MIRA INFORM REPORT

Report Date :

20.02.2014


Tel. No.:	+48 42 6777 920

IDENTIFICATION DETAILS

Name :	KAN SP. Z O.O.

Registered Office :	ul. Wiączyńska 8A, 92-760 Łódź

Country :	Poland

Financials (as on) :	31.12.2012 (Personal Balance Sheet) 31.12.2010 (Consolidated Balance Sheet)

Date of Incorporation :	27.09.1995

Com. Reg. No.:	KRS 119998

Legal Form :	Limited Liability Company

Line of Business :	Engaged in manufacturing and sale of clothing

No. of Employees :	504 (2010)

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 :	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 – december 01, 2013

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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 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 & address

KAN Sp. z o.o.

ul. Wiączyńska 8A
92-760 Łódź, Poland

Phone: 42 6777977

Fax: 42 6777999

E-mail: kan@kan.pl

Website: www.kan.pl

Company summary

Legal form	Limited liability company
Stat.no.	471164930
Tax ID	PL 7251019880

Establishment	27.09.1995
Changes of names and addresses	27.09.1995 ul. Narutowicza 57, 90-130 Łódź
	11.12.2000 ul. Wiączyńska 8A, 92-760 Łódź

Registration:

31.07.2002, District Court Łódź, XX Department, KRS 119998

Data concerning previous registrations:
09.10.1995, District Court Łódź, RHB 5446

Shareholders	Józef Kapitańczyk , personal ID no. (PESEL) 47100803113, ul. Spokojna 2, 05-510 Konstancin-Jeziorna	PLN	1 170 000,00 90,00%

	Aleksandra Teresa Płocek , personal ID no. (PESEL) 58100305086, al. Włókniarzy 238A/16, 90-556 Łódź	PLN	130 000,00 10,00%

	list entered to NCR /KRS/ on 28.02.2005

Initial Capital		PLN 1 300 000,00
	Initial capital divided into 2600 shares of PLN 500,00 each
Management	Józef Kapitańczyk , personal ID no. (PESEL) 47100803113, ul. Spokojna 2, 05-510 Konstancin-Jeziorna - president
	Proxies: Adam Kapitańczyk , personal ID no. (PESEL) 77011200631 - independent proxy
	Representation: Cooperation of two members of the board of directors or one member with proxy jointly is required to submit statements of will on behalf of the company or the president, solely and without limitations.

Main activity	Engaged in manufacturing and sale of clothing
	Branches NACE 2007:
	Other retail
	Manufacture of other outerwear

Employment

2006:              330       employees
2007:              366       employees
2008:              482       employees
2009:              480       employees
2010:              504       employees

Turnover	2008	PLN	153 238 060,60
	2009	PLN	182 237 493,30
	2010	PLN	166 514 724,18
	2011	PLN	159 550 937,95
	2012	PLN	146 279 640,67

consolidated turnover	2006	PLN	158 309 704,93
	2007	PLN	200 612 783,17
	2008	PLN	200 832 746,20
	2009	PLN	229 331 356,64
	2010	PLN	218 032 168,11

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......................	25 594 884,67	36 036 790,27	34 746 710,28	34 124 223,24
- I. Intangible assets.............	724 261,20	1 035 562,15	1 117 495,10	945 598,12
- 3. Other intangible assets.......	724 261,20	1 035 562,15	1 117 495,10	945 598,12
- II. Tangible assets...............	8 042 026,97	9 717 174,71	10 756 040,28	13 004 899,44
- 1. Fixed goods...................	8 037 026,97	9 405 259,28	10 699 454,08	11 344 400,35
- a) land........................	103 600,00	103 600,00	103 600,00	103 600,00
- b) buildings, premises, facilities............................	4 902 401,23	4 983 897,76	5 315 961,01	4 967 369,94
- c) machinery and equipment.....	835 794,12	1 065 195,21	1 220 600,23	1 519 554,30
- d) fleet of motor vehicles.....	334 219,42	319 079,22	182 604,01	222 140,02
- e) other fixed goods...........	1 861 012,20	2 933 487,09	3 876 688,83	4 531 736,09
- 2. Fixed goods under construction..........................	5 000,00	311 915,43	56 586,20	1 660 499,09
- III. Long term receivables.........	58 680,00	61 596,00	56 880,00	55 944,00
- 1. From affiliated companies.....	58 680,00	61 596,00	56 880,00	55 944,00
- IV. Long term investments.........	10 191 629,50	20 074 081,90	18 778 792,66	15 963 393,47
- 1. Real estate...................	1 446 123,32	1 446 123,32	1 446 123,32
- 3. Long term financial assets....	8 745 506,18	18 627 958,58	17 332 669,34	15 963 393,47
- a) in affiliated companies.....	8 745 506,18	18 627 958,58	17 332 669,34	15 963 393,47
- - participations or shares...	8 745 506,18	18 627 958,58	17 332 669,34	15 880 953,17
- - granted loans..............				82 440,30
-V. Long-term prepayments and accrued income........................	6 578 287,00	5 148 375,51	4 037 502,24	4 154 388,21
- 1. Deferred tax assets.............	6 578 287,00	5 146 563,00	4 029 510,00	4 079 652,00
- 2. Other prepayments...............		1 812,51	7 992,24	74 736,21
-B. Current assets....................	54 621 691,27	55 203 058,17	61 460 392,84	70 192 058,13
- I. Stock.........................	22 646 516,14	23 505 661,54	29 598 978,76	26 103 723,53
- 1. Raw materials.................	33 641,55	1 286 142,95	1 681 109,66	462 872,88
- 4. Goods for re-sale.............	22 106 223,93	21 666 974,61	27 098 446,19	25 100 077,17
- 5. Advance payments .............	506 650,66	552 543,98	819 422,91	540 773,48
- II. Short-term receivables.........	30 145 778,11	27 930 012,24	28 878 617,29	39 770 511,85
- 1. Receivables from affiliated companies.............................	19 383 339,06	17 543 943,90	21 359 942,47	28 544 169,72
- a) Due to deliveries and services with payment period:.........	12 027 214,14	17 089 343,15	20 951 250,59	28 231 892,38
- - up to 12 months............	12 027 214,14	17 089 343,15	20 951 250,59	28 231 892,38
- b) Other.......................	7 356 124,92	454 600,75	408 691,88	312 277,34
- 2. Other receivables ............	10 762 439,05	10 386 068,34	7 518 674,82	11 226 342,13
- a) Due to deliveries and services with payment period:.........	8 409 254,30	8 084 902,56	5 020 349,17	8 809 032,90
- - up to 12 months............	8 409 254,30	8 084 902,56	5 020 349,17	8 809 032,90
- b) Due to taxes, subsidies, insurances, duties, etc...............	187 869,69	825 934,69	516 261,64	394 729,14
- c) Other.......................	2 165 315,06	1 475 231,09	1 982 064,01	2 022 580,09
- III. Short term investments........	1 338 064,24	3 242 573,63	2 620 823,39	3 696 151,90
- 1. Short-term financial assets...	1 338 064,24	3 242 573,63	2 620 823,39	3 696 151,90
- c) cash and other liquid assets................................	1 338 064,24	3 242 573,63	2 620 823,39	3 696 151,90
- - cash in hand and on bank account...............................	962 836,90	2 496 376,13	2 098 783,05	2 537 648,23
- - other liquid assets........	375 227,34	746 197,50	522 040,34	1 158 503,67
-IV. Short-term prepayments and accrued income........................	491 332,78	524 810,76	361 973,40	621 670,85
-D. Total assets......................	80 216 575,94	91 239 848,44	96 207 103,12	104 316 281,37
-A. Shareholders' equity..............	19 800 646,10	28 108 784,61	36 542 025,30	36 283 098,69
- I. Basic share capital...........	1 300 000,00	1 300 000,00	1 300 000,00	1 300 000,00
- IV. Statutory reserve capital.....	26 808 784,61	35 242 025,30	34 983 098,69	33 316 720,31
- VII. Profit (loss) carried forward.		-66 281,70
- VIII. Net profit (loss)............	-8 308 138,51	-8 366 958,99	258 926,61	1 666 378,38
-B. Liabilities and reserves for liabilities...........................	60 415 929,84	63 131 063,83	59 665 077,82	68 033 182,68
- I. Reserves for liabilities......	294 248,00	424 343,00	218 253,00	390 675,00
- 1. Deferred income tax reserves..	294 248,00	424 343,00	218 253,00	390 675,00
-II. Long-term liabilities...........	2 989 264,09	2 795 610,18	2 807 156,53	4 079 463,16
- 1. Due affiliated companies........	2 783 797,00	2 464 000,00	2 304 000,00	1 998 000,00
- 2. Other liabilities...............	205 467,09	331 610,18	503 156,53	2 081 463,16
- a) Loans.........................			43 750,20	75 000,00
- c) Other financial liabilities...	205 467,09	331 610,18	459 406,33	2 006 463,16
-III. Short-term liabilities..........	55 568 803,25	58 107 989,97	55 839 784,38	62 900 054,31
- 1. Due to affiliated companies.....	2 935 094,63	3 234 483,73	339 031,04	870 810,41
- a) Due to deliveries and services with payment period:.........	2 923 172,74	3 222 561,84	322 539,77	15 239,00
- - up to 12 months..............	2 923 172,74	3 222 561,84	322 539,77	15 239,00
- b) Other.........................	11 921,89	11 921,89	16 491,27	855 571,41
- 2. Other liabilities...............	52 257 218,29	54 493 564,41	55 114 852,50	61 629 608,23
- a) Loans.........................	24 317 181,00	27 425 046,97	25 649 088,78	32 354 232,93
- c) Other financial liabilities...	1 776 376,37	3 559 475,85	7 068 931,83	5 417 089,97
- d)Due to deliveries and services with payment period:.........	22 730 765,10	20 572 553,57	19 227 328,63	21 116 423,50
- - up to 12 months..............	22 730 765,10	20 572 553,57	19 227 328,63	21 116 423,50
- g) Due to taxes, subsidies, insurances, duties, etc...............	1 906 280,06	1 228 447,79	1 611 751,66	1 188 553,70
- h) Due to salaries...............	1 501 488,87	1 676 090,37	1 509 775,33	1 446 153,08
- i) Other.........................	25 126,89	31 949,86	47 976,27	107 155,05
- 3. Special funds...................	376 490,33	379 941,83	385 900,84	399 635,67
-IV. Accruals and deferred income....	1 563 614,50	1 803 120,68	799 883,91	662 990,21
- 2. Other accruals..................	1 563 614,50	1 803 120,68	799 883,91	662 990,21
- - short-term.....................	1 563 614,50	1 803 120,68	799 883,91	662 990,21
-D. Total liabilities.................	80 216 575,94	91 239 848,44	96 207 103,12	104 316 281,37

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.....	146 279 640,67	159 550 937,95	166 514 724,18	182 237 493,30
- - including related companies......	23 770 838,77	26 086 358,58	31 366 337,90	42 798 816,51
- I. Net income on sales...........			39 067 061,24	41 905 493,23
- II. Change in value of stock ( +, -).................................			-247 466,56	-10 263,26
- IV. Income from sales of goods and materials.........................	146 279 640,67	159 550 937,95	127 695 129,50	140 342 263,33
-B. Operational costs.................	156 789 346,14	157 619 118,92	157 180 764,08	175 655 509,04
- I. Depreciation..................	2 755 339,11	2 874 565,37	2 470 529,46	2 275 192,89
- II. Materials and energy..........	2 998 885,50	3 491 821,56	3 193 803,75	3 526 526,09
- III. Third party services..........	33 469 260,06	28 181 119,54	60 752 102,58	63 434 769,44
- IV. Taxes and duties..............	226 714,89	228 191,46	203 326,30	403 016,30
- V. Salaries and wages............	17 509 445,73	17 998 437,01	17 110 725,07	16 994 965,56
- VI. Social security...............	3 052 613,04	2 937 253,33	2 792 672,85	2 825 395,85
- VII. Other.........................	671 279,55	897 397,93	847 145,84	1 081 641,82
- VIII.Costs of goods and materials sold..................................	96 105 808,26	101 010 332,72	69 810 458,23	85 114 001,09
-C. Profit on sale....................		1 931 819,03	9 333 960,10	6 581 984,26
-C. Loss on sale......................	10 509 705,47
-D. Other operating incomes...........	1 790 563,00	1 063 142,61	1 433 801,91	2 377 269,28
- I. Incomes from disposal non-financial assets..................	3 400,05	7 258,59	819,67	32 884,05
- III. Other operating incomes.......	1 787 162,95	1 055 884,02	1 432 982,24	2 344 385,23
-E. Other operating costs.............	2 746 579,78	3 633 401,52	7 130 200,00	4 185 099,92
- II. Goodwill revaluation..........	2 118 541,66	1 892 317,76	5 917 083,79	2 362 233,14
- III. Other operating costs.........	628 038,12	1 741 083,76	1 213 116,21	1 822 866,78
-F. Profit on operating activities....			3 637 562,01	4 774 153,62
-F. Loss on operating activities......	11 465 722,25	638 439,88
-G. Financial incomes.................	14 259 180,83	17 471,52	585 064,68	802 999,81
- I. Dividends received............	12 139 046,06
- - including dividends to group and associated compan.................	12 139 046,06
- II. Interest received.............	10 431,10	16 426,27	187 777,67	188 651,25
- - including related companies....			736,43	140 827,20
- IV. Financial assets revaluation..	617 730,59		397 275,84	210 685,30
- V. Other.........................	1 491 973,08	1 045,25	11,17	403 663,26
-H. Financial costs...................	12 663 416,09	8 656 953,63	3 926 372,08	3 792 343,05
- I. Interest......................	1 966 011,93	1 516 344,36	1 850 397,79	1 558 931,62
- - related companies..............	318 887,79	160 000,00	156 000,00
- II. Loss from financial assets sold..................................		98 908,48	9 919,94
- III. Financial assets revaluation..	10 233 163,70	5 135 387,99	460 740,84	869 917,37
- IV. Other.........................	464 240,46	1 906 312,80	1 605 313,51	1 363 494,06
-I. Profit on economic activity.......			296 254,61	1 784 810,38
-I. Loss on economic activity.........	9 869 957,51	9 277 921,99
-K. Gross profit......................			296 254,61	1 784 810,38
-K. Gross loss........................	9 869 957,51	9 277 921,99
-L. Corporation tax...................	-1 561 819,00	-910 963,00	37 328,00	118 432,00
-N. Net profit........................			258 926,61	1 666 378,38
-N. Net loss..........................	8 308 138,51	8 366 958,99

AUDITOR

Balance sheet as at 31.12.2011
BIURO BIEGŁYCH REWIDENTÓW "ELMA-POLAUDIT" Sp. z o.o., ul. Przybyszewskiego 250/9, 92-314 Łódź	No. 236

Balance sheet as at 31.12.2010
BIURO BIEGŁYCH REWIDENTÓW "ELMA-POLAUDIT" Sp. z o.o., ul. Przybyszewskiego 250/9, 92-314 Łódź	No. 236

Expert auditor Małgorzata Szymańska , personal ID no. (PESEL) 55073002785

No. 9648

Balance sheet as at 31.12.2009
BIURO BIEGŁYCH REWIDENTÓW "ELMA-POLAUDIT" Sp. z o.o., ul. Przybyszewskiego 250/9, 92-314 Łódź	No. 236

Expert auditor Małgorzata Szymańska , personal ID no. (PESEL) 55073002785

No. 9648



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	0,98	0,95	1,10	1,12
Quick ratio	0,57	0,54	0,56	0,69
Immediate ratio	0,02	0,06	0,05	0,06
Return on sale	-5,68	-5,24	0,16	0,91
Return on assets	-10,36	-9,17	0,27	1,60
Return on equity	-41,96	-29,77	0,71	4,59
Average trade debtors' days	75,43	63,89	63,21	79,65
Average stock turnover's days	56,66	53,77	64,78	52,28
average payables payment period	139,04	132,93	122,22	125,97
Total indebtedness ratio	75,32	69,19	62,02	65,22

While rating the company, it is advisable to take into consideration information about the branch , the company is acting in
(C.14.13.Z - NACE 2007), as at :	30.09.2013	31.12.2012	31.12.2011	31.12.2010	31.12.2009
Current ratio............................	2,26	1,93	2,14	1,86	1,60
Quick ratio..............................	1,34	1,17	1,26	1,02	0,92
Immediate ratio..........................	0,33	0,31	0,46	0,34	0,22
Return on sale...........................	5,43	4,18	3,71	2,47	1,21
Return on assets.........................	6,07	6,35	5,53	3,49	1,63
Return on equity.........................	10,25	11,10	9,25	6,16	3,10
Average trade debtors' days..............	70,67	64,02	56,83	56,04	70,01
Average stock turnover's days............	65,33	56,11	61,49	68,63	68,92
average payables payment period..........	72,53	75,95	71,93	83,65	103,26
Total indebtedness ratio.................	40,78	42,82	40,15	43,42	47,49
Percent share in the examinated group of companies with net profit.............	70,50	71,90	70,00	60,80	57,30
Sales/revenue per employee in th. PLN....	63,59	83,83	85,12	89,32	74,92
Average sales/revenue per company in th. PLN..................................	8 872,62	11 125,11	11 363,49	12 073,58	10 910,89



(G.47.71.Z - NACE 2007), as at :	30.09.2013	31.12.2012	31.12.2011	31.12.2010	31.12.2009
Current ratio............................	1,36	1,34	1,28	1,55	1,37
Quick ratio..............................	0,57	0,59	0,50	0,70	0,64
Immediate ratio..........................	0,17	0,25	0,21	0,31	0,28
Return on sale...........................	1,20	1,42	1,80	3,41	1,71
Return on assets.........................	1,50	2,47	2,65	5,37	2,48
Return on equity.........................	3,56	5,55	6,89	12,23	5,88
Average trade debtors' days..............	34,61	29,07	28,50	24,98	32,00
Average stock turnover's days............	72,04	63,18	76,38	65,94	65,65
average payables payment period..........	93,56	88,76	102,21	80,86	93,15
Total indebtedness ratio.................	57,95	55,46	61,51	56,07	57,72
Percent share in the examinated group of companies with net profit.............	40,90	51,00	45,60	66,30	62,00
Sales/revenue per employee in th. PLN....	355,23	458,75	408,51	411,93	282,41
Average sales/revenue per company in th. PLN..................................	101 671,58	120 941,45	111 671,89	110 128,77	101 333,53
According to the Central Statistical Office


Source of financial data	Monitor Polski B	Monitor Polski B	Monitor Polski B
	annual	annual	annual
Consolidated balance sheet as at	31.12.2010 (PLN)	31.12.2009 (PLN)	31.12.2008 (PLN)
-A. Fixed assets......................	21 433 448,67	26 076 798,77	23 147 529,03
- Intangible assets..................	1 135 719,89	1 029 160,69	1 075 508,02
- 3. Other intangible assets.......	1 135 719,89	1 029 160,69	1 075 508,02
- III. Tangible assets...............	16 161 709,69	23 086 649,16	20 083 991,98
- 1. Fixed assets..................	15 997 806,65	21 406 244,15	18 105 678,75
- a) land (including perpetual usufruct right).......................	103 600,00	103 600,00	103 600,00
- b) buildings...................	8 864 210,21	11 162 045,15	10 634 254,51
- c) technical appliances and machniery.............................	1 721 133,28	2 074 329,81	2 167 372,15
- d) fleet of motor vehicles.....	182 604,01	222 140,02	90 022,40
- e) other fixed assets..........	5 126 259,15	7 844 129,17	5 110 429,69
- 2. Construction in progress......	163 903,04	1 680 405,01	1 886 813,23
- 3. Prepayments on construction in progress...........................			91 500,00
- V. Long term investments...........	1 621 064,21	171 337,15	181 756,30
- 1. Real estate...................	1 446 123,32
- 3. Long term financial assets....	174 940,89	171 337,15	181 756,30
- c) in other companies..........	174 940,89	171 337,15	181 756,30
- - shares or stocks...........	790,00	777,00	783,00
- - other securities...........	174 150,89	170 560,15	180 973,30
-VI. Long term prepayments............	2 514 954,88	1 789 651,77	1 806 272,73
- 1. Defferred tax assets............	2 506 962,64	1 699 424,54	1 668 925,08
- 2. Other prepayments...............	7 992,24	90 227,23	137 347,65
-B. Current assets....................	61 633 491,89	68 542 310,36	69 609 268,15
- I. Stocks..........................	38 547 787,23	36 907 216,07	38 024 778,49
- 1. Materials.....................	1 793 592,56	515 082,21	1 200 379,59
- 4. Wares.........................	35 934 771,76	35 851 360,38	35 376 353,51
- 5. Prepayments for supplies......	819 422,91	540 773,48	1 448 045,39
- II. Short term receivables.........	16 026 054,51	19 681 780,17	23 895 425,37
- 2. Receivables from other units..	16 026 054,51	19 681 780,17	23 895 425,37
- a) due to deliveries with payment period........................	6 761 418,27	10 303 954,98	10 203 890,26
- - to 12 months...............	6 761 418,27	10 303 954,98	10 203 890,26
- b) due to taxes, donations, insurances, duties, etc...............	1 370 017,84	1 542 731,67	3 299 478,21
- c) other.......................	7 894 618,40	7 835 093,52	10 392 056,90
-III. Short term investments..........	6 160 894,85	8 371 128,32	6 365 845,94
- 1. Short term financial assets.....	6 160 894,85	8 371 128,32	6 365 845,94
- d) cash and other liquid means...	6 160 894,85	8 371 128,32	6 365 845,94
- - cash in hand and on bank account...............................	5 501 512,04	7 085 329,28	4 278 191,43
- - cash in hand *...............		1 285 799,04	2 087 654,51
- - other liquid means...........	659 382,81
-IV. Short term prepayments...........	898 755,30	3 582 185,80	1 323 218,35
-Total assets.........................	83 066 940,56	94 619 109,13	92 756 797,18
-A. Shareholders' Equity..............	19 666 165,67	21 626 210,62	33 131 345,22
- I. Initial Capital.................	1 300 000,00	1 300 000,00	1 300 000,00
- IV. Statutory reserve capital......	34 699 662,12	42 861 139,18	31 589 863,99
- VI. Other reserve capital..........	4 552,80	4 835,40	-1 009 066,21
- VII. Exchange difference from subsidiairies counting................	509 522,17	1 445 882,60	5 029,50
- VIII. Profit (loss) from previous years.................................	-17 433 690,56	-11 487 668,07	-6 110 101,64
- IX. Net profit (loss)..............	586 119,14	-12 497 978,49	7 355 619,58
-B. Minority capital..................	3 524,50	3 524,50	2 524,50
-D. Liabilities and reserves for liabilities...........................	63 397 250,39	72 989 374,01	59 622 927,46
- I. Reserves for liabilities........	234 040,00	499 850,00	1 071 320,78
- 1. Deffered tax reserve..........	234 040,00	499 850,00	1 071 320,78
-II. Long term liabilities............	503 156,53	2 125 213,16	1 924 780,00
- 2. due to other units..............	503 156,53	2 125 213,16	1 924 780,00
- a) credits and loans.............	43 750,00	118 750,00
- c) other financial liabilities...	459 406,53	2 006 463,16	1 924 780,00
-III. Short term liabilities..........	61 417 678,25	69 397 450,58	55 693 638,15
- 2. Due to other companies..........	61 031 777,41	68 997 814,91	55 252 691,99
- a) credits and loans.............	29 080 491,45	35 970 053,66	32 387 113,84
- c) other financial assets........	7 068 931,83	5 417 089,97	1 628 067,83
- d) due to delivered goods with payment period........................	20 189 819,80	23 520 015,85	16 162 042,08
- - to 12 months.................	20 189 819,80	23 520 015,85	16 162 042,08
- g) due to taxes, donations, insurances, duties, etc...............	2 661 717,16	2 018 918,99	2 785 554,50
- h) due to salaries...............	1 938 578,67	1 918 042,23	1 856 549,05
- i) other.........................	92 238,50	153 694,21	433 364,69
- 3. Special funds...................	385 900,84	399 635,67	440 946,16
-IV. Accurals and deferred income.....	1 242 375,61	966 860,27	933 188,53
- 2. Other...........................	1 242 375,61	966 860,27	933 188,53
- - short term.....................	1 242 375,61	966 860,27	933 188,53
-Total liabilities....................	83 066 940,56	94 619 109,13	92 756 797,18

Source of financial data	Monitor Polski B	Monitor Polski B	Monitor Polski B
	annual	annual	annual
CONSOLIDATED P/L Account	01.01.2010- 31.12.2010 (PLN)	01.01.2009- 31.12.2009 (PLN)	01.01.2008- 31.12.2008 (PLN)
-A. Income from sales and similar.....	218 032 168,11	229 331 356,64	200 832 746,20
- I. Sales of products...............	39 210 281,24	41 905 493,23	29 107 447,85
- II. Sale of goods and materials....	179 069 353,43	187 436 126,67	171 786 722,21
- III.Change in stocks (+/-).........	-247 466,56	-10 263,26	-61 423,86
-B. Operational costs.................	213 214 006,65	235 874 801,80	187 973 441,58
- 1. Depreciation....................	5 714 347,13	5 339 944,33	3 547 053,58
- II. Materials and energy...........	4 160 558,05	4 625 748,86	4 185 680,32
- III. Third party services..........	91 612 741,30	98 696 326,26	78 566 572,75
- IV. Taxes and duties...............	231 733,51	419 869,84	543 829,52
- V. Salaries and wages..............	27 357 745,34	28 990 497,04	24 862 848,14
- VI. Social securities and similar..	5 591 458,18	6 087 920,66	5 324 051,89
- VII. Other.........................	2 888 611,70	2 878 784,48	2 162 204,02
- VIII. Costs of goods and materials sold........................	75 656 811,44	88 835 710,33	68 781 201,36
-C.Profit on sale (A-B)...............	4 818 161,46		12 859 304,62
-C. Loss on sale (A-B)................		6 543 445,16
-D. Other ordinary income.............	2 640 075,52	2 308 499,69	2 288 141,60
- I. Profit on sale of non-financial fixed assets............	819,67	32 884,05	15 575,39
- III. Other ordinary income.........	2 639 255,85	2 275 615,64	2 272 566,21
-E. Other ordinary costs..............	8 231 663,92	4 384 797,40	4 152 036,50
- I. Loss on sale of non financial fixed assets..........................	267 113,65	196 351,38
- II. Goodwill revaluation...........	4 058 242,35	1 325 548,75	1 350 630,37
- III. Other operating costs.........	3 906 307,92	2 862 897,27	2 801 406,13
-F. Profit on ordinary activities (C+D+E)...............................			10 995 409,72
-F. Loss on ordinary activities (C+D+E)...............................	773 426,94	8 619 742,87
-G. Financial income..................	406 674,74	499 030,50	1 643 173,17
- II. Interests received:............	188 190,92	75 761,80	28 675,85
- IV. Investments revaluation........	218 234,54
- V. Other...........................	249,28	423 268,70	1 614 497,32
-H. Financial costs...................	5 358 652,49	4 002 733,99	4 998 093,36
- I. Interests.......................	2 057 375,62	1 731 902,98	2 172 475,25
- III. Revaluation of investments....	1 769 450,54
- IV. Other..........................	1 531 826,33	2 270 831,01	2 825 618,11
-I. Profit on sale of shares..........	5 446 350,13
-J. Profit on economic activity (F+G-H+/-I)...........................			7 640 489,53
-J. Loss on economic activity (F+G-H+/-I)...........................	279 054,56	12 123 446,36
-L. Written off goodwill..............			90 404,89
- I. Written off goodwill - subsidiaries..........................			90 404,89
-N. Gross profit (J+/-K-L+M)..........			7 550 084,64
-N. Gross loss (J+/-K-L+M)............	279 054,56	12 123 446,36
-O. Income tax........................	-865 173,70	374 532,13	229 796,48
-R. Minority profits..................			35 331,42
-S. Net loss (N-O-P+/-Q+/-R)).........	586 119,14		7 355 619,58
-S. Net loss (N-O-P+/-Q+/-R)..........		12 497 978,49

companies consolidated in financial statement as at

31.12.2009 - OOO KAN UA, Siatoshinskiy r-n, b-r Kolcowa 12, 03194 Kiev, Ukraine
           - FUNDUSZ ROZWOJU SPÓŁKA Z O.O., ul. Piękna 20, 00-549 Warszawa
           - UAB KAN LT, Lithuania
           - SC KAN FASHION RETAIL srl, Romania
           - "FUNDUSZ ROZWOJU sp. z o.o." SPÓŁKA KOMANDYTOWO-AKCYJNA, ul. Piękna 20, 00-549 Warszawa
           - KAN s.r.o., Radlicka 2237, 15000 Praha, Czech Republic
           - KAN DE GmbH, Rainhardstr. 25, 10117 Berlin, Germany
           - KANHUN Divataru Kereskedelmi Kft., Deak Ferenc u. 5, 1052 Budapest, Hungary

31.12.2008 - OOO KAN UA, Siatoshinskiy r-n, b-r Kolcowa 12, 03194 Kiev, Ukraine
           - FUNDUSZ ROZWOJU SPÓŁKA Z O.O., ul. Piękna 20, 00-549 Warszawa
           - OOO KAN RU, Wolokolomaskij projezd 4, 125424 Moskwa, Russian Federation
           - "FUNDUSZ ROZWOJU sp. z o.o." SPÓŁKA KOMANDYTOWO-AKCYJNA, ul. Piękna 20, 00-549 Warszawa
           - KAN s.r.o., Radlicka 2237, 15000 Praha, Czech Republic
           - KAN DE GmbH, Rainhardstr. 25, 10117 Berlin, Germany
           - KANHUN Divataru Kereskedelmi Kft., Deak Ferenc u. 5, 1052 Budapest, Hungary

AUDITOR

Consolidated balance sheet as at 31.12.2010
BIURO BIEGŁYCH REWIDENTÓW "ELMA-POLAUDIT" Sp. z o.o., ul. Przybyszewskiego 250/9, 92-314 Łódź	No. 236

Expert auditor Małgorzata Szymańska , personal ID no. (PESEL) 55073002785

No. 9648

Consolidated balance sheet as at 31.12.2008
BIURO BIEGŁYCH REWIDENTÓW "ELMA-POLAUDIT" Sp. z o.o., ul. Przybyszewskiego 250/9, 92-314 Łódź	No. 236

Expert auditor Krzysztof Burnos

No. 9648/7693

Locations:

seat:
ul. Wiączyńska 8A, 92-760 Łódź
Phone:                   42 6777977
Fax:                     42 6777999
E-mail:                  kan@kan.pl
                         robert.dziuda@kan.pl
Website:                 www.kan.pl
                         www.tatuum.com

branch:
ul. Bracka 22, 00-028 Warszawa

Real Estate	ul. Brzezińska 251, 92-776 Łódź plot of area 898 sq.m. (Land and Mortgage Register LD1M/00077453/4)
	Book value of buildings as at 31.12.2012	PLN	4 902 401,23
	Book value of lands as at 31.12.2012	PLN	103 600,00
	Verification of information on real estate ownership position through the Real Estate Register is not covered by the standard report.


Shares in other companies	FUNDUSZ ROZWOJU SPÓŁKA Z O.O. NIP 5252189732, ul. Piękna 20, 00-549 Warszawa PLN 1 870 000,00 (93,50%) KAN TRADEMARK sp. z o.o. NIP 5272644033, ul. Wiączyńska 8A, 92-760 Łódź PLN 70 024 000,00 (100,00%)
	Shares in other companies: - OOO KAN UA, Siatoshinskiy r-n, b-r Kolcowa 12, 03194 Kiev, Ukraine (100%) - Fundusz Rozwoju Sp. z o.o., ul. Piękna 20, 00-549 Warszawa (93,5%) - OOO KAN RU, Wolokolomaskij projezd 4, 125424, Russia, (100%) - KAN s.r.o., Radlicka 2237, 15000 Praha, Czech Republic (100%) - KANHUN Divataru Kereskedelmi Kft., Deak Ferenc u. 5, 1052 Budapest, Hungary (99,5%) - KAN DE GmbH, Rainhardstr. 25, 10117 Berlin, Germany (100%) - UAB KAN LT, Lithuania (100%) - SC KAN FASHION RETAIL srl, Romania (99%) Data concerning shares in other companies are valid as at: 28.01.2014.

Connections:	Józef Kapitańczyk , personal ID no. (PESEL) 47100803113 - KAN TRADEMARK sp. z o.o. NIP 5272644033, ul. Wiączyńska 8A, 92-760 Łódź · president - FUNDUSZ ROZWOJU SPÓŁKA Z O.O. NIP 5252189732, ul. Piękna 20, 00-549 Warszawa · president - Kan Production Sp. z o.o. NIP PL 7280008608, ul. Wiączyńska 8A, 92-760 Łódź · shareholder: PLN 177 795,36 (90,06%) · president Adam Kapitańczyk , personal ID no. (PESEL) 77011200631 - KAN TRADEMARK sp. z o.o. NIP 5272644033, ul. Wiączyńska 8A, 92-760 Łódź · proxy Aleksandra Teresa Płocek , personal ID no. (PESEL) 58100305086 - Kan Production Sp. z o.o. NIP PL 7280008608, ul. Wiączyńska 8A, 92-760 Łódź · shareholder: PLN 19 621,56 (9,94%) · vice president
	Data concerning connections are valid as at: 28.01.2014.


General information	The company is owner of the brands Tatuum and Coyoco. According to obtained data, there are negotiations in progress between Monnari and the subject company concerning the possible takeover of the subject by Monnari. At present there is no further information concerning the takeover.
	The subject has not decided to cooperate in elaboration of the report.

Banks	RAIFFEISEN BANK POLSKA SA O. w Łodzi ul.Żeligowskiego 32/34 (17501093) ul. Żeligowskiego 32/34, 90-643 Łódź Acc.no. 41175010930000000003556069


Payment Manner	Analysis of the balance sheet indicates limited liquidity.
Credit capability	Business connections should not be refused, credits require security
	Due to: - Losses - Liabilities and reserves for liabilities exceeding current assets - long period of liabilities repayment - lack of insight into full and up-to-date financial situation of the company

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.12
UK Pound	1	Rs.103.93
Euro	1	Rs.85.17

INFORMATION DETAILS

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 statements

AUDITOR

Unit