MIRA INFORM REPORT

Report Date :

05.01.2011

IDENTIFICATION DETAILS

Name :	KOVOSVIT MAS, A.S.
Registered Office :	Náměstí Tomáše Bati 419, 391 02 Sezimovo Ústí II
Country :	Czech Republic
Financials (as on) :	31.12.2009
Date of Incorporation :	02.05.2002
Com. Reg. No.:	B/1257
Legal Form :	Public Limited Company
Line of Business :	Manufacturer of power-driven hand tools

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

Maximum Credit Limit :	CZK 5 000 000 EUR 187 850
Status :	Satisfactory
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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
Czech Republic	a2	a2

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

Company name & address

KOVOSVIT MAS, a.s.
Náměstí Tomáše Bati 419
391 02 Sezimovo Ústí II
Telephone: 00420/ 381 631 111
Telefax: 00420/ 381 276 372
E-Mail: mas@kovosvit.cz
Web: www.kovosvit.cz

Company summary

Company development

Stagnant company development

Order situation	Retrograde order situation
Terms of payment	Mostly within agreed terms, but partly also delayed

Business connection	Business connections appear permissible
Credit limit	CZK 5 000 000,- EUR 187 850,-

Legal form

Public limited company

Foundation	02/05/2002 - Public limited company
Comp. Register	01/06/2002, Krajský soud České Budějovice, RegNr.: B/1257 Statistical number: 26047284 Tax number: CZ26047284

Share Capital	01/06/2002	CZK	666 200 000,-
	21/03/2006	CZK	715 900 000,-

01/08/2008	CZK	412 000 000,-
10/12/2008	CZK	421 000 000,-

421 pc of common nominative shares in documentary form

at nominal value of CZK 1 000 000,- CZK

Main Shareholder	KOVOSVIT, a.s. (ICO:00009415) náměstí Tomáše Bati 419, 391 02 Sezimovo Ústí II	%	100
Board of Directors	Ing. Libor Kuchař (28.11.1968) Velmovice 29, 391 55 Chýnov

Supervisory Board	Ing. Pavla Havránková (20.08.1948) Vidimská 1/732, 181 00 Praha 8 chairman
	František Veselý (14.08.1956) Helsinská 2738, 390 05 Tábor vice-chairman

	Larisa Táborová (12.04.1956) Okružní 350, 391 11 Planá nad Lužnicí
General Data	Development, manufacture, service and sale of machine tools

and accessories thereof, of spindle units, manufacture of tools,

instruments, measurers as well as other engineering products,

	metal foundry.
Main activity: Manufacture of power-driven hand tools

	Trade name(s) KOVOSVIT MAS, a.s. Beginning of validity: 01.06.2002
Export: Germany Poland Russia Slovakia Ukraine		57%

Import:
Germany

		Address: Náměstí Tomáše Bati 419, 391 02 Sezimovo Ústí II Beginning of validity: 01.06.2002 Telephone: 00420/ 381 631 111 Telefax: 00420/ 381 276 372 E-Mail: mas@kovosvit.cz Web: www.kovosvit.cz
Staff	2006		998 employees

2008	883 employees
2009	661 employees

		2010		700 employees
Annual Sales	2005		actual sales		CZK	1 184 013 000,-

2006	actual sales	CZK	1 547 587 000,-
2007	actual sales	CZK	1 584 106 000,-

2008	actual sales	CZK	1 546 353 000,-
2009	actual sales	CZK	683 308 000,-

Property	Property of the company: Business premises (IM-Online) CZ-391 02 Sezimovo Ústí, náměstí Tomáše Bati 419
Balance sheets	The enclosed balance of 2009 from business register, it is authenticated by the auditor. (31.12.2009 - 1 CZK) The enclosed balance of 2008. (31.12.2008 - 1 CZK) The enclosed balance of 2007. (31.12.2007 - 1 CZK) The enclosed balance of 2006. (31.12.2006 - 1 CZK)

	The enclosed profit/loss account of 2009 from business register, it is authenticated by the auditor. (31.12.2009 - 1 CZK) The enclosed profit/loss account of 2008 from business register, -. (31.12.2008 - 1 CZK) The enclosed profit/loss account of 2007. (31.12.2007 - 1 CZK) The enclosed profit/loss account of 2006. (31.12.2006 - 1 CZK)
Remarks	The company does not provide its current economic data. All the sources of negative data accessible to public (insolvency registers, databases of debtors of health insurance institutions, commercial bulletin, collection database are currently monitored.

Subsidiary company:

- KOVOSVIT MASS Polska Sp.z o.o., Poland, share 100%

Business management:

Ing. Libor Kuchař – general director

Ing. Pavel Kovář – economist, phone: 00420/ 381 632 350, mobile

phone:

00420/ 602 274 152

The firm was founded on May 02, 2002, its share capital being paid up

by means of deposit of a part of enterprise of the firm

KOVOSVIT,a.s.; the company has assumed all the rights and duties of

the organization unit of the mother company KOVOSVIT a.s. including

the trademark MAS.

On August 25, 2006 the sole shareholder, i.e. the company KOVOSVIT,

a.s., has decided upon assumption of business property of the

disappearing company ELTAS s.r.o, IČ 49 06 08 72, by the successor

company KOVOSVIT MAS, a.s., IČ 26 04 72 84. By means of this

resolution, also draft of agreement on fusion of the joint-stock

company with the private limited company in form of merger was

approved. At the same time, final account as of December 31, 2005 and

opening balance sheet of the company as of January 1, 2006, were

approved for the purposes of fusion.

To the company KOVOSVIT MAS, a.s., IČ 26 04 72 84, as to the

successor company, liquidation property of the dissolved company KOVO

DS, a.s., IČ 26 04 22 07 was transferred on the basis of Agreement on

fusion by merger concluded on July 8, 2008.

		The later cited company is disappearing.
Bankers	Česká spořitelna, a. s. The Royal Bank of Scotland N.V.

	balance Sheet	31.12.2006 (CZK)	31.12.2007 (CZK)	31.12.2008 (CZK)	31.12.2009 (CZK)
r1	TOTAL ASSETS	1 432 077 000	1 346 032 000	1 456 583 000	1 147 453 000
r2	Receivables for subscriptions	0	0	0	0
r3	Fixed assets	620 374 000	542 745 000	608 743 000	578 167 000
r4	Intangible fixed assets	11 666 000	7 960 000	7 515 000	8 203 000
r5	Incorporation expenses	0	0
r6	Research and development	0	0
r7	Software	1 913 000	1 555 000	1 904 000	1 895 000
r8	Valuable rights	9 003 000	4 620 000	3 268 000	4 719 000
r9	Goodwill	0	0
r10	Other intangible fixed assets	0	0
r11	Intangible fixed assets under construction	750 000	1 785 000	2 343 000	1 589 000
r12	Advance payments for intangible fixed assets	0	0
r13	Tangible fixed assets	601 023 000	529 088 000	592 234 000	562 608 000
r14	Lands	21 532 000	18 741 000	18 732 000	18 732 000
r15	Constructions	355 407 000	291 432 000	307 994 000	306 315 000
r16	Equipment	218 260 000	206 540 000	209 114 000	198 140 000
r17	Perennial corps	0	0
r18	Breeding and draught animals	0	0
r19	Other tangible fixed assets	257 000	257 000	73 000	73 000
r20	Tangible fixed assets under construction	15 067 000	20 565 000	34 332 000	16 756 000
r21	Advance payments for tangible fixed assets	607 000	677 000	30 130 000	29 750 000
r22	Adjustment to acquired assets	-10 107 000	-9 124 000	-8 141 000	-7 158 000
r23	Long-term financial assets	7 685 000	5 697 000	8 994 000	7 356 000
r24	Shares in controlled and managed organizations	0	0	3 297 000	1 659 000
r25	Shares in accounting units with substantial influence	0	0
r26	Other securities and shares	5 697 000	5 697 000	5 697 000	5 697 000
r27	Loans to controlled and managed organizations and to accounting unit with substantial influence	0	0
r28	Other financial investments	1 988 000	0
r29	Financial investments acquired	0	0
r30	Advance payments for long-term financial assets	0	0
r31	Current assets	809 932 000	802 174 000	845 632 000	558 977 000
r32	Inventory	415 214 000	413 703 000	507 669 000	349 628 000
r33	Materials	59 700 000	76 691 000	94 604 000	70 054 000
r34	Work in progress and semi-products	193 160 000	234 092 000	182 532 000	104 124 000
r35	Finished products	124 442 000	76 625 000	218 326 000	164 872 000
r36	Animals	0	0
r37	Merchandise	23 929 000	20 220 000	7 946 000	8 562 000
r38	Advance payments for inventory	13 983 000	6 075 000	4 261 000	2 016 000
r39	Long-term receivables	3 312 000	30 457 000	2 389 000	667 000
r40	Trade receivables	0	540 000	2 311 000	537 000
r41	Receivables from controlled and managed organizations	0	0		50 000
r42	Receivables from accounting units with substantial influence	0	0
r43	Receivables from partners, cooperative members and association members	0	0
r44	Long-term deposits given	317 000	316 000
r45	Estimated receivable	0	0
r46	Other receivables	2 995 000	29 601 000	78 000	80 000
r47	Deferred tax receivable	0	0
r48	Short-term receivables	327 757 000	311 218 000	333 270 000	177 610 000
r49	Trade receivables	294 293 000	290 688 000	318 153 000	138 990 000
r50	Receivables from controlled and managed organizations	21 731 000	309 000	671 000	31 776 000
r51	Receivables from accounting units with substantial influence	0	0
r52	Receivables from partners, cooperative members and association members	0	0
r53	Receivables from social security and health insurance	0	0
r54	Due from state - tax receivable	61 000	1 183 000	80 000	5 284 000
r55	Short-term deposits given	1 164 000	944 000	158 000	105 000
r56	Estimated receivable	3 488 000	2 115 000	3 052 000	982 000
r57	Other receivables	7 020 000	15 979 000	11 156 000	473 000
r58	Short-term financial assets	63 649 000	46 796 000	2 304 000	31 072 000
r59	Cash	237 000	231 000	213 000	365 000
r60	Bank accounts	63 412 000	46 565 000	2 091 000	30 707 000
r61	Short-term securities and ownership interests	0	0
r62	Short-term financial assets acquired	0	0
r63	Accruals	1 771 000	1 113 000	2 208 000	10 309 000
r64	Deferred expenses	661 000	881 000	1 694 000	9 818 000
r65	Complex deferred costs	0	0
r66	Deferred income	1 110 000	232 000	514 000	491 000
r67	TOTAL LIABILITIES	1 432 077 000	1 346 032 000	1 456 583 000	1 147 453 000
r68	Equity	473 036 000	603 416 000	727 952 000	554 334 000
r69	Registered capital	715 900 000	715 900 000	421 000 000	421 000 000
r70	Registered capital	715 900 000	715 900 000	421 000 000	421 000 000
r71	Company’s own shares and ownership interests (-)	0	0
r72	Changes of registered capital ( +/- )	0	0
r73	Capital funds	-117 771 000	-82 860 000	46 914 000	53 277 000
r74	Share premium	51 986 000	51 986 000	51 986 000	51 986 000
r75	Other capital funds	0	0
r76	Differences from revaluation of assets and liabilities ( +/- )	-169 757 000	-134 846 000	-5 072 000	1 291 000
r77	Differences from revaluation in transformation ( +/- )	0	0
r78	Reserve funds, statutory reserve account for cooperatives, and other retained earnings	7 073 000	7 073 000	12 471 000	20 315 000
r79	Legal reserve fund / indivisible fund	7 023 000	7 023 000	12 421 000	20 265 000
r80	Statutory and other funds	50 000	50 000	50 000	50 000
r81	Profit / loss - previous years	-5 181 000	-132 166 000	90 695 000	239 723 000
r82	Retained earnings from previous years	1 368 000	0	90 695 000	239 723 000
r83	Accumulated losses from previous years	-6 549 000	-132 166 000
r84	Profit / loss - current year (+/-)	-126 985 000	95 469 000	156 872 000	-179 981 000
r85	Other sources	956 031 000	741 603 000	728 204 000	592 959 000
r86	Reserves	38 292 000	59 701 000	68 291 000	37 966 000
r87	Reserves under special statutory regulations	0	0
r88	Reserves for pension and similar payables	0	0
r89	Income tax reserves	0	0
r90	Other reserves	38 292 000	59 701 000	68 291 000	37 966 000
r91	Long-term payables	0	9 944 000	21 177 000	1 000
r92	Trade payables	0	0
r93	Payables to controlled and managed organizations	0	0
r94	Payables to accounting units with substantial influence	0	0
r95	Payables from partners, cooperative members and association members	0	0
r96	Long-term advances received	0	0
r97	Issues bonds	0	0
r98	Long-term notes payables	0	0
r99	Estimated payables	0	0
r100	Other payables	0	0	19 701 000	1 000
r101	Deferred tax liability	0	9 944 000	1 476 000
r102	Short-term payables	335 507 000	269 725 000	245 123 000	178 985 000
r103	Trade payables	229 069 000	158 564 000	158 739 000	94 360 000
r104	Payables to controlled and managed organizations	11 874 000	27 441 000	3 635 000	9 000
r105	Payables to accounting units with substantial influence	0	0
r106	Payables from partners, cooperative members and association members	48 000	48 000	48 000	48 000
r107	Payroll	16 039 000	16 010 000	17 811 000	8 448 000
r108	Payables to social securities and health insurance	8 491 000	8 978 000	9 897 000	4 302 000
r109	Due from state - tax liabilities and subsidies	5 049 000	3 180 000	3 251 000	2 042 000
r110	Short-term deposits received	32 368 000	26 725 000	21 871 000	43 404 000
r111	Issues bonds	0	0
r112	Estimated payables	31 718 000	27 767 000	21 885 000	16 198 000
r113	Other payables	851 000	1 012 000	7 986 000	10 174 000
r114	Bank loans and financial accommodations	582 232 000	402 233 000	393 613 000	376 007 000
r115	Long-term bank loans	0	0	0	0
r116	Short-term bank loans	582 232 000	402 233 000	393 613 000	376 007 000
r117	Short-term accommodations	0	0	0	0
r118	Accruals	3 010 000	1 013 000	427 000	160 000
r119	Accrued expenses	3 010 000	1 013 000	427 000	160 000
r120	Deferred revenues	0	0

	Profit/Loss Account		31.12.2006 (CZK)		31.12.2007 (CZK)		31.12.2008 (CZK)		31.12.2009 (CZK)
a1	Turnover		1 547 587 000		1 584 106 000		1 546 353 000		683 308 000
a2	Revenues from sold goods		97 744 000		109 477 000		70 437 000		22 967 000
a3	Expenses on sold goods		82 872 000		95 576 000		64 819 000		16 766 000
a4	Sale margin		14 872 000		13 901 000		5 618 000		6 201 000
a5	Production		1 341 323 000		1 393 597 000		1 508 751 000		568 294 000
a6	Revenues from own products and services		1 449 843 000		1 474 629 000		1 475 916 000		660 341 000
a7	Change in inventory of own products		-156 354 000		-99 473 000		-3 050 000		-110 695 000
a8	Capitalization		47 834 000		18 441 000		35 885 000		18 648 000
a9	Production consumption		927 696 000		942 792 000		1 055 824 000		433 122 000
a10	Consumption of material and energy		787 901 000		780 559 000		863 505 000		351 949 000
a11	Services		139 795 000		162 233 000		192 319 000		81 173 000
a12	Added value		428 499 000		464 706 000		458 545 000		141 373 000
a13	Personnel expenses		347 552 000		347 440 000		369 552 000		251 118 000
a14	Wages and salaries		256 133 000		255 359 000		271 762 000		188 468 000
a15	Renumeration of board members		348 000		396 000		346 000		366 000
a16	Social security expenses and health insurance		88 713 000		89 162 000		93 140 000		58 306 000
a17	Other social expenses		2 358 000		2 523 000		4 304 000		3 978 000
a18	Taxes and fees		1 491 000		5 372 000		1 364 000		2 960 000
a19	Depreciations of intangible and tangible assets		63 834 000		61 267 000		54 829 000		52 700 000
a20	Revenues from disposals of fixed assets and materials		19 685 000		85 417 000		11 460 000		3 137 000
a21	Revenues from disposals of fixed assets		8 913 000		81 255 000		6 069 000		2 451 000
a22	Revenues from disposals of materials		10 772 000		4 162 000		5 391 000		686 000
a23	Net book value of disposed fixed assets and materials		19 591 000		79 641 000		36 565 000		2 715 000
a24	Net book value of sold fixed assets		7 826 000		69 191 000		3 558 000		560 000
a25	Net book value of sold material		11 765 000		10 450 000		33 007 000		2 155 000
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )		122 329 000		-98 276 000		-140 122 000		2 699 000
a27	Other operating revenues		19 806 000		23 009 000		31 591 000		23 234 000
a28	Other operating expenses		19 121 000		40 791 000		24 938 000		15 877 000
a29	Transfer of operating revenues		0		0		0
a30	Transfer of operating expenses		0		0		0
a31	Operating profit / loss		-105 928 000		136 897 000		154 470 000		-160 325 000
a32	Revenues from sales of securities and ownership interests		0		0		0
a33	Sold securities and ownership interests		0		0		0
a34	Revenues from long-term financial assets		0		0		0
a35	Revenues from shares in controlled and managed organizations and in accounting units with substantial influence		0		0
a36	Revenues from others securities and ownership interests		0		0
a37	Revenues from other long-term financial assets		0		0
a38	Revenues from short-term financial assets		0		0		0
a39	Expenses associated with financial assets		0		0		0
a40	Revenues from revaluation of securities and derivatives		0		0		0
a41	Cost of revaluation of securities and derivatives		0		0		0
a42	Change in financial reserves and adjustments ( + / - )		0		0		0
a43	Interest revenues		3 507 000		581 000		504 000		588 000
a44	Interest expenses		30 700 000		26 526 000		20 361 000		16 388 000
a45	Other financial revenues		32 436 000		10 331 000		47 343 000		10 870 000
a46	Other financial expenses		31 086 000		24 480 000		23 728 000		17 261 000
a47	Transfer of financial revenues		0		0		0
a48	Transfer of financial expenses		0		0		0
a49	Profit / loss from financial operations ( transactions )		-25 843 000		-40 094 000		3 758 000		-22 191 000
a50	Income tax on ordinary income		-4 786 000		1 334 000		1 356 000		-2 535 000
a51	Due tax		0		155 000
a52	Tax deferred		-4 786 000		1 179 000		1 356 000		-2 535 000
a53	Operating profit / loss ordinary activity		-126 985 000		95 469 000		156 872 000		-179 981 000
a54	Extraordinary revenues		0		0		0
a55	Extraordinary expenses		0		0		0
a56	Income tax on extraordinary income		0		0		0
a57	Due tax		0		0
a58	Tax deferred		0		0
a59	Operating profit / loss extraordinary activity		0		0		0		0
a60	Transfer profit ( loss ) to partners (+/-)		0		0		0
a61	Profit / loss of current accounting period (+/-)		-126 985 000		95 469 000		156 872 000		-179 981 000
a62	Profit / loss before tax (+/-)		-131 771 000		96 803 000		158 228 000		-182 516 000
	Operating cash flow		265 968 000		133 184 000		71 613 000		77 370 000
	Investment cash flow		-154 904 000		29 962 000		-117 595 000		-30 996 000
	Financial cash flow		-98 699 000		-179 999 000		614 000		-17 606 000
	Receivables after due date total		55 375 000		68 627 000		119 826 000		70 713 000
	Receivables more than 180 days after due date		33 673 000		36 203 000		18 633 000		30 705 000
	Liabilities after due date total		51 921 000		72 909 000		33 999 000		29 461 000
	Liabilities more than 180 days after due date		9 836 000		21 536 000		6 868 000		3 365 000
Balance indices				31.12.2006		31.12.2007		31.12.2008		31.12.2009
Return on total assets ROA (in %)		a62/r1 * 100		-9,20		7,19		10,86		-15,91
Return on equity ROE (in %)		a62/r68 * 100		-27,86		16,04		21,74		-32,93
Return on sales ROS (in %)		a62/a1 * 100		-8,51		6,11		10,23		-26,71
Turnover of receivables (in days)		r49/a1 * 365		69,41		66,98		75,10		74,24
Turnover of liabilities (in days)		r103/a1 * 365		54,03		36,54		37,47		50,40
Turnover of inventories (days)		r32/a1 * 365		97,93		95,32		119,83		186,76
Net working capital (in ths. CZK)		r31 - r102 - r116 - r117		-107 807,00		130 216,00		206 896,00		3 985,00
Ratio of accounts payable to accounts receivable (in %)		(r39+r48) / (r91+r102) * 100		98,68		122,17		126,05		99,60
Ratio of profit/loss to tangible assets (in%)		r3 / a1 * 100		40,09		34,26		39,37		84,61
Current ratio		r31 / (r102+r116+r117)		0,88		1,19		1,32		1,01
Quick ratio		(r58+r48) / (r102+r116+r117)		0,43		0,53		0,53		0,38
Cash ratio		r58 / (r102+r116+r117)		0,07		0,07		0,00		0,06
Debt ratio I (in %)		(1-r68/r67) * 100		66,97		55,17		50,02		51,69
Debt ratio II (in %)		r85/r67 * 100		66,76		55,10		49,99		51,68

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.84
UK Pound	1	Rs.69.32
Euro	1	Rs.59.79

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.