MIRA INFORM REPORT

Report Date :

25.04.2008

IDENTIFICATION DETAILS

Name :	GIANNINO DISTRIBUZIONE S.P.A.
Registered Office :	Via Del Giocatoio, 11 51017- Pescia(PT)
Country :	Italy
Financials (as on) :	31.12.2006
Date of Incorporation :	03.01.1977
Legal Form :	Joint Stock Company
Line of Business :	Wholesaler of Ready-Made Clothes and of Articles for Clothing.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	Eur 481.300
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear

name & address

Giannino Distribuzione S.p.a.

Via Del Giocatoio, 11

51017 - Pescia (PT) -IT-

SUMMARY

Fiscal Code	:	00205060478
Legal Form	:	Joint stock company
Start of Activities	:	03/01/1977
Patrimonial Consistence	:	Over 2.500.000 Eur
Turnover Range	:	75.000.000/100.000.000 Eur
Number of Employees	:	from 150 to 175

CREDIT ANALYSIS

CREDIT OPINION	:	481.300 - Eur
Score	:	Risk low
Creditworthness Rate	:	Excellent
		Solid financial structure that permits credit with low risk.

ACTIVITY

Wholesale of ready-made clothes and of articles for clothing.

Wholesale of underwear.

LEGAL DATA

Legal Form : Joint stock company

Fiscal Code : 00205060478

Foreign Trade Reg. no. : PT000727 since 10/12/1991

Foreign Trade Reg. no. : 000727 of Pistoia since 10/12/1991

Chamber of Commerce no. : 364582 of Firenze

Chamber of Commerce no. : 90587 of Lucca

Chamber of Commerce no. : 206665 of Parma

Chamber of Commerce no. : 79064 of Pistoia since 24/08/1973

Firms' Register : PT014-2968 since 19/02/1996

V.A.T. Code : 00205060478

Foundation Date	: 28/05/1973
Establishment Date	: 28/05/1973
Start of Activities	: 03/01/1977
Legal Duration Date	: 31/12/2050
Nominal Capital	: 6.252.598	Eur
Subscribed Capital	: 6.252.598	Eur
Paid up Capital	: 6.252.598	Eur

MEMBERS

Viti

Pierpaolo

Born in Massa e Cozzile

(PT)

on 17/05/1953

- Fiscal Code : VTIPPL53E17F025L

Residence :

Via

Falciano

, 33

- 51017

Buggiano

(PT)

- IT -

Position	Since	Shares Amount	% Ownership
Sole Director	28/04/2006

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.

VITI

PIERPAOLO

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
OUT RETAIL S.R.L.	Pescia (PT) - IT -	01501670473	Sole Director	Active	Registered
SERVIZI AZIENDALI S.R.L.	Pescia (PT) - IT -	01189950478	Liquidator	-	Ceased
TRA.SER. - S.R.L.-	Pescia (PT) - IT -	00367280476	Sole Director	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
Fantozzi Virgilio	Pescia - IT -	FNTVGL22S28G491V	517 .Eur
Viti Pierpaolo	Buggiano - IT -	VTIPPL53E17F025L	51.700 .Eur	0,82
Giusti Maria Grazia	Pescia - IT -	GSTMGR33R68F452C	2.326 .Eur	0,03
ITALTHAI S.R.L.	Pescia - IT -	00225690452	6.198.054 .Eur	99,12

DIRECT PARTICIPATIONS

Company Style	Legal Seat	Fiscal Code	Owned Shares	% of Ownership	Share Status
Ingromarket - S.p.a.	Sesto Fiorentino - IT -	00759680481	7.000 .Eur	1,38	Active
Out Retail S.r.l.	Pescia - IT -	01501670473	45.000 .Eur	100,00	Active

STRUCTURE AND COMPANY ACTIVITY

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

-

Legal and operative seat

in :

Via

Del Giocatoio

, 11

- 51017 -

Pescia

(PT)

- IT -

PHONE

: 0583216444

FAX	: 05830024604

-

Branch

(Branch )

since 28/05/1984

in :

Via

Danubio 13/15/17/19/21/23

, Loc. OSMANNORO

- 50019 -

Sesto Fiorentino

(FI)

- IT -

PHONE

: 055/343011

-

Branch

(Branch )

since 18/12/1978

in :

Via

Delle Cerbaie

, 41/43

- 55011 -

Altopascio

(LU)

- IT -

PHONE

: 0583/2831

-

Branch

(Store )

since 01/04/1993

in :

Localita'

Cerbaia

, 91/92

- 55011 -

Altopascio

(LU)

- IT -

PHONE

: 0583/2831

-

Branch

(Store )

since 01/04/1993

in :

Localita'

Cerbaia

, 1

- 55011 -

Altopascio

(LU)

- IT -

-

Branch

(Branch )

since 08/09/1998

in :

Via

Lisbona

, 2/4 Loc. BIANCONESE

- 43012 -

Fontevivo

(PR)

- IT -

Employees

: 175

Fittings and Equipment

for a value of 961.500

Eur

Stocks

for a value of 16.483.000

Eur

The firm has a direct commercial organization

Sales are on local and provincial scale

The company sells mainly to retailers and local consumers

To purchase foreign products the firm uses the following channels :

- distributors

- direct orders to foreign companies

Export represents up to 20% of the global turnover.

Products abroad are placed by :

- importers

- direct orders from foreign companies

Import comes generally from the following nations:

- Irlanda

- Grecia

Export is mainly towards:

- Polonia

- Austria

- Francia

- Germania

- Gabon

- Somalia

HISTORICAL INFORMATION AND/OR FIRM'S STATUS

Ex-Members / Ex-Positions

Fantozzi

Virgilio

Born in Pescia

on 28/11/1922

- Fiscal Code : FNTVGL22S28G491V

Residence :

Via

C. Battisti

, 18

- 51017

Pescia

(PT)

- IT -

Position

Chairman

Sole Director

Board Chairman

Fantozzi

Maria Serena

Born in Pescia

on 27/07/1957

- Fiscal Code : FNTMSR57L67G491W

Fiscal residence :

Via

S. Margherita

, 31

- 51017

Pescia

(PT)

- IT -

Position

Managing Director

Viti

Pierpaolo

Born in Massa e Cozzile

on 17/05/1953

- Fiscal Code : VTIPPL53E17F025L

Residence :

Via

Falciano

, 33

- 51017

Buggiano

(PT)

- IT -

Position

Managing Director

Giusti

Maria Grazia

Born in Montecarlo

on 28/10/1933

- Fiscal Code : GSTMGR33R68F452C

Residence :

Via

Cesare Battisti

, 18

- 51017

Pescia

(PT)

- IT -

Position

Managing Director

Fantozzi

Rita

Born in Lucca

on 14/11/1965

- Fiscal Code : FNTRTI65S54E715E

Residence :

Via

Torricelli

, 1

- 51017

Pescia

(PT)

- IT -

Position

Managing Director

Pantera

Giuseppe

Born in Pescia

on 23/02/1923

- Fiscal Code : PNTGPP23B23G491R

Residence :

Viale

Garibaldi

- 51017

Pescia

(PT)

- IT -

Position

Permanent Auditor

PAYMENTS ANALYSIS

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

PAYMENTS SCORE : - No insolvency

CREDIT REVOLVING

During last Year, the subject of inquiry has not been monitored by our company.

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.

IMMOVABLES *

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

Immovable Type	Value
Real estates	9.833.752 .Eur

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

FINANCIAL AND ECONOMICAL ANALYSIS

The company is active since 1977

During the last years, it recorded positive net results (r.o.e. 5,08% in 2006) keeping the turnover steady during the last two years.

The operating result was positive in the last financial year (5,29%) 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 0,57 lower than in 2005.

Bank and suppliers credit recourse is limited, 40,24 gg. is payment average period which is also lower than the sector average.

The management determines a good range of liquidity.

FINANCIAL DATA

Complete balance-sheet for the year as at

31/12/2006

(in Eur

x 1 )

Item Type	Amount	Source
Sales	95.190.264	filed balance sheet
Profit (Loss) for the period	1.307.183	filed balance sheet

Complete balance-sheet for the year as at

31/12/2005

(in Eur

x 1 )

Item Type	Amount	Source
Sales	94.213.241	filed balance sheet
Profit (Loss) for the period	1.606.683	filed balance sheet

Complete balance-sheet for the year as at

31/12/2004

(in Eur

x 1 )

Item Type	Amount	Source
Sales	91.006.076	filed balance sheet
Profit (Loss) for the period	1.908.018	filed balance sheet

Complete balance-sheet for the year as at

31/12/2003

(in Eur

x 1 )

Item Type	Amount	Source
Sales	89.868.909	filed balance sheet
Profit (Loss) for the period	1.433.535	filed balance sheet

Complete balance-sheet for the year as at

31/12/2002

(in Eur

x 1 )

Item Type	Amount	Source
Sales	93.329.106	filed balance sheet
Profit (Loss) for the period	2.584.981	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 )		11.732.448	12.087.827
. Intangible assets		51.508	16.341
. Tangible fixed assets		11.524.090	11.915.904
. . Land and buildings		9.833.752	10.152.214
. . Plants, Equipm.and Machinery		961.697	916.535
. Long-term Investments		156.850	155.582
. . Financial loans		156.850	155.582
. . Own shares
CURRENT ASSETS		38.795.888	38.202.597
. Stock		16.483.041	15.916.338
. Credits		22.110.673	22.091.982
. . Credits to clients		21.532.290	21.499.009
. . Other credits		578.383	592.973
. Short-term financial assets
. Liquid assets		202.174	194.277
ACCRUED INCOME-DEFERR. ASSETS		68.553	134.104
TOTAL ASSETS		50.596.889	50.424.528
.
LIABILITIES
NET WORTH		25.698.296	24.753.933
. Company's capital		6.252.598	6.252.598
. Reserves		18.138.515	16.894.652
. Reserves company's own shares
. Retained profits (losses)
. Profit (loss)		1.307.183	1.606.683
PROVISION FOR RISKS AND LOSSES		7.310.870	7.310.870
SEVERANCE INDEMNITY FUND		1.779.584	1.589.044
DEBTS		15.793.851	16.753.693
. Financial M/L terms		833.333	1.166.667
. . Financial M/L term banks		833.333	1.166.667
. . Financial M/L bonds
. . Other financial M/L debts
. Financial short-term debts		3.774.684	3.823.473
. . Financial short-term banks		3.774.684	3.823.473
. . Financial short-term bonds
. . Other financial short-term debts
. M/L term debts to suppliers
. Short-term debts to suppliers		9.543.765	10.586.927
. Sundry M/L debts
. Sundry short-term debts		1.642.069	1.176.626
ACCRUED EXPENSE		14.288	16.988
TOTAL LIABILITIES		50.596.889	50.424.528
.
	PROFIT AND LOSS ACCOUNTS
OUTPUT VALUE		96.052.383	94.949.943
. Revenues from sales/services		95.190.264	94.213.241
. Change of stock (products)		366.358	222.699
OPERATING EXPENSES		93.371.275	91.709.176
. Purchasing expenses		83.058.652	81.888.110
. Change of stock (raw material)
. Expenses from services		1.973.910	2.149.136
. Expenses from leasing		281.408	218.769
. General expenses/sundry charges		206.205	199.891
. Staff expenses		6.532.186	5.851.074
. Depreciation/Devaluation costs		1.318.914	1.402.196
FINANCIAL REVENUES (CHARGES)		-48.681	-70.306
. Financial charges		-87.961	-91.954
. Financial revenues		39.280	21.648
FINANCIAL ASSETS CORRECTION
EXTRAORDINARY FINANCIAL REVENUES (CHARGES)		37.728	-86.994
PROFIT (LOSS) FOR THE PERIOD		2.670.155	3.083.467
TAX		1.362.972	1.476.784
CORRECT./ALLOCAT. FISCAL RULE
NET PROFIT (LOSS)		1.307.183	1.606.683

RATIOS	Item	O.V.	O.V.	as at 31/12/2006	as at 31/12/2005	Sector Average
Fixed assets ratio	Units	=> 1	l	2,41	2,27	2,86
Net Short-term indebtedness	Units	- 1	l	0,57	0,62	3,99
Current ratio	Units	=> 1	l	2,59	2,45	1,20
Acid Test Ratio-Liquidity Ratio	Units	=> 1	l	1,49	1,42	0,76
Return on Sales	%		l	2,75	3,19	1,91
Average stock waiting period	dd		l	62,31	60,80	84,81
Credits to clients average term	dd		l	81,43	82,11	98,35
Debts to suppliers average term	dd		l	40,24	45,21	140,38
Net financial revenues/ charges incidence	%		l	- 0,05	- 0,07	- 1,11
Labour cost incidence	%		l	6,86	6,21	8,20

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:

481.300 .Eur.

MARKET / TERRITORY DATA

Population living in the province	:	277.028
Population living in the region	:	3.598.269
Number of families in the region	:	1.474.681

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

- per food products	:	444
- per non food products	:	2.009
- per energy consume	:	122

SECTOR DATA

The values are calculated on a base of 2.099 significant companies.

The companies cash their credits on an average of 98 dd.

The average duration of suppliers debts is about 140 dd.

The sector's profitability is on an average of 1,91%.

The labour cost affects the turnover in the measure of 8,20%.

Goods are held in stock in a range of 84 dd.

The difference between the sales volume and the resources used to realize it is about 1,33.

The employees costs represent the 8,19% of the production costs.

STATISTICAL DETRIMENTAL DATA

Statistically the trade activity passes through serious crises.

The area is statistically considered remarkably risky.

In the region 24.960 protested subjects are found; in the province they count to 2.482.

The insolvency index for the region is 0,70, while for the province it is 0,91.

Total Bankrupt companies in the province : 1.559.

Total Bankrupt companies in the region : 20.423.

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