MIRA INFORM REPORT

Report No. :	499743
Report Date :	28.03.2018

IDENTIFICATION DETAILS

Name :	STONE GROUP INTERNATIONAL (MARMOR SG SA)
Registered Office :	Thessalonikis - Kavalas Rd (18th km), Kavalari, 57200 Langadas, PO Box 106, Thessaloniki
Country :	Greece
Financials (as on) :	December 2016
Date of Incorporation :	15.08.1999
Com. Reg. No.:	43607/062/Β/99/203
Legal Form :	SA - Société Anonyme
Line of Business :	Cutting, shaping and finishing of ornamental and building stone, Wholesale of wood, construction materials and sanitary equipment
No. of Employees :	230

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 :	No Complaints
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	C1	C1

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	STONE GROUP INTERNATIONAL (MARMOR SG SA)
English Name	STONE GROUP INTERNATIONAL (MARMOR SG SA)
Trade Name	STONE GROUP INTERNATIONAL
Registered Address	Thessalonikis - Kavalas Rd (18th km), Kavalari, 57200 Langadas, PO Box 106, Thessaloniki, Greece
Activities	Cutting, shaping and finishing of ornamental and building stone, Wholesale of wood, construction materials and sanitary equipment
Company Status	Registered and operational
Company Reg. No	43607/062/Β/99/203
Company Reg. Date	15/08/1999
Start Date	01/01/1981
Tax Reg. No	092413634
Telephone	+30 2394020440 / 2394052006 (warehouse)	Fax	+30 2394052733
E-mail	info@stonegroup.gr	Websites	www.stonegroup.gr

Payment Behaviour

Payment habits

No Complaints

Financial Summary

Basic Financial Figures	2016 (EUR)	2015 (EUR)
Revenue	32,894,687	32,984,060
Gross Profit	11,860,494	9,674,016
Operating Profit	4,846,199	3,571,073
Profit Before Tax	3,620,583	2,597,433
Net Profit	2,681,944	1,438,940
Working Capital	13,018,253	9,983,409
Total Equity - Net Worth	16,484,094	13,133,014
Long-term Debt	13,583,399	8,536,861
Accounts Payable	0	0
Accounts Receivable	20,655	4,515,835
Days Sales Outstanding	0.229188227266	49.972009964813
Revenue Per Employee	15,863,506	10,466,709
Trend	EVEN	EVEN
Key Ratios	2016	2015
Gross Profit margin on sales	36.06	29.33
Current Ratio	1.74	1.59
Solvency Ratio	0.08	0.05
Debtor Days	96.62	78.8
Creditor Days	171.09	117.52
Probability of Default	Safe zones	Safe zones

Legal Status

CR Number	43607/062/Β/99/203
Legal Type	SA - Société Anonyme
Auditors	Baker Tilly Greece SA MOUDIOS KONST. ANASTASIOS

Capital

Authorized Capital

2,018,864 EUR

Corporate Structure

Directors

Name	Position	ID	Occupation	Age	Nationality	Other Rel.	Appointment date
Mrs Antoniadou, Eleni Ath.	Director	047211760 (Reg. No)	Board Member	-	Greece	No	-
Tzanidis, Stavros	Director	-	Business Development Director	-	Unknown	No	-
Mr Antoniadis, John Ath.	Director	070775892 (Reg. No)	Chairman of the Board	-	Greece	No	-
Comment: General Manager
Mr Rigopoulos, Elias Kon.	Director	045193060 (Reg. No)	Chief Executive Officer (CEO)	-	Greece	No	-
Katsikiotis, Basil	Director	-	Chief Financial Officer	-	Unknown	No	-
Iossifidis, Iossif	Director	-	Marketing Director	-	Unknown	No	-

Shareholders

Name	ID/Reg. No	Nationality	Number of Shares	Percentage of Shares	Other Rel
Mr Antoniadis, John Ath.	070775892 (Reg. No.)	Greece		50.73
Other Directorship of: Antoniadis, John Ath.
No information available
Other Shareholding of: Antoniadis, John Ath.
No information available
Mr Antoniadis, Athanassios	017458547 (Reg. No.)	Greece		46.36
Other Directorship of: Antoniadis, Athanassios
No information available
Other Shareholding of: Antoniadis, Athanassios
No information available
Mrs Antoniadou, Eleni Ath.	047211760 (Reg. No.)	Greece		2.91
Other Directorship of: Antoniadou, Eleni Ath.
No information available
Other Shareholding of: Antoniadou, Eleni Ath.
No information available

Other Related Companies

Name	Country	Relation	Date Registered	Comment
BIRROS HELLENIC MARBLE S.A.	EL	Affiliated Company	-	-

Operation and Activities

Activity Code	Description
NACE Code	NACE Description
2670	Cutting, shaping and finishing of ornamental and building stone
5153	Wholesale of wood, construction materials and sanitary equipment

Line of business

SECTOR: Quarries & mines

The subject has the following activities:
Working, imports and trade of marble, granite, travertine, onyx

Products:
Marble decorative goods - Trade
Slabs & tiles - Production
Granite slabs & tiles - Production
Marble sanitary ware - Trade
Marble - Production
Marble slabs & tiles - Production

Awards / Certifications: ISO 9001:2008, TUV CERT CERTIFICATION BODY OF RWTUV SYSTEMS G.M.B.H.

Export to	Payment terms	Percentage
Australia, Brazil, Canada, China, Cyprus, Colombia, India, UAE, Japan, Mexico, Qatar, United States Minor Outlying Islands	-	N/A

Import from	Payment terms	Percentage
Brazil, China, Egypt, India, Iran (Islamic Republic Of), Pakistan	-	N/A

Agencies, Suppliers & Brands	Country	Relation	Comment
LAZARIDIS, G., DRAMA MARMOR A.G.	Greece	Supplier	Tax Number:094030317

Banks	Swift code	Comments
PIRAEUS BANK S.A. - LAGADA LAGADAS, Greece	0172268
EFG EUROBANK ERGASIAS S.A. - STAVRUPOLI STAVRUPOLI , Greece	0260125
NATIONAL BANK OF GREECE S.A. - THERMI THERMI THES/NIKI, Greece	0110863
NATIONAL BANK OF GREECE S.A. - ORAIOKASTRO (THESSALONIKI) OREOKASTRO , Greece	0110741
NATIONAL BANK OF GREECE S.A. - LANGADAS LAGKADAS, Greece	0110395
ALPHA BANK - KALAMARIA KALAMARIA , Greece	0140483
ALPHA BANK - OREOKASTRON OREOKASTRO, Greece	0140487

Premises	Comprise of	Address	Square Meters	Type	Comment
Branch	Factory	Kavalari, Langadas, 57200 Thessaloniki, Thessaloniki, Greece	-	Owned	LAND m2: 15000, BUILDINGS m2: 6100
Registered Address	Office	Thessalonikis - Kavalas Rd (18th km), Kavalari, 57200 Langadas, PoBox 106, 57200, Thessaloniki, Greece	-	Owned	LAND m2: 25050, BUILDINGS m2: 8500

Employees	Mar 2018
Full Time Employees of Company	230

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
Property, Plant & Equipment	12,856,309 €	8,559,820 €
Intangible assets	315,789 €	290,743 €
Investment in subsidiaries	6,136,594 €	249,916 €
Receivables	20,655 €	4,515,835 €
Total Non current Assets	19,329,347 €	13,616,314 €
Current Assets
Inventories	16,605,435 €	15,785,669 €
Receivables	8,707,986 €	7,121,097 €
Financial Assets at fair value through profit or loss	75,600 €	112,000 €
Other Assets	51,626 €	36,204 €
Refundable taxes	2,417,427 €	2,811,968 €
Cash at bank and in hand	2,777,599 €	1,040,217 €
Total current Assets	30,635,673 €	26,907,155 €
Total Assets	49,965,020 €	40,523,469 €
EQUITY AND LIABILITIES
Equity
Share capital	3,182,704 €	3,182,694 €
Other reserves	3,796,105 €	3,679,731 €
Retained Earnings	9,505,285 €	6,270,589 €
Total Equity	16,484,094 €	13,133,014 €
LIABILITIES
Non-current liabilities
Borrowings	13,583,399 €	8,536,861 €
Post-Employment Benefit Obligation	247,208 €	178,841 €
Deferred tax liabilities	1,314,793 €	986,758 €
Deferred income	718,106 €	764,249 €
Total non-current liabilities	15,863,506 €	10,466,709 €
Current liabilities
Trade and other payables	9,859,677 €	7,505,168 €
Accrued Liabilities	93,738 €	128,630 €
Interest-Bearing Borrowings	3,555,852 €	4,946,117 €
Current Portion of Long Term Debt	2,536,686 €	1,258,813 €
Financial liabilities at fair value through profit or loss	336,333 €	380,946 €
Current tax liabilities	1,188,164 €	1,283,814 €
Other liabilities and charges	46,970 €	1,420,258 €
Total current liabilities	17,617,420 €	16,923,746 €
Total Liabilities	33,480,926 €	27,390,455 €
Total Equity and liabilities	49,965,020 €	40,523,469 €
STATEMENT OF COMPREHENSIVE INCOME
Revenue	32,894,687 €	32,984,060 €
Cost of Sales	-21,034,193 €	-23,310,044 €
Gross Profit	11,860,494 €	9,674,016 €
Other income	229,614 €	371,848 €
Other expenses	-7,243,909 €	-6,474,791 €
Operating Loss/Profit	4,846,199 €	3,571,073 €
Finance costs	-1,226,385 €	-992,135 €
Net finance costs	-1,226,385 €	-992,135 €
Income (Loss) from Investments	769 €	18,495 €
Profit before tax	3,620,583 €	2,597,433 €
Tax	-938,639 €	-1,158,493 €
Net profit/loss for the year*	2,681,944 €	1,438,940 €
Other comprehensive income
Total comprehensive income for the year	2,681,944 €	1,438,940 €
CASH FLOW STATEMENT
Profit before tax	3,620,583 €	2,597,433 €
Adjustments for:
Cash flows (used in)/ from operations	3,620,583 €	2,597,433 €
Net Cash flows (used in)/ from operating activities	3,620,583 €	2,597,433 €
Net (decrease)/increase in cash and cash equivalents	3,620,583 €	2,597,433 €
Cash and cash equivalents:
At end of the year	3,620,583 €	2,597,433 €

Key Ratios	December 2016	December 2015
Profitability Ratios
Gross Profit margin on sales	0.36	0.29
Return on assets (ROA)	0.05	0.04
Return on Equity	16.27	10.96
Operating Income margin	14.73	10.83
Liquidity Ratios
Current Ratio	1.74	1.59
Quick Ratio	0.8	0.66
Turnover Ratios
Sales to Net Working Capital Ratio	2.53	3.3
Total assets turnover (times)	0.66	0.81
Debtor Days	96.62	78.8
Creditor Days	171.09	117.52
Leverage Ratios
Debt to Equity	2.03	2.09
Interest Coverage Ratio	-1.95	-1.62

Additional Information

Conclusion

G.E.MI.: 38220505000

Former Names / Date of Change:
MARMOR KAMIN SA / 08/01/2010
ANTONIADIS A.-SACHANAS I. O.E. / 17/08/1999

Trading Behavior:
Year:2015
Mortgages: 2
Amount: 2,000,300 EUR (Open fact)

COMPANY`S HISTORY:
It was established in 1981,in Thessaloniki, initially as general partnership, under the name ANTONIADIS A.-SACHANAS I. OE and main line of business the trade of building materials. In 1999, subject converted to societe anonyme company,under the name MARMOR KAMIN SA with main line of business the process and trade of marbles, granite and the construction of fireplaces. In 2000, its head office moved in owned premisses in Kavalari area,Thessaloniki and started its exporting activities.In 2010, its name changed to MARMOR SG SA and distinctive title MARMOR SG.In 2012, its distinctive title changed again to STONE GROUP INTERNATIONAL. On 31/12/2015 (Business Registration Number:524340/31.12.2015) subject absorbed the company STONE GROUP HELLAS S.A. which was activated in the Imports and wholesale trade of marble and granite. Until 31/12/2015 subject`s shareholder by 50% has been STONE GROUP HELLAS S.A. (VAT number: 998245097), which was absorbed by subject. On 28/12/2017 (Business Registration Number:1288342/28.12.2017) subject absorbed the firm PETRA SG S.A.
According to principal`s statement, subject will aquire 50% of the firm DANAI LTD (Tax. Reg. 800540461) in the future.

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

Industry Developments

INDUSTRY HIGHLIGHTS
In Greece there are 195 public, municipal / community and private quarries (36 of them operate exclusively for the restoration of the environment).
The largest companies are integrated with owned mines, while some companies have moved their production activity abroad.
The quarries and mines sector is significantly extroverted, as exports account for almost 70% of the production volume, while the respective value is estimated at around ?1 billion per year.
Middle East countries and China are the main destinations, as they show significant growth in recent years. The largest mining companies have strong presence in European and global market,
especially in segments like marble, bauxite, aluminum and nickel.
The economic recession prevailing in the European and Greek market since late 2008 has a negative effect on the demand for mineral raw materials in sectors such as steel industry and construction,
as reflected in the decline of the production volume of the sector in the last five years.
Moreover, according to the Greek Mining Enterprises Association, in 2013 international markets of raw materials were unstable due to (except the aforementioned declining consumption in many
countries of EU): a) the significant decrease of prices of metals (mainly aluminum and ferronickel), b) the increasing energy costs in many European industries, with the latter operating at low levels
or ceasing their activities and c) the unstable environment in global steel production, a sector that traditionally consumes significant amounts of mineral raw materials.
However, despite these negative conditions, Greek exports of mining enterprises reached high levels, occupying an increasing proportion of their turnover, due to the increasing demand from
developing economies (Asia, Middle East and the former Soviet Union). It is estimated that total exports of the sector increased by 5% in 2013, while the upward trend is forecasted to prevail
in 2014 as well.
Thus, companies with export-oriented strategy, operating in the segment of marble, aluminum, bentonite, magnesite etc. proved resilient to the recession that affects EU and Greece.
Indicatively, exports of marble exceeded ?240 million in 2013, from ?212 million in the previous year, while the segment exhibits a positive trade balance (imports amounted to ?30 million). Exports
of aluminum rose slightly to ?197 million, from ?190 million in 2012, while there was an increase in alumina to ?105 million, compared to ?90 million last year. On the contrary, exports of nickel decreased to ?315 million, despite the satisfactory levels of international demand, as the price of the material was significantly reduced, exacerbating the losses of LARCO SA.
Regarding the domestic market, economic recession and fiscal policy adjustment of the country have caused continuous decline in the activity of sectors such as construction and cement industry.
Therefore, demand for aggregates (e.g. gypsum, pumice etc.) features intense reduction, while their production volume declined from 90 million tons in 2006 to a level below 30 million tons.
Moreover, Greek steel industries feature high energy costs, as charges for electricity have increased considerably after 2008; hence, their operation during peak hours has become loss-making.
Under the above conditions, total production of the companies - members of the Greek Mining Enterprises Association decreased last year by about 10%, at 73.1 million tons, after a mild rise in 2012. This decline resulted primarily from the reduction of lignite mining, a sector constituting about 60% of the total. Production volume was lower than 5 years ago by 30%, or 31.4 million tons.

Financial benchmarking analysis:
Short term bank debt decrease as percentage of total assets, at 7.12% , (12.21% in 2015) . As a percentage of turnover it is -and lower compared to 2015- levels, at 10.81% .
Total liabilities decrease as percentage of total assets, at 67.01% , (67.59% in 2015) , whereas the median ratio for the sector is estimated at 48.31% . Debt to equity ratio (leverage) is estimated at high -but lower compared to 2015- levels, at 2.03 to 1, whereas the median ratio for the sector is estimated at 0.68 to 1. Interest coverage by operating profit is estimated at rather high -and increased compared to 2015- levels, at 4.58 times, whereas the median ratio for the sector is estimated at 6.42 times.
Total current assets decrease as percentage of total assets, at 61.31% , (66.40% in 2015) . driving the quick ratio to a moderate level of 1.74 -but increased compared to 2015- , whereas the median ratio for the sector is estimated at 1.90 . Inventory as percentage of total assets are 54.20% , (58.67% in 2015) . In addition, acid test ratio is
relatevily low at 0.80 -but increased compared to 2015- , whereas the median ratio for the sector is estimated at 1.33 .
Trade cycle is estimated at 190 days, (314 days the median ratio for the sector) while its duration extents compared to 2015 by 24 days . Total assets turnover drops to
0.66 times (0.81 in 2015), which compared to the sector (0.38 times) which is very high.
Gross profit margin improves at 36.06% , (from 29.33% in 2015) , which is in line with the median ratio in the sector (34.80% ). EBITDA margin improves at 17.08% , (from 12.85% in 2015) , which is very high compared to the median ratio in the sector (7.69% ). Return on equity (RoE) improves at 21.96% , (from 19.78% in 2015) , which is very high compared to the median ratio in the sector (9.06% ).

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

Press and Media Information

No information available

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.80
UK Pound	1	INR 92.25
Euro	1	INR 80.76
Euro	1	INR 80.66

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

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TPT

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.