MIRA INFORM REPORT

Report No. :	334325
Report Date :	31.07.2015

IDENTIFICATION DETAILS

Name :	KYNÄEXPERT OY
Formerly Known As :	KYNÄEXPERT EVA KY
Registered Office :	Karvaamokuja 4, 00380, Helsinki
Country :	Finland
Financials (as on) :	31.12.2014
Date of Incorporation :	09.09.1987
Legal Form :	Limited company
Line of Business :	Wholesale of stationary and other office supplies
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
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)
Finland	A2	A2

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

FINLAND - ECONOMIC OVERVIEW

Finland has a highly industrialized, largely free-market economy with per capita output almost as high as that of Austria, Belgium, the Netherlands, or Sweden. Trade is important, with exports accounting for over one-third of GDP in recent years. Finland is historically competitive in manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Finland excels in export of technology for mobile phones as well as promotion of startups in the ICT, gaming, cleantech, and biotechnology sectors. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Because of the climate, agricultural development is limited to maintaining self-sufficiency in basic products. Forestry, an important export earner, provides a secondary occupation for the rural population. Finland had been one of the best performing economies within the EU before 2009 and its banks and financial markets avoided the worst of global financial crisis. However, the world slowdown hit exports and domestic demand hard in that year, with Finland experiencing one of the deepest contractions in the euro zone. A recovery of exports, domestic trade, and household consumption stimulated economic growth in 2010-12, however, continued recession within the EU dampened the economy in 2012-14. The recession affected general government finances and the debt ratio, turning previously strong budget surpluses into deficits, losing its coveted triple-A credit rating, and on pace to breach EU debt limits in 2015. Finland's main challenge will be to stimulate growth while faced with weak export demand in the EU and its own government austerity measures. Longer-term, Finland must address a rapidly aging population and decreasing productivity in traditional industries that threaten competitiveness, fiscal sustainability, and economic growth. The depreciating ruble will retard exports to Russia.

Source : CIA

Company summary

Trading Name	Kynäexpert Oy	Trade Registry Number
Company Name	Kynäexpert Oy	Business ID	06691383
Previous Name	Kynäexpert EVA Ky
Telephone Number	0103229131	Registered Address	Karvaamokuja 4, 00380, HELSINKI
Fax Number	0103229139	Visiting Address	Karvaamokuja 4 5 krs, 00380, HELSINKI
Home Municipality	Helsinki	Postal Address	-, -, -
Incorporation Date	09.09.1987	Branches	1
Company Type	Limited company	Website Address
Primary Sic Code	46491	Accountant
Primary Sic Description	Wholesale of stationary and other office supplies	Last Accounts Date	31.12.2014
Share Capital (€)	13.791	Holding Company
Deals in importing	No	Foreign Ownership
Deals in exporting	No	Currency	EUR

Key Financials (€)

Year	31.12.2014	%	31.12.2013	%	31.12.2011	%	31.12.2010
Number of weeks	52		52		52		52
Turnover	24.730	-25%	33.097	-26%	44.707	-17%	53.863
Operating Profit/Loss	-3.262	-	-3.557	-	-1.296	-	-7.212
Profit/Loss after Financial Items	-3.649	-	-3.941	-	-1.568	-	-7.208
Profit/Loss after tax	-3.649	-	-3.940	-	-1.618	-	-5.908
Current Assets	58.476	51%	38.615	219%	12.103	-14%	14.103
Fixed Assets	3.503	-23%	4.539	17%	3.873	9%	3.547
Long Term Debts	42.104	55%	27.248	-	0	-	0
Current Liabilities	24.880	44%	17.262	25%	13.831	0%	13.887
Shareholders Equity	-5.005	-	-1.356	-	2.145	-43%	3.763
Balance sheet total	61.979	44%	43.154	170%	15.976	-9%	17.650
Number of employees	-		-		-		-
Auditor qualification	Not audited		Not audited		Not audited		Not audited

Ratios

Year	31.12.2014	31.12.2013	31.12.2011	31.12.2010
Solvency Ratio	-8%	-3%	13%	21%
			High Indebtedness	Moderate Indebtedness
Net margin (%)	-15%	-12%	-4%	-13%
Interest Coverage Ratio (times)	-8	-9	-4	-
Gearing (%)	-841%	-2334%	183%	96%
Liquidity Ratio/Acid Test	0	0	0	0
Risk Buffer (%)	-6%	-9%	-10%	-41%

Shareholder Information

Year	31.12.2014
Total Value of Shares	13.791
Number of Shares	82
Value of Shares	168.19

Registrations in Force

	State	Registration Date
Tax Administration	Registered	29.09.1987
Trade Register	Registered	09.09.1987
Employer Register	Registered	01.01.1988
Prepayment Register	Registered	09.09.1998
Value Added Tax-Liability	VAT-liable for business activity	01.06.1994

Current Directors

Name	Kostylev Leo Julius
Date of Birth	13.02.1960	Appointment Date	13.02.2004
Nationality	FINLAND	Function	Actual Member of Board

Other Company Officials

Name	Kostylev Mirva Tuulikki
Date of Birth	20.02.1963	Appointment Date	13.02.2004
Nationality	FINLAND	Function	Alternate Member of Board

Profit & Loss (€)

Operating Income	31.12.2014	%	31.12.2013	%	31.12.2011	%	31.12.2010
Number of weeks	52		52		52		52
Consolidated Accounts	no		no		no		no
Sales Revenue	24.730	-25%	33.097	-26%	44.707	-17%	53.863
Other Operating Income	0	-	0	-	0	-	0
Total Operating Income	24.730	-25%	33.097	-26%	44.707	-17%	53.863
Wages & Salaries	16.655	-1%	16.779	-22%	21.540	-26%	29.072
Depreciation	1.037	38%	752	-	0	-	0
Total Operating Expenses	27.992	-24%	36.654	-20%	46.003	-25%	61.075
Operating Profit/Loss	-3.262	-	-3.557	-	-1.296	-	-7.212
Result From Financial Investments
Financial Income	0	-	0	-	19	375%	4
Financial Expenses	387	1%	384	32%	291	-	0
Total Financial Investments	-387	-	-384	-	-272	-	4
Profit/Loss after Financial Items	-3.649	-	-3.941	-	-1.568	-	-7.208
Extraordinary Income	0	-	0	-	0	-	0
Extraordinary Expenses	0	-	0	-	0	-	0
Profit/Loss Before Tax	-3.649	-	-3.940	-	-1.568	-	-7.209
Tax	0	-	0	-	50	-	-1.301
Profit/Loss After Tax	-3.649	-	-3.940	-	-1.618	-	-5.908

Balance Sheet (€)

Assets	12.2014	%	12.2013	%	12.2011	%	12.2010
Number of weeks	52		52		52		52
Consolidated Accounts	no		no		no		no
Fixed Assets
Intangible Assets	1.400	-18%	1.700	-	0	-	0
Tangible Assets	2.103	-26%	2.839	-27%	3.873	9%	3.547
Other Fixed Assets	0	-	0	-	0	-	0
Total Fixed Assets	3.503	-23%	4.539	17%	3.873	9%	3.547
Current Assets
Inventories	57.666	66%	34.765	216%	10.985	0%	10.985
Trade Receivables	758	-80%	3.850	244%	1.118	-22%	1.434
Other Receivables	52	-	0	-	0	-	1.684
Cash & Bank Balances	0	-	0	-	0	-	0
Other Current Assets	0	-	0	-	0	-	0
Total Current Assets	58.476	51%	38.615	219%	12.103	-14%	14.103
Total Assets	61.979	44%	43.154	170%	15.976	-9%	17.650

Equity and Liabilities (€)

EQUITY
Share Capital	13.791	0%	13.791	0%	13.791	0%	13.791
Share Premium Reserve	0	-	0	-	0	-	0
Retained Earnings	-35.244	-	-31.595	-	-11.646	-	-10.028
Other Reserves	16.448	0%	16.448	-	0	-	0
Total Equity	-5.005	-	-1.356	-	2.145	-43%	3.763
LONG TERM LIABILITIES
Long Term Liabilities to Financial Institutions	42.104	55%	27.248	-	0	-	0
Other Long Term Liabilities Finance	0	-	0	-	0	-	0
Other Long Term Liabilities	0	-	0	-	0	-	0
Total Long Term Debts	42.104	55%	27.248	-	0	-	0
CURRENT LIABILITIES
Trade Payables	22.658	114%	10.593	106%	5.138	-37%	8.198
Liabilities to Financial Institutions	0	-	4.398	12%	3.924	9%	3.607
Other Short Term Financial Loans	0	-	0	-	0	-	0
Other Short Term Liabilities	2.222	-2%	2.271	-52%	4.769	129%	2.082
Total Current Liabilities	24.880	44%	17.262	25%	13.831	0%	13.887
Total Liabilities	66.984	50%	44.510	222%	13.831	0%	13.887
Total Equity & Liabilities	61.979	44%	43.154	170%	15.976	-9%	17.650

Other Financials (€)

Working Capital	33.596	57%	21.353	-	-1.728	-	216
Net Worth	-6.405	-	-3.056	-	2.145	-43%	3.763

Key Ratios

	31.12.2014	31.12.2013	31.12.2011	31.12.2010
Number of weeks	52	52	52	52
Consolidated Accounts	no	no	no	no
PROFITABILITY
Net Margin %	-14,8%	-11,9%	-3,5%	-13,4%
Operating Profit/Loss %	-13,2%	-10,8%	-2,9%	-13,4%
Pre-Tax Profit Margin %	-14,8%	-11,9%	-3,5%	-13,4%
TRADING PERFORMANCE
Return on Net Assets Employed %	72,9%	290,6%	-73,1%	-191,6%
Return on Total Capital %	-5,3%	-8,2%	-8,0%	-40,8%
Interest Coverage Ratio (times)	-8	-9	-4	-
Return on Capital Employed %	-9,8%	-15,2%	-73,1%	-191,6%
Return on Total Assets Employed %	-5,9%	-9,1%	-9,8%	-40,8%
Interest on Debt %	0,6%	0,9%	2,1%	0,0%
Risk Buffer %	-5,8%	-9,1%	-10,1%	-40,8%
SHORT TERM LIQUIDITY
Liquidity Ratio/Acid Test	0	0	0	0
Current Ratio %	235,0%	224,0%	88,0%	102,0%
Debtor Days	11	42	9	10
Working capital	33.596	21.353	-1.728	216
LONG TERM LIQUIDITY
Equity Ratio %	-8,1%	-3,1%	13,4%	21,3%
Gearing %	-841,2%	-2333,8%	182,9%	95,9%
Current Debt Ratio	-5	-13	6	4
Total Debt Ratio	-13	-33	6	4
Relative debt %	270,9%	134,5%	30,9%	25,8%
BUSINESS MEASURES
Change in turnover %	-25,3%	-26,0%	-17,0%	-
Turnover/employees	-	-	-	-
Sales/Net Working Capital	1	2	-26	249
Stock Turnover Ratio %	233,2%	105,0%	24,6%	20,4%
Creditor Days	334	117	42	56
Equity in Percentage %	-8,3%	-3,3%	13,4%	21,3%

Group structure

No group structure

Linked Companies

No linked companies

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.01
UK Pound	1	Rs.99.83
Euro	1	Rs.70.07

INFORMATION DETAILS

Analysis Done by :	KAS
Report Prepared by :	VNT

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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