MIRA INFORM REPORT

Report No. :	343459
Report Date :	03.10.2015

IDENTIFICATION DETAILS

Name :	GEMA EXIMCO 2000 SRL
Registered Office :	Bucharest, 160 Nicolae Canea Street, Sector 2
Country :	Romania
Financials (as on) :	30.06.2015
Date of Incorporation :	November 1994
Legal Form :	Limited liability company
Line of Business :	Wholesale trade with meat and meat products
No. of Employees :	33

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

GEMA EXIMCO 2000 SRL

Address

Bucharest, 160 Nicolae Canea Street, Sector 2

Phone no.

0040-21-2424974

Fax no.

0040-21-2424989

Web-site

-

E-mail address

gemaex@arexim.ro

HISTORIC/OFFICIAL DATA

Date of foundation

November, 1994

Present legal form

Limited liability company, entire Romanian capital

Registered with the Trade Registry

J40/20841/1994

VAT no.

6454669

Registered capital

390,000 RON

Shareholders

Individuals

1. Tair Gemur – Romanian citizen, born on 26.02.1970

Participation

50%

2. Nedelcuta J. Jean – Romanian citizen, born on 27.09.1963

Participation

50%

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

25

32

36

41

37

33

BUSINESS ACTIVITY

Officially registered with the National trade Registry updated files

- wholesale trade with meat and meat products (NACE – 4632)

Work-shop: Olt county, Corabia, 4 Bibescu Voda Street

OTHER PARTICIPATION

1. Company’s participation

VT DISTRIBUTION SRL – Reg. no.: J12/2762/2008, VAT 24088965

DONAU CASINGS SRL – Reg. no.: J28/69/2015, VAT 34050062

2. Shareholders other participation

Not applicable

REAL ESTATE (RON)

- lands & buildings

2010

2011

2012

2013

2014

n/a

6,281,061

6,228,237

6,073,628

5,891,366

TANGIBLES*

9,915,937 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

n/a

MANAGEMENT

· as officially registered with the National Trade Registry

Nedelcuta J Jean – Administrator

Appointed on 11.04.2002 for unspecified 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 = 4.3888 RON on 30.06.2014

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	123	1,159	671	477
TANGIBLES - TOTAL	8,959,986	8,724,392	9,427,662	9,915,937
FINANCIALS - TOTAL	400	400	400	1,400
FIXED ASSETS - TOTAL	8,960,509	8,725,951	9,428,733	9,917,814
STOCKS - TOTAL	5,893,298	6,680,356	5,497,287	6,060,589
CLAIMS - TOTAL	18,511,859	13,695,167	11,708,537	10,817,788
CURRENT ASSETS	25,601,368	20,833,125	17,456,120	17,047,168
PREPAID EXPENSES	49,853	48,315	45,619	48,691
DEBTS WITHIN 1 YEAR	24,858,957	22,839,995	19,689,525	20,234,319
DEBTS OVER 1 YEAR	784,452	518,755	382,634	382,342
PROVISIONS	0	0	0	0
ADVANCED INCOMES	0	0	0	0
REGISTERED CAPITAL	390,000	390,000	390,000	390,000
RESERVES from reassessment of the fixed assets	3,633,373	3,559,491	3,485,609	3,448,669
RESERVES	2,260,119	2,334,001	588,203	625,144
PROFITS CARRIED FORWARD	2,223,302	1,784,829	814,829	1,904,501
NET RESULT - PROFIT	0	0	0	0
NET RESULT - LOSS	461,527	0	1,579,672	28,699
NET WORTH	8,968,321	6,248,641	6,858,313	6,397,013
PROFIT & LOSS ACCOUNT	31.12.2012	31.12.2013	31.12.2014	30.06.2015
Turnover	45,584,218	27,179,405	25,589,311	8,152,178
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	46,151,582	27,586,352	26,928,441	8,839,313
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	44,590,297	28,597,388	25,252,620	8,830,003
ORDINARY OPERATING RESULT - PROFIT	1,561,285	0	1,675,821	9,310
ORDINARY OPERATING RESULT - LOSS	0	1,011,036	0	0
FINANCIAL INCOMES	6,649,706	2,141,670	1,326,383	878,403
FINANCIAL COSTS	7,539,748	2,873,569	1,369,637	823,042
FINANCIAL RESULT - PROFIT	0	0	0	55,361
FINANCIAL RESULT - LOSS	890,042	731,899	43,254	0
CURRENT RESULT - PROFIT	671,243	0	1,632,567
CURRENT RESULT - LOSS	0	1,742,935	0
Extraordinary incomes	0	0	0
Extraordinary costs	0	0	0
EXTRAORDINARY RESULT - PROFIT	0	0	0
EXTRAORDINARY RESULT - LOSS	0	0	0
TOTAL INCOMES	52,801,288	29,728,022	28,254,824	9,717,716
TOTAL COSTS	52,130,045	31,470,957	26,622,257	9,653,045
PRETAX RESULT - PROFIT	671,243	0	1,632,567	64,671
PRETAX RESULT - LOSS	0	1,742,935	0	0
TAX ON PROFIT	209,716	76,745	52,895	35,972
NET RESULT - PROFIT	461,527	0	1,579,672	28,699
NET RESULT - LOSS	0	1,819,680	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 30.06.2015. 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

small, considering the number of employees

Position & trend

Even large the volume of activity is continuously decreasing and with variable returns, from profit to losses and back to profit.

Liquidity is insufficient to meet the payments within agreed terms, large delays being reported, even exceeding seriously the turnover’s level.

In terms of solvability, indebtedness rate is slightly over limited.

Financial standing looks deteriorating.

Business trend has to be followed.

31.12.2010

31.12.2011

31.12.2012

31.12.2013

30.06.2014

31.12.2014

30.06.2015

Turnover

RON

43,358,771

49,982,791

45,584,218

27,179,405

11,811,577

25,589,311

8,152,178

EURO

10,119,205

11,570,894

10,292,912

6,060,473

2,691,300

5,709,224

1,822,327

Gross profit

RON

1,296,937

1,419,611

671,243

-1,742,935

1,111,220

1,632,567

64,671

EURO

302,683

328,636

151,567

-388,640

253,194

364,242

14,456

Net profit

RON

943,520

1,106,377

461,527

-1,819,680

893,949

1,579,672

28,699

EURO

220,202

256,124

104,213

-405,753

203,689

352,440

6,415

30.06.2015

CREDITS & LOANS (ACTIVE BALANCE)

N/A

BALANCE CLAIMS-DEBTS

Negative

Total claims, no further details available

10,817,788

Total debts

20,616,661

- Short term, no further details available

20,234,319

- Medium term, no further details available

382,342

PAYMENTS BEHAVIOR

with significant delays

Total overdue much over the level of turnover (58% of total short term debt)

11,637,084

To suppliers ( 55% of all)

11,490,964

over 30 days

1,587,759

over 90 days

2,702,437

over 1 year

7,200,768

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents reported during 2.10.2014 - 2.10.2015

BLACKLISTING (international sanctions)

Not applicable

2010

2011

2012

2013

2014

30.06.2015

Insufficient to meet the payments within agreed terms

Liquidity analysis

- current ratio

1.06

1.02

1.03

0.91

0.89

0.84

- quick ratio

0.87

0.90

0.79

0.62

0.61

0.54

Solvability analysis

Over limited indebtedness rate

- the borrowing ratio (total debts/net worth)

3.27

4.47

2.83

3.72

2.93

3.22

Profitability analysis (%)

Strongly fluctuant

- return on capital

10.94

12.68

5.15

losses

23.03

0.45

- return on assets

2.52

2.32

1.33

losses

5.87

0.11

- gross profit margin

2.99

2.84

1.47

losses

6.38

0.79

Activity analysis

Payables & receivables are out of control

- debtor’s days

178

224

148

184

167

484

- creditor’s days

131

209

115

183

168

n/a

Stocks turnover, times/period

8

11

8

4

5

1

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.55
UK Pound	1	Rs.99.17
Euro	1	Rs.73.08

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TRU

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.