MIRA INFORM REPORT

Report No. :	493826
Report Date :	27.02.2018

IDENTIFICATION DETAILS

Name :	ROCON TRADE JSC
Registered Office :	UL. 21-VI Vek 56A 1700 Sofia
Country :	Bulgaria
Financials (as on) :	31.12.2016
Date of Incorporation :	14.02.1996
Legal Form :	Joint Stock Company (AD)
Line of Business :	Research, development, manufacturing and maintenance of wide range of world-class intelligent electronic devices (IEDs): relay protections, bay monitoring and control units, testing and measuring equipment for the power energy industry
No. of Employees :	3 (2017)

RATING & COMMENTS

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

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate
Payment Behaviour :	Slow
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)
Bulgaria	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

BULGARIA - ECONOMIC OVERVIEW

Bulgaria, a former communist country that entered the EU in 2007, has an open economy that historically has demonstrated strong growth, but its per-capita income remains the lowest among EU members and its reliance on energy imports and foreign demand for its exports makes its growth sensitive to external market conditions.

The government undertook significant structural economic reforms in the 1990s to move the economy from a centralized, planned economy to a more liberal, market-driven economy. These reforms included privatization of state-owned enterprises, liberalization of trade, and strengthening of the tax system - changes that initially caused some economic hardships but later helped to attract investment, spur growth, and make gradual improvements to living conditions. From 2000 through 2008, Bulgaria maintained robust, average annual real GDP growth in excess of 6%, which was followed by a deep recession in 2009 as the financial crisis caused domestic demand, exports, capital inflows and industrial production to contract, prompting the government to rein in spending. Real GDP growth remained slow - less than 2% annually - until 2015, when demand from EU countries for Bulgarian exports, plus an inflow of EU development funds, boosted growth to more than 3%. In recent years, strong domestic demand combined with low international energy prices have contributed to Bulgaria’s economic growth approaching 4% and have also helped to ease inflation which turned positive in 2017. Bulgaria’s prudent public financial management contributed to a balanced budget in 2016 and a near-balanced budget for 2017.

Bulgaria is heavily reliant on energy imports from Russia, a potential vulnerability, and is a participant in EU-backed efforts to diversify regional natural gas supplies. In late 2016, the Bulgarian Government provided funding to Bulgaria’s National Electric Company to cover the $695 million compensation owed to Russian nuclear equipment manufacturer Atomstroyexport for the cancellation of the Belene Nuclear Power Plant project, which the Bulgarian Government terminated in 2012. The natural gas market, however, continues to be dominated by state-owned Bulgargaz, which is almost entirely supplied by Russia. Infrastructure projects such as the Inter-Connector Greece-Bulgaria and Inter-Connector Bulgaria-Serbia, which would enable Bulgaria to have access to non-Russian gas, have either stalled or made limited progress. In 2016, the Bulgarian Government established the State eGovernment Agency. This new agency is responsible for the implementation of projects related to electronic governance as well as coordination of national policies in this area with the EU requirements and practices, as well as to strengthen cybersecurity.

Despite a favorable investment regime, including low, flat corporate income taxes, significant challenges remain. Corruption in public administration, a weak judiciary, low productivity, and the presence of organized crime continue to hamper the country's investment climate and economic prospects.

Source : CIA

COMPANY DETAILS

Local name: ROKON TREYD AD

International name: Rocon Trade JSC

Registered address:

UL. 21-VI VEK 56A
1700 SOFIA
Bulgaria
Telephone: +359 2 962 22 74, +359 2 962 23 94
Fax: +359 2 962 86 40
E-Mail: rocon@roconbg.com
Internet: http://roconbg.com/

ESTABLISHMENT & REGISTRATION:

Established: 14.02.1996
Registered at Sofia town court
Court number 2924/1996
Bulstat/VAT number: 121038382

Status of the company:

Active

LEGAL FORM:

Joint Stock Company (AD)

REGISTERED CAPITAL:

BGN 50 000.00

SHAREHOLDERS/MANAGEMENT

SHAREHOLDERS:

OGNYAN MARINOV KATOV	ID 5402136704	60,00%
VLADISLAV KOSTADINOV HRISTOV	ID 5402066680	40,00%

MANAGEMENT:

Name	ID	Function	Nationality
VLADISLAV KOSTADINOV HRISTOV	5402066680	Representative	Bulgaria
BOYKO NIKOLOV HRISTOV	5407206980	Board of Directors	Bulgaria
OGNYAN MARINOV KATOV	5402136704	Board of Directors	Bulgaria
VLADISLAV KOSTADINOV HRISTOV	5402066680	Board of Directors	Bulgaria

RELATED COMPANIES:

Company ID	Company Name
831681266	ROKON INJENERING AD
121117171	ROKON IZSLEDOVATELSKI TSENTAR AD
40573666	SOFIYSKI TEHNOLOGICHEN INSTITUT
175157319	VIHOLD EOOD
175157301	KATOV EOOD
40031740	KOMTRON EOOD

BUSINESS ACTIVITY

BUSINESS OPERATION:

NACE 1.1: 51.87 Wholesale of other machinery for use in industry, trade and navigation

Activity:

Research, development, manufacturing and maintenance of wide range of world-class intelligent electronic devices (IEDs): relay protections, bay monitoring and control units, testing and measuring equipment for the power energy industry
Innovative concepts for substation automation.
Fast and excellent results in “turnkey� construction of modern substations
Substantial achievements in research and development related to the use of new and renewable energy sources and energy saving.

NUMBER OF EMPLOYEES:

As at date	Value
31.12.2006	9
31.12.2007	12
31.12.2008	9
31.12.2009	13
31.12.2010	8
31.12.2011	8
31.12.2012	8
31.12.2013	8
31.12.2014	5
31.12.2015	4
31.12.2016	2
31.12.2017	3

EXPORT:

Taiwan, India, Turkey, Russia, Slovenia, Egypt, Indonesia, Malaysia, Myanmar

IMPORT:

EU

REAL ESTATE:

None

FINANCIAL DATA

TURNOVER:

Year	Currency	Value
2002	BGN	1 557 000.00
2003	BGN	564 000.00
2004	BGN	1 069 000.00
2005	BGN	2 393 000.00
2006	BGN	4 849 000.00
2007	BGN	7 035 000.00
2008	BGN	4 483 000.00
2009	BGN	3 061 000.00
2010	BGN	654 000.00
2011	BGN	613 000.00
2012	BGN	2 033 000.00
2013	BGN	357 000.00
2014	BGN	573 000.00
2015	BGN	562 000.00
2016	BGN	226 000.00

MODES OF PAYMENT:

Slow

DEBT COLLECTION:

No debt collection cases are registered against the company.

BANK DISTRAINTS:

No shares of the company are under bank distraint.

UNPAID TAXES/ CONTRIBUTIONS TO GOVERNMENT:

There is no publication about overdue unpaid taxes.

INVOLVEMENT IN LEGAL DISPUTES:

There is no publication about legal claims or disputes against the company.

OTHER PAYMENT INFORMATION:

No adverse payment information is available.

BRANCH INDICATOR:

The company's payment behaviour is average for the branch.

Ratio	2013	2014	2015	2016
Accounting period:	1.1.2013 - 31.12.2013	1.1.2014 - 31.12.2014	1.1.2015 - 31.12.2015	1.1.2016 - 31.12.2016
Debt ratio	0.21	0.21	0.31	0.19
Quick ratio	0.65	0.55	0.67	0.53
Current ratio	3.84	3.24	1.99	3.26
Days purchase in payables	320.56	223.30	343.29	414.64
Operating margin in %	0.00	0.00	0.18	0.89
Cash ratio (acid ratio)	0.04	0.00	0.00	0.01
Return on sales ROS in %	0.00	0.00	0.18	0.89
Return on assets ROA in %	0.00	0.00	0.06	0.15
Return on equity ROE in %	0.00	0.00	0.08	0.18
Days supply in inventory	1 021.35	599.76	453.21	1 133.04
Days sales in receivables	194.16	122.39	227.57	215.36

BALANCE SHEET in BGN'000	2013	2014	2015	2016
Accounting period:	1.1.2013 - 31.12.2013	1.1.2014 - 31.12.2014	1.1.2015 - 31.12.2015	1.1.2016 - 31.12.2016
A. UNPAID CAPITAL
B. FIXED ASSETS
I. Fixed Intangible Assets:
R&D Products
Concessions, patents, trade-marks etc
Goodwill
Intangible fixed assets under construction
thereof advances
Total I
II. Fixed Tangible Assets
Land and Buildings
thereof Land
thereof Buildings
Machines, Vehicles	1			1
Equipment
Tangible fixed assets under construction
thereof advances
Total II.	1			1
III. Fixed Financial Assets
Shares in group companies
Loans granted to group companies
Shares in joint ventures	25	25	25	25
Long term investments
Other loans	28
Bought back own shares
Total III.	286	480	657	525
IV. Deferred Taxes	1
B. FIXED ASSETS TOTAL	288	480	657	526
C. CURRENT ASSETS
I. Inventories
Raw Materials	3	3	3	3
Work in progress
thereof young animals
Trading goods	1007	835	702	702
thereof production
thereof goods for sale	1007	835	702	702
Advances
Total I.	1010	838	705	705
II. Receivables
Receivables from customers	28	22	11	100
thereof more than 1 year
Receivables from group companies
thereof more than 1 year
Receivables from joint ventures	149	133	332	33
thereof more than 1 year
Other receivables	15	16	11	1
thereof more than 1 year
Total II.	192	171	354	134
III. Current Financial Assets
Current investments in related companies
Bought back own shares
Other current financial assets
Total III.
IV. Cash equivalents
Cash and accounts in the country	14	1	2	2
thereof cash		1	2
Thereof cash in foreign currency (equivalent)
thereof current accounts	14			2
thereof blocked accounts
thereof cash equivalents
Cash and accounts abroad
thereof cash
Thereof cash in foreign currency (equivalent)
thereof current accounts
thereof blocked accounts
Total IV.	14	1	2	2
C. CURRENT ASSETS TOTAL	1216	1010	1061	841
D. Deferred expenses	8	8	3	1
TOTAL ASSETS	1512	1498	1721	1368
A. OWNERS EQUITY
I. Share capital	50	50	50	50
II. Issue premium	185	185	185	185
III. Revaluation reserves
thereof revaluation reserves of financial instruments
IV. Reserves
legal reserves
reserve related to bought back own shares
reserve from company foundation	5	5	5	5
other reserves	60	60	60	60
Total IV.	65	65	65	65
V. Result from previous period
Undistributed profit	1071	1071	1071	993
Uncovered loss		-176	-185	-185
Total V.	1071	895	886	808
VI. Current result profit (loss)	-176	-9	1	2
A. OWNERS EQUITY TOTAL	1195	1186	1187	1110
B. PROVISIONS
Provisions for pensions
Provisions for taxes
thereof deferred taxes
Other provisions
B. PROVISIONS TOTAL
C. LIABILITIES
Bond-backed loans
less than 1 year
more than 1 year
Bank loans
less than 1 year
more than 1 year
Advances received	28
less than 1 year	28
more than 1 year
Payables to suppliers	8	3	13	6
less than 1 year	8	3	13	6
more than 1 year
Liabilities on policies
less than 1 year
more than 1 year
Liabilities to group companies
less than 1 year
more than 1 year
Liabilities to joint-venture companies	151	117	322	143
less than 1 year	151	117	322	143
more than 1 year
Other liabilities	130	192	199	109
less than 1 year	130	192	199	109
more than 1 year
thereof to personnel	81	142	154	3
less than 1 year	81	142	154	3
more than 1 year
thereof to social insurance	18	6	5	3
less than 1 year	18	6	5	3
more than 1 year
thereof for taxes	13	22	24	17
less than 1 year	13	22	24	17
more than 1 year
C. LIABILITIES TOTAL	317	312	534	258
less than 1 year	317	312	534	258
more than 1 year
D. FINANCING AND DEFERRED INCOME
thereof
Financing
Deferred income
TOTAL EQUITY AND LIABILITIES	1512	1498	1721	1368

P&L ACCOUNT in BGN'000	2013	2014	2015	2016
Accounting period:	1.1.2013 - 31.12.2013	1.1.2014 - 31.12.2014	1.1.2015 - 31.12.2015	1.1.2016 - 31.12.2016
A. EXPENSES
I. OPERATION EXPENSES
Decrease of inventories
thereof for materials	13	16	4	4
thereof for services	103	88	43	67
Personnel expenses	170	137	97	105
thereof wages	144	117	82	91
thereof social insurance	26	20	15	14
thereof pensions	18	15	10	10
Depreciation	6
thereof Depreciation of fixed assets	6
Other expenses	231	330	407	44
thereof Book value of sold assets (without production)	205	314	393	29
I. OPERATION EXPENSES TOTAL	523	571	551	220
II. Financial expenditures
Depreciation of financial assets			1
thereof exchange rate losses			1
Paid interest	11	10	9	4
thereof interest to group companies
Thereof expenditures for securities operations
II. Financial expenditures Total	11	10	10	4
B. Profit on ordinary activity			1	2
III. Extraordinary expenses
thereof expenses on disasters and emergency expenses
C. Total expenses (I+II+III)	534	581	561	224
D. Accounting profit			1	2
IV. Taxation on profit
V. Other taxes		1
E. Net profit			1	2
Total expenses	534	582	562	226
A. REVENUES
I. OPERATING REVENUES
Net sales	356	503	560	224
Production
Goods	272	384	531	158
Services	84	119	29	66
Increase of production and work in progress
Expenses on acquisition of assets
Other revenues	1	70	2	2
thereof financing
I. TOTAL OPERATING REVENUES	357	573	562	226
II. FINANCIAL REVENUES
Income from shares
thereof income from shares in group companies
Income from investments and loans
thereof from investments in group companies
Income from interest	1
thereof from interest from group companies
II FINANCIAL REVENUES TOTAL	1
TOTAL REVENUES FROM ORDINARY ACTIVITIES	358	573	562	226
LOSS	176	8
Extraordinary revenues
AFTER TAX LOSS	176	9
TOTAL REVENUES	534	582	562	226

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.66
UK Pound	1	INR 90.65
Euro	1	INR 79.70
BGN	1	INR 40.84

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

INFORMATION DETAILS

Analysis Done by :	NIY
Report Prepared by :	TRU

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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