3decades

MIRA INFORM REPORT

Report No. :	484581
Report Date :	12.01.2018

IDENTIFICATION DETAILS

Name :	ERGO INTERNATIONAL SP. Z O.O.

Registered Office :	Ul. Staszica 25, 05-500 Piaseczno

Country :	Poland

Financials (as on) :	31.12.2016

Date of Incorporation :	27.11.1991

Legal Form :	Limited Liability Company

Line of Business :	Import and Distribution of Porcelain, Ceramic and Glass (Brand Villa Italia)

No. of Employees :	55 [2016]

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

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.

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. However, since 2015 Warsaw’s prioritization of spending on social welfare programs has prompted investors to decrease Poland’s economic growth projections for the next few years.

The Polish economy performed well during the 2014-16 period, with the real GDP growth rate exceeding 3%, in part because of the government’s fiscal prudence. Poland’s economic growth in 2017 is projected by some credit rating agencies to slow, however, because of Poland’s government’s increase in social spending since 2015, including the provision of cash transfers for low income families, families with more than one child, and the reduction of the retirement age which will take effect in October 2017. The government has tried to introduce new taxes and boost tax compliance to offset the costs of the social spending programs and relieve upward pressure on the budget deficit. Some credit ratings agencies estimate that Poland will exceed the EU’s 3%-of-GDP limit on budget deficits, possibly impacting its access to future EU funds.

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

ERGO INTERNATIONAL SP. Z O.O.

Ul. Staszica 25
05-500 Piaseczno

Phone: 22 7167900

Fax: 22 7167999

E-mail: ergo@ergo.com.pl

Website: www.ergo.com.pl

Company summary

Legal form	Limited Liability Company	(5)
Stat.no.	012100643
Tax ID	PL 5340002236

Establishment	27.11.1991	(5)
Changes of names and addresses	Reguły, ul. Wiejska 38, 05-816 Michałowice
	then ul. Falencka 9, 05-090 Raszyn
	27.10.2005 ul. Staszica 25, 05-500 Piaseczno

Registration:	05.09.2001, District Court Warszawa, XIV Department, KRS 36616 Data concerning previous registrations: 1991, District Court Warszawa, RHB 30207

Shareholders	Pricket Holding N.V., Leidsekade 98, 1017 Amsterdam, Netherlands	PLN	746 800,00 100,00%

	list entered to NCR /KRS/ on 24.06.2003

Initial Capital		PLN 746 800,00
	Initial capital divided into 3734 shares of PLN 200,00 each
	An in-kind contribution has been made and valued at	PLN 16 000,00

Management	Joanna Monika Maciejewska-Banaszczyk , personal ID no. (PESEL) 68080403481 - member of board of directors
	Representation: since 05.09.2001 Each member of the board of directors or proxy individually.


Supervisory board	Bernd Georg Hofmann , Sesto San Giovanni Via Marelli 19, Italy Leszek Stefan Żynda , personal ID no. (PESEL) 51090211399 Marek Przybył , personal ID no. (PESEL) 70042802638, ul. Jagiellońska 20/2, 40-035 Katowice

Main activity	Import and distribution of porcelain, ceramic and glass (brand Villa Italia)
	Branches NACE 2007:
	Wholesale of china and glassware, wallpaper and cleaning materials	(G.46.44.Z)
	Other wholesale	(G.46.90.Z)
	Agents involved in the sale of furniture, household goods, hardware and ironmongery	(G.46.15.Z)
	Other advertising activity	(M.73.20.Z)


Employment	2007: 25 employees 2011: 45 employees 2016: 55 employees

Turnover	2012	PLN	10 139 907,09
	2013	PLN	10 236 214,33
	2014	PLN	11 798 423,21
	2015	PLN	10 581 053,52
	2016	PLN	9 103 624,35

Financial statements

Source of financial data	Court	Court	Court	Court
	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......................	3 856 167,67	4 196 494,59	4 567 103,51	4 574 093,28
- I. Intangible assets.............				1 366,15
- 3. Other intangible assets.......				1 366,15
- II. Tangible assets...............	3 781 167,67	4 121 494,59	4 470 703,51	4 476 327,13
- 1. Fixed goods...................	3 768 667,67	4 108 994,59	4 458 203,51	4 476 327,13
- a) land........................	492 352,12	492 352,12	492 352,12	492 352,12
- b) buildings, premises, facilities............................	3 176 675,65	3 449 754,19	3 726 266,78	3 791 049,16
- c) machinery and equipment.....	2 693,46	3 727,50	4 761,54	5 795,58
- e) other fixed goods...........	96 946,44	163 160,78	234 823,07	187 130,27
- 2. Fixed goods under construction..........................	12 500,00
- 3. Prepayments for fixed goods under construction....................		12 500,00	12 500,00
- IV. Long term investments.........	75 000,00	75 000,00	96 400,00	96 400,00
- 3. Long term financial assets....	75 000,00	75 000,00	96 400,00	96 400,00
- a) in affiliated companies.....	75 000,00	75 000,00	75 000,00	75 000,00
- - participations or shares...	75 000,00	75 000,00	75 000,00	75 000,00
- b) Other.......................			21 400,00	21 400,00
- - participations or shares...			21 400,00	21 400,00
-B. Current assets....................	4 931 335,07	4 966 509,59	5 126 112,81	4 942 728,79
- I. Stock.........................	2 761 602,86	2 688 518,07	2 767 463,20	2 317 217,75
- 4. Goods for re-sale.............	2 644 415,29	2 561 576,28	2 659 314,08	2 112 132,95
- 5. Advance payments .............	117 187,57	126 941,79	108 149,12	205 084,80
- II. Short-term receivables.........	848 263,40	856 790,57	938 535,46	1 261 501,48
- 2. Other receivables ............	848 263,40	856 790,57	938 535,46	1 261 501,48
- a) Due to deliveries and services with payment period:.........	464 182,28	370 813,37	603 636,35	900 216,11
- - up to 12 months............	464 182,28	370 813,37	603 636,35	900 216,11
- b) Due to taxes, subsidies, insurances, duties, etc...............	102 855,93	64 218,11	42 191,62	91 564,39
- c) Other.......................	274 208,98	414 655,16	287 103,56	269 720,98
- d) Received through judicial proceedings...........................	7 016,21	7 103,93	5 603,93
- III. Short term investments........	1 213 673,20	1 288 118,44	1 288 047,06	1 254 967,26
- 1. Short-term financial assets...	1 213 673,20	1 288 118,44	1 288 047,06	1 254 967,26
- c) cash and other liquid assets................................	1 213 673,20	1 288 118,44	1 288 047,06	1 254 967,26
- - cash in hand and on bank account...............................	1 213 673,20	1 288 118,44	1 288 047,06	1 254 967,26
-IV. Short-term prepayments and accrued income........................	107 795,61	133 082,51	132 067,09	109 042,30
-D. Total assets......................	8 787 502,74	9 163 004,18	9 693 216,32	9 516 822,07
-A. Shareholders' equity..............	6 962 247,56	7 602 310,20	7 894 088,75	7 601 352,22
- I. Basic share capital...........	746 800,00	746 800,00	746 800,00	746 800,00
- IV. Statutory reserve capital.....	7 142 162,15	7 142 162,15	6 849 425,62	6 797 707,66
- VI. Other reserve capital.........	5 126,60	5 126,60	5 126,60	5 126,60
- VII. Profit (loss) carried forward.	-291 778,55			3,00
- VIII. Net profit (loss)............	-640 062,64	-291 778,55	292 736,53	51 714,96
-B. Liabilities and reserves for liabilities...........................	1 825 255,18	1 560 693,98	1 799 127,57	1 915 469,85
- I. Reserves for liabilities......				21 365,94
- 3. Other reserves................				21 365,94
- - short-term...................				21 365,94
-II. Long-term liabilities...........	42 722,00	349 418,00	656 114,00	1 031 276,58
- 2. Other liabilities...............	42 722,00	349 418,00	656 114,00	1 031 276,58
- a) Loans.........................	42 722,00	349 418,00	656 114,00	1 031 276,58
-III. Short-term liabilities..........	1 782 533,18	1 211 275,98	1 143 013,57	859 410,61
- 2. Other liabilities...............	1 690 842,31	1 141 307,25	1 082 244,22	810 995,27
- a) Loans.........................			18,17
- d)Due to deliveries and services with payment period:.........	1 341 137,11	713 125,22	598 090,57	430 099,71
- - up to 12 months..............	1 341 137,11	713 125,22	598 090,57	430 099,71
- g) Due to taxes, subsidies, insurances, duties, etc...............	344 715,71	421 932,03	481 136,21	379 450,86
- h) Due to salaries...............	413,29		437,02	444,80
- i) Other.........................	4 576,20	6 250,00	2 562,25	999,90
- 3. Special funds...................	91 690,87	69 968,73	60 769,35	48 415,34
-IV. Accruals and deferred income....				3 416,72
- 2. Other accruals..................				3 416,72
- - short-term.....................				3 416,72
-D. Total liabilities.................	8 787 502,74	9 163 004,18	9 693 216,32	9 516 822,07

Source of financial data	Court	Court	Court	Court
	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.....	9 103 624,35	10 581 053,52	11 798 423,21	10 236 214,33
- - including related companies......	89 424,48	61 399,66
- IV. Income from sales of goods and materials.........................	9 103 624,35	10 581 053,52	11 798 423,21	10 236 214,33
-B. Operational costs.................	9 724 195,13	10 760 105,94	11 274 942,15	10 134 580,10
- I. Depreciation..................	350 740,61	420 154,18	431 344,49	372 890,49
- II. Materials and energy..........	286 604,13	304 319,11	347 277,58	331 921,01
- III. Third party services..........	2 592 976,37	2 880 463,13	2 988 492,81	2 509 784,52
- IV. Taxes and duties..............	111 250,89	130 807,08	131 061,07	127 157,35
- V. Salaries and wages............	1 698 067,02	1 851 413,75	1 727 557,28	1 627 560,71
- VI. Social security...............	394 349,99	420 160,40	395 616,52	355 782,02
- VII. Other.........................	279 770,73	295 941,89	365 050,76	457 252,17
- VIII.Costs of goods and materials sold..................................	4 010 435,39	4 456 846,40	4 888 541,64	4 352 231,83
-C. Profit on sale....................			523 481,06	101 634,23
-C. Loss on sale......................	620 570,78	179 052,42
-D. Other operating incomes...........	7 185,80	60 214,05	67 479,40	87 838,04
- I. Incomes from disposal non-financial assets..................	121,95	49 967,48	24 797,00
- III. Other operating incomes.......	7 063,85	10 246,57	42 682,40	87 838,04
-E. Other operating costs.............	20 327,15	111 152,89	121 351,82	50 662,47
- III. Other operating costs.........	20 327,15	111 152,89	121 351,82	50 662,47
-F. Profit on operating activities....			469 608,64	138 809,80
-F. Loss on operating activities......	633 712,13	229 991,26
-G. Financial incomes.................	66 714,25	6 260,66	10 695,73	41 919,20
- II. Interest received.............	3 838,67	6 260,66	10 695,73	12 035,15
- V. Other.........................	62 875,58			29 884,05
-H. Financial costs...................	73 064,76	68 047,95	92 979,84	104 152,04
- I. Interest......................	10 745,54	20 487,79	41 192,86	64 555,78
- IV. Other.........................	62 319,22	47 560,16	51 786,98	39 596,26
-I. Profit on economic activity.......			387 324,53	76 576,96
-I. Loss on economic activity.........	640 062,64	291 778,55
-K. Gross profit......................			387 324,53	76 576,96
-K. Gross loss........................	640 062,64	291 778,55
-L. Corporation tax...................			94 588,00	24 862,00
-N. Net profit........................			292 736,53	51 714,96
-N. Net loss..........................	640 062,64	291 778,55


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	2,77	4,10	4,48	5,75
Quick ratio	1,16	1,77	1,95	2,93
Immediate ratio	0,68	1,06	1,13	1,46
Return on sale	-7,03	-2,76	2,48	0,51
Return on assets	-7,28	-3,18	3,02	0,54
Return on equity	-9,19	-3,84	3,71	0,68
Average trade debtors' days	34,10	29,56	29,03	44,98
Average stock turnover's days	111,03	92,74	85,62	82,63
average payables payment period	71,66	41,78	35,36	30,64
Total indebtedness ratio	20,77	17,03	18,56	20,13

While rating the company, it is advisable to take into consideration information about the branch, the company is acting in
(G.46.44.Z - NACE 2007), as at :	30.09.2017	31.12.2016	31.12.2015	31.12.2014	31.12.2013
Current ratio............................	2,15	1,48	1,27	1,48	0,99
Quick ratio..............................	1,57	1,12	0,97	1,24	0,84
Immediate ratio..........................	0,21	0,11	0,10	0,05	0,06
Return on sale...........................	7,25	2,17	-12,44	20,81	2,79
Return on assets.........................	3,53	1,42	-6,85	12,74	1,74
Return on equity.........................	6,93	2,96	-11,36	23,40	4,09
Average trade debtors' days..............	89,99	92,29	80,89	74,95	98,03
Average stock turnover's days............	52,11	46,28	41,70	39,72	37,47
average payables payment period..........	92,41	131,96	142,31	173,73	277,04
Total indebtedness ratio.................	49,05	51,87	39,68	45,55	57,53
Percent share in the examinated group of companies with net profit.............	10,00	91,70	92,30	100,00	100,00
Sales/revenue per employee in th. PLN....	637,17	870,81	837,38	851,53	865,82
Average sales/revenue per company in th. PLN..................................	145 009,50	194 771,08	174 561,15	146 782,63	138 480,18

(G.46.90.Z - NACE 2007), as at :	30.09.2017	31.12.2016	31.12.2015	31.12.2014	31.12.2013
Current ratio............................	1,52	1,56	1,51	1,41	1,27
Quick ratio..............................	1,03	1,05	1,02	0,93	0,84
Immediate ratio..........................	0,19	0,19	0,17	0,14	0,12
Return on sale...........................	2,05	2,42	2,74	2,39	2,18
Return on assets.........................	3,25	5,27	6,07	5,39	4,73
Return on equity.........................	7,29	11,44	12,87	12,28	11,24
Average trade debtors' days..............	56,61	55,02	51,33	52,34	52,56
Average stock turnover's days............	36,07	35,58	32,95	34,13	32,82
average payables payment period..........	76,17	72,15	69,40	73,12	78,91
Total indebtedness ratio.................	55,41	53,93	52,87	56,15	57,91
Percent share in the examinated group of companies with net profit.............	326,00	88,70	90,10	85,80	86,80
Sales/revenue per employee in th. PLN....	955,51	1 273,54	1 333,61	1 348,43	1 326,46
Average sales/revenue per company in th. PLN..................................	181 470,13	237 685,23	255 518,92	249 661,96	227 937,24

According to the Central Statistical Office

Locations:	seat: ul. Staszica 25, 05-500 Piaseczno Phone: 22 7167900 Mobile phone: 646 243 133 Fax: 22 7167999 E-mail: ergo@ergo.com.pl Website: www.ergo.com.pl

Real Estate	Book value of buildings as at 31.12.2016	PLN	3 176 675,65
	Book value of lands as at 31.12.2016	PLN	492 352,12
	Verification of information on real estate ownership position through the Real Estate Register is not covered by the standard report.

Shares in other companies	MULTIPLICA POLSKA sp. z o.o. NIP 9512023256, ul. Puławska 303, 02-785 Warszawa PLN 5 000,00 (10,00%)
	Data concerning shares in other companies are valid as at: 19.12.2017.

Connections:	Joanna Monika Maciejewska-Banaszczyk , personal ID no. (PESEL) 68080403481 - PORCELANA ŚLĄSKA Sp. z o.o. NIP PL 9410282090, ul. Porcelanowa 23, 40-241 Katowice (! the company was crossed off from the register) (! Court proceeding) · member of supervisory board - BGH NETWORK SPÓŁKA AKCYJNA NIP 9542382020, 40-241 Katowice · member of supervisory board - MULTIPLICA POLSKA sp. z o.o. NIP 9512023256, ul. Puławska 303, 02-785 Warszawa · member of supervisory board Leszek Stefan Żynda , personal ID no. (PESEL) 51090211399 - BGH NETWORK SPÓŁKA AKCYJNA NIP 9542382020, 40-241 Katowice · vice president - PORCELANA ŚLĄSKA Sp. z o.o. NIP PL 9540009340, ul. Porcelanowa 23, 40-241 Katowice (! the company was crossed off from the register) (! Court proceeding) · vice president Marek Przybył , personal ID no. (PESEL) 70042802638 - PORCELANA ŚLĄSKA Sp. z o.o. NIP PL 9540009340, ul. Porcelanowa 23, 40-241 Katowice (! the company was crossed off from the register) (! Court proceeding) · president - MULTIPLICA POLSKA sp. z o.o. NIP 9512023256, ul. Puławska 303, 02-785 Warszawa · member of supervisory board - BGH NETWORK SPÓŁKA AKCYJNA NIP 9542382020, 40-241 Katowice · president Bernd Georg Hofmann Connections have not been determined due to no possibility of identification of the persons or subjects which appear in the company.
	Data concerning connections are valid as at: 19.12.2017.

Banks	Names of banks were not disclosed

Payment Manner	Slow but correct	(34)
Credit capability	Business connections should not be refused, credits require security	(41)
	Due to: - Losses - Fall in sales

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.74
UK Pound	1	INR 86.01
Euro	1	INR 76.14
PLN	1	INR 18.37

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

INFORMATION DETAILS

Analysis Done by :	NIY

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)

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.

MIRA INFORM REPORT

Company name & address

Company summary

Financial statements

Unit