MIRA INFORM REPORT

Report Date :

11.12.2013

IDENTIFICATION DETAILS

Name :	DEMONT SLOVAKIA S.R.O.
Registered Office :	Bočiarska 15, 040 15 Košice-Šaca
Country :	Slovakia
Financials (as on) :	31.12.2012
Date of Incorporation :	18.08.2007
Com. Reg. No.:	Sro 20250/V
Legal Form :	Limited Liability Company
Line of Business :	· Trading in metals such as stainless steel, nickel, iron, copper alloys, aluminum Environmental services such as asbestos removal, land reclamation, water purification, industrial demolition and dismantling
No. of Employees :	06

RATING & COMMENTS

MIRA’s Rating :

B

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

Status :	Moderate
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 – September 30th, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
Slovakia	A2	A2

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

Slovakia ECONOMIC OVERVIEW

Slovakia has made significant economic reforms since its separation from the Czech Republic in 1993. Reforms to the taxation, healthcare, pension, and social welfare systems helped Slovakia consolidate its budget and get on track to join the EU in 2004 after a period of relative stagnation in the early and mid 1990s and to adopt the euro in January 2009. Major privatizations are nearly complete, the banking sector is almost entirely in foreign hands, and the government has helped facilitate a foreign investment boom with business friendly policies. Slovakia's economic growth exceeded expectations in 2001-08 despite a general European slowdown. Foreign direct investment (FDI), especially in the automotive and electronic sectors, fueled much of the growth until 2008. Cheap and skilled labor, low taxes, no dividend taxes, a relatively liberal labor code, and a favorable geographical location are Slovakia's main advantages for foreign investors. The economy contracted 5% in 2009 primarily as a result of smaller inflows of FDI and reduced demand for Slovakia''s exports before rebounding in 2010-11, but growth slowed in 2012 due to weakening external demand. The government of Prime Minister Robert FICO in 2012 implemented tax increases on higher-earning individuals and corporations, effectively scrapping Slovakia''s flat tax to help meet budget deficit targets of 4.9% of GDP in 2012 and 3% of GDP in 2013.

Source : CIA

Company name & address

DEMONT SLOVAKIA s.r.o.
Bočiarska 15, 
040 15 Košice-Šaca 
Phone: 055 / 6253015
Telefax: 055 / 7290417
E-Mail: info@demontslovakia.sk
Web: www.demont.eu

Company summary

Legal form

Limited liability company (Ltd.)

Established on	18/08/2007 - Limited liability company (Ltd.)
	Last entry in Business register

	16.08.2012
Registered on	18/08/2007, Okresný súd Košice 1, RegNr.: Sro 20250/V Tax number: SK2022434392 Statistical number: 36820164

Registered capital		EUR	604 697,00
Owner	DEMONT AMBIENTE S.R.L. Via Torino 180, 301 70 Benátky Mestre, Italy	EUR	423 290,00

	DEMONT - SOCIETA´ A RESPONSABILITA´ LIMITATA Via Torino 180, 301 72 Benátky Mestre, Italy		EUR	181 407,00
Manager		Franco Gerotto Oriago di Mira via Lusore 19/b, 303 40 Benátky, Italy authorized to sign alone

General contacts:
Phone:
055/6253015
Telefax:
055/7290417
E-Mail:
info@demontslovakia.sk
Web:
www.demont.eu

Residence address:
Bočiarska 15, 040 15 Košice-Šaca 
Beginning of validity: 13.07.2011

Priemyselná oblasť Bočiar 626, 044 57 Bočiar 
Beginning of validity: 17.11.2010
End of validity: 12.07.2011

Kováčska 40, 040 01 Košice 
Beginning of validity: 18.08.2007
End of validity: 16.11.2010

Employees		2013	6 employees
Annual turnover	2011			Enterprise turnover	EUR	4 053 806,-

	2012		Enterprise turnover	EUR	3 530 774,-
Balance sheets		The enclosed balance of 2012 is originated from official source, we do not have information about the clause of the auditor. (31.12.2012 - 1 EUR) The enclosed balance of 2011 is originated from official source, we do not have information about the clause of the auditor. (31.12.2011 - 1 EUR)

	The enclosed profit/loss account of 2012 is originated from official source, we do not have information about the clause of the auditor. (31.12.2012 - 1 EUR) The enclosed profit/loss account of 2011 is originated from official source, we do not have information about the clause of the auditor. (31.12.2011 - 1 EUR)
Bank relations	VÚB a.s.:

Company development	Company development stagnative
Business course	downturning

Terms of payment	No complaints
Business connection	Providing credits require assurances. The establishing of the business connection is not rejected.
Activity	DEMONT Slovakia sro concentrated on expanding business activities of the parent companies group Demon: · Trading in metals (main activity of the company DEMONT Srl ) : stainless steel ( stainless steel ) , nickel, iron , copper alloys , aluminum Environmental services ( asbestos removal , land reclamation , water purification), industrial demolition and dismantling (main activity of the company DEMONT AMBIENTE )

Financial data

A. The enclosed balance of 2011 is originated from official source, we do not have information about the clause of the auditor. (31.12.2011 - 1 EUR)
B. The enclosed balance of 2012 is originated from official source, we do not have information about the clause of the auditor. (31.12.2012 - 1 EUR)

balance	A 31.12.2011	B 31.12.2012	C	D
Total assets	5 309 155	4 980 394
Non-current assets	1 389 614	1 432 263
Intangible fixed assets	0	0
Incorporation expenses
Development expenses	0	0
Software	0	0
Valuable rights	0	0
Goodwill	0	0
Other intangible fixed assets	0	0
Acquisition of intangible fixed assets	0	0
Advance payments for intangible fixed assets	0	0
Tangible fixed assets – total	1 295 873	1 301 751
Lands	154 214	159 501
Constructions	820 302	773 741
Separate movable assets and sets of movable assets	283 904	348 946
Perennial crops	0	0
Breeding and draught animals	0	0
Other tangible fixed assets	0	0
Acquisition of tangible fixed assets	19 463	19 563
Advance payments for tangible fixed assets	17 990	0
Adjustment to acquired assets	0	0
Long-term financial investments	93 741	130 512
Shares and ownership interests with control influence in enterprises	3 241	4 212
Shares and ownership interests with substantial influence of enterprises	0	0
Other long-term shares and ownership interests	0	0
Intercompany loans	90 500	126 300
Other long-term financial investments	0	0
Loans with maturity up to one year	0	0
Acquisition of long-term financial investments	0	0
Advance payments for long-term assets	0	0
Current assets	3 915 531	3 543 967
Inventory - total	1 744 601	1 445 539
Material	2 120	2 467
Work-in-progress and semi-finished goods	0	0
Construction contracts where the expected time of completion exceeds one year
Finished products	0	0
Animals	0	0
Merchandise	1 742 481	1 443 072
Advance payments made for inventory	0	0
Long-term receivables – total	1 222 666	1 111 374
Trade receivables	0	0
Net value of contract	0	0
Receivables from a controlled entity and a controlling entity	0	0
Other intercompany receivables	0	0
Receivables from participants, members and association	1 214 450	1 091 150
Other receivables	0	0
Deffered tax asset	8 216	20 224
Short - term receivables – total	931 390	922 580
Trade receivables	724 237	586 115
Net value of contract	0	0
Receivables from a controlled entity and a controlling entity	0	0
Other intercompany receivables	0	0
Receivables from participants, members and association	0	0
Social security	0	0
Taxation and subsidies	91 260	79 999
Other receivables	115 893	256 466
Financial accounts – total	16 874	64 474
Cash	2 146	14 836
Bank accounts	14 728	49 638
Bank accounts with notice period exceeding one year	0	0
Short-term financial assets	0	0
Acquisition of short-term financial assets	0	0
Prepayments	4 010	4 164
Deferred expenses long term	0	0
Deferred expenses short term	4 010	4 164
Accrued revenues long term	0	0
Accrued revenues short term	0	0
Total capital and liabilities	5 309 155	4 980 394
Capital	411 991	315 596
Registered capital - total	604 697	604 697
Registered capital – total	604 697	604 697
Own shares and own business shares	0	0
Change in registered capital	0	0
Receivables for subscriptions (for own equity capital)	0	0
Capital funds – total	-37 814	-36 843
Share premium	0	0
Other capital funds	0	0
Legal reserve fund (Non-distributable fund) from capital contributions	687	687
Gains or losses from revaluation of assets and liabilities	-38 501	-37 530
Gains or losses from investments	0	0
Gain or losses from revaluation from join and divesting	0	0
Funds created from profit – total	0	0
Legal reserve fund	0	0
Indivisible funds	0	0
Statutory funds and other funds	0	0
Retained profit or loss from previous years	-162 629	-154 892
Retained earnings from previous years	0	7 737
Retained earnings from previous years	-162 629	-162 629
Profit or loss for the accounting period	7 737	-97 366
Liabilities	4 897 162	4 664 695
Reserves – total	34 725	7 691
Legal reserves long term	0	0
Legal reserves short term	34 725	7 691
Other long-term reserves	0	0
Other short-term reserves	0	0
Long-term liabilities - total	63 990	98 957
Long-term trade liabilities – total	0	0
Net value of contract	0	0
Uninvoiced long-term supplies	0	0
Long-term liabilities to a controlled entity and a controlling entity	0	0
Other intercompany long-term liabilities	0	0
Long-term advances received	0	0
Long-term bills of exchange to a paid	0	0
Bonds issued	0	0
Liabilities from social fund	215	377
Other long-term liabilities	63 775	98 580
Deffered tax liability	0	0
Short-term liabilities - total	3 965 290	4 046 306
Trade liabilities	1 193 512	1 130 017
Net values of contract	0	0
Uninvoiced supplies	1 014	4 701
Liabilities to a controlled entity and a controlling entity	0	0
Other intercompany liabilities	0	0
Liabilities to partners and participants in association	2 692 087	2 800 528
Liabilities to employees	5 521	3 013
Social security liabilities	3 653	1 578
Taxation and subsidies	2 634	2 984
Other liabilities	66 869	103 485
Short-term financial assistance	0	0
Bank loans	833 157	511 741
Long-term bank loans	135 000	0
Current bank loans	698 157	511 741
Prepayments - total	2	103
Accrued expenses long term	0	0
Accrued expenses short term	2	103
Deferred revenues long term	0	0
Deferred revenues short term	0	0

A. The enclosed profit/loss account of 2011 is originated from official source, we do not have information about the clause of the auditor. (31.12.2011 - 1 EUR)
B. The enclosed profit/loss account of 2012 is originated from official source, we do not have information about the clause of the auditor. (31.12.2012 - 1 EUR)

profit/loss account	A 31.12.2011	B 31.12.2012	C	D
Revenue from the sale of merchandise	4 022 075	3 480 357
Cost of merchandise sold	3 918 733	2 910 822
Trade margin	103 342	569 535
Production	809 452	198 751
Revenue from the sale of own products and services	31 731	50 417
Change in inventory	0	0
Own work capitalized	777 721	148 334
Purchased consumables and services	445 156	362 472
Consumed raw materials, energy consumption and consumption of other non-inventory supplies	127 743	95 145
Services	317 413	267 327
Added value	467 638	405 814
Personnel expenses - total	154 199	124 813
Wages and salaries	113 734	91 695
Remuneration of board members	0	0
Social security expenses	33 274	24 984
Social expenses	7 191	8 134
Taxes and fees	11 336	12 726
Depreciation expense of intangible and tangible fixed assets	181 098	197 090
Revenues from sales of fixed assets and sales of materials	0	2 483
Net book value of fixed assets sold and material sold	0	0
Additions to and reversals of impairment losses	0	0
Other operating revenues	978 198	926 659
Other operating expenses	962 408	928 252
Transfer of operating revenues	0	0
Transfer of operating expenses	0	0
Profit or loss from operations	136 795	72 075
Revenues from sales of shares and ownership	0	0
Shares and ownership interests sold	0	0
Revenues from long-term financial assest	0	0
Revenues from ownership interests with control influence in enterprises and ownership interests with substantial influence of enterprises	0	0
Revenues from other long-term ownership and shares	0	0
Revenues from other long-term financial assest	0	0
Revenues from short-term financial assest	0	0
Expenses for short-term financial assets	0	0
Revenues from revaluation of securities and revenues from derivative operations	0	0
Expenses for revaluation of securities and expenses for derivative operations	0	0
Reversal and creation of value adjustments for financial assets	0	0
Interest income	60 727	10
Interest expense	171 197	170 956
Exchange rate gains	14 012	9 136
Exchanges rate losses	10 241	8 089
Other financial revenues	0	0
Other financial expenses	11 455	11 548
Transfer of financial revenues	0	0
Transfer of financial expenses	0	0
Profit or loss from financial activities	-118 154	-181 447
Profit or loss from ordinary activities before tax	18 641	-109 372
Income tax on ordinary activities	10 904	-12 006
- current	21	2
- deferred	10 883	-12 008
Profit or loss from ordinary activities after tax	7 737	-97 366
Extraordinary revenues	0	0
Extraordinary expenses	0	0
Profit or loss from extraordinary activities before tax	0	0
Income tax on extraordinary activities	0	0
- current	0	0
- deferred	0	0
Profit or loss from extraordinary activities after tax	0	0
Profit or loss of the accounting period before tax	18 641	-109 372
Transfer of profit or loss to partners	0	0
Profit or loss of the accounting period after tax	7 737	-97 366

Ratios		2011	2012
	Return on total assets ROA (in %)	0,15	-1,96

Return on equity ROE (in %)	1,88	-30,85
Rentabilität der Einnahmen ROS (in %)	0,19	-2,76

Turnover of receivables (in days)	65,21	60,59
Turnover of liabilities (in days)	107	117

Turnover of inventories (days)	157	149
Net working capital	-747916	-1014080

Ratio of accounts payable to accounts receivable	53,46	49,07
Ratio of profit/loss to tangible assets (in%)	34,28	40,57

Current ratio	0,58	0,53
Quick ratio	0,2	0,22

Cash ratio	0	0,01
Debt ratio I (in %)	92,24	93,66

Debt ratio II (in %)

92,24

93,66

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.21
UK Pound	1	Rs.100.65
Euro	1	Rs.84.15

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.