MIRA INFORM REPORT

Report No. :	314936
Report Date :	04.04.2015

IDENTIFICATION DETAILS

Name :	GKS TRADING CO. LIMITED
Registered Office :	10 Evagora Pallikaridi, Mesa Geitonia, Limassol
Country :	Cyprus
Financials (as on) :	31.12.2013
Date of Incorporation :	19.02.1976
Com. Reg. No.:	C7780
Legal Form :	Limited Company
Line of Business :	Subject is engaged in the wholesale and retail trade of paper and merchandising.
No. of Employee :	10

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 :	Slow but correct
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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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 have traditionally been the most important sectors. Cyprus has been a member of the European Union (EU) since May 2004 and adopted the euro as its national currency in January 2008. During the first five years of EU membership, the Cyprus economy grew at an average rate of about 4%, with unemployment between 2004 and 2008 averaging about 3%. An overextended banking sector with excessive exposure to Greek debt resulted in a contraction in economic growth. Two of Cyprus' biggest banks were among the largest holders of Greek bonds in Europe and had a substantial presence in Greece through bank branches and subsidiaries. Following numerous downgrades of its credit rating, Cyprus lost access to international capital markets in May 2011. The economy contracted by an accumulated 8.2% between 2009 and 2013 and is not expected to return to positive growth before 2015. Unemployment is currently over 17% and expected to reach 19% in 2014. In July 2012, Cyprus became the fifth eurozone government to request an economic bailout program from the European Commission, European Central Bank and the International Monetary Fund - known collectively as the "Troika". Shortly after the election of President Nicos ANASTASIADES in February 2013, Cyprus faced an economic crisis and agreed with the Troika to a $13 billion bailout that included losses on uninsured bank deposits. The bailout triggered a two-week bank closure and the imposition of capital controls, some of which remained in place through 2014. Cyprus' two largest banks merged and the combined entity was recapitalized through conversion of some large bank deposits to shares and imposition of losses on some bank bondholders. The Troika conditioned the bailout on progress in financial and structural reforms and privatization of state-owned enterprises. Cyprus has downsized and restructured its banking sector significantly. Three positive reviews by the Troika since May 2013 indicate that Cyprus’ bailout program is on track with a fourth review scheduled in May 2014. In October 2013, Cyprus completed preliminary appraisal of hydrocarbon deposits in its territorial waters, which revealed less than anticipated natural gas reserves. Additional exploration drilling is likely to continue in 2014-2015.

Source : CIA

Basic Information

Registered Name	GKS TRADING CO. LIMITED
English Name	GKS TRADING CO. LIMITED
Registered Address	10 Evagora Pallikaridi, Mesa Geitonia, Limassol, Cyprus
Headquarters:	8-10 Evagora Pallikaridi, 1OS OR, Mesa Geitonia, 4000, PoBox 51616, Limassol, Cyprus
Telephone	+35725755250
E-mail	g.k.s@cytanet.com.cy
Web Site	Non retrievable
Legal Type	Limited Company
Registration No	C7780	Registration Date	19/02/1976
Start Date	19/02/1976	Years of Operation:	39
Last annual report	05/10/2012	Latest Annual Account Date	31/12/2013
Last return	27/08/2014	Tax Reg No:	VAT:CY10007780S
CINFO ID:	CYC11569791
Status:	Registered and operational

Summary

Employees	April 2015	December 2014	December 2013
	Company	Company	Company
Total Number	10	10	10
Financial Summary	December 2013	December 2012	December 2011
	EUR	EUR	EUR
Revenue Sales
Pre Tax Profit
Working Capital	2,906,968.00	2,828,107.00	2,639,398.00
Total Equity	3,176,398.00	3,117,730.00	2,922,171.00
Long Term Debts	11,424.00	9,138.00	9,138.00
Trend	-	-	-
Additional Info:
Correspondent: ANTONIS IOANNOU ,4A, Avlonas, Apt. 101, Lakatameia, 2324, Nicosia --- Tel. 99417395

Business History

Date	Event Name	Old Value	New Value
01/01/2008	Authorized Capital Changed	500000.00 CYP	855000.00 EUR
01/01/2008	Paid Up Capital Changed	500000.00 CYP	855000.00 EUR
01/01/2008	Nominal Values of Shares Changed	1.00 CYP	1.71 EUR
26/06/2001	Authorized Capital Increased	100000.00 CYP	500000.00 CYP
29/10/1991	Authorized Capital Increased	50000.00 CYP	100000.00 CYP
04/05/1988	Authorized Capital Increased	30000.00 CYP	50000.00 CYP
30/03/1982	Authorized Capital Increased	10000.00 CYP	30000.00 CYP

Previous Locations

Registered	From:	To:
11, Platonos, Limassol, , Cyprus,	19/02/1976	06/03/1986

Capital

Authorized Capital	855,000.00	EUR	Issued Capital	855,000.00	EUR
Nominal No Of Shares	500,000.00		Issued No Of Shares	500,000.00
Nominal value	1.71	EUR	Paid Up	855,000.00	EUR

Corporate Structure

Directors	Position	Acts As	ID	Occupation	Age	Appointed	Other dir.
SOFOKLEOUS G KYRIACOS	Director / Secretary		648942(ID)	Businessman	50	10/08/1992	No
24 Karpenisiou, Mesa Geitonia, 4003, Limassol, Cyprus
SOFOKLEOUS GEORGIOS	Director		110658(ID)	Businessman	77	19/02/1976	No
10 Evagora Pallikaridi, Mesa Geitonia, 4000, Limassol, Cyprus

Secretary	Position	Acts As	ID	Occupation	Age	Appointed	Other dir.
SOFOKLEOUS G KYRIACOS	Director / Secretary		648942(ID)	Businessman	50	10/08/1992	No
24 Karpenisiou, Mesa Geitonia, 4003, Limassol, Cyprus

Shareholders

ID / Reg. No.

Acts As

Nationality

Shares

%

Shares Breakdown

Class

Type

SOFOKLEOUS G KYRIACOS

648942(ID)

CYPRIOT

500000

100

-

-

-

10 Evagora Pallikaridi, Mesa Geitonia, 4000, Limassol, Cyprus

Operation

Activity Code		Description
NACE 2.1	4690	Non-specialised wholesale trade - This class includes: - wholesale of a variety of goods without any particular specialisation - -

Line of Business

The subject company is involved in the wholesale (95%) and retail (5%) trade of paper and merchandising.

Subject has 6 vehicles; 5 vans and 1 truck which are used in the running of the business.

Export to		Percentage
Comments	Non retrievable

Import from		Percentage
Comments	Major Suppliers: STORAENSO -EUROPE-PAPER LECTA-EUROPE-PAPER FAVINI-ITALY-PAPER APP-ASIA-PAPER

Import Terms		Percentage
Bills of exchange		10%
Pro forma		10%
Open account	90 Days Credit Facility	80%

Market Territory
Local Presence:	100%
Sales
50% Cash 50% Open Account - 30 Days Credit Facility

Premises
		Type	Headquarters
Address:	8-10 Evagora Pallikaridi, 1OS OR, Mesa Geitonia, 4000, PoBox 51616, Limassol, Cyprus

Charges

No	Date registered	Date prepared	Type	Description/No	Amount	Sequence	Beneficiary
1	30/09/2014	24/09/2014	Mortgage	Y1079/14	150,000.00 EUR	-	Bank of Cyprus Public Company Limited

	Total Number	Total Amount (EUR)
Mortgage	1	150,000.00
TOTAL CHARGES	1	150,000.00

Charges History

No	Date registered	Date prepared	Date End	Type	Description/No	Amount	Sequence	Beneficiary
1	29/01/1991	21/01/1991	27/11/2002	Mortgage	Y372/91	80,000.00 CYP	-	Bank of Cyprus Finance Corporation Limited
2	14/06/1982	07/06/1982	17/11/1986	Charge on the Debit Debenture		20,000.00 CYP	-	Bank of Cyprus Public Company Limited

Negatives

A check against our revealed that no negative payment incidents against the subject company, such as unpaid bills or bankruptcies exist.

Financial Statement

Corporate financial statement

Balance Sheet

December 2013

December 2012

December 2011

EUR

EUR

EUR

FIXED ASSETS
Property, plant and equipment	280,854	298,761	291,911
Total fixed assets	280,854	298,761	291,911
CURRENT ASSETS
Inventories	228,817	265,889	237,225
Trade and other receivables	167,814	190,381	217,359
Available-for-sale financial assets	27,870	1,128	857
Tax Refundable			3,884
Cash and cash equivalents	2,546,442	2,533,159	2,853,132
Total current assets	2,970,943	2,990,557	3,312,457
Total assets	3,251,797	3,289,318	3,604,368
CAPITAL AND RESERVES
Share capital	855,000	855,000	855,000
Retained earnings	2,321,398	2,262,730	2,067,171
Total equity	3,176,398	3,117,730	2,922,171
LONG-TERM LIABILITIES
Deferred income tax liabilities	11,424	9,138	9,138
Total long-term liabilities	11,424	9,138	9,138
CURRENT LIABILITIES
Trade and other payables	53,898	159,567	673,059
Current income tax liabilities	10,031	889
Borrowings	46	1,994
Total Current Liabilities	63,975	162,450	673,059
Total liabilities	75,399	171,588	682,197
Total equity and liabilities	3,251,797	3,289,318	3,604,368

Profit/Loss Account

December 2013

December 2012

December 2011

EUR

EUR

EUR

Gross profit	0
OPERATING PROFIT/LOSS	0
Profit/Loss before income tax	0
Profit/Loss for the year	0

Key Ratios

December 2013

December 2012

December 2011

PROFITABILITY RATIOS
Return on assets (ROA)		0
LIQUIDITY RATIOS
Current Ratio	46.44	18.41	4.92

Please note the following significant changes in the financial statements of 2013 compared to the audited financial statements of 2012:

1.     Current ratio increased from 18.4 to 46.43. Acceptable ratio varies from industry to industry. For most industries a ration above 1.5 is considered acceptable.

2.     Property, plant and equipment decreased by 5.99%.

3.     Inventory decreased by 13.94%

4.     Trade and Other Receivables decreased by 11.85% whereas Trade and Other Payables increase by 66.22% in 2013.

5.     Available for sale financial assets increased by 2370%

6.     Retained earnings decreased by 84.43%.

7.     Borrowings decreased by 97.69%.

Additional information

Methodology Used For Report Preparation

-       Perform Searches in:

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

·         In house databases for Detrimental Information for up to 7 years:

·         Bankruptcy and Dissolution procedures.

·         Unpaid Bills including returned cheques.

·         Proprietary databases and global subscription sites.

·         Global and local media.

·         Internet social networks.

·         Relationship/Directorship Search through Local Database.

·         Other local databases as deemed appropriate.

-       Conduct Interviews with:

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

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

·         Other local resources with extensive knowledge of the market.

-       Analysis

·         Process and analyse all information gathered.

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

Contact Information
Name:	Mr. Kyriakos Sofocleous
Position:	Company
Title:	Director
Confirm general details

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.59
UK Pound	1	Rs.92.46
Euro	1	Rs.67.51

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ASH

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%)

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