MIRA INFORM REPORT

Report Date :

03.02.2012

IDENTIFICATION DETAILS

Name :	BORSODCHEM MCHZ, S.R.O.

Formerly Known As :	DARKIS, S.R.O

Registered Office :	Chemická 2039/1 709 03 Ostrava-Mariánské Hory

Country :	Czech Republic

Financials (as on) :	31.12.2010

Date of Incorporation :	15.12.1999

Com. Reg. No.:	C/22763

Legal Form :	Private Limited Company

Line of Business :	Manufacture and sale of products of organic and inorganic chemistry, of special amines, aniline, of cyclohexylamines.

No. of Employees :	356 employees

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	CZK 45 000 000
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 – September 30, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Czech Republic

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

Summary

BorsodChem MCHZ, s.r.o.

Chemická 2039/1
709 03 Ostrava-Mariánské Hory

telephone: 00420/ 596 641 111
telefax: 00420/ 596 626 258
e-mail: posta@bc-mchz.cz
Web: www.bc-mchz.cz

Credit limit

CZK 45 000 000,-
EUR 1 690 650,-


Legal form	Private limited company

Foundation	15/12/1999 - Private limited company Private limited company
Comp. Register	15/12/1999, Krajský soud České Budějovice, RegNr.: C/9376 13/07/2000, Krajský soud v Ostravě, RegNr.: C/22763 Statistical number: 26019388 Tax number: CZ26019388

Share Capital		15/12/1999		CZK	100 000,-
	04/05/2000		CZK			865 100 000,-

Shareholders	BorsodChem Zrt. 3702 Kazincbarcika, P.O.B.208, Bólyai tér 1, Hungary		CZK	865 100 000,-
Management		Ing. Přemysl Antecký, MBA (15.01.1959) Hlavní 45, 742 05 Vřesina Executive Manager sole power of attorney

	Mgr. Miroslava Jeřábková (15.10.1966) Horymírova 10/2973, 700 30 Ostrava, Zábřeh Executive Manager sole power of attorney
Supervisory Board	Jerzy Wiertelorz (19.02.1959) Akajcowa 24, 47220 Kedzierzyn-Kózle, Poland chairman

	Béla Varga (20.06.1961) 3702 Kazincbarcika, Herbolyai út. 33, Hungary
	Csaba Raisz (10.06.1978) 3529 Miskolc, Semmelweis Ignác utca 22, Hungary

General Data		Manufacture and sale of products of organic and inorganic chemistry, of special amines, aniline, of cyclohexylamines.
	Main activity: Manufacture of industrial gases		(20.11)

	Former name(s) DARKIS, s.r.o. Beginning of validity: 15.12.1999 End of validity: 02.02.2000
	BorsodChem - Moravské chemické závody, Ostrava, s.r.o. Beginning of validity: 02.02.2000 End of validity: 03.08.2000

	Trade name(s) BorsodChem MCHZ, s.r.o. Beginning of validity: 03.08.2000
Export: Hungary Slovakia		97%

	Import: Hungary Slovakia Poland

	Address: Chemická 2039/1, 709 03 Ostrava-Mariánské Hory Beginning of validity: 12.10.2002 telephone: 00420/ 596 641 111 telefax: 00420/ 596 626 258 e-mail: posta@bc-mchz.cz Web: www.bc-mchz.cz
	Hradčanská 495, 38701 Volyně Beginning of validity: 15.12.1999 End of validity: 31.05.2000

		Chemická 1, Ostrava - Mariánské Hory Beginning of validity: 31.05.2000 End of validity: 12.10.2002
Staff	2007		516 employees

	2008	407 employees
	2009	375 employees

	2010	360 employees
	2011	356 employees

Annual Sales	2005	actual sales	CZK	4 498 716 000,-
	2006	actual sales	CZK	5 199 531 000,-

	2007	actual sales	CZK	5 343 806 000,-
	2008	actual sales	CZK	4 273 005 000,-

	2009	actual sales	CZK	2 753 506 000,-
	2010	actual sales	CZK	4 563 044 000,-

Property	Property of the company: Business premises (verified in the real estate registry) CZ-709 03 Ostrava, Chemická 2039
Balance sheets	The enclosed balance of 2010 from business register, -. (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, -. (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)
Remarks	The company is a holder of ISO 9001 and ISO 14001 certificates.

	Business management: Ing. Přemysl Antecký, MBA – general director - 00420/ 596 642 000 Ing. Radek Šajtar – financial manager - 00420/ 596 643 000 Ing. Václav Novák, MBA – business director, phone: 00420/ 596 642 700 On May 31, 2003 Agreement on deposit of a part of enterprise has been concluded and, at the same time, it has come into force – it was concluded between the company BorsodChem MCHZ, s.r.o. and the company DUKOL Ostrava, s.r.o. By means of this agreement and by handing over of a part of enterprise, non-monetary deposit has been paid up for the purpose of increasing to share capital in the company DUKOL Ostrava, s.r.o. from the present amount of CZK 200.000,- by the amount of CZK 49.800.000,- to new value of the share capital amounting to CZK 50.000.000,-. On 29.10.2007, Agreement on sale of a part of enterprise has been concluded and it has entered into force on November 1, 2007. The parties involved were the companies BorsodChem MCHZ, s.r.o. as the sales company and the company MAINTEC s.r.o., IČ 26725495, as the purchaser company. Subject to this agreement was transfer of a part of enterprise defined as a part of enterprise – to be concrete – an independent organization unit "elektro a MaR" , which serves to secure all the activities connected with complex maintenance of electric appliance as well as of measuring and regulating appliances. On February 12, .2.2009, an Agreement on sale of a part of enterprise has been concluded between the company Borsod Chem MCHZ, s.r.o. as the sales company and the company Messer Technogas s.r.o., Praha 4, IČ 40764788 as the purchaser company. Subject to this agreement was transfer of the part of enterprise defined as a part of enterprise – independent organization unit “Manufacture of paradise gas” defined in the Art.. II. Of Agreement on sale of a part of enterprise. As of January 31, 2011, the complex of 100% of shares in mother company BorsodChem Zrt. have been assumed by Chinese chemical company Wanhua Industrial Group. Contact: ing. Orgoníková – chief accountant, phone: 00420/ 596 643 100, mobile phone: 00420/ 602 560 924
Bankers	Raiffeisenbank, a. s.	(5500)

	balance	31.12.2007 (CZK)	31.12.2008 (CZK)	31.12.2009 (CZK)	31.12.2010 (CZK)
r1	TOTAL ASSETS	3 286 917 000	2 665 185 000	2 811 875 000	2 942 140 000
r2	Receivables for subscriptions			0	0
r3	Fixed assets	2 221 120 000	2 128 700 000	2 034 320 000	1 897 082 000
r4	Intangible fixed assets	4 907 000	2 993 000	3 312 000	2 556 000
r5	Incorporation expenses			0	0
r6	Research and development			0	0
r7	Software	4 842 000	2 993 000	3 312 000	2 556 000
r8	Valuable rights			0	0
r9	Goodwill			0	0
r10	Other intangible fixed assets	65 000		0	0
r11	Intangible fixed assets under construction			0	0
r12	Advance payments for intangible fixed assets			0	0
r13	Tangible fixed assets	2 216 213 000	2 125 707 000	2 031 008 000	1 894 526 000
r14	Lands	98 722 000	98 722 000	98 722 000	101 596 000
r15	Constructions	1 002 746 000	956 953 000	910 409 000	871 171 000
r16	Equipment	1 187 010 000	1 097 611 000	1 049 506 000	899 805 000
r17	Perennial corps			0	0
r18	Breeding and draught animals			0	0
r19	Other tangible fixed assets	488 000	488 000	488 000	488 000
r20	Tangible fixed assets under construction	1 806 000	3 817 000	26 108 000	53 959 000
r21	Advance payments for tangible fixed assets		32 508 000	0	11 564 000
r22	Adjustment to acquired assets	-74 559 000	-64 392 000	-54 225 000	-44 057 000
r23	Long-term financial assets			0	0
r24	Shares in controlled and managed organizations			0	0
r25	Shares in accounting units with substantial influence			0	0
r26	Other securities and shares			0	0
r27	Loans to controlled and managed organizations and to accounting unit with substantial influence			0	0
r28	Other financial investments			0	0
r29	Financial investments acquired			0	0
r30	Advance payments for long-term financial assets			0	0
r31	Current assets	1 028 749 000	507 495 000	762 154 000	1 039 131 000
r32	Inventory	242 274 000	187 161 000	204 414 000	225 396 000
r33	Materials	115 996 000	110 227 000	110 889 000	135 222 000
r34	Work in progress and semi-products	18 743 000	26 905 000	18 692 000	15 855 000
r35	Finished products	107 240 000	50 029 000	68 487 000	65 897 000
r36	Animals			0	0
r37	Merchandise	295 000		0	0
r38	Advance payments for inventory			6 346 000	8 422 000
r39	Long-term receivables			3 600 000	2 800 000
r40	Trade receivables			3 600 000	2 800 000
r41	Receivables from controlled and managed organizations			0	0
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			0	0
r45	Estimated receivable			0	0
r46	Other receivables			0	0
r47	Deferred tax receivable			0	0
r48	Short-term receivables	649 232 000	289 252 000	457 745 000	593 004 000
r49	Trade receivables	550 762 000	225 553 000	369 461 000	483 802 000
r50	Receivables from controlled and managed organizations			0	0
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	88 343 000	61 766 000	85 734 000	105 358 000
r55	Short-term deposits given	747 000	175 000	143 000	438 000
r56	Estimated receivable	8 363 000		0	11 000
r57	Other receivables	1 017 000	1 758 000	2 407 000	3 395 000
r58	Short-term financial assets	137 243 000	31 082 000	96 395 000	217 931 000
r59	Cash	210 000	218 000	261 000	201 000
r60	Bank accounts	137 033 000	30 864 000	96 134 000	217 730 000
r61	Short-term securities and ownership interests			0	0
r62	Short-term financial assets acquired			0	0
r63	Accruals	37 048 000	28 990 000	15 401 000	5 927 000
r64	Deferred expenses	6 578 000	8 672 000	5 235 000	5 927 000
r65	Complex deferred costs	30 470 000	20 318 000	10 166 000	0
r66	Deferred income			0	0
r67	TOTAL LIABILITIES	3 286 917 000	2 665 185 000	2 811 875 000	2 942 140 000
r68	Equity	1 614 915 000	1 359 951 000	1 391 654 000	1 435 459 000
r69	Registered capital	865 100 000	865 100 000	865 100 000	865 100 000
r70	Registered capital	865 100 000	865 100 000	865 100 000	865 100 000
r71	Company’s own shares and ownership interests (-)			0	0
r72	Changes of registered capital ( +/- )			0	0
r73	Capital funds			0	0
r74	Share premium			0	0
r75	Other capital funds			0	0
r76	Differences from revaluation of assets and liabilities ( +/- )			0	0
r77	Differences from revaluation in transformation ( +/- )			0	0
r78	Reserve funds, statutory reserve account for cooperatives, and other retained earnings	41 808 000	45 078 000	45 077 000	46 703 000
r79	Legal reserve fund / indivisible fund	41 693 000	44 980 000	44 980 000	46 565 000
r80	Statutory and other funds	115 000	98 000	97 000	138 000
r81	Profit / loss - previous years	642 277 000	654 050 000	449 773 000	479 892 000
r82	Retained earnings from previous years	642 277 000	654 050 000	449 773 000	479 892 000
r83	Accumulated losses from previous years			0	0
r84	Profit / loss - current year (+/-)	65 730 000	-204 277 000	31 704 000	43 764 000
r85	Other sources	1 626 658 000	1 238 479 000	1 352 356 000	1 471 766 000
r86	Reserves	41 435 000	15 489 000	33 841 000	35 988 000
r87	Reserves under special statutory regulations	26 000	27 000	27 000	27 000
r88	Reserves for pension and similar payables			0	0
r89	Income tax reserves			0	0
r90	Other reserves	41 409 000	15 462 000	33 814 000	35 961 000
r91	Long-term payables	148 869 000	106 585 000	114 449 000	124 299 000
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
r101	Deferred tax liability	148 869 000	106 585 000	114 449 000	124 299 000
r102	Short-term payables	637 754 000	308 505 000	373 138 000	458 843 000
r103	Trade payables	579 361 000	260 458 000	336 712 000	423 271 000
r104	Payables to controlled and managed organizations			0	0
r105	Payables to accounting units with substantial influence			0	0
r106	Payables from partners, cooperative members and association members			0	0
r107	Payroll	11 467 000	9 182 000	8 476 000	8 410 000
r108	Payables to social securities and health insurance	5 612 000	4 864 000	4 760 000	5 042 000
r109	Due from state - tax liabilities and subsidies	3 323 000	1 955 000	2 040 000	2 133 000
r110	Short-term deposits received	947 000	1 617 000	993 000	1 603 000
r111	Issues bonds			0	0
r112	Estimated payables	37 044 000	8 791 000	9 373 000	13 248 000
r113	Other payables		21 638 000	10 784 000	5 136 000
r114	Bank loans and financial accommodations	798 600 000	807 900 000	830 928 000	852 636 000
r115	Long-term bank loans	798 600 000	807 900 000	793 950 000	815 285 000
r116	Short-term bank loans			36 978 000	37 351 000
r117	Short-term accommodations			0	0
r118	Accruals	45 344 000	66 755 000	67 865 000	34 915 000
r119	Accrued expenses		24 839 000	29 491 000	151 000
r120	Deferred revenues	45 344 000	41 916 000	38 374 000	34 764 000

	profit/loss account		31.12.2007 (CZK)		31.12.2008 (CZK)		31.12.2009 (CZK)		31.12.2010 (CZK)
a1	Turnover		5 343 806 000		4 273 005 000		2 753 506 000		4 563 044 000
a2	Revenues from sold goods		75 626 000		45 943 000		30 861 000		3 485 000
a3	Expenses on sold goods		66 184 000		48 915 000		26 290 000		3 398 000
a4	Sale margin		9 442 000		-2 972 000		4 571 000		87 000
a5	Production		5 245 896 000		4 179 106 000		2 740 033 000		4 555 558 000
a6	Revenues from own products and services		5 268 180 000		4 227 062 000		2 722 645 000		4 559 559 000
a7	Change in inventory of own products		-25 558 000		-49 224 000		10 842 000		-5 373 000
a8	Capitalization		3 274 000		1 268 000		6 546 000		1 372 000
a9	Production consumption		4 570 460 000		3 952 382 000		2 248 900 000		3 925 966 000
a10	Consumption of material and energy		4 228 212 000		3 629 012 000		1 958 895 000		3 549 819 000
a11	Services		342 248 000		323 370 000		290 005 000		376 147 000
a12	Added value		684 878 000		223 752 000		495 704 000		629 679 000
a13	Personnel expenses		253 871 000		218 323 000		194 355 000		196 241 000
a14	Wages and salaries		186 405 000		161 704 000		143 113 000		142 509 000
a15	Renumeration of board members		244 000		218 000		233 000		222 000
a16	Social security expenses and health insurance		62 530 000		52 362 000		47 751 000		50 554 000
a17	Other social expenses		4 692 000		4 039 000		3 258 000		2 956 000
a18	Taxes and fees		2 205 000		8 634 000		7 533 000		10 444 000
a19	Depreciations of intangible and tangible assets		199 690 000		157 176 000		153 140 000		160 234 000
a20	Revenues from disposals of fixed assets and materials		17 062 000		12 567 000		7 517 000		4 817 000
a21	Revenues from disposals of fixed assets		16 343 000		1 309 000		4 985 000		713 000
a22	Revenues from disposals of materials		719 000		11 258 000		2 532 000		4 104 000
a23	Net book value of disposed fixed assets and materials		4 172 000		20 028 000		2 433 000		4 230 000
a24	Net book value of sold fixed assets		3 534 000		129 000		4 000		467 000
a25	Net book value of sold material		638 000		19 899 000		2 429 000		3 763 000
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )		-152 100 000		-21 852 000		35 862 000		86 108 000
a27	Other operating revenues		17 420 000		24 378 000		19 665 000		19 773 000
a28	Other operating expenses		273 226 000		58 091 000		60 249 000		25 757 000
a29	Transfer of operating revenues						0		0
a30	Transfer of operating expenses						0		0
a31	Operating profit / loss		138 296 000		-179 703 000		69 314 000		171 255 000
a32	Revenues from sales of securities and ownership interests						0		0
a33	Sold securities and ownership interests						0		0
a34	Revenues from long-term financial assets						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
a39	Expenses associated with financial assets						0		0
a40	Revenues from revaluation of securities and derivatives						0		0
a41	Cost of revaluation of securities and derivatives				21 075 000		9 103 000		0
a42	Change in financial reserves and adjustments ( + / - )						0		0
a43	Interest revenues		901 000		1 597 000		113 000		26 000
a44	Interest expenses		42 590 000		54 841 000		42 765 000		44 761 000
a45	Other financial revenues		117 154 000		153 989 000		91 287 000		193 075 000
a46	Other financial expenses		101 625 000		146 528 000		67 459 000		265 981 000
a47	Transfer of financial revenues						0		0
a48	Transfer of financial expenses						0		0
a49	Profit / loss from financial operations ( transactions )		-26 160 000		-66 858 000		-27 927 000		-117 641 000
a50	Income tax on ordinary income		46 406 000		-42 284 000		7 864 000		9 850 000
a51	Due tax		46 406 000		-42 284 000		0		0
a52	Tax deferred						7 864 000		9 850 000
a53	Operating profit / loss ordinary activity		65 730 000		-204 277 000		33 523 000		43 764 000
a54	Extraordinary revenues						8 605 000		0
a55	Extraordinary expenses						10 424 000		0
a56	Income tax on extraordinary income						0		0
a57	Due tax						0		0
a58	Tax deferred						0		0
a59	Operating profit / loss extraordinary activity						-1 819 000		0
a60	Transfer profit ( loss ) to partners (+/-)						0		0
a61	Profit / loss of current accounting period (+/-)		65 730 000		-204 277 000		31 704 000		43 764 000
a62	Profit / loss before tax (+/-)		112 136 000		-246 561 000		39 568 000		53 614 000
	Receivables after due date total		28 259 000		33 017 000		97 104 000		25 503 000
	Receivables more than 180 days after due date		15 334 000		14 681 000		4 610 000		5 079 000
	Liabilities after due date total		0		0		0		0
Balance indices				31.12.2007		31.12.2008		31.12.2009		31.12.2010
Return on total assets ROA (in %)		a62/r1 * 100		3,41		-9,25		1,41		1,82
Return on equity ROE (in %)		a62/r68 * 100		6,94		-18,13		2,84		3,73
Return on sales ROS (in %)		a62/a1 * 100		2,10		-5,77		1,44		1,18
Turnover of receivables (in days)		r49/a1 * 365		37,62		19,27		48,98		38,70
Turnover of liabilities (in days)		r103/a1 * 365		39,57		22,25		44,63		33,86
Turnover of inventories (days)		r32/a1 * 365		16,55		15,99		27,10		18,03
Net working capital (in ths. CZK)		r31 - r102 - r116 - r117		390 995,00		198 990,00		352 038,00		542 937,00
Ratio of accounts payable to accounts receivable (in %)		(r39+r48) / (r91+r102) * 100		n/a		n/a		94,62		102,17
Ratio of profit/loss to tangible assets (in%)		r3 / a1 * 100		41,56		49,82		73,88		41,57
Current ratio		r31 / (r102+r116+r117)		n/a		n/a		1,86		2,09
Quick ratio		(r58+r48) / (r102+r116+r117)		1,23		1,04		1,35		1,63
Cash ratio		r58 / (r102+r116+r117)		n/a		n/a		0,23		0,44
Debt ratio I (in %)		(1-r68/r67) * 100		50,87		48,97		50,51		51,21
Debt ratio II (in %)		r85/r67 * 100		49,49		46,47		48,09		50,02

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.13
UK Pound	1	Rs.77.85
Euro	1	Rs.64.75

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%)

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.

MIRA INFORM REPORT

Summary

Unit