MIRA INFORM REPORT

Report Date :

02.10.2014

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) :	30.06.2014
Date of Incorporation :	12.07.2004
Legal Form :	Limited Liability Company
Line of Business :	· Manufacture of printing machinery and equipment  · Metal processing
No. of Employees :	140

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Poland	B1	A2

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

Employment

2010:              125       employees 2011:              127       employees 2012:              138       employees 2013:              139       employees 2014:              140       employees

Turnover	2010	PLN	19 923 486,24
	2011	PLN	19 933 995,55
	2012	PLN	37 890 141,68
	2013	PLN	34 385 996,02
	01.01.2014 - 30.06.2014	PLN	18 198 000,00

Financial data

Source of financial data	Subject	Court	Court	Monitor Polski B
	F01	annual	annual	annual
Personal balance sheet as at	30.06.2014 (PLN)	31.12.2013 (PLN)	31.12.2012 (PLN)	31.12.2011 (PLN)
-A. Fixed assets......................	3 088 000,00	3 238 143,70	3 022 780,25	2 991 795,39
-  I.   Intangible assets.............		17 429,01	14 466,08	15 185,92
-    2. Goodwill......................				15 185,92
-    3. Other intangible assets.......			14 466,08
-    4. Prepayments for intangible assets................................		17 429,01
-  II.  Tangible assets...............		2 792 898,53	2 670 026,02	2 825 209,62
-    1. Fixed goods...................		2 757 715,12	2 670 026,02	2 798 581,74
-      b) buildings, premises, facilities............................		278 220,27	276 891,97	300 271,11
-      c) machinery and equipment.....		2 220 798,48	2 098 531,69	2 185 075,93
-      d) fleet of motor vehicles.....		62 743,79	88 965,60	115 970,41
-      e) other fixed goods...........		195 952,58	205 636,76	197 264,29
-    2. Fixed goods under construction..........................		6 947,16		26 627,88
-    3. Prepayments for fixed goods under construction....................		28 236,25
-V. Long-term prepayments and accrued income........................		427 816,16	338 288,15	151 399,85
-  1. Deferred tax assets.............		325 394,00	274 156,00	141 255,00
-  2. Other prepayments...............		102 422,16	64 132,15	10 144,85
-B. Current assets....................	18 973 000,00	18 126 546,39	17 064 774,14	15 051 293,87
-  I.   Stock.........................	10 277 000,00	11 125 078,77	9 571 112,63	9 333 324,77
-    1. Raw materials.................	7 254 000,00	7 282 495,72	6 200 476,62	5 175 713,30
-    2. Semi-finished products and work-in-progress......................	664 000,00	90 381,99	180 037,45	90 974,29
-    3. Finished products.............	2 252 000,00	3 645 327,75	3 156 592,67	4 006 595,56
-    4. Goods for re-sale.............	107 000,00	103 876,31	11 802,03	56 789,59
-    5. Advance payments .............		2 997,00	22 203,86	3 252,03
-  II. Short-term receivables.........	4 192 000,00	3 977 678,24	4 696 594,57	2 241 536,85
-    2. Other receivables ............	4 139 000,00	3 977 678,24	4 696 594,57	2 241 536,85
-      a) Due to deliveries and services with payment period:.........	3 577 000,00	3 261 628,56	3 320 365,08	1 720 852,35
-        - up to 12 months............		3 261 628,56	3 320 365,08	1 720 852,35
-      b) Due to taxes, subsidies, insurances, duties, etc...............	562 000,00	685 360,28	1 354 177,24	496 462,60
-      c) Other.......................		30 689,40	22 052,25	24 221,90
-  III. Short term investments........	4 225 000,00	2 870 728,10	2 675 701,41	3 335 532,65
-    1. Short-term financial assets...	4 225 000,00	2 870 728,10	2 675 701,41	3 335 532,65
-      c) cash and other liquid assets................................	4 225 000,00	2 870 728,10	2 675 701,41	3 335 532,65
-        - cash in hand and on bank account...............................	4 225 000,00	2 870 728,10	2 675 701,41	3 335 532,65
-IV. Short-term prepayments and accrued income........................	279 000,00	153 061,28	121 365,53	140 899,60
-D. Total assets......................	22 061 000,00	21 364 690,09	20 087 554,39	18 043 089,26
-A. Shareholders' equity..............	17 232 000,00	16 467 779,64	15 077 638,43	13 489 057,79
-  I.   Basic share capital...........		11 000 000,00	11 000 000,00	11 000 000,00
-  IV.  Statutory reserve capital.....		1 252 638,43
-  VI.  Other reserve capital.........		1 529 920,00	2 825 000,00	5 225 000,00
-  VII. Profit (loss) carried forward.			-2 735 942,21	-3 391 915,41
-  VIII. Net profit (loss)............	2 140 000,00	2 685 221,21	3 988 580,64	655 973,20
-B. Liabilities and reserves for liabilities...........................	4 829 000,00	4 896 910,45	5 009 915,96	4 554 031,47
-  I.   Reserves for liabilities......	989 000,00	851 024,29	694 267,76	448 892,64
-    1. Deferred income tax reserves..	150 000,00	150 344,00	136 631,00	116 410,00
-    2. Reserves for pensions and similar social payments...............		60 923,67	63 880,92	43 510,25
-      - long-term....................		56 988,69	60 497,64	40 582,64
-      - short-term...................		3 934,98	3 383,28	2 927,61
-    3. Other reserves................		639 756,62	493 755,84	288 972,39
-      - long-term....................		285 946,28	301 995,86	120 669,61
-      - short-term...................		353 810,34	191 759,98	168 302,78
-II.  Long-term liabilities...........	200 000,00	115 650,75		520 849,88
-  2. Other liabilities...............		115 650,75		520 849,88
-    c) Other financial liabilities...		115 650,75		520 849,88
-III. Short-term liabilities..........	3 609 000,00	3 895 710,62	4 299 936,22	3 563 704,61
-  2. Other liabilities...............	3 538 000,00	3 834 895,97	4 259 445,61	3 536 109,95
-    c) Other financial liabilities...		70 343,98	473 848,26	282 176,14
-    d)Due to deliveries and services with payment period:.........	2 082 000,00	1 674 914,88	2 325 839,74	1 488 873,72
-      - up to 12 months..............		1 674 914,88	2 325 839,74	1 488 873,72
-    e) Advances received.............	668 000,00	1 377 256,07	719 942,07	1 076 588,94
-    g) Due to taxes, subsidies, insurances, duties, etc...............	483 000,00	404 053,08	450 257,75	338 832,27
-    h) Due to salaries...............	305 000,00	294 703,40	282 507,11	264 522,59
-    i) Other.........................		13 624,56	7 050,68	85 116,29
-  3. Special funds...................		60 814,65	40 490,61	27 594,66
-IV.  Accruals and deferred income....	31 000,00	34 524,79	15 711,98	20 584,34
-  2. Other accruals..................		34 524,79	15 711,98	20 584,34
-    - long-term......................		27 342,08	10 839,62	15 711,98
-    - short-term.....................		7 182,71	4 872,36	4 872,36
-D. Total liabilities.................	22 061 000,00	21 364 690,09	20 087 554,39	18 043 089,26
Source of financial data	Subject	Court	Court	Monitor Polski B
	F01	annual	annual	annual
individual PROFIT AND LOSS ACCOUNT	- 01.01.2014- 30.06.2014 (PLN)	01.01.2013- 31.12.2013 (PLN)	01.01.2012- 31.12.2012 (PLN)	01.01.2011- 31.12.2011 (PLN)
-A. Income from sales and similar.....	18 198 000,00	34 385 996,02	37 890 141,68	19 933 995,55
-  I.   Net income on sales...........	16 361 000,00	28 486 636,98	32 779 033,67	15 589 239,03
-  II.  Change in value of stock ( +, -).................................	-934 000,00	338 537,30	-951 640,62	714 100,52
-  III. Sales of goods for own use....	1 781 000,00	3 991 601,19	3 980 211,52	2 194 811,31
-  IV.  Income from sales of goods and materials.........................	990 000,00	1 569 220,55	2 082 537,11	1 435 844,69
-B. Operational costs.................	15 556 000,00	30 989 525,66	32 549 552,85	19 211 478,67
-  I.   Depreciation..................	269 000,00	520 921,99	445 014,67	422 337,03
-  II.  Materials and energy..........	8 092 000,00	15 746 490,71	16 196 726,81	9 248 159,81
-  III. Third party services..........	3 064 000,00	6 991 750,64	8 157 345,62	2 931 572,15
-  IV.  Taxes and duties..............	73 000,00	182 154,25	249 326,04	152 404,55
-  V.   Salaries and wages............	2 514 000,00	4 974 921,52	4 767 134,01	4 269 018,55
-  VI.  Social security...............	705 000,00	1 211 466,15	1 151 399,72	912 337,39
-  VII. Other.........................	115 000,00	394 018,28	334 087,86	267 818,81
-  VIII.Costs of goods and materials sold..................................	724 000,00	967 802,12	1 248 518,12	1 007 830,38
-C. Profit on sale....................	2 642 000,00	3 396 470,36	5 340 588,83	722 516,88
-D. Other operating incomes...........	4 000,00	650 336,18	197 009,45	35 837,10
-  III. Other operating incomes.......	4 000,00	650 336,18	197 009,45	35 837,10
-E. Other operating costs.............	22 000,00	665 910,37	533 984,92	204 030,21
-  I.   Loss on disposal of non-finacial assets...................		6 778,93		898,07
-  II.  Goodwill revaluation..........		621 481,09	463 578,27	198 852,58
-  III. Other operating costs.........	22 000,00	37 650,35	70 406,65	4 279,56
-F. Profit on operating activities....	2 624 000,00	3 380 896,17	5 003 613,36	554 323,77
-G. Financial incomes.................	32 000,00	47 655,49	53 630,75	114 043,56
-  II.  Interest received.............	5 000,00	47 655,49	53 630,75	38 164,97
-  V.   Other.........................	27 000,00			75 878,59
-H. Financial costs...................	13 000,00	106 437,45	251 338,47	27 072,13
-  I.   Interest......................	13 000,00	29 068,50	29 007,12	27 072,13
-  IV.  Other.........................		77 368,95	222 331,35
-I. Profit on economic activity.......	2 643 000,00	3 322 114,21	4 805 905,64	641 295,20
-K. Gross profit......................	2 643 000,00	3 322 114,21	4 805 905,64	641 295,20
-L. Corporation tax...................	503 000,00	636 893,00	817 325,00	-14 678,00
-  a) current part....................	503 000,00
-N. Net profit........................	2 140 000,00	2 685 221,21	3 988 580,64	655 973,20

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

Ratios	01.01.2014- 30.06.2014	01.01.2013- 31.12.2013	01.01.2012- 31.12.2012	01.01.2011- 31.12.2011
Current ratio	5,26	4,65	3,97	4,22
Quick ratio	2,33	1,76	1,71	1,56
Immediate ratio	1,17	0,74	0,62	0,94
Return on sale	12,33	8,93	11,44	3,85
Return on assets	9,70	12,57	19,86	3,64
Return on equity	12,42	16,31	26,45	4,86
Average trade debtors' days	43,73	48,31	49,31	48,06
Average stock turnover's days	107,21	135,10	100,48	200,10
average payables payment period	37,65	47,31	45,14	76,40
Total indebtedness ratio	21,89	22,92	24,94	25,24

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 :	30.06.2014	31.12.2013	31.12.2012	31.12.2011	31.12.2010
Current ratio............................	1,53	1,54	1,31	1,16	1,35
Quick ratio..............................	0,91	0,92	0,76	0,79	0,88
Immediate ratio..........................	0,28	0,27	0,18	0,16	0,19
Return on sale...........................	5,08	4,65	2,79	3,61	1,19
Return on assets.........................	2,32	4,87	2,90	3,75	1,50
Return on equity.........................	4,43	9,91	6,42	8,94	3,50
Average trade debtors' days..............	74,24	64,18	70,37	83,91	71,74
Average stock turnover's days............	73,32	66,40	67,67	48,31	49,87
average payables payment period..........	128,97	112,66	132,00	144,76	109,03
Total indebtedness ratio.................	47,77	50,86	54,89	58,01	57,15
Percent share in the examinated group of companies with net profit.............	72,10	83,70	78,70	72,70	70,00
Sales/revenue per employee in th. PLN....	118,05	260,47	233,97	221,81	185,76
Average sales/revenue per company in th. PLN..................................	14 300,47	31 261,95	27 802,26	26 007,30	22 677,98
according to the Central Statistical Office

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 31.12.2013	PLN	278 220,27
	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 08.09.2014 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 -  HOFF PRODUCTS SPÓŁKA Z O.O. NIP 9930277775, ul. Wolicka 11, 32-830 Wojnicz   · proxy -  EKOSYSTEM sp. z o.o. NIP 8730005735, ul. Tuchowska 25A/7, 33-100 Tarnów   · shareholder: PLN 7 000,00 (14,00%) 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: 08.09.2014.

Certificates:

ISO 9001:2008

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

Payment Manner

Nothing detrimental noted.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.75
UK Pound	1	Rs.100.07
Euro	1	Rs.77.95

INFORMATION DETAILS

Analysis Done by :	DIV
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.