MIRA INFORM REPORT

Report No. :	492636
Report Date :	17.02.2018

IDENTIFICATION DETAILS

Name :	BBK SA
Registered Office :	Ul. Magnacka 15a, 80-180 Kowale
Country :	Poland
Financials (as on) :	31.12.2016
Date of Incorporation :	14.04.1997
Com. Reg. No.:	KRS 15349
Legal Form :	Joint Stock Company
Line of Business :	· Wholesale and retail sale of household textiles · Other retail
No. of Employees :	214 [2014]

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	Acceptable Risk	Business dealings permissible with moderate 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 (30.06.2017)	Current Rating (30.09.2017)
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 AND ADDRESS

BBK SA

ul. Magnacka 15A
80-180 Kowale

Phone:    58 7622020

Fax:      58 7622060

E-mail:   biuro@bbk.com.pl

Website:  www.bbk.com.pl

COMPANY SUMMARY

Legal form	Joint Stock Company	(6)
Stat.no.	191337990
Tax ID	PL 5842056682

Establishment	14.04.1997	(6)
Changes of names and addresses	LPP TEX SA ul. Mikołaja Reja 3, 80-176 Gdańsk
	20.10.2003  ul. Śmidowicza 48, 81-127 Gdynia
	27.12.2010  ul. Magnacka 4, 80-180 Kowale
	05.09.2014 BBK SA  ul. Magnacka 15A, 80-180 Kowale

Registration:

07.06.2001, District Court Gdańsk, VII Department, KRS 15349 Data concerning previous registrations: 06.05.1997, District Court Gdańsk, RHB 12065

Shareholders	Wojciech Grzegorz Olejniczak , personal ID no. (PESEL) 56021903172, ul. Arctowskiego 3/4, 80-288 Gdańsk
	Percent of owned shares	33.34%
	Marek Leszek Piechocki , personal ID no. (PESEL) 61020502291, ul. Okrężna 6A, 81-822 Sopot
	Percent of owned shares	33.33%
	Jerzy Ryszard Lubianiec , personal ID no. (PESEL) 60061501654, ul. Smugowa 8A, 80-299 Gdańsk
	Percent of owned shares	33.33%
	list prepared on 31.03.2007

Share capital		PLN 510 000,00
	Share capital divided into 102 shares of PLN 5 000,00 each

Management	Wojciech Grzegorz Olejniczak , personal ID no. (PESEL) 56021903172, ul. Arctowskiego 3/4, 80-288 Gdańsk  - president Magdalena Anna Barańska , personal ID no. (PESEL) 81071203149  - vice president Jacek Dariusz Baczewski , personal ID no. (PESEL) 62042703316, Rotmanka, ul. Cyprysowa 4, 83-010 Straszyn  - vice president
	Representation: since 07.06.2001  Each member of the board acts on behalf of the company individually.

Supervisory board

Marek Leszek Piechocki , personal ID no. (PESEL) 61020502291, ul. Okrężna 6A, 81-822 Sopot Anna Maria Łoboda , personal ID no. (PESEL) 60031108483 Wojciech Józef Pietrzyk , personal ID no. (PESEL) 52073002654, ul. Związku Jaszczurczego 3/61, 80-288 Gdańsk

Main activity	Wholesale and retail sale of household textiles
	Branches NACE 2007:
	Other retail	(G.47.51.Z)
	Other retail	(G.47.53.Z)

Employment

2010:              118       employees 2011:              161       employees 2012:              163       employees 2013:              177       employees 2014:              214       employees

Turnover	2012	PLN	184 849 015,15
	2013	PLN	210 669 345,62
	2014	PLN	261 418 516,50
	2015	PLN	322 814 908,38
	2016	PLN	399 329 094,36

Financial statements

Source of financial data	Court	Subject	Subject	Subject
	annual	annual	annual	annual
Personal balance sheet as at	31.12.2016 (PLN)	31.12.2015 (PLN)	31.12.2014 (PLN)	31.12.2013 (PLN)
-A. Fixed assets......................	45 755 570,96	48 794 047,70	33 392 422,09	29 799 450,02
-  I.   Intangible assets.............	323 080,31	582 435,05	327 402,66	512 639,39
-    2. Goodwill......................		582 435,05
-    3. Other intangible assets.......	323 080,31		327 402,66	512 639,39
-  II.  Tangible assets...............	40 288 763,38	43 987 509,13	29 767 400,59	27 002 950,35
-    1. Fixed goods...................	38 678 941,90	43 810 803,97	28 639 571,76	26 904 138,04
-      b) buildings, premises, facilities............................	23 686 202,43	26 962 081,68	17 916 937,32	18 380 281,65
-      c) machinery and equipment.....	2 364 375,42	2 387 705,46	2 047 379,66	1 803 604,47
-      d) fleet of motor vehicles.....	1 628 221,70	1 739 202,02	1 583 169,18	1 161 012,58
-      e) other fixed goods...........	11 000 142,35	12 721 814,81	7 092 085,60	5 559 239,34
-    2. Fixed goods under construction..........................	1 609 821,48	176 705,16	1 127 828,83	98 812,31
-  III. Long term receivables.........	278 397,41	246 167,44
-    2. Other receivables.............	278 397,41	246 167,44
-V. Long-term prepayments and accrued income........................	4 865 329,86	3 977 936,08	3 297 618,84	2 283 860,28
-  1. Deferred tax assets.............	4 798 689,00	3 915 628,00	3 260 576,00	2 278 754,00
-  2. Other prepayments...............	66 640,86	62 308,08	37 042,84	5 106,28
-B. Current assets....................	150 127 676,07	114 071 094,37	95 450 600,32	72 867 033,64
-  I.   Stock.........................	96 925 586,30	93 119 088,98	74 623 110,31	58 986 319,87
-    1. Raw materials.................	547 404,42	585 697,89	358 928,11	582 592,37
-    4. Goods for re-sale.............	95 701 823,14	91 830 350,03	73 601 822,73	57 821 064,69
-    5. Advance payments .............	676 358,74	703 041,06	662 359,47	582 662,81
-  II. Short-term receivables.........	15 938 874,88	16 797 755,83	14 288 595,25	10 143 503,86
-    1. Receivables from affiliated companies.............................			1 473 019,60
-      a) Due to deliveries and services with payment period:.........			1 473 019,60
-    2. Other receivables ............	15 938 874,88	16 797 755,83	12 815 575,65	10 143 503,86
-      a) Due to deliveries and services with payment period:.........	12 540 701,95	11 996 496,77	9 641 262,33	8 424 974,63
-        - up to 12 months............	12 540 701,95	11 996 496,77
-      b) Due to taxes, subsidies, insurances, duties, etc...............	1 477 311,53	1 129 572,30	1 066 546,97	767 144,54
-      c) Other.......................	1 920 861,40	3 671 686,76	2 107 766,35	951 384,69
-  III. Short term investments........	35 349 268,78	2 819 749,31	5 372 948,17	2 754 574,20
-    1. Short-term financial assets...	35 349 268,78	2 819 749,31	5 372 948,17	2 754 574,20
-      a) in affiliated companies.....			301 462,69
-        - granted loans..............			301 462,69
-      c) cash and other liquid assets................................	35 349 268,78	2 819 749,31	5 071 485,48	2 754 574,20
-        - cash in hand and on bank account...............................	21 834 015,37	989 204,63	1 275 545,86	502 231,16
-        - other liquid assets........	13 515 253,41	1 830 544,68	3 795 939,62	2 252 343,04
-IV. Short-term prepayments and accrued income........................	1 913 946,11	1 334 500,25	1 165 946,59	982 635,71
-D. Total assets......................	195 883 247,03	162 865 142,07	128 843 022,41	102 666 483,66
-A. Shareholders' equity..............	103 399 730,21	83 594 881,74	68 122 201,75	52 275 644,55
-  I.   Basic share capital...........	510 000,00	510 000,00	510 000,00	510 000,00
-  III. Share premium capital.........			45 165 644,55
-  IV.  Statutory reserve capital.....	65 684 881,74	55 012 201,75		39 133 283,88
-  VII. Profit (loss) carried forward.		-979 715,85
-  VIII. Net profit (loss)............	37 204 848,47	29 052 395,84	22 446 557,20	12 632 360,67
-B. Liabilities and reserves for liabilities...........................	92 483 516,82	79 270 260,33	60 720 820,66	50 390 839,11
-  I.   Reserves for liabilities......	8 703 874,94	6 114 820,79	4 479 307,01	2 995 489,56
-    1. Deferred income tax reserves..	564 646,00	458 302,00	431 985,00	353 156,00
-    2. Reserves for pensions and similar social payments...............	1 065 537,44	782 034,23	802 399,43	625 233,75
-      - long-term....................	141 834,44	82 101,71	71 020,55	55 628,07
-      - short-term...................	923 703,00	699 932,52	731 378,88	569 605,68
-    3. Other reserves................	7 073 691,50	4 874 484,56	3 244 922,58	2 017 099,81
-      - short-term...................	7 073 691,50	4 874 484,56	3 244 922,58	2 017 099,81
-II.  Long-term liabilities...........	1 600 988,10	1 709 386,24	1 975 022,70	787 625,69
-  2. Other liabilities...............	1 600 988,10	1 709 386,24	1 975 022,70	787 625,69
-    d) Other.........................	1 600 988,10	1 709 386,24	1 975 022,70	787 625,69
-III. Short-term liabilities..........	76 985 986,06	66 439 730,60	52 969 038,72	46 607 723,86
-  1. Due to affiliated companies.....			40 115,70
-    a) Due to deliveries and services with payment period:.........			40 115,70
-      - up to 12 months..............			40 115,70
-  2. Other liabilities...............	76 985 986,06	66 439 730,60	52 928 923,02	46 607 723,86
-    a) Loans.........................	660,70	1 349 246,16	201,14	8 773 087,57
-    c) Other financial liabilities...	1 209,89
-    d)Due to deliveries and services with payment period:.........	44 979 303,00	39 255 979,78	32 009 572,86	23 240 660,12
-      - up to 12 months..............	44 979 303,00	39 255 979,78	32 009 572,86	23 240 660,12
-    e) Advances received.............				17 556,00
-    g) Due to taxes, subsidies, insurances, duties, etc...............	20 507 480,11	17 382 303,14	14 914 944,73	10 315 914,64
-    h) Due to salaries...............	1 806 662,10	909 797,09	1 164 435,02	840 945,41
-    i) Other.........................	9 690 670,26	7 542 404,43	4 839 769,27	3 419 560,12
-IV.  Accruals and deferred income....	5 192 667,72	5 006 322,70	1 297 452,23
-  2. Other accruals..................	5 192 667,72	5 006 322,70	1 297 452,23
-    - long-term......................	4 002 685,75	4 110 310,54	938 155,73
-    - short-term.....................	1 189 981,97	896 012,16	359 296,50
-D. Total liabilities.................	195 883 247,03	162 865 142,07	128 843 022,41	102 666 483,66
Source of financial data	Court	Subject	Subject	Subject
	annual	annual	annual	annual
individual PROFIT AND LOSS ACCOUNT	01.01.2016- 31.12.2016 (PLN)	01.01.2015- 31.12.2015 (PLN)	01.01.2014- 31.12.2014 (PLN)	01.01.2013- 31.12.2013 (PLN)
-A. Income from sales and similar.....	399 329 094,36	322 814 908,38	261 418 516,50	210 669 345,62
-  - including related companies......			36 366,44	3 682 419,42
-  I.   Net income on sales...........	305 027,44	99 660,88	122 976,03	252 577,90
-  IV.  Income from sales of goods and materials.........................	399 024 066,92	322 715 247,50	261 295 540,47	210 416 767,72
-B. Operational costs.................	347 807 761,91	283 919 697,74	230 623 275,97	191 536 846,36
-  I.   Depreciation..................	11 604 562,05	9 637 784,95	8 543 233,40	7 228 165,06
-  II.  Materials and energy..........	11 986 431,68	10 671 861,88	9 040 989,28	7 330 417,87
-  III. Third party services..........	108 010 424,75	88 807 290,03	76 320 479,93	61 547 681,90
-  IV.  Taxes and duties..............	615 359,68	631 302,01	493 599,09	721 739,03
-  V.   Salaries and wages............	19 180 664,10	16 562 310,34	14 588 241,24	12 705 436,32
-  VI.  Social security...............	3 609 310,61	3 224 407,84	2 694 646,71	2 467 270,71
-  VII. Other.........................	4 799 502,05	3 603 448,36	3 092 018,14	3 035 287,59
-  VIII.Costs of goods and materials sold..................................	188 001 506,99	150 781 292,33	115 850 068,18	96 500 847,88
-C. Profit on sale....................	51 521 332,45	38 895 210,64	30 795 240,53	19 132 499,26
-D. Other operating incomes...........	2 130 699,07	2 378 443,76	4 169 590,22	1 352 390,18
-  I.   Incomes from disposal non-financial assets..................	59 925,72		1 244 008,50	387 057,04
-  III. Other operating incomes.......	2 070 773,35	2 378 443,76	2 925 581,72	965 333,14
-E. Other operating costs.............	6 349 711,66	2 938 243,10	2 285 280,19	3 506 134,84
-  I.   Loss on disposal of non-finacial assets...................		555 161,95
-  II.  Goodwill revaluation..........	4 635 312,35	538 200,85	983 922,22	2 701 339,60
-  III. Other operating costs.........	1 714 399,31	1 844 880,30	1 301 357,97	804 795,24
-F. Profit on operating activities....	47 302 319,86	38 335 411,30	32 679 550,56	16 978 754,60
-G. Financial incomes.................	53 999,29	45 558,45	306 424,96	692 775,97
-  II.  Interest received.............	11 073,80	31 819,33	19 561,16	34 238,98
-    - including related companies....			11 845,84
-  IV.  Financial assets revaluation..				2 727,71
-  V.   Other.........................	42 925,49	13 739,12	286 863,80	655 809,28
-H. Financial costs...................	824 993,68	3 462 818,91	5 049 270,32	1 261 612,90
-  I.   Interest......................	559 138,65	680 305,45	823 259,87	747 062,01
-  II.  Loss from financial assets sold..................................		1 582,35
-  III. Financial assets revaluation..		4 983,98	1 803 992,20	37 804,00
-  IV.  Other.........................	265 855,03	2 775 947,13	2 422 018,25	476 746,89
-I. Profit on economic activity.......	46 531 325,47	34 918 150,84	27 936 705,20	16 409 917,67
-K. Gross profit......................	46 531 325,47	34 918 150,84	27 936 705,20	16 409 917,67
-L. Corporation tax...................	9 326 477,00	5 865 755,00	5 490 148,00	3 777 557,00
-N. Net profit........................	37 204 848,47	29 052 395,84	22 446 557,20	12 632 360,67

AUDITOR

Balance sheet as at 31.12.2014
ESO Audit - Artyszuk Mackiewicz - S.C., ul. Podmurze 2, 80-835 Gdańsk	No. 3472

Expert auditor Jarosław  Artyszuk

No. 10321

Balance sheet as at 31.12.2013
ESO Audit - Artyszuk Mackiewicz - S.C., ul. Podmurze 2, 80-835 Gdańsk	No. 3472

Expert auditor Jarosław  Artyszuk

No. 10321

Ratios	01.01.2016- 31.12.2016	01.01.2015- 31.12.2015	01.01.2014- 31.12.2014	01.01.2013- 31.12.2013
Current ratio	1,95	1,72	1,80	1,56
Quick ratio	0,67	0,30	0,37	0,28
Immediate ratio	0,46	0,04	0,10	0,06
R turn on sale	9,32	9,00	8,59	6,00
Return on assets	18,99	17,84	17,42	12,30
Return on equity	35,98	34,75	32,95	24,16
Average trade debtors' days	14,61	18,99	19,95	17,57
Average stock turnover's days	88,84	105,29	104,19	102,20
average payables payment period	70,56	75,12	73,96	80,75
Total indebtedness ratio	47,21	48,67	47,13	49,08

While rating the company, it is advisable to take into consideration information about the branch, the company is acting in
(G.47.51.Z - NACE 2007), as at :	31.12.2009	31.12.2008	31.12.2007
Current ratio............................	1,12	0,80	1,55
Quick ratio..............................	0,29	0,28	0,39
Immediate ratio..........................	0,06	0,10	0,14
Return on sale...........................	-0,24	-5,48	2,90
Return on assets.........................	-0,41	-4,99	4,14
Return on equity.........................	-1,13	-22,89	6,81
Average trade debtors' days..............	27,45	52,85	23,57
Average stock turnover's days............	101,48	145,91	110,60
average payables payment period..........	122,56	290,52	95,71
Total indebtedness ratio.................	64,02	78,21	39,20
Percent share in the examinated group of companies with net profit.............	50,00	25,00	100,00
Sales/revenue per employee in th. PLN....	397,25	304,10	327,68
Average sales/revenue per company in th. PLN..................................	26 914,00	19 386,25	21 627,00
according to the Central Statistical Office

OTHER GENERAL INFORMATION

Locations:

seat: ul. Magnacka 15A, 80-180 Kowale Phone:                   58 7611545                          58 7622020 Mobile phone:            691 454 059 - Dorota Harasimowicz                          691 454 505 - Jacek Baczewski Fax:                     58 7622060 E-mail:                  biuro@bbk.com.pl                          dharasimowicz@bbk.com.pl                          jbaczewski@bbk.com.pl Website:                 www.bbk.com.pl                          www.home-you.com

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 1 628 221,70

Shares in other companies	LPP TEX Czech republic s.r.o., Praha, Czech Republic   · shareholder  HOME STUFF LTD, Moskwa, Russian Federation   · shareholder
	Data concerning shares in other companies are valid as at: 26.01.2018.

Connections:	Marek Leszek Piechocki , personal ID no. (PESEL) 61020502291 -  LPP SA NIP PL 5831014898, ul. Łąkowa 39/44, 80-769 Gdańsk   · president -  LPP RETAIL sp. z o.o. NIP 5832671977, ul. Łąkowa 39/44, 80-769 Gdańsk   · president -  FAMILY INVESTMENTS 3 sp. z o.o., ul. Bolesława Chrobrego 17C/3, 81-756 Sopot   · shareholder: PLN 5 000,00 (100,00%)   · member of supervisory board -  FAMILY INVESTMENTS sp. z o.o. NIP 9571079583, ul. Bolesława Chrobrego 17C/3, 81-756 Sopot   · shareholder: PLN 5 280 000,00 (100,00%)   · member of supervisory board -  FAMILY INVESTMENTS 2 sp. z o.o., ul. Bolesława Chrobrego 17C/3, 81-756 Sopot   · shareholder: PLN 5 000,00 (100,00%)   · member of supervisory board Wojciech Grzegorz Olejniczak , personal ID no. (PESEL) 56021903172 -  LPP SA NIP PL 9410356843, ul. Łąkowa 39/44, 80-769 Gdańsk   · member Wojciech Józef Pietrzyk , personal ID no. (PESEL) 52073002654 -  Projektowanie Maszyn W.Pietrzyk, P.Żabiński Sp.Jawna NIP PL 9570474774, ul. Starowiejska 65A, 80-534 Gdańsk   · shareholder   · member of representation unit Jerzy Ryszard Lubianiec , personal ID no. (PESEL) 60061501654 -  QUERCUS TOWARZYSTWO FUNDUSZY INWESTYCYJNYCH SA NIP 1080003520, ul. Nowy Świat 6/12, 00-400 Warszawa   · member of supervisory board -  LPP SA NIP PL 9410116418, ul. Łąkowa 39/44, 80-769 Gdańsk   · chairman
	Data concerning connections are valid as at: 26.01.2018.
Banks	Names of banks were not disclosed

Payment Manner	Regular	(27)
Credit capability	Business connections appear permissible	(32)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.91
UK Pound	1	INR 90.31
Euro	1	INR 80.17
PLN	1	INR 19.22

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

INFORMATION DETAILS

Analysis Done by :	NIY
Report Prepared by :	SYL

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.