MIRA INFORM REPORT

Report Date :

18.02.2012

IDENTIFICATION DETAILS

Name :	BAG SOLUTIONS WORLDWIDE S.R.O.

Registered Office :	Kralický Háj 357 798 12 Kralice na Hané

Country :	Czech Republic

Financials (as on) :	31.12.2009

Date of Incorporation :	26.10.2005

Com. Reg. No.:	C/50089

Legal Form :	Private Limited Company

Line of Business :	Manufacture of other general-purpose machinery

No. of Employees :	85 employees

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Poor
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 – 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

Company name and address

Bag Solutions Worldwide s.r.o.

Kralický Háj 357
798 12 Kralice na Hané

telephone: 00420/ 582 305 010
telefax: 00420/ 582 305 033
e-mail: office@bswtex.cz
Web: www.bswtex.cz

Summary

Company development

Stagnant company development

(40)

Order situation	Satisfactory order situation	(30)
Terms of payment	with delays, partly reminders of open invoices	(42)

Business connection

Credits require securities

(42)


Legal form	Private limited company

Foundation	26/10/2005 - Private limited company
Comp. Register	26/10/2005, Krajský soud v Brně, RegNr.: C/50089 Statistical number: 27664066 Tax number: CZ27664066

Share Capital	26/10/2005	CZK	13 645 000,-
Shareholders	Windmöller & Hölscher GmbH Münsterstrasse 50, 495 25 Lengerich, Germany	CZK	10 267 000,-

	Ing. Günter Wais (24.03.1960) Franz Loidl Str. 10, 1220 Wien, Austria	CZK	1 126 000,-
	Ing. Peter Schmalholz (23.06.1960) Strandstr. 111, 2331 Vösendorf, Austria	CZK	1 126 000,-

	Thomas Breitenberger (13.09.1969) Hainfelder Str. 23, 2563 Pottenstein, Austria		CZK	1 126 000,-
Management		Theodor Josef Determann (16.03.1970) Bergstrasse 34, 495 25 Lengerich, Germany Executive Manager joint power of attorney

	Thomas Breitenberger (13.09.1969) Hainfelder Str. 23, 2563 Pottenstein, Austria Executive Manager joint power of attorney
	Ing. Peter Schmalholz (23.06.1960) Strandstr. 111, 2331 Vösendorf, Austria confidential clerk joint power of attorney

	Ing. Günter Wais (24.03.1960) Franz Loidl Str. 10, 1220 Wien, Austria confidential clerk joint power of attorney
General Data	Development and manufacture of machines and equipment for flexible packing material production from polypropylene tissue. Export: 100% whole world

Main activity: Manufacture of other general-purpose machinery n.e.c.		(28.29)
	Trade name(s) Bag Solutions Worldwide s.r.o. Beginning of validity: 26.10.2005

	Import: European Union

	Address: - vedení, kanceláře, výroba Kralický Háj 357, 798 12 Kralice na Hané Beginning of validity: 21.12.2011 telephone: 00420/ 582 305 010 telefax: 00420/ 582 305 033 e-mail: office@bswtex.cz Web: www.bswtex.cz
	Příkop 4, 602 00 Brno Beginning of validity: 26.10.2005 End of validity: 18.04.2006

		Háj 357, 798 12 Kralice na Hané Beginning of validity: 18.04.2006 End of validity: 21.12.2011
Staff	2006		20 employees

	2007	33 employees
	2008	42 employees

	2009	52 employees
	2010	60 employees

	2011	78 employees
	2012	85 employees

Annual Sales	2005	actual sales	CZK	0,-
	2006	actual sales	CZK	89 586 000,-

	2007	actual sales	CZK	323 750 000,-
	2008	actual sales	CZK	648 946 000,-

	2009	actual sales	CZK	630 769 000,-
	2010	actual sales	CZK	1 000 000 000,-

	Turnover for the year 2011 should reach the level of the year 2010.
Property	none

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, it is authenticated by the auditor. (31.12.2008 - 1 CZK) The enclosed profit/loss account of 2007 from business register, -. (31.12.2007 - 1 CZK) The enclosed profit/loss account of 2006. (31.12.2006 - 1 CZK)

Balance sheets		The final accounts for the year 2010 are not available yet.
Auditor	D.R.M. Europe / Brno /, a.s. (Statistical number: 13693867) IBC - Příkop 4, 60200 Brno

Remarks

The company contrary to the Act on Accounting did not store its current
final accounts to the Companies Register.

The company was challenged to fulfil its duty to store its final account at the Companies Register.

We have asked the firm management in written form to send final account.
In case that we receive account statements, we will send you a.

All the sources of negative data accessible to public (insolvency registers, databases of debtors of health insurance institutions, commercial bulletin, and others) are currently monitored.

In January 2009 there was remission of obligations amounting to EUR 930 thousand from the part of the controlling subject Windmöller & Hölscher KG towards the inquired company; this amount has been deduced from other production revenues.

The inquired company has taken up its activities in 2006.

Contact:
M. Latýn – economist, phone: 00420/ 582 305 019
e-mail: m.latyn@bswtex.cz

Bankers

Československá obchodní banka, a. s.

Deutsche Bank Aktiengesellschaft Filiale Prag, organizační složka

(0300)

(7910)

Financials

	balance	31.12.2006 (CZK)	31.12.2007 (CZK)	31.12.2008 (CZK)	31.12.2009 (CZK)
r1	TOTAL ASSETS	75 399 000	261 244 000	264 180 000	365 405 000
r2	Receivables for subscriptions	0	0	0	0
r3	Fixed assets	23 307 000	30 107 000	27 426 000	23 146 000
r4	Intangible fixed assets	4 827 000	6 106 000	9 816 000	9 626 000
r5	Incorporation expenses		524 000	344 000	164 000
r7	Software			10 000
r11	Intangible fixed assets under construction		5 582 000	9 462 000	9 462 000
r13	Tangible fixed assets	16 415 000	22 002 000	15 588 000	11 532 000
r14	Lands		0	0	0
r15	Constructions		0	0	0
r16	Equipment		22 002 000	15 542 000	11 362 000
r20	Tangible fixed assets under construction			46 000	170 000
r23	Long-term financial assets	2 065 000	1 999 000	2 022 000	1 988 000
r24	Shares in controlled and managed organizations		1 999 000	2 022 000	1 988 000
r31	Current assets	52 087 000	230 912 000	236 674 000	341 782 000
r32	Inventory	28 510 000	102 298 000	122 802 000	133 602 000
r33	Materials		51 265 000	73 834 000	83 423 000
r34	Work in progress and semi-products		43 623 000	43 541 000	48 665 000
r35	Finished products		7 410 000	5 427 000	1 514 000
r39	Long-term receivables	0	0	0	30 664 000
r40	Trade receivables				3 978 000
r41	Receivables from controlled and managed organizations				26 686 000
r48	Short-term receivables	10 239 000	102 205 000	97 886 000	135 175 000
r49	Trade receivables	374 000	83 002 000	56 232 000	72 261 000
r50	Receivables from controlled and managed organizations		8 078 000	16 607 000	44 795 000
r54	Due from state - tax receivable		2 576 000	2 957 000	3 857 000
r55	Short-term deposits given		8 439 000	22 083 000	14 262 000
r57	Other receivables		110 000	7 000
r58	Short-term financial assets	13 338 000	26 409 000	15 986 000	42 341 000
r59	Cash		14 000	1 000	16 000
r60	Bank accounts		26 395 000	15 985 000	42 325 000
r63	Accruals	5 000	225 000	80 000	477 000
r64	Deferred expenses		9 000	80 000	28 000
r66	Deferred income		216 000		449 000
r67	TOTAL LIABILITIES	75 399 000	261 244 000	264 180 000	365 405 000
r68	Equity	9 686 000	-28 517 000	-10 090 000	-3 398 000
r69	Registered capital	13 645 000	13 645 000	13 645 000	13 645 000
r70	Registered capital		13 645 000	13 645 000	13 645 000
r73	Capital funds	-160 000	-226 000	-203 000	-238 000
r76	Differences from revaluation of assets and liabilities ( +/- )		-226 000	-203 000	-238 000
r78	Reserve funds, statutory reserve account for cooperatives, and other retained earnings	0	0	0	682 000
r79	Legal reserve fund / indivisible fund				682 000
r81	Profit / loss - previous years	-3 501 000	-3 799 000	-41 936 000	-24 215 000
r83	Accumulated losses from previous years		-3 799 000	-41 936 000	-24 215 000
r84	Profit / loss - current year (+/-)	-298 000	-38 137 000	18 404 000	6 728 000
r85	Other sources	49 206 000	286 421 000	271 225 000	368 787 000
r86	Reserves	937 000	2 200 000	14 744 000	27 377 000
r89	Income tax reserves				4 968 000
r90	Other reserves		2 200 000	14 744 000	22 409 000
r91	Long-term payables	32 870 000	31 824 000	32 195 000	31 639 000
r93	Payables to controlled and managed organizations		31 824 000	32 195 000	31 639 000
r102	Short-term payables	15 399 000	197 516 000	172 266 000	245 523 000
r103	Trade payables	10 558 000	151 638 000	28 004 000	47 188 000
r104	Payables to controlled and managed organizations		14 015 000	129 200 000	141 857 000
r106	Payables from partners, cooperative members and association members		3 000	3 000	3 000
r107	Payroll		1 357 000	1 310 000	1 962 000
r108	Payables to social securities and health insurance		691 000	936 000	1 000 000
r109	Due from state - tax liabilities and subsidies		468 000	257 000	461 000
r110	Short-term deposits received		29 338 000	12 556 000	46 430 000
r112	Estimated payables				6 622 000
r113	Other payables		6 000
r114	Bank loans and financial accommodations	0	54 881 000	52 020 000	64 248 000
r115	Long-term bank loans	0	54 881 000	52 020 000	64 248 000
r116	Short-term bank loans	0	0	0	0
r117	Short-term accommodations	0	0	0	0
r118	Accruals	16 507 000	3 340 000	3 045 000	16 000
r119	Accrued expenses		3 340 000	3 045 000	16 000
	profit/loss account	31.12.2006 (CZK)	31.12.2007 (CZK)	31.12.2008 (CZK)	31.12.2009 (CZK)
a1	Turnover	89 586 000	323 750 000	648 946 000	630 769 000
a2	Revenues from sold goods	0	249 627 000	430 449 000	370 577 000
a3	Expenses on sold goods	0	175 376 000	276 752 000	249 602 000
a4	Sale margin	0	74 251 000	153 697 000	120 975 000
a5	Production	96 082 000	118 660 000	196 425 000	265 316 000
a6	Revenues from own products and services	89 586 000	74 123 000	218 497 000	260 192 000
a7	Change in inventory of own products		44 537 000	-22 072 000	5 124 000
a9	Production consumption	72 558 000	199 697 000	359 106 000	334 976 000
a10	Consumption of material and energy		97 476 000	181 558 000	192 352 000
a11	Services		102 221 000	177 548 000	142 624 000
a12	Added value	23 524 000	-6 786 000	-8 984 000	51 315 000
a13	Personnel expenses	22 236 000	27 424 000	29 664 000	36 631 000
a14	Wages and salaries		22 109 000	23 458 000	29 177 000
a16	Social security expenses and health insurance		5 190 000	6 039 000	7 238 000
a17	Other social expenses		125 000	167 000	216 000
a18	Taxes and fees	14 000	16 000	9 000	25 000
a19	Depreciations of intangible and tangible assets	1 681 000	6 386 000	7 669 000	7 914 000
a20	Revenues from disposals of fixed assets and materials	0	0	0	0
a23	Net book value of disposed fixed assets and materials	0	0	0	0
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )	937 000	1 264 000	12 543 000	14 488 000
a27	Other operating revenues	12 000	217 000	80 056 000	32 061 000
a28	Other operating expenses	30 000	120 000	1 279 000	4 763 000
a31	Operating profit / loss	-1 362 000	-41 779 000	19 908 000	19 555 000
a43	Interest revenues	439 000	419 000	2 483 000	25 000
a44	Interest expenses	1 000	1 372 000	2 232 000	3 030 000
a45	Other financial revenues		16 731 000	68 667 000	35 926 000
a46	Other financial expenses		12 136 000	70 422 000	40 780 000
a49	Profit / loss from financial operations ( transactions )	1 064 000	3 642 000	-1 504 000	-7 859 000
a50	Income tax on ordinary income	0	0	0	4 968 000
a51	Due tax				4 968 000
a53	Operating profit / loss ordinary activity	-298 000	-38 137 000	18 404 000	6 728 000
a59	Operating profit / loss extraordinary activity	0	0	0	0
a61	Profit / loss of current accounting period (+/-)	-298 000	-38 137 000	18 404 000	6 728 000
a62	Profit / loss before tax (+/-)	-298 000	-38 137 000	18 404 000	11 696 000
	Receivables after due date total	396 000	7 650 000	39 294 000	29 732 000
	Receivables more than 180 days after due date	0	2 176 000	4 257 000	11 506 000
	Liabilities after due date total	3 733 000	103 169 000	13 815 000	46 460 000
	Liabilities more than 180 days after due date	95 000	0	2 951 000	2 563 000

Balance indices		31.12.2006	31.12.2007	31.12.2008	31.12.2009
Return on total assets ROA (in %)	a62/r1 * 100	-0,40	-14,60	6,97	3,20
Return on equity ROE (in %)	a62/r68 * 100	-3,08	133,73	-182,40	-344,20
Return on sales ROS (in %)	a62/a1 * 100	-0,33	-11,78	2,84	1,85
Turnover of receivables (in days)	r49/a1 * 365	1,52	93,58	31,63	41,81
Turnover of liabilities (in days)	r103/a1 * 365	43,02	170,96	15,75	27,31
Turnover of inventories (days)	r32/a1 * 365	116,16	115,33	69,07	77,31
Net working capital (in ths. CZK)	r31 - r102 - r116 - r117	36 688,00	33 396,00	64 408,00	96 259,00
Ratio of accounts payable to accounts receivable (in %)	(r39+r48) / (r91+r102) * 100	21,21	44,56	47,88	59,83
Ratio of profit/loss to tangible assets (in%)	r3 / a1 * 100	26,02	9,30	4,23	3,67
Current ratio	r31 / (r102+r116+r117)	3,38	1,17	1,37	1,39
Quick ratio	(r58+r48) / (r102+r116+r117)	1,53	0,65	0,66	0,72
Cash ratio	r58 / (r102+r116+r117)	0,87	0,13	0,09	0,17
Debt ratio I (in %)	(1-r68/r67) * 100	87,15	110,92	103,82	100,93
Debt ratio II (in %)	r85/r67 * 100	65,26	109,64	102,67	100,93

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.21
UK Pound	1	Rs.77.75
Euro	1	Rs.64.58

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

Company name and address

Summary

Financials

Unit