MIRA INFORM REPORT

Report Date :

30.03.2012

IDENTIFICATION DETAILS

Correct Name :	SIA TOLMETS
Registered Office :	Hika 5, Liepaja, Liepajas region, LV-3401
Country :	Latvia
Financials (as on) :	31.12.2010
Year of Establishment :	1999
Com. Reg. No.:	42103022610
Legal Form :	Limited Company
Line of Business :	Forging, pressing, stamping and roll forming of metal; powder metallurgy
No. of Employees :	126

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 :	1 000 000 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)
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 "TOLMETS"

Name in national language

:

SIA "TOLMETS"

Office address

:

Hika 5, Liepaja, Liepajas region, LV-3401, Latvia

Legal Address

:

Hika 5, Liepaja, Liepajas region, LV-3401, Latvia

Contacts

:

-	Phone	:	(+371) 63425200, 80000013
-	Fax	:	(+371) 63425988
-	E-mail	:	info@tolmets.lv
-	WWW	:	www.tolmets.lv

SUMMARY

Legal Form : SIA (Ltd by Latvian law)

Incorporation : 1999

Staff : 126

Litigation events : none Remarks on payments : yes

Sales :	102 390 022.00 LVL ( for 12 months, ended 31.12.2010 )
	59 734 014.00 LVL ( for 12 months, ended 31.12.2009 )

Credit Opinion

Credit Limit

:

1 000 000 EUR Credit line at value over the Credit Limit is advised to be secured with proper guarantees.

Incorporation

:

1999

Registration Data

Date of registration

:

19.08.2003

Registration number

:

42103022610

Registr. authority

:

Commercial Register (Latvia)

VAT number

:

LV42103022610

Registr. place

:

Latvia

Legal Form

:

SIA (Ltd by Latvian law)

since n/a

Share Capital

:

200 000 LVL (registered)

since 17.05.2005

Shareholders

:

-	Mr Homutovs, Jurijs (Latvia)				48.00 %
		reg. number	:	140462-10802
		address	:	Vergales iela 4-14, Liepaja, Liepajas region, Latvia
-	Mr Carkovs, Vladimirs (Latvia)				48.00 %
		reg. number	:	300959-10805
		address	:	Turaidas iela 18-37, Liepaja, Liepajas region, Latvia
-	Mr Ivanovs, Roberts (Latvia)				4.00 %
		reg. number	:	220170-10801
		address	:	Ugales iela 1/3-44, Liepaja, Liepajas region, Latvia

Board / Executives

Executives

Chairman of the board

:

Mr Ozolina, Inta (Latvia)
	pers. code: 120556-11916
	address: Ronu iela 5-53, Liepaja, Liepajas region, Latvia

Member of the board

:

Mrs Geraskina, Jelena (Latvia)
	pers. code: 280165-10828
	address: Dzintaru iela 86-17, Liepaja, Liepajas region, Latvia

Member of the board

:

Mr Ivanovs, Roberts (Latvia)
	pers. code: 220170-10801
	address: Ugales iela 1/3-44, Liepaja, Liepajas region, Latvia

Authorised signature

:

Mrs Geraskina, Jelena

Mr Ivanovs, Roberts

Mr Ozolina, Inta

Changes in Registration Data

- 19.02.2010

:

shareholders

- 04.11.2008

:

shareholders

- 05.08.2008

:

managers

- 04.12.2007

:

shareholders

- 06.10.2006

:

shareholders

- 21.11.2005

:

managers

- 23.09.2005

:

managers

- 17.05.2005

:

shareholders

- 18.03.2005

:

legal address, managers

obsolete legal address: Liepaja, Hikes iela 5

- 19.08.2003

:

share capital, shareholders

- 12.12.2002

:

legal address, managers

obsolete legal address: Liepaja, Rojas iela 5-39

- 08.11.2002

:

shareholders

Activities

:

-	3462	Iron & Steel Forgings, NEC
		(NACE 2840: Forging, pressing, stamping and roll forming of metal; powder metallurgy)
-	5051	Iron & Steel Products
		(NACE 5152: Wholesale of metals and metal ores)
-	5093	Metal Scrap & Waste Materials
		(NACE 5157: Wholesale of waste and scrap)

processing of metal scrap; production of steel products; trade in steel goods

Staff employed

:

126

( the data as of 30.09.2011 )

Staff History

:

-	116
	( the data as of 2010 )
-	95
	( the data as of 2009 )
-	127
	( the data as of 2008 )

Export

:

Eastern Europe, Asia, Hong Kong, India, European Community

Branches

:

-	Branch (Riga, Rigas region, Latvia)
	name	:	Auto parstrade, SIA
	address	:	Granita 13, Riga, Rigas region, Latvia
-	Branch (Riga, Rigas region, Latvia)
	name	:	Tolmets production
	address	:	Granita 13, Riga, Rigas region, Latvia

There are 6 representation offices in Estonia, 5 representation offices in Lithuania.

Subsidiaries and Participation

:

n/a

Bankers

:

-	SEB Latvijas Unibanka (Latvia)
	account(s)	:	LV53UNLA0050005135465

Clients

:

There are above 12 distributors with 38 trading offices in Latvia

Litigation

:

none

There are no bankruptcy/insolvency listed in the subject name in the official sources.

Remarks on payment

- 20.03.2007

:

Debt collection (confirmed)				0.00 LVL
	payment status	:	complete

/debt's range: 100-1000 LVL, debt's status: closed, paid/

( the data as of 20.03.2007, cancelled since 29.10.2007 )

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

Business mortgages

- 15.04.2011

:

Commercial pledge
	pledgee	:	SEB banka, AS (Latvia)

- 01.06.2010

:

Commercial pledge
	pledgee	:	SEB lizings SIA (Latvia)

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
- Fixed assets	13 545 361.00	13 339 370.00
- Investments in tangible assets
- Financial assets	1 497 877.00	966 381.00
- Other non-current assets
Non-current assets total	15 043 238.00	14 305 751.00
CURRENT ASSETS
- Stock	8 301 431.00	5 643 506.00
- Debtors	4 653 046.00	3 375 243.00
- Other receivables
- Short-term financial investments	6 430.00	28 676.00
- Cash	133 953.00	808 441.00
- Other current assets
Current assets total	13 094 860.00	9 855 866.00
Assets total	28 138 098.00	24 161 617.00
--- EQUITY AND LIABILITIES ---------
CAPITAL AND RESERVES
- Share capital	200 000.00	200 000.00
- Additional capital
- Other capital
- Reserve capital	731 375.00	743 463.00
- Retained earnings (Non-covered loss)	6 806 060.00	4 269 509.00
Capital and reserves total	7 737 435.00	5 212 972.00
Provisions	100 361.00	81 277.00
LONG-TERM LIABILITIES
- Loans and credits	12 979 570.00	14 228 513.00
- long-term amounts owed to banks	4 228 236.00	4 749 632.00
- Other long-term liabilities	728 106.00	637 676.00
Long-term liabilities total	13 707 676.00	14 866 189.00
SHORT-TERM LIABILITIES
- Loans and credits	2 051 767.00	1 260 567.00
- short-term amounts owed to banks	1 947 298.00	1 251 398.00
- Creditors	2 174 778.00	1 699 354.00
- trade debts	1 404 728.00	1 172 872.00
- accrued payroll
- tax liabilities	131 226.00	68 469.00
- other creditors	121 116.00	49 888.00
- advances received	517 708.00	408 125.00
- Dividends in arrears
- Accrued income, deferred charges	2 366 081.00	1 041 258.00
- Other short-term liabilities
Short-term liabilities total	6 592 626.00	4 001 179.00
Liabilities total	20 300 302.00	18 867 368.00
Equity and liabilities total	28 138 098.00	24 161 617.00
===== PROFIT AND LOSS ACCOUNT ==========
ORDINARY ACTIVITY INCOME AND CHARGES
Net sales	102 390 022.00	59 734 014.00
Cost of goods sold	96 966 438.00	56 470 345.00
Gross profit	5 423 584.00	3 263 669.00
Distribution costs	428 861.00	311 389.00
Administrative and management costs	768 043.00	644 627.00
Profit on sales
OPERATING INCOME AND CHARGES
Interest receivable	1 779.00	68 886.00
Interest payable	291 184.00	298 080.00
Income from participating interests
Other operating income	384 995.00	1 011 969.00
Other operating charges	320 596.00	132 959.00
Operating profit
INVESTMENT INCOME AND CHARGES
Investment income less charges	9 519.00	57 111.00
Profit before taxation	4 011 193.00	3 014 580.00
Income-tax and other similar payments	360 448.00	187 666.00
Profit (loss) from ordinary activity
Extraordinary income less charges
Net profit	3 469 885.00	2 592 864.00
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	3.92	5.05
Profit before taxation / Net sales
Operating margin of profit, %
Operating profit / Net sales
Return on investment, %	51.84	57.83
Profit before taxation / Equity
Current assets turnover	7.82	6.06
Net sales / Current assets
Working capital	6 502 234.00	5 854 687.00
Current assets - Short-term liabilities
Leverage	0.27	0.22
Equity / Total assets
Current ratio	1.99	2.46
Current assets / Short-term liabilities
Quick ratio	0.73	1.05
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	2.62	3.62
Total liabilities / Equity

Publications

- 20.04.2011

:

Subject

:

www.rus.delfi.lv

SEB banka has provided a 2,5 mill EUR loan to metal processing enterprise Tolmets...

FINAL COMMENTS

The contact person Mrs Ozolina Inta has provided us only with a few data. By her words the company's risks are not indemnified. The company operates mainly on prepayment basis. The company has got a credit line in SEB Bank. By results of 2010 the company is in the list of TOP 100 Latvian companies. In 2011 the business is going better tha in 2010.

Registration History

- 01.12.1999

:

Registration number	:	210302261
Registr. authority	:	State Register (Latvia)

( the data as of 01.12.1999, cancelled since 19.08.2003 )

Capital History

- date n/a

:

75 000 LVL (registered)

( the data cancelled since 17.05.2005 )

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	102 390 022.00	59 734 014.00
020 Cost of sales	-96 966 438.00	-56 470 345.00
025 Change in stock, finished and semi-finished goods
030 Gross profit or loss	5 423 584.00	3 263 669.00
035 Facilities produced at the expense of own funds for internal use
040 Distribution costs	-428 861.00	-311 389.00
050 Administrative expenses	-768 043.00	-644 627.00
060 Other operating income	384 995.00	1 011 969.00
062 Economical expenses
064 Gross profit or loss
065 Administrative charges
067 Depreciation of fixed assets
068 Other operating expenses	-320 596.00	-132 959.00
070 Income from participating interests
080 Income from securities and loans forming long-term	9 519.00	57 111.00
investments
090 Other interest receivable and similar income	1 779.00	68 886.00
100 Value adjustments in respect of financial assets and
of investments held as current assets
110 Interest payable and similar charges	-291 184.00	-298 080.00
120 Profit or loss on ordinary activities before taxation	4 011 193.00	3 014 580.00
130 Extraordinary income
140 Extraordinary charges
150 Extraordinary profit or loss before taxation
151 Profit or loss before taxation	4 011 193.00	3 014 580.00
160 Income-tax for fiscal period	-441 369.00	-294 033.00
170 Other taxes	-9 509.00	-10 658.00
175 Deferred Income-tax for fiscal period	90 430.00	117 025.00
180 Profit or loss for fiscal period	3 469 885.00	2 592 864.00
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	4 729 364.00	4 228 761.00
061 Long-term investments in leased tangible assets	1 723.00	0.00
070 Plant and machinery	5 308 925.00	5 853 710.00
080 Other fixtures and fittings, tools and equipment	2 795 303.00	2 698 681.00
090 Payments on account and tangible assets in cours	336 486.00	532 368.00
of construction
091 Prepayment for tangible assets	373 560.00	25 850.00
100 Total tangible assets	13 545 361.00	13 339 370.00
III Investment property, total
107 Total biological assets
Financial assets
110 Shares in subsidiaries	1 426 205.00	758 236.00
120 Loans to subsidiaries	21 672.00	157 619.00
130 Shares in related companies
140 Loans to related companies
150 Other securities and capital participation	50 000.00	50 526.00
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	1 497 877.00	966 381.00
200 NON-CURRENT ASSETS TOTAL	15 043 238.00	14 305 751.00
CURRENT ASSETS
Stock
210 Raw materials and consumables	9 590.00	4 484.00
220 Work in progress	1 167 716.00	96 443.00
230 Finished goods and goods for resale	4 485 843.00	4 049 495.00
240 Orders outstanding
250 Payments on account	2 638 282.00	1 493 084.00
260 Working and productive animals
270 Total stock	8 301 431.00	5 643 506.00
275 LONG-TERM INVESTMENT ASSETS WITHHELD
FOR SALE
Debtors
280 Trade debtors	3 317 344.00	2 952 938.00
290 Amounts owed by subsidiaries	45 808.00	85 360.00
300 Amounts owed by related companies
310 Other debts	1 215 541.00	273 649.00
320 Subscribed capital called but not paid
330 Short-terms loans to the members of the company
and the management
340 Prepayments and accrued	74 353.00	63 296.00
341 Accrued income
343 Deferred tax liabilities
350 Total debtors	4 653 046.00	3 375 243.00
Securities current assets and short-term capital
participations
360 Shares in subsidiaries
370 Own shares and parts
380 Other securities and capital participation	6 430.00	28 676.00
385 Financial derivatives
390 Total securities and shares	6 430.00	28 676.00
400 Cash at bank and in hand (total)	133 953.00	808 441.00
410 CURRENT ASSETS TOTAL	13 094 860.00	9 855 866.00
420 BALANCE	28 138 098.00	24 161 617.00
L I A B I L I T I E S
CAPITAL AND RESERVES
430 Share capital	200 000.00	200 000.00
440 Share premium account
450 Long-term assets revaluation reserve	731 375.00	743 463.00
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	3 336 175.00	1 676 645.00
520 Profit or loss for the current year	3 469 885.00	2 592 864.00
525 Consolidation margin
530 CAPITAL AND RESERVES TOTAL	7 737 435.00	5 212 972.00
PROVISIONS
540 Provisions for pensions and similar obligations
550 Provisions for taxation	19 483.00	15 779.00
560 Other provisions	80 878.00	65 498.00
570 PROVISIONS TOTAL	100 361.00	81 277.00
CREDITORS
Long-term liabilities
580 Debenture loans
590 Convertible loans
600 Amounts owed to credit institutions	4 228 236.00	4 749 632.00
601 Other loans	8 751 334.00	9 478 881.00
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	728 106.00	637 676.00
640 Total long-term liabilities	13 707 676.00	14 866 189.00
Short-term liabilities
650 Debenture loans
660 Convertible loans
670 Amounts owed to credit institutions	1 947 298.00	1 251 398.00
671 Other loans	104 469.00	9 169.00
680 Advanced payments received	517 708.00	408 125.00
690 Trade debts	1 404 728.00	1 172 872.00
700 Bills of exchange payable
710 Amounts owed to subsidiaries	5 250.00	5 070.00
720 Amounts owed to related companies
730 Taxes and social security payments	131 226.00	68 469.00
740 Other creditors	115 866.00	44 818.00
750 Deferred income	2 274 471.00	985 466.00
760 Fiscal period dividends
770 Non-paid dividends of previous years
771 Accrued charges	91 610.00	55 792.00
773 Deferred tax liabilities
774 Obligations for state funds exploitation
775 Alienated financial instruments
995 Depreciation
780 Total short-term liabilities	6 592 626.00	4 001 179.00
790 CREDITORS TOTAL	20 300 302.00	18 867 368.00
800 BALANCE	28 138 098.00	24 161 617.00
990 Employees number

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.15
UK Pound	1	Rs.81.41
Euro	1	Rs.68.22

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.