MIRA INFORM REPORT

Report No. :	494228
Report Date :	03.03.2018

IDENTIFICATION DETAILS

Name :	MAKROCHEM SA
Registered Office :	Ul. Mariana Rapackiego 2, 20-150 Lublin
Country :	Poland
Financials (as on) :	31.12.2016
Date of Incorporation :	22.10.2010
Legal Form :	Joint Stock Company
Line of Business :	· Wholesale of chemical products · Wholesale of chemical products · Manufacture of chemicals and chemical products · Wholesale trade a, except of motor vehicles · Land transport; transport via pipelines · Financial services · Research and development
No. of Employees :	1   employee including 1 management

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 (30.09.2017)	Current Rating (31.12.2017)
Poland	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

POLAND - ECONOMIC OVERVIEW

Poland has the sixth-largest economy in the EU and has long had a reputation as a business-friendly country with largely sound macroeconomic policies. Since 1990, Poland has pursued a policy of economic liberalization. During the 2008-09 economic slowdown Poland was the only EU country to avoid a recession, in part because of the government’s loose fiscal policy combined with a commitment to rein in spending in the medium-term Poland is the largest recipient of EU development funds and their cyclical allocation can significantly impact the rate of economic growth.

The Polish economy performed well during the 2014-17 period, with the real GDP growth rate generally exceeding 3%, in part because of increases in government social spending that have helped to accelerate consumer-driven growth. However, since 2015, Poland has implemented new business restrictions and taxes on foreign-dominated economic sectors, including banking and insurance, energy, and healthcare, that have dampened investor sentiment and has increased the government’s ownership of some firms. The government reduced the retirement age in 2016 and has had mixed success in introducing new taxes and boosting tax compliance to offset the increased costs of social spending programs and relieve upward pressure on the budget deficit. Some credit ratings agencies estimate that Poland during the next few years is at risk of exceeding the EU’s 3%-of-GDP limit on budget deficits, possibly impacting its access to future EU funds. Poland’s economy is projected to perform well in the next few years in part because of an anticipated cyclical increase in the use of its EU development funds and continued, robust household spending.

Poland faces several systemic challenges, which include addressing some of the remaining deficiencies in its road and rail infrastructure, business environment, rigid labor code, commercial court system, government red tape, and burdensome tax system, especially for entrepreneurs. Additional long-term challenges include diversifying Poland’s energy mix, strengthening investments in innovation, research, and development, as well as stemming the outflow of educated young Poles to other EU member states, especially in light of a coming demographic contraction due to emigration, persistently low fertility rates, and the aging of the Solidarity-era baby boom generation.

Source : CIA

COMPANY NAME AND ADDRESS

MAKROCHEM SA

ul. Mariana Rapackiego 2
20-150 Lublin

Phone:    81 7407074

81 7478819

Fax:      81 7470602

E-mail:   mc@makrochem.com

Website:  www.makrochem.com

COMPANY SUMMARY

Legal form	Joint Stock Company	(6)
Stat.no.	060741528
Tax ID	PL 7123240544

Establishment	22.10.2010	(6)
Changes of names and addresses	17.02.2011 ul. Bursaki 19, 20-150 Lublin
	05.06.2017  ul. Mariana Rapackiego 2, 20-150 Lublin

Registration:

17.02.2011, District Court Lublin, VI Department, KRS 378832

Shareholders

Current shareholders list unknown due to lack of obligation of disclosing such a list in court.

Share capital		PLN 100 000 000,00
	Share capital divided into 100000000 shares of PLN 1,00 each
	Series of shares 100000 type Not preference shares A 2000000 type Not preference shares B 97900000 type Not preference shares SERIA C
	Changes of share capital
	- since 19.05.2016  until 28.04.2017  the capital estimated	PLN 2 100 000,00
	- since 17.02.2011  until 19.05.2016  the capital estimated	PLN 100 000,00

Management	Mirosław Edward Leziak , personal ID no. (PESEL) 64020505530  - president
	Representation: since 17.02.2011  President individually, two members of the board of directors jointly or member of the board of directors and proxy jointly or two proxies jointly.

Supervisory board

Jekatierina Lewenberg  Olena Levenberg , personal ID no. (PESEL) 64031615660 Ilya Ivanov

Main activity	Wholesale of chemical products
	Branches NACE 2007:
	Wholesale of chemical products	(G.46.75.Z)
	Manufacture of chemicals and chemical products	(C.20)
	Wholesale trade a, except of motor vehicles	(G.46)
	Land transport; transport via pipelines	(H.49)
	Financial services	(K.64)
	Research and development	(M.72)

Employment

2013:              1         employee including  1         - management 2014:              1         employee including  1         - management 2015:              1         employee including  1         - management 2016:              1         employee including  1         - management

Turnover	22.10.2012 - 31.12.2012	PLN	1 585 334,96
	2013	PLN	7 259 288,05
	2014	PLN	8 646 956,10
	2015	PLN	10 680 103,87
	2016	PLN	207 098 294,20

Financial statements

Source of financial data	Court	other	other	other
	annual	annual	annual	annual
Personal balance sheet as at	31.12.2016 (PLN)	31.12.2015 (PLN)	31.12.2014 (PLN)	31.12.2013 (PLN)
-A. Fixed assets......................	106 530 333,50	146 574,73	98 666,00	100 566,00
-  II.  Tangible assets...............	91 223 042,94
-    1. Fixed goods...................	63 004 897,65
-      a) land........................	14 085 322,23
-      b) buildings, premises, facilities............................	25 809 592,86
-      c) machinery and equipment.....	2 579 700,88
-      d) fleet of motor vehicles.....	20 230 682,53
-      e) other fixed goods...........	299 599,15
-    2. Fixed goods under construction..........................	27 184 441,56
-    3. Prepayments for fixed goods under construction....................	1 033 703,73
-  III. Long term receivables.........	170 082,36
-    2. Other receivables.............	170 082,36
-  IV.  Long term investments.........	12 677 781,08	145 113,73	97 205,00	97 205,00
-    3. Long term financial assets....	12 677 781,08	145 113,73	97 205,00	97 205,00
-      a) in affiliated companies.....	12 585 981,66		5 410,00	5 410,00
-        - participations or shares...	12 585 981,66		5 410,00	5 410,00
-      ...............................	91 799,42
-        .............................	91 799,42
-      b) Other.......................			91 795,00	91 795,00
-        - participations or shares...			91 795,00	91 795,00
-V. Long-term prepayments and accrued income........................	2 459 427,12	1 461,00	1 461,00	3 361,00
-  1. Deferred tax assets.............	2 385 707,28	1 461,00	1 461,00	3 361,00
-  2. Other prepayments...............	73 719,84
-B. Current assets....................	205 673 509,62	4 862 101,68	2 128 679,15	2 960 330,27
-  I.   Stock.........................	37 285 323,91	0,00	0,00
-    1. Raw materials.................	31 592,40
-    4. Goods for re-sale.............	37 222 820,22
-    5. Advance payments .............	30 911,29
-  II. Short-term receivables.........	88 139 706,10	2 588 402,44	347 517,55	447 433,95
-    1. Receivables from affiliated companies.............................	1 873 683,63
-      a) Due to deliveries and services with payment period:.........	1 858 979,64
-        - up to 12 months............	1 858 979,64
-      b) Other.......................	14 703,99
-    .................................	3 409 956,66
-      ...............................	3 409 956,66
-        .............................	3 409 956,66
-    2. Other receivables ............	82 856 065,81	2 588 402,44	347 517,55	447 433,95
-      a) Due to deliveries and services with payment period:.........	80 733 066,19		346 104,55	447 433,95
-        - up to 12 months............	80 733 066,19		346 104,55	447 433,95
-      b) Due to taxes, subsidies, insurances, duties, etc...............	461 691,00		1 413,00
-      c) Other.......................	1 661 308,62
-  III. Short term investments........	79 941 971,87	2 273 699,24	1 781 161,60	2 512 896,32
-    1. Short-term financial assets...	79 941 971,87	2 273 699,24	1 781 161,60	2 512 896,32
-      a) in affiliated companies.....	16 132 098,00		1 385 454,63
-        - granted loans..............	16 132 098,00		1 385 454,63
-      c) cash and other liquid assets................................	63 809 873,87		395 706,97	2 512 896,32
-        - cash in hand and on bank account...............................	63 809 873,87		395 706,97	2 512 896,32
-IV. Short-term prepayments and accrued income........................	306 507,74
-D. Total assets......................	312 203 843,12	5 008 676,41	2 227 345,15	3 060 896,27
-A. Shareholders' equity..............	7 390 620,84	2 325 902,89	1 755 188,84	1 707 710,84
-  I.   Basic share capital...........	2 100 000,00	100 000,00	100 000,00	100 000,00
-  IV.  Statutory reserve capital.....	2 376 209,81	1 655 188,84	1 659 199,01
-  VII. Profit (loss) carried forward.			-51 488,17	-183 337,61
-  VIII. Net profit (loss)............	2 914 411,03	570 714,05	47 478,00	1 791 048,45
-B. Liabilities and reserves for liabilities...........................	304 813 222,28	2 682 773,52	472 156,31	1 353 185,43
-  I.   Reserves for liabilities......	2 289 141,02	15 518,25	15 518,25
-    1. Deferred income tax reserves..	2 280 654,70	15 518,25	15 518,25
-    2. Reserves for pensions and similar social payments...............	8 486,32
-      - long-term....................	804,46
-      - short-term...................	7 681,86
-II.  Long-term liabilities...........	255 309 593,23	65 833,68	65 833,68
-  2. Other liabilities...............	255 309 593,23	65 833,68	65 833,68
-    a) Loans.........................	250 772 763,61		65 833,68
-    c) Other financial liabilities...	4 454 529,40
-    d) Other.........................	82 300,22
-III. Short-term liabilities..........	47 214 488,03	2 601 421,59	390 804,38	1 353 185,43
-  1. Due to affiliated companies.....			329 346,38	1 028 678,88
-    a) Due to deliveries and services with payment period:.........			329 346,38	1 028 678,88
-      - up to 12 months..............			329 346,38	1 028 678,88
-  ...................................	19 903 728,31
-    .................................	19 903 728,31
-      ...............................	19 903 728,31
-  2. Other liabilities...............	27 310 759,72	2 601 421,59	61 458,00	324 506,55
-    a) Loans.........................				225 830,15
-    c) Other financial liabilities...	1 667 602,19
-    d)Due to deliveries and services with payment period:.........	22 118 073,61			10 737,90
-      - up to 12 months..............	22 118 073,61			10 737,90
-    g) Due to taxes, subsidies, insurances, duties, etc...............	2 645 429,07		61 458,00	47 897,00
-    h) Due to salaries...............	41 788,62
-    i) Other.........................	837 866,23			40 041,50
-D. Total liabilities.................	312 203 843,12	5 008 676,41	2 227 345,15	3 060 896,27
Source of financial data	Court	other	other	other
	annual	annual	annual	annual
individual PROFIT AND LOSS ACCOUNT	01.01.2016- 31.12.2016 (PLN)	01.01.2015- 31.12.2015 (PLN)	01.01.2014- 31.12.2014 (PLN)	01.01.2013- 31.12.2013 (PLN)
-A. Income from sales and similar.....	207 098 294,20	10 680 103,87	8 646 956,10	7 259 288,05
-  - including related companies......	2 426 475,89
-  I.   Net income on sales...........	2 809 034,21
-  IV.  Income from sales of goods and materials.........................	204 289 259,99	10 680 103,87	8 646 956,10	7 259 288,05
-B. Operational costs.................	201 274 526,84	10 866 136,05	8 460 580,40	7 096 941,60
-  I.   Depreciation..................	1 643 933,82
-  II.  Materials and energy..........	59 891,92
-  III. Third party services..........	50 180 598,63	592 991,06	162 951,74	127 431,19
-  IV.  Taxes and duties..............	544 621,49	427,00	741,00	3 574,00
-  V.   Salaries and wages............	391 010,79
-  VI.  Social security...............	54 809,08
-  VII. Other.........................	251 303,62	20 613,00
-  VIII.Costs of goods and materials sold..................................	148 148 357,49	10 252 104,99	8 296 887,66	6 965 936,41
-C. Profit on sale....................	5 823 767,36		186 375,70	162 346,45
-C. Loss on sale......................		186 032,18
-D. Other operating incomes...........	71 490,53	5,03	155,66	1,38
-  III. Other operating incomes.......	71 490,53	5,03	155,66	1,38
-E. Other operating costs.............	53 309,03	2,29	0,96	0,93
-  I.   Loss on disposal of non-finacial assets...................	3 921,64
-  III. Other operating costs.........	49 387,39	2,29	0,96	0,93
-F. Profit on operating activities....	5 841 948,86		186 530,40	162 346,90
-F. Loss on operating activities......		186 029,44
-G. Financial incomes.................	1 318 753,85	1 147 627,14	84 546,75	1 879 423,10
-  I.   Dividends received............	810 089,26			1 879 423,10
-  II.  Interest received.............	458 402,78	71 062,74	81 675,00
-    - including related companies....	458 402,78
-  V.   Other.........................	50 261,81	1 076 564,40	2 871,75
-H. Financial costs...................	3 261 127,33	141 815,65	8 234,90	13 250,55
-  I.   Interest......................	2 747 692,99		8 234,90	11 065,00
-  II.  Loss from financial assets sold..................................	410,00			1 883,75
-  IV.  Other.........................	513 024,34	141 815,65		301,80
-I. Profit on economic activity.......	3 899 575,38	819 782,05	262 842,25	2 028 519,45
-K. Gross profit......................	3 899 575,38	819 782,05	262 842,25	2 028 519,45
-L. Corporation tax...................	985 164,35	249 068,00	215 364,25	237 471,00
-N. Net profit........................	2 914 411,03	570 714,05	47 478,00	1 791 048,45

Ratios	01.01.2016- 31.12.2016	01.01.2015- 31.12.2015	01.01.2014- 31.12.2014	01.01.2013- 31.12.2013
Current ratio	4,36	1,87	5,45	2,19
Quick ratio	3,56	1,87	5,45	2,19
Immediate ratio	1,35		1,01	1,86
Return on sale	1,41	5,34	0,55	24,67
Return on assets	0,93	11,39	2,13	58,51
Return on equity	39,43	24,54	2,71	104,88
Average trade debtors' days	155,77	88,46	14,67	22,50
Average stock turnover's days	65,89
average payables payment period	83,44	88,91	16,50	68,04
Total indebtedness ratio	97,63	53,56	21,20	44,21

While rating the company, it is advisable to take into consideration information about the branch, the company is acting in
(G.46.75.Z - NACE 2007), as at :	30.09.2017	31.12.2016	31.12.2015	31.12.2014	31.12.2013
Current ratio............................	1,70	1,66	1,55	1,51	1,66
Quick ratio..............................	1,26	1,13	0,94	0,94	1,06
Immediate ratio..........................	0,12	0,12	0,13	0,13	0,14
Return on sale...........................	3,30	4,49	3,99	3,11	3,96
Return on assets.........................	3,89	7,24	7,70	6,49	8,43
Return on equity.........................	8,41	14,60	18,77	16,14	19,70
Average trade debtors' days..............	92,86	71,31	50,76	49,12	49,85
Average stock turnover's days............	37,23	39,61	41,71	36,70	35,58
average payables payment period..........	87,14	76,83	70,79	65,92	60,52
Total indebtedness ratio.................	53,79	50,38	58,96	59,81	57,20
Percent share in the examinated group of companies with net profit.............	54,00	87,30	90,00	93,80	92,60
Sales/revenue per employee in th. PLN....	1 808,88	2 168,35	2 234,96	2 297,05	2 317,10
Average sales/revenue per company in th. PLN..................................	275 536,49	347 516,38	312 000,71	314 695,47	276 007,57
according to the Central Statistical Office

OTHER GENARAL INFORMATION

Locations:

branches: ul. Camino De La Serna 2, 31230 Viana, Spain Chruściel 4A, 14-526 Płoskinia

Real Estate	Book value of buildings as at 31.12.2016	PLN	25 809 592,86
	Book value of lands as at 31.12.2016	PLN	14 085 322,23
	No data Verification of information on real estate ownership position through the Real Estate Register is not covered by the standard report.

Means of transport

As at 31.12.2016  book value of car fleet was: PLN 20 230 682,53

Shares in other companies

As at 06.02.2018 there are no shares in other companies.

Connections:	Mirosław Edward Leziak , personal ID no. (PESEL) 64020505530 -  MAKROCHEM Sp. z o.o. NIP PL 7121015599, ul. Mariana Rapackiego 2, 20-150 Lublin   · president Ilya Ivanov  Jekatierina Lewenberg  Connections have not been determined due to no possibility of identification of the persons or subjects which appear in the company.
	Data concerning connections are valid as at: 06.02.2018.

General information

The subject refused to cooperate in elaboration of the report. Financial data of the company are not being disclosed to the third parties

Banks

Names of banks were not disclosed

Payment Manner	Slow but correct	(37)
Credit capability	Business connections should not be refused, credits require security	(41)
	Due to: - high level of the debt ratio

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.23
UK Pound	1	INR 89.71
Euro	1	INR 79.50
PLN	1	INR 19.17

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

INFORMATION DETAILS

Analysis Done by :	NIY
Report Prepared by :	SYL

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.