MIRA INFORM REPORT

Report No. :	486324
Report Date :	13.01.2018

IDENTIFICATION DETAILS

Name :	RAIT JSC
Registered Office :	Unipiha Tee 20, Reola Village, Ulenurme Parish, Tartu County, 61707
Country :	Estonia
Financials (as on) :	31.12.2016
Date of Incorporation :	14.05.1997
Com. Reg. No.:	10152828
Legal Form :	AS (Public Limited Company by Estonian Commercial Law)
Line of Business :	· Sawmilling and planing of wood; impregnation of wood · Manufacture of other products of wood · Manufacture of other products of wood; manufacture of articles of cork, straw and plaiting materials · Wholesale of wood, construction materials and sanitary equipment
No. of Employees :	147

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)
Estonia	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

ESTONIA - ECONOMIC OVERVIEW

Estonia, a member of the EU since 2004 and the euro zone since 2011, has a modern market-based economy and one of the higher per capita income levels in Central Europe and the Baltic region, but its economy is highly dependent on trade, leaving it vulnerable to external shocks. Estonia's successive governments have pursued a free market, pro-business economic agenda, and sound fiscal policies that have resulted in balanced budgets and low public debt.

The economy benefits from strong electronics and telecommunications sectors and strong trade ties with Finland, Sweden, Germany, and Russia. After two years of robust recovery in 2011 and 2012, the Estonian economy faltered in 2013 with only 1.6% GDP growth, mainly due to a continuing recession in much of the EU. GDP growth in 2014 picked up to 2.9% but dropped below 2% in 2015-16 due to lower demand in key Scandinavian and Russian export markets. In 2016, the government implemented modest increases in fiscal spending, which may contribute to GDP growth in 2017.

Estonia is challenged by a shortage of labor, both skilled and unskilled, although the government has amended its immigration law to allow easier hiring of highly qualified foreign workers.

Source : CIA

Identification

Full Name

:

aktsiaselts RAIT

Name in English

:

RAIT jsc

Name in national language

:

aktsiaselts RAIT

Office Address

:

Unipiha tee 20, Reola village, Ulenurme parish, Tartu county, 61707, Estonia

Legal Address

:

Unipiha tee 20, Reola village, Ulenurme parish, Tartu county, 61707, Estonia

Contacts

:

-	Phone	:	(+372) 7300420
-	Fax	:	(+372) 7300421
-	E-mail	:	info@raitwood.ee
-	WWW	:	www.raitwood.ee

SUMMARY

Legal Form : AS (Public limited company by Estonian Commercial Law)

Incorporation : 1991

Staff : 147

Litigation events : yes Remarks on payments : No Complaints

Sales :	28 630 143.00 EUR ( for 12 months, ended 31.12.2016 )
	26 412 685.00 EUR ( for 12 months, ended 31.12.2015 )

Incorporation

:

1991

Registration Data

Date of registration

:

14.05.1997

Registration number

:

10152828

Registr. authority

:

Registration department of the County Court (Estonia)

VAT number

:

EE100014860

Registr. authority

:

Estonian Tax and Customs Board (Estonia)

Legal Form

:

AS (Public limited company by Estonian Commercial Law)

since 21.04.1991

Share Capital

:

1 110 200 EUR (registered)

since n/a

Shareholders

:

-	RAITWOOD KAPITAL OU (Estonia)				84.44 %
		reg. number	:	10666792
-	other shareholders				15.56 %
	/registration file doesn't consist detailed information/

Actual beneficiaries: - Mr Ivar Dembovski Share: 29.82% - Mr Tonu Tsernant Share: 26.09% - Mr Kuldar Veere Share: 18.64%

Board / Executives

Board

Supervisory Board Member

:

Mrs Anneli Parisalu-Dembovski (Estonia)

Supervisory Board Member

:

Mr Kuldar Veere (Estonia)

Supervisory Board Member

:

Mr Tonu Tsernant (Estonia)

Executives

Board Member

:

Mr Ivar Dembovski (Estonia)

Board Member

:

Mr Rainar Laes (Estonia)

Authorised signature

:

Mr Ivar Dembovski

Mr Rainar Laes

Changes in Registration Data

- 09.06.2017

:

managers, authorised signature

- 08.06.2017

:

shareholders

- 06.06.2017

:

shareholders

- 22.01.2016

:

managers, authorised signature

- 20.06.2015

:

managers

- 31.05.2013

:

shareholders

- 27.06.2012

:

managers, authorised signature

- 01.10.2011

:

shareholders

- 01.04.2010

:

shareholders

- 16.11.2009

:

managers, authorised signature

- 18.02.2009

:

managers, authorised signature

/Changes in Registration data are mentioned for the last 10 years./

Activities

:

-	242	Sawmills and Planing Mills
		(2010 / NACE_1.1: Sawmilling and planing of wood; impregnation of wood)
		(1610 / NACE_2: Sawmilling and planing of wood)
-	2431	Wood Doors/Door Parts/Trim
		(2051 / NACE_1.1: Manufacture of other products of wood)
		(1629 / NACE_2: Manufacture of other products of wood; manufacture of articles of cork, straw and plaiting materials)
-	503	Lumber and Construction Materials
		(5153 / NACE_1.1: Wholesale of wood, construction materials and sanitary equipment)
		(4673 / NACE_2: Wholesale of wood, construction materials and sanitary equipment)

According to company's website data: The company manufactures profiled boards for the finishing of different surfaces in the living space around us such as floors, ceilings, interior and exterior walls, terraces. We also produce fences and various garden items.

Staff employed

:

147

( the data as of 30.09.2017 )

Subsidiaries and Participation

:

-	Viiratsi Saeveski (Estonia)				share n/a
		reg. number	:	10868739
		address	:	Vana-Voidu, Viiratsi borough, Viiratsi parish, Viljandi county, 70101, Estonia

Bankers

:

n/a

Litigation

:

yes

The subject company was/is being involved as a claimant, co-claimant and defendant into several of legal proceedings in the period from 04.05.2010 up to 07.09.2016 (last court sitting). There are no bankruptcy/insolvency listed in the subject name in the official sources.

Remarks on payment

:

No Complaints

Debts to Estonian government: By the Tax Authorities there are no tax debts registered on the subject. Other debts: No current records on defaulted payments are reported by local debt collection companies. IGK databases: No current records are reported on the company required.

Business mortgages

- 03.05.2017

:

Commercial pledge				5 000 000 EEK
	pledgee	:	AS Sampo Pank (Estonia) reg. number: 10040839

( the data as of 03.05.2017 )

- 20.06.2007

:

Commercial pledge				12 000 000 EEK
	pledgee	:	AS Sampo Pank (Estonia) reg. number: 10040839

( the data as of 20.06.2007 )

- 22.05.2005

:

Commercial pledge				6 000 000 EEK
	pledgee	:	AS Sampo Pank (Estonia) reg. number: 10040839

( the data as of 22.05.2005 )

- 26.07.1999

:

Commercial pledge				2 000 000 EEK
	pledgee	:	AS Sampo Pank (Estonia) reg. number: 10040839

( the data as of 26.07.1999 )

- 10.06.1998

:

Commercial pledge				1 000 000 EEK
	pledgee	:	AS Sampo Pank (Estonia) reg. number: 10040839

( the data as of 10.06.1998 )

- 14.05.1997

:

Commercial pledge				2 000 000 EEK
	pledgee	:	AS Sampo Pank (Estonia) reg. number: 10040839

( the data as of 14.05.1997 )

Financial

Financial Elements

:

According to the information from Customs Department: The turnover: 11 183 318.76 EUR (period 01/06/2017 - 31/08/2017)

Period, months	12	12	12
Ended	31.12.2016	31.12.2015	31.12.2014
Currency	EUR	EUR	EUR
===== BALANCE SHEET ====================
--- A S S E T S --------------------
NON-CURRENT ASSETS
- Intangible assets	137 589.00	142 843.00	98 111.00
- Fixed assets	6 019 778.00	4 856 435.00	4 668 657.00
- Investments in tangible assets	40 650.00	71 250.00
- Financial assets	356 301.00	356 301.00	356 301.00
- Other non-current assets
Non-current assets total	6 554 318.00	5 426 829.00	5 123 069.00
CURRENT ASSETS
- Stock	6 292 066.00	6 030 715.00	4 574 665.00
- Debtors	2 617 220.00	2 406 041.00	2 266 439.00
- Other receivables
- Short-term financial investments
- Cash	56 132.00	182 376.00	1 028 815.00
- Other current assets
Current assets total	8 965 418.00	8 619 132.00	7 869 919.00
Assets total	15 519 736.00	14 045 961.00	12 992 988.00
--- EQUITY AND LIABILITIES ---------
CAPITAL AND RESERVES
- Share capital	1 110 200.00	1 110 200.00	1 110 200.00
- Additional capital
- Other capital
- Reserve capital	111 020.00	111 020.00	111 020.00
- Retained earnings (Non-covered loss)	7 490 977.00	6 764 214.00	6 441 319.00
Capital and reserves total	8 712 197.00	7 985 434.00	7 662 539.00
Provisions
LONG-TERM LIABILITIES
- Loans and credits	977 692.00	1 538 777.00	2 669 112.00
- long-term amounts owed to banks
- Other long-term liabilities
Long-term liabilities total	977 692.00	1 538 777.00	2 669 112.00
SHORT-TERM LIABILITIES
- Loans and credits	2 842 573.00	2 616 426.00	1 033 554.00
- short-term amounts owed to banks
- Creditors	2 987 274.00	1 905 324.00	1 627 783.00
- trade debts
- accrued payroll
- tax liabilities
- other creditors	2 987 274.00	1 905 324.00	1 627 783.00
- advances received
- Dividends in arrears
- Accrued income, deferred charges
- Other short-term liabilities
Short-term liabilities total	5 829 847.00	4 521 750.00	2 661 337.00
Liabilities total	6 807 539.00	6 060 527.00	5 330 449.00
Equity and liabilities total	15 519 736.00	14 045 961.00	12 992 988.00
===== PROFIT AND LOSS ACCOUNT ==========
ORDINARY ACTIVITY INCOME AND CHARGES
Net sales	28 630 143.00	26 412 685.00	25 450 468.00
Cost of goods sold	22 801 897.00	21 319 215.00	17 856 576.00
Gross profit
Distribution costs	3 129 166.00	2 997 821.00	2 832 147.00
Administrative and management costs
Profit on sales
OPERATING INCOME AND CHARGES
Interest receivable
Interest payable
Income from participating interests
Other operating income	337 627.00	787 603.00	366 235.00
Other operating charges	1 897 531.00	1 785 222.00	4 061 620.00
Operating profit
INVESTMENT INCOME AND CHARGES
Investment income less charges	307 664.00	665 017.00	663 766.00
Profit before taxation	1 446 840.00	1 763 047.00	1 730 126.00
Income-tax and other similar payments
Profit (loss) from ordinary activity
Extraordinary income less charges
Net profit	1 446 840.00	1 763 047.00	1 730 126.00
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	5.05	6.68	6.80
Profit before taxation / Net sales
Operating margin of profit, %
Operating profit / Net sales
Return on investment, %	16.61	22.08	22.58
Profit before taxation / Equity
Current assets turnover	3.19	3.06	3.23
Net sales / Current assets
Working capital	3 135 571.00	4 097 382.00	5 208 582.00
Current assets - Short-term liabilities
Leverage	0.56	0.57	0.59
Equity / Total assets
Current ratio	1.54	1.91	2.96
Current assets / Short-term liabilities
Quick ratio	0.46	0.57	1.24
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	0.78	0.76	0.70
Total liabilities / Equity
Debtor days	33.37	33.25	32.50
Debtors / Net sales *365
Creditor days
Trade debts / Cost of goods sold *365

Taxes paid: In Q3 2017, the company paid 309 760.41 EUR as state taxes 421 819.79 EUR as payroll taxes

FINAL COMMENTS

We contacted Mr Priit, The Director of Finances, by the ph.number +7300441. However he refused to provide any information about the company to the third parties.

Registration History

- 21.04.1991

:

Registration number	:	24014366
Registr. authority	:	State Register (Estonia)

( the data as of 21.04.1991, cancelled since 14.05.1997 )

APPENDIX A

Financial Statements

Period, months	12	12	12
Ended	31.12.2016	31.12.2015	31.12.2014
Currency	EUR	EUR	EUR
BALANCE SHEET
A S S E T S
CURRENT ASSETS
1. CASH IN BANK AND IN HAND	56 132.00	182 376.00	1 028 815.00
2. SHORT-TERM FINANCIAL INVESTMENTS
3. RECEIVABLES AND PREPAYMENTS
3.1 Customer receivables
3.2. Prepaid and deferred taxes
3.3. Other short-term receivables	2 617 220.00	2 406 041.00	2 266 439.00
3.4. Prepaid services
3. RECEIVABLES AND PREPAYMENTS TOTAL	2 617 220.00	2 406 041.00	2 266 439.00
4. INVENTORIES
4.1 Raw materials
4.2 Work in progress
4.3 Finished goods
4.4 Goods for resale
4.5 Prepayments for inventories	6 292 066.00	6 030 715.00	4 574 665.00
4. INVENTORIES TOTAL	6 292 066.00	6 030 715.00	4 574 665.00
5. BIOLOGICAL ASSETS
6. NON-CURRENT ASSETS HELD FOR SALE
TOTAL CURRENT ASSETS	8 965 418.00	8 619 132.00	7 869 919.00
NON-CURRENT ASSETS
7. LONG-TERM FINANCIAL INVESTMENTS
7.1 Shares in subsidiary companies
7.2 Shares in associates
7.3 Other shares and securities	356 301.00	356 301.00	356 301.00
7.4 Long-term accounts receivable
7. LONG-TERM FINANCIAL INVESTMENTS TOTAL	356 301.00	356 301.00	356 301.00
8. INVESTMENT PROPERTIES	40 650.00	71 250.00
9. TANGIBLE ASSETS
9.1. Land
9.2. Buildings
9.3. Machinery and equipment
9.4. Other tangible assets	6 019 778.00	4 856 435.00	4 668 657.00
9.5. Construction-in-progress and prepayments for
tangible assets
9.6. Accumulated depreciation (-)
9. TANGIBLE ASSETS TOTAL	6 019 778.00	4 856 435.00	4 668 657.00
10. BIOLOGICAL ASSETS
11. INTANGIBLE ASSETS
11.1. Goodwill
11.2. Development costs
11.3. Other intangible assets	137 589.00	142 843.00	98 111.00
11.4. Prepayments for intangible assets
11. INTANGIBLE ASSETS TOTAL	137 589.00	142 843.00	98 111.00
NON-CURRENT ASSETS TOTAL	6 554 318.00	5 426 829.00	5 123 069.00
TOTAL ASSETS	15 519 736.00	14 045 961.00	12 992 988.00
SHORT-TERM LIABILITIES
12. LOAN LIABILITIES
12.1. Short-term loans and notes
12.2. Current portion of long-term debt
12.3. Convertible debts	2 842 573.00	2 616 426.00	1 033 554.00
12. LOAN LIABILITIES TOTAL	2 842 573.00	2 616 426.00	1 033 554.00
13. DEBTS AND PAYABLES
13.1. Supplier payables
13.2. Employee-related liabilities
13.3. Taxes payable
13.4. Other debts	2 987 274.00	1 905 324.00	1 627 783.00
13.5. Prepayments received
13. DEBTS AND PAYABLES TOTAL	2 987 274.00	1 905 324.00	1 627 783.00
14. SHORT-TERM PROVISIONS
15. TARGETED FINANCING
SHORT-TERM LIABILITIES TOTAL	5 829 847.00	4 521 750.00	2 661 337.00
LONG-TERM LIABILITIES
16. LONG-TERM LOAN LIABILITIES
16.1. Loans, notes and financial lease payables	977 692.00	1 538 777.00	2 669 112.00
16.2. Covertible debts
16. LONG-TERM LOAN LIABILITIES TOTAL	977 692.00	1 538 777.00	2 669 112.00
17. OTHER LONG-TERM DEBTS
18. LONG-TERM PROVISIONS
19. TARGETED FINANCING
LONG-TERM LIABILITIES TOTAL	977 692.00	1 538 777.00	2 669 112.00
LIABILITIES TOTAL	6 807 539.00	6 060 527.00	5 330 449.00
20. SHARE CAPITAL	1 110 200.00	1 110 200.00	1 110 200.00
20.a. OTHER CAPITAL
21. UNREGISTERED SHARE CAPITAL
22. SHARE PREMIUM
23. LESS TREASURY SHARES
24. Statutory legal reserve	111 020.00	111 020.00	111 020.00
25. Other reserves
26. RETAINED EARNINGS	6 044 137.00	5 001 167.00	4 711 193.00
27. NET PROFIT/ LOSS FOR FINANCIAL YEAR	1 446 840.00	1 763 047.00	1 730 126.00
EQUITY TOTAL	8 712 197.00	7 985 434.00	7 662 539.00
EQUITY AND LIABILITIES TOTAL	15 519 736.00	14 045 961.00	12 992 988.00
INCOME STATEMENT format 1 or 2
1. NET SALES format 1	28 630 143.00	26 412 685.00	25 450 468.00
2. Other income	29 115.00	25 470.00	17 082.00
3. Change in inventories of agricultural goods
4. Profit (loss) on biological inventories
5. Changes in inventories of finished goods and work in	308 512.00	762 133.00	349 153.00
progress
6. Work performed by the undertaking for its own purpose	-20 577.00
and capital
7. Goods, raw materials and services	22 801 897.00	21 319 215.00	17 856 576.00
8. Other operating expenses	905 380.00	884 259.00	3 231 133.00
9. STAFF COSTS
9.a. Wages and salaries
9.b. Social security costs
9.c. Pension expenses
9.d. Other employee expenses	3 129 166.00	2 997 821.00	2 832 147.00
9. STAFF COSTS TOTAL	3 129 166.00	2 997 821.00	2 832 147.00
10. Depreciation and impairment of fixed assets	970 871.00	875 625.00	796 066.00
11. Other expenses	41 857.00	25 338.00	34 421.00
1. NET SALES format 2
2. Change in inventories of agricultural goods
3. Profit (loss) on biological inventories
4. Cost of sales
GROSS PROFIT (LOSS)
5. Marketing expenses
6. Administration and general expenses
7. Other income
8. Other expenses
OPERATING PROFIT (LOSS)	1 139 176.00	1 098 030.00	1 066 360.00
12. FINANCIAL INCOME AND EXPENSES
12.a. Financial income and expenses from shares in subsidiaries
12.b. Financial income and expenses from shares in associates
12.c. Financial income and expenses from long-term	360 000.00	720 000.00	720 000.00
financial investments
12.d. Interest expense	52 360.00	55 019.00	65 786.00
12.e. Profit (loss) on converting of foreign currencies
12.f. Other financial income and expenses	24.00	36.00	9 552.00
12. TOTAL FINANCIAL INCOME AND EXPENSES	307 664.00	665 017.00	663 766.00
PROFIT(LOSS) ON ORDINARY ACTIVITIES	1 446 840.00	1 763 047.00	1 730 126.00
13. Income tax expense
NET PROFIT (LOSS) FOR FINANCIAL YEAR	1 446 840.00	1 763 047.00	1 730 126.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.52
UK Pound	1	INR 86.05
Euro	1	INR 76.53
Euro	1	INR 3.81

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)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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