MIRA INFORM REPORT

Report No. :	309266
Report Date :	25.02.2015

IDENTIFICATION DETAILS

Name :	PANTOVIC D.O.O.
Registered Office :	Preduzece Za Proizvodnju, Promet I Usluge Pantovic D.O.O. Uzice
Country :	Serbia
Financials (as on) :	31.12.2013
Date of Incorporation :	18.01.1991
Legal Form :	Limited Liability company
Line of Business :	Subject Manufacture of other knitted and crocheted apparel
No. of Employee :	72

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 :	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)
Serbia	C1	C1

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

SERBIA - ECONOMIC OVERVIEW

Serbia has a transitional economy largely dominated by market forces, but the state sector remains significant in certain areas and many institutional reforms are needed. The economy relies on manufacturing and exports, driven largely by foreign investment. MILOSEVIC-era mismanagement of the economy, an extended period of international economic sanctions, civil war, and the damage to Yugoslavia's infrastructure and industry during the NATO airstrikes in 1999 left the economy only half the size it was in 1990. After the ousting of former Federal Yugoslav President MILOSEVIC in September 2000, the Democratic Opposition of Serbia (DOS) coalition government implemented stabilization measures and embarked on a market reform program. After renewing its membership in the IMF in December 2000, Serbia continued to reintegrate into the international community by rejoining the World Bank (IBRD) and the European Bank for Reconstruction and Development (EBRD). Serbia has made progress in trade liberalization and enterprise restructuring and privatization, but many large enterprises - including the power utilities, telecommunications company, natural gas company, and others - remain in state hands. Serbia has made some progress towards EU membership, signing a Stabilization and Association Agreement with Brussels in May 2008, and with full implementation of the Interim Trade Agreement with the EU in February 2010, gained candidate status in March 2012. In January 2014, Serbia's EU accession talks officially opened. Serbia's negotiations with the World Trade Organization are advanced, with the country's complete ban on the trade and cultivation of agricultural biotechnology products representing the primary remaining obstacle to accession. Serbia's program with the IMF was frozen in early 2012 because the 2012 budget approved by parliament deviated from the program parameters; the arrangement is now void. However, an IMF mission visited Serbia in February 2014 to initiate discussions with Serbian authorities on a possible new IMF arrangement and these talks will continue following the formation of the new government. High unemployment and stagnant household incomes are ongoing political and economic problems. Structural economic reforms needed to ensure the country's long-term prosperity have largely stalled since the onset of the global financial crisis. Growing budget deficits constrain the use of stimulus efforts to revive the economy and contribute to growing concern of a public debt crisis, given that Serbia's total public debt as a share of GDP doubled between 2008 and 2013. Serbia's concerns about inflation and exchange-rate stability may preclude the use of expansionary monetary policy. During the recent election campaign, the victorious SNS party promised comprehensive economic reform during the first half of 2014 to address issues with the fiscal deficit, state-owned enterprises, the labor market, construction permits, bankruptcy and privatization, and other areas. Major challenges ahead include: high unemployment rates and the need for job creation; high government expenditures for salaries, pensions, healthcare, and unemployment benefits; a growing need for new government borrowing; rising public and private foreign debt; attracting new foreign direct investment; and getting the IMF program back on track. Other serious longer-term challenges include an inefficient judicial system, high levels of corruption, and an aging population. Factors favorable to Serbia's economic growth include its strategic location, a relatively inexpensive and skilled labor force, and free trade agreements with the EU, Russia, Turkey, and countries that are members of the Central European Free Trade Agreement (CEFTA).

Source : CIA

Company name and address

PANTOVIC D.O.O. PREDUZECE ZA PROIZVODNJU, PROMET I USLUGE PANTOVIC D.O.O. UZICE Radnicka 4 RS 31000 Uzice Tel: +381 31/513973, 553412 Fax: +381 31/513973, 553412 Mob.: +381 63/603292
Legal form	Ltd. - Limited Liability company
Established	18.01.1991
Registered	National Identification Number: 07608365 PIB (Value Added Tax): 101500835 Serbian Business Registers Agency Nr. 31762
Establisher	Dragoslav Pantovic, born 05.11.1964 Gradska 15, 31000 Uzica, Serbia		100.00%
Basic capital	EUR 69,747 (31.12.2013)
Management
Dragoslav Pantovic, Director, born 05.11.1964 Gradska 15, 31000 Uzica, Serbia
Activity
Basic activity (according to National activity classification): Manufacture of other knitted and crocheted apparel (14.39)
Business Premises
Dimitrija Tucovica 151, Uzice, rented, Shop Banjickih zrtava BB, Uzice, ownership unknown, Production plant
Staff
	2013	72 employees
	2012	68 employees
	2011	70 employees
	2010	61 employees
	2009	63 employees
	2008	75 employees
	2007	117 employees
	2006	119 employees
	2005	97 employees
	2004	80 employees
	2003	72 employees
	2002	49 employees
	2001	45 employees

Revenue

2013 revenue	EUR	784,717
2012 revenue	EUR	617,300
2011 revenue	EUR	579,492
2010 revenue	EUR	790,083
2009 revenue	EUR	435,305
2008 revenue	EUR	557,968
2007 revenue	EUR	991,822
2006 revenue	EUR	1,212,213
2005 revenue	EUR	907,878
2004 revenue	EUR	1,157,865
2003 revenue	EUR	803,938
2002 revenue	EUR	326,300
2001 revenue	EUR	433,110

Real estate

Data not available

Balance Sheet

	EUR	31.12.2013	31.12.2012	31.12.2011
Unconsolidated
	FIXED ASSETS	270,480	308,751	211,411
	Subscribed capital unpaid	0	0	0
	Intangible fixed assets	235	0	0
	Tangible fixed assets	270,244	308,751	211,411
	Other fixed assets	0	0	0
	CURRENT ASSETS	493,514	478,153	406,756
	Inventories	391,648	294,969	247,525
	Short – term loans	101,866	109,305	78,947
	*Cash and cash equivalent	11,412	44,485	3,756
	Other current assets	0	73,879	80,285
	LOSS	0	0	0
	TOTAL ASSETS	763,993	786,904	618,167
	EQUITY	105,388	148,813	151,873
	Capital	69,747	67,792	73,662
	Subscribed capital unpaid	0	0	0
	Reserves	0	0	0
	Revalorization reserves	0	0	0
	Undistributed Income	35,641	81,020	78,211
	Loss	0	0	0
	Treasury shares	0	0	0
	LONG TERM RESERVATIONS	0	0	0
	LONG TERM LIABILITIES	362,049	375,532	152,475
	SHORT TERM LIABILITIES	296,556	262,559	313,819
	OTHER LIABILITIES	0	0	0
	TOTAL LIABILITIES	763,993	786,904	618,167

Profit And Loss Account

	EUR	31.12.2013	31.12.2012	31.12.2011
Unconsolidated
	OPERATING REVENUES	735,902	606,280	578,087
	Sales of goods	681,316	561,310	535,206
	OPERATING EXPENSES	721,726	575,286	555,323
	Costs of goods sold	44,464	16,245	7,578
	Raw materials costs	376,992	275,119	303,440
	Salaries, wages and other personal indemnities	205,798	202,216	182,722
	Deprecation and provision costs	36,652	30,598	26,290
	Other operating expenses	57,820	51,108	35,292
	FINANCIAL REVENUES	462	3,219	870
	FINANCIAL EXPENSES	28,588	30,387	10,627
	Financial P/L	(28,126)	(27,168)	(9,757)
	OTHER REVENUES	48,352	7,801	535
	OTHER EXPENSES	3,296	2,577	4,434
	Other P/L	45,057	5,224	(3,899)
	Profit from regular business operations before tax	31,107	9,050	9,107
	Loss from regular business operations before tax	0	0	0
	Net profit of businesses to be ceased	0	0	0
	Net loss of businesses to be ceased	0	0	0
	Profit before taxation	31,107	9,050	9,107
	Loss before taxation	0	0	0
	Taxation on profit	0	0	(4,214)
	Personal indemnities paid to employer	0	0	0
	TOTAL REVENUES	784,717	617,300	579,492
	TOTAL EXPENSES	753,609	608,250	570,384
	PROFIT OF THE PERIOD	31,107	9,050	13,322
	LOSS OF THE PERIOD	0	0	0
	Number of employees	72	68	70

Ratios

	EUR	31.12.2013	31.12.2012	31.12.2011
Unconsolidated
	Financial stability ratio	0.71	0.87	0.66
	Equity ratio %	13.79	18.91	24.57
	Debt to equity (Worth)	6.25	4.29	3.07
	Liquidity ratio	0.34	0.42	0.25
	Current ratio	1.66	1.82	1.30
	Total assets turnover	0.96	0.77	0.94
	Average collection period in days	51	66	50
	Profit margin %	4.23	1.49	2.30
	Return on total assets %	4.07	1.15	2.16
	Return on equity %	29.52	6.08	8.77
	Total assets per employee (ths.)	10,611.01	11,572.12	8,830.96
	Equity per employee (ths)	1,463.72	2,188.42	2,169.62
	Total revenue per employee (ths.)	10,220.87	8,915.88	8,258.38
	Profit per employee (ths.)	432.05	133.09	190.31
	Loss per employee (ths.)	0.00	0.00	0.00
	Average net to salaries (ths.)	238.19	247.81	217.53
	* Auditing of financial statements Small legal entities

Corporate structure

	Rep. Offices in Serbia: none Rep. Offices abroad: none Affiliates: - ART, Uzice, Serbia (NIN:07190646) (19.80% owned by Dragoslav Pantovic) Subsidiaries: not identified Immediate parent company: none Other functions and shares of Dragoslav Pantovic: - ART, Uzice, Serbia (NIN:07190646), establisher (19.80%)
Other info
Former registered addresses: Since 18.01.1991 till 24.06.2013 Gradska 5, UZICE Since 24.06.2013 Radnicka 4, UZICE
Exchange rate
31.12.2013 31.12.2012 31.12.2011 31.12.2010		EUR 1 = RSD 114.70 EUR 1 = RSD 113.70 EUR 1 = RSD 104.64 EUR 1 = RSD 105.98
Inflation
2012: 2011: 2010:		12.20% 10.30% 7.90%
Bankers
	VOJVODJANSKA BANKA A.D. Novi Sad Trg Slobode 7 355-1066117-61
	MARFIN BANK A.D. Beograd Dalmatinska 22 145-5480-25
	BANCA INTESA A.D. Beograd Milentija Popovica 7 b 160-39659-21
	ALPHA BANK SRBIJA A.D. Beograd Kralja Milana 11 180-138810101500-80
	ALPHA BANK SRBIJA A.D. Beograd Kralja Milana 11 180-0138810101500-80
	ALPHA BANK SRBIJA A.D. Beograd Kralja Milana 11 180-0568460101500-90
	ALPHA BANK SRBIJA A.D. Beograd Kralja Milana 11 180-0138810301500-25
	BANCA INTESA A.D. Beograd Milentija Popovica 7 b 160-218679-50
	RAIFFEISEN BANKA A.D. Beograd Bulevar Zorana Djindjica 64 a 265-3410310000606-67
	SOCIETE GENERALE BANKA SRBIJA A.D. Beograd Bulevar Zorana Djindjica 50 a i 50 b 275-10222551118-63
	Bank account was blockaded from 17.10.2007 to 19.10.2007 Bank account was blockaded from 22.10.2007 to 05.11.2007 Bank account was blockaded from 08.11.2007 to 12.11.2007 Bank account was blockaded from 20.11.2007 to 28.11.2007 Bank account was blockaded from 03.12.2007 to 04.12.2007 Bank account was blockaded from 05.12.2007 to 06.12.2007 Bank account was blockaded from 25.02.2008 to 27.02.2008 Bank account was blockaded from 03.03.2008 to 05.03.2008 Bank account was blockaded from 01.04.2008 to 03.04.2008 Bank account was blockaded from 11.04.2008 to 15.04.2008 Bank account was blockaded from 16.04.2008 to 18.04.2008 Bank account was blockaded from 25.07.2008 to 29.07.2008 Bank account was blockaded from 02.09.2008 to 03.09.2008 Bank account was blockaded from 17.09.2008 to 18.09.2008
Debt collection	Case Registered:	-
	Case Status:	There is no record of any debt collection action.
Mode of payment	As a rule payments are made on time according to conditions, in some cases there have been delays and reminders
Credit opinion	Business connections are permissible

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.28
UK Pound	1	Rs.96.21
Euro	1	Rs.70.60

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	ASH

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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