MIRA INFORM REPORT

Report No. :	489963
Report Date :	07.02.2018

IDENTIFICATION DETAILS

Name :	OOO ESAB-SVEL
Formerly Known As :	ZAO ESAB-SVEL
Registered Office :	Korabelnaya Street 6, Building 5, Kirovskiy District, 198096 Saint Petersburg
Country :	Russia
Financials (as on) :	31.12.2016
Date of Incorporation :	09.12.2014
Com. Reg. No.:	OGRN 1147847430763
Legal Form :	Limited Liability Company
Line of Business :	Manufacturers of welding electrodes and welding flux as well as the following: - Electrodes for welding of carbon steels: - Welding electrodes for high-strength and heat-resistant steels; - Electrodes for welding stainless and heat-resistant steels.
No. of Employees :	260 [2018]

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 :	Good
Payment Behaviour :	Regular
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 (30.06.2017)	Current Rating (30.09.2017)
Russia	A2	A2

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

RUSSIA - ECONOMIC OVERVIEW

Russia has undergone significant changes since the collapse of the Soviet Union, moving from a centrally planned economy towards a more market-based system. Both economic growth and reform have stalled in recent years, however, and Russia remains a predominantly 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, transportation, banking, and defense-related sectors. The protection of property rights is still weak, and the state continues to interfere in the free operation of the private sector.

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 is heavily dependent on the movement of world commodity prices as 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 the 1998-2008 period as oil prices rose rapidly, has seen diminishing growth rates since then due to the exhaustion of Russia’s commodity-based growth model.

A combination of falling oil prices, international sanctions, and structural limitations pushed Russia into a deep recession in 2015, with GDP falling by close by 2.8%. The downturn continued through 2016, with GDP contracting another 0.2%, but was reversed in 2017 as world demand picked up. Government support for import substitution has increased recently in an effort to diversify the economy away from extractive industries.

Source : CIA

SUMMARY
COMPANY NAME	OOO ESAB-SVEL
ADDRESS	Building	Street			Area			PO Box
	N/A	Korabelnaya Street 6, Building 5			Kirovskiy District			198096 Saint Petersburg
TEL/FAX	Verified Phones: +(7 812) 309 0388 / Fax: +(7 812) 309 0387
EMAIL/WEBSITE	Email: info@esab.ru / irina.brestkin@esab.ru / Website: www.esab.ru
ACTIVITY	NACE 2593 - Manufacture of wire products, chain and springs; NACE 4690 - Non-specialised wholesale trade;
PRINCIPAL	Anatoliy Evgenievich Panchev					Workforce
	Managing Director					260
LEGAL INFO	Date Of Est.		Reg. No.	Legal Form			Status
	09/12/2014		OGRN 1147847430763	LLC			Active
CAPITAL	CURRENCY			AMOUNT
	RUBLE (RUB)			209,112,500

IDENTIFICATION
CO. NAME	OOO ESAB-SVEL
TRADEMARK	ESAB / ESAB-SVEL
ALSO KNOWN NAME (S)	ESAB-SVEL LLC
FORMER NAME	ZAO ESAB-SVEL
STREET	Korabelnaya Street 6, Building 5
AREA	Kirovskiy District
POSTAL ADDRESS	198096 Saint Petersburg
CITY	Saint Petersburg
COUNTRY	Russia
TELEPHONE	+(7 812) 309 0388 / +(7 812) 644 0141 / +(7 812) 644 0142
FAX	+(7 812) 309 0387
VERIFIED EMAIL	info@esab.ru / spb.sales@esab.ru / irina.brestkin@esab.ru / 3091221@esab.ru
WEBSITE	www.esab.ru
BUSINESS HOURS	DAYS	OFFICE HOURS	BREAK TIME
	Mon-Fri	09:00-18:00	13:00-14:00
REGISTERED ADDRESS	Korabelnaya Street 6, Building 5, Kirovskiy District, 198096 Saint Petersburg, Russia

SENIOR PERSONNEL
MANAGEMENT	NAME	POSITION
	Anatoliy Evgenievich Panchev	Managing Director
	Irina Brestkina Natalya Inokentievna Ms. Tatyana	Financial Controller HR Manager Office Manager
WORKFORCE	NO. OF EMPLOYEES	PERIOD
	260	01.2018
	170	03.2017

FINANCIAL SUMMARY
REVENUE	31/12/2016	31/12/2015
	RUBLE 1,341,098,000	RUBLE 1,219,463,000
NET PROFIT / (LOSS)	31/12/2016	31/12/2015
	RUBLE 47,685,000	RUBLE 41,097,000
PROFIT BEFORE TAX	RUBLE 60,428,000 as of 31/12/2016
STOCK/INVENTORIES	RUBLE 90,188,000 as of 31/12/2016

LEGAL STATUS
INCORPORATION	09/12/2014
REGISTRATION NO.	C.R. NUMBER	ISSUED BY
	OGRN 1147847430763	Federal Tax Service
OTHER REGISTRATION NO.	INN 7805666163 (Tax Code) / KPP 780501001 / OKPO 53304740 (Statistics Code) / OKTMO 40338000000
AUTHORISED CAPITAL	AMOUNT	CURRENCY
	209,112,500	RUBLE
PAID-UP CAPITAL	AMOUNT	CURRENCY
	209,112,500	RUBLE
LEGAL FORM	Limited Liability Company
BUSINESS HISTORY	The company was incorporated on 9 December 2014 by acquiring assets and operations of ZAO ESAB-SVEL (Tax Code: INN 7805164011 / OGRN 1027802712981), which was operating since 27/04/2000. Subject’s origins of activities can be traced back to 1991.
STATUS	Active
SHAREHOLDERS	NAME	PERCENTAGE
	OOO ESAB Vozdvizhenka Street 40 Moscow 125009 Russia Tel: +(7 495) 663 2008 Fax: +(7 495) 663 2009 Est.: 04/12/2000 C.R. No.: OGRN 1037739258919 Tax Code: INN 7704219345 Managing Director: Konstantin Grigorievich Gorbach Shareholders: Exelvia Cyprus Limited – 99% Cyprus Exelvia International Holdings B.V. – 1% Ultimate parent company: Colfax Corporation 420 National Business Parkway, 5th Floor Annapolis Junction, MD 20701 USA Tel: +(1 301) 323 9090 Fax: +(1 301) 323 9001 Colfax Corporation is an American Dispensary corporation headquartered in Annapolis Junction, Maryland, indexed on the NYSE. Originally it was founded as a spinoff out of American Dispensary conglomerate the Danaher Corporation. Colfax Corp. acquired British Charter International PLC which in turn owned Swedish ESAB (8 500 employees worldwide, 2012) in 2011. Both companies have since been wholly owned by Colfax. Further Colfax also acquired Allweiler.	100.00%

OPERATION
BANKERS	PAO Sberbank Vavilova Street 19 117997 Moscow Russia Telephone: (+7 495) 957 5731 Fax : (+7 495) 747 4758 Subject also has an account with other local banks.
ACTIVITY CODE (NACE)	NACE 2593 - Manufacture of wire products, chain and springs; NACE 4690 - Non-specialised wholesale trade;
LINE OF BUSINESS	Manufacturers of welding electrodes and welding flux as well as the following: - Electrodes for welding of carbon steels: - Welding electrodes for high-strength and heat-resistant steels; - Electrodes for welding stainless and heat-resistant steels.
IMPORT FROM	Europe and China.
EXPORT TO	Ukraine, Belarus and Kazakhstan.
FACILITIES	Owned premises comprising administrative premises, a manufacturing unit and storage facilities located at the heading address as well as additional office premises located at Malookhtinskiy Avenue 64, Liter B, Saint Petersburg 195112.
RELATED COMPANIES	Subsidiaries of Colfax Corporation (subject’s ultimate parent company) in the region: 1. ESAB Kazakhstan LLC Kazakhstan 2. ESAB Tyumen LLC Russia 3. ESAB Ukraine LLC Ukraine 4. Howden LLC Russia 5. Sychevsky Electrode Plant Russia

FINANCIAL INFORMATION
CURRENCY	RUBLE
PERIOD	31/12/2016	31/12/2015
CURRENT ASSETS	317,322,000	379,185,000
STOCK/INVENTORIES	90,188,000	78,204,000
NON-CURRENT ASSETS	456,253,000	226,417,000
CURRENT LIABILITIES	105,873,000	132,891,000
NON-CURRENT LIABILITIES	9,766,000	8,460,000
EQUITY	657,936,000	464,251,000
BALANCE TOTAL	773,575,000	605,602,000
REVENUE	1,341,098,000	1,219,463,000
NET PROFIT / LOSS	47,685,000	41,097,000
NOTES	Balance sheets as at 31 December 2016 showed : 31/12/2016 31/12/2015 (in RUBLE) ASSETS Non-current assets Intangible assets 2,939,000 3,648,000 Fixed assets 334,453,000 184,273,000 Deferred tax assets 2,185,000 2,011,000 Other non-current assets 116,676,000 36,485,000 Total non-current assets 456,253,000 226,417,000 Current assets Stock 90,188,000 78,204,000 Value added tax on purchased valuables 2,842,000 2,834,000 Trade receivables 218,844,000 294,880,000 Cash equivalents 3,108,000 1,600,000 Other current assets 2,340,000 1,667,000 Total current assets 317,322,000 379,185,000 TOTAL ASSETS 773,575,000 605,602,000 EQUITY & LIABILITIES Share capital 209,112,000 63,112,000 Added capital 9,000 9,000 Reserve capital 3,155,000 3,155,000 Retained earnings 445,660,000 397,975,000 Total Equity 657,936,000 464,251,000 Total long-term liabilities 9,766,000 8,460,000 Short-term liabilities Accounts payable 104,001,000 132,760,000 Deferred income 130,000 131,000 Other liabilities 1,742,000 0 Total Short-term Liabilities 105,873,000 132,891,000 TOTAL EQUITY & LIABILITIES 773,575,000 605,602,000 INCOME STATEMENT Revenue 1,341,098,000 1,219,463,000 Cost of Sales 1,177,493,000 1,079,482,000 Gross Profit 163,605,000 139,981,000 Commercial expenses 6,896,000 6,431,000 Administrative expenses 49,676,000 38,826,000 Profit(loss) from sales 107,033,000 94,724,000 Other income and expenses Other income 29,824,000 37,509,000 Other expenses 76,429,000 79,456,000 Profit(loss) before taxation 60,428,000 52,777,000 Change in deferred tax assets 174,000 -25,000 Change in deferred tax liabilities 1,306,000 1,976,000 Current income tax 11,611,000 9,679,000 Net Profit(loss) 47,685,000 41,097,000 The following Consolidated Balance Sheets as at 31 December 2017 (Unaudited) applies to subject’s ultimate parent company, Colfax Corporation: 31/12/2017 31/12/2016 (in thousands of USD) ASSETS CURRENT ASSETS: Cash and cash equivalents 262,019 208,814 Short term investments 149,608 — Trade receivables, less allowance for doubtful accounts of $31,488 and $29,005 970,199 838,796 Inventories, net 429,627 364,972 Other current assets 258,379 175,721 Current portion of assets held for sale — 150,275 Total current assets 2,069,832 1,738,578 Property, plant and equipment, net 552,802 505,431 Goodwill 2,538,544 2,350,996 Intangible assets, net 1,017,203 916,347 Other assets 543,267 520,031 Assets held for sale, less current portion — 307,057 TOTAL ASSETS 6,721,648 6,338,440 LIABILITIES AND EQUITY CURRENT LIABILITIES: Current portion of long-term debt 5,766 5,406 Accounts payable 587,129 513,363 Customer advances and billings in excess of costs incurred 145,853 142,377 Accrued liabilities 358,632 311,326 Current portion of liabilities held for sale — 87,183 Total current liabilities 1,097,380 1,059,655 Long-term debt, less current portion 1,055,305 1,286,738 Other liabilities 841,699 732,729 Liabilities held for sale, less current portion — 165,974 Total liabilities 2,994,384 3,245,096 Equity: Common stock, $0.001 par value; 400,000,000 shares authorized; 123,245,827 and 122,780,261 issued and outstanding 123 123 Additional paid-in capital 3,228,174 3,199,682 Retained earnings 846,490 685,411 Accumulated other comprehensive loss (574,372) (988,345) Total Colfax Corporation equity 3,500,415 2,896,871 Noncontrolling interest 226,849 196,473 Total equity 3,727,264 3,093,344 Total liabilities and equity 6,721,648 6,338,440 Consolidated Statements of Income (Unaudited) 31/12/2017 31/12/2016 (in thousands of USD) Net sales 3,300,184 3,185,753 Cost of sales 2,270,709 2,193,371 Gross profit 1,029,475 992,382 Selling, general and administrative expense 732,340 696,800 Restructuring and other related charges 68,351 58,496 Goodwill and intangible asset impairment charge 152,700 238 Pension settlement loss 46,933 48 Operating (loss) income 29,151 236,800 Interest expense 41,137 30,276 (Loss) income from continuing operations before income taxes (11,986) 206,524 Provision for income taxes 42,554 51,772 Net (loss) income from continuing operations (54,540) 154,752 Income (loss) from discontinued operations, net of taxes 224,047 (9,561) Net income 169,507 145,191 Less: income attributable to noncontrolling interest, net of taxes 18,417 17,080 Net income attributable to Colfax Corporation 151,090 128,111

PAYMENT RECORDS
CREDIT OPINION	We consider it is acceptable to deal with subject for LARGE amounts.
FINANCIAL STRENGTH	Normal

SPECIAL REMARKS
INTERVIEWED	Irina Brestkina (Financial Controller).
COMMENTS	You enquired on: ESAB SVEL JNT STC. Please note that subject’s correct registered name is as per heading.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.27
UK Pound	1	INR 89.72
Euro	1	INR 79.52
RUB	1	INR 1.12

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

INFORMATION DETAILS

Analysis Done by :	PRI
Report Prepared by :	SYL

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)

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