MIRA INFORM REPORT

Report No. :	324734
Report Date :	08.06.2015

IDENTIFICATION DETAILS

Name :	OTKRYTOE AKTSIONERNOE OBSHCHESTVO "MODNYY KONTINENT"
Registered Office :	Ul Bolshaya Spasskaya D 27, 129010 G Moskva
Country :	Russia
Financials (as on) :	31.12.2013
Date of Incorporation :	20.02.2008
Com. Reg. No.:	1087746249832
Legal Form :	Public limited company
Line of Business :	Agents involved in the sale of textiles
No. of Employee :	Not Available

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Russia	B1	B1

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 "MODNYY KONTINENT"

ul Bolshaya Spasskaya d 27,
129010 g Moskva

Tel: 74956578081
Telefax: 74956578084
E-Mail: info@incity.ru
Web: www.incity.ru

Company development

Constant company development.

Business course

Good order situation.

Terms of payment

Mostly within agreed terms, in individual cases instalment payments.

Business connection

Business connection appears permissable.

Established on

20/02/2008 - Public limited company (OAO)

Registered on

20/02/2008, Mezhrayonnaya inspektsiya Federalnoy nalogovoy sluzhby № 46 po g. Moskve,

RegNr.: 1087746249832
Tax number: 7708663960
Statistical number: 70054227

Registered capital

RUB 132 131 100,-

Stockholders

Nelli Ivanovna Gruzdeva

%

50,1369

YUnayted Kepital Partners Selekted Essets Limited Naosis 1 Karapatakis Bilding, п/я 6018 Larnaka

%

25,971

Aleksandr Viktorovich Popov

%

8,8371

Vladislav Anatolevich Kulibaba

%

6,5128

Viktorovna Ekaterina Kostrubina

%

0,1989

	Grigoriy Vladimirovich Gruzdev	%	0,0984
Board of directors

Aleksandr Viktorovich Popov
Member of the board of directors

Ekaterina Evgenevna YAstrebova
Member of the board of directors

Grigoriy Vladimirovich Gruzdev
Member of the board of directors

Ilya Viktorovich SHCHerbovich
Member of the board of directors

Sergey Timofeevich Gruzdev
Member of the board of directors

Viktoriya Igorevna Lazareva
Member of the board of directors

Vladislav Anatolevich Kulibaba
Member of the board of directors

Sole Executive Body
	Viktorovna Ekaterina Kostrubina Managing director

	Main activity: Agents involved in the sale of textiles	(51.16)
General data

Full name:

Otkrytoe aktsionernoe obshchestvo "Modnyy Kontinent"

Name in foreign language:

Open Joint Stock Company "Fashion Continent"

Short name:

OAO "Modnyy Kontinent"

Residence address:

ul Bolshaya Spasskaya d 27, 129010 g Moskva

Permanent address:

ul. Letnikovskaya d. 10 str. 5, 115114 g. Moskva
Tel: 74956578081
Telefax: 74956578084
E-Mail: info@incity.ru
Web: www.incity.ru

Other activities

Agents specializing in the sale of particular products or ranges of products n.e.c.

(51.18.25)

Wholesale of alcoholic and other beverages

(51.34)

Wholesale of tobacco products

(51.35)

Wholesale of clothing and footwear

(51.42)

Wholesale of china and glassware

(51.44.2)

Wholesale of perfume and cosmetics

(51.45)

Retail sale of alcoholic and other beverages

(52.25)

Retail sale of tobacco products

(52.26)

Retail sale of cosmetic and toilet articles

(52.33)

Retail sale of textiles

(52.41.1)

Retail sale of clothing

(52.42)

Retail sale of footwear and leather goods	(52.43)
Restaurants	(55.30)

Bars	(55.40)
Storage and warehousing	(63.12)

Letting of own property

(70.20.2)

Renting of other land transport equipment

(71.21.1)

Advertising

(74.40)

Other entertainment activities n.e.c.

(92.34)

Washing and dry-cleaning of textile and fur products

(93.01)

	31/12/2007	Enterprise turnover	RUB	1 085 086 000,-
Annual turnover

31/12/2008

Enterprise turnover

RUB

1 962 869 000,-

31/12/2009

Enterprise turnover

RUB

2 666 157 000,-

31/12/2010

Enterprise turnover

RUB

4 380 299 000,-

31/12/2011

Enterprise turnover

RUB

6 243 608 000,-

31/12/2012

Enterprise turnover

RUB

8 049 164 000,-

31/12/2013

Enterprise turnover

RUB

10 159 511 000,-

Events, negative data
	28.03.2014 - Legal debt collection procedure Remark: A40-46370/2014; 416 521 RUB

11.07.2014 - Legal debt collection procedure

Remark:
A56-43998/2014

11.11.2014 - Legal debt collection procedure

Remark:
A41-70438/2014; 331 187 RUB

26.12.2014 - Legal debt collection procedure

Remark:
A40-218620/2014 in process

02.02.2015 - Legal debt collection procedure

Remark:
A40-15576/2015 accepted by the court of the 1st instance

03.02.2015 - Legal debt collection procedure

Remark:
A40-16512/2015

16.02.2015 - Legal debt collection procedure

Remark:
A40-26093/2015

09.04.2015 - Legal debt collection procedure

Remark:
A41-23699/2015 in process

13.04.2015 - Legal debt collection procedure

Remark:
A40-65402/2015 in process

30.04.2015 - Legal debt collection procedure

Remark:
A40-81891/2015 in process

Remarks

As open sources inform, the main activity of OAO “Modniy Kontinent” is retail sale of clothes and accessories under the brandname INCITY. According to official website of the company, the subject is represented by more than 450 shops in Russia, Ukraine, Belarus and Kirgizia.
Since 20.02.2008 the register of shareholders of OAO “Modniy Kontinent” is held by a private non-state registrar:
OOO “REESTR-RN” – Reg. num.: 1027700172818.
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 31.03.2015.
According to the research, affiliation through the director of OAO “Modniy Kontinent” with other legal persons has not been revealed.
The company participated in court cases as claimant and collected the following amount of debt:
In 2014: 987 610 RUB
In 2013: 3 827 485 RUB
According to the information, disclosed by the Federal Tax Service, OAO “Modniy Kontinent” 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 “Modniy Kontinent” does not have delays in social payments.
According to the information, disclosed by the Federal Labor Service, OAO “Modniy Kontinent” does not plan to attract foreign employees.
According to the research, OAO “Modniy Kontinent” 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 “Modniy Kontinent” 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

ZAO YUNIKREDIT BANK:
Central address: RU MOSKVA, PRECHISTENSKAYA NAB.,9
Account number: 40702810200014144112

1. 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).
   
   
2. 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).

3. The enclosed balance of 2013 is originated from official source, it is authenticated by the auditor . (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	220	270	6 193
The results of research and development	0	0	0
Intangible research assets	0	0	0
Tangible research assets	0	0	0
Fixed assets	213 866	339 821	441 412
Profitable investments in tangible assets	0	0	0
Financial investments	30 275	30 300	30 321
Deferred tax assets	10 080	12 627	23 098
Other non-current assets	29 455	20 415	21 569
TOTAL IN SECTION I.	283 896	403 433	522 593
II. CURRENT ASSETS
Inventories	1 047 885	1 308 280	1 521 752
VAT on acquired assets	5 379	14 456	16 477
Accounts receivable	829 801	1 604 119	1 102 011
Financial investments (excluding the monetary equivalent)	0	0	0
Cash and monetary equivalents	96 315	411 218	877 999
Other current assets	5 168	15 312	28 260
TOTAL IN SECTION II.	1 984 548	3 353 385	3 546 499
BALANCE	2 268 444	3 756 818	4 069 092
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	132 131	132 131	132 131
Treasury stock	0	0	0
Revaluation of fixed assets	0	0	0
Additional capital (without revaluation)	317 369	317 369	317 369
Reserve capital	0	0	0
Retained earnings (uncovered loss)	1 218 310	1 616 083	1 833 129
TOTAL IN SECTION III.	1 667 810	2 065 583	2 282 629
IV. LONG-TERM LIABILITIES
Borrowed funds	0	27 206	27 200
Deferred tax liabilities	0	0	0
Provisions	0	0	0
Other liabilities	0	0	0
TOTAL IN SECTION IV.	0	27 206	27 200
V. SHORT-TERM LIABILITIES
Borrowed funds	175 412	787 659	840 135
Payables	383 812	830 355	854 885
Deferred income	0	0	0
Provisions	41 410	46 015	64 243
Sonstige Verbindlichkeiten	0	0	0
TOTAL IN SECTION V.	600 634	1 664 029	1 759 263
BALANCE	2 268 444	3 756 818	4 069 092

1. The enclosed profit and loss account of 2011 is originated from official source, no data available about authentication. (31.12.2011 - 1000 RUB)
   
   
2. The enclosed profit and loss account of 2012 is originated from official source, no data available about authentication. (31.12.2012 - 1000 RUB)

3. The enclosed profit and loss account of 2013 is originated from official source, it is authenticated by the auditor . (31.12.2013 - 1000 RUB)

profit and loss account

	A 31.12.2011	B 31.12.2012	C 31.12.2013
Turnover	6 243 608	8 049 164	10 159 511
Cost of sales	2 782 569	3 646 049	4 649 906
Gross profit (loss)	3 461 039	4 403 115	5 509 605
Selling expenses	2 389 158	3 047 280	4 024 336
Administrative expenses	537 446	654 637	837 914
Sales profit (loss)	534 435	701 198	647 355
Earnings from other entities	0	0	0
Interest receivable	6	1 063	340
Interest payable	12 380	32 520	42 819
Other operating income	364 599	439 908	765 267
Other operating expenses	552 047	471 877	953 152
Profit (loss) before tax	334 613	637 772	416 991
Current profit tax	104 203	143 447	111 318
Permanent tax liabilities (assets)	36 388	13 348	17 401
Change in deferred tax liabilities	0	0	0
Change in deferred tax assets	893	2 546	10 471
Different	0	0	0
Net profit (loss)	231 303	496 871	316 144
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	231 303	496 871	316 144

Ratios

2011

2012

2013

Current ratio

3,3

2,02

2,02

Quick ratio

1,56

1,23

1,15

Average Collection Period

49,15

55,18

48,61

Payables turnover Period

43,75

60,77

66,14

Debt ratio

0,26

0,45

0,44

Equity to total assets ratio

0,74

0,55

0,56

Funding ratio

2,78

1,22

1,28

Return on sales

3,7

6,17

3,11

Return on Assets

11,64

16,49

8,08

Return on Equity

15,22

26,62

14,54

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.90
UK Pound	1	Rs.97.98
Euro	1	Rs.71.82

INFORMATION DETAILS

Analysis Done by :	RAS
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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.