MIRA INFORM REPORT

Report No. :	484568
Report Date :	10.01.2018

IDENTIFICATION DETAILS

Name :	CONTRAIL MACHINERY SRL
Registered Office :	Preciziei 17, 062202 Bucuresti Sector 6
Country :	Romania
Financials (as on) :	31.12.2016
Date of Incorporation :	26.11.2014
Com. Reg. No.:	J40/13801/2014
Legal Form :	Private Limited Company
Line of Business :	Manufacture of Machinery for Mining, Quarrying and Construction
No. of Employees :	24 [2016]

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 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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Romania	B1	B1

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

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 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 standby agreement, worth $6.6 billion, to promote fiscal discipline, encourage progress on structural reforms, and strengthen financial sector stability; no funds were drawn. In September 2013, Romanian authorities and the IMF/EU agreed to a follow-on standby agreement, worth $5.4 billion, to continue with reforms. This agreement expired in September 2015, and no funds were drawn. Progress on structural reforms has been uneven, and the economy still is vulnerable to external shocks.

Economic growth rebounded in the 2013-16 period, driven by strong industrial exports and excellent agricultural harvests, and the fiscal deficit was reduced substantially. Industry outperformed other sectors of the economy in 2016. Exports remained an engine of economic growth, led by trade with the EU, which accounts for roughly 70% of Romania trade. Domestic demand was a second driver, due to the mid-2015 cut, from 24% to 9%, of the VAT levied upon foodstuffs. In 2015, the Government of Romania succeeded in meeting its annual target for the budget deficit, the external deficit remained low, even if it rose due to increasing imports. For the first time since 1989, inflation turned into deflation, allowing for a gradual loosening of monetary policy throughout the period.

An aging population, significant tax evasion, insufficient health care, and an aggressive loosening of the fiscal package jeopardize the low fiscal deficit and public debt and are the economy's top vulnerabilities.

Source : CIA

Company identification
	CONTRAIL MACHINERY SRL Preciziei 17 062202 Bucuresti Sector 6 Romania	Telephone E-mail WEB	+40 374 020640 +40 752 787545 office@contrail.ro www.contrail.ro
	Crefo No. 893563 Tax No. RO 33845800	Registration No. Status	J40/13801/2014 Active

Economic situation

Business connection	Business connections appear permissible
Payment behaviour	Slow but correct

Basic information

Legal form

Private Limited Company

Registration and changes

Established on 26.11.2014 as Contrail Machinery Srl Private Limited Company

Owners and Capital

Name / Address / Nationality	From	Share
Tipau Andrei Constantin (birth date 19/12/1987) ORAS CHITILA, Romania, Romanian	18/03/2015	100,000000 %

Registered Capital
Currency	Value
RON	220

Management
Name / Address / Status	Position
Tipau Andrei Constantin (birth date 19/12/1987)	Administrator

Subsidiaries

Connections

Through	Name / Address	Position	Share
Tipau Andrei Constantin
RO 31665756	DELTA RAILWAY CONSTRUCTION SRL	Shareholder	92,86000000%
RO 31024670	AU C. ANDREI-CONSTANTIN A	Shareholder	0,00000000%

Business activities

Main activity	Nace
Manufacture of machinery for mining, quarrying and construction	2892

Legal office and working spaces at the above mentioned address.

Economic data
Turnover and Employees
Date	Turnover	Employees
31.12.2016	8.714.525 RON	24
31.12.2015	1.604.597 RON	18

Properties

None

Supplementary data

Main Indices

Payment experience and credit opinion

Business connection	Business connections appear permissible	(31)
Payment behavior	Slow but correct	(31)

Negative events

The company has no overdue debts to the State budget that exceeds the minimum ceiling, according to the information published by the Ministry of Finance on 30.09.2017.

There are no related to the subject at the Payment Incidents Bureau (CIP) in the period 04.01.2011 - 04.01.2018.

There are no records related to the subject company in our debt collection department.

There are no records related to the subject company at the Insolvency Proceedings Bulletin.

The subject company is not registered with legal proceedings opened against it, according to Court Portal.

Balances

Assets

Name	31/12/2015 RON SHORT	31/12/2016 RON SHORT
INTANGIBLE FIXED ASSETS	NA	8.094
TANGIBLE FIXED ASSETS	NA	424.961
CAPITAL ASSETS	NA	5.157

Name	31/12/2015 RON SHORT	31/12/2016 RON SHORT
FIXED ASSETS - TOTAL	63.154	438.212
INVENTORIES	65.787	923.974
RECEIVABLES	378.443	962.756
SHORT-TERM INVESTMENTS	N/A	N/A
PETTY CASH AND BANK ACCOUNTS	173.866	1.614.230
CURRENT ASSETS - TOTAL	618.096	3.500.960
PREPAID EXPENSES	0	0
TOTAL ASSETS	681.250	3.939.172

Liabilities

Name	31/12/2015 RON SHORT	31/12/2016 RON SHORT
DAT.I: AMOUNTS THAT MUST BE PAID DURING A PERIOD OF MAX. ONE YEAR	N/A	1.453.037
NET CURRENT ASSETS/NET CURRENT DEBTS	N/A	2.047.923
TOTAL ASSETS MINUS CURRENT DEBTS	N/A	2.486.135
DAT.I: AMOUNTS THAT MUST BE PAID DURING A PERIOD EXCEEDING ONE YEAR	N/A	N/A
TOTAL DEBTS	433.534	1.453.037
PROVISIONS	N/A	0
DEFERRED INCOME, OF WHICH:	0	0
- grants related to investments	N/A	N/A
deferred income	N/A	N/A
CAPITAL, of which:	220	220
subscribed and paid up capital	N/A	N/A
unpaid subscribed capital	N/A	N/A
assets and liabilities (public sector companies)	N/A	N/A
CAPITAL PREMIUM	N/A	N/A
REVALUATION RESERVES	N/A	N/A
RESERVES	N/A	N/A
Own shares	N/A	N/A
Earnings associated to own capital instruments	N/A	N/A
Losses associated to own capital instruments	N/A	N/A
PROFIT OR LOSS REPORTED Balance account C	N/A	N/A
PROFIT OR LOSS REPORTED Balance account D	N/A	N/A
PROFIT OR LOSS FINANCIAL YEAR Balance account C	N/A	N/A
PROFIT OR LOSS FINANCIAL YEAR Balance account D	N/A	N/A
Profit distribution	N/A	N/A

Name	31/12/2015 RON SHORT	31/12/2016 RON SHORT
SHAREHOLDERS’ EQUITY - TOTAL	247.716	2.486.135
Public patrimony	N/A	N/A
EQUITY - TOTAL	N/A	2.486.135
TOTAL LIABILITIES	681.250	3.939.172

Profit and Loss Account

Name	31/12/2015 RON SHORT	31/12/2016 RON SHORT
Net turnover	1.604.597	8.714.525
Own work sold	N/A	8.156.235
Income from the sale of goods	N/A	558.290
Income from interests made by leasing	N/A	N/A
Income from grants related to income corresponding to net turnover	N/A	N/A
——-Balance account C	N/A	N/A
Balance account D	N/A	N/A
Production made by the entity for its own purposes and capitalized	N/A	N/A
Other operating income	N/A	N/A
TOTAL OPERATING INCOME - TOTAL	N/A	9.276.415
Expenses on raw materials and consumables	N/A	2.729.275
Other expenses for supplies and materials	N/A	67.719
Other outsourced expenses (electricity and water)	N/A	25.681
Expenses on goods	N/A	456.117
Expenses on personnel, of which:	N/A	1.524.285
Salaries and benefits	N/A	1.239.321
Insurance and social security expenses	N/A	284.964
Adjustments of the value of tangible and intangible fixed assets	N/A	N/A
Expenses	N/A	N/A
Income	N/A	N/A
Adjustments of the value of current assets	N/A	N/A
Expenses	N/A	N/A
Income	N/A	N/A

Name	31/12/2015 RON SHORT	31/12/2016 RON SHORT
Other operating expenses	N/A	1.561.227
Expenses on third party services	N/A	1.548.361
Expenses on other taxes, duties and similar charges	N/A	N/A
Expenses on compensations, donations and assigned assets	N/A	N/A
Expenses with refinancing interest rates of leasing entities	N/A	N/A
Adjustments of provisions	N/A	N/A
Expenses	N/A	N/A
income	N/A	N/A
OPERATING EXPENSES - TOTAL	N/A	6.409.774
- Profit	N/A	2.866.641
- Loss	N/A	N/A
Income from participating interests, of which:	N/A	N/A
income obtained from subsidiaries	N/A	N/A
Income from other financial investments and loans which are part of intangible fixed assets, of which:	N/A	N/A
income obtained from subsidiaries	N/A	N/A
Income from interest rates, of which:	N/A	N/A
income obtained from subsidiaries	N/A	N/A
Other financial income	N/A	N/A
FINANCIAL INCOME - TOTAL	N/A	109.715
Value adjustments in respect of capital assets and investments as current assets	N/A	N/A
Expenses	N/A	N/A
income	N/A	N/A
Interest expenses	N/A	N/A
of which, expenses in respect of subsidiaries	N/A	N/A

Name	31/12/2015 RON SHORT	31/12/2016 RON SHORT
Other financial expenses	N/A	N/A
FINANCIAL EXPENSES - TOTAL	N/A	78.493
- Profit	N/A	31.222
- Loss	N/A	N/A
- Profit	N/A	N/A
- Loss	N/A	N/A
Extraordinary income	N/A	N/A
Extraordinary expenses	N/A	N/A
- Profit	N/A	N/A
- Loss	N/A	N/A
TOTAL INCOME	1.612.452	9.386.130
TOTAL EXPENSES	1.316.527	6.488.267
- Profit	295.925	2.897.863
- Loss	N/A	N/A
Income tax	N/A	N/A
Other taxes which are not recorded above	N/A	N/A
- Net profit	N/A	2.485.871
- Net loss	N/A	N/A
Net result	247.542	2.485.871

Additional Information

Name	31/12/2015 RON SHORT	31/12/2016 RON SHORT
Outstanding payments-total - TOTAL	N/A	0
Accounts payable outstanding - total, of which: - TOTAL	NA	0

Name	31/12/2015 RON SHORT	31/12/2016 RON SHORT
over 30 days - TOTAL	N/A	0
over 90 days - TOTAL	N/A	0
over 1 year - TOTAL	N/A	0
Outstanding payments to social security- total, of which: - TOTAL	N/A	0
contributions to social security payable by employers, employees and other assimilated entities - TOTAL	N/A	0
contributions to the social health insurance fund - TOTAL	N/A	0
contribution to the additional state pension system - TOTAL	N/A	0
contributions to the unemployment insurance fund - TOTAL	N/A	0
other social liabilities - TOTAL	N/A	0
Payments due to special funds and other funds - TOTAL	N/A	0
Payments due to other creditors - TOTAL	N/A	0
Taxes and fees unpaid to the public budget on the date due - TOTAL	N/A	0
Taxes and fees unpaid to the local budget on the date due - TOTAL	N/A	0
Bank credits which were not reimbursed on the date due - total, of which: - TOTAL	N/A	0
back payments after 30 days - TOTAL	N/A	0
back payments after 90 days - TOTAL	N/A	0
back payments after 1 year - TOTAL	N/A	0
Past due interest - TOTAL	N/A	0
Average number of employees	18	24

Specific Tangible Fixed Assets

Name	31/12/2015 RON SHORT	31/12/2016 RON SHORT
Lands	N/A	N/A
Buildings	N/A	N/A

Name	31/12/2015 RON SHORT	31/12/2016 RON SHORT
Technical installations and machines	N/A	N/A
Amortization	N/A	N/A

Financials Ratios

Name	31/12/2015	31/12/2016
Debt Ratio	0,64	0,37
Quick ratio		1,77
Current ratio		2,41
Return on sales ( ROS )		0,29
Return on assets ( ROA )		0,63
Return on equity ( ROE )		1,00
Operating margin, in (%)		0,33
Days supply in inventory	14,96	38,70
Days sales in receivables	86,09	40,33
Days purchase in payables		60,86
SALES TO TOTAL ASSETS	2,36	2,21
OPERATING RESULT /TOTAL ASSETS		0,73
CASH RATIO		1,11
Equity as % of total assets	36,36	63,11
Fixed assets as % of total assets	9,27	11,12
Receivables as % of current assets	61,23	27,50
Net working capital		879,65

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.47
UK Pound	1	INR 86.15
Euro	1	INR 75.92
RON	1	INR 16.38

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

INFORMATION DETAILS

Analysis Done by :	PRI
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)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.