MIRA INFORM REPORT

Report No. :	489352
Report Date :	01.02.2018

IDENTIFICATION DETAILS

Name :	VH SERVICES SPOL. S R.O.
Registered Office :	DomaZlicka 1235/168c, 318 00 Plzen 3, Skvrnany
Country :	Czech Republic
Financials (as on) :	31.12.2016
Date of Incorporation :	18.12.1991
Com. Reg. No.:	C 1311
Legal Form :	Private limited company
Line of Business :	Wholesale of machine tools Sale, service and modernization of used and new machine tools, sale \ of spare parts
No. of Employees :	10

RATING & COMMENTS

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

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Czech Republic	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

Company identification

VH services spol. s r.o.	telephone	00420/377 226 216
DomaZlicka 1235/168c	telefax	00420/377 220 217
318 00 Plzen 3, Skvrnany	e-mail	office@vhsltd.cz
Czech Republic	Web	www.vhsltd.cz

Crefo Nr.	9210216383	Registration:	Krajsky soud Plzen
Statistical Nr.	40526534	Registration Nr.	C 1311
Tax Nr.	CZ40526534	Status	activ

Basic information

Legal form

Private limited company

Founded

18/12/1991 as Private limited company

Registration

18/12/1991, Krajsky soud Plzen, C 1311 Statistical Nr.: 40526534 Tax Nr.: CZ40526534

Registered names

Valid from Trade name(s) Valid until

18/12/1991 VH services spol. s r.o.

Owners and Capital

Crefo Nr.	Name / Address / Status	From	Share
Shareholders
9210216384	Ing. Vladimir Havlteek (birth date 01/06/1953) Litice 2628, 321 00 Plzen Czech Republic		100,000 CZK
Total capital			100,000 CZK

Registered capital

Date Currency Value

18/12/1991 CZK 100,000

Management

Crefo Nr.	Name / Address / Status	Since	Power of attorney
Management
9210216384	Ing. Vladimir Havlicek (birth date 01/06/1953) Executive Manager Litice 2628, 321 00 Plzen Czech Republic	10/11/2017

Company addresses

Valid from	Address	Valid until
01/06/2012	Domazlicka 1235/168c, 318 00 Plzen 3, Skvmany, Czech Republic
18/12/1991	U Prazdroje 24, 301 52 Plzen, Czech Republic	29/07/2003
29/07/2003	Mikulasske nam. 18, 326 00 Plzen, Czech Republic	01/06/2012

Business activities

Main activity	Nace
Wholesale of machine tools	46.62
Additional activities	Nace
Sale, service and modernization of used and new machine tools, sale \ of spare parts.

Economic data

Turnover and Employees

Date	Turnover	Employees
2003		8 employees
2004		8 employees
2011	actual sales 63,605,000 CZK
2012	actual sales 44,353,000 CZK
2013	actual sales 51,931,000 CZK	13 employees
2014	actual sales 25,199,000 CZK	11 employees
2015	actual sales 28,298,000 CZK	11 employees
2016	actual sales 22,358,000 CZK	9 employees
2018		10 employees

Import / Export

	Import	Export
Percentage	Unknown	Unknown
Countries	Unknown	India, Turkey

Properties

Name	Detail	Currency	Value
total value of lands	Property of the company	CZK	703,000
total value of buildings	Property of the company	CZK	6,525,000

Supplementary data

Remarks

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. Further participations: Vladimir Havlicek

Water Jet Germany s.r.o., ICC 29108691, executive head

LW JET Technology s.r.o., ICC 06581285, executive head, share 100%

(est. 2017)

Contact:

Ing. Vladimir Havlicek - director,

phone: 00420/ 377 152 116, 00420/ 602 220 206, e-mail:

office@vhsltd.cz

Katerina Dzurova - accountant,

phone: 00420/ 377 152 113, 00420/ 722 059 158, e-mail:

acounts@vhsltd.cz

Eva Pnhodova, external accountant,

phone: 00420/ 735 080 319

Banks

Code Bank name / Address Account Nr.

2700 UniCredit Bank Czech Republic and Slovakia, a.s. 2104188211/2700

Main indices

Payment experience and credit opinion

Terms of payment	Slow but Correct	(32)
Business connection	Business connections appear permissible	(31)

Business development

Company development	Stagnant business development	(39)
Order situation	Retrograde order situation	(40)

Events

No negative events registered.

Per 31/01/2018 the company was examined in a Central register of executions and no records were found

Financials

Balance

Dec 31, 2016 The enclosed balance of 2016 from business register, ..

Dec 31, 2015 The enclosed balance of 2015 from business register, ..

Dec 31, 2014 The enclosed balance of 2014 from business register, ..

Dec 31, 2013 The enclosed balance of 2013 from business register, ..

	31/12/2016	31/12/2015	31/12/2014	31/12/2013
	1000	1000	1000	1000
Name
	CZK	CZK	CZK	CZK
	balance	balance	balance	balance
TOTAL ASSETS	26,557	27,701	27,850	30,920
Receivables for subscriptions	0	0
Fixed assets	7,552	8,118	8,685	9,332
Intangible fixed assets	0	0	0	0
Incorporation expenses		0
Research and development		0
Valuable rights
Software		0
Other valuable rights		0
Goodwill		0
Other intangible fixed assets		0
Other intangible fixed assets
Advance payments for intangible fixed assets and
intangible fixed assets under construction
Advance payments for intangible fixed assets		0
Intangible fixed assets under construction		0
Tangible fixed assets	7,552	8,118	8,685	9,332
Lands and Constructions	7,228
Lands	703	703	703	703
Constructions	6,525	6,803	7,082	6,362
Equipment	324	612	900	1,269
Adjustment to acquired assets		0
Other tangible fixed assets
Perennial corps		0
Breeding and draught animals		0
Other tangible fixed assets		0
Advance payments for tangible fixed assets and
tangible fixed assets under construction
Advance payments for tangible fixed assets		0
Tangible fixed assets under construction		0		998
Long-term financial assets	0	0	0	0
Shares - controlled organizations		0
Shares in accounting units with substantial influ-		0
ence
Other securities and shares		0
Loans - controlled and controlling organizations,		0
substantial influence
Other financial investments		0
Financial investments acquired		0
Shares - controlled and controlling organizations
Shares - controlled and controlling organizations
Loans - controlled and controlling organizations
Shares - substantial influence
Loans - substantial influence
Other securities and shares
Other loans
Other financial investments
Advance payments for long-term financial assets		0
Current assets	19,005	19,543	19,165	21,571
Inventory	12,813	14,702	11,315	6,911
Materials		0
Work in progress and semi-products	9,230	9,270	6,485	3,770
Finished products and merchandise	3,583
Finished products		0
Merchandise	3,583	5,432	4,830	3,141
Animals		0
Advance payments for inventory		0
Receivables	6,151
Long-term receivables	0	0	0	0
Trade receivables		0
Receivables - controlled and controlling organiza- tions		0
Receivables from accounting units with substantial influence		0
Deferred tax receivable		0
Other receivables
Receivables from partners		0
Long-term deposits given		0
Estimated receivable		0
Other receivables		0
Short-term receivables	6,151	5,960	6,632	13,583
Trade receivables	5,100	5,051	5,774	12,814
Receivables - controlled and controlling organiza-		0
tions
Receivables from accounting units with substan-		0
tial influence
Other receivables	1,051
Short-term financial assets		-1,119	1,218	1,077
Receivables from partners		0
Receivables from social security and health insur- ance		0
Due from state - tax receivable	468	904	813	695
Short-term deposits given	577	0
Estimated receivable		0
Other receivables	6	5	45	74
Short-term financial assets
Shares - controlled and controlling organizations
Other short-term financial assets
Cash and bank accounts	41
Cash	3	29	5	2
Bank accounts	38	-1,148	1,213	1,075
Short-term securities and ownership interests		0
Short-term financial assets acquired		0
Accruals	0	40	0	17
Deferred expenses		40		17
Complex deferred costs		0
Deferred income		0
TOTAL LIABILITIES	26,557	27,701	27,850	30,920
Equity	3,682	6,384	6,326	5,182
Registered capital	100	100	100	100
Registered capital	100	100	100	100
Ownership interests (-)		0
Changes of registered capital ( +/- )		0
Share premium and capital funds	0	0	0	0
Share premium		0
Capital funds
Other capital funds		0
Differences from revaluation of assets and liabili- ties ( +/- )		0
Diferences from revaluation in tranformation of companies (+/-)		0
Diferences from tranformation of companies ( +/-)
The differences from valuation on transformation
of business corporations
Funds from earnings	33	32	33	33
Other reserve funds	33	32	33	33
Statutory and other funds		0
Profit / loss - previous years (+/-)	6,093	5,915	4,816	3,637
Retained earnings from previous years	6,259	6,081	4,982	3,803
Accumulated losses from previous years (-)	-166	-166	-166	-166
Other profit / loss - previous years (+/-)
Profit / loss - current year (+/-)	-2,544	337	1,377	1,412
Decided on advance for payment of a profit share (-)			0	0
Liabilities	22,665	21,137	21,434	25,738
Reserves	0	0	0	0
Reserves for pension and similar payables		0
Income tax reserves		0
Reserves under special statutory regulations		0
Other reserves		0
Payables	22,665
Long-term payables	5,948	457	652	834
Issues bonds		0
Exchangeable obligations
Other bonds
Liabilities to credit institutions	5,702	2,323	3,935	5,447
Long-term advances received		0
Trade payables		0
Long-term notes payables		0
Payables - controlled and controlling organizations		0
Payables to accounting units with substantial in-		0
fluence
Deferred tax liability		0
Other payables	246
Payables to partners		0
Estimated payables		0
Other payables	246	457	652	834
Short-term payables	16,717	7,957	7,527	11,891
Issues bonds		0
Exchangeable obligations
Other bonds
Payables to banks	7,000	10,000	8,920	7,166
Short-term deposits received	218	252	1,086	458
Trade payables	4,863	5,091	4,180	9,713
Short-term notes payables
Payables - controlled and controlling organizations		0
Payables to accounting units with substantial in- fluence		0
Other payables	4,636
Bank loans and financial accommodations		12,723	13,255	13,013
Payables to partners	2,183	2,185	1,809	1,309
Short-term accommodations	2,060	400	400	400
Payroll	235	178	163	124
Payables to social securities and health insurance	135	138	166	140
Due from state - tax liabilities and subsidies	23	43	95	44
Estimated payables		70		75
Other payables		0	28	28
Accruals	210	180	90	0
Accrued expenses		0
Deferred revenues	210	180	90

Profit and loss accounts
Dec 31, 2016 The enclosed profit/loss account of	2016	from business register, ..
Dec 31, 2015 The enclosed profit/loss account of	2015	from business register, ..
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, ..

	31/12/2016	31/12/2015	31/12/2014	31/12/2013
	1000	1000	1000	1000
Name	CZK	CZK	CZK	CZK
	profit/loss	profit/loss	profit/loss	profit/loss
	account	account	account	account
Turnover	22,358	28,298	25,199	51,931
Revenues from own products and services	6,933	7,495	6,326	5,471
Revenues from sold goods	15,425	20,803	18,873	46,460
Production consumption	18,494
Expenses on sold goods	12,289	16,316	13,264	36,377
Sale margin		4,487	5,609	10,083
Production		10,280	9,041	5,391
Consumption of material and energy	450	520	587	747
Services	5,755	6,669	5,422	5,939
Added value		7,578	8,641	8,788
Change in inventory of own products (+/-)	40	2,785	2,715	-80
Capitalization (-)		0
Production consumption		7,189	6,009	6,686
Personnel expenses	4,658	4,925	5,722	6,431
Wages and salaries		3,668	4,249	4,611
Wages and salaries	3,517
Renumeration of board members		0
Social security, healt insurance and other ex-	1,141
penses
Social security expenses and health insurance	1,042	1,176	1,371	1,708
Other expenses	99	81	102	112
Value adjustments in the operational area	567
Value adjustments of intagible and tangible fixed assets	567
Value adjustments of intagible and tangible fixed assets - permanent	567	567	648	548
Value adjustments of intagible and tangible fixed assets - temporary
Stock value adjustments Receivable value adjustments
Revenues from disposals of fixed assets and		0	0	378
materials
Other operating revenues	170
Other operating expenses		810	82	-45
Revenues from disposals of fixed assets	2	0		378
Revenues from disposals of materials		0
Net book value of disposed fixed assets and		0	0	44
materials
Other operating revenues	168
Other operating expenses	384
Transfer of operating revenues		0
Transfer of operating expenses		0
Net book value of sold fixed assets		0		44
Net book value of sold material		0
Taxes and fees	74	76	85	73
Change in operating reserves and adjustments		0
and complex deferred costs ( + / - )
Reserves and complex deferred costs
Other operating revenues		20	22	15
Other operating expenses	310
Operating profit / loss	-1,615	1,220	2,126	2,130
Revenues from sales of securities and ownership		0
interests
Sold securities and ownership interests		0
Revenues from long-term financial assets		0	0	0
Revenues from shares in controlled and managed organizations and in accounting units with substantial influence		0
Revenues from shares - controlled and controlling organizations
Revenues from others securities and ownership interests
Revenues from other long-term financial as- sets		0
Other revenues from shares
Revenues from short-term financial assets		0
Expenses associated with financial assets		0
Costs spent for sold shares
Revenues from other long-term financial assets
Revenues from other long-term financial assets controlled and controlling organizations
Revenues from other long-term financial assets
Costs related to other fixed financial assets
Revenues from revaluation of securities and derivatives		0
Cost of revaluation of securities and derivatives		0
Interest revenues
Interest revenues - controlled and controlling organizations
Other interest revenues
Value adjustments and reserves in the finan-		0
cial area
Interest expenses	584	630	642	531
Interest revenues		4
Interest expenses - controlled and controlling or-	584
ganizations
Other interest expenses
Other financial revenues		187	285	1,346
Other financial reveneus	15
Other financial expenses		444	392	1,533
Other financial expenses	360
Transfer of financial revenues		0
Transfer of financial expenses		0
Profit / loss from financial operations ( trans-	-929	-883	-749	-718
actions ) (+/-)
Income tax on ordinary income		0	0	0
Profit / loss before tax (+/-)	-2,544	337	1,377	1,412
Income tax	0
Due tax		0
Income tax - due tax
Tax deferred		0
Income tax - tax deferred (+/-)
Operating profit / loss ordinary activity		337	1,377	1,412
Extraordinary revenues		0
Extraordinary expenses		0
Income tax on extraordinary income		0	0	0
Due tax		0
Tax deferred		0
Operating profit / loss extraordinary activity		0	0	0
Profit/Loss after tax ( +/- )	-2,544
Transfer profit ( loss ) to partners (+/-)		0
Profit / loss of current accounting period (+/-)	-2,544	337	1,377	1,412
Net turnover for the accounting period	22,543
Receivables after due date total	2,261	3,415	4,295	3,484
Receivables more than 30 days after due date	2,260	3,056	3,202	3,463
Liabilities after due date total	2,314	1,009	1,771	2,281
Liabilities more than 30 days after due date	1,750	154	366	328

Financial Ratios

Financial Ratios
Name	Ref.	31/12/2016	31/12/2015	31/12/2014	31/12/2013
Return on total assets ROA (in %)	1	-9.58	1.22	4.94	4.57
Return on equity ROE (in %)	2	-69.09	5.28	21.77	27.25
Return on sales ROS (in %)	3	-11.38	1.19	5.46	2.72
Turnover of receivables (in days)	4	83.26	65.15	83.63	90.06
Turnover of liabilities (in days)	5	79.39	65.67	60.55	68.27
Turnover of inventories (days)	6	209.18	189.63	163.89	48.57
Net working capital (in ths. CZK)	7	-6772.00	1186.00	2318.00	2114.00
Ratio of accounts payable to accounts receivable	8	27.14	70.83	81.09	106.74
Ratio of profit/loss to tangible assets (in%)	9	33.78	28.69	34.47	17.97
Current ratio	10	0.74	1.06	1.14	1.11
Quick ratio	11		0.26	0.47	0.75
Cash ratio	12		-0.06	0.07	0.06
Debt ratio I (in %)	13	86.14	76.95	77.29	83.24
Debt ratio II (in %)	14	85.34	76.30	76.96	83.24

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.75
UK Pound	1	INR 89.39
Euro	1	INR 78.54
CZK	1	INR 3.13

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

INFORMATION DETAILS

Analysis Done by :	NIY
Report Prepared by :	KET

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)

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.