MIRA INFORM REPORT

Report No. :	351973
Report Date :	02.12.2015

IDENTIFICATION DETAILS

Name :	OAO "VOLZHSKIY ABRAZIVNYY ZAVOD"

Registered Office :	Ul 6 Avtodoroga D 18, 404130 Volgogradskaya oblast, G Volzhskiy

Country :	Russia

Financials (as on) :	30.09.2015

Date of Incorporation :	16.05.2002

Legal Form :	Public limited company

Line of Business :	Production of abrasive products. Manufacture of wooden containers Manufacture of games and toys Wholesale of wood

No. of Employee :	1582

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

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 and address

OAO "VOLZHSKIY ABRAZIVNYY ZAVOD"

ul 6 Avtodoroga d 18,
404130 Volgogradskaya oblast, g Volzhskiy

Tel: 78443410433
Telefax: 78443410451
E-Mail: abraziv@vabz.ru
Web: www.vabz.ru

Company summary

Company development

Positive company development.

Business course	Good order situation.
Terms of payment	As far as know, punctually.

Business connection

Business connection and credit are permissible.

Established on	16/05/2002 - Public limited company (OAO)
Registered on	17/12/2002, Inspektsiya Ministerstva Rossiyskoy Federatsii po nalogam i sboram po gorodu Volzhskomu Volgogradskoy oblasti, RegNr.: 1023402019596 Tax number: 3435000467 Statistical number: 00220931

Registered capital		RUB	3 601 200,-
Stockholders	CUMI INTERNATIONAL LIMITED	%	93,0735

Board of directors	Anantaseshan Narayanan Member of the board of directors
	Mutiya Muragappan Murugappan Managing committee chairman

	Mutiya Mutiya Member of the board of directors
	Rangaradzhan SHridkharan Member of the board of directors

	Sergey Leonovich Petrosyan Member of the board of directors
	Sergey Vyacheslavovich Kostrov Member of the board of directors

	SHrinivasan Krishnasvami Member of the board of directors
Sole Executive Body	Sergey Vyacheslavovich Kostrov Managing director

General data	Main activity: Production of abrasive products
	Full name: Otkrytoe aktsionernoe obshchestvo "Volzhskiy abrazivnyy zavod"

	Short name: OAO "Volzhskiy abrazivnyy zavod"

	Residence address: ul 6 Avtodoroga d 18, 404130 Volgogradskaya oblast, g Volzhskiy Tel: 78443411012 78443410433 Telefax: 78443410451 E-Mail: abraziv@vabz.ru Web: www.vabz.ru
	The main activity of OAO “Volzhsky abrazivny zavod” is production of abrasive tools.

Other activities
	:

	Manufacture of wooden containers
	Manufacture of games and toys

	Wholesale of wood
	Other wholesale trade

	Retail sale in non-specialized stores with food
	Other retail sale in specialized stores

	Other retail sale in specialized stores
	Other provision of lodgings n.e.c.

	Other provision of lodgings n.e.c.
	Canteens

	Management of real estate on a fee or contract basis
	Primary education

	Adult and other education n.e.c.
	Hospital activities

Annual turnover	31/12/2006	Enterprise turnover	RUB	1 474 168 000,-
	31/12/2007	Enterprise turnover	RUB	1 693 268 000,-

	31/12/2008	Enterprise turnover	RUB	2 068 528 000,-
	31/12/2009	Enterprise turnover	RUB	2 070 365 000,-

	31/12/2010	Enterprise turnover	RUB	2 736 195 000,-
	31/12/2011	Enterprise turnover	RUB	3 387 910 000,-

	31/12/2012	Enterprise turnover	RUB	3 093 653 000,-
	31/12/2013	Enterprise turnover	RUB	3 131 563 000,-

	31/12/2014	Enterprise turnover	RUB	3 262 750 000,-
Employee	31/12/2014			1582
Remarks	OAO “Volzhsky abrazivny zavod” has the following licenses: VKH-39-013953 - Operation of explosion-hazardous production facilities – Unlimited; VLG 00646 TE – Medical activity – Unlimited; LO-34-01-001431 – Medical activity – Unlimited; Since 27.05.2011 the register of shareholders of OAO “Volzhsky abrazivny zavod” is held by a private non-state registrar: ZAO “REGISTRATSIONNO DEPOZITARNY TSENR “PARITET” – Reg. num.: 1027700534806. The information about shareholders is closed. List of shareholders provided in the report was formed according to the information from last published official “List of affiliated persons” of the company of 30.09.2015. According to the research, affiliation through the director of OAO “Volzhsky abrazivny zavod”, Sergey Vyacheslavovich Kostrov, with other legal persons has not been revealed. OAO “Volzhsky abrazivny zavod” participated in court cases as claimant and collected: In 2015: 8 795 334, 55 RUB; In 2014: 2 046 261, 22 RUB; In 2013: 170 353, 69 RUB. The company had state contracts for the total sum: In 2013: 2 417 772 RUB; In 2012: 691 286 RUB. According to the information, disclosed by the Federal Tax Service, OAO “Volzhsky abrazivny zavod” does not have tax arrears, the company is not going to be excluded from the state register as non-active. According to the information, disclosed by the Pension Fund of Russian Federation, OAO “Volzhsky abrazivny zavod” does not have delays in social payments. According to the information, disclosed by the Federal Labor Service, OAO “Volzhsky abrazivny zavod” does not plan to attract foreign employees. According to the research, OAO “Volzhsky abrazivny zavod” does not meet the most frequently encountered in practice characteristics of unreliable companies (so-called “shell” companies), developed by the Federal Tax Service of Russian Federation. OAO “Volzhsky abrazivny zavod” 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

F-L GPB (OAO) V G.VOLGOGRADE:
Central address: RU VOLGOGRAD, UL.KOZLOVSKAYA,34A
Account number: 40702810300100001235

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).

Financial statement

BALANCE	A 31.12.2013	B 31.12.2014	C
1. ASSETS
I. FIXED ASSETS
Intangible assets	605	968
The results of research and development	0	0
Intangible research assets	0	0
Tangible research assets	0	0
Fixed assets	742 785	771 977
Profitable investments in tangible assets	0	0
Financial investments	101	76
Deferred tax assets	5 994	7 195
Other non-current assets	15 725	14 981
TOTAL IN SECTION I.	765 210	795 197
II. CURRENT ASSETS
Inventories	709 012	728 523
VAT on acquired assets	50 018	34 547
Accounts receivable	478 329	566 734
Financial investments (excluding the monetary equivalent)	0	0
Cash and monetary equivalents	118 511	208 533
Other current assets	4 236	9 003
TOTAL IN SECTION II.	1 360 106	1 547 340
BALANCE	2 125 316	2 342 537
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	3 601	3 601
Treasury stock	0	0
Revaluation of fixed assets	0	0
Additional capital (without revaluation)	211 762	211 762
Reserve capital	600	600
Retained earnings (uncovered loss)	1 705 556	1 899 287
TOTAL IN SECTION III.	1 921 519	2 115 250
IV. LONG-TERM LIABILITIES
Borrowed funds	0	0
Deferred tax liabilities	41 496	39 688
Provisions	0	0
Other liabilities	0	0
TOTAL IN SECTION IV.	41 496	39 688
V. SHORT-TERM LIABILITIES
Borrowed funds	0	0
Payables	158 896	168 503
Deferred income	0	0
Provisions	3 405	19 096
Sonstige Verbindlichkeiten	0	0
TOTAL IN SECTION V.	162 301	187 599
BALANCE	2 125 316	2 342 537
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	3 131 563	3 262 750
Cost of sales	2 461 057	2 595 616
Gross profit (loss)	670 506	667 134
Selling expenses	196 846	192 142
Administrative expenses	0	0
Sales profit (loss)	473 660	474 992
Earnings from other entities	0	0
Interest receivable	4 440	6 189
Interest payable	60	2
Other operating income	112 100	195 057
Other operating expenses	173 495	223 295
Profit (loss) before tax	416 645	452 941
Current profit tax	85 523	100 425
Permanent tax liabilities (assets)	12 547	6 828
Change in deferred tax liabilities	13 879	-1 808
Change in deferred tax assets	3 526	1 201
Different	-12	0
Net profit (loss)	320 781	355 525
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	-168 887	-161 794
Total financial result for period	151 894	193 731
The enclosed balance of 2015 is originated from official source, no data available about authentication. (30.09.2015 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).

BALANCE	A 30.09.2015	B	C
1. ASSETS
I. FIXED ASSETS
Intangible assets	985
The results of research and development	0
Intangible research assets	0
Tangible research assets	0
Fixed assets	892 397
Profitable investments in tangible assets	0
Financial investments	71
Deferred tax assets	30 556
Other non-current assets	29 621
TOTAL IN SECTION I.	953 630
II. CURRENT ASSETS
Inventories	586 591
VAT on acquired assets	47 530
Accounts receivable	786 136
Financial investments (excluding the monetary equivalent)	0
Cash and monetary equivalents	350 497
Other current assets	18 977
TOTAL IN SECTION II.	1 789 731
BALANCE	2 743 361
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	3 601
Treasury stock	0
Revaluation of fixed assets	0
Additional capital (without revaluation)	193 926
Reserve capital	600
Retained earnings (uncovered loss)	2 239 823
TOTAL IN SECTION III.	2 437 950
IV. LONG-TERM LIABILITIES
Borrowed funds	0
Deferred tax liabilities	42 376
Provisions	0
Other liabilities	0
TOTAL IN SECTION IV.	42 376
V. SHORT-TERM LIABILITIES
Borrowed funds	0
Payables	162 561
Deferred income	0
Provisions	100 474
Sonstige Verbindlichkeiten	0
TOTAL IN SECTION V.	263 035
BALANCE	2 743 361
The enclosed profit and loss account of 2015 is originated from official source, no data available about authentication. (30.09.2015 - 1000 RUB)

PROFIT AND LOSS ACCOUNT	A 30.09.2015	B	C
Turnover	3 137 802
Cost of sales	1 975 476
Gross profit (loss)	1 162 326
Selling expenses	188 209
Administrative expenses	285 217
Sales profit (loss)	688 900
Earnings from other entities	0
Interest receivable	22 384
Interest payable	0
Other operating income	300 644
Other operating expenses	364 623
Profit (loss) before tax	647 305
Current profit tax	-167 375
Permanent tax liabilities (assets)	17 241
Change in deferred tax liabilities	-2 688
Change in deferred tax assets	23 361
Different	0
Net profit (loss)	500 603
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	-160 067
Total financial result for period	340 536

RATIOS		2012	2013	2014
	Current ratio	7,13	8,38	8,25

	Quick ratio	3,41	4,01	4,36
	Average Collection Period	51,84	50,02	58,45

	Payables turnover Period	24,46	24,13	23,02
	Debt ratio	0,1	0,1	0,1

	Equity to total assets ratio	0,9	0,9	0,9
	Funding ratio	8,61	9,43	9,31

	Return on sales	10,12	10,24	10,9
	Return on Assets	16,68	15,65	15,91

Return on Equity

18,54

17,38

17,61

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.52
UK Pound	1	Rs.100.43
Euro	1	Rs.70.44
RUB	1	Rs.1.00

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	HNA

Report Prepared by :	ANK

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.

MIRA INFORM REPORT

Company name and address

Company summary

Financial statement

Unit