MIRA INFORM REPORT

Report Date :

20.09.2014

IDENTIFICATION DETAILS

Name :	DBN SP. Z O.O.
Registered Office :	Ul. Żwirki i Wigury 56 D 43-190 Mikołów
Country :	Poland
Financials (as on) :	31.12.2013
Date of Incorporation :	01.10.1995
Com. Reg. No.:
Legal Form :	Limited liability company
Line of Business :	· Wholesale and retail sale of metal products, computer equipment, software · Software consultancy services · Metal processing services
No. of Employees :	23

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

DBN SP. Z O.O.

ul. Żwirki i Wigury 56 D
43-190 Mikołów

Phone:    32 2180740

32 3260050

Fax:      32 2180750

E-mail:   biuro@dbn.pl

Website:  www.dbn.pl

Company summary

Legal form	Limited liability company
Stat.no.	272692234
Tax ID	PL 6351005575

Establishment	01.10.1995 as Partnership
	14.05.2001  as Limited liability company

Registration:

12.12.2001, District Court Katowice, VIII Department, KRS 70770 Data concerning previous registrations: 01.10.1995, Municipal Office Mikołów, No. 4621 Aleksander Słomka  01.04.2001 Municipal Office Mikołów No. 7689  Maciej Herjan  01.04.2001 Municipal Office Mikołów No. 7690

Shareholders	Maciej Herjan , personal ID no. (PESEL) 69021212014, ul. Baziowa 18, 43-190 Mikołów	PLN	83 150,00 50,00%
	Aleksander Słomka , personal ID no. (PESEL) 69063008770, os. Kościuszki 103/27, 43-170 Łaziska Górne	PLN	83 150,00 50,00%
	list entered to NCR /KRS/ on  12.12.2001

Initial Capital		PLN 166 300,00
	Initial capital divided into 100 shares of PLN 1 663,00 each
	An in-kind contribution has been made and valued at	PLN  166 300,00

Management	Aleksander Słomka , personal ID no. (PESEL) 69063008770, os. Kościuszki 103/27, 43-170 Łaziska Górne  - president Maciej Herjan , personal ID no. (PESEL) 69021212014, ul. Baziowa 18, 43-190 Mikołów  - vice president
	Representation: To sign and file statements and incur obligations on behalf of the company: - up to the amount PLN 100.000 - each member of the board of directors individually - above the amount PLN 100.000 - two members of the board of directors jointly.

Main activity	Wholesale and retail sale of metal products, computer equipment, software Software consultancy services Metal processing services
	Branches NACE 2007:
	Other wholesale
	Other wholesale of machines
	General mechanical engineering
	Software consultancy and supply

Employment

2008:              19        employees 2009:              10 to 49  employees  2010:              10 to 49  employees  2012:              22        employees 2013:              23        employees

Turnover	2009	PLN	9 098 430,69
	2010	PLN	13 402 871,48
	2011	PLN	16 852 725,58
	2012	PLN	17 313 000,00
	2013	PLN	16 728 675,06

Financial statements

Source of financial data	Subject	Subject	Court	Court
	annual	annual	annual	annual
Personal balance sheet as at	31.12.2013 (PLN)	31.12.2012 (PLN)	31.12.2011 (PLN)	31.12.2010 (PLN)
-A. Fixed assets......................	4 697 161,57	4 142 921,49	2 183 657,73	1 780 729,54
-  II.  Tangible assets...............	4 697 161,57	4 142 921,49	2 181 198,58	1 778 270,39
-    1. Fixed goods...................	4 668 361,57	1 985 128,06	2 053 992,23	1 704 576,78
-      a) land........................	283 487,68	283 487,68	241 151,68	241 151,68
-      b) buildings, premises, facilities............................	3 096 766,02	1 022 385,40	1 052 552,22	1 082 719,04
-      c) machinery and equipment.....	611 204,92	374 946,54	453 163,52	248 538,36
-      d) fleet of motor vehicles.....	588 941,72	304 308,44	307 124,81	127 101,05
-      e) other fixed goods...........	87 961,23			5 066,65
-    2. Fixed goods under construction..........................	28 800,00	2 157 793,43	127 206,35	73 693,61
-  IV.  Long term investments.........			2 459,15	2 459,15
-    3. Long term financial assets....			2 459,15	2 459,15
-      b) Other.......................			2 459,15	2 459,15
-        - participations or shares...			2 459,15	2 459,15
-B. Current assets....................	4 661 226,27	4 956 928,31	4 781 500,32	4 370 855,58
-  I.   Stock.........................	2 054 167,99	1 898 866,88	1 599 818,98	1 410 528,32
-    4. Goods for re-sale.............	1 951 067,23	1 882 837,92	1 599 574,87	1 410 528,32
-    5. Advance payments .............	103 100,76	16 028,96	244,11
-  II. Short-term receivables.........	2 338 917,86	2 755 675,84	3 052 010,56	2 697 805,63
-    2. Other receivables ............	2 338 917,86	2 755 675,84	3 052 010,56	2 697 805,63
-      a) Due to deliveries and services with payment period:.........	2 321 560,98	2 755 675,84	2 982 023,11	2 626 074,05
-        - up to 12 months............	2 321 320,98	2 755 435,84	2 981 783,11	2 626 074,05
-        - above 12 months............	240,00	240,00	240,00
-      b) Due to taxes, subsidies, insurances, duties, etc...............	17 356,88		5,87
-      d) Received through judicial proceedings...........................			69 981,58	71 731,58
-  III. Short term investments........	216 237,43	274 983,10	128 172,72	259 104,80
-    1. Short-term financial assets...	216 237,43	274 983,10	128 172,72	259 104,80
-      c) cash and other liquid assets................................	216 237,43	274 983,10	128 172,72	259 104,80
-        - cash in hand and on bank account...............................	216 237,43	107 491,84	127 172,72	49 104,80
-        - other liquid assets........		167 491,26	1 000,00	210 000,00
-IV. Short-term prepayments and accrued income........................	51 902,99	27 402,49	1 498,06	3 416,83
-D. Total assets......................	9 358 387,84	9 099 849,80	6 965 158,05	6 151 585,12
-A. Shareholders' equity..............	4 367 707,12	4 139 345,99	3 301 280,37	2 866 791,68
-  I.   Basic share capital...........	166 300,00	166 300,00	166 300,00	166 300,00
-  IV.  Statutory reserve capital.....	3 773 045,99	3 134 980,37	2 600 491,68	2 206 619,78
-  VIII. Net profit (loss)............	428 361,13	838 065,62	534 488,69	493 871,90
-B. Liabilities and reserves for liabilities...........................	4 990 680,72	4 960 503,81	3 663 877,68	3 284 793,44
-  I.   Reserves for liabilities......	8 037,09		23,00	22,00
-    3. Other reserves................	8 037,09		23,00	22,00
-      - short-term...................	8 037,09		23,00	22,00
-II.  Long-term liabilities...........	2 040 389,35	2 019 116,97	676 113,43	625 703,61
-  2. Other liabilities...............	2 040 389,35	2 019 116,97	676 113,43	625 703,61
-    a) Loans.........................	1 655 044,00	1 883 716,00	350 000,00	455 000,00
-    c) Other financial liabilities...	385 345,35	135 400,97	326 113,43	170 703,61
-III. Short-term liabilities..........	2 942 254,28	2 941 386,84	2 987 741,25	2 659 067,83
-  2. Other liabilities...............	2 942 254,28	2 941 386,84	2 987 741,25	2 659 067,83
-    a) Loans.........................	746 373,49	228 672,00	401 523,17	105 000,00
-    c) Other financial liabilities...	171 827,63	189 203,23	186 037,46	82 263,37
-    d)Due to deliveries and services with payment period:.........	1 785 555,40	2 177 940,74	2 063 712,18	2 149 037,90
-      - up to 12 months..............	1 785 555,40	2 177 940,74	2 063 712,18	2 149 037,90
-    g) Due to taxes, subsidies, insurances, duties, etc...............	133 105,61	272 611,14	269 989,62	264 841,20
-    h) Due to salaries...............	89 580,05	71 933,88	64 331,89	57 143,76
-    i) Other.........................	15 812,10	1 025,85	2 146,93	781,60
-C. Other Liabilities.................		0,00
-D. Total liabilities.................	9 358 387,84	9 099 849,80	6 965 158,05	6 151 585,12
Source of financial data	Subject	Subject	Court	Court
	annual	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)	01.01.2010- 31.12.2010 (PLN)
-A. Income from sales and similar.....	16 728 675,06	17 312 983,68	16 852 725,58	13 402 871,48
-  I.   Net income on sales...........	349 393,57	251 351,96	243 434,70	242 827,38
-  IV.  Income from sales of goods and materials.........................	16 379 281,49	17 061 631,72	16 609 290,88	13 160 044,10
-B. Operational costs.................	16 027 655,17	16 058 386,79	16 066 474,62	12 698 255,42
-  I.   Depreciation..................	308 447,37	188 200,17	161 523,65	126 015,73
-  II.  Materials and energy..........	448 898,64	477 419,10	387 233,40	398 809,63
-  III. Third party services..........	416 458,59	345 836,60	625 801,97	539 108,49
-  IV.  Taxes and duties..............	57 758,23	57 829,06	53 455,53	46 521,48
-  V.   Salaries and wages............	1 502 672,51	1 245 223,28	1 019 203,07	896 573,84
-  VI.  Social security...............	290 900,25	242 018,53	190 764,13	166 432,16
-  VII. Other.........................	169 939,94	58 672,18	91 987,42	108 005,60
-  VIII.Costs of goods and materials sold..................................	12 832 579,64	13 443 187,87	13 536 505,45	10 416 788,49
-C. Profit on sale....................	701 019,89	1 254 596,89	786 250,96	704 616,06
-D. Other operating incomes...........	95 290,47	60 610,31	194 931,19	28 971,16
-  I.   Incomes from disposal non-financial assets..................	2 600,00	5 691,06	66 861,79
-  III. Other operating incomes.......	92 690,47	54 919,25	128 069,40	28 971,16
-E. Other operating costs.............	113 551,80	217 207,42	198 063,90	74 701,96
-  III. Other operating costs.........	113 551,80	217 207,42	198 063,90	74 701,96
-F. Profit on operating activities....	682 758,56	1 097 999,78	783 118,25	658 885,26
-G. Financial incomes.................	4 648,86	15 492,15	895,75	26 292,55
-  II.  Interest received.............	1 129,41	1 009,19	895,75	26 292,55
-  V.   Other.........................	3 519,45	14 482,96
-H. Financial costs...................	147 183,29	73 669,31	120 305,31	71 158,91
-  I.   Interest......................	137 171,77	73 669,31	82 264,00	68 305,91
-  IV.  Other.........................	10 011,52		38 041,31	2 853,00
-I. Profit on economic activity.......	540 224,13	1 039 822,62	663 708,69	614 018,90
-K. Gross profit......................	540 224,13	1 039 822,62	663 708,69	614 018,90
-L. Corporation tax...................	111 863,00	201 757,00	129 220,00	120 147,00
-N. Net profit........................	428 361,13	838 065,62	534 488,69	493 871,90

Ratios	01.01.2013- 31.12.2013	01.01.2012- 31.12.2012	01.01.2011- 31.12.2011	01.01.2010- 31.12.2010
Current ratio	1,58	1,69	1,60	1,64
Quick ratio	0,87	1,03	1,06	1,11
Immediate ratio	0,07	0,09	0,04	0,10
Return on sale	2,56	4,84	3,17	3,68
Return on assets	4,58	9,21	7,67	8,03
Return on equity	9,81	20,25	16,19	17,23
Average trade debtors' days	51,03	58,26	66,10	73,47
Average stock turnover's days	44,82	40,14	34,65	38,41
average payables payment period	64,20	62,18	64,71	72,41
Total indebtedness ratio	53,33	54,51	52,60	53,40

While rating the company, it is advisable to take into consideration information about the branch, the company is acting in
(G.46.51.Z - NACE 2007), as at :	30.06.2014	31.12.2013	31.12.2012	31.12.2011	31.12.2010
Current ratio............................	1,43	1,45	1,30	1,31	1,57
Quick ratio..............................	1,00	1,08	0,94	1,02	1,23
Immediate ratio..........................	0,23	0,22	0,18	0,20	0,34
Return on sale...........................	0,53	1,78	1,73	0,40	5,25
Return on assets.........................	0,73	4,93	4,50	0,88	7,98
Return on equity.........................	2,03	14,75	19,86	4,22	19,96
Average trade debtors' days..............	52,97	58,92	62,27	78,08	103,13
Average stock turnover's days............	30,17	25,58	29,04	26,55	35,19
average payables payment period..........	72,40	70,50	82,54	98,27	116,12
Total indebtedness ratio.................	64,06	66,59	77,33	79,17	60,01
Percent share in the examinated group of companies with net profit.............	76,90	88,50	65,20	80,80	82,60
Sales/revenue per employee in th. PLN....	1 311,24	2 977,04	2 618,28	1 949,81	868,53
Average sales/revenue per company in th. PLN..................................	285 800,96	641 436,73	602 659,61	395 885,85	138 474,30
(G.46.72.Z - NACE 2007), as at :	30.06.2014	31.12.2013	31.12.2012	31.12.2011	31.12.2010
Current ratio............................	1,41	1,15	1,37	1,34	1,23
Quick ratio..............................	0,73	0,58	0,71	0,77	0,73
Immediate ratio..........................	0,06	0,03	0,04	0,04	0,04
Return on sale...........................	2,58	0,81	-0,18	0,99	1,87
Return on assets.........................	2,65	1,60	-0,36	2,22	2,89
Return on equity.........................	7,99	4,48	-1,25	6,30	6,99
Average trade debtors' days..............	50,33	49,15	50,75	56,32	72,05
Average stock turnover's days............	55,47	56,58	53,29	45,82	54,39
average payables payment period..........	82,20	99,07	81,11	81,10	109,55
Total indebtedness ratio.................	66,82	64,30	70,88	64,74	58,63
Percent share in the examinated group of companies with net profit.............	82,90	71,40	57,40	82,20	76,10
Sales/revenue per employee in th. PLN....	1 011,22	1 780,62	1 643,88	1 927,15	1 301,41
Average sales/revenue per company in th. PLN..................................	124 626,61	219 863,81	183 450,40	218 153,02	175 040,02
according to the Central Statistical Office

Locations:

seat: ul. Żwirki i Wigury 56 D, 43-190 Mikołów Phone:                   32 2180740                          32 2180743                          32 3260050 Mobile phone:            601 703 266 Fax:                     32 2180750 E-mail:                  barbara.krol@dbn.pl biuro@dbn.pl Website:                 www.dbn.pl

Real Estate	ul. Żwirki i Wigury 56 D, 43-190 Mikołów
	Book value of buildings as at 31.12.2013	PLN	3 096 766,02
	Book value of lands as at 31.12.2013	PLN	283 487,68
	Verification of information on real estate ownership position through the Real Estate Register is not covered by the standard report.

Means of transport

As at 31.12.2013  book value of car fleet was: PLN 588 941,72

Shares in other companies

As at 04.08.2014 there are no shares in other companies.

Connections:

As at 04.08.2014 there are no relations.

Certificates:

The company participates in the program "Rzetelna Firma" (reliable company).  ISO 9001:2000

Banks

Bank Zachodni WBK SA 1 O. w Tychach  (10901652) ul. Bałuckiego 4, 43-100 Tychy Acc.no. 14109016520000000105509123

Payment Manner

In available sources, payment delays have not been noted

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.80
UK Pound	1	Rs.100.06
Euro	1	Rs.78.46

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.