MIRA INFORM REPORT

Report Date :

12.11.2013

IDENTIFICATION DETAILS

Name :	MARCOPOL SP. Z O.O. PRODUCENT SRUB
Registered Office :	Oliwska 100, Chwaszczyno, Pomorskie- 209
Country :	Poland
Financials (as on) :	2012
Date of Incorporation :	01.01.1985
Legal Form :	Not Available
Line of Business :	Manufacture of fasteners, screw machine products, chains and springs
No. of Employees :	402

RATING & COMMENTS

MIRA’s Rating :

Ca

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)
Poland	B1	B1

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

POLAND - ECONOMIC OVERVIEW

Poland has pursued a policy of economic liberalization since 1990 and Poland's economy was the only one in the European Union to avoid a recession through the 2008-09 economic downturn. Although EU membership and access to EU structural funds have provided a major boost to the economy since 2004, GDP per capita remains significantly below the EU average while unemployment continues to exceed the EU average. The government of Prime Minister Donald TUSK steered the Polish economy through the economic downturn by skillfully managing public finances without stifling economic growth and adopted controversial pension and tax reforms to further shore up public finances. While the Polish economy has performed well over the past five years, growth slowed in 2012, in part due to the ongoing economic difficulties in the euro zone. The key policy challenge is to provide support to the economy through monetary easing, while maintaining the pace of structural fiscal consolidation. Poland's economic performance could improve over the longer term if the country addresses some of the remaining deficiencies in its road and rail infrastructure and its business environment. An inefficient commercial court system, a rigid labor code, red tape, and a burdensome tax system keep the private sector from realizing its full potential

Source : CIA

Company name

Company Name Marcopol Sp. z o.o. Producent

Company Registration 84735

Country PL

Number

Activity Code 2594Z

Activity Description Manufacture of fasteners and screw machine products

Company Status Active

Latest Turnover 165,957,000.00 (PLN)

Latest Shareholders Equity 60,329,000.00 (PLN)

Company Identification

Activities

Activity Code 2594Z

Activity Description Manufacture of fasteners and screw machine products

Basic Information

Company Name Marcopol Sp. z o.o. Producent Śrub

Registered Company Name „ MARCOPOL” SPÓŁKA Z OGRANICZONĄ

ODPOWIEDZIALNOŚCIĄ PRODUCENT

ŚRUB

Company Registration Number 84735

Country PL

VAT Registration Number 5890008528

VAT Registration Date

Date of Company Registration 01/01/1985

Date of Starting Operations 01/01/1985

Commercial Court Legal Form

Type of Ownership Company Status Active

Principal Activity Code 2874

Principal Activity Description Manufacture of fasteners, screw machine products, chains and springs

Contact Address Oliwska

100, Chwaszczyno, Pomorskie-

209

Contact Telephone Number 4858 5540555

Main Address

Address Oliwska 100, Chwaszczyno, Pomorskie-20890

Telephone 4858 5540555

Email Addresses

biuro@marcopol.pl

Web Addresses

www.marcopol.com.pl

Current Directors Managers

Name Jerzy Brzeziński

Position President

Name Anna Brzezińska

Position Director

Name Sebastian Jakubowski

Position Marketing Director

Share Capital Structure

Issued Share capital 2,425,000.00 (PLN)

Name JERZY BRZEZIŃSKI

Share Percent 66.68 %

Name ELŻBIETA MUFF - BRZEZIŃSKA

Share Percent 33.32 %

Employee Information

Year 2010

Number of Employees 402

Year 2009

Number of Employees 400

Year 2008

Number of Employees 400

Year 2007

Number of Employees 400

Year 2006

Number of Employees 400

Year 2005

Number of Employees 350

Bankers

Name Bank Gospodarki Żywnościowej S.A. (BGŻ S.A.)

Financial Statements

Profit & Loss

Financial Year 2012 2011 2010

Number of Weeks 52 52 52

Currency PLN PLN PLN

Revenue 168,094,000 158,662,000 141,581,000

Operating Costs 163,710,000 161,239,000 134,922,000

Operating Profit 4,384,000 -2,577,000 6,659,000

Depreciation 3,028,000 3,386,000 2,957,000

Financial Income 1,293,000 643,000 662,000

Financial Expenses 2,713,000 3,877,000 2,839,000

Extraordinary Income 0 0 0

Extraordinary Costs 0 0 0

Profit Before Tax 2,964,000 -5,811,000 4,481,000

Tax 681,000 -897,000 1,490,000

Profit After Tax 2,283,000 -4,913,000 2,991,000

Retained Profit 2,283,000 -4,913,000 2,991,000

Balance Sheet

Financial Year 2012 2011 2010

Number of Weeks 52 52 52

Currency PLN PLN PLN

Land & Buildings 17,288,000 11,689,000 11,885,000

Plant & Machinery 1,113,000 1,488,000 1,585,000

Other Tangible Assets 6,712,000 11,925,000 8,518,000

Total Tangible Assets 25,113,000 25,102,000 21,988,000

Other Intangible Assets 2,644,000 2,782,000 2,997,000

Total Intangible Assets 2,644,000 2,782,000 2,997,000 Miscellaneous Fixed Assets 12,395,000 12,368,000 9,270,000

Total Other Fixed Assets 12,395,000 12,368,000 9,270,000

Total Fixed Assets 40,152,000 40,253,000 34,255,000

Other Inventories 62,207,000 57,279,000 55,485,000

Total Inventories 62,207,000 57,279,000 55,485,000

Trade Receivables 23,637,000 22,324,000 21,326,000

Total Receivables 23,637,000 22,324,000 21,326,000

Cash 802,000 5,070,000 2,393,000

Other Current Assets 342,000 305,000 358,000

Total Current Assets 86,989,000 84,979,000 79,563,000

Total Assets 127,140,000 125,231,000 113,818,000

Trade Payables 12,608,000 17,756,000 12,075,000

Bank Liabilities 32,980,000 31,385,000 10,037,000

Miscellaneous Liabilities 16,268,000 17,802,000 8,427,000

Total Current Liabilities 61,855,000 66,944,000 30,538,000

Other loans/finance

due after 1 year 4,362,000 0 17,481,000

Miscellaneous Liabilities

due after 1 year 595,000 242,000 1,271,000

Total Long Term

Liabilities 4,957,000 242,000 18,752,000

Total Liabilities	66,812,000	67,186,000	49,290,000
Called Up Share Capital	2,425,000	2,425,000	2,425,000
Revenue Reserves	57,903,000	55,620,000	62,102,000
Total Shareholders Equity	60,329,000	58,045,000	64,527,000
Other Financials
Working Capital	25,134,000	18,035,000	49,025,000
Net Worth	57,685,000	55,263,000	61,530,000
Ratios
Pre-Tax Profit Margin	1.79	-3.70	3.20
Return on Capital Employed	4.54	-9.97	5.38
Return on Total Assets Employed	2.33	-4.64	3.94
Return on Net Assets Employed	4.91	-10.01	6.94
Sales/Net Working Capital	6.60	8.70	2.86
Stock Turnover Ratio	37.48	36.51	39.62
Debtor Days	51.99	51.94	55.59
Creditor Days	27.73	41.31	31.47
Current Ratio	1.41	1.27	2.61
Liquidity Ratio/Acid Test	0.40	0.41	0.79
Current Debt Ratio	1.03	1.15	0.47
Gearing	62.88	54.49	44.62
Equity in Percentage	53.82	52.73	63.54
Total Debt Ratio	1.11	1.16	0.76

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.29
UK Pound	1	Rs.101.36
Euro	1	Rs.84.59

INFORMATION DETAILS

Report Prepared by :

PDT

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.