MIRA INFORM REPORT

Report No. :	349909
Report Date :	26.11.2015

IDENTIFICATION DETAILS

Name :	VF CZECH SERVICES, S.R.O.
Registered Office :	Ke Zdibsku 193, 250 66 Zdiby
Country :	Czech Republic
Financials (as on) :	31.12.2014
Date of Incorporation :	14.09.1992
Com. Reg. No.:	C 12770
Legal Form :	Private limited company
Line of Business :	Business and other management consultancy activities Wholesale of clothing and footwear Accounting, bookkeeping and auditing activities; tax consultancy
No. of Employee :	600 (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)
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

VF CZECH SERVICES, S.R.O. Ke Zdibsku 193 250 66 Zdiby Czech Republic		Telephone	00420/ 284 089 100
		telefax	00420/ 284 089 111
		e-mail	vffo@prague.com
		Web	www.vfc.com
		Registration:	Mestskˇy´ soud v Praze
Statistical Nr.	47123338	Registration Nr.	C 12770
Tax Nr.	CZ47123338	Status	activ

Economic situation

Business connection	Business connections appear permissible
Terms of payment	mostly within agreed terms, but partly also delayed
	158,627	EUR

Basic information

Legal form

Private limited company

Founded

14/09/1992 as Private limited company

Registration

14/09/1992, Mestskˇy´ soud v Praze, C 12770 Statistical Nr.: 47123338

Tax Nr.: CZ47123338

Registered names

Valid from	Trade name(s)	Valid until
17/06/2004	VF Czech Services, s.r.o.
Valid from	Former name(s)	Valid until
14/09/1992	H.I.S. Czechoslovakia spol. s r.o.	17/05/1994
17/05/1994	H.I.S. Praha spol. s r.o.	15/10/1996
15/10/1996	H.I.S. sportswear Praha spol. s r.o.	17/06/2004

Owners and Capital

Shareholders
9212665014	VF Luxembourg S.a´.r.l.	11/09/2014	140,000,000 CZK
	rue Joseph Hackin 2, L-1746 Luxembourg
	Luxemburg
Total capital			140,000,000 CZK

Registered capital

Date	Currency	Value
14/09/1992	CZK	300,000
13/08/1997	CZK	17,000,000
10/02/1998	CZK	140,000,000

Management

	Name / Address / Status		Since	Power of attorney
Management
9215162510	Executive Manager		12/08/2002
	Alessandro Zucchini Solimei(birth date
	02/02/1964)
	ˇ	510, 250 91 Zelenecˇ Czech Republic
	Stefanikova´
9214143642	Executive Manager		01/09/2012
	Karl Heinz Salzburger(birth date 13/03/1957)
	Via Nagra 5, 069 26 Montagnola-Collina dOro
	Switzerland

Company addresses

Valid from	Address	Valid until
17/06/2004	Ke Zdibsku 193, 250 66 Zdiby, Czech Republic
14/09/1992	Masarykovo nab´ˇr. 30, 110 00 Praha 1, Czech Republic	15/10/1996
15/10/1996	Ovocny´ trh 12, 110 00 Praha 1, Czech Republic	17/06/2004
Valid from	business locations	Valid until

Fashion Arena Outlet SterboholyPrumyslov˚a´ 440, 102 00 Praha 10, Sterboholy, Czech Republic telephone: 00420/ 234 657 280

Business activities

Main activity	Nace
Business and other management consultancy activities	70.22
Additional activities	Nace
Wholesale of clothing and footwear	46.42
Accounting, bookkeeping and auditing activities; tax consultancy	69.20

Distribution and sale of mark jeans wear and clothing for leisure \ time, storage of goods and quality control, administration of central store. Accounting, consulting and marketing services for the firms belonging to the VF Group.

Economic data

Turnover and Employees

Date	Turnover	Employees
2004	212,318,000 CZK
2005	200,569,000 CZK
2006	299,183,000 CZK	283
2007	444,857,000 CZK	502
2008	448,148,000 CZK	506
2009	432,530,000 CZK	437
2010	411,727,000 CZK	407
2011	439,450,000 CZK	402
2012	486,812,000 CZK	445
2013	523,228,000 CZK	545
2014	576,698,000 CZK	538
2015		600

increase of employees in 2015 due to the extension of one operating \ hall in Zdiby

Import / Export

	Import	Export
Percentage	Unknown	Unknown
Countries	European Union	European Union

Properties

Name	Detail	Currency	Value
Business	Property of the company		Unknown
premises	Ke Zdibsku 193, Zdiby 250 66, Czech Republic

Supplementary data

Remarks

All the sources of negative data accessible to public (insolvency registers, databases of debtors of health insurance insti-tutions, commercial bulletin, collection database of Creditreform and others) are currently monitored.

Business management:

ˇ

Mr. Ing. Jaroslav Spiroch - Financial Director, phone: 00420/ 284 089 142

Mrs. Zdenkaˇ Nemethova´ - accounting, phone: 00420/ 284 089 182, e-mail: zdenka nemethova@vfc.com

Mrs. Junkova´ - HR manager, phone: 00420/ 284 089 105

Banks

Code	Bank name / Address	Account Nr.
		CZ905500000001021101200
0300	ˇ	17308933/0300
	Ceskoslovenska´ obchodn´ı banka, a. s.
6200	Commerzbank Aktiengesellschaft, pobockaˇ Praha	000000-
		0010054467/6200
6200	Commerzbank Aktiengesellschaft, pobockaˇ Praha	10099278/6200
5500	Raiffeisenbank, a. s.	1021101198/5500
5500	Raiffeisenbank, a. s.	1021101200/5500

Main indices

Payment experience and credit opinion

Terms of payment	mostly within agreed terms, but partly also delayed
Business connection	Business connections appear permissible
Business development
Company development	Positive company development
Order situation	Good course of business

Events

No negative events registered.

Per 11/11/2015 the company was examined in a Central register of executions and no were found.

Balances

Auditor

Crefo Nr.	Name / Address / Status	Since	Power of attorney
Auditor
9210059030	PricewaterhouseCoopers Audit, s.r.o. Statistical Nr.: 40765521 Hvezdovaˇ 1734/2c, Praha 4, 140 00, Czech Republic telephone: 00420/ 251151111 telefax: 00420/ 251156111 e-mail: pricewaterhousecoopers.cz@cz.pwc.com Web: www.pwc.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, -.

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, -.

		31/12/2014	31/12/2013	31/12/2012	31/12/2011
Name	Ref.	1000	1000	1000	1000
		CZK	CZK	CZK	CZK
		balance	balance	balance	balance
TOTAL ASSETS	r1	808,801	811,979	763,455	707,608
Receivables for subscriptions	r2	0		0	0
Fixed assets	r3	512,826	468,246	471,221	494,125
Intangible fixed assets	r4	137	204	295	126
Incorporation expenses	r5	0			0
Research and development	r6	0			0
Software	r7	137	204	295	126
Valuable rights	r8	0			0
Goodwill	r9	0			0
Other intangible fixed assets	r10	0			0
Intangible fixed assets under construction	r11	0			0
Advance payments for intangible fixed assets	r12	0			0
Tangible fixed assets	r13	512,689	468,042	470,926	493,999
Lands	r14	90,462	90,462	90,462	90,462
Constructions	r15	163,874	173,558	184,630	198,504
Equipment	r16	233,926	199,281	184,042	202,269
Perennial corps	r17	0			0
Breeding and draught animals	r18	0			0
Other tangible fixed assets	r19	0			0
Tangible fixed assets under construction	r20	21,639	0	2,525	2,764
Advance payments for tangible fixed assets	r21	2,788	4,741	9,267	0
Adjustment to acquired assets	r22	0			0
Long-term financial assets	r23	0		0	0
Shares in controlled and managed organizations	r24	0			0
Shares in accounting units with substantial influ-	r25	0			0
ence
Other securities and shares	r26	0			0
Loans to controlled and managed organizations	r27	0			0
and to accounting unit with substantial influence
Other financial investments	r28	0			0
Financial investments acquired	r29	0			0
Advance payments for long-term financial assets	r30	0			0
Current assets	r31	285,136	335,511	283,305	207,208
Inventory	r32	8,781	4,439	4,313	3,076
Materials	r33	8,781	4,439	4,313	3,076
Work in progress and semi-products	r34	0			0
Finished products	r35	0			0
Animals	r36	0			0
Merchandise	r37	0			0
Advance payments for inventory	r38	0			0
Trade receivables
Long-term receivables	r39	2,311	2,311	1,488	778
Trade receivables	r40	0			778
Receivables from controlled and managed orga-	r41	0			0
nizations
Receivables from accounting units with substan-	r42	0			0
tial influence
Receivables from partners, cooperative members	r43	0			0
and association members
Long-term deposits given	r44	2,311	2,311	1,488	0
Estimated receivable	r45	0			0
Other receivables	r46	0			0
Deferred tax receivable	r47	0			0
Short-term receivables	r48	203,509	285,253	214,065	178,121
Trade receivables	r49	120,491	252,542	170,919	140,144
Receivables from controlled and managed orga-	r50	0			0
nizations
Receivables from accounting units with substan-	r51	0			0
tial influence
Receivables from partners, cooperative members	r52	0			0
and association members
Receivables from social security and health insur-	r53	0			0
ance
Due from state - tax receivable	r54	16,533	3,211	1	4
Short-term deposits given	r55	129	1,970	3,072	2,635
Estimated receivable	r56	66,356	27,528	40,073	35,297
Other receivables	r57	0	2		41
Short-term financial assets	r58	70,535	43,508	63,439	25,233
Cash	r59	156	119	112	18
Bank accounts	r60	70,379	43,389	63,327	25,215
Short-term securities and ownership interests	r61	0			0
Short-term financial assets acquired	r62	0			0
Accruals	r63	10,839	8,222	8,929	6,275
Deferred expenses	r64	10,839	8,222	8,929	5,828
Complex deferred costs	r65	0			0
Deferred income	r66	0			447
TOTAL LIABILITIES	r67	808,801	811,979	763,455	707,608
Equity	r68	692,596	684,892	669,155	636,708
Registered capital	r69	140,000	140,000	140,000	140,000
Registered capital	r70	140,000	140,000	140,000	140,000
Company’s own shares and ownership interests	r71	0			0
(-)
Changes of registered capital ( +/- )	r72	0			0
Capital funds	r73	287,818	287,818	287,818	287,818
Share premium	r74	0			0
Other capital funds	r75	287,818	287,818	287,818	287,818
Differences from revaluation of assets and liabili-	r76	0			0
ties ( +/- )
Differences from revaluation in transformation ( +/-	r77	0			0
)
Diferences from tranformation of companies ( +/-
)
The differences from valuation on transformation
of business corporations
Reserve funds, statutory reserve account for	r78	14,000	14,000	14,000	14,000
cooperatives, and other retained earnings
Legal reserve fund / indivisible fund	r79	14,000	14,000	14,000	14,000
Statutory and other funds	r80	0			0
Profit / loss - previous years	r81	243,074	227,337	194,890	168,025
Retained earnings from previous years	r82	243,074	227,337	194,890	168,025
Accumulated losses from previous years	r83	0			0
Other profit / loss - previous years
Profit / loss - current year (+/-)	r84	7,704	15,737	32,447	26,865
Decided on advance for payment of a profit
share
Liabilities	r85	99,699	119,389	92,776	69,066
Reserves	r86	14,183	9,160	5,515	7,109
Reserves under special statutory regulations	r87	0			2,596
Reserves for pension and similar payables	r88	0			4,513
Income tax reserves	r89	0			0
Other reserves	r90	14,183	9,160	5,515	0
Long-term payables	r91	3,622	3,547	3,214	4,012
Trade payables	r92	0			4,012
Payables to controlled and managed organiza-	r93	0			0
tions
Payables to accounting units with substantial in-	r94	0			0
fluence
Payables from partners, cooperative members	r95	0			0
and association members
Long-term advances received	r96	0			0
Issues bonds	r97	0			0
Long-term notes payables	r98	0			0
Estimated payables	r99	0			0
Other payables	r100	0			0
Deferred tax liability	r101	3,622	3,547	3,214	0
Short-term payables	r102	81,894	106,682	84,047	57,945
Trade payables	r103	48,588	77,576	48,463	34,852
Payables to controlled and managed organiza-	r104	0			0
tions
Payables to accounting units with substantial in-	r105	0			0
fluence
Payables from partners, cooperative members	r106	0			0
and association members
Payroll	r107	9,983	8,993	7,895	7,559
Payables to social securities and health insurance	r108	5,715	4,868	4,507	4,049
Due from state - tax liabilities and subsidies	r109	1,356	2,595	5,790	1,715
Short-term deposits received	r110	0			0
Issues bonds	r111	0			0
Estimated payables	r112	16,252	12,650	17,392	9,770
Other payables	r113	0			0
Bank loans and financial accommodations	r114	0		0	0
Long-term bank loans	r115	0		0	0
Short-term bank loans	r116	0		0	0
Short-term accommodations	r117	0		0	0
Accruals	r118	16,506	7,698	1,524	1,834
Accrued expenses	r119	15,602	6,484		1,834
Deferred revenues	r120	904	1,214	1,524	0

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, -.

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, -.

		31/12/2014	31/12/2013	31/12/2012	31/12/2011
		1000	1000	1000	1000
Name	Ref.	CZK	CZK	CZK	CZK
		profit/loss	profit/loss	profit/loss	profit/loss
		account	account	account	account
Turnover	a1	576,698	523,228	486,812	439,450
Revenues from sold goods	a2	0		0	270
Expenses on sold goods	a3	0		0	0
Sale margin	a4	0		0	270
Production	a5	576,698	523,228	486,812	439,180
Revenues from own products and services	a6	576,698	523,228	486,812	439,180
Change in inventory of own products	a7	0			0
Capitalization	a8	0			0
Production consumption	a9	279,015	224,477	198,632	165,616
Consumption of material and energy	a10	76,535	73,316	64,188	55,573
Services	a11	202,480	151,161	134,444	110,043
Added value	a12	297,683	298,751	288,180	273,834
Personnel expenses	a13	220,135	208,780	184,059	172,800
Wages and salaries	a14	156,701	148,862	130,751	122,769
Renumeration of board members	a15	0			0
Social security expenses and health insurance	a16	52,619	49,800	43,201	40,940
Other social expenses	a17	10,815	10,118	10,107	9,091
Taxes and fees	a18	1,413	1,289	1,293	1,195
Depreciations of intangible and tangible assets	a19	67,231	66,189	63,211	63,779
Revenues from disposals of fixed assets and	a20	410	319	8	61
materials
Revenues from disposals of fixed assets	a21	410	319	8	61
Revenues from disposals of materials	a22	0			0
Net book value of disposed fixed assets and	a23	7	26	0	597
materials
Net book value of sold fixed assets	a24	7	26		597
Net book value of sold material	a25	0			0
Change in operating reserves and adjustments	a26	5,023	3,644	912	873
and complex deferred costs ( + / - )
Other operating revenues	a27	7,674	5,508	7,670	3,461
Other operating expenses	a28	2,763	3,667	4,098	5,760
Transfer of operating revenues	a29	0			0
Transfer of operating expenses	a30	0			0
Operating profit / loss	a31	9,195	20,983	42,285	32,352
Revenues from sales of securities and ownership	a32	0			0
interests
Sold securities and ownership interests	a33	0			0
Revenues from long-term financial assets	a34	0			0
Revenues from shares in controlled and managed	a35	0			0
organizations and in accounting units with sub-
stantial influence
Revenues from others securities and ownership	a36	0			0
interests
Revenues from other long-term financial assets	a37	0			0
Revenues from short-term financial assets	a38	0			0
Expenses associated with financial assets	a39	0			0
Revenues from revaluation of securities and	a40	0			0
derivatives
Cost of revaluation of securities and derivatives	a41	0			0
Change in financial reserves and adjustments ( +	a42	0			0
/ - )
Interest revenues	a43	4	3	5	9
Interest expenses	a44	0		0	43
Other financial revenues	a45	319		0	1,739
Other financial expenses	a46	584	890	2,110	386
Transfer of financial revenues	a47	0			0
Transfer of financial expenses	a48	0			0
Profit / loss from financial operations ( trans-	a49	-261	-687	-2,105	1,319
actions )
Income tax on ordinary income	a50	1,230	4,559	7,733	6,806
Due tax	a51	1,155	4,226	8,531	7,026
Tax deferred	a52	75	333	-798	-220
Operating profit / loss ordinary activity	a53	7,704	15,737	32,447	26,865
Extraordinary revenues	a54	0			0
Extraordinary expenses	a55	0			0
Income tax on extraordinary income	a56	0			0
Due tax	a57	0			0
Tax deferred	a58	0			0
Operating profit / loss extraordinary activity	a59	0		0	0
Transfer profit ( loss ) to partners (+/-)	a60	0			0
Profit / loss of current accounting period (+/-)	a61	7,704	15,737	32,447	26,865
Profit / loss before tax (+/-)	a62	8,934	20,296	40,180	33,671
Operating cash flow
Investment cash flow
Financial cash flow
Receivables after due date total		33,160	161,647	81,007	72,315
Receivables more than 360 days after due date
Receivables more than 180 days after due date
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		13,545	56,039	35,140	18,989
Liabilities more than 360 days after due date
Liabilities more than 180 days after due date
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	Ref.	31/12/2014	31/12/2013	31/12/2012	31/12/2011
Return on total assets ROA (in %)	1	1.10	2.50	5.26	4.76
Return on equity ROE (in %)	2	1.29	2.96	6.00	5.29
Return on sales ROS (in %)	3	5.65	14.16	30.13	27.97
Turnover of receivables (in days)	4	76.26	176.17	128.15	116.40
Turnover of liabilities (in days)	5	30.75	54.12	36.34	28.95
Turnover of inventories (days)	6	5.56	3.10	3.23	2.55
Net working capital (in ths. CZK)	7	203242.00	228829.00	199258.00	149263.00
Ratio of accounts payable to accounts receivable	8	240.68	260.88	247.02	288.75
(in %)
Ratio of profit/loss to tangible assets (in%)	9	88.92	89.49	96.80	112.44
Current ratio	10	3.48		3.37	3.58
Quick ratio	11	3.35	3.08	3.30	3.51
Cash ratio	12	0.86		0.75	0.44
Debt ratio I (in %)	13	14.37	15.65	12.35	10.02
Debt ratio II (in %)	14	12.33	14.70	12.15	9.76

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.38
UK Pound	1	Rs.100.45
Euro	1	Rs.70.55

INFORMATION DETAILS

Analysis Done by :	HEE
Report Prepared by :	ASH

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.