MIRA INFORM REPORT

Report No. :	319627
Report Date :	04.05.2015

IDENTIFICATION DETAILS

Name :	OTKRYTOE AKTSIONERNOE OBSHCHESTVO VOLGA

Registered Office :	Ul Gorkogo d 1, 606407 Nizhegorodskaya oblast, G Balakhna

Country :	Russia

Financials (as on) :	30.09.2014

Date of Incorporation :	13.04.1994

Com. Reg. No.:	1025201418989

Legal Form :	Public Limited Company

Line of Business :	Manufacture of Paper and Paperboard

No. of Employees :	2040 [2013]

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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 Identification

OAO "Volga"
Ul Gorkogo d 1,
606407 Nizhegorodskaya oblast, g Balakhna

Tel: 78314441010
Telefax: 78314441011
E-Mail: info@volga-paper.ru
Web: www.volga-paper.ru

Company summary

Company development

Constant company development.

(29)

Business course	Good order situation.	(21)
Terms of payment	Mostly within agreed terms, partly dalays of payments / payment reminders.	(32)

Business connection	Business connection appears permissable.	(31)
Credit limit	RUB 21 900 000,- EUR 400 989,-

Established on	13/04/1994 - Public limited company (OAO)
Registered on	30/08/2002, Mezhrayonnaya inspektsiya Federalnoy nalogovoy sluzhby № 5 po Nizhegorodskoy oblasti, RegNr.: 1025201418989 Tax number: 5244009279 Statistical number: 00279278

Registered capital		RUB	1 121 838 565,-
Stockholders	Nizhniy Nyusprint KHoldingz Limited Zinas Kanter 16-18, Limassol, Cyprus Beginning of validity: 26.12.2013	%	98,98

Board of directors	Aleksandr Genin Member of the board of directors
	Dmitriy Aleksandrovich Donchenko Managing director

	Maksim Aleksandrovich Goldman Member of the board of directors
	Natalya Valerevna ZHarkikh Member of the board of directors

	Sergey Vladimirovich Drobizhev Member of the board of directors
	SHalva Petrovich Breus Member of the board of directors

General data	Main activity: Manufacture of paper and paperboard	(21.12)
	Full name: Otkrytoe aktsionernoe obshchestvo "Volga"

	Short name: OAO "Volga"

	Residence address: ul Gorkogo d 1, 606407 Nizhegorodskaya oblast, g Balakhna Tel: 78314423000 78314441010 Telefax: 78314441011 E-Mail: info@volga-paper.ru Web: www.volga-paper.ru
	Representative office: YAroslavov val 14-d, of 89, 01034 g Kiev

	Address of the company premises: ul Neglinnaya d 15, 127051 g Moskva Tel: 74956579750
	OAO "Volga" is the manufacturer producing different kind of paper for book publishing and printing industries. The total annual output of manufacture is over 550 000 tons of paper. In 2014 the company planned program of renovation and modernization of its equipment.

Other activities
Employees	2012	2213 employees

	2013	2040 employees
Annual turnover	31/12/2006		Enterprise turnover	RUB	7 554 493 000,-

	31/12/2007	Enterprise turnover	RUB	8 464 869 000,-
	31/12/2008	Enterprise turnover	RUB	9 138 724 000,-

	31/12/2009	Enterprise turnover	RUB	8 992 328 000,-
	31/12/2010	Enterprise turnover	RUB	8 895 678 000,-

	31/12/2011	Enterprise turnover	RUB	9 885 572 000,-
	31/12/2012	Enterprise turnover	RUB	10 279 500 000,-

	31/12/2013	Enterprise turnover	RUB	9 735 883 000,-
Events, negative data	29.08.2014 - Legal debt collection procedure Remark: A43-22368/2014: 74 536,64 RUB

	19.02.2015 - Legal debt collection procedure Remark: A43-3737/2015: 1 069 352 180,62 RUB - in process
	27.02.2015 - Legal debt collection procedure Remark: A43-4517/2015: 73 580 865,47 RUB - in process

	31.03.2015 - Legal debt collection procedure Remark: A43-7475/2015: 36 000,00 RUB - in process
	16.04.2015 - Legal debt collection procedure Remark: A43-9201/2015: 7 961 253,38 RUB - in process

29.04.2015 - Legal debt collection procedure

Remark:
A43-10516/2015: 701 594,91 RUB - in process

Remarks

OAO "Volga" is one of the biggest Russian paper plant producing monthly about 12 thousand tons of news paper.
During the phone call representative of company informed that business premises at ul Gorkogo d 1, 606407 Nizhegorodskaya oblast, g Balakhna are owned by the company.
The company has some licenses:
№ 3-B/01388 - activities on installation, maintenance and repair of fire safety of buildings and structures- unlimited;
№ VP-00-011304 - operation with the fire risk manufactures- unlimited;
№ EH-00-011282 - operation with chemically dangerous industrial objects – unlimited.
Through the managing director of OAO "Volga", Dmitriy Aleksandrovich Donchenko, the company is affiliated with:
OOO "SITI INVEST" – INN: 7704557633, g Moskva – active legal entity. Dmitriy Aleksandrovich Donchenko was previously the managing director of this company;
OOO " TOLSTOSHCHEKOV" – INN: 7717657699, g Moskva – active legal entity. Dmitriy Aleksandrovich Donchenko was previously the managing director of this company;
OOO " NAIS TSENTR " – INN: 7715638041, g Moskva – by 30 April, 2015 the legal entity is in process of liquidation. Dmitriy Aleksandrovich Donchenko was previously the managing director of this company;
OOO "OST WEST CAPITAL" – INN: 7707656248, g Moskva – the legal entity is non-active since November, 2014. Dmitriy Aleksandrovich Donchenko was previously the managing director of this company.
According to available information, in 2013-2015 OAO "Volga" had several state contracts for the total sum:
In 2014: 4 695 062,00 RUB.
In 2012-2014 OAO “Volga” participated in more than 200 court cases as a claimant for a total sum about 983 159 329,00 RUB.
17 state inspections of the company were planned within 2013-2015 with the following purposes:
-control over compliance with rules and regulations in the field of civil defense protection of population and territories from emergency situations of natural and technogenic character;
- compliance with the mandatory requirements of the law for safety in operation with railway rolling mashines;
-verification of compliance with the rules of technical operation of port waterworks;
-state control over observance of the law on energy saving and energy efficiency;
-federal government supervision of usage of nuclear energy;
-checking the compliance of labor legislation;
-compliance with quotas for admission of persons with disabilities
Acсording to information, disclosed by the Federal Tax Service, OAO "Volga" does not have tax arrears, company is not going to be excluded from the state register as non-active.
According to information, disclosed by the Pension Fund of Russian Federation, the company does not have delays in social payments.
According to information, disclosed by the Federal Labor Service, the company does not plan to attract foreign employees.
The company is not in the list of default debtors, the Register of unfair suppliers, the blacklist of Russian companies.
The management of OAO "Volga" is not in the list of default debtors, the register of disqualified persons, the blacklist of Russian Private Persons.

Bank relations	VOLGO-VYATSKIY BANK SBERBANKA R: Central address: RU NIZHNIY NOV�, UL.OKTYABRSKAYA,35 Account number: 40702810742140101056 ZAO YUNIKREDIT BANK: Central address: RU MOSKVA, PRECHISTENSKAYA NAB.,9 Account number: 40702810800010665888 NOMOS-BANKA: Central address: RU NIZHNIY NOV�, UL.STUDENAYA,32 Account number: 40702810600080000049 ALFA-BANK: Central address: RU MOSKVA, UL.KALANCHEVSKAYA,27 Account number: 40702810301200001697 ABSOLYUT BANK: Central address: RU NIZHNIY NOV�, UL.STUDENAYA,68A Account number: 40702810422620000682 NIZHEGORODSKIY: Central address: RU NIZHNIY NOV�, UL.PISKUNOVA,45 Account number: 40702810700010000712 FILIAL OAO BANK VTB V G.NIZHNEM: Central address: RU NIZHNIY NOV�, GSP 78,UL.RESHETNIKOVSKAYA,4 Account number: 40702810500240013106 ALFA-BANK: Central address: RU MOSKVA, UL.KALANCHEVSKAYA,27 Account number: 40702810301200001697
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).

Balance	A 31.12.2012	B 31.12.2013
1. ASSETS
I. FIXED ASSETS
Intangible assets	22	16
The results of research and development	0	0
Intangible research assets	0	0
Tangible research assets	0	0
Fixed assets	1 556 831	1 623 108
Profitable investments in tangible assets	0	0
Financial investments	852 398	69 928
Deferred tax assets	12 475	91 704
Other non-current assets	309 059	1 093 434
TOTAL IN SECTION I.	2 730 785	2 878 190
II. CURRENT ASSETS
Inventories	807 440	745 158
VAT on acquired assets	144 042	250 061
Accounts receivable	1 500 212	1 394 484
Financial investments (excluding the monetary equivalent)	15 519	0
Cash and monetary equivalents	31 930	7 144
Other current assets	1 871	359
TOTAL IN SECTION II.	2 501 014	2 397 206
BALANCE	5 231 799	5 275 396
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	1 121 839	1 121 839
Treasury stock	0	0
Revaluation of fixed assets	1 598 552	1 596 333
Additional capital (without revaluation)	68 366	68 366
Reserve capital	168 276	168 276
Retained earnings (uncovered loss)	1 114 718	795 617
TOTAL IN SECTION III.	4 071 751	3 750 431
IV. LONG-TERM LIABILITIES
Borrowed funds	0	0
Deferred tax liabilities	174 115	185 323
Provisions	0	0
Other liabilities	0	0
TOTAL IN SECTION IV.	174 115	185 323
V. SHORT-TERM LIABILITIES
Borrowed funds	444 663	800 167
Payables	495 427	529 982
Deferred income	0	0
Provisions	45 448	9 493
Sonstige Verbindlichkeiten	395	0
TOTAL IN SECTION V.	985 933	1 339 642
BALANCE	5 231 799	5 275 396
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)

Profit and loss account	A 31.12.2012	B 31.12.2013
Turnover	10 279 500	9 735 883
Cost of sales	9 211 334	9 170 782
Gross profit (loss)	1 068 166	565 101
Selling expenses	541 467	528 299
Administrative expenses	469 994	443 938
Sales profit (loss)	56 705	-407 136
Earnings from other entities	0	0
Interest receivable	1 378	644
Interest payable	41 054	61 001
Other operating income	87 843	225 376
Other operating expenses	116 994	132 502
Profit (loss) before tax	-12 122	-374 619
Current profit tax	8 334	0
Permanent tax liabilities (assets)	8 798	6 903
Change in deferred tax liabilities	2 325	11 208
Change in deferred tax assets	4 286	79 229
Different	84 972	15 109
Net profit (loss)	-103 467	-321 707
Results of fixed assets revaluation, non-includedin net profit/loss for period	0	0
Result of other transactions, non included in net profit/loss for period	0	0
Total financial result for period	-103 467	-321 707
A. The enclosed balance of 2014 is originated from official source, no data available about authentication. (30.09.2014 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).

Balance	A 30.09.2014
1. ASSETS
I. FIXED ASSETS
Intangible assets	100
The results of research and development	0
Intangible research assets	0
Tangible research assets	0
Fixed assets	2 375 985
Profitable investments in tangible assets	0
Financial investments	16
Deferred tax assets	79 734
Other non-current assets	1 220 844
TOTAL IN SECTION I.	3 676 679
II. CURRENT ASSETS
Inventories	738 745
VAT on acquired assets	226 817
Accounts receivable	2 193 871
Financial investments (excluding the monetary equivalent)	647
Cash and monetary equivalents	50 686
Other current assets	359
TOTAL IN SECTION II.	3 211 125
BALANCE	6 887 804
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	1 121 839
Treasury stock	0
Revaluation of fixed assets	1 596 333
Additional capital (without revaluation)	68 366
Reserve capital	168 276
Retained earnings (uncovered loss)	872 431
TOTAL IN SECTION III.	3 827 245
IV. LONG-TERM LIABILITIES
Borrowed funds	747 637
Deferred tax liabilities	210 160
Provisions	0
Other liabilities	517 213
TOTAL IN SECTION IV.	1 475 010
V. SHORT-TERM LIABILITIES
Borrowed funds	18 740
Payables	1 554 043
Deferred income	0
Provisions	12 766
Sonstige Verbindlichkeiten	0
TOTAL IN SECTION V.	1 585 549
BALANCE	6 887 804
A. The enclosed profit and loss account of 2014 is originated from official source, no data available about authentication. (30.09.2014 - 1000 RUB)

Profit and loss account	A 30.09.2014
Turnover	7 188 485
Cost of sales	6 582 603
Gross profit (loss)	605 882
Selling expenses	342 925
Administrative expenses	312 158
Sales profit (loss)	-49 201
Earnings from other entities	0
Interest receivable	925
Interest payable	64 272
Other operating income	324 648
Other operating expenses	98 827
Profit (loss) before tax	113 273
Current profit tax	0
Permanent tax liabilities (assets)	34 152
Change in deferred tax liabilities	-24 837
Change in deferred tax assets	-11 970
Different	348
Net profit (loss)	76 814
Results of fixed assets revaluation, non-includedin net profit/loss for period	0
Result of other transactions, non included in net profit/loss for period	0
Total financial result for period	76 814

Ratios		2011	2012	2013
	Current ratio	n/a	2,54	1,79

	Quick ratio	n/a	1,72	1,23
	Average Collection Period	n/a	55,74	54,26

	Payables turnover Period	n/a	22,07	20,41
	Debt ratio	n/a	0,22	0,29

	Equity to total assets ratio	n/a	0,78	0,71
	Funding ratio	n/a	3,51	2,46

	Return on sales	n/a	-1,01	-3,3
	Return on Assets	n/a	-1,93	-6,12

Return on Equity

n/a

-2,51

-8,23

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.57
UK Pound	1	Rs.97.99
Euro	1	Rs.70.53

INFORMATION DETAILS

Analysis Done by :	SUB

Report Prepared by :	TPT

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.

MIRA INFORM REPORT

Company Identification

Company summary

Unit