MIRA INFORM REPORT

Report Date :

10.11.2008

IDENTIFICATION DETAILS

Name :	CAPELLARO E C. S.P.A.
Registered Office :	Viale Papiniano, 22 , 20123 – Milano (MI)
Country :	Italy
Financials (as on) :	31.12.2007
Date of Incorporation :	13.01.1967
Legal Form :	Joint Stock Company
Line of Business :	Wholesale of Watches, Clocks and Jewellery. Wholesale of Precious Metals, Gems, Pearls and Corals. Retail of Jewellery, Gold and Silverware.

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

name & address

Capellaro E C. S.p.a.

Viale

Papiniano,

22

20123

- Milano

(MI)

-IT-

SUMMARY

Fiscal Code	:	00721730158
Legal Form	:	Joint stock company
Establishment Date	:	13/01/1967
Patrimonial Consistence	:	Over 2.500.000 Eur
Turnover Range	:	12.750.000/15.500.000 Eur
Number of Employees	:	from 11 to 15

N.B.: Additional information are present in the "FURTHER INFORMATION" module.

CREDIT ANALYSIS

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 watches, clocks and jewellery.

Wholesale of precious metals, gems, pearls and corals.

Retail of jewellery,gold and silverware.

LEGAL DATA

Legal Form : Joint stock company

Fiscal Code : 00721730158

Foreign Trade Reg. no. : MI027074 since 11/12/1991

Foreign Trade Reg. no. : 0006757 of Milano

Chamber of Commerce no. : 101474 of Alessandria

Chamber of Commerce no. : 724194 of Milano since 18/01/1967

Chamber of Commerce no. : 149735 of Vicenza

Firms' Register : MI146-131338 since 19/02/1996

V.A.T. Code : 00721730158

Establishment Date	: 13/01/1967
Legal Duration Date	: 31/12/2050
Nominal Capital	: 1.000.000	Eur
Subscribed Capital	: 1.000.000	Eur
Paid up Capital	: 1.000.000	Eur

MEMBERS

Galante

Alberto

Born in Libano

on 30/08/1952

- Fiscal Code : GLNLRT52M30Z229S

Residence :

Via

Garian

, 20

- 20146

Milano

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Managing Director	30/04/2006
Director	30/04/2006
Board Chairman	30/04/2006

No Protests registered.

Rascaroli

Valter

Born in Robbio

(PV)

on 06/02/1952

- Fiscal Code : RSCVTR52B06H369Y

Residence :

Via

Gorizia

, 1

- 27038

Robbio

(PV)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney with special power	13/05/2003

No Protests registered.

Beissah De Namdar

Maria

Born in Beirut

on 20/01/1956

- Fiscal Code : BSSMRA56A60Z229A

Residence :

Via

Domenichino

, 50

- 20149

Milano

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Director	14/12/2006

No Protests registered.

Namdar

Elisheba

Born in Karachi

on 04/07/1954

- Fiscal Code : NMDLHB54L44Z236U

Residence :

Via

Garian

, 20

- 20146

Milano

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Managing Director	30/04/2006
Director	30/04/2006

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.

GALANTE

ALBERTO

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
GALTEX DI CLEMENT GALANTE E C. S.N.C.	Milano (MI) - IT -	03361840154	Partner of unlimit. partnership	Dismiss	Ceased

NAMDAR

ELISHEBA

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
SUPERKASH DI NAMDAR ELISHEBA	Milano (MI) - IT -	NMDLHB54L44Z236U	Proprietor	Dismiss	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
Mercin Corp			500.000 .Eur	50,00
OR E COMPANY LIMITED	Hong Kong - HK -		500.000 .Eur	50,00

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

Papiniano

, 22

- 20123 -

Milano

(MI)

- IT -

PHONE

: 02/866014

-

Branch

(Forwarding office )

in :

Via

Del Mercato Nuovo

, 77

- 36100 -

Vicenza

(VI)

- IT -

PHONE

: 0444/324882

-

Branch

(Administrative office )

since 19/12/2005

in :

Via

Circonvallazione Ovest

- 15048 -

Valenza

(AL)

- IT -

PHONE

: 0131/924809

PHONE

: 0131/945689

Employees

: 15

Fittings and Equipment

for a value of 200.000

Eur

Stocks

for a value of 9.460.000

Eur

The firm has a direct commercial organization

The company sells in Italy and abroad.

The firm operates abroad as importer / exporter. .

To purchase foreign products the firm uses the following channels :

- its own agents

Export represents up to 20% of the global turnover.

Traded Brands / Suppliers:

- Leo Cut

HISTORICAL INFORMATION AND/OR FIRM'S STATUS

Changes to the legal form

Former legal form	New legal form	Changement Date
Other forms	Joint stock company	28/01/1972

Ex-Members / Ex-Positions

Lobis

Eduard

Born in Bolzano

on 03/04/1956

- Fiscal Code : LBSDRD56D03A952R

Residence :

Via

Boccaccio

, 29

- 20100

Milano

(MI)

- IT -

Position

Permanent Auditor

Roberto

Francesco

Born in Montemagno

on 11/04/1929

- Fiscal Code : RBRFNC29D11F556A

Residence :

Via

Giambellino

, 39

- 20100

Milano

(MI)

- IT -

Position

Attorney General

Managing Director

Board Chairman

Ciancia

Carlet Pietro

Born in Caprile

on 05/05/1928

Position

Managing Director

Assistant board Chairman

Rascaroli

Fausto

Born in Luzzara

on 09/03/1932

- Fiscal Code : RSCFST32C09E772F

Residence :

Via

Compagnoni Giuseppe

, 1

- 20100

Milano

(MI)

- IT -

Position

Assistant board Chairman

Managing Director

Rascaroli

Valter

Born in Robbio

on 06/02/1952

- Fiscal Code : RSCVTR52B06H369Y

Residence :

Via

Gorizia

, 1

- 27038

Robbio

(PV)

- IT -

Position

Managing Director

Martinetti

Paolo Lorenzo

Born in Montemagno

on 25/07/1948

- Fiscal Code : MRTPLR48L25F556D

Residence :

Viale

Del Vivaio

, 4

- 15048

Valenza

(AL)

- IT -

Position

Attorney with special power

Managing Director

LIVIAN

JACKY ISRAEL

Born in MILANO

on 12/02/1974

- Fiscal Code : LVNJKY74B12F205A

Residence :

Viale

SAN GIMIGNANO

, 30

- 20100

Milano

(MI)

- IT -

Position

Director

Former seats

-

Branch

since 01/01/2006

Via

Paolo Da Cannobio

- 20100

- Milano

(MI)

- IT -

PAYMENTS ANALYSIS

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

PAYMENTS SCORE : - No insolvency

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	1.305.589 .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 turnover is falling if compared with the previous financial year (EFAT1E%).

The return on Investment in the last financial year was positive (0,15%) falling within the field's average.

From a financial aspect the company's status covers total short-term debts; the indebtedness volume in 2007 is in fact 0,27 lower than in 2006.

The liquidity level is positive (4,01).

FINANCIAL DATA

Complete balance-sheet for the year as at

31/12/2007

(in Eur

x 1 )

Item Type	Amount	Source
Sales	12.799.252	filed balance sheet
Profit (Loss) for the period	-22.150	filed balance sheet

Complete balance-sheet for the year as at

31/12/2006

(in Eur

x 1 )

Item Type	Amount	Source
Sales	22.903.707	filed balance sheet
Profit (Loss) for the period	-170.275	filed balance sheet

Complete balance-sheet for the year as at

31/12/2005

(in Eur

x 1 )

Item Type	Amount	Source
Sales	21.378.745	filed balance sheet
Profit (Loss) for the period	219.501	filed balance sheet

Complete balance-sheet for the year as at

31/12/2004

(in Eur

x 1 )

Item Type	Amount	Source
Sales	18.310.138	filed balance sheet
Profit (Loss) for the period	513.392	filed balance sheet

Complete balance-sheet for the year as at

31/12/2003

(in Eur

x 1 )

Item Type	Amount	Source
Sales	21.842.624	filed balance sheet
Profit (Loss) for the period	318.219	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 31/12/2007 - Months 12 - Currency Eur - Amounts x 1

Balance Sheet as at 31/12/2006 - Months 12 - Currency Eur - Amounts x 1

Years		2007	2006
	BALANCE SHEET ACCOUNTS
.
ASSETS
CREDITS TO SHAREHOLDERS
FIXED ASSETS ( NET )		1.526.806	1.677.537
. Intangible assets		19.527	22.495
. Tangible fixed assets		1.506.568	1.654.090
. . Land and buildings		1.305.589	1.318.014
. . Plants, Equipm.and Machinery		200.979	336.076
. Long-term Investments		711	952
. . Financial loans		711	952
. . Own shares
CURRENT ASSETS		16.981.468	22.503.552
. Stock		9.455.206	10.385.213
. Credits		7.143.120	12.027.346
. . Credits to clients		6.978.210	11.957.625
. . Other credits		164.910	69.721
. Short-term financial assets
. Liquid assets		383.142	90.993
ACCRUED INCOME-DEFERR. ASSETS		111.515	142.595
TOTAL ASSETS		18.619.789	24.323.684
.
LIABILITIES
NET WORTH		13.950.484	13.972.634
. Company's capital		1.000.000	1.000.000
. Reserves		12.972.634	13.142.909
. Reserves company's own shares
. Retained profits (losses)
. Profit (loss)		-22.150	-170.275
PROVISION FOR RISKS AND LOSSES		26.723
SEVERANCE INDEMNITY FUND		392.904	448.047
DEBTS		4.230.497	9.873.399
. Financial M/L terms
. . Financial M/L term banks
. . Financial M/L bonds
. . Other financial M/L debts
. Financial short-term debts		1.900.000	3.486.231
. . Financial short-term banks		1.900.000	3.486.231
. . Financial short-term bonds
. . Other financial short-term debts
. M/L term debts to suppliers
. Short-term debts to suppliers		2.259.856	6.376.021
. Sundry M/L debts
. Sundry short-term debts		70.641	11.147
ACCRUED EXPENSE		19.181	29.604
TOTAL LIABILITIES		18.619.789	24.323.684
.
	PROFIT AND LOSS ACCOUNTS
OUTPUT VALUE		12.847.790	22.913.322
. Revenues from sales/services		12.799.252	22.903.707
. Change of stock (products)
OPERATING EXPENSES		12.818.954	22.629.454
. Purchasing expenses		9.608.887	17.882.470
. Change of stock (raw material)		930.007	885.866
. Expenses from services		907.776	1.638.135
. Expenses from leasing		80.956	101.283
. General expenses/sundry charges		196.925	478.532
. Staff expenses		922.951	1.081.733
. Depreciation/Devaluation costs		171.452	561.435
FINANCIAL REVENUES (CHARGES)		25.380	-217.813
. Financial charges		14.862	-223.295
. Financial revenues		10.518	5.482
FINANCIAL ASSETS CORRECTION
EXTRAORDINARY FINANCIAL REVENUES (CHARGES)		-9.869	-530
PROFIT (LOSS) FOR THE PERIOD		44.347	65.525
TAX		66.497	235.800
CORRECT./ALLOCAT. FISCAL RULE
NET PROFIT (LOSS)		-22.150	-170.275

RATIOS	Item	O.V.	O.V.	as at 31/12/2007	as at 31/12/2006	Sector Average
Fixed assets ratio	Units	=> 1	l	9,39	8,59	2,26
Net Short-term indebtedness	Units	- 1	l	0,27	0,70	3,96
Current ratio	Units	=> 1	l	4,01	2,27	1,20
Acid Test Ratio-Liquidity Ratio	Units	=> 1	l	1,77	1,22	0,45
Return on Sales	%		l	1,16	1,70	2,61
Average stock waiting period	dd		l	265,93	163,22	125,71
Credits to clients average term	dd		l	196,27	187,92	36,75
Debts to suppliers average term	dd		l	76,75	116,96	160,54
Net financial revenues/ charges incidence	%		l	0,19	- 0,95	- 1,17
Labour cost incidence	%		l	7,21	4,72	8,91

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)

FURTHER INFORMATION

The company under review has been badly influenced by the unfavourable change

value of US Dollar, which is mainly used for the business transactions of the sector

and have also decided to address its business core to retail trade in order to

have a moderate credit risk.

These are the reasons of the turnover decrease.

The financial situation is balanced.

No detrimental items have been registered against the company.

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 963 significant companies.

The companies cash their credits on an average of 36 dd.

The average duration of suppliers debts is about 160 dd.

The sector's profitability is on an average of 2,61%.

The labour cost affects the turnover in the measure of 8,91%.

Goods are held in stock in a range of 125 dd.

The difference between the sales volume and the resources used to realize it is about 1,17.

The employees costs represent the 8,88% 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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.47.52
UK Pound	1	Rs.74.20
Euro	1	Rs.60.73

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