MIRA INFORM REPORT

Report Date :

30.05.2014

IDENTIFICATION DETAILS

Name :	BLAZEK PRAHA A.S.
Formerly Known As :	BLAˇZEK PRAHA, S.R.O.
Registered Office :	U tovaren 261/27, 102 00 Praha10
Country :	Czech Republic
Financials (as on) :	31.12.2013
Date of Incorporation :	18.11.1997
Com. Reg. No.:	B 12599
Legal Form :	Public Limited Company
Line of Business :	Wholesale of clothing and footwear
No. of Employees :	45

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 :	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 – 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
Moderately Low Risk	B1
Moderate Risk	B2
Moderately 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 identification

BLAZEK PRAHA A.S.	Telephone	00420/ 220 873 100
U tovaren 261/27	telefax	00420/ 220 873 102
102 00 Praha10	e-mail	info@blazek.cz
Czech Republic	Web	www.blazek.cz

Crefo Nr.	9210093717	Registration:	Mestsky soud v Praze
Statistical Nr.	25624407	Registration Nr.	B 12599
Tax Nr.	CZ25624407	Status	activ

Economic situation

Business connection	Business connections appear permissible
Terms of payment	no complaints

Basic information

Legal form

Public limited company

Founded

18/11/1997 as Private limited company

22/11/2007 as Public limited company

Registration

18/11/1997, Mˇestsk´y soud v Praze, C 55776

22/11/2007, Mˇestsk´y soud v Praze, B 12599

Statistical Nr.: 25624407

Tax Nr.: CZ25624407

Registered names

Valid from Former name(s) Valid until

18/11/1997 Blaˇzek Praha, s.r.o. 22/11/2007

Valid from Trade name(s) Valid until

22/11/2007 BLAˇZEK PRAHA a.s.

Owners and Capital

Crefo Nr.	Name / Address / Status	From	Share
Main Shareholder
9213234276	BLAZEK HOLDING a.s. Statistical Nr.: 24185957 Ortenovo namiesti 542/16, 170 00 Praha 7 Czech Republic	25/10/2012	100%

Registered capital

Date Currency Value

18/11/1997 CZK 300,000

21/09/2000 CZK 2,600,000

260 pc of common nominative shares in documentary form at nominal value of CZK 10 000,--

Management

Crefo Nr.

Name / Address / Status

Since

Power of attorney

Board of Directors

9210214038	vice-chairman of board Ing. Jan Vacha(birth date 13/04/1968) Malesicka 11, 130 00 Praha 3, Zizkov Czech Republic	29/11/2011
9210041533	chairman of board Ing. Ladislav Blazek(birth date 23/03/1968) K zelenym domkum 1267/30A, 148 00 Praha 4, Kunratice Czech Republic	29/11/2011
9210060029	JUDr. Pavel Sedlacek(birth date 02/10/1963) Zderazska 98/3, 153 00 Praha 5, Radotin Czech Republic	29/11/2011
Supervisory Board
9212660022	Ing. Renata Vachova(birth date 08/06/1968) Malesicka 1871/11, 130 00 Praha 3, Zizkov Czech Republic	03/12/2012
9210090707	Mgr. Robert Kvasnicka(birth date 02/02/1972) Precechtelova 2405, 150 00 Praha 5 Czech Republic	29/11/2011
9212660021	chairman of supervisory board Romana Ruzickova(birth date 01/07/1964) kpt. Stranskeho 958, 198 00 Praha 9, Cerny Most Czech Republic	11/02/2009

Company addresses

Valid from	Address	Valid until
14/11/2012	U tovaren 261/27, 102 00 Praha 10, Czech Republic
18/11/1997	U tovaren 261, 102 00 Praha 10 - Hostivar, Czech Republic	14/11/2012
Valid from	Branches of the business	Valid until
	logisticke centrumKe Zdibsku 620, 250 66 Zdiby, Czech Republic telephone: 00420/284 682 396
	kreativni'centrumBlanenska 982, 664 34 Kurim, Czech Republic
Valid from	business locations	Valid until
	centrala / central officeOrtenovo nam. 16, 170 24 Praha 7, Holesovice, Czech Republic

Business activities

Main activity	Nace
Wholesale of clothing and footwear	46.42

Additional activities Nace

Manufacture of confection of gentlemen, wholesale and retail sale of \ confection for gentleman, running e-shop.

The company runs 26 retail salesrooms all over the territory of the \ Czech Republic and 8 salesrooms in Slovakia.

Economic data

Turnover and Employees

Date	Turnover	Employees
2005	235,182,000 CZK
2006	306,170,000 CZK	91
2007	319,052,000 CZK	92
2008	433,353,000 CZK
2009	434,907,000 CZK	122
2010	386,379,000 CZK	45
2011	399,552,000 CZK
2012	431,203,000 CZK	44
2013	383,088,000 CZK
2014		45

The decrease of number of emloyees in the year 2010 is caused by contractual outsourcing of employees by an other company.

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

Import / Export

	Import	Export
Percentage	Unknown	8%
Countries	France, Germany, Italy, Portugal, Slovakia, USA	Slovakia

Supplementary data

Remarks

The company is a holder of ISO 9001 certificate.

All the sources of negative data accessible to public (insolvency registers, databases of debtors of health insurance institutions,

commercial bulletin, collection database are currently monitored.

The last published final account is preliminary.

Business management:

Ing. Ladislav Blaˇzek, company director

Ing. Jan V´acha, financial director - 00420/ 220 873 100-1

e-mail: vacha@blazek.eu

Info line: 844 844 830

As of 22.11.2007, the company has changed its legal form from a

limited liability company to a joint-stock company.

Banks

Code	Bank name / Address	Account Nr.
0100	Komercm banka, a.s.	0000007474600237/0100
0100	Komercm banka, a.s.	7505310217/0100

Main indices

Payment experience

Terms of payment	no complaints
Business connection	Business connections appear permissible

Business development

Company development	Stagnant business development
Order situation	Satisfactory course of business

Events

No negative events registered.

Balances

Dec 31, 2013 The enclosed balance of 2013 company’s own data, -.

Dec 31, 2012 The enclosed balance of 2012 company’s own data, it is authenticated by the auditor.

Dec 31, 2011 The enclosed balance of 2011 from business register, -.

Dec 31, 2010 The enclosed balance of 2010 from business register, it is authenticated by the auditor.

Name	Ref.	31/12/2013 1000 CZK balance	31/12/2012 1000 CZK balance	31/12/2011 1000 CZK balance	31/12/2010 1000 CZK balance
TOTAL ASSETS	r1	236,881	218,987	227,940	181,131
Receivables for subscriptions	r2	0	0	0
Fixed assets	r3	42,342	40,701	39,559	36,504
Intangible fixed assets	r4	315	695	1,170	518
Incorporation expenses	r5			0
Research and development	r6			0
Software	r7	315	695	926	518
Valuable rights	r8			0
Goodwill	r9			0
Other intangible fixed assets	r10			0
Intangible fixed assets under construction	r11			244
Advance payments for intangible fixed assets	r12			0
Tangible fixed assets	r13	42,027	40,006	38,389	35,986
Lands	r14	0	0	0
Constructions	r15	36,614	32,161	30,858	30,866
Equipment	r16	5,413	7,518	7,531	5,120
Perennial corps	r17			0
Breeding and draught animals	r18			0
Other tangible fixed assets	r19			0
Tangible fixed assets under construction	r20		70	0
Advance payments for tangible fixed assets	r21		257	0
Adjustment to acquired assets	r22			0
Long-term financial assets	r23	0	0	0	0
Shares in controlled and managed organizations	r24			0
Shares in accounting units with substantial influence	r25			0
Other securities and shares	r26			0
Loans to controlled and managed organizations and to accounting unit with substantial influence	r27			0
Other financial investments	r28			0
Financial investments acquired	r29			0
Advance payments for long-term financial assets	r30			0
Current assets	r31	187,280	174,405	182,103	141,597
Inventory	r32	136,243	109,736	131,997	67,112
Materials	r33	24,280	24,337	32,687	15,913
Work in progress and semi-products	r34			0
Finished products	r35			0
Animals	r36			0
Merchandise	r37	111,963	85,399	99,310	51,199
Advance payments for inventory	r38			0
Trade receivables
Long-term receivables	r39	0	1,418	1,418	0
Trade receivables	r40		1,418	1,418
Receivables from controlled and managed organizations	r41			0
Receivables from accounting units with substantial influence	r42			0
Receivables from partners, cooperative members and association members	r43			0
Long-term deposits given	r44			0
Estimated receivable	r45			0
Other receivables	r46			0
Deferred tax receivable	r47			0
Short-term receivables	r48	23,576	29,298	23,588	26,319
Trade receivables	r49	15,215	22,093	12,297	21,592
Receivables from controlled and managed organizations	r50			0
Receivables from accounting units with substantial influence	r51			0
Receivables from partners, cooperative members and association members	r52	2,758	2,158	959	684
Receivables from social security and health insurance	r53			0
Due from state - tax receivable	r54	818		3	685
Short-term deposits given	r55	3,623	4,298	5,563	3,279
Estimated receivable	r56			0	9
Other receivables	r57	1,162	749	4,766	70
Short-term financial assets	r58	27,461	33,953	25,100	48,166
Cash	r59	549	804	3,035	1,270
Bank accounts	r60	26,912	33,149	22,065	46,896
Short-term securities and ownership interests	r61			0
Short-term financial assets acquired	r62			0
Accruals	r63	7,259	3,881	6,278	3,030
Deferred expenses	r64	3,723	3,650	3,753	2,951
Complex deferred costs	r65			0
Deferred income	r66	3,536	231	2,525	79
TOTAL LIABILITIES	r67	236,881	218,987	227,940	181,131
Equity	r68	161,984	169,528	160,866	139,196
Registered capital	r69	2,600	2,600	2,600	2,600
Registered capital	r70	2,600	2,600	2,600	2,600
Company's own shares and ownership interests (-)	r71			0
Changes of registered capital ( +/-)	r72			0
Capital funds	r73	0	0	0	0
Share premium	r74			0
Other capital funds	r75			0
Differences from revaluation of assets and liabilities ( +/- )	r76			0
Differences from revaluation in transformation ( +/- )	r77			0
Diferences from tranformation of companies ( +/- )				0
Reserve funds, statutory reserve account for cooperatives, and other retained earnings	r78	520	520	520	329
Legal reserve fund / indivisible fund	r79	520	520	520	329
Statutory and other funds	r80			0
Profit / loss - previous years	r81	165,058	151,647	136,075	111,237
Retained earnings from previous years	r82	165,058	151,647	136,075	111,237
Accumulated losses from previous years	r83			0
Profit / loss - current year (+/-)	r84	-6,194	14,761	21,671	25,030
Liabilities	r85	74,897	49,459	67,067	41,935
Reserves	r86	0	0	0	0
Reserves under special statutory regulations	r87			0
Reserves for pension and similar payables	r88			0
Income tax reserves	r89			0
Other reserves	r90			0
Long-term payables	r91	1,011	1,312	1,001	0
Trade payables	r92			0
Payables to controlled and managed organizations	r93			0
Payables to accounting units with substantial influence	r94			0
Payables from partners, cooperative members and association members	r95			0
Long-term advances received	r96			0
Issues bonds	r97			0
Long-term notes payables	r98			0
Estimated payables	r99			0
Other payables	r100	393	694	1,001
Deferred tax liability	r101	618	618	0
Short-term payables	r102	63,613	46,849	63,702	40,812
Trade payables	r103	53,273	39,229	53,113	28,955
Payables to controlled and managed organizations	r104			0
Payables to accounting units with substantial influence	r105			0
Payables from partners, cooperative members and association members	r106			0
Payroll	r107	11	422	91	67
Payables to social securities and health insurance	r108	196	228	236	264
Due from state - tax liabilities and subsidies	r109	3,499	2,115	5,581		5,228
Short-term deposits received	r110	640	12	490		836
Issues bonds	r111			0
Estimated payables	r112	5,725	4,687	3,574		4,431
Other payables	r113	269	156	617		1,031
Bank loans and financial accommodations	r114	10,273	1,298	2,364		1,123
Long-term bank loans	r115	0	0			0
Short-term bank loans	r116	10,273	1,298	2,364		0
Short-term accommodations	r117	0	0	0		1,123
Accruals	r118	0	0	7		0
Accrued expenses	r119			7
Deferred revenues	r120			0

Profit and loss accounts

Dec 31, 2013 The enclosed profit/loss account of 2013 company’s own data, -.

Dec 31, 2012 The enclosed profit/loss account of 2012 company’s own data, it is authenticated by the auditor.

Dec 31, 2011 The enclosed profit/loss account of 2011 from business register, -.

Dec 31, 2010 The enclosed profit/loss account of 2010 from business register, it is authenticated by the auditor.

Name	Ref.	31/12/2013 1000 CZK profit/loss account	31/12/2012 1000 CZK profit/loss account	31/12/2011 1000 CZK profit/loss account	31/12/2010 1000 CZK profit/loss account
Turnover	a1	383,088	431,203	399,552	386,379
Revenues from sold goods	a2	377,219	428,270	394,517	373,577
Expenses on sold goods	a3	218,576	255,371	199,956	207,234
Sale margin	a4	158,643	172,899	194,561	166,343
Production	a5	5,869	2,933	5,035	12,802
Revenues from own products and services	a6	5,869	2,933	5,035	12,802
Change in inventory of own products	a7			0
Capitalization	a8			0
Production consumption	a9	155,713	161,132	154,691	131,969
Consumption of material and energy	a10	15,505	15,035	11,385	9,354
Services	a11	140,208	146,097	143,306	122,615
Added value	a12	8,799	14,700	44,905	47,176
Personnel expenses	a13	9,106	9,572	8,997	9,668
Wages and salaries	a14	6,787	7,241	6,808	7,275
Renumeration of board members	a15			0
Social security expenses and health insurance	a16	2,131	2,179	2,063	2,381
Other social expenses	a17	188	152	126	12
Taxes and fees	a18	90	103	97	90
Depreciations of intangible and tangible assets	a19	3,901	3,869	2,941	3,942
Revenues from disposals of fixed assets and materials	a20	10	93	1,863	37
Revenues from disposals of fixed assets	a21	10	93	1,863	37
Revenues from disposals of materials	a22			0
Net book value of disposed fixed assets and materials	a23	0	0	909	0
Net book value of sold fixed assets	a24			909
Net book value of sold material	a25			0
Change in operating reserves and adjustments and complex deferred costs ( + / -)	a26	0	0	34
Other operating revenues	a27	2,674	2,956	2,900	2,751
Other operating expenses	a28	629	758	1,050	10,576
Transfer of operating revenues	a29			0
Transfer of operating expenses	a30			0
Operating profit / loss	a31	-2,243	3,447	35,640	25,688
Revenues from sales of securities and ownership interests	a32			0
Sold securities and ownership interests	a33			0
Revenues from long-term financial assets	a34			0	0
Revenues from shares in controlled and managed organizations and in accounting units with substantial influence	a35			0
Revenues from others securities and ownership interests	a36			0
Revenues from other long-term financial assets	a37			0
Revenues from short-term financial assets	a38			0
Expenses associated with financial assets	a39			0
Revenues from revaluation of securities and derivatives	a40			0
Cost of revaluation of securities and derivatives	a41			0
Change in financial reserves and adjustments ( + /-)	a42			0
Interest revenues	a43	3	9	53	105
Interest expenses	a44	134	256	111	184
Other financial revenues	a45	2,459	6,881	4,609	6,094
Other financial expenses	a46	9,493	11,266	10,055	8,756
Transfer of financial revenues	a47			0
Transfer of financial expenses	a48			0
Profit / loss from financial operations (transactions )	a49	-7,165	-4,632	-5,504	-2,741
Income tax on ordinary income	a50	0	1,513	3,274	2,882
Due tax	a51		1,494	3,274	2,882
Tax deferred	a52		19
Operating profit / loss ordinary activity	a53	-9,408	-2,698	26,862	20,065
Extraordinary revenues	a54	7,990	22,628	5,553	10,769
Extraordinary expenses	a55	4,776	5,169	10,744	5,804
Income tax on extraordinary income	a56			0	0
Due tax	a57			0
Tax deferred	a58			0
Operating profit / loss extraordinary activity	a59	3,214	17,459	-5,191	4,965
Transfer profit (loss ) to partners (+/-)	a60
Profit / loss of current accounting period (+/-)	a61	-6,194	14,761	21,671	25,030
Profit / loss before tax (+/-)	a62	-6,194	16,274	24,945	27,912
Operating cash flow			13,460	-18,023	42,081
Investment cash flow			-4,918	-5,042	-2,501
Financial cash flow			311	191	-1,474
Receivables after due date total
Receivables more than 360 days after due date
Receivables more than 180 days after due date
Receivables more than 90 days after due date
Receivables more than 60 days after due date
Receivables more than 30 days after due date
Receivables less than 30 days after due date
Liabilities after due date total
Liabilities more than 360 days after due date
Liabilities more than 180 days after due date
Liabilities more than 90 days after due date
Liabilities more than 60 days after due date
Liabilities more than 30 days after due date
Liabilities less than 30 days after due date

Financial Ratios

Name	Ref.	31/12/2013	31/12/2012	31/12/2011	31/12/2010
Return on total assets ROA (in %)	1	-2.61	7.43	10.94	15.41
Return on equity ROE (in %)	2	-3.82	9.60	15.51	20.05
Return on sales ROS (in %)	3	-1.62	3.77	6.24	7.22
Turnover of receivables (in days)	4	14.50	18.70	11.23	20.40
Turnover of liabilities (in days)	5	50.76	33.21	48.52	27.35
Turnover of inventories (days)	6	129.81	92.89	120.58	63.40
Net working capital (in ths. CZK)	7	113394.00	126258.00	116037.00	99662.00
Ratio of accounts payable to accounts receivable (in %)	8	36.48	63.78	38.65	64.49
Ratio of profit/loss to tangible assets (in%)	9	11.05	9.44	9.90	9.45
Current ratio	10	2.53	3.62	2.76	3.38
Quick ratio	11	0.69	1.31	0.74	1.78
Cash ratio	12	0.37	0.71	0.38	1.15
Debt ratio I (in %)	13	31.62	22.59	29.43	23.15
Debt ratio II (in %)	14	31.62	22.59	29.42	23.15

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.58.84
UK Pound	1	Rs.98.41
Euro	1	Rs.80.03

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	NNA

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.