MIRA INFORM REPORT

Report No. :	343925
Report Date :	09.10.2015

IDENTIFICATION DETAILS

Name :	ADC CZECH REPUBLIC, S.R.O.
Registered Office :	Tuˇranka 856/98b 627 00 Brno
Country :	Czech Republic
Financials (as on) :	30.09.2014
Date of Incorporation :	04.10.2005
Legal Form :	Private limited company
Line of Business :	Manufacture of electronic components · Manufacture, mounting and distribution of telecommunication \ equipment, manufacture of optical fibres, of distributors, batteries, \ cables as well as of TV antennas.
No. of Employees :	650

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)
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

ADC Czech Republic, s.r.o.	Telephone	00420/ 531 015 800
Tuˇranka 856/98b	telefax	00420/ 531 015 899
627 00 Brno	e-mail	info@tycoelectronics.cz
Czech Republic	Web	www.tycoelectronics.cz

Crefo Nr.	9210241319	Registration:	Krajsky´ soud v Brneˇ
Statistical Nr.	27384098	Registration Nr.	C 58726
Tax Nr.	CZ27384098	Status	activ

Economic situation

Business connection	Business connections appear permissible	(31)
Terms of payment	Slow But Correct	(31)

Basic information

Legal form

Private limited company

Founded

04/10/2005 as Private limited company 04/10/2005 as Private limited company

Registration

04/10/2005, Mestskˇy´ soud v Praze, C 115438 06/05/2008, Krajsky´ soud v Brne,ˇ C 58726 Statistical Nr.: 27384098

Tax Nr.: CZ27384098

Registered names

Valid from	Trade name(s)	Valid until
19/02/2015	ADC Czech Republic, s.r.o.
Valid from	Former name(s)	Valid until
04/10/2005	ADC Czech Republic, s.r.o.	19/02/2015

Owners and Capital

Crefo Nr.	Name / Address / Status	From	Share
Shareholders
9210241329	ADC Telecommunications, Inc.	14/08/2014	25,000,000 CZK
	Technology Drive 013625, 55344 Eden
	Prairie,Minnesota USA
Total capital			25,000,000 CZK

Registered capital

Date	Currency	Value
04/10/2005	CZK	200,000
30/10/2006	CZK	25,000,000

Management

Crefo Nr.	Name / Address / Status	Since	Power of attorney
Management
9214153500	Executive Manager	01/06/2011
	Eric Dietvorst(birth date 20/08/1961)
	Merodestraat 29, Duffel Belgium
9216165681	Executive Manager
	GABRIEL WEISSENBACHER(birth date 04/02/1964) Rue des Truites 15, 678 50 Herrlisheim France

9216165682	confidential clerk
	´	¨ ¨
	JOZSEF VOROS(birth date 20/08/1967)
	Sukoro, Iharos Ucta 24 Hungary
9216165680	Executive Manager
	NORBERTO RODRIGUEZ GONZALEZ(birth date
	18/03/1973)
	Bleibtreustrasse 4, 106 23 Berl´ın Germany
9214153499	Executive Manager			01/06/2011
	Werner De Wolf(birth date 18/09/1964)
	Kasteeldreef 44, Linden Belgium
9214153504	Confidential clerk		20/03/2012
	Zdenek Sramek(birth date 09/02/1979) Anton´ına Slav´ıckaˇ 3944/4, 796 04 Prostejovˇ Czech Republic

Company addresses

Valid from	Address	Valid until
30/07/2013	Tuˇranka 856/98b, 627 00 Brno, Czech Republic
04/10/2005	Klimentska´ 1216/46, 110 02 Praha 1, Czech Republic	03/03/2008
03/03/2008	Tuˇranka 858/98A, 627 00 Brno, Czech Republic	30/07/2013
30/07/2013	Tuˇranka 856/98b, 627 00 Brno, Czech Republic	19/02/2015

Business activities

Main activity	Nace
Manufacture of electronic components	26.11
Additional activities	Nace
Manufacture, mounting and distribution of telecommunication \ equipment, manufacture of optical fibres, of distributors, batteries, \ cables as well as of TV antennas.

Economic data

Turnover and Employees

Date	Turnover		Employees
2006	183,774,000	CZK	80
2007	392,195,000	CZK	170
2008	562,186,000	CZK	238
2009	572,946,000	CZK	282
2010	898,996,000	CZK	290
2011	1,533,513,000	CZK	374
2012	987,889,000	CZK	409
2013	1,691,658,000	CZK	422
2014	2,291,718,000	CZK	472
2015			650

Beginning from 2009, the company uses the business year lasting from \ 1.10. till 30.9.

The company is not registered in the Central register of executions

Import / Export

	Import	Export
Percentage	Unknown	Unknown
Countries	European Union, USA	Unknown

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.

The company is a holder of ISO 9001 certificate.

There was significant increase to revenues from sale due to transfer of the production plant from Berlin to Brno – according to the information received from the Annual report for 2014. Thanks to this plant, the firm engages 900 persons – including agency employees.

Contact:

Ing. Zdenek Sramek – economist, phone: 00420/ 531 015 099

Banks

Code	Bank name / Address	Account Nr.
		GB51CITI18500813213994
2600	Citibank Europe plc, organizacnˇ´ı slozkaˇ	2045900300/2600

Main indices

Payment experience and credit opinion

Terms of payment	Slow but correct	(31)
Business connection	Business connections appear permissible	(31)
Business development
Company development	Constant company development	(30)
Order situation	Good course of business	(21)

Events

No negative events registered.

Per 07/10/2015 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
9210098050	Deloitte Audit s.r.o. Statistical Nr.: 49620592 Karolinska´ 654/2, Praha 8, 186 00, Czech Republic telephone: 00420/246 042 500 telefax: 00420/246 042 555 e-mail: stanislava.sarova@deloitte.cz Web: www.deolitte.cz

Balance

Sep 30, 2014 The enclosed balance of 2014 from business register, -.

Sep 30, 2013 The enclosed balance of 2013 from business register, it is authenticated by the auditor.

Sep 30, 2012 The enclosed balance of 2012 from business register, it is authenticated by the auditor.

Sep 30, 2011 The enclosed balance of 2011 from business register, it is authenticated by the auditor.

			30/09/2014	30/09/2013	30/09/2012	30/09/2011
Name		Ref.	1000	1000	1000	1000
			CZK	CZK	CZK	CZK
			balance	balance	balance	balance
TOTAL ASSETS		r1	918,981	609,400	322,223	552,332
Receivables for subscriptions		r2	0	0	0
Fixed assets		r3	190,592	73,715	51,517	99,502
Intangible fixed assets		r4	307	511	770	198
Incorporation expenses		r5	0
Research and development		r6	0
Software		r7	307	511	770	198
Valuable rights		r8	0
Goodwill		r9	0
Other intangible fixed assets		r10	0
Intangible fixed assets under construction		r11	0
Advance payments for intangible fixed assets		r12	0
Tangible fixed assets		r13	190,285	73,204	50,747	99,304
Lands		r14	0	0	0
Constructions		r15	15,080	14,491	6,663	3,457
Equipment		r16	149,130	56,135	37,757	93,535
Perennial corps		r17	0
Breeding and draught animals		r18	0
Other tangible fixed assets		r19	0
Tangible fixed assets under construction		r20	26,075	2,498	6,327	2,312
Advance payments for tangible fixed assets		r21	0	80
Adjustment to acquired assets		r22	0
Long-term financial assets		r23	0	0	0	0
Shares in controlled and managed organizations		r24	0
Shares in accounting units with substantial influence		r25	0
Other securities and shares		r26	0
Loans to controlled and managed organizations		r27	0
and to accounting unit with substantial influence
Other financial investments		r28	0
Financial investments acquired		r29	0
Advance payments for long-term financial assets		r30	0
Current assets		r31	723,774	532,392	267,814	451,632
Inventory		r32	387,489	293,910	153,646	261,061
Materials		r33	352,717	250,020	137,669	142,282
Work in progress and semi-products		r34	21,610	20,250	10,311	12,500
Finished products		r35	6,859	13,145	5,666	37,554
Animals		r36	0
Merchandise		r37	6,303	10,495		68,725
Advance payments for inventory		r38	0
Trade receivables
Long-term receivables		r39	1,353	2,884	4,658	0
Trade receivables		r40	0
Receivables from controlled and managed organizations		r41	0
Receivables from accounting units with substantial influence		r42	0
Receivables from partners, cooperative members and association members		r43	0
Long-term deposits given		r44	288
Estimated receivable		r45	0
Other receivables		r46	0
Deferred tax receivable		r47	1,065	2,884	4,658
Short-term receivables		r48	334,855	235,451	109,398	190,351
Trade receivables		r49	334,587	234,974	103,517	175,412
Receivables from controlled and managed organizations		r50	0
Receivables from accounting units with substantial influence		r51	0
Receivables from partners, cooperative members		r52	0
and association members
Receivables from social security and health insurance		r53	0
Due from state - tax receivable		r54	0		4,521	6,356
Short-term deposits given		r55	164	220	211	4,887
Estimated receivable		r56	104	257	1,138	3,634
Other receivables		r57	0		11	62
Short-term financial assets		r58	77	147	112	220
Cash		r59	77	147	112	163
Bank accounts		r60	0			57
Short-term securities and ownership interests		r61	0
Short-term financial assets acquired		r62	0
Accruals		r63	4,615	3,293	2,892	1,198
Deferred expenses		r64	4,615	3,293	2,892	1,198
Complex deferred costs		r65	0
Deferred income		r66	0
TOTAL LIABILITIES		r67	918,981	609,400	322,223	434,007
Equity		r68	199,069	144,160	77,623	29,342
Registered capital		r69	25,000	25,000	25,000	25,000
Registered capital		r70	25,000	25,000	25,000	25,000
Company’s own shares and ownership interests (-)		r71	0
Changes of registered capital ( +/- )		r72	0
Capital funds		r73	25,000	25,000	25,000	25,000
Share premium		r74	0
Other capital funds		r75	25,000	25,000	25,000	25,000
Differences from revaluation of assets and liabili-	r76		0
ties ( +/- )
Differences from revaluation in transformation ( +/-)	r77		0
Diferences from tranformation of companies ( +/-)
The differences from valuation on transformation
of business corporations
Reserve funds, statutory reserve account for	r78		2,500	2,500	972	972
cooperatives, and other retained earnings
Legal reserve fund / indivisible fund	r79		2,500	2,500	972	972
Statutory and other funds	r80		0
Profit / loss - previous years	r81		91,660	25,123	-21,630	-17,985
Retained earnings from previous years	r82		91,660	25,123
Accumulated losses from previous years	r83		0		-21,630	-17,985
Other profit / loss - previous years
Profit / loss - current year (+/-)	r84		54,909	66,537	48,281	-3,645
Decided on advance for payment of a profit share
Liabilities	r85		719,912	465,240	244,600	404,665
Reserves	r86		6,990	7,656	5,698	7,388
Reserves under special statutory regulations	r87		0
Reserves for pension and similar payables	r88		0
Income tax reserves	r89		0
Other reserves	r90		6,990	7,656	5,698	7,388
Long-term payables	r91		0	0	0	0
Trade payables	r92		0
Payables to controlled and managed organizations	r93		0
Payables to accounting units with substantial influence	r94		0
Payables from partners, cooperative members and association members	r95		0
Long-term advances received	r96		0
Issues bonds	r97		0
Long-term notes payables	r98		0
Estimated payables	r99		0
Other payables	r100		0
Deferred tax liability	r101		0
Short-term payables	r102		712,922	457,584	238,902	397,277
Trade payables	r103		376,908	311,045	70,690	143,560
Payables to controlled and managed organizations	r104		233,354	80,465	120,204	198,073
Payables to accounting units with substantial influence	r105		0
Payables from partners, cooperative members and association members	r106		0
Payroll	r107		11,711	8,937	7,244	7,573
Payables to social securities and health insurance	r108		6,324	5,383	4,230	3,909
Due from state - tax liabilities and subsidies	r109		47,613	32,347	14,650	10,779
Short-term deposits received	r110		0
Issues bonds	r111		0
Estimated payables	r112		36,406	18,847	21,497	33,182
Other payables	r113		606	560	387	201
Bank loans and financial accommodations	r114		0	0	0	0
Long-term bank loans	r115		0	0	0	0
Short-term bank loans	r116		0	0	0	0
Short-term accommodations	r117		0	0	0	0
Accruals	r118		0	0	0	0
Accrued expenses	r119		0
Deferred revenues	r120		0

Profit and loss accounts

Sep 30, 2014 The enclosed profit/loss account of 2014 from business register, -.

Sep 30, 2013 The enclosed profit/loss account of 2013 from business register, it is authenticated by the auditor. Sep 30, 2012 The enclosed profit/loss account of 2012 from business register, it is authenticated by the auditor. Sep 30, 2011 The enclosed profit/loss account of 2011 from business register, it is authenticated by the auditor.

			30/09/2014	30/09/2013	30/09/2012	30/09/2011
			1000	1000	1000	1000
Name	Ref.		CZK	CZK	CZK	CZK
			profit/loss	profit/loss	profit/loss	profit/loss
			account	account	account	account
Turnover	a1		2,291,718	1,691,658	987,889	1,533,513
Revenues from sold goods	a2		208,114	208,846	81,431	820,081
Expenses on sold goods	a3		171,726	166,765	74,663	829,971
Sale margin	a4		36,388	42,081	6,768	-9,890
Production	a5		2,078,372	1,500,175	874,278	717,318
Revenues from own products and services	a6		2,083,604	1,482,812	906,458	713,432
Change in inventory of own products	a7		-5,232	17,363	-32,180	3,886
Capitalization	a8		0
Production consumption	a9		1,832,175	1,236,722	759,962	572,376
Consumption of material and energy	a10		1,644,033	1,028,256	639,709	464,494
Services	a11		188,142	208,466	120,253	107,882
Added value	a12		282,585	305,534	121,084	135,052
Personnel expenses	a13		226,057	185,360	160,469	146,750
Wages and salaries		a14	169,510	137,264	118,904	108,316
Renumeration of board members		a15	0
Social security expenses and health insurance		a16	54,010	44,893	38,679	36,106
Other social expenses		a17	2,537	3,203	2,886	2,328
Taxes and fees		a18	572		4
Depreciations of intangible and tangible assets		a19	27,465	16,696	10,063	10,111
Revenues from disposals of fixed assets and materials		a20	614	115	69	3,668
Revenues from disposals of fixed assets		a21	461	115	69	3,668
Revenues from disposals of materials		a22	153
Net book value of disposed fixed assets and materials		a23	383	115	14	2,639
Net book value of sold fixed assets		a24	276	115	14	2,639
Net book value of sold material		a25	107
Change in operating reserves and adjustments and complex deferred costs ( + / - )		a26	7,679	14,121	-33,213	5,488
Other operating revenues		a27	75,588	115	69,036	29,559
Other operating expenses		a28	15,061	4,191	3,883	4,907
Transfer of operating revenues		a29	0
Transfer of operating expenses		a30	0
Operating profit / loss		a31	81,570	85,281	48,969	-1,616
Revenues from sales of securities and ownership interests		a32	0
Sold securities and ownership interests		a33	0
Revenues from long-term financial assets		a34	0		0	0
Revenues from shares in controlled and managed		a35	0
organizations and in accounting units with substantial influence
Revenues from others securities and ownership interests		a36	0
Revenues from other long-term financial assets		a37	0
Revenues from short-term financial assets		a38	0
Expenses associated with financial assets		a39	0
Revenues from revaluation of securities and derivatives		a40	0
Cost of revaluation of securities and derivatives		a41	0
Change in financial reserves and adjustments ( +/ - )		a42	0
Interest revenues		a43	0	0
Interest expenses		a44	3,536	2,666	2,696	4,799
Other financial revenues		a45	3,868	4,713	3,613	46,180
Other financial expenses		a46	14,801	6,753	6,263	43,410
Transfer of financial revenues		a47	0
Transfer of financial expenses		a48	0
Profit / loss from financial operations ( transactions )		a49	-14,469	-4,706	-5,346	-2,029
Income tax on ordinary income		a50	12,192	14,038	-4,658	0
Due tax		a51	10,373	12,264
Tax deferred		a52	1,819	1,774	-4,658
Operating profit / loss ordinary activity		a53	54,909	66,537	48,281	-3,645
Extraordinary revenues		a54	0
Extraordinary expenses		a55	0
Income tax on extraordinary income		a56	0			0
Due tax		a57	0
Tax deferred		a58	0
Operating profit / loss extraordinary activity		a59	0	0		0
Transfer profit ( loss ) to partners (+/-)		a60	0
Profit / loss of current accounting period (+/-)		a61	54,909	66,537	48,281	-3,645
Profit / loss before tax (+/-)		a62	67,101	80,575	43,623	-3,645
Operating cash flow			-5,279	81,270	115,437	-71,053
Investment cash flow			-144,144	-38,830	-34,980	-10,841
Financial cash flow			149,353	-42,405	-80,565	65,076
Receivables after due date total			197	159	0	19,665
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			24,342	78,826	2,623
Liabilities more than 360 days after due date
Liabilities more than 180 days after due date						0
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.		30/09/2014	30/09/2013	30/09/2012	30/09/2011
Return on total assets ROA (in %)	1		7.30	13.22	13.54	-0.66
Return on equity ROE (in %)	2		33.71	55.89	56.20	-12.42
Return on sales ROS (in %)	3		2.93	4.76	4.42	-0.24
Turnover of receivables (in days)	4		53.29	50.70	38.25	41.75
Turnover of liabilities (in days)	5		60.03	67.11	26.12	34.17
Turnover of inventories (days)		6	61.72	63.42	56.77	62.14
Net working capital (in ths. CZK)		7	10852.00	74808.00	28912.00	54355.00
Ratio of accounts payable to accounts receivable		8	47.16	52.09	47.74	47.91
(in %)
Ratio of profit/loss to tangible assets (in%)		9	8.32	4.36	5.21	6.49
Current ratio		10	1.02	1.16	1.12	1.14
Quick ratio		11	0.47	0.51	0.46	0.48
Cash ratio		12	0.00	0.00	0.00	0.00
Debt ratio I (in %)		13	78.34	76.34	75.91	93.24
Debt ratio II (in %)		14	78.34	76.34	75.91	93.24

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.16
UK Pound	1	Rs.99.78
Euro	1	Rs.73.33

INFORMATION DETAILS

Analysis Done by :	KAS
Report Prepared by :	TRU

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.