MIRA INFORM REPORT

Report Date :

04.06.2008

IDENTIFICATION DETAILS

Name :	SMALTICERAM UNICER S.P.A.
Registered Office :	Via Della Repubblica, 10-12 ROTEGLIA, 42014 - Castellarano (RE)
Country :	Italy
Financials (as on) :	31.12.2006
Date of Incorporation :	10/02/1989
Legal Form :	Joint Stock Company
Line of Business :	Ceramic tile production. Production of ceramics for domestic and ornamental use.

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 -1.124.800
Status :	Very good
Payment Behaviour :	Regular
Litigation :	Clear

Name & ADDress

Smalticeram Unicer S.p.a.

Via Della Repubblica, 10-12 ROTEGLIA

42014 - Castellarano (RE) -IT-

SUMMARY

SMALTICERAM UNICER S.P.A.

Fiscal Code	:	01825810367
Legal Form	:	Joint stock company
Start of Activities	:	10/02/1989
Patrimonial Consistence	:	Over 2.500.000 Eur
Turnover Range	:	50.000.000/75.000.000 Eur
Number of Employees	:	from 131 to 150

CREDIT ANALYSIS

CREDIT OPINION	:	1.124.800 - Eur
Score	:	Risk low
Creditworthness Rate	:	Excellent
	:
		Financial/patrimonial analysis very good - Credit with very low risk

ACTIVITY

Ceramic tile production.

Production of ceramics for domestic and ornamental use.

LEGAL DATA

Legal Form : Joint stock company

Fiscal Code : 01825810367

Foreign Trade Reg. no. : RE006580 since 06/12/1991

Foreign Trade Reg. no. : 6580 of Reggio Emilia since 06/12/1991

Foreign Trade Reg. no. : 006580 of Reggio Emilia since 06/12/1991

Chamber of Commerce no. : 137695 of Ravenna

Chamber of Commerce no. : 181018 of Reggio Emilia since 17/05/1989

Firms' Register : RE033-18814 since 19/02/1996

V.A.T. Code : 01381170354

R. E. C. no. : 38348 of Reggio Emilia since 17/07/1997

Court : 18814 of Reggio Emilia since 26/04/1989

Foundation Date	: 02/03/1988
Establishment Date	: 02/03/1988
Start of Activities	: 10/02/1989
Legal Duration Date	: 31/12/2050
Nominal Capital	: 5.304.000	Eur
Subscribed Capital	: 5.304.000	Eur
Paid up Capital	: 5.304.000	Eur

MEMBERS

Pollini

Giovanni

Born in Sassuolo

(MO)

on 07/09/1958

- Fiscal Code : PLLGNN58P07I462W

Residence :

Via

Dorale

, 10

- 42014

Castellarano

(RE)

- IT -

Position	Since	Shares Amount	% Ownership
Director	29/06/2006
Managing Director	03/07/2006

No Protests registered.

Aure S.r.l.

- Fiscal Code : 02257240354

Position	Since	Shares Amount	% Ownership
Auditing company	06/07/2007

Giugni

Claudio

Born in Sassuolo

(MO)

on 08/09/1964

- Fiscal Code : GGNCLD64P08I462P

Residence :

Via

Belluno

, 6

- 41049

Sassuolo

(MO)

- IT -

Position	Since	Shares Amount	% Ownership
Director	29/06/2006
Managing Director	03/07/2006
Board Chairman	29/06/2006

No Protests registered.

Ovi

Giuseppe

Born in Sassuolo

(MO)

on 17/12/1958

- Fiscal Code : VOIGPP58T17I462S

Residence :

Piazzale

Liberta'

, 10

- 42014

Castellarano

(RE)

- IT -

Position	Since	Shares Amount	% Ownership
Director	29/06/2006
Managing Director	03/07/2006

No Protests registered.

Notari

Maria Carla

Born in Modena

(MO)

on 18/05/1959

- Fiscal Code : NTRMCR59E58F257M

Residence :

Via

Dorale

, 10

- 42014

Castellarano

(RE)

- IT -

Position	Since	Shares Amount	% Ownership
Director	29/06/2006

No Protests registered.

Prodi

Rita

Born in Sassuolo

(MO)

on 19/09/1966

- Fiscal Code : PRDRTI66P59I462O

Residence :

Via

Belluno

, 6

- 41049

Sassuolo

(MO)

- IT -

Position	Since	Shares Amount	% Ownership
Director	29/06/2006

No Protests registered.

Notari

Paola

Born in Modena

(MO)

on 18/09/1961

- Fiscal Code : NTRPLA61P58F257L

Residence :

Piazzale

Liberta'

, 10

- 42014

Castellarano

(RE)

- IT -

Position	Since	Shares Amount	% Ownership
Director	29/06/2006
Managing Director	03/07/2006

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.

POLLINI

GIOVANNI

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
UNICER - S.P.A.	Castellarano (RE) - IT -	01034630481	Chairman	-	Ceased
UNICER - S.P.A.	Castellarano (RE) - IT -	01034630481	Director	-	Ceased
UNICER - S.P.A.	Fiorano Modenese (MO) - IT -	01034630481	Chairman	Dismiss	Ceased

GIUGNI

CLAUDIO

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
IMMOBILIARE *CE.MO.S- S.R.L.	Vignola (MO) - IT -	00699670360	Sole Director	-	Ceased
IMMOBILIARE *CE.MO.S- S.R.L.	Vignola (MO) - IT -	00699670360	Liquidator	-	Ceased

OVI

GIUSEPPE

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
CONSORZIO EMILIA UTILITIES	Reggio Emilia (RE) - IT -	01995830351	Director	Dismiss	Registered
RG COSTRUZIONI S.R.L.	Castellarano (RE) - IT -	02324940358	Director	Active	Registered
RG COSTRUZIONI S.R.L.	Castellarano (RE) - IT -	02324940358	Board Chairman	Active	Registered
UNICER - S.P.A.	Castellarano (RE) - IT -	01034630481	Director	-	Ceased
UNICER - S.P.A.	Castellarano (RE) - IT -	01034630481	Procurator	-	Ceased
UNICER - S.P.A.	Castellarano (RE) - IT -	01034630481	Institor	-	Ceased
UNICER - S.P.A.	Castellarano (RE) - IT -	01034630481	Managing Director	-	Ceased
UNICER - S.P.A.	Fiorano Modenese (MO) - IT -	01034630481	Director	Dismiss	Ceased

NOTARI

PAOLA

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
IMMOBILIARE I.N.E. S.A.S. DI NOTARI MARIA CARLA E C.	Castellarano (RE) - IT -	00475280350	Limited Partner	-	Ceased
UNICER - S.P.A.	Castellarano (RE) - IT -	01034630481	Director	-	Ceased
UNICER - S.P.A.	Castellarano (RE) - IT -	01034630481	Managing Director	-	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
Smalticeram Unicer S.p.a.	Castellarano - IT -	01825810367	235.418 .Eur	4,43
Fidentia S.R.L.	Reggio Emilia - IT -	01395500356	433.102 .Eur	8,16
Notari Maria Carla	Castellarano - IT -	NTRMCR59E58F257M	.Eur	50,00
Prodi Rita	Sassuolo - IT -	PRDRTI66P59I462O	1.304.238 .Eur	24,58
PALAZZI ALDEGONDA EREDI	Sassuolo - IT -	PLZLGN20B52A001O	18 .Eur
RIVI ARCHIMEDE EREDI	Sassuolo - IT -	RVIRHM39L15A001Z	3 .Eur
GUIDETTI SANTINA	Sassuolo - IT -	GDTSTN32M69A586L	12.660 .Eur	0,23
Notari Paola	Castellarano - IT -	NTRPLA61P58F257L	.Eur	50,00

DIRECT PARTICIPATIONS

Company Style	Legal Seat	Fiscal Code	Owned Shares	% of Ownership	Share Status
UNICER - S.P.A.	Fiorano Modenese - IT -	01034630481		100,00	Ceased
Smalticeram Unicer S.p.a.	Castellarano - IT -	01825810367	235.418 .Eur	4,43	Active
CONSORZIO REGGIO RICERCHE S.R.L. ABBREVIATO IN CRR S.R.L.		01938530357	1.000 .Eur	0,67	Active

STRUCTURE AND COMPANY ACTIVITY

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

-

Legal and operative seat

since 10/02/1989

in :

Via

Della Repubblica

, 10-12 Loc. ROTEGLIA

- 42014 -

Castellarano

(RE)

- IT -

PHONE

: 0536/864811

-

Branch

(Workshop )

since 15/07/1996

until 10/02/1989

in :

Via

De Crescenzi

, 30/32

- 48018 -

Faenza

(RA)

- IT -

Employees

: 147

Fittings and Equipment

for a value of 2.442.000

Eur

Stocks

for a value of 6.483.500

Eur

Furniture and fittings

for a value of 51.645

Eur

Vehicles

for a value of 242.734

Eur

HISTORICAL INFORMATION AND/OR FIRM'S STATUS

Company Style modifications

Former Style	New Style	Changement Date
Ashoo S.p.A.		30/09/1989

Ex-Members / Ex-Positions

Lugli Mario

Born in FORMIGINE

on 11/10/1920

- Fiscal Code : LGLMRA20R11D711R

Residence :

Via

VICENZA

, 9

- 41049

Sassuolo

(MO)

- IT -

Position

Chairman

Director

Managing Director

Board Chairman

Notari

Antonio

Born in Sassuolo

on 04/10/1926

- Fiscal Code : NTRNTN26R04I462N

Fiscal residence :

Piazza

Risorgimento

, 9

- 41049

Sassuolo

(MO)

- IT -

Position

Sole Director

Fontanesi

Fabrizio

Born in Carpi

on 26/08/1967

- Fiscal Code : FNTFRZ67M26B819V

Residence :

Via

Galilei

, 2/A

- 42015

Correggio

(RE)

- IT -

Position

Temporary Auditor

NOTARI

PAOLA

Born in MODENA

on 18/09/1961

- Fiscal Code : NTRPLA61P58C141L

Residence :

Piazzale

LIBERTA'

, 10

- 42014

Castellarano

(RE)

- IT -

Position

Director

Managing Director

Pattacini

Silvia

Born in MONTECCHIO EMILIA

on 26/03/1973

- Fiscal Code : PTTSLV73C66F463W

Residence :

Via

Belfiore

, 6

- 42100

Reggio Emilia

(RE)

- IT -

Position

Temporary Auditor

The firm absorbed by merging of

UNICER - S.P.A.

Via

MARZABOTTO

, 16

, 41042

, Fiorano Modenese

(MO)

- IT -

Fiscal Code: 01034630481

Date

:

22/01/1997

The firm absorved

UNICER - S.P.A.

Via

MARZABOTTO

, 16

, 41042

, Fiorano Modenese

(MO)

- IT -

Fiscal Code: 01034630481

Date

:

22/01/1997

Project of merging by taking over of

UNICER - S.P.A.

Via

MARZABOTTO

, 16

, 41042

, Fiorano Modenese

(MO)

- IT -

Fiscal Code: 01034630481

Date

Merging/Splitting-up Project :

31/05/1996

The firm absorved

COLORIFICIO SMALTICERAM - S.P.A.

Via

Della Repubblica

, 12

, 42014

, Castellarano

(RE)

- IT -

Fiscal Code: 00149470353

Date

:

30/09/1989

The firm absorved

COGES S.P.A.

, CASTELLARANO

- IT -

Date

:

30/09/1989

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	1.139.785 .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 1989.

Under an economic point of view, profits were registered during the last years with a r.o.e. of 5,37% in 2006 with a good increase in turnover (+24,22% in 2006 compared to 2005 and +8,01% in 2005 compared to 2004).

The return on Investment in the last financial year was positive (6,09%) and in line with the sector's average.

The company has an excellent net worth if compared to its debts, with a low indebtedness (0,53) but slighlty increasing.

The company does not exceed in bank credits; payments average period is instead slightly high (117,43 gg.) even if it is lower than the sector's average.

The available funds are good.

FINANCIAL DATA

Complete balance-sheet for the year as at

31/12/2006

(in Eur

x 1 )

Item Type	Amount	Source
Sales	57.008.427	filed balance sheet
Profit (Loss) for the period	2.109.074	filed balance sheet

Complete balance-sheet for the year as at

31/12/2005

(in Eur

x 1 )

Item Type	Amount	Source
Sales	45.890.174	filed balance sheet
Profit (Loss) for the period	333.476	filed balance sheet

Complete balance-sheet for the year as at

31/12/2004

(in Eur

x 1 )

Item Type	Amount	Source
Sales	42.486.882	filed balance sheet
Profit (Loss) for the period	345.434	filed balance sheet

Complete balance-sheet for the year as at

31/12/2003

(in Eur

x 1 )

Item Type	Amount	Source
Sales	36.008.765	filed balance sheet
Profit (Loss) for the period	376.540	filed balance sheet

Complete balance-sheet for the year as at

31/12/2002

(in Eur

x 1 )

Item Type	Amount	Source
Sales	36.401.917	filed balance sheet
Profit (Loss) for the period	1.420.354	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 )		23.937.523	23.357.757
. Intangible assets		130.443	187.266
. Tangible fixed assets		4.869.227	4.569.291
. . Land and buildings		1.139.785	1.175.006
. . Plants, Equipm.and Machinery		2.441.887	2.322.250
. Long-term Investments		18.937.853	18.601.200
. . Financial loans		18.250.965	17.914.312
. . Own shares		686.888	686.888
CURRENT ASSETS		39.444.520	37.890.042
. Stock		6.483.394	6.065.470
. Credits		29.477.043	26.520.009
. . Credits to clients		28.267.329	24.981.919
. . Other credits		1.209.714	1.538.090
. Short-term financial assets		2.486.772	2.486.772
. Liquid assets		997.311	2.817.791
ACCRUED INCOME-DEFERR. ASSETS		699.379	726.402
TOTAL ASSETS		64.081.422	61.974.201
.
LIABILITIES
NET WORTH		39.248.066	37.138.996
. Company's capital		5.304.000	5.304.000
. Reserves		31.148.104	30.814.632
. Reserves company's own shares		686.888	686.888
. Retained profits (losses)
. Profit (loss)		2.109.074	333.476
PROVISION FOR RISKS AND LOSSES		746.962	1.253.224
SEVERANCE INDEMNITY FUND		2.101.688	1.922.589
DEBTS		21.959.978	21.649.151
. Financial M/L terms
. . Financial M/L term banks
. . Financial M/L bonds
. . Other financial M/L debts
. Financial short-term debts		5.409.331	5.581.210
. . Financial short-term banks		5.409.331	5.581.210
. . Financial short-term bonds
. . Other financial short-term debts
. M/L term debts to suppliers
. Short-term debts to suppliers		14.383.230	13.962.387
. Sundry M/L debts
. Sundry short-term debts		2.167.417	2.105.554
ACCRUED EXPENSE		24.728	10.241
TOTAL LIABILITIES		64.081.422	61.974.201
PROFIT AND LOSS ACCOUNTS
OUTPUT VALUE		58.761.595	47.134.703
. Revenues from sales/services		57.008.427	45.890.174
. Change of stock (products)		1.028.299	282.160
OPERATING EXPENSES		54.856.892	46.710.894
. Purchasing expenses		33.476.503	27.080.066
. Change of stock (raw material)		580.819	-562.295
. Expenses from services		8.460.085	8.386.108
. Expenses from leasing		2.152.204	2.072.031
. General expenses/sundry charges		112.705	329.793
. Staff expenses		8.708.408	7.929.817
. Depreciation/Devaluation costs		1.366.168	1.475.374
FINANCIAL REVENUES (CHARGES)		37.608	828.955
. Financial charges		-346.917	156.793
. Financial revenues		384.525	672.162
FINANCIAL ASSETS CORRECTION
EXTRAORDINARY FINANCIAL REVENUES (CHARGES)		517	17.131
PROFIT (LOSS) FOR THE PERIOD		3.942.828	1.269.895
TAX		1.833.754	936.419
CORRECT./ALLOCAT. FISCAL RULE
NET PROFIT (LOSS)		2.109.074	333.476

RATIOS

	Item	O.V.	O.V.	as at 31/12/2006	as at 31/12/2005	Sector Average
Fixed assets ratio	Units	=> 1	l	1,72	1,67	1,50
Net Short-term indebtedness	Units	- 1	l	0,53	0,50	2,87
Current ratio	Units	=> 1	l	1,79	1,75	1,23
Acid Test Ratio-Liquidity Ratio	Units	=> 1	l	1,50	1,47	0,84
Return on Sales	%		l	6,09	3,94	4,21
Average stock waiting period	dd		l	40,93	47,55	72,08
Credits to clients average term	dd		l	178,48	195,94	144,00
Debts to suppliers average term	dd		l	117,43	133,88	155,23
Net financial revenues/ charges incidence	%		l	0,06	1,80	- 1,31
Labour cost incidence	%		l	15,27	17,27	23,14

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:

1.124.800 .Eur.

MARKET / TERRITORY DATA

Population living in the province	:	487.003
Population living in the region	:	4.151.369
Number of families in the region	:	1.748.359

Monthly family expences 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 453 significant companies.

The companies cash their credits on an average of 144 dd.

The average duration of suppliers debts is about 155 dd.

The sector's profitability is on an average of 4,21%.

The labour cost affects the turnover in the measure of 23,14%.

Goods are held in stock in a range of 72 dd.

The difference between the sales volume and the resources used to realize it is about 0,99.

The employees costs represent the 23,19% 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 18.860 protested subjects are found; in the province they count to 1.775.

The insolvency index for the region is 0,46, while for the province it is 0,38.

Total Bankrupt companies in the province : 1.365.

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