MIRA INFORM REPORT

Report No. :	310066
Report Date :	07.03.2015

IDENTIFICATION DETAILS

Name :	ION MOS SRL
Registered Office :	021236 Bucharest, sector 2 – Rovine Street No. 3, Bl. 65, Ap. 4
Country :	Romania
Financials (as on) :	30.06.2014
Date of Incorporation :	August, 1992
Legal Form :	Limited Liability Company
Line of Business :	· Engaged as Manufacturer of condiments and seasonings · Engaged in providing Complete Solutions for the Meat Industry Subject product ranges includes · Meat flavors · Injected and tumbled hams · Specialties and kneaded hams · Mortadela, hot dogs, sausages, salami cooked · Sausage and raw ham · Canned meat or vegetable · Small and fresh sausages · Drum and aspic products · Chicken fresh or chilled · Mortadela, frankfuter, cooked sausages · Crude salami and hams · Vegetarian products · Meat and vegetable sterilized cans · Romanian “mici” and fresh products · Aspic products · Fresh or frozen chicken meat
No of Employees :	160 (30.06.2014)

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)
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 name & address

NAME OF THE COMPANY	ION MOS SRL
Address	021236 Bucharest, sector 2 – Rovine Street No. 3, Bl. 65, Ap. 4
Operating Office	Str. Lt. George Silache 1-3; Red - Chiajna - Ilfov, Romania
Phone no. Cell phone no.	0040-21-3522211 0040-722-624020			Fax no.			0040-21-3522233
Web-site	www.ionmos.eu / http://www.caranda.ro			E-mail address			office@ionmos.eu
HISTORIC/OFFICIAL DATA
Date of foundation	August, 1992
Present legal form	limited liability company, entire Romanian capital
Registered with the Trade Registry	J40/21693/1992
VAT no.	3539523
Registered capital	4,710,020 RON
Shareholders	Individuals
	1. Mr. Caragui Ion – Romanian citizen, born on 14.07.1947
	Participation					50%
	2. Mr. Caragui Ioan Dragos – Romanian citizen, born on 12.01.1975
	Participation					50%
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
- total	2009	2010		2011	2012			2013	30.06.2014
	133	144		179	189			166	160
BUSINESS ACTIVITY - Manufacture of condiments and seasonings, according to the national Trade Registry updated files (NACE: 1084) According to the company’s web-site ION MOS provides complete solutions for the meat industry. Its products are available on numerous markets from Eastern Europe and Asia. It delivers blends of ingredients designed for the preparation of various meat products. The company was founded in 1992 and today it is active in several countries: Romania, Republic of Moldova, Ukraine, Croatia, Russia, Poland, China, Bulgaria and the Czech Republic. Products · Meat flavors · Injected and tumbled hams · Specialties and kneaded hams · Mortadela, hot dogs, sausages, salami cooked · Sausage and raw ham · Canned meat or vegetable · Small and fresh sausages · Drum and aspic products · Chicken fresh or chilled · Mortadela, frankfuter, cooked sausages · Crude salami and hams · Vegetarian products · Meat and vegetable sterilized cans · Romanian “mici” and fresh products · Aspic products · Fresh or frozen chicken meat For more details, please visit www.ionmos.eu According to the National Trade Registry updated files, the company has currently 11 work-shops in Ilfov county (Chiajna / Rosu & Dragomiresti Deal), Brasov, Constanta, Pascani, Baia Mare, Alba Iulia, Insuratei (Braila county), Dumbravita (Timis county), Bucharest, sector 2, Mihaesti (Valcea county)
OTHER PARTICIPATION
1. Company’s participation	not applicable
2. Shareholders other participation	1. Caragui Ion		not applicable
	2. Caragui Ioan Dragos		EMERSON TECHNIK MASCHINENFABRIK SRL – J40/14790/2013, VAT 32537429
			EMERSON TECHNIK SRL – J40/7611/2007, VAT 21571840
			HELMUT GRUN SRL – J40/21178/2006 (former J13/706/2001), VAT 13713081
			ION MOS CAPITAL SRL – J40/6520/2004, VAT 16357582
			ION MOS ECHIPAMENTE SI UTILAJE SRL – J40/6542/2004, VAT 16357574
			RENTING SYSTEM SRL – J40/6153/2004, VAT 16337534
			SET MOBILE SRL – J40/16520/2003, VAT 15967256

REAL ESTATE

(RON)

- lands & buildings

2009

2010

2011

2012

2013

19,842,187

26,530,597

28,707,683

33,295,822

N/A

TANGIBLES*

45,027,824 RON, 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

BRD-GSG, Banc Post

MANAGEMENT

 as officially registered with the National Trade Registry

Administrators

Mr. Caragui Ion – appointed on 29.06.1992 for unspecified period

Mr. Caragui Ioan Dragos – appointed on 20.03.2001 for unlimited period

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 = 4.4847 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	1,460,207	876,587	943,415	660,473
TANGIBLES - TOTAL	41,230,161	45,594,294	47,966,184	45,027,824
FINANCIALS - TOTAL	2,813,652	4,001,855	2,117,271	3,090,701
FIXED ASSETS - TOTAL	45,504,020	50,472,736	51,026,870	48,778,998
STOCKS - TOTAL	15,168,490	17,063,660	16,730,659	13,792,901
CLAIMS - TOTAL	25,482,274	24,315,893	27,244,777	28,925,065
CURRENT ASSETS	41,125,808	41,979,188	44,987,131	43,725,627
PREPAID EXPENSES	52,838	37,680	101,712	300,647
DEBTS WITHIN 1 YEAR	31,221,390	32,302,472	30,954,552	28,334,624
DEBTS OVER 1 YEAR	6,527,076	7,540,461	8,295,006	6,815,903
PROVISIONS	0	0	0	0
ADVANCED INCOMES	0	0	0	0
REGISTERED CAPITAL	4,710,020	4,710,020	4,710,020	4,710,020
RESERVES from reassessment of the fixed assets	411,025	4,771,855	N/A	N/A
RESERVES	980,055	980,055	N/A	N/A
PROFITS CARRIED FORWARD	33,750,288	37,316,502	N/A	N/A
NET RESULT - PROFIT	9,082,812	4,868,239	8,547,599	2,353,403
NET RESULT - LOSS	0	0	0	0
NET WORTH	48,934,200	52,646,671	56,866,155	57,654,745
PROFIT & LOSS ACCOUNT	31.12.2011	31.12.2012	31.12.2013	30.06.2014
Turnover	83,178,716	85,922,601	92,955,111	44,873,257
Own production & services	59,773,589	66,207,156	N/A	N/A
Sales	23,759,918	20,449,966	N/A	N/A
INCOMES FROM ORDINARY OPERATING ACTIVITY	90,509,910	92,070,153	100,321,711	49,261,361
Raw materials	37,078,001	41,264,720	N/A	N/A
Costs of goods sold	17,480,255	15,587,309	N/A	N/A
Wages	5,310,588	6,303,016	N/A	N/A
Depreciations & provisions	2,769,147	3,341,816	N/A	N/A
Other operating costs	13,394,272	15,395,045	N/A	N/A
COSTS OF ORDINARY OPERATING ACTIVITY	78,421,527	84,618,833	88,909,232	46,274,577
ORDINARY OPERATING RESULT - PROFIT	12,088,383	7,451,320	11,412,479	2,986,784
ORDINARY OPERATING RESULT - LOSS	0	0	0	0
FINANCIAL INCOMES	3,595,840	1,327,432	1,170,644	1,585,651
FINANCIAL COSTS	4,892,603	2,732,553	2,328,369	1,578,009
FINANCIAL RESULT - PROFIT	0	0	0	7,642
FINANCIAL RESULT - LOSS	1,296,763	1,405,121	1,157,725	0
CURRENT RESULT - PROFIT	10,791,620	6,046,199	10,254,754	2,994,426
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	94,105,750	93,397,585	101,492,355	50,847,012
TOTAL COSTS	83,314,130	87,351,386	91,237,601	47,852,586
PRETAX RESULT - PROFIT	10,791,620	6,046,199	10,254,754	2,994,426
PRETAX RESULT - LOSS	0	0	0	0
TAX ON PROFIT	1,708,808	1,177,960	1,707,155	641,023
NET RESULT - PROFIT	9,082,812	4,868,239	8,547,599	2,353,403
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

medium, considering the number of employees

Position & trend

Large volume of activity developed, with a generally positive business evolution.

A certain profitability decline was registered since 2012 compared to the previous periods, but still looks fair.

Payments behavior – regular, within the agreed terms.

Financial standing looks constant good.

Business contacts are feasible and credit facilities suitable.

31.12.2009

31.12.2010

31.12.2011

31.12.2012

31.12.2013

30.06.2014

Turnover

RON

76,420,339

78,671,718

83,178,716

85,922,601

92,955,111

44,873,257

EURO

18,073,965

18,360,651

19,255,670

19,401,314

20,727,164

10,224,493

Gross profit

RON

11,097,765

11,383,096

10,791,620

6,046,199

10,254,754

2,994,426

EURO

2,624,702

2,656,622

2,498,234

1,365,231

2,286,609

682,288

Net profit

RON

9,345,801

9,776,385

9,082,812

4,868,239

8,547,599

2,353,403

EURO

2,210,350

2,281,643

2,102,649

1,099,248

1,905,947

536,229

30.06.2014

CREDITS & LOANS (ACTIVE BALANCE)

N/A

BALANCE CLAIMS-DEBTS

Negative

Total claim no further details are available

28,925,065

Total debts

35,150,527

- Short term no further details are available

28,334,624

- Medium term no further details are available

6,815,903

PAYMENTS BEHAVIOR

No Complaints

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded in the period 4.03.2014 – 4.03.2015

BLACKLISTING (international sanctions)

Not applicable

FINANCIAL STRENGTH

16,644 tsd 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

Good

Liquidity analysis

- current ratio

1.27

2.19

1.32

1.30

1.45

1.54

- quick ratio

0.90

1.45

0.83

0.77

0.91

1.06

Solvability analysis

Very good

- the borrowing ratio (total debts/net worth)

0.74

0.77

0.77

0.76

0.69

0.61

Profitability analysis (%)

Fluctuant since 2010 just moderate in H1 2014

- return on capital

27.47

23.37

18.35

9.25

15.03

4.08

- return on assets

15.80

13.21

10.85

5.26

8.89

2.54

- gross profit margin

14.52

14.47

12.97

7.04

11.03

6.67

Activity analysis

Debtors’ control not too good – pay attention!

- debtor’s days

93

116

112

103

107

116

- creditor’s days

48

65

53

51

n/a

n/a

Stocks turnover, times/period

9.05

6

5

5

6

3

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.20
UK Pound	1	Rs.94.71
Euro	1	Rs.68.60

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%)

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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.