MIRA INFORM REPORT

Report Date :

12.11.2012

IDENTIFICATION DETAILS

Name :	LM-International Europa GMBH
Registered Office :	Grootkoppel 15, D 23858 Reinfeld
Country :	Germany
Financials (as on) :	31.12.2010
Date of Incorporation :	24.11.1976
Com. Reg. No.:	HRB 8343 HL
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of leather goods, luggage, giftware and advertising articles
No. of Employees :	05 employees

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Germany	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

germany - ECONOMIC OVERVIEW

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth in 2006 and 2007 and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II - and its decrease to 6.0% in 2011. GDP contracted 5.1% in 2009 but grew by 3.6% in 2010, and 2.7% in 2011. The recovery was attributable primarily to rebounding manufacturing orders and exports - increasingly outside the Euro Zone. Germany's central bank projects that GDP will grow 0.6% in 2012, a reflection of the worsening euro-zone financial crisis and the financial burden it places on Germany as well as falling demand for German exports. Domestic demand is therefore becoming a more significant driver of Germany's economic expansion. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's budget deficit to 3.3% in 2010, but slower spending and higher tax revenues reduce the deficit to 1.7% in 2011, below the EU's 3% limit. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela Merkel announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany hopes to replace nuclear power with renewable energy. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its energy and 46% of its base-load electrical production.

Source : CIA

Company name

LM-International Europa GmbH

Company address

Grootkoppel 15

D 23858 Reinfeld

Telephone:04533/208720

Telefax: 04533/2087225

Homepage: www.lmi.de

E-mail: info@lmi.de

VAT no

DE171036959

CONCLUSION

Business relations are permissible.

Synthesis

LEGAL FORM Private limited company

Date of foundation: 24.11.1976

Shareholders'

agreement: 24.11.1976

Registered on: 01.07.2008

Commercial Register: Local court 23568 Lübeck

under: HRB 8343 HL

Share capital: EUR 25,564.59

Shareholder

Lothar Müller

Grootkoppel 15

D 23858 Reinfeld

born: 19.05.1948

Share: EUR 25,564.59

Manager

Lothar Müller

Grootkoppel 15

D 23858 Reinfeld

having sole power of representation

born: 19.05.1948

Marital status: married

Proxy

Jonas Müller

D 23858 Wesenberg

having sole power of representation

born: 02.12.1989

Proxy:

Christian Müller

D 23858 Wesenberg

having sole power of representation

born: 10.10.1983

Further functions/participations of Lothar Müller (Manager)

Limited partner:

L M - Import Lothar Müller Gesellschaft mit

beschränkter Haftung & Co.

Werbeartikel-Handelsgesellschaft KG

Belziger Str. 69/71

D 10823 Berlin

Legal form: Ltd partnership with priv. ltd.

company as general partner

Total cap. EUR 12,782.30

contribution:

Share: EUR 12,782.30

Registered

on: 08.02.1977

Reg. data: 14057 Berlin, HRA 16856

COMPANY HISTORY

26.01.1977 - 01.07.2008 L M - Import Lothar Müller Gesellschaft

mit beschränkter Haftung

Belziger Str. 69/71

D 10823 Berlin

Private limited company

BUSINESS ACTIVITIES

Secondary industrial sector

46493 Wholesale of leather goods, luggage, giftware and advertising articles

47722 Retail sale of leatheware and baggage

PARTICIPATIONS

General partner:

L M - Import Lothar Müller Gesellschaft mit

beschränkter Haftung & Co.

Werbeartikel-Handelsgesellschaft KG

Belziger Str. 69/71

D 10823 Berlin

Legal form: Ltd partnership with priv. ltd.

company as general partner

Company Status: active

Total cap. EUR 12,782.30

contribution:

Reg. data: 08.02.1977

Local court 14057 Berlin

HRA 16856

FINANCIAL INFORMATION

Payment experience: within periods customary in this trade

Negative information: We have no negative information at hand.

Balance sheet year: 2010

REAL ESTATE

Type of ownership: Tenant

Address Grootkoppel 15

D 23858 Reinfeld

Real Estate of: Lothar Müller

Type of ownership: Tenant

Address Neu Hartmannsdorfer Str. 8

D 15528 Spreenhagen

Land register documents were not available.

BANKERS

SPARKASSE HOLSTEIN, REINFELD (HOLSTEIN)

Sort. code: 21352240, BIC: NOLADE21HOL

FINANCIAL FIGURES

Turnover: 2010 EUR 900,000.00

2011 EUR 900,000.00

Profit: 2010 EUR -10,906.00

further business figures:

Equipment: EUR 40,000.00

Ac/ts receivable: EUR 19,346.00

Liabilities: EUR 888,000.00

Employees: 5

The aforementioned business figures may partly be estimated information based on average values in the line of business.

BALANCE SHEETS

Balance sheet ratios 01.01.2010 - 31.12.2010

Equity ratio [%]: 35.06

Liquidity ratio: 0.02

Return on total capital [%]: -0.83

Balance sheet ratios 01.01.2009 - 31.12.2009

Equity ratio [%]: 21.25

Liquidity ratio: 0.03

Return on total capital [%]: -10.72

Balance sheet ratios 01.01.2008 - 31.12.2008

Equity ratio [%]: 26.35

Liquidity ratio: 0.05

Return on total capital [%]: -2.26

Balance sheet ratios 01.01.2007 - 31.12.2007

Equity ratio [%]: 27.70

Liquidity ratio: 0.07

Return on total capital [%]: -1.82

Equity ratio

The equity ratio indicates the portion of the equity as compared to the total capital. The higher the equity ratio, the better the economic stability (solvency) and thus the financial autonomy of a company.

Liquidity ratio

The liquidity ratio shows the proportion between adjusted receivables and net liabilities. The higher the ratio, the lower the company's financial dependancy from external creditors.

Return on total capital

The return on total capital shows the efficiency and return on the total capital employed in the company. The higher the return on total capital, the more economically does the company work with the invested capital.

Type of balance

sheet: Company balance sheet

Financial year: 01.01.2010 - 31.12.2010

ASSETS EUR 1,316,286.33

Fixed assets EUR 1,134,216.88

Tangible assets EUR 1,134,216.88

Other / unspecified tangible assets EUR 1,134,216.88

Current assets EUR 181,540.45

Stocks EUR 160,010.17

Accounts receivable EUR 19,346.24

Other debtors and assets EUR 19,346.24

Liquid means EUR 2,184.04

Remaining other assets EUR 529.00

Accruals (assets) EUR 529.00

LIABILITIES EUR 1,316,286.33

Shareholders' equity EUR 418,686.67

Capital EUR 25,564.59

Subscribed capital (share capital) EUR 25,564.59

Balance sheet profit/loss (+/-) EUR 393,122.08

Profit / loss brought forward EUR 404,028.11

Annual surplus / annual deficit EUR -10,906.03

Provisions EUR 9,600.00

Liabilities EUR 887,999.66

Other liabilities EUR 887,999.66

Unspecified other liabilities EUR 887,999.66

Type of balance

sheet: Company balance sheet

Financial year: 01.01.2009 - 31.12.2009

ASSETS EUR 1,286,678.19

Fixed assets EUR 1,041,002.76

Intangible assets EUR 474.00

Other / unspecified intangible assetsEUR 474.00

Tangible assets EUR 1,040,528.76

Other / unspecified tangible assets EUR 1,040,528.76

Current assets EUR 245,146.43

Stocks EUR 214,613.19

Accounts receivable EUR 28,576.34

Other debtors and assets EUR 28,576.34

Liquid means EUR 1,956.90

Remaining other assets EUR 529.00

Accruals (assets) EUR 529.00

LIABILITIES EUR 1,286,678.19

Shareholders' equity EUR 273,589.58

Capital EUR 25,564.59

Subscribed capital (share capital) EUR 25,564.59

Balance sheet profit/loss (+/-) EUR 248,024.99

Profit / loss brought forward EUR 385,900.04

Annual surplus / annual deficit EUR -137,875.05

Provisions EUR 9,600.00

Liabilities EUR 1,003,488.61

Other liabilities EUR 1,003,488.61

Unspecified other liabilities EUR 1,003,488.61

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.34
UK Pound	1	Rs.86.97
Euro	1	Rs.69.43

INFORMATION DETAILS

Report Prepared by :

MNL

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.