MIRA INFORM REPORT

Report No. :	342089
Report Date :	26.09.2015

IDENTIFICATION DETAILS

Name :	SHIPPING AGENCIES INTERNATIONAL LOGISTICS SRL (SAIL)
Registered Office :	020015 Bucharest, sector 2 – C.A. Rosetti Street No. 34
Country :	Romania
Financials (as on) :	31.12.2014
Date of Incorporation :	March, 2007
Legal Form :	Limited liability company, joint venture of Romanian and foreign capital
Line of Business :	Sea and coastal freight Subject also provides its customers with a wide range of logistic solutions aimed to cover all stages of the intermodal container transport chain: rail, road, shipping and port services.
No. of Employee :	6

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
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

SHIPPING AGENCIES INTERNATIONAL LOGISTICS SRL (SAIL)

Address

020015 Bucharest, sector 2 – C.A. Rosetti Street No. 34

Phone No. :

0040-21-2225926, 3104680, 3104683

Fax no.

0040-21-2600473, 3104682, 3104684

Web-site

www.sail-romania.com

E-mail address

officebcs@sail-romania.com

sales@sail-romania.com

doc@sail-sail-romania.com

HISTORIC/OFFICIAL DATA

Date of foundation

March, 2007

Present legal form

Limited liability company, joint venture of Romanian and foreign capital

Registered with the Trade Registry

J40/5962/2007

VAT no.

21419550

Registered capital

61,000 RON

Shareholders

Individuals

1. Mrs. Ivanus Vanda Irinel – Romanian citizen, born on 28.11.1959

Participation

54.49%

2. Mr. Ivanus Victor – Romanian citizen, born on 20.08.1985

Participation

22.89%

3. Mr. Robertson Kenneth Francis – South-African citizen, born on 10.06.1966

Participation

22.46%

4. Mr. Kappelle Erik Paul – Dutch citizen, born on 2.11.1957

Participation

0.16%

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

total

-

-

-

3

6

BUSINESS ACTIVITY

- Sea and coastal freight, according to the National Trade Registry updated files (NACE: 5020)

According to www.sail-romania.com

SAIL Romania is a company headquartered in Bucharest, with a secondary office in Constanta, whose mission is to provide efficient, reliable and high quality transport services.

It provides its customers with a wide range of logistic solutions aimed to cover all stages of the intermodal container transport chain: rail, road, shipping and port services, on routes to and from South East Asia, China, Indian Sub-Continent, Middle East, Africa, Australia, Europa and USA.

In wish to steadily expanding the portfolio of services offered to its clients, SAIL Romania successfully represents, as exclusive agent, the maritime lines: FESCO (Far Eastern Shipping Company) and EMKAY Line for Romania, Greece, Ukraine, Bulgaria, Republic of Moldavia and Lithuania.

For more details, please visit www.sail-romania.com

Work-shop, as officially registered with the National Trade Registry

Constanta county / Eforie Nord – Republicii Street No. 30

Phone: 0040-241-660733; Fax: 0040-241-737091

E-mail: officecnd@sail-romania.com, opd@sail-romania.com

OTHER PARTICIPATION

1. Company’s participation

not applicable

2. Shareholders other participation

1. Mrs. Ivanus Vanda Irinel

BRUCKNER INVESTMENTS SRL – J40/3846/2010,

VAT 26776693

EVEREST MANAGEMENT GROUP SRL – J40/5864/2000,

VAT 13134900

KAPITAL LEADING TRANSPORT SRL – J40/7205/2002,

VAT 13131121

TCT MARITIME SRL – J40/14319/2013, VAT 32489925

2. Mr. Ivanus Victor

MINDWAY SRL – J40/4628/2014, VAT 33062590

TCT MARITIME SRL – J40/14319/2013, VAT 32489925

3. Mr. Robertson Kenneth Francis

TCT MARITIME SRL – J40/14319/2013, VAT 32489925

4. Mr. Kappelle Erik Paul

not applicable

TANGIBLES*

24,925 RON, at 31.12.2014

*no further details are available regarding the real estate (lands, buildings) or other premises (equipment, etc.)

BANKS

N/A

MANAGEMENT

· as officially registered with the National Trade Registry

Administrator

Mrs. Ivanus Vanda Irinel – appointed on 5.01.2009; Expiration date of mandate: 4.06.2047

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

FINANCIAL DATA: RON

BALANCE SHEET	31.12.2011	31.12.2012	31.12.2013	31.12.2014
INTANGIBLES - TOTAL	0	0	0	3,828
TANGIBLES - TOTAL	0	0	0	11,296
FINANCIALS - TOTAL	0	0	0	328
FIXED ASSETS - TOTAL	0	0	0	15,452
STOCKS - TOTAL	0	0	0	17
CLAIMS - TOTAL	6,365	6,365	1,605	8,451
CURRENT ASSETS	6,567	6,567	1,806	11,109
PREPAID EXPENSES	0	0	0	1,106
DEBTS WITHIN 1 YEAR	0	0	0	66,013
DEBTS OVER 1 YEAR	94,981	94,981	94,803	104,518
PROVISIONS	0	0	0	0
ADVANCED INCOMES	0	0	0	80,645
REGISTERED CAPITAL	60,200	60,200	60,200	60,900
RESERVES from reassessment of the fixed assets	0	0	0	0
RESERVES	0	0	0	0
PROFITS CARRIED FORWARD	-147,707	-148,614	-148,614	-153,197
NET RESULT - PROFIT	0	0	0	0
NET RESULT - LOSS	907	0	4,583	131,212
NET WORTH	-88,414	-88,414	-92,997	-223,509
PROFIT & LOSS ACCOUNT	31.12.2011	31.12.2012	31.12.2013	31.12.2014
Turnover	0	0	0	169,993
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	0	0	0	169,993
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	907	0	572	295,464
ORDINARY OPERATING RESULT - PROFIT	0	0	0	0
ORDINARY OPERATING RESULT - LOSS	907	0	572	125,471
FINANCIAL INCOMES	0	0	4,340	3,018
FINANCIAL COSTS	0	0	8,351	3,614
FINANCIAL RESULT - PROFIT	0	0	0	0
FINANCIAL RESULT - LOSS	0	0	4,011	596
CURRENT RESULT - PROFIT	0	0	0	0
CURRENT RESULT - LOSS	907	0	4,583	126,067
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	0	0	4,340	173,011
TOTAL COSTS	907	0	8,923	299,078
PRETAX RESULT - PROFIT	0	0	0	0
PRETAX RESULT - LOSS	907	0	4,583	126,067
TAX ON PROFIT	0	0	0	0
NET RESULT - PROFIT	0	0	0	0
NET RESULT - LOSS	907	0	4,583	131,212

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 31.12.2014. As consequence, the responsibility for their accuracy belongs exclusively to the company.

OUR OPINION

based upon financial figures reported in the latest balance-sheet – 31.12.2014

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

Size

micro, considering the number of employees

Position & trend

Even if established in 2007, according to the financials at hand it seems the company has started its effective activity just in 2013. Until 2012 no turnover was registered, but only expenses.

In the two years of activity – 2013 & 2014 – the turnover followed an ascendant trend, as well as the returns. Yet, despite the recovery registered in 2014, the profits were still very small.

Also, the equity is still negative, meaning no source at all for financing the activity and a total depedency on borrowed sources, consequently.

The payments behavior proved to be correct, without delays.

Overall, we appreciate for the time being the business contacts are feasible, but the credit facilities are not yet suitable. Further review on the company’s situation is suggested.

31.12.2010

31.12.2011

31.12.2012

31.12.2013

31.12.2014

Turnover

RON

0

0

0

169,993

2,263,137

EURO

0

0

0

37,905

504,928

Gross profit

RON

-907

0

-4,583

-126,067

4,402

EURO

-212

0

-1,035

-28,110

982

Net profit

RON

-907

0

-4,583

-131,212

4,402

EURO

-212

0

-1,035

-29,258

982

31.12.2014

CREDITS & LOANS (ACTIVE BALANCE)

N/A

BALANCE CLAIMS-DEBTS

Negative

Total claims; no further details are available

172,223

Total debts

500,283

- Short term; no further details are available

202,322

- Medium term; no further details are available

297,961

PAYMENTS BEHAVIOR

Correct, no delays reported

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

No incidents recorded in the period 23.09.2014 – 23.09.2015

BLACKLISTING (international sanctions)

Not applicable

	2010	2011	2012	2013	2014
	Good-enough
Liquidity analysis
- current ratio	*	*	*	0.17	1.17
- quick ratio	*	*	*	0.17	1.17
Solvability analysis	Unsatisfactory
- the borrowing ratio (total debts/net worth)	*	*	*	-0.76	-2.28
Profitability analysis (%)	Still very weak
- return on capital	*	*	*	loss	-2.01
- return on assets	*	*	*	loss	1.54
- gross profit margin	*	*	*	loss	0.19
Activity analysis	Quick settlements of debtors
- debtor’s days	*	*	*	18	28
- creditor’s days	*	*	*	n/a	n/a
Stocks turnover, times/year	*	*	*	*	*

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.10
UK Pound	1	Rs.100.89
Euro	1	Rs.73.96

INFORMATION DETAILS

Analysis Done by :	KIN
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.