MIRA INFORM REPORT

Report Date :

12.11.2011

IDENTIFICATION DETAILS

Name :	EXPLOSAL LIMITED
Formerly Known As :	EXPLOSAL TRADING LIMITED
Registered Office :	Free Trade Zone 7111 Larnaca
Country :	Cyprus
Financials (as on) :	30.06.2011
Date of Incorporation :	22.11.2004
Com. Reg. No.:	C154259 Nicosia
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers & Distributors of Cigarettes

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Poor
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 – September 30, 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

Name & Address

NAME INQUIRED UNDER:

Explosal Limited (Nf)

Correct Registered Name:

EXPLOSAL LIMITED

Other Trading name:

RAQUEL

Address:

Free Trade Zone 7111 Larnaca CYPRUS

Telephone:

+357-24819200 357-24-819200

Fax:	+357-24819205

Email:

welcome@explosal.com.cy

Web:	www.raquel.com.cy

Business address:

Free Trade Zone 7111 Larnaca CYPRUS

Payment

PAYMENT HABITS:

NOT ADVISED

Comment:

Please note that a check against our records revealed that the subjects parent company, C.T.O. PUBLIC COMPANY LIMITED, has unpaid invoice since 15.06.2011.

Good For Amount & Terms Of Inquiry:

No credit

Commercial Morality:

Moderate

Financial Strength:

Moderate

Credit Rating:

High Risk

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 companys 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).

Registration number and city:

C154259 Nicosia

Registration date:

22.11.2004

Former registration name:

EXPLOSAL TRADING LIMITED, valid since: 22.11.2004, until: 20.02.2008

National ID: C154259

Former company names:

EXPLOSAL TRADING LIMITED

Company Status

Registration status: 22.11.2004 - registered company
Activity status: 22.01.2004 - Company is active

Principals

Shareholders
Full Name	Personal ID	Function	Nationality	Equity	Address
C.T.O. PUBLIC COMPANY LIMITED Registration: No. C7880, 29.03.1976, Nicosia, CYPRUS		Shareholder		100.00% 24,865,000 Ordinary	Kalo Chorio, Larnaca Free Trading Zone 7111 Larnaca CYPRUS

Management
Full Name	Personal ID	Age	Function	Nationality	Qualification	Experience	Address
Mr. Michalis Charalambous 26.04.2005 - Present	102571	67	Director / Secretary	CYPRUS	Non retrievable	Also Director of FAMITA ESTATES COMPANY LIMITED, RAQUEL LIMITED, RAQUEL DISTRIBUTORS LIMITED. Also Secretary of C.T. TOBACCO LIMITED, RAQUEL TOBACCO LIMITED. Also Shareholder of HARVEST FINANCIAL SERVICES LIMITED, DOCUNA ENTERPRISES LIMITED.	Strovolos, 28, Nicou Georgiou street 2023 Nicosia CYPRUS
Mr. Thanos Michael 22.01.2008 - Present	608024	72	Director	CYPRUS	Non retrievable	Also a director of Explosal Ltd, Raquel Ltd.	Egkomi, 9, Ayiou Dometiou Street Nicosia 2407 Nicosia CYPRUS
Mr. Christoforos Tornaritis 26.04.2005 - Present	676713	45	Secretary (Former)	CYPRUS	Non Retrievable	Also associated with: RAQUEL DISTRIBUTORS LIMITED, C.T. TOBACCO LIMITED, RAQUEL LIMITED.	Strovolos, 23, Armenias 2003 Nicosia CYPRUS

Activities

Activities:

Manufacturers & Distributors

Operations:

SIC   2111 Cigarettes Explosal Ltd is one of the subsidiary companies of C.T.O. Public Company Ltd which is registered in the Cyprus Stock Exchange. As a public company it strives to contribute to the local market and participate in its development. Being the only cigarette manufacturer in Cyprus, this has inspired them to launch their new product range for the local market, which will bring about the opportunity for them as a company to reinvest and contribute to the social economic development and growth of the country. The influx of their economic contribution and its placement to the everyday market has brought about and generated new ventures to the local citizens, creating new job opportunities and in a roundabout way increasing the local standard of living. The subject is involved in the manufacture and distribution of "RAQUEL" cigarettes. Business Activities Cigars, Cigarettes & Tobacco Companies Industry Classifications - NAICS » Cigarette Manufacturing NAICS # 312221

Motor Vehicles

Non Retrievable

Imports

Non Retrievable

Exports

Non Retrievable

Agencies

Non Retrievable

Trade Suppliers

Non Retrievable

Workforce

The subject utilizes staff from C.T.O. Public Company Limited

Description Of Premises

Address:	Free Trade Zone 7111 Larnaka CYPRUS
Type of premises:	Premises

Headquarters:

The subject operates from shared offices with C.T.O. Public Company Limited. Please note that this is also the subject's registered address.

Related Companies

Parent Company
C.T.O. PUBLIC COMPANY LIMITED , CYPRUS , National ID: C7880

Sister Company
LEMECO SILVEX TRADING LTD , CYPRUS , National ID: C219052

*PLEASE NOTE ADDITIONAL INFORMATION ON RELATED COMPANIES:

"C.T.O. PUBLIC COMPANY LIMITED" - Parent company registered in Cyprus on 29.03.1976 under the registration number C7880. The subject is engaged in the trade of cigarettes and other related products.

"LEMECO SILVEX TRADING LTD" - Sister company registered in Cyprus on 31.12.2007 under the registration number C219052. The subject is engaged in real estate activities.

Bankers

Marfin Popular Bank Public Company Limited
1065 Nicosia, 39 Archbishop Makarios III Avenue


Account number is not disclosed

Press

10.11.2011, No press / media available at present.

Auditors / Accountants

Date: 31.12.2009
Consolidated Accounts

Share Capital

Registered capital:	EUR 2,237,850.00 since 01.01.2008
Number of Ordinary:	24,865,000
Value per share of Ordinary:	EUR 0.09
Issued capital:	EUR 2,237,850.00 since 01.01.2008
Number of Ordinary:	24865000
Value per share of Ordinary:	EUR 0.09
Paid-up capital:	EUR 2,237,850.00 since 01.01.2008

Charges

21.05.2009	Floating Charge on all Company's Assets	EUR 1,000,000.00		in f/o:Marfin Popular Bank Public Co Ltd
27.06.2008	Floating Charge on all Company's Assets	EUR 300,000.00		in f/o:Laiki Factors Limited
11.03.2008	Mortgage	EUR 1,250,000.00		in f/o:Marfin Popular Bank Public Co Ltd
14.11.2007	Floating Charge on all Company's Assets	CYP 2,500,000.00		in f/o:Marfin Popular Bank Public Co Ltd
15.11.2007	Mortgage	CYP 2,500,000.00		in f/o:Marfin Popular Bank Public Co Ltd
23.06.2010	See description	EUR 70,150.00	Assignment of rights of buying-selling contract	in f/o:Marfin Popular Bank Public Co LImited
23.06.2010	See description	EUR 70,150.00	Assignment of rights of buying-selling contract	in f/o:Marfin Popular Bank Public Co LImited
23.06.2010	See description	EUR 70,150.00	Assignment of rights of buying-selling contract	in f/o:Marfin Popular Bank Public Co LImited
23.06.2010	See description	EUR 70,150.00	Assignment of rights of buying-selling contract	in f/o:Marfin Popular Bank Public Co LImited
23.06.2010	See description	EUR 70,150.00	Assignment of rights of buying-selling contract	in f/o:Marfin Popular Bank Public Co LImited
23.06.2010	See description	EUR 70,150.00	Assignment of rights of buying-selling contract	in f/o:Marfin Popular Bank Public Co LImited
23.06.2010	See description	EUR 70,150.00	Assignment of rights of buying-selling contract	in f/o:Marfin Popular Bank Public Co LImited
23.06.2010	See description	EUR 70,150.00	Assignment of rights of buying-selling contract	in f/o:Marfin Popular Bank Public Co LImited
23.06.2010	See description	EUR 70,150.00	Assignment of rights of buying-selling contract	in f/o:Marfin Popular Bank Public Co LImited
23.06.2010	See description	EUR 70,150.00		in f/o:Marfin Popular Bank Public Co LImited
22.07.2010	See description	EUR 70,150.00	Assignment of rights of buying-selling contract	in f/o:Marfin Popular Bank Public Co LImited
22.07.2010	See description	EUR 70,150.00	Assignment of rights of buying-selling contract	in f/o:Marfin Popular Bank Public Co LImited
22.07.2010	See description	EUR 70,150.00	Assignment of rights of buying-selling contract	in f/o:Marfin Popular Bank Public Co LImited

Finance

Amounts shown in Euro (EUR)		01.01.2011-30.06.2011	2010	2009	2008
	PROFIT & LOSS
	Sales Turnover	8,781,182.00	20,189,566.00	19,016,125.00	9,567,883.00
	Cost of Sales	-6,739,764.00	-16,168,910.00	-13,889,168.00	-6,537,422.00
	Gross Profit	2,041,418.00	4,020,656.00	5,126,957.00	3,030,461.00
	Other Operating Income	388,563.00	1,999,479.00	987,400.00	1,881,594.00
	Selling / Distribution / Promotional Expenses	-770,250.00	-1,580,290.00	-1,547,205.00	-667,186.00
	Administrative Expenses	-507,586.00	-1,835,657.00	-1,121,454.00	-745,479.00
	Operational Profit	1,152,145.00	2,604,188.00	3,445,698.00	3,499,390.00
	Finance Costs	-279,739.00	-1,025,807.00	-842,732.00	-625,643.00
	Financial Income		44,252.00	22,547.00	33,629.00
	Profit Before Taxation	872,406.00	1,622,633.00	2,625,513.00	2,907,376.00
	Corporate Income Tax	-67,180.00	-412,044.00	-376,848.00	-424,801.00
	Net Profit	805,226.00	1,210,589.00	2,248,665.00	2,482,575.00
	Earnings per share	0.39	0.58
	BALANCE SHEET
	FIXED ASSETS	5,010,372.00		16,023,722.00	16,242,947.00
	Property, Plant & Equipment	13,875,096.00	13,364,487.00
	Intangible Assets	78,029.00	5,083,998.00	5,080,474.00	5,083,688.00
	Investment Property	3,737,500.00	1,267,500.00
	Other Financial Fixed Assets	16,984.00	16,984.00
	Total Fixed Assets	22,717,981.00	19,732,969.00	21,104,196.00	21,326,635.00
	Inventory / Stock	2,117,825.00	3,400,681.00	5,695,075.00	3,728,379.00
	Trade Debtors (receivables from customer)	11,091,005.00	10,193,411.00	7,804,872.00	5,565,225.00
	Cash in Hand & at Bank	960,524.00	604,933.00	10,968.00	708,876.00
	Other Current Assets		701,811.00
	Total Current Assets	14,169,354.00	14,900,836.00	13,510,915.00	10,002,480.00
	Total Assets	36,887,335.00	34,633,805.00	34,615,111.00	31,329,115.00
	Other Reserves	532,626.00	4,516,195.00	4,258,465.00	2,009,800.00
	Total Equity	24,115,626.00	23,299,195.00	23,041,465.00	20,792,800.00
	Long - Term Loans	4,850,094.00	3,734,900.00	3,994,787.00	5,850,711.00
	Taxation Payable	191,372.00	191,372.00	297,952.00	213,787.00
	CURRENT LIABILITIES		330,607.00
	Trade Creditors	3,584,807.00	2,848,727.00	2,773,856.00	2,710,883.00
	Short - Term Borrowings, Loans	3,676,327.00	865,104.00	1,850,525.00	50,950.00
	Taxation Due	469,109.00	427,225.00	454,969.00	212,643.00
	Bank Overdraft		2,936,675.00	2,201,557.00	1,497,341.00
	Total Current Liabilities	7,730,243.00	7,408,338.00	7,280,907.00	4,471,817.00
	Total Equity & Liabilities	36,887,335.00	34,633,805.00	34,615,111.00	31,329,115.00
	SHARE CAPITAL	18,783,000.00	18,783,000.00	18,783,000.00	18,783,000.00

Accounts were obtained from consolidated accounts of C.T.O. PUBLIC COMPANY LTD placed on www.stockwatch.com.cy.

Ratios

	01.01.2011-30.06.2011	2010	2009	2008
Current ratio - 2 is an acceptable result, but even 1,8 is considered excellent in bank practice Current Assets / Current Liabilities	1.83	2.01	1.86	2.24
Quick ratio (QR ) - 1 is an excellent result, but anything above 0,8 is considered good (Current Assets - Inventory) / Current Liabilities	1.83	2.01	1.86	2.24
Return on assets ( ROA ) Net Profit After Tax / Total assets	0.02	0.03	0.06	0.08
Return on equity ( ROE ) Net Profit After Tax / Total Equity	0.03	0.05	0.10	0.12
Return on sales ( ROS ) Net Profit x 100 / Sales Turnover	9.17	6.00	11.83	25.95
Day's supply in inventory Sales Turnover / Inventory	4.15	5.94	3.34	2.57
Collection Period Ratio (in days) Accounts Receivable x 365 / Sales Turnover	461.01	184.28	149.81	212.30
Cash Liquidity Ratio Liquid Assests / Current Liabilities x 100	12.43	8.17	0.15	15.85
Receivables Ratio (%) Accounts Receivable / Current Liabilities x 100	143.48	137.59	107.20	124.45
Current Assets Ratio (%) (Current Assets - Accounts Receivable) / Current Liabilities x 100	183.30	201.14	185.57	223.68
Shareholder Equity Increase Ratio (%) Total Equity / Share Capital x 100	128.39	124.04	122.67	110.70

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 present Limited Liability Company was incorporated on 22.11.2004 and is involved in the manufacture and distribution of RAQUEL cigarettes in Cyprus.

We contacted the subject, where we talked with a company officer, who informed us that Mr Thanos Michael, 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 provided in this report was obtained from the Official Companies’ Registrar and from a previous interview with the company in question.

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

Wholesale, Industrial, Retail & Services Sectors

The industrial sector, the wholesale and retail trade sector and the services sector are all open to non-resident investors. For the industrial and the wholesale and retail trade sectors, the Central Bank handles applications where foreign participation is below 50%. Where foreign participation exceeds 50%, or the investment is more than CyP750.000, applications are handled jointly by the Central Bank and the Ministry of Commerce, Industry and Tourism.
For services, up to 100% foreign participation is allowed and the Central Bank handles the applications.
Tremetoushiotis Developers Ltd
Ref: http://www.top-properties.com/legal-information.html

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 information

Telephone number:

357 24 819200

Company Officer

CREDIT RISK EVALUATION
A credit rating assesses the credit worthiness of a company. A poor credit rating indicates a high risk of defaulting on a loan. A Credit rating is estimated based on an analysis of commercial, financial and trading data.

MAXIMUM CREDIT RECOMMENDED
The amount advised is a recommended maximum credit exposure at any one time.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.28
UK Pound	1	Rs.80.08
Euro	1	Rs.68.44

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.