MIRA INFORM REPORT

Report Date :

30.05.2011

IDENTIFICATION DETAILS

Name :	CENTRAL PURCHASING, LLC (HARBOR FREIGHT TOOLS)

Registered Office :	3491 Mission Oaks Blvd, Camarillo, CA 93012-5034

Country :	United States

Date of Incorporation :	30.06.2004

Legal Form :	Limited Liability Company

Line of Business :	Tool and Equipment Retailer

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	USD 1,500,000

Status :	Satisfactory

Payment Behaviour :	Regular

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)

United States

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

Bottom of Form

GEOPOLITICS - UNITED STATES

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal

Economic Risk: Nil

Currency: USD

Branch Situation: Stable

IDENTIFICATION

Ordered as:	Central Purchasing LLC
Address in the order:	1440 3rd Street Oxnard CA 93030 USA

Legal Name:	CENTRAL PURCHASING, LLC (HARBOR FREIGHT TOOLS)
Trade Name:	HARBOR FREIGHT TOOLS
Legal Address	3491 Mission Oaks Blvd, Camarillo, CA 93012-5034, USA
Operative Address	1440 3rd Street, Oxnard, CA 93030, USA (Operative Locations)
Telephone:	+ 1 (805) 388-1000	Document Number :	200418410022
Fax:	+ 1 (805) 445-4925	Legal Form:	Limited Liability Company
Email:	NA	Registered in:	California
Website:	http://www.harborfreight.com	Date Created:	1968
Manager:	Alan Smidt, Chairman	Date Incorporated:	June 30, 2004
Staff:	1,600 employees	Stock:	NA
		Value:	NA
Activity:	Tool and equipment retailer

BANKS

Name of the Bank

UNION BANK OF CALIFORNIA

BUSINESS

HISTORY
	The company was founded in 1968.
PRINCIPAL ACTIVITY
	The company, better recognized by its trade name, Harbor Freight Tools, is one of the country's largest tool and equipment catalog retailers. Harbor Freight Tools offers more than 7,000 tools and equipment items. The company also sells via the Internet.
Sales are:
	Retail
Clients:
	General Clientele
Operations area:
	National, Local
The subject employs 1600 employee(s)
PAYMENTS
	made on a 45 days basis - monitored over the last 12 months
LOCATION
Headquarters
	The company is headquartered at 3491 Mission Oaks Blvd., Camarillo, CA 93011.
Branches:
	The company has other locations at: 1440 3rd Street, Oxnard, CA 93030, USA (Operative, Given Address)

Shareholders - Manager - Related Companies

Shareholders Parent Company(ies):
	This is a privately owned business. Smith family is the major shareholder.
Management:
	Alan Smidt, Chairman Eric Smidt, President Bob Glickman, Chief Financial Officer

Financials - COMMERCIAL TRENDS AND FORECAST

As a private company the subject does not publish any financial statements.
We have contacted the department Accounts Payable, who refused to provide us any financial data on grounds of confidentiality.
However our financial sources could provide us with the following data (estimates):

Currency	DATE
USD	2010
Turnover	287,600,000
Operating Income	10,400,000
Net Income	8,900,000
Net worth	4,000,000
Bank liabilities	3,600,000
The cash flow is	good

Currency	DATE
USD	12-31-2008
Turnover	278,800,000
The cash flow is	NORMAL

Legal Fillings

There are several UCC files listed with the Secretary of State of California, among them:

There are no legal filings listed with the District Court.

For information:

The Uniform Commercial Code (UCC) is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America.

The UCC deals primarily with transactions involving personal property (movable property), not real property (immovable property).

It allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.

The Uniform Commercial Code Bureau files and maintains on financial obligations (including IRS liens) incurred by individuals (in business as a sole proprietor), business entities and corporations.

Rating

Local credit bureau gave a good credit rate.

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

Final Opinion

The company presents correct income for its size.

The subject is well established. This is a large company.

A credit line can be granted.

SUMMARY

FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	CORRECT	Public Records	NO
Indebtedness	CONTROLLED	Payments	REGULAR
Cash	NORMAL

ADVISED CREDIT

USD 1,500,000

APPENDIX

Person Interviewed
	Jenny
Position
	Accounts Payable
Comments
	We have contacted Jenny, Accounts Payable, who refused to provide us any financial data on grounds of confidentiality.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.21
UK Pound	1	Rs.74.31
Euro	1	Rs.64.40

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.