MIRA INFORM REPORT

Report No. :	349781
Report Date :	19.11.2015

IDENTIFICATION DETAILS

Name :	ADAMA UKRAINE, LTD
Registered Office :	13 Pymonenka str., off. 4A/41, Kiev, 04050
Country :	Ukraine
Financials (as on) :	31.12.2014
Date of Incorporation :	23.09.2008
Com. Reg. No.:	36138418
Legal Form :	Limited Liability Company
Line of Business :	Trade in Agric Chemicals Fertilizer/Agric Chemicals
No. of Employee :	60

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Ukraine	C2	C2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

UKRAINE ECONOMIC OVERVIEW

After Russia, the Ukrainian republic was the most important economic component of the former Soviet Union, producing about four times the output of the next-ranking republic. Its fertile black soil generated more than one-fourth of Soviet agricultural output, and its farms provided substantial quantities of meat, milk, grain, and vegetables to other republics. Likewise, its diversified heavy industry supplied the unique equipment (for example, large diameter pipes) and raw materials to industrial and mining sites (vertical drilling apparatus) in other regions of the former USSR.

Shortly after independence in August 1991, the Ukrainian Government liberalized most prices and erected a legal framework for privatization, but widespread resistance to reform within the government and the legislature soon stalled reform efforts and led to some backtracking. Output by 1999 had fallen to less than 40% of the 1991 level. Outside institutions - particularly the IMF –encouraged Ukraine to quicken the pace and scope of reforms to foster economic growth. Ukrainian Government officials eliminated most tax and customs privileges in a March 2005 budget law, bringing more economic activity out of Ukraine's large shadow economy, but more improvements are needed, including fighting corruption, developing capital markets, and improving the legislative framework. From 2000 until mid-2008, Ukraine's economy was buoyant despite political turmoil between the prime minister and president.

Ukraine's dependence on Russia for energy supplies and the lack of significant structural reform have made the Ukrainian economy vulnerable to external shocks. Ukraine depends on imports to meet about three-fourths of its annual oil and natural gas requirements and 100% of its nuclear fuel needs. In January 2009, after a two-week dispute that saw gas supplies cutoff to Europe, Ukraine agreed to 10-year gas supply and transit contracts with Russia that brought gas prices to "world" levels. The strict terms of the contracts further hobbled Ukraine's cash-strapped state gas company, Naftohaz. The economy contracted nearly 15% in 2009, among the worst economic performances in the world. In April 2010, Ukraine negotiated a price discount on Russian gas imports in exchange for extending Russia's lease on its naval base in Crimea.

Movement toward an Association Agreement with the European Union, which would commit Ukraine to economic and financial reforms in exchange for preferential access to EU markets, was curtailed by a November 2013 decision of President YANUKOVYCH. In response, on 17 December 2013 then President YANUKOVYCH and President PUTIN concluded a financial assistance package containing $15 billion in loans and lower gas prices. However, the end of the YANUKOVYCH government in February 2014 caused Russia to halt further funding. With the formation of an interim government in late February 2014, the international community began efforts to stabilize the Ukrainian economy, including a 27 March 2014 IMF assistance package of $14-18 billion. Russia’s seizure of the Crimean Peninsula created uncertainty as to the annual rate of growth of the Ukrainian economy in 2014.

Source : CIA

Identification

Full Name

:

Tovarystvo z Obmezhenoyu Vidpovidalnistyu ADAMA UKRAINA

IGK-number

:

089-400-435

Name in English

:

ADAMA UKRAINE, Ltd

Name in national language

:

Товариство з Обмеженою Відповідальністю АДАМА УКРАЇНА

Previous Names

:

-	Tovarystvo z Obmezhenoyu Vidpovidalnistyu MAKTESHYM-AGAN UKRAINA

Office Address

:

13 Pymonenka str., off. 4A/41, Kiev, 04050, Ukraine

Legal Address

:

13 Pymonenka str., off. 4A/41, Kiev, 04050, Ukraine

Contacts

:

-	Phone	:	(+38 044) 2324414
-	Fax	:	(+38 044) 4869840
-	E-mail	:	oleg.dobrowolski@adama.com
-	WWW	:	www.adama.com/ukraine/ua

SUMMARY

Legal Form : TOV (Limited Liability Company by Ukrainian Law)

Incorporation : 2008

Staff : 60

Litigation events : n/a Remarks on payments : n/a

Sales :	423 904.00 th UAH ( for 12 months, ended 31.12.2014 )
	250 486.00 th UAH ( for 12 months, ended 31.12.2013 )

Incorporation

:

2008

Registration Data

Date of registration

:

23.09.2008

Registration number

:

36138418

Registr. authority

:

Regional Administration (Kiev, Ukraine)

VAT number

:

361384126562

Registr. place

:

Ukraine

Date of VAT Payer registration: 15.10.2008

Legal Form

:

TOV (Limited Liability Company by Ukrainian Law)

since 23.09.2008

Share Capital

:

53 347 UAH (registered)

since 23.09.2008

Shareholders

:

-	ADAMA AGRIKALCHER B.V. (Netherlands)				100.00 %
		share's book value	:	53 347 UAH

Board / Executives

Executives

Director

:

Mr Dobrovolskiy Oleg Vladimirovich (Ukraine)

Authorised signature

:

Mr Dobrovolskiy Oleg Vladimirovich

Changes in Registration Data

- 24.11.2014

:

legal address

- 11.09.2014

:

name

- 21.12.2012

:

managers, authorised signature

- 28.04.2011

:

managers, authorised signature

- 05.04.2011

:

managers, authorised signature

- 08.09.2009

:

legal address

Activities

:

-	5191	Fertilizer/Agric Chemicals
		(5118 / NACE_1.1: Agents specializing in the sale of particular products or ranges of products n.e.c.)
		(4618 / NACE_2: Agents specialised in the sale of other particular products)

Trade in Agric Chemicals.

Staff employed

:

60 [E]

Staff History

:

-	17
	( the data as of 31.12.2012 )

Export

- 01.11.2014

:

Fiscal period: 10 month(s), currency: UAH

24 770 314.00

- 01.01.2014

:

Fiscal period: 12 month(s), currency: UAH

214 276.00

:

none

Import

- 01.06.2015

:

Fiscal period: 5 month(s), currency: UAH

266 812 715.00

Israel, Switzerland, Italy, Slovenia, Czechia

- 01.11.2014

:

Fiscal period: 9 month(s), currency: UAH

351 961 348.00

- 01.01.2014

:

Fiscal period: 12 month(s), currency: UAH

211 889 815.00

Facilities

Real estate

:

unknown ownership:
-	Premises - Office
	address	:	13 Pymonenka str., off. 4A/41, Kiev, 04050, Ukraine

Subsidiaries and Participation

:

n/a

Bankers

:

-	Sitibank (Ukraine)
	bank code	:	300584
	account(s)	:	26006200498038 UAH, 26008200498003 USD, 26009200498046 EUR

Suppliers

:

-	ADAMA Agan LTD (Israel)
-	Druzina spol.s r.o. (Czechia)
-	INTEREUROPA d.d. (Slovenia)
-	KOLLANT S. r. l. (Italy)
-	NBK FORWARDING BV (Switzerland)

Litigation

:

Generally in the DB of the Unified State Register of the Legal Judgements data there have been traced 9 court where the subject company is filed as a defendant, co-defendant, claimant and co-claimant in the period from 25.01.2011 up to 16.12.2014. There are no bankruptcy/insolvency filed. These litigation processes arise in the course of company's usual operation.

According to the data of Bulletin of the State Registration as of 16.11.2015, there are no bankruptcy records registered in the name of the subject company.

Remarks on payment

:

No official information is available according to the Ukrainian legislation.

Financial Elements

Financial statement

Period, months	12	12	12
Ended	31.12.2014	31.12.2013	31.12.2012
Currency	UAH th	UAH th	UAH th
===== BALANCE SHEET ====================
--- A S S E T S --------------------
NON-CURRENT ASSETS
- Intangible assets	68.00	40.00
- Fixed assets	4 991.00	2 373.00
- Investments in tangible assets
- Financial assets
- Other non-current assets	1 239.00	5 646.00
Non-current assets total	6 298.00	8 059.00	5 935.00
CURRENT ASSETS
- Stock	99 084.00	78 010.00
- Debtors	64 627.00	18 634.00	35 053.00
- Other receivables	17 632.00	27 431.00
- Short-term financial investments			0.00
- Cash	26 455.00	17 192.00	21 102.00
- Other current assets	363.00	843.00	0.00
Current assets total	208 874.00	142 110.00	195 335.00
Assets total	215 172.00	150 169.00	201 270.00
--- EQUITY AND LIABILITIES ---------
CAPITAL AND RESERVES
- Share capital	53.00	53.00	53.00
- Additional capital			0.00
- Other capital			0.00
- Reserve capital
- Retained earnings (Non-covered loss)	-105 919.00	-33 083.00
Capital and reserves total	-105 866.00	-33 030.00	-9 913.00
Provisions			1 538.00
LONG-TERM LIABILITIES
- Loans and credits			0.00
- long-term amounts owed to banks			0.00
- Other long-term liabilities
Long-term liabilities total			16 095.00
SHORT-TERM LIABILITIES
- Loans and credits			0.00
- short-term amounts owed to banks			0.00
- Creditors	280 599.00	168 311.00
- trade debts	280 273.00	168 297.00
- accrued payroll	204.00	3.00
- tax liabilities	122.00	11.00
- other creditors
- advances received
- Dividends in arrears
- Accrued income, deferred charges			0.00
- Other short-term liabilities	39 339.00	14 886.00
Short-term liabilities total	321 038.00	183 199.00	193 550.00
Liabilities total	321 038.00	183 199.00	209 645.00
Equity and liabilities total	215 172.00	150 169.00	201 270.00
===== PROFIT AND LOSS ACCOUNT ==========
ORDINARY ACTIVITY INCOME AND CHARGES
Net sales	423 904.00	250 486.00	304 339.00
Cost of goods sold	169 652.00	229 293.00	184 244.00
Gross profit	254 252.00	21 193.00
Distribution costs	22 896.00	12 020.00
Administrative and management costs	38 306.00	20 496.00
Profit on sales
OPERATING INCOME AND CHARGES
Interest receivable
Interest payable
Income from participating interests
Other operating income	9 393.00	974.00	816.00
Other operating charges	267 990.00	9 371.00
Operating profit
INVESTMENT INCOME AND CHARGES
Investment income less charges	-1 922.00	-1 104.00	-1 199.00
Profit before taxation	-67 469.00	-20 824.00
Income-tax and other similar payments	5 367.00	-2 718.00	822.00
Profit (loss) from ordinary activity
Extraordinary income less charges
Net profit	-72 836.00	-18 106.00	-3 665.00
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	-15.92	-8.31
Profit before taxation / Net sales
Operating margin of profit, %
Operating profit / Net sales
Return on investment, %	63.73	63.05
Profit before taxation / Equity
Current assets turnover	2.03	1.76	1.56
Net sales / Current assets
Working capital	-112 164.00	-41 089.00	1 785.00
Current assets - Short-term liabilities
Leverage	-0.49	-0.22	-0.05
Equity / Total assets
Current ratio	0.65	0.78	1.01
Current assets / Short-term liabilities
Quick ratio	0.34	0.35
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	-3.03	-5.55	-21.15
Total liabilities / Equity

The company is registered as a taxpayer at the State Tax Administration.

Publications

- 07.10.2015

:

Subject

:

Fitch Ratings-New York/London-06 October 2015

Fitch Ratings-New York/London-06 October 2015: Fitch Ratings has taken the following rating actions on Ukraine: --Long-term foreign currency IDR downgraded to 'RD' (Restricted Default) from 'C'; --Long-term local currency IDR affirmed at 'CCC'; --Short-term foreign currency IDR downgraded to 'RD' from 'C'; --Senior unsecured foreign-currency issue ratings on all outstanding external issues affirmed at 'C'; --Senior unsecured local-currency issue ratings affirmed at 'CCC'; --Senior unsecured foreign-currency issue ratings on all outstanding domestic issues affirmed at 'CCC'; --Country Ceiling affirmed at 'CCC'. KEY RATING DRIVERS The 10-day grace period on Ukraine's USD500m eurobond maturing on 23 September 2015 has elapsed without payment being made. Fitch therefore judges Ukraine to be in default on its sovereign eurobond obligations. On 24 September, Ukraine launched the exchange offer for approximately USD18bn in direct and government-guaranteed eurobonds. Fitch considers that this represents a Distressed Debt Exchange (DDE) under its criteria that results in material losses to bondholders and is being conducted to avoid default. RATING SENSITIVITIES Ukraine's ratings will be upgraded shortly after Fitch determines that the exchange has been successful. The new rating will be consistent with Ukraine's prospective credit profile and debt structure. The Ministry of Finance has said that it plans to conclude the exchange by 27 October. KEY ASSUMPTIONS Fitch assumes that the debt exchange offer announced on 24 September will be implemented. Source: https://www.fitchratings.com/site/fitch-home/pressrelease?id=991865

FINAL COMMENTS

The information given in this report was collected from all the sources accessible. We contacted Mrs Yuliya (secretary) on 16.11.2015 by the tel. number: +38 044 2324414. She confirmed the general information and asked us to send a questionnaire. An inquiry was sent for the attention of the Director but no answer was received. If the additional information comes in we will update the subject report.

APPENDIX A

FINANCIAL STATEMENTS

Period, months	12	12	12
Ended	31.12.2014	31.12.2013	31.12.2012
Currency	UAH th	UAH th	UAH th
PROFIT AND LOSS ACCOUNT (s)
2000 Net sales revenue	423 904.00	250 486.00
2050 Cost of goods, work, services	169 652.00	229 293.00
2090 Gross profit	254 252.00	21 193.00
2095 Gross loss
2120 Other operating income	9 334.00	943.00
2130 Administrative and management costs	38 306.00	20 496.00
2150 Distribution costs	22 896.00	12 020.00
2180 Other operating charges	267 990.00	9 371.00
2190 Operating profit
2195 Operating loss	65 606.00	19 751.00
2200 Income from capital participating
2220 Other financial income
2240 Other income	59.00	31.00
2250 Financial charges	1 922.00	1 104.00
2255 Capital participating expenses
2270 Other expenses
2290 Profit before taxation
2295 Loss before taxation	67 469.00	20 824.00
2300 Income-tax	5 367.00	-2 718.00
2305 Profit (loss) from discontinued operations after tax
2350 Net profit
2355 Net loss	72 836.00	18 106.00
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
BALANCE SHEET
ASSETS
I. NON-CURRENT ASSETS
1000 Intangible assets	68.00	40.00
1001 acquisition cost	139.00	73.00
1002 depreciation	71.00	33.00
1005 Incomplete investments	1 246.00	302.00
1010 Fixed assets	3 745.00	2 071.00
1011 acquisition cost	7 131.00	4 795.00
1012 depreciation	3 386.00	2 724.00
1015 Investment property
1020 Long-term biological assets
1030 Long-term financial assets recognized as
capital participation in other enterprises
1035 Other financial investments
1040 Long-term accounts receivable
1045 Deferred tax assets	1 239.00	5 646.00
1090 Other non-current assets
1095 NON-CURRENT ASSETS TOTAL	6 298.00	8 059.00
II. CURRENT ASSETS
1100 Stock	99 084.00	78 010.00
1110 Current biological assets
1125 Trade debtors	64 627.00	18 634.00
Accounts receivable
1130 Payments in advance
1135 Budget accounts receivable	15 133.00	25 378.00
1136 - incl, by income tax	9 526.00	10 486.00
1155 Other current accounts receivable	2 499.00	2 053.00
1160 Current financial investments
1165 Cash and equivalents	26 455.00	17 192.00
1170 Deferred charges
1190 Other current assets	363.00	843.00
1195 CURRENT ASSETS TOTAL	208 874.00	142 110.00
1200 III. NON-CURRENT ASSETS HELD FOR SALE
AND DISPOSAL GROUPS
1300 ASSETS TOTAL	215 172.00	150 169.00
EQUITY AND LIABILITIES
I. CAPITAL AND RESERVES
1400 Authorized capital	53.00	53.00
1405 Capital revaluation
1410 Additional contributed capital
1415 Reserve capital
1420 Retained earnings (loss)	-105 919.00	-33 083.00
1425 Unpaid capital (minus)
1430 Retired capital (minus)
1495 CAPITAL AND RESERVES TOTAL	-105 866.00	-33 030.00
III. LONG-TERM LIABILITIES
1500 Deferred tax liabilities
1510 Long-term amounts owed to credit institutions
1515 Other long-term liabilities
1520 Long-term provisions
1525 Targeted funding
1595 TOTAL LONG-TERM LIABILITIES
IV. SHORT-TERM LIABILITIES
1600 Short-term amounts owed to credit institutions
1610 Short-term portion of long-term liabilities
Accounts payable:
1615 Trade creditors	280 273.00	168 297.00
1620 Budget accounts payable	34.00	11.00
1621 - incl. income tax
1625 Insurance payments	88.00
1630 Accrued payroll	204.00	3.00
1660 Short-term provisions	5 951.00	2 088.00
1665 Deferred income
1690 Other short-term liabilities	33 388.00	12 798.00
1695 SHORT-TERM LIABILITIES TOTAL	321 038.00	183 199.00
1700 IV. LIABILITIES ASSOCIATED WITH
NON-CURRENT ASSETS HELD FOR SALE
AND DISPOSAL GROUPS
1900 EQUITY AND LIABILITIES TOTAL	215 172.00	150 169.00

- 31.12.2012

:

Fiscal period: 12 month(s), currency: UAH, th
PROFIT AND LOSS ACCOUNT (s)
010 Sales revenue (Income from sales of goods, work,	304 339.00
services
015 VAT tax
020 Excise tax
025
030 Other compulsory payments
035 Net sales revenue	225 946.00
040 Cost of goods, work, services	184 244.00
045 Total production costs
050 Gross profit
055 Gross loss
060 Other operating income	816.00
070 Administrative and management costs
080 Distribution costs
090 Other operating charges
100 Operating profit	0.00
105 Operating loss	1 646.00
110 Income from capital participating
120 Other financial income
130 Other income
140 Financial charges	1 199.00
150 Capital participating expenses
160 Other expenses
170 Profit from ordinary activity before taxation
175 Loss from ordinary activity before taxation
180 Ordinary activity Income-tax	822.00
190 Profit from ordinary activity
195 Loss from ordinary activity
200 Extraordinary income
205 Extraordinary charges
210 Extraordinary activity Income-Tax	0.00
220 Net profit	0.00
225 Net loss	3 665.00
Operating charges details:
230 Tangible expenses	1 325.00
240 Payroll costs	8 128.00
250 Allocation to social needs
260 Amortization charges	822.00
270 Other operating charges
280 Operating charges total	44 104.00
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
BALANCE SHEET
ASSETS
I. NON-CURRENT ASSETS
Intangible assets
010 residual value
011 acquisition cost
012 depreciation
020 Construction in progress
Fixed assets
030 residual value
031 acquisition cost
032 depreciation
Long-term biological assets
035 residual value
036 acquisition cost
037 depreciation
Long-term financial assets
040 Capital participation in other enterprises
045 Other financial investments
050 Long-term accounts receivable
060 Deferred tax assets
070 Other non-current assets
080 NON-CURRENT ASSETS TOTAL	5 935.00
II. CURRENT ASSETS
Stock
100 Raw materials, consumables and supplies
110 Current biological assets
120 Work in progress
130 Finished goods
140 Goods for resale
150 Bills of exchange receivable	0.00
Trade debtors:
160 net realizable value	35 053.00
161 acquisition cost
162 doubtful debts reserve
Accounts receivable
170 Budget accounts receivable
180 Payments in advance
190 Accrued income
200 Internal payments
210 Other current accounts receivable
220 Current financial investments	0.00
Cash at bank and on hands
230 Funds in local currency	19 127.00
231 incl. cash on hands
240 Funds in foreign currencies	1 975.00
250 Other current assets
260 CURRENT ASSETS TOTAL	195 335.00
270 III. DEFERRED CHARGES	0.00
280 ASSETS TOTAL	201 270.00
EQUITY AND LIABILITIES
I. CAPITAL AND RESERVES
300 Authorized capital	53.00
310 Share capital	0.00
320 Additional contributed capital	0.00
330 Other additional capital	0.00
340 Reserve capital
350 Retained earnings (loss)
360 Unpaid capital (minus)	0.00
370 Retired capital (minus)	0.00
380 CAPITAL AND RESERVES TOTAL	-9 913.00
II. PROVISIONS OF EXPENSES AND
LIABILITIES
400 Provisions of payments to personnel
410 Other provisions
415 Insurance reserves
416 portion covered by insurers
417
418
420 Targeted funding
430 PROVISIONS OF EXPENSES AND	1 538.00
LIABILITIES TOTAL
III. LONG-TERM LIABILITIES
440 Long-term amounts owed to credit institutions	0.00
450 Other financial liabilities
460 Deferred tax liabilities
470 Other long-term liabilities
480 TOTAL LONG-TERM LIABILITIES	16 095.00
IV. SHORT-TERM LIABILITIES
500 Short-term amounts owed to credit institutions	0.00
510 Short-term portion of long-term liabilities
520 Bills of exchange payable
530 Trade creditors
Accounts payable:
540 Advance payments
550 Budget accounts payable
560 Non-budget accounts payable
570 Insurance payments
580 Accrued payroll
590 Liabilities to shareholders
600 Internal payments
610 Other short-term liabilities
620 SHORT-TERM LIABILITIES TOTAL	193 550.00
630 V. DEFERRED INCOME	0.00
640 EQUITY AND LIABILITIES TOTAL	201 270.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.11
UK Pound	1	Rs.100.51
Euro	1	Rs.70.39

INFORMATION DETAILS

Analysis Done by :	HNA
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.