MIRA INFORM REPORT

Report No. :	484237
Report Date :	10.01.2018

IDENTIFICATION DETAILS

Name :	LOBBI BALGARIYA EOOD
Registered Office :	Ul. 5007 No. 1 1528 Sofia
Country :	Bulgaria
Financials (as on) :	31.12.2016
Date of Incorporation :	2008
Legal Form :	Sole Proprietor Limited Liability Company
Line of Business :	Supply of raw materials and equipment for the food production industry, animal feed industry and the pharmaceutical industry.
No. of Employees :	16

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 (30.06.2017)	Current Rating (30.09.2017)
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 one of 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, low international energy prices have contributed to Bulgaria’s economic growth and helped to ease inflation; but, in 2017, rising international gas prices could dampen Bulgaria’s growth prospects.

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. 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: LOBBI BALGARIYA EOOD

International name: LOBBY BULGARIA Ltd.

Registered address:

ul. 5007 No. 1
1528 Sofia
Bulgaria
Telephone: +359-885-049429, +359-885-290040, +359-2-8734958
Fax: +359-2-8734958, +359-888-111676
E-Mail: office@lobbi.bg
Internet: http://www.lobbi.bg

ESTABLISHMENT & REGISTRATION:

Established: 2008
Registered at Bulgarian Trade Register
Court number 200237987
Bulstat/VAT number: 200237987

Status of the company:

Active

LEGAL FORM:

Sole Proprietor Limited Liability Company (EOOD)

REGISTERED CAPITAL:

BGN 5 000.00

BANKERS:

Cenrtral Cooperative Bank

SHAREHOLDERS/MANAGEMENT

SHAREHOLDERS:

ALEKSANDAR KAMENOV YOSIFOV	100%
ID ID 8005203242

MANAGEMENT:

Name	ID	Function	Nationality
ALEKSANDAR KAMENOV YOSIFOV	8005203242	Manager	Bulgaria

RELATED COMPANIES:

Company ID	Company Name
175252824	LOBBI

BUSINESS ACTIVITY

BUSINESS OPERATION:

NACE 1.1: 51.90 Other wholesale

Activity:

Supply of of raw materials and equipment for the food production industry, animal feed industry and the pharmaceutical industry.

NUMBER OF EMPLOYEES:

As at date	Value
31.12.2008	2
31.12.2010	4
09.03.2011	4
31.12.2011	5
31.12.2012	6
31.12.2013	8
31.12.2014	9
31.12.2015	11
31.12.2016	13
Latest stand	16

EXPORT:

None

IMPORT:

India, Europe, China, Indonesia, Malaysia, USA.

REAL ESTATE:

Own premises.

FINANCIAL DATA

TURNOVER:

Year	Currency	Value
2008	BGN	344 000.00
2009	BGN	672 000.00
2010	BGN	1 019 000.00
2011	BGN	1 407 000.00
2012	BGN	1 634 000.00
2013	BGN	1 729 000.00
2014	BGN	2 007 000.00
2015	BGN	2 685 000.00
2016	BGN	2 843 000.00

MODES OF PAYMENT:

Payments are made within agreed terms.

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	0.76	0.76	0.68	0.60
Quick ratio	0.33	0.21	0.38	0.44
Current ratio	1.79	1.49	2.12	1.92
Days purchase in payables	92.30	116.32	68.87	69.87
Operating margin in %	3.65	5.43	6.29	6.13
Cash ratio (acid ratio)	0.13	0.05	0.11	0.16
Return on sales ROS in %	3.19	4.97	5.84	5.53
Return on assets ROA in %	4.82	6.42	9.41	9.28
Return on equity ROE in %	20.22	26.68	29.60	22.95
Days supply in inventory	134.48	147.98	119.82	103.98
Days sales in receivables	17.96	19.36	18.60	19.40

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	1	1	1	1
B. FIXED ASSETS
I. Fixed Intangible Assets:
R&D Products
Concessions, patents, trade-marks etc	18	10	2	9
Goodwill
Intangible fixed assets under construction		1	2
thereof advances	1	1	2
Total I	19	11	4	9
II. Fixed Tangible Assets
Land and Buildings	247	388	375	422
thereof Land	79	79	79	79
thereof Buildings	168	309	296	343
Machines, Vehicles		15	18	30
Equipment	69	155	160	143
Tangible fixed assets under construction			8	16
thereof advances			8	16
Total II.	316	558	561	611
III. Fixed Financial Assets
Shares in group companies
Loans granted to group companies
Shares in joint ventures
Long term investments
Other loans
Bought back own shares
Total III.
IV. Deferred Taxes		1		1
B. FIXED ASSETS TOTAL	335	570	565	621
C. CURRENT ASSETS
I. Inventories
Raw Materials	1	1	1
Work in progress
thereof young animals
Trading goods	643	817	888	820
thereof production
thereof goods for sale	643	817	888	820
Advances
Total I.	644	818	889	820
II. Receivables
Receivables from customers	83	104	136	151
thereof more than 1 year
Receivables from group companies
thereof more than 1 year
Receivables from joint ventures
thereof more than 1 year
Other receivables	3	3	2	2
thereof more than 1 year		2	2	2
Total II.	86	107	138	153
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		31	54	87
thereof cash	1	1	13	6
Thereof cash in foreign currency (equivalent)
thereof current accounts	58	30	41	81
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.	59	31	54	87
C. CURRENT ASSETS TOTAL	789	956	1081	1060
D. Deferred expenses	17	16	11	10
TOTAL ASSETS	1142	1543	1658	1692
A. OWNERS EQUITY
I. Share capital	5	5	5	5
II. Issue premium
III. Revaluation reserves
thereof revaluation reserves of financial instruments
IV. Reserves
legal reserves
reserve related to bought back own shares
reserve from company foundation
other reserves
Total IV.
V. Result from previous period
Undistributed profit	212	267	366	522
Uncovered loss
Total V.	212	267	366	522
VI. Current result profit (loss)	55	99	156	157
A. OWNERS EQUITY TOTAL	272	371	527	684
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	344	485	504	451
less than 1 year	98	147	49	49
more than 1 year	246	338	455	402
Advances received	2	30
less than 1 year	2	30
more than 1 year
Payables to suppliers	286	395	400	446
less than 1 year	286	395	400	446
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
less than 1 year
more than 1 year
Other liabilities	238	262	227	111
less than 1 year	56	71	62	56
more than 1 year	182	191	165	55
thereof to personnel	6	7	8	13
less than 1 year	6	7	8	13
more than 1 year
thereof to social insurance	2	2	3	4
less than 1 year	2	2	3	4
more than 1 year
thereof for taxes	26	34	25	27
less than 1 year	26	34	25	27
more than 1 year
C. LIABILITIES TOTAL	870	1172	1131	1008
less than 1 year	442	643	511	551
more than 1 year	428	529	620	457
D. FINANCING AND DEFERRED INCOME
thereof
Financing
Deferred income
TOTAL EQUITY AND LIABILITIES	1142	1543	1658	1692

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	44	56	94	102
thereof for services	73	78	56	58
Personnel expenses	94	113	141	170
thereof wages	81	98	121	146
thereof social insurance	13	15	20	24
thereof pensions
Depreciation	31	55	84	84
thereof Depreciation of fixed assets	31	55	84	84
Other expenses	1405	1561	2099	2225
thereof Book value of sold assets (without production)		1556	2087	2213
I. OPERATION EXPENSES TOTAL	1647	1863	2474	2639
II. Financial expenditures
Depreciation of financial assets	3	5	6	2
thereof exchange rate losses	3	5	6	2
Paid interest	18	33	37	29
thereof interest to group companies
Thereof expenditures for securities operations
II. Financial expenditures Total	21	38	43	31
B. Profit on ordinary activity	63	108	168	174
III. Extraordinary expenses	1
thereof expenses on disasters and emergency expenses
C. Total expenses (I+II+III)	1669	1901	2517	2670
D. Accounting profit	62	110	174	174
IV. Taxation on profit	7	11	18	17
V. Other taxes
E. Net profit	55	99	156	157
Total expenses	1731	2011	2691	2844
A. REVENUES
I. OPERATING REVENUES
Net sales	1724	1990	2671	2839
Production
Goods	1716	1951	2621	2836
Services	8	39	50	3
Increase of production and work in progress
Expenses on acquisition of assets
Other revenues	5	17	14	4
thereof financing
I. TOTAL OPERATING REVENUES	1729	2007	2685	2843
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	2	2		1
thereof from interest from group companies
II FINANCIAL REVENUES TOTAL	2	2		1
TOTAL REVENUES FROM ORDINARY ACTIVITIES	1731	2009	2685	2844
LOSS
Extraordinary revenues		2	6
AFTER TAX LOSS
TOTAL REVENUES	1731	2011	2691	2844

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.47
UK Pound	1	INR 86.15
Euro	1	INR 75.92
BGN	1	INR 38.86

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

INFORMATION DETAILS

Analysis Done by :	VAR
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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