MIRA INFORM REPORT

Report Date :

06.09.2007

IDENTIFICATION DETAILS

Name :	Vipa S.p.a.
Registered Office :	Via Abetone, 20/22, 41012 – Carpi (MO) -IT-
Country :	Italy
Financials (as on) :	31.12.2006
Date of Incorporation :	29/12/1973
Legal Form :	Joint Stock Company
Line of Business :	Wholesale of furniture, electric household appliances, radios, TV sets, tape-recorders etc.

RATING & COMMENTS

MIRA’s Rating :

Aaa

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

Maximum Credit Limit :	590.300 - Eur
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear

name & address

Vipa S.p.a.

Via Abetone, 20/22

41012 - Carpi (MO) -IT-

SUMMARY

Legal Form	:	Joint stock company
Foundation Date	:	29/12/1973
Patrimonial Consistence	:	Over 2.500.000 Eur
Turnover Range	:	25.000.000/35.000.000 Eur
Number of Employees	:	From 51 to 70

CREDIT ANALYSIS

CREDIT OPINION

:

590.300 - Eur

ACTIVITY

Wholesale of furniture, electric household appliances, radios, TV sets, tape-recorders etc.

LEGAL DATA

Legal Form : Joint stock company

Fiscal Code : 00007080369

Foreign Trade Reg. no. : 7110 of Modena since 08/01/1992

Chamber of Commerce no. : 160574 of Modena since 30/01/1974

Chamber of Commerce no. : 193822 of Reggio Emilia

Firms' Register : MO023-7266 since 19/02/1996

Foundation Date	: 29/12/1973
Establishment Date	: 29/12/1973
Legal Duration Date	: 31/12/2050
Nominal Capital	: 1.033.000	Eur
Subscribed Capital	: 1.033.000	Eur
Paid up Capital	: 1.033.000	Eur

MEMBERS

Vaccari

Leandrina

Born in Soliera

(MO)

on 12/04/1938

- Fiscal Code : VCCLDR38D52I802M

Position	Since	Shares Amount	% Ownership
Director	30/06/2004
Board Chairman	30/06/2004

No Protests registered.

Poppi

Paolo

Born in Soliera

(MO)

on 04/01/1960

- Fiscal Code : PPPPLA60A04I802T

Position	Since	Shares Amount	% Ownership
Director	30/06/2004

No Protests registered.

Poppi

Vilson

Born in Carpi

(MO)

on 19/09/1955

- Fiscal Code : PPPVSN55P19I802M

Residence :

Via

Borsellino

, 42

- 42047

Carpi

(MO)

- IT -

Position	Since	Shares Amount	% Ownership
Director	30/06/2004

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.

VACCARI LEANDRINA

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
INOX GROUP FASTENERS S.R.L.	Rolo (RE) - IT -	03282480403	Sole Director	Active	Registered
VALP S.A.S. DI VACCARI LEANDRINA	Carpi (MO) - IT -	02688040365	General Partner	Active	Registered

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
Vaccari Leandrina		VCCLDR38D52I802M	344.333 .Eur	33,33
Poppi Paolo		PPPPLA60A04I802T	344.333 .Eur	33,33
Poppi Vilson	Carpi - IT -	PPPVSN55P19I802M	344.333 .Eur	33,33

DIRECT PARTICIPATIONS

The Company under review has no participations in other Companies.

STRUCTURE AND COMPANY ACTIVITY

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

-

Legal and operative seat

since 16/03/1981

in :

Via

Abetone

, 20/22

- 41012 -

Carpi

(MO)

- IT -

PHONE

: 059688727

-

Branch

(Point of sale )

since 08/01/2001

in :

Via

Cantonazzo

, 20/23

- 42047 -

Rolo

(RE)

- IT -

Employees

: 54

Assistants

: 1

Fittings and Equipment

for a value of 121.500

Eur

Stocks

for a value of 4.563.500

Eur

The firm operates abroad as importer / exporter.

To purchase foreign products the firm uses the following channels :

- direct orders to foreign companies

Export represents up to 20% of the global turnover.

Products abroad are placed by :

- its own agents

- direct orders from foreign companies

Export is mainly towards:

- Islanda

- Irlanda

HISTORICAL INFORMATION AND/OR FIRM'S

STATUS

Changes to the legal form

Former legal form	New legal form	Changement Date
General partnership	Joint stock company	06/05/1998

Company Style modifications

Former Style	New Style	Changement Date
Vipa di Poppi Adelio E C. Snc		06/05/1998

Ex-Members / Ex-Positions

Vaccari

Leandrina

Born in Soliera

on 12/04/1938

- Fiscal Code : VCCLDR38D52I802M

Position

Partner

Assistant board Chairman

Poppi

Paolo

Born in Soliera

on 04/01/1960

- Fiscal Code : PPPPLA60A04I802T

Position

Partner

Bergianti

Paolo

Born in CARPI

on 25/01/1962

- Fiscal Code : BRGPLA62A25B819W

Residence :

Corso

MAZZINI

, 11

- 42015

Correggio

(RE)

- IT -

Position

Permanent Auditor

Poppi

Adelio

Born in Soliera

on 09/06/1931

- Fiscal Code : PPPDLA31H09I802C

Residence :

Via

Lenin

, 52

- 41012

Carpi

(MO)

- IT -

Position

Director

Board Chairman

Former seats

-

Branch

(Point of sale )

since 01/03/1993

until 08/01/2001

Trading Style : VIPA

Via

Curiel

- 42025

- Cavriago

(RE)

- IT -

-

Branch

(Store )

since 02/01/1996

Via

Archimede

- 41019

- Soliera

(MO)

- IT -

-

Branch

(Store )

since 01/04/1996

Via

Archimede

- 41019

- Soliera

(MO)

- IT -

-

Branch

(Store )

since 22/12/2000

Via

Archimede

- 41019

- Soliera

(MO)

- IT -

Splitting-up and transfer of assets to

Valp S.a.s. Di Vaccari Leandrina

Via

Abetone

, 20/22

, 41012

, Carpi

(MO)

- IT -

Fiscal Code: 02688040365

Date

Splitting-up :

04/03/2002

Project of splitting-up and tranfer into

Valp S.a.s. Di Vaccari Leandrina

Via

Abetone

, 20/22

, 41012

, Carpi

(MO)

- IT -

Fiscal Code: 02688040365

Date

Merging/Splitting-up Project :

15/10/2001

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 6 Months : n. 1 times.

During the last 12 Months : n. 1 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
ROLO BANCA 1473 S.P.A.	Ag. di Carpi.				3556
BANCA POPOLARE DELL'EMILIA ROMAGNA	Ag. di Soliera.				5387
BANCA POP. DI VERONA - BANCO S. GEMINIAN	Ag. di Carpi.				5188

IMMOVABLES *

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

Immovable Type	Value
Real estates	881.510 .Eur

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

FINANCIAL AND ECONOMICAL ANALYSIS

Subject is active since 1973

During the last years, it recorded positive net results (r.o.e. 12,5% in 2006) with a good increase in turnover (+14,68% in 2006 compared to 2005 and +17,01% in 2005 compared to 2004).

The operating result in 2006 was positive (11,53%) and reflects the field's average.

From a financial aspect the company's status covers total short-term debts; the indebtedness volume in 2006 is in fact 0,92 improved in comparison with the year before (1,08.).

Bank exposure is limited and the suppliers' credit is modest too, 44,78 gg. is the payment average period below the sector's average.

Payments are supported by good current assets.

FINANCIAL DATA

Complete balance-sheet for the year as at

31/12/2006

(in Eur

x 1 )

Item Type	Amount	Source
Sales	26.767.728	filed balance sheet
Profit (Loss) for the period	1.581.579	filed balance sheet

Complete balance-sheet for the year as at

31/12/2005

(in Eur

x 1 )

Item Type	Amount	Source
Sales	23.340.848	filed balance sheet
Profit (Loss) for the period	943.587	filed balance sheet

Complete balance-sheet for the year as at

31/12/2004

(in Eur

x 1 )

Item Type	Amount	Source
Sales	19.946.659	filed balance sheet
Profit (Loss) for the period	796.074	filed balance sheet

Complete balance-sheet for the year as at

31/12/2003

(in Eur

x 1 )

Item Type	Amount	Source
Sales	16.868.734	filed balance sheet
Profit (Loss) for the period	2.086.456	filed balance sheet

Complete balance-sheet for the year as at

31/12/2002

(in Eur

x 1 )

Item Type	Amount	Source
Sales	14.022.061	filed balance sheet
Profit (Loss) for the period	743.134	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 )		4.544.751	839.679
. Intangible assets		133.631	16.942
. Tangible fixed assets		4.399.473	244.175
. . Land and buildings		881.510
. . Plants, Equipm. and Machinery		121.393	101.745
. Long-term Investments		11.647	578.562
. . Financial loans		11.647	578.562
. . Own shares
CURRENT ASSETS		17.667.038	19.843.566
. Stock		4.563.287	7.146.771
. Credits		11.580.777	12.657.283
. . Credits to clients		10.506.317	11.968.186
. . Other credits		1.074.460	689.097
. Short-term financial assets		1.510.572
. Liquid assets		12.402	39.512
ACCRUED INCOME-DEFERR. ASSETS		2.666.349	2.912.057
TOTAL ASSETS		24.878.138	23.595.302
.
LIABILITIES
NET WORTH		12.644.838	11.063.257
. Company's capital		1.033.000	1.033.000
. Reserves		10.030.259	9.086.670
. Reserves company's own shares
. Retained profits (losses)
. Profit (loss)		1.581.579	943.587
PROVISION CHARGES ACCOUNTS		140.231	136.231
STAFF TERM INDEMNITY		303.981	296.557
DEBTS		11.705.771	12.046.264
. Financial M/L terms
. . Financial M/L term banks
. . Financial M/L bonds
. . Other financial M/L debts
. Financial short-term debts		8.389.808	8.413.255
. . Financial short-term banks		8.389.808	8.413.255
. . Financial short-term bonds
. . Other financial short-term debts
. M/L term debts to suppliers
. Short-term debts to suppliers		2.370.059	2.850.411
. Sundry M/L debts
. Sundry short-term debts		945.904	782.598
ACCRUED COSTS DEFERR. LIABILITIES		83.317	52.993
TOTAL LIABILITIES		24.878.138	23.595.302
.
	PROFIT AND LOSS ACCOUNTS
OUTPUT VALUE		26.804.848	23.289.752
. Revenues from sales/services		26.767.728	23.340.848
. Change of stock (products)		-3.905	-80.121
OPERATING EXPENSES		23.934.361	21.316.386
. Purchasing expenses		13.710.206	16.309.910
. Change of stock (raw material)		2.579.579	-2.237.440
. Expenses from services		3.864.108	3.707.084
. Expenses from leasing		1.468.078	1.443.962
. General expenses/sundry charges		171.395	236.750
. Staff expenses		1.991.350	1.703.822
. Depreciation/Devaluation costs		149.645	152.298
FINANCIAL REVENUES (CHARGES)		-92.547	-280.856
. Financial charges		-177.066	-360.426
. Financial revenues		84.519	79.570
FINANCIAL ASSETS CORRECTION
EXTRAORDINARY FINANCIAL REVENUES (CHARGES)		4.911
PROFIT (LOSS) FOR THE PERIOD		2.782.851	1.692.510
TAX		1.201.272	748.923
CORRECT./ALLOCAT. FISCAL RULE
NET PROFIT (LOSS)		1.581.579	943.587

RATIOS	Item	O.V.	O.V.	as at 31/12/2006	as at 31/12/2005	Sector Average
Fixed assets ratio	Units	=> 1		2,84	13,52	2,37
Net Short-term indebtedness	Units	- 1		0,92	1,08	4,52
Current ratio	Units	=> 1		1,50	1,64	1,18
Acid Test Ratio-Liquidity Ratio	Units	=> 1		1,11	1,05	0,83
Return on Sales	%			6,46	4,69	2,06
Average stock waiting period	dd			61,34	110,19	61,77
Credits to clients average term	dd			141,26	184,57	119,34
Debts to suppliers average term	dd			44,78	47,80	140,00
Net financial revenues/ charges incidence	%			- 0,34	- 1,20	- 0,96
Labour cost incidence	%			7,43	7,29	8,09

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:

590.300 .Eur.

MARKET / TERRITORY DATA

Population living in the province	:	659.925
Population living in the region	:	4.151.369
Number of families in the region	:	1.748.359

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

- per food products	:	425
- per non food products	:	2.063
- per energy consume	:	143

SECTOR DATA

The values are calculated on a base of 3.443 significant companies.

The companies cash their credits on an average of 119 dd.

The average duration of suppliers debts is about 140 dd.

The sector's profitability is on an average of 2,06%.

The labour cost affects the turnover in the measure of 8,09%.

Goods are held in stock in a range of 61 dd.

The difference between the sales volume and the resources used to realize it is about 1,45.

The employees costs represent the 8,27% of the production costs.

STATISTICAL DETRIMENTAL DATA

Statistically the trade activity shows periods of crisis.

The area is statistically considered lowly risky.

In the region 18.860 protested subjects are found; in the province they count to 3.557.

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

Total Bankrupt companies in the province : 2.526.

Total Bankrupt companies in the region : 14.698.

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