MIRA INFORM REPORT

Report No. :	319246
Report Date :	06.05.2015

IDENTIFICATION DETAILS

Name :	ETO MAGNETIC SP. Z O.O.

Registered Office :	ul. Eugeniusza Kwiatkowskiego 7 52-407 Wrocław

Country :	Germany

Financials (as on) :	31.12.2013

Date of Incorporation :	21.06.2000

Legal Form :	Limited liability company

Line of Business :	Manufacture of electromagnets and electrical equipment - electromagnetic components for vehicle technology, industrial plumbing and special areas of construction machinery and equipment Manufacture of electric motors, generators and transformers

No. of Employee :	398 (2013)

RATING & COMMENTS

MIRA’s Rating :

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 – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Germany

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

GERMANY ECONOMIC OVERVIEW

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II - and its decrease to 5.3% in 2014. The new German government introduced a minimum wage of about $11.60 (8.50 euros) per hour to take effect in 2015. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including federal, state, and municipal - to 4.1% in 2010, but slower spending and higher tax revenues reduced the deficit to 0.8% in 2011 and in 2012 Germany reached a budget surplus of 0.1%. The budget was essentially in balance in 2014. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016 though the target was already reached in 2012. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela MERKEL announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany plans to replace nuclear power with renewable energy, which accounts for 34% of total energy consumption, up from 9% in 2000. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production.

Source : CIA

Company name and address

	ETO MAGNETIC SP. Z O.O.

	ul. Eugeniusza Kwiatkowskiego 7 52-407 Wrocław
	Phone: 71 3884300
	Fax: 71 3884306, 3370289
	E-mail: info@etomagnetic.pl
	Website: http://www.etomagnetic.de

Company summary

Legal form	Limited liability company
Stat.no.	932243451
Tax ID	PL 8951729673

Establishment	21.06.2000
Changes of names and addresses	ul. Kamieńskiego 201-219, 51-126 Wrocław
	21.11.2007 ul. Eugeniusza Kwiatkowskiego 7, 52-407 Wrocław

Registration:

28.12.2001, District Court Wrocław VI Department, KRS 71886

Data concerning previous registrations:
29.08.2000, District Court Wrocław, RHB 9648


Shareholders	ETO GRUPPE BETEILIGUNGEN GMBH, Hardtring 8, Stockach, Germany	PLN	10 000 000,00 100,00%

	list entered to NCR /KRS/ on 02.01.2012

Initial Capital		PLN 10 000 000,00
	Initial capital divided into 10000 shares of PLN 1 000,00 each
	Changes of initial capital
	- until 21.12.2004 the capital estimated	PLN 5 000 000,00
	An in-kind contribution has been made and valued at in form of receivables	PLN 8 000 000,00

Management	Michael Schwabe , Wilhelm-Beck-str. 8, 88662 Uberlingen, Germany - president Krzysztof Żaba , personal ID no. (PESEL) 68080804695 - member of board of directors

	Representation: since 31.07.2014 Each member of the board of directors individually.

Main activity	manufacture of electromagnets and electrical equipment - electromagnetic components for vehicle technology, industrial plumbing and special areas of construction machinery and equipment;
	Branches NACE 2007:
	Manufacture of electric motors, generators and transformers
	Manufacture of electrical and electronical equioment for motor vehicles
	Wholesale of motor vehicle parts and accessories, excluding motorcycles
	Other financial services
	Architectural activities

Employment

2009:              206       employees
2010:              304       employees
2011:              285       employees
2012:              330       employees
2013:              398       employees

Turnover	2009	PLN	66 019 719,31
	2010	PLN	131 115 774,63
	2011	PLN	189 735 830,71
	2012	PLN	183 300 352,34
	2013	PLN	233 108 943,00

Financial statements

As at the day the report was prepared, there is no information in the register that the company filed to court the financial statement for the most recent accounting period.
The company is obliged to submit financial statement to court within 15 days from the date of its approval which in turn should occur not later than 6 months form the balance date.

Source of financial data	Court	Court	Court	Court
	annual	annual	annual	annual
Personal balance sheet as at	31.12.2013 (PLN)	31.12.2012 (PLN)	31.12.2011 (PLN)	31.12.2010 (PLN)
-A. Fixed assets......................	67 052 819,66	65 051 265,50	70 652 330,77	71 349 214,49
- I. Intangible assets.............	8 745 001,52	5 809 767,17	6 258 224,12	6 329 104,11
- 3. Other intangible assets.......	8 745 001,52	5 809 767,17	5 835 168,07	5 154 487,07
- 4. Prepayments for intangible assets................................			423 056,05	1 174 617,04
- II. Tangible assets...............	56 931 277,14	58 345 328,33	62 854 202,65	64 053 087,38
- 1. Fixed goods...................	55 839 450,08	58 012 806,28	60 660 409,70	63 957 865,20
- a) land........................	7 341 509,82	7 341 509,82	7 341 509,82	7 341 509,82
- b) buildings, premises, facilities............................	27 517 569,04	28 244 144,55	29 104 871,99	30 016 042,39
- c) machinery and equipment.....	18 209 638,55	19 705 404,25	21 202 077,72	21 905 385,66
- d) fleet of motor vehicles.....	163 050,93	199 702,22	262 318,58	318 748,33
- e) other fixed goods...........	2 607 681,74	2 522 045,44	2 749 631,59	4 376 179,00
- 2. Fixed goods under construction..........................	972 556,46	332 522,05	2 193 792,95	95 222,18
- 3. Prepayments for fixed goods under construction....................	119 270,60
-V. Long-term prepayments and accrued income........................	1 376 541,00	896 170,00	1 539 904,00	967 023,00
- 1. Deferred tax assets.............	1 376 541,00	896 170,00	1 539 904,00	967 023,00
-B. Current assets....................	55 523 629,90	41 080 163,88	55 225 662,88	35 103 188,77
- I. Stock.........................	21 103 875,01	15 146 050,48	16 489 341,14	17 614 051,05
- 1. Raw materials.................	12 804 090,80	11 129 994,40	11 152 624,04	11 946 499,59
- 2. Semi-finished products and work-in-progress......................	1 569 166,23	782 220,26	376 702,13	541 790,16
- 3. Finished products.............	3 714 369,70	1 630 172,91	2 320 184,00	1 441 444,48
- 4. Goods for re-sale.............	2 158 770,85	1 547 262,46	1 547 854,73	1 214 473,57
- 5. Advance payments .............	857 477,43	56 400,45	1 091 976,24	2 469 843,25
- II. Short-term receivables.........	23 379 011,01	14 728 814,83	16 347 249,98	14 759 309,88
- 1. Receivables from affiliated companies.............................	1 293 535,74	794 215,39	693 289,21	776 969,84
- a) Due to deliveries and services with payment period:.........	1 293 535,74	794 215,39	693 289,21	776 969,84
- - up to 12 months............	1 293 535,74	794 215,39	693 289,21	776 969,84
- 2. Other receivables ............	22 085 475,27	13 934 599,44	15 653 960,77	13 982 340,04
- a) Due to deliveries and services with payment period:.........	20 392 777,65	13 837 083,65	15 530 166,13	13 812 849,51
- - up to 12 months............	20 392 777,65	13 837 083,65	15 530 166,13	13 812 849,51
- b) Due to taxes, subsidies, insurances, duties, etc...............	1 548 031,86	94 331,33	123 794,64	145 248,13
- c) Other.......................	144 665,76	3 184,46		24 242,40
- III. Short term investments........	11 001 998,62	11 108 269,16	22 347 730,08	2 684 430,59
- 1. Short-term financial assets...	11 001 998,62	11 108 269,16	22 347 730,08	2 684 430,59
- a) in affiliated companies.....		4 070 382,51	18 479 503,28
- - granted loans..............		4 070 382,51	18 479 503,28
- c) cash and other liquid assets................................	11 001 998,62	7 037 886,65	3 868 226,80	2 684 430,59
- - cash in hand and on bank account...............................	11 001 998,62	7 037 886,65	551 031,91	84 827,66
- - other liquid assets........			3 317 194,89	2 599 602,93
-IV. Short-term prepayments and accrued income........................	38 745,26	97 029,41	41 341,68	45 397,25
-D. Total assets......................	122 576 449,56	106 131 429,38	125 877 993,65	106 452 403,26
-A. Shareholders' equity..............	55 546 398,80	52 251 752,84	55 084 295,57	38 217 173,13
- I. Basic share capital...........	10 000 000,00	10 000 000,00	10 000 000,00	10 000 000,00
- IV. Statutory reserve capital.....	29 251 752,84	22 084 295,57	25 217 173,13	14 397 039,95
- VI. Other reserve capital.........	3 000 000,00	3 000 000,00	3 000 000,00	3 000 000,00
- VIII. Net profit (loss)............	13 294 645,96	17 167 457,27	16 867 122,44	10 820 133,18
-B. Liabilities and reserves for liabilities...........................	67 030 050,76	53 879 676,54	70 793 698,08	68 235 230,13
- I. Reserves for liabilities......	2 299 445,13	1 104 090,38	877 510,44	651 876,84
- 1. Deferred income tax reserves..	103 423,00	105 893,00	101 040,00	42 009,00
- 2. Reserves for pensions and similar social payments...............	395 257,00	210 757,00	151 060,00
- - short-term...................	395 257,00	210 757,00	151 060,00
- 3. Other reserves................	1 800 765,13	787 440,38	625 410,44	609 867,84
- - short-term...................	1 800 765,13	787 440,38	625 410,44	609 867,84
-II. Long-term liabilities...........	31 635 039,05	34 387 659,45	40 397 344,10	33 119 321,27
- 2. Other liabilities...............	31 635 039,05	34 387 659,45	40 397 344,10	33 119 321,27
- a) Loans.........................	29 439 534,48	30 844 357,14	35 184 656,35	33 119 321,27
- c) Other financial liabilities...	2 195 504,57	3 543 302,31	5 212 687,75
-III. Short-term liabilities..........	30 929 951,12	15 811 917,72	27 092 243,20	31 018 090,06
- 1. Due to affiliated companies.....	16 216 900,60	4 019 474,05	7 998 564,53	17 162 416,17
- a) Due to deliveries and services with payment period:.........	11 200 864,81	2 948 154,09	6 131 122,81	3 445 029,09
- - up to 12 months..............	11 200 864,81	2 948 154,09	6 131 122,81	3 445 029,09
- b) Other.........................	5 016 035,79	1 071 319,96	1 867 441,72	13 717 387,08
- 2. Other liabilities...............	14 713 050,52	11 792 443,67	19 093 678,67	13 855 673,89
- a) Loans.........................	1 849 961,49	2 921 290,63	4 698 006,78	1 489 301,47
- c) Other financial liabilities...	1 544 358,35	1 281 573,43	1 696 569,64
- d)Due to deliveries and services with payment period:.........	8 581 306,60	4 355 663,62	5 014 942,45	7 018 490,37
- - up to 12 months..............	8 581 306,60	4 355 663,62	5 014 942,45	7 018 490,37
- e) Advances received.............	91 496,49	155 367,36	728 843,76	2 115 075,03
- g) Due to taxes, subsidies, insurances, duties, etc...............	1 238 012,03	2 249 025,93	5 937 661,06	2 598 310,69
- h) Due to salaries...............	1 049 498,40	772 284,44	606 419,02	583 560,92
- i) Other.........................	358 417,16	57 238,26	411 235,96	50 935,41
-IV. Accruals and deferred income....	2 165 615,46	2 576 008,99	2 426 600,34	3 445 941,96
- 2. Other accruals..................	2 165 615,46	2 576 008,99	2 426 600,34	3 445 941,96
- - long-term......................	1 630 327,74	2 032 570,60	1 941 314,99	1 447 126,30
- - short-term.....................	535 287,72	543 438,39	485 285,35	1 998 815,66
-D. Total liabilities.................	122 576 449,56	106 131 429,38	125 877 993,65	106 452 403,26

Source of financial data	Court	Court	Court	Court
	annual	annual	annual	annual
individual PROFIT AND LOSS ACCOUNT	01.01.2013- 31.12.2013 (PLN)	01.01.2012- 31.12.2012 (PLN)	01.01.2011- 31.12.2011 (PLN)	01.01.2010- 31.12.2010 (PLN)
-A. Income from sales and similar.....	233 108 943,00	183 300 352,34	189 735 830,71	131 115 774,63
- - including related companies......	9 886 168,85	7 206 923,48	7 665 056,75	15 249 441,88
- I. Net income on sales...........	207 271 006,45	165 814 697,83	170 367 584,55	118 772 062,41
- II. Change in value of stock ( +, -).................................	2 871 142,76	-284 492,96	713 651,49	-38 097,94
- IV. Income from sales of goods and materials.........................	22 966 793,79	17 770 147,47	18 654 594,67	12 381 810,16
-B. Operational costs.................	213 683 941,26	161 711 230,32	165 978 595,65	116 028 544,99
- I. Depreciation..................	9 218 317,82	8 787 063,70	8 573 997,03	6 813 291,71
- II. Materials and energy..........	124 524 646,66	96 753 573,88	100 618 729,00	72 573 695,65
- III. Third party services..........	12 627 241,34	8 505 224,92	8 850 060,84	7 770 410,47
- IV. Taxes and duties..............	776 466,95	670 327,34	658 084,00	556 606,47
- V. Salaries and wages............	15 750 230,27	11 626 704,15	10 899 387,38	7 861 397,26
- VI. Social security...............	4 378 828,32	3 238 491,47	2 797 378,13	2 239 339,95
- VII. Other.........................	24 148 202,55	15 065 502,52	15 746 578,82	6 384 280,68
- VIII.Costs of goods and materials sold..................................	22 260 007,35	17 064 342,34	17 834 380,45	11 829 522,80
-C. Profit on sale....................	19 425 001,74	21 589 122,02	23 757 235,06	15 087 229,64
-D. Other operating incomes...........	3 587 152,00	4 932 188,38	8 083 380,09	4 245 090,65
- I. Incomes from disposal non-financial assets..................				50,00
- III. Other operating incomes.......	3 587 152,00	4 932 188,38	8 083 380,09	4 245 040,65
-E. Other operating costs.............	2 796 551,42	3 806 238,24	4 223 014,81	4 288 926,31
- I. Loss on disposal of non-finacial assets...................		92 679,43
- II. Goodwill revaluation..........	455 547,52	339 811,24	134 802,99	88 581,61
- III. Other operating costs.........	2 341 003,90	3 373 747,57	4 088 211,82	4 200 344,70
-F. Profit on operating activities....	20 215 602,32	22 715 072,16	27 617 600,34	15 043 393,98
-G. Financial incomes.................	148 775,49	1 103 543,57	356 004,19	900 033,32
- II. Interest received.............	148 775,49	669 626,28	356 004,19	2 757,39
- - including related companies....			345 123,02
- V. Other.........................		433 917,29		897 275,93
-H. Financial costs...................	4 188 834,85	2 504 070,46	6 606 792,09	2 417 336,12
- I. Interest......................	2 257 393,01	2 484 070,46	2 495 840,91	2 417 336,12
- - related companies..............			84 212,67	343 879,56
- IV. Other.........................	1 931 441,84	20 000,00	4 110 951,18
-I. Profit on economic activity.......	16 175 542,96	21 314 545,27	21 366 812,44	13 526 091,18
-K. Gross profit......................	16 175 542,96	21 314 545,27	21 366 812,44	13 526 091,18
-L. Corporation tax...................	2 880 897,00	4 147 088,00	4 499 690,00	2 705 958,00
-N. Net profit........................	13 294 645,96	17 167 457,27	16 867 122,44	10 820 133,18

RATIOS	01.01.2013- 31.12.2013	01.01.2012- 31.12.2012	01.01.2011- 31.12.2011	01.01.2010- 31.12.2010
Current ratio	1,80	2,60	2,04	1,13
Quick ratio	1,11	1,63	1,43	0,56
Immediate ratio	0,36	0,45	0,14	0,09
Return on sale	5,77	9,35	8,92	8,25
Return on assets	10,85	16,18	13,40	10,16
Return on equity	23,93	32,86	30,62	28,31
Average trade debtors' days	37,06	29,36	31,57	41,08
Average stock turnover's days	33,46	30,20	31,84	49,02
average payables payment period	49,03	31,52	52,31	86,32
Total indebtedness ratio	54,68	50,77	56,24	64,10

While rating the company, it is advisable to take into consideration information about the branch, the company is acting in
(C.27.11.Z - NACE 2007), as at :	31.12.2014	31.12.2013	31.12.2012	31.12.2011	31.12.2010
Current ratio............................	1,60	1,68	1,60	1,61	1,61
Quick ratio..............................	0,92	0,98	0,88	0,98	0,97
Immediate ratio..........................	0,12	0,16	0,16	0,20	0,22
Return on sale...........................	4,92	5,49	6,46	7,14	8,80
Return on assets.........................	6,35	7,73	9,49	10,62	12,76
Return on equity.........................	13,95	15,35	19,97	22,63	27,38
Average trade debtors' days..............	81,19	69,05	62,91	69,11	66,10
Average stock turnover's days............	57,66	53,39	58,79	51,15	48,15
average payables payment period..........	103,58	86,76	93,61	91,74	90,53
Total indebtedness ratio.................	54,46	49,64	52,49	53,07	53,41
Percent share in the examinated group of companies with net profit.............	90,00	85,00	87,50	86,00	78,90
Sales/revenue per employee in th. PLN....	419,32	428,13	425,45	407,42	384,92
Average sales/revenue per company in th. PLN..................................	134 246,83	133 437,10	131 272,63	114 627,16	103 523,84


according to the Central Statistical Office

Locations:

seat:
ul. Eugeniusza Kwiatkowskiego 7, 52-407 Wrocław
Phone:                   71 3884300
Fax:                     71 3884306, 3370289
E-mail:                  info@etomagnetic.pl
                         k.zaba@etomagnetic.pl
Website:                 http://www.etomagnetic.de

Real Estate	Book value of buildings as at 31.12.2013	PLN	27 517 569,04
	Book value of lands as at 31.12.2013	PLN	7 341 509,82
	Verification of information on real estate ownership position through the Real Estate Register is not covered by the standard report.

Shares in other companies

As at 08.04.2015 there are no shares in other companies.

Connections:	Michael Schwabe 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: 08.04.2015.

General information

The company refused to co-operate in elaboration of this report without knowing the name of the contractor.

Banks

Bank Zachodni WBK SA 5 O. we Wrocławiu (10901522)
pl. Kościuszki 7/8, 50-950 Wrocław
Acc.no. 92109015220000000052038515

Payment Manner	In available sources, payment delays have not been noted
Credit capability	Business connections appear permissible Maximum credit PLN 3 000 000,00
	We would like to draw your attention to: - Liabilities and reserves for liabilities exceeding current assets - No insight into financial situation of the company

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.52
UK Pound	1	Rs.95.96
Euro	1	Rs.70.54

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.

MIRA INFORM REPORT

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