MIRA INFORM REPORT

Report Date :

23.09.2014

IDENTIFICATION DETAILS

Name :	DRUMET LINY I DRUTY SP. Z O.O.
Formerly Known As :	WIRECO WORLDGROUP POLAND HOLDINGS SP. Z O.O
Registered Office :	Ul. Polna 26/74 87-800 Włocławek
Country :	Poland
Financials (as on) :	30.06.2014
Date of Incorporation :	13.06.2011
Legal Form :	Limited Liability Company
Line of Business :	· Manufacture and sale of steel ropes, cables and wires · Building erection related general building activity · Wholesale and retail of personal cars and vans
No. of Employees :	779

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
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

DRUMET LINY I DRUTY Sp. z o.o.

ul. Polna 26/74
87-800 Włocławek

Phone:    54 4128101

54 4128422

Fax:      54 4128016

54 4128024

E-mail:   drumet@drumet.pl

Website:  www.drumet.pl

Company summary

Legal form	Limited liability company
Stat.no.	143050808
Tax ID	PL 7010305673

Establishment	13.06.2011
Changes of names and addresses	WIRECO WORLDGROUP POLAND HOLDINGS Sp. z o.o. Aleje Ujazdowskie 10, 00-478 Warszawa
	14.11.2011  ul. Polna 26/74, 87-800 Włocławek
	01.08.2012 DRUMET LINY I DRUTY Sp. z o.o.

Registration:

04.07.2011, District Court Toruń, VII Department, KRS 390636

Shareholders	WRCA (LUXEMBOURG) HOLDINGS S.Á R.L.	PLN	40 405 000,00 100,00%
	list entered to NCR /KRS/ on  22.08.2011

Initial Capital
	Initial capital divided into 808100 shares of PLN 50,00 each
	Changes of initial capital
	- since 04.07.2011  until 22.08.2011  the capital estimated

Management	Jerzy Zbigniew Totko , personal ID no. (PESEL) 55061008614, ul. Łanowa 8/5, 87-800 Włocławek  - member of board of directors Wojciech Marcin Multan , personal ID no. (PESEL) 74071008555  - member of board of directors
	Proxies: Piotr Redliński , personal ID no. (PESEL) 79121001476  - joint proxy
	Representation: since 11.02.2013  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

Jose Luis Guerreiro Gramaxo  Adrian Holt  Brian Block

Main activity	Manufacture and sale of steel ropes, cables and wires
	Branches NACE 2007:
	Wire drawing	(C.24.34.Z)
	Cold drawing	(C.24.31.Z)
	Building erection related general building activity	(F.41.10.Z)
	Wholesale and retail of personal cars and vans	(G.45.11.Z)
	Other publishing	(J.58.19.Z)
	Buying and selling of own real estate	(L.68.10.Z)

Employment

2012:              659       employees 2013:              737       employees 2014:              779       employees

Turnover	13.06.2011 - 31.12.2011	PLN	0,00
	2012	PLN	134 459 602,91
	2013	PLN	387 952 840,31
	01.01.2014 - 30.06.2014	PLN	208 645 000,00
	2014 - expected value	PLN	420 000 000,00

Financial statements

Source of financial data	Subject	Subject	Court	Court
	F01	annual	annual	periodic
Personal balance sheet as at	30.06.2014 (PLN)	31.12.2013 (PLN)	31.12.2012 (PLN)	31.12.2011 (PLN)
-A. Fixed assets......................	279 365 000,00	285 480 066,71	292 031 900,02	157 232 313,09
-  I.   Intangible assets.............		33 227 598,74	35 200 348,56
-    3. Other intangible assets.......		33 227 598,74	35 200 348,56
-  II.  Tangible assets...............		228 962 782,32	230 006 888,25
-    1. Fixed goods...................		224 276 919,19	222 742 405,68
-      a) land........................		20 710 417,40	22 589 366,09
-      b) buildings, premises, facilities............................		72 547 275,48	74 963 314,22
-      c) machinery and equipment.....		128 454 574,90	122 170 639,56
-      d) fleet of motor vehicles.....		1 557 348,46	1 928 653,55
-      e) other fixed goods...........		1 007 302,95	1 090 432,26
-    2. Fixed goods under construction..........................		4 685 863,13	7 113 219,17
-    3. Prepayments for fixed goods under construction....................			151 263,40
-  III. Long term receivables.........	41 000,00	40 880,10	3 895 541,50
-    2. Other receivables.............		40 880,10	3 895 541,50
-  IV.  Long term investments.........	11 083 000,00	12 903 547,13	10 210 293,17	149 159 126,09
-    1. Real estate...................		3 918 638,77	1 225 384,81
-    3. Long term financial assets....		8 984 908,36	8 984 908,36	149 159 126,09
-      a) in affiliated companies.....		8 984 908,36	8 984 908,36	149 159 126,09
-        - participations or shares...				149 159 126,09
-V. Long-term prepayments and accrued income........................		10 345 258,42	12 718 828,54	8 073 187,00
-  1. Deferred tax assets.............		9 785 568,00	12 023 603,00	8 073 187,00
-  2. Other prepayments...............		559 690,42	695 225,54
-B. Current assets....................	156 027 000,00	128 599 011,29	158 557 314,39	59 219 555,71
-  I.   Stock.........................	76 250 000,00	69 338 495,17	74 118 566,90
-    1. Raw materials.................	29 120 000,00	25 080 689,60	25 865 046,38
-    2. Semi-finished products and work-in-progress......................	17 473 000,00	15 933 046,04	15 569 664,83
-    3. Finished products.............	28 191 000,00	26 693 481,41	29 042 381,67
-    4. Goods for re-sale.............	1 465 000,00	1 619 206,14	3 615 111,87
-    5. Advance payments .............		12 071,98	26 362,15
-  II. Short-term receivables.........	72 779 000,00	56 130 641,78	51 029 087,52	14 728,00
-    1. Receivables from affiliated companies.............................		20 460 016,82	10 151 946,15
-      a) Due to deliveries and services with payment period:.........		20 460 016,82	10 136 982,68
-      b) Other.......................			14 963,47
-    2. Other receivables ............	72 779 000,00	35 670 624,96	40 877 141,37	14 728,00
-      a) Due to deliveries and services with payment period:.........	68 182 000,00	29 182 298,89	33 350 011,81
-      b) Due to taxes, subsidies, insurances, duties, etc...............	4 113 000,00	6 059 791,03	7 026 497,55	14 728,00
-      c) Other.......................		428 535,04	500 632,01
-  III. Short term investments........	5 074 000,00	2 915 411,95	32 848 344,11	58 250 531,91
-    1. Short-term financial assets...	5 074 000,00	2 915 411,95	32 848 344,11	58 250 531,91
-      a) in affiliated companies.....				56 920 076,29
-        - granted loans..............				56 920 076,29
-      c) cash and other liquid assets................................	5 074 000,00	2 915 411,95	32 848 344,11	1 330 455,62
-        - cash in hand and on bank account...............................				1 330 455,62
-IV. Short-term prepayments and accrued income........................	1 924 000,00	214 462,39	561 315,86	954 295,80
-D. Total assets......................	435 392 000,00	414 079 078,00	450 589 214,41	216 451 868,80
-A. Shareholders' equity..............	28 784 000,00	24 192 582,89	-3 387 480,48	-4 768 154,98
-  I.   Basic share capital...........		40 405 000,00	40 405 000,00	40 405 000,00
-  VI.  Other reserve capital.........		18 424 860,00
-  VII. Profit (loss) carried forward.		-43 792 480,48	-41 339 339,67
-  VIII. Net profit (loss)............	3 842 000,00	9 155 203,37	-2 453 140,81	-45 173 154,98
-B. Liabilities and reserves for liabilities...........................	406 608 000,00	389 886 495,11	453 976 694,89	221 220 023,78
-  I.   Reserves for liabilities......	31 700 000,00	32 403 489,03	31 951 132,08	423 624,00
-    1. Deferred income tax reserves..	26 864 000,00	27 960 133,00	27 909 840,00	398 624,00
-    2. Reserves for pensions and similar social payments...............		4 443 356,03	4 041 292,08
-      - long-term....................		3 167 871,00	2 900 964,00
-      - short-term...................		1 275 485,03	1 140 328,08
-    3. Other reserves................				25 000,00
-      - short-term...................				25 000,00
-II.  Long-term liabilities...........	477 000,00	4 420 362,34	30 397 055,01
-  2. Other liabilities...............		4 420 362,34	30 397 055,01
-    a) Loans.........................		4 420 362,34
-    c) Other financial liabilities...			6 135 141,28
-    d) Other.........................			24 261 913,73
-III. Short-term liabilities..........	332 733 000,00	313 055 758,83	349 031 523,29	220 796 399,78
-  1. Due to affiliated companies.....		249 700 566,89	259 523 138,37	187 275 730,57
-    a) Due to deliveries and services with payment period:.........		18 997 570,90	18 531 366,53	3 182 181,10
-      - up to 12 months..............				3 182 181,10
-    b) Other.........................		230 702 995,99	240 991 771,84	184 093 549,47
-  2. Other liabilities...............	239 805 000,00	62 821 015,35	88 944 996,90	33 520 669,21
-    c) Other financial liabilities...		1 802 207,55	7 710 869,19
-    d)Due to deliveries and services with payment period:.........		32 637 153,16	26 282 928,18	60 061,28
-      - up to 12 months..............				60 061,28
-    e) Advances received.............	1 000,00		76 288,59
-    g) Due to taxes, subsidies, insurances, duties, etc...............	3 334 000,00	2 182 198,95	1 968 238,02
-    h) Due to salaries...............	1 480 000,00	1 290 374,59	1 106 721,42
-    i) Other.........................		24 909 081,10	51 799 951,50	33 460 607,93
-  3. Special funds...................		534 176,59	563 388,02
-IV.  Accruals and deferred income....	41 698 000,00	40 006 884,91	42 596 984,51
-  1. Negative company's worth........		39 745 216,24	42 167 428,12
-  2. Other accruals..................		261 668,67	429 556,39
-    - short-term.....................		261 668,67	429 556,39
-D. Total liabilities.................	435 392 000,00	414 079 078,00	450 589 214,41	216 451 868,80
Source of financial data	Subject	Subject	Court	Court
	F01	annual	annual	periodic
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)	- 13.06.2011- 31.12.2011 (PLN)
-A. Income from sales and similar.....	208 645 000,00	387 952 840,31	134 459 602,91	0,00
-  - including related companies......		151 271 856,68	36 757 571,38
-  I.   Net income on sales...........	204 867 000,00	385 227 293,91	129 073 462,26
-  II.  Change in value of stock ( +, -).................................	1 697 000,00	-2 039 012,79	2 303 835,44
-  III. Sales of goods for own use....	8 000,00	73 069,95	73 393,40
-  IV.  Income from sales of goods and materials.........................	2 073 000,00	4 691 489,24	3 008 911,81
-B. Operational costs.................	190 222 000,00	355 995 911,13	140 633 942,98	136 064,33
-  I.   Depreciation..................	8 436 000,00	15 948 507,48	6 616 476,14
-  II.  Materials and energy..........	139 614 000,00	259 659 033,02	97 931 984,99
-  III. Third party services..........	15 106 000,00	29 077 520,23	15 027 125,42	70 296,77
-  IV.  Taxes and duties..............	1 513 000,00	2 905 565,74	1 281 569,57
-  V.   Salaries and wages............	18 069 000,00	33 950 697,51	12 415 442,76
-  VI.  Social security...............	4 764 000,00	8 455 375,71	2 770 492,90	65 767,56
-  VII. Other.........................	736 000,00	1 435 021,49	917 416,18
-  VIII.Costs of goods and materials sold..................................	1 984 000,00	4 564 189,95	3 673 435,02
-C. Profit on sale....................	18 423 000,00	31 956 929,18
-C. Loss on sale......................			6 174 340,07	136 064,33
-D. Other operating incomes...........	3 050 000,00	3 412 120,45	3 169 178,14	13 788,13
-  III. Other operating incomes.......	3 050 000,00	3 412 120,45	3 169 178,14	13 788,13
-E. Other operating costs.............	2 669 000,00	3 836 166,76	480 810,63	24 848 749,82
-  I.   Loss on disposal of non-finacial assets...................	54 000,00	252 061,19	238 014,84
-  II.  Goodwill revaluation..........	1 867 000,00	1 978 026,68
-  III. Other operating costs.........	748 000,00	1 606 078,89	242 795,79	24 848 749,82
-F. Profit on operating activities....	18 804 000,00	31 532 882,87
-F. Loss on operating activities......			3 485 972,56	24 971 026,02
-G. Financial incomes.................	134 000,00	7 016 949,88	25 268 640,57	1 543 484,59
-  II.  Interest received.............	41 000,00	247 787,04	3 584 614,65	1 543 484,59
-    - including related companies....			3 512 384,28	1 542 951,39
-  V.   Other.........................	93 000,00	6 769 162,84	21 684 025,92
-H. Financial costs...................	14 681 000,00	27 106 301,38	24 785 851,82	29 420 176,55
-  I.   Interest......................	12 208 000,00	27 042 596,37	22 808 907,58	6 796 978,17
-    - related companies..............			19 552 968,37	6 796 978,17
-  III. Financial assets revaluation..		22 162,61	1 966 000,00
-  IV.  Other.........................	2 473 000,00	41 542,40	10 944,24	22 623 198,38
-I. Profit on economic activity.......	4 257 000,00	11 443 531,37
-I. Loss on economic activity.........			3 003 183,81	52 847 717,98
-K. Gross profit......................	4 257 000,00	11 443 531,37
-K. Gross loss........................			3 003 183,81	52 847 717,98
-L. Corporation tax...................	415 000,00	2 288 328,00	-550 043,00	-7 674 563,00
-N. Net profit........................	3 842 000,00	9 155 203,37
-N. Net loss..........................			2 453 140,81	45 173 154,98

Ratios	01.01.2014- 30.06.2014	01.01.2013- 31.12.2013	01.01.2012- 31.12.2012	13.06.2011- 31.12.2011
Current ratio	0,47	0,41	0,45	0,27
Quick ratio	0,23	0,19	0,24	0,26
Immediate ratio	0,02	0,01	0,09	0,01
Return on sale	1,86	2,35	-1,86
Return on assets	0,88	2,21	-0,54	-20,87
Return on equity	13,35	37,84
Average trade debtors' days	63,66	52,54	141,40
Average stock turnover's days	66,69	64,91	205,38
average payables payment period	291,02	293,05	967,17
Total indebtedness ratio	93,39	94,16	100,75	102,20

While rating the company, it is advisable to take into consideration information about the branch, the company is acting in
(C.24.34.Z - NACE 2007), as at :	30.06.2014	31.12.2013	31.12.2012	31.12.2011	31.12.2010
Current ratio............................	0,84	0,79	0,82	1,44	1,45
Quick ratio..............................	0,55	0,47	0,55	0,93	0,98
Immediate ratio..........................	0,13	0,10	0,22	0,34	0,25
Return on sale...........................	3,62	4,30	4,17	4,24	1,09
Return on assets.........................	2,13	5,33	4,12	3,89	1,03
Return on equity.........................	7,16	17,69		11,28	3,32
Average trade debtors' days..............	70,15	58,94	70,08	72,30	64,89
Average stock turnover's days............	50,64	51,04	58,87	63,44	41,56
average payables payment period..........	180,26	168,53	216,06	124,08	90,67
Total indebtedness ratio.................	70,26	69,88	124,58	65,47	69,08
Percent share in the examinated group of companies with net profit.............	85,70	100,00	71,40	100,00	66,70
Sales/revenue per employee in th. PLN....	263,06	510,72	506,88	432,63	361,43
Average sales/revenue per company in th. PLN..................................	63 135,57	108 080,25	104 778,43	132 559,00	97 586,50
according to the Central Statistical Office

Locations:

seat: ul. Polna 26/74, 87-800 Włocławek Phone:                   54 4128101                          54 4128422 Fax:                     54 4128016                          54 4128024 E-mail:                  drumet@drumet.pl                          i.urbanska@drumet.pl Website:                 www.drumet.pl

Real Estate	Book value of buildings as at 31.12.2013	PLN	72 547 275,48
	Book value of lands as at 31.12.2013	PLN	20 710 417,40
	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 1 557 348,46

Shares in other companies

As at 28.08.2014 there are no shares in other companies.

Connections:

Jerzy Zbigniew Totko , personal ID no. (PESEL) 55061008614 -  FABRYKA LIN I DRUTU „DRUMET” sp. z o.o. w upadłości likwidacyjnej NIP 8882994253, ul. Polna 26/74, 87-800 Włocławek   · vice president -  Grupa Kapitałowa DRUMET SA w upadłości likwidacyjnej NIP PL 8880200674, ul. Polna 26/74, 87-800 Włocławek   · vice president Jose Luis Guerreiro Gramaxo  Brian Block  Adrian Holt  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: 28.08.2014.

Taking overs

01.08.2012 (Entry date) - merger DRUMET LINY I DRUTY Sp. z o.o., ul. Polna 26/74, 87-800 Włocławek (as taking over)  Drumet Liny i Druty Sp. z o.o. KRS 325069 (as taken over)

General information

The subject company runs the operating activity since 01.08.2012 when it merged with the company DRUMET LINY I DRUTY Sp. z.o.o. (tax no.: 5252446086).

Banks

MBANK SA O. Korporacyjny Warszawa  (11401010) ul. Królewska 14, 00-950 Warszawa Acc.no. 37114010100000533396001001  Bank Handlowy w Warszawie SA O. w Bydgoszczy  (10301090) ul. Jagiellońska 21, 85-950 Bydgoszcz Acc.no. 35103010900000000087369005

Payment Manner

Analysis of the balance sheet indicates limited liquidity.

Credit capability

Business connections should not be refused, credits require security

Due to:
- Liabilities and reserves for liabilities exceeding current assets
- low current ratio
- Unsettled losses from previous years
- long period of liabilities repayment
- high level of the debt ratio

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.78
UK Pound	1	Rs.99.27
Euro	1	Rs.78.16

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.