MIRA INFORM REPORT

Report Date :

07.05.2011

IDENTIFICATION DETAILS

Name :	GA – K OVERSEAS CO. LIMITED
Registered Office :	Zachariades Court, 2nd Floor, Office 201, 9, Iouniou 1943 Street 3022 Limassol
Country :	Cyprus
Financials (as on) :	2010
Date of Incorporation :	01.01.1995
Com. Reg. No.:	C74247 Nicosia
Legal Form :	Private Limited Liability Company / International Business Company (IBC) (offshore)
Line of Business :	Industrial and Personal Service Paper

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	EUR 778,000.00
Status :	Satisfactory
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	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:

GA – K OVERSEAS CO. LIMITED

Address:

Zachariades Court, 2nd Floor, Office 201, 9, Iouniou 1943 Street 3022 Limassol CYPRUS

P.O.Box:

51588 - 3506 Limassol

Telephone:

+357-25711299 +357-25391213 +357-99313526

Fax:	+357-25342728

Email:

sazzam@gak.com.cy, amerhij@gak.com.cy amerhij@gak.com.cy

Web:	www.gapaperintl.com (Ultimate Parent's Website)

Business address:

Zachariades Court, 2nd Floor, Office 201, 9, Iouniou 1943 Street 3022 Limassol CYPRUS

Summary of Ratings

Maximum Credit:

EUR 778,000.00

Payment

PAYMENT HABITS:

No Complaints

Comment:

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

Commercial Morality:

Good

Financial Strength:

Good

Credit Rating:

Low risk

Legal Status

Legal Form:

Private Limited Liability Company / International Business Company (IBC) (offshore) The term International Business Company came to substitute the term offshore company. Following the latest changes in the Cyprus Tax laws, a Cyprus registered company is taxed at 10% on its net profits provided that the company has management and control in Cyprus. An IBC may be operated from abroad or may have a fully-fledged office in Cyprus.

Date of foundation:

01.01.1995

Registration number and city:

C74247 Nicosia

Registration date:

10.10.1995

National ID: C74247

Company Status

Registration status: 10.10.1995 - registered company
Activity status: 10.10.1995 - Company is active

Principals

Shareholders
Full Name	Personal ID	Function	Nationality	Equity	Address
Mr. Ibrahim Tewfik Hassan Elgammal	Pass: BC014854	Shareholder	CYPRUS	99.99% 9,999 Ordinary	Richmond Hill, 129, Strathearch Avenue Ontario CANADA
Mr. Ioakim Kallis	335855	Shareholder	CYPRUS	0.01% 1 Ordinary	6, Sfaktirias street Limassol 3117 Agias Fylaxis CYPRUS

Management
Full Name	Personal ID	Age	Function	Nationality	Qualification	Experience	Address
Mr. Ibrahim Tewfik Hassan Elgammal	Pass: BC014854		Director	CYPRUS	Non Retrievable	Non Retrievable	Richmond Hill, 129, Strathearch Avenue Ontario CANADA
Mr. Sammy Azzam			Director		Non Retrievable	Non Retrievable	Galatex Complex, Block 3, Apt. 66, Germasogeia, Georgiou Averof Street Limassol CYPRUS
Mr. Ioakim Kallis	335855		Director	CYPRUS	Non Retrievable	Non Retrievable	6, Sfaktirias street Limassol 3117 Agias Fylaxis CYPRUS
Ms. Elena Stylianou	751727	38	Secretary	CYPRUS	Non Retrievable	Also director of EFTHISTA DEVELOPERS LIMITED, TULIGOR ENTERPRISES LIMITED, HONBEE TRADING LIMITED AND COPSEY LIMITED.	Agias Elenis Building, Apt. 21 & 22, 6, Agias Elenis street Nicosia 1060 Nicosia CYPRUS

Activities

Activities:

Importers & Exporters & Wholesalers

Operations:

SIC   main activity   5113 Industrial and Personal Service Paper   5111 Printing and Writing Paper The subject is involved with the import (100%), exports (95%) and trade of pulp, paper, board grades, corrugated container board, bleached Kraft, pulp and other related products. Please note that the subject's registered address changed its name from Glastone Street to Iouniou 1943 Street . The company has not moved to new premises. Business Activities Paper - Industry Industry Classifications - NAICS » Paper (except Newsprint) Mills NAICS # 322121

Motor Vehicles

None

Imports

CANADA, UNITED STATES, BRAZIL, PORTUGAL, CHINA, KOREA, REPUBLIC OF, THAILAND, TAIWAN, PROVINCE OF CHINA, FAR EAST, POLAND, SPAIN, ITALY, GERMANY, INDONESIA
Payment terms:
O/A (Open Account) 60 - 90 days
L/C Base at Sigth
CAD (Cash Against Documents)
Prepayment / Advance Payment

Exports

MIDDLE EAST, EGYPT, SAUDI ARABIA, YEMEN, JORDAN, LEBANON, NORTH AFRICA, INDIA, GREECE, UNITED ARAB EMIRATES, FAR EAST
Payment terms:
L/C Base (Letter of Credit) 180 days
CAD (Cash Against Documents)
Prepayment / Advance Payment

Agencies

Name	Country	Product
SMURFIT STONE	UNITED STATES
LEE & MAN	UNITED STATES

Trade Suppliers

Same as agencies

Workforce

Number Of Employees:

5

Description Of Premises

Address:	Zachariades Court, 2nd Floor, Office 201, 9, Iouniou 1943 Street 3022 Limassol CYPRUS
Type of premises:	Premises
Type of ownership:	rented
Address:	Ayias Phylaxeos 6 Sfaktirias Limassol CYPRUS
Type of premises:	Previous Registered Address

Headquarters:

The company is operating from rented offices, which are located at the address given overleaf. Please note that the subject's registered address changed its name from Glastone Street to Iouniou 1943 Street . Tthe company has not moved to new premises.

Branches:

Subject has 1 branch in China .

Related Companies

Affiliated Company
GA PAPER INTERNATIONAL INC , CANADA

*PLEASE NOTE ADDITIONAL INFORMATION ON RELATED COMPANIES:

"GA Paper International Inc.” – Affiliated company registered and operating in Ontario – Canada for over 20 years. The company is among the leading traders for pulp, paper and board grades.

Bankers

BANK OF CYPRUS PUBLIC COMPANY LIMITED
Corner 121,Gr.Digenis & G.Neophytou, Mesa Geitonia, Limassol Tel: +357 25855255

PIRAEUS BANK (CYPRUS) LIMITED
160A Arch. Makariou III Aveneu, Limassol, 3026, Cyprus

Account numbers are not disclosed.

Reportedly, an overdraft facility is not required.

Press

No press / media available at present.

Auditors / Accountants

Date: 31.12.2010
Financials have not been audited
Company: Ernst & Young, Nicolaou Pentadromos Center,Office 908,Block A, P.O. Box 50123 - 3601 Limassol

Share Capital

Registered capital:	EUR 25,650.00 since 01.01.2008
Number of Ordinary:	15,000
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
of which paid in cash:	CYP 10,000.00

Charges

None in current years

Finance

Amounts shown in US Dollar (USD)		2010	2009	2008
	PROFIT & LOSS
	Sales Turnover	46,060,541.00	29,738,363.00	42,630,484.00
	Cost of Sales	-44,254,940.00	-27,381,211.00	-40,191,908.00
	Gross Profit	1,805,601.00	2,357,152.00	2,438,576.00
	Other Operating Income	83,423.00	82,557.00	72,441.00
	Selling / Distribution / Promotional Expenses		-453,794.00	-428,621.00
	Administrative Expenses	-532,950.00	-64,160.00	-60,319.00
	Operational Profit	1,356,074.00	1,921,755.00	2,022,077.00
	Finance Costs	-110,682.00	-113,501.00	-157,492.00
	Financial Income		34,161.00	33,417.00
	Profit Before Taxation	1,245,392.00	1,842,415.00	1,898,002.00
	Corporate Income Tax		-190,153.00	-196,417.00
	Net Profit	1,245,392.00	1,652,262.00	1,701,585.00
	BALANCE SHEET
	FIXED ASSETS	12,930.00	9,301.00	11,779.00
	Total Fixed Assets	12,930.00	9,301.00	11,779.00
	CURRENT ASSETS	1,936.00
	Trade Debtors (receivables from customer)	8,532,766.00	8,565,788.00	4,703,847.00
	Prepayments and Accrued Income	282,990.00
	Taxation Receivable	540.00
	Cash in Hand & at Bank	1,803,347.00	1,661,624.00	3,903,446.00
	Other Current Assets	1,936.00
	Total Current Assets	10,621,580.00	10,227,412.00	8,607,293.00
	Total Assets	10,634,509.00	10,236,713.00	8,619,072.00
	Other Reserves	9,205,604.00
	Retained Profit / Earnings) for the year		7,770,146.00	6,117,884.00
	Total Equity	9,227,159.00	7,791,742.00	6,139,480.00
	CURRENT LIABILITIES	791,748.00
	Trade Creditors	615,602.00	2,357,668.00	2,296,901.00
	Taxation Due		86,763.00	178,101.00
	Bank Overdraft		540.00	4,590.00
	Total Current Liabilities	1,407,350.00	2,444,971.00	2,479,592.00
	Total Equity & Liabilities	10,634,509.00	10,236,713.00	8,619,072.00
	SHARE CAPITAL	21,555.00	21,596.00	21,596.00

Please note that the financials were provided from official sources.

Ratios

	2010	2009	2008
Current ratio - 2 is an acceptable result, but even 1,8 is considered excellent in bank practice Current Assets / Current Liabilities	7.55	4.18	3.47
Quick ratio (QR ) - 1 is an excellent result, but anything above 0,8 is considered good (Current Assets - Inventory) / Current Liabilities	7.55	4.18	3.47
Return on assets ( ROA ) Net Profit After Tax / Total assets	0.12	0.16	0.20
Return on equity ( ROE ) Net Profit After Tax / Total Equity	0.13	0.21	0.28
Return on sales ( ROS ) Net Profit x 100 / Sales Turnover	2.70	5.56	3.99
Collection Period Ratio (in days) Accounts Receivable x 365 / Sales Turnover	67.62	105.13	40.27
Cash Liquidity Ratio Liquid Assests / Current Liabilities x 100	128.14	67.96	157.42
Receivables Ratio (%) Accounts Receivable / Current Liabilities x 100	606.30	350.34	189.70
Current Assets Ratio (%) (Current Assets - Accounts Receivable) / Current Liabilities x 100	754.72	418.30	347.13
Shareholder Equity Increase Ratio (%) Total Equity / Share Capital x 100	42,807.51	36,079.56	28,428.78

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

The company is involved in the trade of pulp, paper, board grades, corrugated container board, bleached kraft pulp, etc.

As it was mentioned lots of support and back-up is provided by the affiliated company in Canada, nevertheless the subject in question is considered to be an independent legal entity.

They buy products from all over the world but mainly from North and Latin America as well as Europe and promote and sell their products, in the Middle East Region, North Africa and Greece.

They are considered to be among the leaders in their line of business.

We contacted the company in question several times, where we talked with a company officer, who informed us that Mr Sammy Azzam, company director, was not available to talk to us. Therefore a message was left in order to contact us back as soon as possible. Should any additional information becomes available we will forward them to you as soon as possible.

Please note that the information included in the report was obtained from the Official Companies’ Registrar and from a previous interview with the subject.

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

Contact information

Email address:

amerhij@gak.com.cy

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.44.78
UK Pound	1	Rs.73.43
Euro	1	Rs.65.27

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.