MIRA INFORM REPORT

Report Date :

02.04.2014

IDENTIFICATION DETAILS

Name :	ZWOLTEX SP. Z O.O.

Formerly Known As :	WŁÓKNINA SP. Z O.O

Registered Office :	ul. Spacerowa 13 98-220 Zduńska Wola

Country :	Poland

Financials (as on) :	31.12.2012

Date of Incorporation :	16.02.1999

Legal Form :	Limited liability company

Line of Business :	Subject is engaged in Production and sale of non-woven and needled pierced, towels, washcloths and kitchen flooring, production and sale of products from Terry and blankets

No. of Employees :	18

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 – September 30, 2013

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Poland

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 EU 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 and adopting 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 and 2013, in part due to the ongoing economic difficulties in the euro zone. Short-term, the key policy challenge will be to consolidate debt and spending without stifling economic growth. Over the longer term, Poland's economic performance could improve if the country addresses some of the remaining deficiencies in its road and rail infrastructure, business environment, rigid labor code, commercial court system, government red tape, and burdensome tax system

Source : CIA

Company name and address

ZWOLTEX SP. Z O.O.

ul. Spacerowa 13
98-220 Zduńska Wola

Phone: 43 8233559

Fax: 43 8239095

E-mail: sekretariat@zwoltex.pl

Website: http://www.zwoltex.pl/nowa/

Company summary

Legal form	Limited liability company
Stat.no.	730980996
Tax ID	PL 8291532443

Establishment	16.02.1999
Changes of names and addresses	16.02.1999 Włóknina sp. z o.o ul. Opiesińska 6/8, 98-220 Zduńska Wola
	2000 Zwoltex Włóknina sp. z o.o
	16.10.2002 ul. Opiesińska 6-6A, 98-220 Zduńska Wola
	28.06.2005 ul. Spacerowa 13, 98-220 Zduńska Wola
	30.10.2009 ZWOLTEX sp. z o.o.

Registration:

20.09.2001, District Court Łódź, XX Department, KRS 45572

Data concerning previous registrations:
27.05.1999, District Court Sieradz, 963

Shareholders	Karol Wajchert , personal ID no. (PESEL) 95010508178, Huta Dłutowska, ul. Willowa 22, 95-081 Dłutów	PLN

	list entered to NCR /KRS/ on 23.01.2014

Initial Capital		PLN 2 000 000,00
	Initial capital divided into 2000 shares of PLN 1 000,00 each
	Changes of initial capital
	- since 20.09.2001 until 23.01.2014 the capital estimated	PLN 1 800 000,00
	An in-kind contribution has been made and valued at In the form of a perpetual usufruct of land plots located in Zduńska Wola of the total area of 9,562 sq m with annotated buildings.	PLN 1 200 000,00

Management	Eugeniusz Rutkowski , personal ID no. (PESEL) 52122804378, ul. Milionowa 80/21, 92-334 Łódź - president

	Representation: since 27.02.2007 Sole director or each of the two directors individually or two board members jointly or one board member and a proxy jointly are entitled to act on behalf of the company when the board is multipersonal.

Main activity	production and sale of non-woven and needled pierced, towels, washcloths and kitchen flooring, production and sale of products from Terry and blankets;
	Branches NACE 2007:
	Manufacture of made-up textile articles
	Manufacture of non-wovens and articles made from non-wovens, except apparel

Employment

2010:              93        employees
2011:              87        employees
31.12.2012:        12        employees
2013:              14        employees
2014:                                                               18                                                    employees

Turnover	2010	PLN	27 183 317,94
	2011	PLN	28 332 878,92
	2012	PLN	25 055 652,39
	2013	PLN	27 560 041,42
	2014 - expected value	PLN	28 000 000,00

Financial statements


Source of financial data	Court	Monitor Polski B	Monitor Polski B	Monitor Polski B
	annual	annual	annual	annual
Personal balance sheet as at	31.12.2012 (PLN)	31.12.2011 (PLN)	31.12.2010 (PLN)	31.12.2009 (PLN)
-A. Fixed assets......................	6 338 474,86	7 617 248,12	9 865 120,19	11 119 584,40
- I. Intangible assets.............	337 396,52	414 495,17	491 910,89	539 326,65
- 3. Other intangible assets.......	337 396,52	414 495,17	491 910,89	539 326,65
- II. Tangible assets...............	5 906 303,74	7 094 108,95	9 199 370,30	10 394 991,80
- 1. Fixed goods...................	5 824 138,83	7 071 788,95	8 835 470,30	10 030 417,64
- a) land........................	1 730 915,36	1 730 915,36	1 730 915,36	1 730 915,36
- b) buildings, premises, facilities............................	2 692 397,80	3 489 374,72	3 675 138,20	3 858 299,51
- c) machinery and equipment.....	1 127 509,60	1 528 641,46	3 221 987,75	4 168 831,53
- d) fleet of motor vehicles.....	256 533,98	322 857,41	203 196,22	263 905,38
- e) other fixed goods...........	16 782,09		4 232,77	8 465,86
- 2. Fixed goods under construction..........................	82 164,91	22 320,00	320 400,00	364 574,16
- 3. Prepayments for fixed goods under construction....................			43 500,00
- IV. Long term investments.........	6 582,60	5 385,00
- 3. Long term financial assets....	6 582,60	5 385,00
- a) in affiliated companies.....	6 582,60	5 385,00
- - participations or shares...	6 582,60	5 385,00
-V. Long-term prepayments and accrued income........................	88 192,00	103 259,00	173 839,00	185 265,95
- 1. Deferred tax assets.............	88 115,00	103 259,00	173 839,00	177 659,00
- 2. Other prepayments...............	77,00			7 606,95
-B. Current assets....................	11 865 310,94	11 815 277,71	10 080 229,63	10 201 440,15
- I. Stock.........................	6 928 103,46	7 724 393,54	5 907 579,78	6 218 845,17
- 1. Raw materials.................	907 049,91	1 330 511,38	524 165,73	896 153,21
- 2. Semi-finished products and work-in-progress......................	2 345 662,08	1 870 600,67	1 840 433,87	1 827 909,48
- 3. Finished products.............	2 788 746,93	3 797 627,21	2 874 333,53	3 179 150,33
- 4. Goods for re-sale.............	422 182,55	363 753,57	668 646,65	310 614,19
- 5. Advance payments .............	464 461,99	361 900,71		5 017,96
- II. Short-term receivables.........	2 889 970,23	3 822 945,43	3 806 610,89	3 713 058,81
- 1. Receivables from affiliated companies.............................	12 304,13	43 353,91
- a) Due to deliveries and services with payment period:.........	12 304,13	43 353,91
- - up to 12 months............	12 304,13	43 353,91
- 2. Other receivables ............	2 877 666,10	3 779 591,52	3 806 610,89	3 713 058,81
- a) Due to deliveries and services with payment period:.........	2 583 944,42	3 533 795,93	3 699 569,08	3 551 767,54
- - up to 12 months............	2 583 944,42	3 533 795,93	3 699 569,08	3 551 767,54
- b) Due to taxes, subsidies, insurances, duties, etc...............	107 098,56	45 296,12	66 047,16	139 755,75
- c) Other.......................	53 428,19	67 304,54	40 994,65	21 535,52
- d) Received through judicial proceedings...........................	133 194,93	133 194,93
- III. Short term investments........	2 022 727,43	247 700,18	348 709,10	243 612,76
- 1. Short-term financial assets...	2 022 727,43	247 700,18	348 709,10	243 612,76
- c) cash and other liquid assets................................	2 022 727,43	247 700,18	348 709,10	243 612,76
- - cash in hand and on bank account...............................	220 288,33	247 700,18	166 353,12	243 612,76
- - other liquid assets........	1 802 439,10		182 355,98
-IV. Short-term prepayments and accrued income........................	24 509,82	20 238,56	17 329,86	25 923,41
-D. Total assets......................	18 203 785,80	19 432 525,83	19 945 349,82	21 321 024,55
-A. Shareholders' equity..............	7 117 989,51	6 571 818,44	6 025 389,38	5 155 973,15
- I. Basic share capital...........	1 800 000,00	1 800 000,00	1 800 000,00	1 800 000,00
- IV. Statutory reserve capital.....	4 771 818,44	4 225 389,38	3 355 973,15	6 316 022,38
- VIII. Net profit (loss)............	546 171,07	546 429,06	869 416,23	-2 960 049,23
-B. Liabilities and reserves for liabilities...........................	11 085 796,29	12 860 707,39	13 919 960,44	16 165 051,40
- I. Reserves for liabilities......	480,00	2 810,00	2 138,00	1 736,00
- 1. Deferred income tax reserves..	480,00	2 810,00	2 138,00	1 736,00
-II. Long-term liabilities...........	6 703 602,37	3 877 071,99	4 430 736,00	6 239 367,16
- 1. Due affiliated companies........	2 057 626,17
- 2. Other liabilities...............	4 645 976,20	3 877 071,99	4 430 736,00	6 239 367,16
- a) Loans.........................	2 953 824,00	3 753 818,00	4 430 736,00	5 169 192,00
- c) Other financial liabilities...	80 164,20	123 253,99		690 565,32
- d) Other.........................	1 611 988,00			379 609,84
-III. Short-term liabilities..........	4 381 713,92	8 980 825,40	9 487 086,44	9 923 948,24
- 1. Due to affiliated companies.....	442 525,93	284 792,81
- a) Due to deliveries and services with payment period:.........	442 525,93	284 792,81
- - up to 12 months..............	442 525,93	284 792,81
- 2. Other liabilities...............	3 816 095,44	8 570 690,04	9 359 993,89	9 794 855,69
- a) Loans.........................	1 781 145,87	739 593,34	945 260,39	1 251 959,24
- c) Other financial liabilities...	56 295,72	67 421,75	44 183,53	709 687,77
- d)Due to deliveries and services with payment period:.........	999 303,76	2 044 069,71	2 699 064,36	4 567 710,03
- - up to 12 months..............	999 303,76	2 044 069,71	2 699 064,36	4 567 710,03
- e) Advances received.............	11 336,47	44 952,87	275 076,55	106,25
- g) Due to taxes, subsidies, insurances, duties, etc...............	528 613,01	3 469 112,80	2 755 930,88	2 084 234,70
- h) Due to salaries...............	48 456,92	211 109,67	286 970,77	223 028,51
- i) Other.........................	390 943,69	1 994 429,90	2 353 507,41	958 129,19
- 3. Special funds...................	123 092,55	125 342,55	127 092,55	129 092,55
-D. Total liabilities.................	18 203 785,80	19 432 525,83	19 945 349,82	21 321 024,55

Source of financial data	Court	Monitor Polski B	Monitor Polski B	Monitor Polski B
	annual	annual	annual	annual
individual PROFIT AND LOSS ACCOUNT	01.01.2012- 31.12.2012 (PLN)	01.01.2011- 31.12.2011 (PLN)	01.01.2010- 31.12.2010 (PLN)	01.01.2009- 31.12.2009 (PLN)
-A. Income from sales and similar.....	25 055 652,39	28 332 878,92	27 183 317,94	29 398 603,25
- - including related companies......	27 090,15	31 474,16
- I. Net income on sales...........	23 484 070,78	25 086 110,63	23 995 103,66	27 091 874,37
- II. Change in value of stock ( +, -).................................	-533 818,87	968 579,49	-308 492,91	-2 077 390,41
- III. Sales of goods for own use....	574 985,32	23 524,37	304 678,66	414 220,07
- IV. Income from sales of goods and materials.........................	1 530 415,16	2 254 664,43	3 192 028,53	3 969 899,22
-B. Operational costs.................	23 322 101,67	26 833 064,72	26 186 474,90	31 496 665,89
- I. Depreciation..................	793 859,16	1 222 222,49	1 387 203,77	1 842 051,51
- II. Materials and energy..........	12 503 204,56	14 231 648,75	13 204 014,98	15 791 617,41
- III. Third party services..........	4 303 954,28	2 667 758,84	3 161 323,33	5 487 781,37
- IV. Taxes and duties..............	1 019 271,20	976 127,38	1 018 962,72	983 969,12
- V. Salaries and wages............	2 791 509,71	4 775 874,08	4 473 137,68	3 306 606,75
- VI. Social security...............	551 646,65	828 301,23	821 628,55	601 295,93
- VII. Other.........................	107 384,77	150 688,90	184 675,48	119 679,29
- VIII.Costs of goods and materials sold..................................	1 251 271,34	1 980 443,05	1 935 528,39	3 363 664,51
-C. Profit on sale....................	1 733 550,72	1 499 814,20	996 843,04
-C. Loss on sale......................				2 098 062,64
-D. Other operating incomes...........	259 926,11	220 231,99	1 290 105,45	272 624,15
- I. Incomes from disposal non-financial assets..................			779 892,39
- III. Other operating incomes.......	259 926,11	220 231,99	510 213,06	272 624,15
-E. Other operating costs.............	809 994,15	456 086,13	784 475,65	339 676,19
- I. Loss on disposal of non-finacial assets...................	57 297,92	7 252,59		247 654,85
- II. Goodwill revaluation..........	261 604,73	79 979,00	40 405,18	16 792,85
- III. Other operating costs.........	491 091,50	368 854,54	744 070,47	75 228,49
-F. Profit on operating activities....	1 183 482,68	1 263 960,06	1 502 472,84
-F. Loss on operating activities......				2 165 114,68
-G. Financial incomes.................	11 113,29	193 443,72	34 695,94	47 546,66
- II. Interest received.............	11 113,29	7 320,91	5 572,70	318,80
- V. Other.........................		186 122,81	29 123,24	47 227,86
-H. Financial costs...................	450 012,90	839 722,72	598 624,55	824 127,21
- I. Interest......................	317 726,79	802 121,87	482 120,30	626 300,00
- IV. Other.........................	132 286,11	37 600,85	116 504,25	197 827,21
-I. Profit on economic activity.......	744 583,07	617 681,06	938 544,23
-I. Loss on economic activity.........				2 941 695,23
-K. Gross profit......................	744 583,07	617 681,06	938 544,23
-K. Gross loss........................				2 941 695,23
-L. Corporation tax...................	198 412,00	71 252,00	69 128,00	18 354,00
-N. Net profit........................	546 171,07	546 429,06	869 416,23
-N. Net loss..........................				2 960 049,23

AUDITOR

Balance sheet as at 31.12.2012
Marianna Stelmaszczyk Kancelaria Audytorska "STELLA", ul. Skrzetuskiego 5, 97-200 Tomaszów Mazowiecki	No. 2698

Expert auditor Marianna Stelmaszczyk

No. 3852

Balance sheet as at 31.12.2011
Marianna Stelmaszczyk Kancelaria Audytorska "STELLA", ul. Skrzetuskiego 5, 97-200 Tomaszów Mazowiecki	No. 2698

Expert auditor Marianna Stelmaszczyk

No. 3852

Balance sheet as at 31.12.2010
Marianna Stelmaszczyk Kancelaria Audytorska "STELLA", ul. Skrzetuskiego 5, 97-200 Tomaszów Mazowiecki	No. 2698

Expert auditor Marianna Stelmaszczyk

No. 3852



Ratios	01.01.2012- 31.12.2012	01.01.2011- 31.12.2011	01.01.2010- 31.12.2010	01.01.2009- 31.12.2009
Current ratio	2,71	1,32	1,06	1,03
Quick ratio	1,12	0,45	0,44	0,40
Immediate ratio	0,46	0,03	0,04	0,02
Return on sale	2,18	2,00	3,20	-9,53
Return on assets	3,00	2,81	4,36	-13,88
Return on equity	7,67	8,31	14,43	-57,41
Average trade debtors' days	42,28	51,04	51,11	43,63
Average stock turnover's days	101,37	103,12	79,31	73,08
average payables payment period	64,11	119,89	127,37	116,61
Total indebtedness ratio	60,90	66,18	69,79	75,82

While rating the company, it is advisable to take into consideration information about the branch , the company is acting in
(C.13.92.Z - NACE 2007), as at :	30.09.2013	31.12.2012	31.12.2011	31.12.2010	31.12.2009
Current ratio............................	1,90	1,76	1,49	1,36	1,26
Quick ratio..............................	1,02	0,79	0,70	0,65	0,63
Immediate ratio..........................	0,12	0,18	0,08	0,12	0,12
Return on sale...........................	3,93	3,82	3,37	4,63	3,49
Return on assets.........................	5,55	6,55	5,90	8,06	5,94
Return on equity.........................	12,60	14,75	14,16	24,36	15,77
Average trade debtors' days..............	58,64	45,56	51,36	52,49	50,23
Average stock turnover's days............	58,64	74,76	68,88	70,02	62,77
average payables payment period..........	67,01	78,21	88,04	99,58	100,98
Total indebtedness ratio.................	55,99	55,59	58,36	66,90	62,31
Percent share in the examinated group of companies with net profit.............	81,80	74,60	78,00	75,00	66,70
Sales/revenue per employee in th. PLN....	194,61	248,43	226,15	182,71	173,07
Average sales/revenue per company in th. PLN..................................	35 206,22	43 870,69	39 281,66	37 029,09	28 842,71



according to the Central Statistical Office


Locations:	seat: ul. Spacerowa 13, 98-220 Zduńska Wola Phone: 43 8232331 43 8233559 Fax: 43 8239095 E-mail: eleonora.borowiecka@zwoltex.pl sekretariat@zwoltex.pl Website: http://www.zwoltex.pl/nowa/

Real Estate	ul. Spacerowa 5, 98-220 Zduńska Wola plot of area 0,25 ha (Land and Mortgage Register SR1Z/00030451/4) plot of area 0,17 ha (Land and Mortgage Register SR1Z/00001567/8) ul. Długa 34, 98-220 Zduńska Wola plot of area 0,11 ha (Land and Mortgage Register SR1Z/00011822/7) plot of area 12,07 ha (Land and Mortgage Register SR1Z/00011490/0)
	Book value of buildings as at 31.12.2012	PLN
	Book value of lands as at 31.12.2012	PLN
	Verification of information on real estate ownership position through the Real Estate Register is not covered by the standard report.

Shares in other companies	„ZWOLTEX PRODUKCJA” sp. z o.o. NIP 8291736097, ul. Szadkowska 64/66, 98-220 Zduńska Wola PLN 4 950,00 (99,00%)
	Data concerning shares in other companies are valid as at: 06.03.2014.


Connections:	Eugeniusz Rutkowski , personal ID no. (PESEL) 52122804378 - „ZWOLTEX PRODUKCJA” sp. z o.o. NIP 8291736097, ul. Szadkowska 64/66, 98-220 Zduńska Wola · proxy Karol Wajchert , personal ID no. (PESEL) 95010508178 - WAJCHERT I TRZESZCZAK sp. j. NIP 7312001881, ul. Partyzancka 78/92, 95-200 Pabianice · shareholder · member of representation unit
	Data concerning connections are valid as at: 06.03.2014.

General information	Financials as at 31.12.2013: - balance sum: 25.611.215,38 PLN - balance profit: 1.926.857,38 PLN

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Payment Manner

In the past, payment delays occurred, currently nothing detrimental noted.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.10
UK Pound	1	Rs.99.85
Euro	1	Rs.82.58

INFORMATION DETAILS

Report Prepared by :

NIS

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 summary

Financial statements

AUDITOR

Unit