MIRA INFORM REPORT

Report Date :

23.01.2014

IDENTIFICATION DETAILS

Name :	SPOKEY SP. Z O.O.
Formerly Known as:	IMPAG-POLSKA Sp. z o.o.
Registered Office :	ul. Woźniaka 5, 40-389 Katowice
Country :	Poland
Financials (as on) :	31.12.2012
Date of Incorporation :	11.03.1996
Com. Reg. No.:	KRS 142316
Legal Form :	Limited Liability Company
Line of Business :	Engaged in manufacturing and selling of sports equipment, toys & sports accessories
No. of Employees :	89

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	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	B1	B1

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

SPOKEY Sp. z o.o.

ul. Woźniaka 5
40-389 Katowice

Phone:    32 3172000

Fax:      32 3172001

E-mail:   biuro@spokey.pl

Website:  www.spokey.pl

Company summary

Legal form	Limited liability company
Stat.no.	471323630
Tax ID	PL 7311159686
Establishment	11.03.1996
Changes of names and addresses	11.03.1996 IMPAG-POLSKA Sp. z o.o.
	17.11.2006 SPOKEY Sp. z o.o.
Registration:	20.12.2002, District Court Katowice, VIII Department, KRS 142316 Data concerning previous registrations: 1996, District Court Łódź, RHB 5856

Shareholders	KPE INTERNATIONAL HOLDING LIMITED	PLN	2 999 700,00 99,99%
	Maria Kania , ul. Głowackiego 5A, 44-100 Gliwice	PLN	100,00 less than 0,01%
	Bogusław Kania , personal ID no. (PESEL) 68081103458, ul. Głowackiego 5A, 44-100 Gliwice	PLN	100,00 less than 0,01%
	KANLUX SA, ul. Objazdowa 1 -3, 41-922 Radzionków	PLN	100,00 less than 0,01%
	list entered to NCR /KRS/ on  29.07.2011
Initial Capital		PLN 3 000 000,00
	Initial capital divided into 30000 shares of PLN 100,00 each
	Changes of initial capital
	- since 09.06.2009  until 16.09.2009  the capital estimated	PLN 2 547 800,00
	- since 17.11.2006  until 09.06.2009  the capital estimated	PLN 1 547 800,00
	-  until 17.11.2006  the capital estimated	PLN 797 800,00
Management	Robert Piotr Foryś , personal ID no. (PESEL) 78020500570, Zembrzyce 416, 34-210 Zembrzyce  - president Sebastian Henryk Popławski , personal ID no. (PESEL) 79041609239  - vice president
	Proxies: Bolesław Franciszek Kania , personal ID no. (PESEL) 41072103374, ul. Jerzyków 9, 40-531 Katowice  - independent proxy Katarzyna Halina Gregorczyk , personal ID no. (PESEL) 75022004545, Bielsko-Biała Jan Wiktor Klus , personal ID no. (PESEL) 68061706574  - joint proxy Violetta Grażyna Deleżychowska , personal ID no. (PESEL) 70092513803
	Representation: since 09.06.2009  Two members of the board of directors jointly or member of the board of directors and proxy jointly
Main activity	Engaged in manufacturing and selling of sports equipment, toys & sports accessories
	Branches NACE 2007:
	Other wholesale		(G.46.90.Z)
	Manufacture of games and toys		(C.32.40.Z)

Employment

2007:              86        employees 2009:              100       employees 2010:              105       employees 2011:              91        employees 2012:              89        employees

Turnover	2008	PLN	32 049 998,69
	2009	PLN	40 257 521,68
	2010	PLN	40 691 809,17
	2011	PLN	38 268 126,16
	2012	PLN	39 635 698,02

Financial statements

Source of financial data	Court	Court	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......................	1 895 767,75	1 792 406,75	2 784 360,33	2 757 566,70
-  I.   Intangible assets.............	81 857,18	104 224,54	251 261,51	240 940,83
-    2. Goodwill......................			39 262,62	82 094,94
-    3. Other intangible assets.......	81 857,18	104 224,54	211 998,89	151 479,21
-    4. Prepayments for intangible assets................................				7 366,68
-  II.  Tangible assets...............	1 535 165,20	1 253 973,84	1 734 620,24	2 219 776,87
-    1. Fixed goods...................	1 529 838,37	1 248 647,01	1 733 535,00	2 169 776,87
-      a) land........................			87 363,15	133 419,60
-      b) buildings, premises, facilities............................	35 996,66	42 209,66	211 048,94	357 727,04
-      c) machinery and equipment.....	49 798,15	53 753,10	106 835,40	164 194,78
-      d) fleet of motor vehicles.....	1 369 939,36	1 044 177,72	1 202 596,84	1 365 986,83
-      e) other fixed goods...........	74 104,20	108 506,53	125 690,67	148 448,62
-    2. Fixed goods under construction..........................			1 085,24
-    3. Prepayments for fixed goods under construction....................	5 326,83	5 326,83		50 000,00
-  IV.  Long term investments.........	197 015,37	247 015,37	733 359,58	102 273,00
-    1. Real estate...................			131 790,39
-    3. Long term financial assets....	197 015,37	247 015,37	601 569,19	102 273,00
-      a) in affiliated companies.....	94 742,37	144 742,37	499 296,19
-        - participations or shares...	94 742,37	144 742,37	499 296,19
-      b) Other.......................	102 273,00	102 273,00	102 273,00	102 273,00
-        - participations or shares...	102 273,00	102 273,00	102 273,00	102 273,00
-V. Long-term prepayments and accrued income........................	81 930,00	187 193,00	65 119,00	194 576,00
-  1. Deferred tax assets.............	81 930,00	187 193,00	65 119,00	194 576,00
-B. Current assets....................	14 871 588,76	14 687 355,76	13 732 473,27	14 921 560,33
-  I.   Stock.........................	6 937 461,05	7 322 627,22	6 678 408,13	6 579 016,19
-    3. Finished products.............		5 619 041,96
-    4. Goods for re-sale.............	5 489 523,16	1 703 585,26	5 759 101,25	5 755 621,06
-    5. Advance payments .............	1 447 937,89		919 306,88	823 395,13
-  II. Short-term receivables.........	7 731 387,59	7 092 965,16	6 851 313,02	7 067 938,22
-    1. Receivables from affiliated companies.............................	261 698,03	38 596,23	176 338,23	35 686,47
-      a) Due to deliveries and services with payment period:.........	261 698,03	38 596,23	176 338,23	35 686,47
-        - up to 12 months............	261 698,03	38 596,23	176 338,23	35 686,47
-    2. Other receivables ............	7 469 689,56	7 054 368,93	6 674 974,79	7 032 251,75
-      a) Due to deliveries and services with payment period:.........	6 927 167,18	6 752 800,62	6 163 197,39	6 752 746,71
-        - up to 12 months............	6 927 167,18	6 752 800,62	6 163 197,39	6 752 746,71
-      b) Due to taxes, subsidies, insurances, duties, etc...............	353 478,04	126 782,71	324 096,18	207 913,46
-      c) Other.......................	189 044,34	174 785,60	187 681,22	71 591,58
-  III. Short term investments........	38 270,81	89 478,17	32 260,60	1 045 031,62
-    1. Short-term financial assets...	38 270,81	89 478,17	32 260,60	1 045 031,62
-      a) in affiliated companies.....				404 553,82
-        - participations of shares...				404 553,82
-      c) cash and other liquid assets................................	38 270,81	89 478,17	32 260,60	640 477,80
-        - cash in hand and on bank account...............................	38 270,81	89 478,17	32 260,60	640 477,80
-IV. Short-term prepayments and accrued income........................	164 469,31	182 285,21	170 491,52	229 574,30
-D. Total assets......................	16 767 356,51	16 479 762,51	16 516 833,60	17 679 127,03
-A. Shareholders' equity..............	4 551 305,03	5 141 637,78	4 374 159,14	4 545 013,35
-  I.   Basic share capital...........	3 000 000,00	3 000 000,00	3 000 000,00	3 000 000,00
-  IV.  Statutory reserve capital.....	791 669,93	791 669,93	791 669,93	791 669,93
-  VIII. Net profit (loss)............	759 635,10	1 349 967,85	582 489,21	1 546 167,94
-  IX.  Deductions from profit during the accounting year (-.........				-792 824,52
-B. Liabilities and reserves for liabilities...........................	12 216 051,48	11 338 124,73	12 142 674,46	13 134 113,68
-  I.   Reserves for liabilities......	40 921,18	65 496,99	26 844,00	14 904,00
-    1. Deferred income tax reserves..	4 467,00	12 931,00	13 343,00	14 904,00
-    2. Reserves for pensions and similar social payments...............	36 454,18	27 565,99	13 501,00
-      - long-term....................	35 803,17	27 396,89	13 501,00
-      - short-term...................	651,01	169,10
-    3. Other reserves................		25 000,00
-      - short-term...................		25 000,00
-II.  Long-term liabilities...........	8 928 513,68	7 554 173,24	8 517 516,74	9 798 743,80
-  1. Due affiliated companies........	8 000 000,00	7 000 000,00	7 000 000,00	8 000 000,00
-  2. Other liabilities...............	928 513,68	554 173,24	1 517 516,74	1 798 743,80
-    a) Loans.........................			1 035 000,00	1 215 000,00
-    c) Other financial liabilities...	928 513,68	554 173,24		583 743,80
-    d) Other.........................			482 516,74
-III. Short-term liabilities..........	3 220 944,30	3 713 753,91	3 591 661,36	3 308 490,64
-  1. Due to affiliated companies.....	20 506,50	104 878,86	984 683,36	455 850,53
-    a) Due to deliveries and services with payment period:.........	20 506,50	104 878,86	136 597,57	260 481,74
-      - up to 12 months..............	20 506,50	104 878,86	136 597,57	260 481,74
-    b) Other.........................			848 085,79	195 368,79
-  2. Other liabilities...............	3 200 437,80	3 608 875,05	2 606 978,00	2 852 640,11
-    a) Loans.........................	968 517,46	1 088 552,93	204 359,78	180 000,00
-    c) Other financial liabilities...	381 913,72	402 662,49	592 295,47	534 042,69
-    d)Due to deliveries and services with payment period:.........	649 014,18	580 472,74	549 123,62	835 309,49
-      - up to 12 months..............	649 014,18	580 472,74	549 123,62	835 309,49
-    g) Due to taxes, subsidies, insurances, duties, etc...............	835 931,73	1 207 112,96	865 278,77	948 870,14
-    h) Due to salaries...............	341 734,17	309 396,89	323 566,79	337 765,31
-    i) Other.........................	23 326,54	20 677,04	72 353,57	16 652,48
-IV.  Accruals and deferred income....	25 672,32	4 700,59	6 652,36	11 975,24
-  2. Other accruals..................	25 672,32	4 700,59	6 652,36	11 975,24
-    - short-term.....................	25 672,32	4 700,59	6 652,36	11 975,24
-D. Total liabilities.................	16 767 356,51	16 479 762,51	16 516 833,60	17 679 127,03
Source of financial data	Court	Court	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.....	39 635 698,02	38 268 126,16	40 691 809,17	40 257 521,68
-  - including related companies......	2 977 013,66	2 926 348,41	1 478 896,17	527 162,54
-  I.   Net income on sales...........	356 134,81	184 946,88	280 351,59	390 407,81
-  IV.  Income from sales of goods and materials.........................	39 279 563,21	38 083 179,28	40 411 457,58	39 867 113,87
-B. Operational costs.................	37 633 096,02	35 325 436,08	38 977 526,18	37 767 697,53
-  I.   Depreciation..................	681 228,46	957 471,20	1 116 325,29	1 158 689,65
-  II.  Materials and energy..........	1 288 475,91	1 220 844,76	1 265 438,06	1 105 612,01
-  III. Third party services..........	4 613 455,88	4 857 491,63	4 946 729,00	4 795 796,61
-  IV.  Taxes and duties..............	132 645,72	108 572,29	136 598,63	107 374,44
-  V.   Salaries and wages............	4 906 936,46	4 939 009,38	5 254 968,00	5 027 814,04
-  VI.  Social security...............	1 181 104,73	1 144 883,62	1 226 960,24	1 186 336,84
-  VII. Other.........................	1 194 254,14	1 330 129,29	1 655 562,96	1 213 151,64
-  VIII.Costs of goods and materials sold..................................	23 634 994,72	20 767 033,91	23 374 944,00	23 172 922,30
-C. Profit on sale....................	2 002 602,00	2 942 690,08	1 714 282,99	2 489 824,15
-D. Other operating incomes...........	701 732,38	1 575 400,14	1 307 729,78	2 420 882,46
-  I.   Incomes from disposal non-financial assets..................	295 008,11	786 160,94	106 077,90	46 423,87
-  III. Other operating incomes.......	406 724,27	789 239,20	1 201 651,88	2 374 458,59
-E. Other operating costs.............	800 025,34	1 594 795,86	1 239 792,36	2 104 957,58
-  II.  Goodwill revaluation..........	328 069,60	426 103,43	490 360,58	969 920,46
-  III. Other operating costs.........	471 955,74	1 168 692,43	749 431,78	1 135 037,12
-F. Profit on operating activities....	1 904 309,04	2 923 294,36	1 782 220,41	2 805 749,03
-G. Financial incomes.................	79 007,34	162 550,81	186 565,70	4 645,12
-  I.   Dividends received............	75 966,71	136 102,62	184 165,84
-    - including dividends to group and associated compan.................	39 148,43	71 671,62	184 165,84
-  II.  Interest received.............	3 040,63	26 448,19	67,80	4 645,12
-  V.   Other.........................			2 332,06
-H. Financial costs...................	1 003 558,28	1 441 946,32	1 186 524,90	1 143 887,21
-  I.   Interest......................	958 345,78	935 618,38	1 115 251,39	1 062 059,90
-    - related companies..............	702 290,68		844 084,10	229 591,26
-  II.  Loss from financial assets sold..................................	20 000,00
-  III. Financial assets revaluation..		354 553,82		10 303,94
-  IV.  Other.........................	25 212,50	151 774,12	71 273,51	71 523,37
-I. Profit on economic activity.......	979 758,10	1 643 898,85	782 261,21	1 666 506,94
-K. Gross profit......................	979 758,10	1 643 898,85	782 261,21	1 666 506,94
-L. Corporation tax...................	220 123,00	293 931,00	199 772,00	120 339,00
-N. Net profit........................	759 635,10	1 349 967,85	582 489,21	1 546 167,94

AUDITOR

Balance sheet as at 31.12.2010
REWIDO SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ sp. k., ul. Dobra 13, 40-119 Katowice	No. 2302

Expert auditor  Zofia Kaniuk

No. 9426

Balance sheet as at 31.12.2009
REWIDO SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ sp. k., ul. Dobra 13, 40-119 Katowice	No. 2302

Expert auditor  Zofia Kaniuk

No. 9426

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	4,62	3,95	3,82	4,51
Quick ratio	2,41	1,93	1,92	2,45
Immediate ratio	0,01	0,02	0,01	0,19
Return on sale	1,92	3,53	1,43	3,84
Return on assets	4,53	8,19	3,53	8,75
Return on equity	16,69	26,26	13,32	34,02
Average trade debtors' days	71,39	67,65	61,46	64,08
Average stock turnover's days	64,06	69,84	59,90	59,65
average payables payment period	29,74	35,42	32,22	30,00
Total indebtedness ratio	72,86	68,80	73,52	74,29

While rating the company, it is advisable to take into consideration information about the branch  , the company is acting in
(G.46.90.Z - NACE 2007), as at :	30.09.2013	31.12.2012	31.12.2011	31.12.2010	31.12.2009
Current ratio............................	1,35	1,37	1,34	1,35	1,36
Quick ratio..............................	0,91	0,92	0,91	0,92	0,93
Immediate ratio..........................	0,14	0,11	0,12	0,13	0,17
Return on sale...........................	2,02	1,98	2,37	2,52	2,30
Return on assets.........................	3,23	4,39	4,83	5,29	4,75
Return on equity.........................	7,43	10,68	12,19	12,58	10,74
Average trade debtors' days..............	55,31	53,54	60,01	55,55	53,42
Average stock turnover's days............	33,02	32,07	34,73	33,41	31,26
average payables payment period..........	78,04	74,05	84,44	79,60	78,58
Total indebtedness ratio.................	56,57	58,95	60,38	57,95	55,79
Percent share in the examinated group of companies with net profit.............	78,80	84,00	85,20	88,30	84,50
Sales/revenue per employee in th. PLN....	964,40	1 251,19	1 194,06	1 096,92	1 041,26
Average sales/revenue per company in th. PLN..................................	165 642,36	212 247,13	200 401,36	168 306,09	167 458,62
according to the Central Statistical Office

Locations:

seat: ul. Woźniaka 5, 40-389 Katowice Phone:                   32 3172000 Fax:                     32 3172001 E-mail:                  biuro@spokey.pl Website:                 www.spokey.pl branch: ul. Ostatnia 2C, 31-444 Kraków wholesale: ul. Oświęcimska 13, 41-400 Mysłowice

Real Estate	ul. Woźniaka 5, 40-389 Katowice warehouse of area 3 000 sq m,  production plant of area 4 600 sq m,  office premises of area 1 600 sq m,
	Book value of buildings as at 31.12.2012	PLN	35 996,66
	Verification of information on real estate ownership position through the Real Estate Register is not covered by the standard report.

Shares in other companies	As at 26.12.2013 there are no shares in other companies.
Connections:	Bolesław Franciszek Kania , personal ID no. (PESEL) 41072103374 -  KANLUX SA NIP PL 6452432793, ul. Objazdowa 1 -3, 41-922 Radzionków   · Shareholder (:on the basis of co-ownership): 5,88 %   · member of supervisory board -  SPOKEY - ARTYKUŁY SPORTOWE I TURYSTYCZNE SPÓŁKA Z O.O. NIP 9451999909, ,ul. Ostatnia 1D, 31-444 Kraków   · proxy -  KPE NIERUCHOMOŚCI SA NIP PL 6452427668, ul. Objazdowa 1-3, 41-922 Radzionków   · member of supervisory board -  IDEAL POLSKA SA NIP PL 6452467142, ul. Objazdowa 1-3, 41-922 Radzionków   · member of supervisory board -  KPE sp. z o.o., ul. Objazdowa 1-3, 41-922 Radzionków   · shareholder: PLN 10 500,00 (25,00%)   · president -  MBK NIERUCHOMOŚCI sp. z o.o., ul. Objazdowa 1-3, 41-922 Radzionków   · shareholder (:on the basis of co-ownership): PLN 249 000,00 (27,67%)   · proxy Katarzyna Halina Gregorczyk , personal ID no. (PESEL) 75022004545 -  TOPVALLEY sp. z o.o. NIP 6342807252, ul. Ks.Kani 1/1, 41-400 Mysłowice   · shareholder: PLN 122 500,00 (81,67%)   · president -  SPOKEY - ARTYKUŁY SPORTOWE I TURYSTYCZNE SPÓŁKA Z O.O. NIP 9451999909, ,ul. Ostatnia 1D, 31-444 Kraków   · proxy
	Data concerning connections are valid as at: 26.12.2013.
Taking overs		17.11.2006 (Entry date) - merger SPOKEY Sp. z o.o., ul. Woźniaka 5, 40-389 Katowice (as taking over)  SPOKEY- Artykuły Sportowe i Turystyczne Sp. z o.o.  (as taken over)
General information	Despite our hard efforts, we could not achieve more information from available sources. The subject refused to cooperate in elaboration of the report.
Banks	ING Bank Śląski SA O. w Bytomiu ul.Strzelców Bytomskich 1  (10501230) ul. Strzelców Bytomskich 1, 41-902 Bytom Acc.no. 48105012301000002278524372

Payment Manner	In available sources, payment delays have not been noted
Credit capability	Business connections appear permissible

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.92
UK Pound	1	Rs.101.98
Euro	1	Rs.83.93

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.