MIRA INFORM REPORT

Report No. :	338091
Report Date :	26.08.2015

IDENTIFICATION DETAILS

Name :	KAZAR FOOTWEAR SP. Z.O.O.
Registered Office :	Ul. Lwowska 154, 37-700 Przemyśl
Country :	Poland
Financials (as on) :	30.06.2015
Date of Incorporation :	26.07.2002
Legal Form :	Limited Liability Company
Line of Business :	· Manufacture of Luggage, Handbags, Saddlery, Harness and Footwear · Wholesale of Clothing and Footwear · Real Estate Renting
No. of Employees :	439 [2015]

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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Poland	A2	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. The unemployment rate is now below 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 2013 and picked back up in 2014. 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, especially for entrepreneurs. Poland’s long-term challenges include diversifying Poland’s energy mix and sources of supply, as well as stemming the outflow of educated young Poles to other EU Member States, especially in light of a coming demographic contraction as the Solidarity-era baby boom generation ages.

Source : CIA

Company Name & address

KAZAR FOOTWEAR SP. Z O.O.

Ul. Lwowska 154, 37-700 Przemyśl

Phone:    16 6760321

Fax:      16 6760320

E-mail:   kazar@kazar.pl

Website:  kazar.com.pl

Company summary

Legal form	Limited liability company
Stat.no.	651500282
Tax ID	PL 7951532361

Establishment	26.11.1996 as Partnership
	20.03.2001  as General partnership
	26.07.2002  as Limited liability company

Registration:

01.10.2002, District Court Rzeszów, XII Department, KRS 132965 Data concerning previous registrations: 08.05.2001, District Court Rzeszów, XII Department, KRS 11054

Shareholders	Artur Augustyn Kazienko , personal ID no. (PESEL) 67060400892, ul. Paderewskiego 10 A15, 37-700 Przemyśl	PLN	89 100,00 80,20%
	other shareholders	PLN	22 000,00 19,80%
	list entered to NCR /KRS/ on  28.02.2014

Initial Capital		PLN 111 100,00
	Initial capital divided into 101 shares of PLN 1 100,00 each
	Changes of initial capital
	- since 18.07.2013  until 28.02.2014  the capital estimated	PLN 110 000,00
	- since 22.05.2013  until 18.07.2013  the capital estimated	PLN 107 800,00
	- since 30.01.2012  until 22.05.2013  the capital estimated	PLN 100 000,00
	-  until 30.01.2012  the capital estimated	PLN 73 950,00

Management	Artur Augustyn Kazienko , personal ID no. (PESEL) 67060400892, ul. Paderewskiego 10 A15, 37-700 Przemyśl  - president
	Proxies: Renata Niećko , personal ID no. (PESEL) 75060516244  - independent proxy
	Representation: Each board member individually.

Main activity	Retail sale of leather shoes and other leather goods (bags, purses, wallets, belts)
	Branches NACE 2007:
	Other retail	(G.47.72.Z)
	Manufacture of luggage, handbags, saddlery, harness and footwear	(C.15.12.Z)
	Wholesale of clothing and footwear	(G.46.42.Z)
	Real estate renting	(L.68.20.Z)
	other cleaning	(N.81.30.Z)
	Other sporting activity	(R.93.11.Z)

Employment

2010:              291       employees 2011:              280       employees 2012:              345       employees 2014:              440       employees 2015:              439       employees

Turnover	2012	PLN	106 413 212,51
	2013	PLN	127 546 038,02
	2014	PLN	142 947 073,26
	01.01.2015 - 30.06.2015	PLN	69 069 672,40
	2015 - expected value	PLN	158 000 000,00

Financial statements

Source of financial data	Subject	Subject	Court	Court
	periodic	annual	annual	annual
Personal balance sheet as at	30.06.2015 (PLN)	31.12.2014 (PLN)	31.12.2013 (PLN)	31.12.2012 (PLN)
-A. Fixed assets......................	18 786 216,02	18 312 189,77	16 451 539,09	13 335 723,76
-  I.   Intangible assets.............	495 841,70	701 679,60	833 410,64	178 240,81
-    3. Other intangible assets.......	495 841,70	701 679,60	148 506,23	178 240,81
-    4. Prepayments for intangible assets................................			684 904,41
-  II.  Tangible assets...............	17 498 764,32	16 908 000,17	14 948 259,45	12 630 286,95
-    1. Fixed goods...................	15 511 820,88	16 368 216,75	14 669 079,26	12 481 413,15
-      a) land........................	1 071 123,24	1 075 793,64	480 434,44	165 166,00
-      b) buildings, premises, facilities............................	10 062 772,76	10 268 648,41	9 309 367,09	8 087 530,14
-      c) machinery and equipment.....	944 694,99	1 098 887,91	1 208 133,41	1 354 449,55
-      d) fleet of motor vehicles.....	1 439 203,97	1 719 747,03	1 589 271,73	1 043 579,18
-      e) other fixed goods...........	1 994 025,92	2 205 139,76	2 081 872,59	1 830 688,28
-    2. Fixed goods under construction..........................	1 986 943,44	539 783,42	279 180,19	123 805,72
-    3. Prepayments for fixed goods under construction....................				25 068,08
-  IV.  Long term investments.........	136 750,00	47 650,00	49 450,00	51 650,00
-    3. Long term financial assets....	136 750,00	47 650,00	49 450,00	51 650,00
-      a) in affiliated companies.....	135 000,00	45 000,00	45 000,00	45 000,00
-        - participations or shares...	135 000,00	45 000,00	45 000,00	45 000,00
-      b) Other.......................	1 750,00	2 650,00	4 450,00	6 650,00
-        - granted loans..............	1 750,00	2 650,00	4 450,00	6 650,00
-V. Long-term prepayments and accrued income........................	654 860,00	654 860,00	620 419,00	475 546,00
-  1. Deferred tax assets.............	654 860,00	654 860,00	620 419,00	475 546,00
-B. Current assets....................	49 388 952,72	54 743 700,10	45 039 440,98	32 221 054,77
-  I.   Stock.........................	42 248 714,13	40 248 107,67	32 598 343,82	27 843 261,32
-    1. Raw materials.................	672 477,01	620 627,79	405 869,93	448 995,49
-    4. Goods for re-sale.............	38 213 330,27	35 564 937,22	29 083 305,97	24 591 036,49
-    5. Advance payments .............	3 362 906,85	4 062 542,66	3 109 167,92	2 803 229,34
-  II. Short-term receivables.........	513 922,22	121 350,56	200 339,46	15 509,24
-    1. Receivables from affiliated companies.............................	73 985,59
-      a) Due to deliveries and services with payment period:.........	73 985,59
-        - up to 12 months............	73 985,59
-    2. Other receivables ............	439 936,63	121 350,56	200 339,46	15 509,24
-      a) Due to deliveries and services with payment period:.........		68 658,22	78 136,77	2 226,57
-        - up to 12 months............		68 658,22	78 136,77	2 226,57
-      c) Other.......................	359 606,37	52 692,34	122 202,69	13 282,67
-      d) Received through judicial proceedings...........................	80 330,26
-  III. Short term investments........	5 488 595,42	13 209 301,33	11 398 371,31	3 694 153,09
-    1. Short-term financial assets...	5 488 595,42	13 209 301,33	11 398 371,31	3 694 153,09
-      b) Other.......................	51 800,00	51 800,00	108 972,00	3 000,00
-        - other securities...........	50 000,00	50 000,00	107 172,00
-        - granted loans..............	1 800,00	1 800,00	1 800,00	3 000,00
-      c) cash and other liquid assets................................	5 436 795,42	13 157 501,33	11 289 399,31	3 691 153,09
-        - cash in hand and on bank account...............................	4 337 304,65	497 997,24	3 243 017,11	2 371 370,54
-        - other liquid assets........	1 099 490,77	12 659 504,09	8 046 382,20	1 319 782,55
-IV. Short-term prepayments and accrued income........................	1 137 720,95	1 164 940,54	842 386,39	668 131,12
-D. Total assets......................	68 175 168,74	73 055 889,87	61 490 980,07	45 556 778,53
-A. Shareholders' equity..............	56 099 437,86	56 982 425,24	45 729 111,29	34 417 399,10
-  I.   Basic share capital...........	111 100,00	111 100,00	110 000,00	100 000,00
-  IV.  Statutory reserve capital.....	51 358 519,47	43 803 205,52	32 468 093,33	23 960 887,91
-  VI.  Other reserve capital.........	449 305,77	449 305,77	449 305,77	449 305,77
-  VIII. Net profit (loss)............	4 180 512,62	12 618 813,95	12 701 712,19	9 907 205,42
-B. Liabilities and reserves for liabilities...........................	12 075 730,88	16 073 464,63	15 761 868,78	11 139 379,43
-  I.   Reserves for liabilities......	712 362,49	712 362,49	629 773,00	588 734,00
-    1. Deferred income tax reserves..	703 506,00	703 506,00	578 773,00	538 734,00
-    2. Reserves for pensions and similar social payments...............	8 856,49	8 856,49
-      - long-term....................	8 856,49	8 657,25
-      - short-term...................		199,24
-    3. Other reserves................			51 000,00	50 000,00
-      - short-term...................			51 000,00	50 000,00
-II.  Long-term liabilities...........	945 095,67	1 264 473,54	1 351 568,66	2 036 816,71
-  2. Other liabilities...............	945 095,67	1 264 473,54	1 351 568,66	2 036 816,71
-    a) Loans.........................				935 000,00
-    c) Other financial liabilities...	945 095,67	1 264 473,54	1 351 568,66	1 101 816,71
-III. Short-term liabilities..........	10 210 153,72	13 886 022,43	13 780 527,12	8 513 828,72
-  2. Other liabilities...............	9 645 079,02	13 671 294,11	13 571 607,58	8 344 029,65
-    a) Loans.........................			935 000,00	1 028 960,26
-    c) Other financial liabilities...	905 915,07	1 163 136,97	1 276 056,86	929 774,93
-    d)Due to deliveries and services with payment period:.........	4 778 170,18	6 661 887,49	5 641 804,40	2 783 385,18
-      - up to 12 months..............	4 778 170,18	6 661 887,49	5 641 804,40	2 783 385,18
-    g) Due to taxes, subsidies, insurances, duties, etc...............	2 737 877,25	4 570 963,14	4 582 238,93	3 348 370,86
-    h) Due to salaries...............	1 210 551,14	1 271 579,86	1 135 646,89	238 911,31
-    i) Other.........................	12 565,38	3 726,65	860,50	14 627,11
-  3. Special funds...................	565 074,70	214 728,32	208 919,54	169 799,07
-IV.  Accruals and deferred income....	208 119,00	210 606,17
-  2. Other accruals..................	208 119,00	210 606,17
-    - short-term.....................	208 119,00	210 606,17
-D. Total liabilities.................	68 175 168,74	73 055 889,87	61 490 980,07	45 556 778,53
Source of financial data	Subject	Subject	Court	Court
	periodic	annual	annual	annual
individual PROFIT AND LOSS ACCOUNT	- 01.01.2015- 30.06.2015 (PLN)	01.01.2014- 31.12.2014 (PLN)	01.01.2013- 31.12.2013 (PLN)	01.01.2012- 31.12.2012 (PLN)
-A. Income from sales and similar.....	69 069 672,40	142 947 073,26	127 546 038,02	106 413 212,51
-  I.   Net income on sales...........	510 736,45	690 157,79	661 466,64	19 727,53
-  IV.  Income from sales of goods and materials.........................	68 558 935,95	142 256 915,47	126 884 571,38	106 393 484,98
-B. Operational costs.................	63 078 649,45	127 325 360,03	111 221 592,39	93 930 978,24
-  I.   Depreciation..................	1 875 871,57	3 591 471,87	2 867 904,38	2 421 235,11
-  II.  Materials and energy..........	1 889 545,81	4 381 997,01	3 791 577,30	3 360 800,12
-  III. Third party services..........	13 816 524,31	28 916 681,14	25 324 563,18	21 299 192,09
-  IV.  Taxes and duties..............	211 887,04	380 099,75	225 878,08	169 536,08
-  V.   Salaries and wages............	9 350 616,54	19 124 092,39	17 425 671,60	15 158 922,17
-  VI.  Social security...............	1 978 685,87	3 948 575,68	3 634 829,29	3 117 018,46
-  VII. Other.........................	2 872 545,63	5 745 291,33	4 132 755,47	3 176 094,79
-  VIII.Costs of goods and materials sold..................................	31 082 972,68	61 237 150,86	53 818 413,09	45 228 179,42
-C. Profit on sale....................	5 991 022,95	15 621 713,23	16 324 445,63	12 482 234,27
-D. Other operating incomes...........	174 790,54	1 530 996,95	520 802,58	170 274,50
-  I.   Incomes from disposal non-financial assets..................	38 841,80	98 615,94		4 116,13
-  III. Other operating incomes.......	135 948,74	1 432 381,01	520 802,58	166 158,37
-E. Other operating costs.............	117 359,74	932 141,48	663 727,41	210 303,42
-  I.   Loss on disposal of non-finacial assets...................			96 795,27
-  III. Other operating costs.........	117 359,74	932 141,48	566 932,14	210 303,42
-F. Profit on operating activities....	6 048 453,75	16 220 568,70	16 181 520,80	12 442 205,35
-G. Financial incomes.................	26 825,15	214 915,47	74 417,93	345 539,11
-  II.  Interest received.............	26 825,15	94 851,49	74 417,93	78 673,89
-  V.   Other.........................		120 063,98		266 865,22
-H. Financial costs...................	952 793,28	645 936,22	604 534,54	475 093,04
-  I.   Interest......................	52 338,89	132 502,40	231 939,21	336 093,04
-  III. Financial assets revaluation..		59 333,60
-  IV.  Other.........................	900 454,39	454 100,22	372 595,33	139 000,00
-I. Profit on economic activity.......	5 122 485,62	15 789 547,95	15 651 404,19	12 312 651,42
-K. Gross profit......................	5 122 485,62	15 789 547,95	15 651 404,19	12 312 651,42
-L. Corporation tax...................	941 973,00	3 170 734,00	2 949 692,00	2 405 446,00
-N. Net profit........................	4 180 512,62	12 618 813,95	12 701 712,19	9 907 205,42

RATIOS	01.01.2015- 30.06.2015	01.01.2014- 31.12.2014	01.01.2013- 31.12.2013	01.01.2012- 31.12.2012
Current ratio	4,84	3,94	3,27	3,78
Quick ratio	0,59	0,96	0,84	0,44
Immediate ratio	0,53	0,95	0,82	0,43
Return on sale	6,05	8,83	9,96	9,31
Return on assets	6,13	17,27	20,66	21,75
Return on equity	7,45	22,15	27,78	28,79
Average trade debtors' days	1,35	0,31	0,57	0,05
Average stock turnover's days	110,71	102,77	93,29	95,76
average payables payment period	26,76	35,46	39,44	29,28
Total indebtedness ratio	17,71	22,00	25,63	24,45

While rating the company, it is advisable to take into consideration information about the branch, the company is acting in
(G.47.72.Z - NACE 2007), AS AT :	31.03.2015	31.12.2014	31.12.2013	31.12.2012	31.12.2011
Current ratio............................	1,68	2,01	1,38	1,43	1,59
Quick ratio..............................	0,61	0,82	0,54	0,54	0,39
Immediate ratio..........................	0,19	0,33	0,22	0,24	0,16
Return on sale...........................	-5,29	2,56	1,22	1,11	2,87
Return on assets.........................	-1,91	4,56	1,95	1,82	4,41
Return on equity.........................	-5,44	13,06	6,06	4,26	10,36
Average trade debtors' days..............	41,84	31,65	35,78	31,26	23,29
Average stock turnover's days............	103,61	77,68	95,64	93,58	121,28
average payables payment period..........	98,23	66,12	114,35	106,20	103,35
Total indebtedness ratio.................	64,92	65,05	67,89	57,39	57,46
Percent share in the examinated group of companies with net profit.............	28,60	60,00	55,30	50,00	55,30
Sales/revenue per employee in th. PLN....	80,31	371,14	344,22	318,66	293,43
Average sales/revenue per company in th. PLN..................................	29 774,57	115 064,37	95 421,84	87 064,36	82 207,34
according to the Central Statistical Office

Locations:

ul. Lwowska 154, 37-700 Przemyśl Phone:                   16 6760321 Fax:                     16 6760320 E-mail:                  bsikorska@kazar.com.pl                          kazar@kazar.pl                          kontakt@kazar.com                          msiedlewicz@kazar.com.pl Website:                 kazar.com.pl                          www.kazar.com

Real Estate	ul. Lwowska 154, 37-700 Przemyśl lands of area 14 535 sq.m. (Land and Mortgage Register PR1P/00062358/6) buildings of area 2 536 sq m,
	Book value of buildings as at 30.06.2015	PLN	10 062 772,76
	Book value of lands as at 30.06.2015	PLN	1 071 123,24
	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 30.06.2015  book value of car fleet was: PLN 1 439 203,97

Shares in other companies	4 TRADE sp. z o.o. NIP 7952282972, ul. Lwowska 154, 37-700 Przemyśl PLN 45 000,00 (90,00%)   4 EVAS MARKETING sp. z o.o., ul. Lwowska 154, 37-700 Przemyśl PLN 5 000,00 (100,00%)
	Data concerning shares in other companies are valid as at: 31.07.2015.

Connections:

Artur Augustyn Kazienko , personal ID no. (PESEL) 67060400892 -  4 EVAS sp. z o.o., ul. Lwowska 154, 37-700 Przemyśl   · shareholder: PLN 5 000,00 (100,00%)   · president -  FORNET CAPITAL sp. z o.o., ul. Lwowska 154, 37-700 Przemyśl   · shareholder: PLN 4 950,00 (99,00%)   · president -  4 TRADE sp. z o.o. NIP 7952282972, ul. Lwowska 154, 37-700 Przemyśl   · shareholder: PLN 5 000,00 (10,00%)   · proxy -  KAZAR sp. z o.o., ul. Lwowska 154, 37-700 Przemyśl   · shareholder -  4 EVAS MARKETING sp. z o.o., ul. Lwowska 154, 37-700 Przemyśl   · president

Data concerning connections are valid as at: 31.07.2015.

Taking overs

30.06.2009 (Entry date) - merger KAZAR FOOTWEAR Sp. z o.o., ul. Lwowska 154, 37-700 Przemyśl (as taking over)  2 TRADE SPÓŁKA Z O.O. KRS 223760, ul. Lwowska 154, 37-700 Przemyśl (as taken over)

Banks

ING Bank Śląski SA O. w Przemyślu ul.Dworskiego 39 (10501546) ul. Dworskiego 39, 37-700 Przemyśl Acc.no. 09105015461000002221403716  ING Bank Śląski SA O. w Przemyślu ul.Dworskiego 39 (10501546) ul. Dworskiego 39, 37-700 Przemyśl Acc.no. 91105015461000002244452641

Payment Manner	According to available sources, pays to terms
Credit capability	Business connections are permissible.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.71
UK Pound	1	Rs.105.10
Euro	1	Rs.77.11

INFORMATION DETAILS

Analysis Done by :	DIV
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.