MIRA INFORM REPORT

Report No. :	305211
Report Date :	29.01.2015

IDENTIFICATION DETAILS

Name :	A.S.R. SRL
Registered Office :	Maramures county / 430275 Baia Mare – Agriculturii Street No. 10, Ap. 7
Country :	Romania
Financials (as on) :	30.06.2014
Date of Incorporation :	December 2001
Legal Form :	Limited Liability Company
Line of Business :	Engaged in Selling Spare Parts for Tractor
No of Employees :	02 (2013)

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 :	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)
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. The country emerged in 2000 from a punishing three-year recession due to strong demand in EU export markets. Domestic consumption and investment fueled strong GDP growth, but led to large current account imbalances. 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. As a result of the global financial crisis, Romania signed on to a $26 billion emergency assistance package from the IMF, the EU, and other international lenders. GDP contracted from 2009 to 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, the Romanian authorities and the IMF/EU agreed to a follow-on stand-by agreement, worth $5.4 billion, to continue with reforms, although Bucharest announced that it does not intend to draw funds under the agreement. Economic growth accelerated in 2013, driven by strong industrial exports and an excellent agricultural harvest; in December 2013 inflation dropped to a historical low annual rate of 1.6%; and the current account deficit was reduced substantially. Yet, progress on structural reforms is uneven and the economy still is vulnerable to shocks.

Source : CIA

Company summary

NAME OF THE COMPANY

A.S.R. SRL

Address

Maramures county / 430275 Baia Mare – Agriculturii Street No. 10, Ap. 7

Phone no.

Cell phone no.

0040-262-226947

0040-362-404880

0040-744-701994

0040-744-904789

0040-722-992824

Fax no.

0040-362-819018

Web-site

http://www.asr.aaz.ro

E-mail address

pieseu445@yahoo.com

HISTORIC/OFFICIAL DATA

Date of foundation

December, 2001

Present legal form

Limited liability company, entire Romanian capital

Registered with the Trade Registry

J24/728/2001

VAT no.

14329780

Registered capital

200 RON

(the minimum share-capital requested by the Law in case of limited liability companies)

Shareholders

Unique owner, individual

Mr. Netotea Avram – Romanian citizen, born on 15.11.1972

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

2009

2010

2011

2012

2013

30.06.2014

total

1

2

2

2

2

n/a

BUSINESS ACTIVITY

Engaged in Selling Spare Parts for Tractor

Work-shops

1. Maramures county / Baia Mare – Mihai Eminescu Street No. 14

2. Maramures county / Baia Sprie – Caramizilor Street No. 55

OTHER PARTICIPATION

1. Company’s participation

not applicable

2. Shareholders other participation

not applicable

TANGIBLES*

None, at 30.06.2014

*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

Transilvania Bank

MANAGEMENT

· as officially registered with the National Trade Registry

Administrator

Mr. Netotea Avram – appointed on 29.11.2001 for a period of 98 years

CURRENCY

Exchange rate of EURO

1 EURO = 4.2282 RON on 31.12.2009

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 = 4.4588 RON on 30.06.2013

1 EURO = 4.4847 RON on 31.12.2013

1 EURO = 4.3888 RON on 30.06.2014

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2011	31.12.2012	31.12.2013	30.06.2014
INTANGIBLES - TOTAL	0	0	0	0
TANGIBLES - TOTAL	798	618	138	0
FINANCIALS - TOTAL	0	0	0	0
FIXED ASSETS - TOTAL	798	618	138	0
STOCKS - TOTAL	664,830	1,097,272	1,161,602	1,166,029
CLAIMS - TOTAL	180,669	301,626	267,007	290,789
CURRENT ASSETS	846,856	1,424,009	1,440,844	1,468,001
PREPAID EXPENSES	2,712	0	0	0
DEBTS WITHIN 1 YEAR	240,094	272,336	209,808	218,376
DEBTS OVER 1 YEAR	422,844	867,232	848,493	822,479
PROVISIONS	0	0	0	0
ADVANCED INCOMES	0	0	0	0
REGISTERED CAPITAL	200	200	200	200
RESERVES	0	0	0	0
NET RESULT - PROFIT	107,286	97,631	97,622	44,465
NET RESULT - LOSS	0	0	0	0
NET WORTH	187,428	285,059	382,681	427,146
PROFIT & LOSS ACCOUNT	31.12.2011	31.12.2012	31.12.2013	30.06.2014
Turnover	530,681	652,567	673,485	351,511
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	530,681	652,567	673,485	351,511
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	399,978	528,694	555,812	292,492
ORDINARY OPERATING RESULT - PROFIT	130,703	123,873	117,673	59,019
ORDINARY OPERATING RESULT - LOSS	0	0	0	0
FINANCIAL INCOMES	677	2,316	11,852	603
FINANCIAL COSTS	3,206	3,472	12,440	6,688
FINANCIAL RESULT - PROFIT	0	0	0	0
FINANCIAL RESULT - LOSS	2,529	1,156	588	6,085
CURRENT RESULT - PROFIT	128,174	122,717	117,085	52,934
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	531,358	654,883	685,337	352,114
TOTAL COSTS	403,184	532,166	568,252	299,180
PRETAX RESULT - PROFIT	128,174	122,717	117,085	52,934
PRETAX RESULT - LOSS	0	0	0	0
TAX ON PROFIT	20,888	25,086	19,463	8,469
NET RESULT - PROFIT	107,286	97,631	97,622	44,465
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 30.06.2014. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 30.06.2014

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

Size

micro, considering the total no. of employees before H1 2014

Position & trend

Small business volume, but with a good financial standing.

The financials at hand reveal a generally increasing turnover and rather constant very good profitability.

Also, there are registered increases of both assets and equity.

The payments behaviour proves to be correct, without delays.

Overall, this is a small business, but with good results and we apprecaite the business relationships are feasible and the credit facilities are suitable.

31.12.2009

31.12.2010

31.12.2011

31.12.2012

31.12.2013

30.06.2014

Turnover

RON

46,110

329,727

530,681

652,567

673,485

351,511

EURO

10,905

76,953

122,851

147,350

150,174

80,093

Gross profit

RON

5,504

64,117

128,174

122,717

117,085

52,934

EURO

1,302

14,964

29,672

27,709

26,108

12,061

Net profit

RON

4,037

53,206

107,286

97,631

97,622

44,465

EURO

955

12,417

24,836

22,045

21,768

10,131

30.06.2014

CREDITS & LOANS (ACTIVE BALANCE)

N/A

BALANCE CLAIMS-DEBTS

Positive, on short term

Total claims; no further details are available

290,789

Total debts

1,040,855

- Short term; no further details are available

218,376

- Medium term; no further details are available

822,479

PAYMENTS BEHAVIOR

Correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded in the period 27.01.2014 - 27.01.2015

BLACKLISTING (international sanctions)

Not applicable

FINANCIAL STRENGTH

382,000 EURO

BUSINESS RELATIONS

Permissible

Applies to short term credit facilities and should not be construed as a maximum credit limit, which can be only established by the supplier. The credit limit has been set using a formula which takes into consideration the credit rating, and the latest behavioral and financial performances. Other information may of course influence the size of the credit you may grant.

2009

2010

2011

2012

2013

30.06.2014

Too high – the current assets are not used efficiently

Liquidity analysis

- current ratio

2.01

2.91

3.53

5.23

6.87

6.72

- quick ratio

0.57

1.35

0.76

1.20

1.33

1.38

Solvability analysis

Improved up to a satisfactory level

- the borrowing ratio (total debts/net worth)

6.99

5.79

3.54

4.00

2.77

2.44

Profitability analysis (%)

Rather very good, generally

- return on capital

14.99

66.39

57.24

34.25

25.51

10.41

- return on assets

1.88

9.77

12.62

6.85

6.77

3.03

- gross profit margin

11.94

19.45

24.15

18.81

17.38

15.06

Activity analysis

Heavy settlements of debtors – pay attention!

- debtor’s days

428

232

124

169

145

149

- creditor’s days

n/a

n/a

n/a

n/a

n/a

n/a

Stocks turnover, times/period

0.31

1.14

0.80

0.59

0.58

0.30

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.41
UK Pound	1	Rs.93.18
Euro	1	Rs.69.82

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	MNL

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.