MIRA INFORM REPORT

Report No. :	516792
Report Date :	23.06.2018

IDENTIFICATION DETAILS

Name :	HEXION VAD B.V.
Registered Office :	Seattleweg 17 building 4, 3195ND Pernis Rotterdam
Country :	Netherlands
Financials (as on) :	31.12.2016
Date of Incorporation :	04.05.2016
Com. Reg. No.:	65974875
Legal Form :	Private Limited Company
Line of Business :	· Manufacture of petrochemical products · Financial holding
No. of Employees :	71 [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 (31.12.2017)	Current Rating (01.04.2018)
Netherlands	A1	A1

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

NETHERLANDS - ECONOMIC OVERVIEW

The Netherlands, the sixth-largest economy in the European Union, plays an important role as a European transportation hub, with a consistently high trade surplus, stable industrial relations, and low unemployment. Industry focuses on food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs only 2% of the labor force but provides large surpluses for food-processing and underpins the country’s status as the world’s second largest agricultural exporter.

The Netherlands is part of the euro zone, and as such, its monetary policy is controlled by the European Central Bank. The Dutch financial sector is highly concentrated, with four commercial banks possessing over 80% of banking assets, and is four times the size of Dutch GDP.

In 2008, during the financial crisis, the government budget deficit hit 5.3% of GDP. Following a protracted recession from 2009 to 2013, during which unemployment doubled to 7.4% and household consumption contracted for four consecutive years, economic growth began inching forward in 2014. Since 2010, Prime Minister Mark RUTTE’s government has implemented significant austerity measures to improve public finances and has instituted broad structural reforms in key policy areas, including the labor market, the housing sector, the energy market, and the pension system. In 2017, the government budget returned to a surplus of 0.7% of GDP, with economic growth of 3.2%, and GDP per capita finally surpassed pre-crisis levels. The fiscal policy announced by the new government in the 2018-2021 coalition plans for increases in government consumption and public investment, fueling domestic demand and household consumption and investment. The new government’s policy also plans to increase demand for workers in the public and private sector, forecasting a further decline in the unemployment rate, which hit 4.8% in 2017.

Source : CIA

Company name

Name	Hexion VAD B.V.

Summary

Company name	Hexion VAD B.V.
Operative address	Seattleweg 17 building 4 3195ND Pernis Rotterdam Netherlands
Status	Active
Specification	This company can meet all its obligations.

Legal form	Private Limited Company
Registration number	KvK-nummer: 65974875
VAT-number	856340510

Year	2016
Fixed assets	22.934.000
Total receivables	51.698.000
Total equity	25.024.000
Short term liabilities	25.781.000
Net result	11.030.000
Working capital	48.721.000
Quick ratio	2,01

Contact information

Company name	Hexion VAD B.V.
Trade names	Hexion VAD B.V.
Operative address	Seattleweg 17 building 4 3195ND Pernis Rotterdam Netherlands
Correspondence address	Postbus 606 3190AN Hoogvliet Rotterdam Netherlands

Telephone number	0102954000
Fax number	0102954040

Registration

Registration number	KvK-nummer: 65974875
Branch number	000034642382
VAT-number	856340510
Status	Active
First registration company register	2016-05-06
Memorandum	2016-05-04
Establishment date	2016-05-04

Legal form	Private Limited Company
Last proposed admendment	2016-08-03
Issued placed capital	EUR 100
Paid up share capital	EUR 100

Activities

SBI	20141: Manufacture of petrochemical products 6420: Financial holding
Exporter	No
Importer	No

Goal	Het ontwikkelen, vervaardigen, verwerken, vervoeren en opslaan van, het drijven van handel ? commissiehandel en agenturen daaronder begrepen ? in chemische producten met inbegrip van Versatic Acid & Derivatives producten, alsmede houdster- en financieringsmaatschappij.

Relations

Shareholders	Hexion B.V. Seattleweg 17 building 4 3195ND Pernis Rotterdam Netherlands Registration number: 24294676 Percentage: 100%
Affiliates	Hexion Pernis Lease B.V. Seattleweg 17 GEBOUW4 3195ND PERNIS ROTTERDAM Netherlands Registration number: 64324028

Subsidiaries

Hexion Moerdijk Lease B.V. Seattleweg 17 GEBOUW4 3195ND PERNIS ROTTERDAM Netherlands Registration number: 64324389

Management

Active management

A.W.M. Mertens Arnoldus Wilhelmus Maria Netherlands Competence: Jointly authorized Function: Manager Starting date: 2016-05-04 Date of birth: 1963-04-02, Halsteren, NL Involved with the following companies: Hexion Pernis Lease B.V. Seattleweg 17 GEBOUW4 3195ND PERNIS ROTTERDAM Netherlands Registration number: 64324028 Function: Manager Starting date: 2015-10-09 Hexion Moerdijk Lease B.V. Seattleweg 17 GEBOUW4 3195ND PERNIS ROTTERDAM Netherlands Registration number: 64324389 Function: Manager Starting date: 2015-10-09 Resolution Research Nederland B.V. Vondelingenweg 601 3196KK VONDELINGENPLAAT RT Netherlands Registration number: 27182782 Function: Manager Starting date: 2012-08-01 Hexion B.V. Seattleweg 17 building 4 3195ND Pernis Rotterdam Netherlands Registration number: 24294676 Function: Manager Starting date: 2008-05-01 Hexion International Holdings B.V. Seattleweg 17 bld 4 3195ND PERNIS ROTTERDAM Netherlands Registration number: 50014293 Function: Manager Starting date: 2010-05-25 Hexion Holding B.V. Netherlands Registration number: 27182096 Function: Manager Starting date: 2008-05-01 Hexion International Coöperatief U.A. Netherlands Registration number: 69037132 Function: Manager Starting date: 2017-06-26 P.R. van Heel Paul Richard Netherlands Competence: Jointly authorized Function: Manager Starting date: 2016-05-04 Date of birth: 1964-05-18, Deventer, NL Involved with the following companies: Hexion B.V. Seattleweg 17 building 4 3195ND Pernis Rotterdam Netherlands Registration number: 24294676 Function: Manager Starting date: 2014-08-14 Hexion International Holdings B.V. Seattleweg 17 bld 4 3195ND PERNIS ROTTERDAM Netherlands Registration number: 50014293 Function: Manager Starting date: 2010-05-25 Hexion Holding B.V. Netherlands Registration number: 27182096 Function: Manager Starting date: 2009-10-01 Hexion International Coöperatief U.A. Netherlands Registration number: 69037132 Function: Manager Starting date: 2017-06-26 Hexion B.V. Seattleweg 17 building 4 3195ND Pernis Rotterdam Netherlands Registration number: 24294676 Function: Proxy Starting date: 2009-10-01 J. van Beek Jan Netherlands Competence: Jointly authorized Function: Manager Starting date: 2016-05-04 Date of birth: 1970-04-21, Ridderkerk, NL Involved with the following companies: Hexion B.V. Seattleweg 17 building 4 3195ND Pernis Rotterdam Netherlands Registration number: 24294676 Function: Proxy Starting date: 2014-08-05 H.E. Schweitzer Henricus Everardus Netherlands Competence: Jointly authorized Function: Manager Starting date: 2016-05-04 Date of birth: 1968-04-11, Dordrecht, NL G. Boerlage Gerardus Netherlands Competence: Limited authorization Function: Proxy Starting date: 2016-06-09 Date of birth: 1960-02-21, Rotterdam, NL Involved with the following companies: Hexion B.V. Seattleweg 17 building 4 3195ND Pernis Rotterdam Netherlands Registration number: 24294676 Function: Proxy Starting date: 2016-06-09 F.P.J. Hulsmann Franciscus Petrus Johannes Netherlands Competence: Limited authorization Function: Proxy Starting date: 2017-08-17 Date of birth: 1970-08-31, Haarlem, NL Involved with the following companies: Hexion B.V. Seattleweg 17 building 4 3195ND Pernis Rotterdam Netherlands Registration number: 24294676 Function: Proxy Starting date: 2006-12-04 A.L.G. van Buchem Antonius Leonardus Giovanni Netherlands Competence: Limited authorization Function: Proxy Starting date: 2016-07-05 Date of birth: 1962-04-27, 's-Hertogenbosch, NL Involved with the following companies: Mixed Hockey Club De Kikkers Fandango 19 2152SJ NIEUW-VENNEP Netherlands Registration number: 40594278 Function: Manager Starting date: 2013-09-26 Hexion UK Limited Chemiestraat 30 3197KB BOTLEK ROTTERDAM Netherlands Registration number: 24268967 Function: Proxy Starting date: 2012-11-28 Resolution Research Nederland B.V. Vondelingenweg 601 3196KK VONDELINGENPLAAT RT Netherlands Registration number: 27182782 Function: Proxy Starting date: 2012-11-16 Hexion B.V. Seattleweg 17 building 4 3195ND Pernis Rotterdam Netherlands Registration number: 24294676 Function: Proxy Starting date: 2012-11-16 L.K. Jones Lisa Kimes Netherlands Competence: Limited authorization Function: Proxy Starting date: 2016-05-17 Date of birth: 1964-12-24, Rockford, NL Involved with the following companies: Resolution Research Nederland B.V. Vondelingenweg 601 3196KK VONDELINGENPLAAT RT Netherlands Registration number: 27182782 Function: Proxy Starting date: 2016-05-17 D.J.L.Y. Vanaken David Jean-Marie Louis Yvon Netherlands Competence: Limited authorization Function: Proxy Starting date: 2016-09-06 Date of birth: 1974-08-28, Sint-Truiden, BE Involved with the following companies: Hexion B.V. Seattleweg 17 building 4 3195ND Pernis Rotterdam Netherlands Registration number: 24294676 Function: Proxy Starting date: 2015-12-14

Employees

Year	2018	2016
Annual		71
Chamber of Commerce	0	0

Payments

Description

Slow but correct

	Last quarter	Last year
Average payment period (days)	53	40
Average delay (days)	1	1
Payments within industry	Last quarter	Last year
Average payment period (days)	39	45
Average delay (days)	16	20

Quarter	Not overdue	1-30	31-60	61-90	91-120	121+
2018 Q1	52,00%	32,00%	6,00%	2,00%	2,00%	7,00%
2017 Q4	52,00%	32,00%	6,00%	2,00%	2,00%	7,00%
2017 Q3	58,00%	34,00%	5,00%	1,00%	1,00%	2,00%
2017 Q2	61,00%	34,00%	2,00%	1,00%	0,00%	1,00%
2017 Q1	51,00%	36,00%	4,00%	2,00%	1,00%	6,00%

The above data is an indication of the average payment behaviour of the client. the payment experieneces can be affected by disputes, payment arrangements, etc.

Key figures

Year	2016
Quick ratio	2,01
Current ratio	2,89
Working capital/ balance total	0,50
Equity / balance total	0,26
Equity / Fixed assets	1,09
Equity / liabilities	0,35
Balance total / liabilities	1,35
Working capital	48.721.000
Equity	25.024.000
Return on total assets (ROA)	15,09
Return on equity (ROE)	58,77
Gross profit margin	24,16
Net profit margin	16,81
Average collection ratio	2,55
Average payment ratio	1,27
Equity turnover ratio	2,62
Total assets turnover ratio	0,67
Fixed assets turnover ratio	2,86
Inventory conversion ratio	2,88
Turnover	65.616.000
Gross margin	23.554.000
Operating result	15.851.000
Net result after taxes	11.030.000
EBIT	15.851.000

Summary

The 2016 financial result structure is a postive working captial of 48.721.000 euro, which is in agreement with 50 % of the total assets of the company. The current ratio of the company in 2016 was 2.89. A company with a current ratio between 1.5 and 3.0 generally indicates good short-term financial strength. The quick ratio in 2016 of the company was 2.01. A company with a Quick Ratio of more than 1 can currently pay back its current liabilities.

Financial statement

Last annual account	2016
Remark annual account	The company is obliged to file its financial statements.
Type of annual account	Corporate
Annual account	Hexion VAD B.V. Seattleweg 17 building 4 3195ND Pernis Rotterdam Netherlands Registration number: 65974875

Balance

Year	2016
End date	2016-12-31
Type of annual account	Corporate
Tangible fixed assets	22.934.000
Fixed assets	22.934.000
Total stock	22.804.000
Total receivables	51.698.000
Current assets	74.502.000
Total assets	97.436.000
Share premium reserve	13.994.000
Non-distributable profit	11.030.000
Total reserves	25.024.000
Total equity	25.024.000
Provisions	272.000
Long term interest yielding debt	46.359.000
Long term liabilities	46.359.000
Short term liabilities	25.781.000
Total short and long term liabilities	72.412.000
Total liabilities	97.436.000

Summary

In 2016 the assets of the company were 23.54 % composed of fixed assets and 76.46 % by current assets. The assets are being financed by an equity of 25.68 %, and total debt of 74.32 %.

Profit and loss

Year	2016
Revenues	65.616.000
Net turnover	65.616.000
Gross margin	23.554.000
Sales	7.703.000
Operating expenses	49.765.000
Operating result	15.851.000
Financial result	-1.144.000
Result on ordinary operations before taxes	14.707.000
Taxation on the result of ordinary activities	3.677.000
Result of ordinary activities after taxes	11.030.000
Net result	11.030.000

Summary

The company's Financial Profitability has been neutrally affected by the financial activities in comparison to the EBITs behaviour. The result of these variations is the unchanged profitability of the analysed period, remaining unchanged at 58.77 in the year 2016.

Analysis

Branch (SBI)	Manufacture of petrochemical products (SBI code 20141)
Region	Groot Rotterdam
Summary	In the Netherlands 1699 of the companies are registered with the SBI code 20141 In the region Groot Rotterdam 116 of the companies are registered with the SBI code 20141 In the Netherlands 29 of the bankrupcties are published within this sector The risk of this specific sector in the Netherlands is normal The risk of this specific sector in the region Groot Rotterdam is normal

Year	2016	Company	Company
Equity	479.633	25.024.000
Working capital	197.836	48.721.000
Balance total	1.261.783	97.436.000
Quick ratio	1,17	2,01
Current ratio	1,31	2,89
Equity / balance total	0,49	0,26
Turnover	39.886.652	65.616.000
Net result	1.648.615	11.030.000

Publications

Deposits	18-08-2017: De jaarrekening over 2016 is gepubliceerd.
Functions	28-08-2017: Per 17-08-2017 is gevolmachtigde Franciscus Petrus Johannes Hulsmann in functie getreden. 08-02-2017: Per 06-09-2016 is gevolmachtigde David Jean-Marie Louis Yvon Vanaken in functie getreden. 30-09-2016: Per 05-07-2016 is gevolmachtigde Antonius Leonardus Giovanni van Buchem in functie getreden. 28-09-2016: Per 17-05-2016 is gevolmachtigde Lisa Kimes Jones in functie getreden. 08-09-2016: Per 09-06-2016 is gevolmachtigde Gerardus Boerlage in functie getreden. 09-05-2016: Per 04-05-2016 is bestuurder Paul Richard van Heel in functie getreden. 09-05-2016: Per 04-05-2016 is bestuurder Arnoldus Wilhelmus Maria Mertens in functie getreden. 09-05-2016: Per 04-05-2016 is bestuurder Henricus Everardus Schweitzer in functie getreden. 09-05-2016: Per 04-05-2016 is bestuurder Jan van Beek in functie getreden.
Mergers	27-07-2016: Op 22-07-2016 splitsingsakte (afsplitsing) verleden. Splitsende rechtspersoon: Resolution Research Nederland B.V., 27182782 Verkrijgende rechtspersoon: Hexion VAD B.V., 65974875 ... Op 23-07-2016 splitsingsakte (afsplitsing) verleden. Splitsende rechtspersoon: Hexion B.V., 24294676 Verkrijgende rechtspersoon: Hexion VAD B.V., 65974875. 22-06-2016: Splitsingsvoorstel: Op 20-06-2016 voorstel tot afsplitsing gedeponeerd. Splitsende rechtspersoon: Hexion B.V., 24294676 Verkrijgende rechtspersoon: Hexion VAD B.V., 65974875 ... Splitsingsvoorstel: Op 20-06-2016 voorstel tot afsplitsing gedeponeerd. Splitsende rechtspersoon: Resolution Research Nederland B.V., 27182782 Verkrijgende rechtspersoon: Hexion VAD B.V., 65974875.
Other	17-03-2017: Datum deponering: 15-03-2017 Boekjaar: 2016 Soort deponering: Geconsolideerde jaarrekening (art. 408 BW2). 05-08-2016: Per 3-8-2016 statuten gewijzigd. 21-06-2016: Gestort kapitaal gewijzigd in EUR 100,00.

Company structure

Relations	9
Company	Registration number
Hexion International Coöperatief U.A.	69037132
| - - Hexion International Holdings B.V. (PERNIS ROTTERDAM)	50014293
| - - | - - Hexion Holding B.V.	27182096
| - - | - - | - - Hexion B.V. (Pernis Rotterdam)	24294676
| - - | - - | - - | - - Hexion Pernis Lease B.V. (PERNIS ROTTERDAM)	64324028
| - - | - - | - - | - - Hexion VAD B.V. (Pernis Rotterdam)	65974875
| - - | - - | - - | - - | - - Hexion Moerdijk Lease B.V. (PERNIS ROTTERDAM)	64324389
| - - | - - | - - Hexion Europe B.V. (PERNIS ROTTERDAM)	24363954
| - - | - - | - - Resolution Research Nederland B.V. (VONDELINGENPLAAT RT)	27182782

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.77
UK Pound	1	INR 89.96
Euro	1	INR 78.86
EURO	1	INR 79.18

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

INFORMATION DETAILS

Analysis Done by :	VAR
Report Prepared by :	SDA

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.