MIRA INFORM REPORT

Report Date :

14.03.2008

IDENTIFICATION DETAILS

Name :	PANZARASA S.P.A.
Registered Office :	Viale Petrarca, 11
Country :	Italy
Financials (as on) :	31.12.2006
Date of Incorporation :	11.02.1972
Com. Reg. No.:	PV177-2289
Legal Form :	Joint Stock Company
Line of Business :	Wholesaler of Hides, Skins and Leather.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	EUR 199.900
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

name & address

Panzarasa S.p.a.

Viale Petrarca, 11

27029 - Vigevano (PV) -IT-

SUMMARY

Fiscal Code	:	00180850182
Legal Form	:	Joint stock company
Start of Activities	:	19/06/1975
Patrimonial Consistence	:	2.000.000 Eur
Turnover Range	:	7.750.000/9.000.000 Eur
Number of Employees	:	from 16 to 25

CREDIT ANALYSIS

CREDIT OPINION	:	199.900 - 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 of hides, skins and leather.

Wholesale of footwear and accessories.

Wholesale of leather goods.

LEGAL DATA

Legal Form : Joint stock company

Fiscal Code : 00180850182

Foreign Trade Reg. no. : PV005385 since 23/12/1991

Foreign Trade Reg. no. : 5385 of Pavia since 23/12/1991

Foreign Trade Reg. no. : 005385 of Pavia since 23/12/1991

Chamber of Commerce no. : 1355641 of Milano

Chamber of Commerce no. : 131632 of Pavia since 03/01/1973

Chamber of Commerce no. : 249117 of Udine

Firms' Register : PV177-2289 since 19/02/1996

V.A.T. Code : 00180850182

R. E. C. no. : 15605 of Pavia since 19/06/1975

R. E. C. no. : 0015605 of Pavia since 19/06/1975

Court : 2289 of Vigevano

Foundation Date	: 11/02/1972
Establishment Date	: 11/12/1972
Start of Activities	: 19/06/1975
Legal Duration Date	: 31/12/2050
Nominal Capital	: 631.800	Eur
Subscribed Capital	: 631.800	Eur
Paid up Capital	: 631.800	Eur

MEMBERS

Pastormerlo

Franco

Born in Gambolo'

(PV)

on 29/06/1928

- Fiscal Code : PSTFNC28H29D901J

Residence :

Via

Del Carmine

, 21

- 27029

Vigevano

(PV)

- IT -

Position	Since	Shares Amount	% Ownership
Director	22/05/2006

No Protests registered.

Panzarasa

Riccardo

Born in Milano

(MI)

on 17/12/1948

- Fiscal Code : PNZRCR48T17F205U

Residence :

Corso

Pavia

, 54

- 27029

Vigevano

(PV)

- IT -

Position	Since	Shares Amount	% Ownership
Procurator	27/05/1988
Managing Director	30/05/2006

No Protests registered.

Panzarasa

Elia Virginia

Born in Vigevano

(PV)

on 17/06/1946

- Fiscal Code : PNZLRG46H57L872E

Residence :

Corso

Genova

, 84

- 27029

Vigevano

(PV)

- IT -

Position	Since	Shares Amount	% Ownership
Procurator	22/07/1996
Board Chairman	30/05/2006

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.

PANZARASA

RICCARDO

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
CAFE'NOIR S.R.L.	San Miniato (PI) - IT -	01863570501	Director	Active	Registered
TOSCANA CALZATURE S.P.A.	San Miniato (PI) - IT -	04313800486	Vice-Chairman	Dismiss	Registered
TOSCANA CALZATURE S.P.A.	San Miniato (PI) - IT -	04313800486	Director	Active	Registered
TOSCANA CALZATURE S.P.A.	San Miniato (PI) - IT -	04313800486	Assistant board Chairman	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
Panzarasa Riccardo	Vigevano - IT -	PNZRCR48T17F205U	132.678 .Eur	21,00
Panzarasa Elia Virginia	Vigevano - IT -	PNZLRG46H57L872E	157.950 .Eur	25,00
BOCCA CORSICO PICCOLINO ELISABETTA		BCCLBT82P48L872W	30.537 .Eur	4,83
BOCCA CORSICO PICCOLINO LUIGI		BCCLGU45B03L872M	30.537 .Eur	4,83
BOCCA CORSICO PICCOLINO NICOLA		BCCNCL81M27L872F	30.537 .Eur	4,83
PANZAROSA GIOIA		PNZGIO43P48D925Z	91.611 .Eur	14,50
PANZAROSA INES		PNZNSI39R54L872W	157.950 .Eur	25,00

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

in :

Viale

Petrarca

, 11

- 27029 -

Vigevano

(PV)

- IT -

PHONE

: 0381/691073

-

Branch

(Administrative office )

since 01/03/2003

in :

Via

Stiria

, 45/28

- 33100 -

Udine

(UD)

- IT -

Employees

: 21

Fittings and Equipment

for a value of 43.000

Eur

Stocks

for a value of 1.561.000

Eur

Furniture and fittings

for a value of 30.987

Eur

Vehicles

for a value of 77.468

Eur

Trade organization: direct or by agents.

Sales area on a national scale.

The firm operates abroad as importer / exporter. .

To purchase foreign products the firm uses the following channels :

- direct orders to foreign companies

Export represents from 20% to 50% of the global turnover.

Products abroad are placed by :

- direct orders from foreign companies

Import comes generally from the following nations:

- Spagna

- Germania

- Olanda

- Portogallo

Export is mainly towards:

- Gran Bretagna

- Islanda

HISTORICAL INFORMATION AND/OR FIRM'S STATUS

Ex-Members / Ex-Positions

Panzarasa

Santino

Born in Garlasco

on 12/08/1908

- Fiscal Code : PNZSTN08M12D925A

Fiscal residence :

Vicolo

Cilea

, 17

- 27029

Vigevano

(PV)

- IT -

Position

Sole Director

PAYMENTS ANALYSIS

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

one.

PAYMENTS SCORE : ZZZZZ - No insolvency

CREDIT REVOLVING

The subject of inquiry has been monitored by our company:

During the last Month : n. 1 times.

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 Intesa
(Ag. Vigevano)

IMMOVABLES *

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

None reported in the name of the Firm.

FINANCIAL AND ECONOMICAL ANALYSIS

The company is active since 1975

Under an economic point of view, profits were registered during the last years with a r.o.e. of 0,8% in 2006 thanks to a progressive increase in turnover (+8,92% in 2006 compared to 2005 and +14,34% in 2005 compared to 2004).

The return on Investment in the last financial year was positive (4,74%) and reflects the field's average.

The company has an excellent net worth if compared to its debts, with a low indebtedness (0,57) but slighlty increasing.

Bank exsposure is limited and the suppliers' credit is modest too, 20,34 gg. is the 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	7.844.870	filed balance sheet
Profit (Loss) for the period	14.607	filed balance sheet

Complete balance-sheet for the year as at

31/12/2005

(in Eur

x 1 )

Item Type	Amount	Source
Sales	7.202.316	filed balance sheet
Profit (Loss) for the period	13.877	filed balance sheet

Complete balance-sheet for the year as at

31/12/2004

(in Eur

x 1 )

Item Type	Amount	Source
Sales	6.298.493	filed balance sheet
Profit (Loss) for the period	30.758	filed balance sheet

Complete balance-sheet for the year as at

31/12/2003

(in Eur

x 1 )

Item Type	Amount	Source
Profit (Loss) for the period	68.154	filed balance sheet

Complete balance-sheet for the year as at

31/12/2002

(in Eur

x 1 )

Item Type	Amount	Source
Sales	7.725.678	filed balance sheet
Profit (Loss) for the period	84.182	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 )		130.725	163.100
. Intangible assets		56.498	47.814
. Tangible fixed assets		74.227	115.286
. . Land and buildings
. . Plants, Equipm.and Machinery		43.160	54.639
. Long-term Investments
. . Financial loans
. . Own shares
CURRENT ASSETS		3.270.293	2.966.404
. Stock		1.560.937	1.530.572
. Credits		1.652.898	1.425.240
. . Credits to clients		1.303.178	1.022.716
. . Other credits		349.720	402.524
. Short-term financial assets
. Liquid assets		56.458	10.592
ACCRUED INCOME-DEFERR. ASSETS		10.372	15.500
TOTAL ASSETS		3.411.390	3.145.004
.
LIABILITIES
NET WORTH		1.813.619	1.799.013
. Company's capital		631.800	631.800
. Reserves		1.167.212	1.153.336
. Reserves company's own shares
. Retained profits (losses)
. Profit (loss)		14.607	13.877
PROVISION FOR RISKS AND LOSSES			916
SEVERANCE INDEMNITY FUND		378.911	357.297
DEBTS		1.106.172	916.357
. Financial M/L terms
. . Financial M/L term banks
. . Financial M/L bonds
. . Other financial M/L debts
. Financial short-term debts		551.900	364.892
. . Financial short-term banks		551.900	364.892
. . Financial short-term bonds
. . Other financial short-term debts
. M/L term debts to suppliers
. Short-term debts to suppliers		387.227	386.110
. Sundry M/L debts
. Sundry short-term debts		167.045	165.355
ACCRUED EXPENSE		112.688	71.421
TOTAL LIABILITIES		3.411.390	3.145.004
.
	PROFIT AND LOSS ACCOUNTS
OUTPUT VALUE		7.886.096	7.252.952
. Revenues from sales/services		7.844.870	7.202.316
. Change of stock (products)
OPERATING EXPENSES		7.724.271	7.087.195
. Purchasing expenses		6.060.040	5.789.603
. Change of stock (raw material)		-30.365	-236.918
. Expenses from services		751.901	610.584
. Expenses from leasing		40.561	41.497
. General expenses/sundry charges		44.542	18.243
. Staff expenses		780.501	778.818
. Depreciation/Devaluation costs		77.091	85.368
FINANCIAL REVENUES (CHARGES)		-61.060	-30.766
. Financial charges		-61.975	-31.111
. Financial revenues		915	345
FINANCIAL ASSETS CORRECTION
EXTRAORDINARY FINANCIAL REVENUES (CHARGES)			-35.255
PROFIT (LOSS) FOR THE PERIOD		100.765	99.736
TAX		86.158	85.859
CORRECT./ALLOCAT. FISCAL RULE
NET PROFIT (LOSS)		14.607	13.877

RATIOS	Item	O.V.	O.V.	as at 31/12/2006	as at 31/12/2005	Sector Average
Fixed assets ratio	Units	=> 1	l	16,77	13,22	2,86
Net Short-term indebtedness	Units	- 1	l	0,57	0,50	3,99
Current ratio	Units	=> 1	l	2,95	3,23	1,20
Acid Test Ratio-Liquidity Ratio	Units	=> 1	l	1,54	1,56	0,76
Return on Sales	%		l	1,16	1,37	1,91
Average stock waiting period	dd		l	71,60	76,50	84,81
Credits to clients average term	dd		l	59,79	51,08	98,35
Debts to suppliers average term	dd		l	20,34	21,56	140,38
Net financial revenues/ charges incidence	%		l	- 0,77	- 0,42	- 1,11
Labour cost incidence	%		l	9,94	10,81	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:

199.900 .Eur.

MARKET / TERRITORY DATA

Population living in the province	:	510.505
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 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 moderately risky.

In the region 50.886 protested subjects are found; in the province they count to 2.343.

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

Total Bankrupt companies in the province : 986.

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