MIRA INFORM REPORT

Report No. :	309013
Report Date :	23.02.2015

IDENTIFICATION DETAILS

Name :	ACRONI, D.O.O.

Registered Office :	Koroška Bela, Cesta Borisa Kidriča 44, 4270 Jesenice

Country :	Slovenia

Financials (as on) :	31.12.2013

Date of Incorporation :	19.12.2012

Com. Reg. No.:	10417200

Legal Form :	D.O.O. - Limited liability company (Ltd.)

Line of Business :	Production of Steel and Steel Products Manufacture of Basic Iron and Steel and of Ferro-Alloys

No. of Employee :	1160

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 :	Slow but correct

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 – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Slovenia

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

SLOVENIA ECONOMIC OVERVIEW

With excellent infrastructure, a well-educated work force, and a strategic location between the Balkans and Western Europe, Slovenia has one of the highest per capita GDPs in Central Europe. Slovenia became the first 2004 European Union entrant to adopt the euro (on 1 January 2007) and has experienced one of the most stable political transitions in Central and Southeastern Europe. In March 2004, Slovenia became the first transition country to graduate from borrower status to donor partner at the World Bank. In 2007, Slovenia was invited to begin the process for joining the OECD; it became a member in 2012. However, long-delayed privatizations, particularly within Slovenia’s largely state-owned and increasingly indebted banking sector, have fueled investor concerns since 2012 that the country would need EU-IMF financial assistance. In 2013, the European Commission granted Slovenia permission to begin recapitalizing ailing lenders and transferring their nonperforming assets into a “bad bank” established to restore bank balance sheets. Yield-seeking bond investors’ strong demand for Slovenian debt helped the government in 2013 to continue to finance itself independently on international markets. The government has embarked on a program of state asset sales intended to bolster investor confidence in the economy, which in 2014 is poised to contract 1%, its third-year of recession.

Source : CIA

Company name and address

ACRONI, D.O.O.

Koroška Bela, Cesta Borisa Kidriča 44,

4270 Jesenice

Phone: 04 584 10 00

Telefax: 04 584 11 11

E-Mail: uprava@acroni.si

Web: www.acroni.si

Company summary

Legal form	d.o.o. - Limited liability company (Ltd.)
Established on		19/12/1992 - d.o.o. - Limited liability company (Ltd.)
		last entry on 4.2.2014 on 16.2.2005 change of company name from SŽ ACRONI d.o.o. into ACRONI, d.o.o.
Registered on		19/12/1992, Kranj, Registration number: 10417200 Tax number: SI25840754 Company number: 5688418
Registered capital									EUR			83.458.521,00
Owner		SIJ, d.d., Ljubljana (Statistical number: 5046432) Gerbičeva ulica 98, 1000 Ljubljana							EUR			83.458.521,00
Manager		Blaž Jasnič Cesta maršala Tita 3, 4270 Jesenice director
General data		company activity: production of steel and steel products trade Headquarters and production premises are located on the address above
		Main activity: Manufacture of basic iron and steel and of ferro-alloys (NACE)													(24.10)
		Export: Italy Germany Austria
		Import: Germany Switzerland Italy

		Residence address: Koroška Bela, Cesta Borisa Kidriča 44, 4270 Jesenice Phone: 04 584 10 00 Telefax: 04 584 11 11 E-Mail: uprava@acroni.si Web: www.acroni.si
Other activities
Employees		2009		1518 employees
		2010		1462 employees
		2011		1394 employees
		2012		1254 employees
		2013		1160 employees
		2014		1160 employees
Annual turnover		2008				Enterprise turnover			EUR			445.236.553,-
		2009				Enterprise turnover			EUR			222.461.085,-
		2010				Enterprise turnover			EUR			385.795.539,-
		2011				Enterprise turnover			EUR			439.490.483,-
		2012				Enterprise turnover			EUR			435.488.573,-
		2013				Enterprise turnover			EUR			381.608.589,-
Property		Company's property: Business premises SI-4270 Jesenice, Cesta Borisa Kidriča 44 Company's property: Land and buildings per 31.12.2013 SI- Book value: 72.741.528,- EUR ()
Remarks		full name of the company: ACRONI, podjetje za proizvodnjo jekla in jeklenih izdelkov d.o.o. participation in capital: Acroni Deutschland GmbH Germany- in liquidation (100% share) Acroni Italy - in liquidation (100% share) RCJ d.o.o. (24,95% share) (stand per 10.7.2014) branch office: Acroni Sweden
Interests		ACRONI, d.o.o. (Statistical number: 5688418):
		RCJ d.o.o. (Statistical number: 6005756)							Owner
		SIJ, d.d., Ljubljana (Statistical number: 5046432):
		ELEKTRODE JESENICE, d.o.o. (Statistical number: 1254430)							Owner
		METAL RAVNE d.o.o. (Statistical number: 5686482)							Owner
		NOŽI RAVNE d.o.o. (Statistical number: 5439264)							Owner
		ODPAD d.o.o. Pivka (Statistical number: 5577772)							Owner
		RAVNE STEEL CENTER d.o.o. (Statistical number: 1906887)							Owner
		Slovenske železarne - Energetika Štore d.o.o. (Statistical number: 1254855)							Owner
		Slovenske zelezarne Jeklolivarna d.o.o. (Statistical number: 5439132)							Owner
		SUZ, d.o.o. (Statistical number: 1199781)							Owner
		SŽ - ARMATURE MUTA Ravne d.o.o. (Statistical number: 5439256)							Owner
		SŽ PFJ d.o.o. (Statistical number: 5434513)							Owner
		SŽ-PFP d.o.o. (Statistical number: 5434521)							Owner
		TIO PNEUMATIKA d.o.o. (Statistical number: 5868459)							Owner
Bank relations		NOVA LJUBLJANSKA BANKA d.d., LJUBLJANA: Central address: SI Trg republike 2, 1520 Ljubljana Account number: 02923-0016844869 SKB BANKA d.d. LJUBLJANA: Central address: SI Ajdovščina 4, 1513 Ljubljana Account number: 03100-1010492556 ABANKA VIPA d.d.: Central address: SI Slovenska cesta 58, 1517 Ljubljana Account number: 05100-8000043060 GORENJSKA BANKA d.d.: Central address: SI Bleiweisova cesta 1, 4000 Kranj Account number: 07000-0000006298 BANKA KOPER d.d.: Central address: SI Pristaniška 14, 6502 Koper Account number: 10100-0045950932 RAIFFEISEN BANKA d.d.: Central address: SI Slovenska ulica 17, 2000 Maribor Account number: 24400-9003757885 PROBANKA d.d.: Central address: SI Trg Leona Štuklja 12, 2000 Maribor Account number: 25100-9703475183 UNICREDIT BANKA SLOVENIJA d.d.: Central address: SI Šmartinska 140, 1000 Ljubljana Account number: 29000-0001921621 SBERBANK d.d.: Central address: SI Dunajska cesta 128a, 1000 Ljubljana Account number: 30000-0080026491 HYPO ALPE-ADRIA-BANK d.d.: Central address: SI Dunajska cesta 117, 1000 Ljubljana Account number: 33000-2584075432 BANKA SPARKASSE d.d.: Central address: SI Cesta v Kleče 15, 1000 Ljubljana Account number: SI56 340001008384331 SBERBANK d.d.: Central address: SI Dunajska cesta 128a, 1000 Ljubljana Account number: SI56 300000180026410 NOVA KREDITNA BANKA MARIBOR d.d.: Central address: SI Ulica Vita Kraigherja 4, 2505 Maribor Account number: SI56 0451 5000 1793 262 BANKA CELJE d.d.: Central address: SI Vodnikova 2, 3000 Celje Account number: SI56 0600 0110 4925 941 BANKA SPARKASSE d.d.: Central address: SI Cesta v Kleče 15, 1000 Ljubljana Account number: SI56 3400 0101 4646 457
Company development		Stagnat												(40)
Terms of payment		Mostly within agrees terms, but partly also delayed												(32)
Business connection		Business connection appear premissable												(31)
A. The enclosed balance of 2013 is originated from official source, it is not authenticated by the auditor. (31.12.2013 - 1 EUR) B. The enclosed balance of 2012 is originated from official source, it is authenticated by the auditor . (31.12.2012 - 1 EUR) C. The enclosed balance of 2011 is the company's own report, it is authenticated by the auditor . (31.12.2011 - 1 EUR) D. The enclosed balance of 2010 is originated from official source, it is not authenticated by the auditor. (31.12.2010 - 1 EUR) Financial statement
BALANCE					A 31.12.2013		B 31.12.2012				C 31.12.2011					D 31.12.2010
ASSETS (AKTIVA)					439.226.117		422.846.831				403.942.661					399.736.414
LONG-TERM ASSETS					279.091.649		259.466.527				246.628.099					231.898.269
Intangible assets and long-term deferred costs and accrued revenues					3.081.946		1.620.276				693.875					968.972
Intangible assets					3.081.946		1.620.276				693.875					968.972
Long-term deferred costs and accrued revenues					0		0				0					0
Tangible fixed assets					255.454.296		245.809.194				235.399.683					223.114.207
Long-term financial investments and Real estate investments					5.872.890		874.923									579.588
Investment property					73.690		75.723				77.756					79.788
Long-term financial investments					5.799.200		799.200				799.200					499.800
Long-term operating receivables					3.117.099		3.220.964				3.936.930					249.571
Deferred receivables for taxes					11.565.418		7.941.170				5.720.655					6.985.931
SHORT-TERM ASSETS					159.777.396		163.224.197				156.744.893					166.804.052
Assets (group for estrange) for sell					0		0				0					0
Inventories					54.579.946		50.615.741				55.273.136					61.845.526
Short-term financial investments					12.328.635		5.110.000				0					105.000
Short-term operating receivables					77.787.004		87.590.551				87.717.790					103.428.637
Cash assets					15.081.811		19.907.905				13.753.967					1.424.889
Short-term deferred costs and accrued revenues					357.072		156.107				569.669					1.034.093
Off-balance sheet items					0		0				0					0
LIABILITIES					439.226.117		422.846.831				403.942.661					399.736.414
CAPITAL					155.553.553		159.888.872				163.195.055					156.342.310
Called-up capital					83.458.521		83.458.521				83.458.521					83.458.521
Basic (subscribed) capital					83.458.521		83.458.521				83.458.521					83.458.521
Non called-up capital (deductive item)					0		0				0					0
Capital reserves					10.130.994		10.130.994				10.130.994					10.130.994
Reserves from profit					3.600.747		3.600.747				3.600.747					3.600.747
Surplus from revaluation					0		0				0					0
Retained net					58.363.291		62.698.610				59.152.048					59.152.048
Net business result for the business year					0		0				6.852.745					0
PROVISIONS AND LONG-TERM ACCRUED COSTS AND DEFERRED REVENUES					3.702.636		3.543.899				4.399.838					6.520.602
FINANCIAL AND BUSINESS LIABILITIES					278.685.226		258.827.963				240.747.606					233.508.670
LONG-TERM LIABILITIES					103.186.922		86.165.426				53.300.346					78.106.686
Long-term financial liabilities					103.032.830		86.059.916				53.257.617					77.958.112
Long-term operating liabilities					154.092		105.510				42.729					148.574
Deferred liabilities for taxes					0		0				0					0
SHORT-TERM LIABILITIES					175.498.304		172.662.537				182.008.970					155.401.984
Liabilities, included in groups for estrange					0		0				0					0
Short-term financial liabilities					57.901.515		46.286.941				71.016.373					60.391.307
Short-term operating liabilities					117.596.789		126.375.596				110.992.597					95.010.677
SHORT-TERM ACCRUED COSTS AND DEFERRED REVENUES					1.284.702		586.097				1.038.452					3.364.832
Off-balance sheet items					0		0				0					0
A. The enclosed profit and loss account of 2013 is originated from official source, it is not authenticated by the auditor. (31.12.2013 - 1 EUR) B. The enclosed profit and loss account of 2012 is originated from official source, it is authenticated by the auditor . (31.12.2012 - 1 EUR) C. The enclosed profit and loss account of 2011 is the company's own report, it is authenticated by the auditor . (31.12.2011 - 1 EUR) D. The enclosed profit and loss account of 2010 is originated from official source, it is not authenticated by the auditor. (31.12.2010 - 1 EUR)
PROFIT AND LOSS ACCOUNT					A 31.12.2013		B 31.12.2012				C 31.12.2011					D 31.12.2010
Net sales					368.700.113		432.348.213				437.251.777					368.118.120
Changes in the value of inventories of products and work-in-process					10.215.546		-2.813.541				-4.032.572
Capitalised own products and own services					0		0				0
Other operating revenues (with subventions, grants,...)					1.983.087		5.628.267				6.082.041
GROSS OPERATING YIELD					380.898.746		435.162.939				439.301.246
Cost of goods, material and services					319.911.201		375.297.923				366.001.812
Purchase value of goods and materials sold and cost of material and cost of material used					0		0
Cost of services					0		0
Labour cost					31.329.740		33.633.054				35.653.398
Cost of wages					23.180.749		23.823.806				25.232.237
Cost of pension insurance					0		0				0
Cost of other social insurance					3.789.823		4.703.589				5.127.766
Other labour cost					4.359.168		5.105.659				5.293.395
Write-offs					24.256.537		21.293.621				18.437.440
Depreciation					24.256.537		21.293.621				18.437.440
Revaluation operating expenses for non-tangible assets and tangible fixed assets					0		0				0
Revaluation operating expenses for current assets					0		0				0
Other operating expenses					4.782.052		5.896.515				5.146.023
OPERATING REVENUES					370.683.200		437.976.480				443.333.818
OPERATING EXPENSES					380.279.530		436.121.113				425.238.673
OPERATING RESULT					-9.596.330		1.855.367				18.095.145
EBIT					619.216		-958.174				14.062.573					5.913.822
Financial income from investments in other enterprises					0											879.179
Financial income from loans					0											28.987
Financial income from operating receivables					0											59.350
Financial expenses from depreciation and write-offs of financial investments					0											0
Financial expenses from financial liabilities					0											5.272.658
Financial expenses from operating liabilities					0											0
Financial income					709.843		325.634				189.237					967.516
Financial expenses					9.288.626		4.894.158				6.133.789					5.272.658
Other revenues					0		0				0					0
Other expenses					0		0				0					0
Total revenues					381.608.589		435.488.573				439.490.483					385.795.539
Total costs					389.568.156		441.015.271				431.372.462					384.186.859
Total business result					-7.959.567		-5.526.698				8.118.021					1.608.680
Tax on profit					0		0				0					0
Deferred taxs					-3.624.248		-2.220.515				1.265.276					135.067
Net business result for the accounting period					-4.335.319		-3.306.183				6.852.745					1.473.613

RATIOS								2010		2011			2012				2013
			Equity ratio					0,21		0,21			0,2				0,19
			Cleared equity ratio					0,21		0,21			0,2				0,19
			Current liquidity					1,07		0,86			0,95				0,91
			Quick liquidity					0,68		0,56			0,65				0,6
			Working capital					11402068		-25264077			-9438340				-15720908
			Gearing					4,79		4,84			5,07				5,26
			Cleared gearing					1,66		1,49			1,59				1,93
			Profitability					0,42		1,85			-1,27				-2,09
			Operating profitability					0,38		1,56			-0,76				-1,14
			Stock days					58,51		45,9			42,42				52,2
			Debtor days					97,85		72,85			73,41				74,4
			Supplier days					89,89		92,18			106				112

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.25
UK Pound	1	Rs.96.01
Euro	1	Rs.70.72

INFORMATION DETAILS

Analysis Done by :	DIV

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

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