MIRA INFORM REPORT

Report Date :

09.03.2011

IDENTIFICATION DETAILS

Name :	CHRISTOFOROS SOTERIOU LIMITED

Registered Office :	11 Tripoleos Street, 2024 Nicosia

Country :	Cyprus

Financials (as on) :	2009

Date of Incorporation :	28.12.1992

Com. Reg. No.:	C52930 Nicosia

Legal Form :	Private Limited Liability Company

Line of Business :	Importers & Wholesalers & Distributors of Homefurnishings

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	EUR 52,000.00

Status :	Moderate

Payment Behaviour :	No Complaints

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)

Cyprus

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

company Name & Address

NAME INQUIRED UNDER:

Christoforos Soteriou Ltd

Correct Registered Name:

CHRISTOFOROS SOTERIOU LIMITED

Address:

11 Tripoleos Street
2024 Nicosia CYPRUS

Telephone:

+357-22311971
357-22-311971

Fax:

+357-22314926

Email:

info@csoteriou.com

Web:

www.csoteriou.com

Business address:

11 Tripoleos Street
2024 Nicosia CYPRUS

Summary of Ratings

Maximum Credit: EUR 52,000.00

Payment

PAYMENT HABITS:

No Complaints

Comment:

A check against all available information sources revealed that no late payment incidents against Subject Company exist.

Good For Amount & Terms Of Inquiry:

Too high
its safer to split the amount in two lots.

Commercial Morality:

Moderate

Financial Strength:

Moderate

Legal Status

Legal Form:

Private Limited Liability Company

Private Limited Liability Company: It is incorporated by one or more individuals or companies (maximum: 50). It is managed by a board of directors consisted of minimum two individuals or juridical persons. Capital is required. The shareholders are liable for the companys debts to the extent of their respective interests in the capital. Its shares are not to be sold through public subscription. Private Limited Liability companies are obliged to file their accounts with the Registrar of Companies (Company Registry).

Date of foundation:

01.01.1967

Registration number and city:

C52930 Nicosia

Registration date:

28.12.1992

National ID: C52930

Registration status: 28.12.1992 - registered company
Activity status: 1992 - Company is active

Principals

Shareholders
Full Name	Personal ID	Function	Nationality	Equity	Address
Mr. Petros Soteriou	671353	Shareholder	CYPRUS	85.00% 8,500 Ordinary	Lakatamia, 6 Oktavianou Street 2332 Nicosia CYPRUS
Ms. Ourania Soteriou	705029	Shareholder	CYPRUS	15.00% 1,500 Ordinary	Strovolos, 13 Stylianou Lena Street 2019 Nicosia CYPRUS

Management
Full Name	Personal ID	Age	Function	Nationality	Qualification	Experience	Address
Mr. Christoforos Soteriou	157408		Director	CYPRUS	Non Retrievable	Non Retrievable	Strovolos, 13 Stylianou Lena Street 2019 Nicosia CYPRUS
Mr. Petros Soteriou	671353		Director / Secretary	CYPRUS	Non Retrievable	Non Retrievable	Lakatamia, 6 Oktavianou Street 2332 Nicosia CYPRUS

Activities

Activities:

Importers & Wholesalers & Distributors

Operations:

SIC
  main activity
  5023 Homefurnishings (except homefurnishings sold via retail method)

  5719 Miscellaneous Homefurnishings Stores (blinds and shades)
  5199 Nondurable Goods, NEC (except specialty advertising)

The company was established in order to get involved int he import and trade on a wholesale basis of household utensils eg. flatware, Cookware, Dinnerware, Glassware, Kitchenware, Gadgets, Gifts, Premiums, Decoratives and Lamps. Company's activities also include the distribution and promotion imported products.

Business Activities
Household Implements and Electrical Goods Wholesalers Trading

Industry Classifications - NAICS
» Home Furnishing Merchant Wholesalers
» Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers

Detailed Description of Industry Classifications
Home Furnishing Merchant Wholesalers NAICS #42322
Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers NAICS #42361

Motor Vehicles

	2011
Number of Vehicles	owned: 14
Total number of vehicles	14

Imports

CHINA, HONG KONG, ITALY, GERMANY, SPAIN, GREECE, SPAIN, PORTUGAL, NETHERLANDS, TAIWAN, PROVINCE OF CHINA, INDONESIA
Payment terms:
O/A (Open Account) 90 days

Exports

The subject does not engage in any export activities.

Agencies

Name	Country	Product
Bormioli Raco	ITALY	glassware
Cari Schmidt	GERMANY	flatware - cookware
T.V.S.	ITALY	non-stick cookware
Rayen	SPAIN	household articles
Eternal	HONG KONG, KOREA, REPUBLIC OF	frames
Delta Group	ITALY	melamine wares
Milikoni	ITALY	general household

Trade Suppliers

Non Retrievable

Workforce

Number Of Employees:

Description Of Premises

Address:	11 Tripoleos Street 2024 Nicosia CYPRUS
Type of premises:	Premises

Headquarters:

The company is operating from owned premises, which are located at the address given overleaf. Premises comprised of offices, the showrooms and limited storage space.

Branches:

The subject has one branch in Latsia Village Area. These are warehouse premises.

Related Companies

None.

Bankers

BANK OF CYPRUS PUBLIC COMPANY LIMITED
2002 Nicosia, 51, Stasinou Street, Ayia Paraskevi, Strovolos

Account number is not disclosed.

Press

08.03.2011, No press / media available at present.

Auditors / Accountants

Non Retrievable

Share Capital

Registered capital:	EUR 17,100.00 since 01.01.2008
Number of Ordinary:	10,000
Value per share of Ordinary:	EUR 1.71

Issued capital:	EUR 17,100.00 since 01.01.2008
Number of Ordinary:	10000
Value per share of Ordinary:	EUR 1.71

Paid-up capital:	EUR 17,100.00 since 01.01.2008

Charges

13.05.1993	Floating Charge	CYP 10,000.00	in f/o:Bank of Cyprus Ltd
20.09.1996	Floating Charge	CYP 70,000.00	in f/o:Bank of Cyprus Ltd
17.10.1997	Mortgage	CYP 80,000.00	in f/o:Bank of Cyprus Ltd
16.03.2006	Floating Charge on all Company's Assets	CYP 200,000.00	in f/o:Bank of Cyprus Public Company Limited
24.03.2006	Mortgage	CYP 760,000.00	in f/o:Bank of Cyprus Public Company Limited

Finance

	2009	2008	2007	2003
PROFIT & LOSS
Sales Turnover	2096113 EUR	2337589 EUR	2172305 CYP	900000 CYP
Cost of Sales	-1270639 EUR	-1417429 EUR	-1303324 CYP
Gross Profit	825474 EUR	920160 EUR	868981 CYP
Other Operating Income	3246 EUR	18461 EUR	733 CYP
Selling / Distribution / Promotional Expenses	-445426 EUR	-509069 EUR	-430500 CYP
Administrative Expenses	-230022 EUR	-241278 EUR	-229837 CYP
Operational Profit	153272 EUR	188274 EUR	209377 CYP
Finance Costs	-79681 EUR	-98534 EUR	-69634 CYP
Financial Income	8988 EUR	5868 EUR	3929 CYP
Profit Before Taxation	82579 EUR	95608 EUR	143672 CYP
Corporate Income Tax	-10321 EUR	-11262 EUR	-16724 CYP
Net Profit	72258 EUR	84346 EUR	126948 CYP
BALANCE SHEET
Property, Plant & Equipment	1636550 EUR	1688196 EUR	572962 CYP
Intangible Assets	1715 EUR	7706 EUR
Total Fixed Assets	1638265 EUR	1695902 EUR	572962 CYP
Inventory / Stock	575763 EUR	695714 EUR	160169 CYP
Average Stock				250000 CYP
Trade Debtors (receivables from customer)	1172781 EUR	1247610 EUR	592461 CYP
Cash in Hand & at Bank	17209 EUR	7652 EUR	1607 CYP
Total Current Assets	1765753 EUR	1950976 EUR	754237 CYP
Total Assets	3404018 EUR	3646878 EUR	1327199 CYP
Retained Profit / Earnings) for the year	945616 EUR	963060 EUR	601997 CYP
Total Equity	962716 EUR	980160 EUR	611997 CYP
Long - Term Loans	849866 EUR	897507 EUR	119866 CYP
Trade Creditors	1037065 EUR	1027768 EUR	335322 CYP
Short - Term Borrowings, Loans	553050 EUR	739181 EUR	248418 CYP
Taxation Due	1321 EUR	2262 EUR	11596 CYP
Total Current Liabilities	1591436 EUR	1769211 EUR	595336 CYP
Total Equity & Liabilities	3404018 EUR	2666718 EUR	1327199 CYP
SHARE CAPITAL	17100 EUR	17100 EUR	10000 CYP

Please note that the financial statements were provided by the subject. Figures for 2009 and 2008 are stated in Euro where as figures for 2007 and before are stated in Cyprus Pounds.

Ratios

	2009	2008	2007	2003
Current ratio - 2 is an acceptable result, but even 1,8 is considered excellent in bank practice Current Assets / Current Liabilities	1.11	1.10	1.27	-
Quick ratio (QR ) - 1 is an excellent result, but anything above 0,8 is considered good (Current Assets - Inventory) / Current Liabilities	1.11	1.10	1.27	-
Return on assets ( ROA ) Net Profit After Tax / Total assets	0.02	0.02	0.10	-
Return on equity ( ROE ) Net Profit After Tax / Total Equity	0.08	0.09	0.21	-
Return on sales ( ROS ) Net Profit x 100 / Sales Turnover	3.45	3.61	5.84	-
Day's supply in inventory Sales Turnover / Inventory	3.64	3.36	13.56	-
Collection Period Ratio (in days) Accounts Receivable x 365 / Sales Turnover	204.22	194.81	99.55	-
Cash Liquidity Ratio Liquid Assests / Current Liabilities x 100	1.08	0.43	0.27	-
Receivables Ratio (%) Accounts Receivable / Current Liabilities x 100	73.69	70.52	99.52	-
Current Assets Ratio (%) (Current Assets - Accounts Receivable) / Current Liabilities x 100	110.95	110.27	126.69	-
Shareholder Equity Increase Ratio (%) Total Equity / Share Capital x 100	5,629.92	5,731.93	6,119.97	-

GENERAL COMMENTS

The company was established in order to get involved int he import and trade on a wholesale basis of household utensils eg. flatware, Cookware, Dinnerware, Glassware, Kitchenware, Gadgets, Gifts, Premiums, Decoratives and Lamps. Company's activities also include the distribution and promotion imported products.

We contacted the company in question and talked to Mr. Christoforos Soteriou, company director, who confirmed the general details of this report. Moreover, Mr. Soteriou provided us with the subject's latest financial statements.

A check against our records revealed that no negative payment incidents against Subject Company, such as unpaid invoices, dishonoured cheques and utility bills, bankruptcies exist etc.

Sector Analysis:

Retail Sector
The retail and consumer sector is developing rapidly in Cyprus as in Central and Eastern Europe especially following the accession of Cyprus to EU in May 2004. This development has signaled a period of uncertainty for companies in the industry where traditional boundaries that used to define geography, store types, trade channels, trading partners and organizations functions are very volatile. Companies in order to be successful must be able to respond quickly to increased competition and regulatory changes.

Consumers are becoming more demanding and able to shop around in order to pay less. New competitors are continuously entering the market coupled with the impact of e-commerce, smartcard schemes, and parallel importing.
Companies in the sector must rethink their earnings strategies and look to new efficiencies to drive bottom line growth. Maintenance of margins through balancing costs and pricing will remain a challenge in this ever-competitive industry.

PWC
Ref: http://www.pwc.com/extweb/industry.nsf/docid/e3fdd093df3497b88025711400448a3a

Contact Person:

Mrs. Maro Giakoumi

Assistant Manager

Contact information:

Telephone number:

357 22 311971

Mr. Petros Soteriou, company's director

CYPRUS-FACTS AND FIGURES
Population: 1,084,748
Area: 9,251 SQ KM (about 33.4 percent of land is under Turkish control, and a further 1.8 percent forms part of the buffer zone along the cease-fire line.)
Capital: Nicosia
Currency: Euro
Currency Code: EUR

GDP (Purchasing Power Parity): $22.85 Billion	GDP - Composition by Sector:
GDP (Official Exchange Rate):$23.22 Billion	Agriculture: 2.1%
GDP - Real Growth Rate: -0.8%	Industry: 19.%
GDP - Per Capita (PPP): $21,200	Services: 78.9%

Industries:
Tourism, Food And Beverage Processing, Cement And Gypsum Production, Ship Repair And Refurbishment, Textiles, Light Chemicals, Metal Products, Wood, Paper, Stone, And Clay Products.

The area of the republic of Cyprus under government control has a market economy dominated by the service sector, which accounts for 78% of GDP.
Tourism, financial services and real estate are the most important sectors.
Changing growth rates over the past decade reflect the economy's reliance on tourism.
Due to the global crisis, Cyprus economy entered into recession in the middle of 2009. The budget deficit reached the level of 3.5% of GDP, violating EU's budget deficit criteria of no more than 3% of GDP.

Therefore, in order to prevent country's weakening finances, the government intents to implement measures to cut the cost of the state payroll, tax evasion, and amend social benefits.

Last Updated: March 2010

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.03
UK Pound	1	Rs.72.98
Euro	1	Rs.62.94

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

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%)

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