MIRA INFORM REPORT

Report Date :

20.08.2014

IDENTIFICATION DETAILS

Name :	HAYLEY CZ S.R.O.
Registered Office :	Železná 694/5a 619 00 Brno
Country :	Czech Republic
Financials (as on) :	31.05.2013
Date of Incorporation :	01.02.2005
Com. Reg. No.:	C 48136
Legal Form :	Private limited company
Line of Business :	Manufacture of bearings, gears, gearing and driving elements
No. of Employees	18

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Czech Republic	A2	A2

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. The auto industry is 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. 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 sharply in 2009. The economy slowly recovered in the second half of 2009 and registered weak growth in the next two years. In 2012, however, the economy fell into a recession again, due both to a slump in external demand and to the government’s austerity measures. The country pulled out of recession in the second half of 2013, and most analysts expect modest, but steady, growth through 2014. 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

HAYLEY CZ S.R.O.

Železná 694/5a
619 00 Brno

telephone: 00420/ 545 217 807
telefax: 00420/ 545 218 213
e-mail: info@hayley.cz
Web: wwww.hayley.cz

Company summary

Legal form

Private limited company

Foundation

01/02/2005 - Private limited company

Comp. Register

01/02/2005, Krajský soud v Brně, RegNr.: C 48136 Statistical number: 26955890 Tax number: CZ26955890

Share Capital

01/02/2005

CZK

200 000,-

Shareholders

Hayley Group Public Limited Company Shelah Road, B63 3XL Halesowen, Great Britain

CZK

200 000,-

Management

David Graham Skelly (12.01.1963) p Argy II Road, Bearsden, G6131X Glasgow, Great Britain Executive Manager

Gerald O´Donell (05.03.1959)
2 Lubnaig Gardens, G61 4QX Bearsden, Glasgow, Great Britain
Executive Manager

General Data

Complete deliveries of engineering material and equipment: sealings, bearings, connection accessories, lubricants, hydraulic components. Outsourcing of storage management and logistics.

Main activity:
Manufacture of bearings, gears, gearing and driving elements

Trade name(s)
HAYLEY CZ s.r.o.
Beginning of validity: 01.02.2005

Import:
Great Britain
India

General contacts:
telephone:
00420/ 545 217 807
telefax:
00420/ 545 218 213
e-mail:
info@hayley.cz
Web:
wwww.hayley.cz

Address:
Železná 694/5a, 619 00 Brno
Beginning of validity: 09.10.2007

134, 664 01 Kanice
Beginning of validity: 01.02.2005
End of validity: 09.10.2007

Staff

2005

2 employees

2006	10 employees

2009	14 employees

2010	15 employees

2011	13 employees

2012	13 employees

2014	18 employees

Annual Sales

2007

actual sales

CZK

50 836 000,-

2008

actual sales

CZK

69 764 896,-

2009

actual sales

CZK

61 102 000,-

2010

actual sales

CZK

51 346 000,-

2011

actual sales

CZK

56 980 000,-

2012

actual sales

CZK

58 743 000,-

2013

actual sales

CZK

57 118 000,-

The company is not registered in the Central register of executions.

The company uses the business year lasting from 01.06. till 31.05.

Property

none

Balance sheets

Remarks

The company is a holder of ISO 9001 and ISO 14001 certificates. All the sources of negative data accessible to public (insolvency registers, databases of debtors of health insurance institutions, commercial bulletin, collection database of Creditreform and others) are currently monitored.

Business management:
Gerald O´Donell - company director

Contact:
Jitka Koutná, accountant, phone: 00420/ 543 533 725,
E-mail: jitka.koutna@hayley.cz

Bankers

Komerční banka, a.s. Account number: 35-4689670247/0100 Account number: 35-4408200207/0100

(0100)

Copyright: Creditreform s.r.o. Praha

This information is addressed exclusively to the addressee. Contractor obligates to provide updated information. Although it is always put maximum effort to collect actual and exact information, it is not confirmed as delinquency if there are particular inaccurateness contained within the information, which are not considered as essential in terms of the objective for which the information is provided to the addressee. Contractor and recipient conform to the rules of the Name and Description Security Act, Nub.101/2000. According to the Name and Description Security Act, recipient has the right to process or to use forwarding data only for the purpose for which information has been sent to the recipient. Usage for other purpose is acceptable only in case referring to valid regulations of the above mentioned act.

Financial data

	balance	31.05.2010 (CZK)	31.05.2011 (CZK)	31.05.2012 (CZK)	31.05.2013 (CZK)
r1	TOTAL ASSETS	31 567 000	37 165 000	39 470 000	37 695 000
r2	Receivables for subscriptions	0	0	0	0
r3	Fixed assets	718 000	477 000	963 000	1 611 000
r4	Intangible fixed assets	0	0	0	0
r5	Incorporation expenses	0
r6	Research and development	0
r7	Software	0
r8	Valuable rights	0
r9	Goodwill	0
r10	Other intangible fixed assets	0
r11	Intangible fixed assets under construction	0
r12	Advance payments for intangible fixed assets	0
r13	Tangible fixed assets	718 000	477 000	963 000	1 611 000
r14	Lands	0	0	0	0
r15	Constructions	0	0	0	0
r16	Equipment	718 000	477 000	743 000	1 611 000
r17	Perennial corps	0
r18	Breeding and draught animals	0
r19	Other tangible fixed assets	0
r20	Tangible fixed assets under construction	0
r21	Advance payments for tangible fixed assets	0		220 000
r22	Adjustment to acquired assets	0
r23	Long-term financial assets	0	0	0	0
r24	Shares in controlled and managed organizations	0
r25	Shares in accounting units with substantial influence	0
r26	Other securities and shares	0
r27	Loans to controlled and managed organizations and to accounting unit with substantial influence	0
r28	Other financial investments	0
r29	Financial investments acquired	0
r30	Advance payments for long-term financial assets	0
r31	Current assets	30 739 000	36 605 000	38 425 000	35 991 000
r32	Inventory	13 105 000	15 494 000	16 264 000	14 846 000
r33	Materials	84 000	54 000	29 000	24 000
r34	Work in progress and semi-products	0
r35	Finished products	0
r36	Animals	0
r37	Merchandise	13 021 000	15 440 000	16 235 000	14 822 000
r38	Advance payments for inventory	0
r39	Long-term receivables	0	0	0	0
r40	Trade receivables	0
r41	Receivables from controlled and managed organizations	0
r42	Receivables from accounting units with substantial influence	0
r43	Receivables from partners, cooperative members and association members	0
r44	Long-term deposits given	0
r45	Estimated receivable	0
r46	Other receivables	0
r47	Deferred tax receivable	0
r48	Short-term receivables	16 026 000	18 440 000	20 681 000	17 604 000
r49	Trade receivables	13 768 000	17 464 000	19 545 000	15 330 000
r50	Receivables from controlled and managed organizations	344 000	131 000	252 000	539 000
r51	Receivables from accounting units with substantial influence	0
r52	Receivables from partners, cooperative members and association members	0
r53	Receivables from social security and health insurance	0
r54	Due from state - tax receivable	900 000			975 000
r55	Short-term deposits given	566 000	397 000	427 000	295 000
r56	Estimated receivable	0
r57	Other receivables	448 000	448 000	457 000	465 000
r58	Short-term financial assets	1 608 000	2 671 000	1 480 000	3 541 000
r59	Cash	4 000	8 000	24 000	60 000
r60	Bank accounts	1 604 000	2 663 000	1 456 000	3 481 000
r61	Short-term securities and ownership interests	0
r62	Short-term financial assets acquired	0
r63	Accruals	110 000	83 000	82 000	93 000
r64	Deferred expenses	110 000	83 000	82 000	93 000
r65	Complex deferred costs	0
r66	Deferred income	0
r67	TOTAL LIABILITIES	31 567 000	37 165 000	39 470 000	37 695 000
r68	Equity	14 366 000	28 393 000	29 995 000	32 434 000
r69	Registered capital	200 000	200 000	200 000	200 000
r70	Registered capital	200 000	200 000	200 000	200 000
r71	Company’s own shares and ownership interests (-)	0
r72	Changes of registered capital ( +/- )	0
r73	Capital funds	0	9 447 000	9 447 000	9 447 000
r74	Share premium	0
r75	Other capital funds	0	9 447 000	9 447 000	9 447 000
r76	Differences from revaluation of assets and liabilities ( +/- )	0
r77	Differences from revaluation in transformation ( +/- )	0
r78	Reserve funds, statutory reserve account for cooperatives, and other retained earnings	20 000	20 000	20 000	20 000
r79	Legal reserve fund / indivisible fund	20 000	20 000	20 000	20 000
r80	Statutory and other funds	0
r81	Profit / loss - previous years	12 426 000	14 145 000	12 860 000	20 328 000
r82	Retained earnings from previous years	12 426 000	14 145 000	12 860 000	20 328 000
r83	Accumulated losses from previous years	0
r84	Profit / loss - current year (+/-)	1 720 000	4 581 000	7 468 000	2 439 000
r85	Liabilities	17 201 000	8 592 000	9 313 000	5 261 000
r86	Reserves	0	0	0	0
r87	Reserves under special statutory regulations	0
r88	Reserves for pension and similar payables	0
r89	Income tax reserves	0
r90	Other reserves	0
r91	Long-term payables	140 000	21 000	388 000	737 000
r92	Trade payables	0
r93	Payables to controlled and managed organizations	0
r94	Payables to accounting units with substantial influence	0
r95	Payables from partners, cooperative members and association members	0
r96	Long-term advances received	0
r97	Issues bonds	0
r98	Long-term notes payables	0
r99	Estimated payables	0
r100	Other payables	140 000	21 000	388 000	737 000
r101	Deferred tax liability	0
r102	Short-term payables	17 061 000	8 571 000	8 925 000	4 524 000
r103	Trade payables	13 166 000	7 015 000	6 891 000	3 288 000
r104	Payables to controlled and managed organizations	0
r105	Payables to accounting units with substantial influence	0
r106	Payables from partners, cooperative members and association members	0
r107	Payroll	186 000	2 000
r108	Payables to social securities and health insurance	216 000	138 000
r109	Due from state - tax liabilities and subsidies	666 000	1 092 000	1 401 000	632 000
r110	Short-term deposits received	0
r111	Issues bonds	0
r112	Estimated payables	2 827 000	324 000	633 000	604 000
r113	Other payables	0
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	180 000	162 000	0
r119	Accrued expenses	0	180 000	162 000
r120	Deferred revenues	0

profit and loss account

	profit/loss account	31.05.2010 (CZK)	31.05.2011 (CZK)	31.05.2012 (CZK)	31.05.2013 (CZK)
a1	Turnover	51 346 000	56 980 000	58 743 000	57 118 000
a2	Revenues from sold goods	51 345 000	56 911 000	58 724 000	57 093 000
a3	Expenses on sold goods	34 859 000	37 555 000	40 061 000	40 333 000
a4	Sale margin	16 486 000	19 356 000	18 663 000	16 760 000
a5	Production	1 000	69 000	19 000	25 000
a6	Revenues from own products and services	1 000	69 000	19 000	25 000
a7	Change in inventory of own products	0
a8	Capitalization	0
a9	Production consumption	8 310 000	5 174 000	4 603 000	4 936 000
a10	Consumption of material and energy	1 240 000	1 101 000	924 000	1 128 000
a11	Services	7 070 000	4 073 000	3 679 000	3 808 000
a12	Added value	8 177 000	14 251 000	14 079 000	11 849 000
a13	Personnel expenses	4 387 000	4 728 000	5 637 000	6 874 000
a14	Wages and salaries	3 374 000	3 615 000	4 066 000	4 971 000
a15	Renumeration of board members	0
a16	Social security expenses and health insurance	1 009 000	1 107 000	1 373 000	1 665 000
a17	Other social expenses	4 000	6 000	198 000	238 000
a18	Taxes and fees	7 000	9 000	12 000	16 000
a19	Depreciations of intangible and tangible assets	640 000	241 000	445 000	835 000
a20	Revenues from disposals of fixed assets and materials	114 000	0	0	0
a21	Revenues from disposals of fixed assets	114 000
a22	Revenues from disposals of materials	0
a23	Net book value of disposed fixed assets and materials	114 000	0	0	0
a24	Net book value of sold fixed assets	114 000
a25	Net book value of sold material	0
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )	69 000	2 156 000	-437 000	561 000
a27	Other operating revenues	1 010 000	1 284 000	624 000	218 000
a28	Other operating expenses	759 000	1 454 000	354 000	407 000
a29	Transfer of operating revenues	0
a30	Transfer of operating expenses	0
a31	Operating profit / loss	3 325 000	6 947 000	8 692 000	3 374 000
a32	Revenues from sales of securities and ownership interests	0
a33	Sold securities and ownership interests	0
a34	Revenues from long-term financial assets	0
a35	Revenues from shares in controlled and managed organizations and in accounting units with substantial influence	0
a36	Revenues from others securities and ownership interests	0
a37	Revenues from other long-term financial assets	0
a38	Revenues from short-term financial assets	0
a39	Expenses associated with financial assets	0
a40	Revenues from revaluation of securities and derivatives	0
a41	Cost of revaluation of securities and derivatives	0
a42	Change in financial reserves and adjustments ( + / - )	0
a43	Interest revenues	1 000	1 000	2 000	1 000
a44	Interest expenses	22 000	10 000	13 000	61 000
a45	Other financial revenues	1 098 000	1 341 000	2 342 000	1 221 000
a46	Other financial expenses	2 058 000	2 104 000	1 850 000	1 418 000
a47	Transfer of financial revenues	0
a48	Transfer of financial expenses	0
a49	Profit / loss from financial operations ( transactions )	-981 000	-772 000	481 000	-257 000
a50	Income tax on ordinary income	624 000	1 594 000	1 705 000	678 000
a51	Due tax	624 000	1 594 000	1 705 000	678 000
a52	Tax deferred	0
a53	Operating profit / loss ordinary activity	1 720 000	4 581 000	7 468 000	2 439 000
a54	Extraordinary revenues	0
a55	Extraordinary expenses	0
a56	Income tax on extraordinary income	0
a57	Due tax	0
a58	Tax deferred	0
a59	Operating profit / loss extraordinary activity	0	0	0	0
a60	Transfer profit ( loss ) to partners (+/-)	0
a61	Profit / loss of current accounting period (+/-)	1 720 000	4 581 000	7 468 000	2 439 000
a62	Profit / loss before tax (+/-)	2 344 000	6 175 000	9 173 000	3 117 000
	Receivables more than 180 days after due date	150 000	179 000
	Liabilities more than 180 days after due date	0	0

Financial ratio

Balance indices		31.05.2010	31.05.2011	31.05.2012	31.05.2013
Return on total assets ROA (in %)	a62/r1 * 100	7,43	16,62	23,24	8,27
Return on equity ROE (in %)	a62/r68 * 100	16,32	21,75	30,58	9,61
Return on sales ROS (in %)	a62/a1 * 100	4,57	10,84	15,62	5,46
Turnover of receivables (in days)	r49/a1 * 365	97,87	111,87	121,44	97,96
Turnover of liabilities (in days)	r103/a1 * 365	93,59	44,94	42,82	21,01
Turnover of inventories (days)	r32/a1 * 365	93,16	99,25	101,06	94,87
Net working capital (in ths. CZK)	r31 - r102 - r116 - r117	13 678,00	28 034,00	29 500,00	31 467,00
Ratio of accounts payable to accounts receivable (in %)	(r39+r48) / (r91+r102) * 100	93,17	214,62	222,07	334,61
Ratio of profit/loss to tangible assets (in%)	r3 / a1 * 100	1,40	0,84	1,64	2,82
Current ratio	r31 / (r102+r116+r117)	1,80	4,27	4,31	7,96
Quick ratio	(r58+r48) / (r102+r116+r117)	1,03	2,46	2,48	4,67
Cash ratio	r58 / (r102+r116+r117)	0,09	0,31	0,17	0,78
Debt ratio I (in %)	(1-r68/r67) * 100	54,49	23,60	24,01	13,96
Debt ratio II (in %)	r85/r67 * 100	54,49	23,12	23,60	13,96

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.73
UK Pound	1	Rs.101.48
Euro	1	Rs.81.04

INFORMATION DETAILS

Analysis Done by :	RAS
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.