MIRA INFORM REPORT

Report Date :

30.11.2012

IDENTIFICATION DETAILS

Name :	VIBRACOUSTIC CZ, S.R.O.

Formerly Known As :	HEMIDRO, s.r.o.

Registered Office :	Nad Jatkami 3562, 276 01 Mělník

Country :	Czech Republic

Financials (as on) :	31.12.2011

Date of Incorporation :	23.01.2001

Com. Reg. No.:	C/81597

Legal Form :	Private Limited Company

Line of Business :	Manufacturer of other parts and accessories for motor vehicles

No. of Employees :	331 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

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

(31.03.2012)

Current Rating

(30.06.2012)

Czech Republic

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 name & address

Vibracoustic CZ, s.r.o.

Nad Jatkami 3562
276 01 Mělník
telephone: 00420/ 315 630 470
telefax: 00420/ 315 630 460
e-mail: ladislav.pavlu@vibracoustic.com
Web: www.vibracoustic.com

Company summary

Company development

Positive company development

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

Business connection

Business connections appear permissible

Legal form

Private limited company

Foundation	23/01/2001 - Private limited company
Comp. Register	23/01/2001, Městský soud v Praze, RegNr.: C/81597 Statistical number: 26429471 Tax number: CZ26429471

Share Capital	23/01/2001	CZK	100 000,-
	03/01/2004	CZK	16 100 000,-

Shareholders	Vibracoustic Holding GmbH Höhnerweg 2-4, 69469 Weinheim, Germany		CZK	16 100 000,-
Management		Ing. Petr Pavlů (12.11.1972) V Rokli 62, 278 01 Kralupy nad Vltavou - Mikovice Executive Manager sole power of attorney

	Ing. Daniel Stabenow (17.08.1974) Na Truhlářce 2032/60, 180 00 Praha 8 confidential clerk joint power of attorney
	Ing. Jiří Krčál (16.03.1977) V Uličce 10, 533 52 Staré Hradiště u Pardubic, Srch confidential clerk joint power of attorney

	František Krupička (26.07.1975) Kněžny Emmy 233/ 14, 276 01 Mělník confidential clerk joint power of attorney
General Data	Manufacture of deposition spaces of motors, gearboxes, sheaves and under chart parts for automotive industry. Import: whole world Export: whole Word

	Main activity: Manufacture of other parts and accessories for motor vehicles
		Former name(s) HEMIDRO, s.r.o. Beginning of validity: 23.01.2001 End of validity: 23.10.2002

	Trade name(s) Vibracoustic CZ, s.r.o. Beginning of validity: 23.10.2002
	General contacts: telephone: 00420/ 315 630 470 telefax: 00420/ 315 630 460 e-mail: ladislav.pavlu@vibracoustic.com Web: www.vibracoustic.com

	Address: Nad Jatkami 3562, 276 01 Mělník Beginning of validity: 23.10.2002
	Platnéřská 4, Praha 1 Beginning of validity: 23.01.2001 End of validity: 23.10.2002

		Branches of the business: Za Tratí 975, 503 46 Třebechovice pod Orebem telefax: 00420/ 495 009 979
Staff	2007		338 employees

	2008	334 employees
	2009	264 employees

	2010	280 employees
	2011	280 employees

		2012	331 employees
Annual Sales	2004			actual sales	CZK	998 383 000,-

	2005	actual sales	CZK	1 340 440 000,-
	2006	actual sales	CZK	1 726 732 000,-

	2007	actual sales	CZK	2 348 370 000,-
	2008	actual sales	CZK	2 040 881 000,-

	2009	actual sales	CZK	1 700 398 000,-
	2010	actual sales	CZK	2 036 822 000,-

	2011		actual sales	CZK	2 472 549 000,-
Property		none

Balance sheets

The enclosed balance of 2011 from business register, it is authenticated by the auditor. (31.12.2011 - 1 CZK)
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 profit/loss account of 2011 from business register, it is authenticated by the auditor. (31.12.2011 - 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)

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 and others) are currently monitored.

	Business management: Ing. Daniel Stabenow – financial director - phone: 00420/ 315 630 480 The company belongs to the group Vibracoustic, which is, furthermore, a member of the association called Freudenberg Group and is doing business in 14 countries of the world. The group Vibracoustic engages 3.300 employees and, in 2011, its turnover has exceeded the value of EUR 695 mill. Contact: Ing. František Krupička, chief accountant, phone: 00420/ 315 630 470
Bankers	UniCredit Bank Czech Republic, 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	31.12.2008 (CZK)	31.12.2009 (CZK)	31.12.2010 (CZK)	31.12.2011 (CZK)
r1	TOTAL ASSETS	644 912 000	546 730 000	747 834 000	981 704 000
r2	Receivables for subscriptions	0	0	0	0
r3	Fixed assets	353 542 000	286 086 000	248 643 000	232 142 000
r4	Intangible fixed assets	5 027 000	2 717 000	449 000	245 000
r5	Incorporation expenses		0
r6	Research and development		0
r7	Software	328 000	367 000	449 000	245 000
r8	Valuable rights	4 699 000	2 350 000
r9	Goodwill		0
r10	Other intangible fixed assets		0
r11	Intangible fixed assets under construction		0
r12	Advance payments for intangible fixed assets		0
r13	Tangible fixed assets	348 515 000	283 369 000	248 194 000	231 897 000
r14	Lands	0	0	0	0
r15	Constructions	46 493 000	40 710 000	34 598 000	29 483 000
r16	Equipment	276 044 000	237 894 000	206 894 000	192 376 000
r17	Perennial corps		0
r18	Breeding and draught animals		0
r19	Other tangible fixed assets		0
r20	Tangible fixed assets under construction	25 978 000	4 765 000	7 388 000	10 678 000
r21	Advance payments for tangible fixed assets		0
r22	Adjustment to acquired assets		0	-686 000	-640 000
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	254 109 000	255 553 000	491 484 000	732 985 000
r32	Inventory	88 674 000	57 214 000	57 188 000	68 558 000
r33	Materials	38 097 000	31 181 000	29 594 000	29 713 000
r34	Work in progress and semi-products	4 330 000	4 144 000	2 781 000	4 180 000
r35	Finished products	45 207 000	19 509 000	24 320 000	33 850 000
r36	Animals		0
r37	Merchandise	1 040 000	2 380 000	493 000	815 000
r38	Advance payments for inventory		0
r39	Long-term receivables	0	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		0
r45	Estimated receivable		0
r46	Other receivables		0
r47	Deferred tax receivable		0
r48	Short-term receivables	165 129 000	198 232 000	433 994 000	664 145 000
r49	Trade receivables	156 096 000	190 567 000	232 971 000	253 249 000
r50	Receivables from controlled and managed organizations		0	186 979 000	374 762 000
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	4 661 000	3 675 000	12 669 000	35 372 000
r55	Short-term deposits given		337 000
r56	Estimated receivable		1 526 000
r57	Other receivables	4 372 000	2 127 000	1 375 000	762 000
r58	Short-term financial assets	306 000	107 000	302 000	282 000
r59	Cash	263 000	100 000	281 000	267 000
r60	Bank accounts	43 000	7 000	21 000	15 000
r61	Short-term securities and ownership interests		0
r62	Short-term financial assets acquired		0
r63	Accruals	37 261 000	5 091 000	7 707 000	16 577 000
r64	Deferred expenses	6 062 000	2 838 000	490 000	371 000
r65	Complex deferred costs		0
r66	Deferred income	31 199 000	2 253 000	7 217 000	16 206 000
r67	TOTAL LIABILITIES	644 912 000	546 730 000	747 834 000	981 704 000
r68	Equity	232 283 000	309 269 000	426 435 000	610 040 000
r69	Registered capital	16 100 000	16 100 000	16 100 000	16 100 000
r70	Registered capital	16 100 000	16 100 000	16 100 000	16 100 000
r71	Company’s own shares and ownership interests (-)		0
r72	Changes of registered capital ( +/- )		0
r73	Capital funds	117 249 000	154 997 000	154 997 000	154 997 000
r74	Share premium		0
r75	Other capital funds	117 249 000	154 997 000	154 997 000	154 997 000
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	1 610 000	1 610 000	1 610 000	1 610 000
r79	Legal reserve fund / indivisible fund	1 610 000	1 610 000	1 610 000	1 610 000
r80	Statutory and other funds		0
r81	Profit / loss - previous years	65 290 000	97 324 000	136 562 000	253 728 000
r82	Retained earnings from previous years	65 290 000	97 324 000	136 562 000	253 728 000
r83	Accumulated losses from previous years		0
r84	Profit / loss - current year (+/-)	32 034 000	39 238 000	117 166 000	183 605 000
r85	Liabilities	412 629 000	226 756 000	308 092 000	371 664 000
r86	Reserves	5 481 000	11 308 000	30 687 000	51 680 000
r87	Reserves under special statutory regulations		0
r88	Reserves for pension and similar payables		0
r89	Income tax reserves	2 632 000	11 308 000	30 449 000	47 075 000
r90	Other reserves	2 849 000	0	238 000	4 605 000
r91	Long-term payables	27 447 000	28 046 000	25 453 000	21 704 000
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	27 447 000	28 046 000	25 453 000	21 704 000
r102	Short-term payables	379 701 000	187 402 000	251 952 000	298 280 000
r103	Trade payables	138 593 000	167 004 000	235 085 000	280 977 000
r104	Payables to controlled and managed organizations	221 797 000	5 673 000
r105	Payables to accounting units with substantial influence		0
r106	Payables from partners, cooperative members and association members		0
r107	Payroll	7 172 000	5 555 000	6 944 000	7 169 000
r108	Payables to social securities and health insurance	2 821 000	2 649 000	3 547 000	3 554 000
r109	Due from state - tax liabilities and subsidies	1 714 000	1 396 000	2 013 000	2 001 000
r110	Short-term deposits received		0
r111	Issues bonds		0
r112	Estimated payables	1 953 000	5 115 000	4 363 000	4 579 000
r113	Other payables	5 651 000	10 000
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	10 705 000	13 307 000	0
r119	Accrued expenses		10 705 000	13 307 000
r120	Deferred revenues		0

	profit/loss account	31.12.2008 (CZK)	31.12.2009 (CZK)	31.12.2010 (CZK)	31.12.2011 (CZK)
a1	Turnover	2 040 881 000	1 700 398 000	2 036 822 000	2 472 549 000
a2	Revenues from sold goods	53 907 000	38 078 000	16 328 000	39 989 000
a3	Expenses on sold goods	35 704 000	29 847 000	14 028 000	32 692 000
a4	Sale margin	18 203 000	8 231 000	2 300 000	7 297 000
a5	Production	1 976 404 000	1 633 754 000	2 024 410 000	2 443 273 000
a6	Revenues from own products and services	1 986 974 000	1 662 320 000	2 020 494 000	2 432 560 000
a7	Change in inventory of own products	-10 570 000	-28 566 000	3 916 000	10 713 000
a8	Capitalization		0
a9	Production consumption	1 715 887 000	1 389 171 000	1 680 499 000	2 027 016 000
a10	Consumption of material and energy	1 445 840 000	1 089 468 000	1 355 870 000	1 655 456 000
a11	Services	270 047 000	299 703 000	324 629 000	371 560 000
a12	Added value	278 720 000	252 814 000	346 211 000	423 554 000
a13	Personnel expenses	156 726 000	132 343 000	144 588 000	163 624 000
a14	Wages and salaries	115 905 000	98 672 000	104 582 000	119 133 000
a15	Renumeration of board members	1 612 000	1 612 000	1 612 000	1 971 000
a16	Social security expenses and health insurance	33 643 000	29 483 000	34 424 000	39 551 000
a17	Other social expenses	5 566 000	2 576 000	3 970 000	2 969 000
a18	Taxes and fees	53 000	6 000	17 000	0
a19	Depreciations of intangible and tangible assets	56 489 000	75 553 000	56 023 000	47 899 000
a20	Revenues from disposals of fixed assets and materials	130 650 000	92 969 000	103 541 000	123 244 000
a21	Revenues from disposals of fixed assets		7 601 000	530 000	1 566 000
a22	Revenues from disposals of materials	130 650 000	85 368 000	103 011 000	121 678 000
a23	Net book value of disposed fixed assets and materials	133 530 000	85 653 000	90 770 000	110 988 000
a24	Net book value of sold fixed assets		7 807 000	529 000	1 348 000
a25	Net book value of sold material	133 530 000	77 846 000	90 241 000	109 640 000
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )	119 000	-7 868 000	1 254 000	4 634 000
a27	Other operating revenues	18 046 000	6 205 000	10 536 000	13 219 000
a28	Other operating expenses	9 250 000	11 979 000	10 939 000	15 162 000
a29	Transfer of operating revenues		0
a30	Transfer of operating expenses		0
a31	Operating profit / loss	71 249 000	54 322 000	156 697 000	217 710 000
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	3 652 000	358 000	271 000	1 109 000
a44	Interest expenses	19 989 000	11 379 000	5 369 000	65 000
a45	Other financial revenues	84 794 000	67 449 000	97 130 000	91 085 000
a46	Other financial expenses	100 084 000	60 064 000	103 327 000	81 521 000
a47	Transfer of financial revenues		0
a48	Transfer of financial expenses		0
a49	Profit / loss from financial operations ( transactions )	-31 627 000	-3 636 000	-11 295 000	10 608 000
a50	Income tax on ordinary income	7 588 000	11 448 000	28 236 000	44 713 000
a51	Due tax	2 632 000	10 849 000	30 828 000	48 462 000
a52	Tax deferred	4 956 000	599 000	-2 592 000	-3 749 000
a53	Operating profit / loss ordinary activity	32 034 000	39 238 000	117 166 000	183 605 000
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 (+/-)	32 034 000	39 238 000	117 166 000	183 605 000
a62	Profit / loss before tax (+/-)	39 622 000	50 686 000	145 402 000	228 318 000
	Operating cash flow	180 167 000	186 122 000	211 155 000	217 991 000
	Investment cash flow	-49 060 000	-7 945 000	-205 287 000	-218 011 000
	Financial cash flow	-131 030 000	-178 376 000	-5 673 000	0
	Receivables after due date total		1 264 000	2 808 000	7 131 000
	Receivables more than 180 days after due date	225 000
	Liabilities after due date total		60 605 000	68 205 000	113 435 000
	Liabilities more than 90 days after due date	949 000	875 000		2 924 000

Balance indices		31.12.2008	31.12.2009	31.12.2010	31.12.2011
Return on total assets ROA (in %)	a62/r1 * 100	6,14	9,27	19,44	23,26
Return on equity ROE (in %)	a62/r68 * 100	17,06	16,39	34,10	37,43
Return on sales ROS (in %)	a62/a1 * 100	1,94	2,98	7,14	9,23
Turnover of receivables (in days)	r49/a1 * 365	27,92	40,91	41,75	37,38
Turnover of liabilities (in days)	r103/a1 * 365	24,79	35,85	42,13	41,48
Turnover of inventories (days)	r32/a1 * 365	15,86	12,28	10,25	10,12
Net working capital (in ths. CZK)	r31 - r102 - r116 - r117	-125 592,00	68 151,00	239 532,00	434 705,00
Ratio of accounts payable to accounts receivable (in %)	(r39+r48) / (r91+r102) * 100	40,56	92,01	156,45	207,56
Ratio of profit/loss to tangible assets (in%)	r3 / a1 * 100	17,32	16,82	12,21	9,39
Current ratio	r31 / (r102+r116+r117)	0,67	1,36	1,95	2,46
Quick ratio	(r58+r48) / (r102+r116+r117)	0,44	1,06	1,72	2,23
Cash ratio	r58 / (r102+r116+r117)	0,00	0,00	0,00	0,00
Debt ratio I (in %)	(1-r68/r67) * 100	63,98	43,43	42,98	37,86
Debt ratio II (in %)	r85/r67 * 100	63,98	41,48	41,20	37,86

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.20
UK Pound	1	Rs.88.38
Euro	1	Rs.71.47

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