MIRA INFORM REPORT

Report No. :	325152
Report Date :	06.06.2015

IDENTIFICATION DETAILS

Name :	OAO "ARKHANGELSKGEOLDOBYCHA"

Registered Office :	Prosp Troitskiy D 168, 163001 G Arkhangelsk

Country :	Russia

Financials (as on) :	31.12.2014

Date of Incorporation :	18.08.1995

Legal Form :	Public limited company (OAO)

Line of Business :	Building of complete constructions or parts thereof; civil engineering Retail sale of automotive fuel Wholesale of solid Wholesale of other intermediate products Other mining and quarrying n.e.c.

No. of Employee :	Not Available

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)

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, economic growth declined further, with expectations that GDP growth in 2015 could drop below zero if world oil prices continue to fall. The Russian ruble lost about half of its value in the second half of 2014 and remains volatile, contributing to increased capital outflows.

Source : CIA

Company name and address

OAO "ARKHANGELSKGEOLDOBYCHA"

PROSP TROITSKIY D 168,

163001 G ARKHANGELSK

Tel: 78182636911

Telefax: 78182636861

E-Mail: fax@agd.lukoil.com

Web: www.agddiamond.ru

Company summary

Company development

Constant company development.

Business course	Satisfactory order situation.
Terms of payment	Mostly within agreed terms, in individual cases instalment payments.

Business connection

Business connection is not denied. Credit is not assigned, it requires securities.

Established on	18/08/1995 - Public limited company (OAO)
Registered on	30/07/2002, Inspektsiya Ministerstva Rossiyskoy Federatsii po nalogam i sboram po g.Arkhangelsku, RegNr.: 1022900508036 Tax number: 2901071160 Statistical number: 01430607

Registered capital		RUB	3 874 137,-
Owner	OAO "LUKOYL" bulv Sretenskiy d 11, 101000 g Moskva Beginning of validity: 25.09.2014	%	100

Board of directors	Aleksey Igorevich Pavlov Member of the board of directors
	Lev Vladimirovich CHernov Member of the board of directors

	Pavel Vladimirovich ZHdanov Member of the board of directors
	Sergey Vadimovich Morozov Member of the board of directors

	Sergey Vladimirovich Zenkin Member of the board of directors
Employees	Mariya Vitalevna Sukhikh Director of accounting

Sole Executive Body	Aleksandr Leonidovich Martinovich Managing director
General data	Main activity: Other mining and quarrying n.e.c.	(14.50.22)

	Full name: Otkrytoe aktsionernoe obshchestvo "ARKHANGELSKOE GEOLOGODOBYCHNOE PREDPRIYATIE"
	Short name: OAO "ARKHANGELSKGEOLDOBYCHA"


	Residence address: PROSP TROITSKIY D 168, 163001 G ARKHANGELSK Tel: 78182636911 Telefax: 78182636861 E-Mail: fax@agd.lukoil.com Web: www.agddiamond.ru

Other activities
	:

	Test drilling and boring	(45.12)
	Building of complete constructions or parts thereof; civil engineering	(45.2)

	Retail sale of automotive fuel	(50.50)
	Wholesale of solid	(51.51)

	Wholesale of other intermediate products	(51.56.3)
	Architectural and engineering activities and related technical consultancy	(74.20.2)

	Architectural and engineering activities and related technical consultancy	(74.20.35)
	Architectural and engineering activities and related technical consultancy	(74.20.55)

	Architectural and engineering activities and related technical consultancy				(74.20.56)
Annual turnover	31/12/2006	Enterprise turnover	RUB	711 106 000,-

	31/12/2007	Enterprise turnover	RUB	165 952 000,-
	31/12/2008	Enterprise turnover	RUB	99 302 000,-

	31/12/2009	Enterprise turnover	RUB	16 497 000,-
	31/12/2010	Enterprise turnover	RUB	9 031 000,-

	31/12/2011	Enterprise turnover	RUB	79 198 000,-
	31/12/2012	Enterprise turnover	RUB	76 348 000,-

	31/12/2013	Enterprise turnover	RUB	114 386 000,-
	31/12/2014	Enterprise turnover	RUB	2 513 027 000,-

Events, negative data	12.08.2014 - Legal debt collection procedure Remark: A05-9978/2014
	04.12.2014 - Legal debt collection procedure Remark: A05-14588/2014

14.05.2015 - Legal debt collection procedure

Remark:
A05-5435/2015 in process

Remarks

OAO “ARKHANGELSKGEOLDOBYCHA” is a branch company of OAO “LUKOYL”. The main activity of the subject is prospecting, exploration, mining and processing of minerals.
The company has the following licenses:
ARKH 01295 VE - subsoil use – 08.10.2018;
13267 - Geological exploration, including prospecting and evaluation of mineral deposits – 29.12.2018.
According to the research, through the managing director of OAO “ARKHANGELSKGEOLDOBYCHA”, Aleksandr Leonidovich Martinovich, the company is affiliated with following legal persons:
OOO “POKACHEVSKOE UTT” – OGRN: 1088607000030, Khanty-Mansiyskiy AO – Yugra, Pokachi. Aleksandr Leonidovich Martinovich was the managing director of this company.
Affiliation through the managing director with other legal subjects has not been revealed.
Debt collection of the subject (as claimant):
In 2014: 50 060 594, 04 RUB.
The company had 2 state contracts on the total sum of 1 018 277 RUB in 2007.
According to the information, disclosed by the Federal Tax Service, OAO “ARKHANGELSKGEOLDOBYCHA” 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 “ARKHANGELSKGEOLDOBYCHA” does not have delays in social payments.
According to the information, disclosed by the Federal Labor Service, OAO “ARKHANGELSKGEOLDOBYCHA” does not plan to attract foreign employees.
According to the research, OAO “ARKHANGELSKGEOLDOBYCHA” 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 “ARKHANGELSKGEOLDOBYCHA” 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.

A. 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).
B. 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).
C. The enclo

sed balance of 2014 is originated from official source, it is authenticated by the auditor . (31.12.2014 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).

Financial statement

BALANCE	A 31.12.2012	B 31.12.2013	C 31.12.2014
1. ASSETS
I. FIXED ASSETS
Intangible assets	931	2 160	762
The results of research and development	0	0	0
Intangible research assets	0	0	0
Tangible research assets	0	0	0
Fixed assets	10 515 031	22 275 867	23 361 959
Profitable investments in tangible assets	249 440	164 198	62 984
Financial investments	5	0	92 303
Deferred tax assets	931 191	23 780	53 413
Other non-current assets	5 738 521	3 032 932	2 638 945
TOTAL IN SECTION I.	17 435 119	25 498 937	26 210 366
II. CURRENT ASSETS
Inventories	203 740	2 808 066	7 358 402
VAT on acquired assets	61 011	28 955	0
Accounts receivable	1 223 432	1 640 967	2 094 810
Financial investments (excluding the monetary equivalent)	0	0	0
Cash and monetary equivalents	2 139	2 105	2 085
Other current assets	164	0	538
TOTAL IN SECTION II.	1 490 486	4 480 093	9 455 835
BALANCE	18 925 605	29 979 030	35 666 201
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	1 874	1 874	3 874
Treasury stock	0	0	0
Revaluation of fixed assets	0	0	0
Additional capital (without revaluation)	0	0	7 002 000
Reserve capital	0	0	0
Retained earnings (uncovered loss)	38 172	-1 219 459	-4 886 381
TOTAL IN SECTION III.	40 046	-1 217 585	2 119 493
IV. LONG-TERM LIABILITIES
Borrowed funds	15 650 217	23 586 052	20 346 750
Deferred tax liabilities	650 437	1 387 446	2 492 784
Provisions	0	0	406 151
Other liabilities	0	0	0
TOTAL IN SECTION IV.	16 300 654	24 973 498	23 245 685
V. SHORT-TERM LIABILITIES
Borrowed funds	2 044 932	4 717 246	9 278 451
Payables	514 499	1 460 352	843 282
Deferred income	0	0	0
Provisions	25 474	45 519	179 290
Sonstige Verbindlichkeiten	0	0	0
TOTAL IN SECTION V.	2 584 905	6 223 117	10 301 023
BALANCE	18 925 605	29 979 030	35 666 201
A. The enclosed profit and loss account of 2012 is originated from official source, no data available about authentication. (31.12.2012 - 1000 RUB) B. The enclosed profit and loss account of 2013 is originated from official source, no data available about authentication. (31.12.2013 - 1000 RUB) C. The enclosed profit and loss account of 2014 is originated from official source, it is authenticated by the auditor . (31.12.2014 - 1000 RUB)

PROFIT AND LOSS ACCOUNT	A 31.12.2012	B 31.12.2013	C 31.12.2014
Turnover	76 348	114 386	2 513 027
Cost of sales	65 573	88 039	2 646 390
Gross profit (loss)	10 775	26 347	-133 363
Selling expenses	0	0	23 521
Administrative expenses	260 066	316 162	402 736
Sales profit (loss)	-249 291	-289 815	-713 602
Earnings from other entities	0	0	153 982
Interest receivable	2	2	527
Interest payable	369 805	785 020	2 006 949
Other operating income	12 899	1 903 870	460 986
Other operating expenses	154 331	440 738	332 179
Profit (loss) before tax	-760 526	388 299	-2 591 217
Current profit tax	0	0	1 529 682
Permanent tax liabilities (assets)	1 005	1 566 760	64 266
Change in deferred tax liabilities	156 267	737 009	-1 105 338
Change in deferred tax assets	309 377	-907 411	29 633
Different	-12 423	1 510	-1 529 682
Net profit (loss)	-594 993	-1 257 631	-3 666 922
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	0	0
Total financial result for period	-594 993	-1 257 631	-3 666 922

RATIOS		2012	2013	2014
	Current ratio	0,58	0,72	0,92
	Quick ratio	0,5	0,27	0,2

	Average Collection Period	5213	4570	271
	Payables turnover Period	3251	4094	159

	Debt ratio	1	1,04	0,94
	Equity to total assets ratio	0	-0,04	0,06

	Funding ratio	0	-0,04	0,06
	Return on sales	-779,32	-1099,46	-145,92

	Return on Assets	-4	-5,14	-11,17
	Return on Equity	-176,27	214	-813,15

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.89
UK Pound	1	Rs.97.98
Euro	1	Rs.71.82

INFORMATION DETAILS

Analysis Done by :	RAS

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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Financial statement

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