MIRA INFORM REPORT

Report Date :

15.06.2011

IDENTIFICATION DETAILS

Name :	UAB LIVITANA
Registered Office :	Pramones str. 8A, Klaipeda, Klaipeda region, Klaipeda city municipality, LT-94102
Country :	Lithuania
Financials (as on) :	31.12.2010
Date of Incorporation :	15.04.2005
Com. Reg. No.:	300105794
Legal Form :	Private Joint-Stock Co
Line of Business :	Freight Forwarding

RATING & COMMENTS

MIRA’s Rating :

B

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

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Exists

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 – March 31^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
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

:

UAB "Livitana"

Name in national language

:

UAB "Livitana"

Office address

:

Pramones str. 8A, Klaipeda, Klaipeda region, Klaipeda city municipality, LT-94102, Lithuania

Legal Address

:

Pramones str. 8A, Klaipeda, Klaipeda region, Klaipeda city municipality, LT-94102, Lithuania

Contacts

:

-	Phone	:	(+370 46) 313 435, 256 230
-	Fax	:	(+370 46) 411 227
-	E-mail	:	info@livitana.com
-	WWW	:	www.livitana.com

SUMMARY

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

Incorporation : 2005

Staff : 14

Litigation events : yes Remarks on payments : none

Sales :	26 545 177.00 LTL ( for 12 months, ended 31.12.2010 )
	21 713 738.00 LTL ( for 12 months, ended 31.12.2009 )

Credit Opinion

Credit Limit

:

No credit terms to be granted until further details regarding insolvency note become available.

Incorporation

:

2005

In publicly available Court Information System on 10.05.2011 was registered an application to start insolvency proceedings for the company. The court sitting regarding this matter is not announced yet.

Important Notes

- 10.05.2011

:

ALERT

In publicly available Court Information System on 10.05.2011 there was registered an application to start insolvency proceedings afainst the subject the company. The court sitting regarding this matter is not announced yet.

Registration Data

Date of registration

:

15.04.2005

Registration number

:

300105794

Registr. authority

:

State Register (Klaipeda, Klaipeda region, Klaipeda city municipality, Lithuania)

Date of registration

:

01.07.2005

VAT number

:

LT100001713217

Registr. authority

:

Tax Board (Klaipeda, Klaipeda region, Klaipeda city municipality, Lithuania)

Legal Form

:

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

since 15.04.2005

Share Capital

:

500 000 LTL (registered)

since 13.05.2009

Shareholders

:

The company refused to provide us this information.

Board / Executives

Executives

Director

:

Mr Gudzenko, Vitalijus (Lithuania)

Authorised signature

:

Mr Gudzenko, Vitalijus

Changes in Registration Data

- 13.05.2009

:

share capital

Increase of share capital

- 10.11.2008

:

legal address, share capital

Increase of share capital

Activities

:

-	471	Freight Forwarding
		(NACE 6340: Activities of other transport agencies)
	Company's activities: Cargo carriage by road transport � by trucks; Forwarding; Container transportation by sea; marine chartering; Booking of ferries.

Staff employed

:

14 [E]

Staff History

:

-	12 [E]
	( the data as of 01.01.2011 )
-	10 [E]
	( the data as of 01.01.2010 )
-	8 [E]
	( the data as of 01.01.2009 )
-	6 [E]
	( the data as of 01.01.2008 )
-	4 [E]
	( the data as of 01.01.2007 )

Export / Import

:

Company transports cargo from the Baltic countries to Poland, Germany, Belgium, France, Denmark, Czech republik, Hungary, Slovakia, Sweden, Italy, Great Britain and from Europe to Russia.

Facilities

:

TRANSPORT VEHICLES: 1 YAMAHA XV 1900, own - 1 2 MAZDA 6, own - 1 3 NISSAN PATHFINDER, rent/leasing 1 4 VOLVO FH 42T, own - 1

Branches

:

none

Subsidiaries and Participation

:

n/a

Bankers

:

-	AB Swedbank (Lithuania)
	bank code	:	73000

Litigation

:

yes

Case number: 2-06-3-07645-2010-6 | 2-1058-618/2011 Court: Klaipeda district court Instance: civil case Date: 2011-05-25 Case summary: the value of the damaged goods compensation Case parts: Plaintiff: Baltstata; Defendant: Livitana; Third persons: BTA draudimas; Lietuvos draudimas; SP transport Case number: 2-06-3-03972-2011-6 | L2-5677-777/2011 Court: Klaipeda district court Instance: civil case Date: 2011-03-29 Case summary: 702,11 Lt debt adjudgement Case parts: Debtor: Livitana

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. Some property seizure acts also registered in official sources: Date: 11.05.2011 Amount of seizured property: 83661,37 Lt

Financial Elements

Period, months	12	12
Ended	31.12.2010	31.12.2009
Currency	LTL	LTL
Non-current assets	5 348 417.00	5 998 700.00
incl: - Fixed assets	5 348 417.00	5 489 223.00
- Financial assets	0.00	509 477.00
Current assets	4 732 019.00	4 245 837.00
incl: - Stock	653 648.00	662 798.00
- Debtors	4 021 554.00	3 472 563.00
- Cash	56 817.00	110 476.00
ASSETS TOTAL	10 080 436.00	10 244 537.00
Equity	1 279 065.00	1 189 563.00
incl: - Share capital	500 000.00	500 000.00
Liabilities Total	8 801 371.00	9 054 974.00
incl: - Long-term liabilities	5 192 989.00	3 554 978.00
- Short-term liabilities	3 608 382.00	5 499 996.00
EQUITY AND LIABILITIES TOTAL	10 080 436.00	10 244 537.00
Net sales	26 545 177.00	21 713 738.00
Cost of goods sold	24 718 768.00	19 900 945.00
Operating profit	38 886.00	670 520.00
Profit before taxation	151 758.00	595 923.00
Net profit	89 503.00	462 280.00
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	0.57	2.74
Profit before taxation / Net sales
Operating margin of profit, %	0.15	3.09
Operating profit / Net sales
Return on investment, %	11.86	50.10
Profit before taxation / Equity
Current assets turnover	5.61	5.11
Net sales / Current assets
Working capital	1 123 637.00	-1 254 159.00
Current assets - Short-term liabilities
Leverage	0.13	0.12
Equity / Total assets
Current ratio	1.31	0.77
Current assets / Short-term liabilities
Quick ratio	1.13	0.65
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	6.88	7.61
Total liabilities / Equity

Income range of the subject LTL (according to data of Statistics Dep-t): 15,000,001-20,000,000 /2008-01-02/ 3,000,001-5,000,000 /2007-01-01/ 400,001-800,000 /2005-12-31/ *Since 01.01.2008 information about income range is not available.

Publications

:

No publications in mass-media regarding company required.

FINAL COMMENTS

Information was received from all the sources available, information was confirmed by accountant of the company. /Date: 10.06.2011, phone:(+370 46) 313 435

THE RESULT OF THE OPINION POLL: May, 2010 SECTOR: transport (freight carriers, forwarders) 1. - 100% of polled companies evaluate common state of business in the sector as getting worse. - 90% of the companies feel the decrease of orders and in the sales volume, and 10% of polled companies consider that the number of orders and sales volume is stable; - 70% of respondents forecast that in the future situation will become worse and another 30% think that it will remain stable. 2. - 15% of polled companies confirm that they do not see any sensible change in payment behavior of their clients. Average payment terms are 3-6 month. - 85 % of polled companies fix slowdown in client's payments. Average delay in payment is 1-2 months from the due date. 3. - 20% of polled companies do not see factual bankrupts among their clients. - 80% of polled companies state that some of their clients have become insolvent. They are of opinion that 10 - 15% of companies operating in the sector have become insolvent.

COUNTRY REVIEW

COUNTRY REVIEW

LITHUANIA, Economy review, Ministry of Economy

Update October, 2010

GDP returned to growth on the second quarter of 2010 on rising exports and expandin

g industrial output. Yearly GDP growth became positive after six quarters of fall a

nd reached 1.3 per cent, whereas quarterly output was 3,2 % (seasonally adjusted).

GDP for 1-st and 2-nd Q 2010 made respectively (mill of EUR): 5945 and 7104.

Although output pace is not sustainable yet, it supports major Lithuania�s governme

nt and financial institutions, consensus for 2010 to be slightly above zero. Notabl

e, that institutions, having much more reasons to be conservative than optimistic,

forecast GDP growth. Ministry of Finance forecasts 1.6 % GDP growth in 2010 (this i

s official Government�s forecast of Lithuania GDP), while Bank of Lithuania expects

0.5 % growth. SEB, the biggest player in Lithuania�s bank industry, forecasts econ

omy will growth 1 %. International Monetary Fund forecasts 1.3 % growth in 2010.

Export of goods, the main driver of Lithuania economy, has been showing much better

than expected figures for seven months in a row as compared with the same period o

f 2009. That amounted to annual rate of change of export (27,9 %) during January-Au

gust of 2010.

External trade

Export of goods, bln EUR:

2008 2009 1-st Q 2010 2-nd Q 2010

16.1 11.8 3.0 3.8

Imports of goods, bln of EUR:

2008 2009 1-st Q 2010 2-nd Q 2010

21.1 13.1 3.4 4.2

Notable, that export of Lithuania origin (goods made by Lithuania industry) that am

ounts to 80 % of total export of goods also increased. Annual rate of change in Jan

uary � August of 2010 was 25,6 % .

Industry has been gradually picking up over the course of 2010. At the beginning of

2010, industrial production was still on decline in year-on-year terms while exter

nal demand was quite weak. Nevertheless, in August 2010 industrial production incre

ased by 10,9 % on an annual basis, of which manufacturing industry increased by 12.

8 In January-August, industrial production increased by 2.5 % on an annual basis. I

ndustrial enterprises now return to usual working time schedule and start restockin

g. The results of most of industrial branches (rubber and plastics, textiles and cl

othing, computer and electronic products, wood articles, furniture, metal products,

refined oil products, food products, beverages) were notably better in the middle

of 2010 than at the beginning of the year.

Retail trade (except of motor vehicles, motorcycles and fuel) increased by 2.9 % in

August month on month basis. Indicator was 6.4 % lower than August in 2009. In the

January-March of 2010 annual rate of change was -17.7 %, -15.9 % and - 7.9 % .

Lending and interest rates. Average interest rate charged fr om non-financial corpo

rations for loans in litas was 4.8 % in August, whereas the same figure was at 5.2

in June and 7.3 per cent in January of 2010. Average loans in euros have remained s

table at 3.6 per cent since November of 2009.

Lending to business declined in August of 2010, as compared with previous month at

0.2 % and at 8.9 % as compared with corresponding period of 2009.

Although lending to business is still decreasing, so doing average interests charge

d for loans in LTL as well. That let us to conclude that national currency and ente

rprises are not so risky as in the end of 2009 in banks point of view.

Labour market. Unemployment rate made up 18.3% in the second quarter of 2010. The q

uarterly increase made up 0.2 percentage points only, while in the first quarter of

2010 the increase made up 2.5 percentage points. Slower increase suggests imminent

stabilization.

Unemployment rate in Lithuania was lower than in Latvia and Estonia, where it made

up 19.4 % and 18.6 %, accordingly (by Eurostat methodology).

Fiscal policy is maintaining its path. Income to state budget was higher than plann

ed by 8.4 percent during the January � August period.

In the 1st half-year of 2010 due to reduced expenditure, central government deficit

(calculated on cash basis) was by LTL 645.6 million smaller as compared to the sam

e period in 2009 and made up LTL 4,062.2 million or 4.3% of GDP.

Strategic objective of the medium-term policy is further public finances consolidat

ion and essential improvement of the situation in the areas that can ensure economi

c breakthrough. Convergence Programme of Lithuania sets general government deficit

targets: for 2010 � 8.1 per cent of GDP, for 2011 � 5.8 per cent of GDP, for 2012 �

3 per cent of GDP.

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	26 545 177.00	21 713 738.00
II. COSTS OF GOODS SOLD AND SERVICES	24 718 768.00	19 900 945.00
RENDERED
III. GROSS PROFIT (LOSS)	1 826 409.00	1 812 793.00
IV. OPERATING EXPENSES	1 787 523.00	1 142 273.00
IV.1 Expenses on sales	83 028.00	93 900.00
IV.2 Administrative and other expenses	1 704 495.00	1 048 373.00
V. OPERATING PROFIT (LOSS)	38 886.00	670 520.00
VI. OTHER OPERATIONS	215 231.00	1 664.00
VI.1 Revenue from other operations	1 810 124.00	232 278.00
VI.2 Expenses on other operations	1 594 893.00	230 614.00
VII. FINANCIAL AND INVESTMENT ACTIVITIES	-102 359.00	-76 261.00
VII.1 Revenue from financial and investing activities	371 698.00	401 693.00
VII.2 Expenses on financial and investing activities	474 057.00	477 954.00
VIII. BASIC ACTIVITY PROFIT (LOSS)	151 758.00	595 923.00
IX. EXTRA-ORDINARY PROFIT
X. EXTRA-ORDINARY LOSS
XI. PROFIT LIABLE TO TAXATION (LOSS)	151 758.00	595 923.00
XII. PROFIT TAX	62 255.00	133 643.00
XIII. NET PROFIT (LOSS)	89 503.00	462 280.00
XIV. PROFIT (LOSS) before minority share
XV. MINORITY SHARE
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
BALANCE SHEET
ASSETS
A. NON-CURRENT ASSETS	5 348 417.00	5 998 700.00
I. INTANGIBLE ASSETS	0.00	0.00
I.1 Reseach and development costs
I.2 Goodwill
I.3 Rights obtained (licences, patents etc.)
I.4 Software
I.5 Other intangible assets
II. TANGIBLE ASSETS	5 348 417.00	5 489 223.00
II.1 Land
II.2 Buildings and constructions
II.3 Plant and equipment
II.4 Transport vehicles	2 140 371.00	2 000 468.00
II.5 Other fixtures, fittings, tools and equipment
II.6 Construction in progress and prepayments
II.7 Other tangible assets	61 608.00	92 567.00
II.8 Investment assets	3 146 438.00	3 396 188.00
II.8.1. Land
II.8.2. Buildings	3 146 438.00	3 396 188.00
III. LONG-TERM FINANCIAL ASSETS	0.00	509 477.00
III.1 Capital participation and investments in related
companies
III.2 Loans to subsidiaries and associated companies
III.3 Long-term accounts receivable		509 477.00
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	4 732 019.00	4 245 837.00
I. STOCKS AND CONTRACTS IN PROGRESS	653 648.00	662 798.00
I.1. Stocks	279 061.00	0.00
I.1.1 Raw materials and consumables
I.1.2 Work in progress
I.1.3 Finished products
I.1.4 Goods purchased for sale	234 175.00
I.1.5 Long term assets for resale	44 886.00
I.2 Advanced payments	374 587.00	662 798.00
I.3. Contracts in progress
II. SHORT-TERM ACCOUNTS RECEIVABLE	3 991 767.00	3 430 432.00
II.1. Trade debtors	3 991 767.00	3 400 873.00
II.2 Loans to subsidiaries and associated companies
II.3. Other accounts receivable		29 559.00
III. OTHER CURRENT ASSETS	29 787.00	42 131.00
III.1 Short-term investments
III.2 Deposit accounts
III.3 Other current assets	29 787.00	42 131.00
IV. CASH IN HAND AND BANK ACCOUNT	56 817.00	110 476.00
TOTAL ASSETS	10 080 436.00	10 244 537.00
EQUITY AND LIABILITIES
C. CAPITAL AND RESERVES	1 279 065.00	1 189 563.00
I. CAPITAL	500 000.00	500 000.00
I.1. Authorized capital	500 000.00	500 000.00
I.2. Uncalled capital
I.3 Share premium account
I.4 Own shares
II. REVALUATION RESERVE
III. RESERVES	41 317.00	18 203.00
III.1. Legally prescribed reserevs	41 317.00	18 203.00
III.2. Non-distributable reserves
III.3. Other reserves
IV. RETAINED EARNINGS	737 748.00	671 360.00
IV.1 Profit (loss) from the current year	89 503.00	462 280.00
IV.2 Profit (loss) brought forward from previous years	648 245.00	209 080.00
V. Currency exchange rate influence
D. FINANCING (GRANTS AND SUBSIDIES)
D. MINORITY SHARE
E. ACCOUNTS PAYABLE AND LIABILITIES	8 801 371.00	9 054 974.00
I. LONG-TERM ACCOUNTS PAYABLE	5 192 989.00	3 554 978.00
I.1 Financial loans	5 192 989.00	3 554 978.00
I.1.1 Leasing and other similar obligations	1 959 270.00	1 304 978.00
I.1.2 Amounts owed to credit institutions	3 233 719.00	2 250 000.00
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	3 608 382.00	5 499 996.00
II.1 Short-term portion of long-term debts		825 090.00
II.2 Financial debts	0.00	0.00
II.2.1 To credit institutions
II.2.2 Other loans
II.3 Trade creditors	2 670 534.00	4 277 424.00
II.4 Advanced payments under contracts in progress	261 445.00
II.5 Profit tax liabilities	62 255.00	133 643.00
II.6 Taxes, accrued payroll and social insurance payments	97 257.00	43 796.00
II.7 Provisions
II.8 Other accounts payable and short-term liabilities	516 891.00	220 043.00
TOTAL EQUITY AND LIABILITIES	10 080 436.00	10 244 537.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.77
UK Pound	1	Rs.73.45
Euro	1	Rs.64.55

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.