MIRA INFORM REPORT

Report No. :	333652
Report Date :	30.07.2015

IDENTIFICATION DETAILS

Name :	INTERSTONE SP. Z O.O.
Registered Office :	ul. Słowackiego 4C/14 34-120 Andrychów
Country :	Poland
Financials (as on) :	31.12.2014
Date of Incorporation :	31.03.2000
Legal Form :	Limited liability company
Line of Business :	Import and sale of plates and finished elements made of natural stone; Transport services.
No. of Employee :	31

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 :	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 – 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 and address

INTERSTONE Sp. z o.o.

ul. Słowackiego 4C/14
34-120 Andrychów

Phone:    33 8704690 do 92

33 8751900

Fax:      33 8704692

E-mail:   interstone@interstone.pl

Website:  www.interstone.pl

Company summary

Legal form	Limited liability company
Stat.no.	357182250
Tax ID	PL 5512240974
Establishment	31.03.2000
Changes of names and addresses	ul. Batorego 35/107, 34-120 Andrychów
	11.03.2002  ul. Słowackiego 4C/14, 34-120 Andrychów
Registration:	17.07.2001, District Court Kraków, XII Department, KRS 26542 Data concerning previous registrations: 16.05.2000, District Court Bielsko-Biała, RHB 3827
Shareholders	Wiesław Sordyl , personal ID no. (PESEL) 71110310732, ul. Zgierska 8, 99-120 Piątek		PLN		865 000,00 55,66%
	Tadeusz Wysocki , personal ID no. (PESEL) 73070103094, ul. Kilińskiego 14/4, 59-300 Lubin		PLN		605 000,00 38,93%
	Sławomir Hardy , ul. Górna Droga 2/508, 04-413 Warszawa		PLN		42 000,00 2,70%
	Rafał Sordyl , personal ID no. (PESEL) 80082013257, Targanice, ul. Dobra 1, 34-120 Andrychów		PLN		42 000,00 2,70%
	list entered to NCR /KRS/ on  06.11.2014
Initial Capital				PLN 1 554 000,00
	Initial capital divided into 1554 shares of PLN 1 000,00 each
	Changes of initial capital
	-  until 28.03.2008  the capital estimated			PLN 222 000,00
Management	Wiesław Sordyl , personal ID no. (PESEL) 71110310732, ul. Zgierska 8, 99-120 Piątek  - president
	Proxies: Elżbieta Stanisława Kamuda , personal ID no. (PESEL) 77100316548, Inwałd, ul. Wadowicka 49, 34-120 Andrychów  - independent proxy Bożena Klimczyńska , personal ID no. (PESEL) 77010111905  - independent proxy Tadeusz Wysocki , personal ID no. (PESEL) 73070103094, ul. Kilińskiego 14/4, 59-300 Lubin  - joint proxy
	Representation: since 14.11.2012  Each member of the board of directors individually.
Main activity	Import and sale of plates and finished elements made of natural stone; Transport services
	Branches NACE 2007:
	Other wholesale			(G.46.73.Z)
	Other transportation activities			(H.49.41.Z)
Employment	2006:              27        employees 2007:              29        employees 2008:              25        employees 2010:              40        employees 2014:              31        employees
Turnover	2010	PLN	29 260 918,59
	2011	PLN	34 633 837,75
	2012	PLN	32 519 034,18
	2013	PLN	29 912 085,72
	2014	PLN	33 378 659,68

Financial statements

Source of financial data	Court	Court	Court	Court
	annual	annual	annual	annual
Personal balance sheet as at	31.12.2014 (PLN)	31.12.2013 (PLN)	31.12.2012 (PLN)	31.12.2011 (PLN)
-A. Fixed assets......................	4 122 330,90	3 557 105,41	3 746 193,41	4 524 308,00
-  II.  Tangible assets...............	3 492 214,80	3 184 322,14	3 487 172,65	4 133 911,20
-    1. Fixed goods...................	3 455 909,80	3 087 471,61	3 487 172,65	4 133 911,20
-      a) land........................	13 954,07	13 954,07	13 954,07	13 954,07
-      b) buildings, premises, facilities............................	1 114 418,92	935 138,14	994 308,21	926 336,76
-      c) machinery and equipment.....	434 130,41	474 853,15	531 950,92	593 026,31
-      d) fleet of motor vehicles.....	1 475 293,31	1 452 842,30	1 718 071,80	2 358 228,51
-      e) other fixed goods...........	418 113,09	210 683,95	228 887,65	242 365,55
-    2. Fixed goods under construction..........................		95 962,73
-    3. Prepayments for fixed goods under construction....................	36 305,00	887,80
-  III. Long term receivables.........	1 569,00	1 449,00	1 449,00	1 837,40
-    2. Other receivables.............	1 569,00	1 449,00	1 449,00	1 837,40
-  IV.  Long term investments.........	5 978,00
-    3. Long term financial assets....	5 978,00
-      a) in affiliated companies.....	5 978,00
-        - participations or shares...	5 978,00
-V. Long-term prepayments and accrued income........................	622 569,10	371 334,27	257 571,76	388 559,40
-  1. Deferred tax assets.............	586 876,00	321 434,00	151 066,00	266 716,72
-  2. Other prepayments...............	35 693,10	49 900,27	106 505,76	121 842,68
-B. Current assets....................	18 977 032,43	15 182 012,12	13 212 627,13	13 389 021,73
-  I.   Stock.........................	15 746 911,35	12 133 214,93	11 824 672,96	11 499 269,63
-    4. Goods for re-sale.............	15 577 569,05	12 066 403,37	11 801 734,18	11 479 571,78
-    5. Advance payments .............	169 342,30	66 811,56	22 938,78	19 697,85
-  II. Short-term receivables.........	2 559 692,81	2 469 350,08	1 058 596,11	1 550 577,31
-    2. Other receivables ............	2 559 692,81	2 469 350,08	1 058 596,11	1 550 577,31
-      a) Due to deliveries and services with payment period:.........	2 409 769,62	2 408 917,63	934 887,89	1 383 069,49
-        - up to 12 months............	2 409 769,62	2 408 917,63	934 887,89	1 383 069,49
-      b) Due to taxes, subsidies, insurances, duties, etc...............	87 717,20	51 475,18	105 940,16	150 827,96
-      c) Other.......................	62 205,99	8 957,27	17 768,06	16 679,86
-  III. Short term investments........	400 682,58	249 413,75	122 591,72	105 407,42
-    1. Short-term financial assets...	400 682,58	249 413,75	122 591,72	105 407,42
-      c) cash and other liquid assets................................	400 682,58	249 413,75	122 591,72	105 407,42
-        - cash in hand and on bank account...............................	400 682,58	97 150,52	122 591,72	105 407,42
-        - other liquid assets........		152 263,23
-IV. Short-term prepayments and accrued income........................	269 745,69	330 033,36	206 766,34	233 767,37
-D. Total assets......................	23 099 363,33	18 739 117,53	16 958 820,54	17 913 329,73
-A. Shareholders' equity..............	4 345 476,15	4 333 792,99	3 934 143,81	3 433 430,32
-  I.   Basic share capital...........	1 554 000,00	1 554 000,00	1 554 000,00	1 554 000,00
-  IV.  Statutory reserve capital.....	2 779 792,99	2 380 143,81	1 828 148,32	1 728 555,75
-  VIII. Net profit (loss)............	11 683,16	399 649,18	551 995,49	150 874,57
-B. Liabilities and reserves for liabilities...........................	18 753 887,18	14 405 324,54	13 024 676,73	14 479 899,41
-  I.   Reserves for liabilities......	304 427,00	400 368,66	347 933,23	317 513,19
-    1. Deferred income tax reserves..	304 427,00	295 435,00	255 385,00	236 708,97
-    2. Reserves for pensions and similar social payments...............		10 000,00	10 000,00	10 000,00
-      - long-term....................		10 000,00	10 000,00	10 000,00
-    3. Other reserves................		94 933,66	82 548,23	70 804,22
-      - short-term...................		94 933,66	82 548,23	70 804,22
-II.  Long-term liabilities...........	1 174 843,98	214 340,28	801 759,56	985 262,79
-  2. Other liabilities...............	1 174 843,98	214 340,28	801 759,56	985 262,79
-    a) Loans.........................	832 342,23		385 000,00
-    c) Other financial liabilities...	342 501,75	214 340,28	416 759,56	985 262,79
-III. Short-term liabilities..........	17 274 616,20	13 790 615,60	11 874 983,94	13 177 123,43
-  2. Other liabilities...............	17 274 616,20	13 790 615,60	11 874 983,94	13 177 123,43
-    a) Loans.........................	1 132 068,28	1 390 213,80	954 840,49	1 135 734,40
-    c) Other financial liabilities...	215 032,19	194 956,98	523 803,19	949 312,54
-    d)Due to deliveries and services with payment period:.........	14 177 549,27	11 122 198,88	9 340 518,20	10 276 592,97
-      - up to 12 months..............	14 177 549,27	11 122 198,88	9 340 518,20	10 276 592,97
-    e) Advances received.............	590 025,55	284 659,28	307 060,37	114 855,51
-    g) Due to taxes, subsidies, insurances, duties, etc...............	947 511,23	637 424,14	399 284,17	333 817,05
-    h) Due to salaries...............	142 420,97	131 095,06	120 274,46	138 128,39
-    i) Other.........................	70 008,71	30 067,46	229 203,06	228 682,57
-D. Total liabilities.................	23 099 363,33	18 739 117,53	16 958 820,54	17 913 329,73
Source of financial data	Court	Court	Court	Court
	annual	annual	annual	annual
individual PROFIT AND LOSS ACCOUNT	01.01.2014- 31.12.2014 (PLN)	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.....	33 378 659,68	29 912 085,72	32 519 034,18	34 633 837,75
-  I.   Net income on sales...........	686 404,04	706 815,71	876 294,90	958 797,08
-  III. Sales of goods for own use....	196 289,62	182 841,09
-  IV.  Income from sales of goods and materials.........................	32 495 966,02	29 022 428,92	31 642 739,28	33 675 040,67
-B. Operational costs.................	32 971 173,00	29 749 190,90	32 039 769,11	32 587 948,37
-  I.   Depreciation..................	416 253,92	404 760,98	458 467,92	489 609,52
-  II.  Materials and energy..........	1 282 850,52	1 069 730,81	553 299,06	673 088,23
-  III. Third party services..........	3 218 275,03	3 425 227,48	3 925 714,24	4 105 495,76
-  IV.  Taxes and duties..............	11 116,73	11 918,95	11 316,23	17 516,84
-    - including excise tax...........			122,00
-  V.   Salaries and wages............	2 178 441,75	1 914 502,15	2 166 051,17	2 127 127,53
-  VI.  Social security...............	347 020,31	311 801,78	392 474,98	345 116,65
-  VII. Other.........................	1 346 124,99	869 643,71	1 159 773,85	1 072 662,19
-  VIII.Costs of goods and materials sold..................................	24 171 089,75	21 741 605,04	23 372 671,66	23 757 331,65
-C. Profit on sale....................	407 486,68	162 894,82	479 265,07	2 045 889,38
-D. Other operating incomes...........	1 166 928,55	660 004,03	474 847,89	240 510,73
-  II.  Subsidies.....................	178 180,00	20 055,00	23 211,65	19 423,17
-  III. Other operating incomes.......	988 748,55	639 949,03	451 636,24	221 087,56
-E. Other operating costs.............	264 254,27	248 637,30	605 888,87	204 852,18
-  I.   Loss on disposal of non-finacial assets...................	48 594,40		23 515,01	12 482,46
-  II.  Goodwill revaluation..........	34 070,40	58 933,16	348 533,89	84 420,40
-  III. Other operating costs.........	181 589,47	189 704,14	233 839,97	107 949,32
-F. Profit on operating activities....	1 310 160,96	574 261,55	348 224,09	2 081 547,93
-G. Financial incomes.................	61 876,83	110 844,82	871 320,74	103 709,72
-  II.  Interest received.............	13 844,45	16 104,33	12 346,71	7 802,58
-  V.   Other.........................	48 032,38	94 740,49	858 974,03	95 907,14
-H. Financial costs...................	1 168 099,63	280 796,19	533 222,59	1 961 528,23
-  I.   Interest......................	135 829,70	144 981,18	328 986,12	333 900,73
-  IV.  Other.........................	1 032 269,93	135 815,01	204 236,47	1 627 627,50
-I. Profit on economic activity.......	203 938,16	404 310,18	686 322,24	223 729,42
-K. Gross profit......................	203 938,16	404 310,18	686 322,24	223 729,42
-L. Corporation tax...................	192 255,00	4 661,00	134 326,75	72 854,85
-N. Net profit........................	11 683,16	399 649,18	551 995,49	150 874,57

AUDITOR

Balance sheet as at 31.12.2014
K & F AUDIT Sp. z o.o., os. Złotego Wieku 31/16, 31-618 Kraków	No. 2946

Expert auditor Hubert Franczyk

No. 10044

Ratios	01.01.2014- 31.12.2014	01.01.2013- 31.12.2013	01.01.2012- 31.12.2012	01.01.2011- 31.12.2011
Current ratio	1,10	1,10	1,11	1,02
Quick ratio	0,17	0,20	0,10	0,13
Immediate ratio	0,02	0,02	0,01	0,01
Return on sale	0,04	1,34	1,70	0,44
Return on assets	0,05	2,13	3,25	0,84
Return on equity	0,27	9,22	14,03	4,39
Average trade debtors' days	27,99	30,13	11,91	16,34
Average stock turnover's days	172,19	148,05	133,09	121,19
average payables payment period	188,90	168,28	133,65	138,87
Total indebtedness ratio	81,19	76,87	76,80	80,83

While rating the company, it is advisable to take into consideration information about the branch, the company is acting in
(G.46.73.Z - NACE 2007), as at :	31.03.2015	31.12.2014	31.12.2013	31.12.2012	31.12.2011
Current ratio............................	1,48	1,48	1,39	1,32	1,36
Quick ratio..............................	0,88	0,87	0,84	0,77	0,82
Immediate ratio..........................	0,12	0,14	0,13	0,10	0,10
Return on sale...........................	0,44	1,68	1,11	1,19	1,62
Return on assets.........................	0,19	3,41	2,31	2,56	3,51
Return on equity.........................	0,41	7,32	5,19	6,05	8,35
Average trade debtors' days..............	66,70	54,85	56,59	55,62	58,73
Average stock turnover's days............	53,13	45,71	43,53	45,71	43,58
average payables payment period..........	91,30	76,73	81,26	85,10	82,80
Total indebtedness ratio.................	53,27	53,39	55,41	57,70	57,91
Percent share in the examinated group of companies with net profit.............	50,00	84,60	81,00	75,10	81,40
Sales/revenue per employee in th. PLN....	196,22	867,97	811,58	808,72	818,58
Average sales/revenue per company in th. PLN..................................	25 612,75	112 206,50	102 474,79	99 986,58	106 329,08
according to the Central Statistical Office

Locations:

seat: ul. Słowackiego 4C/14, 34-120 Andrychów Phone:                   33 8704690 do 92                          33 8751900 Fax:                     33 8704692 E-mail:                  elzbietakamuda@interstone.pl                          interstone@interstone.pl Website:                 www.interstone.pl warehouses: Adamowice, ul. Styropianowa 2, 96-320 Mszczonów Phone:                   46 8572447 Fax:                     46 8572448 ul. Św. Michała 58, 61-118 Poznań ul. Kroczymiech 38G, 32-500 Chrzanów ul. Grabiszyńska 241, 53-234 Wrocław

Real Estate

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 31.12.2014  book value of car fleet was: PLN 1 475 293,31

Shares in other companies	LAMINAM POLAND sp. z o.o., ul. Słowackiego 4c/14, 34-120 Andrychów PLN 5 000,00 (100,00%)
	Data concerning shares in other companies are valid as at: 06.07.2015.
Connections:	Tadeusz Wysocki , personal ID no. (PESEL) 73070103094 -  SOLE Sp.z o.o. NIP 5512091132, Andrychów ul. Słowackiego Juliusza 4C/14   · shareholder: PLN 592 000,00 (46,98%) Rafał Sordyl , personal ID no. (PESEL) 80082013257 -  SOLE Sp.z o.o. NIP 5512091132, Andrychów ul. Słowackiego Juliusza 4C/14   · proxy Bożena Klimczyńska , personal ID no. (PESEL) 77010111905 -  SOLE Sp.z o.o. NIP 5512091132, Andrychów ul. Słowackiego Juliusza 4C/14   · proxy Wiesław Sordyl , personal ID no. (PESEL) 71110310732 -  LAMINAM POLAND sp. z o.o., ul. Słowackiego 4c/14, 34-120 Andrychów   · president -  SOLE Sp.z o.o. NIP 5512091132, Andrychów ul. Słowackiego Juliusza 4C/14   · shareholder: PLN 668 000,00 (53,02%)   · president Elżbieta Stanisława Kamuda , personal ID no. (PESEL) 77100316548 -  LAMINAM POLAND sp. z o.o., ul. Słowackiego 4c/14, 34-120 Andrychów   · proxy -  SOLE Sp.z o.o. NIP 5512091132, Andrychów ul. Słowackiego Juliusza 4C/14   · proxy Sławomir Hardy  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: 06.07.2015.
General information	The company refused to co-operate in elaboration of this report without knowing the name of the contractor.
Banks	Names of banks were not disclosed
Payment Manner	Nothing detrimental noted.	(27)
Credit capability	Business connections appear permissible Maximum credit PLN  282 000,00	(32)
	We would like to draw your attention to: - long period of liabilities repayment - high level of the debt ratio

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.89
UK Pound	1	Rs.99.71
Euro	1	Rs.70.63

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	ANK

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.