MIRA INFORM REPORT

Report Date :

15.02.2008

IDENTIFICATION DETAILS

Name :	WALTER TOSTO S.P.A.
Registered Office :	Via Colle Marino, 81 65100- Pescara (PE)
Country :	Italy
Financials (as on) :	31.12.2006
Date of Incorporation :	06.01.1984
Com. Reg. No.:	PE028-6398
Legal Form :	Joint Stock Company
Line of Business :	Installation of building plants. Installation and maintenance of various electric systems for buildings, anti-theft device, fire-fighting and spars, telephones, heating and conditioning systems. Installation of fire prevention plants.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	Eur 158.600
Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear

name & address

Walter Tosto S.p.a.

Via Colle Marino, 81

65100 - Pescara (PE) -IT-

SUMMARY

Fiscal Code	:	00405130683
Legal Form	:	Joint stock company
Start of Activities	:	06/01/1984
Patrimonial Consistence	:	Over 2.500.000 Eur
Turnover Range	:	35.000.000/50.000.000 Eur
Number of Employees	:	from 251 to 500

CREDIT ANALYSIS

CREDIT OPINION	:	158.600 - Eur
Score	:	Risk medium
Creditworthness Rate	:	Modest
		The financial situation is not very balanced-Credit is possible but
		following the future developments.

ACTIVITY

Installation of building plants. Installation and maintenance of various electric systems for buildings, anti-theft device, fire-fighting and spars, telephones, heating and conditioning systems. Installation of fire prevention plants.

LEGAL DATA

Legal Form : Joint stock company

Fiscal Code : 00405130683

Foreign Trade Reg. no. : PE001484 since 01/04/1992

Foreign Trade Reg. no. : 001484 of Pescara since 01/04/1992

Chamber of Commerce no. : 79004 of Chieti

Chamber of Commerce no. : 255447 of Foggia

Chamber of Commerce no. : 65864 of Pescara since 28/02/1984

Firms' Register : PE028-6398 since 19/02/1996

V.A.T. Code : 00405130683

Court : 6398 of Pescara

Foundation Date : 06/01/1984

Establishment Date : 06/01/1984

Start of Activities : 06/01/1984

Legal Duration Date : 31/12/2050

Nominal Capital : 780.000 Eur

Subscribed Capital : 780.000 Eur

Paid up Capital : 780.000 Eur

MEMBERS

Tosto

Walter

Born in Pescara

(PE)

on 07/08/1939

- Fiscal Code : TSTWTR39M07G482W

Residence :

Via

Colle Marino

, 81

- 65100

Pescara

(PE)

- IT -

Position	Since	Shares Amount	% Ownership
Director	29/01/2007
Board Chairman	29/01/2007

No Protests registered.

Tosto

Luca

Born in Pescara

(PE)

on 09/11/1971

- Fiscal Code : TSTLCU71S09G482F

Residence :

Via

Di Sotto

, 115

- 65100

Pescara

(PE)

- IT -

Position	Since	Shares Amount	% Ownership
Managing Director	31/01/1996
Director	29/01/2007

No Protests registered.

Tosto

Monica

Born in Pescara

(PE)

on 09/03/1970

- Fiscal Code : TSTMNC70C49G482Z

Residence :

Via

Calle Las Canas

, 9

Tenerife La Caleta (adeje)

- ES -

Position	Since	Shares Amount	% Ownership
Director	29/01/2007

No Protests registered.

Tosto

Emanuela

Born in Pescara

(PE)

on 01/02/1974

- Fiscal Code : TSTMNL74B41G482M

Residence :

Via

Di Sotto

, 115

- 65100

Pescara

(PE)

- IT -

Position	Since	Shares Amount	% Ownership
Director	29/01/2007

No Protests registered.

De Luca

Maria Luisa

Born in Pescara

(PE)

on 07/05/1946

- Fiscal Code : DLCMLS46E47G482A

Residence :

Via

Colle Marino

, 81

- 65100

Pescara

(PE)

- IT -

Position	Since	Shares Amount	% Ownership
Director	29/01/2007

No Protests registered.

Tosto

Catia

Born in Pescara

(PE)

on 16/06/1967

- Fiscal Code : TSTCTA67H56G482T

Residence :

Via

Tosto

, 16

- 65100

Pescara

(PE)

- IT -

Position	Since	Shares Amount	% Ownership
Director	29/01/2007

No Protests registered.

Fossataro

Giacomo

Born in Mantova

(MN)

on 27/07/1966

- Fiscal Code : FSSGCM66L27E897D

Residence :

Via

Menotti Guzzi

, 29

- 66100

Chieti

(CH)

- IT -

Position	Since	Shares Amount	% Ownership
Responsible technician

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.

TOSTO

WALTER

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
COMMER TOSTO DI TOSTO WALTER	Pescara (PE) - IT -	TSTWTR39M07G482W	Proprietor	-	Ceased
CONSORZIO COSTRUTTORI, MANUTENTORI ED INSTALLATORI IMPIANTI PRODUTTIVI	Ortona (CH) - IT -	01834060699	Managing Director	Active	Registered
CONSORZIO COSTRUTTORI, MANUTENTORI ED INSTALLATORI IMPIANTI PRODUTTIVI	Ortona (CH) - IT -	01834060699	Board Chairman	Active	Registered
TOSTO WALTER	Pescara (PE) - IT -	TSTWTR39M07G482W	Proprietor	-	Ceased
WTS IMMOBILIARE DI TOSTO WALTER E C. S.N.C.	Pescara (PE) - IT -	01614060687	Partner	Active	Registered
WTS-WALTER TOSTO - SERBATOI	Pescara (PE) - IT -		Proprietor	Dismiss	Ceased

TOSTO

LUCA

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
BOSCO INDUSTRIE MECCANICHE S.P.A.	Chieti (CH) - IT -	01596190692	Sole Director	-	Ceased
CONSORZIO COSTRUTTORI, MANUTENTORI ED INSTALLATORI IMPIANTI PRODUTTIVI	Ortona (CH) - IT -	01834060699	Managing Director	Active	Registered
CONSORZIO COSTRUTTORI, MANUTENTORI ED INSTALLATORI IMPIANTI PRODUTTIVI	Ortona (CH) - IT -	01834060699	Director	Active	Registered
CONSORZIO PARCO SCIENTIFICO E TECNOLOGICO D'ABRUZZO	L'Aquila (AQ) - IT -	01323880664	Director	Active	Registered
WTS IMMOBILIARE DI TOSTO WALTER E C. S.N.C.	Pescara (PE) - IT -	01614060687	Partner of unlimit. partnership	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
Tosto Luca	Pescara - IT -	TSTLCU71S09G482F		27,92
Tosto Monica	Tenerife La Caleta (adeje) - ES -	TSTMNC70C49G482Z		24,03
Tosto Emanuela	Pescara - IT -	TSTMNL74B41G482M		24,03
Tosto Catia	Pescara - IT -	TSTCTA67H56G482T		24,03

DIRECT PARTICIPATIONS

Company Style	Legal Seat	Fiscal Code	Owned Shares	% of Ownership	Share Status
Bosco Industrie Meccaniche S.p.a.	Chieti - IT -	01596190692	25.822 .Eur	25,00	Ceased
Serfina SpA	Chieti - IT -	01537370692	67.139 .Eur	1,04	Active
Consorzio Costruttori, Manutentori Ed Installatori Impianti Produttivi	Ortona - IT -	01834060699	3.098 .Eur	33,33	Active

STRUCTURE AND COMPANY ACTIVITY

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

-

Legal and operative seat

since 06/01/1984

in :

Via

Colle Marino

, 81

- 65100 -

Pescara

(PE)

- IT -

Trading Style: *** WALTER TOSTO S.P.A. ***

PHONE

: 0871/5801

-

Branch

(Factory )

since 06/01/1984

in :

Via

Erasmo Piaggio

, Loc. SCALO

- 66013 -

Chieti

(CH)

- IT -

PHONE

: 0871/5801

-

Branch

(Factory )

since 30/03/1985

in :

Via

Marvin Gelber

- 66013 -

Chieti

(CH)

- IT -

PHONE

: 0871560445

-

Branch

(Warehouse )

since 20/09/2007

in :

Strada Statale

529 Ofantina Km. 4,300

- 71042 -

Cerignola

(FG)

- IT -

Employees

: 268

Assistants

: 2

Fittings and Equipment

for a value of 14.311.000

Eur

Stocks

for a value of 39.446.500

Eur

Trade organization: direct or by agents.

The company sells in Italy and abroad.

The firm operates abroad as importer / exporter. .

To purchase foreign products the firm uses the following channels :

- trading companies

- direct orders to foreign companies

Products abroad are placed by :

- trading companies

- its own sales net-work

- its own agents

Import comes generally from the following nations:

- Spagna

- Francia

HISTORICAL INFORMATION AND/OR FIRM'S STATUS

Ex-Members / Ex-Positions

Di Luca

Gerardo

Born in Campli

on 16/05/1953

- Fiscal Code : DLCGRD53E16B515F

Residence :

Via

Roma

, 23

- 64025

Pineto

(TE)

- IT -

Position

Permanent Auditor

Casolani

Franco

Born in Teramo

on 16/05/1944

- Fiscal Code : CSLFNC44E16L103G

Residence :

Via

N. Dati

, 78

- 64100

Teramo

(TE)

- IT -

Position

Permanent Auditor

Tosto

Walter

Born in Pescara

on 07/08/1939

- Fiscal Code : TSTWTR39M07G482W

Residence :

Via

Colle Marino

, 81

- 65100

Pescara

(PE)

- IT -

Position

Sole Director

Board Chairman

Marcucci

Sandro

Born in Pescara

on 28/11/1967

- Fiscal Code : MRCSDR67S28G482J

Residence :

Contrada

Fonte Umano

, 106

- 65013

Citta' Sant'Angelo

(PE)

- IT -

Position

Temporary Auditor

Epifano

Antonio

Born in Pescara

on 16/01/1968

- Fiscal Code : PFNNTN68A16G482G

Residence :

Via

San Clemente

, 25

- 65020

Castiglione a Casauria

(PE)

- IT -

Position

Temporary Auditor

D'angelo

Pierluigi

Born in PESCARA

on 29/01/1978

- Fiscal Code : DNGPLG78A29G482H

Residence :

Via

Orientale

, 55

- 66030

Arielli

(CH)

- IT -

Position

Responsible technician

The firm absorbed by merging of

Bosco Industrie Meccaniche S.p.a.

Via

E. Piaggio

, 66100

, Chieti

(CH)

- IT -

Fiscal Code: 01596190692

Date

:

20/07/2007

Project of merging by taking over of

W.T.S. S.R.L.

Via

COLLE MARINO

, 81

, 65100

, Pescara

(PE)

- IT -

Fiscal Code: 00495440679

Date

Merging/Splitting-up Project :

16/04/2007

The firm succeeded to

wts-walter Tosto - Serbatoi

Via

Colli Innamorati

, 65100

, Pescara

(PE)

- IT -

Date

:

06/01/1984

PAYMENTS ANALYSIS

The average term of debts to suplliers is normal compared with that

of the sector.

PAYMENTS SCORE : ZZZZZ - 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
BANCA ADRIATICA DI CREDITO COO					7016	0

IMMOVABLES *

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

Immovable Type	Value
Real estates	14.060.069 .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 1984

During the last years, it recorded positive net results (r.o.e. 3,06% in 2006) and during the last financial year an increase in sales volume was registered (+23,16% in 2006).

The operating result in 2006 was positive (2,34%) and reflects the field's average.

The analysis shows a fair financial position as the indebtedness volume is acceptable (3,58) but with an increase as against the previous accounting period.

Financial indebdtedness is under control whereas debts to suppliers are frequent even if it still falls within the sector's average.

Even liquidity range appears to be not completely sufficient.

FINANCIAL DATA

Complete balance-sheet for the year as at

31/12/2006

(in Eur

x 1 )

Item Type	Amount	Source
Sales	38.828.174	filed balance sheet
Profit (Loss) for the period	595.845	filed balance sheet

Complete balance-sheet for the year as at

31/12/2005

(in Eur

x 1 )

Item Type	Amount	Source
Sales	31.525.265	filed balance sheet
Profit (Loss) for the period	824.699	filed balance sheet

Complete balance-sheet for the year as at

31/12/2004

(in Eur

x 1 )

Item Type	Amount	Source
Sales	33.878.732	filed balance sheet
Profit (Loss) for the period	805.436	filed balance sheet

Complete balance-sheet for the year as at

31/12/2003

(in Eur

x 1 )

Item Type	Amount	Source
Sales	26.993.413	filed balance sheet
Profit (Loss) for the period	1.502.455	filed balance sheet

Complete balance-sheet for the year as at

31/12/2002

(in Eur

x 1 )

Item Type	Amount	Source
Sales	33.248.825	filed balance sheet
Profit (Loss) for the period	823.118	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 )		37.656.636	36.724.712
. Intangible assets		1.379.102	1.396.863
. Tangible fixed assets		35.910.249	35.011.180
. . Land and buildings		14.060.069	14.259.007
. . Plants, Equipm.and Machinery		14.311.075	15.089.917
. Long-term Investments		367.285	316.669
. . Financial loans		367.285	316.669
. . Own shares
CURRENT ASSETS		60.989.611	35.786.725
. Stock		39.446.554	21.563.242
. Credits		20.852.257	13.176.826
. . Credits to clients		17.410.517	12.089.444
. . Other credits		3.441.740	1.087.382
. Short-term financial assets
. Liquid assets		690.800	1.046.657
ACCRUED INCOME-DEFERR. ASSETS		112.197	127.137
TOTAL ASSETS		98.758.444	72.638.574
.
LIABILITIES
NET WORTH		19.448.346	18.852.498
. Company's capital		780.000	780.000
. Reserves		18.072.501	17.247.799
. Reserves company's own shares
. Retained profits (losses)
. Profit (loss)		595.845	824.699
PROVISION CHARGES ACCOUNTS		83.631	85.989
STAFF TERM INDEMNITY		2.309.285	2.331.096
DEBTS		74.402.057	48.736.532
. Financial M/L terms		3.195.177	3.750.731
. . Financial M/L term banks		3.195.177	3.750.731
. . Financial M/L bonds
. . Other financial M/L debts
. Financial short-term debts		16.779.667	13.748.783
. . Financial short-term banks		14.517.667	11.486.783
. . Financial short-term bonds
. . Other financial short-term debts		2.262.000	2.262.000
. M/L term debts to suppliers		329.604	329.604
. Short-term debts to suppliers		23.162.727	19.205.656
. Sundry M/L debts		451.896	602.528
. Sundry short-term debts		30.482.986	11.099.230
ACCRUED COSTS DEFERR. LIABILITIES		2.515.125	2.632.459
TOTAL LIABILITIES		98.758.444	72.638.574
.
	PROFIT AND LOSS ACCOUNTS
OUTPUT VALUE		53.383.812	35.492.433
. Revenues from sales/services		38.828.174	31.525.265
. Change of stock (products)		13.461.185	3.009.197
OPERATING EXPENSES		51.069.992	33.518.171
. Purchasing expenses		31.712.524	13.789.436
. Change of stock (raw material)		-4.322.127	1.263.342
. Expenses from services		11.542.714	7.705.100
. Expenses from leasing		129.466	13.022
. General expenses/sundry charges		250.416	228.241
. Staff expenses		9.656.034	8.522.365
. Depreciation/Devaluation costs		2.100.965	1.996.665
FINANCIAL REVENUES (CHARGES)		-245.179	102.459
. Financial charges		-444.977
. Financial revenues		199.798	102.459
FINANCIAL ASSETS CORRECTION
EXTRAORDINARY FINANCIAL REVENUES (CHARGES)		-67.225	-43.167
PROFIT (LOSS) FOR THE PERIOD		2.001.416	2.033.554
TAX		1.405.571	1.208.855
CORRECT./ALLOCAT. FISCAL RULE
NET PROFIT (LOSS)		595.845	824.699

RATIOS	Item	O.V.	O.V.	as at 31/12/2006	as at 31/12/2005	Sector Average
Fixed assets ratio	Units	=> 1	l	0,68	0,70	1,97
Net Short-term indebtedness	Units	- 1	l	3,58	2,28	6,06
Current ratio	Units	=> 1	l	0,86	0,81	1,14
Acid Test Ratio-Liquidity Ratio	Units'	=> 1	l	0,30	0,32	0,93
Return on Sales	%		l	6,94	8,94	2,62
Average stock waiting period	dd		l	365,72	246,20	40,21
Credits to clients average term	dd		l	161,38	138,02	153,08
Debts to suppliers average term	dd		l	194,90	326,95	188,56
Net financial revenues/ charges incidence	%		l	- 0,63	0,32	- 1,03
Labour cost incidence	%		l	24,86	27,03	20,32

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:

158.600 .Eur.

MARKET / TERRITORY DATA

Population living in the province	:	307.974
Population living in the region	:	1.299.272
Number of families in the region	:	479.313

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

- per food products	:	448
- per non food products	:	1.525
- per energy consume	:	106

SECTOR DATA

The values are calculated on a base of 2.791 significant companies.

The companies cash their credits on an average of 153 dd.

The average duration of suppliers debts is about 188 dd.

The sector's profitability is on an average of 2,62%.

The labour cost affects the turnover in the measure of 20,32%.

Goods are held in stock in a range of 40 dd.

The difference between the sales volume and the resources used to realize it is about 1,24.

The employees costs represent the 20,40% 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 11.587 protested subjects are found; in the province they count to 2.682.

The insolvency index for the region is 0,90, while for the province it is 0,88.

Total Bankrupt companies in the province : 1.518.

Total Bankrupt companies in the region : 5.123.

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