MIRA INFORM REPORT

Report Date :

15.11.2008

IDENTIFICATION DETAILS

Name :	MECTILES ITALIA S.R.L.
Registered Office :	Via Don G. Bini,3, 42013 - Casalgrande (RE)
Country :	Italy
Financials (as on) :	31.12.2007
Date of Incorporation :	12.12.1998
Com. Reg. No.:	RE-1999-2478
Legal Form :	Limited Liability Company
Line of Business :	Manufacture, installation and repairing of mechanical machines and equipment.

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. 308.000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

Name & addres

Mectiles Italia S.r.l.

Via

Don G. Bini,

3

42013

- Casalgrande

(RE)

-IT-

SUMMARY

Fiscal Code	:	01810190353
Legal Form	:	Limited liability company
Start of Activities	:	07/01/1999
Patrimonial Consistence	:	750.000 Eur
Turnover Range	:	12.750.000/15.500.000 Eur
Number of Employees	:	from 6 to 10

CREDIT ANALYSIS

CREDIT OPINION	:	308.000 - Eur
Score	:	Risk normal
Creditworthness Rate	:	Sufficient
Eurorating		Financial situation is not at its best, but credit is possible with
		No particular risks.

ACTIVITY

General mechanic.

Manufacture, installation and repairing of mechanical machines and

equipment.

LEGAL DATA

Legal Form : Limited liability company

Fiscal Code : 01810190353

Foreign Trade Reg. no. : RE023502 since 07/01/2000

Chamber of Commerce no. : 366652 of Modena

Chamber of Commerce no. : 225855 of Reggio Emilia since 26/01/1999

Firms' Register : RE-1999-2478

V.A.T. Code : 01810190353

Establishment Date	: 12/12/1998
Start of Activities	: 07/01/1999
Legal Duration Date	: 31/12/2030
Nominal Capital	: 10.400	Eur
Subscribed Capital	: 10.400	Eur
Paid up Capital	: 10.400	Eur

MEMBERS

Compagni

Stefano

Born in Sassuolo

(MO)

on 01/12/1964

- Fiscal Code : CMPSFN64T01I462V

Residence :

Via

Dossetti

, 43

- 42013

Casalgrande

(RE)

- IT -

Position	Since	Shares Amount	% Ownership
Director	12/12/1998
Board Chairman	12/12/1998

No Protests registered.

Medici

Gianfranco

Born in Casalgrande

(RE)

on 09/11/1952

- Fiscal Code : MDCGFR52S09B893Q

Residence :

Via

Leonardo Da Vinci

, 22

- 42013

Castellarano

(RE)

- IT -

Position	Since	Shares Amount	% Ownership
Director	12/12/1998
Assistant board Chairman	12/12/1998

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.

COMPAGNI

STEFANO

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
IMMOBILIARE G. E S. S.R.L.	Casalgrande (RE) - IT -	02247570357	Director	Active	Registered
IMMOBILIARE G. E S. S.R.L.	Casalgrande (RE) - IT -	02247570357	Board Chairman	Active	Registered
IMMOBILIARE GRANATA S.R.L.	Sassuolo (MO) - IT -	02932800366	Director	Active	Registered
TUTTO DI TUTTO S.R.L.	Sassuolo (MO) - IT -	03041860366	Director	Active	Registered
VEGGIA 316 SRL	Casalgrande (RE) - IT -	02168880355	Director	Active	Registered
VEGGIA 316 SRL	Casalgrande (RE) - IT -	02168880355	Assistant board Chairman	Active	Registered

MEDICI

GIANFRANCO

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
IMMOBILIARE G. E S. S.R.L.	Casalgrande (RE) - IT -	02247570357	Director	Active	Registered
IMMOBILIARE GRANATA S.R.L.	Sassuolo (MO) - IT -	02932800366	Director	Active	Registered
IMMOBILIARE GRANATA S.R.L.	Sassuolo (MO) - IT -	02932800366	Assistant board Chairman	Active	Registered
TUTTO DI TUTTO S.R.L.	Sassuolo (MO) - IT -	03041860366	Director	Active	Registered
VEGGIA 316 SRL	Casalgrande (RE) - IT -	02168880355	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
Compagni Stefano	Casalgrande - IT -	CMPSFN64T01I462V	5.200 .Eur	50,00
Medici Gianfranco	Castellarano - IT -	MDCGFR52S09B893Q	5.200 .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 :

Via

Don G. Bini

, 3

- 42013 -

Casalgrande

(RE)

- IT -

PHONE

: 0536/990529

FAX	: 0536/822770

Website

: www.mectilesitalia.it

-

Branch

(Store )

since 10/03/2007

in :

Via

Strada Statale 467

, 63

- 42013 -

Casalgrande

(RE)

- IT -

-

Branch

(Store )

since 19/03/2008

in :

Via

Amalfi

, 5

- 41034 -

Finale Emilia

(MO)

- IT -

Employees

: 10

Fittings and Equipment

for a value of 11.000

Eur

Stocks

for a value of 640.000

Eur

HISTORICAL INFORMATION AND/OR FIRM'S STATUS

Splitting-up and setting-up of a new company

Immobiliare G. E S. S.r.l.

Via

Don Bini

, 3

, 42013

, Casalgrande

(RE)

- IT -

Fiscal Code: 02247570357

Date

Splitting-up :

30/11/2006

PAYMENTS ANALYSIS

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

PAYMENTS SCORE : - 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.

IMMOVABLES

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

Immovable Type	Value
Real estates	2.183 .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 1999

During the last years, it achieved profits (r.o.e. 22,26% on 2007) and with an upward trend in turnover trend during the last financial year (+43,26% in 2007).

falling if compared to 2006.

even if it is lower than the sector's average.

FINANCIAL DATA

Complete balance-sheet for the year as at

31/12/2007

(in Eur

x 1 )

Item Type	Amount	Source
Sales	13.741.468	filed balance sheet
Profit (Loss) for the period	157.916	filed balance sheet

Complete balance-sheet for the year as at

31/12/2006

(in Eur

x 1 )

Item Type	Amount	Source
Sales	9.591.330	filed balance sheet
Profit (Loss) for the period	2.116	filed balance sheet

Complete balance-sheet for the year as at

31/12/2005

(in Eur

x 1 )

Item Type	Amount	Source
Sales	10.741.639	filed balance sheet
Profit (Loss) for the period	81.667	filed balance sheet

Complete balance-sheet for the year as at

31/12/2004

(in Eur

x 1 )

Item Type	Amount	Source
Sales	11.467.482	filed balance sheet
Profit (Loss) for the period	255.500	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 )		290.002	438.252
. Intangible assets		168.994	239.867
. Tangible fixed assets		70.272	197.241
. . Land and buildings		2.183	3.639
. . Plants, Equipm.and Machinery		10.909	121.751
. Long-term Investments		50.736	1.144
. . Financial loans		50.736	1.144
. . Own shares
CURRENT ASSETS		5.880.928	4.384.368
. Stock		640.225	1.039.329
. Credits		4.807.240	3.148.829
. . Credits to clients		4.311.774	2.884.730
. . Other credits		495.466	264.099
. Short-term financial assets
. Liquid assets		433.463	196.210
ACCRUED INCOME-DEFERR. ASSETS		5.369	2.170
TOTAL ASSETS		6.176.299	4.824.790
.
LIABILITIES
NET WORTH		709.140	551.224
. Company's capital		10.400	10.400
. Reserves		540.824	538.708
. Reserves company's own shares
. Retained profits (losses)
. Profit (loss)		157.916	2.116
PROVISION FOR RISKS AND LOSSES
SEVERANCE INDEMNITY FUND		73.015	56.564
DEBTS		5.392.582	4.213.967
. Financial M/L terms
. . Financial M/L term banks
. . Financial M/L bonds
. . Other financial M/L debts
. Financial short-term debts		154.032	271.163
. . Financial short-term banks		154.032	271.163
. . Financial short-term bonds
. . Other financial short-term debts
. M/L term debts to suppliers
. Short-term debts to suppliers		3.998.388	2.999.465
. Sundry M/L debts
. Sundry short-term debts		1.240.162	943.339
ACCRUED EXPENSE		1.562	3.035
TOTAL LIABILITIES		6.176.299	4.824.790

PROFIT AND LOSS ACCOUNTS

OUTPUT VALUE	13.808.173	9.706.030
. Revenues from sales/services	13.741.468	9.591.330
. Change of stock (products)
OPERATING EXPENSES	13.491.766	9.559.815
. Purchasing expenses	7.600.766	5.620.139
. Change of stock (raw material)	443.079	-475.104
. Expenses from services	4.469.483	3.548.085
. Expenses from leasing	300.620	361.515
. General expenses/sundry charges	121.994	41.584
. Staff expenses	449.801	288.048
. Depreciation/Devaluation costs	106.023	175.548
FINANCIAL REVENUES (CHARGES)	3.764	-5.494
. Financial charges	-14.900	-9.630
. Financial revenues	18.664	4.136
FINANCIAL ASSETS CORRECTION
EXTRAORDINARY FINANCIAL REVENUES (CHARGES)	-3	-2
PROFIT (LOSS) FOR THE PERIOD	320.168	140.719
TAX	162.252	138.603
CORRECT./ALLOCAT. FISCAL RULE
NET PROFIT (LOSS)	157.916	2.116

RATIOS

	Item	O.V.	O.V.	as at 31/12/2007	as at 31/12/2006	Sector Average
Fixed assets ratio	Units	=> 1	l	2,69	1,38	2,01
Net Short-term indebtedness	Units	- 1	l	6,99	7,28	2,79
Current ratio	Units	=> 1	l	1,09	1,04	1,28
Acid Test Ratio-Liquidity Ratio	Units	=> 1	l	0,97	0,79	0,95
Return on Sales	%		l	1,92	1,85	3,84
Average stock waiting period	dd		l	16,74	38,98	57,45
Credits to clients average term	dd		l	112,93	108,25	130,24
Debts to suppliers average term	dd		l	116,35	113,29	147,96
Net financial revenues/ charges incidence	%		l	0,02	- 0,05	- 0,90
Labour cost incidence	%		l	3,27	3,00	19,09

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 DETERMINATION

The credit opinion determination is divided into two phases :

1) Risk analysis (Score).

2) Reliability score identification.

RISK ANALYSIS (SCORE)

On the base of precise indicators as "Activity sector", "Area", "Firm's foundation", "Payment analysis","Profitability", we analysed the companies included in the same activity sector of subject company, classifying them by their own risk score.

Classification of companies in the same sector by risk score :

Score	Risk level	% Firms
1	very high	3%
2	high	0 %
3	slightly high	8%
4	normal	18%
5	low	71%

The company under review falls within the range of normal risk.

RELIABILITY SCORE

Considering also subject's structural and behavioural characteristics its credit margin rate (from 0 to 100%) is equal to 56%, in respect of a sector average of 55%.

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:

308.000 .Eur.

REMARKS

1) Protests checking (relative to the last five years) performed by crossing and matching the members names and the Firm's Style with the reported addresses, is supplied by the Informatic Registry managed by the Italian Chamber of Commerce. If the fiscal code is not indicated, the eventual homonymous cases are submitted to expert staff evaluation in order to limit wrong matching risks.

2) The Legal Data, supplied and retrived from the Firm's Registry of the Italian Chamber of Commerce, are in line with the last registered modifications.

SOURCES

- Our historical data

- Public Administration

- Reporters

- Newspapers

- Users

- Statistics Bodies

- Financial Project Editions

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 2.083 significant companies.

The companies cash their credits on an average of 130 dd.

The average duration of suppliers debts is about 147 dd.

The sector's profitability is on an average of 3,84%.

The labour cost affects the turnover in the measure of 19,09%.

Goods are held in stock in a range of 57 dd.

The difference between the sales volume and the resources used to realize it is about 1,20.

The employees costs represent the 19,65% 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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.46
UK Pound	1	Rs.73.17
Euro	1	Rs.62.96

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