MIRA INFORM REPORT

Report No. :	339343
Report Date :	03.09.2015

IDENTIFICATION DETAILS

Name :	STONE CONNECTION CZECH S.R.O.
Registered Office :	Ostravska´ 1389, 756 61 Roznovˇ pod Radhostˇemˇ
Country :	Czech Republic
Financials (as on) :	31.12.2014
Date of Incorporation :	11.02.2004
Com. Reg. No.:	C 26856
Legal Form :	Private limited company
Line of Business :	Wholesale of wood, construction materials and sanitary equipment Other retail sale of new goods in specialized other stores Production, processing and delivery of natural stone: - granite, marble, travertine, sandstone and onyx. Deliveries tiles, kitchen and bathroom panels, tomb monuments
No. of Employees :	15

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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

STONE CONNECTION CZECH s.r.o.		Telephone	00420/ 571 655 357
Ostravska´ 1389		telefax	00420/ 571 655 363
756 61 Roznovˇ pod Radhostˇemˇ		e-mail	info@stoneconnection.cz
Czech Republic		Web	www.stoneconnection.cz
Crefo Nr.	9210226005	Registration:	Krajsky´ soud v Ostraveˇ
Statistical Nr.	26827301	Registration Nr.	C 26856
Tax Nr.	CZ26827301	Status	activ

Economic situation

Business connection	Business connections are not denied	(41)
Terms of payment	exceedance of payment terms	(33)
Credit Limit	0	CZK
	0	EUR

Basic information

Legal form

Private limited company

Founded

11/02/2004 as Private limited company

Registration

11/02/2004, Krajsky´ soud v Ostrave,ˇ C 26856 Statistical Nr.: 26827301

Tax Nr.: CZ26827301

Registered names

Valid from	Trade name(s)	Valid until
11/02/2004	STONE CONNECTION CZECH s.r.o.

Owners and Capital

Crefo Nr.	Name / Address / Status	From	Share
Shareholders
9215109584	FINSTONE AG	08/07/2014	11,400,000
	Staldenbachstrasse 30, Pfaffikon¨ SZ Switzerland
9210010179	Ing. Petr Kola´cekˇ (birth date 27/12/1961)	08/07/2014	3,000,000 CZK
	Slunecnˇ´ı 2367, 756 61 Roznovˇ pod Radhostˇemˇ
	Czech Republic
9210183437	Ing. Rostislav Blaˇzek (birth date 14/04/1958)	08/07/2014	600,000 CZK
	Doln´ı 302, 744 01 Frenstˇat´ pod Radhostˇemˇ Czech
	Republic
Total capital			15,000,000 CZK

Registered capital

Date	Currency	Value
11/02/2004	CZK	6,000,000
21/05/2008	CZK	15,000,000

Management

Crefo Nr.	Name / Address / Status	Since	Power of attorney
Management
9210010179	Executive Manager	11/02/2004
	Ing. Petr Kola´cek(birthˇ date 27/12/1961)
	Slunecnˇ´ı 2367, 756 61 Roznovˇ pod Radhostˇemˇ
	Czech Republic

Company addresses

Valid from	Address	Valid until
08/07/2014	Ostravska´ 1389, 756 61 Roznovˇ pod Radhostˇem,ˇ Czech Republic
11/02/2004	Pletaˇrska´ 226, 756 61 Roznovˇ pod Radhostˇem,ˇ Czech Republic	08/07/2009
08/07/2009	Ostravska´ 1389, 756 61 Roznovˇ pod Radhostˇem,ˇ Czech Republic	08/07/2014
Valid from	Branches of the business	Valid until
	Areal´ spolecnosti Vodn´ı stavby a.s. Dobronicka´ 1256, 148 25 Praha,
	Czech Republic
	telephone: 00420/ 244 470 386
Valid from	business locations	Valid until
	Pletaˇrska´ 226, 756 61 Roznovˇ pod Radhostˇem,ˇ Czech Republic

Subsidiaries

Crefo Nr.	Name / Address / Status	Valid from	Share
Shareholders
9212483167	RG Kamen´ s.r.o.	08/07/2014	5,000,000 CZK
	Statistical Nr.: 26790211
	Sokolska´ 408, 756 61 Roznovˇ pod Radhostˇemˇ
	Czech Republic

Business activities

Main activity	Nace
Wholesale of wood, construction materials and sanitary equipment	46.73
Additional activities	Nace
Other retail sale of new goods in specialized other stores	47.78.9
Production, processing and delivery of natural stone: - granite, marble, travertine, sandstone and onyx. Deliveries tiles, kitchen and bathroom panels, tomb monuments

Economic data

Turnover and Employees

Date	Turnover	Employees
2005	37,305,000 CZK
2006	54,823,000 CZK
2007	65,000,000 CZK
2008	77,478,000 CZK
2009	64,579,000 CZK	16
2010	69,185,000 CZK	16
2011	65,921,000 CZK	16
2012	72,552,000 CZK	16
2013	62,813,000 CZK	14
2014	75,170,000 CZK	15
2015		15

The company is not registered in the Central register of executions.

Import / Export

	Import	Export
Percentage	Unknown	12 %
Countries	South Africa, India, China, Italy, Spain, France	Slovakia

Properties

Name	Detail	Currency	Value
	Property of the shareholder		Unknown
	Ostravska´ 1389, Roznovˇ pod Radhostˇemˇ 1 756
	61, Czech Republic
	Ing. Petr Kola´cekˇ (SJM Petr Kola´cekˇ a Pavla
	Kola´ckovˇa)´
	verified in the real estate registry
none

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.

Other entrepreneurial interests::

Mr. Petr Kola´cek:ˇ

- RG Kamen s. r. o., IC 26790211, executive

- Investicnˇ´ı spolecnostˇ prvn´ı slezske´ banky, spol. s.r.o., in

liquidation, IC 48399434, Member of the Supervisory Board

Subsidiary

- RG Kamen´ s.r.o., IC 26790211, 756 61 Roznovˇ pod Radhostem,ˇˇ Sokolska´

408,share 100%

In October 2007 the company acquired the assets of the dissolved company

ROKA GRANIT s.r.o., address: se s´ıdlem Roznovˇ pod Radhostˇem,ˇ Pletaˇrska´ 226, 756 61,

Identifical number 62363883.

Contact:

Mr. Ing. Petr Kola´cekˇ - jexecutive, phone: 00420/ 777 772 540 Mrs. Martina Doruskovˇa´ - accounting, phone: 00420/ 571 655 357, mobile: 00420/ 774 772 559, e-mail: mdo@stoneconnection.com

Banks

Code		Bank name / Address	Account Nr.
0300	Ceskoslovenska´ obchodn´ı banka, a. s.		250972398/0300
0100	Komercnˇ´ı banka, a.s.		000094-
			2595160247/0100
0100	Komercnˇ´ı banka, a.s.		000094-
			2622670227/0100
0100	Komercnˇ´ı banka, a.s.		94-2559680237/0100

Main indices

Payment experience and credit opinion

Terms of payment	Slow but correct	(33)
Business connection	Business connections are not denied	(41)

Business development

Company development	Stagnant company development	(40)
Order situation	Satisfactory order situation	(30)

Events

No negative events registered.

Balances

Balance

Dec 31, 2014 The enclosed balance of 2014 company’s own data, -.

Dec 31, 2013 The enclosed balance of 2013 company’s own data, it is authenticated by the auditor.

Dec 31, 2012 The enclosed balance of 2012 from business register, -.

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	56,093	55,212	54,676	56,804
Receivables for subscriptions		r2	0	0	0	0
Fixed assets		r3	8,382	3,848	1,715	2,393
Intangible fixed assets		r4	0	0	0	0
Incorporation expenses		r5			0	0
Research and development		r6			0	0
Software		r7			0	0
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	937	911	1,278	1,956
Lands		r14	0	0	0	0
Constructions		r15	158	163	0	0
Equipment		r16	779	748	1,112	1,828
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			166	128
Advance payments for tangible fixed assets		r21			0	0
Adjustment to acquired assets		r22			0	0
Long-term financial assets		r23	7,445	2,937	437	437
Shares in controlled and managed organizations		r24	7,445	2,937	437	437
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	47,508	51,258	52,724	54,244
Inventory		r32	28,407	30,182	29,696	34,472
Materials		r33			0	0
Work in progress and semi-products		r34			0	0
Finished products		r35			0	0
Animals		r36			0	0
Merchandise		r37	28,407	30,182	29,696	34,472
Advance payments for inventory		r38			0	0
Trade receivables
Long-term receivables		r39	0	852	852	0
Trade receivables		r40			0	0
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			0	0
Estimated receivable		r45			0	0
Other receivables		r46			0	0
Deferred tax receivable		r47		852	852	0
Short-term receivables		r48	19,051	19,977	21,882	17,739
Trade receivables		r49	17,047	17,705	17,897	13,889
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	69	68	68	32
and association members
Receivables from social security and health insur-		r53			0	0
ance
Due from state - tax receivable		r54			737	0
Short-term deposits given		r55	270	361	748	200
Estimated receivable		r56	250	479	0	44
Other receivables		r57	1,415	1,364	2,432	3,574
Short-term financial assets		r58	50	247	294	2,033
Cash		r59	46	209	122	86
Bank accounts		r60	4	38	172	1,947
Short-term securities and ownership interests		r61			0	0
Short-term financial assets acquired		r62			0	0
Accruals		r63	203	106	237	167
Deferred expenses		r64	197	99	138	167
Complex deferred costs		r65			0	0
Deferred income		r66	6	7	99	0
TOTAL LIABILITIES		r67	56,093	55,212	54,676	56,804
Equity		r68	9,731	9,674	13,432	17,812
Registered capital		r69	15,000	15,000	15,000	15,000
Registered capital		r70	15,000	15,000	15,000	15,000
Company’s own shares and ownership interests		r71			0	0
(-)
Changes of registered capital ( +/- )		r72			0	0
Capital funds		r73	-5,763	-5,763	-5,763	-5,763
Share premium		r74			0	0
Other capital funds		r75			0	0
Differences from revaluation of assets and liabili-		r76	-5,763	-5,763	-5,763	-5,763
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	687	687	687	687
cooperatives, and other retained earnings
Legal reserve fund / indivisible fund		r79	687	687	687	687
Statutory and other funds		r80			0	0
Profit / loss - previous years		r81	-347	3,507	1,792	8,483
Retained earnings from previous years		r82	7,171	7,267	11,649	11,649
Accumulated losses from previous years		r83	-7,518	-3,760	-3,760	-3,166
Other profit / loss - previous years					-6,097
Profit / loss - current year (+/-)		r84	154	-3,757	1,716	-595
Decided on advance for payment of a profit
share
Liabilities		r85	46,113	45,464	41,183	38,992
Reserves		r86	0	0	0	0
Reserves under special statutory regulations		r87			0	0
Reserves for pension and similar payables		r88			0	0
Income tax reserves		r89			0	0
Other reserves		r90			0	0
Long-term payables		r91	-670	0	0	0
Trade payables		r92			0	0
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		-670		0	0
Short-term payables	r102		43,500	42,989	39,715	37,640
Trade payables	r103		29,588	29,500	26,585	24,058
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		11,620	11,253	10,754	10,465
and association members
Payroll	r107		261	243	321	272
Payables to social securities and health insurance	r108		217	198	228	304
Due from state - tax liabilities and subsidies	r109		519	555	666	758
Short-term deposits received	r110		1,053	846	186	818
Issues bonds	r111				0	0
Estimated payables	r112		216	383	67	58
Other payables	r113		26	11	908	907
Bank loans and financial accommodations	r114		3,283	2,475	1,468	1,352
Long-term bank loans	r115		193	189	382	1,352
Short-term bank loans	r116		3,090	2,286	1,086	0
Short-term accommodations	r117		0	0	0	0
Accruals	r118		249	74	61	0
Accrued expenses	r119		249	74	61	0
Deferred revenues	r120				0	0

Profit and loss accounts

Dec 31, 2014 The enclosed profit/loss account of 2014 company’s own data, -.

Dec 31, 2013 The enclosed profit/loss account of 2013 company’s own data, it is authenticated by the auditor. Dec 31, 2012 The enclosed profit/loss account of 2012 from business register, -.

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	75,170		62,813	72,552	65,921
Revenues from sold goods	a2	74,775		62,168	72,059	65,337
Expenses on sold goods	a3	57,209		47,936	55,553	47,346
Sale margin	a4	17,566		14,232	16,506	17,991
Production	a5	395		645	493	648
Revenues from own products and services	a6	395		645	493	584
Change in inventory of own products	a7				0	0
Capitalization	a8				0	64
Production consumption	a9	7,084		6,966	7,709	7,922
Consumption of material and energy	a10	1,536		1,515	1,734	1,918
Services	a11	5,548		5,451	5,975	6,004
Added value	a12	10,877		7,911	9,290	10,717
Personnel expenses	a13	8,572		8,280	9,214	8,647
Wages and salaries	a14	6,178		5,952	6,670	6,256
Renumeration of board members	a15				0	0
Social security expenses and health insurance	a16	2,169		2,100	2,292	2,155
Other social expenses	a17	225		228	252	236
Taxes and fees	a18	100		99	124	112
Depreciations of intangible and tangible assets	a19	414		649	716	640
Revenues from disposals of fixed assets and	a20	140		0	0	0
materials
Revenues from disposals of fixed assets	a21	140			0	0
Revenues from disposals of materials	a22				0	0
Net book value of disposed fixed assets and	a23	49		0	0	0
materials
Net book value of sold fixed assets	a24	49			0	0
Net book value of sold material	a25				0	0
Change in operating reserves and adjustments	a26	-1,178		-41	-2,302	-20
and complex deferred costs ( + / - )
Other operating revenues	a27	15,254		9,540	15,750	18,776
Other operating expenses	a28	15,205		9,427	15,142	18,608
Transfer of operating revenues	a29				0	0
Transfer of operating expenses	a30				0	0
Operating profit / loss	a31	3,109		-963	2,146	1,506
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	0		0	0	0
Interest expenses	a44	447		459	491	493
Other financial revenues	a45	128		711	1,454	736
Other financial expenses	a46	2,551		3,047	967	2,344
Transfer of financial revenues	a47				0	0
Transfer of financial expenses	a48				0	0
Profit / loss from financial operations ( trans-	a49	-2,870		-2,795	-4	-2,101
actions )
Income tax on ordinary income	a50	85		0	426	0
Due tax	a51				41	0
Tax deferred	a52	85			385	0
Operating profit / loss ordinary activity	a53	154		-3,758	1,716	-595
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	0
Transfer profit ( loss ) to partners (+/-)	a60				0	0
Profit / loss of current accounting period (+/-)	a61	154		-3,758	1,716	-595
Profit / loss before tax (+/-)	a62	239		-3,758	2,142	-595
Operating cash flow
Investment cash flow
Financial cash flow
Receivables after due date total				25,671		10,802
Receivables more than 360 days after due date				20,236		3,935
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				1,680
Liabilities after due date total				15,697		20,948
Liabilities more than 360 days after due date				5,034		14,797
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			1,914

Financial Ratios

Name	Ref.	31/12/2014	31/12/2013	31/12/2012	31/12/2011
Return on total assets ROA (in %)	1	0.43	-6.81	3.92	-1.05
Return on equity ROE (in %)	2	2.46	-38.85	15.95	-3.34
Return on sales ROS (in %)	3	0.32	-5.98	2.95	-0.90
Turnover of receivables (in days)	4	82.77	102.88	90.04	76.90
Turnover of liabilities (in days)	5	143.67	171.42	133.75	133.21
Turnover of inventories (days)	6	137.93	175.38	149.40	190.87
Net working capital (in ths. CZK)	7	918.00	5983.00	11923.00	16604.00
Ratio of accounts payable to accounts receivable	8	44.48	48.45	57.24	47.13
(in %)
Ratio of profit/loss to tangible assets (in%)	9	11.15	6.13	2.36	3.63
Current ratio	10	1.02	1.13	1.29	1.44
Quick ratio	11	0.41	0.45	0.54	0.53
Cash ratio	12	0.00	0.01	0.01	0.05
Debt ratio I (in %)	13	82.65	82.48	75.43	68.64
Debt ratio II (in %)	14	82.21	82.34	75.32	68.64

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.16
UK Pound	1	Rs.101.22
Euro	1	Rs.74.61

INFORMATION DETAILS

Analysis Done by :	DIV
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.