MIRA INFORM REPORT

Report Date :

17.05.2014

IDENTIFICATION DETAILS

Name :	VESTA-WORKS SP. Z O.O.
Registered Office :	ul. Palisadowa 20/22, 01-940 Warszawa
Country :	Poland
Financials (as on) :	31.12.2012 (Annual)
Date of Incorporation :	26.04.1989
Com. Reg. No.:	KRS 43468
Legal Form :	Limited Liability Company
Line of Business :	· Manufacturer of metal processing machinery and equipment Manufacturer of tools General mechanical engineering Wholesaler and retailer of motor vehicles, excluding motorcycles
No of Employees :	10 to 49 employees (2010)

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)
Poland	B1	B1

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

Poland ECONOMIC OVERVIEW

Poland has pursued a policy of economic liberalization since 1990 and Poland's economy was the only one in the EU 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 and adopting 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 and 2013, in part due to the ongoing economic difficulties in the euro zone. Short-term, the key policy challenge will be to consolidate debt and spending without stifling economic growth. Over the longer term, Poland's economic performance could improve if the country addresses some of the remaining deficiencies in its road and rail infrastructure, business environment, rigid labor code, commercial court system, government red tape, and burdensome tax system.

Source : CIA

Company name & ADDRESS

VESTA-WORKS sp. z o.o.

ul. Palisadowa 20/22
01-940 Warszawa

Phone:    22 8368726

Fax:      22 8368943

E-mail:   office@vestaworks.com.pl

Website:  www.vestaworks.com.pl

Company summary

Legal form	Limited Liability Company
Stat.no.	008085786
Tax ID	PL 5270205559

Changes of names and addresses	ul. Kasprzaka 29/31, 01-234 Warszawa
	11.12.2007  ul. Palisadowa 20/22, 01-940 Warszawa

Registration:

12.09.2001, District Court Warszawa, XIII Department, KRS 43468

Shareholders	ONTARIO INC 1861149	PLN	409 617,00 100,00%
	list entered to NCR /KRS/ on  07.12.2010

Initial Capital		PLN 409 617,00
	Initial capital divided into 100 shares of PLN 4 096,17 each
	Changes of initial capital
	- since 27.02.2006  until 07.12.2010  the capital estimated	PLN 309 617,00
	-  until 27.02.2006  the capital estimated	PLN 15 586,52
	An in-kind contribution has been made and valued at	PLN  210 660,92

Management	Eugene Lewczuk  - president Magdalena Anna Kotlińska , personal ID no. (PESEL) 77091501365, ul. Wilhelma Orlika Ruckemana 8/8, 20-244 Lublin  - vice president
	Proxies: Zbigniew Marek Steć , personal ID no. (PESEL) 53091807175  - joint proxy
	Representation: since 07.12.2010  If numerous managers – President individually or member of the board of directors and proxy jointly

Supervisory board

Marianna Kaliszak , personal ID no. (PESEL) 41050204389 Bartosz Kuczmar Jacek Górecki , personal ID no. (PESEL) 52111902519

Main activity	Manufacture of metal processing machinery and equipment
	Branches NACE 2007:
	Manufacture of tools	(C.25.73.Z)
	General mechanical engineering	(C.25.62.Z)
	Wholesale and retail of motor vehicles, excluding motorcycles	(G.45.1)
	Land transport; transport via pipelines	(H.49)
	Acommodastion	(I.55)
	Software consultancy and supply	(J.62.01.Z)

Employment

1999:              45        employees 2003:              50        employees 2004:              25        employees 2009:              10 to 49  employees  2010:              10 to 49  employees

Turnover	2008	PLN	4 630 850,32
	2009	PLN	3 061 120,37
	2010	PLN	3 365 092,75
	2011	PLN	3 997 613,80
	2012	PLN	5 380 197,96

Financial statements

 In the court files, no financial report for the last financial period. According to paragraph 53 point 1 of Ustawa o Rachunkowości (resolution about accountancy) year financial report of the company should be approved by approval body no longer than 6 months after the balance day. Within 15 days from approval, financial report should be submitted to the register court.

Source of financial data	Court	Court	Court	Court
	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......................	2 532 291,00	2 334 489,20	2 298 290,43	2 292 238,36
-  I.   Intangible assets.............	2 050 000,00	2 050 000,00	2 050 000,00	2 050 000,00
-    3. Other intangible assets.......	2 050 000,00	2 050 000,00	2 050 000,00	2 050 000,00
-  II.  Tangible assets...............	477 271,00	279 469,20	243 270,43	237 218,36
-    1. Fixed goods...................	477 271,00	279 469,20	243 270,43	237 218,36
-      a) land........................	76 900,00	76 900,00	76 900,00	76 900,00
-      b) buildings, premises, facilities............................	70 414,56
-      c) machinery and equipment.....	257 828,03	55 305,62	22 882,53	24 838,49
-      d) fleet of motor vehicles.....	39 933,14	40 500,00	25 500,00	25 500,00
-      e) other fixed goods...........	32 195,27	106 763,58	117 987,90	109 979,87
-  IV.  Long term investments.........	5 020,00	5 020,00	5 020,00	5 020,00
-    3. Long term financial assets....	5 020,00	5 020,00	5 020,00	5 020,00
-      a) in affiliated companies.....	5 020,00	5 020,00
-        - participations or shares...	5 020,00	5 020,00
-      b) Other.......................			5 020,00	5 020,00
-        - participations or shares...			5 020,00	5 020,00
-B. Current assets....................	1 913 606,07	2 450 521,23	2 425 857,20	2 640 381,84
-  I.   Stock.........................	713 156,93	1 067 460,77	1 444 670,02	1 475 827,53
-    1. Raw materials.................	27 588,56	67 262,79	111 503,94	194 167,64
-    2. Semi-finished products and work-in-progress......................	198 416,93	749 619,97		869 954,61
-    3. Finished products.............	479 145,52	250 578,01	356 290,75	390 808,25
-    4. Goods for re-sale.............	8 005,92		30 160,04	20 363,03
-    5. Advance payments .............				534,00
-  II. Short-term receivables.........	1 012 656,64	1 279 438,84	869 372,57	1 093 813,42
-    2. Other receivables ............	1 012 656,64	1 279 438,84	869 372,57	1 093 813,42
-      a) Due to deliveries and services with payment period:.........	443 520,34	812 932,85	565 340,55	729 442,61
-        - up to 12 months............	443 520,34	812 932,85	565 340,55	729 442,61
-      b) Due to taxes, subsidies, insurances, duties, etc...............	73 111,00	167 473,14	136 146,55	18 644,00
-      c) Other.......................	496 025,30	299 032,85		345 726,81
-      d) Received through judicial proceedings...........................			167 885,47
-  III. Short term investments........	179 766,36	93 277,61	92 368,07	61 487,86
-    1. Short-term financial assets...	179 766,36	93 277,61	92 368,07	61 487,86
-      c) cash and other liquid assets................................	179 766,36	93 277,61	92 368,07	61 487,86
-        - cash in hand and on bank account...............................	129 766,36	93 277,61	92 368,07	61 487,86
-        - other liquid assets........	50 000,00
-IV. Short-term prepayments and accrued income........................	8 026,14	10 344,01	19 446,54	9 253,03
-D. Total assets......................	4 445 897,07	4 785 010,43	4 724 147,63	4 932 620,20
-A. Shareholders' equity..............	2 967 150,13	2 903 281,48	3 018 791,65	3 044 251,87
-  I.   Basic share capital...........	409 617,00	409 617,00	409 617,00	309 617,00
-  IV.  Statutory reserve capital.....	1 014 754,05	1 214 754,05	1 464 754,05	1 514 754,05
-  V. Revaluation reserve.............	401 466,99	401 466,99	401 466,99	401 466,99
-  VI.  Other reserve capital.........	697 655,29	697 655,29	697 655,29	797 655,29
-  VII. Profit (loss) carried forward.	179 788,15	45 298,32	2 114,54
-  VIII. Net profit (loss)............	263 868,65	134 489,83	43 183,78	20 758,54
-B. Liabilities and reserves for liabilities...........................	1 478 746,94	1 881 728,95	1 705 355,98	1 888 368,33
-II.  Long-term liabilities...........				322 296,46
-  2. Other liabilities...............				322 296,46
-    a) Loans.........................				322 296,46
-III. Short-term liabilities..........	1 478 746,94	1 881 728,95	1 705 355,98	1 566 071,87
-  2. Other liabilities...............	1 478 746,94	1 872 863,48	1 696 490,51	1 531 710,64
-    a) Loans.........................	704 240,33	714 351,27	575 337,24	495 701,68
-    d)Due to deliveries and services with payment period:.........	381 162,48	818 362,24	645 974,15	570 403,16
-      - up to 12 months..............	381 162,48	818 362,24	645 974,15	570 403,16
-    e) Advances received.............	195 086,04	176 825,65	218 665,53	198 779,34
-    g) Due to taxes, subsidies, insurances, duties, etc...............	114 087,30	77 110,00	162 559,84	87 130,22
-    h) Due to salaries...............	84 170,79	86 214,32	93 953,75	98 072,53
-    i) Other.........................				81 623,71
-  3. Special funds...................		8 865,47	8 865,47	34 361,23
-D. Total liabilities.................	4 445 897,07	4 785 010,43	4 724 147,63	4 932 620,20
Source of financial data	Court	Court	Court	Court
	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.....	5 380 197,96	3 997 613,80	3 365 092,75	3 061 120,37
-  I.   Net revenue form sale of products..............................	5 380 197,96	3 997 613,80	3 259 069,00	2 996 800,86
-  II.  Net revenue from sale of goods.................................			106 023,75	64 319,51
-B.Cost of products, goods sold.......	2 850 274,49	2 743 490,56	1 963 597,41	1 705 889,21
-  I.  Cost of production of products sold.........................	2 850 274,49	2 743 490,56	1 920 439,68	1 679 039,48
-  II.  Value of products sold........			43 157,73	26 849,73
-C. Gross profit on sale..............	2 529 923,47	1 254 123,24	1 401 495,34	1 355 231,16
-D. Costs of sale.....................	36 066,79	81 934,74	545 754,92	192 946,39
-E. General management costs..........	1 365 346,81	909 560,40	772 642,44	941 652,03
-F. Profit on sale....................	1 128 509,87	262 628,10	83 097,98	220 632,74
-G. Other operating incomes...........	82 577,71	44 100,09	92 769,42	82 331,67
-  I.   Incomes from disposal of fixed assets..........................				100,00
-  III. Other operating incomes.......	82 577,71	44 100,09	92 769,42	82 231,67
-H. Other operating costs.............	627 081,38	79 448,49	41 472,67	44 562,89
-  III. Other operating costs.........	627 081,38	79 448,49	41 472,67	44 562,89
-I. Profit on operating activities....	584 006,20	227 279,70	134 394,73	258 401,52
-J. Financial incomes.................	1 870,03	1 092,62	40,84	106,21
-  II.  Interest received.............	1 870,03	1 092,62	40,84	106,21
-K. Financial costs...................	258 878,58	93 804,93	91 251,79	220 591,19
-  I.   Interest......................			15 015,78	166 024,45
-  IV.  Other.........................	258 878,58	93 804,93	106 267,57	54 566,74
-L. Gross profit on economic activity.	326 997,65	134 567,39	43 183,78	37 916,54
-N. Gross profit......................	326 997,65	134 567,39	43 183,78	37 916,54
-O. Corporation tax...................	63 129,00			17 158,00
-R. Net profit........................	263 868,65	134 567,39	43 183,78	20 758,54

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	1,29	1,30	1,42	1,69
Quick ratio	0,81	0,73	0,56	0,74
Immediate ratio	0,12	0,05	0,05	0,04
Return on sale	4,90	3,37	1,28	0,68
Return on assets	5,94	2,81	0,91	0,42
Return on equity	8,89	4,64	1,43	0,68
Average trade debtors' days	68,89	116,82	94,30	130,42
Average stock turnover's days	48,51	97,46	156,70	175,97
average payables payment period	100,60	171,81	184,97	186,73
Total indebtedness ratio	33,26	39,33	36,10	38,28

While rating the company, it is advisable to take into consideration information about the branch, the company is acting in
(C.25.73.Z - NACE 2007), as at :	31.12.2011
Current ratio............................	2,51
Quick ratio..............................	1,42
Immediate ratio..........................	0,30
Return on sale...........................	7,52
Return on assets.........................	8,25
Return on equity.........................	12,47
Average trade debtors' days..............	60,10
Average stock turnover's days............	75,21
average payables payment period..........	70,20
Total indebtedness ratio.................	33,82
Percent share in the examinated group of companies with net profit.............	83,30
Sales/revenue per employee in th. PLN....	171,42
Average sales/revenue per company in th. PLN..................................	20 863,71
according to the Central Statistical Office

Locations:		seat: ul. Palisadowa 20/22, 01-940 Warszawa Phone:                   22 8368726 Fax:                     22 8368943 E-mail:                  office@vestaworks.com.pl Website:                 www.vestaworks.com.pl
Real Estate	Book value of buildings as at 31.12.2012		PLN	70 414,56
	Book value of lands as at 31.12.2012		PLN	76 900,00
	Verification of information on real estate ownership position through the Real Estate Register is not covered by the standard report.

Shares in other companies	As at 23.04.2014 there are no shares in other companies.
Connections:	Eugene Lewczuk Bartosz Kuczmar 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: 23.04.2014.
Banks	Names of banks were not disclosed
Payment Manner	In available sources, payment delays have not been noted
Credit capability	Business connections appear permissible
	We would like to draw your attention to: - No insight into financial situation of the company

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.58.86
UK Pound	1	Rs.98.82
Euro	1	Rs.80.72

INFORMATION DETAILS

Analysis Done by :	DIV
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%)

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