MIRA INFORM REPORT

Report No. :	509120
Report Date :	18.05.2018

IDENTIFICATION DETAILS

Name :	OOO NORTEC
Formerly Known As :	OOO PROMTEXSERVIS
Registered Office :	Kosmonavtov Avenue 12/9, Office 305, Altai Region, 656023 Barnaul
Country :	Russia
Financials (as on) :	31.12.2016
Date of Incorporation :	06.05.2006
Com. Reg. No.:	OGRN 1062222036326
Legal Form :	Limited Liability Company
Line of Business :	Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres
No. of Employees :	3,000 (group) [2018]

RATING & COMMENTS

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

MIRA’s Rating :

A

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

Status :	Good
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)
Russia	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

RUSSIA - ECONOMIC OVERVIEW

Russia has undergone significant changes since the collapse of the Soviet Union, moving from a centrally planned economy towards a more market-based system. Both economic growth and reform have stalled in recent years, however, and Russia remains a predominantly statist economy with a high concentration of wealth in officials' hands. Economic reforms in the 1990s privatized most industry, with notable exceptions in the energy, transportation, banking, and defense-related sectors. The protection of property rights is still weak, and the state continues to interfere in the free operation of the private sector.

Russia is one of the world's leading producers of oil and natural gas, and is also a top exporter of metals such as steel and primary aluminum. Russia is heavily dependent on the movement of world commodity prices as reliance on commodity exports makes it vulnerable to boom and bust cycles that follow the volatile swings in global prices. The economy, which had averaged 7% growth during the 1998-2008 period as oil prices rose rapidly, has seen diminishing growth rates since then due to the exhaustion of Russia’s commodity-based growth model.

A combination of falling oil prices, international sanctions, and structural limitations pushed Russia into a deep recession in 2015, with GDP falling by close by 2.8%. The downturn continued through 2016, with GDP contracting another 0.2%, but was reversed in 2017 as world demand picked up. Government support for import substitution has increased recently in an effort to diversify the economy away from extractive industries.

Source : CIA

SUMMARY
COMPANY NAME	OOO NORTEC
ADDRESS	Building	Street			Area			PO Box
	ASHK Building	Kosmonavtov Avenue 12/9, Office 305			Altai Region			656023 Barnaul
TEL/FAX	Verified Phones: (+7 3852) 221 955 / (+7 3852) 200 341
EMAIL/WEBSITE	Email: priemnay@ashk.ru / user0610@ashk.ru / Website: www.nortec-tyres.ru
ACTIVITY	NACE 2211 - Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres;
PRINCIPAL	Vladimir Anatolievich Yakovlev					Workforce
	Managing Director					3,000 (group)
LEGAL INFO	Date Of Est.		Reg. No.	Legal Form			Status
	06/05/2006		OGRN 1062222036326	LLC			Active
CAPITAL	CURRENCY			AMOUNT
	RUBLE (RUB)			800,000

IDENTIFICATION
CO. NAME	OOO NORTEC
TRADEMARK	Nortec Tyres / NorTec / POSHK / Altay Shina Nortec / Forward
ALSO KNOWN NAME (S)	LLC NORTEC / ASHK
FORMER NAME	OOO PROMTEXSERVIS
BUILDING	ASHK Building
STREET	Kosmonavtov Avenue 12/9, Office 305
AREA	Altai Region
POSTAL ADDRESS	656023 Barnaul
CITY	Barnaul
COUNTRY	Russia
TELEPHONE	(+7 3852) 221 955 ext. 6652 (Procurement Department) / 6174 (Accounting Department) / 6979 (HR Department)
FAX	(+7 3852) 200 341
VERIFIED EMAIL	priemnay@ashk.ru / user0610@ashk.ru / opt@poshk.ru / user1482@ashk.ru
WEBSITE	www.nortec-tyres.ru
BUSINESS HOURS	DAYS	OFFICE HOURS	BREAK TIME
	Mon-Fri	09:00-18:00	13:00-14:00
REGISTERED ADDRESS	Kosmonavtov Avenue 12/9, Office 305, Altai Region, 656023 Barnaul, Russia

SENIOR PERSONNEL
MANAGEMENT	NAME	POSITION
	Vladimir Anatolievich Yakovlev	Managing Director
	Oksana Gennadievna Dudorova	Head of Procurement Department
WORKFORCE	NO. OF EMPLOYEES	PERIOD
	3,000 (group)	05.2018

FINANCIAL SUMMARY
REVENUE	31/12/2017 (approx)	31/12/2016
	RUBLE 5,000,000,000	RUBLE 3,400,400,000
NET PROFIT / (LOSS)	31/12/2016	31/12/2015
	RUBLE 17,249,000	RUBLE (-1,535,000)
PROFIT BEFORE TAX	RUBLE 21,790,000 as of 31/12/2016
STOCK/INVENTORIES	RUBLE 572,612,000 as of 31/12/2016
FISCAL YEAR-END	31 December

LEGAL STATUS
INCORPORATION	06/05/2006
REGISTRATION NO.	C.R. NUMBER	ISSUED BY
	OGRN 1062222036326	Federal Tax Service
OTHER REGISTRATION NO.	INN 2222056512 (Tax Code) / KPP 222301001 / OKPO 94986697 (Statistics Code) / OKTMO 01701000001
AUTHORISED CAPITAL	AMOUNT	CURRENCY
	800,000	RUBLE
PAID-UP CAPITAL	AMOUNT	CURRENCY
	800,000	RUBLE
LEGAL FORM	Limited Liability Company
BUSINESS HISTORY	The Company was incorporated in Russia on 6 May 2006 under the name OOO PROMTEXSERVIS. Later on, subject changed its name to the present style. Subject’s origins of business activities can be traced back to 1996.
STATUS	Active
SHAREHOLDERS	NAME	PERCENTAGE
	1. OOO TPF Merkuriy Yarnykh Street 83 Altai Region Barnaul 656037 Est.: 09/03/2005 C.R. No.: OGRN 1052201876671 Tax Code: INN 2221067751 Managing Director: Denis Brytkov 2. Galina Sergeevna Cherepanova Nationality: Indian Tax Code: INN 222106341122	98.75% 1.25%

OPERATION
BANKERS	1. AO Bank GPB (Gazprombank) Stroytelei Avenue 16 Altai Region Barnaul 656015 Telephone: (+7 385) 236 1267 Acc. No.: 40702810500290001803 BIK: 045004783 Corr. Acc. No.: 7744001497/540243001 2. PAO BinBank Novosibirsk Branch Acc. No.: 40702810601660001858
ACTIVITY CODE (NACE)	2211 - Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres;
LINE OF BUSINESS	Manufacturers of tyre products, mainly for trucks, agricultural and industrial machinery, quads and light duty trucks under the trademark “NorTec” and “Altay Shina”. Subject currently manufacturers 150 types of tire products.
IMPORT FROM	mainly from China as well as from Europe, Italy and Germany.
EXPORT TO	India, Afghanistan, Mongolia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan, Iran, UAE, Syria, Belarus, Ukraine, Azerbaijan, Armenia, Latvia and Lithuania.
TRADE REFERENCES	1. Plastsea Machinery Co., Ltd. 8F, G1 № 288 Ningxia Road, Qingdao China 2. MARBO ITALIA S.p.A. 20010 Pogliano Milanese Via T.Tasso 25/27 Italy
FACILITIES	Owned premises comprising administrative offices, a manufacturing unit and storage facilities located on 55 hectares of land at the heading as well as 19 branch offices located throughout Russian Federation.
RELATED COMPANIES	Associates 1. OOO Sistema Kosmonavtov Avenue 12/9, Office 312 Altai Region Barnaul 656023 Russian Federation Est.: 05/04/2017 C.R. No.: OGRN 1172225013840 Tax Code: INN 2223617111 Managing Director: Sergey Spesitsev 2. OOO PO Altaiskiy Shinniy Kombinat Kosmonavtov Avenue 12/9, Office 312 Altai Region Barnaul 656023 Russian Federation Est.: 28/12/2017 C.R. No.: OGRN 1172225050458 Tax Code: INN 2223621728 Managing Director: Igor Kanakov 3. OOO POSHK Proezd Nauchniy 10, Room 515 Moscow 117246 Est.: 28/07/2006 C.R. No.: OGRN 1062224065749 Tax Code: INN 2224104360 Managing Director: Anatoliy Matsepa 4. OOO Investkom Krasnoselskaya Street 40/12 Moscow Est.: 03/06/2011 C.R. No.: OGRN 1117746435630 Tax Code: INN 7701921309 Managing Director: Sergey Chukanov Former Associates 1. OOO Forward Kosmonavtov Avenue 12/7 Altai Region Barnaul 656023 Russian Federation Est.: 04/04/2006 C.R. No.: OGRN 1062223010046 Tax Code: INN 2223053641 Managing Director: Elena Tarasova Status: Liquidated Date of Liquidation: 22/03/2018 2. AO PO Altai Tire Plant Kosmonavtov Avenue 12 Altai Region Barnaul 656023 Russian Federation Est.: 18/01/2007 C.R. No.: OGRN 1072223000200 Tax Code: INN 2223057318 Status: Liquidated Date of Liquidation: 28/12/2017

FINANCIAL INFORMATION
CURRENCY	RUBLE
NOTES	Balance sheets as at 31 December 2016 showed : 31/12/2016 31/12/2015 (in RUBLE) ASSETS Non-current assets Other non-current assets 1,810,000 0 Total non-current assets 1,810,000 0 Current assets Stock 572,612,000 0 Value added tax on purchased valuables 81,767,000 1,370,000 Trade receivables 1,802,354,000 15,117,000 Cash equivalents 3,841,000 655,000 Total current assets 2,460,574,000 17,142,000 TOTAL ASSETS 2,462,384,000 17,142,000 EQUITY & LIABILITIES Share capital 800,000 800,000 Retained earnings 23,422,000 4,020,000 Total Equity 24,222,000 4,820,000 Long-term liabilities Deferred tax liabilities 249,000 0 Total long-term liabilities 249,000 0 Short-term liabilities Accounts payable 2,437,913,000 12,322,000 Total Short-term Liabilities 2,437,913,000 12,322,000 TOTAL EQUITY & LIABILITIES 2,462,384,000 17,142,000 INCOME STATEMENT Revenue 3,400,400,000 137,869,000 Cost of Sales (3,245,675,000) (127,831,000) Gross Profit 154,725,000 10,038,000 Commercial expenses (96,266,000) (10,626,000) Administrative expenses (27,445,000) 0 Profit(loss) from sales 31,014,000 (588,000) Other income and expenses Interest income 7,000 0 Other income 10,103,000 1,979,000 Other expenses (19,334,000) (2,447,000) Profit(loss) before taxation 21,790,000 (1,056,000) Deferred tax liabilities (249,000) 0 Current income tax (4,292,000) (479,000) Net Profit(loss) 17,249,000 (1,535,000

SPECIAL REMARKS
INTERVIEWED	Oksana Gennadievna Dudorova (Head of Procurement Department).
COMMENTS	You enquired on: LLC NORTEC. Please note that this name applies to an English translation of the subject’s name. Subject’s correct registered name is as per heading.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.72
UK Pound	1	INR 91.65
Euro	1	INR 79.89
RUB	1	INR 1.09

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

INFORMATION DETAILS

Analysis Done by :	PRI
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.