3decades

MIRA INFORM REPORT

Report No. :	516689
Report Date :	26.06.2018

IDENTIFICATION DETAILS

Name :	KENTIA S.A.

Registered Office :	17 Lefkados, Moschato, 18346, Attiki

Country :	Greece

Financials (as on) :	June, 2017

Date of Incorporation :	17.12.1993

Com. Reg. No.:	30049/002/Β/93/373

Legal Form :	SA - Societe Anonyme

Line of Business :	Wholesale of textiles Manufacture of made-up textile articles, except apparel Retail sale of textiles in specialised stores Retail sale of furniture, lighting equipment and other household articles in specialised stores

No. of Employees :	54

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory

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)

Greece

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

GREECE - ECONOMIC OVERVIEW

Greece has a capitalist economy with a public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 18% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP.

The Greek economy averaged growth of about 4% per year between 2003 and 2007, but the economy went into recession in 2009 as a result of the world financial crisis, tightening credit conditions, and Athens' failure to address a growing budget deficit. By 2013, the economy had contracted 26%, compared with the pre-crisis level of 2007. Greece met the EU's Growth and Stability Pact budget deficit criterion of no more than 3% of GDP in 2007-08, but violated it in 2009, when the deficit reached 15% of GDP. Deteriorating public finances, inaccurate and misreported statistics, and consistent underperformance on reforms prompted major credit rating agencies to downgrade Greece's international debt rating in late 2009 and led the country into a financial crisis. Under intense pressure from the EU and international market participants, the government accepted a bailout program that called on Athens to cut government spending, decrease tax evasion, overhaul the civil-service, health-care, and pension systems, and reform the labor and product markets. Austerity measures reduced the deficit to 1.3% in 2017. Successive Greek governments, however, failed to push through many of the most unpopular reforms in the face of widespread political opposition, including from the country's powerful labor unions and the general public.

In April 2010, a leading credit agency assigned Greek debt its lowest possible credit rating, and in May 2010, the IMF and euro-zone governments provided Greece emergency short- and medium-term loans worth $147 billion so that the country could make debt repayments to creditors. Greece, however, struggled to meet the targets set by the EU and the IMF, especially after Eurostat - the EU's statistical office - revised upward Greece's deficit and debt numbers for 2009 and 2010. European leaders and the IMF agreed in October 2011 to provide Athens a second bailout package of $169 billion. The second deal called for holders of Greek government bonds to write down a significant portion of their holdings to try to alleviate Greece’s government debt burden. However, Greek banks, saddled with a significant portion of sovereign debt, were adversely affected by the write down and $60 billion of the second bailout package was set aside to ensure the banking system was adequately capitalized.

In 2014, the Greek economy began to turn the corner on the recession. Greece achieved three significant milestones: balancing the budget - not including debt repayments; issuing government debt in financial markets for the first time since 2010; and generating 0.7% GDP growth — the first economic expansion since 2007.

Despite the nascent recovery, widespread discontent with austerity measures helped propel the far-left Coalition of the Radical Left (SYRIZA) party into government in national legislative elections in January 2015. Between January and July 2015, frustrations between the SYRIZA-led government and Greece’s EU and IMF creditors over the implementation of bailout measures and disbursement of funds led the Greek government to run up significant arrears to suppliers and Greek banks to rely on emergency lending, and also called into question Greece’s future in the euro zone. To stave off a collapse of the banking system, Greece imposed capital controls in June 2015 shortly before rattling international financial markets by becoming the first developed nation to miss a loan payment to the IMF. Unable to reach an agreement with creditors, Prime Minister Alexios TSIPRAS held a nationwide referendum on 5 July on whether to accept the terms of Greece’s bailout, campaigning for the ultimately successful “no” vote. The TSIPRAS government subsequently agreed, however, to a new $96 billion bailout in order to avert Greece’s exit from the monetary bloc. On 20 August, Greece signed its third bailout which allowed it to cover significant debt payments to its EU and IMF creditors and ensure the banking sector retained access to emergency liquidity. The TSIPRAS government — which retook office on 20 September after calling new elections in late August — successfully secured disbursal of two delayed tranches of bailout funds. Despite the economic turmoil, Greek GDP did not contract as sharply as feared, with official estimates of a -0.2% contraction in 2015, boosted in part by a strong tourist season.

In 2017, Greece saw improvements in GDP and unemployment. Unfinished economic reforms, a massive non-performing loan problem, and ongoing uncertainty regarding the political direction of the country hold the economy back. Some estimates put Greece’s black market at 20- to 25% of GDP, as more people have stopped reporting their income to avoid paying taxes that, in some cases, have risen to 70% of an individual’s gross income. These issues will continue to be a drag on the economy in 2018 and further delay recovery from the financial crisis.

Source : CIA

Basic Details

Registered Name	KENTIA S.A.
English Name	KENTIA S.A.
Trade Name	KENTIA S.A.
Registered Address	17 Lefkados, Moschato, 18346, Attiki, Greece
Activities	Wholesale of textiles, Manufacture of made-up textile articles, except apparel, Retail sale of textiles in specialised stores, Retail sale of furniture, lighting equipment and other household articles in specialised stores
Company Status	Registered and operational
Company Reg. No	30049/002/Β/93/373
Company Reg. Date	17/12/1993
Start Date	17/12/1993
Tax Reg. No	094443136
Telephone	+30 2104832832	Fax	+30 2104830508

E-mail	info@kentia.gr	Websites	www.kentia.gr

Payment Behaviour

Payment habits

SLOW BUT CORRECT

Financial Summary

Basic Financial Figures	2017 (EUR)	2016 (EUR)
Revenue	5,581,496	5,041,993
Gross Profit	3,039,498	2,664,863
Operating Profit	173,382	213,682
Profit Before Tax	-17,104	-52,445
Net Profit	33,078	-55,161
Working Capital	844,280	732,686
Total Equity - Net Worth	3,802,573	3,773,844
Long-term Debt	2,195,686	2,416,664

Accounts Receivable	46,569	46,569
Days Sales Outstanding	97.272586059365	110.846860556927
Revenue Per Employee	2,603,957	2,682,589
Trend	EVEN	EVEN
Key Ratios	2017	2016
Gross Profit margin on sales	54.46	52.85
Current Ratio	1.34	1.3
Solvency Ratio	0.01	-0.01
Debtor Days	97.27	110.85
Creditor Days	105.84	144.42
Probability of Default	Safe zones	Safe zones

Legal Status

Legal Type	SA - Société Anonyme
Auditors	MAZARS S.A. CERTIFIED AUDITORS ACCOUNTANTS & BUSINESS CONSULTANTS TSOUKALAS NIK. GEORGIOS

Capital

Authorized Capital

€ 773,013

Corporate Structure

Directors

Name	Position	ID	Occupation	Age	Nationality	Other Rel.	Appointment date
Mr Joh. Pasgianos, Efstratios	Director	-	Board Member	-	Unknown	No	-


Topouzoglou, Nikolaos	Director	-	Business Development Director	-	Unknown	No	-


Mr Efstratiou Pasgianos , John	Director	-	Chairman of the Board	-	Unknown	No	-
Comment: Chief Executive Officer, Legal Representative, General Manager


Mrs Efstratiou Pasgianou - Kafeza , Eirini	Director	-	Board Vice Chairman	-	Unknown	No	-

Other Key Personnel

Name	Reg. No. / ID	Occupation	Country	Relation	Date Registered
Mrs Menti, Pinelopi	-	-	Unknown	Chief Financial Officer

Shareholders

Name	ID/Reg. No	Nationality	Number of Shares	Percentage of Shares	Other Rel
Mr Efstratiou Pasgianos , John	(Reg. No.)	Unknown		71.9

Mrs Efstratiou Pasgianou - Kafeza , Eirini	(Reg. No.)	Unknown		28.1

Operation and Activities

Activity Code	Description
NACE Code	NACE Description
51.41	Wholesale of textiles
1740	Manufacture of made-up textile articles, except apparel
4751	Retail sale of textiles in specialised stores
4759	Retail sale of furniture, lighting equipment and other household articles in specialised stores

Line of business

SECTOR: White linen and fabric

The subject company is engaged in the following activities:
Imports, mfg and trade of white linen, embroideries and curtains

PRODUCTS
Curtains - Trade
White linen - Trade
Quilts - Trade
Bedsheets & pillowcases - Trade
Embroideries & lace - Trade

Export to	Payment terms	Percentage
UAE, Qatar	-	N/A

Import from	Payment terms	Percentage
China, India, Israel, Pakistan, Turkey	-	N/A

Agencies, Suppliers & Brands	Country	Relation	Comment
FERPIL	Portugal	Supplier
SHANGHAI MAO	China	Supplier
HONDOS POLYKATASTIMATA S.A.	Greece	Customer	Tax number: 094213226
VOSNIAKOU, S. & I., O.E.	Greece	Customer	Tax number: 081619723

Banks	Swift code	Comments
PIRAEUS BANK S.A. - GOUNARI, PIRAEUS PIRAEUS, Greece	0172102
ALPHA BANK - NAVARINOU-GOUNARI PIRAEUS, Greece	0140251
EFG EUROBANK ERGASIAS S.A. - GR. LABRAKI PIRAEUS PIRAEUS, Greece	0260005
NATIONAL BANK OF GREECE S.A. - ETHNIKIS ANTISTASEOS PIRAEUS, Greece	0110190

Premises	Comprise of	Address	Square Meters	Type	Comment
Retail store	-	45 Al. Panagouli, Larissa 41222, Larissa, Greece	-	Leased	-
Retail store	-	9 Aristotelous, Thessaloniki 54624, Thessaloniki, Greece	-	Leased	-
Retail store	-	4 Omonoias Sq., Athens 10431, Attiki, Greece	-	Leased	-
Retail store	-	25 Papanastassiou & Papadimitriou, Halkida 34100, Evoia, Greece	-	Leased	-
Retail store	-	84 Georg. Scholis, Thermi 57001, Thessaloniki, Greece	-	Leased	-
Registered	Office	17 Lefkados, Moschato, 18346, Attiki, Greece	-	Owned	BUILDINGS m2: 4500
Retail store	-	48 Athinas, Athens 10551, attiki, Greece	-	Leased	-
Retail store	-	2 Ag. Konstantinou & 5 Lazaraki, Glyfada 16675, attiki, Greece	-	Leased	-
Retail store	-	141 Har. Trikoupi, Nea Erythraia 14671, attiki, Greece	-	Leased	-
Retail store	-	28-30 Gr. Lambraki, Glyfada 16674, attiki, Greece	-	Leased	-
Retail store	-	20 Argyroupoleos, Argyroupoli 16451, attiki, Greece	-	Leased	-

Vehicles	Number
Trucks	2
Total Vehicles	2

Employees	Jun 2018
Full Time Employees of Company	54

Negative Incidents

According to our records against the subject no negatives have been registered.

Financial information

Currency	Euro - €
Group Consolidated Accounts	No
Type	Trading & Manufacturing

Corporate financial statement	June 2017	June 2016
STATEMENT OF FINANCIAL POSITION
ASSETS
Non current Assets
Property, Plant & Equipment	€ 5,397,307	€ 5,540,038
Investment properties	€ 98,472	€ 98,472
Intangible assets	€ 19,902	€ 38,668
Receivables	€ 46,569	€ 46,569
Total Non current Assets	€ 5,562,250	€ 5,723,747
Current Assets
Inventories	€ 1,554,229	€ 1,372,096
Prepayments	€ 228,772	€ 198,062
Receivables	€ 1,487,470	€ 1,531,203
Cash at bank and in hand	€ 92,962	€ 86,845
Total current Assets	€ 3,363,433	€ 3,188,206
Total Assets	€ 8,925,683	€ 8,911,953
EQUITY AND LIABILITIES
Equity
Share capital	€ 683,012	€ 683,012
Other reserves	€ 4,220,383	€ 4,220,383
Retained Earnings	€ -1,100,822	€ -1,129,551
Total Equity	€ 3,802,573	€ 3,773,844
LIABILITIES
Non-current liabilities
Borrowings	€ 2,195,686	€ 2,416,664
Post-Employment Benefit Obligation	€ 85,450	€ 71,663
Other Non Current Liabilities	€ 291,222	€ 112,481
Deferred tax liabilities	€ 31,599	€ 81,781
Total non-current liabilities	€ 2,603,957	€ 2,682,589
Current liabilities
Trade and other payables	€ 737,104	€ 940,579
Borrowings	€ 1,482,119	€ 1,272,421
Current tax liabilities	€ 224,104	€ 159,519
Other Liabilities	€ 75,826	€ 83,001
Total current liabilities	€ 2,519,153	€ 2,455,520
Total Liabilities	€ 5,123,110	€ 5,138,109
Total Equity and liabilities	€ 8,925,683	€ 8,911,953
STATEMENT OF COMPREHENSIVE INCOME
Revenue	€ 5,581,496	€ 5,041,993
Cost of Sales	€ -2,541,998	€ -2,377,130
Gross Profit	€ 3,039,498	€ 2,664,863
Other income	€ 104,652	€ 59,756
Other expenses	€ -2,970,768	€ -2,510,937
Operating Loss/Profit	€ 173,382	€ 213,682
Income (Loss) from Investments	€ 1,282	€ 2,702
Finance costs	€ -171,549	€ -161,250
Impairment Provisions for Tangible And Intangible Assets	€ -20,219	€ -107,579
Profit before tax	€ -17,104	€ -52,445
Tax	€ 50,182	€ -2,716
Net profit/loss for the year*	€ 33,078	€ -55,161
Other comprehensive income
Total comprehensive income for the year	€ 33,078	€ -55,161
CASH FLOW STATEMENT
Profit before tax	€ -17,104	€ -52,445
Adjustments for:
Cash flows (used in)/ from operations	€ -17,104	€ -52,445
Net Cash flows (used in)/ from operating activities	€ -17,104	€ -52,445
Net (decrease)/increase in cash and cash equivalents	€ -17,104	€ -52,445
Cash and cash equivalents:
At end of the year	€ -17,104	€ -52,445

Key Ratios	June 2017	June 2016
Profitability Ratios
Gross Profit margin on sales	0.54	0.53
Return on assets (ROA)	0	-0.01
Return on Equity	0.87	-1.46
Operating Income margin	3.11	4.24
Liquidity Ratios
Current Ratio	1.34	1.3
Quick Ratio	0.72	0.74
Turnover Ratios
Sales to Net Working Capital Ratio	6.61	6.88
Total assets turnover (times)	0.63	0.57
Debtor Days	97.27	110.85
Creditor Days	105.84	144.42
Leverage Ratios
Debt to Equity	1.35	1.36
Interest Coverage Ratio	1.11	1.34

Additional Information

Conclusion

Established in Piraeus, in 1993, following the change of the legal status of the general partnership KENTIA EFS. PASGIANOS & CO O.E., established in 1981 as a continuation of the sole proprietorship EFSTRATIOS PASGIANOS, originally founded in 1954. On 16/2/2000 (Gov. Gaz. No. 01104/2000) subject absorbed the firms PASGIANOS JOHN. On 7/8/2000 (Gov. Gaz. No. 07430/2000) a change of subject`s head office was published.

Please note that the information provided in this report was obtained from official and publicly available sources.

Industry Developments

INDUSTRY HIGHLIGHTS
The commercial sector of white linen and fabric consists of a large number of companies, while only few of them are large-sized. In recent years chain stores developed mainly through franchise
networks have entered the market. These companies have both privately-owned and collaborating stores, as well as shops in shop in shopping centers.
Currently 4 organized chains operate in the Greek market. Bed & Bath has the most extensive network with 27 stores, followed by Epavlis with 18 stores (and 21 corners in and out of Attica),
Selections Hitiroglou with 9 stores and Palladium with 6 stores.
The chains and the larger commercial enterprises of the sector import branded products of high quality from well-known foreign white linen brands, mainly from EU, which are priced at relatively
high levels. On the contrary, the participation of domestic products in their product range is gradually restricted due to import penetration.
The main part of the market is occupied by companies importing cheaper products, mainly from Asian countries, thus gaining significant market shares. These products usually lack quality compared
to imported branded and domestic products; however, they are preferred by consumers due to their competitive prices. Usually, they are traded by small stores, street markets, bazaars, street
traders etc.
According to market estimations, imported products account for 80% of the total, while 70% of the available products are priced at quite affordable levels.
The white linen sector in recent years has undergone significant drop in sales as households ?due to the declining disposable income and uncertainty and negative psychology caused by the economic
recession- restrict their expenses to the strictly necessary products.
The decline in sales led many companies to apply discount policy to attract more consumers, who gradually turn to cheaper solutions.

Financial benchmarking analysis
Short term bank debt increase as percentage of total assets, at 16.61% , (14.28% in 2016) . As a percentage of turnover it is -but increased compared to 2016- levels, at
26.55% .
Total liabilities decrease as percentage of total assets, at 57.40% , (57.65% in 2016) . Debt to equity ratio (leverage) is -and lower compared to 2016- levels, at 1.35 to 1.
Interest coverage by operating profit is -and lower compared to 2016- levels, at 2.29 times.
Total current assets grow as percentage of total assets, at 37.68% , (35.77% in 2016) . driving the quick ratio to 1.34 -but increased compared to 2016- . Inventory as
percentage of total assets are 46.21% , (43.04% in 2016) . In addition, acid test ratio at 0.72 -and lower compared to 2016- .
Trade cycle is estimated at 166 days while its duration extents compared to 2016 by 33 days . Total assets turnover improves at 0.63 times (0.57 in 2016), .
Gross profit margin slightly improves at 54.46% , (from 52.85% in 2016) . EBITDA margin drops to 7.05% , (from 8.50% in 2016) . Return on equity (RoE) remains negative
but improves at -0.45% , (compared to -1.39% in 2016) .

Country Developments
Below information is taken from World Bank Report of 2015
Ease of Doing Business rank (1-189)	61
Overall Distance to frontier (DTF) Score (0-100)
GNI per Capita (US$)	20,290
Getting Credit(rank)
Protecting minority investors (rank)
Trading across borders (rank)
Population	10,823,732
Resolving insolvency (0-100)	52

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 68.15
UK Pound	1	INR 90.27
Euro	1	INR 79.35
EURO	1	INR 79.66

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)

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.