MIRA INFORM REPORT

Report Date :

12.05.2011

IDENTIFICATION DETAILS

Correct Name :	SABIEDRIBA AR IEROBEZOTU ATBILDIBU UNISEL CO
Registered Office :	Udens iela 12 - 116, Riga, Rigas region, LV-1007
Country :	Latvia
Financials (as on) :	31.12.2010
Date of Incorporation :	12.03.2004
Com. Reg. No.:	40003254990
Legal Form :	Limited Company
Line of Business :	Wholesale of coffee, tea, cocoa and spices

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 :	50 000 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 – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Latvia	b2	b2

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

Identification

Full Name

:

Sabiedriba ar ierobezotu atbildibu "UNISEL CO"

Name in national language

:

Sabiedriba ar ierobe�otu atbildibu "UNISEL CO"

Office address

:

Udens iela 12 - 116, Riga, Rigas region, LV-1007, Latvia

Legal Address

:

Udens iela 12 - 116, Riga, Rigas region, LV-1007, Latvia

Contacts

:

-	Phone	:	(+371) 67600656, 29275194
-	Fax	:	(+371) 67618833
-	E-mail	:	info@unisel.lv
-	WWW	:	www.unisel.lv

SUMMARY

Legal Form : SIA (Ltd by Latvian law)

Incorporation : 1995

Staff : 9

Litigation events : n/a Remarks on payments : none

Sales :	1 837 642.00 LVL ( for 12 months, ended 31.12.2010 )
	1 578 783.00 LVL ( for 12 months, ended 31.12.2009 )

Credit Opinion

Credit Limit

:

50 000 EUR Credit line at value over the Credit Limit is advised to be secured with proper guarantees.

Incorporation

:

1995

Registration Data

Date of registration

:

12.03.2004

Registration number

:

40003254990

Registr. authority

:

Commercial Register (Latvia)

VAT number

:

LV40003254990

Registr. place

:

Latvia

Legal Form

:

SIA (Ltd by Latvian law)

since n/a

Share Capital

:

100 000 LVL (registered)

since n/a

Shareholders

:

-	Singh Samir Shekhar				75.00 %
		reg. number	:	090268-14450
		address	:	Dzelzavas iela 76/3-57, Riga, Rigas region, Latvia
-	Mr Sakhuja Ritesh Kumar				25.00 %
		reg. number	:	030573-14654
		address	:	Augusta Deglava iela 57-25, Latvia

Board / Executives

Executives

Chairman of the board

:

Mr Singh Samir Shekhar (India)

Member of the board

:

Mr Sakhuja Ritesh Kumar (India)

Authorised signature

:

Mr Sakhuja Ritesh Kumar

Mr Singh Samir Shekhar

Changes in Registration Data

- 26.11.2009

:

shareholders

- 02.09.2008

:

shareholders

- 25.10.2007

:

managers

- 18.07.2005

:

managers

- 25.10.2004

:

managers

- 12.03.2004

:

shareholders

- 12.03.2004

:

managers

- 23.02.2001

:

shareholders

- 22.12.2000

:

managers

- 05.07.2000

:

shareholders

- 29.01.1999

:

shareholders

- 09.09.1998

:

shareholders

- 25.11.1997

:

managers

- 31.01.1997

:

shareholders

- 24.01.1997

:

shareholders

Activities

:

-	5149	Coffee & Tea
		(NACE 5137: Wholesale of coffee, tea, cocoa and spices)

wholesale of coffee and tea

Staff employed

:

9

Staff History

:

-	8
	( the data as of 31.12.2010 )
-	6
	( the data as of 2008 )
-	5
	( the data as of 2007 )
-	8
	( the data as of 2006 )

Export

:

Commonwealth of Indep. States
2010 - above 60% of turnover

Import

:

India, Colombia

Facilities

Real estate

:

own:
-	Premises - Office
	size/amnt	:	160.00 sq.m
	address	:	Udens iela 12 - 116, Riga, Rigas region, LV-1007, Latvia

Subsidiaries and Participation

:

none

Bankers

:

-	SEB banka (Latvia)
-	SWEDBANKA (Latvia)
-	TRASTA KOMERCBANKA (Latvia)

Suppliers

:

general number - 5 (2 of them are VIP suppliers ensuring the general part of deliveries)

Litigation

:

There are no bankruptcy/insolvency listed in the subject name in the official sources. The company has been involved as a co-defendant into several litigations (the last one was dated with 2008) by contesting th rights for brand ownership/distribution.

Remarks on payment

:

none

There are no records on unpaid invoices/defaulted payments noted by local debt collection companies.

Business mortgages

- 14.10.2010

:

Commercial pledge
	pledgee	:	TRASTA KOMERCBANKA (Latvia)

( the data as of 14.10.2010 )

- 15.04.2010

:

Commercial pledge
	pledgee	:	NORVIK BANKA, AS (Latvia)

( the data as of 15.04.2010 )

Financial Elements

Period, months	12	12
Ended	31.12.2010	31.12.2009
Currency	LVL	LVL
Non-current assets	188 515.00	191 541.00
incl: - Fixed assets	185 497.00	188 010.00
- Financial assets
Current assets	714 602.00	321 668.00
incl: - Stock	495 369.00	233 911.00
- Debtors	163 161.00	72 485.00
- Cash	56 072.00	15 272.00
ASSETS TOTAL	903 117.00	513 209.00
Equity	146 021.00	112 524.00
incl: - Share capital	100 000.00	100 000.00
Liabilities Total	753 695.00	398 989.00
incl: - Long-term liabilities	157 033.00	168 417.00
- Short-term liabilities	596 662.00	230 572.00
EQUITY AND LIABILITIES TOTAL	903 117.00	513 209.00
Net sales	1 837 642.00	1 578 783.00
Cost of goods sold	-1 596 974.00	-1 346 009.00
Operating profit
Profit before taxation	41 563.00	16 643.00
Net profit	33 497.00	12 524.00
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	2.26	1.05
Profit before taxation / Net sales
Operating margin of profit, %
Operating profit / Net sales
Return on investment, %	28.46	14.79
Profit before taxation / Equity
Current assets turnover	2.57	4.91
Net sales / Current assets
Working capital	117 940.00	91 096.00
Current assets - Short-term liabilities
Leverage	0.16	0.22
Equity / Total assets
Current ratio	1.20	1.40
Current assets / Short-term liabilities
Quick ratio	0.37	0.38
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	5.16	3.55
Total liabilities / Equity

FINAL COMMENTS

We have spoken to both managers - Sakhuja Ritesh Kumar and Singh Samir Shekhar. They have provided us with some general information but for further details about their business they required to release the name of the customer.

Registration History

- 05.06.1995

:

Registration number	:	000325499
Registr. authority	:	State Register (Latvia)

( the data as of 05.06.1995, cancelled since 12.03.2004 )

COUNTRY REVIEW

COUNTRY REVIEW

LATVIA

Update June, 2010

Data published by State Board for Statistical Data:

Export volume, millions LVL

2008 2009 2010

Jan.-Dec. Jan.-Dec. Jan.-May

4429.0; 3602.2 1682.2

Growth rate, % 109.6 81.3 122.02

Import volume, millions LVL

2008 2009 2010

Jan.-Dec. Jan.-Dec. Jan.-May

7527.6; 4709.8 2041.0

Growth rate, % 96.75 62.56 104.9

National Gross Product (actual prices), thousands LVL:

Gross domestic product at current and constant prices (thsd lats), seasonally adjus

ted data

1st quarter 2nd quarter 3rd quarter 4th quarter total

2008 4117003 4111747 4109005 3848387 16186142

2009 3585030 3327998 3158854 3044135 13116017

2010 3107465 - - -

Key Economic Indicators

(% annual real changes) 2007 2008 2009 2010 (1-st Q)

GDP, LVL mln. 13957 16186 13116 3107

Export, LVL mln. 4038,7 4429 3602,2

Import, LVL mln. 7746,3 7527,6 4709,8

Unemployment rate, 5,7 9.9 19.7 20.4

Foreign direct investment stock (mln LVL) 23123.1 22608.5 5785.2

Consumer prices, y/y, % 10,1 15,4 3.5 -0.4

STATEMENT OF THE BANK OF LATVIA REGARDING GDP

According to the Bank of Latvia, GDP has grown quarter-on-quarter

09.06.2010

Releasing the data on gross domestic product in the first quarter of 2010, the Cent

ral Statistics Agency confirmed the previous flash estimate, indicating a 6% GDP dr

op year-on-year (including the overall value added that dropped by 6.2% over the co

urse of the year). Even though the data on the seasonally adjusted GDP changes comp

ared to the fourth quarter of 2009 are not yet available, in our assessment, they w

ere positive, i.e. GDP has grown 0.3-0.4%.

As the situation in the foreign markets keeps gradually improving, a real growth of

goods and services exports has been observed for several consecutive quarters, rea

ching a positive annual growth in the first quarter of 2010 of 4.6%. Owing to a ris

ing foreign demand and further improvements in the competitiveness in Latvian produ

cts, the processing sector posted a notable annual growth of 6.8%. The results of e

ntrepreneur surveys compiled by the European Commission also indicate a positive de

velopment in the sector. Growth was likewise observed in the transport and communic

ations sector due to a rapid rise in transportation services.

At the same time, the annual drop in private consumption was less. In the fourth qu

arter of 2009 it was -19.5%, but in the first quarter of 2010 only -5.8%. Similar t

o GDP, consumption, according to our estimates, has also grown quarter-on-quarter (

according to seasonally adjusted data). Even though the income available to the pop

ulation continued to drop, the rapid improvement in consumer confidence became a st

abilization factor in private consumption as the consumer behaviour changed and cau

tious savings were accumulated less. A possibly important role in the consumption d

ynamics was played by the expected repayment of the pensions withheld in 2009 accor

ding to the decision of the Constitutional Court.

With the industry and service capacities were still much underused, investment in f

ixed assets, continued to decrease, which accounted for the most substantial negati

ve contribution in the GDP changes. The formation of gross equity capital in the fi

rst quarter dropped 44.4% year-on-year. A rapid annual drop in investment was obser

ved in nearly all sectors, except the information and communications services secto

r.

Despite export growth, the positive net export contribution decreased. That was due

to the more rapid rise in imports mainly because of increased private consumption

and pro-cyclical behaviour of savings (changes in savings in the first quarter acco

unted for an important positive contribution to GDP changes). As private consumptio

n stabilized and demand for intermediate import goods necessary for the manufacture

of export products grew, the rate of the real drop in goods and services imports c

ontinues to decrease.

In order to achieve an annual rise in the economy after the rapid downslide, positi

ve changes are in order for another two or three consecutive quarters. Thus a GDP a

nnual rise could be registered at the end of the year.

APPENDIX A

Financial Statements

Period, months	12	12
Ended	31.12.2010	31.12.2009
Currency	LVL	LVL
PROFIT AND LOSS ACCOUNT
010 Net turnover	1 837 642.00	1 578 783.00
020 Cost of sales	-1 596 974.00	-1 346 009.00
025 Change in stock, finished and semi-finished goods
030 Gross profit or loss	240 668.00	232 774.00
035 Facilities produced at the expense of own funds for internal use
040 Distribution costs	-100 004.00	-87 365.00
050 Administrative expenses	-73 983.00	-51 284.00
060 Other operating income	9 829.00	6 430.00
062 Economical expenses
064 Gross profit or loss
065 Administrative charges
067 Depreciation of fixed assets
068 Other operating expenses	-17 488.00	-55 067.00
070 Income from participating interests
080 Income from securities and loans forming long-term
investments
090 Other interest receivable and similar income	17 459.00	391.00
100 Value adjustments in respect of financial assets and
of investments held as current assets
110 Interest payable and similar charges	-34 918.00	-29 236.00
120 Profit or loss on ordinary activities before taxation	41 563.00	16 643.00
130 Extraordinary income
140 Extraordinary charges
150 Extraordinary profit or loss before taxation
151 Profit or loss before taxation	41 563.00	16 643.00
160 Income-tax for fiscal period	-7 007.00	-6 884.00
170 Other taxes	-298.00	-270.00
175 Deferred Income-tax for fiscal period	-761.00	3 035.00
180 Profit or loss for fiscal period	33 497.00	12 524.00
995 Depreciation
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
BALANCE SHEET
A S S E T S
NON-CURRENT ASSETS
Intangible assets
010 Cost of research and development
020 Concessions, patents, licences, brands, etc.	3 018.00	3 531.00
021 Other intangible assets
030 Goodwill
040 Payments on account for intangible assets
050 Total intangible assets	3 018.00	3 531.00
Tangible assets
060 Real estate	156 340.00	166 163.00
061 Long-term investments in leased tangible assets
070 Plant and machinery	21 159.00	14 878.00
080 Other fixtures and fittings, tools and equipment	7 998.00	6 969.00
090 Payments on account and tangible assets in cours
of construction
091 Prepayment for tangible assets
100 Total tangible assets	185 497.00	188 010.00
III Investment property, total
107 Total biological assets
Financial assets
110 Shares in subsidiaries
120 Loans to subsidiaries
130 Shares in related companies
140 Loans to related companies
150 Other securities and capital participation
160 Other loans
170 Own shares and parts
180 Loans to the members of the company and
the management
182 Trade debtors
184 Deferred income tax asset
190 Total financial assets
200 NON-CURRENT ASSETS TOTAL	188 515.00	191 541.00
CURRENT ASSETS
Stock
210 Raw materials and consumables	105.00	20.00
220 Work in progress
230 Finished goods and goods for resale	479 379.00	225 618.00
240 Orders outstanding
250 Payments on account	15 885.00	8 273.00
260 Working and productive animals
270 Total stock	495 369.00	233 911.00
275 LONG-TERM INVESTMENT ASSETS WITHHELD
FOR SALE
Debtors
280 Trade debtors	142 765.00	54 981.00
290 Amounts owed by subsidiaries
300 Amounts owed by related companies
310 Other debts	10 298.00	16 460.00
320 Subscribed capital called but not paid
330 Short-terms loans to the members of the company
and the management
340 Prepayments and accrued	10 098.00	1 044.00
341 Accrued income
343 Deferred tax liabilities
350 Total debtors	163 161.00	72 485.00
Securities current assets and short-term capital
participations
360 Shares in subsidiaries
370 Own shares and parts
380 Other securities and capital participation
385 Financial derivatives
390 Total securities and shares
400 Cash at bank and in hand (total)	56 072.00	15 272.00
410 CURRENT ASSETS TOTAL	714 602.00	321 668.00
420 BALANCE	903 117.00	513 209.00
L I A B I L I T I E S
CAPITAL AND RESERVES
430 Share capital	100 000.00	100 000.00
440 Share premium account
450 Long-term assets revaluation reserve
Reserves
460 Reserve stipulated by law
470 Reserve for own shares and parts
480 Reserve provided by charter
490 Other reserves
500 Total reserves
Retained earning or uncovered losses
510 Profit or loss brought forward from previous years	12 524.00	0.00
520 Profit or loss for the current year	33 497.00	12 524.00
530 CAPITAL AND RESERVES TOTAL	146 021.00	112 524.00
PROVISIONS
540 Provisions for pensions and similar obligations
550 Provisions for taxation
560 Other provisions	3 401.00	1 696.00
570 PROVISIONS TOTAL	3 401.00	1 696.00
CREDITORS
Long-term liabilities
580 Debenture loans
590 Convertible loans
600 Amounts owed to credit institutions	141 717.00	151 325.00
601 Other loans	9 127.00	11 664.00
602 Advanced payments received
603 Trade debts
610 Amounts owed to subsidiaries
620 Amounts owed to related companies
621 Taxes and social security payments
630 Other creditors
631 Deferred income
632 Non-paid dividends of current year
633 Non-paid dividends of previous years
634 Deferred tax liabilities	6 189.00	5 428.00
640 Total long-term liabilities	157 033.00	168 417.00
Short-term liabilities
650 Debenture loans
660 Convertible loans
670 Amounts owed to credit institutions	188 656.00	34 344.00
671 Other loans	39 462.00	40 768.00
680 Advanced payments received	77 584.00	0.00
690 Trade debts	280 473.00	149 014.00
700 Bills of exchange payable
710 Amounts owed to subsidiaries
720 Amounts owed to related companies
730 Taxes and social security payments	3 987.00	2 477.00
740 Other creditors	2 249.00	1 982.00
750 Deferred income	0.00	252.00
760 Fiscal period dividends
770 Non-paid dividends of previous years
771 Accrued charges	4 251.00	1 735.00
773 Deferred tax liabilities
775 Alienated financial instruments
995 Depreciation
780 Total short-term liabilities	596 662.00	230 572.00
790 CREDITORS TOTAL	753 695.00	398 989.00
800 BALANCE	903 117.00	513 209.00
990 Employees number	7.00	0.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.69
UK Pound	1	Rs.73.12
Euro	1	Rs.64.39

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.