MIRA INFORM REPORT

Report Date :

12.12.2014

IDENTIFICATION DETAILS

Name :	EUROSERUM S.R.O.

Formerly Known As :	Picarros, s.r.o.

Registered Office :	Revoluční 1489, 349 01 Stříbro

Country :	Czech Republic

Financials (as on) :	31.12.2013

Date of Incorporation :	31.08.2000

Com. Reg. No.:	C 14507

Legal Form :	Private Limited Company

Line of Business :	· Engaged as producer of demineralized whey powder for infant food · Engaged in manufacturing and sale of milk products, milk and whey. · Engaged in operation of dairies and cheese making subject product ranges includes: Whey powders · Sicalac® - Sicalac Premium (High Quality) · Sicalac 25 - 40 - 50 · Sicalac 70 - 90 · Sicalac Premium 50P - 80P Functional dairy ingredients · SicaMilk®: · SicaCook®: · SicaChoc®: · SicaShine®: · SicaBake®: Dairy powders · Skimmed milk powder · Whole milk powder · Butter milk Powder · Whey permeate · Milk permeate Animal Feed · Sweet Whey · Sour Whey · Goat Whey

No of Employees :	47 (2014)

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but Correct
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, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. 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 & address

EUROSERUM s.r.o.
Revoluční 1489
349 01 Stříbro
telephone:        00420/ 374 616 211
telefax:            00420/ 374 616 217
e-mail:              pmarchal@euroserum.com
Web:                www.euroserum.com

Company summary

Company development

Constant business development

Order situation	Good course of business
Terms of payment	mostly within agreed terms, but partly also delayed

Business connection

Business connections are not denied

Legal form

Private limited company

Foundation	31/08/2000 - Private limited company
Comp. Register	31/08/2000, Městský soud v Praze, RegNr.: C 78944 19/07/2002, Krajský soud Plzeň, RegNr.: C 14507 Statistical number: 26197600 Tax number: CZ26197600

Share Capital	31/08/2000	CZK	100 000,-
	21/05/2003	CZK	15 680 000,-

Shareholders	EUROSERUM S.A.S. Route de Luxeuil, 70170 les Bains Port sur Saone, France		CZK	15 680 000,-
Management		Claude Gaudillat (19.04.1961) Lotissement la Verchere, 01190 Pont de Vaux, France Executive Manager

	Jean-Didier Haegi (23.08.1960) bis rue de Boyer 22, 69160 Tassin la Demi Lune, France Executive Manager
	Yves Rambaux (24.01.1954) sentier des Vignes 3, 70160 Faverney, France Executive Manager

General Data		Manufacture and sale of milk products, milk and whey.
	Main activity: producer of demineralized whey powder for infant food Operation of dairies and cheese making
	Product details Whey powders · Sicalac® - Sicalac Premium (High Quality) · Sicalac 25 - 40 - 50 · Sicalac 70 - 90 · Sicalac Premium 50P - 80P Functional dairy ingredients · SicaMilk®: · SicaCook®: · SicaChoc®: · SicaShine®: · SicaBake®: Dairy powders · Skimmed milk powder · Whole milk powder · Butter milk Powder · Whey permeate · Milk permeate Animal Feed · Sweet Whey · Sour Whey · Goat Whey

	Former name(s) Picarros, s.r.o. Beginning of validity: 31.08.2000 End of validity: 30.05.2001
	Trade name(s) EUROSERUM s.r.o. Beginning of validity: 30.05.2001

Export:		88%
	General contacts: telephone: 00420/ 374 616 211 telefax: 00420/ 374 616 217 e-mail: pmarchal@euroserum.com Web: www.euroserum.com

	Address: Revoluční 1489, 349 01 Stříbro Beginning of validity: 03.04.2002
	Na Poříčí 25, 110 00 Praha 1 Beginning of validity: 31.08.2000 End of validity: 03.04.2002

Staff	2006	42 employees
	2007	45 employees

	2008	50 employees
	2009	52 employees

	2010	50 employees
	2011	50 employees

	2012	47 employees
	2013	47 employees

		2014	47 employees
Annual Sales	2005			actual sales	CZK	187 311 000,-

	2006	actual sales	CZK	216 247 000,-
	2007	actual sales	CZK	373 909 000,-

	2008	actual sales	CZK	214 855 000,-
	2009	actual sales	CZK	174 008 000,-

	2010	actual sales	CZK	286 710 000,-
	2011	actual sales	CZK	342 458 000,-

	2012	actual sales	CZK	447 682 000,-
	2013	actual sales	CZK	477 579 000,-

	The company is not registered in the Central register of executions.
Balance sheets	The enclosed balance of 2013 from business register, it is authenticated by the auditor. (31.12.2013 - 1 CZK) 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 profit/loss account of 2013 from business register, it is authenticated by the auditor. (31.12.2013 - 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)
Remarks	All the sources of negative data accessible to public (insolvency registers, databases of debtors of health insurance institutions, commercial bulletin, collection database and others) are currently monitored.

	The company is a part of the European group Euroserum, It belongs to the most important whey processing subjects in the world. In the final account for the year 2011, the auditor, without expressing an opinion with reservation, has drawn attention to the fact that the company had shown, as of 31.12.2011, negative value of equity capital at the amount of CZK 1.440 thousand. Mother company has obliged itself to provide to the inquired company, in case of need, financial support for a period of at least twelve months from the date of final account and has declared to dispose of sufficient amount of sources to provide such a support. Without such a help, capability of the company to continue its activities might be endangered. In the enclosure to the final account for the year 2012, no reservation has been expressed; for the years 2012 and 2013, the company was not showing any negative equity capital. Contact: Mr. Azilinon, financial director, phone: 00420/ 374 616 231, mobile phone: 00420/ 724 081 225, e-mail: lazilinon@euroserum.com Mrs. Fantová, chief accountant, phone: 00420/ 374 616 225
Bankers	Sberbank CZ, a.s. Account number: 4030019499/6800

Copyright:

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	31.12.2010 (CZK)	31.12.2011 (CZK)	31.12.2012 (CZK)	31.12.2013 (CZK)
r1	TOTAL ASSETS	149 036 000	175 793 000	186 012 000	195 931 000
r2	Receivables for subscriptions	0	0	0	0
r3	Fixed assets	45 060 000	46 564 000	54 043 000	67 371 000
r4	Intangible fixed assets	947 000	589 000	832 000	0
r5	Incorporation expenses		0
r6	Research and development		0
r7	Software	64 000	0
r8	Valuable rights		0
r9	Goodwill		0
r10	Other intangible fixed assets	883 000	589 000	832 000
r11	Intangible fixed assets under construction		0
r12	Advance payments for intangible fixed assets		0
r13	Tangible fixed assets	44 113 000	45 975 000	53 211 000	67 371 000
r14	Lands	1 992 000	1 992 000	1 992 000	1 992 000
r15	Constructions	24 704 000	26 102 000	25 511 000	29 087 000
r16	Equipment	16 695 000	14 567 000	13 590 000	15 682 000
r17	Perennial corps		0
r18	Breeding and draught animals		0
r19	Other tangible fixed assets		0
r20	Tangible fixed assets under construction	722 000	3 314 000	12 118 000	20 610 000
r21	Advance payments for tangible fixed assets		0
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	103 963 000	129 221 000	131 969 000	128 552 000
r32	Inventory	51 482 000	74 404 000	76 107 000	70 905 000
r33	Materials	5 200 000	6 228 000	9 616 000	9 515 000
r34	Work in progress and semi-products		0
r35	Finished products	46 260 000	68 176 000	66 491 000	61 390 000
r36	Animals		0
r37	Merchandise	22 000	0
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	48 444 000	49 560 000	54 014 000	54 117 000
r49	Trade receivables	43 687 000	45 203 000	47 906 000	46 616 000
r50	Receivables from controlled and managed organizations		0
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	4 226 000	4 341 000	6 108 000	7 501 000
r55	Short-term deposits given	531 000	16 000
r56	Estimated receivable		0
r57	Other receivables		0
r58	Short-term financial assets	4 037 000	5 257 000	1 848 000	3 530 000
r59	Cash	72 000	72 000	124 000	66 000
r60	Bank accounts	3 965 000	5 185 000	1 724 000	3 464 000
r61	Short-term securities and ownership interests		0
r62	Short-term financial assets acquired		0
r63	Accruals	13 000	8 000	0	8 000
r64	Deferred expenses	13 000	8 000		8 000
r65	Complex deferred costs		0
r66	Deferred income		0
r67	TOTAL LIABILITIES	149 036 000	175 793 000	186 012 000	195 931 000
r68	Equity	-45 551 000	-1 440 000	10 980 000	13 019 000
r69	Registered capital	15 680 000	15 680 000	15 680 000	15 680 000
r70	Registered capital	15 680 000	15 680 000	15 680 000	15 680 000
r71	Company’s own shares and ownership interests (-)		0
r72	Changes of registered capital ( +/- )		0
r73	Capital funds	0	4 481 000	0	0
r74	Share premium		4 481 000
r75	Other capital funds		0
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	4 481 000	0	4 481 000	4 481 000
r79	Legal reserve fund / indivisible fund	4 481 000	0	4 481 000	4 481 000
r80	Statutory and other funds		0
r81	Profit / loss - previous years	-47 058 000	-65 712 000	-21 601 000	-9 180 000
r82	Retained earnings from previous years		0
r83	Accumulated losses from previous years	-47 058 000	-65 712 000	-21 601 000	-9 180 000
r84	Profit / loss - current year (+/-)	-18 654 000	44 111 000	12 420 000	2 038 000
r85	Liabilities	194 587 000	177 233 000	164 657 000	182 912 000
r86	Reserves	0	6 315 000	603 000	1 272 000
r87	Reserves under special statutory regulations		0
r88	Reserves for pension and similar payables		0
r89	Income tax reserves		6 315 000
r90	Other reserves		0	603 000	1 272 000
r91	Long-term payables	0	0	0	0
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		0
r101	Deferred tax liability		0
r102	Short-term payables	194 587 000	170 918 000	164 054 000	181 640 000
r103	Trade payables	27 926 000	36 350 000	63 679 000	85 397 000
r104	Payables to controlled and managed organizations	159 455 000	121 767 000	85 377 000	84 469 000
r105	Payables to accounting units with substantial influence		0
r106	Payables from partners, cooperative members and association members		0
r107	Payroll	1 108 000	865 000	843 000	884 000
r108	Payables to social securities and health insurance	671 000	523 000	487 000	545 000
r109	Due from state - tax liabilities and subsidies	1 073 000	722 000	896 000	132 000
r110	Short-term deposits received		0
r111	Issues bonds		0
r112	Estimated payables	4 309 000	10 668 000	12 751 000	10 183 000
r113	Other payables	45 000	23 000	21 000	30 000
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	10 375 000	0
r119	Accrued expenses		0
r120	Deferred revenues		0	10 375 000

	profit/loss account		31.12.2010 (CZK)	31.12.2011 (CZK)	31.12.2012 (CZK)	31.12.2013 (CZK)
a1	Turnover		286 710 000	342 458 000	447 682 000	477 579 000
a2	Revenues from sold goods		17 748 000	14 169 000	9 745 000	3 413 000
a3	Expenses on sold goods		17 835 000	11 579 000	8 947 000	3 230 000
a4	Sale margin		-87 000	2 590 000	798 000	183 000
a5	Production		345 380 000	389 888 000	475 513 000	464 574 000
a6	Revenues from own products and services		268 962 000	328 289 000	437 937 000	474 166 000
a7	Change in inventory of own products		30 077 000	23 866 000	-278 000	-9 592 000
a8	Capitalization		46 341 000	37 733 000	37 854 000
a9	Production consumption		334 550 000	357 337 000	433 674 000	434 937 000
a10	Consumption of material and energy		299 084 000	314 887 000	385 590 000	381 178 000
a11	Services		35 466 000	42 450 000	48 084 000	53 759 000
a12	Added value		10 743 000	35 141 000	42 637 000	29 820 000
a13	Personnel expenses		18 477 000	19 281 000	19 135 000	20 087 000
a14	Wages and salaries		13 425 000	13 983 000	13 867 000	14 624 000
a15	Renumeration of board members			0
a16	Social security expenses and health insurance		4 506 000	4 693 000	4 708 000	5 002 000
a17	Other social expenses		546 000	605 000	560 000	461 000
a18	Taxes and fees		355 000	347 000	377 000	454 000
a19	Depreciations of intangible and tangible assets		6 850 000	6 136 000	6 344 000	7 015 000
a20	Revenues from disposals of fixed assets and materials		283 000	493 000	117 000	62 000
a21	Revenues from disposals of fixed assets		283 000	54 000
a22	Revenues from disposals of materials			439 000	117 000	62 000
a23	Net book value of disposed fixed assets and materials		246 000	421 000	0	0
a24	Net book value of sold fixed assets		246 000	54 000
a25	Net book value of sold material			367 000
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )		1 101 000	1 459 000	-2 576 000	-1 310 000
a27	Other operating revenues		4 452 000	48 110 000	2 984 000	1 209 000
a28	Other operating expenses		4 275 000	5 627 000	3 719 000	1 863 000
a29	Transfer of operating revenues			0
a30	Transfer of operating expenses			0
a31	Operating profit / loss		-15 826 000	50 473 000	18 739 000	2 982 000
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		0	0	0	0
a44	Interest expenses		2 213 000	2 129 000	1 464 000	892 000
a45	Other financial revenues		-56 000	2 172 000	240 000	961 000
a46	Other financial expenses		559 000	90 000	2 177 000	571 000
a47	Transfer of financial revenues			0
a48	Transfer of financial expenses			0
a49	Profit / loss from financial operations ( transactions )		-2 828 000	-47 000	-3 401 000	-502 000
a50	Income tax on ordinary income		0	6 315 000	2 918 000	442 000
a51	Due tax			6 315 000	2 918 000	442 000
a52	Tax deferred			0
a53	Operating profit / loss ordinary activity		-18 654 000	44 111 000	12 420 000	2 038 000
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 (+/-)		-18 654 000	44 111 000	12 420 000	2 038 000
a62	Profit / loss before tax (+/-)		-18 654 000	50 426 000	15 338 000	2 480 000
	Operating cash flow		-53 632 000	4 013 000	36 283 000	10 741 000
	Investment cash flow		-1 564 000	-8 105 000	-3 302 000	-8 151 000
	Financial cash flow		58 997 000	5 312 000	-36 390 000	908 000
	Receivables after due date total		11 139 000	5 928 000	6 234 000	4 227 000
	Liabilities after due date total		764 000	8 153 000	25 324 000	29 317 000
Balance indices			31.12.2010	31.12.2011	31.12.2012	31.12.2013
Return on total assets ROA (in %)		a62/r1 * 100	-12,52	28,68	8,25	1,27
Return on equity ROE (in %)		a62/r68 * 100	40,95	-3 501,81	139,69	19,05
Return on sales ROS (in %)		a62/a1 * 100	-6,51	14,72	3,43	0,52
Turnover of receivables (in days)		r49/a1 * 365	55,62	48,18	39,06	35,63
Turnover of liabilities (in days)		r103/a1 * 365	35,55	38,74	51,92	65,27
Turnover of inventories (days)		r32/a1 * 365	65,54	79,30	62,05	54,19
Net working capital (in ths. CZK)		r31 - r102 - r116 - r117	-90 624,00	-41 697,00	-32 085,00	-53 088,00
Ratio of accounts payable to accounts receivable (in %)		(r39+r48) / (r91+r102) * 100	24,90	29,00	32,92	29,79
Ratio of profit/loss to tangible assets (in%)		r3 / a1 * 100	15,72	13,60	12,07	14,11
Current ratio		r31 / (r102+r116+r117)	0,53	0,76	0,80	0,71
Quick ratio		(r58+r48) / (r102+r116+r117)	0,27	0,32	0,34	0,32
Cash ratio		r58 / (r102+r116+r117)	0,02	0,03	0,01	0,02
Debt ratio I (in %)		(1-r68/r67) * 100	130,56	100,82	94,10	93,36
Debt ratio II (in %)		r85/r67 * 100	130,56	100,82	88,52	93,36

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.21
UK Pound	1	Rs.97.80
Euro	1	Rs.77.48

INFORMATION DETAILS

Analysis Done by :	SUM

Report Prepared by :	MNL

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 & address

Company summary

Financial data

Unit