MIRA INFORM REPORT

Report Date :

16.01.2014

IDENTIFICATION DETAILS

Name :	TANNARO LIMITED
Registered Office :	1 Avlonos, & Santaroza Corner, Nicosia, 1075
Country :	Cyprus
Date of Incorporation :	06.08.1993
Com. Reg. No.:	C56778
Legal Form :	Limited Company
Line of Business :	As an offshore company most of its activities are carried out outside Cyprus, as per articles of association, the subject company is involved in general trade however; we were unable to confirm this.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Offshore Company
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, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
Cyprus	B2	B2

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

Cyprus ECONOMIC OVERVIEW

The area of the Republic of Cyprus under government control has a market economy dominated by the service sector, which accounts for four-fifths of GDP. Tourism, financial services, and real estate are the most important sectors. Erratic growth rates over the past decade reflect the economy's reliance on tourism, the profitability of which can fluctuate with political instability in the region and economic conditions in Western Europe. Nevertheless, the economy in the area under government control has grown at a rate well above the EU average since 2000. Cyprus joined the European Exchange Rate Mechanism (ERM2) in May 2005 and adopted the euro as its national currency on 1 January 2008. An aggressive austerity program in the preceding years, aimed at paving the way for the euro, helped turn a soaring fiscal deficit (6.3% in 2003) into a surplus of 1.2% in 2008, and reduced inflation to 4.7%. This prosperity came under pressure in 2009, as construction and tourism slowed in the face of reduced foreign demand triggered by the ongoing global financial crisis. Although Cyprus lagged behind its EU peers in showing signs of stress from the global crisis, the economy tipped into recession in 2009, contracting by 1.7%, and has been slow to bounce back since, posting anemic growth in 2010-11 before contracting again by 2.3% in 2012. Serious problems surfaced in the Cypriot financial sector in early 2011 as the Greek fiscal crisis and euro zone debt crisis deepened. Cyprus's borrowing costs have risen steadily because of its exposure to Greek debt. Two of Cyprus's biggest banks are among the largest holders of Greek bonds in Europe and have a substantial presence in Greece through bank branches and subsidiaries. Cyprus experienced numerous downgrades of its credit rating in 2012 and has been cut off from international money markets. The Cypriot economy contracted in 2012 following the writedown of Greek bonds. A liquidity squeeze is choking the financial sector and the real economy as many global investors are uncertain the Cypriot economy can weather the EU crisis. The budget deficit rose to 7.4% of GDP in 2011, a violation of the EU's budget deficit criteria - no more than 3% of GDP. In response to the country's deteriorating finances and serious risk of contagion from the Greek debt crisis, Nicosia implemented measures to cut the cost of the state payroll, curb tax evasion, and revamp social benefits, and trimmed the deficit to 4.2% of GDP in 2012. In July, Nicosia became the fifth euro zone government to request an economic bailout program from the European Commission, the European Central Bank, and the International Monetary Fund - known collectively as the "Troika". Negotiations over the final details of the plan are ongoing.

Source : CIA

Basic Information

Registered Name	TANNARO LIMITED
English Name	TANNARO LIMITED
Registered Address	1 Avlonos, & Santaroza Corner, Nicosia, 1075, Cyprus
Headquarters:	1 Avlonos, Maria House, Nicosia, 1075, PoBox 25601, Cyprus
Telephone	+35722761362
Fax	+35722767543
E-mail	info@papadakis.com.cy (Correspondent email)
Web Site	www.papadakis.com.cy (Correspondent website)
Status	Registered and operational
Legal Type	Limited Company
Registration No	C56778	Registration Date	06/08/1993
Start Date	06/08/1993	Years of Operation:	21
Last annual report	31/12/2003
Last return	18/11/2011
CINFO ID:	CYC11620698

Summary

Employees	January 2014
	Company
Total Number	Not Available
We have been unable to locate any offices for the subject and believe they do not maintain offices in Cyprus. Under these circumstances no staff is employed. In such cases, companies may utilize staff (2-3 people) from their auditors’ or lawyers’ offices.
Additional Info:
Legal Advisor: EVROS I. EVRIPIDOU----- 28, Sofouli, Chanteclair Bldg., 1st Floor, Apt. 111, Nicosia ----- Correspondent: M. PAPADAKIS & CO---- 1, Avlonos , 1075, Nicosia -----Tel.: 22761362

Payment

Assessment:	Nil Rating
Payment Habits:	No complaints	A check against all available information sources revealed that no late payment incidents against Subject Company exist.
Financial strength	Unable to comment	Given that the present is an International Business Company - IBC (Offshore Company) and most of its activities are carried out outside Cyprus, coupled with the fact that no further detailed financial information is available, we feel unable to express a safe and reliable opinion on their creditability and commercial morality of the subject.

Business History

Date	Event Name	Old Value	New Value
18/11/2011	Authorized Capital Changed	8550.00 EUR	1000000.00 USD
18/11/2011	Nominal Values of Shares Changed	1.71 EUR	1.00 USD
01/01/2008	Authorized Capital Changed	5000.00 CYP	8550.00 EUR
01/01/2008	Paid Up Capital Changed	1000.00 CYP	1710.00 EUR
01/01/2008	Nominal Values of Shares Changed	1.00 CYP	1.71 EUR

Capital

Authorized Capital	1,000,000.00	USD	Issued Capital	1,000,000.00	USD
Nominal No Of Shares	1,000,000.00		Issued No Of Shares	1,000,000.00
Nominal value	1.00	USD	Paid Up	1,000,000.00	USD

Corporate Structure

Directors

Position

Acts As

ID

Occupation

Age

Appointed

Other dir.

IRENE DATINGUINOO

Director

XX4273094(Passport)

Businesswoman

40

18/11/2011

No

Rosal str., Block 4, Pachoca, Calapan City, Oriental Mindoro, 5200, Philippines

Other Directorship:

No Information Found

Other Shareholding:

No Information Found

Secretary

Position

Acts As

ID

Occupation

Age

Appointed

Other dir.

BORIS OSTROBROD

Company Secretary

7625397(Passport)

Businessman

06/08/1993

No

1 Yakinton Str., Bat-Yam, Israel

Other Directorship:

No Information Found

Other Shareholding:

No Information Found

Shareholders

ID / Reg. No.

Acts As

Nationality

Shares

%

Shares Breakdown

Class

Type

SELA HOLDINGS LIMITED

C202658

-

1000000

100

-

-

-

1 Avlonos, Maria House, Nicosia, 1075, Cyprus

Other Directorship:

No Information Found

Other Shareholding:
	Name	Registration Date	Reg. No.	Status	%	Update Date
	ZAGG LIMITED	09/03/2011	C282968	Registered and operational	100	23/12/2013
	PIVCO HOLDINGS LIMITED	28/02/2011	C282437	Registered and operational	100	23/12/2013

Operations

Activity Code		Description
NACE 2.1	4690	Non-specialized wholesale trade - This class includes: - wholesale of a variety of goods without any particular specialization - -
NACE 2.1	4719	Other retail sale in non-specialized stores - This class includes: - retail sale of a large variety of goods of which food products, beverages or tobacco are not predominant - activities of department stores carrying a general line of merchandise, including wearing apparel, furniture, appliances, hardware, cosmetics, jewellery, toys, sports goods-

Line of Business

According to the Articles of Association, the subject company is involved in general trade however; we were unable to confirm this. The Articles of Association also make provision for other activities.

Business Activities
General Trading
General Traders

Industry Classifications - NAICS
» Merchant Wholesalers, Durable Goods (NAICS # 423)
» Merchant Wholesalers, Nondurable Goods (NAICS # 424)
» Wholesale Trade Agents and Brokers (NAICS # 42512)
» Wholesale Trade (NAICS # 42)

Export to		Percentage
Comments	Non Retrievable

Import from		Percentage
Comments	Non Retrievable

Market Territory
	International Presence	100%
We believe that subject is an International Business Company (IBC) with no offices of its own in Cyprus.

Premises
		Type	Headuarters
Address:	1 Avlonos, Maria House, Nicosia, 1075, PoBox 25601, Cyprus
Headquarters operate as:	correspondent office

Affiliates and Subsidiaries	Relation	Year Reg.
SELA HOLDINGS LIMITED	Parent Company	2007
1 Avlonos, Maria House, Nicosia, 1075, Cyprus

Charges

No	Date registered	Date prepared	Type	Description/No	Amount	Sequence	Beneficiary
0	N/A	N/A	N/A	N/A	N/A	N/A	No charges found

Negatives

A check against our revealed that no negative payment incidents against Subject Company, such as unpaid invoices, utility bills, bankruptcies etc. exist.

Financial Statement

Please note that the latest financial statements were not available in the file of the company at the official companies' registry; as the law provides for all companies. No financial details were available from other public sources.

Additional Information

The subject is an International Business Company - IBC (ex - Offshore Company) registered in Cyprus on 06/08/1993. According to the company's Articles of Association, the company was established to provide General Trade Activities. This information has not been confirmed, since no contact with the company was permitted. Of course the Articles of Association make provision for other activities as well.

IBC companies, being covered by the law of confidentiality, may use nominee shareholders that hold the shares in trust for the beneficial owners. Until recently beneficial owners were made known only to the Central Bank of the Republic of Cyprus, which used to grant permission for the company’s registration in Cyprus. After Cyprus accession into the EU, this practice changed. Beneficial owners of an IBC are now known to the lawyers and / or auditors that undertake the registration of such companies in Cyprus.

In the past IBC’s (ex offshore companies & offshore branches) used to benefit from a corporation tax rate on their profits of 4.25%. However, according to new tax legislation which has been in effect since the 1st January 2003, there is no longer a distinction between local companies and International Business Companies (IBC’s. The net profits of all companies registered in Cyprus are taxed at the rate of 12.5% effective since 1st January 2013.

Furthermore, in the past the law required IBC’s (ex offshore companies & offshore branches), beneficial owners to be non-Cypriot residents and the business activities to be carried out, outside of Cyprus only. This law has changed. IBC entities may have activities worldwide, including in Cyprus. However, in order for an IBC entity to have activities locally, their Memorandum and Articles of Association should provide for that. Most of the IBC entities that were registered before the change of the law have already proceeded with the amendments in their Memorandum and Articles of Association.

The new provisions provide exemptions from tax of income related to Intellectual Property, specifically:

1. 80% of worldwide royalty income generated from Intellectual Property owned by Cypriot resident companies (net of any direct expenses) is exempt from income tax.

2. 80% of profit generated from the disposal of Intellectual Property owned by Cypriot resident companies (net of any direct expenses) is exempt from income tax.

3. There is no defense tax on dividends for non-Cypriot residents.

Any expenditure of a capital nature for the acquisition or development of IP is claimed as a tax deduction in the year in which it was incurred and the immediate four following years on a straight-line.

All the above exemptions are also available for IPs acquired or developed before January 2012.

We have been unable to trace any offices for the subject company in Cyprus. During our investigation we tried to contact company's correspondent M. PAPADAKIS & CO; however there was no response to our calls.

We believe that the subject is an International Business Company (IBC) and we assume that it utilizes staff from its correspondent M. PAPADAKIS & CO. Please note that this information was not confirmed with available sources.

Please note that the information included in the report was obtained from the Official Companies’ Registrar and through desk research.

CYPRUS COUNTRY DEVELOPMENT

For information concerning recent political, social and economic developments in Cyprus, follow the below link:

http://www.infocreditgroup.com/News/202/en/Cyprus-Country-Development-2014

Methodology Used For Report Preparation

Perform Searches in:

ü The Registrar of Companies and Official Receiver of the Republic of Cyprus.

ü In house databases for Detrimental Information:

- Bankruptcy and Dissolution procedures.

- Issuers of Bounced Cheques.

- Unpaid Bills.

ü Proprietary databases and global subscription sites.

ü Global and local media.

ü Internet social networks.

ü Relationship/Directorship Search through Local Database.

ü Other local databases as deemed appropriate.

Conduct Interviews with:

ü Official(s) / correspondent(s) of the company under review.

ü Supplier(s) or other associated entities of the company.

ü Other local resources with extensive knowledge of the market.

Analysis

ü Process and analyse all information gathered.

ü Perform a thorough quality check of the report prior to sending it to the client.

Contact Information
Name:	None at this stage
Attempts to contact an official were unsuccessful

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.59
UK Pound	1	Rs.101.09
Euro	1	Rs.83.99

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.