MIRA INFORM REPORT

Report No. :	349988
Report Date :	21.11.2015

IDENTIFICATION DETAILS

Name :	ROMCARBON SA
Registered Office :	Buzau county / 120012 Buzau – Transilvaniei Street No. 132
Country :	Romania
Financials (as on) :	30.06.2015
Date of Incorporation :	1952
Legal Form :	Joint Stock Company
Line of Business :	Manufacture of plastic plates, plastic tubes and profiles.
No. of Employee :	815

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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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 the top vulnerabilities.

Source : CIA

Company name and address

NAME OF THE COMPANY

ROMCARBON SA

Address

Buzau county / 120012 Buzau – Transilvaniei Street No. 132

Phone no.

0040-238-711155, 717383….5

Fax no.

0040-238-710697, 710722, 711050

Web-site

www.romcarbon.com

E-mail address

office@romcarbon.com

HISTORIC/OFFICIAL DATA

Date of foundation

1952, as a State enterprise named “Intreprinderea de Mase Plastice Buzau”. Suite of the Governmental Decision no. 1213/4.12.1990, it became a joint stock company, entire State capital, named ROMCARBON SA.

(For more historical date, please do visit www.romcarbon.com)

Present legal form

joint stock company, joint venture of private Romanian and foreign capital

Registered with the Trade Registry

J10/83/1991

VAT no.

1158050

Registered capital

26,412,209.60 RON

Shareholders

Legal persons

1. LIVING PLASTIC INDUSTRY SRL – Romanian legal person (J10/148/1998,

VAT 10281027)

Address: Buzau county / Buzau – Aleea Industriilor No. 17

Participation

32.8539%

2. ROMANIAN INVESTMENT FUND – foreign legal person

Address: Cayman Islands / Winward III. PO Box 100 GT

Participation

14.2443%

3. JOYFUL RIVER LIMITED – foreign legal person

Address: Cyprus / 2012 Nicosia – Acropoleos Avenue No. 59-61, 3^rd floor, suite 302

Participation

20.5191%

4. List of other legal persons, not detailed with the National Trade Registry

Participation

28.1123%

Individuals

6. List of individuals, not detailed with the National Trade Registry

Participation

4.2704%

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

2010

2011

2012

2013

2014

30.06.2015

683

674

714

781

801

815

BUSINESS ACTIVITY

- Manufacture of plastic plates, plastic tubes and profiles, according to the National Trade Registry updated files (NACE: 2221)

According to the company’s web-site
Products
• car filters
• respiratory protective equipment
• polyethylene products

PVC bases

Polystyrene products

Polypropylene products

Plastic compounds

Clients

Given the variety of its products, their quality, the friendship relations and solid partnerships, the company’s clients’ portfolio gathers all size of companies, from small, one-employee businesses, to large international corporations. Thus, its clients are:
■major hypermarket chains present in Romania,
■large units of milling plants and bakery industry,
■producers of sugar and salt,
■cereals, fodder and fertilizer companies ,
■hardware retailers,
■in the network type "HoReCa",
■plastic processors who use the injection, extrusion and thermo-forming process,
■State Companies and Autonomous State Companies operating in the chemical and petrochemical, mining, marine, industry, etc.

Suppliers

In the company, the supply of raw materials and services is done according to specific internal procedures. In accordance, ROMCARBON SA has at least 3 suppliers for each raw material or working material purchased.
Among its suppliers there are some of the leading companies in Europe and its collaboration with them is deployed only based on written contracts.
The most important raw materials purchased by the company are:
■Granules of polypropylene, polyethylene, polystyrene,
■Chemical additives,
■Master batch and inks,
■Metal parts,
■Filter paper,
■Rubber fittings,
■Metal sheet,
■Limbs and loops,
■Cardboard packaging,
■Accessories for sewing,
■Industrial oils,
■Other.

For more details, please do visit www.romcarbon.com

TRADING INFO

The company’s shares are quoted with the Bucharest Stock Exchange since February, 1997 (symbol: ROCE)

Share capital: 26,412,209.60 RON

Nominal value: 0.1000 RON/share

No. of shares: 264,122,096

The most recent transaction day: November 11th, 2015

Transaction volume: 114,600 shares

Price: 0.1300 RON/share

No. of transactions: 17 Market capitalization: 34,335,872.48 RON

OTHER PARTICIPATION

1. Company’s participation

1. ECO PACK MANAGEMENT SA – J40/5745/2010, VAT 27021161

2. GREENSORT RECYCLING SRL – J40/12908/2012, VAT 30870019

3. RC ENERGO INSTALL SRL – J10/752/2005, VAT 17701071

4. INFO TECH SOLUTIONS SRL – J10/753/2005, VAT 17701080

5. YENKI SRL – J10/1132/2007, VAT 22404794

6. LIVINGJUMBO INDUSTRY SA – J10/44/2002, VAT 14419107

According to the company’s web-site

Since late 2012, the company has established a new society based in Germany named ROMCARBON Deutschland GmbH - which has as object of activity the acquisition and collection of plastic wastage. In addition, it also sales Romcarbon’s products manufactured in Romania.

Moreover, according to the Report for 30.06.2015 sent to Bucharest Stock Exchange and available on the company’s web-site, it also holds participation in the following foreign companies:

RECYPLAT LTD Cyprus (100% owned)

KANG YANG BIOTECHNOLOGY CO LTD (3.0889% participation)

2. Shareholders other participation

not applicable

REAL ESTATE (RON)

- lands & buildings

2010

2011

2012

2013

2014

152,485,410

143,298,185

101,553,120

71,560,403

70,104,672

TANGIBLES*

169,864,497 RON, at 30.06.2015

*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 Commercial Bank, BRD-GSG, UniCredit Bank

MANAGEMENT

• as officially registered with the National Trade Registry

President of the Board

Mr. Hung Ching Ling – Taiwanese citizen, born on 5.01.1969

Appointed on 04.02.2012; Expiration date of mandate: 04.02.2016

Member of the Board

Mr. Simionescu N. Dan – Romanian citizen, born on 2.10.1951

Appointed on 04.02.2012; Expiration date of mandate: 04.02.2016

Member of the Board

Mr. Wang, Yi-Hao – Taiwanese citizen, born on 24.03.1985

Appointed on 04.02.2012; Expiration date of mandate: 04.02.2016

General Manager

Mr. Andrei Radu – Romanian citizen, born on 27.11.1968

Appointed on 1.09.2013; Expiration date of mandate: 1.09.2017

Financial Manager

Mrs. Zainescu Viorica Ioana – Romanian citizen, born on 10.02.1964

Appointed on 15.01.2010 for unlimited period

- for more details regarding the management team & other contact details, please do visit www.romcarbon.com

CURRENCY

Exchange rate of EURO

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 = 4.4821 RON on 31.12.2014

1 EURO = 4.4735 RON on 30.06.2015

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2012	31.12.2013	31.12.2014	30.06.2015
INTANGIBLES - TOTAL	421,987	339,167	209,289	134,873
TANGIBLES - TOTAL	191,814,071	161,664,598	159,571,631	169,864,497
FINANCIALS - TOTAL	26,332,650	24,125,945	22,919,676	22,932,608
FIXED ASSETS - TOTAL	218,568,708	186,129,710	182,700,596	192,931,978
STOCKS - TOTAL	16,308,574	15,719,338	18,104,794	18,892,366
CLAIMS - TOTAL	36,706,405	31,946,941	30,176,162	38,916,594
CURRENT ASSETS	64,215,450	56,973,945	57,841,168	67,399,310
PREPAID EXPENSES	303,116	260,754	236,199	825,809
DEBTS WITHIN 1 YEAR	106,307,254	104,737,148	75,383,502	84,221,726
DEBTS OVER 1 YEAR	46,431,775	35,457,778	28,589,680	34,964,205
PROVISIONS	0	0	0	0
ADVANCED INCOMES	13,820,064	12,634,801	11,060,526	10,496,293
SHARE-CAPITAL	26,412,210	26,412,210	26,412,210	26,412,210
ADJUSTMENTS of share-capital, suite of IFRS	201,639,749	0	0	0
SHARE PREMIUM	2,182,283	2,182,283	2,182,283	2,182,283
RESERVES from reassessment of the fixed assets	74,945,407	45,942,571	45,185,034	44,950,363
RESERVES	4,243,420	3,299,635	4,233,762	4,233,762
PROFITS CARRIED FORWARD	12,114,696	12,648,455	13,455,520	45,958,310
RETAINED EARNINGS, suite of IFRS	-206,117,644	0	0	0
NET RESULT - PROFIT	689,282	52,135	36,213,237	7,737,945
NET RESULT - LOSS	0	0	0	0
NET WORTH	116,528,181	90,534,682	125,744,255	131,474,873
PROFIT & LOSS ACCOUNT	31.12.2012	31.12.2013	31.12.2014	30.06.2015
Turnover	135,533,436	142,419,180	160,453,258	88,606,705
Own production & services	90,663,118	92,276,184	104,238,415	56,190,686
Sales	45,148,274	50,346,451	56,436,094	32,451,480
INCOMES FROM ORDINARY OPERATING ACTIVITY	143,462,303	152,263,400	164,910,781	93,533,704
Raw materials	53,253,856	54,266,098	62,740,880	35,248,955
Costs of goods sold	43,183,423	48,715,858	55,150,176	31,870,246
Wages	13,736,523	16,148,620	19,622,558	11,079,281
Depreciations & provisions	4,515,592	6,459,813	7,411,536	3,494,065
Other operating costs	16,419,372	15,632,596	11,262,895	5,679,297
COSTS OF ORDINARY OPERATING ACTIVITY	137,851,243	149,416,409	161,735,205	90,434,757
ORDINARY OPERATING RESULT - PROFIT	5,611,060	2,846,991	3,175,576	3,098,947
ORDINARY OPERATING RESULT - LOSS	0	0	0	0
FINANCIAL INCOMES	7,239,886	11,089,407	40,324,309	7,446,707
FINANCIAL COSTS	12,097,621	13,571,124	6,802,002	2,368,111
FINANCIAL RESULT - PROFIT	0	0	33,522,307	5,078,596
FINANCIAL RESULT - LOSS	4,857,735	2,481,717	0	0
TOTAL INCOMES	150,702,189	163,352,807	205,235,090	100,980,411
TOTAL COSTS	149,948,864	162,987,533	168,537,207	92,802,868
PRETAX RESULT - PROFIT	753,325	365,274	36,697,883	8,177,543
PRETAX RESULT - LOSS	0	0	0	0
TAX ON PROFIT	23,383	0	13,412	439,598
DEFFERED TAX ON PROFIT	40,660	313,139	471,234	0
NET RESULT - PROFIT	689,282	52,135	36,213,237	7,737,945
NET RESULT - LOSS	0	0	0	0

N.B.: any difference occurred between former report 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 submitted by the subject with the Bucharest Stock Exchange for 30.06.2015. Given the fact they are not coming from the Ministry of Public Finance data basis, but from the Bucharest Stock Exchange, which is a reliable source which takes into consideration only validated figures, they are still considered officially.

Anyway, the responsibility for the figures’ accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 30.06.2015

- all figures are reported in RON if otherwise not specified.

Size

large, considering the number of employees

Position & trend

Well-established company, well-experienced, with a solid background and a long experience in its field of activity.

According to the financials available, the volume of the developed business is large, generally increasing.

Yet, the returns looks completely different, registering a strongly fluctuant trend. Thus, since 2014 these have spectacularly increased, suite of large financials incomes (incomes from shares from affiliated undertakings).

The B/S accounts reveal constant low liquidity and a generally very good solvability.

Generally, the financial standing got improved and looked satisfactory. The payments behavior stands also fair enough.

The business relationships are feasible and the credit facilities are suitable.

31.12.2010

31.12.2011

31.12.2012

31.12.2013

31.12.2014

30.06.2015

Turnover

RON

112,964,960

107,017,783

135,533,436

142,419,180

160,453,258

88,606,705

EURO

26,364,115

24,774,355

30,603,436

31,756,679

35,798,679

19,807,020

Gross profit

RON

-514,238

2,783,567

753,325

365,274

36,697,883

8,177,543

EURO

-120,014

644,389

170,101

81,449

8,187,654

1,827,997

Net profit

RON

-530,738

2,712,128

689,282

52,135

36,213,237

7,737,945

EURO

-123,865

627,851

155,640

11,625

8,079,525

1,729,730

30.06.2015

CREDITS & LOANS (ACTIVE BALANCE)

70,188,624

Bank credits, on short term (within 1year)

40,205,974

Bank credits, on medium term (over 1year)

26,269,541

Other financial loans & afferent interests, on medium term (over 1year)

3,713,109

BALANCE CLAIMS-DEBTS

Negative

Total claims

38,916,594

clients & trade debtors

37,100,140

Total debts

119,185,931

- Short term

84,221,726

suppliers & trade creditors

33,077,079

bank credits

40,205,974

- Medium term

34,964,205

bank credits

26,269,541

other financial loans & afferent interests

3,713,109

PAYMENTS BEHAVIOR

with insignificant delays

Total overdue of 0.006% of turnover (0.007% of total short term debt)

5,519

To suppliers

5,519

over 30 days

1,132

over 90 days

1,360

over 1 year

3,027

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded in the period 11.11.2014 – 11.11.2015

BLACKLISTING (international sanctions)

Not applicable

FINANCIAL STRENGTH

25,629 tsd EURO

RISK CATEGORY

Above normal

BUSINESS RELATIONS

Permissible

2010

2011

2012

2013

2014

30.06.2015

Low

Liquidity analysis

- current ratio

0.68

0.57

0.60

0.54

0.77

0.80

- quick ratio

0.45

0.41

0.45

0.39

0.53

0.58

Solvability analysis

Very good

- the borrowing ratio (total debts/net worth)

0.61

0.72

1.31

1.55

0.83

0.91

Profitability analysis (%)

Strongly fluctuant; good, lately

- return on capital

Loss

2.04

0.59

0.06

28.80

5.89

- return on assets

Loss

1.16

0.24

0.02

15.04

2.96

- gross profit margin

Loss

2.60

0.56

0.26

22.87

9.23

Activity analysis

Settlements within normal limits

- debtor’s days

76

67

99

82

69

79

- creditor’s days

38

62

79

68

63

67

Stocks turnover, times/period

8

10

8

9

9

5

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.09
UK Pound	1	Rs.101.04
Euro	1	Rs.70.86

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%)

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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.