MIRA INFORM REPORT

Report Date :

13.12.2014

IDENTIFICATION DETAILS

Name :	PRONACHEM SPOL. S R.O.

Registered Office :	Bystrcká 1096/50 , 624 00 Brno

Country :	Czech Republic

Financials (as on) :	31.12.2013

Date of Incorporation :	11.11.1998

Com. Reg. No.:	C 32166

Legal Form :	Private Limited Company

Line of Business :	· Engaged in wholesale and retail sale of chemical substances and preparations (pesticides) as well as sale of dry goods, fertilizers, goods for wine growers · Engaged in wholesale of chemical products

No of Employees :	27 (2014)

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, 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

PRONACHEM spol. s r.o.
Bystrcká 1096/50
624 00 Brno
telephone:        00420/ 517 374 240
telefax:            00420/ 517 374 140
e-mail:              pronachem@pronachem.cz
Web:                www.pronachem.cz

Company summary

Company development

Constant business development

Order situation	Good order situation
Terms of payment	No Complaints

Business connection

Business connections appear permissible

Legal form

Private limited company

Foundation	11/11/1998 - Private limited company
Comp. Register	11/11/1998, Krajský soud v Brně, RegNr.: C 32166 Statistical number: 25544217 Tax number: CZ25544217

Share Capital	11/11/1998	CZK	100 000,-
Shareholders	OSEVA UNI, a.s. (Statistical number: 15061612) Na Bílé 1231, Choceň	CZK	100 000,-

Management	Ing. Antonín Doleček (18.02.1964) Lázeňská 1179, 562 00 Ústí nad Orlicí Executive Manager
	Ing. Pavel Cabák (07.03.1963) Přerovská 220/27, 779 00 Olomouc, Holice Executive Manager

General Data		Engaged in wholesale and retail sale of chemical substances and preparations (pesticides) as well as sale of dry goods, fertilizers, goods for wine growers
	Main activity: Wholesale of chemical products

		Trade name(s) PRONACHEM spol. s r.o. Beginning of validity: 11.11.1998
	Import: Austria Germany

	General contacts: telephone: 00420/ 517 374 240 telefax: 00420/ 517 374 140 e-mail: pronachem@pronachem.cz Web: www.pronachem.cz
	Address: Bystrcká 1096/50, 624 00 Brno Beginning of validity: 21.12.2006

	Řezáčova 48, 624 00 Brno Beginning of validity: 11.11.1998 End of validity: 21.12.2006
	business locations: vedení firmy, prodejna, sklad Habrovany 56, 683 01 Rousínov u Vyškova

	Dolní 223, 691 55 Moravská Nová Ves telephone: 00420/ 514 342 933
	Sušilovo nám. 20, 683 01 Rousínov u Vyškova telephone: 00420/ 777 727 314

	V Zámku 5, 664 07 Pozořice telephone: 00420/ 544 250 236
	Na Návsi 177, 683 55 Bošovice telephone: 00420/ 775 742 822

		Warehouse of the business: Za Humny 252, 664 51 Jiříkovice telephone: 00420/ 544 243 511
Staff	2006		27 employees

	2008	25 employees
	2010	23 employees

	2012	26 employees
	2014	27 employees

Annual Sales	2005	actual sales	CZK	315 033 000,-
	2006	actual sales	CZK	318 413 000,-

	2007	actual sales	CZK	332 972 000,-
	2008	actual sales	CZK	401 811 000,-

	2009	actual sales	CZK	391 365 000,-
	2010	actual sales	CZK	366 997 000,-

	2011	actual sales	CZK	387 462 000,-
	2012	actual sales	CZK	453 486 000,-

2013		actual sales	CZK	462 060 000,-
	The company is not registered in the Central register of executions.

Property	Property of the company: Business premises CZ-691 55 Moravská Nová Ves, Dolní 223
	There exists contactual right of lien.

Balance sheets	The enclosed balance of 2013 from business register, -. (31.12.2013 - 1 CZK) The enclosed balance of 2012 from business register, -. (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, -. (31.12.2013 - 1 CZK) The enclosed profit/loss account of 2012 from business register, -. (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.
	Business management: Ing. Pavel Cabák - company director, mobile phone: 00420/ 777 727 831 Vladimíra Soukoppová - economist, mobile phone: 00420/ 777 727 833

Bankers	Komerční banka, a.s. Account number: 27-485390237/0100 Account number: 86-1844420237/0100 Account number: 9010280297/0100 Československá obchodní banka, a. s. Account number: 117022473/0300
Copyright:. 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	31.12.2010 (CZK)	31.12.2011 (CZK)	31.12.2012 (CZK)	31.12.2013 (CZK)
r1	TOTAL ASSETS	84 024 000	92 633 000	75 525 000	80 580 000
r3	Fixed assets	24 275 000	22 085 000	20 069 000	17 889 000
r4	Intangible fixed assets	0	0	0	0
r13	Tangible fixed assets	24 275 000	22 085 000	20 069 000	17 889 000
r14	Lands	126 000	126 000	126 000	126 000
r15	Constructions	22 252 000	20 307 000	18 455 000	16 730 000
r16	Equipment	1 897 000	1 652 000	1 488 000	1 033 000
r23	Long-term financial assets	0	0	0	0
r31	Current assets	58 697 000	70 066 000	55 051 000	61 098 000
r32	Inventory	13 592 000	12 561 000	11 267 000	19 707 000
r37	Merchandise	13 592 000	12 561 000	11 267 000	19 707 000
r39	Long-term receivables	1 089 000	0	14 000	14 000
r45	Estimated receivable	1 089 000		14 000	14 000
r48	Short-term receivables	23 216 000	26 482 000	20 241 000	15 430 000
r49	Trade receivables	21 225 000	22 353 000	17 721 000	12 562 000
r54	Due from state - tax receivable	288 000	8 000	1 189 000	1 210 000
r55	Short-term deposits given	1 694 000	1 629 000	1 331 000	1 658 000
r56	Estimated receivable		2 492 000
r57	Other receivables	9 000
r58	Short-term financial assets	20 800 000	31 023 000	23 529 000	25 947 000
r59	Cash	258 000	210 000	556 000	360 000
r60	Bank accounts	20 542 000	30 813 000	22 973 000	25 587 000
r63	Accruals	1 052 000	482 000	405 000	1 593 000
r64	Deferred expenses	548 000	482 000	404 000	357 000
r66	Deferred income	504 000		1 000	1 236 000
r67	TOTAL LIABILITIES	84 024 000	92 633 000	75 525 000	80 580 000
r68	Equity	35 040 000	37 299 000	42 632 000	46 279 000
r69	Registered capital	100 000	100 000	100 000	100 000
r70	Registered capital	100 000	100 000	100 000	100 000
r73	Capital funds	0	0	0	0
r78	Reserve funds, statutory reserve account for cooperatives, and other retained earnings	10 000	10 000	10 000	10 000
r79	Legal reserve fund / indivisible fund	10 000	10 000	10 000	10 000
r81	Profit / loss - previous years	22 849 000	24 930 000	27 189 000	29 522 000
r82	Retained earnings from previous years	22 849 000	24 930 000	27 189 000	29 522 000
r84	Profit / loss - current year (+/-)	12 081 000	12 259 000	15 333 000	16 647 000
r85	Liabilities	46 045 000	48 058 000	31 802 000	31 444 000
r86	Reserves	0	0	0	0
r91	Long-term payables	124 000	0	157 000	0
r99	Estimated payables	124 000		157 000
r102	Short-term payables	45 921 000	48 058 000	31 645 000	30 603 000
r103	Trade payables	43 863 000	39 274 000	26 626 000	28 882 000
r107	Payroll	930 000	521 000	526 000	523 000
r108	Payables to social securities and health insurance	261 000	292 000	275 000	111 000
r109	Due from state - tax liabilities and subsidies	297 000	3 675 000	787 000	758 000
r110	Short-term deposits received	570 000	945 000	752 000	142 000
r112	Estimated payables		3 351 000	2 679 000	153 000
r113	Other payables				34 000
r114	Bank loans and financial accommodations	0	0	0	841 000
r115	Long-term bank loans	0	0	0	0
r116	Short-term bank loans	0	0	0	841 000
r117	Short-term accommodations	0	0	0	0
r118	Accruals	2 939 000	7 276 000	1 091 000	2 857 000
r119	Accrued expenses	2 939 000	7 276 000	1 091 000	2 857 000
	profit/loss account	31.12.2010 (CZK)	31.12.2011 (CZK)	31.12.2012 (CZK)	31.12.2013 (CZK)
a1	Turnover	366 997 000	387 462 000	453 486 000	462 060 000
a2	Revenues from sold goods	366 403 000	386 944 000	452 668 000	460 843 000
a3	Expenses on sold goods	327 260 000	345 438 000	405 936 000	413 110 000
a4	Sale margin	39 143 000	41 506 000	46 732 000	47 733 000
a5	Production	594 000	518 000	818 000	1 217 000
a6	Revenues from own products and services	594 000	518 000	818 000	1 217 000
a7	Change in inventory of own products			0	0
a8	Capitalization			0	0
a9	Production consumption	9 555 000	9 556 000	10 120 000	10 162 000
a10	Consumption of material and energy	1 799 000	2 010 000	1 984 000	2 037 000
a11	Services	7 756 000	7 546 000	8 136 000	8 125 000
a12	Added value	30 182 000	32 468 000	37 430 000	38 788 000
a13	Personnel expenses	12 095 000	13 717 000	14 763 000	15 509 000
a14	Wages and salaries	8 647 000	9 812 000	10 676 000	11 011 000
a15	Renumeration of board members		100 000	100 000	100 000
a16	Social security expenses and health insurance	2 956 000	3 190 000	3 287 000	3 612 000
a17	Other social expenses	492 000	615 000	700 000	786 000
a18	Taxes and fees	41 000	41 000	44 000	45 000
a19	Depreciations of intangible and tangible assets	3 022 000	2 992 000	2 863 000	2 615 000
a20	Revenues from disposals of fixed assets and materials	85 000	128 000	55 000	293 000
a21	Revenues from disposals of fixed assets	85 000	128 000	55 000	293 000
a22	Revenues from disposals of materials			0	0
a23	Net book value of disposed fixed assets and materials	0	0	0	42 000
a24	Net book value of sold fixed assets			0	42 000
a25	Net book value of sold material			0	0
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )	-189 000	-1 555 000	-1 528 000	0
a27	Other operating revenues	1 442 000	484 000	2 501 000	2 317 000
a28	Other operating expenses	1 080 000	2 065 000	4 334 000	1 968 000
a29	Transfer of operating revenues			0	0
a30	Transfer of operating expenses			0	0
a31	Operating profit / loss	15 660 000	15 820 000	19 510 000	21 219 000
a32	Revenues from sales of securities and ownership interests			0	0
a33	Sold securities and ownership interests			0	0
a34	Revenues from long-term financial assets	0	0	0	0
a35	Revenues from shares in controlled and managed organizations and in accounting units with substantial influence			0	0
a36	Revenues from others securities and ownership interests			0	0
a37	Revenues from other long-term financial assets			0	0
a38	Revenues from short-term financial assets			0	0
a39	Expenses associated with financial assets			0	0
a40	Revenues from revaluation of securities and derivatives			0	0
a41	Cost of revaluation of securities and derivatives			0	0
a42	Change in financial reserves and adjustments ( + / - )			0	0
a43	Interest revenues	77 000	55 000	81 000	58 000
a44	Interest expenses	102 000	116 000	113 000	101 000
a45	Other financial revenues	55 000	45 000	10 000	98 000
a46	Other financial expenses	726 000	629 000	546 000	695 000
a47	Transfer of financial revenues			0	0
a48	Transfer of financial expenses			0	0
a49	Profit / loss from financial operations ( transactions )	-696 000	-645 000	-568 000	-640 000
a50	Income tax on ordinary income	2 889 000	2 916 000	3 609 000	3 933 000
a51	Due tax	2 889 000	2 916 000	3 609 000	3 933 000
a52	Tax deferred			0	0
a53	Operating profit / loss ordinary activity	12 075 000	12 259 000	15 333 000	16 646 000
a54	Extraordinary revenues	6 000		0	1 000
a55	Extraordinary expenses			0	0
a56	Income tax on extraordinary income	0	0	0	0
a57	Due tax			0	0
a58	Tax deferred			0	0
a59	Operating profit / loss extraordinary activity	6 000	0	0	1 000
a60	Transfer profit ( loss ) to partners (+/-)			0	0
a61	Profit / loss of current accounting period (+/-)	12 081 000	12 259 000	15 333 000	16 647 000
a62	Profit / loss before tax (+/-)	14 970 000	15 175 000	18 942 000	20 580 000
	Receivables after due date total			9 764 000	8 639 000
	Receivables more than 180 days after due date			3 700 000	2 203 000
	Liabilities after due date total			2 221 000	1 864 000
	Liabilities more than 180 days after due date			1 340 000	1 523 000

Balance indices		31.12.2010	31.12.2011	31.12.2012	31.12.2013
Return on total assets ROA (in %)	a62/r1 * 100	17,82	16,38	25,08	25,54
Return on equity ROE (in %)	a62/r68 * 100	42,72	40,68	44,43	44,47
Return on sales ROS (in %)	a62/a1 * 100	4,08	3,92	4,18	4,45
Turnover of receivables (in days)	r49/a1 * 365	21,11	21,06	14,26	9,92
Turnover of liabilities (in days)	r103/a1 * 365	43,62	37,00	21,43	22,82
Turnover of inventories (days)	r32/a1 * 365	13,52	11,83	9,07	15,57
Net working capital (in ths. CZK)	r31 - r102 - r116 - r117	12 776,00	22 008,00	23 406,00	29 654,00
Ratio of accounts payable to accounts receivable (in %)	(r39+r48) / (r91+r102) * 100	52,79	55,10	63,69	50,47
Ratio of profit/loss to tangible assets (in%)	r3 / a1 * 100	6,61	5,70	4,43	3,87
Current ratio	r31 / (r102+r116+r117)	1,28	1,46	1,74	1,94
Quick ratio	(r58+r48) / (r102+r116+r117)	0,96	1,20	1,38	1,32
Cash ratio	r58 / (r102+r116+r117)	0,45	0,65	0,74	0,83
Debt ratio I (in %)	(1-r68/r67) * 100	58,30	59,73	43,55	42,57
Debt ratio II (in %)	r85/r67 * 100	54,80	51,88	42,11	39,02

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.44
UK Pound	1	Rs.98.15
Euro	1	Rs.77.38

INFORMATION DETAILS

Analysis Done by :	RAS

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