MIRA INFORM REPORT

Report Date :

27.04.2011

Tel. No.:	0039089331883
Fax No.:	00390892090770

IDENTIFICATION DETAILS

Name :	P.M.P. S.R.L.
Registered Office :	Viale Verdi, 76 84100- Salerno(SA)
Country :	Italy
Financials (as on) :	31.12.2009
Date of Incorporation :	12.04.2001
Legal Form :	Limited Liability Company
Line of Business :	Retail sale of sports equipment in specialised stores

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 :	10.000 - Eur
Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Italy	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Name and address

P.m.p. S.r.l.

Viale Verdi, 76 84100- Salerno(SA)-IT-

Summary

Fiscal Code	:	03778630651
Legal Form	:	Limited liability company
Establishment Date	:	12/04/2001
Equity	:	100.000 Eur
Turnover Range	:	375.000/500.000 Eur
Number of Employees	:	from 1 to 5

Credit Analysis

Credit Opinion

:

10.000 - Eur

Activity

Retail sale of sports equipment in specialised stores

Retail sale of clothing in specialised stores

Legal Data

Legal Form : Limited liability company

Fiscal Code : 03778630651

Chamber of Commerce no. : 320174 of Salerno since 04/05/2001

V.A.T. Code : 03778630651

Establishment date	: 12/04/2001
Legal duration	: 31/12/2050
Nominal Capital	: 52.000	Eur
Subscribed Capital	: 52.000	Eur
Paid up Capital	: 52.000	Eur

Members

Mari

Franco

Born in Salerno

(SA)

on 16/04/1973

- Fiscal Code : MRAFNC73D16H703H

Residence :

Via

Gramsci

, 6

- 84080

Pellezzano

(SA)

- IT -

Position	Since	Shares Amount	% Ownership
Sole Director	10/07/2007

No Protests registered

Companies connected to members *

*checkings have been performed on a national scale.

In this module the companies in which members hold/held positions are listed.

The Members of the subject firm are not reported to be Members in other companies.

Capital Shareholders

Shareholders' list as at date of data collection:

Firm's Style / Name	Seat / Residence	Fiscal Code	Owned Shares	% Ownership
Mari Franco	Pellezzano - IT -	MRAFNC73D16H703H	50.960 .Eur	98,00
Ventura Concetta		VNTCCT72M59H703B	1.040 .Eur	2,00

Direct Participations

The Company under review has no participations in other Companies.

Firm's location and structure

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

-	Legal and operative seat

Viale

Verdi

, 76

- 84100

- Salerno

(SA)

- IT -

PHONE

: 089/331883

FAX	: 089/2090770

-

Branch

(Shop )

since 15/12/2008

Via

Madonna Di Fatima

, 112

- 84100

- Salerno

(SA)

- IT -

Total Surface: 226 Sq.mt.

Employees

: 1

Stocks for a value of 440.000

Eur

Protests

Protests checking on the subject firm has given a negative result.

Legal Procedures

None reported, standing to the latest received edition of the Official Publications.

Financial and Economical Analysis

Subject is active since 2001

The analysis is based on the latest 3 balance sheets.

During the last years, it recorded positive net results (r.o.e. 2,83% in 2009) and during the last financial year an increase in sales volume was registered (+18,94% in 2009).

The operating result in 2009 was positive (8,9%) and in line with the sector's average.

The amount of the operating result is equal to Eur. 51.053 with a 62,74% growth.

The economic management produced a gross operating margin of Eur. 72.550 with a 61,33% growth.

The financial position is not well balanced as the volume of debts is fairly remarkable if compared to shareholder's equity, in fact total debts are 4,48 which is decreasing.

It's shareholders funds amount to Eur. 89.791 , unchanged if compared to 2008.

During the last financial year total debts volume reached Eur. 483.210 (Eur. 49.828 were m/l term ones) with no important change.

Available funds are good.

The financial management generated a cash flow of Eur. 24.035.

The financial management is marked by a high incidence of financial charges in relation to sales revenues (-6,39%).

Financial Data

Complete balance-sheet for the year

31/12/2009

(in Eur

x 1 )

Item Type	Value
Sales	493.130
Profit (Loss) for the period	2.538

Complete balance-sheet for the year

31/12/2008

(in Eur

x 1 )

Item Type	Value
Sales	414.586
Profit (Loss) for the period	9.139

Complete balance-sheet for the year

31/12/2007

(in Eur

x 1 )

Item Type	Value
Sales	492.973
Profit (Loss) for the period	5.232

Balance Sheets

From our constant monitoring of the relevant Public Administration offices, no more recent balance sheets result to have been filed.

- Balance Sheet as at 31/12/2009 - 12 Mesi - Currency: Eur - Amounts x 1

- Balance Sheet as at 31/12/2008 - 12 Mesi - Currency: Eur - Amounts x 1

- Balance Sheet as at 31/12/2007 - 12 Mesi - Currency: Eur - Amounts x 1

Years

2009

2008

2007

BALANCE SHEET ACCOUNTS

ASSETS
CREDITS VS PARTNERS
. Deposits not yet withdrawn
. Deposits already withdrawn
Total credits vs partners
FIXED ASSETS
. INTANGIBLE FIXED ASSETS
. . Start-up and expansion expenses
. . Research,develop. and advert.expens.
. . Industrial patent rights
. . Concessions,licenses,trademarks,etc.
. . Goodwill
. . Assets in formation and advance paymen.
. . Other intangible fixed assets
. Total Intangible Fixed Assets	21.370	609	1.110
. TANGIBLE FIXED ASSETS
. . Real estate
. . Plant and machinery
. . Industrial and commercial equipment
. . Other assets
. . Assets under construction and advances
. Total Tangible fixed assets	71.089	87.072	40.022
. FINANCIAL FIXED ASSETS
. . Equity investments
. . . Equity invest. in subsidiary companies
. . . Equity invest. in associated companies
. . . Equity invest. in holding companies
. . . Equity invest. in other companies
. . Financial receivables
. . . . Within 12 months
. . . . Beyond 12 months
. . . Receivab due from subsidiaries
. . . . Within 12 months
. . . . Beyond 12 months
. . . Receivables due from assoc.comp.
. . . . Within 12 months
. . . . Beyond 12 months
. . . Receivables due from holding comp.
. . . . Within 12 months
. . . . Beyond 12 months
. . . Receivables due from third parties
. . . . Within 12 months
. . . . Beyond 12 months
. . Other securities
. . Own shares
. . . Total nominal value
. Total financial fixed assets			28.000
Total fixed assets	92.459	87.681	69.132
CURRENT ASSETS
. INVENTORIES
. . Raw materials and other consumables
. . Work in progress and semimanufactured
. . Work in progress on order
. . Finished goods
. . Advance payments
. Total Inventories	440.180	455.000	372.500
. CREDITS NOT HELD AS FIXED ASSETS
. . Within 12 months	2.181	2.875	6.964
. . Beyond 12 months	7.253	7.046	126
. . Trade receivables			5.609
. . . . Within 12 months			5.609
. . . . Beyond 12 months
. . Receivables due from subsid. comp.
. . . . Within 12 months
. . . . Beyond 12 months
. . Receivables due from assoc. comp.
. . . . Within 12 months
. . . . Beyond 12 months
. . Receivables due from holding comp.
. . . . Within 12 months
. . . . Beyond 12 months
. . Fiscal Receivables			30
. . . . Within 12 months			30
. . . . Beyond 12 months
. . Receivables for anticipated taxes
. . . . Within 12 months
. . . . Beyond 12 months
. . Receivables due from third parties			1.451
. . . . Within 12 months			1.325
. . . . Beyond 12 months			126
. Total Credits not held as fixed assets	9.434	9.921	7.090
. FINANCIAL ASSETS
. . Equity invest. in subsidiary comp.
. . Equity invest. in associated companies
. . Equity invest. in holding companies
. . Other equity investments
. . Own shares
. . . Total nominale value
. . Other securities
. Total Financial Assets
. LIQUID FUNDS
. . Bank and post office deposits
. . Checks
. . Banknotes and coins
. Total Liquid funds	31.239	389	4.949
Total current assets	480.853	465.310	384.539
ADJUSTMENT ACCOUNTS
. Discount on loans
. Other adjustment accounts	248	346	315
Total adjustments accounts	248	346	315
TOTAL ASSETS	573.560	553.337	453.986
LIABILITIES
STOCKHOLDERS' EQUITY
. Capital stock	52.000	52.000	52.000
. Additional paid-in capital
. Revaluation reserves
. Legal reserve	2.024	1.567	1.305
. Reserve for Own shares
. Statute reserves
. Other reserves	38.455	29.772	24.800
. Accumulated Profits (Losses)	-5.226	-5.226	-5.226
. Profit( loss) of the year	2.538	9.139	5.232
. Advances on dividends
. Partial loss of the year Coverage
Total Stockholders'Equity	89.791	87.252	78.111
RESERVES FOR RISKS AND CHARGES
. . Reserve for employee termination indem.
. . Taxation fund, also differed
. . Other funds
Total Reserves for Risks and Charges
Employee termination indemnities	559	559	4.085
ACCOUNTS PAYABLE
. . . . Within 12 months	433.382	449.188	298.018
. . . . Beyond 12 months	49.828	16.338	73.772
. . Bonds
. . . . Within 12 months
. . . . Beyond 12 months
. . Convertible bonds repayable
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to shareholders for financing			55.000
. . . . Within 12 months
. . . . Beyond 12 months			55.000
. . Due to banks			91.470
. . . . Within 12 months			91.470
. . . . Beyond 12 months
. . Due to other providers of finance			18.772
. . . . Within 12 months
. . . . Beyond 12 months			18.772
. . Advances from customers
. . . . Within 12 months
. . . . Beyond 12 months
. . Trade payables			155.455
. . . . Within 12 months			155.455
. . . . Beyond 12 months
. . Securities issued
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to subsidiary companies
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to associated companies
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to holding companies
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to the tax authorities			40.010
. . . . Within 12 months			40.010
. . . . Beyond 12 months
. . Due to social security and welfare inst.			4.571
. . . . Within 12 months			4.571
. . . . Beyond 12 months
. . Other payables			6.512
. . . . Within 12 months			6.512
. . . . Beyond 12 months
Total accounts payable	483.210	465.526	371.790
ADJUSTMENT ACCOUNTS
. Agio on loans
. Other adjustment accounts
Total adjustment accounts
TOTAL LIABILITIES	573.560	553.337	453.986

MEMORANDUM ACCOUNTS

Third party goods

Investment accounts

Risk accounts

Civil and fiscal norms relation

PROFIT AND LOSS ACCOUNTS

VALUE OF PRODUCTION
. Revenues from sales and services	493.130	414.586	492.973
. Changes in work in progress
. Changes in semi-manufact. products
. Capitalization of internal work
. Other income and revenues	10	14	17
. . Contributions for operating expenses
. . Different income and revenues	10	14	17
Total value of production	493.140	414.600	492.990
PRODUCTION COSTS
. Raw material,other materials and consum.	299.223	375.137	333.354
. Services received	20.114	26.224	18.660
. Leases and rentals	82.962	38.400	31.736
. Payroll and related costs		7.513	26.262
. . Wages and salaries		6.149	23.990
. . Social security contributions		882	474
. . Employee termination indemnities		482	1.798
. . Pension and similar
. . Other costs
. Amortization and depreciation	21.497	13.599	9.932
. . Amortization of intangible fixed assets	5.451	979	1.037
. . Amortization of tangible fixed assets	16.046	12.620	8.895
. . Depreciation of tangible fixed assets
. . Writedown of current receiv.and of liquid
. Changes in raw materials	14.820	-82.500	39.750
. Provisions to risk reserves
. Other provisions
. Other operating costs	3.471	4.857	5.089
Total production costs	442.087	383.230	464.783
Diff. between value and cost of product.	51.053	31.370	28.207
FINANCIAL INCOME AND EXPENSE
. Income from equity investments
. . In subsidiary companies
. . In associated companies
. . In other companies
. Other financial income		1.967	13
. . Financ.income from receivables
. . . Towards subsidiary companies
. . . Towards associated companies
. . . Towards holding companies
. . . Towards other companies
. . Financ.income from secur. t.f.assets
. . Financ.income from secur. cur.assets
. . Financ.income other than the above		1.967	13
. . . - Subsidiary companies
. . . - Associated companies
. . . - Holding companies
. . . - Other companies
. Interest and other financial expense	-31.500	-18.135	-15.476
. . Towards subsidiary companies
. . Towards associated companies
. . Towards holding companies
. . Towards other companies
Total financial income and expense	-31.500	-16.168	-15.463
ADJUSTMENTS TO FINANCIAL ASSETS
. Revaluations
. . Of equity investments
. . Of financ.fixed assets not repres.E.I.
. . Of securities incl.among current assets
. Devaluation
. . Of equity investments
. . Of financial fixed assets (no equity inv)
. . Of securities included among current ass
Total adjustments to financial assets
EXTRAORDINARY INCOME AND EXPENSE
. Extraordinary income	1	336	678
. . Gains on disposals
. . Other extraordinary income	1	336	678
. Extraordinary expense	-9.314	-471	-1.452
. . Losses on disposals
. . Taxes relating to prior years
. . Other extraordinary expense	-9.314	-471	-1.452
Total extraordinary income and expense	-9.313	-135	-774
Results before income taxes	10.240	15.067	11.970
. Taxes on current income	7.702	5.928	6.738
. . current taxes	7.702
. . differed taxes(anticip.)
. Net income for the period	2.538	9.139	5.232
. Adjustments in tax regulations pursuance
. Provisions in tax regulations pursuance
. Profit (loss) of the year	2.538	9.139	5.232

RATIOS	Value Type	as at 31/12/2009	as at 31/12/2008	as at 31/12/2007	Sector Average
COMPOSITION ON INVESTMENT
Rigidity Ratio	Units	0,16	0,16	0,15	0,11
Elasticity Ratio	Units	0,84	0,84	0,85	0,86
Availability of stock	Units	0,77	0,82	0,82	0,47
Total Liquidity Ratio	Units	0,07	0,02	0,03	0,31
Quick Ratio	Units	0,05	0,00	0,01	0,05
COMPOSITION ON SOURCE
Net Short-term indebtedness	Units	4,48	5,14	3,75	4,84
Self Financing Ratio	Units	0,16	0,16	0,17	0,12
Capital protection Ratio	Units	0,39	0,30	0,27	0,60
Liabilities consolidation quotient	Units	0,12	0,04	0,26	0,14
Financing	Units	5,38	5,34	4,76	6,25
Permanent Indebtedness Ratio	Units	0,24	0,19	0,34	0,28
M/L term Debts Ratio	Units	0,09	0,03	0,17	0,09
Net Financial Indebtedness Ratio	Units	n.c.	n.c.	2,05	0,96
CORRELATION
Fixed assets ratio	Units	1,52	1,19	2,26	1,99
Current ratio	Units	1,11	1,04	1,29	1,14
Acid Test Ratio-Liquidity Ratio	Units	0,09	0,02	0,04	0,47
Structure's primary quotient	Units	0,97	1,00	1,13	1,08
Treasury's primary quotient	Units	0,07	0,00	0,02	0,08
Rate of indebtedness ( Leverage )	%	638,77	634,18	581,21	770,96
Current Capital ( net )	Value	47.471	16.122	86.521	102.303
RETURN
Return on Sales	%	4,87	5,48	3,08	1,93
Return on Equity - Net- ( R.O.E. )	%	2,83	10,47	6,70	5,27
Return on Equity - Gross - ( R.O.E. )	%	11,40	17,27	15,32	22,08
Return on Investment ( R.O.I. )	%	8,90	5,67	6,21	3,92
Return/ Sales	%	10,35	7,57	5,72	2,77
Extra Management revenues/charges incid.	%	4,97	29,13	18,55	20,55
Cash Flow	Value	24.035	22.738	15.164	30.834
Operating Profit	Value	51.053	31.370	28.207	44.504
Gross Operating Margin	Value	72.550	44.969	38.139	71.265
MANAGEMENT
Credits to clients average term	Days	n.c.	n.c.	4,10	39,61
Debts to suppliers average term	Days	n.c.	n.c.	145,83	150,27
Average stock waiting period	Days	321,34	395,09	272,02	110,30
Rate of capital employed return ( Turnover )	Units	0,86	0,75	1,09	1,39
Rate of stock return	Units	1,12	0,91	1,32	3,24
Labour cost incidence	%	n.c.	1,81	5,33	10,17
Net financial revenues/ charges incidence	%	- 6,39	- 3,90	- 3,14	- 0,97
Labour cost on purchasing expenses	%	n.c.	1,96	5,65	10,14
Short-term financing charges	%	6,52	3,90	4,16	2,14
Capital on hand	%	116,31	133,47	92,09	71,43
Sales pro employee	Value	n.c.	414.586	492.973	294.208
Labour cost pro employee	Value	n.c.	7.513	26.262	31.296

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:

10.000 Eur.

Market / Territory Data

Population living in the province	:	1.089.770
Population living in the region	:	5.788.986
Number of families in the region	:	1.966.064

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

- per food products	:	475
- per non food products	:	1.304
- per energy consume	:	79

Sector Data

The values are calculated on a base of 647 significant companies.

The companies cash their credits on an average of 39 dd.

The average duration of suppliers debts is about 150 dd.

The sector's profitability is on an average of 1,93%.

The labour cost affects the turnover in the measure of 10,17%.

Goods are held in stock in a range of 110 dd.

The difference between the sales volume and the resources used to realize it is about 1,39.

The employees costs represent the 10,14% of the production costs.

Statistical Detrimental Data

The area is statistically considered remarkably risky.

In the region 80.616 protested subjects are found; in the province they count to 17.809.

The insolvency index for the region is 1,40, , while for the province it is 1,64.

Total Bankrupt companies in the province : 4.254.

Total Bankrupt companies in the region : 28.514.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.59
UK Pound	1	Rs.73.44
Euro	1	Rs.64.81

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	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
--	NB	New Business	--

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.