MIRA INFORM REPORT

Report Date :

06.09.2011

IDENTIFICATION DETAILS

Name :	AMMANN CZECH REPUBLIC A.S.
Registered Office :	Náchodská 145 , 549 01 Nové Město Nad Metují
Country :	Czech Republic
Financials (as on) :	31.12.2010
Date of Incorporation :	29.12.1990
Com. Reg. No.:	B/80
Legal Form :	Public Limited Company
Line of Business :	Development, manufacture and sale of compacting technology – rammers

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	CZK 9 000 000 EUR 338 130
Status :	Moderate
Payment Behaviour :	Unknown
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)
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 Bottom of Form

Ammann Czech Republic a.s.
Náchodská 145 
549 01 Nové Město nad Metují 
Telephone: 00420/ 491 476 111
Telefax: 00420/ 491 470 405 
E-Mail: info@ammann-group.cz
Web: www.ammann-group.cz

Company summary

Company development

Stagnant company development

Order situation	Satisfactory course of business
Terms of payment	mostly within agreed terms, but partly also delayed

Business connection	Business connections appear permissible
Credit limit		CZK 9 000 000,- EUR 338 130,-

Legal form

Public limited company

Foundation	29/12/1990 - Public limited company
Comp. Register	29/12/1990, Krajský soud Hradec Králové, RegNr.: B/80 Statistical number: 00008753 Tax number: CZ00008753

Share Capital	13/04/1993	CZK	493 699 000,-
	02/12/1994	CZK	202 416 590,-

03/12/1997	CZK	232 416 700,-
11/11/1998	CZK	348 625 050,-

25/09/2009	CZK	748 625 050,-
20/08/2010	CZK	978 000 050,-

566 870 pc of nominative shares in documentary form at nominal value

of CZK 410,-

566 870 pc of nominative shares in documentary form at nominal value

of CZK 205,-

1 pc of common nominative shares in documentary form at nominal value

of CZK 400 000 000,-

1 pc of common nominative shares in documentary form at nominal value

of CZK 229 375 000,-

Main Shareholder	Ammann Bau Ausrüstung AG Eisenbahnstr. 25, 4900 Langenthal, Switzerland		%	100
Board of Directors		Christian Stryffeler (19.03.1964) Gerstenweg 16, 3400 Burgdorf, Switzerland chairman  sole power of attorney

Ing. Jiří Špaňhel (01.07.1966)
Struha 868, 517 54 Vamberk 
vice-chairman 
joint power of attorney

Ing. Petr Kaláb (13.07.1961)
Přibyslavská 687, 549 01 Nové Město nad Metují 
joint power of attorney

Supervisory Board	Markus Degen (10.05.1969) Ob. Vorstadt 26, 5000 Aarau, Switzerland chairman
	JUDr. Pavel Koukal (29.09.1966) Milovická 199/5, 198 00 Praha 9, Hloubětín

	Josef Dušek (06.05.1971) Václavická 1212, 547 01 Náchod
General Data	Development, manufacture and sale of compacting technology – rammers

68 - 83 kg, both-side vibrating rammers 54 - 750 kg, ditch rollers

1.4 - 1.5 t, manually controlled rollers 700 - 720 kg, tandem and

combined rollers 1 - 12 t, tractor rollers 2 - 25 t, tyre rollers

9.35 - 9.9 t.

Main activity: Manufacture of machinery for mining, quarrying and construction
	Former name(s) STAVOSTROJ, a.s.  Beginning of validity: 29.12.1990 End of validity: 06.12.2005

	Trade name(s) Ammann Czech Republic a.s.
Export: Australia Finland Germany Switzerland Ukraine USA		95%

Import: Denmark France Germany Great Britain Italy Switzerland

65%

Address:
Náchodská 145, 549 01 Nové Město nad Metují 
telephone:
00420/ 491 476 111
telefax:
00420/ 491 470 405 
e-mail:
info@ammann-group.cz
Web:
www.ammann-group.cz

549 01 Nové Město nad Metují 
Beginning of validity: 29.12.1990
End of validity: 02.09.1998

		Náchodská ul., 549 01 Nové Město nad Metují  Beginning of validity: 02.09.1998 End of validity: 14.11.2001
Staff	2009		568 employees

2010	498 employees
2011	520 employees

Annual Sales	2005	actual sales	CZK	1 353 192 000,-
	2006	actual sales	CZK	1 788 329 000,-

2007	actual sales	CZK	2 433 797 000,-
2008	actual sales	CZK	1 886 476 000,-

2009	actual sales	CZK	833 937 000,-
2010	actual sales	CZK	1 251 010 000,-

Balance sheets	The enclosed balance of 2010 from business register, it is authenticated by the auditor. (31.12.2010 - 1 CZK) 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 profit/loss account of 2010 from business register, it is authenticated by the auditor. (31.12.2010 - 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. (31.12.2008 - 1 CZK) The enclosed profit/loss account of 2007. (31.12.2007 - 1 CZK)

Auditor	Ernst & Young Audit, s.r.o. (Statistical number: 26704153) Karlovo náměstí 10, 120 00 Praha 2
Remarks		All the sources of negative data accessible to public (insolvency registers, databases of debtors of health insurance institutions, commercial bulletin, collection database of Creditreform and others) are currently monitored.

Business management:

Ing. Jiří Špaňhel - general director

Ing. Jiří Dvořák - technical director

Ing. Petr Kaláb - financial director, phone: 00420/ 491 476 250

Ing. Ivana Kroiherová - chief for economic information,

phone: tel: 00420/ 491 476 267

Bankers

Citibank Europe plc, organizační složka  Komerční banka, a.s.  UniCredit Bank Czech Republic, a.s.  Deutsche Bank Aktiengesellschaft Filiale Prag, organizační složka

Balance sheet

	Balance	31.12.2007 (CZK)	31.12.2008 (CZK)	31.12.2009 (CZK)	31.12.2010 (CZK)
r1	TOTAL ASSETS	1 610 186 000	1 994 243 000	1 467 925 000	1 481 587 000
r2	Receivables for subscriptions	0	0	0	0
r3	Fixed assets	452 570 000	546 540 000	577 606 000	534 315 000
r4	Intangible fixed assets	5 063 000	5 836 000	21 357 000	22 093 000
r5	Incorporation expenses	0
r6	Research and development	0
r7	Software	4 943 000	4 426 000	1 954 000	17 668 000
r8	Valuable rights	86 000	111 000
r9	Goodwill	0
r10	Other intangible fixed assets	0	981 000	1 417 000	4 425 000
r11	Intangible fixed assets under construction	34 000	318 000	17 986 000
r12	Advance payments for intangible fixed assets	0
r13	Tangible fixed assets	447 507 000	540 704 000	556 249 000	512 222 000
r14	Lands	23 332 000	23 332 000	23 332 000	23 332 000
r15	Constructions	168 822 000	228 894 000	245 504 000	234 947 000
r16	Equipment	141 634 000	279 268 000	287 231 000	253 567 000
r17	Perennial corps	0
r18	Breeding and draught animals	0
r19	Other tangible fixed assets	14 000	14 000
r20	Tangible fixed assets under construction	104 201 000	9 095 000	182 000	376 000
r21	Advance payments for tangible fixed assets	9 504 000	101 000
r22	Adjustment to acquired assets	0
r23	Long-term financial assets	0	0	0	0
r24	Shares in controlled and managed organizations	0
r25	Shares in accounting units with substantial influence	0
r26	Other securities and shares	0
r27	Loans to controlled and managed organizations and to accounting unit with substantial influence	0
r28	Other financial investments	0
r29	Financial investments acquired	0
r30	Advance payments for long-term financial assets	0
r31	Current assets	1 155 373 000	1 446 146 000	889 534 000	946 476 000
r32	Inventory	543 131 000	1 015 815 000	642 849 000	536 711 000
r33	Materials	224 518 000	292 930 000	271 180 000	175 600 000
r34	Work in progress and semi-products	230 351 000	117 321 000	79 894 000	137 211 000
r35	Finished products	73 620 000	583 606 000	270 380 000	211 083 000
r36	Animals	0
r37	Merchandise	14 642 000	21 958 000	21 272 000	12 817 000
r38	Advance payments for inventory	0		123 000
r39	Long-term receivables	8 692 000	0	0	0
r40	Trade receivables	0
r41	Receivables from controlled and managed organizations	0
r42	Receivables from accounting units with substantial influence	0
r43	Receivables from partners, cooperative members and association members	0
r44	Long-term deposits given	251 000
r45	Estimated receivable	0
r46	Other receivables	0
r47	Deferred tax receivable	8 441 000
r48	Short-term receivables	596 965 000	426 960 000	224 603 000	380 322 000
r49	Trade receivables	546 534 000	383 694 000	215 849 000	358 168 000
r50	Receivables from controlled and managed organizations	0
r51	Receivables from accounting units with substantial influence	0
r52	Receivables from partners, cooperative members and association members	0
r53	Receivables from social security and health insurance	0
r54	Due from state - tax receivable	48 299 000	38 979 000	7 388 000	20 136 000
r55	Short-term deposits given	187 000	240 000	300 000	369 000
r56	Estimated receivable	266 000	2 054 000	240 000	62 000
r57	Other receivables	1 679 000	1 993 000	826 000	1 587 000
r58	Short-term financial assets	6 585 000	3 370 000	22 082 000	29 443 000
r59	Cash	987 000	667 000	596 000	626 000
r60	Bank accounts	5 598 000	2 703 000	21 486 000	28 817 000
r61	Short-term securities and ownership interests	0
r62	Short-term financial assets acquired	0
r63	Accruals	2 243 000	1 557 000	785 000	796 000
r64	Deferred expenses	2 243 000	1 555 000	785 000	796 000
r65	Complex deferred costs	0
r66	Deferred income	0	2 000
r67	TOTAL LIABILITIES	1 610 186 000	1 994 243 000	1 467 925 000	1 481 587 000
r68	Equity	437 146 000	203 265 000	294 899 000	461 827 000
r69	Registered capital	348 625 000	348 625 000	748 625 000	978 000 000
r70	Registered capital	348 625 000	348 625 000	748 625 000	978 000 000
r71	Company’s own shares and ownership interests (-)	0
r72	Changes of registered capital ( +/- )	0
r73	Capital funds	592 000	592 000	592 000	592 000
r74	Share premium	0
r75	Other capital funds	592 000	592 000	592 000	592 000
r76	Differences from revaluation of assets and liabilities ( +/- )	0
r77	Differences from revaluation in transformation ( +/- )	0
r78	Reserve funds, statutory reserve account for cooperatives, and other retained earnings	31 929 000	34 629 000	34 629 000	34 629 000
r79	Legal reserve fund / indivisible fund	31 115 000	33 815 000	33 815 000	33 815 000
r80	Statutory and other funds	814 000	814 000	814 000	814 000
r81	Profit / loss - previous years	2 501 000	3 301 000	-180 581 000	-488 948 000
r82	Retained earnings from previous years	85 909 000	86 709 000	86 709 000	86 709 000
r83	Accumulated losses from previous years	-83 408 000	-83 408 000	-267 290 000	-575 657 000
r84	Profit / loss - current year (+/-)	53 499 000	-183 882 000	-308 366 000	-62 446 000
r85	Other sources	1 162 943 000	1 778 055 000	1 168 383 000	1 015 851 000
r86	Reserves	30 759 000	40 926 000	17 941 000	16 013 000
r87	Reserves under special statutory regulations	0
r88	Reserves for pension and similar payables	2 650 000	2 650 000
r89	Income tax reserves	6 411 000
r90	Other reserves	21 698 000	38 276 000	17 941 000	16 013 000
r91	Long-term payables	0	0	0	0
r92	Trade payables	0
r93	Payables to controlled and managed organizations	0
r94	Payables to accounting units with substantial influence	0
r95	Payables from partners, cooperative members and association members	0
r96	Long-term advances received	0
r97	Issues bonds	0
r98	Long-term notes payables	0
r99	Estimated payables	0
r100	Other payables	0
r101	Deferred tax liability	0
r102	Short-term payables	439 702 000	1 416 287 000	1 150 442 000	999 838 000
r103	Trade payables	376 685 000	243 395 000	75 780 000	236 395 000
r104	Payables to controlled and managed organizations	0	1 072 640 000	1 044 873 000	732 926 000
r105	Payables to accounting units with substantial influence	0
r106	Payables from partners, cooperative members and association members	0
r107	Payroll	11 404 000	13 108 000	9 299 000	10 076 000
r108	Payables to social securities and health insurance	6 065 000	6 052 000	4 452 000	5 431 000
r109	Due from state - tax liabilities and subsidies	1 485 000	2 367 000	2 435 000	5 649 000
r110	Short-term deposits received	6 371 000	4 140 000	12 000
r111	Issues bonds	0
r112	Estimated payables	28 947 000	9 745 000	4 978 000	6 323 000
r113	Other payables	8 745 000	64 840 000	8 613 000	3 038 000
r114	Bank loans and financial accommodations	692 482 000	320 841 000	0	0
r115	Long-term bank loans	800 000	0	0	0
r116	Short-term bank loans	691 682 000	320 841 000	0	0
r117	Short-term accommodations	0	0	0	0
r118	Accruals	10 097 000	12 923 000	4 643 000	3 909 000
r119	Accrued expenses	841 000	823 000
r120	Deferred revenues	9 256 000	12 100 000	4 643 000	3 909 000
	profit/loss account	31.12.2007 (CZK)	31.12.2008 (CZK)	31.12.2009 (CZK)	31.12.2010 (CZK)
a1	Turnover	2 433 797 000	1 886 476 000	833 937 000	1 251 010 000
a2	Revenues from sold goods	74 276 000	70 237 000	49 599 000	65 593 000
a3	Expenses on sold goods	47 085 000	39 195 000	25 870 000	45 934 000
a4	Sale margin	27 191 000	31 042 000	23 729 000	19 659 000
a5	Production	2 455 499 000	2 220 326 000	516 731 000	1 143 300 000
a6	Revenues from own products and services	2 359 521 000	1 816 239 000	784 338 000	1 185 417 000
a7	Change in inventory of own products	86 914 000	395 573 000	-289 103 000	-47 725 000
a8	Capitalization	9 064 000	8 514 000	21 496 000	5 608 000
a9	Production consumption	2 092 745 000	2 008 610 000	485 219 000	1 007 040 000
a10	Consumption of material and energy	1 920 429 000	1 848 569 000	385 621 000	890 750 000
a11	Services	172 316 000	160 041 000	99 598 000	116 290 000
a12	Added value	389 945 000	242 758 000	55 241 000	155 919 000
a13	Personnel expenses	233 450 000	254 434 000	206 195 000	194 726 000
a14	Wages and salaries	168 330 000	185 302 000	156 083 000	142 365 000
a15	Renumeration of board members	642 000	662 000	386 000
a16	Social security expenses and health insurance	58 928 000	62 408 000	45 235 000	47 279 000
a17	Other social expenses	5 550 000	6 062 000	4 491 000	5 082 000
a18	Taxes and fees	1 222 000	1 227 000	1 356 000	2 359 000
a19	Depreciations of intangible and tangible assets	32 721 000	45 266 000	57 773 000	57 015 000
a20	Revenues from disposals of fixed assets and materials	24 821 000	23 875 000	7 706 000	19 904 000
a21	Revenues from disposals of fixed assets	9 756 000	6 362 000	2 811 000	10 863 000
a22	Revenues from disposals of materials	15 065 000	17 513 000	4 895 000	9 041 000
a23	Net book value of disposed fixed assets and materials	14 162 000	17 531 000	9 134 000	17 389 000
a24	Net book value of sold fixed assets	168 000		4 546 000	8 276 000
a25	Net book value of sold material	13 994 000	17 531 000	4 588 000	9 113 000
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )	6 100 000	3 340 000	52 884 000	-51 265 000
a27	Other operating revenues	245 143 000	214 028 000	55 300 000	22 588 000
a28	Other operating expenses	246 925 000	224 483 000	49 980 000	21 189 000
a29	Transfer of operating revenues	0
a30	Transfer of operating expenses	0
a31	Operating profit / loss	125 329 000	-65 620 000	-259 075 000	-43 002 000
a32	Revenues from sales of securities and ownership interests	0
a33	Sold securities and ownership interests	0
a34	Revenues from long-term financial assets	0
a35	Revenues from shares in controlled and managed organizations and in accounting units with substantial influence	0
a36	Revenues from others securities and ownership interests	0
a37	Revenues from other long-term financial assets	0
a38	Revenues from short-term financial assets	0
a39	Expenses associated with financial assets	0
a40	Revenues from revaluation of securities and derivatives	0
a41	Cost of revaluation of securities and derivatives	0
a42	Change in financial reserves and adjustments ( + / - )	0
a43	Interest revenues	267 000	346 000	32 000	5 000
a44	Interest expenses	24 932 000	60 630 000	46 374 000	24 866 000
a45	Other financial revenues	68 869 000	152 507 000	83 483 000	32 208 000
a46	Other financial expenses	102 309 000	202 687 000	86 411 000	26 791 000
a47	Transfer of financial revenues	0
a48	Transfer of financial expenses	0
a49	Profit / loss from financial operations ( transactions )	-58 105 000	-110 464 000	-49 270 000	-19 444 000
a50	Income tax on ordinary income	13 725 000	7 798 000	21 000	0
a51	Due tax	9 468 000	-643 000	21 000
a52	Tax deferred	4 257 000	8 441 000
a53	Operating profit / loss ordinary activity	53 499 000	-183 882 000	-308 366 000	-62 446 000
a54	Extraordinary revenues	0
a55	Extraordinary expenses	0
a56	Income tax on extraordinary income	0
a57	Due tax	0
a58	Tax deferred	0
a59	Operating profit / loss extraordinary activity	0	0	0	0
a60	Transfer profit ( loss ) to partners (+/-)	0
a61	Profit / loss of current accounting period (+/-)	53 499 000	-183 882 000	-308 366 000	-62 446 000
a62	Profit / loss before tax (+/-)	67 224 000	-176 084 000	-308 345 000	-62 446 000
	Operating cash flow	-120 243 000	-521 736 000	57 541 000	98 057 000
	Investment cash flow	-206 264 000	-132 478 000	-90 221 000	-8 124 000
	Financial cash flow	326 021 000	650 999 000	51 392 000	-82 572 000
	Receivables more than 180 days after due date	2 864 000	7 662 000	42 855 000	25 370 000
	Liabilities more than 180 days after due date	151 000	222 000	27 000	13 000

Balance indices		31.12.2007	31.12.2008	31.12.2009	31.12.2010
Return on total assets ROA (in %)	a62/r1 * 100	4,17	-8,83	-21,01	-4,21
Return on equity ROE (in %)	a62/r68 * 100	15,38	-86,63	-104,56	-13,52
Return on sales ROS (in %)	a62/a1 * 100	2,76	-9,33	-36,97	-4,99
Turnover of receivables (in days)	r49/a1 * 365	81,96	74,24	94,47	104,50
Turnover of liabilities (in days)	r103/a1 * 365	56,49	47,09	33,17	68,97
Turnover of inventories (days)	r32/a1 * 365	81,45	196,54	281,36	156,59
Net working capital (in ths. CZK)	r31 - r102 - r116 - r117	23 989,00	-290 982,00	-260 908,00	-53 362,00
Ratio of accounts payable to accounts receivable (in %)	(r39+r48) / (r91+r102) * 100	137,74	30,15	19,52	38,04
Ratio of profit/loss to tangible assets (in%)	r3 / a1 * 100	18,60	28,97	69,26	42,71
Current ratio	r31 / (r102+r116+r117)	1,02	0,83	0,77	0,95
Quick ratio	(r58+r48) / (r102+r116+r117)	0,53	0,25	0,21	0,41
Cash ratio	r58 / (r102+r116+r117)	0,01	0,00	0,02	0,03
Debt ratio I (in %)	(1-r68/r67) * 100	72,85	89,81	79,91	68,83
Debt ratio II (in %)	r85/r67 * 100	72,22	89,16	79,59	68,57

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.94
UK Pound	1	Rs.74.28
Euro	1	Rs.64.97

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.