MIRA INFORM REPORT

Report No. :	353087
Report Date :	11.12.2015

IDENTIFICATION DETAILS

Name :	SIDEM SRL
Registered Office :	Suceava county, Scheia commune. Scheia village, 117 Humorului Street
Country :	Romania
Financials (as on) :	30.06.2015
Date of Incorporation :	April 2001
Legal Form :	Limited liability company
Line of Business :	Manufacturer of other spare parts and accessories for auto vehicles and engines for auto vehicles
No. of Employee :	231

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

Maximum Credit Limit :	300,000 EURO
Status :	Good
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 the top vulnerabilities.

Source : CIA

Company summery

NAME OF THE COMPANY

SIDEM SRL

Address

Suceava county, Scheia commune. Scheia village, 117 Humorului Street

Phone no.

Cell phone no.

0230-526692

0040-743-253840

Fax no.

0230-526692

Web-site

www.sidem.be

E-mail address

sidem@sidem.ro

HISTORIC/OFFICIAL DATA

Date of foundation

April 2001

Present legal form

Limited liability company, entire Belgium capital

Registered with the Trade Registry

J33/221/2001

VAT no.

13847989

Registered capital

5,577,820 RON

Shareholders

Legal person – unique owner

SIDEM NV – Belgium legal person

Address: Belgium, 8560 Gullegem, 62 Nijverheidslaan

Participation

100%

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

2010

2011

2012

2013

2014

30.06.2015

total

202

209

215

238

264

231

BUSINESS ACTIVITY

According to the National Trade Registry updated files

- manufacturer of other spare parts and accessories for auto vehicles and engines for auto vehicles , (NACE: 2932)

Work-shop: Suceava county, Scheia commune. Scheia village, 117 Humorului Street

OTHER PARTICIPATION

1. Company’s participation

not applicable

2. Shareholders other participation

not applicable

REAL ESTATE (RON)

- lands & buildings

2010

2011

2012

2013

2014

0

86,823

87,127

83,008

543,745

- equipment

2,385,414

3,616,254

3,556,581

4,195,133

4,192,000

TANGIBLES*

6,038,358 RON, at 30.06.2015

*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

n/a

MANAGEMENT

as officially registered with the National Trade Registry

ADMINISTRATOR

Verfaillie Gwen – Belgium citizen, born on 1.09.1967

Appointed on 24.04.2001 for unlimited period

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 = 4.3888 RON on 30.06.2014

1 EURO = 4.4821 RON on 31.12.2014

1 EURO = 4.4735 RON on 30.06.2015

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2012	31.12.2013	31.12.2014	30.06.2015
INTANGIBLES - TOTAL	70,126	130,708	189,526	154,055
TANGIBLES - TOTAL	3,676,381	4,396,404	5,988,151	6,038,358
FINANCIALS - TOTAL	7,557	7,950	7,950	7,950
FIXED ASSETS - TOTAL	3,754,064	4,535,062	6,185,627	6,200,363
STOCKS - TOTAL	17,745,718	18,164,654	21,157,080	19,786,329
CLAIMS - TOTAL	3,609,061	2,669,087	2,657,801	2,623,334
CURRENT ASSETS	22,463,687	21,685,923	24,401,201	23,459,101
PREPAID EXPENSES	145,305	282,223	408,677	284,541
DEBTS WITHIN 1 YEAR	5,565,005	4,887,416	10,956,637	18,205,935
DEBTS OVER 1 YEAR	0	0	0	0
PROVISIONS	177,459	0	498,866	498,866
ADVANCED INCOMES	159,482	106,768	79,673	66,124
REGISTERED CAPITAL	5,577,820	5,577,820	5,577,820	5,577,820
RESERVES from reassessment of the fixed assets	0	0	0	0
RESERVES	1,834,335	1,883,290	1,931,205	2,382,509
RESULTS CARRIED FORWARD	-117,497	-228,766	0	0
NET RESULT - PROFIT	13,178,331	14,276,680	11,951,304	3,212,749
NET RESULT - LOSS	0	0	0	0
NET WORTH	20,461,110	21,509,024	19,460,329	11,173,078
PROFIT & LOSS ACCOUNT	31.12.2012	31.12.2013	31.12.2014	30.06.2015
Turnover	61,191,628	68,702,019	69,280,890	26,852,112
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	61,730,563	71,968,870	72,355,487	28,863,928
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	46,004,064	55,164,872	57,961,408	24,573,799
ORDINARY OPERATING RESULT - PROFIT	15,726,499	16,803,998	14,394,079	4,290,129
ORDINARY OPERATING RESULT - LOSS	0	0	0	0
FINANCIAL INCOMES	699,402	1,032,838	773,705	579,739
FINANCIAL COSTS	875,603	825,382	845,747	445,675
FINANCIAL RESULT - PROFIT	0	207,456	0	134,064
FINANCIAL RESULT - LOSS	176,201	0	72,042	0
CURRENT RESULT - PROFIT	15,550,298	17,011,454	14,322,037	4,424,193
CURRENT RESULT - LOSS	0	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	62,429,965	73,001,708	73,129,192	29,443,667
TOTAL COSTS	46,879,667	55,990,254	58,807,155	25,019,474
PRETAX RESULT - PROFIT	15,550,298	17,011,454	14,322,037	4,424,193
PRETAX RESULT - LOSS	0	0	0	0
TAX ON PROFIT	2,371,967	2,734,774	2,370,733	1,211,444
NET RESULT - PROFIT	13,178,331	14,276,680	11,951,304	3,212,749
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 30.06.2015. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 30.06.2015

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

Size

medium, considering the total no. of employees.

Position & trend

Large volume of activity, with generally remunerative returns.

In terms of liquidity, quick ratio is poor due to the high level of stocks. Solvability got deteriorated at June 2015, up to an acceptable indebtedness rate.

Payments behavior is correct, no delays being reported.

Financial stading is good.

Business contacts are feasible and credit facilities are suitable.

31.12.2010

31.12.2011

31.12.2012

31.12.2013

30.06.2014

31.12.2014

30.06.2015

Turnover

RON

46,766,254

56,660,033

61,191,628

68,702,019

40,285,549

69,280,890

26,852,112

EURO

10,914,454

13,116,659

13,817,063

15,319,201

9,179,172

15,457,239

6,002,484

Gross profit

RON

15,702,383

13,764,271

15,550,298

17,011,454

8,053,293

14,322,037

4,424,193

EURO

3,664,671

3,186,395

3,511,256

3,793,220

1,834,965

3,195,385

988,978

Net profit

RON

13,208,045

11,457,933

13,178,331

14,276,680

6,653,087

11,951,304

3,212,749

EURO

3,082,535

2,652,484

2,975,666

3,183,419

1,515,924

2,666,452

718,173

30.06.2015

CREDITS & LOANS (ACTIVE BALANCE)

N/A

BALANCE CLAIMS-DEBTS

NEGATIVE

Total claims, no further details available

2,623,334

Total debts – all on short term, no further details available

18,205,935

PAYMENTS BEHAVIOR

No complaints

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded during 10.12.2014 – 10.12.2015

BLACKLISTING (international sanctions)

Not applicable

FINANCIAL STRENGTH

3,700 tsd EURO

RISK CATEGORY

Normal

BUSINESS RELATIONS

Permissible

CREDIT LIMIT

300,000 EURO

2010

2011

2012

2013

2014

30.06.2015

Poor quick ratio due to the high level of stocks

Liquidity analysis

- current ratio

2.58

2.69

4.04

4.44

2.23

1.29

- quick ratio

0.46

0.37

0.85

0.72

0.30

0.20

Solvability analysis

Deteriorated at June 2015, up to an acceptable indebtedness rate

- the borrowing ratio (total debts/net worth)

0.52

0.50

0.27

0.23

0.56

1.63

Profitability analysis (%)

Always very good

- return on capital

92.58

65.85

64.41

66.38

61.41

28.75

- return on assets

60.41

42.06

49.99

53.87

38.56

10.73

- gross profit margin

33.58

24.29

25.41

24.76

20.67

16.48

Activity analysis

Normal settlements

- debtor’s days

19

20

22

14

14

36

- creditor’s days

43

19

27

20

14

n/a

Stocks turnover, times/period

3

3

3

4

3

1

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.79
UK Pound	1	Rs.101.37
Euro	1	Rs.73.46
Euro	1	Rs.73.20

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

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TRU

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.