MIRA INFORM REPORT

Report No. :	346269
Report Date :	21.10.2015

IDENTIFICATION DETAILS

Name :	OAO "PO "KRISTALL"

Registered Office :	Ul SHkadova D 2, 214031 G Smolensk

Country :	Russia

Financials (as on) :	31.12.2014

Date of Incorporation :	26.12.2003

Com. Reg. No.:	1036758337021

Legal Form :	Public Limited Company

Line of Business :	Manufacture of Jewellery and Related Articles n.e.c.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

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)

Russia

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

RUSSIA - ECONOMIC OVERVIEW

Russia has undergone significant changes since the collapse of the Soviet Union, moving from a globally-isolated, centrally-planned economy towards a more market-based and globally-integrated economy, but stalling as a partially reformed, statist economy with a high concentration of wealth in officials' hands. Economic reforms in the 1990s privatized most industry, with notable exceptions in the energy and defense-related sectors. The protection of property rights is still weak and the private sector remains subject to heavy state interference. Russia is one of the world's leading producers of oil and natural gas, and is also a top exporter of metals such as steel and primary aluminum. Russia's manufacturing sector is generally uncompetitive on world markets and is geared toward domestic consumption. Russia's reliance on commodity exports makes it vulnerable to boom and bust cycles that follow the volatile swings in global prices. The economy, which had averaged 7% growth during 1998-2008 as oil prices rose rapidly, was one of the hardest hit by the 2008-09 global economic crisis as oil prices plummeted and the foreign credits that Russian banks and firms relied on dried up. In 2014, economic growth declined further when Russia forcibly violated Ukraine’s sovereignty and territorial integrity, and interfered in Ukraine’s internal affairs. In the second half of 2014, the Russian ruble lost about half of its value, contributing to increased capital outflows that reached $151.5 billion for the year; the ruble remains volatile. Declining oil prices, lack of economic reforms, and the imposition of foreign sanctions have contributed to the downturn and created wide expectations the economy will continue to slump. In April 2015, the Russian Ministry of Economic Development predicted that the Russia’s economy will contract by 3% in 2015, and average only 2.5% growth through 2030.

Source : CIA

Company Name and address

OAO "PO "Kristall"

UL SHKADOVA D 2,
214031 G SMOLENSK

Tel: 74812200139
Telefax: 74812611406
E-Mail: rusales@kristallsmolensk.com
Web: www.kristallsmolensk.ru

Company Summary

Established on

26/12/2003 - Public limited company (OAO)

Registered on

26/12/2003, Inspektsiya Ministerstva Rossiyskoy Federatsii po nalogam i sboram po Promyshlennomu rayonu g.Smolenska,

RegNr.: 1036758337021
Tax number: 6731044928
Statistical number: 00227790

Registered capital		RUB	5 538 550 000,-
Owner	Rosimushchestvo per Nikolskiy d 9, 109012 g Moskva Beginning of validity: 25.01.2012	%	100

Board of directors	Aleksandr Vladimirovich Markin Member of the board of directors
	Andrey Vyacheslavovich ZHarkov Member of the board of directors

	Ekaterina Ilinichna Novokreshchenykh Member of the board of directors
	Irina Sergeevna Marchuk Member of the board of directors

	Sergey Ivanovich ZHuravlev Member of the board of directors
	Tamara Aleksandrovna Kasyanova Member of the board of directors

	Tatyana Mikhaylovna Medvedeva Member of the board of directors
	Tatyana Valerevna Olifirova Member of the board of directors

	Valentin Stepanovich Vlasov Member of the board of directors
Sole Executive Body	Maksim Aleksandrovich SHkadov Managing director

General data	Main activity: Manufacture of jewellery and related articles n.e.c.	(36.22.3)
	Full name: OAO "Proizvodstvennoe obedinenie "Kristall"

	Name in foreign language: Open Joint-Stock Company "Production Corporation "
	Short name: OAO "PO "Kristall"


	Residence address: ul SHkadova d 2, 214031 g Smolensk Tel: 74812200139 Telefax: 74812611406 E-Mail: rusales@kristallsmolensk.com Web: www.kristallsmolensk.ru

Other activities
	:

	Publishing of newspapers	(22.12)
	Manufacture of machine tools	(29.40.7)

	Manufacture of jewellery and related articles n.e.c.	(36.22)
	General construction of buildings and civil engineering works	(45.21.1)

	Installation of electrical wiring and fittings	(45.31)
	Agents specializing in the sale of particular products or ranges of products n.e.c.	(51.18.24)

	Agents specializing in the sale of particular products or ranges of products n.e.c.	(51.18.25)
	Wholesale of other household goods	(51.47.34)

	Wholesale of other intermediate products	(51.56.3)
	Other retail sale in specialized stores	(52.48.22)

	Canteens	(55.51)
	Other land passenger transport	(60.23)

	Research and experimental development on natural sciences and engineering	(73.10)
	Market research and public opinion polling	(74.13.1)

	Advertising	(74.40)
	Other business activities not elsewhere classified	(74.84)

	Primary education				(80.10.1)
Annual turnover	31/12/2006	Enterprise turnover	RUB	9 727 403 000,-

	31/12/2007	Enterprise turnover	RUB	10 422 844 000,-
	31/12/2008	Enterprise turnover	RUB	7 512 860 000,-

	31/12/2009	Enterprise turnover	RUB	7 762 459 000,-
	31/12/2010	Enterprise turnover	RUB	12 102 949 000,-

	31/12/2011	Enterprise turnover	RUB	16 732 080 000,-
	31/12/2012	Enterprise turnover	RUB	13 687 377 000,-

	31/12/2013	Enterprise turnover	RUB	12 397 173 000,-
	31/12/2014	Enterprise turnover	RUB	11 888 171 000,-

Remarks

OAO PO “Kristall” specializes in mass production of premium diamonds.
According to the research, through the managing director of OAO PO “Kristall”, Maksim Aleksandrovich Shkadov, the company is affiliated with following legal persons:
ZAO “MONO-7” – OGRN: 1036758318850, Smolensk. Maksim Aleksandrovich Shkadov is the owner of 26% of share capital of this company.
OOO “SANATORIY-PROFILAKTORIY KRISTALL” – OGRN: 1026700663813, Smolenskaya oblast, Zhukovo. Maksim Aleksandrovich Shkadov is the owner of 25,12% of share capital of this company.
OOO “KD-PROGRESS” – OGRN: 1026701441227, Smolensk. Maksim Aleksandrovich Shkadov is the owner of 33,33% of share capital of this company.
OOO “Konditer” – OGRN: 1026701462281, Smolensk. Maksim Aleksandrovich Shkadov is the owner of 33,33% of share capital of this company.
OOO “KOMMUNIKATSII” – OGRN: 1156733001710, Smolensk. Maksim Aleksandrovich Shkadov is the owner of 17% of share capital of this company.
OOO “ZOLOTAYA KEGLYA” – OGRN: 1106731002388, Smolensk. Maksim Aleksandrovich Shkadov is the owner of 33,33% of share capital of this company.
OOO “KLUB KRISTALL” – OGRN: 1026701423649, Smolensk. Maksim Aleksandrovich Shkadov is the owner of 33,4% of share capital of this company.
Debt collection of the company (as claimant):
In 2015: 86 462, 99 RUB;
In 2014: 152 616, 67 RUB.
The company had state contracts on the total sum:
In 2015: 107 063 RUB;
In 2013: 1 495 000 RUB;
In 2012: 792 427 RUB.
According to the information, disclosed by the Federal Tax Service, OAO PO “Kristall” does not have tax arrears, the company is not going to be excluded from the state register as non-active.
According to the information, disclosed by the Pension Fund of Russian Federation, OAO PO “Kristall” does not have delays in social payments.
According to the research, OAO PO “Kristall” does not meet the most frequently encountered in practice characteristics of unreliable companies (so-called “shell” companies), developed by the Federal Tax Service of Russian Federation.
OAO PO “Kristall” is not in the list of default debtors, the Register of unfair suppliers, the blacklist of Russian companies.
The management of the company is not in the list of default debtors, the register of disqualified persons, the blacklist of Russian Private Persons.

Financials

A. The enclosed balance of 2012 is originated from official source, no data available about authentication. (31.12.2012 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).
B. The enclosed balance of 2013 is originated from official source, no data available about authentication. (31.12.2013 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).
C. The enclosed balance of 2014 is originated from official source, no data available about authentication. (31.12.2014 - 1000 RUB) - Warning! The figures stated in the balance sheet may contain error(s).

balance	A 31.12.2012	B 31.12.2013	C 31.12.2014
1. ASSETS
I. FIXED ASSETS
Intangible assets	1 030	3 405	4 061
The results of research and development	0	0	0
Intangible research assets	0	0	0
Tangible research assets	0	0	0
Fixed assets	590 460	629 108	589 292
Profitable investments in tangible assets	18 910	16 677	14 699
Financial investments	352 395	349 501	339 194
Deferred tax assets	28 662	27 189	46 701
Other non-current assets	16	14	11
TOTAL IN SECTION I.	991 473	1 025 894	993 959
II. CURRENT ASSETS
Inventories	8 759 848	5 754 459	5 006 892
VAT on acquired assets	192 555	28 397	169 421
Accounts receivable	4 653 043	4 567 893	5 508 434
Financial investments (excluding the monetary equivalent)	1 192 303	1 290 473	2 157 728
Cash and monetary equivalents	1 270 231	331 993	8 343
Other current assets	268	236	302
TOTAL IN SECTION II.	16 068 248	11 973 451	12 851 120
BALANCE	17 059 721	12 999 345	13 845 079
2. LIABILITIES
III. CAPITAL AND RESERVES
Authorized capital (share capital, charter capital, deposits capital, partners capital)	5 538 550	5 538 550	5 538 550
Treasury stock	0	0	0
Revaluation of fixed assets	0	0	0
Additional capital (without revaluation)	0	0	0
Reserve capital	23 514	24 841	25 081
Retained earnings (uncovered loss)	786 106	782 928	795 871
TOTAL IN SECTION III.	6 348 170	6 346 319	6 359 502
IV. LONG-TERM LIABILITIES
Borrowed funds	0	0	0
Deferred tax liabilities	1 931	2 550	2 867
Provisions	0	0	0
Other liabilities	0	0	0
TOTAL IN SECTION IV.	1 931	2 550	2 867
V. SHORT-TERM LIABILITIES
Borrowed funds	10 136 536	6 420 814	6 337 348
Payables	563 527	192 924	249 306
Deferred income	70	69	68
Provisions	9 487	36 668	895 987
Sonstige Verbindlichkeiten	0	0	0
TOTAL IN SECTION V.	10 709 620	6 650 476	7 482 709
BALANCE	17 059 721	12 999 345	13 845 079
A. The enclosed profit and loss account of 2012 is originated from official source, no data available about authentication. (31.12.2012 - 1000 RUB) B. The enclosed profit and loss account of 2013 is originated from official source, no data available about authentication. (31.12.2013 - 1000 RUB) C. The enclosed profit and loss account of 2014 is originated from official source, no data available about authentication. (31.12.2014 - 1000 RUB)

profit and loss account	A 31.12.2012	B 31.12.2013	C 31.12.2014
Turnover	13 687 377	12 397 173	11 888 171
Cost of sales	12 555 010	11 650 377	10 971 290
Gross profit (loss)	1 132 367	746 796	916 881
Selling expenses	361 639	235 251	275 478
Administrative expenses	649 897	417 451	404 475
Sales profit (loss)	120 831	94 094	236 928
Earnings from other entities	8 855	10 352	6 952
Interest receivable	366 409	74 390	183 217
Interest payable	638 866	597 606	493 812
Other operating income	2 567 609	1 591 213	5 520 646
Other operating expenses	2 377 448	1 154 204	5 394 218
Profit (loss) before tax	47 390	18 239	59 713
Current profit tax	4 404	11 259	63 694
Permanent tax liabilities (assets)	-12 909	-11 773	-33 947
Change in deferred tax liabilities	-102	619	317
Change in deferred tax assets	-16 335	-1 473	19 512
Different	199	100	164
Net profit (loss)	26 554	4 788	15 050
Results of fixed assets revaluation, non-includedin net profit/loss for period	0	0	0
Result of other transactions, non included in net profit/loss for period	0	0	0
Total financial result for period	26 554	4 788	15 050

Ratios		2012	2013	2014
	Current ratio	1,5	1,8	1,72

	Quick ratio	0,68	0,94	1,05
	Average Collection Period	131	136	155

	Payables turnover Period	16,58	11,85	7,36
	Debt ratio	0,63	0,51	0,54

	Equity to total assets ratio	0,37	0,49	0,46
	Funding ratio	0,59	0,95	0,85

	Return on sales	0,19	0,04	0,13
	Return on Assets	0,16	0,03	0,11

Return on Equity

0,42

0,08

0,24

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.89
UK Pound	1	Rs.100.39
Euro	1	Rs.73.52

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	NIT

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.

MIRA INFORM REPORT

Company Name and address

Company Summary

Financials

Unit