MIRA INFORM REPORT

Report No. :	486244
Report Date :	18.01.2018

IDENTIFICATION DETAILS

Name :	EUROCAST SP. Z O.O.
Registered Office :	Ul. Wejherowska 9, 84-220 Strzebielino
Country :	Poland
Financials (as on) :	31.12.2016
Date of Incorporation :	17.05.2002
Legal Form :	Limited Liability Company
Line of Business :	Manufacture and Sale of Foil
No. of Employees :	155 [2013]

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. 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

EUROCAST SP. Z O.O.

Ul. Wejherowska 9
84-220 Strzebielino

Phone:    58 6765100

Fax:      58 6765110

E-mail:   recepcja@eurocast.com.pl

Website:  www.eurocast.com.pl

Company summary

Legal form	Limited liability company	(5)
Stat.no.	192775806
Tax ID	PL 5882024234

Establishment	17.05.2002	(5)
Changes of names and addresses	VERBANO FILM POLSKA Sp. z o.o. ul. Wejherowska 7A, 84-220 Strzebielino
	18.04.2005 EUROCAST Sp. z o.o.  ul. Wejherowska 9, 84-220 Strzebielino

Registration:

11.07.2002, District Court Gdańsk, VIII Department, KRS 122686

Shareholders	Davide Jack Malki , Milano  Via Aicardi 9, Italy	PLN	40 285 500,00 50,00%
	Elia Malki , Milano  Via Aicardi 9, Italy	PLN	40 285 000,00 50,00%
	list entered to NCR /KRS/ on  03.07.2015

Initial Capital		PLN 80 570 500,00
	Initial capital divided into 161141 shares of PLN 500,00 each
	Changes of initial capital
	- since 24.07.2009  until 09.09.2010  the capital estimated	PLN 66 544 500,00
	- since 28.02.2008  until 24.07.2009  the capital estimated	PLN 55 532 000,00
	An in-kind contribution has been made and valued at	PLN  52 228 000,00

Management	Krzysztof Wiśniewski , personal ID no. (PESEL) 70102602411  - president Robert Grzegorz Rosicki , personal ID no. (PESEL) 76042404597  - member of board of directors
	Representation: Each member of the board of directors individually

Main activity	Manufacture and Sale of Foil
	Branches NACE 2007:
	Manufacture of plastics in primary forms	(C.20.16.Z)
	Manufacture of plastic plates, sheets, tubes and profiles	(C.22.21.Z)
	Agents involved in the sale of fuels, ores, metals and industrial chemicals	(G.46.12.Z)
	Cargo handling and storage	(H.52.10)
	Other advertising activity	(M.73.20.Z)

Employment

2008:              187       employees 2009:              175       employees 2010:              170       employees 2011:              160       employees 2013:              155       employees

Turnover	2012	PLN	115 017 715,32
	2013	PLN	129 723 416,99
	2014	PLN	148 575 234,37
	2015	PLN	161 541 010,00
	2016	PLN	172 737 136,66

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......................	88 212 616,84	87 602 380,00	81 309 948,57	88 281 791,29
-  I.   Intangible assets.............	321 727,70	2 229 790,00	4 383 904,58	6 539 568,40
-    1. Costs of finished development works.....................	191 093,09	275 770,00	419 646,46	563 525,25
-    2. Goodwill......................		1 785 060,00	3 732 391,29	5 679 725,88
-    3. Other intangible assets.......	130 634,61	168 970,00	231 866,83	296 317,27
-  II.  Tangible assets...............	87 131 735,54	84 223 830,00	74 893 176,24	79 143 781,97
-    1. Fixed goods...................	76 871 957,99	83 954 780,00	74 464 140,10	54 730 574,20
-      a) land........................	1 509 395,96	1 509 400,00	1 509 395,96	1 483 536,31
-      b) buildings, premises, facilities............................	22 021 420,39	22 825 720,00	23 395 513,99	22 501 724,47
-      c) machinery and equipment.....	51 914 147,34	58 465 770,00	48 741 500,07	29 859 909,34
-      d) fleet of motor vehicles.....	704 114,04	851 590,00	507 350,41	718 787,92
-      e) other fixed goods...........	722 880,26	302 310,00	310 379,67	166 616,16
-    2. Fixed goods under construction..........................	10 259 777,55	269 050,00	429 036,14	24 413 207,77
-  III. Long term receivables.........				321 227,76
-    1. From affiliated companies.....				321 227,76
-  IV.  Long term investments.........				65 176,46
-    3. Long term financial assets....				65 176,46
-      a) in affiliated companies.....				65 176,46
-        - other long-term financial assets................................				65 176,46
-V. Long-term prepayments and accrued income........................	759 153,60	1 148 750,00	2 032 867,75	2 212 036,70
-  1. Deferred tax assets.............	719 855,00	1 051 110,00	1 851 652,00	2 166 615,00
-  2. Other prepayments...............	39 298,60	97 650,00	181 215,75	45 421,70
-B. Current assets....................	39 484 602,17	33 538 960,00	28 611 386,10	24 480 514,95
-  I.   Stock.........................	15 398 423,50	14 759 830,00	12 556 102,20	11 449 687,79
-    1. Raw materials.................	10 151 024,76	8 695 950,00	5 801 090,26	5 926 621,66
-    2. Semi-finished products and work-in-progress......................	614 689,46	576 700,00	577 080,83	523 334,92
-    3. Finished products.............	4 632 709,28	5 480 480,00	6 177 931,11	4 999 731,21
-    4. Goods for re-sale.............		6 690,00
-  II. Short-term receivables.........	18 451 028,79	15 620 340,00	15 701 000,89	12 384 577,31
-    1. Receivables from affiliated companies.............................				28 555,46
-      b) Other.......................				28 555,46
-    2. Other receivables ............	18 451 028,79	15 620 340,00	15 701 000,89	12 356 021,85
-      a) Due to deliveries and services with payment period:.........	16 090 475,83	13 363 200,00	12 273 032,21	10 609 992,69
-        - up to 12 months............	16 090 475,83	13 363 200,00	12 273 032,21	10 609 992,69
-      b) Due to taxes, subsidies, insurances, duties, etc...............	2 360 552,96			119 524,30
-      c) Other.......................		2 257 150,00	3 427 968,68	1 626 504,86
-  III. Short term investments........	5 006 125,22	2 401 200,00	107 357,98	430 237,92
-    1. Short-term financial assets...	5 006 125,22	2 401 200,00	107 357,98	430 237,92
-      a) in affiliated companies.....				176 968,98
-        - other short-term financial assets......................				176 968,98
-      c) cash and other liquid assets................................	5 006 125,22	2 401 200,00	107 357,98	253 268,94
-        - cash in hand and on bank account...............................	5 006 125,22	2 401 200,00	107 357,98	253 268,94
-IV. Short-term prepayments and accrued income........................	629 024,66	757 590,00	246 925,03	216 011,93
-D. Total assets......................	127 697 219,01	121 141 340,00	109 921 334,67	112 762 306,24
-A. Shareholders' equity..............	53 219 618,85	46 137 870,00	42 405 419,40	44 824 528,24
-  I.   Basic share capital...........	80 570 500,00	80 570 500,00	80 570 500,00	80 570 500,00
-  IV.  Statutory reserve capital.....	12 716 418,78	12 716 420,00	12 716 418,78	12 716 418,78
-  VII. Profit (loss) carried forward.	-47 149 044,17	-50 881 500,00	-48 462 390,54	-50 183 628,96
-  VIII. Net profit (loss)............	7 081 744,24	3 732 460,00	-2 419 108,84	1 721 238,42
-B. Liabilities and reserves for liabilities...........................	74 477 600,16	75 003 470,00	67 515 915,27	67 937 778,00
-  I.   Reserves for liabilities......	3 411 368,76	3 529 800,00	2 377 213,96	1 784 217,23
-    1. Deferred income tax reserves..	1 584 812,00	1 709 560,00	1 848 070,00	1 335 599,00
-    2. Reserves for pensions and similar social payments...............	157 100,00	92 100,00	66 400,00	58 550,00
-      - long-term....................	157 100,00	92 400,00	66 400,00	58 550,00
-    3. Other reserves................	1 669 456,76	1 728 140,00	462 743,96	390 068,23
-      - short-term...................	1 669 456,76	1 728 140,00	462 743,96	390 068,23
-II.  Long-term liabilities...........	19 557 347,28	19 544 540,00	18 654 981,15	18 326 473,73
-  2. Other liabilities...............	19 557 347,28	19 544 540,00	18 654 981,15	18 326 473,73
-    a) Loans.........................	18 817 281,98	19 168 450,00	18 336 550,53	17 914 533,53
-    c) Other financial liabilities...	740 065,30	376 090,00	318 430,62	411 940,20
-III. Short-term liabilities..........	35 821 811,32	35 313 360,00	33 445 943,91	35 644 654,50
-  1. Due to affiliated companies.....				99 087,89
-    b) Other.........................				99 087,89
-  2. Other liabilities...............	35 821 811,32	35 313 360,00	33 445 943,91	35 545 566,61
-    a) Loans.........................	4 607 270,53	5 956 530,00	5 673 000,35	9 079 606,04
-    c) Other financial liabilities...	561 161,61	299 980,00	334 677,03	267 272,66
-    d)Due to deliveries and services with payment period:.........	27 331 522,33	26 609 430,00	25 056 399,24	22 925 090,00
-      - up to 12 months..............	27 331 522,33	26 609 430,00	25 056 399,24	22 925 090,00
-    g) Due to taxes, subsidies, insurances, duties, etc...............	1 744 962,44	1 418 490,00	1 462 348,57	649 605,08
-    h) Due to salaries...............	725 834,61	650 340,00	519 910,74	443 595,11
-    i) Other.........................	851 059,80	378 580,00	399 607,98	2 180 397,72
-IV.  Accruals and deferred income....	15 687 072,80	16 615 770,00	13 037 776,25	12 182 432,54
-  2. Other accruals..................	15 687 072,80	16 615 770,00	13 037 776,25	12 182 432,54
-    - long-term......................	14 323 546,34	15 229 500,00	12 108 324,29	10 444 275,12
-    - short-term.....................	1 363 526,46	1 386 260,00	929 451,96	1 738 157,42
-D. Total liabilities.................	127 697 219,01	121 141 340,00	109 921 334,67	112 762 306,24
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.....	172 737 136,66	161 541 010,00	148 575 234,37	129 723 416,99
-  I.   Net income on sales...........	172 074 427,93	161 219 960,00	141 739 550,24	126 592 649,82
-  II.  Change in value of stock ( +, -).................................	-464 225,26	-1 346 740,00	2 884 515,98	2 387 149,67
-  III. Sales of goods for own use....		917 230,00	385 520,47	460 453,93
-  IV.  Income from sales of goods and materials.........................	1 110 092,79	750 560,00	3 565 647,68	283 163,57
-  V. Net income from sale of services..............................	16 841,20
-B. Operational costs.................	161 962 729,40	153 047 540,00	146 747 356,64	124 462 619,51
-  I.   Depreciation..................	7 841 681,54	5 953 430,00	5 784 653,50	6 161 613,48
-  II.  Materials and energy..........	123 994 388,05	120 840 000,00	116 870 675,40	98 774 749,02
-  III. Third party services..........	12 269 209,26	10 833 540,00	9 119 342,22	8 959 391,85
-  IV.  Taxes and duties..............	653 046,49	622 060,00	550 192,12	541 145,61
-  V.   Salaries and wages............	13 272 644,07	10 440 010,00	8 278 659,19	7 458 587,87
-  VI.  Social security...............	3 011 630,29	2 629 940,00	2 052 765,04	1 741 790,65
-  VII. Other.........................	901 041,85	972 360,00	583 501,56	579 684,51
-  VIII.Costs of goods and materials sold..................................	19 087,85	756 200,00	3 507 567,61	245 656,52
-C. Profit on sale....................	10 774 407,26	8 493 470,00	1 827 877,73	5 260 797,48
-D. Other operating incomes...........	3 083 422,98	1 617 910,00	1 275 354,24	480 985,61
-  I.   Incomes from disposal non-financial assets..................	115 799,08	281 660,00	59 541,05
-  II.  Subsidies.....................	2 561 745,40	878 540,00	902 871,02	311 547,61
-  III. Other operating incomes.......	293 457,07	457 710,00	312 942,17	169 438,00
-  ...................................	112 421,43
-E. Other operating costs.............	3 163 268,57	3 390 310,00	2 320 271,47	2 247 725,81
-  I.   Loss on disposal of non-finacial assets...................				5 056,79
-  II.  Goodwill revaluation..........	1 250 801,92	1 393 290,00	269 144,66	162 094,30
-  III. Other operating costs.........	1 912 466,65	1 997 020,00	2 051 126,81	2 080 574,72
-F. Profit on operating activities....	10 694 561,67	6 721 070,00	782 960,50	3 494 057,28
-G. Financial incomes.................	5 481,51	3 300,00	21 423,14
-  II.  Interest received.............	4 054,13	3 300,00	21 215,14
-  V.   Other.........................	1 427,38		208,00
-H. Financial costs...................	1 498 130,94	1 408 850,00	2 396 058,48	1 801 189,51
-  I.   Interest......................	1 195 074,41	1 319 530,00	1 806 103,93	1 183 427,04
-  IV.  Other.........................	303 056,53	89 320,00	589 954,55	617 762,47
-I. Profit on economic activity.......	9 201 912,24	5 315 520,00		1 692 867,77
-I. Loss on economic activity.........			1 591 674,84
-J. Exceptional items.................				41 701,65
-  I.   Exceptional gains.............				47 040,65
-  II.  Exceptional losses............				5 339,00
-K. Gross profit......................	9 201 912,24	5 315 520,00		1 734 569,42
-K. Gross loss........................			1 591 674,84
-L. Corporation tax...................	2 120 168,00	1 583 060,00	827 434,00	13 331,00
-  a) current part....................	1 913 660,00		827 434,00	-17 002,00
-  b) deferred part...................	206 508,00			30 333,00
-N. Net profit........................	7 081 744,24	3 732 460,00		1 721 238,42
-N. Net loss..........................			2 419 108,84

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	1,10	0,95	0,86	0,69
Quick ratio	0,65	0,51	0,47	0,36
Immediate ratio	0,14	0,07		0,01
Return on sale	4,10	2,31	-1,63	1,33
Return on assets	5,55	3,08	-2,20	1,53
Return on equity	13,31	8,09	-5,70	3,84
Average trade debtors' days	39,09	35,29	38,57	34,85
Average stock turnover's days	32,63	33,35	30,85	32,22
average payables payment period	75,90	79,79	82,17	100,29
Total indebtedness ratio	58,32	61,91	61,42	60,25

While rating the company, it is advisable to take into consideration information about the branch, the company is acting in
(C.20.16.Z - NACE 2007), as at :	30.09.2017	31.12.2016	31.12.2015	31.12.2014	31.12.2013
Current ratio............................	1,66	1,67	1,75	1,73	2,19
Quick ratio..............................	1,15	1,21	1,26	1,20	1,70
Immediate ratio..........................	0,19	0,34	0,31	0,18	0,27
Return on sale...........................	10,67	14,07	8,51	2,50	5,32
Return on assets.........................	11,65	19,38	12,77	3,93	7,99
Return on equity.........................	20,93	33,66	23,28	7,11	13,43
Average trade debtors' days..............	58,03	51,37	51,05	59,30	52,56
Average stock turnover's days............	34,31	32,65	30,55	35,12	31,49
average payables payment period..........	70,95	75,00	65,93	69,01	65,53
Total indebtedness ratio.................	44,33	42,42	45,13	44,76	40,50
Percent share in the examinated group of companies with net profit.............	24,00	81,20	76,00	68,20	76,00
Sales/revenue per employee in th. PLN....	1 199,53	1 496,25	1 664,90	1 612,30	1 832,68
Average sales/revenue per company in th. PLN..................................	292 730,15	318 559,97	414 094,48	390 836,68	375 918,36
According to the Central Statistical Office

Locations:

seat: ul. Wejherowska 9, 84-220 Strzebielino Phone:                   58 6765100 Fax:                     58 6765110 E-mail:                  recepcja@eurocast.com.pl Website:                 www.eurocast.com.pl

Real Estate
	Book value of buildings as at 31.12.2016	PLN	22 021 420,39
	Book value of lands as at 31.12.2016	PLN	1 509 395,96
	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 704 114,04

Shares in other companies

As at 27.12.2017 there are no shares in other companies.

Connections:	Elia Malki  Davide Jack Malki  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: 27.12.2017.

Acquisitions

02.11.2007 (Entry date) - merger EUROCAST Sp. z o.o., ul. Wejherowska 9, 84-220 Strzebielino (as taking over)  EUROPLASTIK Sp. z o.o. KRS 44194, ul. Wejherowska 9, 84-220 Strzebielino (as taken over)

General information

Despite our hard efforts, we could not achieve more information from available sources. The subject has not decided to cooperate in elaboration of the report.

Banks

Bank Polska Kasa Opieki SA Oddział w Sopocie ul.Reja 13/15  (12401242) ul. Reja 13/15, 81-874 Sopot Acc.no. 78124012421111001001591788  Bank Zachodni WBK SA 1 Oddział w Gdyni  (10901102) ul. 10 Lutego 11, 81-366 Gdynia Acc.no. 45109011020000000104967067  MBANK SA Oddział Korporacyjny Gdynia  (11401153) ul. Zygmuntowska 4, 81-371 Gdynia Acc.no. 62114011530000293346001001

Payment Manner	In available sources, payment delays have not been noted
Credit capability	Business connections appear permissible

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.97
UK Pound	1	INR 88.13
Euro	1	INR 78.35
PLN	1	INR 18.70

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.