MIRA INFORM REPORT

Report Date :

10.11.2011

IDENTIFICATION DETAILS

Correct Name :	SIA EURO TRADING COMPANY
Registered Office :	Daugavgrivas 83, Riga, Rigas region, LV-1007
Country :	Latvia
Financials (as on) :	31.12.2010
Date of Incorporation :	02.05.2005
Com. Reg. No.:	40003741755
Legal Form :	Limited Company
Line of Business :	Wholesale of wood, construction materials and sanitary equipment

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 :	60 000 EUR
Status :	Moderate
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 – September 30^th, 2011

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

:

Name in national language

:

SIA "Euro Trading Company"

Office address

:

Daugavgrivas 83, Riga, Rigas region, LV-1007, Latvia

Legal Address

:

Daugavgrivas 83, Riga, Rigas region, LV-1007, Latvia

Contacts

:

-	Phone	:	(+371) 67461013
-	Fax	:	(+371) 67460818
-	E-mail	:	info@eurotradingcompany.com
-	WWW	:	www.eurotradingcompany.com

Company SUMMARy

Legal Form : SIA (Ltd by Latvian law)

Incorporation : 2005

Staff : 28

Litigation events : none Remarks on payments : yes

Sales :	2 366 253.00 LVL ( for 12 months, ended 31.12.2010 )
	1 411 226.00 LVL ( for 12 months, ended 31.12.2009 )

Credit Opinion

Credit Limit

:

60 000 EUR Credit line at value over the Credit Limit is advised to be secured with proper guarantees.

Incorporation

:

2005

Registration Data

Date of registration

:

02.05.2005

Registration number

:

40003741755

Registr. authority

:

Commercial Register (Latvia)

VAT number

:

LV40003741755

Registr. place

:

Latvia

Legal Form

:

SIA (Ltd by Latvian law)

since n/a

Share Capital

:

2 000 LVL (registered)

since n/a

Shareholders

:

-	PALESU KOMPANIJA, SIA (Latvia)				50.00 %
-	Mr Sneiders, Ivo (Latvia)				50.00 %
		reg. number	:	290877-11090
		address	:	Zilu iela 22, Kandavas pagasts, Kandava, Tukuma region, Latvia
-	Thomson Ian Frederick (United Kingdom)				25.00 %
		reg. number	:	800002-37706
		address	:	20 White Hoose Barry, CF62 6FB, United Kingdom
	( the data cancelled since 18.02.2008 )
-	Scott Timber (Holdings) Limited (United Kingdom)				50.00 %
		reg. number	:	007011684
		address	:	Forties Campus, Rosyth Europarc, Rosyth, Fife, KY11 2XS, Scotland, United Kingdom
	( the data cancelled since 02.01.2006 )
-	Mr Sneiders, Ivo (Latvia)				100.00 %
		reg. number	:	290877-11090
		address	:	Zilu iela 22, Kandavas pagasts, Kandava, Tukuma region, Latvia
	( the data cancelled since 18.07.2005 )

Board / Executives

Executives

Member of the board

:

Mr Sneiders, Ivo (Latvia)
	pers. code: 290877-11090
	address: Zilu iela 22, Kandavas pagasts, Kandava, Tukuma region, Latvia

Authorised signature

:

Mr Sneiders, Ivo

Changes in Registration Data

- 05.05.2011

:

managers

- 09.05.2008

:

managers

- 18.02.2008

:

shareholders

- 18.04.2006

:

managers

- 02.01.2006

:

shareholders

- 18.07.2005

:

shareholders

Activities

:

-	5031	Lumber/Plywood/Millwork, NEC
		(NACE 5153: Wholesale of wood, construction materials and sanitary equipment)

wholesale of wooden building materials

Staff employed

:

28

( the data as of 30.06.2011 )

Staff History

:

-	21
	( the data as of 31.12.2010 )
-	19
	( the data as of 2009 )
-	24
	( the data as of 2008 )

Export

:

According to administration's data: Our main markets are UK, Ireland, Germany, Saudi Arabia, UAE, Jordan, Israel and Benelux

Subsidiaries and Participation

:

n/a

Bankers

:

-	Swedbank (Latvia)
	account(s)	:	LV81HABA0551023541817

Litigation

:

none

Remarks on payment

- 02.07.2009

:

Debt collection (confirmed)				0.00
	payment status	:	complete

( the data as of 02.07.2009, cancelled since 30.11.2009 )

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

Business mortgages

- 05.04.2007

:

Commercial pledge
	pledgee	:	UniCredit Bank, AS

( the data as of 05.04.2007, cancelled since 29.04.2011 )

- 08.06.2006

:

Commercial pledge
	pledgee	:	HVB Bank Latvia (Latvia)

( the data as of 08.06.2006, cancelled since 05.04.2007 )

Financial Elements

Period, months	12	12
Ended	31.12.2010	31.12.2009
Currency	LVL	LVL
===== BALANCE SHEET ====================
--- A S S E T S --------------------
NON-CURRENT ASSETS
- Intangible assets	1 923.00	0.00
- Fixed assets	72 309.00	54 919.00
- Investments in tangible assets
- Financial assets
- Other non-current assets
Non-current assets total	74 232.00	54 919.00
CURRENT ASSETS
- Stock	116 911.00	105 810.00
- Debtors	187 734.00	157 405.00
- Other receivables
- Short-term financial investments
- Cash	34 180.00	24 079.00
- Other current assets
Current assets total	338 825.00	287 294.00
Assets total	413 057.00	342 213.00
--- EQUITY AND LIABILITIES ---------
CAPITAL AND RESERVES
- Share capital	2 000.00	2 000.00
- Additional capital
- Other capital
- Reserve capital
- Retained earnings (Non-covered loss)	124 169.00	53 447.00
Capital and reserves total	126 169.00	55 447.00
Provisions
LONG-TERM LIABILITIES
- Loans and credits	11 929.00	6 439.00
- long-term amounts owed to banks
- Other long-term liabilities	2 011.00	0.00
Long-term liabilities total	13 940.00	6 439.00
SHORT-TERM LIABILITIES
- Loans and credits	98 531.00	87 480.00
- short-term amounts owed to banks
- Creditors	112 721.00	86 692.00
- trade debts	78 796.00	54 882.00
- accrued payroll
- tax liabilities	11 590.00	16 847.00
- other creditors	22 335.00	12 518.00
- advances received	0.00	2 445.00
- Dividends in arrears	0.00	47 500.00
- Accrued income, deferred charges	61 696.00	58 655.00
- Other short-term liabilities
Short-term liabilities total	272 948.00	280 327.00
Liabilities total	286 888.00	286 766.00
Equity and liabilities total	413 057.00	342 213.00
===== PROFIT AND LOSS ACCOUNT ==========
ORDINARY ACTIVITY INCOME AND CHARGES
Net sales	2 366 253.00	1 411 226.00
Cost of goods sold	1 838 312.00	1 018 528.00
Gross profit	527 941.00	392 698.00
Distribution costs	312 679.00	200 877.00
Administrative and management costs	110 620.00	118 967.00
Profit on sales
OPERATING INCOME AND CHARGES
Interest receivable	4 317.00	285.00
Interest payable	15 197.00	4 999.00
Income from participating interests
Other operating income	3 710.00	2 549.00
Other operating charges	12 423.00	12 292.00
Operating profit
INVESTMENT INCOME AND CHARGES
Investment income less charges	-500.00	0.00
Profit before taxation	84 549.00	58 397.00
Income-tax and other similar payments	13 827.00	9 378.00
Profit (loss) from ordinary activity
Extraordinary income less charges
Net profit	70 722.00	49 019.00
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	3.57	4.14
Profit before taxation / Net sales
Operating margin of profit, %
Operating profit / Net sales
Return on investment, %	67.01	105.32
Profit before taxation / Equity
Current assets turnover	6.98	4.91
Net sales / Current assets
Working capital	65 877.00	6 967.00
Current assets - Short-term liabilities
Leverage	0.31	0.16
Equity / Total assets
Current ratio	1.24	1.02
Current assets / Short-term liabilities
Quick ratio	0.81	0.65
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	2.27	5.17
Total liabilities / Equity

FINAL COMMENTS

The contact person Sneiders, Ivo refused to provide us with any information. The report is based on the information collected from different outside sources.

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	2 366 253.00	1 411 226.00
020 Cost of sales	-1 838 312.00	-1 018 528.00
025 Change in stock, finished and semi-finished goods
030 Gross profit or loss	527 941.00	392 698.00
035 Facilities produced at the expense of own funds for internal use
040 Distribution costs	-312 679.00	-200 877.00
050 Administrative expenses	-110 620.00	-118 967.00
060 Other operating income	3 710.00	2 549.00
062 Economical expenses
064 Gross profit or loss
065 Administrative charges
067 Depreciation of fixed assets
068 Other operating expenses	-12 423.00	-12 292.00
070 Income from participating interests
080 Income from securities and loans forming long-term
investments
090 Other interest receivable and similar income	4 317.00	285.00
100 Value adjustments in respect of financial assets and	-500.00	0.00
of investments held as current assets
110 Interest payable and similar charges	-15 197.00	-4 999.00
120 Profit or loss on ordinary activities before taxation	84 549.00	58 397.00
130 Extraordinary income
140 Extraordinary charges
150 Extraordinary profit or loss before taxation
151 Profit or loss before taxation	84 549.00	58 397.00
160 Income-tax for fiscal period	-11 816.00	-9 378.00
170 Other taxes
175 Deferred Income-tax for fiscal period	-2 011.00	0.00
180 Profit or loss for fiscal period	70 722.00	49 019.00
995 Depreciation	0.00	40 380.00
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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.	1 923.00	0.00
021 Other intangible assets
030 Goodwill
040 Payments on account for intangible assets
050 Total intangible assets	1 923.00	0.00
Tangible assets
060 Real estate
061 Long-term investments in leased tangible assets
070 Plant and machinery	17 412.00	15 739.00
080 Other fixtures and fittings, tools and equipment	52 004.00	39 180.00
090 Payments on account and tangible assets in cours
of construction
091 Prepayment for tangible assets	2 893.00	0.00
100 Total tangible assets	72 309.00	54 919.00
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	74 232.00	54 919.00
CURRENT ASSETS
Stock
210 Raw materials and consumables	8 517.00	3 113.00
220 Work in progress
230 Finished goods and goods for resale	108 017.00	101 366.00
240 Orders outstanding
250 Payments on account	377.00	1 331.00
260 Working and productive animals
270 Total stock	116 911.00	105 810.00
275 LONG-TERM INVESTMENT ASSETS WITHHELD
FOR SALE
Debtors
280 Trade debtors	145 384.00	130 887.00
290 Amounts owed by subsidiaries	28 120.00	17 877.00
300 Amounts owed by related companies
310 Other debts	9 518.00	5 930.00
320 Subscribed capital called but not paid
330 Short-terms loans to the members of the company
and the management
340 Prepayments and accrued	4 712.00	2 711.00
341 Accrued income
343 Deferred tax liabilities
350 Total debtors	187 734.00	157 405.00
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)	34 180.00	24 079.00
410 CURRENT ASSETS TOTAL	338 825.00	287 294.00
420 BALANCE	413 057.00	342 213.00
L I A B I L I T I E S
CAPITAL AND RESERVES
430 Share capital	2 000.00	2 000.00
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	53 447.00	4 428.00
520 Profit or loss for the current year	70 722.00	49 019.00
525 Consolidation margin
530 CAPITAL AND RESERVES TOTAL	126 169.00	55 447.00
PROVISIONS
540 Provisions for pensions and similar obligations
550 Provisions for taxation
560 Other provisions
570 PROVISIONS TOTAL
CREDITORS
Long-term liabilities
580 Debenture loans
590 Convertible loans
600 Amounts owed to credit institutions
601 Other loans	11 929.00	6 439.00
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	2 011.00	0.00
640 Total long-term liabilities	13 940.00	6 439.00
Short-term liabilities
650 Debenture loans
660 Convertible loans
670 Amounts owed to credit institutions
671 Other loans	98 531.00	87 480.00
680 Advanced payments received	0.00	2 445.00
690 Trade debts	78 796.00	54 882.00
700 Bills of exchange payable
710 Amounts owed to subsidiaries	11 578.00	706.00
720 Amounts owed to related companies
730 Taxes and social security payments	11 590.00	16 847.00
740 Other creditors	10 757.00	11 812.00
750 Deferred income	37 620.00	34 867.00
760 Fiscal period dividends
770 Non-paid dividends of previous years	0.00	47 500.00
771 Accrued charges	24 076.00	23 788.00
773 Deferred tax liabilities
775 Alienated financial instruments
995 Depreciation
780 Total short-term liabilities	272 948.00	280 327.00
790 CREDITORS TOTAL	286 888.00	286 766.00
800 BALANCE	413 057.00	342 213.00
990 Employees number	21.00	0.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.78
UK Pound	1	Rs.80.11
Euro	1	Rs.68.82

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.