MIRA INFORM REPORT

Report Date :

16.09.2008

IDENTIFICATION DETAILS

Name :	ARCSEL, LTD.

Registered Office :	Per. Vyatskiy 2-A 83017 Donetsk

Country :	Ukraine

Financials (as on) :	01.04.2008

Date of Incorporation :	2000

Com. Reg. No.:	31206116

Legal Form :	Limited Liability Company

Line of Business :	Civil Engineering

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	EUR 100.000,00

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

name of the company

International Name: Arcsel, Ltd.
TOVARISTVO Z OBMEZHENOYU VIDPOVIDALNISTYU ARKSEL

Principal Address

per. Vyatskiy 2-A
83017 Donetsk
Ukraine
Tel: +380-62-3322650, +380-62-3829407, +380-62-3127389
Fax: +380-62-3829449

Registered office:
per. Vyatskiy 2-A
83017 Donetsk
Ukraine

ICON number

81217060

National ID

31206116

VAT number

312061105632

Statistic number

31206116

CREDIT INFORMATION SUMMARY

Insolvency Information:

According to available information sources the company is not in a insolvency/preliminary/debt regulation proceeding.

Maximum Credit:

EUR 100.000,00

Payment Practices:

Payments are made according to terms

Debt Collection:

There is no record of any debt collection action against this company exceeding a single case volume of EUR 500.

COMPANY DETAILS

Established:

2000

Registration:

No. 31206116
08.11.2000
Local Administration, Donetsk, Ukraine

Legal Form:

Limited Liability Company

Capital:

Nominal capital:

UAH 15.010.211,00

since 13.06.2003

Shareholders:

Full Name	Function	Address	Equity capital
Huntsville Trading limited	Shareholder	United Kingdom	49,00%
Universalne Obladnannya Registration: No. 5400783, 17.06.1998, Local Administration, Ukraine	Shareholder	Vyatskiy lane 2A 83017 Donetsk Ukraine	42,00%

Private persons:

Mr.Aleksandr Mihailovich Alimov , 1950 - 3%
address: Kievskaya obl., Boyarka, Krupskoy,23.

Mr.Aleksandr Mihailovich Nikitenko , 1960 - 3%
address: Kiev, Lomonosova,30, apt.1.

Mr.Sanko-Novik Andrey Anatolevich, 1960 -3%
address: Kiev, Piterskaya,6, apt.42.

Management:

Full Name	Function	Address
MIKITENKO Aleksandr Mihaylovich Nationality: UA	Director (signature right)

KEY DATA ON OPERATIONS

Subject of Operation:

NACE
  main activity:
  4200 Civil engineering

  2500 Manufacture of fabricated metal products, except machinery and equipment
  2592 Manufacture of light metal packaging
  2599 Manufacture of other fabricated metal products n.e.c.
  2510 Manufacture of structural metal products

Production of hardware
NACE codes given are based on the most recent NACE Revision 2.

Key Data:

Amounts shown in Ukraine Hryvnia (UAH)
	01.01.2008-01.04.2008	2007	2006	2004
Turnover	8.632.900	34.493.100	21.368.900	12.000.000
Noncurrent assets total	9.313.000	9.552.900	10.162.100	11.013.800
Capital and reserves total	11.655.700	11.374.200	11.763.700	13.215.700

Workforce:

	01.01.2008	08.11.2005
Total workforce	137	135

Imports:

Austria

Switzerland

China

Germany

Korea, Republic of

Poland

Russian Federation

Sweden

Slovakia

IMPORT
for 2005 UAH 7,810,964
for 2006 UAH 5,845,585
for 2007 UAH 10,728,833
wire, instruments

Exports:

Belarus, Georgia, United Kingdom

Kazakhstan

Moldova, Republic of

Russian Federation

EXPORT
for 2005 UAH 65,425
for 2006 UAH 4,417,109
for 2007 UAH 6,161,193
electrodes, wire

Major Customers:

Main consumers:
ODO SPETSKOMPLEKTPROFI (Belorus)
TOV STROISTAL (Russia)
EUROPEAN WIDE TRADE (UK)
TOV GOKA (Georgia)
AT ELMERON (Moldova)
SRL DAFSAN-GRUP (Moldova)
TOV MEGA STAL (Russia)
TOV SPETSSPLAV (Russia)

Major Suppliers:

Suppliers/partners:
DRAHTZUG STEIN,WIRE & WELDINGGMBH & CO.KG (Germany)
SHINE Co. Ltd. (Korea)
VAT METALURGIChESKII ZAVOD ELEKTROSTAL (Russia)
ALPICOM S.A. (Switzerland)
FLUORIT TEPLICE s.r.o. (Czechia)
GSG GMBH (Germany)
VAT METALURGIChESKIY ZAVOD ELEKTROSTAL
(Russia)

Comment to Real Estate:

As at 1.04.2008 (UAH):
-residual value 7,944,600
-original value 15,483,800
-tear & wear 7,539,200

FINANCIAL INFORMATION

Financials:

Amounts shown in Ukraine Hryvnia (UAH)		01.01.2008-01.04.2008	2007	2006	2004
	BALANCE SHEET
	ASSETS
I.	NON-CURRENT ASSETS
-	residual value	1.355.500,00	1.344.700,00	1.344.800,00
	Construction-in-progress	12.900,00	34.000,00	20.800,00
	Tangible assets				9.668.700,00
-	residual value	7.944.600,00	8.174.200,00	8.796.500,00
	Noncurrent assets total	9.313.000,00	9.552.900,00	10.162.100,00	11.013.800,00
II.	CURRENT ASSETS
	Stock				4.828.300,00
-	raw materials, consumables and supplies	3.051.400,00	3.188.000,00	2.192.900,00
-	goods in process	8.300,00	8.300,00	8.900,00
-	finished goods	3.533.800,00	3.030.900,00	3.644.300,00
-	merchandise	97.700,00	76.800,00	48.500,00
-	net realizable value	573.600,00	587.600,00	684.300,00
-	acquisition cost	573.600,00	587.600,00	684.300,00
-	receivables due from public authorities (taxes etc.)	57.700,00	5.000,00	84.200,00
	Other current accounts receivable	382.000,00	584.500,00	389.500,00
-	funds in local currency	239.700,00	277.400,00	111.100,00
-	funds in foreign currencies	61.500,00	196.700,00	82.900,00
	Other current assets	98.900,00	60.300,00	420.700,00
	Current assets total	8.104.600,00	8.015.500,00	7.667.300,00	5.670.100,00
	ASSETS TOTAL	17.417.600,00	17.568.400,00	17.829.400,00	16.683.900,00
	EQUITY AND LIABILITIES
I.	CAPITAL AND RESERVES
	Authorized capital	15.010.200,00	15.010.200,00	15.010.200,00
	Share capital				15.010.200,00
	Retained earnings (Uncovered loss)	-3.354.500,00	-3.636.000,00	-3.246.500,00
	Capital and reserves total	11.655.700,00	11.374.200,00	11.763.700,00	13.215.700,00
III.	Long-term liabilities
	Long-term liabilities				0,00
IV.	Current liabilities
	Short-term amounts owed to credit institutions	2.668.500,00	2.246.200,00	2.702.500,00
	Trade creditors	2.444.500,00	3.049.200,00	1.286.900,00
-	advanced payments	410.400,00	571.100,00	1.841.100,00
-	liabilities to public authorities (taxes etc.)	25.300,00	113.200,00	18.900,00
-	social security payable	63.200,00	65.500,00	53.600,00
-	accrued payroll	129.100,00	136.700,00	122.900,00
	Other short-term liabilities	20.900,00	12.300,00	39.800,00
	Current liabilities total	5.761.900,00	6.194.200,00	6.065.700,00	3.468.200,00
	EQUITY AND LIABILITIES TOTAL	17.417.600,00	17.568.400,00	17.829.400,00	16.683.900,00
	PROFIT AND LOSS ACCOUNT
	Sales revenue (Income from sales of goods, works, services)	8.632.900,00	34.493.100,00	21.368.900,00	12.000.000,00
	Value added tax	1.248.800,00	4.674.600,00	2.822.900,00
	Other compulsory payments		27.000,00	14.500,00
	Net sales revenue	7.384.100,00	29.791.500,00	18.531.500,00
	Cost of goods, work, services	6.336.200,00	27.388.900,00	17.122.000,00	9.741.900,00
	Gross
	profit	1.047.900,00	2.402.600,00	1.409.500,00
	Other operating income	233.200,00	5.993.600,00	1.346.200,00
	Administrative and management costs	434.200,00	1.650.600,00	1.770.400,00
	Distribution costs	117.500,00	541.600,00	387.800,00
	Other operating charges	378.000,00	6.113.000,00	1.623.500,00
	Operating
	profit	351.400,00	91.000,00
	loss			1.026.000,00
	Other income	52.800,00		16.700,00
	Capital participating expenses	80.000,00	387.600,00	449.100,00
	Other charges	28.000,00	1.700,00	16.700,00
	Financial result from ordinary activity before taxation
	profit	296.200,00
	loss		298.300,00	1.475.100,00
	Ordinary activity income-tax	14.700,00	91.200,00	8.500,00
	Financial result from ordinary activity
	profit	281.500,00
	loss		389.500,00	1.483.600,00
	Net
	profit	281.500,00			100.900,00
	loss		389.500,00	1.483.600,00
	Operating charges details
	Tangible expenses	5.753.100,00	22.177.200,00	13.543.300,00
	Payroll costs	512.700,00	2.202.900,00	13.543.300,00
	Allocation to social needs	209.800,00	920.600,00	698.300,00
	Amortization charges	350.400,00	1.429.200,00	1.384.000,00
	Other operating charges	378.000,00	6.113.000,00	1.623.500,00
	OPERATING CHARGES TOTAL	7.490.100,00	28.983.000,00	19.017.900,00

Approximate Exchange Rates:

2007: 6,9179 UAH = 1 EUR
2006: 6,3369 UAH = 1 EUR
2007: 5,05 UAH = 1 USD
2006: 5,05 UAH = 1 USD

Bankers:

Prominvestbank - Account no. 26008301751275, 26064301751275
Branch in Donetsk

Kalininskiy branch of AKB Natsionalniy Kredit
UKRAINE, 83000, Donetsk, Komsomolskii av., 21
- acc. 26005301611959 - currency.account.
- acc. 26061301611959 - settlement.account.

Ratios:

	01.01.2008-01.04.2008	2007	2006	2004
Return on sales, % Profit or loss for fiscal period / Turnover 100*	-	1,13	6,94	-
Return on investment, % Profit or loss for fiscal period / Capital and reserves total 100*	-	3,42	12,61	-
Current assets turnover, % Turnover / Current assets 100*	106,52	430,33	278,70	211,64
Net working capital Current assets - Short term liabilities	2.342.700	1.821.300	1.601.600	2.201,90
Leverage Equity / Total assets	0,67	0,65	0,66	0,79
Current ratio Current assets / Short term liabilities	1,41	1,29	1,26	1,63
Quick ratio (Current assets - Total stock) / Short term liabilities	-	-	-	0,24
Debt-to-equity ratio (Short term liabilities + Long term liabilities) / Capital and reserves total	-	-	-	0,26

ADDITIONAL INFORMATION

Contact With Company:

There is no further information on the company at the sources available.

General data in this report have been taken from official sources, internet and directories available.

Additional information:

Decision number: 12661050001013599

Certificates:

Certificate # 7601170 issued 29.12.2005

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.46.34
UK Pound	1	Rs.82.96
Euro	1	Rs.65.82

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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 and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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