MIRA INFORM REPORT

Report No. :	321996
Report Date :	20.05.2015

IDENTIFICATION DETAILS

Name :	DARIMEX INTERNATIONAL SRL
Registered Office :	Arad County / 310493 Arad, 1-3 Cameliei Street
Country :	Romania
Financials (as on) :	30.06.2014
Date of Incorporation :	08.05.1991
Com. Reg. No.:	J2/399/1991
Legal Form :	Limited Liability Company
Line of Business :	Unspecialized wholesale trade with edibles, drinks and tobacco.
No. of Employee :	220

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. 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. In the aftermath of the global financial crisis, Romania signed on to a $26 billion emergency assistance package from the IMF, the EU, and other international lenders, but GDP contracted until 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, Romanian authorities and the IMF/EU agreed to a follow-on precautionary two-year stand-by agreement, worth $5.4 billion, to continue with reforms, although Bucharest has announced that it does not intend to draw funds under the agreement. Economic growth rebounded in 2013, driven by strong industrial exports and an excellent agricultural harvest, and the current account deficit was reduced substantially. The economy closed out 2014 with 2.8% growth, down from the 3.5% posted in 2013. Industry outperformed other sectors of the economy. Exports remained the engine of economic growth, led by trade with the EU, which accounts for roughly 70% of Romania trade. In 2014, the Government of Romania succeeded in meeting its annual target for the budget deficit, the external deficit remained low, and inflation was the lowest since 1989, allowing a gradual loosening of the monetary policy throughout the year. However, progress on structural reforms has been uneven and the economy still is vulnerable to external shocks. An ageing population, weak domestic demand, tax evasion, and insufficient health-care represent top vulnerabilities.

Source : CIA

Company name and address

NAME OF THE COMPANY

DARIMEX INTERNATIONAL SRL

Address

Arad County/ 310493 Arad, 1-3 Cameliei Street

Phone no.

Cell phone no.

0040 257 289800/ 289801; 021 3520750

Fax no.

0040 257 289801; 021 3520751

Web-site

www.darimex.com

E-mail address

info@darimex.com

HISTORIC/OFFICIAL DATA

Date of foundation

8 of May 1991

Present legal form

limited liability company, joint venture of Romanian and foreign capital

Registered with the Trade Registry

J2/399/1991

VAT no.

1686943

Registered capital

4,429,575 RON

Shareholders

Individuals

1. Mr. Schouten Johan Mari- Dutch citizen , born on: 22.09.1957

Participation

74.9896%

2. Mr. Ganta Ioan , Romanian citizen, born on: 23.01.1949

Participation

0.0051%

3. Mr. Cincea Ioan , Romanian citizen, born on: 29.08.1952

Participation

15.0001%

4. Mrs. Mazilu Violeta Valentina, Romanian citizen, born on: 5.09.1968

Participation

10.0001%

5. Meynot Francois Marie Paul Louis – French citizen , Born on: 31.10.1951

Participation

0.0051%

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

2009

2010

2011

2012

2013

30.06.2014

total

221

236

231

230

225

220

BUSINESS ACTIVITY

As officially registered with the National Trade Registry updated files

- unspecialized wholesale trade with edibles, drinks and tobacco (NACE – 4639)

DARIMEX Group of Companies is one of the major Romanian Food –Industry group of companies. The group diversified its activities into natural sausage casings processing, artificial casing distribution and converting, spices and additives distribution as well as the supply of world leading Food Industry machinery and equipments with one of the best after sales and maintenance services available in Romania and Central Europe.

Short history: formally established in 1949 in Rotterdam ( the Netherlands ) and active in Romania since 1967, the company relocated to Romania in 1990 and is the result of a clear investment strategy carried out since 1998.

In 1999 Darimex Trading SRL and Darimex Romania SRL and Agroprodex SA have merged and formed DARIMEX AGROPRODEX SA .In 2003, Darimex Agroprodex SA become 100% private by purchasing the rest of the shares from the Ministry of Agriculture. In 2004 was finished the construction of a modern artificial casing plant.

In 2006, DARIMEX AGROPRODEX SA is finally renamed DARIMEX INTERNATIONAL SRL (our subject).

For more information please visit the company’s site: www.darimex.com

Work-shops:

Timis County, Timisoara, Polona Str ( Freidorf slaughter house)

Ilfov County, Otopeni , 20A, Avram Iancu Str. ( processing plant)

OTHER PARTICIPATION

1. Company’s participation

not applicable

2. Shareholders other participation

Schouten Johan Mari

DARIMEX DISTRIBUTION SRL

Reg. no.: J23/1300/2005, VAT 17756018

DARIMEX SERVICII SRL

Reg. no.: J23/2571/2002, VAT 15062877

STARTHOSTING SRL

Reg. no.: J40/7993/2006, VAT 18679037

SMARTNET SYSTEMS SRL

REg. no.: J40/7875/2006, VAT 18670038

NETSAFE SOLUTIONS SRL

Reg. no.: J40/17727/2004, VAT 16903714

PLANETEK IMPEX SRL

Reg. no.: J40/5415/1998, VAT 10667061

Cincea Ioan

PIG FARM SRL

Reg. no.: J25/111/2006, VAT 18436941

DARIMEX DISTRIBUTION SRL

Reg. no.: J23/1300/2005, VAT 17756018

Mazilu Violeta Valentina

DARIMEX DISTRIBUTION SRL

Reg. no.: J23/1300/2005, VAT 17756018

Meynot Francois Marie Paul Louis

NETSAFE SOLUTIONS SRL

Reg. no.: J40/17727/2004, VAT 16903714

REAL ESTATE (RON)

- lands & buildings

2009

2010

2011

2012

2013

16,844,684

16,256,683

15,285,857

15,062,029

14,870,759

TANGIBLES*

17,741,596 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

ROMANIAN BANK FOR DEVELOPMENT – GROUPE SOCIETE GENERALE

MANAGEMENT

· as officially registered with the National Trade Registry

Mr. Schouten Johan Mari - Administrator

Appointed on 17.07.2007, Expiration date of mandate: 17.07.2011

Mr. Cincea Bogdan-Laurentiu – General Manager

Appointed on 12.12.2014 for unspecified period

Auditor: PRICEWATERHOUSECOOPERS AUDIT SRL

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	31.12.2013	30.06.2014
INTANGIBLES - TOTAL	0	0
TANGIBLES - TOTAL	18,380,760	17,741,596
FINANCIALS - TOTAL	9,951	0
FIXED ASSETS - TOTAL	18,390,711	17,741,596
STOCKS - TOTAL	14,801,610	12,362,288
CLAIMS - TOTAL	29,597,445	34,111,730
CURRENT ASSETS	46,002,032	47,134,638
PREPAID EXPENSES	113,612	149,342
DEBTS WITHIN 1 YEAR	28,013,934	30,345,975
DEBTS OVER 1 YEAR	1,403,500	1,112,097
PROVISIONS	0	0
ADVANCED INCOMES	1,760,032	1,696,643
REGISTERED CAPITAL	4,429,575	4,429,575
RESERVES from reassessment of the fixed assets	5,562,605	5,511,241
RESERVES	16,486,218	16,909,470
NET RESULT - PROFIT	3,071,887	1,241,971
NET RESULT - LOSS	0	0
NET WORTH	33,328,889	31,870,861
PROFIT & LOSS ACCOUNT	31.12.2013	30.06.2014
Turnover	80,310,378	40,755,375
Own production & services	N/A	N/A
Sales	N/A	N/A
INCOMES FROM ORDINARY OPERATING ACTIVITY	82,050,192	41,256,653
Raw materials	N/A	N/A
Costs of goods sold	N/A	N/A
Wages	N/A	N/A
Depreciations & provisions	N/A	N/A
Other operating costs	N/A	N/A
COSTS OF ORDINARY OPERATING ACTIVITY	77,514,680	39,852,958
ORDINARY OPERATING RESULT - PROFIT	4,535,512	1,403,695
ORDINARY OPERATING RESULT - LOSS	0	0
FINANCIAL INCOMES	1,899,347	805,988
FINANCIAL COSTS	2,799,370	702,219
FINANCIAL RESULT - PROFIT	0	103,769
FINANCIAL RESULT - LOSS	900,023	0
CURRENT RESULT - PROFIT	3,635,489	1,507,464
CURRENT RESULT - LOSS	0	0
Extraordinary incomes	0	0
Extraordinary costs	0	0
EXTRAORDINARY RESULT - PROFIT	0	0
EXTRAORDINARY RESULT - LOSS	0	0
TOTAL INCOMES	83,949,539	42,062,641
TOTAL COSTS	80,342,723	40,555,177
PRETAX RESULT - PROFIT	3,606,816	1,507,464
PRETAX RESULT - LOSS	0	0
TAX ON PROFIT	534,929	265,493
NET RESULT - PROFIT	3,071,887	1,241,971
NET RESULT - LOSS	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

Constant large level of activity, with positive & remunerative returns. The figures for entirely period indicate an easily fluctuant trend of the business but within generally very good conditions.

Payment behavior is correct, no delays being reported.

Overall financial standing looks very good

Business contacts are feasible and credit facilities are suitable.

31.12.2009

31.12.2010

31.12.2011

31.12.2012

31.12.2013

30.06.2014

Turnover

RON

70,945,754

68,562,756

74,616,510

88,998,915

80,310,378

40,755,375

EURO

16,779,186

16,001,390

17,273,540

20,095,946

17,907,637

9,286,223

Gross profit

RON

7,914,961

4,544,407

4,580,947

6,225,233

3,606,816

1,507,464

EURO

1,871,946

1,060,588

1,060,478

1,405,657

804,249

343,480

Net profit

RON

6,443,117

3,660,919

3,640,213

5,088,136

3,071,887

1,241,971

EURO

1,523,844

854,3976

842,700

1,148,901

684,970

282,986

30.06.2014

CREDITS & LOANS (ACTIVE BALANCE)

N/A

BALANCE CLAIMS-DEBTS

Positive

Total claims, no further details available

34,111,730

Total debts

31,458,072

- Short term, no further details available

30,345,975

- Medium term, no further details available

1,112,097

PAYMENTS BEHAVIOR

Correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No payment incidents between 18.05.2014-18.05.2015

BLACKLISTING (international sanctions)

Not applicable

FINANCIAL STRENGTH

11,087 tsd EURO

FIRM’S RATING

C

RISK CATEGORY

Normal

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

Very good values

Liquidity analysis

- current ratio

1.75

1.63

1.77

1.62

1.64

1.55

- quick ratio

1.08

0.98

1.10

1.12

1.11

1.15

Solvability analysis

Constant in a very good condition

- the borrowing ratio (total debts/net worth)

0.57

0.68

0.69

0.94

0.88

0.99

Profitability analysis (%)

Fluctuant

- return on capital

18.89

10.59

10.43

15.03

9.22

3.90

- return on assets

12.05

6.30

5.96

7.49

4.76

1.91

- gross profit margin

11.16

6.63

6.14

6.99

4.49

3.70

Activity analysis

Debtors out of control

- debtor’s days

102

119

125

125

135

306

- creditor’s days

50

73

64

71

54

n/a

Stocks turnover, times/period

6

4

5

6

5

3

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.69
UK Pound	1	Rs.99.73
Euro	1	Rs.71.90

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%)

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.