SUMMARY

COUNTRY REVIEW

Identification

SUMMARY

COUNTRY REVIEW

Unit

MIRA INFORM REPORT

Report Date :

29.04.2011

IDENTIFICATION DETAILS

Name :	TOVARYSTVO Z OBMEZHENOYU VIDPOVIDALNISTYU VELES-TRANSKON

Registered Office :	9 Sadova str., Oleksandrivka settlement, Odessa region, 68094

Country :	Ukraine

Date of Incorporation :	16.08.2010

Com. Reg. No.:	37109608

Legal Form :	Limited Liability Company

Line of Business :	Lumber and Other Building Materials

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
----	NB	New Business	----

Status :	New Company

Payment Behaviour :	Unknown

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)

Ukraine

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


Identification

Full Name

Tovarystvo z obmezhenoyu vidpovidalnistyu VELES-TRANSKON

Name in national language

?????????? ? ????????? ???????????????? ?????-????????

Office address

7A Shevchenka str., Illichevsk, Odessa region, 68000, Ukraine

Legal Address

9 Sadova str., Oleksandrivka settlement, Odessa region, 68094, Ukraine

Contacts

-	Phone/fax	:	(+38 048) 7719142
-	E-mail	:	velestrans@gmail.com

Legal Form : TOV (Limited Liability Company by Ukrainian Law)

Incorporation : 2010

Staff : 10

Litigation events : n/a
Remarks on payments : n/a

Sales : n/a

Credit Opinion

Credit Limit

Full security only.

Incorporation

2010

Registration Data

Date of registration

16.08.2010

Registration number

37109608

Registr. authority

Local Executive Committee (Illichevsk, Odessa region, Ukraine)

VAT number

371096015033

Registr. place

Ukraine

Number of VAT-certificate: 100301100 Date of issue: 13.09.2010

Legal Form

TOV (Limited Liability Company by Ukrainian Law)		since 16.08.2010

Share Capital

3 000 UAH (registered)		since 16.08.2010

Shareholders

Board / Executives

Executives

Director

Mr Galkin Vadim Nikolayevich (Ukraine)

Authorised signature

Mr Galkin Vadim Nikolayevich

Activities

-	521	Lumber and Other Building Materials
		(NACE 5248: Other retail sale in specialized stores)

Trading of saw-timbers.

Staff employed

10 [E]

Export

none

Import

none

Facilities

Real estate

rent:
-	Premises - Office
	address	:	7A Shevchenka str., Illichevsk, Odessa region, 68000, Ukraine

Branches

	none

Subsidiaries and Participation

	none

Bankers

Registration file does not contain this information.

Litigation

According to the official data as of 27.04.2011, there are no bankruptcy registered in the name of the subject company.

There are no suits/litigation files recorded in the name of VELES-TRANSKON company registered at the web-site of the Unified State Register of the Legal Judgements.

Remarks on payment

No official information is available according to the Ukrainian legislation.

Financial Elements

The official financial data is not available, because the subject is a recently established business.

The company is registered as a taxpayer at the State Tax Administration.

FINAL COMMENTS

The information given in this report was collected from all the sources accessible. We contacted Mr Vadim Galkin (director) on 27.04.2011 by the tel. number: +38 048 7719142. He provided us with the contact data, address and name of the Company. We sent the letter (of inquiry) to the Company by the e-mail: velestrans@gmail.com, but there was no reply received by now. If we receive additional information we will inform you at once.

UKRAINIAN COUNTRY REVIEW, UPDATE AS OF AUGUST 2010 (DATA OF THE MINISTRY OF ECONOMI

CS)

Gross Domestic Product

By a preliminary estimate, GDP in the first quarter of 2010, (in invariable prices

of 2007) grew by 4.8% in comparison with the first quarter of 2009.

Real GDP for 2009 in comparison with 2008 decreased by 15.1%, nominal GDP for the r

eporting period amounted to 914.7 bln UAH .

Reduction of gross added cost in 2009 compared to 2008 has occurred in construction

 (by 45.9%), processing industry (by 26.6%), commerce (by 15.7%), production and di

stribution of electricity, gas and water (11.7%), extraction industry (by 10.5%), t

ransport and communication (by 9.1%).

Industrial sector

The volume of industrial production for January-June 2010 compared to the relevant

period of the last year increased by 12.0%. Industrial output of processing industr

y grew by 13.8%, extraction industry - by 6,1%, production and distribution of elec

tricity, gas and water - by 12.5%.

In June 2010 compared to May 2010 the total industrial output decreased by 0.5%.

In the processing industry production output decreased by 0.4%. The volume of indus

trial production reduced significantly among enterprises of metallurgical productio

n and manufacturing of finished metal products - by 11.0%, coke production, petrole

um refining products - by 10.1%. However, production increased in light industry (b

y 20.2%), pulp and paper production, publishing (by 9.6%), mechanical engineering (

7.6%) and wood processing and manufacturing of wood products, except furniture (by

6.7%), manufacture of other nonmetallic mineral products (by 3.4%),

food beverages and tobacco (by 2.7%).

In the mining industry industrial output decreased compared to May 2010 by 2.7%, in

cluding industrial output in mining operations, except energy minerals mining which

 decreased by 4.1% and mining of energy minerals - by 1.6% down.

Industrial production for individual activities

Mechanical engineering.* Industrial production of engineering enterprises (machine-

building industry) increased by 30.1% in January-June 2010 compared to the relevant

 period of the last year. The growth of the machinery production is caused by the i

ncrease in production at enterprises, which produce railway rolling stock - by 156.

7%, machinery and equipment for agriculture and forestry - by 74.5%, machinery and

equipment for the mining industry and construction - by 44.6%, production of equipm

ent for radio, television and communication - by 23.7%, electric machines and equip

ment - by 12.9%, machinery and equipment for metallurgy - by 7.3%,

road transportation - by 2.2%. In January-May 2010 the number of profitable enterpr

ises was 52.2% (last year - 50.7%).

*Iron and steel production and manufacture of fabricated metal products.*

In January-June 2010 industry output compared to the corresponding period in 2009 i

ncreased by 19.1%. The metallurgical enterprises showed the 25,7 increase in the ou

tput of other types of primary processing of steel, fabricated metal products: +19.

8%, iron, steel and ferroalloys: +18.8%, pipes: +13.9%, production of nonferrous me

tals: +12,8%. In January-May 2010 the number of profitable enterprises was 48.4% (l

ast year - 43.2%).

*Chemical and petrochemical industries.*

Industrial output in January-June 2010 compared to the corresponding period of 2009

 increased by 21.4%, including the increase in the production of basic chemical pro

ducts - by 20,8%, pharmaceutical products - by 37.6% soap and detergents, cleaner a

nd polish, perfume and cosmetics - by 9.2%, varnishes and paints - by 2.5%, rubber

and plastic products - by 16.7% and 7.7% accordingly. In January-May 2010 the numbe

r of profitable enterprises was 63.2% (last year - 62.6%).

*Production of food, beverages and tobacco products.*

Industrial output of the branch in January-June 2010 compared to the corresponding

period of the last year increased by 0.8%. At the enterprises which produce oils an

d fats production growth was 10.3%, meat industry - 5.3%, confectionery industry -

4.6%. Production reduced in processing and preservation of fruits and vegetables (b

y 5.8%), in dairy and beverage industry (by 4.0%), manufacture of tobacco products

(by 2.3%). In January-May 2010 the number of profitable enterprises was 57.1% (last

 year - 59.2%).

*Light industry.*

In January-June 2010 compared to the corresponding period of the last year output g

rew by 7.5%. The enterprises of textile manufacture, clothes, fur and fur productio

n output increased by 8.2%, leather production, leather and other materials - by 5.

1%. In January-May 2010 the number of profitable enterprises constituted 52.6% (las

t year  54.8%).

Wholesale and retail trade

The physical volume of wholesale trade turnover in January-June 2010 compared to th

e corresponding period of the last year increased by 5.0% (last year - decreased by

 24.6%).

Retail trade turnover in January-June 2010 compared to the corresponding period in

2009 increased by 2.3% (last year - was reduced by 15.2%).

Volume of retail trade of enterprises, which operate in retail trade and restaurant

 business, in January-June 2010 increased in comparable prices against the same per

iod of the last year by 2.5% (last year - was reduced by 19.9%).

Foreign trade in goods

In January-May 2010 export of goods amounted to 18,769.0 mln USD and increased comp

ared to the corresponding period of 2009 by 31.4% and import amounted to 20,869.3 m

ln USD that is 25.9% up. A negative balance of foreign trade amounted to 2,100.3 ml

n USD (last year negative balance amounted to 2,290.3 mln USD).

Import-export ratio of goods in January-May 2010 amounted to 0.90 (last year - 0.86

).

The largest volume of export was supplied to Russian Federation  24.9% of total ex

port, Turkey - 6.6%, Italy - 4.6%, Belarus - 3.5%, Poland - 3.2%, Germany - 3 1%, I

ndia - 2.9%. In January-May 2010, compared to the corresponding period of 2009, exp

ort to Russia increased by 68.2%, import  2.2 times. The balance of foreign trade

with Russia was negative and amounted to 3,054.2 mln USD.

The greatest import to Ukraine came from Russia - 37.1% of total imports, Germany -

 7.3%, China  6.9%, Poland  4.1%, Belarus - 3.2%, the USA  2.9%, Italy - 2.4%.

*Labour market*

During June 2010 the number of citizens who had the status of unemployed has decrea

sed by 4.9% and amounted 398.7 million people as of July 1, 2010. Since 2010 the nu

mber of registered unemployed has decreased by 25.0% (in comparison with June 2009

- by 39.5%).

Registered unemployment rate on July 1, 2010 amounted to 1.4% of the population of

working age. The highest unemployment rate was observed in Zhytomyr (2.6%), Poltava

 (2.4%), Rivne and Sumy (2.3% each) regions and the lowest one - in Kyiv (0.3%).

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.33
UK Pound	1	Rs.74.14
Euro	1	Rs.65.78

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.

Mr Galkin Vadim Nikolayevich (Ukraine)

share's book value

Mr Galkin Igor Nikolayevich (Ukraine)

share's book value