MIRA INFORM REPORT

Report Date :

06.09.2014

IDENTIFICATION DETAILS

Name :	BORUTA-ZACHEM SA
Registered Office :	Al. Wojska Polskiego 65, 85-825 Bydgoszcz
Country :	Poland
Financials (as on) :	30.06.2014
Date of Incorporation :	11.01.2005
Legal Form :	Joint Stock Company
Line of Business :	· Manufacture of dyes and pigments for chemical and cosmetic industry Scientific researches in the mentioned scope · Agents involved in the sale of fuels, ores, metals and industrial chemicals · Cargo handling and storage of other products · Real estate renting Real estate renting
No of Employees :	67

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

Maximum Credit Limit :	PLN 500 000, 00
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 01, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Poland	B	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

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

BORUTA-ZACHEM SA

Al. Wojska Polskiego 65

85-825 Bydgoszcz

Phone:    52 3748240

Fax:      52 3610962

E-mail:   bydgoszcz@boruta-zachem.pl

zgierz@boruta-zachem.pl

Website:  www.boruta-zachem.pl

Legal form	Joint Stock Company
Stat.no.	093224721
Tax ID	PL 9532489839

Establishment	11.01.2005 as Limited liability company
	27.08.2013  as Joint Stock Company
Changes of names and addresses	02.03.2005 ZACHEM BARWNIKI Sp. z o.o.
	01.12.2009 BORUTA - ZACHEM KOLOR Sp. z o.o.
	05.11.2013 BORUTA - ZACHEM KOLOR SA
	10.04.2014 BORUTA-ZACHEM SA

Registration:

05.11.2013, District Court Bydgoszcz, XIII Department, KRS 482497 Data concerning previous registrations: 02.03.2005, District Court Bydgoszcz, XIII Department, KRS 229692

Shareholders	Midorana Investments Ltd.
	Percent of owned shares	84.22%
	share in total amount of votes	84.22%
	shareholders' list as at 12.08.2014

Share capital		PLN 13 957 515,00
	Share capital divided into 139575150 shares of PLN 0,10 each
	Series of shares 139575150 type Not preference shares A
	Changes of initial capital
	- since 19.11.2010  until 24.10.2012  the capital estimated	PLN 15 945 930,00
	- since 01.12.2009  until 19.11.2010  the capital estimated	PLN 20 105 000,00
	- since 23.04.2009  until 01.12.2009  the capital estimated	PLN 4 428 000,00
	- since 02.03.2005  until 23.04.2009  the capital estimated	PLN 1 200 000,00
	An in-kind contribution has been made and valued at including contribution in kind of value PLN 1 000 000,00 in form of dyes	PLN  3 092 000,00

Management	Wiesław Jan Sażała , personal ID no. (PESEL) 57042109774, ul. Boksytowa 8, 91-360 Łódź  - president Marcin Henryk Pawlikowski , personal ID no. (PESEL) 80093004354, ul. Wyzwolenia 105/13, 85-790 Bydgoszcz  - vice president
	Proxies: Włodzimierz Soiński , personal ID no. (PESEL) 43061702539  - joint proxy with a board member
	Representation: since 05.11.2013  If one man board – member of the board of directors individually. If numerous managers – two members of the board of directors jointly or member of the board of directors and proxy jointly.

Supervisory board

Grzegorz Andrzej Borowik , personal ID no. (PESEL) 48101104098 Andrzej Olaf Foremny , personal ID no. (PESEL) 83041500094 Paweł Makówka , personal ID no. (PESEL) 75053115135 Karolina Nowakowska , personal ID no. (PESEL) 81050603306 Beata Alicja Peszyńska , personal ID no. (PESEL) 67081308627 Cezary Oskar Pawlikowski , personal ID no. (PESEL) 92081314871

Main activity	Manufacture of dyes and pigments for chemical and cosmetic industry Scientific researches in the mentioned scope
	Branches NACE 2007:
	Manufacture of dyes and pigments	(C.20.12.Z)
	Manufacture of other inorganic basic chemicals	(C.20.13.Z)
	Agents involved in the sale of fuels, ores, metals and industrial chemicals	(G.46.12.Z)
	Cargo handling and storage of other products	(H.52.10.B)
	Real estate renting	(L.68.20.Z)
	Other technical testing and analysis	(M.71.20.B)

Employment		2010:              80        employees 2011:              76        employees 2012:              72        employees 2013:              64        employees 30.06.2014:        67        employees
Turnover	2010		PLN	17 693 045,72
	2011		PLN	17 608 242,47
	2012		PLN	17 995 454,31
	2013		PLN	18 782 756,34
	01.01.2014 - 30.06.2014		PLN	10 412 350,63

Financial statements

Source of financial data	Subject	Subject	Court	Monitor Polski B
	periodic	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......................	8 744 239,23	8 253 369,70	7 461 030,44	8 245 304,31
-  I.   Intangible assets.............	2 683 434,28	2 074 293,58	11 040,37	16 800,25
-    3. Other intangible assets.......		5 280,49	11 040,37	16 800,25
-    4. Prepayments for intangible assets................................		2 069 013,09
-  II.  Tangible assets...............	6 010 800,95	6 105 409,12	7 215 477,07	7 940 751,06
-    1. Fixed goods...................		6 102 909,12	7 212 977,07	7 916 883,09
-      a) land........................		989 022,46	1 418 348,94	1 447 395,42
-      b) buildings, premises, facilities............................		4 107 602,62	4 768 073,61	5 231 646,83
-      c) machinery and equipment.....		596 313,84	695 023,96	822 417,66
-      d) fleet of motor vehicles.....		361 251,41	272 651,16	332 097,41
-      e) other fixed goods...........		48 718,79	58 879,40	83 325,77
-    2. Fixed goods under construction..........................		2 500,00	2 500,00	23 867,97
-V. Long-term prepayments and accrued income........................	50 004,00	73 667,00	234 513,00	287 753,00
-  1. Deferred tax assets.............		73 667,00	234 513,00	287 753,00
-B. Current assets....................	11 206 105,04	11 615 923,88	10 515 039,65	12 644 336,79
-  I.   Stock.........................	5 164 042,64	4 854 547,50	5 125 425,33	5 353 750,35
-    1. Raw materials.................		886 888,52	1 498 806,13	1 765 875,55
-    3. Finished products.............		3 815 564,52	3 612 149,17	3 582 614,44
-    4. Goods for re-sale.............		152 094,46	14 470,03	5 260,36
-  II. Short-term receivables.........	3 770 009,30	3 543 973,27	2 521 965,15	2 585 713,71
-    1. Receivables from affiliated companies.............................				2 121,93
-      a) Due to deliveries and services with payment period:.........				2 121,93
-        - up to 12 months............				2 121,93
-    2. Other receivables ............		3 543 973,27	2 521 965,15	2 583 591,78
-      a) Due to deliveries and services with payment period:.........		3 174 187,24	2 394 439,60	2 397 278,59
-        - up to 12 months............		3 174 187,24	2 394 439,60	2 397 278,59
-      b) Due to taxes, subsidies, insurances, duties, etc...............		94 537,00	73 360,00	160 326,00
-      c) Other.......................		275 249,03	54 165,55	25 987,19
-  III. Short term investments........	2 188 168,82	3 189 310,72	2 842 131,51	4 675 943,24
-    1. Short-term financial assets...		3 189 310,72	2 842 131,51	4 675 943,24
-      a) in affiliated companies.....				2 000 000,00
-        - granted loans..............				2 000 000,00
-      c) cash and other liquid assets................................		3 189 310,72	2 842 131,51	2 675 943,24
-        - cash in hand and on bank account...............................		117 557,73	129 599,56	375 039,13
-        - other liquid assets........		3 071 752,99	2 712 531,95	2 300 904,11
-IV. Short-term prepayments and accrued income........................	83 884,28	28 092,39	25 517,66	28 929,49
-D. Total assets......................	19 950 344,27	19 869 293,58	17 976 070,09	20 889 641,10
-A. Shareholders' equity..............	16 165 289,29	15 789 719,88	14 485 946,75	16 520 529,88
-  I.   Basic share capital...........	13 957 515,00	13 957 515,00	13 957 515,00	15 945 930,00
-  IV.  Statutory reserve capital.....	1 832 204,88	528 431,75	474 599,88	290 915,88
-  VIII. Net profit (loss)............	375 569,41	1 303 773,13	53 831,87	283 684,00
-B. Liabilities and reserves for liabilities...........................	3 785 054,98	4 079 573,70	3 490 123,34	4 369 111,22
-  I.   Reserves for liabilities......	374 360,75	430 625,00	1 037 785,91	1 157 744,38
-    1. Deferred income tax reserves..		304 336,00	162 620,00	383 692,00
-    2. Reserves for pensions and similar social payments...............		118 289,00	872 694,00	763 524,00
-      - long-term....................		94 674,00	714 347,00	687 136,00
-      - short-term...................		23 615,00	158 347,00	76 388,00
-    3. Other reserves................		8 000,00	2 471,91	10 528,38
-      - short-term...................		8 000,00	2 471,91	10 528,38
-II.  Long-term liabilities...........		0,00	0,00
-III. Short-term liabilities..........	1 381 515,43	1 572 543,36	1 152 579,01	1 820 494,36
-  1. Due to affiliated companies.....			51 261,17	39 433,94
-    a) Due to deliveries and services with payment period:.........			51 261,17	39 433,94
-      - up to 12 months..............			51 261,17	39 433,94
-  2. Other liabilities...............		1 563 091,03	1 090 854,21	1 765 827,42
-    d)Due to deliveries and services with payment period:.........		1 093 739,96	946 054,16	1 640 690,69
-      - up to 12 months..............		1 093 739,96	946 054,16	1 640 690,69
-    g) Due to taxes, subsidies, insurances, duties, etc...............		207 299,17	121 344,15	119 737,34
-    i) Other.........................		262 051,90	23 455,90	5 399,39
-  3. Special funds...................		9 452,33	10 463,63	15 233,00
-IV.  Accruals and deferred income....	2 029 178,80	2 076 405,34	1 299 758,42	1 390 872,48
-  1. Negative company's worth........		1 196 405,34	1 290 858,42	1 385 311,50
-  2. Other accruals..................		880 000,00	8 900,00	5 560,98
-    - long-term......................		880 000,00
-    - short-term.....................			8 900,00	5 560,98
-D. Total liabilities.................	19 950 344,27	19 869 293,58	17 976 070,09	20 889 641,10
Source of financial data	Subject
	periodic
individual PROFIT AND LOSS ACCOUNT	- 01.01.2014- 30.06.2014 (PLN)
-A. Income from sales and similar.....	10 412 350,63
-B.Cost of products, goods sold.......	7 893 680,99
-C. Gross profit on sale..............	2 518 669,64
-D. Costs of sale.....................	952 774,56
-E. General management costs..........	1 143 453,92
-F. Profit on sale....................	422 441,16
-G. Other operating incomes...........	47 620,39
-H. Other operating costs.............	4 008,09
-I. Profit on operating activities....	466 053,46
-J. Financial incomes.................	21 713,64
-K. Financial costs...................	19 705,69
-L. Gross profit on economic activity.	468 061,41
-N. Gross profit......................	468 061,41
-O. Corporation tax...................	92 492,00
-R. Net profit........................	375 569,41
Source of financial data	Subject	Court	Monitor Polski B
	annual	annual	annual
individual PROFIT AND LOSS ACCOUNT	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.....	18 782 756,34	17 995 454,31	17 608 242,47
-  - including related companies......		5 397,99	57 507,69
-  I.   Net income on sales...........	17 809 904,51	17 724 522,92	17 833 617,53
-  II.  Change in value of stock ( +, -).................................	58 094,41	17 961,28	-466 202,76
-  IV.  Income from sales of goods and materials.........................	914 757,42	252 970,11	240 827,70
-B. Operational costs.................	18 181 047,35	17 149 499,33	17 397 112,10
-  I.   Depreciation..................	506 428,82	514 446,20	548 405,52
-  II.  Materials and energy..........	10 695 595,10	10 014 245,62	10 279 855,02
-  III. Third party services..........	1 728 847,18	1 456 198,31	1 461 885,16
-  IV.  Taxes and duties..............	586 750,58	609 716,05	618 899,72
-  V.   Salaries and wages............	3 126 370,37	3 550 682,63	3 521 280,19
-  VI.  Social security...............	704 013,60	739 392,34	683 185,56
-  VII. Other.........................	153 281,92	67 261,88	78 884,44
-  VIII.Costs of goods and materials sold..................................	679 759,78	197 556,30	204 716,49
-C. Profit on sale....................	601 708,99	845 954,98	211 130,37
-D. Other operating incomes...........	959 165,48	177 974,89	310 675,74
-  I.   Incomes from disposal non-financial assets..................	15 126,87
-  III. Other operating incomes.......	944 038,61	177 974,89	310 675,74
-E. Other operating costs.............	65 968,04	1 189 640,36	269 021,86
-  I.   Loss on disposal of non-finacial assets...................		11 687,50	20 822,05
-  II.  Goodwill revaluation..........	54 590,74	952 532,28	124 338,55
-  III. Other operating costs.........	11 377,30	225 420,58	123 861,26
-F. Profit on operating activities....	1 494 906,43		252 784,25
-F. Loss on operating activities......		165 710,49
-G. Financial incomes.................	143 289,78	236 917,83	162 609,51
-  II.  Interest received.............	119 435,42	228 417,54	156 659,90
-    - including related companies....			51 023,02
-  V.   Other.........................	23 854,36	8 500,29	5 949,61
-H. Financial costs...................	31 861,08	16 216,47	141 487,76
-  I.   Interest......................	31 861,08	11 962,44	14 745,87
-  IV.  Other.........................		4 254,03	126 741,89
-I. Profit on economic activity.......	1 606 335,13	54 990,87	273 906,00
-K. Gross profit......................	1 606 335,13	54 990,87	273 906,00
-L. Corporation tax...................	302 562,00	1 159,00	-9 778,00
-N. Net profit........................	1 303 773,13	53 831,87	283 684,00

AUDITOR

Balance sheet as at 31.12.2013
Kancelaria Consultingowo-Usługowa "Financier" Zenon Zbierski, Tryszczyn,, 86-011 Wtelno	No. 648

Expert auditor  Zbierski Zenon

No. 4595

Balance sheet as at 31.12.2011
Kancelaria Consultingowo-Usługowa "Financier" Zenon Zbierski, Tryszczyn,, 86-011 Wtelno	No. 648

Expert auditor  Zbierski Zenon

No. 4595

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	8,11	7,39	9,12	6,95
Quick ratio	4,31	4,28	4,65	3,99
Immediate ratio		2,03	2,47	1,47
Return on sale	3,61	6,96	0,30	1,57
Return on assets	1,88	6,56	0,30	1,36
Return on equity	2,32	8,26	0,37	1,72
Average trade debtors' days	65,53	69,08	51,34	52,22
Average stock turnover's days	89,77	94,63	104,35	108,12
average payables payment period	24,02	30,65	23,47	36,76
Total indebtedness ratio	18,97	20,53	19,42	20,92

Locations:

seat: al. Wojska Polskiego 65, 85-825 Bydgoszcz Phone:                   52 3748240 Fax:                     52 3610962 E-mail:                  bydgoszcz@boruta-zachem.pl Website:                 www.boruta-zachem.pl office: ul. Andrzeja Struga 10, 95-100 Zgierz Phone:                   42 7161152 Fax:                     42 7151153 E-mail:                  zgierz@boruta-zachem.pl

Real Estate	al. Wojska Polskiego 65, 85-825 Bydgoszcz perpetual usufruct, plot no. 7/14, of area 10 229 sq.m.  production plant  Zgierz land in perpetual usufruct, building considered as ownership, land of area 1,61 ha (Land and Mortgage Register LD1G/00063873/7)
	Book value of buildings as at 31.12.2013	PLN	4 107 602,62
	Book value of lands as at 31.12.2013	PLN	989 022,46
	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 28.07.2014 there are no shares in other companies.

Connections:

The companies in which the said company was consolidated in the consolidated financial statement:  INFRASTRUKTURA KAPUŚCISKA SA w upadłości likwidacyjnej, al. Wojska Polskiego 65, 85-825 Bydgoszcz annual 01.01.2010 - 31.12.2010 annual 01.01.2009 - 31.12.2009 annual 01.01.2008 - 31.12.2008 Marcin Henryk Pawlikowski , personal ID no. (PESEL) 80093004354 -  AGTES SA NIP PL 5213226400, ul. Mangalia 4, 02-758 Warszawa   · president Włodzimierz Soiński , personal ID no. (PESEL) 43061702539 -  MIFARMEX Sp. z o.o. NIP 5260035222, ul. Prosta 32, 00-838 Warszawa   · vice president -  FUNDACJA PRO HISTORIA, ul. Kolejowa 15/17, 01-217 Warszawa   · member of board of directors Grzegorz Andrzej Borowik , personal ID no. (PESEL) 48101104098 -  JARMUK Sp.z o.o. NIP 9532350254, ul. Sieroca 21/003, 85-113 Bydgoszcz   · president Paweł Makówka , personal ID no. (PESEL) 75053115135 -  "TAMEX" sp. z o.o. NIP 9511743385, ul. Wełniany Rynek 11, 85-036 Bydgoszcz   · shareholder: PLN 2 000,00 (50,00%)

Data concerning connections are valid as at: 28.07.2014.

Taking overs	01.12.2009 (Entry date) - merger BORUTA - ZACHEM KOLOR Sp. z o.o., al. Wojska Polskiego 65, 85-825 Bydgoszcz (as taking over)  BORUTA-KOLOR Sp. z o.o. KRS 3766, ul. Struga 10, 95-100 Zgierz (as taken over)
General information	Since 02.07.2014 noDescription Newconnect
	The subject company was founded on the basis of the department "Zakład Barwników" of the company Zakłady Chemiczne ZACHEM SA in Bydgoszcz.

Banks

RAIFFEISEN BANK POLSKA SA O. w Łodzi ul.Żeligowskiego 32/34  (17501093) ul. Żeligowskiego 32/34, 90-643 Łódź Acc.no. 87175010930000000001163318

Payment Manner	Nothing detrimental noted.	(27)
Credit capability	Business connections appear permissible Maximum credit PLN  500 000,00	(32)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.44
UK Pound	1	Rs.98.64
Euro	1	Rs.78.20

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	TPT

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.