MIRA INFORM REPORT

Report No. :	328317
Report Date :	23.03.2015

IDENTIFICATION DETAILS

Name :	KOVOSVIT MAS, A.S.
Registered Office :	Namesti Tomase Bati 419 391 02 Sezimovo Ústi II
Country :	Czech Republic
Financials (as on) :	31.12.2013
Date of Incorporation :	01.06.2002
Com. Reg. No.:	B 1257
Legal Form :	Public limited company
Line of Business :	Manufacture of metal forming machinery and machine tools
No. of Employee :	807 employees

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 name & address

KOVOSVIT MAS, A.S.
náměstí Tomáše Bati 419
391 02 Sezimovo Ústí II
telephone: 00420/ 381 631 111
telefax: 00420/ 381 276 372
e-mail: mas@kovosvit.cz
Web: www.kovosvit.cz

Company Summary

Company development

Constant company development

Order situation	Good course of business
Terms of payment	mostly within agreed terms, but partly also delayed

Business connection

Business connections appear permissible

Legal form

Public limited company

Foundation	01/06/2002 - Public limited company
Comp. Register	01/06/2002, Krajský soud České Budějovice, RegNr.: B 1257 Statistical number: 26047284 Tax number: CZ26047284

Share Capital	01/06/2002	CZK	666 200 000,-
	21/03/2006	CZK	715 900 000,-

	01/08/2008		CZK	412 000 000,-
10/12/2008		CZK			421 000 000,-

		421 pc of common registered shares in documentary form at nominal value of CZK 1 000 000,- CZK
Main Shareholder	FPK Group Limited Entrance C, Suite 2, Office 2, San Gwann, Triq taz-Zwejt, The Penthouse, Capital, Malta		%	100

Board of Directors	Ing. František Komárek (27.12.1957) K Náhonu 989, 190 00 Praha 9, Hloubětín chairman of board
	Ing. Larisa Táborová (12.04.1956) Okružní 350, 391 11 Planá nad Lužnicí

	Mgr. Patrik Komárek (09.11.1983) Elektrárenská 1484/11, 101 00 Praha 10, Michle
Supervisory Board	Ing. Pavel Kovář (15.07.1978) Dukelských bojovníků 2074, 390 03 Tábor chairman of supervisory board

František Veselý (14.08.1956)
Helsinská 2738, 390 05 Tábor
vice-chairman of supervisory board

Iva Říhová (14.08.1978)
Purkyňova 3224/58, Hodonín

General Data		Development, manufacture, service and sale of machine tools and accessories thereof; horizontal machining centers, vertical machining centers, five-axle vertical machining centers, vertical machining centers of portal constructions, production lathes and machining centers CNC universal centre lathes, multifunctional machining centers for machining and milling, manufacture of turbines.
	Main activity: Manufacture of metal forming machinery and machine tools

	Trade name(s) KOVOSVIT MAS, a.s. Beginning of validity: 01.06.2002
Export: Germany Poland Russia Slovakia Ukraine		63%

Import: Germany
	General contacts: telephone: 00420/ 381 631 111 telefax: 00420/ 381 276 372 e-mail: mas@kovosvit.cz Web: www.kovosvit.cz

Address:
náměstí Tomáše Bati 419, 391 02 Sezimovo Ústí II
Beginning of validity: 03.12.2003

nám. Tomáše Bati 419, 391 02 Sezimovo Ústí II
Beginning of validity: 01.06.2002
End of validity: 03.12.2003

Staff	2008	883 employees
	2009	661 employees

2010	545 employees
2011	599 employees

2012	653 employees
2013	715 employees

2014	780 employees
2015	807 employees

Annual Sales	2006	actual sales	CZK	1 547 587 000,-
	2007	actual sales	CZK	1 584 106 000,-

2008	actual sales	CZK	1 546 353 000,-
2009	actual sales	CZK	683 308 000,-

2010	actual sales	CZK	932 202 000,-
2011	actual sales	CZK	1 258 540 000,-

2012	actual sales	CZK	1 519 898 000,-
2013	actual sales	CZK	1 751 082 000,-

2014		actual sales	CZK	2 180 000 000,-
	The company is not registered in the Central register of executions.

Property	Property of the company: Business premises (verified in the real estate registry) CZ-391 02 Sezimovo Ústí, náměstí Tomáše Bati 419
	prohibition of alienation/burden contractual right of lien

Balance sheets	The enclosed balance of 2013 from business register, it is authenticated by the auditor. (31.12.2013 - 1 CZK) The enclosed balance of 2012 from business register, -. (31.12.2012 - 1 CZK) The enclosed balance of 2011 from business register, it is authenticated by the auditor. (31.12.2011 - 1 CZK)
	The enclosed profit/loss account of 2013 from business register, it is authenticated by the auditor. (31.12.2013 - 1 CZK) The enclosed profit/loss account of 2012 from business register, -. (31.12.2012 - 1 CZK) The enclosed profit/loss account of 2011 from business register, it is authenticated by the auditor. (31.12.2011 - 1 CZK)

Remarks

The company is a holder of ISO 9001 certificate. 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.

Management: Filip Winkelhofer - director general Pavel Kovář - financial director, phone: 00420/ 381 632 350, 00420/ 602 274 152 Petr Váradi - technical director Subsidiary company: - KOVOSVIT MASS Polska Sp.z o.o., Poland, share 100% - OOO MTE KOVOSVIT MAS, Russia, share 16% The firm was founded on 2.5.2002, share capital paid up by deposit of parts of the enterprise of the firm KOVOSVIT,a.s.; the company has assumed all the rights and duties of the organization unit of mother company KOVOSVIT a.s. including the trademark MAS. On 25.8.2006, the sole shareholder has decided upon assumption of the business property of the disappearing company ELTAS s.r.o, IČ 49060872, by the successor company KOVOSVIT MAS, a.s., IČ 26047284. To the company KOVOSVIT MAS, a.s. as to the successor company, property of the dissolved company KOVO DS, a.s., IČ 26042207 has been transferred on the basis of Agreement on fusion by merger concluded on July 8, 2008, with record date of merger on 1.1.2008; the latter cited company has been dissolved without liquidation. Contact: Ing. Makovec - controlling manager, phone: 00420/ 602 355 055, 381 632 358, e-mail: makovec@kovosvit.cz

Bankers

Česká spořitelna, a. s. Account number: 701575309/0800 Komerční banka, a.s. Account number: 8501301/0100 PPF banka a.s. Account number: 2014190000/6000 Account number: 2014190019/6000 Account number: 1007482/0800

(0800) (0100) (6000)

Financial Details

		balance		31.12.2010 (CZK)		31.12.2011 (CZK)		31.12.2012 (CZK)		31.12.2013 (CZK)
r1		TOTAL ASSETS		983 513 000		1 163 407 000		1 343 489 000		1 883 343 000
r2		Receivables for subscriptions		0		0				0
r3		Fixed assets		589 091 000		579 627 000		621 670 000		745 370 000
r4		Intangible fixed assets		5 098 000		3 284 000		2 378 000		5 105 000
r7		Software		2 244 000		1 574 000		1 247 000		4 593 000
r8		Valuable rights		2 787 000		1 643 000		1 064 000		484 000
r11		Intangible fixed assets under construction		67 000		67 000		67 000		28 000
r13		Tangible fixed assets		577 816 000		570 440 000		590 781 000		712 882 000
r14		Lands		18 732 000		18 732 000		18 732 000		18 732 000
r15		Constructions		301 947 000		297 164 000		313 111 000		348 536 000
r16		Equipment		177 198 000		227 492 000		223 300 000		300 282 000
r19		Other tangible fixed assets		73 000		73 000		72 000		72 000
r20		Tangible fixed assets under construction		84 087 000		28 332 000		32 254 000		36 222 000
r21		Advance payments for tangible fixed assets		1 954 000		3 839 000		7 520 000		12 263 000
r22		Adjustment to acquired assets		-6 175 000		-5 192 000		-4 208 000		-3 225 000
r23		Long-term financial assets		6 177 000		5 903 000		28 511 000		27 383 000
r24		Shares in controlled and managed organizations		480 000		206 000		2 000 000		872 000
r26		Other securities and shares		5 697 000		5 697 000		5 697 000		26 511 000
r29		Financial investments acquired						20 814 000
r31		Current assets		393 250 000		582 562 000		720 104 000		1 136 564 000
r32		Inventory		246 605 000		351 212 000		414 367 000		555 401 000
r33		Materials		37 878 000		76 774 000		72 692 000		79 611 000
r34		Work in progress and semi-products		120 922 000		191 096 000		217 420 000		333 646 000
r35		Finished products		67 447 000		58 368 000		99 432 000		115 721 000
r37		Merchandise		11 074 000		12 531 000		8 732 000		14 469 000
r38		Advance payments for inventory		9 284 000		12 443 000		16 091 000		11 954 000
r39		Long-term receivables		4 318 000		2 212 000		274 000		220 000
r40		Trade receivables		4 106 000		2 144 000		113 000		90 000
r44		Long-term deposits given				1 000		1 000		1 000
r46		Other receivables		212 000		67 000		160 000		129 000
r48		Short-term receivables		135 194 000		220 938 000		302 790 000		553 950 000
r49		Trade receivables		118 288 000		204 063 000		241 304 000		449 167 000
r50		Receivables from controlled and managed organizations		13 982 000		2 094 000		453 000
r54		Due from state - tax receivable		40 000		7 949 000		10 768 000		11 571 000
r55		Short-term deposits given		109 000		115 000		114 000		301 000
r56		Estimated receivable		-758 000		6 352 000		9 317 000		23 025 000
r57		Other receivables		3 533 000		365 000		40 834 000		69 886 000
r58		Short-term financial assets		7 133 000		8 200 000		2 673 000		26 993 000
r59		Cash		415 000		224 000		238 000		370 000
r60		Bank accounts		6 718 000		7 976 000		2 435 000		26 623 000
r63		Accruals		1 172 000		1 218 000		1 715 000		1 409 000
r64		Deferred expenses		711 000		663 000		1 004 000		1 409 000
r65		Complex deferred costs		80 000		34 000		0
r66		Deferred income		381 000		521 000		711 000
r67		TOTAL LIABILITIES		983 513 000		1 163 407 000		1 343 490 000		1 883 343 000
r68		Equity		480 184 000		544 146 000		743 179 000		804 077 000
r69		Registered capital		421 000 000		421 000 000		421 000 000		421 000 000
r70		Registered capital		421 000 000		421 000 000		421 000 000		421 000 000
r73		Capital funds		52 098 000		51 846 000		53 640 000		52 512 000
r74		Share premium		51 986 000		51 986 000		51 986 000		51 986 000
r75		Other capital funds				22 000		22 000		22 000
r76		Differences from revaluation of assets and liabilities ( +/- )		112 000		-162 000		1 632 000		504 000
r78		Reserve funds, statutory reserve account for cooperatives, and other retained earnings		20 314 000		50 050 000		53 261 000		63 273 000
r79		Legal reserve fund / indivisible fund		20 264 000				3 211 000		13 223 000
r80		Statutory and other funds		50 000		50 050 000		50 050 000		50 050 000
r81		Profit / loss - previous years		59 742 000		-42 964 000		15 039 000		125 267 000
r82		Retained earnings from previous years		59 742 000				15 039 000		125 267 000
r83		Accumulated losses from previous years				-42 964 000		0
r84		Profit / loss - current year (+/-)		-72 970 000		64 214 000		200 239 000		142 025 000
r85		Liabilities		503 329 000		619 004 000		599 810 000		1 078 437 000
r86		Reserves		39 483 000		52 663 000		39 083 000		65 940 000
r90		Other reserves		39 483 000		52 663 000		39 083 000		65 940 000
r91		Long-term payables		26 616 000		15 658 000		3 915 000		0
r100		Other payables		26 616 000		15 658 000		3 915 000
r102		Short-term payables		272 242 000		353 461 000		438 960 000		660 052 000
r103		Trade payables		135 402 000		201 760 000		237 996 000		303 972 000
r104		Payables to controlled and managed organizations		429 000
r106		Payables from partners, cooperative members and association members		48 000		48 000		48 000		80 048 000
r107		Payroll		11 022 000		12 764 000		23 671 000		16 669 000
r108		Payables to social securities and health insurance		6 284 000		7 459 000		10 942 000		9 641 000
r109		Due from state - tax liabilities and subsidies		2 796 000		1 411 000		10 153 000		28 248 000
r110		Short-term deposits received		59 840 000		62 913 000		86 878 000		113 483 000
r112		Estimated payables		38 936 000		45 535 000		46 563 000		85 860 000
r113		Other payables		17 485 000		21 571 000		22 709 000		22 131 000
r114		Bank loans and financial accommodations		164 988 000		197 222 000		117 852 000		352 445 000
r115		Long-term bank loans		0		0				46 000 000
r116		Short-term bank loans		164 988 000		197 222 000		117 852 000		306 445 000
r117		Short-term accommodations		0		0				0
r118		Accruals		0		257 000		501 000		829 000
r119		Accrued expenses				257 000		501 000		829 000
	profit/loss account		31.12.2010 (CZK)		31.12.2011 (CZK)		31.12.2012 (CZK)		31.12.2013 (CZK)
a1	Turnover		932 202 000		1 258 540 000		1 519 898 000		1 751 082 000
a2	Revenues from sold goods		41 641 000		52 618 000		63 357 000		74 830 000
a3	Expenses on sold goods		37 016 000		43 951 000		53 400 000		58 310 000
a4	Sale margin		4 625 000		8 667 000		9 957 000		16 520 000
a5	Production		812 276 000		1 278 279 000		1 546 983 000		1 823 018 000
a6	Revenues from own products and services		890 561 000		1 205 922 000		1 456 541 000		1 676 252 000
a7	Change in inventory of own products		-90 309 000		53 506 000		61 453 000		128 491 000
a8	Capitalization		12 024 000		18 851 000		28 989 000		18 275 000
a9	Production consumption		618 406 000		892 118 000		1 063 948 000		1 280 258 000
a10	Consumption of material and energy		520 807 000		751 888 000		888 851 000		1 015 660 000
a11	Services		97 599 000		140 230 000		175 097 000		264 598 000
a12	Added value		198 495 000		394 828 000		492 992 000		559 280 000
a13	Personnel expenses		223 143 000		264 320 000		329 071 000		335 865 000
a14	Wages and salaries		163 561 000		193 541 000		245 965 000		246 898 000
a15	Renumeration of board members		252 000		685 000		1 620 000		1 620 000
a16	Social security expenses and health insurance		55 024 000		66 851 000		77 952 000		83 322 000
a17	Other social expenses		4 306 000		3 243 000		3 534 000		4 025 000
a18	Taxes and fees		2 318 000		1 414 000		2 872 000		2 615 000
a19	Depreciations of intangible and tangible assets		56 041 000		55 577 000		60 359 000		61 235 000
a20	Revenues from disposals of fixed assets and materials		4 267 000		5 031 000		39 611 000		5 263 000
a21	Revenues from disposals of fixed assets		2 407 000		1 592 000		36 284 000		2 707 000
a22	Revenues from disposals of materials		1 860 000		3 439 000		3 327 000		2 556 000
a23	Net book value of disposed fixed assets and materials		2 777 000		3 525 000		3 299 000		2 953 000
a24	Net book value of sold fixed assets		414 000		32 000		0		471 000
a25	Net book value of sold material		2 363 000		3 493 000		3 299 000		2 482 000
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )		-26 971 000		3 409 000		-13 471 000		26 808 000
a27	Other operating revenues		10 096 000		18 887 000		77 614 000		27 171 000
a28	Other operating expenses		12 670 000		9 216 000		12 614 000		10 835 000
a31	Operating profit / loss		-57 120 000		81 285 000		215 473 000		151 403 000
a34	Revenues from long-term financial assets		0				0
a43	Interest revenues		134 000		37 000		213 000		2 000
a44	Interest expenses		11 207 000		8 163 000		7 184 000		6 563 000
a45	Other financial revenues		7 248 000		6 149 000		16 788 000		8 468 000
a46	Other financial expenses		12 228 000		15 094 000		18 950 000		17 386 000
a49	Profit / loss from financial operations ( transactions )		-16 053 000		-17 071 000		-9 133 000		-15 479 000
a50	Income tax on ordinary income		-203 000		0		0		0
a51	Due tax		-203 000
a53	Operating profit / loss ordinary activity		-72 970 000		64 214 000		206 340 000		135 924 000
a55	Extraordinary expenses						6 101 000		-6 101 000
a56	Income tax on extraordinary income		0
a59	Operating profit / loss extraordinary activity		0		0		-6 101 000		6 101 000
a61	Profit / loss of current accounting period (+/-)		-72 970 000		64 214 000		200 239 000		142 025 000
a62	Profit / loss before tax (+/-)		-73 173 000		64 214 000		200 239 000		142 025 000
	Operating cash flow		262 752 000		36 006 000		174 463 000		-65 390 000
	Investment cash flow		-102 286 000		-56 237 000		-88 877 000		-140 969 000
	Financial cash flow		-184 405 000		21 297 000		-91 113 000		230 679 000
	Receivables after due date total		51 035 000		72 158 000		87 811 000		167 835 000
	Receivables more than 180 days after due date		27 786 000		28 056 000		35 315 000		45 796 000
	Liabilities after due date total		35 096 000		38 144 000		37 286 000		64 288 000
	Liabilities more than 180 days after due date		4 247 000		1 425 000		483 000		2 444 000

Balance indices		31.12.2010	31.12.2011	31.12.2012	31.12.2013
Return on total assets ROA (in %)	a62/r1 * 100	-7,44	5,52	14,90	7,54
Return on equity ROE (in %)	a62/r68 * 100	-15,24	11,80	26,94	17,66
Return on sales ROS (in %)	a62/a1 * 100	-7,85	5,10	13,17	8,11
Turnover of receivables (in days)	r49/a1 * 365	46,32	59,18	57,95	93,63
Turnover of liabilities (in days)	r103/a1 * 365	53,02	58,51	57,15	63,36
Turnover of inventories (days)	r32/a1 * 365	96,56	101,86	99,51	115,77
Net working capital (in ths. CZK)	r31 - r102 - r116 - r117	-43 980,00	31 879,00	163 292,00	170 067,00
Ratio of accounts payable to accounts receivable (in %)	(r39+r48) / (r91+r102) * 100	46,68	60,45	68,43	83,96
Ratio of profit/loss to tangible assets (in%)	r3 / a1 * 100	63,19	46,06	40,90	42,57
Current ratio	r31 / (r102+r116+r117)	0,90	1,06	1,29	1,18
Quick ratio	(r58+r48) / (r102+r116+r117)	0,33	0,42	0,55	0,60
Cash ratio	r58 / (r102+r116+r117)	0,02	0,01	0,00	0,03
Debt ratio I (in %)	(1-r68/r67) * 100	51,18	53,23	44,68	57,31
Debt ratio II (in %)	r85/r67 * 100	51,18	53,21	44,65	57,26

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.94
UK Pound	1	Rs.98.27
Euro	1	Rs.72.37

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	SDA

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.