MIRA INFORM REPORT

Report Date :

08.01.2008

IDENTIFICATION DETAILS

Name :	ELETTROCHIMICA VALLE STAFFORA SPA
Registered Office :	Via Oslavia, 17 20134- Milano(MI)
Country :	Italy
Financials (as on) :	31.12.2006
Date of Incorporation :	31.12.1974
Legal Form :	Joint Stock Company
Line of Business :	Wholesale trade of chemical products, animal and vegetal derived industrial oils, raw rubber.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

ANALYSIS

Elettrochimica Valle Staffora Spa

Via Oslavia, 17

20134 - Milano (MI) -IT-

SUMMARY

Fiscal Code	:	00080290182
Legal Form	:	Joint stock company
Start of Activities	:	19/04/2005
Patrimonial Consistence	:	Over 2.500.000 Eur
Turnover Range	:	35.000.000/50.000.000 Eur
Number of Employees	:	from 26 to 35

CREDIT ANALYSIS

CREDIT OPINION	:	524.700 - Eur
Score	:	Risk normal
Creditworthness Rate	:	Good
		Under the financial aspect a certain balance is reported which leads
		to a credit with a very limited risk.

ACTIVITY

Wholesale trade of chemical products, animal and vegetal derived industrial oils, raw rubber.

Wholesale of industrial chemical products.

Wholesale of soaps, detergents and cleaning poducts.

LEGAL DATA

Legal Form : Joint stock company

Fiscal Code : 00080290182

Foreign Trade Reg. no. : 7746 of Pavia since 28/01/1992

Chamber of Commerce no. : 1743782 of Milano since 26/04/2005

Chamber of Commerce no. : 137289 of Pavia since 01/08/1975

Firms' Register : PV182-1571 since 19/02/1996

V.A.T. Code : 00080290182

R. E. C. no. : 0015561 of Pavia since 05/06/1975

Court : 1571 of Voghera

Foundation Date	: 31/12/1974
Establishment Date	: 31/12/1974
Start of Activities	: 19/04/2005
Legal Duration Date	: 31/12/2050
Nominal Capital	: 1.650.000	Eur
Subscribed Capital	: 1.650.000	Eur
Paid up Capital	: 1.650.000	Eur

MEMBERS

Deserti

Olindo

Born in Godiasco

(PV)

on 15/10/1947

- Fiscal Code : DSRLND47R15E072S

Residence :

Via

Vittorio Emanuele

, 68

- 27052

Godiasco

(PV)

- IT -

Position	Since	Shares Amount	% Ownership
Managing Director	19/04/2005
Director	19/04/2005
Board Chairman	19/04/2005

No Protests registered.

Morelli

Marisa

Born in Voghera

(PV)

on 12/02/1937

- Fiscal Code : MRLMRS37B52M109E

Residence :

Corso

Xxvii Marzo

, 80

- 27058

Voghera

(PV)

- IT -

Position	Since	Shares Amount	% Ownership
Director	19/04/2005
Managing Director	18/07/2007

No Protests registered.

Martini

Maurizio

Born in Novi Ligure

(AL)

on 26/01/1963

- Fiscal Code : MRTMRZ63A26F965T

Residence :

Salita

Alla Bricchetta

, 2/D

- 15067

Novi Ligure

(AL)

- IT -

Position	Since	Shares Amount	% Ownership
Managing Director	18/07/2007
Director	29/09/2006

No Protests registered.

Contardi

Rosangela

Born in Voghera

(PV)

on 17/11/1958

- Fiscal Code : CNTRNG58S57M109H

Residence :

Via

Carlo Alberto

, 41

- 27058

Voghera

(PV)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney with special power	18/07/2007

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.

DESERTI

OLINDO

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
DESERTI OLINDO E DESERTI LUIGI	Godiasco (PV) - IT -	00452660186	Director	-	Ceased
DESERTI OLINDO E DESERTI LUIGI	Godiasco (PV) - IT -	00452660186	Partner	-	Ceased
GHEZZI SERVICE - S.R.L.	Rivanazzano (PV) - IT -	06300030159	Director	Active	Registered
IL PINO - SOCIETA' SEMPLICE	Voghera (PV) - IT -	00668680184	Partner	Active	Registered
MLD - PRODOTTI CHIMICI - S.R.L.	Voghera (PV) - IT -	01712760188	Managing Director	Active	Registered
MLD - PRODOTTI CHIMICI - S.R.L.	Voghera (PV) - IT -	01712760188	Board Chairman	Active	Registered

MARTINI

MAURIZIO

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
GHEZZI SERVICE - S.R.L.	Rivanazzano (PV) - IT -	06300030159	Managing Director	Active	Registered
GHEZZI SERVICE - S.R.L.	Rivanazzano (PV) - IT -	06300030159	Board Chairman	Active	Registered
MARTINI MAURIZIO	Pozzolo Formigaro (AL) - IT -	MRTMRZ63A26F965T	Proprietor	-	Ceased
MLD - PRODOTTI CHIMICI - S.R.L.	Voghera (PV) - IT -	01712760188	Director	Active	Registered
OMNIACHEM SRL	Voghera (PV) - IT -	01953050182	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
Deserti Olindo	Godiasco - IT -	DSRLND47R15E072S	1.374.990 .Eur	83,33
Mld - Prodotti Chimici - S.r.l.	Voghera - IT -	01712760188	275.010 .Eur	16,66

DIRECT PARTICIPATIONS

Company Style	Legal Seat	Fiscal Code	Owned Shares	% of Ownership	Share Status
Mld - Prodotti Chimici - S.r.l.	Voghera - IT -	01712760188	6.630 .Eur	10,00	Active

STRUCTURE AND COMPANY ACTIVITY

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

-

Legal and operative seat

in :

Via

Oslavia

, 17

- 20134 -

Milano

(MI)

- IT -

PHONE

: 0383/945511

-

Branch

(Administrative office )

since 19/04/2005

in :

Via

Tortona

, 73

- 27055 -

Rivanazzano

(PV)

- IT -

Employees

: 35

Fittings and Equipment

for a value of 434.000

Eur

Stocks

for a value of 3.525.000

Eur

Vehicles

for a value of 103.291

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 :

- direct orders from foreign companies

Import comes generally from the following nations:

- Belgio

Export is mainly towards:

- Gran Bretagna

- Somalia

- Islanda

HISTORICAL INFORMATION AND/OR FIRM'S STATUS

Ex-Members / Ex-Positions

Deserti

Olindo

Born in Godiasco

on 15/10/1947

- Fiscal Code : DSRLND47R15E072S

Residence :

Via

Vittorio Emanuele

, 68

- 27052

Godiasco

(PV)

- IT -

Position

Chairman

Chairman and Managing Director

Pelizzari

Annamaria

Born in MILANO

on 20/06/1945

- Fiscal Code : PLZNMR45H60F205Q

Residence :

Via

ROMA

, 19

- 20090

Segrate

(MI)

- IT -

Position

Director

Former seats

-

Branch

(Sales office )

since 20/10/2003

Via

OSLAVIA

- 20134

- MILANO

(MI)

- IT -

PAYMENTS ANALYSIS

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

one.

PAYMENTS SCORE : ZZZZZ - 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	2.912.195 .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 some years ago (2005).

Under an economic point of view, profits were registered during the last years with a r.o.e. of 21,88% in 2006 with a remarkable upward trend (+17,01% on 2006 compared to 2005 and +23,02% on 2005 compared to 2004).

The operating result in 2006 was positive (10,29%) and in line with the sector's average.

The financial status of the company is fairly balanced with an indebtedness level of 3,12 with an improving trend as on the decrease.

The exposure towards banks is slightly high, the recourse to suppliers' credit is limited below the sector's average.

The liquidity level is positive (1,1).

FINANCIAL DATA

Complete balance-sheet for the year as at

31/12/2006

(in Eur

x 1 )

Item Type	Amount	Source
Sales	41.808.234	filed balance sheet
Profit (Loss) for the period	1.124.897	filed balance sheet

Complete balance-sheet for the year as at

31/12/2005

(in Eur

x 1 )

Item Type	Amount	Source
Sales	35.727.819	filed balance sheet
Profit (Loss) for the period	583.459	filed balance sheet

Complete balance-sheet for the year as at

31/12/2004

(in Eur

x 1 )

Item Type	Amount	Source
Sales	29.040.794	filed balance sheet
Profit (Loss) for the period	630.798	filed balance sheet

Complete balance-sheet for the year as at

31/12/2003

(in Eur

x 1 )

Item Type	Amount	Source
Sales	23.425.333	filed balance sheet
Profit (Loss) for the period	308.499	filed balance sheet

Complete balance-sheet for the year as at

31/12/2002

(in Eur

x 1 )

Item Type	Amount	Source
Sales	22.833.820	filed balance sheet
Profit (Loss) for the period	378.806	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 )		4.001.458	3.781.200
. Intangible assets		11.595	26.264
. Tangible fixed assets		3.387.000	3.152.073
. . Land and buildings		2.912.195	2.429.625
. . Plants, Equipm.and Machinery		433.858	395.109
. Long-term Investments		602.863	602.863
. . Financial loans		40	40
. . Own shares		602.823	602.823
CURRENT ASSETS		17.718.199	16.314.524
. Stock		3.525.036	3.169.147
. Credits		14.190.918	13.144.008
. . Credits to clients		14.169.889	13.037.150
. . Other credits		21.029	106.858
. Short-term financial assets
. Liquid assets		2.245	1.369
ACCRUED INCOME-DEFERR. ASSETS		112.577	174.758
TOTAL ASSETS		21.832.234	20.270.482
.
LIABILITIES
NET WORTH		5.139.563	4.326.516
. Company's capital		1.650.000	1.650.000
. Reserves		1.768.851	1.497.242
. Reserves company's own shares		595.815	595.815
. Retained profits (losses)
. Profit (loss)		1.124.897	583.459
PROVISION CHARGES ACCOUNTS		6.174	6.140
STAFF TERM INDEMNITY		461.895	438.610
DEBTS		16.068.361	15.361.830
. Financial M/L terms			1.680.254
. . Financial M/L term banks			1.680.254
. . Financial M/L bonds
. . Other financial M/L debts
. Financial short-term debts		6.095.456	5.311.393
. . Financial short-term banks		6.095.456	5.311.393
. . Financial short-term bonds
. . Other financial short-term debts
. M/L term debts to suppliers
. Short-term debts to suppliers		9.197.092	7.907.470
. Sundry M/L debts
. Sundry short-term debts		775.813	462.713
ACCRUED COSTS DEFERR. LIABILITIES		156.241	137.386
TOTAL LIABILITIES		21.832.234	20.270.482
.
	PROFIT AND LOSS ACCOUNTS
OUTPUT VALUE		41.898.173	35.801.104
. Revenues from sales/services		41.808.234	35.727.819
. Change of stock (products)
OPERATING EXPENSES		39.650.349	34.520.141
. Purchasing expenses		34.028.677	29.153.265
. Change of stock (raw material)		-336.262	-256.188
. Expenses from services		3.258.550	2.868.631
. Expenses from leasing		148.540	209.210
. General expenses/sundry charges		168.570	217.702
. Staff expenses		2.041.842	1.976.562
. Depreciation/Devaluation costs		340.432	350.959
FINANCIAL REVENUES (CHARGES)		-211.652	-171.137
. Financial charges		-214.096	-175.341
. Financial revenues		2.444	4.204
FINANCIAL ASSETS CORRECTION
EXTRAORDINARY FINANCIAL REVENUES (CHARGES)			39.263
PROFIT (LOSS) FOR THE PERIOD		2.036.172	1.149.089
TAX		911.275	565.630
CORRECT./ALLOCAT. FISCAL RULE
NET PROFIT (LOSS)		1.124.897	583.459

RATIOS	Item	O.V.	O.V.	as at 31/12/2006	as at 31/12/2005	Sector Average
Fixed assets ratio	Units	=> 1	l	1,39	1,70	2,16
Net Short-term indebtedness	Units	- 1	l	3,12	3,16	4,74
Current ratio	Units	=> 1	l	1,10	1,19	1,14
Acid Test Ratio-Liquidity Ratio	Units	=> 1	l	0,88	0,96	0,92
Return on Sales	%		l	3,50	2,61	1,69
Average stock waiting period	dd		l	30,34	31,93	37,56
Credits to clients average term	dd		l	122,00	131,36	111,16
Debts to suppliers average term	dd		l	88,41	88,30	111,43
Net financial revenues/ charges incidence	%		l	- 0,50	- 0,47	- 0,85
Labour cost incidence	%		l	4,88	5,53	4,61

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:

524.700 .Eur.

MARKET / TERRITORY DATA

Population living in the province	:	3.839.216
Population living in the region	:	9.393.092
Number of families in the region	:	3.858.736

Monthly family expences 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 1.450 significant companies.

The companies cash their credits on an average of 111 dd.

The average duration of suppliers debts is about 111 dd.

The sector's profitability is on an average of 1,69%.

The labour cost affects the turnover in the measure of 4,61%.

Goods are held in stock in a range of 37 dd.

The difference between the sales volume and the resources used to realize it is about 1,60.

The employees costs represent the 4,69% of the production costs.

STATISTICAL DETRIMENTAL DATA

Statistcally the trade activity shows periods of crisis.

The area is statistically considered lowly risky.

In the region 50.886 protested subjects are found; in the province they count to 24.765.

The insolvency index for the region is 0,55, while for the province it is 0,66.

Total Bankrupt companies in the province : 22.523.

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