MIRA INFORM REPORT

Report No. :	354874
Report Date :	18.12.2015

IDENTIFICATION DETAILS

Name :	BRONSWERK HEAT TRANSFER SPOL. S.R.O.
Registered Office :	DeCinska 288, 407 22 BeneSov nad PlouCnici
Country :	Czech Republic
Financials (as on) :	31.12.2014
Date of Incorporation :	15.02.1991
Com. Reg. No.:	C 209
Legal Form :	Private Limited Company
Line of Business :	· Manufacture of non-domestic cooling and ventilation equipment · Proposing and manufacture of air-cooled heat exchangers and \ condensers, of atmospheric evaporators of liquid gasses, of special \ exchangers, delivery and mounting of complete industrial cooling \ circles.
No. of Employees :	143 [2014]

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)
Czech Republic	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

CZECH REPUBLIC - ECONOMIC OVERVIEW

The Czech Republic is a stable and prosperous market economy closely integrated with the EU, especially since the country's EU accession in 2004. The auto industry is the largest single industry, and, together with its upstream suppliers, accounts for nearly 24% of Czech manufacturing. The Czech Republic produced more than a million cars for the first time in 2010, over 80% of which were exported. While the conservative, inward-looking Czech financial system has remained relatively healthy, the small, open, export-driven Czech economy remains sensitive to changes in the economic performance of its main export markets, especially Germany. When Western Europe and Germany fell into recession in late 2008, demand for Czech goods plunged, leading to double digit drops in industrial production and exports. As a result, real GDP fell sharply in 2009. The economy slowly recovered in the second half of 2009 and registered weak growth in the next two years. In 2012 and 2013, however, the economy fell into a recession again, due both to a slump in external demand in the EU and to the government’s austerity measures, returning to weak growth in 2014. Foreign and domestic businesses alike voice concerns about corruption, especially in public procurement. Other long term challenges include dealing with a rapidly aging population, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.

Source : CIA

Company identification

BRONSWERK HEAT TRANSFER SPOL. S R.O.	Telephone	00420/412 590 511
DeCinska 288	telefax	00420/412 586 340
407 22 BeneSov nad PlouCnici	e-mail	info@bronswerk.cz
Czech Republic	Web	www.bronswerk.cz

Crefo Nr.	9210012152	Registration:	Krajsky soud Usti nad Labem
Statistical Nr.	14867125	Registration Nr.	C 209
Tax Nr.	CZ14867125	Status	activ

Economic situation

Business connection	Business connections appear permissible	(31)
Terms of payment	mostly no complaints, but occasional delays / reminders	(31)

Basic information

Legal form

Private limited company

Founded

15/02/1991 as Private limited company

Registration

15/02/1991, Krajsky´ soud U´ st´ı nad Labem, C 209

Statistical Nr.: 14867125

Tax Nr.: CZ14867125

Registered Names

	Valid from	Trade name(s)			Valid until
	03/01/2004	BRONSWERK HEAT TRANSFER spol. s r.o.
	Valid from	Former name(s)			Valid until
	15/02/1991	E N V I G spol. s r.o.			12/11/1996
	12/11/1996	ENVIG - SAG spol. s r.o.			29/12/1999
	29/12/1999	ENVIG-BRONSWERK spol. s r.o.			03/01/2004
	29/12/1999	ENVING-BRONSWERK spol. s r.o.			29/12/1999
Owners and Capital
	Crefo Nr.	Name / Address / Status	From	Share
	Shareholders
	9213215272	BHT Holding B. V. Stationsweg 22, 3862 CG Nijerk GLD Netherlands	03/04/2014	5,441,000 CZK
	Total capital			5,441,000 CZK
Registered capital
	Date		Currency	Value
	15/02/1991		CZK	100,000
	02/10/1992		CZK	150,000
	01/03/1996		CZK	2,100,000
	30/07/1996		CZK	2,950,000
	13/01/1999		CZK	2,952,000
	29/12/1999		CZK	5,441,000

Management

Crefo Nr.	Name / Address / Status	Since	Power of attorney
Management
9210224812	Executive Manager Ing. Josef Charouzd(birth date 17/03/1956) Cihelna 1892/14, 405 02 Decin Czech Republic	24/04/2003

Company addresses

Valid from	Address	Valid until
12/11/1996	Decinska 288, 407 22 Benesov nad Ploucnici, Czech Republic
15/02/1991	Decin, Czech Republic	02/10/1992
02/10/1992	Husitska 15, Decin, Czech Republic	12/11/1996

Business activities

Main activity

Manufacture of non-domestic cooling and ventilation equipment

Additional activities

Proposing and manufacture of air-cooled heat exchangers and \ condensers, of atmospheric evaporators of liquid gasses, of special \ exchangers, delivery and mounting of complete industrial cooling \ circles.

Economic data

Turnover and Employees
Date	Turnover	Employees
2005	240,530,000 CZK
2006	321,499,000 CZK
2007	554,220,000 CZK	141
2008	587,093,000 CZK	149
2009	634,695,000 CZK	148
2010	158,328,000 CZK	136
2011	737,098,000 CZK	138
2012	639,220,000 CZK	145
2013	391,474,000 CZK	148
2014	388,616,000 CZK	143

Import / Export

	Import	Export
Percentage	Unknown	90%
Countries	Germany, Italy, Netherlands	France, Germany, Iraq, Netherlands, Poland, Russia, Syria, Jordania

Properties

Name	Detail	Currency	Value
Business premises	Property of the company Dˇeˇc´ınsk´a 288, Beneˇsov nad Plouˇcnic´ı 407 22, Czech Republic Z´astavn´ı pr ´avo smluvn´ı verified in the real estate registry			Unknown

Supplementary data

Remarks

All the sources of negative data accessible to public (insolvency registers, databases of debtors of health insurance institutions,

commercial bulletin, collection database of Creditreform and others) are currently monitored.

The company is a holder of ISO 9001 certificate.

The company is a member of the holding BHT Holding.

Business management:

Ing. Josef Charouzd - company director, phone: 00420/ 724 109 576

Ing. Pavel Klement- business director

Ing. Martin Nˇemec - technical director

Ing. Karel Hartman - financial director,

phone 00420/ 412 590 540, phone: 00420/ 602 431 355

Ing. Petr Hajn´y - economist, phone: 00420/ 412 590 501

Alena Kov´aˇrov´a - hlavn´ı ´uˇcetn´ı

Alena Kov´aˇrov´a - chief accountant

Banks

Code	Bank name / Address	Account Nr.
0300	Ceskoslovenska obchodni banka, a. s.	117070483/0300
0300	Ceskoslovenska obchodni banka, a. s.	1712800117070483/0300
0300	(Ceskoslovenska obchodni banka, a. s.	1760300117070483/0300
0100	Komercm banka, a.s.	0000003961770227/0100
0100	Komercm banka, a.s.	0000785281490247/0100
0100	Komercm banka, a.s.	172244431/0100

Main indices

Payment Experience and Credit Opinion

Terms of payment	mostly no complaints, but occasional delays / reminders
Business connection	Business connections appear permissible

Business Development

Company development	Constant business development
Order situation	Retrograde order situation

Events

Date	Kind	Code
17/10/2012	lien on the ownership interest of shareholders Zastavni pravo k obchodnimu podilu spolecnika BHT Holding B.V., ve prospech spolecnosti ABN AMRO Bank N.V., akciova spolecnost, Gustav Mahlerlaan 10, 1082 PP , Amsterodam, Nizozemsko, pro pohledavky do celkove vyse 18.295.706,- EUR s pffslusenstvim a bu-douci pohledavky vznikle od 6.8.2012 do 1.7.2027 do celkove vyse 18.295.706,- EUR.	47

Balances

Auditor

Crefo Nr.	Name / Address / Status	Since	Power of attorney
Auditor
9210183814	Ernst & Young Audit, s.r.o. Statistical Nr.: 26704153 Na Florenci 2116/15, Praha 1, 110 00, Czech Republic telephone: 00420/ 225 335 111 telefax: 00420/ 225 335 222 e-mail: ey@cz.ey.com Web: www.ey.com/cz

Balance

Dec 31, 2014 The enclosed balance of 2014 from business register, -.

Dec 31, 2013 The enclosed balance of 2013 from business register, it is authenticated by the auditor.

Dec 31, 2012 The enclosed balance of 2012 from business register, it is authenticated by the auditor.

Dec 31, 2011 The enclosed balance of 2011 from business register.

Name	31/12/2014 1000 CZK balance	31/12/2013 1000 CZK balance	31/12/2012 1000 CZK balance	31/12/2011 1000 CZK balance
TOTAL ASSETS	505,174	467,575	519,491	579,678
Receivables for subscriptions	0	0	0	0
Fixed assets	103,774	108,569	137,209	44,559
Intangible fixed assets	1,697	2,010	2,254	1,172
Incorporation expenses	0			0
Research and development	0			0
Software	1,697	2,010	2,254	1,172
Valuable rights	0			0
Goodwill	0			0
Other intangible fixed assets	0			0
Intangible fixed assets under construction	0			0
Advance payments for intangible fixed assets	0			0
Tangible fixed assets	101,129	106,559	134,955	43,387
Lands	661	661	661	661
Constructions	86,928	90,638	114,017	28,781
Equipment	13,540	15,219	17,513	10,514
Perennial corps	0			0
Breeding and draught animals	0			0
Other tangible fixed assets	0			0
Tangible fixed assets under construction	0		2,764	3,431
Advance payments for tangible fixed assets	0	41		0
Adjustment to acquired assets	0			0
Long-term financial assets	948	0	0	0
Shares in controlled and managed organizations	948			0
Shares in accounting units with substantial influence	0			0
Other securities and shares	0			0
Loans to controlled and managed organizations and to accounting unit with substantial influence	0			0
Other financial investments	0			0
Financial investments acquired	0			0
Advance payments for long-term financial assets	0			0
Current assets	400,954	358,305	379,253	529,625
Inventory	192,826	107,626	99,371	75,326
Materials	27,601	33,962	50,128	40,728
Work in progress and semi-products	38,214	45,513	45,466	34,406
Finished products	126,460	22,556	190	167

Name	31/12/2014 1000 CZK balance	31/12/2013 1000 CZK balance	31/12/2012 1000 CZK balance	31/12/2011 1000 CZK balance
Animals	0			0
Merchandise	37	18	31	25
Advance payments for inventory	514	5,577	3,556	0
Trade receivables
Long-term receivables	2,651	2,028	8,981	1,364
Trade receivables	1,445	1,916	8,306	0
Receivables from controlled and managed organizations	0			0
Receivables from accounting units with substantial influence	0			0
Receivables from partners, cooperative members and association members	0			0
Long-term deposits given	0			0
Estimated receivable	0			0
Other receivables	0			0
Deferred tax receivable	1,206	112	675	1,364
Short-term receivables	15,155	100,330	91,387	360,498
Trade receivables	6,959	82,055	57,553	358,460
Receivables from controlled and managed organizations	0		28,408	0
Receivables from accounting units with substantial influence	0			0
Receivables from partners, cooperative members and association members	0			0
Receivables from social security and health insurance	0			0
Due from state - tax receivable	3,461	13,247	4,090	11
Short-term deposits given	456	757	507	529
Estimated receivable	4,173	4,127	704	1,394
Other receivables	106	144	125	104
Short-term financial assets	190,322	148,321	179,514	92,437
Cash	33	133	48	104
Bank accounts	190,289	148,188	179,466	92,333
Short-term securities and ownership interests	0			0
Short-term financial assets acquired	0			0
Accruals	446	701	3,029	5,494
Deferred expenses	95	701	1,215	1,770
Complex deferred costs	0		1,814	3,724
Deferred income	351			0
TOTAL LIABILITIES	505,174	467,575	519,491	579,678
Equity	265,977	300,785	281,999	248,117
Registered capital	5,441	5,441	5,441	5,441

Name	31/12/2014 1000 CZK balance	31/12/2013 1000 CZK balance	31/12/2012 1000 CZK balance	31/12/2011 1000 CZK balance
Company's own shares and ownership interests (-)	0			0
Changes of registered capital ( +/-)	0			0
Capital funds	460	460	460	460
Share premium	460	460	460	460
Other capital funds	0			0
Differences from revaluation of assets and liabilities ( +/- )	0			0
Differences from revaluation in transformation ( +/- )	0			0
Diferences from tranformation of companies ( +/- )
The differences from valuation on transformation of business corporations
Reserve funds, statutory reserve account for cooperatives, and other retained earnings	544	544	544	544
Legal reserve fund / indivisible fund	544	544	544	544
Statutory and other funds	0			0
Profit / loss - previous years	239,293	275,557	241,672	160,234
Retained earnings from previous years	239,293	275,557	241,672	160,234
Accumulated losses from previous years	0			0
Other profit / loss - previous years
Profit / loss - current year (+/-)	20,239	18,783	33,882	81,438
Decided on advance for payment of a profit share
Liabilities	236,524	166,790	175,976	272,471
Reserves	1,914	2,246	13,828	9,983
Reserves under special statutory regulations	0		9,388	4,694
Reserves for pension and similar payables	0			0
Income tax reserves	0			0
Other reserves	1,914	2,246	4,440	5,289
Long-term payables	0	0	0	0
Trade payables	0			0
Payables to controlled and managed organizations	0			0
Payables to accounting units with substantial influence	0			0
Payables from partners, cooperative members and association members	0			0
Long-term advances received	0			0
Issues bonds	0			0
Long-term notes payables	0			0
Estimated payables	0			0
Other payables	0			0

Name	31/12/2014 1000 CZK balance	31/12/2013 1000 CZK balance	31/12/2012 1000 CZK balance	31/12/2011 1000 CZK balance
Deferred tax liability	0			0
Short-term payables	234,610	122,036	152,333	151,307
Trade payables	19,514	57,861	82,148	70,548
Payables to controlled and managed organizations	948			0
Payables to accounting units with substantial influence	0			0
Payables from partners, cooperative members and association members	0			0
Payroll	3,782	3,159	4,065	3,343
Payables to social securities and health insurance	1,998	1,699	1,801	1,858
Due from state - tax liabilities and subsidies	2,063	460	5,080	21,549
Short-term deposits received	198,033	49,574	26,105	34,782
Issues bonds	0			0
Estimated payables	8,088	6,462	32,938	13,570
Other payables	184	2,821	196	5,657
Bank loans and financial accommodations	0	42,508	9,815	111,181
Long-term bank loans	0	12,398	0	0
Short-term bank loans	0	30,110	9,815	111,181
Short-term accommodations	0	0	0	0
Accruals	2,673	0	61,516	59,090
Accrued expenses	0			0
Deferred revenues	2,673		61,516	59,090

Profit and loss accounts

Dec 31, 2014 The enclosed profit/loss account of 2014 from business register, -.

Dec 31, 2013 The enclosed profit/loss account of 2013 from business register, it is authenticated by the auditor.

Dec 31, 2012 The enclosed profit/loss account of 2012 from business register, it is authenticated by the auditor.

Dec 31, 2011 The enclosed profit/loss account of 2011 from business register

Name	31/12/2014 1000 CZK profit/loss account	31/12/2013 1000 CZK profit/loss account	31/12/2012 1000 CZK profit/loss account	31/12/2011 1000 CZK profit/loss account
Turnover	388,616	391,474	639,220	737,098
Revenues from sold goods	291	363	400	319
Expenses on sold goods	286	358	384	304
Sale margin	5	5	16	15
Production	491,433	413,883	650,700	651,396
Revenues from own products and services	388,325	391,111	638,820	736,779
Change in inventory of own products	103,108	22,772	11,637	-85,383

Name	31/12/2014 1000 CZK profit/loss account	31/12/2013 1000 CZK profit/loss account	31/12/2012 1000 CZK profit/loss account	31/12/2011 1000 CZK profit/loss account
Capitalization	0		243	0
Production consumption	367,779	326,035	499,579	435,694
Consumption of material and energy	208,574	205,900	356,093	223,129
Services	159,205	120,135	143,486	212,565
Added value	123,659	87,853	151,137	215,717
Personnel expenses	75,530	69,412	77,995	78,154
Wages and salaries	54,631	49,924	56,765	56,748
Renumeration of board members	0			0
Social security expenses and health insurance	18,575	17,097	18,699	19,278
Other social expenses	2,324	2,391	2,531	2,128
Taxes and fees	191	125	170	141
Depreciations of intangible and tangible assets	9,657	9,138	6,091	6,798
Revenues from disposals of fixed assets and materials	1,289	1,079	1,187	1,744
Revenues from disposals of fixed assets	478	4		0
Revenues from disposals of materials	811	1,075	1,187	1,744
Net book value of disposed fixed assets and materials	26	23	20	242
Net book value of sold fixed assets	22			0
Net book value of sold material	4	23	20	242
Change in operating reserves and adjustments and complex deferred costs ( + / -)	5,757	-11,228	11,478	5,393
Other operating revenues	2,817	2,222	943	1,150
Other operating expenses	4,804	1,835	6,959	5,663
Transfer of operating revenues	0			0
Transfer of operating expenses	0			0
Operating profit / loss	31,800	21,849	50,554	122,220
Revenues from sales of securities and ownership interests	0			0
Sold securities and ownership interests	0			0
Revenues from long-term financial assets	0	0		0
Revenues from shares in controlled and managed organizations and in accounting units with substantial influence	0			0
Revenues from others securities and ownership interests	0			0
Revenues from other long-term financial assets	0			0
Revenues from short-term financial assets	0			0
Expenses associated with financial assets	0			0
Revenues from revaluation of securities and derivatives	0		120	0
Cost of revalution of securities and derivatives	60	2,821	316	5,657

Name	31/12/2014 1000 CZK profit/loss account	31/12/2013 1000 CZK profit/loss account	31/12/2012 1000 CZK profit/loss account	31/12/2011 1000 CZK profit/loss account
Change in financial reserves and adjustments ( + /-)	0			0
Interest revenues	145	832	558	656
Interest expenses	1,211	1,122	837	4,232
Other financial revenues	8,305	22,763	22,759	25,624
Other financial expenses	11,803	18,876	26,767	37,845
Transfer of financial revenues	0			0
Transfer of financial expenses	0			0
Profit / loss from financial operations (transactions )	-4,624	776	-4,483	-21,454
Income tax on ordinary income	6,937	3,842	12,189	19,381
Due tax	8,031	3,279	11,500	13,952
Tax deferred	-1,094	563	689	5,429
Operating profit / loss ordinary activity	20,239	18,783	33,882	81,385
Extraordinary revenues	0			53
Extraordinary expenses	0			0
Income tax on extraordinary income	0	0		0
Due tax	0			0
Tax deferred	0			0
Operating profit / loss extraordinary activity	0	0	0	53
Transfer profit (loss ) to partners (+/-)	0			0
Profit / loss of current accounting period (+/-)	20,239	18,783	33,882	81,438
Profit / loss before tax (+/-)	27,176	22,625	46,071	100,819
Operating cash flow	143,820	-111,036	315,034	-102,392
Investment cash flow	-4,261	48,746	-126,591	-14,023
Financial cash flow	-97,558	31,097	-101,366	48,326
Receivables after due date total
Receivables more than 360 days after due date
Receivables more than 180 days after due date	2,460	2,433	4,985	370
Receivables more than 90 days after due date
Receivables more than 60 days after due date
Receivables more than 30 days after due date
Receivables less than 30 days after due date
Liabilities after due date total	1,585	7,341	4,558	10,649
Liabilities more than 360 days after due date
Liabilities more than 180 days after due date	383	362	362	384
Liabilities more than 90 days after due date
Liabilities more than 60 days after due date
Liabilities more than 30 days after due date
Liabilities less than 30 days after due date

Financial ratios

Name	31/12/2014	31/12/2013	31/12/2012	31/12/2011
Return on total assets ROA (in %)	5.38	4.84	8.87	17.39
Return on equity ROE (in %)	10.22	7.52	16.34	40.63
Return on sales ROS (in %)	25.52	21.10	26.31	49.92
Turnover of receivables (in days)	6.54	76.51	32.86	177.50
Turnover of liabilities (in days)	18.33	53.95	46.91	34.93
Turnover of inventories (days)	181.11	100.35	56.74	37.30
Net working capital (in ths. CZK)	166344.00	206159.00	217105.00	267137.00
Ratio of accounts payable to accounts receivable (in %)	7.59	83.88	65.89	239.16
Ratio of profit/loss to tangible assets (in%)	26.70	27.73	21.47	6.05
Current ratio	1.71	2.36	2.34	2.02
Quick ratio	0.88	1.63	1.67	1.73
Cash ratio	0.81	0.97	1.11	0.35
Debt ratio I (in %)	47.35	35.67	45.72	57.20
Debt ratio II (in %)	46.82	35.67	33.87	47.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.65
UK Pound	1	Rs.99.61
Euro	1	Rs.72.33
CZK	1	Rs.2.67

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	HEE
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.