Identification Full Name:"SAMPLE COMPANY" SIA IGK-number:042-427-737 Full Name in national language:"SAMPLE COMPANY" SIA Office address:Sample line 40, Sampleburg, Sample area, 000000, Sampland Legal Address:Sample line 43, Sampleburg, Sample area, 000000, Sampland Contacts: - E-mail:noname@sample.com - Fax :(+371) 7000001 - Phone :(+371) 7000002 - WWW :http:// www.sample.com ________________________________________ S U M M A R Y Legal Form : SIA (Ltd by Latvian law) Incorporation : 2003 Staff : 2 Litigation events : n/a Remarks on payments : n/a Sales : 656 537.00 LVL ( for 12 months, ended 31.12.2007 ) 482 188.00 LVL ( for 12 months, ended 31.12.2006 ) CREDIT OPINION IGK Credit Rating:[C] Risk above normal. Short term only. Credit Limit:10 000 EUR Range:R4 ________________________________________ Incorporation:1992 Registration Data Date of registration: 01.02.1992 Registration number: 4000000008 Registr. authority: Commercial Register (Riga, Rigas region, Latvia) VAT number: LV4000000008 Registr. place: Latvia Legal Form: SIA (Ltd by Latvian law) since n/a Share Capital: 2 000 LVL (registered) since n/a Shareholders :- Company (Samplanda) 90.00 % share's book value:1 800 LVL reg. number:4000000008 address :Sample line 40, Sampleburg, Sample area, 000000, Sampland - Surname, Name (Samplanda) (Latvia) 10.00 % share's book value: 200 LVL reg. number: 000000-00000 address: Sample line 44, Sampleburg, Sample area, 000000, Sampland Board / Executives Executives Chairman of the board: Surname, Name (Samplanda) pers. code: 800000-00002 address: Sample line 40, Sampleburg, Sample area, 000000, Sampland Member of the board : Surname, Name (Samplanda) pers. code: 800000-00006 address: Sample line 41, Sampleburg, Sample area, 000000, Sampland Authorised signature: Surname, Name Surname, Name Changes in Registration Data - 04.02.2008 : shareholders - 22.11.2007 : managers, shareholders Activities : - 4789 Cargo Load/Unload Svcs (NACE 6340: Activities of other transport agencies) - 5013 Automotive parts and supplies (NACE 5030: Sale of motor vehicle parts and accessories) Staff employed : 2 Staff History : - 2 ( the data as of 31.12.2007 ) - 2 ( the data as of 31.12.2006 ) Export : Lithuania, Estonia, Italy, Germany Import : Germany, Belgium, Poland, Estonia, Lithuania Facilities Real estate: rent: - Premises - Office and warehouse size/amnt: 300.00 sq.m [E] address: Ventspils street 50, Riga, Rigas region, LV-1002, Latvia Branches: none Subsidiaries and Participation: none Bankers: Samplebank (Samplanda) bank code: HABALV22 account(s): 000000000000 Clients : - ASD Ltd (Sampland), QWERTY Ltd (Sampland), UIOP Ltd (Sampland) Average number of customers - 50-60 Suppliers: SOMETHING & Co (Sampland) Average number of suppliers - 5. Other associated Companies: - Sample Transport (Ëàòâèÿ) Litigation: No bankruptcy/insolvency records on the subject company have been found in the official sources. Remarks on payment: No current records on defaulted payments/unpaid invoices are reported by local debt collection companies. Business mortgages: none Financial Elements Period, months 12 12 Ended 31.12.2007 31.12.2006 Currency LVL LVL Non-current assets 19 018.00 17 915.00 incl: - Fixed assets 18 872.00 17 915.00 - Financial assets Current assets 208 677.00 198 878.00 incl: - Stock 165 977.00 151 510.00 - Debtors 13 232.00 26 701.00 - Cash 29 468.00 20 667.00 ASSETS TOTAL 227 695.00 216 793.00 Equity 48 275.00 3 946.00 incl: - Share capital 2 000.00 2 000.00 Liabilities Total 179 420.00 212 847.00 incl: - Long-term liabilities 6 268.00 10 682.00 - Short-term liabilities173 152.00 202 165.00 EQUITY AND LIABILITIES TOTAL 227 695.00 216 793.00 Net sales 656 537.00 482 188.00 Cost of goods sold 531 132.00 393 080.00 Operating profit Profit before taxation 52 345.00 26 063.00 Net profit 44 329.00 23 928.00 - - - - - - - KEY RATIOS - - - - - - - Return on sales, % 7.97 5.41 Profit before taxation / Net sales Operating margin of profit, % Operating profit / Net sales Return on investment, % 108.43 660.49 Profit before taxation / Equity Current assets turnover 3.15 2.42 Net sales / Current assets Working capital 35 525.00 -3 287.00 Current assets - Short-term liabilities Leverage 0.21 0.02 Equity / Total assets Current ratio 1.21 0.98 Current assets / Short-term liabilities Quick ratio 0.25 0.23 (Current assets - Stock) / Short-term liabilities Debt-to-equity ratio 3.72 53.94 Total liabilities / Equity FINAL COMMENTS General information in this report was confirmed by Surname, Name by phone. Company’s management opinion regarding market current situation: Business section: loading/unloading services 1. General view to the situation in the Sector: - The situation has considerably got worse; 2. Changes in payment behaviour of clients. Average true payment terms. - the payments have become slower, the delay in payments make from 2 weeks up to 1 months; 3. What percentage of companies in the sector became insolvent (by opinion of interviewed person). - at the end of last year 2 clients have become insolvent. THE RESULT OF THE OPINION POLL: 1. - 9% of polled companies evaluate common state of business in the sector as remaining stable (generally, those the respondents whose clients are big stable companies). - 91% of polled companies evaluate common state of business in the sector as getting much worse. Decreasing sales are noted by all respondents. 2. - 27 % of polled companies confirm that they do not see any sensible change in payment behaviour of their clients. - 73 % of polled companies fix slowdown in client's payments. Average delay in payment is 2 - 4 weeks from the due date. 3. - 18% of polled companies do not see factual bankrupts among their clients. - 28 % of polled companies state that some of their clients have become insolvent. - Most respondents are of opinion that from 10% to 30% of companies operating in the sector have become insolvent. ________________________________________ COUNTRY REVIEW Latvia Compared to the corresponding period of previous year, gross domestic product (GDP) in 1st half of 2008 has increased by 1.6% in Latvia, according to the Central Stat istical Bureau. Compared to 2nd quarter of 2007, in the 2nd quarter of 2008 GDP has increased by 0.1%. The increase in GDP was due to the rises in the following sectors: transport and communications (share in GDP structure – 11.2%) – by 2.0%, construction (9.0%) – by 5.7%. But in manufacturing (12.8%), trade (17.0%) and agriculture and forestry (3.0%) there was a decrease of 4.6%, 5.9% and 0.5%, r espectively. Non-financial investment (long-term investment in intangible fixed assets and inves tment in tangible fixed assets) in Latvia in the 1st half of 2008 was 1223.3 mln la ts, a decrease of 3% on the 1st half of 2007, according to the Central Statistical Bureau. Latvian inflation continues to be a major problem. Compared to July 2008, the avera ge consumer price level in Latvia in August 2008 decreased by 0.4%. The average prices of goods decreased by 0.9%, but prices of services increased by 0.7%. Price decrease of vegetables and fuel, as well as price increase of clothing, catering services and housing rent had the greatest impact on consumer price changes in August. Compared to August of previous year, consumer prices have increa sed by 15.7% (annual inflation), of which prices of goods increased by 15.3%, but o f services – by 16.8%. Compared to 12 months of previous year, the average consumer price level of 12 months has grown by 15.6%. Latvian retail sales were down again in July, both on June 2008 and on July 2007. C ompared to July 2007, the seasonally and working day adjusted constant price index was down by 8.5%. The largest volume decrease was in non-food products group which were down by 9.4%. There was a slightly smaller decrease in food products, wh ich were down by 6%. The only increases were in mail order business – up by 7.2% an d in retail trade in pharmaceutical and medical goods – up by 3.2%. In the face of such a decline in demand the more competition driven sectors have little alterna tive but to lower their prices. Latvian industrial producer prices rose in August at a 13.1% annual rate, up from t he 12.4% annual rate registered in July. Month on month producer prices increased b y 0.9%. Latvian producer prices are now up over 50% on the start of 2005, and with the Lat effectively tied in value to the euro (which is either used by, or a reference point for, nearly all Latvia's major external customers) this represents a huge loss of competitiveness for Latvian industry and service companies. Total foreign trade turnover at current prices in Latvia in July 2008 reached 1012.4 mln lats – more by 46.3 mln lats or 4.8% than a month before and less by 55.6 mln lats or 5.2% than in July 2007, according to Central Statistical Bureau da ta. Overall foreign trade turnover in January-June 2008 reached 5973,1 mln. LVL, it is 305,7 mln. LVL (or 5,4%) more than in January-June 2007. Export value in January-June 2008 reached 2216,2 mln.LVL, it is 293,3 mln. LVL (15, 3%) more than in January-June 2007. Import value in January-June 2008 was 12,4 mln. LVL (0,3%) more than in January-June 2007 reached 3759,9 mln.LVL. According to Insolvency Administration forecast, due to breakdown of Latvian economy there will be increase of enterprise insolvency procedures. From the beginn ing of January 2008 the number of enterprises adjudged insolvent by court decision has increased. In January 7 insolvency decisions, in February – 19, in March – 48, in April – 98. Key Economic Indicators 2006 2007 2008 (% annual real changes) 1. GDP, LVL mln. 11172 13957 7204(1H) 2. GDP growth rate, % 12,2 10,3 -0,4 (f) 3. Exports of goods,% 6,5 11,1 2,6 (f) 4. Export, LVL mln. 3293,2 4038,7 2216,2(1H) 5. Import of goods, % 19,3 15,0 0,3 (f) 6. Import, LVL mln. 6378,5 7746,3 3756,9(1H) 7. Unemployment rate, 7,0 5,7 5,3 (f) 8. Fixed investment, % 16,4 8,4 -5,3(f) 9. Consumer prices, y/y, % 6,6 10,1 15,9(f) Key Economic Indicators (as % of corresponding period of previous year) 2006 2007 2008(1H) 1. Volume index of industrial 105,6 101,1 98 production, % 2. Agricultural output index 123,6 137,4 3. Foreign investment, mln.LVL 932,1 1116,9 4. Consumer price index 129,9 143,0 5. Construction cost index 128,7 162,4 6. Average annual inflation (%) 6,6 10,1 7. Industrial producer price index 110,3 116,1 8. Export unit value index 109,7 113,3 9. Import unit value index 109,3 105,7 10. Cargo turnover (mln. tonne-km) 27 803 31 468 11. Gross national income, mln LVL 10841,8 13435,6 6949,8 CURRENT ECONOMICAL SITUATION IN LATVIA (MASS-MEDIA REVIEW) 1. DELFI 3 July 2008 15:29 Latvian Confederation of Employers of Small Enterprises and Craftsmen (former Assoc iation of Merchants) is not satisfied with slow actions of Latvian Government which is not able to under take the measures to restrain the dramatic drop of production in the Country. Thus, by the words of Confederation Chairman Mr Henrik Danusevich the decline in the next industrial branches during this year has reached the following rates: leat her processing -43%, furniture production -22%, rubber production -21%, metal proce ssing -16%, textile/cloth production -12%. An increase was observed only in fish secondary processing industry with 33%, which restrain the overall decline by 5%. 2. DELFI 3 July 2008 13:31 A fast growth of debtors indebtness has touched all branches of industry in Latvia, Biznes&Baltija newspaper writes. The specialists of debt collection companies note that a high inflation rate (17,9% in May), low rate of GDP growth, as well as overall decline of population pa ying ability have initiated the serious problems. The last year Latvia showed the most swift growth of insolvent enterprises in EU (+ 8.3%), that means that 10252 companies have not been able to manage their debts (th ere were 128n insolvencies in Lithuania and 69 in Estonia). By data of debt collection company, 39,1% of businessmen are not satisfied with pay ing order of their clients (the last year the rate of such businessmen stood at 19, 7%). The number of bad debts has tripled – from 0.6% up to 1,6%. At least, the average delay in payments increased by 31,3% and now makes 23,9 days. 3. DELFI 7 July 2008 15:36 By data of State Register, the number of liquidated enterprises in Latvia shows con stant growth. Thus, the number of closed enterprises in Riga grew by 459% and by 77% in total in Latvia. Statistics of liquidated enterprises: Riga Latvia 6 months 2008 108 148 2007 248 282 2006 54 219 4. BizNews.lv 30.07.2008 In the second quarter 2008 the cars sales volume in Latvia dropped at 19,4% (compar ed to the same period of 2007) but fuel sales volumes showed 6,6% decrease, the Cen tral Statistics Department reports. In June 2008 (compared to May) overall retail turnover decreased by 2,2%; food bran ch showed a small increase – only by 1,1%, but the turnover of non-food branch show ed decline at 4%. In its turn, in June 2008 (compared to June 2007) retail overall turnover dropped by 8,3% thereof decrease in food products sale made -6,1%, but non-food products - -9,7% Overall turnover of retail branch in the 2-nd Q 2008 decreased by 4,5% including -5 ,9% decrease in food products branch and -3,6% decrease in non-food products branch . Decline for half-year 2008 (compared to ? 2007): total turnover of retail -3%; the bigger decrease was in food products trade (-5,1%); the fall rate in non-food produ cts branch made 1,8% 5.LETA September 12, 2008 Overall production output in Latvia in July this year has cut down by 6,9% compared to July 2007. By data of ÅÑ Eurostat Latvia demonstrated the most sharp de crease in European Community. The production output in Latvia decreased in July by 0.7% compared to the previous month June this year. Estonia showed 0,3% decrease, Lithuania – 0,9%. 6.BC, Riga, 09.09.2008 Although the inflation level continues to decrease, the prognosis about future econ omic development remains pessimistic in Latvia, said Prime Minister Ivars Godmanis (Latvia's First Party/Latvia's Way). The inflation drop is strongly influenced by o ther macroeconomic indexes, for example, the strong decrease in gross domestic product and reduced consumption level, the prime minister pointed ou t. As reported, annual inflation in Latvia continues to drop and in August this yea r, was 15,7%, compared with August 2007, according to the Central Statistical Burea u's data. Prices grew by 15,3% for goods and 16,8% for services. 7. BC, Riga, 24.09.2008 The Economy Ministry and the Finance Ministry of Latvia expect economic growth in L atvia to reach zero to 1% in 2008, and zero to 2% in 2009, as the ministries inform the government in a report on the macroeconomic situation in Latvia. The act ual growth will depend on the development of Latvia's trade partners, as the growth will mostly be determined by the development of exports. Economic develop- ment in the European union and especially in such countries as Lithuania, Estonia, Germany and Great Britain is particularly important to Latvia. The main reasons for the decreasing growth include weakening stimuli behind domestic demand and decr easing external demand, mostly in the industry and transport sectors, reports LETA. ________________________________________ APPENDIX A Financial Statements - 31.12.2007 : Fiscal period: 12 month(s), currency: LVL PROFIT AND LOSS ACCOUNT 010 Net turnover 656 537.00 020 Cost of sales 531 132.00 025 Change in stock, finished and semi-finished goods 030 Gross profit or loss 125 405.00 035 Facilities produced at the expense of own funds for internal use 040 Distribution costs -37 511.00 050 Administrative expenses -41 283.00 060 Other operating income 8 134.00 062 Economical expenses 065 Administrative charges 067 Depreciation of fixed assets 068 Other operating expenses -1 232.00 070 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 -1 168.00 120 Profit or loss on ordinary activities before taxation 52 345.00 130 Extraordinary income 140 Extraordinary charges 150 Extraordinary profit or loss before taxation 151 Profit or loss before taxation 52 345.00 160 Deferred Income-tax for fiscal period -8 005.00 170 Other taxes 180 Profit or loss for fiscal period 44 329.00 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 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. 146.00 021 Other intangible assets 030 Goodwill 040 Payments on account for intangible assets 050 Total intangible assets 146.00 Tangible assets 060 Real estate 061 Long-term investments in leased tangible assets 070 Plant and machinery 080 Other fixtures and fittings, tools and equipment 18 872.00 090 Payments on account and tangible assets in cours of construction 091 Prepayment for tangible assets 100 Total tangible assets 18 872.00 107 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 190 Total financial assets 200 NON-CURRENT ASSETS TOTAL 19 018.00 CURRENT ASSETS Stock 210 Raw materials and consumables 127.00 220 Work in progress 230 Finished goods and goods for resale 165 850.00 240 Orders outstanding 250 Payments on account 260 Working and productive animals 270 Total stock 165 977.00 Debtors 280 Trade debtors 8 786.00 290 Amounts owed by subsidiaries 300 Amounts owed by related companies 310 Other debts 1 247.00 320 Subscribed capital called but not paid 330 Short-terms loans to the members of the company and the management 340 Prepayments and accrued 3 199.00 341 Accrued income 350 Total debtors 13 232.00 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) 29 468.00 410 CURRENT ASSETS TOTAL 208 677.00 420 BALANCE 227 695.00 L I A B I L I T I E S CAPITAL AND RESERVES 430 Share capital 2 000.00 440 Share premium account 450 Long-term assets revaluation reserve Reserves 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 1 946.00 520 Profit or loss for the current year 44 329.00 530 CAPITAL AND RESERVES TOTAL 48 275.00 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 5 715.00 602 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 633 Non-paid dividends of previous years 634 Deferred tax liabilities 553.00 640 Total long-term liabilities 6 268.00 Short-term liabilities 650 Debenture loans 660 Convertible loans 670 Amounts owed to credit institutions 671 Other loans 9 078.00 680 Advanced payments received 0.00 690 Trade debts 38 305.00 700 Bills of exchange payable 710 Amounts owed to subsidiaries 111 895.00 720 Amounts owed to related companies 730 Taxes and social security payments 10 516.00 740 Other creditors 1 353.00 750 Deferred income 760 Fiscal period dividends 770 Non-paid dividends of previous years 771 Accrued charges 2 005.00 773 Deferred tax liabilities 780 Total short-term liabilities 173 152.00 790 CREDITORS TOTAL 179 420.00 800 BALANCE 227 695.00 990 Employees number 2.00 - 31.12.2006 : Fiscal period: 12 month(s), currency: LVL PROFIT AND LOSS ACCOUNT 010 Net turnover 482 188.00 020 Cost of sales 393 080.00 025 Change in stock, finished and semi-finished goods 030 Gross profit or loss 89 108.00 035 Facilities produced at the expense of own funds for internal use 040 Distribution costs -27 398.00 050 Administrative expenses -39 647.00 060 Other operating income 6 290.00 062 Economical expenses 065 Administrative charges 067 Depreciation of fixed assets 068 Other operating expenses -1 594.00 070 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 -696.00 120 Profit or loss on ordinary activities before taxation26 063.00 130 Extraordinary income 140 Extraordinary charges 150 Extraordinary profit or loss before taxation 151 Profit or loss before taxation 26 063.00 160 Deferred Income-tax for fiscal period -1 593.00 170 Other taxes 180 Profit or loss for fiscal period 23 928.00 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 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. 0.00 021 Other intangible assets 030 Goodwill 040 Payments on account for intangible assets 050 Total intangible assets 0.00 Tangible assets 060 Real estate 061 Long-term investments in leased tangible assets 070 Plant and machinery 080 Other fixtures and fittings, tools and equipment 17 915.00 090 Payments on account and tangible assets in cours of construction 091 Prepayment for tangible assets 100 Total tangible assets 17 915.00 107 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 190 Total financial assets 200 NON-CURRENT ASSETS TOTAL 17 915.00 CURRENT ASSETS Stock 210 Raw materials and consumables 0.00 220 Work in progress 230 Finished goods and goods for resale 151 510.00 240 Orders outstanding 250 Payments on account 260 Working and productive animals 270 Total stock 151 510.00 Debtors 280 Trade debtors 20 728.00 290 Amounts owed by subsidiaries 300 Amounts owed by related companies 310 Other debts 2 792.00 320 Subscribed capital called but not paid 330 Short-terms loans to the members of the company and the management 340 Prepayments and accrued 3 181.00 341 Accrued income 350 Total debtors 26 701.00 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) 20 667.00 410 CURRENT ASSETS TOTAL 198 878.00 420 BALANCE 216 793.00 L I A B I L I T I E S CAPITAL AND RESERVES 430 Share capital 2 000.00 440 Share premium account 450 Long-term assets revaluation reserve Reserves 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 -21 982.00 520 Profit or loss for the current year 23 928.00 530 CAPITAL AND RESERVES TOTAL 3 946.00 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 10 140.00 602 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 633 Non-paid dividends of previous years 634 Deferred tax liabilities 542.00 640 Total long-term liabilities 10 682.00 Short-term liabilities 650 Debenture loans 660 Convertible loans 670 Amounts owed to credit institutions 671 Other loans 8 186.00 680 Advanced payments received 654.00 690 Trade debts 64 894.00 700 Bills of exchange payable 710 Amounts owed to subsidiaries 122 140.00 720 Amounts owed to related companies 730 Taxes and social security payments 2 641.00 740 Other creditors 1 294.00 750 Deferred income 760 Fiscal period dividends 770 Non-paid dividends of previous years 771 Accrued charges 2 356.00 773 Deferred tax liabilities 780 Total short-term liabilities 202 165.00 790 CREDITORS TOTAL 212 847.00 800 BALANCE 216 793.00 990 Employees number 2.00 ________________________________________ This report is furnished by IGK GROUP in strict confidence solely for your use and no part of the report may be disclosed to any third party. 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