MIRA INFORM REPORT

Report Date :

01.07.2014

IDENTIFICATION DETAILS

Name :	NORDIC TIMBER AB
Registered Office :	Pernavas iela 30-6, Riga, Rigas region, LV-1009
Country :	Latvia
Financials (as on) :	31.12.2013
Date of Incorporation :	10.12.2008
Com. Reg. No.:	40103205328
Legal Form :	Ltd by Latvian law
Line of Business :	Sawmilling and planing of wood; Wholesale of wood, construction materials and sanitary equipment
No. of Employees :	1

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 :	Moderate
Payment Behaviour :	Slow
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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Latvia	B2	B2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

LATVIA - ECONOMIC OVERVIEW

Latvia is a small, open economy with exports contributing nearly a third of GDP. Due to its geographical location, transit services are highly-developed, along with timber and wood-processing, agriculture and food products, and manufacturing of machinery and electronics industries. Corruption continues to be an impediment to attracting foreign direct investment and Latvia's low birth rate and decreasing population are major challenges to its long-term economic vitality. Latvia's economy experienced GDP growth of more than 10% per year during 2006-07, but entered a severe recession in 2008 as a result of an unsustainable current account deficit and large debt exposure amid the softening world economy. Triggered by the collapse of the second largest bank, GDP plunged 18% in 2009. The economy has not returned to pre-crisis levels despite strong growth, especially in the export sector in 2011-12. The IMF, EU, and other international donors provided substantial financial assistance to Latvia as part of an agreement to defend the currency's peg to the euro in exchange for the government's commitment to stringent austerity measures. The IMF/EU program successfully concluded in December 2011. The government of Prime Minister Valdis DOMBROVSKIS remains committed to fiscal prudence and reducing the fiscal deficit. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises, including 99.8% ownership of the Latvian national airline. Latvia officially joined the World Trade Organization in February 1999 and the EU in May 2004. Latvia intends to join the euro zone in 2014.

Source : CIA

Identification

Full Name

:

Sabiedriba ar ierobezotu atbildibu Nordic Timber AB

IGK-number

:

143-032-102

Name in English

:

NORDIC TIMBER AB

Name in national language

:

Sabiedrība ar ierobežotu atbildību Nordic Timber AB

Office Address

:

Pernavas iela 30-6, Riga, Rigas region, LV-1009, Latvia

Legal Address

:

Pernavas iela 30-6, Riga, Rigas region, LV-1009, Latvia

Contacts

:

-

Phone

:

(+371) 28815926

There is no contact information of the subject company in official sources, Internet, other mass-media sources and information service.

SUMMARY

Legal Form : SIA (Ltd by Latvian law)

Incorporation : 2008

Staff : 1

Litigation events : none Remarks on payments : none

Sales :	1 390.00 LVL ( for 12 months, ended 31.12.2013 )
	0.00 LVL ( for 12 months, ended 31.12.2012 )

Incorporation

:

2008

Registration Data

Date of registration

:

10.12.2008

Registration number

:

40103205328

Registr. authority

:

Commercial Register (Latvia)

VAT number

:

LV40103205328

Registr. place

:

Latvia

Legal Form

:

SIA (Ltd by Latvian law)

since 10.12.2008

Share Capital

:

2 000 LVL (registered)

since n/a

Shareholders

:

-	IMO INVESTMENT COMPANY LLC (United States of America)				100.00 %
		reg. number	:	1000163472
		address	:	942 Windemere Dr. NW, Salem, OR 97304-2722, United States of America

Board / Executives

Executives

Board Member

:

Mr Penders, Karlis (Latvia)
	pers. code: 041087-11567

Authorised signature

:

Mr Penders, Karlis

Activities

:

-	2421	Wood Building Materials
		(NACE 2010: Sawmilling and planing of wood; impregnation of wood)

Sawmilling and planing of wood; Wholesale of wood, construction materials and sanitary equipment

Staff employed

:

1

( the data as of 31.03.2014 )

Staff History

:

-	1
	( the data as of 31.12.2012 )

Subsidiaries and Participation

:

n/a

Bankers

:

-	AS DNB Banka (Latvia)

Litigation

:

none

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

Remarks on payment

:

none

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

Business mortgages

:

none

Financial Elements

Period, months	12	12
Ended	31.12.2013	31.12.2012
Currency	LVL	LVL
===== BALANCE SHEET ====================
--- A S S E T S --------------------
NON-CURRENT ASSETS
- Intangible assets
- Fixed assets	18 110.00	18 887.00
- Investments in tangible assets
- Financial assets
- Other non-current assets
Non-current assets total	18 110.00	18 887.00
CURRENT ASSETS
- Stock	6 996.00	3 840.00
- Debtors	1 805.00	512.00
- Other receivables
- Short-term financial investments
- Cash	3.00	11.00
- Other current assets
Current assets total	8 804.00	4 363.00
Assets total	26 914.00	23 250.00
--- EQUITY AND LIABILITIES ---------
CAPITAL AND RESERVES
- Share capital	2 000.00	2 000.00
- Additional capital
- Other capital
- Reserve capital
- Retained earnings (Non-covered loss)	-21 961.00	-22 463.00
Capital and reserves total	-19 961.00	-20 463.00
Provisions
LONG-TERM LIABILITIES
- Loans and credits
- long-term amounts owed to banks
- Other long-term liabilities
Long-term liabilities total
SHORT-TERM LIABILITIES
- Loans and credits	45 981.00	42 797.00
- short-term amounts owed to banks
- Creditors	894.00	916.00
- trade debts	384.00	405.00
- accrued payroll
- tax liabilities
- other creditors
- advances received	510.00	511.00
- Dividends in arrears
- Accrued income, deferred charges
- Other short-term liabilities
Short-term liabilities total	46 875.00	43 713.00
Liabilities total	46 875.00	43 713.00
Equity and liabilities total	26 914.00	23 250.00
===== PROFIT AND LOSS ACCOUNT ==========
ORDINARY ACTIVITY INCOME AND CHARGES
Net sales	1 390.00	0.00
Cost of goods sold	778.00	789.00
Gross profit	612.00	-789.00
Distribution costs
Administrative and management costs	110.00	293.00
Profit on sales
OPERATING INCOME AND CHARGES
Interest receivable
Interest payable
Income from participating interests
Other operating income
Other operating charges	0.00	25.00
Operating profit
INVESTMENT INCOME AND CHARGES
Investment income less charges
Profit before taxation	502.00	-1 107.00
Income-tax and other similar payments
Profit (loss) from ordinary activity
Extraordinary income less charges
Net profit	502.00	-1 107.00
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	36.12	0.00
Profit before taxation / Net sales
Operating margin of profit, %
Operating profit / Net sales
Return on investment, %	-2.51	5.41
Profit before taxation / Equity
Current assets turnover	0.16	0.00
Net sales / Current assets
Working capital	-38 071.00	-39 350.00
Current assets - Short-term liabilities
Leverage	-0.74	-0.88
Equity / Total assets
Current ratio	0.19	0.10
Current assets / Short-term liabilities
Quick ratio	0.04	0.01
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	-2.35	-2.14
Total liabilities / Equity

FINAL COMMENTS

We called company numerous times, but nobody answered our calls. There is no more other contact information of the subject company in official sources, Internet, other mass-media sources and information service. According to official Commercial Register, subject company is active. If we get any additional information, we will add it to the report.

APPENDIX A

Financial Statements

Period, months	12	12
Ended	31.12.2013	31.12.2012
Currency	LVL	LVL
PROFIT AND LOSS ACCOUNT
010 Net turnover	1 390.00	0.00
020 Cost of sales	-778.00	-789.00
025 Change in stock, finished and semi-finished goods
030 Gross profit or loss	612.00	-789.00
035 Facilities produced at the expense of own funds for internal use
040 Distribution costs
050 Administrative expenses	-110.00	-293.00
060 Other operating income
062 Economical expenses
064 Gross profit or loss
065 Administrative charges
067 Depreciation of fixed assets
068 Other operating expenses	0.00	-25.00
070 Income from participating interests
080 Income from securities and loans forming long-term
investments
090 Other interest receivable and similar income
100 Value adjustments in respect of financial assets and
of investments held as current assets
110 Interest payable and similar charges
120 Profit or loss on ordinary activities before taxation	502.00	-1 107.00
130 Extraordinary income
140 Extraordinary charges
150 Extraordinary profit or loss before taxation
151 Profit or loss before taxation	502.00	-1 107.00
160 Income-tax for fiscal period
170 Other taxes
175 Deferred Income-tax for fiscal period
180 Profit or loss for fiscal period	502.00	-1 107.00
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
070 Plant and machinery	18 000.00	18 000.00
080 Other fixtures and fittings, tools and equipment	110.00	887.00
090 Payments on account and tangible assets in cours
of construction
091 Prepayment for tangible assets
100 Total tangible assets	18 110.00	18 887.00
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	18 110.00	18 887.00
CURRENT ASSETS
Stock
210 Raw materials and consumables
220 Work in progress
230 Finished goods and goods for resale
240 Orders outstanding
250 Payments on account	6 996.00	3 840.00
260 Working and productive animals
270 Total stock	6 996.00	3 840.00
275 LONG-TERM INVESTMENT ASSETS WITHHELD
FOR SALE
Debtors
280 Trade debtors	90.00	90.00
290 Amounts owed by subsidiaries
300 Amounts owed by related companies
310 Other debts	1 715.00	422.00
320 Subscribed capital called but not paid
330 Short-terms loans to the members of the company
and the management
340 Prepayments and accrued
341 Accrued income
343 Deferred tax liabilities
350 Total debtors	1 805.00	512.00
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)	3.00	11.00
410 CURRENT ASSETS TOTAL	8 804.00	4 363.00
420 BALANCE	26 914.00	23 250.00
L I A B I L I T I E S
CAPITAL AND RESERVES
430 Share capital	2 000.00	2 000.00
440 Share premium account
450 Long-term assets revaluation reserve
Reserves
452 Financial instruments revaluation reserve
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	-22 463.00	-21 356.00
520 Profit or loss for the current year	502.00	-1 107.00
505 Equity, total
525 Consolidation margin
530 CAPITAL AND RESERVES TOTAL	-19 961.00	-20 463.00
PROVISIONS
540 Provisions for pensions and similar obligations
550 Provisions for taxation
560 Other provisions
570 PROVISIONS TOTAL
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	45 981.00	42 797.00
680 Advanced payments received	510.00	511.00
690 Trade debts	384.00	405.00
700 Bills of exchange payable
710 Amounts owed to subsidiaries
720 Amounts owed to related companies
730 Taxes and social security payments
740 Other creditors
750 Deferred income
760 Fiscal period dividends
770 Non-paid dividends of previous years
771 Accrued charges
773 Deferred tax liabilities
774 Obligations for state funds exploitation
775 Alienated financial instruments
995 Depreciation
780 Total short-term liabilities	46 875.00	43 713.00
790 CREDITORS TOTAL	46 875.00	43 713.00
800 BALANCE	26 914.00	23 250.00
990 Employees number

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.09
UK Pound	1	Rs.102.33
Euro	1	Rs.82.01

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NNA

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.