MIRA INFORM REPORT

Report No. :	302187
Report Date :	17.01.2015

IDENTIFICATION DETAILS

Name :	PUBLIC JOINT-STOCK COMPANY VOLZHKY ABRASIVE WORKS

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

Country :	Russia

Financials (as on) :	31.12.2013

Date of Incorporation :	16.05.2002

Com. Reg. No.:	1023402019596

Legal Form :	Public Limited Company (OAO)

Line of Business :	Production of Abrasive Products.

No. of Employees :	Not Available

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 :	Satisfactory

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. Slowly declining oil prices over the past few years and difficulty attracting foreign direct investment have contributed to a noticeable slowdown in GDP growth rates. In late 2013, the Russian Economic Development Ministry reduced its growth forecast through 2030 to an average of only 2.5% per year, down from its previous forecast of 4.0 to 4.2%. In 2014, following Russia's military intervention in Ukraine, prospects for economic growth declined further, with expections that GDP growth could drop as low as zero.

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

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 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	(26.81)

	Full name: Otkrytoe aktsionernoe obshchestvo "Volzhskiy abrazivnyy zavod"
	Name in foreign language: Public Yoint-Stock Company Volzhky Abrasive Works

	Short name: OAO "Volzhskiy abrazivnyy zavod"

	Residence address: ul 6 Avtodoroga d 18, 404130 Volgogradskaya oblast, g Volzhskiy Tel: 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	(20.40)
	Manufacture of games and toys	(36.50)

	Wholesale of wood	(51.53.24)
	Other wholesale trade	(51.70)

	Retail sale in non-specialized stores with food	(52.11.2)
	Other retail sale in specialized stores	(52.48.31)

	Other retail sale in specialized stores	(52.48.39)
	Other provision of lodgings n.e.c.	(55.23.1)

	Other provision of lodgings n.e.c.	(55.23.2)
	Canteens	(55.51)

	Management of real estate on a fee or contract basis	(70.32.1)
	Primary education	(80.10.1)

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

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,-

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 31.12.2014.
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 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

Financial

A. The enclosed balance of 2011 is originated from official source, no data available about authentication. (31.12.2011 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).
B. The enclosed balance of 2012 is originated from official source, no data available about authentication. (31.12.2012 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).
C. 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).

balance	A 31.12.2011	B 31.12.2012	C 31.12.2013
1. ASSETS
I. FIXED ASSETS
Intangible assets	14	12	605
The results of research and development	0	0	0
Intangible research assets	0	0	0
Tangible research assets	0	0	0
Fixed assets	386 719	643 291	742 785
Profitable investments in tangible assets	0	0	0
Financial investments	158	137	101
Deferred tax assets	5 627	2 468	5 994
Other non-current assets	25 149	60 633	15 956
TOTAL IN SECTION I.	417 667	706 541	765 441
II. CURRENT ASSETS
Inventories	515 935	662 187	709 012
VAT on acquired assets	45 750	46 407	50 018
Accounts receivable	506 755	380 009	480 861
Financial investments (excluding the monetary equivalent)	30 000	0	0
Cash and monetary equivalents	287 499	172 284	118 511
Other current assets	10 293	7 768	3 758
TOTAL IN SECTION II.	1 396 232	1 268 655	1 362 160
BALANCE	1 813 899	1 975 196	2 127 601
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	3 601	3 601	3 601
Treasury stock	0	0	0
Revaluation of fixed assets	0	0	0
Additional capital (without revaluation)	211 762	211 762	211 762
Reserve capital	600	600	600
Retained earnings (uncovered loss)	1 422 526	1 553 662	1 705 556
TOTAL IN SECTION III.	1 638 489	1 769 625	1 921 519
IV. LONG-TERM LIABILITIES
Borrowed funds	0	0	0
Deferred tax liabilities	17 143	27 617	41 496
Provisions	0	0	0
Other liabilities	0	0	0
TOTAL IN SECTION IV.	17 143	27 617	41 496
V. SHORT-TERM LIABILITIES
Borrowed funds	0	11 427	0
Payables	158 267	166 527	161 181
Deferred income	0	0	0
Provisions	0	0	3 405
Sonstige Verbindlichkeiten	0	0	0
TOTAL IN SECTION V.	158 267	177 954	164 586
BALANCE	1 813 899	1 975 196	2 127 601
A. The enclosed profit and loss account of 2011 is originated from official source, no data available about authentication. (31.12.2011 - 1000 RUB) B. The enclosed profit and loss account of 2012 is originated from official source, no data available about authentication. (31.12.2012 - 1000 RUB) C. The enclosed profit and loss account of 2013 is originated from official source, no data available about authentication. (31.12.2013 - 1000 RUB)

profit and loss account	A 31.12.2011	B 31.12.2012	C 31.12.2013
Turnover	3 387 910	3 121 930	3 131 563
Cost of sales	2 265 192	2 423 513	2 461 057
Gross profit (loss)	1 122 718	698 417	670 506
Selling expenses	234 340	230 142	196 846
Administrative expenses	243 594	0	0
Sales profit (loss)	644 784	468 275	473 660
Earnings from other entities	0	0	0
Interest receivable	743	3 911	4 440
Interest payable	376	8	60
Other operating income	142 188	47 545	112 100
Other operating expenses	188 468	103 701	173 495
Profit (loss) before tax	598 871	416 022	416 645
Current profit tax	146 138	86 426	85 523
Permanent tax liabilities (assets)	26 159	16 854	12 547
Change in deferred tax liabilities	4 318	10 474	13 879
Change in deferred tax assets	4 226	-3 159	3 526
Different	0	0	-12
Net profit (loss)	452 641	315 963	320 781
Results of fixed assets revaluation, non-includedin net profit/loss for period	0	0	0
Result of other transactions, non included in net profit/loss for period	0	-184 827	-168 887
Total financial result for period	452 641	131 136	151 894
A. The enclosed balance of 2014 is originated from official source, it is authenticated by the auditor . (30.09.2014 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).

balance	A 30.09.2014	B	C
1. ASSETS
I. FIXED ASSETS
Intangible assets	891
The results of research and development	0
Intangible research assets	0
Tangible research assets	0
Fixed assets	755 318
Profitable investments in tangible assets	0
Financial investments	79
Deferred tax assets	11 077
Other non-current assets	19 019
TOTAL IN SECTION I.	786 384
II. CURRENT ASSETS
Inventories	720 725
VAT on acquired assets	37 694
Accounts receivable	613 818
Financial investments (excluding the monetary equivalent)	10 030
Cash and monetary equivalents	26 389
Other current assets	8 230
TOTAL IN SECTION II.	1 416 886
BALANCE	2 203 270
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)	211 762
Reserve capital	600
Retained earnings (uncovered loss)	1 792 935
TOTAL IN SECTION III.	2 008 898
IV. LONG-TERM LIABILITIES
Borrowed funds	0
Deferred tax liabilities	40 980
Provisions	0
Other liabilities	0
TOTAL IN SECTION IV.	40 980
V. SHORT-TERM LIABILITIES
Borrowed funds	0
Payables	124 425
Deferred income	0
Provisions	28 967
Sonstige Verbindlichkeiten	0
TOTAL IN SECTION V.	153 392
BALANCE	2 203 270
A. The enclosed profit and loss account of 2014 is originated from official source, it is authenticated by the auditor . (30.09.2014 - 1000 RUB)

profit and loss account	A 30.09.2014	B	C
Turnover	2 413 874
Cost of sales	1 918 938
Gross profit (loss)	494 936
Selling expenses	140 328
Administrative expenses	0
Sales profit (loss)	354 608
Earnings from other entities	0
Interest receivable	4 355
Interest payable	-2
Other operating income	79 990
Other operating expenses	124 920
Profit (loss) before tax	314 031
Current profit tax	68 777
Permanent tax liabilities (assets)	372
Change in deferred tax liabilities	516
Change in deferred tax assets	5 083
Different	0
Net profit (loss)	250 853
Results of fixed assets revaluation, non-includedin net profit/loss for period	-163 474
Result of other transactions, non included in net profit/loss for period	0
Total financial result for period	87 739

Ratios		2011	2012	2013
	Current ratio	8,82	7,13	8,28

	Quick ratio	5,56	3,41	3,97
	Average Collection Period	56,78	51,84	50,17

	Payables turnover Period	27,52	24,46	24,3
	Debt ratio	0,1	0,1	0,1

	Equity to total assets ratio	0,9	0,9	0,9
	Funding ratio	9,34	8,61	9,32

	Return on sales	13,36	10,12	10,24
	Return on Assets	49,91	16,68	15,64

Return on Equity

55,25

18,54

17,38

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.89
UK Pound	1	Rs.93.92
Euro	1	Rs.72.01

INFORMATION DETAILS

Analysis Done by :	SUB

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%)

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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.

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