MIRA INFORM REPORT

Report Date :

08.12.2012

IDENTIFICATION DETAILS

Name :	PRATO, SPOL. S R.O.
Registered Office :	Nad Santoskou 23 150 00 Praha5
Country :	Czech Republic
Financials (as on) :	31.12.2009
Date of Incorporation :	10.01.1992
Reg. No.:	C/6757
Legal Form :	Private Limited Company
Line of Business :	Sale of Machinery, Industrial Equipment, Ships and Aircraft
No. of Employees :	35

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
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^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Czech Republic	A2	A2

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

Czech Republic - ECONOMIC OVERVIEW

The Czech Republic is a stable and prosperous market economy, which harmonized its laws and regulations with those of the EU prior to its EU accession in 2004. While the conservative, inward-looking Czech financial system has remained relatively healthy, the small, open, export-driven Czech economy remains sensitive to changes in the economic performance of its main export markets, especially Germany. When Western Europe and Germany fell into recession in late 2008, demand for Czech goods plunged, leading to double digit drops in industrial production and exports. As a result, real GDP fell 4.7% in 2009, with most of the decline occurring during the first quarter. Real GDP, however, has slowly recovered with positive quarter-on-quarter growth starting in the second half of 2009 and continuing throughout 2011. The auto industry remains the largest single industry, and, together with its upstream suppliers, accounts for nearly 24% of Czech manufacturing. The Czech Republic produced more than a million cars for the first time in 2010, over 80% of which were exported. Foreign and domestic businesses alike voice concerns about corruption especially in public procurement. Other long term challenges include dealing with a rapidly aging population, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.

Source : CIA

Company identification

PRATO, SPOL. S R.O.	telephone	00420/266 316 717
Nad Santoskou 23	telefax	00420/266 316 737
150 00 Praha5	e-mail	prato@prato.cz
Czech Republic	Web	www.prato.cz

Crefo Nr.	9210187525	Registration:	Mestsky soud v Praze
Statistical Nr.	44267185	Registration Nr.	C/6757
Tax Nr.	CZ44267185	Status	activ

Economic situation

Business connection	Business connections appear permissible
Terms of payment	no complaints

Basic information

Legal form

Private limited company

Founded

10/01/1992 as Private limited company

Registration

10/01/1992, Mestsky soud v Praze, C/6757 Statistical Nr.: 44267185 Tax Nr.: CZ44267185

Registered names

Valid from Trade name(s) Valid until

10/01/1992 PRATO, spol. s r.o.

Owners and Capital

Crefo Nr.	Name / Address / Status	From	Share
Shareholders
9210024143	Ing. Stanislav Mrazek (birth date 09/08/1961) Na Dolinach 21, 140 00 Praha 4 Czech Republic		200,000 CZK
Total capital			200,000 CZK

Registered Capital

Date	Currency	Value
10/01/1992	CZK	150,000
14/06/2010	CZK	200,000

Management

Crefo Nr.	Name / Address / Status	Since	Power of attorney
Management
9210024143	Executive Manager Ing. Stanislav Mrazek(birth date 09/08/1961) Na Dolinach 21, 140 00 Praha 4 Czech Republic		sole power of attorney

Company addresses

Valid from	Address	Valid until
10/01/1992	Nad Santoskou 23, 150 00 Praha 5, Czech Republic
Valid from	business locations	Valid until
	Ocelarska 18/900, 190 00 Praha 9, Czech Republic telephone: 00420/ 266 316 717 telefax: 00420/ 266 316 737 e-mail: prato@prato.cz Web: www.prato.cz

Business activities

Main activity	Nace
Additional activities	Nace
Agents involved in the sale of machinery, industrial equipment, ships and aircraft	46.14

Business activity, complete general repairs, repairs and modernizing \ of machines for forging industry, of forging mechanical presses, of \ trimming presses, calibration presses as well as of forging rams, \ construction and projection activity.

Export { Europe, Asia, USA, India, Thailand

Economic data

Turnover and Employees

Date	Turnover	Employees
2007	124,178,000 CZK
2008	110,285,000 CZK
2009	58,575,000 CZK	35
2011		35

Import/Export

	Import	Export
Percentage	Unknown	Unknown
Countries	Russia, Ukraine, Belorussia Unknown

Supplementary data

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. The company contrary to the Act on Accounting did not store its current final accounts to the Companies Register. The company does not provide its current final accounts even upon a direct request. The company was challenged to fulfil its duty to store its final account at the Companies Register.

Business management: Ing.

Stanislav Mrazek - company

diredtor phone: 00420/ 266 310 092, 00420/ 602 202 550

Ruzena Krucka - assistant of the

director phone: 00420/ 266 316 717, 00420/ 602 267 986

Dita Friede – ucetnl

E-Mail: ucetni@prato.cz,

phone: 00420/266 316 717

Banks

Code	Bank name / Address	Account Nr.
2700	UniCredit Bank Czech Republic, a.s.

Main indices

Payment experience and credit opinion

Terms of payment	no complaints	(39)
Business connection	Business connections appear permissible	(31)
Credit Limit	150,000	CZK
	5,814	EUR

Business development

Company development	Stagnant company development	(40)
Order situation	Retrograde order situation	(40)

Events

No negative events registered.

Balances Balance

Name	Ref.	31/12/2009 1000 CZK balance	31/12/2008 1000 CZK balance	31/12/2007 1000 CZK balance
TOTAL ASSETS	r1	111,858	112,960	114,726
Receivables for subscriptions	r2	0	0	0
Fixed assets	r3	40,120	49,666	47,928
Intangible fixed assets	r4	102	131	193
Incorporation expenses	r5	0	0	0
Research and development	r6	0	0	0
Software	r7	102	131	193
Valuable rights	r8	0	0	0
Goodwill	r9	0	0	0
Other intangible fixed assets	r10	0	0	0
Intangible fixed assets under construction	r11	0	0	0
Advance payments for intangible fixed assets	r12	0	0	0
Tangible fixed assets	r13	40,018	49,536	47,736
Lands	r14	7,143	7,143	7,143
Constructions	r15	22,218	23,944	23,685
Equipment	r16	10,656	18,449	16,908
Perennial corps	r17	0	0	0
Breeding and draught animals	r18	0	0	0
Other tangible fixed assets	r19	1	0	0
Tangible fixed assets under construction	r20	0	0	0
Advance payments for tangible fixed assets	r21	0	0	0
Adjustment to acquired assets	r22	0	0	0
Long-term financial assets	r23	0	0	0
Shares in controlled and managed organizations	r24	0	0	0
Shares in accounting units with substantial influence	r25	0	0	0
Other securities and shares	r26	0	0	0
Loans to controlled and managed organizations and to accounting unit with substantial influence	r27	0	0	0
Other financial investments	r28	0	0	0
Financial investments acquired	r29	0	0	0
Advance payments for long-term financial assets	r30	0	0	0
Current assets	r31	71,400	62,093	64,505
Inventory	r32	38,996	24,637	34,699
Materials	r33	0	0	0
Work in progress and semi-products	r34	21,591	16,353	9,133
Finished products	r35	0	0	0
Animals	r36	0	0	0
Merchandise	r37	17,405	8,284	25,565
Advance payments for inventory	r38	0	0	0
Trade receivables	R39	0	0	0

Name	Ref.	31/12/2009 1000 CZK balance	31/12/2008 1000 CZK balance	31/12/2007 1000 CZK balance
Trade receivables	r40	0	0	0
Receivables from controlled and managed organizations	r41	0	0	0
Receivables from accounting units with substantial influence	r42	0	0	0
Receivables from partners, cooperative members and association members	r43	0	0	0
Long-term deposits given	r44	0	0	0
Estimated receivable	r45	0	0	0
Other receivables	r46	0	0	0
Deferred tax receivable	r47	0	0	0
Short-term receivables	r48	14,038	12,052	12,568
Trade receivables	r49	4,612	11,275	9,850
Receivables from controlled and managed organizations	r50	0	0	0
Receivables from accounting units with substantial influence	r51	0	0	0
Receivables from partners, cooperative members and association members	r52	0	0	0
Receivables from social security and health insurance	r53	0	0	0
Due from state - tax receivable	r54	0	0	0
Short-term deposits given	r55	9,426	777	2,719
Estimated receivable	r56	0	0	0
Other receivables	r57	0	0	0
Short-term financial assets	r58	18,366	25,404	17,238
Cash	r59	146	348	332
Bank accounts	r60	18,220	25,056	16,907
Short-term securities and ownership interests	r61	0	0	0
Short-term financial assets acquired	r62	0	0	0
Accruals	r63	338	1,201	2,293
Deferred expenses	r64	338	1,201	2,293
Complex deferred costs	r65	0	0	0
Deferred income	r66	0	0	0
TOTAL LIABILITIES	r67	111,858	112,960	114,726
Equity	r68	52,481	63,974	66,103
Registered capital	r69	150	150	150
Registered capital	r70	150	150	150
Company's own shares and ownership interests (-)	r71	0	0	0
Changes of registered capital (+/-)	r72	0	0	0
Capital funds	r73	0	0	0
Share premium	r74	0	0	0

Name	Ref.	31/12/2009 1000 CZK balance	31/12/2008 1000 CZK balance	31/12/2007 1000 CZK balance
Differences from revaluation of assets and liabilities ( +/- )	r76	0	0	0
Differences from revaluation in transformation ( +/- )	r77	0	0	0
Diferences from tranformation of companies ( +/- )
Reserve funds, statutory reserve account for cooperatives, and other retained earnings	r78	15	15	15
Legal reserve fund / indivisible fund	r79	15	15	15
Statutory and other funds	r80	0	0	0
Profit / loss - previous years	r81	60,627	63,438	55,978
Retained earnings from previous years	r82	60,627	63,438	55,978
Accumulated losses from previous years	r83	0	0	0
Profit / loss - current year (+/-)	r84	-8,311	371	9,960
Liabilities	r85	59,377	48,986	48,624
Reserves	r86	0	0	0
Reserves under special statutory regulations	r87	0	0	0
Reserves for pension and similar payables	r88	0	0	0
Income tax reserves	r89	0	0	0
Other reserves	r90	0	0	0
Long-term payables	r91	0	0	0
Trade payables	r92	0	0	0
Payables to controlled and managed organizations	r93	0	0	0
Payables to accounting units with substantial influence	r94	0	0	0
Payables from partners, cooperative members and association members	r95	0	0	0
Long-term advances received	r96	0	0	0
Issues bonds	r97	0	0	0
Long-term notes payables	r98	0	0	0
Estimated payables	r99	0	0	0
Other payables	r100	0	0	0
Deferred tax liability	r101	0	0	0
Short-term payables	r102	37,645	25,433	25,905
Trade payables	r103	10,073	9,428	10,882
Payables to controlled and managed organizations	r104	0	0	0
Payables to accounting units with substantial influence	r105	0	0	0
Payables from partners, cooperative members and association members	r106	2,227	797	478
Payroll	r107	538	535	630

Name	Ref.	31/12/2009 1000 CZK balance	31/12/2008 1000 CZK balance	31/12/2007 1000 CZK balance
Due from state - tax liabilities and subsidies	r109	-2,070	-2,987	-1,301
Short-term deposits received	r110	26,456	17,086	14,717
Issues bonds	r111	0	0	0
Estimated payables	r112	0	17	52
Other payables	r113	0	0	0
Bank loans and financial accommodations	r114	21,732	23,553	22,719
Long-term bank loans	r115	21,732	23,553	22,719
Short-term bank loans	r116	0	0	0
Short-term accommodations	r117	0	0	0
Accruals	r118	0	0	-1
Accrued expenses	r119	0	0	-1
Deferred revenues	r120	0	0	0

Profit and loss accounts

Name	Ref.	31/12/2009 1000 CZK profit/loss account	31/12/2008 1000 CZK profit/loss account	31/12/2007 1000 CZK profit/loss account
Turnover	a1	58,575	110,582	124,178
Revenues from sold goods	a2	938	18,005	24,541
Expenses on sold goods	a3	75	10,898	17,819
Sale margin	a4	863	7,108	6,722
Production	a5	70,179	108,125	107,997
Revenues from own products and services	a6	57,637	92,577	99,637
Change in inventory of own products	a7	12,542	15,548	8,360
Capitalization	a8	0	0	0
Production consumption	a9	53,771	87,413	82,534
Consumption of material and energy	a10	32,146	58,938	59,149
Services	a11	21,625	28,475	23,385
Added value	a12	17,271	27,819	32,185
Personnel expenses	a13	13,298	13,248	9,947
Wages and salaries	a14	9,847	9,726	7,259
Renumeration of board members	a15	0	0	0
Social security expenses and health insurance	a16	3,250	3,323	2,525
Other social expenses	a17	201	198	163
Taxes and fees	a18	170	21	75
Depreciations of intangible and tangible assets	a19	10,316	10,892	7,450
Revenues from disposals of fixed assets and materials	a20	0	225	54
Revenues from disposals of fixed assets	a21	0	225	54

Name	Ref.	31/12/2009 1000 CZK profit/loss account	31/12/2008 1000 CZK profit/loss account	31/12/2007 1000 CZK profit/loss account
Revenues from disposals of materials	a22	0	0	0
Net book value of disposed fixed assets and materials	a23	0	2	37
Net book value of sold fixed assets	a24	0	2	37
Net book value of sold material	a25	0	0	0
Change in operating reserves and adjustments and complex deferred costs ( + / -)	a26	0	0	0
Other operating revenues	a27	0	0	2,510
Other operating expenses	a28	388	419	453
Transfer of operating revenues	a29	0	0	0
Transfer of operating expenses	a30	0	0	0
Operating profit / loss	a31	-6,901	3,462	16,787
Revenues from sales of securities and ownership interests	a32	0	0	0
Sold securities and ownership interests	a33	0	0	0
Revenues from long-term financial assets	a34	0	0	0
Revenues from shares in controlled and managed organizations and in accounting units with substantial influence	a35	0	0	0
Revenues from others securities and ownership interests	a36	0	0	0
Revenues from other long-term financial assets	a37	0	0	0
Revenues from short-term financial assets	a38	0	0	0
Expenses associated with financial assets	a39	0	0	0
Revenues from revaluation of securities and derivatives	a40	0	0	0
Cost of revaluation of securities and derivatives	a41	0	0	0
Change in financial reserves and adjustments ( + /-)	a42	0	0	0
Interest revenues	a43	113	78	102
Interest expenses	a44	1,258	1,489	1,537
Other financial revenues	a45	1,979	2,599	1,701
Other financial expenses	a46	1,926	3,962	3,749
Transfer of financial revenues	a47	0	0	0
Transfer of financial expenses	a48	0	0	0
Profit / loss from financial operations (transactions )	a49	-1,092	-2,774	-3,483
Income tax on ordinary income	a50	318	0	3,344
Due tax	a51	318	0	3,344
Tax deferred	a52	0	0	0
Operating profit / loss ordinary activity	a53	-8,311	689	9,960
Extraordinary revenues	a54	0	0	0
Extraordinary Expenses	A55	0	0	0

Name	Ref.	31/12/2009 1000 CZK profit/loss account	31/12/2008 1000 CZK profit/loss account	31/12/2007 1000 CZK profit/loss account
Income tax on extraordinary income	a56	0	0	0
Due tax	a57	0	0	0
Tax deferred	a58	0	0	0
Operating profit / loss extraordinary activity	a59	0	0	0
Transfer profit (loss ) to partners (+/-)	a60	0	0	0
Profit / loss of current accounting period (+/-)	a61	-8,311	689	9,960
Profit / loss before tax (+/-)	a62	-7,993	689	13,304
Operating cash flow
Investment cash flow
Financial cash flow
Receivables after due date total
Receivables more than 360 days after due date
Receivables more than 180 days after due date
Receivables more than 90 days after due date
Receivables more than 60 days after due date
Receivables more than 30 days after due date
Receivables less than 30 days after due date
Liabilities after due date total
Liabilities more than 360 days after due date
Liabilities more than 180 days after due date
Liabilities more than 90 days after due date
Liabilities more than 60 days after due date
Liabilities more than 30 days after due date
Liabilities less than 30 days after due date

Financial Ratios

Name	Ref.	31/12/2009	31/12/2008	31/12/2007
Return on total assets ROA (in %)	1	-7.15	0.61	11.60
Return on equity ROE (in %)	2	-15.23	1.08	20.13
Return on sales ROS (in %)	3	-13.65	0.62	10.71
Turnover of receivables (in days)	4	28.74	37.22	28.95
Turnover of liabilities (in days)	5	62.77	31.12	31.99
Turnover of inventories (days)	6	243.00	81.32	101.99
Net working capital (in ths. CZK)	7	33755.00	36660.00	38600.00
Ratio of accounts payable to accounts receivable (in %)	8	37.29	47.39	48.52
Ratio of profit/loss to tangible assets (in%)	9	68.49	44.91	38.60
Current ratio	10	1.90	2.44	2.49
Quick ratio	11	0.86	1.47	1.15
Cash ratio	12	0.49	1.00	0.67
Debt ratio I (in %)	13	53.08	43.37	42.38

Name	Ref.	31/12/2009	31/12/2008	31/12/2007
Debt ratio II (in %)	14	53.08	43.37	42.38

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.20
UK Pound	1	Rs.86.99
Euro	1	Rs.70.22

INFORMATION DETAILS

Report Prepared by :

SDA

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.