MIRA INFORM REPORT

Report No. :	508019
Report Date :	11.05.2018

IDENTIFICATION DETAILS

Name :	DAFO BRAND AKTIEBOLAG
Registered Office :	Box 683, 135 26 Tyreso
Country :	Sweden
Financials (as on) :	30.6.2017
Date of Incorporation :	01.07.1961
Com. Reg. No.:	556079-0957
Legal Form :	Private limited liability company - AB
Line of Business :	subject is engaged in the supply of products and services in the area of fire prevention, fire safety, fire safety, fire extinguishers and rescue equipment
No. of Employees :	160

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 :	Satisfactory
Payment Behaviour :	No Complaints
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)
Sweden	A1	A1

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

SWEDEN - ECONOMIC OVERVIEW

Sweden’s small, open, and competitive economy has been thriving and Sweden has achieved an enviable standard of living with its combination of free-market capitalism and extensive welfare benefits. Sweden remains outside the euro zone largely out of concern that joining the European Economic and Monetary Union would diminish the country’s sovereignty over its welfare system.

Timber, hydropower, and iron ore constitute the resource base of a manufacturing economy that relies heavily on foreign trade. Exports, including engines and other machines, motor vehicles, and telecommunications equipment, account for more than 44% of GDP. Sweden enjoys a current account surplus of about 5% of GDP, which is one of the highest margins in Europe.

GDP grew an estimated 3.3% in 2016 and 2017 driven largely by investment in the construction sector. Economic growth is expected to ease slightly in the coming years as this investment subsides. Global economic growth boosted exports of Swedish manufactures further, helping drive domestic economic growth in 2017. The central bank is keeping an eye on deflationary pressures and is expected to maintain its expansionary monetary policy in 2018. Swedish prices and wages have grown only slightly over the past few years, helping to support the country’s competitiveness.

In the short and medium term Sweden’s economic challenges include keeping rising house prices in check and successfully integrating migrants into the labor market.

Source : CIA

Company name and address

Company name	Dafo Brand Aktiebolag
Operative address	Box 683 135 26 Tyreso Sweden
Status	Active

Legal form	Private limited liability company - AB
Registration number	Trade register number: 556079-0957
VAT-number	SE556079095701
Year	2017	Mutation	2016	Mutation	2015
Fixed assets	2.521.104	68,59	1.495.413	9,97	1.359.843
Total receivables	6.683.419	0,53	6.647.917	5,02	6.330.306
Total equity	4.176.216	-6,20	4.452.282	-8,21	4.850.334
Short term liabilities	11.060.366	7,44	10.294.504	17,42	8.767.193
Net result	-134.961	45,58	-247.980	-183,13	298.317
Working capital	2.023.584	-44,30	3.633.217	-17,85	4.422.772
Quick ratio	0,72	-7,69	0,78	-7,14	0,84

Contact information

Company name	Dafo Brand Aktiebolag
Operative address	Box 683 135 26 Tyreso Sweden
Correspondence address	Box 683 135 26 Tyreso Sweden

Telephone number	+46 8 50640500
Website	www.dafo.se

Registration

Registration number	Trade register number: 556079-0957
VAT-number	SE556079095701
Status	Active
Establishment date	1961-07-01

Legal form	Private limited liability company - AB
Subscribed share capital	SEK 1.500.000

Activities

NACE	2829: Manufacture of other general-purpose machinery n.e.c.
Goal	Engaged in the supply of products and services in the area of fire prevention, fire safety, fire safety, fire extinguishers and rescue equipment

Relations

Shareholders

ULTIMATE GLOBAL SHAREHOLDER Name: ABRANDO AKTIEBOLAG National id number: 556416-2484 Address: Box 683 City: TYRESÖ Country: SE Type: Corporate Share direct: 100.00% Share total: 100.00% Turnover: 40.53629644 mil. SEK Total assets: 18.33158931 mil. SEK Profit loss before tax: -1.44099923 mil. SEK Profit loss after tax net income: -1.3469999 mil. SEK Shareholders funds: 52.45500396 mil. SEK SHAREHOLDERS Name: ABRANDO AKTIEBOLAG National id number: 556416-2484 Address: Box 683 City: TYRESÖ Country: SE Type: Corporate Share direct: 100.00% Turnover: 40.53629644 mil. SEK Total assets: 18.33158931 mil. SEK Profit loss before tax: -1.44099923 mil. SEK Profit loss after tax net income: -1.3469999 mil. SEK Shareholders funds: 52.45500396 mil. SEK Number of employees: 172

Structure

SUBSIDIARIES Name: DAFO UC INC Country: US Type: Corporate Share direct: 100.00% Name: DAFO OY National id number: 2251556-6 Address: Puutarhatie 22 C City: VANTAA Country: FI Type: Corporate Phone: +358 10 6665120 Fax: +358 10 6665139 Website: www.dafo.fi Share direct: 70.00% Turnover: 3.5927111 mil. SEK Total assets: 1.62986406 mil. SEK Profit loss before tax: 1.1085805 mil. SEK Profit loss after tax net income: 1.1085805 mil. SEK Shareholders funds: -7.60581947 mil. SEK Number of employees: 11 Name: DAFO FOMTEC AKTIEBOLAG National id number: 556611-5670 Address: Box 683 City: TYRESÖ Country: SE Type: Corporate Phone: +46 42 200771 Website: www.fomtec.com Share direct: 40.00% Turnover: 9.09569298 mil. SEK Total assets: 6.32667662 mil. SEK Profit loss before tax: 9.97500293 mil. SEK Profit loss after tax net income: 7.75199654 mil. SEK Shareholders funds: 46.98599668 mil. SEK Number of employees: 16

Management

Management

Fullname: Mr Mats Andersson Type: Individual Gender: Male date of birth: 1948 Age: 70 Number of involvements: 10 Function: Regular Member Level of responsibility: Member Appointment date: 2014/08/06 Fullname: Mr Mikael Persson Type: Individual Gender: Male Number of involvements: 1 Function: Regular Member Level of responsibility: Member Appointment date: 2016/06/29 Fullname: Mr Thomas David Sparring Type: Individual Gender: Male Number of involvements: 4 Function: MD and Regular Member Level of responsibility: Member; Highest executive Fullname: Ms Isabelle Sparring Type: Individual Gender: Female Number of involvements: 2 Function: Regular Member Level of responsibility: Member Appointment date: 2016/06/29 Fullname: Mr Jon August Ullmark Type: Individual Gender: Male date of birth: 1975 Age: 43 Number of involvements: 3 Function: Member (Board of Directors) Level of responsibility: Member Appointment date: 2014/08/06

Employees

Year	2017	2016	2015	2014	2013
Annual	160	155	143	143	132

Financial analysis

Trend	Fluctuating
Profitability	Negative
Solvability	Sufficient
Liquidity	Limited
Show amount in	Euro

Key figures

Year	2017	2016	2015	2014	2013
Quick ratio	0,72	0,78	0,84	0,68	0,67
Current ratio	1,18	1,35	1,50	1,40	1,41
Working capital/ balance total	0,13	0,24	0,30	0,26	0,27
Equity / balance total	0,27	0,29	0,33	0,34	0,34
Equity / Fixed assets	1,66	2,98	3,57	4,23	4,49
Working capital	2.023.584	3.633.217	4.422.772	3.508.401	3.720.606
Equity	4.176.216	4.452.282	4.850.334	4.571.144	4.709.175
Mutation equity	-6,20	-8,21	6,11	-2,93
Mutation short term liabilities	7,44	17,42	0,91	-3,79
Return on total assets (ROA)	-0,90	-1,61	2,43	0,83	0,64
Return on equity (ROE)	-3,35	-5,57	7,30	2,40	1,87
Gross profit margin	-0,31	-0,80	0,86	0,67	0,18
Net profit margin	-0,35	-0,66	0,83	0,20	0,19
Average collection ratio	3,45	3,67	4,08	3,81	3,83
Average payment ratio	5,71	5,68	5,66	6,84	6,33
Equity turnover ratio	9,14	8,48	7,38	7,24	7,34
Total assets turnover ratio	2,45	2,45	2,46	2,49	2,51
Fixed assets turnover ratio	15,15	25,25	26,33	30,63	33,00
Inventory conversion ratio	7,41	6,39	6,19	5,25	5,14
Turnover	38.183.469	37.760.096	35.806.697	33.110.333	34.570.977
Operating result	-118.986	-300.823	308.083	221.441	61.636
Net result after taxes	-134.961	-247.980	298.317	66.694	66.649
Cashflow	-20.436	-118.844	437.112	179.921	190.035
Gross profit	10.531.310		9.576.631	9.001.489	9.128.171
EBITDA	-4.461	-171.686	446.878	334.668	185.022
Summary	The 2017 financial result structure is a postive working captial of 2.023.584 euro, which is in agreement with 13 % of the total assets of the company. The working capital has diminished with -44.3 % compared to previous year. The ratio, with respect to the total assets of the company has however, declined. The deterioration between 2016 and 2017 has mainly been caused by a change of the current liabilities. The current ratio of the company in 2017 was 1.18. When the current ratio is below 1.5, the company may have problems meeting its short-term obligations. The quick ratio in 2017 of the company was 0.72. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities. The 2016 financial result structure is a postive working captial of 3.633.217 euro, which is in agreement with 24 % of the total assets of the company. The working capital has diminished with -17.85 % compared to previous year. The ratio, with respect to the total assets of the company has however, declined. The deterioration between 2015 and 2016 has mainly been caused by a change of the current liabilities. The current ratio of the company in 2016 was 1.35. When the current ratio is below 1.5, the company may have problems meeting its short-term obligations. The quick ratio in 2016 of the company was 0.78. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities.

Financial statement

Auditor	Name: Bdo Mälardalen AB
Last annual account	2017
Remark annual account	The company is obliged to file its financial statements.

Type of annual account	Corporate
Annual account	Dafo Brand Aktiebolag Box 683 135 26 Tyreso Sweden

Balance

Year	2017	2016	2015	2014	2013
End date	2017-06-30	2016-06-30	2015-06-30	2014-06-30	2013-06-30
Type of annual account	Corporate	Corporate	Corporate	Corporate	Corporate
Intangible fixed assets	659.867	127.332	173.629
Tangible fixed assets	117.741	173.066	141.725	239.422	288.356
Other fixed assets	1.743.496	1.194.908	1.044.380	841.410	759.342
Fixed assets	2.521.104	1.495.413	1.359.843	1.080.833	1.047.699
Total stock	5.154.657	5.913.315	5.783.700	6.311.940	6.724.138
Total receivables	6.683.419	6.647.917	6.330.306	4.841.842	5.464.985
Liquid funds	117.326	298.807	214.215	353.739	146.628
Other current assets	1.128.547	1.067.682	861.635	688.843	415.274
Current assets	13.083.950	13.927.721	13.189.965	12.196.364	12.751.025
Total assets	15.605.053	15.423.027	14.549.699	13.277.197	13.798.724
Total equity	4.176.216	4.452.282	4.850.334	4.571.144	4.709.175
Provisions	25.934	26.528	16.386	18.090	13.672
Long term liabilities	342.537	649.713	915.894		45.458
Accounts payable	4.957.351	4.030.388	3.641.223	3.341.013	3.753.987
Liabilities towards credit institutes	2.678.264	2.292.619	1.626.038	1.590.517	1.769.102
Other short term liabilities	3.424.751	3.971.497	3.499.932	3.756.433	3.507.329
Short term liabilities	11.060.366	10.294.504	8.767.193	8.687.963	9.030.419
Total liabilities	15.605.053	15.423.027	14.549.699	13.277.197	13.798.724
Summary	The total assets of the company increased with 1.18 % between 2016 and 2017. The total asset increase is retrievable in the fixed asset growth of 68.59 %. In 2017 the assets of the company were 16.16 % composed of fixed assets and 83.84 % by current assets. The assets are being financed by an equity of 26.76 %, and total debt of 73.24 %. The total assets of the company increased with 6 % between 2015 and 2016. The total asset increase is retrievable in the fixed asset growth of 9.97 %. In 2016 the assets of the company were 9.7 % composed of fixed assets and 90.3 % by current assets. The assets are being financed by an equity of 28.87 %, and total debt of 71.13 %.

Profit and loss

Year	2017	2016	2015	2014	2013
Revenues	37.802.965	37.496.837	35.542.780	32.638.136	34.224.972
Net turnover	38.183.469	37.760.096	35.806.697	33.110.333	34.570.977
Wages and salaries	10.465.542	10.370.373	8.993.237	8.645.135	8.824.206
Amorization and depreciation	114.525	129.136	138.795	113.227	123.386
Production costs	21.502.463	21.291.352	20.318.640	18.382.000	19.897.728
Operating result	-118.986	-300.823	308.083	221.441	61.636
Financial income	70.229	143.249	136.625	21.686	118.943
Financial expenses	91.080	90.406	90.613	133.388	92.511
Financial result	-20.851	52.843	46.012	-111.701	26.432
Result on ordinary operations before taxes	-139.837	-247.980	353.987	109.740	88.068
Taxation on the result of ordinary activities	-4.876		55.670	43.046	21.419
Result of ordinary activities after taxes	-134.961	-247.980	298.317	66.694	66.649
Net result	-134.961	-247.980	298.317	66.694	66.649
Summary	The turnover of the company grew with 1.12 % between 2016 and 2017. The operating result of the company grew with 60.45 % between 2016 and 2017. This evolution implies an increase of the company's economic profitability. The result of these changes is an increase of the company's Economic Profitability of 44.1 % of the analysed period, being equal to -0.9 in the year 2017. Despite the growth the asset turnover remained the same at 2.45. The Net Result of the company increased by 45.58 % between 2016 and 2017. The company's Financial Profitability has been negatively affected by the financial activities in comparison to the EBITs behaviour. The result of these variations is a profitability reduction of 39.86 % of the analysed period, being -3.35 in the year 2017. The company's financial structure has slowed down its financial profitability. The turnover of the company grew with 5.46 % between 2015 and 2016. The operating result of the company declined with -197.64 % between 2015 and 2016. This evolution implies an decrease of the company's economic profitability. The result of these changes is a reduction of the company's Economic Profitability of -166.26 % of the analysed period, being equal to -1.61 in the year 2016. Despite the decline the assets turnover did not change, the index remained the same at 2.45. The Net Result of the company decreased by -183.13 % between 2015 and 2016. The company's Financial Profitability has been positively affected by the financial activities in comparison to the EBITs behaviour. The result of these variations is a profitability increase of -176.3 % of the analysed period, being -5.57 in the year 2016. The company's financial profitability has been positively affected by its financial structure.

Country information

Population	10.0 million
GDP per capita	21.125 USD
Country risk	Low
Company risk	Very Low

Publications

Remarks

Status: Active Category: Large company Last year: 2017 Turnover last year: 38.183.469 EUR Result last year: -134.961 EUR TOTAL assets last year: 15.605.053 EUR Number of employees: 160 Number of shareholders: 1 Number of subsidiaries: 3 Number of branches: 1

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 6738
UK Pound	1	INR 91.39
Euro	1	INR 79.89
SEK	1	INR 7.77

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

INFORMATION DETAILS

Analysis Done by :	PRI
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.