MIRA INFORM REPORT

Report Date :

02.05.2014

IDENTIFICATION DETAILS

Name :	SILEX SPOL. S R.O.
Registered Office :	Městský Soud V Praze
Country :	Czech Republic
Financials (as on) :	31.12.2012
Date of Incorporation :	03.10.1990
Com. Reg. No.:	C 301
Legal Form :	Private limited company
Line of Business :	Wholesale and retail sale of cushions, quilts, bed textiles as well as soft furnishing of the brand SCAN quilt
No. of Employees	128

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 :	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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Czech Republic	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 and address

SILEX SPOL. S R.O.

Vinohradská 1899/112 130 00 Praha 3

telephone: 00420/ 246 058 121
telefax: 00420/ 267 312 897
e-mail: info@scanquilt.cz
Web: www.scanquilt.cz

Company summary

Legal form

Private limited company

Foundation	03/10/1990 - Private limited company
Comp. Register	03/10/1990, Městský soud v Praze, RegNr.: C 301 Statistical number: 00563714 Tax number: CZ00563714

Share Capital	03/10/1990		CZK			100 000,-
Shareholders		Ing. Ivana Šachová (13.09.1962) Za Hládkovem 9/980, 169 00 Praha 6		CZK	100 000,-

Management	Ing. Ivana Šachová (13.09.1962) Za Hládkovem 9/980, 169 00 Praha 6 Executive Manager
General Data	Wholesale and retail sale of cushions, quilts, bed textiles as well as soft furnishing of the brand SCAN quilt. Branches: Retail sale network - 35 salesrooms all over the Czech Republic

Main activity: Wholesale of textiles
	Trade name(s) SILEX spol. s r.o. Beginning of validity: 03.10.1990

Export:
Norway
Slovakia
Sweden

Import:
France
India
Portugal

General contacts:
telephone:
00420/ 246 058 121
telefax:
00420/ 267 312 897
e-mail:
info@scanquilt.cz
Web:
www.scanquilt.cz

Address:
Vinohradská 1899/112, 130 00 Praha 3
Beginning of validity: 07.09.2010

náměstí Jiřího z Lobkovic čp.2459,č.or.19, 130 00 Praha 3
Beginning of validity: 13.09.2001
End of validity: 07.09.2010

Soběslavská 28, 130 00 Praha 3
Beginning of validity: 29.07.1991
End of validity: 13.09.2001

		Děkanská vinice II. č. 1534/4, 140 00 Praha 4 Beginning of validity: 03.10.1990 End of validity: 29.07.1991
Staff	2006		85 employees

2008	106 employees
2010	122 employees

2011	115 employees
2012	120 employees

2013	123 employees
2014	128 employees

Annual Sales	2005	actual sales	CZK	302 415 000,-
	2006	actual sales	CZK	291 580 000,-

2007	actual sales	CZK	294 569 000,-
2008	actual sales	CZK	282 404 000,-

2009	actual sales	CZK	259 358 000,-
2010	actual sales	CZK	217 651 000,-

2011	actual sales	CZK	196 143 000,-
2012	actual sales	CZK	198 043 000,-

The company is not registered in the Central register of executions.

Turnover for the year 2013 is at the level of the year 2012.

Property	none
Balance sheets	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 balance of 2010 from business register, it is authenticated by the auditor. (31.12.2010 - 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) The enclosed profit/loss account of 2010 from business register, it is authenticated by the auditor. (31.12.2010 - 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 of Creditreform and others) are currently monitored.

	On December 31, 2000, there was sale of a part of enterprise of the company SILEX spol. s r.o., namely of the unit SX; to be concrete, this was matter of the set of all things, property rights as well as of property values used for running the transferred part of enterprise and obligations relating to the transferred part of the enterprise. In consequence of merger, property of the disappearing company SILEX Praha s.r.o., IČ 26210924, including rights and duties resulting from labour relations have been transferred to the company SILEX spol. s.r.o., in consequence of merger. This step has been performed on the basis of resolution of the sole associate within the sphere of activities of the General Meeting of the company SILEX Praha s.r.o. from September 3, 2001. In compliance with the annual report for the years 2011 and 2012, the company has no short-term obligations after the due date which have not been subsequently reimbursed. Contact: Ing. Ivana Šachová – executive, phone: 00420/ 246 058 124 Mrs. Kefortová – accountant, phone: 00420/ 246 058 130
Bankers	Československá obchodní banka, a. s. Account number: 319433/0300 Komerční banka, a.s. Account number: 157842011/0100	(0300) (0100)

Copyright: Creditreform s.r.o. 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 balance sheet
	balance	31.12.2009 (CZK)	31.12.2010 (CZK)	31.12.2011 (CZK)	31.12.2012 (CZK)
r1	TOTAL ASSETS	246 271 000	240 467 000	247 273 000	238 934 000
r2	Receivables for subscriptions	0	0	0	0
r3	Fixed assets	27 800 000	26 949 000	23 228 000	22 364 000
r4	Intangible fixed assets	69 000	0	0	0
r5	Incorporation expenses	0		0	0
r6	Research and development	0		0	0
r7	Software	69 000		0	0
r8	Valuable rights	0		0	0
r9	Goodwill	0		0	0
r10	Other intangible fixed assets	0		0	0
r11	Intangible fixed assets under construction	0		0	0
r12	Advance payments for intangible fixed assets	0		0	0
r13	Tangible fixed assets	23 591 000	23 973 000	21 316 000	21 016 000
r14	Lands	0	0	0	0
r15	Constructions	20 937 000	20 915 000	20 115 000	20 731 000
r16	Equipment	1 630 000	886 000	410 000	285 000
r17	Perennial corps	0		0	0
r18	Breeding and draught animals	0		0	0
r19	Other tangible fixed assets	0		0	0
r20	Tangible fixed assets under construction	1 024 000	2 172 000	791 000	0
r21	Advance payments for tangible fixed assets	0		0	0
r22	Adjustment to acquired assets	0		0	0
r23	Long-term financial assets	4 140 000	2 976 000	1 912 000	1 348 000
r24	Shares in controlled and managed organizations	0		0	0
r25	Shares in accounting units with substantial influence	0		0	0
r26	Other securities and shares	0		0	0
r27	Loans to controlled and managed organizations and to accounting unit with substantial influence	0		0	0
r28	Other financial investments	4 140 000	2 976 000	1 912 000	1 348 000
r29	Financial investments acquired	0		0	0
r30	Advance payments for long-term financial assets	0		0	0
r31	Current assets	217 532 000	212 308 000	222 515 000	215 242 000
r32	Inventory	119 603 000	122 890 000	142 821 000	147 814 000
r33	Materials	0		0	0
r34	Work in progress and semi-products	0		0	0
r35	Finished products	0		0	0
r36	Animals	0		0	0
r37	Merchandise	119 603 000	122 890 000	142 391 000	147 734 000
r38	Advance payments for inventory	0		430 000	80 000
r39	Long-term receivables	0	0	0	0
r40	Trade receivables	0		0	0
r41	Receivables from controlled and managed organizations	0		0	0
r42	Receivables from accounting units with substantial influence	0		0	0
r43	Receivables from partners, cooperative members and association members	0		0	0
r44	Long-term deposits given	0		0	0
r45	Estimated receivable	0		0	0
r46	Other receivables	0		0	0
r47	Deferred tax receivable	0		0	0
r48	Short-term receivables	27 843 000	16 923 000	19 185 000	21 101 000
r49	Trade receivables	27 751 000	15 760 000	15 384 000	17 355 000
r50	Receivables from controlled and managed organizations	0		0	0
r51	Receivables from accounting units with substantial influence	0		0	0
r52	Receivables from partners, cooperative members and association members	0		0	0
r53	Receivables from social security and health insurance	0		0	0
r54	Due from state - tax receivable	124 000	1 219 000	0	453 000
r55	Short-term deposits given	0		3 798 000	3 282 000
r56	Estimated receivable	0		0	0
r57	Other receivables	-32 000	-56 000	3 000	11 000
r58	Short-term financial assets	70 086 000	72 495 000	60 509 000	46 327 000
r59	Cash	1 523 000	1 907 000	2 073 000	1 693 000
r60	Bank accounts	26 563 000	30 588 000	43 436 000	44 634 000
r61	Short-term securities and ownership interests	42 000 000	40 000 000	15 000 000	0
r62	Short-term financial assets acquired	0		0	0
r63	Accruals	939 000	1 210 000	1 530 000	1 328 000
r64	Deferred expenses	1 106 000	1 219 000	1 410 000	1 328 000
r65	Complex deferred costs	0		0	0
r66	Deferred income	-167 000	-9 000	120 000	0
r67	TOTAL LIABILITIES	246 271 000	240 467 000	247 273 000	238 934 000
r68	Equity	215 078 000	216 854 000	220 741 000	214 520 000
r69	Registered capital	100 000	100 000	100 000	100 000
r70	Registered capital	100 000	100 000	100 000	100 000
r71	Company’s own shares and ownership interests (-)	0		0	0
r72	Changes of registered capital ( +/- )	0		0	0
r73	Capital funds	0	0	0	0
r74	Share premium	0		0	0
r75	Other capital funds	0		0	0
r76	Differences from revaluation of assets and liabilities ( +/- )	0		0	0
r77	Differences from revaluation in transformation ( +/- )	0		0	0
r78	Reserve funds, statutory reserve account for cooperatives, and other retained earnings	128 000	128 000	128 000	128 000
r79	Legal reserve fund / indivisible fund	128 000	128 000	128 000	128 000
r80	Statutory and other funds	0		0	0
r81	Profit / loss - previous years	192 642 000	208 849 000	212 626 000	208 513 000
r82	Retained earnings from previous years	192 642 000	208 849 000	212 626 000	208 513 000
r83	Accumulated losses from previous years	0		0	0
r84	Profit / loss - current year (+/-)	22 208 000	7 777 000	7 887 000	5 779 000
r85	Liabilities	28 981 000	21 757 000	26 404 000	24 414 000
r86	Reserves	0	0	0	0
r87	Reserves under special statutory regulations	0		0	0
r88	Reserves for pension and similar payables	0		0	0
r89	Income tax reserves	0		0	0
r90	Other reserves	0		0	0
r91	Long-term payables	0	0	0	0
r92	Trade payables	0		0	0
r93	Payables to controlled and managed organizations	0		0	0
r94	Payables to accounting units with substantial influence	0		0	0
r95	Payables from partners, cooperative members and association members	0		0	0
r96	Long-term advances received	0		0	0
r97	Issues bonds	0		0	0
r98	Long-term notes payables	0		0	0
r99	Estimated payables	0		0	0
r100	Other payables	0		0	0
r101	Deferred tax liability	0		0	0
r102	Short-term payables	28 981 000	21 757 000	26 404 000	24 414 000
r103	Trade payables	21 302 000	13 118 000	16 389 000	15 372 000
r104	Payables to controlled and managed organizations	0		0	0
r105	Payables to accounting units with substantial influence	0		0	0
r106	Payables from partners, cooperative members and association members	38 000	38 000	35 000	38 000
r107	Payroll	1 818 000	1 771 000	1 679 000	1 848 000
r108	Payables to social securities and health insurance	1 026 000	1 012 000	951 000	1 044 000
r109	Due from state - tax liabilities and subsidies	4 082 000	3 858 000	6 067 000	4 421 000
r110	Short-term deposits received	0		0	199 000
r111	Issues bonds	0		0	0
r112	Estimated payables	715 000	1 911 000	1 278 000	1 480 000
r113	Other payables	0	49 000	5 000	12 000
r114	Bank loans and financial accommodations	0	0	0	0
r115	Long-term bank loans	0	0	0	0
r116	Short-term bank loans	0	0	0	0
r117	Short-term accommodations	0	0	0	0
r118	Accruals	2 212 000	1 856 000	128 000	0
r119	Accrued expenses	2 212 000	1 408 000	0	0
r120	Deferred revenues	0	448 000	128 000	0
profit/loss account

			31.12.2009 (CZK)		31.12.2010 (CZK)		31.12.2011 (CZK)		31.12.2012 (CZK)
a1	Turnover		259 358 000		217 651 000		196 143 000		198 043 000
a2	Revenues from sold goods		259 276 000		217 580 000		196 072 000		197 915 000
a3	Expenses on sold goods		130 172 000		98 768 000		86 692 000		88 269 000
a4	Sale margin		129 104 000		118 812 000		109 380 000		109 646 000
a5	Production		82 000		71 000		71 000		128 000
a6	Revenues from own products and services		82 000		71 000		71 000		128 000
a7	Change in inventory of own products		0				0		0
a8	Capitalization		0				0		0
a9	Production consumption		67 791 000		71 737 000		60 809 000		63 269 000
a10	Consumption of material and energy		9 785 000		10 912 000		6 008 000		7 648 000
a11	Services		58 006 000		60 825 000		54 801 000		55 621 000
a12	Added value		61 395 000		47 146 000		48 642 000		46 505 000
a13	Personnel expenses		31 097 000		34 722 000		33 594 000		35 120 000
a14	Wages and salaries		22 928 000		25 175 000		24 440 000		25 500 000
a15	Renumeration of board members		0				0		0
a16	Social security expenses and health insurance		7 256 000		8 500 000		8 163 000		8 593 000
a17	Other social expenses		913 000		1 047 000		991 000		1 027 000
a18	Taxes and fees		24 000		41 000		29 000		34 000
a19	Depreciations of intangible and tangible assets		1 835 000		1 920 000		1 604 000		1 520 000
a20	Revenues from disposals of fixed assets and materials		337 000		1 000		4 000		69 000
a21	Revenues from disposals of fixed assets		140 000				0		0
a22	Revenues from disposals of materials		197 000		1 000		4 000		69 000
a23	Net book value of disposed fixed assets and materials		0		0		0		0
a24	Net book value of sold fixed assets		0				0		0
a25	Net book value of sold material		0				0		0
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )		13 000		0		-13 000		0
a27	Other operating revenues		911 000		555 000		727 000		585 000
a28	Other operating expenses		529 000		119 000		2 890 000		1 447 000
a29	Transfer of operating revenues		0				0		0
a30	Transfer of operating expenses		0				0		0
a31	Operating profit / loss		29 145 000		10 900 000		11 269 000		9 038 000
a32	Revenues from sales of securities and ownership interests		0				0		0
a33	Sold securities and ownership interests		0				0		0
a34	Revenues from long-term financial assets		0				0		0
a35	Revenues from shares in controlled and managed organizations and in accounting units with substantial influence		0				0		0
a36	Revenues from others securities and ownership interests		0				0		0
a37	Revenues from other long-term financial assets		0				0		0
a38	Revenues from short-term financial assets		647 000		448 000		781 000		385 000
a39	Expenses associated with financial assets		0				0		0
a40	Revenues from revaluation of securities and derivatives		0				0		0
a41	Cost of revaluation of securities and derivatives		0				0		0
a42	Change in financial reserves and adjustments ( + / - )		0				0		0
a43	Interest revenues		263 000		161 000		69 000		63 000
a44	Interest expenses		0		5 000		34 000		0
a45	Other financial revenues		4 918 000		3 948 000		3 668 000		2 685 000
a46	Other financial expenses		7 046 000		5 833 000		6 033 000		5 007 000
a47	Transfer of financial revenues		0				0		0
a48	Transfer of financial expenses		0				0		0
a49	Profit / loss from financial operations ( transactions )		-1 218 000		-1 281 000		-1 549 000		-1 874 000
a50	Income tax on ordinary income		5 719 000		1 842 000		1 833 000		1 385 000
a51	Due tax		5 719 000		1 842 000		1 833 000		1 385 000
a52	Tax deferred		0				0		0
a53	Operating profit / loss ordinary activity		22 208 000		7 777 000		7 887 000		5 779 000
a54	Extraordinary revenues		0				0		0
a55	Extraordinary expenses		0				0		0
a56	Income tax on extraordinary income		0				0		0
a57	Due tax		0				0		0
a58	Tax deferred		0				0		0
a59	Operating profit / loss extraordinary activity		0		0		0		0
a60	Transfer profit ( loss ) to partners (+/-)		0				0		0
a61	Profit / loss of current accounting period (+/-)		22 208 000		7 777 000		7 887 000		5 779 000
a62	Profit / loss before tax (+/-)		27 927 000		9 619 000		9 720 000		7 164 000
	Operating cash flow		15 698 000		9 478 000		-10 103 000		-1 526 000
	Investment cash flow		-6 086 000		-1 069 000		2 117 000		-656 000
	Financial cash flow		-8 000 000		-6 000 000		-4 000 000		-12 000 000
	Receivables more than 180 days after due date		13 000		13 000		0		0
	Liabilities after due date total		0		0
Balance indices (financial ratios)
				31.12.2009		31.12.2010		31.12.2011		31.12.2012
Return on total assets ROA (in %)		a62/r1 * 100		11,34		4,00		3,93		3,00
Return on equity ROE (in %)		a62/r68 * 100		12,98		4,44		4,40		3,34
Return on sales ROS (in %)		a62/a1 * 100		10,77		4,42		4,96		3,62
Turnover of receivables (in days)		r49/a1 * 365		39,05		26,43		28,63		31,99
Turnover of liabilities (in days)		r103/a1 * 365		29,98		22,00		30,50		28,33
Turnover of inventories (days)		r32/a1 * 365		168,32		206,09		265,77		272,43
Net working capital (in ths. CZK)		r31 - r102 - r116 - r117		188 551,00		190 551,00		196 111,00		190 828,00
Ratio of accounts payable to accounts receivable (in %)		(r39+r48) / (r91+r102) * 100		96,07		77,78		72,66		86,43
Ratio of profit/loss to tangible assets (in%)		r3 / a1 * 100		10,72		12,38		11,84		11,29
Current ratio		r31 / (r102+r116+r117)		7,51		9,76		8,43		8,82
Quick ratio		(r58+r48) / (r102+r116+r117)		3,38		4,11		3,02		2,76
Cash ratio		r58 / (r102+r116+r117)		2,42		3,33		2,29		1,90
Debt ratio I (in %)		(1-r68/r67) * 100		12,67		9,82		10,73		10,22
Debt ratio II (in %)		r85/r67 * 100		11,77		9,05		10,68		10,22

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.34
UK Pound	1	Rs.101.45
Euro	1	Rs.83.31

INFORMATION DETAILS

Analysis Done by :	SUM
Report Prepared by :	NIS

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.