MIRA INFORM REPORT

Report Date :

20.07.2013

IDENTIFICATION DETAILS

Name :	MONDI COATING STETI A.S.
Registered Office :	Litoměřická 272 411 08 Štětí
Country :	Czech Republic
Financials (as on) :	31.12.2012
Date of Incorporation :	28.03.2001
Legal Form :	Public Limited Company
Line of Business :	Manufacture of other articles of paper and paperboard
No. of Employees :	135 employees

RATING & COMMENTS

MIRA’s Rating :

Ba

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	B1	B1

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 and address

Mondi Coating Steti a.s.

Litoměřická 272
411 08 Štětí

telephone: 00420/ 416 802 643
telefax: 00420/ 416 802 007
e-mail: coating@mondipackaging.com
e-mail: sarka.sebkova@mondipackaging.com
Web: www.mondigroup.com

Company details

Company development

Constant business development

Order situation	Satisfactory order situation
Terms of payment	mostly within agreed terms, but partly also delayed

Business connection

Business connections appear permissible

Legal form

Public limited company

Foundation	28/03/2001 - Public limited company
Comp. Register	28/03/2001, Krajský soud Ústí nad Labem, RegNr.: B 1360 Statistical number: 25428373 Tax number: CZ25428373

Share Capital	28/03/2001	CZK	2 000 000,-
	28/06/2001	CZK	35 148 000,-

04/12/2007		CZK	50 148 000,-
	1700 nominative shares at nominal value of CZK 10.000,- 33.148 common nominative shares at nominal value of CZK 1.000,- - in documentary form

Main Shareholder	Mondi Coating B.V. Maastricht, Fort Willemweg 1, 6219PA, Netherlands		%	100
Board of Directors		ing. David Chramosta (31.07.1967) Sluneční 621, 270 61 Lány chairman of board

Ing. Petr Tichý (22.05.1973)
Zbraslavice 74, 285 21 Zbraslavice

Ing. Robert Vávra (02.11.1967)
Libušina 877, 413 01 Roudnice nad Labem
vice-chairman of board

Supervisory Board	Dipl. Ing. Michael Strobl (27.05.1969) Judenburg, Siedlerstraße 6, 8750, Austria
	Ing. Jozef Opálený (13.05.1976) Davídkova 2375/29, 182 00 Praha 8 chairman of supervisory board

	Ing. Roman Ťopek (02.04.1979) U Sluncové 603, 186 00 Praha 8 - Karlín
General Data	Manufacture of fibrous material, of paper with polyethylene, of cardboard as well as of products made of these materials (wall papers, office supply, cardboards, packing material), lamination of paper.

Main activity: Manufacture of other articles of paper and paperboard		(17.29)
	Former name(s) Frantschach Coating Czech a.s. Beginning of validity: 28.03.2001 End of validity: 22.11.2004

	Trade name(s) Mondi Coating Štětí a.s. Beginning of validity: 22.11.2004
Export: Belgium France Germany Great Britain Ireland Italy Poland Slovakia		87%

Import: Germany Italy Poland Slovakia
	General contacts: telephone: 00420/ 416 802 643 telefax: 00420/ 416 802 007 e-mail: coating@mondipackaging.com sarka.sebkova@mondipackaging.com Web: www.mondigroup.com

		Address: Litoměřická 272, 411 08 Štětí Beginning of validity: 28.03.2001
Staff	2006		107 employees

2008	111 employees
2009	135 employees

2010	148 employees
2012	135 employees

Annual Sales	2005	actual sales	CZK	739 584 000,-
	2006	actual sales	CZK	820 557 000,-

2007	actual sales	CZK	1 068 874 000,-
2008	actual sales	CZK	1 013 561 000,-

2009	actual sales	CZK	1 127 588 000,-
2010	actual sales	CZK	1 390 657 000,-

2011	actual sales	CZK	1 490 873 000,-
2012	actual sales	CZK	1 475 559 000,-

Property

The real asset at the address of the registered office is in possession of the Mondi Štětí a.s.

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 from business register, it is authenticated by the auditor. (31.12.2011 - 1 CZK) The enclosed balance of 2010 from business register, -. (31.12.2010 - 1 CZK) The enclosed balance of 2009 from business register, -. (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 from business register, it is authenticated by the auditor. (31.12.2011 - 1 CZK) The enclosed profit/loss account of 2010 from business register, -. (31.12.2010 - 1 CZK) The enclosed profit/loss account of 2009 from business register, -. (31.12.2009 - 1 CZK)

Business management:
ing. David Chramosta - executive director
ing. Robert Vávra - financial director

Contact:
Ms. Hejsková - chief accountant

Bankers

Account number: DE14500700100175008200 Account number: GB52DEUT40508128316000 Account number: GB52DEUT40508128316001 UniCredit Bank Czech Republic, a.s. Account number: 805558001/2700

(2700)

Financials

		balance		31.12.2009 (CZK)		31.12.2010 (CZK)		31.12.2011 (CZK)		31.12.2012 (CZK)
r1		TOTAL ASSETS		759 891 000		790 445 000		680 447 000		764 669 000
r2		Receivables for subscriptions		0		0		0		0
r3		Fixed assets		392 465 000		378 309 000		358 599 000		348 098 000
r4		Intangible fixed assets		11 367 000		7 035 000		3 199 000		5 641 000
r5		Incorporation expenses		0		0
r6		Research and development		0		0
r7		Software		8 000 000		4 528 000		1 552 000
r8		Valuable rights		3 367 000		2 507 000		1 647 000		788 000
r9		Goodwill		0		0
r10		Other intangible fixed assets		0		0
r11		Intangible fixed assets under construction		0		0				4 853 000
r12		Advance payments for intangible fixed assets		0		0
r13		Tangible fixed assets		381 098 000		371 274 000		355 400 000		342 457 000
r14		Lands		1 079 000		1 174 000		1 174 000		1 174 000
r15		Constructions		171 153 000		167 837 000		167 511 000		165 598 000
r16		Equipment		206 654 000		179 329 000		181 809 000		164 917 000
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		159 000		19 035 000		3 416 000		8 050 000
r21		Advance payments for tangible fixed assets		2 053 000		3 899 000		1 490 000		2 718 000
r22		Adjustment to acquired assets		0		0
r23		Long-term financial assets		0		0		0		0
r24		Shares in controlled and managed organizations		0		0
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		0		0
r29		Financial investments acquired		0		0
r30		Advance payments for long-term financial assets		0		0
r31		Current assets		356 529 000		399 786 000		315 456 000		411 115 000
r32		Inventory		141 516 000		150 708 000		95 895 000		166 584 000
r33		Materials		71 356 000		62 446 000		42 336 000		84 113 000
r34		Work in progress and semi-products		5 634 000		5 911 000		2 572 000		7 119 000
r35		Finished products		64 526 000		82 351 000		50 987 000		75 352 000
r36		Animals		0		0
r37		Merchandise		0		0
r38		Advance payments for inventory		0		0
r39		Long-term receivables		1 627 000		0		2 107 000		5 002 000
r40		Trade receivables		0		0
r41		Receivables from controlled and managed organizations		0		0
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		1 627 000		0		2 107 000		5 002 000
r48		Short-term receivables		212 757 000		248 342 000		217 305 000		239 484 000
r49		Trade receivables		187 025 000		211 617 000		203 063 000		222 273 000
r50		Receivables from controlled and managed organizations		9 398 000		10 342 000
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		15 935 000		24 068 000		13 958 000		15 748 000
r55		Short-term deposits given		90 000		125 000		125 000		125 000
r56		Estimated receivable		309 000		403 000		68 000		436 000
r57		Other receivables		0		1 787 000		91 000		902 000
r58		Short-term financial assets		629 000		736 000		149 000		45 000
r59		Cash		466 000		175 000		27 000		2 000
r60		Bank accounts		163 000		561 000		122 000		43 000
r61		Short-term securities and ownership interests		0		0
r62		Short-term financial assets acquired		0		0
r63		Accruals		10 897 000		12 350 000		6 392 000		5 456 000
r64		Deferred expenses		58 000		126 000		65 000		215 000
r65		Complex deferred costs		0		0				5 241 000
r66		Deferred income		10 839 000		12 224 000		6 327 000
r67		TOTAL LIABILITIES		759 891 000		790 445 000		680 447 000		764 669 000
r68		Equity		259 282 000		284 018 000		280 144 000		336 734 000
r69		Registered capital		50 148 000		50 148 000		50 148 000		50 148 000
r70		Registered capital		50 148 000		50 148 000		50 148 000		50 148 000
r71		Company’s own shares and ownership interests (-)		0		0
r72		Changes of registered capital ( +/- )		0		0
r73		Capital funds		0		0		0		0
r74		Share premium		0		0
r75		Other capital funds		0		0
r76		Differences from revaluation of assets and liabilities ( +/- )		0		0
r77		Differences from revaluation in transformation ( +/- )		0		0
r78		Reserve funds, statutory reserve account for cooperatives, and other retained earnings		11 974 000		10 030 000		10 030 000		10 030 000
r79		Legal reserve fund / indivisible fund		10 030 000		10 030 000		10 030 000		10 030 000
r80		Statutory and other funds		1 944 000		0
r81		Profit / loss - previous years		153 793 000		173 686 000		175 060 000		180 303 000
r82		Retained earnings from previous years		153 793 000		173 686 000		175 060 000		180 303 000
r83		Accumulated losses from previous years		0		0
r84		Profit / loss - current year (+/-)		43 367 000		50 154 000		44 906 000		96 253 000
r85		Liabilities		500 609 000		506 427 000		400 303 000		427 935 000
r86		Reserves		26 505 000		13 252 000		20 379 000		29 080 000
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		26 505 000		13 252 000		20 379 000
r91		Long-term payables		0		2 376 000		0		0
r92		Trade payables		0		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		1 802 000
r100		Other payables		0		0
r101		Deferred tax liability		0		574 000
r102		Short-term payables		474 104 000		490 799 000		379 924 000		398 855 000
r103		Trade payables		175 452 000		151 158 000		107 079 000		134 726 000
r104		Payables to controlled and managed organizations		248 209 000		273 887 000		220 416 000		217 448 000
r105		Payables to accounting units with substantial influence		0		0
r106		Payables from partners, cooperative members and association members		0		0
r107		Payroll		3 049 000		3 335 000		3 097 000		3 937 000
r108		Payables to social securities and health insurance		1 557 000		1 933 000		1 766 000		1 782 000
r109		Due from state - tax liabilities and subsidies		3 747 000		575 000		1 456 000		1 572 000
r110		Short-term deposits received		0		0
r111		Issues bonds		0		0
r112		Estimated payables		37 492 000		59 746 000		44 406 000		38 669 000
r113		Other payables		4 598 000		165 000		1 704 000		721 000
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		0		0
r119		Accrued expenses		0		0
r120		Deferred revenues		0		0
	profit/loss account		31.12.2009 (CZK)		31.12.2010 (CZK)		31.12.2011 (CZK)		31.12.2012 (CZK)
a1	Turnover		1 127 588 000		1 390 657 000		1 490 873 000		1 475 559 000
a2	Revenues from sold goods		467 000		6 450 000		1 454 000		0
a3	Expenses on sold goods		472 000		6 801 000		4 795 000		0
a4	Sale margin		-5 000		-351 000		-3 341 000		0
a5	Production		1 166 956 000		1 401 823 000		1 454 082 000		1 498 081 000
a6	Revenues from own products and services		1 127 121 000		1 384 207 000		1 489 419 000		1 475 559 000
a7	Change in inventory of own products		39 637 000		17 616 000		-35 337 000		22 522 000
a8	Capitalization		198 000		0
a9	Production consumption		1 004 849 000		1 278 988 000		1 275 262 000		1 288 543 000
a10	Consumption of material and energy		828 117 000		1 079 316 000		1 092 424 000		1 096 937 000
a11	Services		176 732 000		199 672 000		182 838 000		191 605 000
a12	Added value		162 102 000		122 484 000		175 479 000		209 538 000
a13	Personnel expenses		66 492 000		75 841 000		81 051 000		74 290 000
a14	Wages and salaries		48 864 000		54 348 000		58 679 000		53 782 000
a15	Renumeration of board members		0		0
a16	Social security expenses and health insurance		16 083 000		18 415 000		19 831 000		17 403 000
a17	Other social expenses		1 545 000		3 078 000		2 541 000		3 105 000
a18	Taxes and fees		152 000		334 000		326 000		281 000
a19	Depreciations of intangible and tangible assets		42 333 000		43 658 000		46 332 000		47 627 000
a20	Revenues from disposals of fixed assets and materials		4 154 000		9 962 000		13 093 000		7 773 000
a21	Revenues from disposals of fixed assets		3 000		21 000		2 000		170 000
a22	Revenues from disposals of materials		4 151 000		9 941 000		13 091 000		7 603 000
a23	Net book value of disposed fixed assets and materials		104 000		45 000		27 000		65 000
a24	Net book value of sold fixed assets		0		45 000		27 000		65 000
a25	Net book value of sold material		104 000		0
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )		5 479 000		-17 756 000		10 194 000		-1 970 000
a27	Other operating revenues		2 687 000		11 625 000		8 990 000		14 432 000
a28	Other operating expenses		3 969 000		5 661 000		5 734 000		11 048 000
a29	Transfer of operating revenues		0		0
a30	Transfer of operating expenses		0		0
a31	Operating profit / loss		50 414 000		36 288 000		53 898 000		100 402 000
a32	Revenues from sales of securities and ownership interests		0		0
a33	Sold securities and ownership interests		0		0
a34	Revenues from long-term financial assets		0		0		0		0
a35	Revenues from shares in controlled and managed organizations and in accounting units with substantial influence		0		0
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		1 704 000				2 329 000
a41	Cost of revaluation of securities and derivatives		0		0		1 513 000
a42	Change in financial reserves and adjustments ( + / - )		0		0
a43	Interest revenues		116 000		64 000		129 000		31 000
a44	Interest expenses		5 457 000		11 425 000		9 711 000		4 469 000
a45	Other financial revenues		46 843 000		30 230 000		33 499 000		28 972 000
a46	Other financial expenses		35 044 000		30 998 000		32 021 000		30 639 000
a47	Transfer of financial revenues		0		0
a48	Transfer of financial expenses		0		0
a49	Profit / loss from financial operations ( transactions )		6 458 000		-10 425 000		-9 617 000		-3 776 000
a50	Income tax on ordinary income		13 505 000		-24 291 000		-625 000		372 000
a51	Due tax		13 255 000		-26 492 000		2 056 000		3 267 000
a52	Tax deferred		250 000		2 201 000		-2 681 000		-2 895 000
a53	Operating profit / loss ordinary activity		43 367 000		50 154 000		44 906 000		96 253 000
a54	Extraordinary revenues		0		0
a55	Extraordinary expenses		0		0
a56	Income tax on extraordinary income		0		0		0		0
a57	Due tax		0		0
a58	Tax deferred		0		0
a59	Operating profit / loss extraordinary activity		0		0		0		0
a60	Transfer profit ( loss ) to partners (+/-)		0		0
a61	Profit / loss of current accounting period (+/-)		43 367 000		50 154 000		44 906 000		96 253 000
a62	Profit / loss before tax (+/-)		56 872 000		25 863 000		44 281 000		96 625 000
	Operating cash flow						117 969 000		80 307 000
	Investment cash flow						-26 647 000		-37 780 000
	Financial cash flow						-91 909 000		-42 631 000
	Receivables after due date total		35 212 000		47 129 000
	Liabilities after due date total		41 045 000		18 274 000

Balance indices		31.12.2009	31.12.2010	31.12.2011	31.12.2012
Return on total assets ROA (in %)	a62/r1 * 100	7,48	3,27	6,51	12,64
Return on equity ROE (in %)	a62/r68 * 100	21,93	9,11	15,81	28,69
Return on sales ROS (in %)	a62/a1 * 100	5,04	1,86	2,97	6,55
Turnover of receivables (in days)	r49/a1 * 365	60,54	55,54	49,71	54,98
Turnover of liabilities (in days)	r103/a1 * 365	56,79	39,67	26,22	33,33
Turnover of inventories (days)	r32/a1 * 365	45,81	39,56	23,48	41,21
Net working capital (in ths. CZK)	r31 - r102 - r116 - r117	-117 575,00	-91 013,00	-64 468,00	12 260,00
Ratio of accounts payable to accounts receivable (in %)	(r39+r48) / (r91+r102) * 100	45,22	50,36	57,75	61,30
Ratio of profit/loss to tangible assets (in%)	r3 / a1 * 100	34,81	27,20	24,05	23,59
Current ratio	r31 / (r102+r116+r117)	0,75	0,81	0,83	1,03
Quick ratio	(r58+r48) / (r102+r116+r117)	0,45	0,51	0,57	0,60
Cash ratio	r58 / (r102+r116+r117)	0,00	0,00	0,00	0,00
Debt ratio I (in %)	(1-r68/r67) * 100	65,88	64,07	58,83	55,96
Debt ratio II (in %)	r85/r67 * 100	65,88	64,07	58,83	55,96

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.79
UK Pound	1	Rs.91.03
Euro	1	Rs.78.52

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.