MIRA INFORM REPORT

Report Date :

21.08.2007

IDENTIFICATION DETAILS

Name :	Selea I.r. S.r.l.
Registered Office :	Viale Industria, 29, 27025 - Gambolo' (PV) -IT-
Country :	Italy
Financials (as on) :	31.12.2006
Date of Incorporation :	10/03/1975
Legal Form :	Limited Liability Company
Line of Business :	Rubber industry. Production of rubber articles in general

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	26.900 - Eur
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

name & address

Selea I.r. S.r.l.

Viale Industria, 29

27025 - Gambolo' (PV) -IT-

SUMMARY

Legal Form	:	Limited liability company
Start of Activities	:	10/03/1975
Patrimonial Consistence	:	200.000 Eur
Turnover Range	:	1.500.000/2.000.000 Eur
Number of Employees	:	from 1 to 5

CREDIT ANALYSIS

CREDIT OPINION

:

26.900 - Eur

ACTIVITY

Rubber industry.

Production of rubber articles in general

LEGAL DATA

Legal Form : Limited liability company

Fiscal Code : 00287870182

Foreign Trade Reg. no. : PV003604 since 09/12/1991

Foreign Trade Reg. no. : 3604 of Pavia since 09/12/1991

Chamber of Commerce no. : 107986 of Ascoli Piceno

Chamber of Commerce no. : 134600 of Pavia since 16/04/1974

Firms' Register : PV177-2494 since 19/02/1996

Foundation Date	: 05/03/1974
Establishment Date	: 05/03/1974
Start of Activities	: 10/03/1975
Legal Duration Date	: 31/12/2010
Nominal Capital	: 98.800	Eur
Subscribed Capital	: 98.800	Eur
Paid up Capital	: 98.800	Eur

MEMBERS

Guallini

Luisella

Born in Vigevano

(PV)

on 18/11/1973

- Fiscal Code : GLLLLL73S58L872Y

Residence :

Via

Bramante

, 8

- 27029

Vigevano

(PV)

- IT -

Position	Since	Shares Amount	% Ownership
Sole Director	19/09/2003

No Protests registered.

Ranzini

Silvana

Born in Vigevano

(PV)

on 16/05/1942

- Fiscal Code : RNZSVN42E56L872L

Residence :

Via

Bramante

, 8

- 27029

Vigevano

(PV)

- IT -

Position	Since	Shares Amount	% Ownership
Procurator	08/11/2005

No Protests registered.

COMPANIES CONNECTED TO MEMBERS *

*checkings have been performed on a national scale.

*In this module are listed the companies in which members hold or held positions.

RANZINI SILVANA

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
STUDIO CONTABILE DI GUALLINI PIER LUIGI E C. S.A.S.	Vigevano (PV) - IT -	01713320180	Limited Partner	-	Ceased

The indication "REGISTERED" as Firm Status could refere to Firms in Liquidation, Active, Inactive, etc.

For more information, in this case, we advise to request further investigations.

CAPITAL SHAREHOLDERS

Style / Name	Seat / Address	Fiscal Code	Owned Shares	% of Ownership
Guallini Luisella	Vigevano - IT -	GLLLLL73S58L872Y	79.040 .Eur	80,00
Ranzini Silvana	Vigevano - IT -	RNZSVN42E56L872L	19.760 .Eur	20,00

DIRECT PARTICIPATIONS

Company Style	Legal Seat	Fiscal Code	Owned Shares	% of Ownership	Share Status
PEUGE INDUSTRIA GOMMA S.R.L.	Vigevano (PV) - IT -	00447450180	32.915 .Eur	74,98	Ceased
Confidi-pavia	Pavia - IT -	80015880182	250 .Eur	0,48	Ceased

STRUCTURE AND COMPANY ACTIVITY

In order to carry out its activities the firm uses the following locations:

-

Legal and operative seat

since 05/03/1974

in :

Viale

Industria

, 29

- 27025 -

Gambolo'

(PV)

- IT -

PHONE

: 0381/938521

-

Branch

(Warehouse )

since 12/04/1988

in :

Contrada

Campiglione

, 20

- 63020 -

Fermo

(AP)

- IT -

PHONE

: 0734/628592

Employees

: 3

Fittings and Equipment

for a value of 483.000

Eur

Stocks

for a value of 358.500

Eur

Furniture and fittings

for a value of 61.974

Eur

Vehicles

for a value of 129.114

Eur

The firm operates abroad as importer / exporter.

To purchase foreign products the firm uses the following channels :

- distributors

Export represents from 20% to 50% of the global turnover.

Products abroad are placed by :

- its own agents

- direct orders from foreign companies

Import comes generally from the following nations:

- Guatemala GCA

Export is mainly towards:

- Gran Bretagna

- Islanda

- Irlanda

- Somalia

- Gabon

HISTORICAL INFORMATION AND/OR FIRM'S

STATUS

Changes to the legal form

Former legal form	New legal form	Changement Date
Joint stock company	Limited liability company	23/12/1988

Ex-Members / Ex-Positions

Gaulio

Valentino

Born in PAVIA

on 25/01/1961

- Fiscal Code : GLAVNT61A25G388D

Residence :

Via

PIAVE

, 54

- 27020

Scaldasole

(PV)

- IT -

Position

Attorney with special power

Guallini

Pier Luigi

Born in Gambolo'

on 25/12/1932

- Fiscal Code : GLLPLG32T25D901N

Fiscal residence :

Viale

Industria

, 29

- 27025

Gambolo'

(PV)

- IT -

Position

Sole Director

Former seats

-

Branch

(Branch )

since 12/04/1988

Via

Da Capiglione

- 63023

- Fermo

(AP)

- IT -

-

Branch

(Branch )

since 18/09/1989

until 01/03/1995

Viale

Agricoltura

- 27029

- Vigevano

(PV)

- IT -

PAYMENTS ANALYSIS

The average term of debts to suppliers is shorter than the sector one.

PAYMENTS SCORE : - No insolvency

CREDIT REVOLVING

The subject of inquiry has been monitored by our company:

During the last 12 Months : n. 2 times.

PROTESTS

Protests checking on the subject firm has given a negative result.

LEGAL PROCEDURES

None reported, standing to the last received edition of the Official Publications.

BANKERS

Bank Name	Agency Name	Address	ZIP Code	City	ABI Code	CAB Code
INTESA SAN PAOLO SPA					1025	0

IMMOVABLES *

*No specific (mortgage/cadastrial registrations) inspections have been requested.

Immovable Type	Value
Real estates	56.810 .Eur

NB.: For Capital Companies the value of the Immovables is the one reported in the last available financial documents.

FINANCIAL AND ECONOMICAL ANALYSIS

Company's starting of activities dates back to 1975.

Under the financial profile unstable results are noted. anyway in 2006 a positive result was achieved (r.o.e. 3,36%). The turnover is growing in the last financial year (+76,81%).

The return on Investment in the last financial year was positive (0,63%) falling within the field's average.

The ratio between debts and total assets is fairly high, as it comes out from the indebtedness (7,87) with an upward trend.

Bank exposure is limited and the suppliers' credit is modest too, 44,92 gg. is the payment average period below the sector's average.

Available funds are not so good (0,93).

FINANCIAL DATA

Complete balance-sheet for the year as at

31/12/2006

(in Eur

x 1 )

Item Type	Amount	Source
Sales	1.960.888	filed balance sheet
Profit (Loss) for the period	6.299	filed balance sheet

Complete balance-sheet for the year as at

31/12/2005

(in Eur

x 1 )

Item Type	Amount	Source
Sales	1.109.028	filed balance sheet
Profit (Loss) for the period	4.302	filed balance sheet

Complete balance-sheet for the year as at

31/12/2004

(in Eur

x 1 )

Item Type	Amount	Source
Sales	715.851	filed balance sheet
Profit (Loss) for the period	-13.147	filed balance sheet

Complete balance-sheet for the year as at

31/12/2003

(in Eur

x 1 )

Item Type	Amount	Source
Sales	832.390	filed balance sheet
Profit (Loss) for the period	-627.108	filed balance sheet

Complete balance-sheet for the year as at

31/12/2002

(in Eur

x 1 )

Item Type	Amount	Source
Sales	744.730	filed balance sheet
Profit (Loss) for the period	3.098	filed balance sheet

BALANCE SHEETS

From our constant monitoring of the Public Administration, actually, no more recent balance sheets result to be filed.

Balance Sheet as at 31/12/2006 - Months 12 - Currency Eur - Amounts x 1

Balance Sheet as at 31/12/2005 - Months 12 - Currency Eur - Amounts x 1

Years		2006	2005
	BALANCE SHEET ACCOUNTS
.
ASSETS
CREDITS TO SHAREHOLDERS
FIXED ASSETS ( NET )		331.993	366.760
. Intangible assets		74.296	85.612
. Tangible fixed assets		257.697	281.148
. . Land and buildings
. . Plants, Equipm. and Machinery
. Long-term Investments
. . Financial loans
. . Own shares
CURRENT ASSETS		1.481.665	1.344.246
. Stock		358.606	382.746
. Credits		1.011.494	755.216
. . Credits to clients		875.797	755.216
. . Other credits		135.697
. Short-term financial assets
. Liquid assets		111.565	206.284
ACCRUED INCOME-DEFERR. ASSETS		2.062	1.172
TOTAL ASSETS		1.815.720	1.712.178
.
LIABILITIES
NET WORTH		187.265	180.967
. Company's capital		98.800	98.800
. Reserves		82.166	77.865
. Reserves company's own shares
. Retained profits (losses)
. Profit (loss)		6.299	4.302
PROVISION CHARGES ACCOUNTS
STAFF TERM INDEMNITY		28.643	23.058
DEBTS		1.586.849	1.501.062
. Financial M/L terms
. . Financial M/L term banks
. . Financial M/L bonds
. . Other financial M/L debts
. Financial short-term debts
. . Financial short-term banks
. . Financial short-term bonds
. . Other financial short-term debts
. M/L term debts to suppliers
. Short-term debts to suppliers		221.550
. Sundry M/L debts
. Sundry short-term debts		1.365.298
ACCRUED COSTS DEFERR. LIABILITIES		12.963	7.091
TOTAL LIABILITIES		1.815.720	1.712.178
.
	PROFIT AND LOSS ACCOUNTS
OUTPUT VALUE		1.942.006	1.169.837
. Revenues from sales/services		1.960.888	1.109.028
. Change of stock (products)		-25.397	45.048
OPERATING EXPENSES		1.930.406	1.166.781
. Purchasing expenses		1.448.536	734.328
. Change of stock (raw material)		-1.257	-9.761
. Expenses from services		320.821	311.066
. Expenses from leasing		5.165	5.165
. General expenses/sundry charges		1.895	1.985
. Staff expenses		103.474	75.426
. Depreciation/Devaluation costs		51.772	48.572
FINANCIAL REVENUES (CHARGES)		-7.409	2.725
. Financial charges		-8.564
. Financial revenues		1.155	2.725
FINANCIAL ASSETS CORRECTION
EXTRAORDINARY FINANCIAL REVENUES (CHARGES)		7.686	2.491
PROFIT (LOSS) FOR THE PERIOD		11.877	8.272
TAX		5.578	3.970
CORRECT./ALLOCAT. FISCAL RULE
NET PROFIT (LOSS)		6.299	4.302

RATIOS	Item	O.V.	O.V.	as at 31/12/2006	as at 31/12/2005	Sector Average
Fixed assets ratio	Units	=> 1		0,65	0,55	1,55
Net Short-term indebtedness	Units	- 1		7,87	7,15	2,63
Current ratio	Units	=> 1		0,93	0,89	1,22
Acid Test Ratio-Liquidity Ratio	Units'	=> 1		0,70	0,64	0,95
Return on Sales	%			2,96	4,76	4,36
Average stock waiting period	dd			65,80	124,23	43,37
Credits to clients average term	dd			160,77	245,12	127,04
Debts to suppliers average term	dd			44,92	510,00	140,00
Net financial revenues/ charges incidence	%			- 0,37	0,24	- 0,93
Labour cost incidence	%			5,27	6,80	18,43

O.V. = Optimal Value. When not present refer to the sector's.

A coloured item indicates the opinion of the rate during the last financial year

(green=good; orange=not optimal; red=insufficient; n.c.=not computable)

CREDIT OPINION

On the basis of the above mentioned, and the sales volume obtained, we deem that the maximum exposure for short and medium term transactions ( 90 - 120 days ) could be of:

26.900 .Eur.

MARKET / TERRITORY DATA

Population living in the province	:	510.505
Population living in the region	:	9.393.092
Number of families in the region	:	3.858.736

Monthly family expenses average in the region (in Eur.) :

- per food products	:	460
- per non food products	:	2.090
- per energy consume	:	114

SECTOR DATA

The values are calculated on a base of 239 significant companies.

The companies cash their credits on an average of 127 dd.

The average duration of suppliers debts is about 140 dd.

The sector's profitability is on an average of 4,36%.

The labour cost affects the turnover in the measure of 18,43%.

Goods are held in stock in a range of 43 dd.

The difference between the sales volume and the resources used to realize it is about 1,27.

The employees costs represent the 18,88% of the production costs.

STATISTICAL DETRIMENTAL DATA

Statistically the trade activity shows periods of crisis.

The area is statistically considered moderately risky.

In the region 50.886 protested subjects are found; in the province they count to 2.343.

The insolvency index for the region is 0,55, while for the province it is 0,46.

Total Bankrupt companies in the province : 986.

Total Bankrupt companies in the region : 39.612.

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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 and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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