MIRA INFORM REPORT

Report No. :	503473
Report Date :	18.04.2018

IDENTIFICATION DETAILS

Name :	M&R PRINTING EQUIPMENT POLAND SP. Z O.O.
Registered Office :	Ul. Wolicka 11, 32-830 Wojnicz
Country :	Poland
Financials (as on) :	31.12.2017
Date of Incorporation :	12.07.2004
Legal Form :	Limited Liability Company
Line of Business :	· Manufacture of Printing Machinery and Equipment  · Metal Processing
No. of Employees :	148 [2018]

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Poland	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

POLAND - ECONOMIC OVERVIEW

Poland has the sixth-largest economy in the EU and has long had a reputation as a business-friendly country with largely sound macroeconomic policies. Since 1990, Poland has pursued a policy of economic liberalization. During the 2008-09 economic slowdown Poland was the only EU country to avoid a recession, in part because of the government’s loose fiscal policy combined with a commitment to rein in spending in the medium-term Poland is the largest recipient of EU development funds and their cyclical allocation can significantly impact the rate of economic growth.

The Polish economy performed well during the 2014-17 period, with the real GDP growth rate generally exceeding 3%, in part because of increases in government social spending that have helped to accelerate consumer-driven growth. However, since 2015, Poland has implemented new business restrictions and taxes on foreign-dominated economic sectors, including banking and insurance, energy, and healthcare, that have dampened investor sentiment and has increased the government’s ownership of some firms. The government reduced the retirement age in 2016 and has had mixed success in introducing new taxes and boosting tax compliance to offset the increased costs of social spending programs and relieve upward pressure on the budget deficit. Some credit ratings agencies estimate that Poland during the next few years is at risk of exceeding the EU’s 3%-of-GDP limit on budget deficits, possibly impacting its access to future EU funds. Poland’s economy is projected to perform well in the next few years in part because of an anticipated cyclical increase in the use of its EU development funds and continued, robust household spending.

Poland faces several systemic challenges, which include addressing some of the remaining deficiencies in its road and rail infrastructure, business environment, rigid labor code, commercial court system, government red tape, and burdensome tax system, especially for entrepreneurs. Additional long-term challenges include diversifying Poland’s energy mix, strengthening investments in innovation, research, and development, as well as stemming the outflow of educated young Poles to other EU member states, especially in light of a coming demographic contraction due to emigration, persistently low fertility rates, and the aging of the Solidarity-era baby boom generation.

Source : CIA

Company name & address

M&R PRINTING EQUIPMENT POLAND SP. Z O.O.

Ul. Wolicka 11
32-830 Wojnicz

Phone:    14 6787400

Fax:      14 6926480

E-mail:   info@mrprint.com.pl

Website:  www.mrprint.com.pl

Company summary

Legal form	Limited Liability Company	(5)
Stat.no.	852744212
Tax ID	PL 8733011587

Establishment

12.07.2004

(5)

Registration:

10.08.2004, District Court Kraków, XII Department, KRS 214605

Shareholders	M&R U.S. ACQUISITION CORP.	PLN	11 000 000,00 100,00%
	list entered to NCR /KRS/ on  28.04.2017

Initial Capital		PLN 11 000 000,00
	Initial capital divided into 11000 shares of PLN 1 000,00 each
	An in-kind contribution has been made and valued at	PLN  10 800 000,00

Management	Janusz Tadeusz Cieśla , personal ID no. (PESEL) 58070501479, ul. Henryka Sienkiewicza 106, 33-100 Tarnów  - president
	Representation: President, vice-president (if appointed) or proxy (if appointed)  individually.

Main activity	Manufacture of printing machinery and equipment  Metal processing
	Branches NACE 2007:
	Manufacture of machines for textile, clothing and leather precessing	(C.28.94.Z)
	Manufacture of office machines excluding computers and peripherals	(C.28.23.Z)
	Other wholesale of machines	(G.46.69.Z)

Employment

2012:              138       employees 2013:              139       employees 2014:              140       employees 2017:              147       employees 2018:              148       employees

Turnover	2013	PLN	34 385 996,02
	2014	PLN	40 075 636,59
	2015	PLN	40 825 987,90
	2016	PLN	52 085 764,97
	2017	PLN	42 690 000,00

Financial statements

Source of financial data	Subject	Court	Court	Court
	F01	annual	annual	annual
Personal balance sheet as at	31.12.2017 (PLN)	31.12.2016 (PLN)	31.12.2015 (PLN)	31.12.2014 (PLN)
-A. Fixed assets......................	5 465 000,00	5 875 240,73	3 696 119,22	2 941 108,51
-  I.   Intangible assets.............		52 662,51	44 343,23	14 864,79
-    3. Other intangible assets.......		52 662,51	44 343,23	14 864,79
-  II.  Tangible assets...............		5 365 890,85	3 026 364,95	2 532 525,72
-    1. Fixed goods...................		5 346 526,34	2 728 367,57	2 520 481,99
-      a) land........................			0,00
-      b) buildings, premises, facilities............................		408 841,12	237 888,96	256 945,22
-      c) machinery and equipment.....		4 651 045,07	2 212 799,12	2 043 104,23
-      d) fleet of motor vehicles.....		112 561,25	144 391,45	36 873,00
-      e) other fixed goods...........		174 078,90	133 288,04	183 559,54
-    2. Fixed goods under construction..........................		19 364,51	297 997,38	12 043,73
-  IV.  Long term investments.........		0,00
-V. Long-term prepayments and accrued income........................		456 687,37	625 411,04	393 718,00
-  1. Deferred tax assets.............		452 394,00	612 699,00	313 686,00
-  2. Other prepayments...............		4 293,37	12 712,04	80 032,00
-B. Current assets....................	21 309 000,00	29 368 120,71	22 017 963,82	20 045 462,00
-  I.   Stock.........................	11 336 000,00	10 267 558,05	11 045 864,77	8 481 546,44
-    1. Raw materials.................	6 594 000,00	6 216 124,74	5 578 623,98	5 273 763,39
-    2. Semi-finished products and work-in-progress......................	511 000,00	55 977,60	101 509,57	88 103,57
-    3. Finished products.............	4 179 000,00	3 782 086,22	5 346 814,28	3 092 831,96
-    4. Goods for re-sale.............	52 000,00	211 556,04	18 916,94	26 847,52
-    5. Advance payments .............		1 813,45
-  II. Short-term receivables.........	6 362 000,00	9 419 329,73	5 215 727,43	6 841 757,07
-    1. Receivables from affiliated companies.............................		6 515 971,29	50 836,28
-      a) Due to deliveries and services with payment period:.........		6 515 971,29	50 836,28
-        - up to 12 months............		6 515 971,29	50 836,28
-    2. Other receivables ............		2 903 358,44	5 164 891,15	6 841 757,07
-      a) Due to deliveries and services with payment period:.........		2 336 697,48	4 619 524,99	6 203 829,02
-        - up to 12 months............		2 336 697,48	4 619 524,99	6 065 733,02
-        - above 12 months............				138 096,00
-      b) Due to taxes, subsidies, insurances, duties, etc...............		525 424,89	499 980,64	608 443,42
-      c) Other.......................		41 236,07	45 385,52	29 484,63
-  III. Short term investments........	3 480 000,00	9 602 264,30	5 675 911,42	4 598 291,98
-    1. Short-term financial assets...	3 480 000,00	9 602 264,30	5 675 911,42	4 598 291,98
-      b) Other.......................		72 011,14
-        - other short-term financial assets......................		72 011,14
-      c) cash and other liquid assets................................	3 480 000,00	9 530 253,16	5 675 911,42	4 598 291,98
-        - cash in hand and on bank account...............................		9 530 253,16	5 675 911,42	4 598 291,98
-IV. Short-term prepayments and accrued income........................	131 000,00	78 968,63	80 460,20	123 866,51
-D. Total assets......................	26 774 000,00	35 243 361,44	25 714 083,04	22 986 570,51
-A. Shareholders' equity..............	7 512 000,00	30 150 145,55	18 574 489,09	16 377 952,78
-  I.   Basic share capital...........		11 000 000,00	11 000 000,00	11 000 000,00
-  IV.  Statutory reserve capital.....		3 628 000,00	3 628 000,00	1 677 859,64
-  VII. Profit (loss) carried forward.		3 946 489,09	-208 726,00
-  VIII. Net profit (loss)............	9 332 000,00	11 575 656,46	6 572 383,09	5 658 663,14
-  IX.  Deductions from profit during the accounting year (-.........			-2 417 168,00	-1 958 570,00
-B. Liabilities and reserves for liabilities...........................	19 262 000,00	5 093 215,89	7 139 593,95	6 608 617,73
-  I.   Reserves for liabilities......	1 467 000,00	1 255 308,41	1 258 518,30	1 037 053,69
-    1. Deferred income tax reserves..	455 000,00	288 127,00	203 703,00	224 852,00
-    2. Reserves for pensions and similar social payments...............		81 233,83	78 549,41	81 930,78
-      - long-term....................		72 443,84	70 991,69	73 378,84
-      - short-term...................		8 789,99	7 557,72	8 551,94
-    3. Other reserves................		885 947,58	976 265,89	730 270,91
-      - long-term....................		348 787,12	187 750,94	450 177,66
-      - short-term...................		537 160,46	788 514,95	280 093,25
-II.  Long-term liabilities...........	9 253 000,00	224 812,75	283 064,46	83 931,71
-  2. Other liabilities...............		224 812,75	283 064,46	83 931,71
-    c) Other financial liabilities...		224 812,75	283 064,46	83 931,71
-III. Short-term liabilities..........	8 528 000,00	3 596 739,74	5 576 243,24	5 460 451,42
-  1. Due to affiliated companies.....		342 978,26	476 010,55
-    a) Due to deliveries and services with payment period:.........		342 978,26	476 010,55
-      - up to 12 months..............		342 978,26	476 010,55
-  2. Other liabilities...............		3 202 556,76	5 051 093,78	5 404 572,47
-    c) Other financial liabilities...		58 251,66	123 059,42	115 958,87
-    d)Due to deliveries and services with payment period:.........		996 482,51	2 413 389,13	3 504 739,79
-      - up to 12 months..............		996 482,51	2 413 389,13	3 504 739,79
-    e) Advances received.............		999 793,28	1 652 267,54	1 038 013,81
-    g) Due to taxes, subsidies, insurances, duties, etc...............		801 948,34	489 020,36	429 700,92
-    h) Due to salaries...............		338 391,69	308 882,22	312 830,52
-    i) Other.........................		7 689,28	64 475,11	3 328,56
-  3. Special funds...................		51 204,72	49 138,91	55 878,95
-IV.  Accruals and deferred income....	14 000,00	16 354,99	21 767,95	27 180,91
-  2. Other accruals..................		16 354,99	21 767,95	27 180,91
-    - long-term......................		13 799,11	16 354,95	21 767,97
-    - short-term.....................		2 555,88	5 413,00	5 412,94
-D. Total liabilities.................	26 774 000,00	35 243 361,44	25 714 083,04	22 986 570,51
Source of financial data	Subject	Court	Court	Court
	F01	annual	annual	annual
individual PROFIT AND LOSS ACCOUNT	- 01.01.2017- 31.12.2017 (PLN)	01.01.2016- 31.12.2016 (PLN)	01.01.2015- 31.12.2015 (PLN)	01.01.2014- 31.12.2014 (PLN)
-A. Income from sales and similar.....	42 690 000,00	52 085 764,97	40 825 987,90	40 075 636,59
-  - including related companies......		9 738 985,52	2 624 019,28
-  I.   Net income on sales...........	36 279 000,00	46 373 338,90	32 873 957,07	34 402 087,43
-  II.  Change in value of stock ( +, -).................................	944 000,00	-1 532 536,38	2 171 734,44	-717 880,54
-  III. Sales of goods for own use....	3 719 000,00	4 672 194,10	4 014 501,06	3 962 192,08
-  IV.  Income from sales of goods and materials.........................	1 748 000,00	2 572 768,35	1 765 795,33	2 429 237,62
-B. Operational costs.................	35 479 000,00	38 675 295,92	32 563 958,54	34 117 801,96
-  I.   Depreciation..................	966 000,00	673 418,86	536 584,27	538 509,70
-  II.  Materials and energy..........	18 052 000,00	20 364 229,43	16 398 828,37	17 420 145,23
-  III. Third party services..........	7 562 000,00	8 147 934,85	7 369 901,71	7 569 795,14
-  IV.  Taxes and duties..............	43 000,00	34 981,73	164 128,72	129 843,61
-  V.   Salaries and wages............	6 222 000,00	6 156 078,90	5 354 751,06	5 147 180,36
-  VI.  Social security...............	1 510 000,00	1 485 977,96	1 308 031,70	1 285 297,98
-  VII. Other.........................	279 000,00	247 950,44	375 504,84	242 278,94
-  VIII.Costs of goods and materials sold..................................	845 000,00	1 564 723,75	1 056 227,87	1 784 751,00
-C. Profit on sale....................	7 211 000,00	13 410 469,05	8 262 029,36	5 957 834,63
-D. Other operating incomes...........	599 000,00	463 966,87	597 499,44	712 576,61
-  I.   Incomes from disposal non-financial assets..................			6 097,56
-  II.  Subsidies.....................		440 394,20
-  III. Other operating incomes.......	64 000,00	23 572,67	591 401,88	712 576,61
-  ...................................	535 000,00
-E. Other operating costs.............	1 101 000,00	319 227,00	1 377 880,65	669 071,15
-  I.   Loss on disposal of non-finacial assets...................		5 429,86		46 919,11
-  II.  Goodwill revaluation..........	961 000,00	284 901,38	1 356 704,96	557 341,81
-  III. Other operating costs.........	140 000,00	28 895,76	21 175,69	64 810,23
-F. Profit on operating activities....	6 709 000,00	13 555 208,92	7 481 648,15	6 001 340,09
-G. Financial incomes.................	4 508 000,00	767 767,88	660 509,55	1 017 640,96
-  II.  Interest received.............	75 000,00	27 361,44	10 525,31	17 065,43
-  IV.  Financial assets revaluation..	598 000,00	21 434,49
-  V.   Other.........................	3 835 000,00	718 971,95	649 984,24	1 000 575,53
-H. Financial costs...................	578 000,00	27 785,34	20 963,61	25 658,91
-  I.   Interest......................	578 000,00	18 871,74	20 963,61	25 658,91
-  IV.  Other.........................		8 913,60
-I. Profit on economic activity.......	10 639 000,00	14 295 191,46	8 121 194,09	6 993 322,14
-K. Gross profit......................	10 639 000,00	14 295 191,46	8 121 194,09	6 993 322,14
-L. Corporation tax...................	1 307 000,00	2 719 535,00	1 548 811,00	1 334 659,00
-  a) current part....................	1 282 000,00
-  b) deferred part...................	25 000,00
-N. Net profit........................	9 332 000,00	11 575 656,46	6 572 383,09	5 658 663,14

Ratios	01.01.2017- 31.12.2017	01.01.2016- 31.12.2016	01.01.2015- 31.12.2015	01.01.2014- 31.12.2014
Current ratio	2,50	8,17	3,95	3,67
Quick ratio	1,15	5,29	1,95	2,10
Immediate ratio	0,41	2,65	1,02	0,84
Return on sale	21,86	22,22	16,10	14,12
Return on assets	34,85	32,84	25,56	24,62
Return on equity	124,23	38,39	35,38	34,55
Average trade debtors' days	54,40	66,19	46,63	62,31
Average stock turnover's days	96,92	72,15	98,75	77,25
average payables payment period	72,91	25,27	49,85	49,73
Total indebtedness ratio	71,94	14,45	27,77	28,75

While rating the company, it is advisable to take into consideration information about the branch, the company is acting in
(C.28.94.Z - NACE 2007), as at :	31.12.2017	31.12.2016	31.12.2015	31.12.2014	31.12.2013
Current ratio............................	2,67	4,36	3,97	4,41	4,69
Quick ratio..............................	1,15	2,40	2,04	2,19	1,65
Immediate ratio..........................	0,35	1,13	0,77	0,95	0,70
Return on sale...........................	5,54	9,50	8,32	7,72	4,76
Return on assets.........................	8,24	15,26	14,07	14,43	9,73
Return on equity.........................	15,57	20,08	19,57	19,03	12,65
Average trade debtors' days..............	45,70	45,48	46,80	36,58	24,35
Average stock turnover's days............	90,19	70,60	70,95	64,90	77,64
average payables payment period..........	60,97	36,50	36,88	29,52	25,78
Total indebtedness ratio.................	47,10	24,03	28,10	24,15	23,09
Percent share in the examinated group of companies with net profit.............	75,00	75,00	66,70	66,70	100,00
Sales/revenue per employee in th. PLN....	245,83	290,63	234,87	226,58	235,40
Average sales/revenue per company in th. PLN..................................	33 924,50	38 727,00	33 821,00	31 796,67	32 015,00
according to the Central Statistical Office

Locations:

seat: ul. Wolicka 11, 32-830 Wojnicz Phone:                   14 6787400                          14 6787403 Fax:                     14 6926480 E-mail:                  elzbieta.strojna@mrprint.com.pl                          info@mrprint.com.pl Website:                 www.mrprint.com.pl

Real Estate

Verification of information on real estate ownership position through the Real Estate Register is not covered by the standard report.

Means of transport

As at 31.12.2016  book value of car fleet was: PLN 112 561,25

Shares in other companies

As at 23.03.2018 there are no shares in other companies.

Connections:	Janusz Tadeusz Cieśla , personal ID no. (PESEL) 58070501479 -  HOFF PRODUCTS SPÓŁKA Z O.O. NIP 9930277775, ul. Wolicka 11, 32-830 Wojnicz   · proxy
	Data concerning connections are valid as at: 23.03.2018.

Acquisitions

28.04.2017 (Entry date) - merger "M&R PRINTING EQUIPMENT POLAND" Sp. z o.o., ul. Wolicka 11, 32-830 Wojnicz (as taking over)  MANGELLA sp. z o.o. KRS 576807, pl. Marszałka Józefa Piłsudskiego 1, 00-078 Warszawa (as taken over) (Resolution date 30.03.2017 )

Banks

RAIFFEISEN BANK POLSKA SA Oddział w Tarnowie ul.Szkotnik 2B  (17501338) ul. Szkotnik 2B, 33-100 Tarnów Acc.no. 56175013380000000008760373

Payment Manner	Nothing detrimental noted.	(27)
Credit capability	Business connections appear permissible	(32)
	We would like to draw your attention to: - Fall in sales

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.61
UK Pound	1	INR 94.21
Euro	1	INR 81.32
PLN	1	INR 19.52

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VAR
Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)