MIRA INFORM REPORT

Report Date :

15.04.2011

IDENTIFICATION DETAILS

Name :	DUCKWALL ALCO STORES INC

Formerly Known As :	A. L. DUCKWALL STORES CO

Registered Office :	2101 SW 21st Street, Topeka, KS 66604, USA (Incorporators)

Country :	United States

Financials (as on) :	31.01.2010

Years of Establishment :	1901

Legal Form :	Corporation for Profit.

Line of Business :	Broad Line Retailer.

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 :	USD 2,000,000
Status :	Satisfactory
Payment Behaviour :	Usually 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 – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

United States

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

GEOPOLITICS - UNITED STATES

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal

Economic Risk: Nil

Currency: USD

Branch Situation:Stable

IDENTIFICATION

Ordered as:	Duckwall Alco Stores Inc
Address in the order:	401 Cottage Albilene, KS 67410, USA
Comments on data supplied:	Please note that the address provided is incorrect. The correct headquarters` address is listed below.
Legal Name:	DUCKWALL-ALCO STORES, INC.

Legal Address	2101 SW 21st Street, TOPEKA, KS 66604, USA (incorporators)
Operative Address	401 Cottage Avenue, Abilene, KS 67410, USA (headquarters)
Telephone:	(785) 263-3350	ID :	0067603
Fax:	(785) 263-3350	Legal Form:	Corporation for Profit
Email:	http://www.duckwall.com/	Registered in:	Kansas
Website:	info@duckwall.com	Date Created:	1901
Manager:	Richard E. Wilson, President and CEO	Date Incorporated:	June 2nd, 1915
Staff:	4,150	Stock:	3,826,852
		Value:	0.0001 USD
Activity:	Broad line retailer.

BANKS

Name of the Bank	Bank of America
BUSINESS
HISTORY
	The company was created in 1901. The company previous name was "A. L. DUCKWALL STORES CO."
PRINCIPAL ACTIVITY
	The company is engaged in broad line retailing. It operates ALCO stores that offer a line of merchandise consisting of approximately 35,000 items.
Products/Services description:
	The products deistributed include: automotive, candy, crafts, domestics, electronics, fabrics, furniture, hardware, jewelry, pre-recorded music and video, and stationery products, among others.
Sales are:
	Retail
Brands:
	Duckwall ALCO
Clients:
	General clientele.
Suppliers:
	The company has 1,700 suppliers.
Operations area:
	National
The subject employs 4,150 employee(s)
PAYMENTS
	regular
Headquarters
	The legal address of the company is that of the registrant officer: 2101 SW 21st Street, TOPEKA, KS 66604, USA However, the company is headquartered at: 401 Cottage Avenue, Abilene, KS 67410, USA
Surface area:
	352,000 square feet
Branches:
	The company operates 214 ALCO stores in 23 states.

Shareholders - Manager - Related Companies

Listed at the stock exchange:
	YES
Capital:
	% of Shares Held by All Insider and 5% Owners: 28% % of Shares Held by Institutional & Mutual Fund Owners: 60% % of Float Held by Institutional & Mutual Fund Owners: 84% Number of Institutions Holding Shares: 18
Shareholders Parent Company(ies):
	Major Direct Holders MARXE AUSTIN W & GREENHOUSE DAVID M AVIVA PLC JOHNSON DONNY R. 3,500 Shares Top Institutional Holders HEARTLAND ADVISORS INC. 9.90 % AEGIS FINANCIAL CORPORATION 8.78 % DIMENSIONAL FUND ADVISORS LP 8.57 % Price, Michael F. 6.90 % FRANKLIN RESOURCES, INC 6.19 % SCHWERIN BOYLE CAPITAL MANAGEMENT, INC. 4.29 % MARXE, AUSTIN W. & GREENHOUSE, DAVID M. 2.33 % BLAIR (WILLIAM) & COMPANY, L.L.C. 13.28 % AVIVA PLC 11.98 % VNBTrust, National Association 1.01 % Top Mutual Fund Holders HEARTLAND VALUE FUND 9.90 % FRANKLIN VALUE INVESTORS TRUST-FRANKLIN MICROCAP VALUE F 6.19 % AEGIS VALUE, INC. 6.04 % DFA U.S. SMALL CAP VALUE SERIES 2.54 % BLAIR (WILLIAM) MUTUAL FUNDS, INC.-SMALL CAP GROWTH FUND 11.18 % DFA U.S. MICRO CAP SERIES 1.36 % VANGUARD TOTAL STOCK MARKET INDEX FUND 0.64 % RBC Fds Tr-RBC Micro Cap Value Fd 0.46 % DFA Tax Managed U.S. Targeted Value Port 0.28 % VANGUARD EXTENDED MARKET INDEX FUND 0.22 %
Management:
	Board of Directors: Royce Winsten, Chairman of the Board Dennis E. Logue Lolan C. Mackey Richard E. Wilson Terrence M. Babilla Richard E. Wilson, President & Chief Executive Officer Ted Beaith, Senior Vice President, Chief Information Officer Tom L. Canfield, Jr., Senior Vice President, Administration & Logistics Wayne S. Peterson, Senior Vice President, Chief Financial Officer Daniel J. Curoe, Vice President, Human Resources Brian Assmus, Vice President, Controller Dan E. Roth, Vice President, Store Operations Brent A. Streit, Vice President, Supply Chain & Marketing John R. Wagner, Vice President, Logistics

Financials - COMMERCIAL TRENDS AND FORECAST

The subject is a public company trades at the "Nasdaq" stock exchange under the symbol "DUCK". Please find enclosed the financial statements.

Comments on the financial data: The 2010 financial results will be available on April 15, 2011.

Legal Fillings

There are several UCC** files listed with the Secretary of State of Kansas.

The company is subject to various legal proceedings and claims that arise in the ordinary course of their business. Although the outcome of these other claims cannot be predicted with certainty, management does not believe that the ultimate resolution of these matters will have a material adverse effect on the financial condition or results of operations

The last annual report was filed on April 16th, 2010.

THE COMPANY IS NOT LISTED ON THE OFAC LIST.*

For information:

* The Specially Designated Nationals (SDN) List is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.

** The Uniform Commercial Code (UCC) is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America.

The UCC deals primarily with transactions involving personal property (movable property), not real property (immovable property).

It allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.

The Uniform Commercial Code Bureau files and maintains on financial obligations (including IRS liens) incurred by individuals (in business as a sole proprietor), business entities and corporations.

Rating

Local credit bureau gave a correct credit rate.

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

Final Opinion

This is a big sized American company. It employs 4,150 people and has been in business for 109 years.

The company has recovered in 2009 respect the negative result of 2008.

Profitability is low and indebtedness is controlled.

A credit line may be considered for USD 2,000,000

SUMMARY

FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	LOW	Public Records	YES
Indebtedness	CONTROLLED	Payments	REGULAR
Cash	NORMAL

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.48
UK Pound	1	Rs.72.37
Euro	1	Rs.64.42

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	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
--	NB	New Business	--

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

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