MIRA INFORM REPORT

Report Date :

06.10.2012

IDENTIFICATION DETAILS

Name :	TOS KUŘIM - OS,A.S.

Registered Office :	Štefánikova 41/110 602 00 Brno

Country :	Czech Republic

Financials (as on) :	31.12.2011

Date of Incorporation :	01.01.2001

Com. Reg. No.:	B/3474

Legal Form :	Public Limited Company

Line of Business :	Manufacture of metal forming machinery

No. of Employees :	399

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 :	Slow but correct
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

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 and address

TOS KUŘIM - OS,a.s.

Štefánikova 41/110
602 00 Brno

telephone: 00420/ 541 101 111
telefax: 00420/ 541 102 355
e-mail: petr.skala@tos-kurim.cz
Web: www.tos-kurim.cz

Company development

Stagnant business development

(39)

Order situation	Satisfactory course of business	(31)
Terms of payment	mostly within agreed terms, but partly also delayed	(32)

Business connection

Business connections appear permissible

(31)


Legal form	Public limited company

Foundation	01/01/2001 - Public limited company
Comp. Register	01/01/2001, Krajský soud v Brně, RegNr.: B/3474 Statistical number: 26231522 Tax number: CZ26231522

Share Capital	01/01/2001	CZK	506 800 000,-
	01/09/2006	CZK	62 083 000,-

	27/12/2006	CZK	162 100 000,-
	10/01/2008	CZK	206 000 000,-

29/04/2008		CZK	250 000 000,-
	1 pc of registered share at nominal value of CZK 164 800 000,- 1 pc of registered share at nominal value of CZK 41 200 000,- 1 pc of registered share in documentary form at nominal value of CZK 44 000 000,-

Main Shareholder	ALTA Invest, a.s. (Statistical number: 60735244) Štefánikova 110/41, 602 00 Brno		%	100
Board of Directors		Ing. Milan Bláha (26.10.1969) Letkov 101, 326 00 Plzeň chairman sole power of attorney

	Ing. Jaroslav Zapletal (30.11.1966) 21. dubna 692, 691 44 Lednice vice-chairman sole power of attorney
	Ing. Luboš Janoušek (18.02.1959) Toužimská 1717/6, 316 00 Plzeň, Bolevec sole power of attorney

Supervisory Board	Mgr. Petr Vágner (16.05.1981) Mezírka 746/4, 602 00 Brno, Veveří
	Ing. Milan Vlk (10.01.1952) Bezručova čtvrť 1115, 664 34 Kuřim

	Ing. Hana Kuncová (28.07.1976) Majdalenky 853/17, 638 00 Brno, Lesná
General Data	Development, manufacture, sale and repairs of milling machines, machining centers, one-purpose machines and automatic lines.

Main activity: Manufacture of metal forming machinery		(28.41)
	Trade name(s) TOS KUŘIM - OS,a.s. Beginning of validity: 01.01.2001

	Export: Finland Germany Italy Slovakia Sweden Russia	11%
	Import: Austria Germany


	Address: Štefánikova 41/110, 602 00 Brno Beginning of validity: 10.08.2006

	Blanenská 257, 664 34 Kuřim Beginning of validity: 01.01.2001 End of validity: 10.08.2006
	business locations: Blanenská 257, 664 34 Kuřim telephone: 00420/ 541 101 111 telefax: 00420/ 541 102 355 e-mail: petr.skala@tos-kurim.cz Web: www.tos-kurim.cz

Staff	2009	543 employees
	2010	382 employees

	2011	382 employees
	2012	399 employees

Annual Sales	2005	actual sales	CZK	584 810 000,-
	2006	actual sales	CZK	834 272 000,-

	2007	actual sales	CZK	816 595 000,-
	2008	actual sales	CZK	1 001 658 000,-

	2009	actual sales	CZK	551 639 000,-
	2010	actual sales	CZK	633 934 000,-

	2011		actual sales	CZK	662 373 000,-
Property		Property of the company: CZ- Book value: 123 389 000,- CZK ()

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	DANEKON, spol. s r.o. (Statistical number: 48528447) Na Vyhlídce 1175, 664 34 Kuřim
Remarks		The company is a holder of ISO 9001 certificate. 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. Petr Skala - executive, director Ing. Jan Sobola – technical director Ing. Miroslav Chmelka, MBA – business director Ing. Radka Formanová – economic department chief phone: 00420/ 541 103 559 , e-mail: radka.formanova@tos-kurim.cz Ing. Petr Tuček – finance section chief phone: 00420/ 541 102 666, e-mail: petr.tucek@tos-kurim.cz Mother company ALTA Invest, a.s. is just a holder of shares in subsidiaries. Its principal task is strategic management of the whole group ALTA; share capital amounts to CZK 200.000.000,-- Contact: Ing. Jan Horálek – chief accountant, phone: 00420/ 541 102 217
Bankers	Československá obchodní banka, a. s. Raiffeisenbank, a. s.	(0300) (5500)

	balance	31.12.2008 (CZK)	31.12.2009 (CZK)	31.12.2010 (CZK)	31.12.2011 (CZK)
r1	TOTAL ASSETS	1 238 745 000	1 133 180 000	1 123 344 000	1 308 934 000
r2	Receivables for subscriptions	0	0	0	0
r3	Fixed assets	355 378 000	348 707 000	386 156 000	517 340 000
r4	Intangible fixed assets	2 749 000	1 635 000	1 624 000	3 365 000
r7	Software	2 281 000	1 635 000	1 624 000	1 000 000
r11	Intangible fixed assets under construction	468 000			2 365 000
r13	Tangible fixed assets	348 514 000	342 957 000	380 417 000	509 860 000
r14	Lands	927 000	918 000	908 000	884 000
r15	Constructions	83 456 000	110 641 000	123 696 000	122 505 000
r16	Equipment	64 268 000	45 348 000	108 521 000	103 424 000
r19	Other tangible fixed assets	11 000	7 000	3 000
r20	Tangible fixed assets under construction	3 376 000	18 014 000	7 220 000	170 936 000
r21	Advance payments for tangible fixed assets	760 000	272 000	272 000	273 000
r22	Adjustment to acquired assets	195 716 000	167 757 000	139 797 000	111 838 000
r23	Long-term financial assets	4 115 000	4 115 000	4 115 000	4 115 000
r26	Other securities and shares	4 115 000	4 115 000	4 115 000	4 115 000
r31	Current assets	859 044 000	754 395 000	712 759 000	781 490 000
r32	Inventory	423 985 000	531 889 000	393 333 000	445 530 000
r33	Materials	46 639 000	42 542 000	38 991 000	30 943 000
r34	Work in progress and semi-products	252 339 000	213 010 000	215 641 000	295 782 000
r35	Finished products	117 605 000	268 759 000	128 712 000	104 311 000
r36	Animals	1 000	1 000	1 000	1 000
r37	Merchandise	4 438 000	5 787 000	6 997 000	7 575 000
r38	Advance payments for inventory	2 963 000	1 790 000	2 991 000	6 918 000
r39	Long-term receivables	10 983 000	10 047 000	0	0
r40	Trade receivables	10 983 000	10 047 000
r48	Short-term receivables	362 510 000	166 511 000	298 311 000	284 169 000
r49	Trade receivables	221 981 000	64 065 000	136 013 000	249 339 000
r50	Receivables from controlled and managed organizations	138 976 000	102 367 000	159 004 000	14 752 000
r54	Due from state - tax receivable	7 000		2 688 000	11 179 000
r55	Short-term deposits given	946 000	79 000	606 000	4 562 000
r56	Estimated receivable				4 337 000
r57	Other receivables	600 000
r58	Short-term financial assets	61 566 000	45 948 000	21 115 000	51 791 000
r59	Cash	1 699 000	1 350 000	712 000	828 000
r60	Bank accounts	59 867 000	44 598 000	20 403 000	50 963 000
r63	Accruals	24 323 000	30 078 000	24 429 000	10 104 000
r64	Deferred expenses	6 235 000	6 259 000	8 686 000	2 572 000
r65	Complex deferred costs	17 940 000	23 774 000	15 653 000	7 532 000
r66	Deferred income	148 000	45 000	90 000
r67	TOTAL LIABILITIES	1 238 745 000	1 133 180 000	1 123 344 000	1 308 934 000
r68	Equity	394 599 000	395 826 000	397 539 000	402 477 000
r69	Registered capital	250 000 000	250 000 000	250 000 000	250 000 000
r70	Registered capital	250 000 000	250 000 000	250 000 000	250 000 000
r73	Capital funds	0	0	0	18 385 000
r75	Other capital funds				21 251 000
r76	Differences from revaluation of assets and liabilities ( +/- )				-2 866 000
r78	Reserve funds, statutory reserve account for cooperatives, and other retained earnings	19 464 000	21 809 000	21 871 000	21 956 000
r79	Legal reserve fund / indivisible fund	19 464 000	21 809 000	21 871 000	21 956 000
r81	Profit / loss - previous years	78 225 000	122 790 000	123 955 000	125 583 000
r82	Retained earnings from previous years	78 225 000	122 790 000	123 955 000	125 583 000
r84	Profit / loss - current year (+/-)	46 910 000	1 227 000	1 713 000	-13 447 000
r85	Liabilities	832 231 000	736 773 000	725 465 000	906 152 000
r86	Reserves	18 751 000	12 314 000	12 996 000	6 685 000
r90	Other reserves	18 751 000	12 314 000	12 996 000	6 685 000
r91	Long-term payables	0	0	2 252 000	26 298 000
r92	Trade payables				20 000 000
r101	Deferred tax liability			2 252 000	6 298 000
r102	Short-term payables	330 575 000	216 596 000	189 202 000	286 614 000
r103	Trade payables	134 161 000	118 631 000	117 770 000	191 794 000
r104	Payables to controlled and managed organizations	18 664 000	16 131 000	1 793 000
r107	Payroll	11 497 000	8 372 000	7 563 000	9 070 000
r108	Payables to social securities and health insurance	6 114 000	4 332 000	4 324 000	5 137 000
r109	Due from state - tax liabilities and subsidies	38 132 000	10 839 000	30 127 000	1 408 000
r110	Short-term deposits received	102 208 000	51 900 000	18 418 000	69 413 000
r112	Estimated payables	14 081 000	-588 000	2 271 000
r113	Other payables	5 718 000	6 979 000	6 936 000	9 792 000
r114	Bank loans and financial accommodations	482 905 000	507 863 000	521 015 000	586 555 000
r115	Long-term bank loans	0	0	29 077 000	128 864 000
r116	Short-term bank loans	482 905 000	507 863 000	491 938 000	457 691 000
r117	Short-term accommodations	0	0	0	0
r118	Accruals	11 915 000	581 000	340 000	305 000
r119	Accrued expenses	2 466 000	571 000	295 000	305 000
r120	Deferred revenues	9 449 000	10 000	45 000

	profit/loss account		31.12.2008 (CZK)		31.12.2009 (CZK)		31.12.2010 (CZK)		31.12.2011 (CZK)
a1	Turnover		1 001 658 000		551 639 000		633 934 000		662 373 000
a2	Revenues from sold goods		5 163 000		3 282 000		4 039 000		4 605 000
a3	Expenses on sold goods		2 139 000		1 255 000		2 001 000		2 038 000
a4	Sale margin		3 024 000		2 027 000		2 038 000		2 567 000
a5	Production		1 052 872 000		671 501 000		561 846 000		733 157 000
a6	Revenues from own products and services		996 495 000		548 357 000		629 895 000		657 768 000
a7	Change in inventory of own products		35 185 000		109 779 000		-137 581 000		58 993 000
a8	Capitalization		21 192 000		13 365 000		69 532 000		16 396 000
a9	Production consumption		667 718 000		445 065 000		329 213 000		482 875 000
a10	Consumption of material and energy		462 715 000		316 726 000		237 766 000		309 667 000
a11	Services		205 003 000		128 339 000		91 447 000		173 208 000
a12	Added value		388 178 000		228 463 000		234 671 000		252 849 000
a13	Personnel expenses		257 127 000		198 507 000		173 308 000		176 142 000
a14	Wages and salaries		184 793 000		141 217 000		124 997 000		127 717 000
a15	Renumeration of board members		1 560 000		1 682 000		1 275 000		863 000
a16	Social security expenses and health insurance		68 700 000		53 742 000		45 828 000		46 474 000
a17	Other social expenses		2 074 000		1 866 000		1 208 000		1 088 000
a18	Taxes and fees		985 000		2 682 000		1 690 000		1 607 000
a19	Depreciations of intangible and tangible assets		23 504 000		26 247 000		29 317 000		61 001 000
a20	Revenues from disposals of fixed assets and materials		5 928 000		12 823 000		4 494 000		16 666 000
a21	Revenues from disposals of fixed assets		4 566 000		11 865 000		2 438 000		14 435 000
a22	Revenues from disposals of materials		1 362 000		958 000		2 056 000		2 231 000
a23	Net book value of disposed fixed assets and materials		4 141 000		10 459 000		127 000		5 220 000
a24	Net book value of sold fixed assets		3 986 000		10 422 000		116 000		4 398 000
a25	Net book value of sold material		155 000		37 000		11 000		822 000
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )		29 838 000		15 513 000		36 137 000		19 476 000
a27	Other operating revenues		24 987 000		58 457 000		27 038 000		22 569 000
a28	Other operating expenses		10 430 000		19 877 000		3 193 000		7 342 000
a31	Operating profit / loss		93 068 000		26 458 000		22 431 000		21 296 000
a43	Interest revenues		846 000		110 000		81 000		16 000
a44	Interest expenses		23 406 000		14 954 000		13 034 000		14 967 000
a45	Other financial revenues		36 980 000		25 378 000		13 847 000		19 977 000
a46	Other financial expenses		49 627 000		29 779 000		17 639 000		34 329 000
a49	Profit / loss from financial operations ( transactions )		-35 207 000		-19 245 000		-16 745 000		-29 303 000
a50	Income tax on ordinary income		10 951 000		5 986 000		3 973 000		5 440 000
a51	Due tax		12 994 000		5 986 000		1 721 000		1 394 000
a52	Tax deferred		-2 043 000				2 252 000		4 046 000
a53	Operating profit / loss ordinary activity		46 910 000		1 227 000		1 713 000		-13 447 000
a59	Operating profit / loss extraordinary activity		0		0		0		0
a61	Profit / loss of current accounting period (+/-)		46 910 000		1 227 000		1 713 000		-13 447 000
a62	Profit / loss before tax (+/-)		57 861 000		7 213 000		5 686 000		-8 007 000
	Operating cash flow						36 241 000
	Investment cash flow						-92 403 000
	Financial cash flow						31 329 000
	Receivables after due date total		35 402 000		41 700 000		53 224 000		46 233 000
	Receivables more than 180 days after due date		18 585 000		18 817 000		36 978 000		39 023 000
	Liabilities after due date total		23 964 000		31 616 000		22 826 000		51 526 000
	Liabilities more than 180 days after due date		646 000		1 881 000		1 633 000		1 302 000
Balance indices				31.12.2008		31.12.2009		31.12.2010		31.12.2011
Return on total assets ROA (in %)		a62/r1 * 100		4,67		0,64		0,51		-0,61
Return on equity ROE (in %)		a62/r68 * 100		14,66		1,82		1,43		-1,99
Return on sales ROS (in %)		a62/a1 * 100		5,78		1,31		0,90		-1,21
Turnover of receivables (in days)		r49/a1 * 365		80,89		42,39		78,31		137,40
Turnover of liabilities (in days)		r103/a1 * 365		48,89		78,49		67,81		105,69
Turnover of inventories (days)		r32/a1 * 365		154,50		351,93		226,47		245,51
Net working capital (in ths. CZK)		r31 - r102 - r116 - r117		45 564,00		29 936,00		31 619,00		37 185,00
Ratio of accounts payable to accounts receivable (in %)		(r39+r48) / (r91+r102) * 100		112,98		81,51		155,81		90,81
Ratio of profit/loss to tangible assets (in%)		r3 / a1 * 100		35,48		63,21		60,91		78,10
Current ratio		r31 / (r102+r116+r117)		1,06		1,04		1,05		1,05
Quick ratio		(r58+r48) / (r102+r116+r117)		0,52		0,29		0,47		0,45
Cash ratio		r58 / (r102+r116+r117)		0,08		0,06		0,03		0,07
Debt ratio I (in %)		(1-r68/r67) * 100		68,15		65,07		64,61		69,25
Debt ratio II (in %)		r85/r67 * 100		67,18		65,02		64,58		69,23

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.62
UK Pound	1	Rs.83.57
Euro	1	Rs.67.17

INFORMATION DETAILS

Report Prepared by :

PRL

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

Unit