MIRA INFORM REPORT

Report No. :	500825
Report Date :	05.04.2018

IDENTIFICATION DETAILS

Name :	ADARO TECNOLOGIA SA
Registered Office :	Calle Jimena Fernandez De La Vega (Pq Cientifico Tecnologico Gijon Ed., Adaro), 38, 33203 Gijon/Xixon
Country :	Spain
Financials (as on) :	31.12.2016
Date of Incorporation :	13.05.1977
Com. Reg. No.:	A33611195
Legal Form :	Joint Stock Company
Line of Business :	Manufacture of Electric Lighting Equipment
No. of Employees :	32 [2016]

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Spain	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

SPAIN - ECONOMIC OVERVIEW

After a prolonged recession that began in 2008 in the wake of the global financial crisis, Spain marked the fourth full year of positive economic growth in 2017, with economic activity surpassing its pre-crisis peak, largely because of increased private consumption. The financial crisis of 2008 broke 16 consecutive years of economic growth for Spain, leading to an economic contraction that lasted until late 2013. In that year, the government successfully shored up its struggling banking sector - heavily exposed to the collapse of Spain’s real estate boom - with the help of an EU-funded restructuring and recapitalization program.

Until 2014, contraction in bank lending, fiscal austerity, and high unemployment constrained domestic consumption and investment. The unemployment rate rose from a low of about 8% in 2007 to more than 26% in 2013, but labor reforms prompted a modest reduction to 16.4% in 2017. High unemployment strained Spain's public finances, as spending on social benefits increased while tax revenues fell. Spain’s budget deficit peaked at 11.4% of GDP in 2010, but Spain gradually reduced the deficit to about 3.3% of GDP in 2017. Public debt has increased substantially – from 60.1% of GDP in 2010 to nearly 96.7% in 2017.

Strong export growth helped bring Spain's current account into surplus in 2013 for the first time since 1986 and sustain Spain’s economic growth. Increasing labor productivity and an internal devaluation resulting from moderating labor costs and lower inflation have improved Spain’s export competitiveness and generated foreign investor interest in the economy, restoring FDI flows.

In 2017, the Spanish Government’s minority status constrained its ability to implement controversial labor, pension, health care, tax, and education reforms. The European Commission expects the government to meet its 2017 budget deficit target and anticipates that expected economic growth in 2018 will help the government meet its deficit target. Spain’s borrowing costs are dramatically lower since their peak in mid-2012, and increased economic activity has generated a modest level of inflation, at 2% in 2017.

Source : CIA

Summary

Company name	ADARO TECNOLOGIA SA
Operative address	Calle Jimena Fernandez De La Vega (Pq Cientifico Tecnologico Gijon Ed. Adaro), 38 33203 Gijon/Xixon Spain
Status	Active
Specification	This company can meet all its obligations.

Legal form	Joint Stock Company
Registration number	VAT/Tax number: A33611195
VAT-number	ESA33611195
Year	2016	Mutation	2015	Mutation	2014
Fixed assets	2.443.223	-8,96	2.683.649	-0,85	2.706.761
Total receivables	2.001.843	-25,67	2.693.046	20,74	2.230.361
Total equity	10.007.877	7,17	9.338.072	10,42	8.456.489
Short term liabilities	2.233.513	-19,43	2.772.032	28,03	2.165.123
Net result	1.095.206	-4,32	1.144.610	24,75	917.527
Working capital	8.329.949	9,20	7.628.298	11,60	6.835.253
Quick ratio	4,25	27,25	3,34	-10,93	3,75

Contact information

Company name	Adaro Tecnologia SA
Operative address	Calle Jimena Fernandez De La Vega (Pq Cientifico Tecnologico Gijon Ed. Adaro), 38 33203 Gijon/Xixon Spain
Correspondence address	Calle Jimena Fernandez De La Vega (Pq Cientifico Tecnologico Gijon Ed. Adaro), 38 33203 Gijon/Xixon Spain

Telephone number	+34 985347806
Fax number	+34 985358378
Website	www.adaro.es

Registration

Registration number	VAT/Tax number: A33611195
VAT-number	ESA33611195
Status	Active
Establishment date	1977-05-13

Legal form	Joint stock company
Subscribed share capital	EUR 528.880

Activities

NACE	2740: Manufacture of electric lighting equipment

Relations

Shareholders

Name: MR FERNANDO ADARO DE JOVE Country: ES Type: One or more named individuals or families Share direct: 23.09% Name: MR GONZALO ADARO DE JOVE Country: ES Type: One or more named individuals or families Share direct: 23.09% Name: MR LUIS ADARO DE JOVE Country: ES Type: One or more named individuals or families Share direct: 23.09% Name: MRS COVADONGA ADARO DE JOVE Country: ES Type: One or more named individuals or families Share direct: 23.09%

Structure

SUBSIDIARIES Name: TUNNEL SAFETY TESTING SA National id number: A74144973 Address: LUGAR CENTRO EXPERIMENTAL DE SAN PEDRO DE ANES, S/N City: OVIEDO Country: ES Type: Corporate Phone: +34 985741645 Fax: +34 985740134 Website: www.tunneltest.com Share direct: 20.00% Turnover: 0.40793111 mil. EUR Total assets: 0.59766651 mil. EUR Profit loss before tax: 0.0009705 mil. EUR Profit loss after tax net income: 0.00062613 mil. EUR Shareholders funds: 0.4661277 mil. EUR Number of employees: 4

Bank details

Accounts

B SABADELL BBVA BSCH LIBERBANK

Management

Management

Fullname: Mr Luis Adaro De Jove Type: Individual Gender: Male Number of involvements: 2 Function: President of the Board Level of responsibility: President / Chairman Appointment date: 2011/02/22 Fullname: Mr Luis Adaro De Jove Type: Individual Gender: Male Number of involvements: 2 Function: General Manager Level of responsibility: Unspecified executive Appointment date: 2009/02/20 Fullname: Mr Fernando Adaro De Jove Type: Individual Gender: Male Number of involvements: 2 Function: Member of the Board Level of responsibility: Member Appointment date: 2011/02/22 Fullname: Ms Maria Juan Adaro De Jove Gonzalo Type: Individual Gender: Female Number of involvements: 2 Function: Member of the Board Level of responsibility: Member Appointment date: 2011/02/22 Fullname: Mr Javier Millan Echevarria Type: Individual Gender: Male Number of involvements: 1 Function: Member of the Board Level of responsibility: Member Appointment date: 2011/02/22 Fullname: Mr Jesus Vazquez Rodriguez Type: Individual Gender: Male Number of involvements: 1 Function: Financial Manager Level of responsibility: Finance & Accounting Manager Appointment date: 2013/01/11 Fullname: Mr Luis Adaro Garcia Type: Individual Gender: Male Number of involvements: 1 Function: Commercial Director Level of responsibility: Sales executive Appointment date: 2010/01/20 Fullname: Mr Luis Adaro Garcia Type: Individual Gender: Male Number of involvements: 1 Function: Marketing Director Level of responsibility: Chief Marketing Officer; Marketing executive Appointment date: 2017/01/30 Fullname: Mr Luis Adaro Garcia Type: Individual Gender: Male Number of involvements: 1 Function: Exports Director Level of responsibility: Executive Appointment date: 2015/01/23 Fullname: Mr Luis Adaro Garcia Type: Individual Gender: Male Number of involvements: 1 Function: Imports Director Level of responsibility: Executive Appointment date: 2015/01/23 Fullname: Mr Miguel Minan Adaro Type: Individual Gender: Male Number of involvements: 1 Function: Purchases Director Level of responsibility: Purchasing executive Appointment date: 2016/01/27

Employees

Year	2016	2015	2014	2013	2012
Annual	32	29	29	29	30

Financial analysis

Trend	Constant
Profitability	More than sufficient
Solvability	More than sufficient
Liquidity	More than sufficient
Show amount in	Euro

Key figures

Year	2016	2015	2014	2013	2012
Quick ratio	4,25	3,34	3,75	3,25	3,55
Current ratio	4,73	3,75	4,16	3,73	3,96
Working capital/ balance total	0,64	0,58	0,58	0,55	0,54
Equity / balance total	0,77	0,71	0,72	0,69	0,68
Equity / Fixed assets	4,10	3,48	3,12	2,80	2,49
Working capital	8.329.949	7.628.298	6.835.253	6.296.258	5.662.431
Equity	10.007.877	9.338.072	8.456.489	7.840.379	7.120.840
Mutation equity	7,17	10,42	7,86	10,10
Mutation short term liabilities	-19,43	28,03	-6,11	20,74
Return on total assets (ROA)	10,92	11,63	10,87	10,61	8,51
Return on equity (ROE)	14,19	16,29	15,05	15,43	12,47
Gross profit margin	14,94	16,32	15,17	14,61	10,79
Net profit margin	11,53	12,58	11,65	11,81	10,69
Average collection ratio	4,25	3,28	3,64	3,27	3,53
Average payment ratio	4,75	3,38	3,53	3,49	2,91
Equity turnover ratio	0,95	0,97	0,93	0,96	0,95
Total assets turnover ratio	0,73	0,70	0,67	0,66	0,65
Fixed assets turnover ratio	3,89	3,39	2,91	2,70	2,36
Inventory conversion ratio	8,93	7,96	8,96	6,79	8,45
Turnover	9.502.613	9.101.771	7.872.448	7.550.876	6.740.481
Operating result	1.420.164	1.485.030	1.194.131	1.102.870	727.059
Net result after taxes	1.095.206	1.144.610	917.527	891.776	720.361
Cashflow	1.485.404	1.482.620	1.221.218	1.175.552	950.124
Gross profit	3.619.165	3.489.389	3.133.003	3.039.624	2.691.070
EBITDA	1.810.362	1.823.039	1.497.822	1.386.647	956.821
Summary	The 2016 financial result structure is a postive working captial of 8.329.949 euro, which is in agreement with 64 % of the total assets of the company. The working capital has increased with 9.2 % compared to previous year. The ratio, with respect to the total assets of the company has however, increased. The improvement between 2015 and 2016 has mainly been caused by a change of the current assets. The current ratio of the company in 2016 was 4.73. If the current ratio exeeds 3.0, the company may not be using its current assets or its short-term financing facilities efficiently . The quick ratio in 2016 of the company was 4.25. A company with a Quick Ratio of more than 1 can currently pay back its current liabilities. The 2015 financial result structure is a postive working captial of 7.628.298 euro, which is in agreement with 58 % of the total assets of the company. The working capital has increased with 11.6 % compared to previous year. The ratio with respect to the total assets of the company remains unchanged. The improvement between 2014 and 2015 has mainly been caused by a change of the current liabilities. The current ratio of the company in 2015 was 3.75. If the current ratio exeeds 3.0, the company may not be using its current assets or its short-term financing facilities efficiently . The quick ratio in 2015 of the company was 3.34. A company with a Quick Ratio of more than 1 can currently pay back its current liabilities.

Financial statement

Auditor	Name: LLANA AUDITORES S.L.
Last annual account	2016
Remark annual account	The company is obliged to file its financial statements.

Type of annual account	Corporate
Annual account	Adaro Tecnologia SA Calle Jimena Fernandez De La Vega (Pq Cientifico Tecnologico Gijon Ed. Adaro), 38 33203 Gijon/Xixon Spain

Balance

Year	2016	2015	2014	2013	2012
End date	2016-12-31	2015-12-31	2014-12-31	2013-12-31	2012-12-31
Type of annual account	Corporate	Corporate	Corporate	Corporate	Corporate
Intangible fixed assets	186.475	398.669	473.052	505.518	467.198
Tangible fixed assets	2.143.393	2.069.226	2.038.591	2.106.576	2.218.121
Other fixed assets	113.355	215.754	195.119	183.488	175.406
Fixed assets	2.443.223	2.683.649	2.706.761	2.795.583	2.860.725
Total stock	1.064.115	1.144.009	878.339	1.111.979	797.582
Total receivables	2.001.843	2.693.046	2.230.361	2.162.246	2.315.511
Liquid funds	2.102.078	2.151.277	1.541.009	1.492.047	1.130.236
Other current assets	5.395.426	4.411.998	4.350.667	3.836.069	3.329.125
Current assets	10.563.462	10.400.330	9.000.376	8.602.341	7.572.454
Total assets	13.006.685	13.083.978	11.707.137	11.397.924	10.433.179
Total equity	10.007.877	9.338.072	8.456.489	7.840.379	7.120.840
Long term liabilities	765.295	973.874	1.085.525	1.251.462	1.402.316
Accounts payable	1.601.742	2.018.816	1.437.421	1.679.885	1.373.476
Liabilities towards credit institutes	148.765	254.766	196.315	133.255	168.611
Other short term liabilities	483.006	498.450	531.387	492.943	367.937
Short term liabilities	2.233.513	2.772.032	2.165.123	2.306.083	1.910.023
Total liabilities	13.006.685	13.083.978	11.707.137	11.397.924	10.433.179
Summary	The total assets remained the same between 2015 and 2016. Despite the fact that the total assets remained the same, the fixed assets decreased with -8.96 %. In 2016 the assets of the company were 18.78 % composed of fixed assets and 81.22 % by current assets. The assets are being financed by an equity of 76.94 %, and total debt of 23.06 %. The total assets of the company increased with 11.76 % between 2014 and 2015. The total assets are entirely composed of current assets. In 2015 the assets of the company were 20.51 % composed of fixed assets and 79.49 % by current assets. The assets are being financed by an equity of 71.37 %, and total debt of 28.63 %.

Profit and loss

Year	2016	2015	2014	2013	2012
Revenues	9.443.461	9.057.017	7.813.291	7.511.559	6.705.860
Net turnover	9.502.613	9.101.771	7.872.448	7.550.876	6.740.481
Wages and salaries	1.794.361	1.613.593	1.537.345	1.526.255	1.551.854
Amorization and depreciation	390.198	338.009	303.692	283.776	229.763
Production costs	5.122.177	5.016.148	3.886.119	4.198.041	3.507.278
Operating result	1.420.164	1.485.030	1.194.131	1.102.870	727.059
Financial income	26.932	83.944	98.590	127.724	183.678
Financial expenses	27.319	47.796	20.327	20.768	22.931
Financial result	-387	36.149	78.263	106.956	160.747
Result on ordinary operations before taxes	1.419.778	1.521.179	1.272.394	1.209.826	887.805
Taxation on the result of ordinary activities	324.572	376.568	354.867	318.050	167.444
Result of ordinary activities after taxes	1.095.206	1.144.610	917.527	891.776	720.361
Net result	1.095.206	1.144.610	917.527	891.776	720.361
Summary	The turnover of the company grew with 4.4 % between 2015 and 2016. The operating result of the company declined with -4.37 % between 2015 and 2016. This evolution implies an decrease of the company's economic profitability. The result of these changes is a reduction of the company's Economic Profitability of -6.1 % of the analysed period, being equal to 10.92 in the year 2016. Despite the decline the assets turnover increased by 4.29 % reaching 0.73. The Net Result of the company decreased by -4.32 % between 2015 and 2016. The company's Financial Profitability has been positively affected by the financial activities in comparison to the EBITs behaviour. The result of these variations is a profitability increase of -12.89 % of the analysed period, being 14.19 in the year 2016. The company's financial profitability has been positively affected by its financial structure. The turnover of the company grew with 15.62 % between 2014 and 2015. The operating result of the company grew with 24.36 % between 2014 and 2015. This evolution implies an increase of the company's economic profitability. The result of these changes is an increase of the company's Economic Profitability of 6.99 % of the analysed period, being equal to 11.63 in the year 2015. This growth has contributed to the increase in assets turnover, increasing by 4.48 % reaching 0.7. The Net Result of the company increased by 24.75 % between 2014 and 2015. The company's Financial Profitability has been positively affected by the financial activities in comparison to the EBITs behaviour. The result of these variations is a profitability increase of 8.24 % of the analysed period, being 16.29 in the year 2015. The company's financial structure has slowed down its financial profitability.

Country information

Population	46.4 million
GDP per capita	26.565 USD
Country risk	Low
Company risk	Very Low

Publications

Remarks

Status: Active Status date: 2000-12-22 Category: Medium sized company Last year: 2016 Turnover last year: 9.502.613 EUR Result last year: 1.095.206 EUR TOTAL assets last year: 13.006.685 EUR Number of employees: 32 Number of shareholders: 4 Number of subsidiaries: 1 Number of branches: 0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.02
UK Pound	1	INR 91.49
Euro	1	INR 79.79
Euro	1	INR 79.79

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

INFORMATION DETAILS

Analysis Done by :	NIS
Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.