERM LIABILITIES
Borrowed funds	54 316 063	21 331 607
Payables	12 307 730	13 344 608
Deferred income	22 182	6 850
Provisions	6 067 959	7 541 416
Sonstige Verbindlichkeiten	220 668	23 639
TOTAL IN SECTION V.	72 934 602	42 248 120
BALANCE	421 954 338	500 991 914
A. The enclosed profit and loss account of 2013 is originated from official source, no data available about authentication. (31.12.2013 - 1000 RUB) B. The enclosed profit and loss account of 2014 is originated from official source, no data available about authentication. (31.12.2014 - 1000 RUB)

Profit and loss account	A 31.12.2013	B 31.12.2014	C
Turnover	138 224 691	159 174 480
Cost of sales	62 504 376	63 052 301
Gross profit (loss)	75 720 315	96 122 179
Selling expenses	7 422 337	10 494 273
Administrative expenses	15 130 951	17 758 426
Sales profit (loss)	53 167 027	67 869 480
Earnings from other entities	8 655 390	6 259 387
Interest receivable	1 983 157	3 426 051
Interest payable	7 804 955	9 253 287
Other operating income	13 354 508	27 166 921
Other operating expenses	26 249 480	64 985 943
Profit (loss) before tax	43 105 647	30 482 609
Current profit tax	-7 461 149	-3 034 315
Permanent tax liabilities (assets)	-1 561 656	-2 051 898
Change in deferred tax liabilities	-1 621 872	-4 322 039
Change in deferred tax assets	113 638	912 355
Different	386 263	-569 443
Net profit (loss)	34 522 527	23 469 167
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	200	2 214
Total financial result for period	34 522 727	23 471 381
A. The enclosed balance of 2015 is originated from official source, no data available about authentication. (31.03.2015 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).

Balance	A 31.03.2015	B	C
1. ASSETS
I. FIXED ASSETS
Intangible assets	72 318
The results of research and development	136 125
Intangible research assets	2 520 833
Tangible research assets	169 665
Fixed assets	197 725 802
Profitable investments in tangible assets	728 035
Financial investments	140 104 746
Deferred tax assets	3 618 316
Other non-current assets	5 315 282
TOTAL IN SECTION I.	350 391 122
II. CURRENT ASSETS
Inventories	43 926 356
VAT on acquired assets	768 302
Accounts receivable	12 456 944
Financial investments (excluding the monetary equivalent)	103 840 009
Cash and monetary equivalents	21 586 704
Other current assets	592 557
TOTAL IN SECTION II.	183 170 872
BALANCE	533 561 994
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	3 682 483
Treasury stock	0
Revaluation of fixed assets	7 372 967
Additional capital (without revaluation)	50 041 137
Reserve capital	736 500
Retained earnings (uncovered loss)	205 892 927
TOTAL IN SECTION III.	267 726 014
IV. LONG-TERM LIABILITIES
Borrowed funds	182 700 937
Deferred tax liabilities	27 019 884
Provisions	5 809 672
Other liabilities	0
TOTAL IN SECTION IV.	215 530 493
V. SHORT-TERM LIABILITIES
Borrowed funds	22 848 738
Payables	19 711 243
Deferred income	6 850
Provisions	7 716 874
Sonstige Verbindlichkeiten	21 782
TOTAL IN SECTION V.	50 305 487
BALANCE	533 561 994
A. The enclosed profit and loss account of 2015 is the company's own report, no data available about authentication. (31.03.2015 - 1000 RUB)

Profit and loss account	A 31.03.2015	B	C
Turnover	61 639 138
Cost of sales	18 332 774
Gross profit (loss)	43 306 364
Selling expenses	4 472 951
Administrative expenses	6 868 185
Sales profit (loss)	31 965 228
Earnings from other entities	362
Interest receivable	1 404 806
Interest payable	3 409 965
Other operating income	1 213 472
Other operating expenses	8 203 007
Profit (loss) before tax	22 970 896
Current profit tax	-5 043 953
Permanent tax liabilities (assets)	-503 950
Change in deferred tax liabilities	146 980
Change in deferred tax assets	-94 435
Different	-273 517
Net profit (loss)	17 705 971
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	2 067
Total financial result for period	17 708 038

Ratios		2013	2014
	Current ratio	1,5	3,64

	Quick ratio	0,96	2,58
	Average Collection Period	n/a	38,13

	Payables turnover Period	n/a	74,25
	Debt ratio	0,44	0,5

	Equity to total assets ratio	0,56	0,5
	Funding ratio	1,29	1

	Return on sales	24,98	14,74
	Return on Assets	n/a	5,09

Return on Equity

n/a

9,63

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.92
UK Pound	1	Rs.101.44
Euro	1	Rs.72.26

INFORMATION DETAILS

Analysis Done by :	DIV

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.

MIRA INFORM REPORT

Company name & address

Company summary

Financials statements

Unit