MIRA INFORM REPORT

Report Date :

24.10.2008

IDENTIFICATION DETAILS

Name :	FERRIERA DI CITTADELLA SOCIETA' PER AZIONI
Registered Office :	Via Dei Cairoli, 9 36100 – Vicenza (VI)
Country :	Italy
Financials (as on) :	31.12.2007
Date of Incorporation :	30.10.1998
Com. Reg. No.:	VI-1998-49228
Legal Form :	Joint Stock Company
Line of Business :	Iron Industry. Production of Steel Rolled Shapes and Sections. Rolling of Steel Strips.

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 1.176.000
Status :	Very Good
Payment Behaviour :	Regular
Litigation :	Clear

name & address

Ferriera Di Cittadella Societa' Per Azioni

Via

Dei Cairoli,

9

36100

- Vicenza

(VI)

-IT-

SUMMARY

Fiscal Code	:	00800140246
Legal Form	:	Joint stock company
Start of Activities	:	30/10/1998
Patrimonial Consistence	:	Over 2.500.000 Eur
Turnover Range	:	50.000.000/75.000.000 Eur
Number of Employees	:	from 201 to 250

CREDIT ANALYSIS

CREDIT OPINION	:	1.176.000 - Eur
Score	:	Risk low
Creditworthness Rate	:	Excellent
		Financial/patrimonial analysis very good - Credit with very low risk

ACTIVITY

Iron industry.

Production of steel rolled shapes and sections.

Rolling of steel strips.

LEGAL DATA

Legal Form : Joint stock company

Fiscal Code : 00800140246

Foreign Trade Reg. no. : VI046859 since 16/12/1998

Foreign Trade Reg. no. : 046859 of Vicenza since 16/12/1998

Chamber of Commerce no. : 104225 of Massa

Chamber of Commerce no. : 268718 of Treviso

Chamber of Commerce no. : 268566 of Vicenza since 05/11/1998

Firms' Register : VI-1998-49228 since 10/11/1998

V.A.T. Code : 02713790240

Foundation Date	: 28/10/1981
Establishment Date	: 28/10/1981
Start of Activities	: 30/10/1998
Legal Duration Date	: 31/12/2050
Nominal Capital	: 2.600.000	Eur
Subscribed Capital	: 2.600.000	Eur
Paid up Capital	: 2.600.000	Eur

MEMBERS

Pirota

Renato

Born in Milano

(MI)

on 28/09/1946

- Fiscal Code : PRTRNT46P28F205W

Residence :

Via

Monte Sereo

, 73/B

- 35123

Rovolon

(PD)

- IT -

Position	Since	Shares Amount	% Ownership
Sole Director	23/05/2007

No Protests registered.

De Marchi

Luigi

Born in Candiana

(PD)

on 24/10/1948

- Fiscal Code : DMRLGU48R24B589W

Residence :

Via

Palermo

, 1

- 35018

San Martino di Lupari

(PD)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney with special power	12/11/1998

No Protests registered.

Marchesini

Luigi

Born in Vicenza

(VI)

on 23/03/1964

- Fiscal Code : MRCLGU64C23L840Y

Residence :

Viale

Europa

, 30

- 36100

Vicenza

(VI)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney with special power	12/11/1998

No Protests registered.

Ceroni

Andrea

Born in Padova

(PD)

on 29/04/1965

- Fiscal Code : CRNNDR65D29G224V

Residence :

Via

I. Caffi

, 11

- 35100

Padova

(PD)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney with special power	28/03/2002

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.

PIROTA

RENATO

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
CAVOUR 13 S.N.C. DI RENATO PIROTA E C.	Padova (PD) - IT -	02288450287	Partner	Active	Registered
DVS IMMOBILIARE S.N.C. DI SCHIAVON EMANUELA E C.	Padova (PD) - IT -	00771510286	Partner	Dismiss	Ceased
DVS SERVIZI S.N.C. DI VAROTTO PAOLO E C. IN LIQUIDAZIONE	Trento (TN) - IT -	02146500281	Partner	Dismiss	Ceased
FERRIERA CASTELLANA - S.R.L.	Vicenza (VI) - IT -	00197000268	Chairman	Dismiss	Ceased
FERRIERA DI CITTADELLA S.P.A.	Vicenza (VI) - IT -	00161750245	Managing Director	Dismiss	Ceased
FERRIERA DI CITTADELLA S.P.A.	Vicenza (VI) - IT -	00161750245	Board Chairman	Dismiss	Ceased
IL MOLO S.R.L.	Padova (PD) - IT -	03647670284	Sole Director	Active	Registered
IL MOLO S.R.L.	Padova (PD) - IT -	03647670284	Sole partner	Active	Registered
PIROTA S.A.S. DI RENATO PIROTA E C.	Padova (PD) - IT -	03312600285	General Partner	Active	Registered
R.I.V.-ROTTAMI INDUSTRIA VENETA S.R.L.	Vicenza (VI) - IT -	80000870248	Sole Director	Dismiss	Ceased

DE MARCHI

LUIGI

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
FERRIERA DI CITTADELLA S.P.A.	Vicenza (VI) - IT -	00161750245	Attorney with special power	Dismiss	Ceased

MARCHESINI

LUIGI

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
FERRIERA DI CITTADELLA S.P.A.	Vicenza (VI) - IT -	00161750245	Attorney with special power	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
Pirota Renato	Rovolon - IT -	PRTRNT46P28F205W	1.274.000 .Eur	49,00
Pirota S.a.s. Di Renato Pirota E C.	Padova - IT -	03312600285	1.326.000 .Eur	51,00

DIRECT PARTICIPATIONS

Company Style	Legal Seat	Fiscal Code	Owned Shares	% of Ownership	Share Status
Ferriera Di Cittadella S.p.a.	Vicenza - IT -	00161750245			Ceased
Carrara Lame S.R.L	Carrara - IT -		10.225 .Eur	99,00	Active

STRUCTURE AND COMPANY ACTIVITY

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

-

Registered office

in :

Via

Dei Cairoli

, 9

- 36100 -

Vicenza

(VI)

- IT -

PHONE

: 049/9400800

-

Branch

(Factory )

since 30/10/1998

in :

Via

Castellana

, 75 Loc. VALLA'

- 31039 -

Riese Pio X

(TV)

- IT -

-

Branch

(Factory )

since 30/10/1998

in :

Borgo

Vicenza

, 126

- 35013 -

Cittadella

(PD)

- IT -

-

Branch

(Office with warehouse )

since 01/07/1999

in :

Viale

Galileo Galilei

, 1

- 54033 -

Carrara

(MS)

- IT -

Employees

: 219

Fittings and Equipment

for a value of 2.140.000

Eur

Stocks

for a value of 19.340.000

Eur

HISTORICAL INFORMATION AND/OR FIRM'S STATUS

Company Style modifications

Former Style	New Style	Changement Date
INTER.PI. SpA		03/11/1998

Ex-Members / Ex-Positions

Pirota

Roberto

Born in Milano

on 04/07/1935

- Fiscal Code : PRTRRT35L04F205W

Residence :

Via

Romagna

, 6

- 31033

Castelfranco Veneto

(TV)

- IT -

Position

Attorney with special power

Naudon

Jean Claude

Born in Casablanca

on 18/07/1949

- Fiscal Code : NDNJCL49L18Z330Q

Residence :

Borgo

Vicenza

, 128

- 35013

Cittadella

(PD)

- IT -

Position

Attorney with special power

Giacobbo

Gabriella

Born in CITTADELLA

on 02/02/1943

- Fiscal Code : GCBGRL43B42C743P

Residence :

Via

ALFIERI

, 2

- 35013

CITTADELLA

(PD)

- IT -

Position

Attorney with special power

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	7.705.563 .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 1998.

Under an economic point of view, profits were registered during the last years with a r.o.e. of 3,48% in 2007

The operating result in 2007 was positive (5,88%) falling within the field's average.

Very good financial situation: shareholder's equity covers short-terms debts with an indebtedness level equal to 0,99 lower than in 2006.

Bank borrowings' volume is slightly high but the recourse to suppliers' credit is modest below the sector's average.

Payments are supported by good current assets.

FINANCIAL DATA

Complete balance-sheet for the year as at

31/12/2007

(in Eur

x 1 )

Item Type	Amount	Source
Sales	64.807.938	filed balance sheet
Profit (Loss) for the period	852.856	filed balance sheet

Complete balance-sheet for the year as at

31/12/2006

(in Eur

x 1 )

Item Type	Amount	Source
Sales	63.137.941	filed balance sheet
Profit (Loss) for the period	1.103.702	filed balance sheet

Complete balance-sheet for the year as at

31/12/2005

(in Eur

x 1 )

Item Type	Amount	Source
Sales	57.282.485	filed balance sheet
Profit (Loss) for the period	2.077.819	filed balance sheet

Complete balance-sheet for the year as at

31/12/2004

(in Eur

x 1 )

Item Type	Amount	Source
Sales	56.070.100	filed balance sheet
Profit (Loss) for the period	850.106	filed balance sheet

Complete balance-sheet for the year as at

31/12/2003

(in Eur

x 1 )

Item Type	Amount	Source
Sales	44.384.016	filed balance sheet
Profit (Loss) for the period	-10.793.537	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 )		20.331.486	20.876.780
. Intangible assets		4.278.028	4.961.496
. Tangible fixed assets		10.740.010	10.467.368
. . Land and buildings		7.705.563	7.991.936
. . Plants, Equipm.and Machinery		2.142.284	1.960.504
. Long-term Investments		5.313.448	5.447.916
. . Financial loans		5.313.448	5.447.916
. . Own shares
CURRENT ASSETS		47.171.320	44.409.714
. Stock		19.343.122	13.897.063
. Credits		23.684.284	22.835.004
. . Credits to clients		20.037.244	19.438.010
. . Other credits		3.647.040	3.396.994
. Short-term financial assets
. Liquid assets		4.143.914	7.677.647
ACCRUED INCOME-DEFERR. ASSETS		68.720	82.047
TOTAL ASSETS		67.571.526	65.368.541
.
LIABILITIES
NET WORTH		24.448.656	24.042.020
. Company's capital		2.600.000	2.600.000
. Reserves		20.995.800	20.338.318
. Reserves company's own shares
. Retained profits (losses)
. Profit (loss)		852.856	1.103.702
PROVISION FOR RISKS AND LOSSES		496.967	713.537
SEVERANCE INDEMNITY FUND		1.463.731	1.662.398
DEBTS		40.852.971	38.607.404
. Financial M/L terms		12.309.824	6.618.757
. . Financial M/L term banks		9.727.540	6.618.757
. . Financial M/L bonds		2.582.284
. . Other financial M/L debts
. Financial short-term debts		16.335.231	18.409.520
. . Financial short-term banks		16.335.231	15.827.236
. . Financial short-term bonds			2.582.284
. . Other financial short-term debts
. M/L term debts to suppliers
. Short-term debts to suppliers		9.885.214	9.099.386
. Sundry M/L debts
. Sundry short-term debts		2.322.702	4.479.741
ACCRUED EXPENSE		309.201	343.182
TOTAL LIABILITIES		67.571.526	65.368.541
.
	PROFIT AND LOSS ACCOUNTS
OUTPUT VALUE		68.816.198	67.021.132
. Revenues from sales/services		64.807.938	63.137.941
. Change of stock (products)		2.761.969	2.300.439
OPERATING EXPENSES		64.842.048	63.988.695
. Purchasing expenses		49.716.014	43.607.519
. Change of stock (raw material)		-2.684.091	1.444.816
. Expenses from services		7.902.593	8.401.016
. Expenses from leasing		47.236	83.272
. General expenses/sundry charges		429.305	706.978
. Staff expenses		7.029.274	6.646.016
. Depreciation/Devaluation costs		2.401.717	3.099.078
FINANCIAL REVENUES (CHARGES)		-1.774.959	-701.119
. Financial charges		-1.774.959	-1.174.251
. Financial revenues			473.132
FINANCIAL ASSETS CORRECTION		-18.000	-86.000
EXTRAORDINARY FINANCIAL REVENUES (CHARGES)		92.409	160.150
PROFIT (LOSS) FOR THE PERIOD		2.273.600	2.405.468
TAX		1.420.744	1.301.766
CORRECT./ALLOCAT. FISCAL RULE
NET PROFIT (LOSS)		852.856	1.103.702

RATIOS	Item	O.V.	O.V.	as at 31/12/2007	as at 31/12/2006	Sector Average
Fixed assets ratio	Units	=> 1	l	1,87	1,54	1,46
Net Short-term indebtedness	Units	- 1	l	0,99	1,01	2,50
Current ratio	Units	=> 1	l	1,65	1,38	1,19
Acid Test Ratio-Liquidity Ratio	Units	=> 1	l	0,97	0,95	0,87
Return on Sales	%		l	5,02	6,65	3,94
Average stock waiting period	dd		l	107,42	79,23	49,82
Credits to clients average term	dd		l	111,27	110,80	121,53
Debts to suppliers average term	dd		l	61,70	62,85	125,63
Net financial revenues/ charges incidence	%		l	- 2,73	- 1,11	- 0,88
Labour cost incidence	%		l	10,84	10,52	11,44

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:

1.176.000 .Eur.

MARKET / TERRITORY DATA

Population living in the province	:	831.356
Population living in the region	:	4.699.950
Number of families in the region	:	1.813.210

Monthly family expences average in the region (in Eur.) :

- per food products	:	456
- per non food products	:	2.052
- per energy consume	:	127

SECTOR DATA

The values are calculated on a base of 438 significant companies.

The companies cash their credits on an average of 121 dd.

The average duration of suppliers debts is about 125 dd.

The sector's profitability is on an average of 3,94%.

The labour cost affects the turnover in the measure of 11,44%.

Goods are held in stock in a range of 49 dd.

The difference between the sales volume and the resources used to realize it is about 1,24.

The employees costs represent the 11,94% 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 13.782 protested subjects are found; in the province they count to 2.234.

The insolvency index for the region is 0,30, while for the province it is 0,27.

Total Bankrupt companies in the province : 2.546.

Total Bankrupt companies in the region : 16.714.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.95
UK Pound	1	Rs.79.56
Euro	1	Rs.63.65

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