MIRA INFORM REPORT

Report No. :	497897
Report Date :	20.03.2018

IDENTIFICATION DETAILS

Name :	EURODRIP S.A.

Registered Office :	36 Kifissias Ave, Maroussi, 15125, Attiki

Country :	Greece

Financials (as on) :	2015

Date of Incorporation :	01.01.1983

Com. Reg. No.:	4719/006/B/86/91

Legal Form :	SA - Société Anonyme

Line of Business :	Manufacture of plastic plates, sheets, tubes and profiles, Wholesale of agricultural machinery, equipment and supplies, Wholesale of hardware, plumbing and heating equipment and supplies, Wholesale of other machinery and equipment

No. of Employees :	195

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

(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	EURODRIP S.A.
English Name	EURODRIP S.A.
Registered Address	36 Kifissias Ave, Maroussi, 15125, Attiki, Greece
Activities	Manufacture of plastic plates, sheets, tubes and profiles, Wholesale of agricultural machinery, equipment and supplies, Wholesale of hardware, plumbing and heating equipment and supplies, Wholesale of other machinery and equipment
Company Status	Registered and operational
Company Reg. No	4719/006/B/86/91
Start Date	01/01/1983
Tax Reg. No	094126376
Telephone	+30 2166002800	Fax	+30 2166002801

E-mail	main@eurodrip.gr	Websites	www.eurodrip.com

Payment Behaviour

Payment habits

Slow but Correct

Financial Summary

Basic Financial Figures	2015 (EUR)	2014 (EUR)
Revenue	38,060,250	36,802,010
Gross Profit	11,185,944	11,559,927
Operating Profit	652,274	1,786,243
Profit Before Tax	-1,152,472	1,710,625
Net Profit	-1,807,064	942,607
Working Capital	-3,099,567	-2,641,644
Total Equity - Net Worth	49,880,153	51,507,433
Long-term Debt	1,075,343	1,850,923
Accounts Payable	0	0
Accounts Receivable	154,209	153,526
Days Sales Outstanding	1.478873233886	1.52266112639
Revenue Per Employee	4,116,701	4,588,742
Trend	EVEN	EVEN
Key Ratios	2015	2014
Gross Profit margin on sales	29.39	31.41
Current Ratio	0.92	0.92
Solvency Ratio	-0.04	0.02
Debtor Days	223.08	202.87
Creditor Days	146.36	112.44
Probability of Default	Safe zones	Safe zones

Legal Status

CR Number	4719/006/B/86/91
Legal Type	SA - Société Anonyme
Auditors	ACTION AUDITING S.A. CERTIFIED AUDITORS ACCOUNTANTS PAPANTONIS THOM. STAVROS

Capital

Authorized Capital

26,670,660 EUR

Corporate Structure

Directors

Name	Position	ID	Occupation	Age	Nationality	Other Rel.	Appointment date
Mr Karandreas, Andreas Nik.	Director	035627447 (Reg. No)	Board Member	-	Greece	No	-


Mr Delatolas, Alexandros Pet.	Director	078238811 (Reg. No)	Board Member	-	Greece	No	-


Mr Klapholz, Richard Ist.	Director	171031124 (Reg. No)	Chairman of the Board	-	Unknown	No	-


Mr Kykrilis, Basil Emm.	Director	110722197 (Reg. No)	Chief Executive Officer (CEO)	-	Greece	No	-
Comment: Legal Representative


Mr Kannor, Alexander Lev.	Director	171031148 (Reg. No)	Executive Vice Chairman	-	Unknown	No	-

Other Key Personnel

Name	Reg. No. / ID	Occupation	Country	Relation	Date Registered
Mr Karandreas, Andreas	-	Human Resource Manager	Greece	Manager

Mr Barlas, Dimitrios	-	Public Relations Manager	Greece	Marketing Director

Mr Kirkilis, Vassilios	-	-	Greece	General Manager

Mr Delonas, Dimitrios Mic.	062097148 -	-	Greece	Chief Financial Officer

Mr Tsolakis, George	-	Production Manager	Greece	Manager

Mr Gerontitis, Antonios	-	-	Greece	Director of Business Development

Shareholders

Name	ID/Reg. No	Nationality	Number of Shares	Percentage of Shares	Other Rel
P & P WATER HOLDINGS (GREECE) S.A.	800459136	Greece		100	No

Other Related Companies

Name	Country	Relation	Date Registered	Comment
P & P WATER HOLDINGS (GREECE) S.A.	Greece	Parent Company	-	-

Operation and Activities

Activity Code	Description
NACE Code	NACE Description
2521	Manufacture of plastic plates, sheets, tubes and profiles
4661	Wholesale of agricultural machinery, equipment and supplies
5154	Wholesale of hardware, plumbing and heating equipment and supplies
4669	Wholesale of other machinery and equipment

Line of business

SECTOR: Miscellaneous rubber & plastic products

The subject has the following activities:
Manufacture, representations, exclusive imports and trade of drip irrigation pipes, irrigation and water supply fittings and remote control systems for irrigation and water supply systems.

Awards:ISO 9001:2008, TUV AUSTRIA HELLAS SOLE SHAREHOLDER CO. LTD

Products:
Sprinkler systems - Production, Trade
Plastic pipes - Production, Trade
Plumbing fixtures - Production, Trade
Irrigation systems - Production, Trade
Precision, measurement & control appliances & instruments - Production, Trade

Import from	Payment terms	Percentage
Saudi Arabia, Cyprus, Korea (South), Hong Kong, Israel, Poland, Qatar, United States Minor Outlying Islands	-	N/A

Agencies, Suppliers & Brands	Country	Relation	Comment
INEOS	United Kingdom	Supplier
PLASTIKA KRITIS S.A.	Greece	Supplier	TAX NUMBER: 094046978
ARDEUTIKI K. ANAGNOSTOPOULOS S.A.	Greece	Customer	TAX NUMBER: 099659970
MEXICHEM	Brazil	Customer
SISTEMA AZUD SA	Spain	Customer
SOMAIR	France	Customer
UNIFER	Russian Federation	Customer

Banks	Swift code	Comments
PIRAEUS BANK S.A. - AG. PARASKEVIS AGIA PARASKEVI , Greece	0172009
PIRAEUS BANK S.A. - L. ATHINON 80 ATHENS, Greece	0172069
EFG EUROBANK ERGASIAS S.A. - OTHONOS STR. SYNTAGMA ATHENS, CENTER, Greece	0260025
NATIONAL BANK OF GREECE S.A. - PSYCHIKO PSYCHIKO, Greece	0110100
ALPHA BANK - AMAROUSSION AMAROUSSIO, Greece	0140146

Premises	Comprise of	Address	Square Meters	Type	Comment
Branch	Office	Ionia, PoBox 305, 192392, Thessaloniki, Greece	-	Leased	-
Branch	Office,Factory	Athinon - Lamias National Rd (55th km), Oinofyta, PoBox 34, 32011, Voiotia, Greece	-	Owned	LAND m2: 34181, BUILDINGS m2: 9884 PLANT: 2262054800 (Phone) PLANT: 2262054801 (Fax)
Registered & Headquarters Address	Office	36 Kifissias Ave, Maroussi, 15125, Attiki, Greece	-	Leased	-
Branch	Office	7th km National Rd. Larisas Karditsas, 41000 , Larisa, Greece	-	Leased	-

Employees	Mar 2018
Full Time Employees of Company	195

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 2015	December 2014
STATEMENT OF FINANCIAL POSITION
ASSETS
Non current Assets
Property, Plant & Equipment	21,115,590 €	22,670,296 €
Intangible assets	1,377,644 €	1,379,204 €
Investment in subsidiaries	34,448,978 €	34,534,793 €
Receivables	154,209 €	153,526 €
Total Non current Assets	57,096,421 €	58,737,819 €
Current Assets
Inventories	7,841,300 €	8,237,279 €
Receivables	23,261,878 €	20,455,162 €
Financial Assets at fair value through profit or loss	25,000 €
Prepayments	1,032,208 €	1,122,860 €
Other Assets	1,364,116 €	1,132,445 €
Cash at bank and in hand	735,450 €	1,605,611 €
Total current Assets	34,259,952 €	32,553,357 €
Total Assets	91,356,373 €	91,291,176 €
EQUITY AND LIABILITIES
Equity
Share capital	51,464,524 €	51,464,525 €
Other reserves	5,053,721 €	5,053,721 €
Retained Earnings	-6,638,092 €	-5,010,813 €
Total Equity	49,880,153 €	51,507,433 €
LIABILITIES
Non-current liabilities
Interest-Bearing Borrowings	1,075,343 €	1,850,923 €
Post-Employment Benefit Obligation	521,022 €	513,235 €
Deferred tax liabilities	1,785,791 €	1,347,075 €
Deferred income	656,509 €	758,509 €
Other liabilities	78,036 €	119,000 €
Total non-current liabilities	4,116,701 €	4,588,742 €
Current liabilities
Trade and other payables	10,776,010 €	7,776,125 €
Accrued Liabilities	2,702,789 €	2,105,917 €
Interest-Bearing Borrowings	23,168,563 €	4,314,170 €
Current Portion of Long Term Debt		20,383,000 €
Current tax liabilities	634,121 €	615,789 €
Other liabilities	78,036 €
Total current liabilities	37,359,519 €	35,195,001 €
Total Liabilities	41,476,220 €	39,783,743 €
Total Equity and liabilities	91,356,373 €	91,291,176 €
STATEMENT OF COMPREHENSIVE INCOME
Revenue	38,060,250 €	36,802,010 €
Cost of Sales	-26,874,306 €	-25,242,083 €
Gross Profit	11,185,944 €	11,559,927 €
Other income	680,046 €
Other expenses	-11,213,716 €	-9,773,684 €
Operating Loss/Profit	652,274 €	1,786,243 €
Finance costs	-1,804,746 €	-75,618 €
Net finance costs	-1,804,746 €	-75,618 €
Profit before tax	-1,152,472 €	1,710,625 €
Tax	-654,592 €	-768,018 €
Net profit/loss for the year*	-1,807,064 €	942,607 €
Other comprehensive income
Total comprehensive income for the year	-1,807,064 €	942,607 €
CASH FLOW STATEMENT
Profit before tax	-1,152,472 €	1,710,625 €
Adjustments for:
Cash flows (used in)/ from operations	-1,152,472 €	1,710,625 €
Net Cash flows (used in)/ from operating activities	-1,152,472 €	1,710,625 €
Net (decrease)/increase in cash and cash equivalents	-1,152,472 €	1,710,625 €
Cash and cash equivalents:
At end of the year	-1,152,472 €	1,710,625 €

Key Ratios

December 2015 December 2014

Profitability Ratios
Gross Profit margin on sales	0.29	0.31
Return on assets (ROA)	-0.02	0.01
Return on Equity	-3.62	1.83
Operating Income margin	1.71	4.85
Liquidity Ratios
Current Ratio	0.92	0.92
Quick Ratio	0.71	0.69
Turnover Ratios
Sales to Net Working Capital Ratio	-12.28	-13.93
Total assets turnover (times)	0.42	0.4
Debtor Days	223.08	202.87
Creditor Days	146.36	112.44
Leverage Ratios
Debt to Equity	0.83	0.77
Interest Coverage Ratio	1.64	-21.62

Additional Information

Conclusion

G.E.MI.: 373701000

COMPANY`S HISTORY
Company was established in 1983 having a legal seat at Marousi and is engaged in the manufacturing and trade of drip irrigation pipes, irrigation and water supply fittings.
Subject was founded following the merger of the firms: - ARDEFTIKI S.A., which was established in 1980 and EURODRIP LTD, established in 1979. In 2012 subject absorbed the firm HYDROCONTROLS S.A. On 3/9/2013 (Gov. Gaz. No. 05576/2013) a change of subject`s head office was published. The shareholder firm is controlled by the investment fund Paine & Partners Capital Fund III GP, Ltd. Subject`s shares had been quoted at Athens Exchange since 08.09.2000 until 11.7.2013. According to an official announcement on 10.01.2017 the company Rivulis Irrigation Ltd located at Israel and subject reached a final merger agreement between the two groups which will be active in 30 countries having 18 factories. The new company will has headquarters in Gvat, Israel and will operate under the name RIVULIS IRRIGATION L.T.D.

Company hasn`t published balance sheet for the fiscal year 2016.

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

Industry Developments

INDUSTRY HIGHLIGHTS
The domestic industry of plastic and rubber products is fragmented, consisting of many small and medium-sized units and few large companies. The activity of each company varies as the products
can be applied in several different sectors such as industry, constructions, agriculture or even households.
The wider sector comprises more than 1,500 companies. The annual production volume is around 700,000 tons (960,000 tons in 2009), while market value approximates ?2 billion (more than ?
2.5 billion 7 years ago).
The industry has important export activity (especially in the upper part), as approximately 20% of domestic production is exported (140,000 tons), a percentage that increases overtime.
The economic downturn that occurred in late 2008 and the fiscal consolidation measures reduced significantly domestic industrial activity, while negative impacts occurred in most sectors, plastic
industry being among them.
Specifically, according to the relative ELSTAT index, production volume of the specific sector was declining from the year recession emerged until 2013, as the demand for plastic products was
reduced. Afterwards, production index recovered in the next 2 years, indicating an increase of 4.9% in 2015 compared to the previous year. This trend was partly attributed the reduction of
production cost due to the lower prices of raw materials.
However, the improvement in the last year was achieved amid gradual deterioration of the political and economic conditions of the country, which culminated in the closure of banks for 3 weeks
in July and the imposition of restrictions on capital transfers.
Thus, the production process of several companies of the industry was hindered that month, since they were unable to settle payments promptly to their suppliers due to capital controls and
therefore acquire the necessary raw materials.
However, companies with export activity were able to offset this negative trend, while they didnÃŠÂ¼t have particular problems in the procurement of raw materials.
During 2015 Brent price recorded a cumulative decrease of 47% compared to the previous year, at $52.32 per barrel on average, leading to the reduction of production cost in the domestic plastics
industry. This trend, combined with stimulating global demand for many export-oriented companies, fueled the growth of production performance and the increase of gross and operating profits.

Financial benchmarking analysis
Short term bank debt increase as percentage of total assets, at 25.36% , (4.73% in 2014) , whereas the median ratio for the sector is estimated at 7.14% . As a percentage
of turnover it is at very high -and increased compared to 2014- levels, at 60.87% , whereas the median ratio for the sector is estimated at 12.72% (short term bank debt
to sales).
Total liabilities increase as percentage of total assets, at 45.40% , (43.58% in 2014) , whereas the median ratio for the sector is estimated at 47.40% . Debt to equity ratio
(leverage) is estimated at low -but increased compared to 2014- levels, at 0.83 to 1, whereas the median ratio for the sector is estimated at 0.87 to 1. Interest coverage
by operating profit is estimated at very low -and lower compared to 2014- levels, at 1.44 times, whereas the median ratio for the sector is estimated at 3.08 times.
Total current assets grow as percentage of total assets, at 37.50% , (35.66% in 2014) , whereas the median ratio for the sector is estimated at 57.97% . In the same
time, current liabilities are relatevily high as a portion of total assets (40.89%) driving the quick ratio to a low level of 0.92 , whereas the median ratio for the sector is
estimated at 1.77 . Inventory as percentage of total assets are 22.89% , (25.30% in 2014) , whereas the median ratio for the sector is estimated at 10.97% . In addition,
acid test ratio is relatevily low at 0.71 -but increased compared to 2014- , whereas the median ratio for the sector is estimated at 1.32 .
Trade cycle is estimated at 133 days, (125 days the median ratio for the sector) while its duration shortens compared to 2014 by 39 days . Total assets turnover slightly
improves at 0.42 times (0.40 in 2014), which compared to the sector (0.68 times) is relatively low.
Gross profit margin drops to 29.39% , (from 31.41% in 2014) , which is sufficiently high compared to the median ratio in the sector (24.46% ). EBITDA margin drops to 6.85% , (from 9.97% in 2014) , which is relatively low compared to the median ratio in the sector (8.79% ). Return on equity (RoE) is negative -2.31% -while the value was positive in 2014 (3.32%)- , whereas the median ratio in the sector is 7.62% .

Press and Media Information

No information available

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.04
UK Pound	1	INR 90.56
Euro	1	INR 79.78
Euro	1	INR 80.31

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

INFORMATION DETAILS

Analysis Done by :	VAR

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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