MIRA INFORM REPORT

Report Date :

11.07.2013

IDENTIFICATION DETAILS

Name :	J 4 S.R.O.

Registered Office :	Průmyslová, 96 503 02 Předměřice Nad Labem

Country :	Czech Republic

Financials (as on) :	31.12.2012

Date of Incorporation :	26.04.1994

Com. Reg. No.:	C 6207

Legal Form :	Private limited company

Line of Business :	Manufacture of ovens, furnaces and furnace burners

No. of Employees :	90 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 – March 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 closely integrated with the EU, especially since the country's 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, slowly recovered with positive quarter-on-quarter growth starting in the second half of 2009 and continuing throughout 2011. In 2012, however, the economy fell into a recession due to a slump in external demand. 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

J 4 S.R.O.

Průmyslová 96
503 02 Předměřice nad Labem

telephone          : 00420/ 495 581 137 - 9
telefax              : 00420/ 495 581 321
e-mail               : j4@j4.cz
Web                 : www.j-4.cz

Company details

Company development

Positive company development

Order situation	Satisfactory 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	26/04/1994 - Private limited company
Comp. Register	26/04/1994, Krajský soud Hradec Králové, RegNr.: C 6207 Statistical number: 60935731 Tax number: CZ60935731

Share Capital	26/04/1994	CZK	100 000,-
	11/01/1995	CZK	200 000,-

	23/01/2004		CZK	300 000,-
01/04/2005		CZK			400 000,-

Shareholders	Ing. Jiří Černík (10.12.1953) Srch 158, 533 52 Staré Hradiště u Pardubic	CZK	130 000,-
	Ing. Josef Mázl (11.05.1950) Na Rybárně 1524, 500 05 Hradec Králové	CZK	98 000,-

	Jiří Souček (25.08.1945) K Zámečku 401, 530 03 Pardubice	CZK	86 000,-
	Jan Dubišar (23.06.1952) Husova 1673, 530 03 Pardubice	CZK	54 000,-

	Josef Mázl (18.06.1978) Na Rybárně 1524, 500 02 Hradec Králové		CZK	32 000,-
Management		Ing. Jiří Černík (10.12.1953) Srch 158, 533 52 Staré Hradiště u Pardubic Executive Manager

	Jan Dubišar (23.06.1952) Husova 1673, 530 03 Pardubice Executive Manager
	Jiří Souček (25.08.1945) K Zámečku 401, 530 03 Pardubice Executive Manager

	Josef Mázl (18.06.1978) Na Rybárně 1524, 500 02 Hradec Králové Executive Manager
General Data	Manufacture and sale of conveyor furnaces of bakeries, of dryers and lines used by bakers and pastry manufacturers. Export: 85% - Europe, South America, Middle and Near East, Africa

Main activity: Manufacture of ovens, furnaces and furnace burners		(28.21)
	Former name(s) J - 4 s.r.o. Beginning of validity: 26.04.1994 End of validity: 10.09.1997

	Trade name(s) J 4 s.r.o. Beginning of validity: 10.09.1997
	General contacts: telephone: 00420/ 495 581 137 - 9 telefax: 00420/ 495 581 321 e-mail: j4@j4.cz Web: www.j-4.cz

	Address: Průmyslová 96, 503 02 Předměřice nad Labem Beginning of validity: 10.09.1997
	Skladištní oblast 848, 500 07 Hradec Králové Beginning of validity: 26.04.1994 End of validity: 10.09.1997

Staff	2006	77 employees
	2008	77 employees

	2011	84 employees
	2012	89 employees

		2013	90 employees
Annual Sales	2005			actual sales	CZK	108 197 000,-

	2006	actual sales	CZK	193 652 000,-
	2007	actual sales	CZK	297 662 000,-

	2008	actual sales	CZK	312 479 000,-
	2009	actual sales	CZK	370 539 000,-

	2010	actual sales	CZK	313 065 000,-
	2011	actual sales	CZK	207 566 000,-

	2012		actual sales	CZK	367 947 000,-
Property		Property of the company: Business premises 503 02 Předměřice nad Labem , Průmyslová 96

Balance sheets	The enclosed balance of 2012 from business register, it is authenticated by the auditor. (31.12.2012 - 1 CZK) The enclosed balance of 2011 company's own data, -. (31.12.2011 - 1 CZK) The enclosed balance of 2010 company's own data, -. (31.12.2010 - 1 CZK) The enclosed balance of 2009 company's own data, -. (31.12.2009 - 1 CZK)
	The enclosed profit/loss account of 2012 from business register, it is authenticated by the auditor. (31.12.2012 - 1 CZK) The enclosed profit/loss account of 2011 company's own data, -. (31.12.2011 - 1 CZK) The enclosed profit/loss account of 2010 company's own data, -. (31.12.2010 - 1 CZK) The enclosed profit/loss account of 2009 company's own data, -. (31.12.2009 - 1 CZK)

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. Martin Filipi – company director, e-mail: mfilipi@j4.cz Other entrepreneurial interests: Ing. Jiří Černík - PERNÍK s.r.o., IČ 25299077, associate 32,5% Contact: Mrs. Vernerová, chief accountant, phone: 00420/ 495 581 137, e-mail: uctarna@j4.cz Hana Wáhlová, accountant Alena Cabicarová, external accountant

Bankers

Komerční banka, a.s.
Account number: 556020277/0100
Account number: 27-2044480287/0100

		balance		31.12.2009 (CZK)		31.12.2010 (CZK)		31.12.2011 (CZK)		31.12.2012 (CZK)
r1		TOTAL ASSETS		400 213 000		460 653 000		422 597 000		446 243 000
r2		Receivables for subscriptions		0		0		0		0
r3		Fixed assets		82 395 000		85 373 000		93 601 000		73 170 000
r4		Intangible fixed assets		1 111 000		769 000		769 000		85 000
r8		Valuable rights		1 111 000		769 000		769 000		85 000
r13		Tangible fixed assets		49 315 000		52 201 000		54 563 000		53 988 000
r14		Lands		26 006 000		29 206 000		29 206 000		30 229 000
r15		Constructions		9 199 000		8 511 000		17 107 000		18 943 000
r16		Equipment		7 926 000		5 912 000		7 419 000		4 816 000
r20		Tangible fixed assets under construction		6 184 000		8 572 000		831 000
r23		Long-term financial assets		31 969 000		32 403 000		38 269 000		19 097 000
r28		Other financial investments		31 967 000		32 401 000		38 266 000		19 097 000
r29		Financial investments acquired		2 000		2 000		3 000
r31		Current assets		308 480 000		363 432 000		317 986 000		363 851 000
r32		Inventory		33 138 000		35 355 000		45 044 000		38 909 000
r33		Materials		22 405 000		26 038 000		45 044 000		24 941 000
r34		Work in progress and semi-products		10 733 000		9 317 000				12 299 000
r37		Merchandise								1 669 000
r39		Long-term receivables		141 859 000		126 331 000		0		74 175 000
r40		Trade receivables		141 859 000		126 331 000				74 175 000
r48		Short-term receivables		70 854 000		125 094 000		197 189 000		158 217 000
r49		Trade receivables		63 580 000		106 927 000		183 196 000		143 746 000
r54		Due from state - tax receivable				10 574 000				2 438 000
r55		Short-term deposits given		5 388 000		5 152 000		10 335 000		9 178 000
r57		Other receivables		1 886 000		2 441 000		3 658 000		2 855 000
r58		Short-term financial assets		62 629 000		76 652 000		75 753 000		92 550 000
r59		Cash		268 000		350 000		86 000		435 000
r60		Bank accounts		62 361 000		76 302 000		75 667 000		92 115 000
r63		Accruals		9 338 000		11 848 000		11 010 000		9 222 000
r64		Deferred expenses		9 283 000		11 635 000		11 010 000		8 752 000
r66		Deferred income		55 000		213 000				470 000
r67		TOTAL LIABILITIES		400 213 000		460 653 000		422 597 000		446 243 000
r68		Equity		273 764 000		295 646 000		304 880 000		325 231 000
r69		Registered capital		400 000		400 000		400 000		400 000
r70		Registered capital		400 000		400 000		400 000		400 000
r73		Capital funds		554 000		1 006 000		939 000		370 000
r76		Differences from revaluation of assets and liabilities ( +/- )		554 000		1 006 000		939 000		370 000
r78		Reserve funds, statutory reserve account for cooperatives, and other retained earnings		40 000		40 000		40 000		40 000
r79		Legal reserve fund / indivisible fund		40 000		40 000		40 000		40 000
r81		Profit / loss - previous years		204 417 000		265 570 000		289 399 000		295 500 000
r82		Retained earnings from previous years		204 417 000		265 570 000		289 399 000		295 500 000
r84		Profit / loss - current year (+/-)		68 353 000		28 630 000		14 102 000		28 921 000
r85		Liabilities		118 151 000		162 690 000		117 207 000		104 612 000
r86		Reserves		2 020 000		2 020 000		2 020 000		0
r87		Reserves under special statutory regulations		2 020 000		2 020 000		2 020 000
r91		Long-term payables		0		0		0		0
r102		Short-term payables		94 097 000		84 110 000		63 791 000		76 134 000
r103		Trade payables		64 691 000		45 973 000		32 793 000		44 418 000
r106		Payables from partners, cooperative members and association members		149 000		161 000		-2 012 000		125 000
r107		Payroll		1 659 000		1 640 000		-1 713 000		1 748 000
r108		Payables to social securities and health insurance		906 000		972 000		-1 175 000		889 000
r109		Due from state - tax liabilities and subsidies		973 000				-17 075 000
r110		Short-term deposits received		10 506 000		15 799 000		49 056 000		22 684 000
r112		Estimated payables		15 199 000		19 535 000		3 925 000		6 259 000
r113		Other payables		14 000		30 000		-8 000		11 000
r114		Bank loans and financial accommodations		22 034 000		76 560 000		51 396 000		28 478 000
r115		Long-term bank loans		22 034 000		76 560 000		51 396 000		28 478 000
r116		Short-term bank loans		0		0		0		0
r117		Short-term accommodations		0		0		0		0
r118		Accruals		8 298 000		2 317 000		510 000		16 400 000
r119		Accrued expenses		5 178 000		912 000				15 475 000
r120		Deferred revenues		3 120 000		1 405 000		510 000		925 000
	profit/loss account		31.12.2009 (CZK)		31.12.2010 (CZK)		31.12.2011 (CZK)		31.12.2012 (CZK)
a1	Turnover		370 539 000		313 065 000		207 566 000		367 947 000
a2	Revenues from sold goods		134 172 000		57 963 000		28 194 000		114 334 000
a3	Expenses on sold goods		112 427 000		51 733 000		30 493 000		98 035 000
a4	Sale margin		21 745 000		6 230 000		-2 299 000		16 299 000
a5	Production		238 263 000		253 758 000		170 055 000		251 652 000
a6	Revenues from own products and services		236 367 000		255 102 000		179 372 000		253 613 000
a7	Change in inventory of own products		400 000		-1 416 000		-9 317 000		-2 407 000
a8	Capitalization		1 496 000		72 000				446 000
a9	Production consumption		148 390 000		175 147 000		118 229 000		184 399 000
a10	Consumption of material and energy		67 508 000		98 618 000		62 611 000		111 105 000
a11	Services		80 882 000		76 529 000		55 618 000		73 294 000
a12	Added value		111 618 000		84 841 000		49 527 000		83 552 000
a13	Personnel expenses		30 825 000		34 684 000		28 007 000		34 763 000
a14	Wages and salaries		22 937 000		25 682 000		20 669 000		25 753 000
a16	Social security expenses and health insurance		7 491 000		8 633 000		6 926 000		8 570 000
a17	Other social expenses		397 000		369 000		412 000		440 000
a18	Taxes and fees		118 000		176 000		72 000		945 000
a19	Depreciations of intangible and tangible assets		4 729 000		5 801 000		0		3 858 000
a20	Revenues from disposals of fixed assets and materials		1 288 000		2 780 000		2 584 000		3 750 000
a21	Revenues from disposals of fixed assets				161 000		17 000		731 000
a22	Revenues from disposals of materials		1 288 000		2 619 000		2 567 000		3 019 000
a23	Net book value of disposed fixed assets and materials		0		2 356 000		0		316 000
a24	Net book value of sold fixed assets				106 000				97 000
a25	Net book value of sold material				2 250 000				219 000
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )		-7 817 000		-1 000		0		-4 000
a27	Other operating revenues		443 000		11 908 000		295 000		1 297 000
a28	Other operating expenses		3 016 000		15 188 000		4 678 000		6 944 000
a31	Operating profit / loss		82 478 000		41 325 000		19 649 000		41 777 000
a32	Revenues from sales of securities and ownership interests				8 000 000
a33	Sold securities and ownership interests		33 000		8 017 000
a34	Revenues from long-term financial assets		175 000		190 000				495 000
a35	Revenues from shares in controlled and managed organizations and in accounting units with substantial influence				190 000				495 000
a37	Revenues from other long-term financial assets		175 000
a38	Revenues from short-term financial assets		3 000
a43	Interest revenues		3 138 000		482 000		436 000		338 000
a44	Interest expenses		413 000		1 977 000		2 304 000		2 076 000
a45	Other financial revenues		6 544 000		8 804 000		949 000		2 848 000
a46	Other financial expenses		8 276 000		13 171 000		4 629 000		7 590 000
a49	Profit / loss from financial operations ( transactions )		1 138 000		-5 689 000		-5 548 000		-5 985 000
a50	Income tax on ordinary income		15 734 000		7 006 000		0		6 871 000
a51	Due tax		15 734 000		7 006 000				6 871 000
a53	Operating profit / loss ordinary activity		67 882 000		28 630 000		14 101 000		28 921 000
a54	Extraordinary revenues		471 000
a56	Income tax on extraordinary income								0
a59	Operating profit / loss extraordinary activity		471 000		0		0		0
a61	Profit / loss of current accounting period (+/-)		68 353 000		28 630 000		14 101 000		28 921 000
a62	Profit / loss before tax (+/-)		84 087 000		35 636 000		14 101 000		35 792 000
	Receivables after due date total						10 748 000		24 706 000
	Receivables more than 180 days after due date						2 143 000		7 203 000
	Liabilities after due date total						13 893 000		12 439 000
	Liabilities more than 180 days after due date						4 770 000		998 000

Balance indices		31.12.2009	31.12.2010	31.12.2011	31.12.2012
Return on total assets ROA (in %)	a62/r1 * 100	21,01	7,74	3,34	8,02
Return on equity ROE (in %)	a62/r68 * 100	30,72	12,05	4,63	11,01
Return on sales ROS (in %)	a62/a1 * 100	22,69	11,38	6,79	9,73
Turnover of receivables (in days)	r49/a1 * 365	62,63	124,67	322,15	142,59
Turnover of liabilities (in days)	r103/a1 * 365	63,72	53,60	57,67	44,06
Turnover of inventories (days)	r32/a1 * 365	32,64	41,22	79,21	38,60
Net working capital (in ths. CZK)	r31 - r102 - r116 - r117	214 383,00	279 322,00	254 195,00	287 717,00
Ratio of accounts payable to accounts receivable (in %)	(r39+r48) / (r91+r102) * 100	226,06	298,92	309,12	305,24
Ratio of profit/loss to tangible assets (in%)	r3 / a1 * 100	22,24	27,27	45,09	19,89
Current ratio	r31 / (r102+r116+r117)	3,28	4,32	4,98	4,78
Quick ratio	(r58+r48) / (r102+r116+r117)	1,42	2,40	4,28	3,29
Cash ratio	r58 / (r102+r116+r117)	0,67	0,91	1,19	1,22
Debt ratio I (in %)	(1-r68/r67) * 100	31,60	35,82	27,86	27,12
Debt ratio II (in %)	r85/r67 * 100	29,52	35,32	27,73	23,44

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.13
UK Pound	1	Rs.89.52
Euro	1	Rs.76.89

INFORMATION DETAILS

Report Prepared by :

NLM

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

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