MIRA INFORM REPORT

Report Date :

21.11.2014

IDENTIFICATION DETAILS

Name :	"UNISEL CO" LTD.
Registered Office :	Udens iela 12 - 116, Riga, Rigas region, LV-1007
Country :	Latvia
Financials (as on) :	31.12.2013
Date of Incorporation :	12.03.2004
Com. Reg. No.:	40003254990
Legal Form :	SIA (Ltd by Latvian law)
Line of Business :	Wholesale of coffee, tea, cocoa and spices
No of Employees :	10

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

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Latvia	B2	B1

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

Name in English

:

"UNISEL CO" LTD.

Name in national language

:

Sabiedriba ar ierobe otu atbildibu "UNISEL CO"

Office Address

:

Udens street 12 - 116, Riga, Rigas region, LV-1007, Latvia

Legal Address

:

Udens iela 12 - 116, Riga, Rigas region, LV-1007, Latvia

Contacts

:

-	Phone	:	(+371) 67600656, 67600657, 67600659
-	Fax	:	(+371) 67618833
-	E-mail	:	info@unisel.lv, vladimirs.saratovs@unisel.lv
-	WWW	:	www.uniselco.com, www.unisel.lv

SUmMARY

Legal Form : SIA (Ltd by Latvian law)

Incorporation : 1995

Staff : 10

Litigation events : yes Remarks on payments : none

Sales :	2 137 371.00 LVL ( for 12 months, ended 31.12.2013 )
	3 535 091.00 LVL ( for 12 months, ended 31.12.2012 )

Incorporation

:

1995

Registration Data

Date of registration

:

12.03.2004

Registration number

:

40003254990

Registr. authority

:

Commercial Register (Latvia)

VAT number

:

LV40003254990

Registr. authority

:

Tax Board (Latvia)

Legal Form

:

SIA (Ltd by Latvian law)

since 05.06.1995

Share Capital

:

100 000 LVL (registered)

since 26.11.2009

Shareholders

:

-	Singh Samir Shekhar				75.00 %
		reg. number	:	090268-14450
		address	:	Dzelzavas iela 76/3-57, Riga, Rigas region, Latvia
-	Mr Sakhuja Ritesh Kumar				25.00 %
		reg. number	:	030573-14654
		address	:	Augusta Deglava iela 57-25, Latvia

Board / Executives

Executives

Board Chairman

:

Mr Singh Samir Shekhar (India)
	pers. code: 090268-14450

Board Member

:

Mr Sakhuja Ritesh Kumar (India)
	pers. code: 030573-14654

Authorised signature

:

Mr Sakhuja Ritesh Kumar

Mr Singh Samir Shekhar

Changes in Registration Data

- 26.11.2009

:

shareholders

- 02.09.2008

:

shareholders

- 25.10.2007

:

managers

- 18.07.2005

:

managers

- 25.10.2004

:

managers

- 12.03.2004

:

shareholders

- 12.03.2004

:

managers

- 23.02.2001

:

shareholders

- 22.12.2000

:

managers

- 05.07.2000

:

shareholders

- 29.01.1999

:

shareholders

- 09.09.1998

:

shareholders

- 25.11.1997

:

managers

- 31.01.1997

:

shareholders

- 24.01.1997

:

shareholders

Activities

:

-	5149	Coffee & Tea
		(5137 / NACE_1.1: Wholesale of coffee, tea, cocoa and spices)
		(4637 / NACE_2: Wholesale of coffee, tea, cocoa and spices)

wholesale of coffee and tea

Staff employed

:

10

( the data as of 30.06.2014 )

Staff History

:

-	10
	( the data as of 31.12.2012 )
-	9
	( the data as of 31.12.2011 )
-	9
	( the data as of 11.05.2011 )
-	8
	( the data as of 31.12.2010 )
-	6
	( the data as of 2008 )
-	5
	( the data as of 2007 )
-	8
	( the data as of 2006 )

Export

- 19.11.2014

:

Commonwealth of Indep. States
50% of turnover

:

Commonwealth of Indep. States
2010 - above 60% of turnover

Import

- 19.11.2014

:

India, Colombia
50% of turnover

:

India, Colombia

Facilities

Real estate

:

own:
-	Premises - Office
	size/amnt	:	160.00 m2
	address	:	Udens iela 12 - 116, Riga, Rigas region, LV-1007, Latvia

Subsidiaries and Participation

:

none

Bankers

:

-	SEB banka (Latvia)
-	SWEDBANKA (Latvia)
-	TRASTA KOMERCBANKA (Latvia)

Clients

:

Average: 20 CIS region countries.

Suppliers

:

Average: 5 General: India, Columbia, Poland

Litigation

:

yes

There are no bankruptcy/insolvency listed in the subject name in the official sources. The company has been involved as a co-defendant into several litigations (the last one was dated with 18.12.2008) by contesting the rights for brand ownership/distribution.

Remarks on payment

:

none

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

Business mortgages

- 28.06.2012

:

Commercial pledge
	pledgee	:	TRASTA KOMERCBANKA (Latvia) reg. number: 40003029667 address: Miesnieku iela 9, Riga, Rigas region, LV-1050, Latvia

- 15.04.2010

:

Commercial pledge
	pledgee	:	NORVIK BANKA, AS (Latvia)

( the data as of 15.04.2010, cancelled since 20.12.2011 )

Financial Elements

By the words of Mr. Sakhuja Ritesh Kumar the turnover in comparison with 2013 in 2014 increased by 25-30%.

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	22 291.00	10 320.00
- Fixed assets	141 964.00	157 136.00
- Investments in tangible assets
- Financial assets
- Other non-current assets
Non-current assets total	164 255.00	167 456.00
CURRENT ASSETS
- Stock	492 051.00	725 673.00
- Debtors	261 629.00	173 571.00
- Other receivables
- Short-term financial investments
- Cash	30 068.00	2 800.00
- Other current assets
Current assets total	783 748.00	902 044.00
Assets total	948 003.00	1 069 500.00
--- EQUITY AND LIABILITIES ---------
CAPITAL AND RESERVES
- Share capital	100 000.00	100 000.00
- Additional capital
- Other capital
- Reserve capital
- Retained earnings (Non-covered loss)	139 884.00	121 055.00
Capital and reserves total	239 884.00	221 055.00
Provisions	3 482.00	5 026.00
LONG-TERM LIABILITIES
- Loans and credits	92 076.00	116 524.00
- long-term amounts owed to banks	92 076.00	115 892.00
- Other long-term liabilities	5 849.00	5 964.00
Long-term liabilities total	97 925.00	122 488.00
SHORT-TERM LIABILITIES
- Loans and credits	324 647.00	420 467.00
- short-term amounts owed to banks	304 821.00	382 621.00
- Creditors	280 131.00	296 598.00
- trade debts	244 949.00	230 470.00
- accrued payroll
- tax liabilities	3 910.00	2 558.00
- other creditors	0.00	1 335.00
- advances received	31 272.00	62 235.00
- Dividends in arrears
- Accrued income, deferred charges	1 934.00	3 866.00
- Other short-term liabilities
Short-term liabilities total	606 712.00	720 931.00
Liabilities total	704 637.00	843 419.00
Equity and liabilities total	948 003.00	1 069 500.00
===== PROFIT AND LOSS ACCOUNT ==========
ORDINARY ACTIVITY INCOME AND CHARGES
Net sales	2 137 371.00	3 535 091.00
Cost of goods sold	1 944 407.00	3 195 143.00
Gross profit	192 964.00	339 948.00
Distribution costs	53 859.00	153 244.00
Administrative and management costs	105 307.00	102 923.00
Profit on sales
OPERATING INCOME AND CHARGES
Interest receivable	3 392.00	20 554.00
Interest payable	32 410.00	49 740.00
Income from participating interests
Other operating income	24 349.00	919.00
Other operating charges	6 653.00	17 488.00
Operating profit
INVESTMENT INCOME AND CHARGES
Investment income less charges
Profit before taxation	22 476.00	38 026.00
Income-tax and other similar payments	3 647.00	7 447.00
Profit (loss) from ordinary activity
Extraordinary income less charges
Net profit	18 829.00	30 579.00
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	1.05	1.08
Profit before taxation / Net sales
Operating margin of profit, %
Operating profit / Net sales
Return on investment, %	9.37	17.20
Profit before taxation / Equity
Current assets turnover	2.73	3.92
Net sales / Current assets
Working capital	177 036.00	181 113.00
Current assets - Short-term liabilities
Leverage	0.25	0.21
Equity / Total assets
Current ratio	1.29	1.25
Current assets / Short-term liabilities
Quick ratio	0.48	0.24
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	2.94	3.82
Total liabilities / Equity

Publications

- 0001

:

Subject

:

About

From company's web-site: At present, Unisel Co is one of the largest suppliers of instant coffee products from different continents to the markets of the Baltic and CIS countries. The company headquarter is located in Riga, Latvia. The history of Unisel Co started in 1995, with supplies of the favoured brands of coffee from India. In 1999 the assortment was extended considerably by supplementing the range of goods from the other continents. In 2002 we took a decision to create our own brand - Indian Gold - and to focus on its development. Now this brand has become recognised and popular among a wide circle of people who prefer high-quality instant coffee. By 2003 we already maintained stable supplies of our products to Russia, Ukraine, Belarus and Kazakhstan. By 2004 we also had stable positions in the markets of Georgia and Moldova. In 2006 we launched a new brand of Colombian coffeeCafemania. As is popularly known, Colombian coffee made of selected Colombian Arabica is one of the best in the world its quality is guaranteed by the National Federation of Coffee Growers. Only genuine Colombian coffee picked and packed in Colombia bears the special quality mark - Cafe de Colombia.

FINAL COMMENTS

The contact person Mr. Sakhuja Ritesh Kumar provided us with additional information. It might be that we will be able to get the interim financial statements for 2014. If we get them we will up-date the report.

Registration History

- 05.06.1995

:

Registration number	:	000325499
Registr. authority	:	State Register (Latvia)

( the data as of 05.06.1995, cancelled since 12.03.2004 )

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	2 137 371.00	3 535 091.00
020 Cost of sales	-1 944 407.00	-3 195 143.00
025 Change in stock, finished and semi-finished goods
030 Gross profit or loss	192 964.00	339 948.00
035 Facilities produced at the expense of own funds for internal use
040 Distribution costs	-53 859.00	-153 244.00
050 Administrative expenses	-105 307.00	-102 923.00
060 Other operating income	24 349.00	919.00
062 Economical expenses
064 Gross profit or loss
065 Administrative charges
067 Depreciation of fixed assets
068 Other operating expenses	-6 653.00	-17 488.00
070 Income from participating interests
080 Income from securities and loans forming long-term
investments
090 Other interest receivable and similar income	3 392.00	20 554.00
100 Value adjustments in respect of financial assets and
of investments held as current assets
110 Interest payable and similar charges	-32 410.00	-49 740.00
120 Profit or loss on ordinary activities before taxation	22 476.00	38 026.00
130 Extraordinary income
140 Extraordinary charges
150 Extraordinary profit or loss before taxation
151 Profit or loss before taxation	22 476.00	38 026.00
160 Income-tax for fiscal period	-3 436.00	-7 175.00
170 Other taxes	-326.00	-342.00
175 Deferred Income-tax for fiscal period	115.00	70.00
180 Profit or loss for fiscal period	18 829.00	30 579.00
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.	22 291.00	10 320.00
021 Other intangible assets
030 Goodwill
040 Payments on account for intangible assets
050 Total intangible assets	22 291.00	10 320.00
Tangible assets
060 Real estate	126 873.00	136 695.00
061 Long-term investments in leased tangible assets
070 Plant and machinery	9 015.00	14 858.00
080 Other fixtures and fittings, tools and equipment	6 076.00	5 583.00
090 Payments on account and tangible assets in cours
of construction
091 Prepayment for tangible assets
100 Total tangible assets	141 964.00	157 136.00
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	164 255.00	167 456.00
CURRENT ASSETS
Stock
210 Raw materials and consumables	18 735.00	49 314.00
220 Work in progress	26 863.00	40 475.00
230 Finished goods and goods for resale	420 831.00	562 966.00
240 Orders outstanding
250 Payments on account	25 622.00	72 918.00
260 Working and productive animals
270 Total stock	492 051.00	725 673.00
275 LONG-TERM INVESTMENT ASSETS WITHHELD
FOR SALE
Debtors
280 Trade debtors	187 392.00	110 458.00
290 Amounts owed by subsidiaries
300 Amounts owed by related companies
310 Other debts	8 583.00	10 501.00
320 Subscribed capital called but not paid
330 Short-terms loans to the members of the company
and the management
335 Other loans
340 Prepayments and accrued	65 654.00	52 612.00
341 Accrued income
343 Deferred tax liabilities
350 Total debtors	261 629.00	173 571.00
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)	30 068.00	2 800.00
410 CURRENT ASSETS TOTAL	783 748.00	902 044.00
420 BALANCE	948 003.00	1 069 500.00
L I A B I L I T I E S
CAPITAL AND RESERVES
430 Share capital	100 000.00	100 000.00
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	121 055.00	90 476.00
520 Profit or loss for the current year	18 829.00	30 579.00
505 Equity, total
525 Consolidation margin
530 CAPITAL AND RESERVES TOTAL	239 884.00	221 055.00
PROVISIONS
540 Provisions for pensions and similar obligations
550 Provisions for taxation
560 Other provisions	3 482.00	5 026.00
561 Provisions for vacations
570 PROVISIONS TOTAL	3 482.00	5 026.00
CREDITORS
Long-term liabilities
580 Debenture loans
590 Convertible loans
600 Amounts owed to credit institutions	92 076.00	115 892.00
601 Other loans	0.00	632.00
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	5 849.00	5 964.00
635 Accrued liabilities
636 Leasing liabilities
640 Total long-term liabilities	97 925.00	122 488.00
Short-term liabilities
650 Debenture loans
660 Convertible loans
670 Amounts owed to credit institutions	304 821.00	382 621.00
671 Other loans	19 826.00	37 846.00
680 Advanced payments received	31 272.00	62 235.00
690 Trade debts	244 949.00	230 470.00
700 Bills of exchange payable
710 Amounts owed to subsidiaries
720 Amounts owed to related companies
730 Taxes and social security payments	3 910.00	2 558.00
740 Other creditors	0.00	1 335.00
750 Deferred income
760 Fiscal period dividends
770 Non-paid dividends of previous years
771 Accrued charges	1 934.00	3 866.00
773 Deferred tax liabilities
774 Obligations for state funds exploitation
775 Alienated financial instruments
776 Leasing obligations
995 Depreciation
780 Total short-term liabilities	606 712.00	720 931.00
790 CREDITORS TOTAL	704 637.00	843 419.00
800 BALANCE	948 003.00	1 069 500.00
990 Employees number

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.10
UK Pound	1	Rs.97.32
Euro	1	Rs.77.91

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	SNT

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.