MIRA INFORM REPORT

Report No. :	351146
Report Date :	28.11.2015

IDENTIFICATION DETAILS

Name :	DELTA CHEMICALS ROMANIA SRL
Registered Office :	Bucharest, sector 2 – Radu Captariu Street No. 13, Rooms 1, 3-11, 2^nd floor
Country :	Romania
Financials (as on) :	30.06.2015
Date of Incorporation :	July, 2005
Legal Form :	Limited liability company, entire foreign (Greek) capital
Line of Business :	Agents involved in the sale of fuels, ores, metals and industrial chemicals, according to the National Trade Registry updated files (NACE: 4612)
Employees:	6

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)
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

Companmy name and address

NAME OF THE COMPANY	DELTA CHEMICALS ROMANIA SRL
Address	Bucharest, sector 2 – Radu Captariu Street No. 13, Rooms 1, 3-11, 2^nd floor
Phone no. Cell phone no.	0040-21-7454066, 7454099 0040-744-232633 0040-727-753661	Fax no.	0040-21-4131804
Web-site	www.deltachemicals.gr	E-mail address	office@deltachemicals.ro

HISTORIC/OFFICIAL DATA

Date of foundation	July, 2005
Present legal form	Limited liability company, entire foreign (Greek) capital
Registered with the Trade Registry	J40/12469/2005
VAT no.	17786841
Registered capital	2,700,200 RON
Shareholders	Unique owner, legal person
	DELTA CHEMICALS SA – Greek legal person
	Address: Greece / Athens – Lamias & Pireos Street No. 180, 177 78 Tavros
	Participation				100%
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	2010	2011	2012	2013		2014	30.06.2015
total	3	3	5	6		5	6
BUSINESS ACTIVITY - Agents involved in the sale of fuels, ores, metals and industrial chemicals, according to the National Trade Registry updated files (NACE: 4612) Subsidiaries / Branches / Work-shops, according to the National Trade Registry updated files: NONE DELTA CHEMICALS ROMANIA SRL is the ROMANIAN wing of the Greek DELTA CHEMICALS SA According to the company’s web-site DELTA CHEMICALS SA, created in 2001 from the merger of three dynamic companies (Chemtrad S.A., Delta Chemicals S.A. and Stalikas S.A.), accumulates today an experience that exceeds 30 years in the Chemical Products and Industrial Raw Materials trade. DELTA CHEMICALS has established relations as a distributor and agent with more than 60 suppliers / producers of Chemicals all over the world, including some of the greatest brand names of the Chemical Industry. More than 1000 companies, in Greece and the Balkans, presently enjoy the services of DELTA CHEMICALS as customers in the production segments of Plastics, Coatings, Pigments, Insulation, Packaging, Cables, Metal Working etc.
OTHER PARTICIPATION
1. Company’s participation	not applicable
2. Shareholders other participation	not applicable
TANGIBLES*	2,476,869 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	„Romaneasca” Bank SA, Alpha Bank SA
MANAGEMENT as officially registered with the National Trade Registry	Administrator Mr. Aristotelis Aivaliotis – Greek citizen, born on 9.06.1953 Appointed on 7.07.2005 for unlimited period Administrator Mr. Dimitrios Tzevelekis – Greek citizen, born on 24.05.1968 Appointed on 26.11.2012 for unlimited period
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	999	9,779	24,284	20,313
TANGIBLES - TOTAL	2,475,403	2,490,612	2,481,045	2,476,869
FINANCIALS - TOTAL	0	23,013	23,013	23,013
FIXED ASSETS - TOTAL	2,476,402	2,523,404	2,528,342	2,520,195
STOCKS - TOTAL	1,512,723	1,879,462	3,065,686	2,358,294
CLAIMS - TOTAL	4,621,288	2,904,299	6,360,159	5,747,522
CURRENT ASSETS	6,485,777	5,079,336	9,726,795	8,857,807
PREPAID EXPENSES	0	14,536	9,052	2,331
DEBTS WITHIN 1 YEAR	9,766,494	12,005,137	16,061,913	15,385,598
DEBTS OVER 1 YEAR	0	0	0	0
PROVISIONS	0	0	0	0
ADVANCED INCOMES	0	0	0	0
REGISTERED CAPITAL	1,800,200	1,800,200	2,700,200	2,700,200
RESERVES from reassessment of the fixed assets	0	0	0	0
RESERVES	40	40	40	40
PROFITS CARRIED FORWARD	-1,493,828	-2,604,555	-6,176,719	-6,497,964
NET RESULT - PROFIT	0	0	0	0
NET RESULT - LOSS	1,110,727	3,583,546	321,245	207,541
NET WORTH	-804,315	-4,387,861	-3,797,724	-4,005,265
PROFIT & LOSS ACCOUNT	31.12.2012	31.12.2013	31.12.2014	30.06.2015
Turnover	9,361,392	12,097,198	23,517,828	12,042,511
Own production & services	N/A	N/A	N/A	N/A
Sales	N/A	N/A	N/A	N/A
INCOMES FROM ORDINARY OPERATING ACTIVITY	9,417,136	12,112,123	23,568,178	12,063,087
Raw materials	N/A	N/A	N/A	N/A
Costs of goods sold	N/A	N/A	N/A	N/A
Wages	N/A	N/A	N/A	N/A
Depreciations & provisions	N/A	N/A	N/A	N/A
Other operating costs	N/A	N/A	N/A	N/A
COSTS OF ORDINARY OPERATING ACTIVITY	9,993,292	15,286,927	23,482,442	12,087,345
ORDINARY OPERATING RESULT - PROFIT	0	0	85,736	0
ORDINARY OPERATING RESULT - LOSS	576,156	3,174,804	0	24,258
FINANCIAL INCOMES	786,335	630,642	454,731	275,029
FINANCIAL COSTS	1,320,906	1,039,384	861,712	458,312
FINANCIAL RESULT - PROFIT	0	0	0	0
FINANCIAL RESULT - LOSS	534,571	408,742	406,981	183,283
CURRENT RESULT - PROFIT	0	0	0	0
CURRENT RESULT - LOSS	1,110,727	3,583,546	321,245	207,541
Extraordinary incomes	0	0	0	0
Extraordinary costs	0	0	0	0
EXTRAORDINARY RESULT - PROFIT	0	0	0	0
EXTRAORDINARY RESULT - LOSS	0	0	0	0
TOTAL INCOMES	10,203,471	12,742,765	24,022,909	12,338,116
TOTAL COSTS	11,314,198	16,326,311	24,344,154	12,545,657
PRETAX RESULT - PROFIT	0	0	0	0
PRETAX RESULT - LOSS	1,110,727	3,583,546	321,245	207,541
TAX ON PROFIT	0	0	0	0
NET RESULT - PROFIT	0	0	0	0
NET RESULT - LOSS	1,110,727	3,583,546	321,245	207,541

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 30.06.2015. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

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

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

Size

micro, considering the total no. of employees.

Position & trend

Considerable business volume, significantly increased since 2014 (almost doubled).

Nonetheless, the returns remained negative (losses are coming mainly from the operating activity), as well as the equity – meaning no own sources at all for financing the activity.

The financial standing looks unsatisfactory for already more than 5 years.

Instead, the payments behaviour proved to be correct, without delays.

Overall, we appreciate the business relationships are feasible, but the credit facilities are not suitable.

The business trend should be monitored.

31.12.2010

31.12.2011

31.12.2012

31.12.2013

31.12.2014

30.06.2015

Turnover

RON

9,852,728

9,065,999

9,361,392

12,097,198

23,517,828

12,042,511

EURO

2,299,460

2,098,757

2,113,801

2,697,438

5,247,056

2,691,966

Gross profit

RON

157,098

-153,021

-1,110,727

-3,583,546

-321,245

-207,541

EURO

36,664

-35,424

-250,802

-799,060

-71,673

-46,393

Net profit

RON

142,144

-213,535

-1,110,727

-3,583,546

-321,245

-207,541

EURO

33,174

-49,433

-250,802

-799,060

-71,673

-46,393

30.06.2015

CREDITS & LOANS (ACTIVE BALANCE)

N/A

BALANCE CLAIMS-DEBTS

Negative

Total claims; no further details are available

5,747,522

Total debts, 100% on short term; no further details are available

15,385,598

PAYMENTS BEHAVIOR

Slow

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded in the period 24.11.2014 – 24.11. 2015

BLACKLISTING (international sanctions)

Not applicable

FINANCIAL STRENGTH

Negative

RISK CATEGORY

High

BUSINESS RELATIONS

Only under fully secured terms

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.

2010

2011

2012

2013

2014

30.06.2015

Very low

Liquidity analysis

- current ratio

0.59

0.64

0.66

0.42

0.61

0.58

- quick ratio

0.47

0.49

0.51

0.27

0.41

0.42

Solvability analysis

Unsatisfactory – no own sources at all

- the borrowing ratio (total debts/net worth)

-7.08

-7.47

-12.14

-2.74

-4.23

-3.84

Profitability analysis (%)

Unsatisfactory – consecutive losses

- return on capital

-10.78

loss

loss

loss

loss

loss

- return on assets

1.77

loss

loss

loss

loss

loss

- gross profit margin

1.59

loss

loss

loss

loss

loss

Activity analysis

Debtors control not too good

- debtor’s days

154

212

180

88

99

86

- creditor’s days

n/a

n/a

n/a

n/a

n/a

n/a

Stocks turnover, times/period

9

5

6

6

8

5

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.75
UK Pound	1	Rs.100.68
Euro	1	Rs.70.88
Ron	1	Rs.15.90

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	TRI
Report Prepared by :	SDA

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.