MIRA INFORM REPORT

Report No. :	492779
Report Date :	24.02.2018

IDENTIFICATION DETAILS

Name :	JOINT STOCK COMPANY RESEARCH AND DESIGN INSTITUTE OF UREA AND ORCANIC SYNTHESIS PRODUCTS
Formerly Known As :	GOSNIIKARBAMIDPROEKT
Registered Office :	NIIK Building, Griboedov Street 31, Nizhegorodskaya Region, 606008 Dzerzhinsk
Country :	Russia
Financials (as on) :	31.12.2016
Date of Incorporation :	02.03.1993
Com. Reg. No.:	OGRN 1025201752597
Legal Form :	Joint Stock Company
Line of Business :	· Other research and experimental development on natural sciences and engineering · Engineering activities and related technical consultancy
No. of Employees :	600

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 :	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)
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

company SUMMARY
COMPANY NAME	OAO Nauchno-Issledovatelskiy i Proektniy Institut Karbamida i Produktov Organicheskogo Sinteza
ADDRESS	Building	Street			Area			PO Box
	NIIK Building	Griboedov Street 31			Nizhegorodskaya Region			606008 Dzerzhinsk
TEL/FAX	Verified Phones: (+7 8313) 394 900 / (+7 831) 277 9675 / Fax: (+7 8313) 261 995 / (+7 8313) 255 221
EMAIL/WEBSITE	Email: niik@niik.ru / golubtsov_sv@niik.ru / Website: www.niik.ru
ACTIVITY	NACE 7219 - Other research and experimental development on natural sciences and engineering; NACE 7112 - Engineering activities and related technical consultancy;
PRINCIPAL	Igor Veniaminovich Esin					Workforce
	Chairman					600
LEGAL INFO	Date Of Est.		Reg. No.	Legal Form			Status
	02/03/1993		OGRN 1025201752597	Joint Stock Company			Active
CAPITAL	CURRENCY			AMOUNT
	RUBLE (RUB)			7,000

IDENTIFICATION
CO. NAME	OAO Nauchno-Issledovatelskiy i Proektniy Institut Karbamida i Produktov Organicheskogo Sinteza
ENQUIRED NAME	JOINT STOCK COMPANY RESEARCH AND DESIGN INSTITUTE OF UREA AND ORCANIC SYNTHESIS PRODUCTS
TRADEMARK	NIIK
ALSO KNOWN NAME (S)	OAO NIIK / Research And Design Institute of Urea and Organic Synthesis Products / Joint Stock Company Research And Design Institute Of Urea And Organic Synthesis Products / R&D Institute of Urea
FORMER NAME	GosNIIkarbamidproekt
BUILDING	NIIK Building
STREET	Griboedov Street 31
AREA	Nizhegorodskaya Region
POSTAL ADDRESS	606008 Dzerzhinsk
CITY	Dzerzhinsk
COUNTRY	Russia
TELEPHONE	(+7 8313) 394 900 (+7 831) 277 9675 / (+7 910) 872 6638 / (+7 831) 277 9607
FAX	(+7 8313) 261 995 / (+7 8313) 255 221
VERIFIED EMAIL	niik@niik.ru / golubtsov_sv@niik.ru / usacheva_av@niik.ru / chausova@niik.ru kargaeva@niik.ru
WEBSITE	www.niik.ru
BUSINESS HOURS	DAYS	OFFICE HOURS	BREAK TIME
	Mon-Fri	09:00-18:00	13:00-14:00
REGISTERED ADDRESS	Griboedov Street 31, Nizhegorodskaya Region, 606008 Dzerzhinsk, Russia

SENIOR PERSONNEL
MANAGEMENT	NAME	POSITION
	Igor Veniaminovich Esin	Chairman
	Oleg Nikolaevich Kostin Aleksandr Vasilevich Shihinov Nikolay Valerievich Lobanov Andrey Nikolaevich Shkanakin Tatyana Borisovna Martyushova Natalya Kargaeva Ivan Smirnov Anastasia Chausova	Managing Director Technical Director Deputy Managing Director Finance Director HR Director Head of International Relations Department IT Director International Affairs Manager
WORKFORCE	NO. OF EMPLOYEES	PERIOD
	600	01.2018

FINANCIAL SUMMARY
REVENUE	31/12/2016	31/12/2015
	RUBLE 1,346,205,000	RUBLE 6,187,369,000
NET PROFIT / (LOSS)	31/12/2016	31/12/2015
	RUBLE 16,096,000	RUBLE 1,672,019,000
PROFIT BEFORE TAX	RUBLE 27,527,000 as of 31/12/2016
STOCK/INVENTORIES	RUBLE 813,744,000 as of 31/12/2016

LEGAL STATUS
INCORPORATION	02/03/1993
REGISTRATION NO.	C.R. NUMBER	ISSUED BY
	OGRN 1025201752597 (issued on: 03/10/2002)	Federal Tax Service
OTHER REGISTRATION NO.	INN 5249003464 (Tax Code) / KPP 524901001 / OKPO 208953 (Statistics Code) / OKTMO 22721000001
AUTHORISED CAPITAL	AMOUNT	CURRENCY
	7,000	RUBLE
PAID-UP CAPITAL	AMOUNT	CURRENCY
	7,000	RUBLE
LEGAL FORM	Joint Stock Company
BUSINESS HISTORY	The Company was incorporated in Russian Federation on 2 March 1993 on the basis of GosNIIkarbamidproekt, which was operating since 1951.
STATUS	Active
SHAREHOLDERS	NAME	PERCENTAGE
	1. OOO TIKO Griboedova Street 31 Nizhegorodskaya Region 606008 Dzerzhinsk Russia Est.: 27/08/1991 Tax Code: INN 5249006320 Shareholders: Igor Veniaminovich Esin - 79% Gennadiy Grekov – 10% Svetlana Borisovna Esina – 8.5% Sergey Olegovich Esin – 2.5% 2. OOO Nipak Griboedova Street 31 Nizhegorodskaya Region 606008 Dzerzhinsk Russia Est.: 22/02/1995 Tax Code: INN 5249021600 Shareholders: Igor Veniaminovich Esin – 95% Egor Igorevich Esin – 5% 3. ZAO TIKO Invest Griboedova Street 31 Nizhegorodskaya Region 606008 Dzerzhinsk Russia Est.: 08/12/1999 Tax Code: INN 5249051147 Managing Director: Igor Veniaminovich Esin 4. OOO SVAKOR Bulvar Pobedy Street 3/20 Nizhegorodskaya Region 606000 Dzerzhinsk Russia Est.: 25/12/1991 Tax Code: INN 5249008695 Shareholders: Nikolay Kuznetsov – 50% Anatoliy Makarov – 25% Viktor Potapov – 25% 5. ZAO TIKO-Stal Griboedova Street 31 Nizhegorodskaya Region 606008 Dzerzhinsk Russia Est.: 08/12/1999 Tax Code: INN 5249051130 Managing Director: Igor Veniaminovich Esin 6. 301 (Russian national) Physical individuals	28.94% 16.83% 14.98% 14.97% 10.22% 14.06%

OPERATION
BANKERS	1. JSC VTB Bank Nizhniy Novgorod Branch Russia Telephone: +(7 800) 200 2326 Acc. No.: 40702978924030012440 2. Volgo-Vyatskiy Bank PAO SBERBANK Griboedova Street 43 Nizhegorodskaya Region 606008 Dzerzhinsk Russia Telephone: (+7 8313) 256 434 Acc. No.: 40702810242160000802 Correspondent Acc. No.: 30101810900000000603
ACTIVITY CODE (NACE)	7219 - Other research and experimental development on natural sciences and engineering; 7112 - Engineering activities and related technical consultancy;
LINE OF BUSINESS	Providers of engineering services, including laboratory tests and pilot studies, feasibility studies and development of engineering and design documentation in the field of urea and urea-based fertilizers, as well as detailed engineering for downstream products, such as melamine and relative compounds, isocyanates and their derivatives: phosgene, cyanides etc.
IMPORT FROM	Europe, Spain, Denmark, Finland, Switzerland, Germany, Ukraine, the Netherlands, Italy and Japan.
EXPORT (SERVICES) TO	CIS countries, Hungary, Serbia, Estonia, Armenia, Algeria, Egypt, Iran, India, Afghanistan, Vietnam, China, Cuba
FACILITIES	Owned premises comprising administrative offices, a laboratory, a research institute and storage facilities located at the heading address as well as 3 branch offices located in Nizhniy Novgorod, Moscow and Novomoskovsk (see “Branch Offices” below)
BRANCH OFFICES	1. Dolgopolova Street 50/40 Nizhniy Novgorod 603002 Russia Telephone: (+7 831) 277 9675 2. Zemlyanoy Val Street 34a Moscow 105064 Russia Telephone: (+7 495) 917 0198 3. Mayakovskogo Street 19v Tulskaya Region Novomoskovsk 301664 Telephone: (+7 4876) 297 502 E-Mail: nko-niik@niik.ru
RELATED COMPANIES	Subsidiary OOO SIMPLEKS Uritskogo Street 14A Nizhegorodskaya Region 606008 Dzerzhinsk Russia Est.: 17/11/1995 C.R. No.: OGRN 1025201749506 Tax Code: INN 5249040025 Shareholders: OAO Nauchno-Issledovatelskiy i Proektniy Institut Karbamida i Produktov Organicheskogo Sinteza – 99.85% Igor Veniaminovich Esin – 0.15%

FINANCIAL INFORMATION
CURRENCY	RUBLE
PERIOD	31/12/2016	31/12/2015
CURRENT ASSETS	3,413,597,000	3,281,801,000
STOCK/INVENTORIES	813,744,000	126,593,000
NON-CURRENT ASSETS	151,941,000	108,490,000
CURRENT LIABILITIES	2,207,997,000	1,388,763,000
NON-CURRENT LIABILITIES	42,173,000	7,000
EQUITY	1,315,368,000	2,001,521,000
BALANCE TOTAL	3,565,538,000	3,390,291,000
REVENUE	1,346,205,000	6,187,369,000
NET PROFIT / LOSS	16,096,000	1,672,019,000
NOTES	Balance sheets as at 31 December 2016 showed : 31/12/2016 31/12/2015 (in RUBLE) ASSETS Non-current assets Intangible assets 11,017,000 8,523,000 Fixed assets 121,274,000 80,334,000 Financial investments 19,507,000 19,507,000 Deferred tax assets 144,000 126,000 Total non-current assets 151,941,000 108,490,000 Current assets Stock 813,744,000 126,593,000 Value added tax on purchased valuables 366,000 193,000 Trade receivables 909,976,000 737,252,000 Financial investments 1,019,881,000 2,303,130,000 Cash equivalents 466,633,000 69,925,000 Other current assets 202,996,000 44,708,000 Total current assets 3,413,597,000 3,281,801,000 TOTAL ASSETS 3,565,538,000 3,390,291,000 EQUITY & LIABILITIES Share capital 7,000 7,000 Added capital 107,000 107,000 Reserve capital 110,000 110,000 Retained earnings 1,301,206,000 1,987,256,000 Total Equity 1,315,368,000 2,001,521,000 Long-term liabilities Borrowings 42,166,000 0 Deferred tax Liabilities 7,000 7,000 Total long-term liabilities 42,173,000 7,000 Short-term Liabilities Borrowings 1,079,159,000 86,764,000 Accounts payable 1,098,284,000 1,209,632,000 Total Short-term Liabilities 2,207,997,000 1,388,763,000 TOTAL EQUITY & LIABILITIES 3,565,538,000 3,390,291,000 INCOME STATEMENT Revenue 1,346,205,000 6,187,369,000 Cost of Sales 1,090,584,000 4,066,824,000 Gross Profit 255,621,000 2,120,545,000 Commercial expenses 8,910,000 8,305,000 Profit(loss) from sales 246,711,000 2,112,240,000 Other income and expenses Interest income 87,582,000 19,758,000 Interest payable 73,453,000 68,193,000 Other income 311,805,000 226,798,000 Other expenses 545,118,000 134,219,000 Profit(loss) before taxation 27,527,000 2,156,384,000 Change in deferred tax assets 17,000 0 Current income tax 11,448,000 439,750,000 Net Profit(loss) 16,096,000 1,672,019,000

SPECIAL REMARKS
COMMENTS	You enquired on: JOINT STOCK COMPANY RESEARCH AND DESIGN INSTITUTE OF UREA AND ORCANIC SYNTHESIS PRODUCTS. Please note that this name applies to an English translation of the subject’s name. Subject’s correct registered name is as per heading.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.82
UK Pound	1	INR 90.40
Euro	1	INR 79.76
RUB	1	INR 1.15

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

INFORMATION DETAILS

Analysis Done by :	PRI
Report Prepared by :	KET

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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