MIRA INFORM REPORT

Report Date :

09.11.2011

IDENTIFICATION DETAILS

Name :	ALEXANDROS SOLEAS & SON LIMITED
Registered Office :	Kaimakli Industrial Area, 18, Poleodomias Street, Nicosia, 1037 Nicosia
Country :	Cyprus
Financials (as on) :	2009
Date of Incorporation :	08.01.1974
Com. Reg. No.:	C6242 Nicosia
Legal Form :	Private Limited Liability Company
Line of Business :	Importers & Wholesalers & Distributors & Commission Agents of Electrical Appliances, Television and Radio Sets

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	EUR 500,000.00
Status :	Good
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 – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Cyprus	b1	b1

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:

Alexandros Soelas & Son Ltd

Correct Registered Name:

ALEXANDROS SOLEAS & SON LIMITED International Name: ΑΛΕΞΑΝΔΡΟΣ ΣΟΛΕΑΣ & ΥΙΟΣ ΛΙΜΙΤΕΔ

Address:

Kaimakli Industrial Area, 18, Poleodomias Street Nicosia 1037 Nicosia CYPRUS

P.O.Box:

21892 - 1514 Nicosia

Telephone:

+357-22437242 +357-22437243 +357-22877770 +357-22877773

Fax:	+357-22435599

Email:

a.soleas.ltd@cytanet.com.cy

Web:	Not Applicable

Business address:

Kaimakli Industrial Area, 18, Poleodomias Street Nicosia 1037 Nicosia CYPRUS

Summary of Ratings

Maximum Credit:

EUR 500,000.00

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 Safer to split the amount in two lots.

Commercial Morality:

Good

Financial Strength:

Good

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).

Date of foundation:

01.01.1910

Registration number and city:

C6242 Nicosia

Registration date:

08.01.1974

National ID: C6242

Company Status

Registration status: 08.01.1974 - registered company
Activity status: 08.01.1974 - Company is active

Principals

Shareholders
Full Name	Personal ID	Function	Nationality	Equity	Address
Mr. Alexandros Solea	477810	Shareholder	CYPRUS	51.25% 41,000 Ordinary	5A,Vasilissis Amalias Street 1101 Nicosia CYPRUS
Ms. Antroulla A. Solea	515147	Shareholder	CYPRUS	48.50% 38,800 Ordinary	5A,Vasilissis Amalias Street 1101 Nicosia CYPRUS
Mr. Iacovos A. Soleas	810006	Shareholder	CYPRUS	0.12% 100 Ordinary	5A,Vasilissis Amalias Street 1101 Nicosia CYPRUS
Mr. Marios A. Soleas	834414	Shareholder	CYPRUS	0.13% 100 Ordinary	5A,Vasilissis Amalias Street 1101 Nicosia CYPRUS

Management
Full Name	Personal ID	Age	Function	Nationality	Qualification	Experience	Address
Mr. Andreas Christodoulou			Accountant	CYPRUS	Non Retrievable.	Non Retrievable.	CYPRUS
Mr. Marios A. Soleas	834414	28	Director	CYPRUS	Non Retrievable.	Also director and shareholder of ALEX. SOLEAS HOLDERS LTD	5A,Vasilissis Amalias Street 1101 Nicosia CYPRUS
Mr. Akis Soleas	497755	56	Director	CYPRUS	Non Retrievable.	Non Retrievable.	Agios Dometios, 17, Thetidos street Nicosia 2364 Nicosia CYPRUS
Mr. Iacovos A. Soleas	810006	34	Director (General Manager)	CYPRUS	Non Retrievable.	Also direcotr and shareholder of ALEX. SOLEAS HOLDERS LTD	5A,Vasilissis Amalias Street 1101 Nicosia CYPRUS
Ms. Ivi Solea	211509	81	Director	CYPRUS	Non Retrievable.	Non Retrievable.	5A,Vasilissis Amalias Street 1101 Nicosia CYPRUS
Ms. Antroulla A. Solea	515147	57	Director / Secretary	CYPRUS	Non Retrievable.	Also director and shareholder of ALEX. SOLEAS HOLDERS LTD	5A,Vasilissis Amalias Street 1101 Nicosia CYPRUS

Please note that Mr Marios A. Soleas and Mir Iacovos A. Soleas holds 0.125% of the subject's capital.

Activities

Activities:

Importers & Wholesalers & Distributors & Commission Agents

Operations:

SIC   main activity   5064 Electrical Appliances, Television and Radio Sets   5149 Groceries and Related Products, NEC (bottling mineral or spring water) The company in question is involved in the import (100%), distribution and trade on a wholesale (100%) basis of foodstuff and household electrical appliances. Business Activities Foodstuff Household Appliances Industry Classifications - NAICS » General Line Grocery Merchant Wholesalers » Electrical and Electronic Appliance, Television, and Radio Set Merchant Wholesalers Detailed Description of Industry Classifications General Line Grocery Merchant Wholesalers NAICS # 42441 | This industry comprises establishments primarily engaged in the merchant wholesale distribution of a general line (wide range) of groceries. Establishments primarily engaged in the merchant wholesale distribution of a specialized line of groceries are classified elsewhere in Sector 42, Wholesale Trade, according to the product sold. Electrical and Electronic Appliance, Television, and Radio Set Merchant Wholesalers NAICS # 42362 | This industry comprises establishments primarily engaged in the merchant wholesale distribution of household-type electrical appliances, room air-conditioners, gas and electric clothes dryers, and/or household-type audio or video equipment. Merchant wholesale distribution of gas household-type appliances (except gas clothes dryers)--are classified in Industry 423720, Plumbing and Heating Equipment and Supplies (Hydronics) Merchant Wholesalers; and Merchant wholesale distribution of nonhousehold-type video cameras--are classified in Industry 423410, Photographic Equipment and Supplies Merchant Wholesalers.

Motor Vehicles

	2011	2010
Number of vans	owned: 10	owned: 10
Number of cars	owned: 7	owned: 7
Total number of vehicles	17	17

Imports

GREECE, ITALY, UNITED KINGDOM, CHINA, GREECE, PORTUGAL, THAILAND, FRANCE, UNITED STATES
Payment terms: 
L/C Base (Letter of Credit)
CAD (Cash Against Documents)

Exports

GREECE
Payment terms: 
CAD (Cash Against Documents)

Agencies

Name	Country	Product
"Chios Gum Mastic Association"	GREECE	foodstuff
"Vasiloudis"	GREECE	foodstuff
"Noparasco"	ITALY	dry nuts
"Tietsim Natwe"	CHINA	N/A
"National Oil & Foodstuff"	CHINA	foodstuff
"Leonardo Neto Pereira"	PORTUGAL	N/A
Chameu	THAILAND

Trade Suppliers:

Non Retrievable

Workforce:

Number Of Employees:

50

Description Of Premises

Address:	Kaimakli Industrial Area, 18, Poleodomias Street Nicosia 1037 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, warehouses, coldstores and a factory / packinghouse. Premises are shared with the sister company. Please note that this is also the subject's registered address.

Branches:

The subject maintains the following branches/divisions: "Masticha Shop" - Themistocli Dervi Street,Nicosia,Cyprus.These are shop premises. 5, Queen's Amalias street, Nicosia, Cyprus. THese are owned office premises.

Related Companies

Sister Company
ALEX. SOLEAS HOLDERS LTD , CYPRUS , National ID: C220143

Sister Company
FOODSOL LTD , CYPRUS , National ID: C6243

Affiliated Company
V.K SERAPHIM & SONS LIMITED , CYPRUS , National ID: C1580

*PLEASE NOTE ADDITIONAL INFORMATION ON RELATED COMPANIES:

"Foodsol Limited" – Sister Company registered in Cyprus on 09.01.1974 under the registration number C6243. This subject is currently dormant. The company’s previous name was “Alexandros Soleas & Son (Importers) Limited” and was involved with the import of foodstuff.

"V.K.Seraphim & Sons Limited" – Affiliated Company registered in Cyprus on 13.07.1966 under the registration number C1580.

"ALEX. SOLEAS HOLDERS LTD" - Sister company registered in Cyprus on 23/01/2008 under the registration number C220143. No further information available regarding the subject.

Bankers

BANK OF CYPRUS PUBLIC COMPANY LIMITED
4A,Kantara Avenue,, 1041 Kaimakli,Tel.:357 22847200 Fax 22431966 

HELLENIC BANK PUBLIC COMPANY LIMITED
18,Kantaras Avenue,1037 Nicosia,Tel: 357 22500500

National Bank of Greece
15A Kantaras Avenue,Kaimakli,1037 Nicosia,Cyprus Tel:357 22430171


Account numbers are not disclosed.

Press:

09.11.2011, No press / media available at present.

Auditors / Accountants

Auditor: Mr Efthimios Economou
Date: 31.12.2009
Financials have been audited
Company: P. KALOPETRIDES & CO , P.O.BOX 56383,3306, Limassol,Cyprus.Tel:25364368

Share Capital

Registered capital:	EUR 171,000.00 since 01.01.2008
Number of Ordinary:	100,000
Value per share of Ordinary:	EUR 1.71
Issued capital:	EUR 136,800.00 since 01.01.2008
Number of Ordinary:	80000
Value per share of Ordinary:	EUR 1.71
Paid-up capital:	EUR 136,800.00 since 01.01.2008

Charges

27.12.1996	Mortgage	CYP 100,000.00	in f/o:Bank of Cyprus Public Limited
27.06.2000	Mortgage	CYP 300,000.00	in f/o:Bank of Cyprus Public Limited
27.12.1996	Mortgage	CYP 100,000.00	in f/o:Bank of Cyprus Public Limited
08.06.1990	Mortgage	CYP 100,000.00	in f/o:Bank of Cyprus Public Company Limited

Finance

Amounts shown in Euro (EUR)		2009	2008	2007
	PROFIT & LOSS
	Sales Turnover	10,873,928.00	9,812,620.00	7,964,981.00
	Cost of Sales	-6,580,978.00	-6,130,467.00	-4,980,991.00
	Gross Profit	4,292,950.00	3,682,153.00	2,983,990.00
	Other Operating Income	44,083.00	31,165.00	58,241.00
	Selling / Distribution / Promotional Expenses	-945,095.00	-848,366.00	-555,250.00
	Administrative Expenses	-1,132,190.00	-987,262.00	-903,929.00
	Other Operating Expenses	-138,099.00
	Operational Profit	2,121,649.00	1,877,690.00	1,583,052.00
	Finance Costs	-38,508.00	-8,825.00	-77,548.00
	Financial Income			1,860.00
	Profit Before Taxation	2,083,141.00	1,868,865.00	1,507,364.00
	Corporate Income Tax	-235,647.00	-190,007.00
	Net Profit	1,847,494.00	1,678,858.00
	BALANCE SHEET
	Property, Plant & Equipment	2,070,665.00	2,232,537.00	2,151,034.00
	Intangible Assets	47,841.00	54,675.00	61,510.00
	Total Fixed Assets	2,118,506.00	2,287,212.00	2,212,544.00
	Inventory / Stock	2,238,946.00	2,201,973.00	2,261,558.00
	Trade Debtors (receivables from customer)	2,855,190.00	3,225,511.00	2,398,229.00
	Cash in Hand & at Bank	1,269,215.00	901,582.00	908,915.00
	Total Current Assets	6,363,351.00	6,329,066.00	5,568,702.00
	Total Assets	8,481,857.00	8,616,278.00	7,781,246.00
	Retained Profit / Earnings) for the year	6,882,593.00	7,159,074.00	5,480,221.00
	Total Equity	7,019,393.00	7,295,874.00	5,616,909.00
	Long - Term Loans	276,359.00	459,594.00	643,838.00
	Trade Creditors	600,336.00	814,752.00	487,362.00
	Short - Term Borrowings, Loans	541,129.00	17,056.00	1,019,030.00
	Taxation Due	44,640.00	29,002.00	14,107.00
	Total Current Liabilities	1,186,105.00	860,810.00	1,520,499.00
	Total Equity & Liabilities	8,481,857.00	8,616,278.00	7,781,246.00
	SHARE CAPITAL	136,800.00	136,800.00	136,688.00

Financial Statements were provided by the subject's accountant, Mr Efthymios Economou. As we were stated, financial statements for year 2010 are not yet audited.

Ratios

	2009	2008	2007
Current ratio - 2 is an acceptable result, but even 1,8 is considered excellent in bank practice Current Assets / Current Liabilities	5.36	7.35	3.66
Quick ratio (QR ) - 1 is an excellent result, but anything above 0,8 is considered good (Current Assets - Inventory) / Current Liabilities	5.36	7.35	3.66
Return on assets ( ROA )  Net Profit After Tax / Total assets	0.22	0.19	-
Return on equity ( ROE ) Net Profit After Tax / Total Equity	0.26	0.23	-
Return on sales ( ROS ) Net Profit x 100 / Sales Turnover	16.99	17.11	-
Day's supply in inventory Sales Turnover / Inventory	4.86	4.46	3.52
Collection Period Ratio (in days) Accounts Receivable x 365 / Sales Turnover	95.84	119.98	109.90
Cash Liquidity Ratio Liquid Assests / Current Liabilities x 100	107.01	104.74	59.78
Receivables Ratio (%) Accounts Receivable / Current Liabilities x 100	240.72	374.71	157.73
Current Assets Ratio (%) (Current Assets - Accounts Receivable) / Current Liabilities x 100	536.49	735.25	366.24
Shareholder Equity Increase Ratio (%) Total Equity / Share Capital x 100	5,131.14	5,333.24	4,109.29

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 subject is a long established company, founded by the grandfather of Messrs Alexandros and Akis Soleas, in the early 1910's. 

For many years it has been trading under the style "Alexandros Soleas & Son". In 1974, they incorporated two separate limited liability companies to take over:

Alexandros Soleas & Son Limited
Alexandros Soleas & Son (Importers) Limited

Originally the present company was responsible for the distribution of their goods and the second one "Alexandros Soleas & Son (Importers) Ltd" responsible for the imports and the agencies. 

Later on, the second company (i.e. Alexandros Soleas & Son (Importers) Limited) was wound-up and all its activities were taken over by "Alexandros Soleas and Son Ltd", the subject in question. 

Currently the company is involved successfully in the import and trade of foodstuff and household appliances. Their products are sold to supermarkets and to other wholesalers throughout Cyprus. 

We contacted the company in question and talked to Mr Iacovos Soleas, company director, who confirmed general details of this report and also authorized us to contact the subject's accountant, Mr Efthymios Efthymiou, who provided us with the subject's latest financial information.

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.

COUNTRY DEVELOPMENTS: 

On, 04th of November 2011 published that: Moody's Investors Service has today downgraded Cyprus's government bond ratings to Baa3 from Baa1 and placed the ratings on review for further possible downgrade. The rating agency has also downgraded Cyprus's short-term rating to Prime-3 from Prime-2 and placed it on review for further possible downgrade.
The key drivers for today's rating announcement are: 1. The high likelihood that the Cypriot banking system will require state support in 2012 as a result of the large expected write-downs on its exposures to Greek government bonds... 2. The Cypriot government's loss of international market access and the resulting likelihood that the government will need to seek emergency funding from official sources. 3. Cyprus's weaker-than-expected institutional capacity to approve and implement the budgetary and structural changes that are needed to correct the government's rising debt trajectory and improve the longer-term sustainability of its public finances.

On 10th of August 2011 Cyprus mail published that: Fitch cut Cyprus’ credit rating by two notches to BBB on Wednesday due to fiscal slippages, saying the island state was likely to require a bailout to meet its funding needs.

"The two-notch downgrade of ratings to 'BBB' reflects the actual and anticipated fiscal slippage, compounded by Fitch's expectation that the sovereign will be unable to access the international debt markets in order to refinance an increasing debt maturity profile in H211 and H112," Fitch said in a statement.

The other two main rating agencies, Standard and Poor’s and Moody’s, both cut the island's rating at the end of July. Moody's rates Cyprus Baa1, Standard and Poor's BBB-plus. 

On 19th of August 2011 Financial Mirror News published that: The industrial turnover index for reached 129.8 in May (base 2005=100) according to the Statistical Service, recording an increase of 3.8% compared with May 2010. Industrial production in the same period rose by 1.1%. For the period January-May 2011, the turnover index recorded an increase of 1.9% over the same period of the previous year. For manufacturing alone, the turnover index for May 2011 reached 121.0, recording an increase of 1,5% compared with May 2010.

The price index of construction materials reached 126.11 units (base year 2005=100,00) in July according to the Statistical Service Cystat, recording a marginal increase of 0.02% over the previous month. In the period January - July 2011, the index recorded an increase of 4.13% compared to the same period last year. The biggest increase so far has been in electromechanical products, price of which rose compared with the year earlier by 8.1% in the first seven months of the year. Metallic products rose by 6.9% and minerals rose by 4.3% in the same period. A milder increase of 2.9% was recorded for mineral products, while a decline of 0.4% was recorded for wood, insulation materials, chemicals and plastics. (End of Country Developments).

Contact Person:

Mr Iacovos Soleas

Company director

357-22347242

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.38
UK Pound	1	Rs.79.20
Euro	1	Rs.67.84

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%)

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