MIRA INFORM REPORT

Report Date :

23.01.2014

IDENTIFICATION DETAILS

Name :	M&R PRINTING EQUIPMENT POLAND SP. Z O.O.

Registered Office :	Ul. Wolicka 11 32-830 Wojnicz

Country :	Poland

Financials (as on) :	31.03.2013

Date of Incorporation :	12.07.2004

Legal Form :	Limited Liability Company

Line of Business :	Manufacture of printing machinery and equipment

No. of Employees :	137

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, 2013

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Poland

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

POLAND - ECONOMIC OVERVIEW

Poland has pursued a policy of economic liberalization since 1990 and Poland's economy was the only one in the 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 and address

"M&R PRINTING EQUIPMENT POLAND" SP. Z O.O.

ul. Wolicka 11
32-830 Wojnicz

Phone: 14 6787400 -403

Fax: 14 6926480

E-mail: info@mrprint.com.pl

Website: www.mrprint.com.pl

Company summary

Legal form	Limited liability company
Stat.no.	852744212
Tax ID	PL 8733011587
Establishment	12.07.2004

Registration:

10.08.2004, District Court Kraków, XII Department, KRS 214605

Shareholders	Elizabeth Hoffman , Drive Lake Forest 1200, 1682 Illinois, United States	PLN	5 500 000,00 50,00%

	Richard Hoffman , Drive Lake Forest, 1682 Illinois, United States	PLN	5 500 000,00 50,00%

	list entered to NCR /KRS/ on 29.06.2007

Initial Capital		PLN 11 000 000,00
	Initial capital divided into 11000 shares of PLN 1 000,00 each
	An in-kind contribution has been made and valued at	PLN 10 800 000,00

Management	Janusz Tadeusz Cieśla , personal ID no. (PESEL) 58070501479, ul. Henryka Sienkiewicza 106, 33-100 Tarnów - president

	Representation: President or proxy individually.

Main activity	Manufacture of printing machinery and equipment

	Export 2013 (93.00%)
	Branches NACE 2007:
	Manufacture of special purpose machines n.e.c.
	Manufacture of office machines excluding computers and peripherals

Employment

2009:             127      employees
2010:             125      employees
2011:             127      employees
2012:             138      employees
May 2013:    137       employees

Turnover	2009	PLN	11 973 404,97
	2010	PLN	19 923 486,24
	2011	PLN	19 933 995,55
	2012	PLN	37 890 141,68
	01.01.2013 - 31.03.2013	PLN	8 243 000,00

Financial statements

Source of financial data	Subject	Court	Monitor Polski B	Monitor Polski B
	F01	annual	annual	annual
Personal balance sheet as at	31.03.2013 (PLN)	31.12.2012 (PLN)	31.12.2011 (PLN)	31.12.2010 (PLN)
-A. Fixed assets......................	2 887 000,00	3 022 780,25	2 991 795,39	3 126 470,35
- I. Intangible assets.............		14 466,08	15 185,92	40 787,27
- 2. Goodwill......................			15 185,92
- 3. Other intangible assets.......		14 466,08		40 787,27
- II. Tangible assets...............		2 670 026,02	2 825 209,62	2 993 012,08
- 1. Fixed goods...................		2 670 026,02	2 798 581,74	2 993 012,08
- b) buildings, premises, facilities............................		276 891,97	300 271,11	323 650,25
- c) machinery and equipment.....		2 098 531,69	2 185 075,93	2 376 576,51
- d) fleet of motor vehicles.....		88 965,60	115 970,41	145 864,02
- e) other fixed goods...........		205 636,76	197 264,29	146 921,30
- 2. Fixed goods under construction..........................			26 627,88
-V. Long-term prepayments and accrued income........................		338 288,15	151 399,85	92 671,00
- 1. Deferred tax assets.............		274 156,00	141 255,00	92 671,00
- 2. Other prepayments...............		64 132,15	10 144,85
-B. Current assets....................	17 656 000,00	17 064 774,14	15 051 293,87	13 178 301,51
- I. Stock.........................	8 887 000,00	9 571 112,63	9 333 324,77	8 147 398,28
- 1. Raw materials.................	6 791 000,00	6 200 476,62	5 175 713,30	4 678 477,19
- 2. Semi-finished products and work-in-progress......................	424 000,00	180 037,45	90 974,29	44 673,82
- 3. Finished products.............	1 661 000,00	3 156 592,67	4 006 595,56	3 396 058,89
- 4. Goods for re-sale.............	11 000,00	11 802,03	56 789,59	27 002,74
- 5. Advance payments .............		22 203,86	3 252,03	1 185,64
- II. Short-term receivables.........	4 578 000,00	4 696 594,57	2 241 536,85	2 974 359,06
- 2. Other receivables ............	4 578 000,00	4 696 594,57	2 241 536,85	2 974 359,06
- a) Due to deliveries and services with payment period:.........	3 916 000,00	3 320 365,08	1 720 852,35	2 526 878,11
- - up to 12 months............		3 320 365,08	1 720 852,35	2 526 878,11
- b) Due to taxes, subsidies, insurances, duties, etc...............	641 000,00	1 354 177,24	496 462,60	439 097,81
- c) Other.......................		22 052,25	24 221,90	8 383,14
- III. Short term investments........	3 894 000,00	2 675 701,41	3 335 532,65	1 992 270,72
- 1. Short-term financial assets...	3 894 000,00	2 675 701,41	3 335 532,65	1 992 270,72
- c) cash and other liquid assets................................	3 894 000,00	2 675 701,41	3 335 532,65	1 992 270,72
- - cash in hand and on bank account...............................		2 675 701,41	3 335 532,65	1 992 270,72
-IV. Short-term prepayments and accrued income........................	297 000,00	121 365,53	140 899,60	64 273,45
-D. Total assets......................	20 543 000,00	20 087 554,39	18 043 089,26	16 304 771,86
-A. Shareholders' equity..............	16 053 000,00	15 077 638,43	13 489 057,79	12 833 084,59
- I. Basic share capital...........		11 000 000,00	11 000 000,00	11 000 000,00
- VI. Other reserve capital.........		2 825 000,00	5 225 000,00	5 225 000,00
- VII. Profit (loss) carried forward.		-2 735 942,21	-3 391 915,41	-4 428 164,76
- VIII. Net profit (loss)............	832 000,00	3 988 580,64	655 973,20	1 036 249,35
-B. Liabilities and reserves for liabilities...........................	4 490 000,00	5 009 915,96	4 554 031,47	3 471 687,27
- I. Reserves for liabilities......	779 000,00	694 267,76	448 892,64	372 442,27
- 1. Deferred income tax reserves..		136 631,00	116 410,00	82 504,00
- 2. Reserves for pensions and similar social payments...............		63 880,92	43 510,25	36 239,94
- - long-term....................		60 497,64	40 582,64	33 576,61
- - short-term...................		3 383,28	2 927,61	2 663,33
- 3. Other reserves................		493 755,84	288 972,39	253 698,33
- - long-term....................		301 995,86	120 669,61	141 776,05
- - short-term...................		191 759,98	168 302,78	111 922,28
-II. Long-term liabilities...........			520 849,88	655 993,92
- 2. Other liabilities...............			520 849,88	655 993,92
- c) Other financial liabilities...			520 849,88	655 993,92
-III. Short-term liabilities..........	3 697 000,00	4 299 936,22	3 563 704,61	2 417 794,38
- 2. Other liabilities...............	3 697 000,00	4 259 445,61	3 536 109,95	2 402 714,31
- c) Other financial liabilities...		473 848,26	282 176,14	217 491,08
- d)Due to deliveries and services with payment period:.........	2 165 000,00	2 325 839,74	1 488 873,72	1 265 551,88
- - up to 12 months..............		2 325 839,74	1 488 873,72	1 265 551,88
- e) Advances received.............	656 000,00	719 942,07	1 076 588,94	346 923,14
- g) Due to taxes, subsidies, insurances, duties, etc...............	50 000,00	450 257,75	338 832,27	301 188,65
- h) Due to salaries...............	294 000,00	282 507,11	264 522,59	256 516,44
- i) Other.........................		7 050,68	85 116,29	15 043,12
- 3. Special funds...................		40 490,61	27 594,66	15 080,07
-IV. Accruals and deferred income....	14 000,00	15 711,98	20 584,34	25 456,70
- 2. Other accruals..................		15 711,98	20 584,34	25 456,70
- - long-term......................		10 839,62	15 711,98	20 584,34
- - short-term.....................		4 872,36	4 872,36	4 872,36
-D. Total liabilities.................	20 543 000,00	20 087 554,39	18 043 089,26	16 304 771,86

Source of financial data	Subject	Court	Monitor Polski B	Monitor Polski B
	F01	annual	annual	annual
individual PROFIT AND LOSS ACCOUNT	- 01.01.2013- 31.03.2013 (PLN)	01.01.2012- 31.12.2012 (PLN)	01.01.2011- 31.12.2011 (PLN)	01.01.2010- 31.12.2010 (PLN)
-A. Income from sales and similar.....	8 243 000,00	37 890 141,68	19 933 995,55	19 923 486,24
- I. Net income on sales...........	8 261 000,00	32 779 033,67	15 589 239,03	15 103 055,41
- II. Change in value of stock ( +, -).................................	-1 226 000,00	-951 640,62	714 100,52	807 389,81
- III. Sales of goods for own use....	780 000,00	3 980 211,52	2 194 811,31	2 444 614,73
- IV. Income from sales of goods and materials.........................	428 000,00	2 082 537,11	1 435 844,69	1 568 426,29
-B. Operational costs.................	7 352 000,00	32 549 552,85	19 211 478,67	18 678 248,97
- I. Depreciation..................	129 000,00	445 014,67	422 337,03	450 585,59
- II. Materials and energy..........	3 359 000,00	16 196 726,81	9 248 159,81	9 835 144,40
- III. Third party services..........	1 841 000,00	8 157 345,62	2 931 572,15	2 145 294,57
- IV. Taxes and duties..............	34 000,00	249 326,04	152 404,55	142 125,42
- V. Salaries and wages............	1 208 000,00	4 767 134,01	4 269 018,55	3 977 817,28
- VI. Social security...............	413 000,00	1 151 399,72	912 337,39	761 078,11
- VII. Other.........................	78 000,00	334 087,86	267 818,81	272 338,18
- VIII.Costs of goods and materials sold..................................	290 000,00	1 248 518,12	1 007 830,38	1 093 865,42
-C. Profit on sale....................	891 000,00	5 340 588,83	722 516,88	1 245 237,27
-D. Other operating incomes...........	2 000,00	197 009,45	35 837,10	144 832,20
- III. Other operating incomes.......	2 000,00	197 009,45	35 837,10	144 832,20
-E. Other operating costs.............	3 000,00	533 984,92	204 030,21	116 878,99
- I. Loss on disposal of non-finacial assets...................			898,07	3 733,67
- II. Goodwill revaluation..........		463 578,27	198 852,58	60 682,79
- III. Other operating costs.........	3 000,00	70 406,65	4 279,56	52 462,53
-F. Profit on operating activities....	890 000,00	5 003 613,36	554 323,77	1 273 190,48
-G. Financial incomes.................	128 000,00	53 630,75	114 043,56	20 505,14
- II. Interest received.............	2 000,00	53 630,75	38 164,97	20 505,14
- - including related companies....	2 000,00
- V. Other.........................	126 000,00		75 878,59
-H. Financial costs...................	6 000,00	251 338,47	27 072,13	247 693,27
- I. Interest......................	6 000,00	29 007,12	27 072,13	22 805,98
- IV. Other.........................		222 331,35		224 887,29
-I. Profit on economic activity.......	1 012 000,00	4 805 905,64	641 295,20	1 046 002,35
-K. Gross profit......................	1 012 000,00	4 805 905,64	641 295,20	1 046 002,35
-L. Corporation tax...................	180 000,00	817 325,00	-14 678,00	9 753,00
-N. Net profit........................	832 000,00	3 988 580,64	655 973,20	1 036 249,35

AUDITOR

Balance sheet as at 31.12.2012
BIURO BIEGŁYCH REWIDENTÓW Sp. z o.o., ul. Piłsudskiego 5, 33-100 Tarnów	No. 460

Expert auditor Daniela Gębiś

No. 1177

Balance sheet as at 31.12.2011
BIURO BIEGŁYCH REWIDENTÓW Sp. z o.o., ul. Piłsudskiego 5, 33-100 Tarnów	No. 460

Expert auditor Daniela Gębiś

No. 1177

Balance sheet as at 31.12.2010
BIURO BIEGŁYCH REWIDENTÓW Sp. z o.o., ul. Piłsudskiego 5, 33-100 Tarnów	No. 460

Expert auditor Daniela Gębiś

No. 1177

Ratios	01.01.2013- 31.03.2013	01.01.2012- 31.12.2012	01.01.2011- 31.12.2011	01.01.2010- 31.12.2010
Current ratio	4,78	3,97	4,22	5,45
Quick ratio	2,29	1,71	1,56	2,05
Immediate ratio	1,05	0,62	0,94	0,82
Return on sale	9,58	11,44	3,85	6,22
Return on assets	4,05	19,86	3,64	6,36
Return on equity	5,18	26,45	4,86	8,07
Average trade debtors' days	47,42	49,31	48,06	65,12
Average stock turnover's days	92,05	100,48	200,10	178,38
average payables payment period	38,29	45,14	76,40	52,93
Total indebtedness ratio	21,86	24,94	25,24	21,29

While rating the company, it is advisable to take into consideration information about the branch , the company is acting in
(C.28.99.Z - NACE 2007), as at :	30.09.2013	31.12.2012	31.12.2011	31.12.2010	31.12.2009
Current ratio............................	1,37	1,31	1,16	1,35	1,36
Quick ratio..............................	0,77	0,76	0,79	0,88	0,90
Immediate ratio..........................	0,24	0,18	0,16	0,19	0,26
Return on sale...........................	4,37	2,79	3,61	1,19	0,69
Return on assets.........................	3,10	2,90	3,75	1,50	0,73
Return on equity.........................	6,44	6,42	8,94	3,50	1,55
Average trade debtors' days..............	68,27	70,37	83,91	71,74	77,35
Average stock turnover's days............	81,49	67,67	48,31	49,87	55,78
average payables payment period..........	142,94	132,00	144,76	109,03	123,99
Total indebtedness ratio.................	51,90	54,89	58,01	57,15	52,56
Percent share in the examinated group of companies with net profit.............	63,60	78,70	72,70	70,00	69,10
Sales/revenue per employee in th. PLN....	179,29	233,97	221,81	185,76	169,28
Average sales/revenue per company in th. PLN..................................	21 200,84	27 802,26	26 007,30	22 677,98	20 249,07

Locations:

seat:
ul. Wolicka 11, 32-830 Wojnicz
Phone:                   14 6787400 -403
Fax:                     14 6926480
E-mail:                  info@mrprint.com.pl
Website:                 www.mrprint.com.pl

Real Estate	Book value of buildings as at 31.12.2012
	Verification of information on real estate ownership position through the Real Estate Register is not covered by the standard report.
PLN	276 891,97

Shares in other companies

As at 09.12.2013 there are no shares in other companies.

Connections:

Elizabeth Hoffman
- HOFF PRODUCTS SPÓŁKA Z O.O. NIP 9930277775, ul. Wolicka 11, 32-830 Wojnicz
· shareholder: PLN 297 000,00 (99,66%)
· president

Janusz Tadeusz Cieśla , personal ID no. (PESEL) 58070501479
- EKOSYSTEM sp. z o.o. NIP 8730005735, ul. Tuchowska 25A/7, 33-100 Tarnów
· shareholder: PLN 7 000,00 (14,00%)
- HOFF PRODUCTS SPÓŁKA Z O.O. NIP 9930277775, ul. Wolicka 11, 32-830 Wojnicz
· proxy
- KEVIS SPÓŁKA Z O.O. NIP 9930248911, ul. Podkarpacka 20, 33-160 Ryglice
· shareholder: PLN 15 000,00 (30,00%)

Richard Hoffman
Connections have not been determined due to no possibility of identification of the persons or subjects which appear in the company.

Data concerning connections are valid as at: 09.12.2013.

Certificates:	Erdarbeiten, Entwässerungsarbeiten, die Installation von externen Wasserversorgung und Kanalisation, Gas, bei der Arbeit, Straßen und Strom;


Banks	RAIFFEISEN BANK POLSKA SA O. w Tarnowie ul.Szkotnik 2B (17501338) ul. Szkotnik 2B, 33-100 Tarnów Acc.no. 56175013380000000008760373 Bank Ochrony Środowiska SA O. Operacyjny w Tarnowie (15401203) ul. Piłsudskiego 5, 33-100 Tarnów Acc.no. 85154012032053428944650001

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.92
UK Pound	1	Rs.101.98
Euro	1	Rs.83.92

INFORMATION DETAILS

Report Prepared by :

DPT

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

company name and address

Company summary

Financial statements

AUDITOR

Unit