MIRA INFORM REPORT

Report Date :

21.02.2012

IDENTIFICATION DETAILS

Correct Name :	SIA VARNER BALTIJA
Formerly Known As :	Sabiedriba ar ierobezotu atbildibu "DRESSMANN BALTIJA"
Registered Office :	Krasta iela 46, Riga, Rigas region, LV-1003
Country :	Latvia
Financials (as on) :	31.12.2010
Date of Incorporation :	31.05.2004
Com. Reg. No.:	40003241337
Legal Form :	Limited Company
Line of Business :	Retail sale of clothing
No. of Employees :	150

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 :	40 000 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

:

SIA "VARNER BALTIJA"

Name in English

:

VARNER BALTIJA, LTD

Name in national language

:

SIA "VARNER BALTIJA"

Previous Names

:

-	Sabiedriba ar ierobezotu atbildibu "DRESSMANN BALTIJA"

Trading Names, Brands

:

-	Cubus, Dresmann, Bik Bok

Office address

:

Krasta iela 46, TC "Mols"-3.st., Riga, Rigas region, LV-1003, Latvia

Legal Address

:

Krasta iela 46, Riga, Rigas region, LV-1003, Latvia

Contacts

:

-	Phone	:	(+371) 67030420
-	Phone	:	(+371) 67030427
	Aija Vipule
-	E-mail	:	aija.vipule@varner.lv
	Aija Vipule
-	Fax	:	(+371) 67030431
-	mobile tel.	:	(+371) 26326597
	Aija Vipule

company SUMMARY

Legal Form : SIA (Ltd by Latvian law)

Incorporation : 1994

Staff : 150

Litigation events : none Remarks on payments : yes

Sales :	6 658 084.00 LVL ( for 12 months, ended 31.12.2010 )
	6 394 209.00 LVL ( for 12 months, ended 31.12.2009 )

Credit Opinion

Credit Limit

:

40 000 EUR

Incorporation

:

1994

On 10.03.1999 a Trading center DOLE SIA was separated from the subject company through reorganisation.

Registration Data

Date of registration

:

31.05.2004

Registration number

:

40003241337

Registr. authority

:

Commercial Register (Latvia)

Registration in the Commercial Register: 31.05.2004 Registration Certificate: C34211

VAT number

:

LV40003241337

Registr. place

:

Latvia

Legal Form

:

SIA (Ltd by Latvian law)

since n/a

Share Capital

:

3 774 000 LVL (registered)

since n/a

Shareholders

:

-	VARNER TEKSTIL AS (Norway)				100.00 %
		reg. number	:	007006119
		address	:	Bergerv 5, 1394 Nesbru, 0220 Asker, Norge, Norway

Board / Executives

Executives

Chairman of the board

:

Mr Varner Stein Marius (Norway)
	pers. code: 800010-68502
	address: Nesoya, Odden 13, 1397, Norway

Member of the board

:

Mr Martinsen Leiv Erik (Norway)
	pers. code: 800010-68318
	address: Lovenstad, Holenveien 33, 2006, Norway

Member of the board

:

Mr Oksebaas Petter Marius (Norway)
	pers. code: 800010-68203
	address: Industrigata 58, 0357, Oslo, Norway

Chief Accountant

:

Mrs Aija Vipule (Latvia)

Proxy

:

Mr Mozeiko, Edmunds (Latvia)
	pers. code: 190364 -12761

Proxy

:

Mrs Ozolina, Inga (Latvia)
	pers. code: 140876-11514

Proxy

:

Mrs Vipule, Aija (Latvia)
	pers. code: 200868-11494
	address: Dumbraja iela 18 dz. 8, Riga, Rigas region, Latvia

Proxy

:

Mr Hamsund, Kenneth (Latvia)
	address: Aldaru iela 10 dz.5, Riga, Rigas region, Latvia

( the data as of 13.06.2011, cancelled since 04.01.2012 )

Authorised signature

:

Mr Martinsen Leiv Erik

Mr Mozeiko, Edmunds

Mr Oksebaas Petter Marius

Mrs Ozolina, Inga

Mr Varner Stein Marius

Mrs Vipule, Aija

Mr Hamsund, Kenneth

( the data as of 13.06.2011, cancelled since 04.01.2012 )

Changes in Registration Data

:

Historical addresses: Riga, Audeju iela 16 Riga, Aspazijas bulvaris 26 Riga, Aglonas iela 26-65

- 17.01.2012

:

registered or changed procurist

- 11.01.2012

:

registered or changed procurist

- 04.01.2012

:

managers

registered or changed procurist

- 02.01.2012

:

registered or changed procurist

- 06.05.2009

:

share capital, shareholders

- 11.10.2007

:

managers

- 13.07.2007

:

managers

- 02.12.2004

:

share capital, shareholders

- 31.05.2004

:

activities, managers, shareholders

- 30.04.2004

:

/not known/

- 27.03.2003

:

managers

- 09.05.2002

:

managers

- 26.11.2001

:

managers

- 06.11.2001

:

managers

- 25.08.2000

:

share capital

- 17.12.1999

:

shareholders

- 22.10.1999

:

legal address, activities, managers, shareholders

- 10.03.1999

:

On 10.03.1999 a Trading center DOLE SIA was separated from the subject company through reorganisation.

- 22.02.1999

:

managers

- 30.12.1998

:

share capital

- 23.12.1996

:

shareholders

- 17.09.1996

:

activities

- 10.09.1996

:

managers

- 18.04.1996

:

name, legal address, shareholders

- 31.08.1995

:

legal address

Activities

:

-	5699	Customized Clothing & Apparel
		(NACE 5242: Retail sale of clothing)

Retail trade of clothing.

Staff employed

:

150

( the data as of 30.09.2011 )

Staff History

:

-	170
	( the data as of 13.06.2011 )
-	144
	( the data as of 31.03.2011 )
-	193
	( the data as of 06.09.2009 )

Export / Import

:

According to the information from the interview:

Export

:

none

Import

:

Sweden, Turkey, Germany, Poland, Hong Kong

Facilities

Real estate

:

rent:
-	Premises - Office
	size/amnt	:	142.00 sq.m
-	Premises - Storehouse
	Storehouse in shopping center Dole

Branches

:

4 shops Dressmann, 8 shops Cubus, 5 shops Bik Bok.

Subsidiaries and Participation

:

none

Bankers

:

-	AS SEB Banka (Latvia)
	account(s)	:	LV50UNLA0002080467157

Clients

:

Retail customers/ population

Suppliers

:

-	PAN-PACIFIC (Hong Kong)
-	STILVEL (Hong Kong)
-	WARANTEX (Hong Kong)

Number of main suppliers: 5

Other associated Companies

:

-	Bik Bok AS (Norway)
-	Cubus AS (Norway)
-	Dressmann AS (Norway)

Litigation

:

none

There are no bankruptcy/insolvency notes recorded.

Remarks on payment

- 04.03.2010

:

Debt collection (confirmed)

0.00 LVL

Debt's range is not available. Payment's status is not available.

( the data as of 04.03.2010, cancelled since 15.03.2010 )

- 13.10.2009

:

Debt collection (confirmed)

0.00 LVL

Debt's range is not available. Payment's status is not available.

( the data as of 13.10.2009, cancelled since 26.11.2009 )

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

Business mortgages

:

none

Financial Elements

Period, months	12	12	12
Ended	31.12.2010	31.12.2009	31.12.2008
Currency	LVL	LVL	LVL
Non-current assets	709 068.00	1 032 369.00	1 072 642.00
incl: - Fixed assets	709 068.00	1 032 369.00	1 072 412.00
- Financial assets
Current assets	4 098 755.00	3 725 861.00	3 370 213.00
incl: - Stock	2 321 722.00	2 286 036.00	1 983 988.00
- Debtors	135 231.00	304 752.00	220 760.00
- Cash	1 641 802.00	1 135 073.00	1 165 465.00
ASSETS TOTAL	4 807 823.00	4 758 230.00	4 442 855.00
Equity	3 606 115.00	3 880 847.00	3 177 587.00
incl: - Share capital	3 774 000.00	3 774 000.00	2 188 000.00
Liabilities Total	900 515.00	610 921.00	753 986.00
incl: - Long-term liabilities			6 081.00
- Short-term liabilities	900 515.00	610 921.00	747 905.00
EQUITY AND LIABILITIES TOTAL	4 807 823.00	4 758 230.00	4 442 855.00
Net sales	6 658 084.00	6 394 209.00	7 733 481.00
Cost of goods sold	-3 585 267.00	-3 658 786.00	3 912 547.00
Operating profit
Profit before taxation	-274 732.00	-888 821.00	-290 917.00
Net profit	-274 732.00	-882 740.00	-255 349.00
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	-4.13	-13.90	-3.76
Profit before taxation / Net sales
Operating margin of profit, %
Operating profit / Net sales
Return on investment, %	-7.62	-22.90	-9.16
Profit before taxation / Equity
Current assets turnover	1.62	1.72	2.29
Net sales / Current assets
Working capital	3 198 240.00	3 114 940.00	2 622 308.00
Current assets - Short-term liabilities
Leverage	0.75	0.82	0.72
Equity / Total assets
Current ratio	4.55	6.10	4.51
Current assets / Short-term liabilities
Quick ratio	1.97	2.36	1.85
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	0.25	0.16	0.24
Total liabilities / Equity

FINAL COMMENTS

Mrs Aija Vipule(Chief Accountant) has no free time, so she could not provide us with information. Mrs Aija Vipule promised to consider our questionnaire the next week. If we get additional information, we will update the report.

Registration History

- 29.12.1994

:

Registration number	:	000324133
Registr. authority	:	State Register (Latvia)

( the data as of 29.12.1994, cancelled since 31.05.2004 )

Capital History

- date n/a

:

2 188 000 LVL (registered)

( the data cancelled since 06.05.2009 )

- date n/a

:

2 820 000 LVL (registered)

( the data cancelled since 02.12.2004 )

APPENDIX A

Financial Statements

Period, months	12	12	12
Ended	31.12.2010	31.12.2009	31.12.2008
Currency	LVL	LVL	LVL
PROFIT AND LOSS ACCOUNT
010 Net turnover	6 658 084.00	6 394 209.00
020 Cost of sales	-3 585 267.00	-3 658 786.00
025 Change in stock, finished and semi-finished goods
030 Gross profit or loss	3 072 817.00	2 435 423.00
035 Facilities produced at the expense of own funds for internal use
040 Distribution costs	-2 900 795.00	-3 498 944.00
050 Administrative expenses	-370 891.00	-475 345.00
060 Other operating income		401 180.00
062 Economical expenses
064 Gross profit or loss
065 Administrative charges
067 Depreciation of fixed assets
068 Other operating expenses	-34 731.00
070 Income from participating interests
080 Income from securities and loans forming long-term
investments
090 Other interest receivable and similar income	2 600.00	20 521.00
100 Value adjustments in respect of financial assets and
of investments held as current assets
110 Interest payable and similar charges	-43 732.00	-71 656.00
120 Profit or loss on ordinary activities before taxation	-274 732.00	-888 821.00
130 Extraordinary income
140 Extraordinary charges
150 Extraordinary profit or loss before taxation
151 Profit or loss before taxation	-274 732.00	-888 821.00
160 Income-tax for fiscal period		6 081.00
170 Other taxes
175 Deferred Income-tax for fiscal period
180 Profit or loss for fiscal period	-274 732.00	-882 740.00
995 Depreciation
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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.
021 Other intangible assets
030 Goodwill
040 Payments on account for intangible assets
050 Total intangible assets
Tangible assets
060 Real estate
061 Long-term investments in leased tangible assets	307 635.00	406 765.00
070 Plant and machinery	377 048.00	582 104.00
080 Other fixtures and fittings, tools and equipment	24 385.00	43 500.00
090 Payments on account and tangible assets in cours
of construction
091 Prepayment for tangible assets
100 Total tangible assets	709 068.00	1 032 369.00
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	709 068.00	1 032 369.00
CURRENT ASSETS
Stock
210 Raw materials and consumables
220 Work in progress
230 Finished goods and goods for resale	2 103 463.00	2 090 584.00
240 Orders outstanding
250 Payments on account	218 259.00	195 452.00
260 Working and productive animals
270 Total stock	2 321 722.00	2 286 036.00
275 LONG-TERM INVESTMENT ASSETS WITHHELD
FOR SALE
Debtors
280 Trade debtors	5 612.00	13 825.00
290 Amounts owed by subsidiaries
300 Amounts owed by related companies
310 Other debts	87 861.00	241 262.00
320 Subscribed capital called but not paid
330 Short-terms loans to the members of the company
and the management
340 Prepayments and accrued	41 758.00	49 665.00
341 Accrued income
343 Deferred tax liabilities
350 Total debtors	135 231.00	304 752.00
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)	1 641 802.00	1 135 073.00
410 CURRENT ASSETS TOTAL	4 098 755.00	3 725 861.00
420 BALANCE	4 807 823.00	4 758 230.00
L I A B I L I T I E S
CAPITAL AND RESERVES
430 Share capital	3 774 000.00	3 774 000.00
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	59 870.00	59 870.00
500 Total reserves
Retained earning or uncovered losses
510 Profit or loss brought forward from previous years	46 977.00	929 717.00
520 Profit or loss for the current year	-274 732.00	-882 740.00
530 CAPITAL AND RESERVES TOTAL	3 606 115.00	3 880 847.00
PROVISIONS
540 Provisions for pensions and similar obligations
550 Provisions for taxation
560 Other provisions	301 193.00	266 462.00
570 PROVISIONS TOTAL	301 193.00	266 462.00
CREDITORS
Long-term liabilities
580 Debenture loans
590 Convertible loans
600 Amounts owed to credit institutions
601 Other loans
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
640 Total long-term liabilities
Short-term liabilities
650 Debenture loans
660 Convertible loans
670 Amounts owed to credit institutions
671 Other loans
680 Advanced payments received	1 639.00	1 027.00
690 Trade debts	16 557.00	29 629.00
700 Bills of exchange payable
710 Amounts owed to subsidiaries	82 609.00	39 099.00
720 Amounts owed to related companies
730 Taxes and social security payments	124 764.00	38 426.00
740 Other creditors	28 135.00	29 632.00
750 Deferred income
760 Fiscal period dividends
770 Non-paid dividends of previous years
771 Accrued charges	646 811.00	473 108.00
773 Deferred tax liabilities
775 Alienated financial instruments
995 Depreciation
780 Total short-term liabilities	900 515.00	610 921.00
790 CREDITORS TOTAL	900 515.00	610 921.00
800 BALANCE	4 807 823.00	4 758 230.00
990 Employees number

- 31.12.2008

:

Fiscal period: 12 month(s), currency: LVL
PROFIT AND LOSS ACCOUNT
010 Net turnover	7 733 481.00
020 Cost of sales	3 912 547.00
030 Gross profit or loss	3 820 934.00
040 Distribution costs	3 578 282.00
050 Administrative expenses	481 618.00
060 Other operating income	1 608.00
070 Other operating expenses	59 402.00
080 Income from participating interests
090 Income from securities and loans forming long-term
investments
100 Other interest receivable and similar income	40 650.00
110 Value adjustments in respect of financial assets and
of investments held as current assets
120 Interest payable and similar charges	34 807.00
130 Profit or loss on ordinary activities before taxation	-290 917.00
140 Extraordinary income
150 Extraordinary charges
160 Profit or loss before taxation	-290 917.00
170 Income-tax for fiscal period	35 568.00
180 Other taxes
190 Profit or loss for fiscal period	-255 349.00
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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.	230.00
030 Other intangible assets
040 Goodwill
050 Payments on account for intangible assets
060 Total intangible assets	230.00
Tangible assets
070 Real estate
080 Long-term investments in leased tangible assets	353 198.00
090 Plant and machinery	659 528.00
100 Other fixtures and fittings, tools and equipment	59 478.00
110 Payments on account and tangible assets in cours
of construction
120 Prepayment for tangible assets	208.00
130 Total tangible assets	1 072 412.00
Financial assets
140 Shares in subsidiaries
150 Loans to subsidiaries
160 Shares in related companies
170 Loans to related companies
180 Other securities and capital participation
190 Other loans
200 Own shares and parts
210 Loans to the members of the company and
the management
220 Total financial assets
230 NON-CURRENT ASSETS TOTAL	1 072 642.00
CURRENT ASSETS
Stock
240 Raw materials and consumables	1 837 999.00
250 Work in progress
260 Finished goods and goods for resale
270 Orders outstanding
280 Payments on account	145 989.00
290 Working and productive animals
300 Total stock	1 983 988.00
Debtors
310 Trade debtors	19 369.00
320 Amounts owed by subsidiaries
330 Amounts owed by related companies
340 Other debts	177 533.00
350 Subscribed capital called but not paid
360 Short-terms loans to the members of the company
and the management
370 Prepayments and accrued	23 858.00
380 Accrued income
390 Total debtors	220 760.00
Securities current assets and short-term capital
participations
400 Shares in subsidiaries
410 Own shares and parts
420 Other securities and capital participation
430 Total securities and shares
440 Cash at bank and in hand (total)	1 165 465.00
450 CURRENT ASSETS TOTAL	3 370 213.00
460 BALANCE	4 442 855.00
L I A B I L I T I E S
CAPITAL AND RESERVES
470 Share capital	2 188 000.00
480 Share premium account
490 Long-term assets revaluation reserve
Reserves
500 Reserve stipulated by law
510 Reserve for own shares and parts
520 Reserve provided by charter
530 Other reserves	59 870.00
540 Total reserves	59 870.00
Retained earning or uncovered losses
550 Profit or loss brought forward from previous years	1 185 066.00
560 Profit or loss for the current year	-255 349.00
570 CAPITAL AND RESERVES TOTAL	3 177 587.00
PROVISIONS
580 Provisions for pensions and similar obligations
590 Provisions for taxation
600 Other provisions	511 282.00
610 PROVISIONS TOTAL	511 282.00
CREDITORS
Long-term liabilities
620 Debenture loans
630 Convertible loans
640 Amounts owed to credit institutions
650 Other loans
660 Advanced payments received
670 Trade debts
680 Bills of exchange payable
690 Amounts owed to subsidiaries
700 Amounts owed to related companies
710 Taxes and social security payments
720 Other creditors
730 Deferred income
740 Fiscal period dividends
771 Accrued charges
750 Non-paid dividends of previous years
634 Deferred tax liabilities	6 081.00
760 Total long-term liabilities	6 081.00
Short-term liabilities
770 Debenture loans
780 Convertible loans
790 Amounts owed to credit institutions
800 Other loans
810 Advanced payments received	1 567.00
820 Trade debts	28 537.00
830 Bills of exchange payable
840 Amounts owed to subsidiaries
850 Amounts owed to related companies	29 955.00
860 Taxes and social security payments	99 020.00
870 Other creditors	33 959.00
880 Deferred income
890 Fiscal period dividends
900 Non-paid dividends of previous years
910 Accrued charges	554 867.00
634 Deferred tax liabilities
920 Total short-term liabilities	747 905.00
930 CREDITORS TOTAL	753 986.00
940 BALANCE	4 442 855.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.21
UK Pound	1	Rs.77.75
Euro	1	Rs.64.58

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.