3decades

MIRA INFORM REPORT

Report No. :	494108
Report Date :	06.03.2018

IDENTIFICATION DETAILS

Name :	KLIMALLCO CLIMATE EXPERIENCE SA (KLIMALLCO CLIMATE EXPERIENCE SA)

Registered Office :	Trypio Lithari, 19600 , PoBox 15, Attiki,

Country :	Greece

Financials (as on) :	December 2016

Date of Incorporation :	26.06.2014

Com. Reg. No.:	130982607000

Legal Form :	SA - Société Anonyme

Line of Business :	Manufacture of non-domestic cooling and ventilation equipment, Wholesale of other machinery and equipment

No. of Employees :	24

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate

Payment Behaviour :	Slow

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)

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	KLIMALLCO CLIMATE EXPERIENCE SA (KLIMALLCO CLIMATE EXPERIENCE SA)
English Name	KLIMALLCO CLIMATE EXPERIENCE SA (KLIMALLCO CLIMATE EXPERIENCE SA)
Trade Name	KLIMALLCO CLIMATE EXPERIENCE SA
Registered Address	Trypio Lithari, 19600 , PoBox 15, Attiki, Greece
Activities	Manufacture of non-domestic cooling and ventilation equipment, Wholesale of other machinery and equipment
Company Status	Registered and operational
Company Reg. No	130982607000
Company Reg. Date	26/06/2014
Start Date	26/06/2014
Tax Reg. No	800588677
Telephone	+30 2105550360	Fax	+30 2105551919

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

Payment Behaviour

Payment habits

Slow

Financial Summary

Basic Financial Figures	2016 (EUR)	2015 (EUR)
Revenue	935,035	1,544,400
Gross Profit	612,745	568,762
Operating Profit	7,469	-137,661
Profit Before Tax	6,574	-138,923
Net Profit	6,574	-138,923
Working Capital	149,879	120,714
Total Equity - Net Worth	347,022	340,367
Long-term Debt	0	0
Accounts Payable	0	0
Accounts Receivable	12,011	12,011
Days Sales Outstanding	4.688610586769	2.838652551153
Revenue Per Employee	0	0
Trend	EVEN	EVEN
Key Ratios	2016	2015
Gross Profit margin on sales	65.53	36.83
Current Ratio	1.28	1.9
Solvency Ratio	0.01	-1.04
Debtor Days	0	21.77
Creditor Days	214.45	37.84
Probability of Default	Safe zones	Safe zones

Legal Status

CR Number	130982607000
Legal Type	SA - Société Anonyme

Capital

Authorized Capital

600,000 EUR

Corporate Structure

Directors

Name	Position	ID	Occupation	Age	Nationality	Other Rel.	Appointment date
Mr Mylonas, Evangelos Vas.	Director	033730720 (Reg. No)	Board Member	-	Greece	No	-


Mr Borsis , Dimitrios Ioanni	Director	050496814 (Reg. No)	Chairman & CEO	-	Greece	No	-
Comment: Legal Representative


Mr Papadopoulos, Dimitrios Anania	Director	032717080 (Reg. No)	Executive Vice Chairman	-	Greece	No	-

Shareholders

Name	ID/Reg. No	Nationality	Number of Shares	Percentage of Shares	Other Rel
Mr Papadopoulos, Dimitrios Anania	032717080 (Reg. No.)	Greece

Other Directorship of: Papadopoulos, Dimitrios Anania
No information available
Other Shareholding of: Papadopoulos, Dimitrios Anania
No information available

Mr Borsis , Dimitrios Ioanni	050496814 (Reg. No.)	Greece

Other Directorship of: Borsis , Dimitrios Ioanni
No information available
Other Shareholding of: Borsis , Dimitrios Ioanni
No information available

Mr Musa Shana Ah, Abedallah	(Reg. No.)	Greece

Other Directorship of: Musa Shana Ah, Abedallah
No information available
Other Shareholding of: Musa Shana Ah, Abedallah
No information available

Other Related Companies

No related companies

Operation and Activities

Activity Code	Description
NACE Code	NACE Description
2923	Manufacture of non-domestic cooling and ventilation equipment
4669	Wholesale of other machinery and equipment

Line of business

SECTOR: Air-conditioning, heating & plumbing

The subject is engaged in the manufacture, trade and installation of air conditioning machinery.

Prpducts:
Air conditioning machinery Production – Trade

Export to	Payment terms	Percentage
UAE, Israel, Pakistan	-	N/A

Import from	Payment terms	Percentage
Czech Republic, Italy	-	N/A

Agencies, Suppliers & Brands	Country	Relation	Comment
No information available

Banks	Swift code	Comments
PIRAEUS BANK S.A. - ASPROPIRGOU ASPROPIRGOS, Greece	0172115
PIRAEUS BANK S.A. - ELEFSINAS ELEFSINA, Greece	0172025
EFG EUROBANK ERGASIAS S.A. - ASPROPIRGOS ASPROPIRGOS, Greece	0260335
NATIONAL BANK OF GREECE S.A. - ASPROPYRGOS ASPROPYRGOS , Greece	0110200

Premises	Comprise of	Address	Square Meters	Type	Comment
Registered Address	Office	Trypio Lithari, 19600 , PoBox 15, Attiki, Greece	-	Leased	-

Employees	Feb 2018
Full Time Employees of Company	24

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	December 2016	December 2015
STATEMENT OF FINANCIAL POSITION
ASSETS
Non current Assets
Biological assets	115,676 €	124,569 €
Intangible assets	58,865 €	66,228 €
Other Assets	10,591 €	16,845 €
Receivables	12,011 €	12,011 €
Total Non current Assets	197,143 €	219,653 €
Current Assets
Inventories	628,089 €	83,872 €
Receivables		92,113 €
Other Assets		500 €
Cash at bank and in hand	56,206 €	77,895 €
Total current Assets	684,295 €	254,380 €
Total Assets	881,438 €	474,033 €
EQUITY AND LIABILITIES
Equity
Share capital	600,000 €	600,000 €
Retained Earnings	-252,978 €	-259,633 €
Total Equity	347,022 €	340,367 €
Trade and other payables	189,360 €	101,156 €
Current tax liabilities	1,440 €	14,778 €
Other liabilities and charges	343,616 €	17,732 €
Total current liabilities	534,416 €	133,666 €
Total Liabilities	534,416 €	133,666 €
Total Equity and liabilities	881,438 €	474,033 €
STATEMENT OF COMPREHENSIVE INCOME
Revenue	935,035 €	1,544,400 €
Cost of Sales	-322,290 €	-975,638 €
Gross Profit	612,745 €	568,762 €
Other expenses	-605,276 €	-706,423 €
Operating Loss/Profit	7,469 €	-137,661 €
Finance costs	-1,783 €	-1,301 €
Net finance costs	-1,783 €	-1,301 €
Income of Invest	888 €	39 €
Profit before tax	6,574 €	-138,923 €
Net profit/loss for the year*	6,574 €	-138,923 €
Other comprehensive income
Total comprehensive income for the year	6,574 €	-138,923 €
CASH FLOW STATEMENT
Profit before tax	6,574 €	-138,923 €
Adjustments for:
Cash flows (used in)/ from operations	6,574 €	-138,923 €
Net Cash flows (used in)/ from operating activities	6,574 €	-138,923 €
Net (decrease)/increase in cash and cash equivalents	6,574 €	-138,923 €
Cash and cash equivalents:
At end of the year	6,574 €	-138,923 €

Key Ratios	December 2016	December 2015
Profitability Ratios
Gross Profit margin on sales	0.66	0.37
Return on assets (ROA)	0.01	-0.29
Return on Equity	1.89	-40.82
Operating Income margin	0.8	-8.91
Liquidity Ratios
Current Ratio	1.28	1.9
Quick Ratio	0.11	1.28
Turnover Ratios
Sales to Net Working Capital Ratio	6.24	12.79
Total assets turnover (times)	1.06	3.26
Debtor Days	0	21.77
Creditor Days	214.45	37.84
Leverage Ratios
Debt to Equity	1.54	0.39
Interest Coverage Ratio	-2.69	107.78

Additional Comments on Financial Statement

No information available

Additional Information

Conclusion

The Registration Number mentioned above is the GEMI Number (General Commercial Registry) of the company, which is a newly established service concerning the registration of commercial enterprises regardless of their legal form.

G.E.MI.: 130982607000

COMPANY`S HISTORY
Company was established in 2014 having a legal seat at Mandra Attica and is engaged in the manufacturing and trade of air conditioning machinery.

Please note that no information regarding the shareholders equity was provided.

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

Industry Developments

INDUSTRY HIGHLIGHTS
Air conditioning products consist of split units intended for domestic use and central air conditioning systems applied in professional facilities.
The former category consists mainly of numerous importing companies that usually import from foreign manufacturers and distribute the products to chain stores of household electrical appliances
and super markets. Therefore, domestic demand for household air condition units is mainly covered by imports
On the contrary, production is limited and mainly concentrated in the segment of central air conditioning systems, indicating declining trend due to the adverse economic conditions of recent years.
Approximately 60% of household appliances in the market are branded, while the remainder consists of anonymous products imported directly from China and traded mainly from super markets
and secondarily from chains of electrical appliances. These products are priced at lower levels and create competitive pressures.
The chains of electrical appliances, although they have entered the segment of unbranded products due to the recession, usually trade branded codes, which constitute 60% of the market in units
terms and more than 75% in value terms.
The economic recession that prevails in our country since 2009 and the fiscal consolidation measures led to the continuous decline of building erections, thus reducing sales of air-conditioning
and heating equipment. In 2012 22,627 licenses were issued, a number declined by 36.7% as compared to 2011, while a reduction of 30.4% in surface and 29% in volume occurred. The number
of licenses at the end of 2012 was lower than the historically high level of 2005 by 76%.
Also, consumers are reluctant to acquire products of the sector, since their income is significantly decreased, while banks have limited consumer and mortgage loans.
The equation of heating oil in October with 80% of the SCT that was imposed on diesel since then, so that fuel smuggling would be restricted, had positive impact on certain market segments in
2012. This regulation led many consumers to alternative heating sources, including air conditioners, stoves of gas, halogen, oil, woodstoves etc., favoring the turnover of installers and companies
that distribute those products.
Overall, sales of alternative heating equipment increased by 75% in 2012, while demand for solid fuels such as wood pellets almost doubled.
In order to restrict reduction in demand, companies of air-conditioners engage in price competition, while providing offers, discounts and other complementary services; however, profit margins
are reduced.
The sector for air conditioners (both importers of branded products and chain stores of electric household appliances) incur competitive pressures by imports of unbranded products from low cost
countries (mainly China). Meanwhile, the sector shows strong seasonality patterns during the summer months, when temperatures are higher.

Financial benchmarking analysis
The company does not employ short-term bank debt, according to its latest published financial statements, whereas the median ratio in the sector is 33,199.43% (short
term bank debt to sales).
Total liabilities increase as percentage of total assets, at 60.63% , (28.20% in 2015) , whereas the median ratio for the sector is estimated at 56.05% . Debt to equity ratio
(leverage) is estimated at moderate -but increased compared to 2015- levels, at 1.54 to 1, whereas the median ratio for the sector is estimated at 1.00 to 1. Interest
coverage by operating profit is estimated at rather high -and increased compared to 2015- levels, at 17.19 times, whereas the median ratio for the sector is estimated at
6.43 times.
Total current assets grow as percentage of total assets, at 77.63% , (53.66% in 2015) , whereas the median ratio for the sector is estimated at 95.81% . In the same
time, current liabilities as a portion of total assets do not deviate from the average level in the sector (60.63%) driving the quick ratio to a low level of 1.28 -and lower
compared to 2015- , whereas the median ratio for the sector is estimated at 1.62 . Inventory as percentage of total assets are 91.79% , (32.97% in 2015) , whereas the
median ratio for the sector is estimated at 5.35% . In addition, acid test ratio is rather low at 0.11 -and lower compared to 2015- , whereas the median ratio for the sector
is estimated at 1.26 .
Total assets turnover drops to 1.06 times (3.26 in 2015), which compared to the sector (0.84 times) which is high.
Gross profit margin improves at 65.53% , (from 36.83% in 2015) , which is very high compared to the median ratio in the sector (25.53% ). EBITDA margin amounts to
3.28% -negative value in 2015 (-8.91%)- , which is very low compared to the median ratio in the sector (5.40% ). Return on equity (RoE) amounts to 1.89% -negative value
in 2015 (-40.82%)- , which is very low compared to the median ratio in the sector (9.30% ).

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)	66.70
GNI per Capita (US$)	22.530
Getting Credit(rank)
Protecting minority investors (rank)	62
Trading across borders (rank)	48
Population	11.
Resolving insolvency (0-100)	52

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.05
UK Pound	1	INR 89.70
Euro	1	INR 80.03
Euro	1	INR 80.21

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

INFORMATION DETAILS

Analysis Done by :	PRI

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