MIRA INFORM REPORT

Report Date :

15.06.2012

IDENTIFICATION DETAILS

Name :	ZKL,A.S.

Registered Office :	Jedovnická 8/2346, 628 00 Brno, Líšeň

Country :	Czech Republic

Financials (as on) :	31.12.2010

Date of Incorporation :	28.061999

Com. Reg. No.:	B/3006

Legal Form :	Public Limited Company

Line of Business :	Business and other management consultancy activities

No. of Employees :	32

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Moderate

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 – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Czech Republic

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

Company name & address

ZKL, a.s.

Jedovnická 8/2346
628 00 Brno, Líšeň
Telephone:        00420/ 544 135 120
Telefax:             00420/ 544 210 360
e-mail:              head@zklgroup.cz
Web:                www.zkl.cz

Company summary

Company development	Constant business development
Order situation	Satisfactory order situation

Terms of payment	with delays, partly reminders of open invoices
Business connection	Credits require securities

Legal form	Public limited company
Foundation		28/06/1999 - Public limited company

Comp. Register		28/06/1999, Krajský soud v Brně, RegNr.: B/3006 Statistical number: 25568353 Tax number: CZ25568353
Share Capital	28/06/1999		CZK	1 200 000,-

	13/02/2002	CZK	104 323 000,-
	19/12/2005	CZK	306 818 000,-

27/06/2007		CZK	805 802 000,-
	12 pc of nominative shares at nominal value of CZK 100 000,- 01 pc of nominative shares at nominal value of CZK 103 123 000,- 01 pc of common nominative shares at nominal value of CZK 202 495 000,- 01 pc of common nominative shares at nominal value of CZK 366 020 000,- 01 pc of common nominative shares at nominal value of CZK 123 350 000,- 01 pc of common nominative shares at nominal value of CZK 9 614 000,- - in documentary form

Main Shareholder	V.L. Brno, a.s. (Statistical number: 25560026) Jedovnická 8/4039, 628 00 Brno, Líšeň		%	100
Board of Directors		Ing. Jiří Prášil, CSc. (29.10.1953) Podolí u Brna 397, 664 03 Podolí u Brna chairman sole power of attorney

	Ivo Eliášek (19.12.1937) Krásného 57, 636 00 Brno sole power of attorney
	Ing. Jan Otoupalík (12.11.1957) Nádražní 705/54, 664 47 Střelice u Brna sole power of attorney

Supervisory Board	Ing. Jan Harwot (16.05.1976) Čermákova 582/22, 625 00 Brno
	Ing. Zoltán Szivanyó (10.11.1956) Oderská 259/6, 625 00 Brno chairman

	Marie Křížová (17.01.1958) Elplova 2057/6, 628 00 Brno
General Data	Consulting in the sphere of organization and economy, control of the companies of the group ZKL in the sphere of innovation, production, trade and investments, perfor- ming consulting activity in the sphere of technology, internal controlling and accounting audit.

	Main activity: Business and other management consultancy activities
		Trade name(s) ZKL,a.s. Beginning of validity: 28.06.1999


	Address: Jedovnická 8/2346, 628 00 Brno, Líšeň telephone: 00420/ 544 135 120 telefax: 00420/ 544 210 360 e-mail: head@zklgroup.cz Web: www.zkl.cz

		Jedovnická 8/4039, 628 00 Brno Beginning of validity: 02.10.2001 End of validity: 25.06.2003
Staff	2007		30 employees

	2008	21 employees
	2009	24 employees

	2010	31 employees
	2012	32 employees

Annual Sales	2006	actual sales	CZK	31 200 000,-
	2007	actual sales	CZK	35 237 000,-

	2008	actual sales	CZK	32 710 000,-
	2009	actual sales	CZK	42 545 000,-

2010		actual sales	CZK	50 871 000,-
	Consolidated sales of the ZKL group of the year 2010: CZK 1.251.618.000,-

Property	the real estate at the address of the headquarters is in possession of the company ZKL Reality, s.r.o.
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	BDO Prima CA s.r.o. (Statistical number: 25535269) Marie Steyskalové 14/315, 616 00 Brno

Remarks

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, collection database and others) are currently monitored.

The final accounts for the year 2011 are not available yet.

Business management:
Ing. Jiří Prášil CSc. - general director
Ing. Adam Šotek - economic director, phone: 00420/ 544 135 121,
mobile phone: 00420/ 608 746 408, e-mail: adam.sotek@zkl.cz
Ing. Jan Otoupalík - technical director
Ing. Luxík - financial director, phone: 00420/257 326 031

Subsidiaries:
- ZKL Reality, s.r.o., IČ 25507729,
Jedovnická 8, 628 00 Brno, share 72,5%
- ZKL Hanušovice, a.s., IČ 25 50 85 98, share 100%
- ZKL Bearings CZ, akciová společnost, IČ 25 08 86 37,
share 50,58%
- ZKL - Výzkum a vývoj, a. s., IČ 25 55 84 80, share 34%
- ZKL Klášterec nad Ohří, akciová společnost, IČ 00152552,
Nádražní 214, 431 51 Klášterec nad Ohří, share 100% - in bankruptcy

Contact:
Marie Křížová - chief accountant, phone: 00420/ 544 135 123

Bankers

Česká spořitelna, a. s.

Československá obchodní banka, a. s.

Copyright

s.r.o. Praha

This information is addressed exclusively to the addressee. Contractor obligates to provide updated information. Although it is always put maximum effort to collect actual and exact information, it is not confirmed as delinquency if there are particular inaccurateness contained within the information, which are not considered as essential in terms of the objective for which the information is provided to the addressee. Contractor and recipient conform to the rules of the Name and Description Security Act, Nub.101/2000. According to the Name and Description Security Act, recipient has the right to process or to use forwarding data only for the purpose for which information has been sent to the recipient. Usage for other purpose is acceptable only in case referring to valid regulations of the above mentioned act.

Financial data

	Balance	31.12.2007 (CZK)	31.12.2008 (CZK)	31.12.2009 (CZK)	31.12.2010 (CZK)
r1	TOTAL ASSETS	945 620 000	1 000 217 000	982 005 000	985 781 000
r2	Receivables for subscriptions	0	0	0	0
r3	Fixed assets	706 910 000	734 962 000	737 510 000	831 141 000
r4	Intangible fixed assets	11 393 000	24 714 000	29 918 000	23 360 000
r5	Incorporation expenses	0			0
r6	Research and development	0			0
r7	Software	0	24 512 000	19 802 000	14 522 000
r8	Valuable rights	0		10 116 000	8 838 000
r9	Goodwill	0			0
r10	Other intangible fixed assets	0			0
r11	Intangible fixed assets under construction	11 393 000	202 000		0
r12	Advance payments for intangible fixed assets	0			0
r13	Tangible fixed assets	67 313 000	82 572 000	81 166 000	76 178 000
r14	Lands	3 316 000	3 316 000	3 316 000	3 316 000
r15	Constructions	53 043 000	51 909 000	50 792 000	49 676 000
r16	Equipment	10 954 000	27 038 000	27 058 000	23 120 000
r17	Perennial corps	0			0
r18	Breeding and draught animals	0			0
r19	Other tangible fixed assets	0			0
r20	Tangible fixed assets under construction	0	309 000		66 000
r21	Advance payments for tangible fixed assets	0			0
r22	Adjustment to acquired assets	0			0
r23	Long-term financial assets	628 204 000	627 676 000	626 426 000	731 603 000
r24	Shares in controlled and managed organizations	627 745 000	627 676 000	626 426 000	731 603 000
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	459 000			0
r29	Financial investments acquired	0			0
r30	Advance payments for long-term financial assets	0			0
r31	Current assets	237 291 000	261 985 000	241 980 000	152 708 000
r32	Inventory	271 000	113 000	50 000	61 000
r33	Materials	255 000	97 000	50 000	52 000
r34	Work in progress and semi-products	0			0
r35	Finished products	0			0
r36	Animals	0			0
r37	Merchandise	16 000	16 000		9 000
r38	Advance payments for inventory	0			0
r39	Long-term receivables	0	0	97 200 000	112 264 000
r40	Trade receivables	0		57 118 000	54 118 000
r41	Receivables from controlled and managed organizations	0		40 082 000	58 146 000
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	235 359 000	260 231 000	141 938 000	38 136 000
r49	Trade receivables	196 510 000	188 407 000	126 986 000	29 384 000
r50	Receivables from controlled and managed organizations	22 616 000	64 937 000	8 592 000	4 368 000
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	1 609 000	467 000		0
r55	Short-term deposits given	884 000	1 026 000	516 000	477 000
r56	Estimated receivable	6 638 000	25 000		-1 129 000
r57	Other receivables	7 102 000	5 369 000	5 844 000	5 036 000
r58	Short-term financial assets	1 661 000	1 641 000	2 792 000	2 247 000
r59	Cash	137 000	73 000	69 000	48 000
r60	Bank accounts	1 524 000	1 568 000	2 723 000	2 199 000
r61	Short-term securities and ownership interests	0			0
r62	Short-term financial assets acquired	0			0
r63	Accruals	1 419 000	3 270 000	2 515 000	1 932 000
r64	Deferred expenses	1 419 000	3 270 000	2 515 000	1 911 000
r65	Complex deferred costs	0			0
r66	Deferred income	0			21 000
r67	TOTAL LIABILITIES	945 620 000	1 000 217 000	982 005 000	985 781 000
r68	Equity	859 175 000	864 574 000	870 264 000	870 406 000
r69	Registered capital	805 802 000	805 802 000	805 802 000	805 802 000
r70	Registered capital	805 802 000	805 802 000	805 802 000	805 802 000
r71	Company’s own shares and ownership interests (-)	0			0
r72	Changes of registered capital ( +/- )	0			0
r73	Capital funds	1 255 000	1 185 000	1 183 000	1 183 000
r74	Share premium	1 236 000	1 236 000	1 236 000	1 236 000
r75	Other capital funds	0			0
r76	Differences from revaluation of assets and liabilities ( +/- )	19 000	-51 000	-53 000	-53 000
r77	Differences from revaluation in transformation ( +/- )	0			0
	Diferences from tranformation of companies ( +/- )				0
r78	Reserve funds, statutory reserve account for cooperatives, and other retained earnings	2 698 000	3 601 000	4 174 000	4 759 000
r79	Legal reserve fund / indivisible fund	2 698 000	3 601 000	4 174 000	4 759 000
r80	Statutory and other funds	0			0
r81	Profit / loss - previous years	31 362 000	42 518 000	47 413 000	52 520 000
r82	Retained earnings from previous years	31 362 000	42 518 000	47 413 000	52 520 000
r83	Accumulated losses from previous years	0			0
r84	Profit / loss - current year (+/-)	18 058 000	11 468 000	11 692 000	6 142 000
r85	Other sources	86 445 000	135 643 000	111 694 000	115 336 000
r86	Reserves	0	0	0	0
r87	Reserves under special statutory regulations	0			0
r88	Reserves for pension and similar payables	0			0
r89	Income tax reserves	0			0
r90	Other reserves	0			0
r91	Long-term payables	16 169 000	169 000	1 582 000	2 307 000
r92	Trade payables	16 000 000			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	169 000	169 000		0
r101	Deferred tax liability	0		1 582 000	2 307 000
r102	Short-term payables	70 276 000	135 474 000	110 112 000	113 029 000
r103	Trade payables	27 726 000	93 010 000	72 000 000	72 908 000
r104	Payables to controlled and managed organizations	37 300 000	35 300 000	28 575 000	25 575 000
r105	Payables to accounting units with substantial influence	0			0
r106	Payables from partners, cooperative members and association members	2 000 000	3 000 000	5 480 000	8 730 000
r107	Payroll	793 000	859 000	817 000	937 000
r108	Payables to social securities and health insurance	456 000	390 000	355 000	493 000
r109	Due from state - tax liabilities and subsidies	175 000	156 000	683 000	1 459 000
r110	Short-term deposits received	0			0
r111	Issues bonds	0			0
r112	Estimated payables	1 552 000	2 285 000	2 043 000	2 858 000
r113	Other payables	274 000	474 000	159 000	69 000
r114	Bank loans and financial accommodations	0	0	0	0
r115	Long-term bank loans	0	0	0	0
r116	Short-term bank loans	0	0	0	0
r117	Short-term accommodations	0	0	0	0
r118	Accruals	0	0	47 000	39 000
r119	Accrued expenses	0		47 000	39 000
r120	Deferred revenues	0			0
	profit/loss account	31.12.2007 (CZK)	31.12.2008 (CZK)	31.12.2009 (CZK)	31.12.2010 (CZK)
a1	Turnover	35 237 000	32 710 000	42 545 000	50 871 000
a2	Revenues from sold goods	22 000	0	0	0
a3	Expenses on sold goods	22 000	0	0	0
a4	Sale margin	0	0	0	0
a5	Production	35 215 000	32 710 000	42 545 000	50 871 000
a6	Revenues from own products and services	35 215 000	32 710 000	42 545 000	50 871 000
a7	Change in inventory of own products	0			0
a8	Capitalization	0			0
a9	Production consumption	16 072 000	13 703 000	14 495 000	13 621 000
a10	Consumption of material and energy	2 833 000	2 194 000	2 511 000	2 585 000
a11	Services	13 239 000	11 509 000	11 984 000	11 036 000
a12	Added value	19 143 000	19 007 000	28 050 000	37 250 000
a13	Personnel expenses	17 781 000	16 433 000	18 190 000	23 601 000
a14	Wages and salaries	12 841 000	12 138 000	13 758 000	17 376 000
a15	Renumeration of board members	0			0
a16	Social security expenses and health insurance	4 419 000	3 960 000	4 143 000	5 852 000
a17	Other social expenses	521 000	335 000	289 000	373 000
a18	Taxes and fees	544 000	356 000	104 000	257 000
a19	Depreciations of intangible and tangible assets	1 231 000	5 759 000	11 206 000	12 932 000
a20	Revenues from disposals of fixed assets and materials	1 046 000	2 907 000	95 000	18 000
a21	Revenues from disposals of fixed assets	884 000	2 718 000	84 000	12 000
a22	Revenues from disposals of materials	162 000	189 000	11 000	6 000
a23	Net book value of disposed fixed assets and materials	932 000	2 745 000	11 000	6 000
a24	Net book value of sold fixed assets	770 000	2 558 000		0
a25	Net book value of sold material	162 000	187 000	11 000	6 000
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )	0	0	-5 375 000
a27	Other operating revenues	1 789 000	80 481 000	69 040 000	497 000
a28	Other operating expenses	464 000	69 765 000	74 743 000	679 000
a29	Transfer of operating revenues	0			0
a30	Transfer of operating expenses	0			0
a31	Operating profit / loss	1 026 000	7 337 000	-1 694 000	290 000
a32	Revenues from sales of securities and ownership interests	0
a33	Sold securities and ownership interests	0		253 000
a34	Revenues from long-term financial assets	20 000 000	5 000 000	3 625 000	3 625 000
a35	Revenues from shares in controlled and managed organizations and in accounting units with substantial influence	20 000 000	5 000 000	3 625 000	3 625 000
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	0		994 000	-400 000
a42	Change in financial reserves and adjustments ( + / - )	0			0
a43	Interest revenues	1 155 000	2 341 000	3 057 000	2 340 000
a44	Interest expenses	3 536 000	2 448 000	1 410 000	948 000
a45	Other financial revenues	278 000	1 709 000	92 000	542 000
a46	Other financial expenses	865 000	2 471 000	-63 000	-618 000
a47	Transfer of financial revenues	0			0
a48	Transfer of financial expenses	0			0
a49	Profit / loss from financial operations ( transactions )	17 032 000	4 131 000	4 180 000	6 577 000
a50	Income tax on ordinary income	0	0	1 582 000	725 000
a51	Due tax	0
a52	Tax deferred	0		1 582 000	725 000
a53	Operating profit / loss ordinary activity	18 058 000	11 468 000	904 000	6 142 000
a54	Extraordinary revenues	0			0
a55	Extraordinary expenses	0		-10 788 000
a56	Income tax on extraordinary income	0			0
a57	Due tax	0			0
a58	Tax deferred	0			0
a59	Operating profit / loss extraordinary activity	0	0	10 788 000	0
a60	Transfer profit ( loss ) to partners (+/-)	0			0
a61	Profit / loss of current accounting period (+/-)	18 058 000	11 468 000	11 692 000	6 142 000
a62	Profit / loss before tax (+/-)	18 058 000	11 468 000	13 274 000	6 867 000
	Operating cash flow	60 349 000	54 140 000	15 594 000	108 756 000
	Investment cash flow	-63 004 000	-48 160 000	-13 923 000	-106 551 000
	Financial cash flow	-3 000 000	-6 000 000	-520 000	-2 750 000
	Receivables after due date total	188 904 000	122 393 000	53 087 000	23 133 000
	Receivables more than 180 days after due date	184 526 000	103 635 000	23 950 000	14 352 000
	Liabilities after due date total	908 000	1 216 000	266 000	68 267 000
	Liabilities more than 180 days after due date	0	0	114 000	68 252 000

Balance indices		31.12.2007	31.12.2008	31.12.2009	31.12.2010
Return on total assets ROA (in %)	a62/r1 * 100	1,91	1,15	1,35	0,70
Return on equity ROE (in %)	a62/r68 * 100	2,10	1,33	1,53	0,79
Return on sales ROS (in %)	a62/a1 * 100	51,25	35,06	31,20	n/a
Turnover of receivables (in days)	r49/a1 * 365	2 035,54	2 102,37	1 089,43	n/a
Turnover of liabilities (in days)	r103/a1 * 365	287,20	1 037,87	617,70	n/a
Turnover of inventories (days)	r32/a1 * 365	2,81	1,26	0,43	n/a
Net working capital (in ths. CZK)	r31 - r102 - r116 - r117	167 015,00	126 511,00	131 868,00	39 679,00
Ratio of accounts payable to accounts receivable (in %)	(r39+r48) / (r91+r102) * 100	272,26	191,85	214,10	130,40
Ratio of profit/loss to tangible assets (in%)	r3 / a1 * 100	2 006,16	2 246,90	1 733,48	n/a
Current ratio	r31 / (r102+r116+r117)	3,38	1,93	2,20	1,35
Quick ratio	(r58+r48) / (r102+r116+r117)	3,37	1,93	1,31	0,36
Cash ratio	r58 / (r102+r116+r117)	0,02	0,01	0,03	0,02
Debt ratio I (in %)	(1-r68/r67) * 100	9,14	13,56	11,38	11,70
Debt ratio II (in %)	r85/r67 * 100	9,14	13,56	11,37	11,70

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.79
UK Pound	1	Rs.86.37
Euro	1	Rs.70.07

INFORMATION DETAILS

Report Prepared by :

MNL

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 & address

Company summary

Financial data

Unit