MIRA INFORM REPORT

Report Date :

05.05.2011

IDENTIFICATION DETAILS

Name :	K. M ARMEFTIS LIMITED
Registered Office :	16, Pelopida Street 3015 Limassol
Country :	Cyprus
Date of Incorporation :	04.07.1996
Com. Reg. No.:	C80091 Nicosia
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture of food products and beverages

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

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 – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Cyprus	B1	B1

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

Name & Address

Correct Registered Name:

K. M ARMEFTIS LIMITED International Name: Κ. Μ ΑΡΜΕΥΤΗΣ ΛΙΜΙΤΕΔ

Address:

16, Pelopida Street 3015 Limassol CYPRUS

Telephone:

+357-25561288

Fax:	+357-25565482

Email:

c.m.armeftis@cytanet.com.cy

Web:	Not Applicable

Business address:

16, Pelopida Street 3015 Limassol CYPRUS

Payment

Commercial Morality:

Satisfactory

Financial Strength:

Unable to comment Given the fact that no recent detailed financial statements were released to us, we feel unable to express a safe and reliable opinion on their creditability and Financial Strength.

Credit Rating:

Above Average Risk

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 company’s 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).

Registration number and city:

C80091 Nicosia

Registration date:

04.07.1996

Company Status

Registration status: 04.07.1996 - registered company
Activity status: 1996 - Company is active

Principals

Shareholders
Full Name	Personal ID	Function	Nationality	Equity	Address
GEOTHEA KTIMATIKI LIMITED Registration: No. C98940, Nicosia, CYPRUS		Shareholder		25.50% 23 Ordinary	11, Sfingos Street 6059 Larnaca CYPRUS
Mr. Matheos K Armeftis	803901	Shareholder	CYPRUS	50.00% 45 Ordinary	9, Filiras Street, Ayios Athanasios 4105 Limassol CYPRUS
Ms. Salomi Pantelidou	551314	Shareholder	CYPRUS	24.50% 22 Ordinary	7, Chalkidonos Street, Germasogia 4040 Limassol CYPRUS

Management
Full Name	Personal ID	Age	Function	Nationality	Qualification	Experience	Address
Mr. Matheos K Armeftis	803901	32	Director	CYPRUS	Non Retrievable	Also director of A. ARMEFTIS CO. LIMITED and D.S.C. DELICIOUS SALADS & CATERING LIMITED.	9, Filiras Street, Ayios Athanasios 4105 Limassol CYPRUS
Mr. Costakis Armeftis	372033		Director	CYPRUS	Non Retrievable	Non Retrievable	9A, Filiras Street, Ayios Athanasios 4105 Limassol CYPRUS
Ms. Nitsa Armefti	486821	59	Secretary	CYPRUS	Non Retrievable	Non Retrievable	9A, Faliras Street, Ayios Athanasios 4105 Limassol CYPRUS

Activities

Activities:

Importers & Manufacturers & Wholesalers & Retailers & Exporters

Operations:

NACE   main activity:   1500 MANUFACTURE OF FOOD PRODUCTS AND BEVERAGES   1500 MANUFACTURE OF FOOD PRODUCTS AND BEVERAGES The company in question was established in order to get involved with the manufacture of Cyprus traditional food i.e. Chalvas, tachini etc. The Subject sells mainly on a wholesale basis. Business Activities Food Processors and Manufacturers Industry Classifications - NAICS » All Other Food Manufacturing (NAICS # 31199) » All Other Miscellaneous Food Manufacturing (NAICS #311999)

Motor Vehicles

	2011
Number of vans	owned: 2
Total number of vehicles	2

Imports

INDIA
Payment terms:
C.O.D. (Cash On Delivery) 90%
Prepayment / Advance Payment 10%

The Subject imports raw materials from India

Exports

UNITED KINGDOM
Payment terms:
Credit Facilities 90 days

Products: Tachini

Agencies

Non Retrievable

Workforce

Number Of Employees:

7

Description Of Premises

Address:	16, Pelopida Street 3015 Limassol CYPRUS
Type of premises:	Premises
Type of ownership:	rented

Headquarters:

The company operates from rented office & factory located at the address given overleaf.

Branches:

The subject does not maintain any branches.

Related Companies

Affiliated Company
GEOTHEA KTIMATIKI LIMITED , CYPRUS

PLEASE NOTE ADDITIONAL INFORMATION ON RELATED COMPANIES:

"GEOTHEA KTIMATIKI LIMITED" - Affiliated Company registrered in Cyprus on 08/12/1998 under the registration number C98940. Further information was not available.

Bankers

HELLENIC BANK PUBLIC COMPANY LIMITED
2025 Nicosia, 200 Corner Limassol Avenue & Athalassas Avenue Strovolos

MARFIN POPULAR BANK PUBLIC CO LTD
2025 Nicosia, 154, Limassol Avenue, Strovolos


Account numbers are not disclosed.

Reportedly the Subject has an overdraft facility for an amount of 150,000 EURO.

Press

04.05.2011, No press / media available at present

Auditors / Accountants

Not Disclosed

Share Capital

Registered capital:	EUR 8,550.00 since 12.12.2008
Number of Ordinary:	5,000
Value per share of Ordinary:	EUR 1.71
Issued capital:	EUR 153.90 since 12.12.2008
Number of Ordinary:	90
Value per share of Ordinary:	EUR 1.71

Charges

24.09.1996	Floating Charge on all Company's Assets	CYP 25,000.00	in f/o:National Bank Of Greece (Cyprus) Limited
24.09.1996	Fixed Charge on the Company's Machinery	CYP 20,000.00	in f/o:National Bank of Greece (Cyprus) Limited

Finance

Amounts shown in Euro (EUR) (Approximately)		2010
	PROFIT & LOSS
	Sales Turnover	1,500,000.00

Please note that the latest financial details have not been released to us. The latest financial details are not available at the file of the company at the Official Companies Registry House; as the law provides for all companies. Further financial details are not available from other public sources.

Financial accounts are available at the Department of Registrar of Companies, provided that the company has submitted the compulsory accounts.

The annual general meeting of a company is convened within eighteen months of the date of its registration. Forty two days later the company should file its first annual return with the Registrar of Companies. Once a year, the annual return must be submitted. This should be done within fifteen months from the previous annual return, without disregarding the calendar year (sections 118, 120 and 125 cap. 113).

All Cypriot Companies, whether local or international, must maintain accurate books of accounts, which should reflect the true and correct position of their conduct, as well as give adequate explanation of their operations.

The Cypriot Company Law, which is closely modeled on its English counterpart, entails that company accounts must comprise of the following:

- Directors' report.
- Auditor's report.
- Financial statements as prescribed by International Financial Reporting Standards (IFRS) and consolidated Financial Statements in case of parent companies (unless specifically exempted).

Audited financial statements and an Income Tax Return are required for all companies, even companies with no taxable income and/or dormant companies.
Registered Branches (in Cyprus) of foreign companies are not legally bound to compile full separate branch accounts however when taxed on the island, are obliged to do so for income tax purposes.

Additionally they have to submit accounts of the main company, translated into Greek, to the Department of Registrar of Companies.
Partnerships are exempt from any requirement to prepare audited accounts, but they are legally bound to keep proper books of account which must be available for scrutiny by individual partners.

GENERAL COMMENTS

MAIN SOURCES OF INFORMATION - FOR THIS REPORT

i. Visited Official Companies’ Registry

ii. Interview with Company / Correspondence

iii. Desk Research

iv. Search through Internet Subscription Databases (Business Information)

v. Specialized Media Search Global & Local

vi. Search through internet Social Networks

vii. Infocredit Negative Record Database

viii. Relationship/Directorship Search through Infocredit Database

We contacted the company in question and talked to Mr. Matheos K Armeftis, company director, who confirmed the details of this report; however further financial information was not provided.

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

SECTOR ANALYSIS
Wholesale, Industrial, Retail & Services Sectors

The industrial sector, the wholesale and retail trade sector and the services sector are all open to non-resident investors. For the industrial and the wholesale and retail trade sectors, the Central Bank handles applications where foreign participation is below 50%. Where foreign participation exceeds 50%, or the investment is more than CyP750.000, applications are handled jointly by the Central Bank and the Ministry of Commerce, Industry and Tourism.
For services, up to 100% foreign participation is allowed and the Central Bank handles the applications.
Tremetoushiotis Developers Ltd
(Ref: http://www.top-properties.com/legal-information.html)

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

Mr. Matheos K Armeftis

Company Director

+35799613943

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.44.59
UK Pound	1	Rs.73.42
Euro	1	Rs.66.04

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.