MIRA INFORM REPORT

Report Date :

19.10.2011

IDENTIFICATION DETAILS

Name :	VAKARU REFONDA OSAUHING
Registered Office :	Kopli 103, Tallinn, Harju county, 11712
Country :	Estonia
Financials (as on) :	31.12.2010
Date of Incorporation :	07.07.2008
Com. Reg. No.:	11515345
Legal Form :	Limited Liability Company
Line of Business :	Wholesale of metals and metal ores

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	320 000 EUR
Status :	Satisfactory
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

:

Vakaru Refonda Osauhing

Name in English

:

Vakaru Refond LLC

Name in national language

:

Vakaru Refonda O

Office address

:

Kopli 103, Tallinn, Harju county, 11712, Estonia

Legal Address

:

Kopli 103, Tallinn, Harju county, 11712, Estonia

Contacts

:

-	Phone	:	(+372) 6102933
-	Fax	:	(+372) 6102999
-	E-mail	:	refonda@bsr.ee
-	WWW	:	www.refonda.ee

SUMMARY

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

Incorporation : 2008

Staff : 72

Litigation events : none Remarks on payments : none

Sales :	490 810 361.00 EEK ( for 12 months, ended 31.12.2010 )
	181 578 703.00 EEK ( for 12 months, ended 31.12.2009 )

Credit Opinion

Credit Limit

:

320 000 EUR Credit line at value over the Credit Limit is advised to be secured with proper guarantees.

Incorporation

:

2008

Registration Data

Date of registration

:

07.07.2008

Registration number

:

11515345

Registr. authority

:

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

Date of registration

:

01.09.2008

VAT number

:

EE101241072

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 07.07.2008

Limited liability company (LLC) is a company with a capital divided into shares and who is liable for its obligations with all its assets. The minimum share capital must be at least 40,000.00 EEK (2,556.00 EUR), held by one or several shareholders.

Share Capital

:

63 911 EUR (registered)

since 12.04.2011

Shareholders

:

-	UAB " VAKARU REFONDA" (Lithuania)				100.00 %
		share's book value	:	63 911 EUR
		reg. number	:	142040130

Board / Executives

Executives

Member of the board

:

Mr Raag, Peeter (Estonia)
	pers. code: 36611230256
	address: Tallinn, Harju county, Estonia

Member of the board

:

Mr Sagal, Viktor (Estonia)
	pers. code: 36602190329
	address: Tallinn, Harju county, Estonia

Member of the board

:

Mr Stsurakov, Viktor (Estonia)
	pers. code: 35101210258
	address: Tallinn, Harju county, Estonia

:

The member of the management board represents the private limited company alone unless noted otherwise in the commercial register.

Authorised signature

:

Mr Raag, Peeter

Mr Sagal, Viktor

Mr Stsurakov, Viktor

Changes in Registration Data

- 12.04.2011

:

share capital

- 12.04.2011

:

managers, authorised signature

Mrs Polehhina, Olesja (Estonia, 48301172235)

- 26.05.2010

:

activities

Principal activity: Recovery of sorted materials (NACE code: 38.32)

- 29.07.2009

:

managers, authorised signature

Mr Berman, Mark (Estonia, 37807310231)

Activities

:

-	505	Metals and Minerals, Except Petroleum
		(NACE 5152: Wholesale of metals and metal ores)

Principal activity: Wholesale of metals and metal ores (NACE code: 46.72) Additional activity: Other personal service activities (NACE code: 96.09)

The main categories of goods are HMS1 (3A) � dimensional (bulk) material and HMS 1 & 2 (70/30) - mixed, shredded material. Other categories that are usually offered for sale are: - cast iron - chipped rejects of a new production - galvanized sheet plate - rails - automotive scrap - chip scrap Several categories of non-ferrous scrap metal are also offered, and their main types are: - multicomponent- or electrical copper - bronze and brass - bronze and brass radiators - various types of aluminum scrap - lead and lead batteries - zinc - electric motors, etc. In addition to the core business of buying up and processing various types of scrap metal, our company provides to its clients the following services: - provision of transport for loading and removal of scrap metal from the territory of the seller - rental of containers of various sizes for storage of various types of scrap - purchase and dismantling of floating craft - purchase and dismantling of railway transportation means - purchase and dismantling of metal-intensive equipment and structures - demolition of real estate objects - rent of loading and unloading equipment

Staff employed

:

72

( the data as of 31.12.2010 )

Staff History

:

-	62
	( the data as of 31.12.2009 )
-	62
	( the data as of 31.12.2008 )

Export

- 31.12.2010

:

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

470 128 741.00

Germany, Latvia, Belgium, Spain, Sweden, Cyprus, Netherlands, China Peoples Republic, Turkey, World-wide

- 31.12.2009

:

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

171 040 570.00

Germany, Latvia, Belgium, Spain, Sweden, European Union, China Peoples Republic, India, Hong Kong, Pakistan, Norway, Anguilla, Turkey

Facilities

Real estate

:

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

Branches

:

-	Representative office (Kohtla-Jarve, Ida-Viru county, Estonia)
	name	:	Representation in Kohtla-Jarve
	address	:	Ehitajate tee 120, Kohtla-Jarve, Ida-Viru county, 30221, Estonia
-	Representative office (Narva, Ida-Viru county, Estonia)
	name	:	Representation in Narva
	address	:	Joala 38, Narva, Ida-Viru county, Estonia
-	Representative office (Parnu, Parnu county, Estonia)
	name	:	Representation in Parnu
	address	:	Savi 37, Parnu, Parnu county, 80010, Estonia
-	Representative office (Rakvere, Laane-Viru county, Estonia)
	name	:	Representation in Rakvere
	address	:	Narva 25a, Rakvere, Laane-Viru county, 44311, Estonia
-	Representative office (Tallinn, Harju county, Estonia)
	name	:	Representation in Tallinn
	address	:	Betooni 7/Silluse 15, Tallinn, Harju county, Estonia
-	Representative office (Tartu, Tartu county, Estonia)
	name	:	Representation in Tartu
	address	:	Vitamiini 3, Tartu, Tartu county, 51014, Estonia
-	Representative office (Turi, Turi parish, Jarva county, Estonia)
	name	:	Representation in Turi
	address	:	Jaama 22a, Turi, Turi parish, Jarva county, 72213, Estonia
-	Representative office (Voru, Voru county, Estonia)
	name	:	Representation in Voru
	address	:	Vanaraua tee 1, Voru, Voru county, Estonia

Subsidiaries and Participation

:

none

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

Bankers

:

Information on bank details is unavailable.

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 databases: 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	1 059 100.00	572 930.00
- Investments in tangible assets
- Financial assets	0.00	0.00
- Other non-current assets
Non-current assets total	1 059 100.00	572 930.00
CURRENT ASSETS
- Stock	196 470 317.00	145 047 787.00
- Debtors	8 647 383.00	8 655 267.00
- Other receivables
- Short-term financial investments
- Cash	4 369 000.00	412 847.00
- Other current assets
Current assets total	209 486 700.00	154 115 901.00
Assets total	210 545 800.00	154 688 831.00
--- EQUITY AND LIABILITIES ---------
CAPITAL AND RESERVES
- Share capital	1 000 000.00	1 000 000.00
- Additional capital
- Other capital
- Reserve capital		0.00
- Retained earnings (Non-covered loss)	26 485 518.00	-35 623 004.00
Capital and reserves total	27 485 518.00	-34 623 004.00
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	166 086 762.00	164 421 804.00
- short-term amounts owed to banks
- Creditors	16 973 520.00	24 890 031.00
- 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	183 060 282.00	189 311 835.00
Liabilities total	183 060 282.00	189 311 835.00
Equity and liabilities total	210 545 800.00	154 688 831.00
===== PROFIT AND LOSS ACCOUNT ==========
ORDINARY ACTIVITY INCOME AND CHARGES
Net sales	490 810 361.00	181 578 703.00
Cost of goods sold	385 401 993.00	152 044 421.00
Gross profit
Distribution costs	23 549 265.00	39 003 940.00
Administrative and management costs	4 368 588.00	4 847 354.00
Profit on sales
OPERATING INCOME AND CHARGES
Interest receivable
Interest payable
Income from participating interests
Other operating income	1 702 172.00	427 826.00
Other operating charges	2 579 219.00	604 770.00
Operating profit
INVESTMENT INCOME AND CHARGES
Investment income less charges	-14 504 946.00	-7 621 502.00
Profit before taxation	62 108 522.00	-22 115 458.00
Income-tax and other similar payments	0.00	0.00
Profit (loss) from ordinary activity
Extraordinary income less charges
Net profit	62 108 522.00	-22 115 458.00
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	12.65	-12.18
Profit before taxation / Net sales
Operating margin of profit, %
Operating profit / Net sales
Return on investment, %	225.97	63.88
Profit before taxation / Equity
Current assets turnover	2.34	1.18
Net sales / Current assets
Working capital	26 426 418.00	-35 195 934.00
Current assets - Short-term liabilities
Leverage	0.13	-0.22
Equity / Total assets
Current ratio	1.14	0.81
Current assets / Short-term liabilities
Quick ratio	0.07	0.05
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	6.66	-5.47
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 6102933, on 14.10.2011. Mr Raag, Peeter (Member of the board) refused to disclose any information on the subject, because he considers the information available at the official sources to be sufficient for the credit rating assessment.

Capital History

- 07.07.2008

:

1 000 000 EEK (registered)

( the data as of 07.07.2008, cancelled since 12.04.2011 )

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	4 369 000.00	412 847.00
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	8 647 383.00	8 655 267.00
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	196 470 317.00	145 047 787.00
5. BIOLOGICAL ASSETS
6. NON-CURRENT ASSETS HELD FOR SALE
TOTAL CURRENT ASSETS	209 486 700.00	154 115 901.00
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	1 059 100.00	572 930.00
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	1 059 100.00	572 930.00
TOTAL ASSETS	210 545 800.00	154 688 831.00
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	166 086 762.00	164 421 804.00
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	16 973 520.00	24 890 031.00
14. SHORT-TERM PROVISIONS
15. TARGETED FINANCING
SHORT-TERM LIABILITIES TOTAL	183 060 282.00	189 311 835.00
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	183 060 282.00	189 311 835.00
20. SHARE CAPITAL	1 000 000.00	1 000 000.00
20.a. OTHER CAPITAL
21. UNREGISTERED SHARE CAPITAL
22. SHARE PREMIUM
23. LESS TREASURY SHARES
24. Statutory legal reserve		0.00
25. Other reserves
26. RETAINED EARNINGS	-35 623 004.00	-13 507 546.00
27. NET PROFIT/ LOSS FOR FINANCIAL YEAR	62 108 522.00	-22 115 458.00
EQUITY TOTAL	27 485 518.00	-34 623 004.00
EQUITY AND LIABILITIES TOTAL	210 545 800.00	154 688 831.00
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	490 810 361.00	181 578 703.00
2. Change in inventories of agricultural goods
3. Profit (loss) on biological inventories
4. Cost of sales	385 401 993.00	152 044 421.00
GROSS PROFIT (LOSS)	105 408 368.00	29 534 282.00
5. Marketing expenses	23 549 265.00	39 003 940.00
6. Administration and general expenses	4 368 588.00	4 847 354.00
7. Other income	1 702 172.00	427 826.00
8. Other expenses	2 579 219.00	604 770.00
OPERATING PROFIT (LOSS)	76 613 468.00	-14 493 956.00
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	-14 504 946.00	-7 621 502.00
PROFIT(LOSS) ON ORDINARY ACTIVITIES	62 108 522.00	-22 115 458.00
13. Income tax expense	0.00	0.00
NET PROFIT (LOSS) FOR FINANCIAL YEAR	62 108 522.00	-22 115 458.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.14
UK Pound	1	Rs.77.58
Euro	1	Rs.67.58

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.