MIRA INFORM REPORT

Report Date :

18.10.2011

IDENTIFICATION DETAILS

Name :	AREFONTE CHEMICALS GRUPP OSAUHING
Formerly Known As :	F Chemicals Grupp Osauhing
Registered Office :	Kopli 103, Tallinn, Harju county, 11712
Country :	Estonia
Financials (as on) :	31.12.2010
Date of Incorporation :	04.08.2006
Com. Reg. No.:	11278017
Legal Form :	Limited Liability Company
Line of Business :	Wholesale of chemical products

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 :	358 000 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)
Estonia	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

:

Arefonte Chemicals Grupp Osauhing

Name in English

:

Arefonte Chemicals Grupp LLC

Name in national language

:

Arefonte Chemicals Grupp O

Previous Names

:

-	F Chemicals Grupp Osauhing

Office address

:

Kopli 103, Tallinn, Harju county, 11712, Estonia

Legal Address

:

Kopli 103, Tallinn, Harju county, 11712, Estonia

Contacts

:

-	Phone	:	(+372) 6102511 6102408
-	Fax	:	(+372) 6102512 6102999
-	E-mail	:	info@arefonte.ee drigin@arefonte.ee
-	WWW	:	www.bsr.ee

SUMMARY

Legal Form : OU (Limited Liability Company by Estonian Commercial Law)

Incorporation : 2006

Staff : 5

Litigation events : none Remarks on payments : none

Sales :	280 331 938.00 EEK ( for 12 months, ended 31.12.2010 )
	229 060 873.00 EEK ( for 12 months, ended 31.12.2009 )

Credit Opinion

Credit Limit

:

358 000 EUR Credit line at value over the Credit Limit is advised to be secured with proper guarantees.

Incorporation

:

2006

Registration Data

Date of registration

:

04.08.2006

Registration number

:

11278017

Registr. authority

:

Registration department of the County Court (Harju county, Estonia)

Date of registration

:

01.04.2011

VAT number

:

EE100058428

Registr. authority

:

Estonian Tax and Customs Board (Harju county, Estonia)

VAT payers are persons (including legal persons), whose taxable supply from the beginning of a calendar year exceeds 250 000 EEK. VAT rate is 20 percent.

Legal Form

:

OU (Limited Liability Company by Estonian Commercial Law)

since 04.08.2006

Share Capital

:

2 550 EUR (registered)

since 22.07.2011

Shareholders

:

-	Mr Drigin, Oleg (Estonia)				70.00 %
		share's book value	:	1 785 EUR
		reg. number	:	37012160264
		address	:	Tallinn, Harju county, Estonia
-	Blrt Grupp (Estonia)				30.00 %
		share's book value	:	765 EUR
		reg. number	:	10068499
		address	:	Kopli 103, Tallinn, Harju county, 11712, Estonia

Board / Executives

Executives

Member of the board

:

Mr Drigin, Oleg (Estonia)
	pers. code: 37012160264
	address: Tallinn, Harju county, Estonia

Member of the board

:

Mr Gordijenko, Konstantin (Estonia)
	pers. code: 38503190379

:

The member of the management board represents the private limited company alone unless noted otherwise in the commercial register. Specifications of the rights of representation: Mr Konstantin Gordijenko may represents the private limited company alone.Other members of the board have to represent the company jointly.

Authorised signature

:

Mr Drigin, Oleg

Mr Gordijenko, Konstantin

Changes in Registration Data

- 22.07.2011

:

share capital

- 22.07.2011

:

managers, authorised signature

Mr Berman, Mark (Estonia, 37807310231)

- 21.08.2006

:

name

Activities

:

-	5169	Chemicals/Products, NEC, NEC
		(NACE 5155: Wholesale of chemical products)

Principal activity: Wholesale of other chemical products (NACE code: 46.75)

Staff employed

:

5

( the data as of 31.12.2010 )

Staff History

:

-	4
	( the data as of 31.12.2009 )
-	4
	( the data as of 31.12.2008 )
-	5
	( the data as of 31.12.2007 )
-	2
	( the data as of 31.12.2006 )

Export

- 31.12.2010

:

Fiscal period: 12 month(s), currency: EEK

280 325 981.00

Lithuania, Germany, Netherlands, India, China Peoples Republic, Hong Kong, Argentina, Mauritius

- 31.12.2009

:

Fiscal period: 12 month(s), currency: EEK

229 060 873.00

Belgium, India, China Peoples Republic, Taiwan, Malaysia, Peru, Hong Kong, Canada

Facilities

Real estate

:

According to Estonian Land Register, company required has no real estate objects.

Branches

:

none

According to official sources and our evaluation, the company required has no branches.

Subsidiaries and Participation

:

none

According to official sources and our evaluation, the company required has no subsidiaries.

Bankers

:

n/a

Other associated Companies

:

-	Blrt Grupp (Estonia)
	address	:	Kopli 103, Tallinn, Harju county, 11712, Estonia
	reg. number	:	10068499

http://www.bsr.ee/index.php?lang=eng&main_id=242 BLRT is a multi-profile concern with a well-developed modern structure and active participation in the Estonian, Latvian, Lithuanian, Finland, Norway and Russian markets grew out from a single-business company specialising in ship repairs before the early 90s. Being actively involved in many different business spheres helps to reduce commercial risks inherent to a free market economy. BLRT Grupp incorporates 65 companies. The structure was created at the end of the 90s based on the idea to make a more efficient and customer-oriented company. In turn this aim was caused by the necessity to compete successfully with other companies in the Baltic and Scandinavian countries.

Litigation

:

none

There are no warnings recorded by the State Register. There are no registered legal actions against company required.

Remarks on payment

:

none

Debts to Estonian government: By the Tax Authorities there are no tax debts registered on the subject. Other debts: No current on defaulted payments are reported by local debt collection companies. No current records are reported on the company required.

Business mortgages

:

none

According to official sources and our evaluation, the company required has no commercial pledges.

Financial Elements

:

Exchange rate: 1 EUR = 15.6466 EEK

Period, months	12	12
Ended	31.12.2010	31.12.2009
Currency	EEK	EEK
===== BALANCE SHEET ====================
--- A S S E T S --------------------
NON-CURRENT ASSETS
- Intangible assets	0.00	0.00
- Fixed assets	844.00	9 810.00
- Investments in tangible assets
- Financial assets	0.00	0.00
- Other non-current assets
Non-current assets total	844.00	9 810.00
CURRENT ASSETS
- Stock	0.00	37 610 835.00
- Debtors	5 014 290.00	15 620 886.00
- Other receivables
- Short-term financial investments
- Cash	4 816 432.00	4 674.00
- Other current assets
Current assets total	9 830 722.00	53 236 395.00
Assets total	9 831 566.00	53 246 205.00
--- EQUITY AND LIABILITIES ---------
CAPITAL AND RESERVES
- Share capital	40 000.00	40 000.00
- Additional capital
- Other capital
- Reserve capital	4 000.00	4 000.00
- Retained earnings (Non-covered loss)	8 486 642.00	5 315 192.00
Capital and reserves total	8 530 642.00	5 359 192.00
Provisions
LONG-TERM LIABILITIES
- Loans and credits	0.00	0.00
- long-term amounts owed to banks
- Other long-term liabilities
Long-term liabilities total	0.00	0.00
SHORT-TERM LIABILITIES
- Loans and credits	628 589.00	42 519 306.00
- short-term amounts owed to banks
- Creditors	672 335.00	5 367 707.00
- trade debts
- accrued payroll
- tax liabilities
- other creditors
- advances received
- Dividends in arrears
- Accrued income, deferred charges
- Other short-term liabilities
Short-term liabilities total	1 300 924.00	47 887 013.00
Liabilities total	1 300 924.00	47 887 013.00
Equity and liabilities total	9 831 566.00	53 246 205.00
===== PROFIT AND LOSS ACCOUNT ==========
ORDINARY ACTIVITY INCOME AND CHARGES
Net sales	280 331 938.00	229 060 873.00
Cost of goods sold	266 766 478.00	214 774 423.00
Gross profit
Distribution costs	4 531 625.00	14 903 093.00
Administrative and management costs	1 363 293.00	1 071 942.00
Profit on sales
OPERATING INCOME AND CHARGES
Interest receivable
Interest payable
Income from participating interests
Other operating income	11 713 630.00	20 269.00
Other operating charges	5 473 980.00	2 785 472.00
Operating profit
INVESTMENT INCOME AND CHARGES
Investment income less charges	-10 738 742.00	1 571 318.00
Profit before taxation	3 171 450.00	-2 882 470.00
Income-tax and other similar payments	0.00	0.00
Profit (loss) from ordinary activity
Extraordinary income less charges
Net profit	3 171 450.00	-2 882 470.00
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	1.13	-1.26
Profit before taxation / Net sales
Operating margin of profit, %
Operating profit / Net sales
Return on investment, %	37.18	-53.79
Profit before taxation / Equity
Current assets turnover	28.52	4.30
Net sales / Current assets
Working capital	8 529 798.00	5 349 382.00
Current assets - Short-term liabilities
Leverage	0.87	0.10
Equity / Total assets
Current ratio	7.56	1.11
Current assets / Short-term liabilities
Quick ratio	7.56	0.33
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	0.15	8.94
Total liabilities / Equity

Publications

:

No publications in mass-media regarding company required.

FINAL COMMENTS

The information given in this report was received from all accessible sources. We have called by the tel. number: +372 56262470, on 14.10.2011. Mr Drigin, Oleg (Member of the board) refused to disclose any information on the company required, until he gets to know the name of the customer.

Capital History

- 04.08.2006

:

40 000 EEK (registered)

( the data as of 04.08.2006, cancelled since 22.07.2011 )

COUNTRY REVIEW

COUNTRY REVIEW

COUNTRY REVIEW, updated as of August, 2011

STATE BOARD FOR STATISTICAL DATA

Updated: 29 August 2011

Economy grew 8.4% in the 2nd quarter

According to Statistics Estonia, by flash estimates, the gross domestic

product (GDP) of Estonia increased by 8.4% in the 2nd quarter of 2011

compared to the same quarter of the previous year.

Gross domestic product (GDP) at current prices:

2010: 14 500.9 mln euros

1st quarter 2011: 3 709.4 mln euros

2-nd quarter 2011: not published yet

Key economic indicators in 2010

(as % of corresponding period of previous year)

GDP 103.10%

Industrial production index 122.70%

Freight turnover 108.00%

Retail trade turnover 104,00%

Unemployment rate (unemployed to the economically

active population), eop, in%: 17.5%

Population as of 1 January 2011 : 1

Gross domestic product and gross national income at current prices

Year GDP at current prices, millions Gross national income at current prices, milli

ons

2007 15,827.50 14,735.20

2008 16,106.70 15,237.50

2009 13,860.80 13,538.40

2010 14,500.90 13,849.30

MAIN INDICATORS

Year Q1 2011 (million euros) Q1 2010 (million euros)

GDP 3,790.40 3,919.30

Manufacturing 583.70 619.70

Wholesale and retail trade 388.00 413.40

Transport, storage and communication 400.60 387.30

Real estate, renting and business activities 671.40 628.80

Public administration 227.30 233.20

Education 160.30 167.60

Health and social work 122.80 127.70

Net taxes on products 431.50 516.60

Electricity, gas and water supply 173.90 179.20

Construction 159.10 170.40

FOREIGN TRADE

Year 12M 2010 (million euros) 6M 2010 (million euros)

Exports 8,753.50 5,913.10

Imports 9,241.80 6,256.50

Foreign trade:

In January-December 2010 foreign trade turnover of the Republic of Estonia amounted

to 17.995 billion EUR (130.77% against January - December 2009.), including export

s 8.75 billion EUR (134.89%), imports � 9.24 billion EUR (127.08%). The trade balan

ce remained negative -488.3 million EUR (in January-December 2009 -782.7 million EU

R).

APPENDIX A

Financial Statements

Period, months	12	12
Ended	31.12.2010	31.12.2009
Currency	EEK	EEK
BALANCE SHEET
A S S E T S
CURRENT ASSETS
1. CASH IN BANK AND IN HAND	4 816 432.00	4 674.00
2. SHORT-TERM FINANCIAL INVESTMENTS
3. RECEIVABLES AND PREPAYMENTS
3.1 Customer receivables
3.2. Prepaid and deferred taxes
3.3. Other short-term receivables
3.4. Prepaid services
3. RECEIVABLES AND PREPAYMENTS TOTAL	5 014 290.00	15 620 886.00
4. INVENTORIES
4.1 Raw materials
4.2 Work in progress
4.3 Finished goods
4.4 Goods for resale
4.5 Prepayments for inventories
4. INVENTORIES TOTAL	0.00	37 610 835.00
5. BIOLOGICAL ASSETS
6. NON-CURRENT ASSETS HELD FOR SALE
TOTAL CURRENT ASSETS	9 830 722.00	53 236 395.00
NON-CURRENT ASSETS
7. LONG-TERM FINANCIAL INVESTMENTS
7.1 Shares in subsidiary companies
7.2 Shares in associates
7.3 Other shares and securities
7.4 Long-term accounts receivable
7. LONG-TERM FINANCIAL INVESTMENTS TOTAL	0.00	0.00
8. INVESTMENT PROPERTIES
9. TANGIBLE ASSETS
9.1. Land
9.2. Buildings
9.3. Machinery and equipment
9.4. Other tangible assets
9.5. Construction-in-progress and prepayments for
tangible assets
9. TANGIBLE ASSETS TOTAL	844.00	9 810.00
10. BIOLOGICAL ASSETS
11. INTANGIBLE ASSETS
11.1. Goodwill
11.2. Development costs
11.3. Other intangible assets
11.4. Prepayments for intangible assets
11. INTANGIBLE ASSETS TOTAL	0.00	0.00
NON-CURRENT ASSETS TOTAL	844.00	9 810.00
TOTAL ASSETS	9 831 566.00	53 246 205.00
SHORT-TERM LIABILITIES
12. LOAN LIABILITIES
12.1. Short-term loans and notes
12.2. Current portion of long-term debt
12.3. Convertible debts
12. LOAN LIABILITIES TOTAL	628 589.00	42 519 306.00
13. DEBTS AND PAYABLES
13.1. Supplier payables
13.2. Employee-related liabilities
13.3. Taxes payable
13.4. Other debts
13.5. Prepayments received
13. DEBTS AND PAYABLES TOTAL	672 335.00	5 367 707.00
14. SHORT-TERM PROVISIONS
15. TARGETED FINANCING
SHORT-TERM LIABILITIES TOTAL	1 300 924.00	47 887 013.00
LONG-TERM LIABILITIES
16. LONG-TERM LOAN LIABILITIES
16.1. Loans, notes and financial lease payables
16.2. Covertible debts
16. LONG-TERM LOAN LIABILITIES TOTAL	0.00	0.00
17. OTHER LONG-TERM DEBTS
18. LONG-TERM PROVISIONS
19. TARGETED FINANCING
LONG-TERM LIABILITIES TOTAL	0.00	0.00
LIABILITIES TOTAL	1 300 924.00	47 887 013.00
20. SHARE CAPITAL	40 000.00	40 000.00
20.a. OTHER CAPITAL
21. UNREGISTERED SHARE CAPITAL
22. SHARE PREMIUM
23. LESS TREASURY SHARES
24. Statutory legal reserve	4 000.00	4 000.00
25. Other reserves
26. RETAINED EARNINGS	5 315 192.00	8 197 662.00
27. NET PROFIT/ LOSS FOR FINANCIAL YEAR	3 171 450.00	-2 882 470.00
EQUITY TOTAL	8 530 642.00	5 359 192.00
EQUITY AND LIABILITIES TOTAL	9 831 566.00	53 246 205.00
INCOME STATEMENT format 1 or 2
1. NET SALES format 1
2. Other income
3. Change in inventories of agricultural goods
4. Profit (loss) on biological inventories
5. Changes in inventories of finished goods and work in
progress
6. Work performed by the undertaking for its own purpose
and capital
7. Goods, raw materials and services
8. Other operating expenses
9. STAFF COSTS
9.a. Wages and salaries
9.b. Social security costs
9.c. Pension expenses
9. STAFF COSTS TOTAL
10. Depreciation and impairment of fixed assets
11. Other expenses
1. NET SALES format 2	280 331 938.00	229 060 873.00
2. Change in inventories of agricultural goods
3. Profit (loss) on biological inventories
4. Cost of sales	266 766 478.00	214 774 423.00
GROSS PROFIT (LOSS)	13 565 460.00	14 286 450.00
5. Marketing expenses	4 531 625.00	14 903 093.00
6. Administration and general expenses	1 363 293.00	1 071 942.00
7. Other income	11 713 630.00	20 269.00
8. Other expenses	5 473 980.00	2 785 472.00
OPERATING PROFIT (LOSS)	13 910 192.00	-4 453 788.00
12. FINANCIAL INCOME AND EXPENSES
12.a. Financial income and expenses from shares in subsidiaries
12.b. Financial income and expenses from shares in associates
12.c. Financial income and expenses from long-term
financial investments
12.d. Interest expense
12.e. Profit (loss) on translation of foreign currencies
12.f. Other financial income and expenses
12. TOTAL FINANCIAL INCOME AND EXPENSES	-10 738 742.00	1 571 318.00
PROFIT(LOSS) ON ORDINARY ACTIVITIES	3 171 450.00	-2 882 470.00
13. Income tax expense	0.00	0.00
NET PROFIT (LOSS) FOR FINANCIAL YEAR	3 171 450.00	-2 882 470.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.89
UK Pound	1	Rs.77.31
Euro	1	Rs.67.79

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.