MIRA INFORM REPORT

Report Date :

22.07.2013

IDENTIFICATION DETAILS

Name :	BAG SOLUTIONS WORLDWIDE S.R.O.

Registered Office :	Háj 357 798 12 Kralice na Hané

Country :	Czech Republic

Financials (as on) :	31.12.2010

Date of Incorporation :	26.10.2005

Com. Reg. No.:	C 50089

Legal Form :	Private Limited Company

Line of Business :	Manufacture of other general-purpose machinery

No. of Employees :	85

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
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 and address

Bag Solutions Worldwide s.r.o.

Háj 357
798 12 Kralice na Hané

telephone: 00420/ 582 305 010
telefax: 00420/ 582 305 033
e-mail: office@bswtex.cz
Web: www.bswtex.cz

Company details

Company development

Constant company development

Order situation

Satisfactory course of business

Business connection

Business connections are not denied


Legal form	Private limited company

Foundation	26/10/2005 - Private limited company
Comp. Register	26/10/2005, Krajský soud v Brně, RegNr.: C 50089 Statistical number: 27664066 Tax number: CZ27664066

Share Capital	26/10/2005		CZK			13 645 000,-
Shareholders		Windmöller & Hölscher GmbH Münsterstrasse 50, 495 25 Lengerich, Germany		CZK	10 267 000,-

	Ing. Günter Wais (24.03.1960) Franz Loidl Str. 10, 1220 Wien, Austria	CZK	1 126 000,-
	Ing. Peter Schmalholz (23.06.1960) Strandstr. 111, 2331 Vösendorf, Austria	CZK	1 126 000,-

	Thomas Breitenberger (13.09.1969) Hainfelder Str. 23, 2563 Pottenstein, Austria		CZK	1 126 000,-
Management		Theodor Josef Determann (16.03.1970) Bergstrasse 34, 495 25 Lengerich, Germany Executive Manager

	Thomas Breitenberger (13.09.1969) Hainfelder Str. 23, 2563 Pottenstein, Austria Executive Manager
	Ing. Günter Wais (24.03.1960) Franz Loidl Str. 10, 1220 Wien, Austria confidential clerk

	Ing. Peter Schmalholz (23.06.1960) Strandstr. 111, 2331 Vösendorf, Austria confidential clerk
General Data	Development and manufacture of machines and equipment for flexible packing material production from polypropylene tissue. Export: 100% whole world

Main activity: Manufacture of other general-purpose machinery n.e.c.		(28.29)
	Trade name(s) Bag Solutions Worldwide s.r.o. Beginning of validity: 26.10.2005

	Import: European Union

	Address: Háj 357, 798 12 Kralice na Hané Beginning of validity: 27.03.2013
	- vedení, kanceláře, výroba Kralický Háj 357, 798 12 Kralice na Hané Beginning of validity: 21.12.2011 End of validity: 27.03.2013 telephone: 00420/ 582 3050 22 00420/ 582 305 010 telefax: 00420/ 582 305 033 e-mail: office@bswtex.cz Web: www.bswtex.cz

	Háj 357, 798 12 Kralice na Hané Beginning of validity: 18.04.2006 End of validity: 21.12.2011
	IBC-Příkop 4, 602 00 Brno Beginning of validity: 26.10.2005 End of validity: 18.04.2006

Staff	2006	20 employees
	2007	33 employees

	2008	42 employees
	2009	52 employees

	2010	65 employees
	2011	78 employees

	2012	85 employees
	2013	85 employees

Annual Sales	2005	actual sales	CZK	0,-
	2006	actual sales	CZK	89 586 000,-

	2007	actual sales	CZK	323 750 000,-
	2008	actual sales	CZK	648 946 000,-

	2009	actual sales	CZK	630 769 000,-
	2010	actual sales	CZK	1 007 515 000,-

2011		projected sales	CZK	1 000 000 000,-
	according to own data The company does not provide its current economic data.


Property	none

Balance sheets

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 balance of 2007. (31.12.2007 - 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 from business register, it is authenticated by the auditor. (31.12.2008 - 1 CZK)
The enclosed profit/loss account of 2007 from business register, -. (31.12.2007 - 1 CZK)

Remarks

The company contrary to the Act on Accounting did not store its current
final accounts to the Companies Register.

The company does not provide its current final accounts even upon a written request.

The company was challenged to fulfil its duty to store its final account at the Companies Register.

We have asked the firm management in written form to send final account.
In case that we receive account statements, we will send you a.

All the sources of negative data accessible to public (insolvency registers, databases of debtors of health insurance institutions, commercial bulletin, collection database of others) are currently monitored.

The final accounts for the year 2011 are not available yet.

In January 2009 there was remission of obligations amounting to EUR 930 thousand from the part of the controlling subject Windmöller & Hölscher KG towards the inquired company; this amount has been deduced from other production revenues.

The inquired company has taken up its activities in 2006.

Contact:
Mrs.. Kuldová - accountant
M. Latýn - economic department chief, phone: 00420/ 582 305 019, e-mail: m.latyn@bswtex.cz

Bankers

Československá obchodní banka, a. s.
Account number: 17751273/0300
Account number: 171280-0017751273/0300

(0300)

Financials

		balance		31.12.2007 (CZK)		31.12.2008 (CZK)		31.12.2009 (CZK)		31.12.2010 (CZK)
r1		TOTAL ASSETS		261 244 000		264 180 000		365 405 000		502 057 000
r2		Receivables for subscriptions		0		0		0
r3		Fixed assets		30 107 000		27 426 000		23 146 000		24 221 000
r4		Intangible fixed assets		6 106 000		9 816 000		9 626 000		9 291 000
r5		Incorporation expenses		524 000		344 000		164 000
r7		Software				10 000				92 000
r8		Valuable rights								9 199 000
r11		Intangible fixed assets under construction		5 582 000		9 462 000		9 462 000
r13		Tangible fixed assets		22 002 000		15 588 000		11 532 000		13 048 000
r14		Lands		0		0		0
r15		Constructions		0		0		0
r16		Equipment		22 002 000		15 542 000		11 362 000		10 273 000
r20		Tangible fixed assets under construction				46 000		170 000		2 775 000
r23		Long-term financial assets		1 999 000		2 022 000		1 988 000		1 882 000
r24		Shares in controlled and managed organizations		1 999 000		2 022 000		1 988 000		1 882 000
r31		Current assets		230 912 000		236 674 000		341 782 000		477 797 000
r32		Inventory		102 298 000		122 802 000		133 602 000		246 122 000
r33		Materials		51 265 000		73 834 000		83 423 000		97 746 000
r34		Work in progress and semi-products		43 623 000		43 541 000		48 665 000		133 510 000
r35		Finished products		7 410 000		5 427 000		1 514 000		1 514 000
r37		Merchandise								13 352 000
r39		Long-term receivables		0		0		30 664 000		17 381 000
r40		Trade receivables						3 978 000		1 301 000
r41		Receivables from controlled and managed organizations						26 686 000		16 080 000
r48		Short-term receivables		102 205 000		97 886 000		135 175 000		214 198 000
r49		Trade receivables		83 002 000		56 232 000		72 261 000		140 757 000
r50		Receivables from controlled and managed organizations		8 078 000		16 607 000		44 795 000		61 514 000
r54		Due from state - tax receivable		2 576 000		2 957 000		3 857 000		8 026 000
r55		Short-term deposits given		8 439 000		22 083 000		14 262 000		3 825 000
r56		Estimated receivable								62 000
r57		Other receivables		110 000		7 000				14 000
r58		Short-term financial assets		26 409 000		15 986 000		42 341 000		96 000
r59		Cash		14 000		1 000		16 000		11 000
r60		Bank accounts		26 395 000		15 985 000		42 325 000		85 000
r63		Accruals		225 000		80 000		477 000		39 000
r64		Deferred expenses		9 000		80 000		28 000		39 000
r66		Deferred income		216 000				449 000
r67		TOTAL LIABILITIES		261 244 000		264 180 000		365 405 000		502 057 000
r68		Equity		-28 517 000		-10 090 000		-3 398 000		50 712 000
r69		Registered capital		13 645 000		13 645 000		13 645 000		13 645 000
r70		Registered capital		13 645 000		13 645 000		13 645 000		13 645 000
r73		Capital funds		-226 000		-203 000		-238 000		-343 000
r76		Differences from revaluation of assets and liabilities ( +/- )		-226 000		-203 000		-238 000		-343 000
r78		Reserve funds, statutory reserve account for cooperatives, and other retained earnings		0		0		682 000		1 019 000
r79		Legal reserve fund / indivisible fund						682 000		1 019 000
r81		Profit / loss - previous years		-3 799 000		-41 936 000		-24 215 000		-17 824 000
r83		Accumulated losses from previous years		-3 799 000		-41 936 000		-24 215 000		-17 824 000
r84		Profit / loss - current year (+/-)		-38 137 000		18 404 000		6 728 000		54 215 000
r85		Liabilities		286 421 000		271 225 000		368 787 000		451 344 000
r86		Reserves		2 200 000		14 744 000		27 377 000		60 878 000
r89		Income tax reserves						4 968 000		17 822 000
r90		Other reserves		2 200 000		14 744 000		22 409 000		43 056 000
r91		Long-term payables		31 824 000		32 195 000		31 639 000		29 959 000
r93		Payables to controlled and managed organizations		31 824 000		32 195 000		31 639 000		29 959 000
r102		Short-term payables		197 516 000		172 266 000		245 523 000		273 182 000
r103		Trade payables		151 638 000		28 004 000		47 188 000		27 154 000
r104		Payables to controlled and managed organizations		14 015 000		129 200 000		141 857 000		151 594 000
r106		Payables from partners, cooperative members and association members		3 000		3 000		3 000		3 000
r107		Payroll		1 357 000		1 310 000		1 962 000		2 343 000
r108		Payables to social securities and health insurance		691 000		936 000		1 000 000		1 187 000
r109		Due from state - tax liabilities and subsidies		468 000		257 000		461 000		454 000
r110		Short-term deposits received		29 338 000		12 556 000		46 430 000		81 211 000
r112		Estimated payables						6 622 000		9 236 000
r113		Other payables		6 000
r114		Bank loans and financial accommodations		54 881 000		52 020 000		64 248 000		87 325 000
r115		Long-term bank loans		54 881 000		52 020 000		64 248 000		87 325 000
r116		Short-term bank loans		0		0		0
r117		Short-term accommodations		0		0		0
r118		Accruals		3 340 000		3 045 000		16 000		1 000
r119		Accrued expenses		3 340 000		3 045 000		16 000		1 000
	profit/loss account		31.12.2007 (CZK)		31.12.2008 (CZK)		31.12.2009 (CZK)		31.12.2010 (CZK)
a1	Turnover		323 750 000		648 946 000		630 769 000		1 007 515 000
a2	Revenues from sold goods		249 627 000		430 449 000		370 577 000		440 436 000
a3	Expenses on sold goods		175 376 000		276 752 000		249 602 000		309 794 000
a4	Sale margin		74 251 000		153 697 000		120 975 000		130 642 000
a5	Production		118 660 000		196 425 000		265 316 000		652 523 000
a6	Revenues from own products and services		74 123 000		218 497 000		260 192 000		567 079 000
a7	Change in inventory of own products		44 537 000		-22 072 000		5 124 000		84 845 000
a8	Capitalization								599 000
a9	Production consumption		199 697 000		359 106 000		334 976 000		648 032 000
a10	Consumption of material and energy		97 476 000		181 558 000		192 352 000		439 872 000
a11	Services		102 221 000		177 548 000		142 624 000		208 160 000
a12	Added value		-6 786 000		-8 984 000		51 315 000		135 133 000
a13	Personnel expenses		27 424 000		29 664 000		36 631 000		43 780 000
a14	Wages and salaries		22 109 000		23 458 000		29 177 000		34 137 000
a16	Social security expenses and health insurance		5 190 000		6 039 000		7 238 000		9 338 000
a17	Other social expenses		125 000		167 000		216 000		305 000
a18	Taxes and fees		16 000		9 000		25 000		31 000
a19	Depreciations of intangible and tangible assets		6 386 000		7 669 000		7 914 000		6 818 000
a20	Revenues from disposals of fixed assets and materials		0		0		0		0
a23	Net book value of disposed fixed assets and materials		0		0		0		0
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )		1 264 000		12 543 000		14 488 000		18 863 000
a27	Other operating revenues		217 000		80 056 000		32 061 000		5 265 000
a28	Other operating expenses		120 000		1 279 000		4 763 000		2 897 000
a31	Operating profit / loss		-41 779 000		19 908 000		19 555 000		68 009 000
a34	Revenues from long-term financial assets								0
a43	Interest revenues		419 000		2 483 000		25 000		9 000
a44	Interest expenses		1 372 000		2 232 000		3 030 000		1 857 000
a45	Other financial revenues		16 731 000		68 667 000		35 926 000		35 831 000
a46	Other financial expenses		12 136 000		70 422 000		40 780 000		30 012 000
a49	Profit / loss from financial operations ( transactions )		3 642 000		-1 504 000		-7 859 000		3 971 000
a50	Income tax on ordinary income		0		0		4 968 000		17 765 000
a51	Due tax						4 968 000		17 765 000
a53	Operating profit / loss ordinary activity		-38 137 000		18 404 000		6 728 000		54 215 000
a56	Income tax on extraordinary income								0
a59	Operating profit / loss extraordinary activity		0		0		0		0
a61	Profit / loss of current accounting period (+/-)		-38 137 000		18 404 000		6 728 000		54 215 000
a62	Profit / loss before tax (+/-)		-38 137 000		18 404 000		11 696 000		71 980 000
	Receivables after due date total		7 650 000		39 294 000		29 732 000		19 669 000
	Receivables more than 180 days after due date		2 176 000		4 257 000		11 506 000		10 199 000
	Liabilities after due date total		103 169 000		13 815 000		46 460 000		3 436 000
	Liabilities more than 180 days after due date		0		2 951 000		2 563 000		3 000

Balance indices		31.12.2007	31.12.2008	31.12.2009	31.12.2010
Return on total assets ROA (in %)	a62/r1 * 100	-14,60	6,97	3,20	14,34
Return on equity ROE (in %)	a62/r68 * 100	133,73	-182,40	-344,20	141,94
Return on sales ROS (in %)	a62/a1 * 100	-11,78	2,84	1,85	7,14
Turnover of receivables (in days)	r49/a1 * 365	93,58	31,63	41,81	50,99
Turnover of liabilities (in days)	r103/a1 * 365	170,96	15,75	27,31	9,84
Turnover of inventories (days)	r32/a1 * 365	115,33	69,07	77,31	89,16
Net working capital (in ths. CZK)	r31 - r102 - r116 - r117	33 396,00	64 408,00	96 259,00	204 615,00
Ratio of accounts payable to accounts receivable (in %)	(r39+r48) / (r91+r102) * 100	44,56	47,88	59,83	76,39
Ratio of profit/loss to tangible assets (in%)	r3 / a1 * 100	9,30	4,23	3,67	2,40
Current ratio	r31 / (r102+r116+r117)	1,17	1,37	1,39	n/a
Quick ratio	(r58+r48) / (r102+r116+r117)	0,65	0,66	0,72	0,78
Cash ratio	r58 / (r102+r116+r117)	0,13	0,09	0,17	n/a
Debt ratio I (in %)	(1-r68/r67) * 100	110,92	103,82	100,93	89,90
Debt ratio II (in %)	r85/r67 * 100	109,64	102,67	100,93	89,90

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.

MIRA INFORM REPORT

Company name and address

Company details

Financials

Unit