MIRA INFORM REPORT

Report Date :

22.06.2011

IDENTIFICATION DETAILS

Name :	BETTA-PORCELAIN, LLC
Registered Office :	15 lva Tolstogo str., Kiev, 01033
Country :	Ukraine
Financials (as on) :	31.12.2010
Date of Incorporation :	19.07.2005
Com. Reg. No.:	33594063
Legal Form :	Limited Liability Company
Line of Business :	Wholesale of china and glassware, wallpaper and cleaning materials

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 :	3 000 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 – March 31^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
Ukraine	b2	b2

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

Bottom of Form

Identification

Full Name

:

Tovarystvo z obmezhenoyu vidpovidalnistyu BETTA-FARFOR

Name in English

:

BETTA-PORCELAIN, LLC

Office address

:

15 lva Tolstogo str., Kiev, 01033, Ukraine

Legal Address

:

15 lva Tolstogo str., Kiev, 01033, Ukraine

Contacts

:

-	Phone/fax	:	(+38 044) 5319866
-	E-mail	:	info@posudmeister.com.ua
-	WWW	:	www.posudmeister.com.ua

Company SUMMARY

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

Incorporation : 2005

Staff : n/a

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

Sales :	6 735.60 th UAH ( for 12 months, ended 31.12.2010 )
	6 211.60 th UAH ( for 12 months, ended 31.12.2009 )

Credit Opinion

Credit Limit

:

3 000 EUR Credit line at value over the Credit Limit is advised to be secured with proper guarantees.

Incorporation

:

2005

Registration Data

Date of registration

:

19.07.2005

Registration number

:

33594063

Registr. authority

:

Local Administration (Kiev, Ukraine)

VAT number

:

335940626508

Registr. place

:

Ukraine

Number of VAT-certificate: 37106610 Date of issue: 17.08.2005

Legal Form

:

TOV (Limited Liability Company by Ukrainian Law)

since 19.07.2005

Share Capital

:

31 000 UAH (registered)

since 19.07.2005

Shareholders

:

-	Mr Eryomenko Vladimir Viktorovich (Ukraine)				100.00 %
		share's book value	:	31 000 UAH

Board / Executives

Executives

Director

:

Mr Eryomenko Vladimir Viktorovich (Ukraine)

Authorised signature

:

Mr Eryomenko Vladimir Viktorovich

Activities

:

-	5023	Kitchenware
		(NACE 5144: Wholesale of china and glassware, wallpaper and cleaning materials)

Trading of kitchenware.

Staff employed

:

n/a

There is no current information in the official sources. The company's administration refused to provide this information either.

Staff History

:

-	16
	( the data as of 31.12.2009 )

Export

:

none

Import

- 01.01.2011

:

Fiscal period: 12 month(s), currency: UAH

1 663 318.00

Italy, Sri Lanka

- 01.01.2010

:

Fiscal period: 12 month(s), currency: UAH

1 853 481.00

- 01.01.2009

:

Fiscal period: 12 month(s), currency: UAH

1 603 412.00

Facilities

Real estate

:

unknown ownership:
-	Premises - Office
	address	:	15 lva Tolstogo str., Kiev, 01033, Ukraine

Branches

:

none

Subsidiaries and Participation

:

none

Bankers

:

-	OTP (Ukraine)
	bank code	:	300528
	account(s)	:	26005001307442 EUR

Suppliers

:

-	Dankotuwa Porcelain (Sri Lanka)
-	Geteburg Corp. (Italy)

Litigation

:

According to the official data as of 21.06.2011, there are no bankruptcy records registered in the name of the subject company.

There are no suits/litigation files recorded in the name of BETTA-FARFOR 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

Period, months	12	12	12
Ended	31.12.2010	31.12.2009	31.12.2008
Currency	UAH th	UAH th	UAH th
Non-current assets	277.60	293.60	17.70
incl: - Fixed assets	277.60	293.60	17.70
- Financial assets	0.00	0.00	0.00
Current assets	3 484.60	3 126.60	2 588.30
incl: - Stock	2 383.50	2 228.20	1 512.50
- Debtors	1 029.80	848.00	891.70
- Cash	71.30	50.40	184.10
ASSETS TOTAL	3 792.30	3 512.10	2 768.90
Equity	608.60	784.50	990.80
incl: - Share capital	31.00	31.00	31.00
Liabilities Total	3 183.70	2 727.60	1 778.10
incl: - Long-term liabilities	0.00	0.00	0.00
- Short-term liabilities	3 183.70	2 727.60	1 778.10
EQUITY AND LIABILITIES TOTAL	3 792.30	3 512.10	2 768.90
Net sales	6 735.60	6 211.60	5 223.80
Cost of goods sold
Operating profit
Profit before taxation	-175.90	-206.30	393.40
Net profit	-175.90	-206.30	294.80
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	-2.61	-3.32	7.53
Profit before taxation / Net sales
Operating margin of profit, %
Operating profit / Net sales
Return on investment, %	-28.90	-26.30	39.71
Profit before taxation / Equity
Current assets turnover	1.93	1.99	2.02
Net sales / Current assets
Working capital	300.90	399.00	810.20
Current assets - Short-term liabilities
Leverage	0.16	0.22	0.36
Equity / Total assets
Current ratio	1.09	1.15	1.46
Current assets / Short-term liabilities
Quick ratio	0.35	0.33	0.61
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	5.23	3.48	1.79
Total liabilities / Equity

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 Vladimir Viktorovich (director) on 21.06.2011 by the tel. number: +38 044 5319866. He provided us with some data on the company, however, refused to disclose any other information unless the customer name become available. We sent the letter (of inquiry) to the Company by the e-mail: info@posudmeister.com.ua, but there was no reply received by now. If we receive additional information we will inform you at once. We do not have any information about office 59.

COUNTRY REVIEW

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%).

APPENDIX A

Financial Statements

Period, months	12	12	12
Ended	31.12.2010	31.12.2009	31.12.2008
Currency	UAH th	UAH th	UAH th
SMALL ENTREPRENEUR's PROFIT AND LOSS
ACCOUNT (s)
010 Sales revenue (Income from sales of goods, work,	6 735.60	6 211.60	5 223.80
services
020 Indirect taxes and other compulsory payments	1 122.60	1 035.30	870.60
030 Net sales revenue (010-020)	5 613.00	5 176.30	4 353.20
040 Other operating income	33.80	46.10	199.70
050 Other income from ordinary activity	0.00	0.00	0.00
060 Extraordinary income	0.00	0.00	0.00
070 Net revenue total (030+040+050+060)	5 646.80	5 222.40	4 552.90
080 Change in work-in-progress and finished goods	0.00	0.00	0.00
090 Tangible expenses	31.80	118.20	23.10
100 Payroll costs	483.30	317.80	545.30
110 Allocation to social needs	177.20	119.30	191.30
120 Amortization charges	44.70	36.40	9.50
130 Other operating charges	4 626.10	4 837.00	2 125.50
131 incl.	2 036.10	1 620.50	0.00
140 Cost of sales	459.60	0.00	1 245.00
150 Other ordinary activity expenses	0.00	0.00	19.80
160 Extraordinary charges	0.00	0.00	0.00
170 Profit tax	0.00	0.00	98.60
180 Charges total (090+100+110+120+130+140+150+	5 822.70	5 428.70	4 258.10
+160+170+ -080)
190 Net profit (070-180)	-175.90	-206.30	294.80
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
BALANCE SHEET
ASSETS
I. NON-CURRENT ASSETS
020 Construction in progress	0.00	0.00	0.00
Fixed assets
030 residual assets	277.60	293.60	17.70
031 acquisition cost	406.80	378.10	65.80
032 depreciation	129.20	84.50	48.10
Long-term financial assets
040 Capital participation in other enterprises	0.00	0.00	0.00
070 Other non-current assets	0.00	0.00	0.00
080 NON-CURRENT ASSETS TOTAL	277.60	293.60	17.70
II. CURRENT ASSETS
Stock
100 Raw materials, consumables and supplies	54.90	19.10	6.90
130 Finished goods	2 328.60	2 209.10	1 505.60
Trade debtors:
160 net realizable value	493.10	350.40	754.70
161 acquisition cost	493.10	350.40	754.70
162 doubtful debts reserve	0.00	0.00	0.00
Accounts receivable
170 Budget accounts receivable	173.00	227.80	0.00
210 Other current accounts receivable	363.70	269.80	137.00
220 Current financial investments	0.00	0.00	0.00
Cash at bank and in hand
230 Funds in local currency	71.30	50.40	184.10
240 Funds in foreign currencies	0.00	0.00	0.00
250 Other current assets	0.00	0.00	0.00
260 CURRENT ASSETS TOTAL	3 484.60	3 126.60	2 588.30
270 III. DEFERRED CHARGES	30.10	91.90	162.90
280 ASSETS TOTAL	3 792.30	3 512.10	2 768.90
EQUITY AND LIABILITIES
I. CAPITAL AND RESERVES
300 Authorized capital	31.00	31.00	31.00
320 Additional contributed capital	0.00	0.00	0.00
340 Reserve capital	0.00	0.00	0.00
350 Retained earnings (loss)	577.60	753.50	959.80
360 Unpaid capital (minus)	0.00	0.00	0.00
380 CAPITAL AND RESERVES TOTAL	608.60	784.50	990.80
430 II. PROVISIONS FOR EXPENSES AND	0.00	0.00	0.00
LIABILITIES
480 III. LONG-TERM LIABILITIES	0.00	0.00	0.00
IV. SHORT-TERM LIABILITIES
500 Short-term amounts owed to credit institutions	0.00	0.00	0.00
510 Short-term portion of long-term liabilities	0.00	0.00	0.00
530 Trade creditors	2 950.20	2 399.40	1 454.30
Accounts payable:
550 Budget accounts payable	0.00	0.00	2.00
570 Insurance payments	16.00	12.70	10.20
580 Accrued payroll	32.30	25.50	20.60
610 Other short-term liabilities	185.20	290.00	291.00
620 SHORT-TERM LIABILITIES TOTAL	3 183.70	2 727.60	1 778.10
630 V. DEFERRED INCOME	0.00	0.00	0.00
640 EQUITY AND LIABILITIES TOTAL	3 792.30	3 512.10	2 768.90

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.91
UK Pound	1	Rs.72.90
Euro	1	Rs.64.48

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.