MIRA INFORM REPORT

Report Date :

07.12.2011

IDENTIFICATION DETAILS

Correct Name :	MARGUNAS, UAB
Registered Office :	Ringuvos str. 53, Kaunas, LT-45245
Country :	Lithuania
Financials (as on) :	31.12.2010
Date of Incorporation :	26.01.1998
Com. Reg. No.:	135102261
Legal Form :	Private Joint-Stock Company
Line of Business :	Wholesale of chemical products
No. of Employees :	55 Persons

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	450 000 EUR
Status :	Moderate
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 – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Lithuania	b1	b1

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

Identification

Full Name

:

MARGUNAS, UAB

Name in national language

:

MARGUNAS, UAB

Office address

:

Ringuvos str. 53, Kaunas, LT-45245, Lithuania

Legal Address

:

Ringuvos str. 53, Kaunas, LT-45245, Lithuania

Contacts

:

-	Phone	:	(+370 37) 49 10 76
-	Fax	:	(+370 37) 49 10 80
-	E-mail	:	margunas@margunas.lt
-	WWW	:	www.margunas.lt

company SUMMARY

Legal Form : UAB (Private Joint-Stock Co. by Lithuanian law)

Incorporation : 1998

Staff : 55

Litigation events : none Remarks on payments : none

Sales :	85 134 374.00 LTL ( for 12 months, ended 31.12.2010 )
	61 385 815.00 LTL ( for 12 months, ended 31.12.2009 )

Credit Opinion

Credit Limit

:

450 000 EUR Credit line at value over the Credit Limit is advised to be secured with proper guarantees.

Incorporation

:

1998

Registration Data

Date of registration

:

26.01.1998

Registration number

:

135102261

Registr. authority

:

State Register (Kaunas, Lithuania)

Date of registration

:

01.03.1998

VAT number

:

LT351022610

Registr. authority

:

Tax Board (Kaunas, Lithuania)

Legal Form

:

UAB (Private Joint-Stock Co. by Lithuanian law)

since 26.01.1998

Share Capital

:

510 000 LTL (registered)

since n/a

Shareholders

:

The company refused to provide us this information. We can only see that one shareholder holds 100% of company's shares.

Board / Executives

Executives

Director

:

Mr Milcius, Vilius (Lithuania)

Authorised signature

:

Mr Milcius, Vilius

Changes in Registration Data

- 05.12.2011

:

managers

Activities

:

-	516	Chemicals and Allied Products
		(NACE 5155: Wholesale of chemical products)

Wholesale trade of industrial chemical components and preparations. In year 2003 was established and introduced quality management system ISO 9001:2000. In year 2004 this system was sertificated by BVQi. In year 2007 quality management system was re-sertificated.

Staff employed

:

55 [E]

Staff History

:

-	55 [E]
	( the data as of 01.01.2011 )
-	52 [E]
	( the data as of 01.01.2010 )
-	55 [E]
	( the data as of 01.01.2009 )
-	48 [E]
	( the data as of 01.01.2008 )
-	45 [E]
	( the data as of 01.01.2007 )

Export

:

Latvia, Estonia, Belarus, Russian Federation, Poland, Czech Republic

Import

:

Czech Republic, Poland, Estonia, Latvia, Finland, Germany, Italy, France, China Peoples Republic, Russian Federation, Ukraine, Belarus

Facilities

Real estate

:

own:
-	Buildings - Production
	size/amnt	:	1 500.00 sq.m
-	Buildings - Warehouse
	size/amnt	:	3 000.00 sq.m
unknown ownership:
-	Land
	size/amnt	:	1.20 ha

Other Property

:

own:
-	Plants & equipment - tanks for liquid chemical products storing
	size/amnt	:	3 000.00 sq.m

TRANSPORT VEHICLES: 1 AUDI A8, 2010, rent/leasing - 1 2 BMW X5, 2006, own - 1 3 LEXUS GS 300, 2005, own - 1 4 LEXUS LS 600 HL, 2007, rent/leasing - 1 5 LEXUS RX 300, 2003, own - 1 6 MERCEDES BENZ B200, 2006, own - 1 7 MERCEDES BENZ E 220 CDI, 2009, own - 1 8 OPEL ASTRA, 2001, own - 1 9 SKODA SUPERB, 2004, own - 1 10 TOYOTA AURIS, 2008, own - 7 11 TOYOTA AVENSIS, 2008, own - 1 12 TOYOTA AVENSIS, 2009, own - 1 13 TOYOTA YARIS VERSO, 2006, own - 1 14 TOYOTA LAND CRUISER (200 SERIES), 2011, rent/leasing - 1 15 VW TOURAN, 2004, own - 1 16 MAN 10.163, 1995, own - 1 17 MAN TGA 18.390, 2006, own - 2 18 MAN TGA 18.400, 2007, own - 1 19 MAN TGA 18.430, 2007, own - 1 20 MAN TGA 18.440, 2007, rent/leasing - 1 21 MAN TGX 18.440, 2008, rent/leasing - 1 22 MERCEDES BENZ 2433, 1991, own - 1 23 VOLVO FH12, 2004, own - 1 24 GOFA TSA 30, 2002, own - 1 25 GOFA TSA 30/3, 1992, own - 1 26 GOFA TSA 32, 2001, own - 1 27 KARFA NW 350, 1998, own - 1 28 KLAESER 2437, 1990, own - 1 29 KLAESER TSA5, 2002, own - 1 30 KLAESER TSA5, 2004, own - 1 31 RENDERS ROC 12.27, 1999, own - 1 32 SCHMITZ SCS 24/L, 2007, own - 1 33 SCHMITZ SPR 24, 2001, own - 1

Branches

:

none

Subsidiaries and Participation

:

-	OOO "MARGUNAS-UKRAINA" (Ukraine)				share n/a
		address	:	Kotlova 168, Kharkov, Ukraine
-	SIA "MARGUNAS-LATVIJA" (Latvia)				share n/a
		address	:	Dobeles soseja 2, Jelgava, Jelgavas region, Latvia

Bankers

:

-	"Danske bankas" A/S Lithuanian branch (Lithuania)
	bank code	:	74000
	account(s)	:	LT28 7400 0297 9582 3810

Clients

:

Company's clients are big food, beer, textiles, glass, oil refining, electronics, engineering, construction and other industries companies, pharmaceutical and agricultural companies, water treatment plants.

Litigation

:

none

There are no registered legal actions against company required.

Remarks on payment

:

none

No current are reported by the local debt collection companies.

Business mortgages

:

yes

According to official sources and our evaluation, the company required has commercial pledges. We can not provide details regarding the pledges.

Financial Elements

Period, months	12	12
Ended	31.12.2010	31.12.2009
Currency	LTL	LTL
Non-current assets	6 238 571.00	6 233 483.00
incl: - Fixed assets	6 208 973.00	6 228 982.00
- Financial assets	0.00	0.00
Current assets	28 936 894.00	21 516 018.00
incl: - Stock	8 760 642.00	4 588 592.00
- Debtors	20 044 900.00	16 766 598.00
- Cash	131 352.00	160 828.00
ASSETS TOTAL	35 175 465.00	27 749 501.00
Equity	15 420 900.00	10 244 246.00
incl: - Share capital	510 000.00	510 000.00
Liabilities Total	19 754 565.00	17 505 255.00
incl: - Long-term liabilities	515 595.00	903 367.00
- Short-term liabilities	19 238 970.00	16 601 888.00
EQUITY AND LIABILITIES TOTAL	35 175 465.00	27 749 501.00
Net sales	85 134 374.00	61 385 815.00
Cost of goods sold	72 778 376.00	51 330 084.00
Operating profit	5 714 654.00	4 292 890.00
Profit before taxation	5 859 938.00	4 126 699.00
Net profit	5 176 654.00	3 473 863.00
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	6.88	6.72
Profit before taxation / Net sales
Operating margin of profit, %	6.71	6.99
Operating profit / Net sales
Return on investment, %	38.00	40.28
Profit before taxation / Equity
Current assets turnover	2.94	2.85
Net sales / Current assets
Working capital	9 697 924.00	4 914 130.00
Current assets - Short-term liabilities
Leverage	0.44	0.37
Equity / Total assets
Current ratio	1.50	1.30
Current assets / Short-term liabilities
Quick ratio	1.05	1.02
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	1.28	1.71
Total liabilities / Equity

Income range of the subject LTL (according to data of Statistics Dep-t): 30,000,001-40,000,000 /2008-01-02/ 20,000,001-30,000,000 /2007-01-01/ 20,000,001-30,000,000 /2005-12-31/ 20,000,001-30,000,000 /2004-12-31/ 15,000,001-20,000,000 /2003-12-31/ 9,000,001-11,000,000 /2002-12-31/ 3,000,001-5,000,000 /1999-12-31/ 2,000,001-3,000,000 /1998-12-31/ *Since 01.01.2008 information about income range is not available.

FINAL COMMENTS

Information was received from all the sources available, some information was confirmed by the office manager of the company. Accountant of the company asked for an official written request and promised to provide us with financial information. As soon as we will receive any new information we'll update the report. /Date: 07.12.2011, phone:(+370 37) 49 10 76

APPENDIX A

Financial Statements

Period, months	12	12
Ended	31.12.2010	31.12.2009
Currency	LTL	LTL
PROFIT AND LOSS ACCOUNT
I. SALES AND SERVICES	85 134 374.00	61 385 815.00
II. COSTS OF GOODS SOLD AND SERVICES	72 778 376.00	51 330 084.00
RENDERED
III. GROSS PROFIT (LOSS)	12 355 998.00	10 055 731.00
IV. OPERATING EXPENSES	6 641 344.00	5 762 841.00
IV.1 Expenses on sales	1 489 597.00	1 234 460.00
IV.2 Administrative and other expenses	5 151 747.00	4 528 381.00
V. OPERATING PROFIT (LOSS)	5 714 654.00	4 292 890.00
VI. OTHER OPERATIONS	241 028.00	89 873.00
VI.1 Revenue from other operations	260 239.00	103 614.00
VI.2 Expenses on other operations	19 211.00	13 741.00
VII. FINANCIAL AND INVESTMENT ACTIVITIES	-95 744.00	-256 064.00
VII.1 Revenue from financial and investing activities	91 219.00	35 704.00
VII.2 Expenses on financial and investing activities	186 963.00	291 768.00
VIII. BASIC ACTIVITY PROFIT (LOSS)	5 859 938.00	4 126 699.00
IX. EXTRA-ORDINARY PROFIT
X. EXTRA-ORDINARY LOSS
XI. PROFIT LIABLE TO TAXATION (LOSS)	5 859 938.00	4 126 699.00
XII. PROFIT TAX	683 284.00	652 836.00
XIII. NET PROFIT (LOSS)	5 176 654.00	3 473 863.00
XIV. PROFIT (LOSS) before minority share
XV. MINORITY SHARE
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
BALANCE SHEET
ASSETS
A. NON-CURRENT ASSETS	6 238 571.00	6 233 483.00
I. INTANGIBLE ASSETS	29 598.00	4 501.00
I.1 Reseach and development costs
I.2 Goodwill
I.3 Rights obtained (licences, patents etc.)
I.4 Software	29 598.00	4 501.00
I.5 Other intangible assets
II. TANGIBLE ASSETS	6 208 973.00	6 228 982.00
II.1 Land	76 198.00	76 198.00
II.2 Buildings and constructions	3 031 718.00	3 172 751.00
II.3 Plant and equipment	931 817.00	794 404.00
II.4 Transport vehicles	1 814 527.00	1 576 272.00
II.5 Other fixtures, fittings, tools and equipment	346 713.00	597 292.00
II.6 Construction in progress and prepayments	8 000.00	12 065.00
II.7 Other tangible assets
II.8 Investment assets	0.00	0.00
II.8.1. Land
II.8.2. Buildings
III. LONG-TERM FINANCIAL ASSETS	0.00	0.00
III.1 Capital participation and investments in related
companies
III.2 Loans to subsidiaries and associated companies
III.3 Long-term accounts receivable
III.4 Other long-term finacial assets
IV. OTHER LONG TERM ASSETS	0.00	0.00
IV.1 Deffered tax profit
IV.2 Other long term assets
B. CURRENT ASSETS	28 936 894.00	21 516 018.00
I. STOCKS AND CONTRACTS IN PROGRESS	8 760 642.00	4 588 592.00
I.1. Stocks	5 394 298.00	3 396 835.00
I.1.1 Raw materials and consumables	55 549.00	49 890.00
I.1.2 Work in progress
I.1.3 Finished products
I.1.4 Goods purchased for sale	5 338 749.00	3 346 945.00
I.1.5 Long term assets for resale
I.2 Advanced payments	3 366 344.00	1 191 757.00
I.3. Contracts in progress
II. SHORT-TERM ACCOUNTS RECEIVABLE	20 012 558.00	16 734 256.00
II.1. Trade debtors	18 822 024.00	15 057 679.00
II.2 Loans to subsidiaries and associated companies
II.3. Other accounts receivable	1 190 534.00	1 676 577.00
III. OTHER CURRENT ASSETS	32 342.00	32 342.00
III.1 Short-term investments
III.2 Deposit accounts
III.3 Other current assets	32 342.00	32 342.00
IV. CASH IN HAND AND BANK ACCOUNT	131 352.00	160 828.00
TOTAL ASSETS	35 175 465.00	27 749 501.00
EQUITY AND LIABILITIES
C. CAPITAL AND RESERVES	15 420 900.00	10 244 246.00
I. CAPITAL	510 000.00	510 000.00
I.1. Authorized capital	510 000.00	510 000.00
I.2. Uncalled capital
I.3 Share premium account
I.4 Own shares
II. REVALUATION RESERVE
III. RESERVES	51 000.00	51 000.00
III.1. Legally prescribed reserevs	51 000.00	51 000.00
III.2. Non-distributable reserves
III.3. Other reserves
IV. RETAINED EARNINGS	14 859 900.00	9 683 246.00
IV.1 Profit (loss) from the current year	5 176 654.00	3 473 863.00
IV.2 Profit (loss) brought forward from previous years	9 683 246.00	6 209 383.00
V. Currency exchange rate influence
D. FINANCING (GRANTS AND SUBSIDIES)
D. MINORITY SHARE
E. ACCOUNTS PAYABLE AND LIABILITIES	19 754 565.00	17 505 255.00
I. LONG-TERM ACCOUNTS PAYABLE	515 595.00	903 367.00
I.1 Financial loans	515 595.00	903 367.00
I.1.1 Leasing and other similar obligations	168 264.00	405 549.00
I.1.2 Amounts owed to credit institutions	347 331.00	497 818.00
I.1.3 Other financial loans
I.2 Trade creditors
I.3 Advanced payments under contracts in progress
I.4 Provisions	0.00	0.00
I.4.1 Liabilities repayment
I.4.2 Benefit and similar liabilities
I.4.3 Other provisions
I.5 Deffered taxes
I.6 Other accounts payable and long-term liabilities
II. SHORT-TERM LIABILITIES	19 238 970.00	16 601 888.00
II.1 Short-term portion of long-term debts	381 994.00	462 724.00
II.2 Financial debts	7 035 978.00	4 824 346.00
II.2.1 To credit institutions	7 035 978.00	4 824 346.00
II.2.2 Other loans
II.3 Trade creditors	10 387 167.00	9 532 500.00
II.4 Advanced payments under contracts in progress	550 449.00	264 676.00
II.5 Profit tax liabilities	83 284.00	277 917.00
II.6 Taxes, accrued payroll and social insurance payments	169 196.00	152 840.00
II.7 Provisions
II.8 Other accounts payable and short-term liabilities	630 902.00	1 086 885.00
TOTAL EQUITY AND LIABILITIES	35 175 465.00	27 749 501.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.39
UK Pound	1	Rs.80.20
Euro	1	Rs.68.92

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.