MIRA INFORM REPORT

Report No. :	342826
Report Date :	29.09.2015

IDENTIFICATION DETAILS

Name :	BSW MACHINERY S.R.O.
Registered Office :	Háj 374  798 12 Kralice na Hané
Country :	Czech Republic
Financials (as on) :	31.12.2013
Date of Incorporation :	26.10.2005
Legal Form :	Private limited company
Line of Business :	Manufacture of other general-purpose machinery.
No. of Employee :	90

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 name and address

BSW MACHINERY S.R.O.

Háj 374 
798 12 Kralice na Hané 

telephone: 00420/ 582 305 010
telephone: 00420/ 582 305 022
telefax: 00420/ 582 305 033
e-mail: office@bswtex.cz
Web: www.bswtex.cz

Company summary

Company development

Constant company development

Order situation	Retrograde order situation
Terms of payment	mostly within agreed terms, but partly also delayed

Business connection

Business connections appear permissible

Legal form

Private limited company

Foundation	26/10/2005 - Private limited company
Comp. Register	26/10/2005, Krajský soud v Brně, RegNr.: C 50089 Statistical number: 27664066 Tax number: CZ27664066

Share Capital	26/10/2005	CZK	13 645 000,-
Shareholders	Windmöller & Hölscher GmbH Münsterstrasse 50, 495 25 Lengerich, Germany	CZK	13 369 000,-

	Thomas Breitenberger (13.09.1969) Hainfelder Str. 23, 2563 Pottenstein, Austria	CZK	276 000,-
Management	Thomas Breitenberger (13.09.1969) Hainfelder Str. 23, 2563 Pottenstein, Austria Executive Manager

Walter Häder (06.11.1962)
Martony-Gasse 12/2, Wiener Neudorf, Austria
Executive Manager

Ing. Günter Wais (24.03.1960)
Hollenbacherstrasse 36, 3813 Dietmanns, Austria
confidential clerk

Ing. Martin Chudárek (04.04.1976)
Vaňkova 2411/4, 750 02 Přerov 
confidential clerk

Ing. Miroslav Latýn (22.05.1971)
Karla Svolinského 316/11, 796 04 Prostějov, Krasice 
confidential clerk

	Ing. Peter Schmalholz (23.06.1960) Anningergasse 11, 2481 Achau, Austria confidential clerk
General Data	Development and manufacture of machines and equipment for flexible packing material production from polypropylene tissue.  Export: 100% whole world

Main activity: Manufacture of other general-purpose machinery n.e.c.	(28.29)
Former name(s) Bag Solutions Worldwide s.r.o. Beginning of validity: 26.10.2005 End of validity: 12.12.2013

Trade name(s)
BSW Machinery s.r.o.
Beginning of validity: 12.12.2013

Import:
European Union

General contacts:
telephone:
00420/ 582 305 010
00420/ 582 305 022
telefax:
00420/ 582 305 033

Address:
Háj 374, 798 12 Kralice na Hané 
Beginning of validity: 29.08.2013

Háj 357, 798 12 Kralice na Hané 
Beginning of validity: 27.03.2013
End of validity: 29.08.2013

- vedení, kanceláře, výroba
Kralický Háj 357, 798 12 Kralice na Hané 
Beginning of validity: 21.12.2011
End of validity: 27.03.2013
e-mail:
office@bswtex.cz
Web:
www.bswtex.cz

Háj 357, 798 12 Kralice na Hané 
Beginning of validity: 18.04.2006
End of validity: 21.12.2011

IBC-Příkop 4, 602 00 Brno 
Beginning of validity: 26.10.2005
End of validity: 18.04.2006

Staff	2006	20 employees
	2007	33 employees

2008	42 employees
2009	52 employees

2010	65 employees
2011	76 employees

2012	80 employees
2013	88 employees

2014	90 employees
2015	90 employees

Annual Sales	2005	actual sales	CZK	0,-
	2006	actual sales	CZK	89 586 000,-

2007	actual sales	CZK	323 750 000,-
2008	actual sales	CZK	648 946 000,-

2009	actual sales	CZK	630 769 000,-
2010	actual sales	CZK	1 007 515 000,-

2011	actual sales	CZK	1 295 105 000,-
2012	actual sales	CZK	1 181 364 000,-

2013	actual sales	CZK	877 247 000,-
2014	actual sales	CZK	850 000 000,-

according to own data

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

Property	none
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	We have asked the firm management in written form to send final account. In case that we receive account statements, we will send you a.  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.

	Contact:  Ing. Miroslav Latýn – economic department chief, phone: 00420/ 582 305 019,  e-mail: m.latyn@bswtex.cz Mr. Řezníček - economist
Bankers	Československá obchodní banka, a. s.  Account number: 17751273/0300 Account number: 171280-0017751273/0300	(0300)

Financial statement

	BALANCE	31.12.2010 (CZK)	31.12.2011 (CZK)	31.12.2012 (CZK)	31.12.2013 (CZK)
r1	TOTAL ASSETS	502 057 000	591 345 000	609 113 000	683 517 000
r2	Receivables for subscriptions		0	0	0
r3	Fixed assets	24 221 000	19 706 000	20 830 000	16 834 000
r4	Intangible fixed assets	9 291 000	6 100 000	4 927 000	1 326 000
r5	Incorporation expenses			0
r6	Research and development			0
r7	Software	92 000	55 000	18 000
r8	Valuable rights	9 199 000	6 045 000	4 909 000	1 326 000
r9	Goodwill			0
r10	Other intangible fixed assets			0
r11	Intangible fixed assets under construction			0
r12	Advance payments for intangible fixed assets			0
r13	Tangible fixed assets	13 048 000	11 668 000	14 015 000	13 448 000
r14	Lands		0	0	0
r15	Constructions		0	0	0
r16	Equipment	10 273 000	11 327 000	12 780 000	13 183 000
r17	Perennial corps			0
r18	Breeding and draught animals			0
r19	Other tangible fixed assets			0
r20	Tangible fixed assets under construction	2 775 000	341 000	1 235 000	265 000
r21	Advance payments for tangible fixed assets			0
r22	Adjustment to acquired assets			0
r23	Long-term financial assets	1 882 000	1 938 000	1 888 000	2 060 000
r24	Shares in controlled and managed organizations	1 882 000	1 938 000	1 888 000	2 060 000
r25	Shares in accounting units with substantial influence			0
r26	Other securities and shares			0
r27	Loans to controlled and managed organizations and to accounting unit with substantial influence			0
r28	Other financial investments			0
r29	Financial investments acquired			0
r30	Advance payments for long-term financial assets			0
r31	Current assets	477 797 000	570 616 000	586 845 000	664 850 000
r32	Inventory	246 122 000	235 216 000	215 610 000	352 644 000
r33	Materials	97 746 000	130 958 000	128 542 000	158 977 000
r34	Work in progress and semi-products	133 510 000	101 992 000	76 090 000	182 049 000
r35	Finished products	1 514 000		0
r36	Animals			0
r37	Merchandise	13 352 000	2 266 000	10 978 000	11 618 000
r38	Advance payments for inventory			0
r39	Long-term receivables	17 381 000	14 454 000	7 384 000	7 038 000
r40	Trade receivables	1 301 000	8 309 000	2 335 000	7 038 000
r41	Receivables from controlled and managed organizations	16 080 000	6 145 000	5 049 000
r42	Receivables from accounting units with substantial influence			0
r43	Receivables from partners, cooperative members and association members			0
r44	Long-term deposits given			0
r45	Estimated receivable			0
r46	Other receivables			0
r47	Deferred tax receivable			0
r48	Short-term receivables	214 198 000	319 935 000	363 249 000	304 877 000
r49	Trade receivables	140 757 000	244 059 000	261 158 000	228 118 000
r50	Receivables from controlled and managed organizations	61 514 000	51 347 000	76 320 000	46 750 000
r51	Receivables from accounting units with substantial influence			0
r52	Receivables from partners, cooperative members and association members			0
r53	Receivables from social security and health insurance			0
r54	Due from state - tax receivable	8 026 000	18 676 000	17 463 000	18 231 000
r55	Short-term deposits given	3 825 000	5 752 000	8 308 000	11 746 000
r56	Estimated receivable	62 000	98 000	0	32 000
r57	Other receivables	14 000	3 000	0
r58	Short-term financial assets	96 000	1 011 000	602 000	291 000
r59	Cash	11 000	34 000	30 000	24 000
r60	Bank accounts	85 000	977 000	572 000	267 000
r61	Short-term securities and ownership interests			0
r62	Short-term financial assets acquired			0
r63	Accruals	39 000	1 023 000	1 438 000	1 833 000
r64	Deferred expenses	39 000	1 023 000	1 438 000	1 833 000
r65	Complex deferred costs			0
r66	Deferred income			0
r67	TOTAL LIABILITIES	502 057 000	591 345 000	609 113 000	683 517 000
r68	Equity	50 712 000	88 528 000	113 757 000	117 433 000
r69	Registered capital	13 645 000	13 645 000	13 645 000	13 645 000
r70	Registered capital	13 645 000	13 645 000	13 645 000	13 645 000
r71	Company’s own shares and ownership interests (-)			0
r72	Changes of registered capital ( +/- )			0
r73	Capital funds	-343 000	-288 000	-337 000	-166 000
r74	Share premium			0
r75	Other capital funds			0
r76	Differences from revaluation of assets and liabilities ( +/- )	-343 000	-288 000	-337 000	-166 000
r77	Differences from revaluation in transformation ( +/- )			0
r78	Reserve funds, statutory reserve account for cooperatives, and other retained earnings	1 019 000	1 365 000	1 365 000	1 365 000
r79	Legal reserve fund / indivisible fund	1 019 000	1 365 000	1 365 000	1 365 000
r80	Statutory and other funds			0
r81	Profit / loss - previous years	-17 824 000	36 045 000	73 806 000	99 084 000
r82	Retained earnings from previous years		36 045 000	73 806 000	99 084 000
r83	Accumulated losses from previous years	-17 824 000		0
r84	Profit / loss - current year (+/-)	54 215 000	37 761 000	25 278 000	3 505 000
r85	Liabilities	451 344 000	502 816 000	495 355 000	566 083 000
r86	Reserves	60 878 000	31 016 000	57 180 000	42 093 000
r87	Reserves under special statutory regulations			0
r88	Reserves for pension and similar payables			0
r89	Income tax reserves	17 822 000	6 039 000	11 681 000	857 000
r90	Other reserves	43 056 000	24 977 000	45 499 000	41 236 000
r91	Long-term payables	29 959 000	0	0	0
r92	Trade payables			0
r93	Payables to controlled and managed organizations	29 959 000		0
r94	Payables to accounting units with substantial influence			0
r95	Payables from partners, cooperative members and association members			0
r96	Long-term advances received			0
r97	Issues bonds			0
r98	Long-term notes payables			0
r99	Estimated payables			0
r100	Other payables			0
r101	Deferred tax liability			0
r102	Short-term payables	273 182 000	380 652 000	323 728 000	399 979 000
r103	Trade payables	27 154 000	25 994 000	25 842 000	47 231 000
r104	Payables to controlled and managed organizations	151 594 000	247 283 000	226 875 000	300 209 000
r105	Payables to accounting units with substantial influence			0
r106	Payables from partners, cooperative members and association members	3 000		0
r107	Payroll	2 343 000	2 703 000	2 799 000	3 138 000
r108	Payables to social securities and health insurance	1 187 000	1 384 000	1 467 000	1 652 000
r109	Due from state - tax liabilities and subsidies	454 000	522 000	534 000	655 000
r110	Short-term deposits received	81 211 000	76 396 000	29 935 000	23 018 000
r111	Issues bonds			0
r112	Estimated payables	9 236 000	26 370 000	36 276 000	24 060 000
r113	Other payables			0	16 000
r114	Bank loans and financial accommodations	87 325 000	91 148 000	114 447 000	124 011 000
r115	Long-term bank loans	87 325 000	91 148 000	114 447 000	124 011 000
r116	Short-term bank loans		0	0	0
r117	Short-term accommodations		0	0	0
r118	Accruals	1 000	1 000	1 000	1 000
r119	Accrued expenses	1 000	1 000	1 000	1 000
r120	Deferred revenues			0

	PROFIT/LOSS ACCOUNT	31.12.2010 (CZK)	31.12.2011 (CZK)	31.12.2012 (CZK)	31.12.2013 (CZK)
a1	Turnover	1 007 515 000	1 295 105 000	1 181 364 000	877 247 000
a2	Revenues from sold goods	440 436 000	556 608 000	383 383 000	245 904 000
a3	Expenses on sold goods	309 794 000	400 129 000	275 299 000	201 078 000
a4	Sale margin	130 642 000	156 479 000	108 084 000	44 826 000
a5	Production	652 523 000	706 980 000	772 079 000	737 311 000
a6	Revenues from own products and services	567 079 000	738 497 000	797 981 000	631 343 000
a7	Change in inventory of own products	84 845 000	-31 517 000	-25 902 000	105 968 000
a8	Capitalization	599 000		0
a9	Production consumption	648 032 000	752 891 000	746 037 000	755 864 000
a10	Consumption of material and energy	439 872 000	486 571 000	450 685 000	481 155 000
a11	Services	208 160 000	266 320 000	295 352 000	274 709 000
a12	Added value	135 133 000	110 568 000	134 126 000	26 273 000
a13	Personnel expenses	43 780 000	53 272 000	49 485 000	55 678 000
a14	Wages and salaries	34 137 000	42 284 000	38 043 000	42 234 000
a15	Renumeration of board members			0
a16	Social security expenses and health insurance	9 338 000	10 658 000	11 107 000	13 057 000
a17	Other social expenses	305 000	330 000	335 000	387 000
a18	Taxes and fees	31 000	38 000	46 000	110 000
a19	Depreciations of intangible and tangible assets	6 818 000	9 026 000	7 469 000	8 429 000
a20	Revenues from disposals of fixed assets and materials	0	0	0	0
a21	Revenues from disposals of fixed assets			0
a22	Revenues from disposals of materials			0
a23	Net book value of disposed fixed assets and materials	0	0	0	0
a24	Net book value of sold fixed assets			0
a25	Net book value of sold material			0
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )	18 863 000	-15 032 000	22 609 000	-1 328 000
a27	Other operating revenues	5 265 000	281 332 000	177 407 000	113 025 000
a28	Other operating expenses	2 897 000	282 499 000	177 124 000	52 850 000
a29	Transfer of operating revenues			0
a30	Transfer of operating expenses			0
a31	Operating profit / loss	68 009 000	62 097 000	54 800 000	23 559 000
a32	Revenues from sales of securities and ownership interests			0
a33	Sold securities and ownership interests			0
a34	Revenues from long-term financial assets	0		1 199 000	1 312 000
a35	Revenues from shares in controlled and managed organizations and in accounting units with substantial influence			1 199 000	1 312 000
a36	Revenues from others securities and ownership interests			0
a37	Revenues from other long-term financial assets			0
a38	Revenues from short-term financial assets			0
a39	Expenses associated with financial assets			0
a40	Revenues from revaluation of securities and derivatives			0
a41	Cost of revaluation of securities and derivatives			0
a42	Change in financial reserves and adjustments ( + / - )			0
a43	Interest revenues	9 000	4 000	1 000	4 024 000
a44	Interest expenses	1 857 000	3 313 000	3 693 000	4 011 000
a45	Other financial revenues	35 831 000	48 850 000	55 874 000	40 090 000
a46	Other financial expenses	30 012 000	63 920 000	71 152 000	60 829 000
a47	Transfer of financial revenues			0
a48	Transfer of financial expenses			0
a49	Profit / loss from financial operations ( transactions )	3 971 000	-18 379 000	-17 771 000	-19 414 000
a50	Income tax on ordinary income	17 765 000	5 957 000	11 751 000	640 000
a51	Due tax	17 765 000	5 957 000	11 751 000	640 000
a52	Tax deferred			0
a53	Operating profit / loss ordinary activity	54 215 000	37 761 000	25 278 000	3 505 000
a54	Extraordinary revenues			0
a55	Extraordinary expenses			0
a56	Income tax on extraordinary income	0		0	0
a57	Due tax			0
a58	Tax deferred			0
a59	Operating profit / loss extraordinary activity	0	0	0	0
a60	Transfer profit ( loss ) to partners (+/-)			0
a61	Profit / loss of current accounting period (+/-)	54 215 000	37 761 000	25 278 000	3 505 000
a62	Profit / loss before tax (+/-)	71 980 000	43 718 000	37 029 000	4 145 000
	Receivables after due date total	19 669 000	32 756 000	53 449 000	65 158 000
	Receivables more than 180 days after due date	10 199 000	17 871 000	26 984 000	42 238 000
	Liabilities after due date total	3 436 000	4 569 000	6 681 000	7 973 000
	Liabilities more than 180 days after due date	3 000	0	0	0

Balance indices		31.12.2010	31.12.2011	31.12.2012	31.12.2013
Return on total assets ROA (in %)	a62/r1 * 100	14,34	7,39	6,08	0,61
Return on equity ROE (in %)	a62/r68 * 100	141,94	49,38	32,55	3,53
Return on sales ROS (in %)	a62/a1 * 100	7,14	3,38	3,13	0,47
Turnover of receivables (in days)	r49/a1 * 365	50,99	68,78	80,69	94,91
Turnover of liabilities (in days)	r103/a1 * 365	9,84	7,33	7,98	19,65
Turnover of inventories (days)	r32/a1 * 365	89,16	66,29	66,62	146,73
Net working capital (in ths. CZK)	r31 - r102 - r116 - r117	204 615,00	189 964,00	263 117,00	264 871,00
Ratio of accounts payable to accounts receivable (in %)	(r39+r48) / (r91+r102) * 100	76,39	87,85	114,49	77,98
Ratio of profit/loss to tangible assets (in%)	r3 / a1 * 100	2,40	1,52	1,76	1,92
Current ratio	r31 / (r102+r116+r117)	n/a	1,50	1,81	1,66
Quick ratio	(r58+r48) / (r102+r116+r117)	0,78	0,84	1,12	0,76
Cash ratio	r58 / (r102+r116+r117)	n/a	0,00	0,00	0,00
Debt ratio I (in %)	(1-r68/r67) * 100	89,90	85,03	81,32	82,82
Debt ratio II (in %)	r85/r67 * 100	89,90	85,03	81,32	82,82

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.08
UK Pound	1	Rs.100.32
Euro	1	Rs.73.81

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TPT

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.