MIRA INFORM REPORT

Report Date :

07.12.2012

IDENTIFICATION DETAILS

Name :	TRAFILERIA LOMBARDA SPA
Registered Office :	Via Michele Pericle Negrotto 59, Milano, 20157
Country :	Italy
Financials (as on) :	31.12.2011
Date of Incorporation :	24.09.1945
Com. Reg. No.:	00754640159
Legal Form :	Public Independent Company
Line of Business :	Subject is engaged in manufacture of steel wire by cold drawing or stretching
No. of Employees :	23 (2010)

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but Correct
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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Italy	A2	A2

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

ITALY - ECONOMIC OVERVIEW

Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy is the third-largest economy in the euro-zone, but exceptionally high public debt burdens and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, reaching 120% of GDP in 2011, and borrowing costs on sovereign government debt have risen to record levels. During the second half of 2011 the government passed a series of three austerity packages to balance its budget by 2013 and decrease its public debt burden. These measures included a hike in the value-added tax, pension reforms, and cuts to public administration. The government also faces pressure from investors and European partners to address Italy's long-standing structural impediments to growth, such as an inflexible labor market and widespread tax evasion. The international financial crisis worsened conditions in Italy''s labor market, with unemployment rising from 6.2% in 2007 to 8.4% in 2011, but in the longer-term Italy''s low fertility rate and quota-driven immigration policies will increasingly strain its economy. The euro-zone crisis along with Italian austerity measures have reduced exports and domestic demand, slowing Italy''s recovery. Italy''s GDP is still 5% below its 2007 pre-crisis level.

Source : CIA

Company name & address

Trafileria Lombarda SpA

Via Michele Pericle Negrotto 59

Milano, 20157

Italy

Tel: +39 02 38010040

Fax: +39 02 33400539

Synthesis

Employees: 23

Company Type: Public Independent

Incorporation Date: 24-Sep-1945

Financials in: USD (Millions)

Fiscal Year End: 31-Dec-2011

Reporting Currency: Euro

Annual Sales: 7.9

Total Assets: 5.2

Business Description

Trafileria Lombarda SpA is primarily engaged in manufacture of steel wire by cold drawing or stretching.

Industry

Industry Construction - Supplies and Fixtures

ANZSIC 2006: 2291 - Spring and Wire Product Manufacturing

NACE 2002: 2734 - Wire drawing

NAICS 2002: 331222 - Steel Wire Drawing

UK SIC 2003: 2734 - Wire drawing

UK SIC 2007: 2434 - Cold drawing of wire

US SIC 1987: 3315 - Steel Wiredrawing and Steel Nails and Spikes

Key Executives

Name Title

Fulvio Maria Dossena President

1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7191895

2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.770327

Corporate Overview

Location

Via Michele Pericle Negrotto 59

Milano, 20157

Italy

Tel: +39 02 38010040

Fax: +39 02 33400539

Sales EUR(mil): 5.7

Assets EUR(mil): 4.0

Employees: 23

Fiscal Year End: 31-Dec-2011

Industry: Construction - Supplies and Fixtures

Incorporation Date: 24-Sep-1945

Company Type: Public Independent

Quoted Status: Not Quoted

Registered No.(ITA): 00754640159

President: Fulvio Maria Dossena

Contents

Industry Codes

Business Description

Financial Data

Key Corporate Relationships

Industry Codes

ANZSIC 2006 Codes:

2291 - Spring and Wire Product Manufacturing

NACE 2002 Codes:

2734 - Wire drawing

NAICS 2002 Codes:

331222 - Steel Wire Drawing

US SIC 1987:

3315 - Steel Wiredrawing and Steel Nails and Spikes

UK SIC 2003:

2734 - Wire drawing

UK SIC 2007:

2434 - Cold drawing of wire

Business Description

Trafileria Lombarda SpA is primarily engaged in manufacture of steel wire by cold drawing or stretching.

Financial Data

Financials in:	EUR(mil)
Revenue:	5.7
Assets:	4.0
Current Assets:	2.0
Total Liabilities:	4.0
Net Worth:	0.8
Date of Financial Data:	31-Dec-2011

1 Year Growth

-6.4%

NA

Key Corporate Relationships

Bank:	Banca Popolare di Novara Ag, Cassa di Risparmio di Parma e Piacenza Ag

Executive report

Executives

Name	Title	Function
Fulvio Maria Dossena	President	President
Alessandro Francesco Mazzucchi	Managing director	Managing Director
Sergio Secchi	Managing director	Managing Director
Andrea Stoppani	Managing director	Managing Director

Annual Profit & Loss

	31-Dec-2011	31-Dec-2010	31-Dec-2009
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate (Period Average)	0.71919	0.755078	0.719047
Consolidated	No	No	No
Total income	8.2	8.2	3.1
Net sales	7.9	8.1	4.2
Other operating income	0.0	0.0	0.0
Raw materials and consumables employed	5.7	5.5	1.9
Other expenses	0.9	0.8	0.6
Total payroll costs	1.7	1.4	1.4
Fixed asset depreciation and amortisation	0.2	0.2	0.3
Other operating costs	0.1	0.0	0.0
Net operating income	-0.4	0.2	-1.2
Total financial income	0.0	0.0	0.0
Total expenses	0.1	0.1	0.1
Profit before tax	-0.4	0.1	-1.3
Profit after extraordinary items and before tax	-0.4	0.1	-1.3
Total taxation	0.0	0.0	-
Net profit	-	0.1	-
Net loss	0.5	-	1.3

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.770327	0.745406	0.696986
Consolidated	No	No	No
Total stockholders equity	1.1	1.6	1.6
Provision for pensions	0.5	0.4	0.4
Mortgages and loans	0.2	0.3	0.3
Other long-term liabilities	-	-	0.1
Trade creditors	1.3	2.6	1.4
Bank loans and overdrafts	1.8	1.3	1.8
Other current liabilities	0.1	0.2	0.2
Accruals and deferred income	0.2	0.1	0.2
Total current liabilities	3.5	4.2	3.5
Total liabilities (including net worth)	5.2	6.5	5.9
Buildings	2.4	2.6	2.8
Total tangible fixed assets	2.6	2.9	3.3
Total non-current assets	2.6	2.9	3.3
Finished goods	1.2	1.2	1.4
Net stocks and work in progress	1.5	1.3	1.6
Trade debtors	1.0	2.1	1.0
Other receivables	0.1	0.1	0.1
Cash and liquid assets	0.0	0.1	0.0
Total current assets	2.6	3.6	2.6
Total assets	5.2	6.5	5.9

Annual Ratios

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.770327	0.745406	0.696986
Consolidated	No	No	No
Current ratio	0.80	0.90	0.80
Quick ratio	0.30	0.50	0.30
Current liabilities to net worth	0.03%	0.03%	0.02%
Sales per employee	-	0.26	0.13
Profit per employee	-	0.00	-0.04
Average wage per employee	-	0.05	0.05
Net worth	1.1	1.6	1.6
Number of employees	-	23	23

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.47
UK Pound	1	Rs.87.63
Euro	1	Rs.71.12

INFORMATION DETAILS

Report Prepared by :

MNL

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%)

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