MIRA INFORM REPORT

Report Date :

28.06.2011

IDENTIFICATION DETAILS

Name :	TELEGRA D.O.O.
Registered Office :	Plešivička 3, HR 10431 Sveta Nedelja
Country :	Croatia
Financials (as on) :	31.12.2010
Date of Incorporation :	20.03.1991
Legal Form :	Limited Liability Company
Line of Business :	Manufacture of other electrical equipment

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	EUR 800.000,00
Status :	Good
Payment Behaviour :	Regular
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^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
Croatia	b2	b2

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

Company name

TELEGRA d.o.o.

Design, Production, Installation and Maintenance of intelligent transport systems and telecommunications infrastructure

Company address

Plešivička 3

HR 10431 Sveta Nedelja

Tel: +385 1/3388500

Fax: +385 1/3388599

E-mail: info@telegra-europe.com

Web: www.telegra-europe.com

Company profile

Established: 1991.
Statistic number: 3695174
Basic capital: HRK 30.000.000,00
Activity: Manufacture of other electrical equipment (27.90)
Staff: 185
Last available data for year: 2010
Total revenue: HRK 204.760.070
Profit before taxes: HRK 32.884.960
Financial stability ratio: 1,3780
Solvency ratio (%): 67,8531
Current ratio: 2,2835

Legal form	limited liability company
Established	1991 as TELEFON-GRADNJA d.o.o. za projektiranje i održavanje telekomunikacijskih sustava since 2005-06-29 as TELEFON-GRADNJA d.o.o. za projektiranje, proizvodnju, ugradnju i održavanje inteligentnih prometnih sustava i telekomunikacijske infrastrukture since 2007-10-16 present name
Registered	1991-03-20, Commercial court Zagreb, MBS: 080367121 re-registration according to the Companies act made: 1995-12-23 last court entry: 2010-07-09 According to court entry from 2010-07-09 company CTG, d.o.o. (MBS: 080432040, OIB: 81624257578) transfered part of their rights and obligations to the firm TELEGRA d.o.o. (MBS: 080367121) with a legal site in Sveta Nedelja, Pleševička 3 and to the firm Curatus d.o.o. (MBS: 080530065) with a legal site in Zagreb, Kraljevićeva 4. Statistic number: 3695174 OIB: 05002572170

Shareholders	Mladen Glad Žlebec 30, 10000 Zagreb, Croatia
	Predrag Balentović Kozarčeva 55, 10000 Zagreb, Croatia
	Željko Glad Gračec 1, 10000 Zagreb, Croatia
	Davor Hude Ljudevita Gaja 62, 10430 Samobor, Croatia
	- value of shares unknown

Basic capital	HRK 30.000.000,00
	2005-06-29 the capital was increased from HRK 10.569.900,00 to the above amount 2002-06-30 the capital was increased from HRK 10.200.000,00 to the above amount 2002-04-08 the capital was increased from HRK 20.400,00 to the above amount 1995-12-23 the capital was increased from HRK 156,00 to the above amount

Management

Mladen Glad, president, born 1952.07.30 Žlebec 30, 10000 Zagreb, Croatia Predrag Balentović, member, born 1968.05.17 Kozarčeva 55, 10000 Zagreb, Croatia

Activity

Manufacture of other electrical equipment Manufacture of other fabricated metal products n.e.c. Manufacture of electric motors, generators and transformers Agents involved in the sale of a variety of goods - Projecting, development, production and installation of traffic management syststems and telecommunication infrastructure - Cable Infrastructure and Network Design - Core software and hardware products - Communication network designs - Traffic technology designs, including OMC centre designs - Full range of products and integration services - Integration and delivery of third party products and subsystems - Services from design to installations and long term maintenance Certificates: * EN 12966 certification * Compliance with German road application worthiness by BASt, German Federal Highway Research Institute * Compliance with Dutch road application worthiness by Rijkswaterstaat * Compliance with Austrian road application worthiness ASFiNAG * Spanish homologation APPlus , Barcelona * Russian GOST R certificate * Mass production Certificate, PR China * Compliance with TLS (German Technical Terms of Delivery to Road Stations), Theis Consult Germany * TLS 2002 and TLS over IP compliance ASFiNAG * MIL-STD-810F Cetificates USA legal site and business premises are located at the above address former company address was till 2002-10-11 at Lastovska 7, Zagreb former company address was till 2001-10-05 at Kušlanova 10, Zagreb the company owns vehicles, number and type not known Book value of vehicles 2010.12.31: HRK 943.890,00 Basic activity code (according to NACE Rev.2): Manufacture of other electrical equipment   (27.90)

Staff	2007	125	employees
	2008	156	employees
	2009	213	employees
	2010	218	employees
	2011	185	employees

Total revenue	2006	HRK	178.807.000
	2007	HRK	187.882.000
	2008	HRK	320.662.000
	2009	HRK	259.697.000
	2010	HRK	204.760.070

Real estate

the company owns real estates Book value of ground 2010.12.31: HRK 11.937.674,00 Book value of buildings 2010.12.31: HRK 48.419.359,00 information about eventual mortgage existance not available insight into real estate register not possible

Financial

Assets	Currency: HRK ( x 1.000 )	2010.12.31	2009.12.31	2008.12.31
	FIXED ASSETS	169.062	166.217	106.664
	Intangible assets	547	99	194
	Tangible assets	77.688	82.396	85.580
	Long term financ. assets	68.164	39.048	20.276
	Long term receivables	22.663	44.673	615
	CURRENT ASSETS	202.506	254.958	255.484
	Inventories	35.951	48.049	62.393
	Short term receivables	116.837	137.084	135.077
	Short term financial assets	5.824	1.511	1.483
	Cash at bank and in hand	43.894	68.314	56.531
	ACCRUALS	82	139	10.984
	LOSS OVER THE CAPITAL		0	0
	TOTAL ASSETS	371.650	421.314	373.132
Liabilities	Currency: HRK ( x 1.000 )	2010.12.31	2009.12.31	2008.12.31
	EQUITY	252.176	248.639	241.084
	Subscribed capital	30.000	30.000	30.000
	Revalorizational reserves	10.420	11.440	12.385
	Reserves	15.452	15.452	15.452
	Profit brought forward	170.229	133.722	86.519
	Profit of the period	26.075	58.025	96.728
	PROVISIONS	2.167	2.158	2.463
	LONG TERM LIABILITIES	28.160	20.264	29.740
	SHORT TERM LIABILITIES	88.683	147.861	87.274
	To associated companies	373	0	0
	Loans	0	41	41
	Credits	50.239	82.059	28.982
	Deposits, advances payments	4.511	13.904	4.765
	To suppliers	13.851	31.804	36.579
	To staff	1.860	2.000	1.896
	Taxes, fees, etc.	6.762	2.783	15.003
	Other tax liabilities	10.870	15.270	0
	Other short term liabilities	217	0	9
	DEFFERED ITEMS	463	2.392	12.572
	TOTAL LIABILITIES	371.650	421.314	373.132
Profit/loss account	Currency: HRK ( x 1.000 )	2010.12.31	2009.12.31	2008.12.31
	OPERATING REVENUES	169.276	256.760	313.646
	Sales in the country	54.006	192.214	215.401
	Sales abroad	111.062	63.414	97.456
	Other revenues	4.207	1.132	789
	OPERATING EXPENSES	161.812	177.053	182.727
	Increase in inventories	0	5.529	4.831
	Decrease in inventories	6.734	0	0
	Material costs	87.086	116.596	139.073
	Staff costs	46.256	42.403	30.836
	Depreciation of fixed assets	7.634	7.906	7.553
	Depreciation of current assets	5	5.331	525
	Reserves for expenses and risques	1.115	1.171	1.593
	Other operating expenses	12.982	9.175	7.979
	FINANCIAL REVENUES	35.484	2.497	6.911
	FINANCIAL EXPENSES	10.063	9.721	17.774
	EXTRAORDINARY REVENUES	0	440	105
	EXTRAORDINARY EXPENSES	0	27	31
	TOTAL REVENUES	204.760	259.697	320.662
	TOTAL EXPENSES	171.875	186.801	200.532
	Profit before taxation	32.885	72.895	120.130
	Loss before taxation	0	0	0
	Taxation on profit	6.810	14.871	23.402
	PROFIT OF THE PERIOD	26.075	58.025	96.728
	LOSS OF THE PERIOD	0	0	0
Financial ratios		2010.12.31	2009.12.31	2008.12.31
	Financial stability ratio	1,3780	1,2651	1,6165
	Solvency ratio (%)	67,8531	59,0151	64,6109
	Debt ratio (in years)	3,4662	2,5500	1,1221
	Liquidity ratio	1,8781	1,3993	2,2125
	Current ratio	2,2835	1,7243	2,9274
	Total assets turnover	0,5509	0,6164	0,8594
	Inventories turnover	5,6956	5,4048	5,1394
	Collection period (in days)	254,8120	193,0549	155,4311
	Creditors Days	30,2087	44,7895	42,0909
	Inventories bonding (in days)	63,2070	66,6070	70,0472
	Profit margin (%)	12,7344	22,3433	30,1651
	Return on total assets (%)	7,0160	13,7724	25,9233
	Return on equity (%)	10,3399	23,3370	40,1221
	Total revenue per employee (x 1.000)	939,2664	1.219,2347	2.055,5256
	Profit per employee (x 1.000)	119,6095	272,4178	620,0513
	Equity per employee (x 1.000)	1.156,7712	1.167,3192	1.545,4103
	Total assets per employee (x 1.000)	1.704,8160	1.978	2.391,8718
	Staff costs/Turnover (%)	22,5905	16,3279	9,6164
	EBIT (x 1.000)	7.463,2600	79.707	130.919
	EBITDA (x 1.000)	15.102,8000	92.944	138.997
	EBIT Margin (%)	4,4089	31,0434	41,7410
	EBITDA Margin (%)	8,9220	36,1988	44,3165
Quarterly data	Currency: HRK ( x 1.000 )	2011.03.31	2010.03.31	%
	Sales in the country	20.753	9.532	217,72
	Sales abroad	8.297	18.800	44,13
	TOTAL REVENUES	30.366	30.300	100,22
	Raw material costs	7.692	4.340	177,24
	Sold goods costs	0	0
	other external costs	6.304	6.411	98,33
	Staff costs	9.854	11.472	85,90
	Depreciation	1.984	1.976	100,40
	TOTAL EXPENSES	28.242	27.193	103,86
	Inventories	32.608	35.458	91,96
	Cash at bank and in hand	24.039	43.894	54,77
	Receivables from clients	132.198	99.985	132,22
	Liabilities to suppliers	11.270	13.851	81,37
	Investments in fixed assets	111	668	16,62

Remarks	2006 import	HRK	12.095.869,00
	2007 import	HRK	21.825.507,00
	2008 import	HRK	43.149.895,00
	2009 import	HRK	33.247.232,00
	2010 import	HRK	25.213.015,00
	2006 export	HRK	15.648.271,00
	2007 export	HRK	20.918.070,00
	2008 export	HRK	97.456.476,00
	2009 export	HRK	63.414.404,00
	2010 export	HRK	111.061.852,00
	2006 profit	HRK	64.607.000,00
	2007 profit	HRK	56.691.000,00
	2008 profit	HRK	120.130.000,00
	2009 profit	HRK	72.895.000,00
	2010 profit	HRK	32.884.960,00

Subsidiaries
ITS GLOBAL d.o.o. (Statistic number: 2508249) Plešivička 3, 10431 Sveta Nedjelja, Croatia	100,00%
TELEGRA Inc. USA USA	100,00%

Short company name: TELEGRA d.o.o.

Translation: TELEGRA Ltd. for the projecting, manufacture, installation and maintenance of intelligent transport systems and telecommunications infrastructure

The company has problem collecting its own receivables, but solvency is not compromised.

Investments in:
- 2006: HRK 5.795.460,00
- 2007: HRK 42.816.187,00
- 2008: HRK 25.752.427,00
- 2009: HRK 4.404.257,00

Liabilities towards foreign suppliers:
- 2006-12-31: HRK 350.079,00
- 2007-12-31: HRK 1.147.425,00

Other functions and shares of Mr. Mladen Glad:
- DARIKA d.o.o., Zagreb - manager and establisher
- LUXAR AG d.d., Zagreb - vice-president
- AVORIO d.o.o., Zagreb - manager and establisher
- SOLARNA AVENIJA d.o.o., Stankovci - establisher

Bottom of Form

Exchange rate:
2006-12-31	EUR 1 = HRK 7,3451
2007-12-31	EUR 1 = HRK 7,3251
2008-12-31	EUR 1 = HRK 7,3244
2009-12-31	EUR 1 = HRK 7,3062
2010-12-31	EUR 1 = HRK 7,3852
Inflation:
2006:	3,2%
2007:	2,9%
2008:	6,4%
2009:	1,9%
2010:	1,1%

Bankers	CENTAR BANKA d.d. Jurisiceva 3, 10000 Zagreb, Croatia 2382001-1100009180
	RAIFFEISENBANK AUSTRIA d.d. Petrinjska 59, 10000 Zagreb, Croatia 2484008-1103411724
	ZAGREBACKA BANKA d.d. Paromlinska 2, 10000 Zagreb, Croatia 2360000-1101274249

Mode of payment

no complaints

Credit opinion

business connections are permissible

Max. credit EUR 800.000,00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.10
UK Pound	1	Rs.71.88
Euro	1	Rs.63.75

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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