MIRA INFORM REPORT

Report No. :	324059
Report Date :	29.05.2015

IDENTIFICATION DETAILS

Name :	CIECH SPOLKA AKCYJNA VARSOVIA SUCURSALA RAMNICU VALCEA
Registered Office :	Valcea county / 240401 Ramnicu Valcea – Uzinei Street No. 2, Office no. 114
Country :	Romania
Financials (as on) :	31.12.2013
Date of Incorporation :	July, 2013
Legal Form :	Not Available
Line of Business :	Wholesale of chemicals.
No. of Employee :	11

RATING & COMMENTS

MIRA’s Rating :

B

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)
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

CIECH SPOLKA AKCYJNA VARSOVIA SUCURSALA RAMNICU VALCEA

Address

Valcea county / 240401 Ramnicu Valcea – Uzinei Street No. 2, Office no. 114

Phone no.

0040-250-731852

Fax no.

0040-250-733382

Web-site

www.ciechgroup.com

E-mail address

Informare.Media@ciechgroup.com

HISTORIC/OFFICIAL DATA

Date of foundation

July, 2013

Present legal form

branch of CIECH SA Poland.

We inform you that the subject is a branch of the a/m company with its headquarters in Warsaw / Poland and it does not have recorded the share-capital and shareholders with the Trade Registry files.

According to the Romanian legislation (Law no. 31/1990 and Law no. 26/1990), being a branch of a foreign company, it is not obliged to declare with the Trade Registry the share-capital and the shareholders of the mother company which is not located in Romania. Comparing to the Romanian companies branches (which do not have separate B/S and P/L Account from their mother companies), in this case the subject submit with the Ministry of the Public Finance separate financial statements, by its own, as well as all the Romanian companies

Registered with the Trade Registry

J38/420/2013

VAT no.

32057510

Registered capital

as a branch of a foreign company, it does not have recorded a share-capital of its own

Shareholders

The subject of your investigation is a branch of CIECH SA Poland

Address of parent company: CIECH SA

182 Pulawska Street

02-670 Warsaw, Poland

The share capital of CIECH SA amounts to PLN 263,500,965.00 and is divided into 52,699,909 ordinary bearer shares with a nominal value of PLN 5.00 each (according to www.ciechgroup.com)

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

2013

30.06.2014

total

11

N/A

BUSINESS ACTIVITY

- wholesale with chemicals, according to the National Trade Registry updated files (NACE:4675)

The subject of your investigation is the Romanian branch of CIECH SA Poland, which is part of the Polish CIECH Group.

The activities of Ciech SA and its subsidiaries include the production, trade and distribution of chemicals as well as comprehensive service activities directed at the domestic and foreign market. The activities are handled with participation of domestic or foreign companies and international agencies of Ciech SA.

CIECH Group is one of the leaders of the European chemical market. It has a well-developed production structure (6 companies) and sales network in Poland, Europe and the world. The main products of the Group include: soda ash (the second largest European provider), baking soda, salt, fertilizers, plant protection chemicals, epoxy and polyester resins, and other organic chemical products applied in glassmaking, furniture, chemical, construction and agricultural industries.

Its annual revenues of approximately PLN 4 billion place CIECH Group among the top fifty Polish companies.

Since February 2005, CIECH S.A. has been listed on the Warsaw Stock Exchange.

Its major shareholders include KI Chemistry s. à r. l. with its registered office in Luxembourg (51.14 % shares and votes at the GM), and 'ING Otwarty Fundusz Emerytalny' (9.49%).

CIECH Group is also present in Romania through CIECH SODA ROMANIA SA, J38/250/1991, VAT 1467188 (former Uzinele Sodice GOVORA SA), part of the Soda Division of CIECH Group.

CIECH SODA ROMANIA SA is located at the same address with the subject company.

OTHER PARTICIPATION

1. Company’s participation

not applicable

2. Shareholders other participation

not applicable

REAL ESTATE / TANGIBLES

N/A

BANKS

UniCredit Tiriac Bank SA

MANAGEMENT

· as officially registered with the National Trade Registry

Representative, Director

Mr. Paprota Tomasz – Polish citizen, born on 27.04.1974

Appointed on 29.12.2014; Expiration date of mandate: 29.12.2018

Mr. Paprota Tomasz is also the Financial Manager of CIECH SODA ROMANIA SA

Phone no.: 0040-350-730395

Cell phone no.: 0040-758-031702

E-mail address: Tomasz.Paprota@ciechgroup.com

CURRENCY

Exchange rate of EURO

1 EURO = 4.4847 RON on 31.12.2013

FINANCIAL DATA: RON

N.B.: please note that according to the applicable rules, issued by the Ministry of the Public Finance, the company did not submit financial statements for 30.06.2014, as it had at 31.12.2013 a turnover lower than the minimum requested for submitting such statements (220,000 RON equal to ~50,000 EUR).

Therefore, the latest available figures are the ones for 31.12.2013

BALANCE SHEET	31.12.2013
INTANGIBLES - TOTAL	0
TANGIBLES - TOTAL	0
FINANCIALS - TOTAL	0
FIXED ASSETS - TOTAL	0
STOCKS - TOTAL	0
CLAIMS - TOTAL	103,332
CASH & BANK ACCOUNTS	5,672
CURRENT ASSETS	109,004
PREPAID EXPENSES	0
DEBTS WITHIN 1 YEAR	107,689
DEBTS OVER 1 YEAR	0
PROVISIONS	0
ADVANCED INCOMES	0
REGISTERED CAPITAL	0
RESERVES	0
NET RESULT - PROFIT	1,315
NET RESULT - LOSS	0
NET WORTH	1,315
PROFIT & LOSS ACCOUNT	31.12.2013
Turnover	97,963
Own production & services	97,963
Sales	0
INCOMES FROM ORDINARY OPERATING ACTIVITY	97,963
Raw materials	0
Costs of goods sold	0
Wages	86,910
Depreciations & provisions	0
Other operating costs	9,487
COSTS OF ORDINARY OPERATING ACTIVITY	96,397
ORDINARY OPERATING RESULT - PROFIT	1,566
ORDINARY OPERATING RESULT - LOSS	0
FINANCIAL INCOMES	0
FINANCIAL COSTS	0
FINANCIAL RESULT - PROFIT	0
FINANCIAL RESULT - LOSS	0
CURRENT RESULT - PROFIT	1,566
CURRENT RESULT - LOSS	0
Extraordinary incomes	0
Extraordinary costs	0
EXTRAORDINARY RESULT - PROFIT	0
EXTRAORDINARY RESULT - LOSS	0
TOTAL INCOMES	97,963
TOTAL COSTS	96,397
PRETAX RESULT - PROFIT	1,566
PRETAX RESULT - LOSS	0
TAX ON PROFIT	251
NET RESULT - PROFIT	1,315
NET RESULT - LOSS	0

OUR OPINION

The subject of the investigation is relative newly established company (July 2013) and at the investigated date (the last available with the Ministry of Economy and Finance) it was having less than 6 months of activity.

As no fresher financials are available so far and also considering its age, not any opinion regarding the business extension or on its financial position can be expressed, yet. Also, no rating can be granted and no credit limit can be stated.

Nevertheless, taking into account the foreign parent company solid reputation and background, we do appreciate the business relationships are feasible. For the time being, secured measures are recommended for any contemplated business transaction.

A further review on the company’s situation is suggested!

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

Slow but correct

BLACKLISTING (international sanctions)

Not applicable

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.90
UK Pound	1	Rs.98.16
Euro	1	Rs.69.74

INFORMATION DETAILS

Analysis Done by :	DIV
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.