MIRA INFORM REPORT

Report Date :

09.11.2012

IDENTIFICATION DETAILS

Name :	P & F GROUP SRL DIVISIONE ABBIGLIAMENTO
Registered Office :	Via Viii Marzo 5, Z.I. Terrafino, Empoli, 50053
Country :	Italy
Financials (as on) :	31.12.2011
Date of Incorporation :	04.05.1984
Com. Reg. No.:	02025150489
Legal Form :	Private Independent Company
Line of Business :	Subject is engaged in dressing and dyeing of furskins and hides with the hair on: scraping, currying, tanning, bleaching, shearing and plucking and dyeing of furskins
No. of Employees :	18 employees

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

P & F Group SRL divisione Abbigliamento

Via Viii Marzo 5

Z.I. Terrafino

Empoli, 50053

Italy

Tel: +39 0571 930152

Fax: +39 0571 930204

Synthesis

Employees: 18

Company Type: Private Independent

Incorporation Date: 04-May-1984

Financials in: USD (Millions)

Fiscal Year End: 31-Dec-2011

Reporting Currency: Euro

Annual Sales: 14.4

Total Assets: 14.2

Business Description

P & F Group SRL divisione Abbigliamento is primarily engaged in dressing and dyeing of furskins and hides with the hair on: scraping, currying, tanning, bleaching, shearing and plucking and dyeing of furskins; and manufacture of articles made of furskins: fur wearing apparel and clothing accessories, assemblies of furskins such as “dropped� furskins, plates, mats, strips, etc., and diverse articles of furskins: rugs, unstuffed pouffes, industrial polishing cloths. This class also includes: manufacture of artificial fur and articles thereof.

Industry

Industry Apparel and Accessories

ANZSIC 2006: 1351 - Clothing Manufacturing

NACE 2002: 1830 - Dressing and dyeing of fur; manufacture of articles of fur

NAICS 2002: 316110 - Leather and Hide Tanning and Finishing

UK SIC 2003: 1830 - Dressing and dyeing of fur; manufacture of articles of fur

UK SIC 2007: 1511 - Tanning and dressing of leather; dressing and dyeing of fur

US SIC 1987: 2371 - Fur Goods

Key Executives

Name Title

Patrizio Liccione Sole administrator

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 Viii Marzo 5

Z.I. Terrafino

Empoli, 50053

Italy

Tel: +39 0571 930152

Fax: +39 0571 930204

Sales EUR(mil): 10.4

Assets EUR(mil): 11.0

Employees: 18

Fiscal Year End: 31-Dec-2011

Industry: Apparel and Accessories

Incorporation Date: 04-May-1984

Company Type: Private Independent

Quoted Status: Not Quoted

Registered No.(ITA): 02025150489

Sole administrator: Patrizio Liccione

Contents

Industry Codes

Business Description

Financial Data

Key Corporate Relationships

Industry Codes

ANZSIC 2006 Codes:

1351 - Clothing Manufacturing

371 - Textile, Clothing and Footwear Wholesaling

NACE 2002 Codes:

1830 - Dressing and dyeing of fur; manufacture of articles of fur

5142 - Wholesale of clothing and footwear

NAICS 2002 Codes:

316110 - Leather and Hide Tanning and Finishing

4243 - Apparel, Piece Goods, and Notions Merchant Wholesalers

US SIC 1987:

2371 - Fur Goods

513 - Apparel, Piece Goods, and Notions

UK SIC 2003:

1830 - Dressing and dyeing of fur; manufacture of articles of fur

5142 - Wholesale of clothing and footwear

UK SIC 2007:

1511 - Tanning and dressing of leather; dressing and dyeing of fur

4642 - Wholesale of clothing and footwear

Business Description

P & F Group SRL divisione Abbigliamento is primarily engaged in dressing and dyeing of furskins and hides with the hair on: scraping, currying, tanning, bleaching, shearing and plucking and dyeing of furskins; and manufacture of articles made of furskins: fur wearing apparel and clothing accessories, assemblies of furskins such as “dropped� furskins, plates, mats, strips, etc., and diverse articles of furskins: rugs, unstuffed pouffes, industrial polishing cloths. This class also includes: manufacture of artificial fur and articles thereof.

Financial Data

Financials in:	EUR(mil)
Revenue:	10.4
Assets:	11.0
Current Assets:	10.7
Total Liabilities:	11.0
Net Worth:	4.6
Date of Financial Data:	31-Dec-2011

1 Year Growth

-18.2%

NA

Key Corporate Relationships

Bank:	Intesa Sanpaolo Ag, Cassa di Risparmio di San Miniato Ag, Unicredit Ag

Executive report

Executives

Name	Title	Function	Source
Patrizio Liccione	Sole administrator	President	D&B

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	17.4	17.2	20.6
Net sales	14.4	16.8	20.2
Other operating income	0.1	0.1	0.1
Raw materials and consumables employed	12.2	12.8	14.9
Other expenses	2.9	3.3	3.8
Total payroll costs	0.8	0.7	0.7
Fixed asset depreciation and amortisation	0.1	0.1	0.1
Other operating costs	0.6	0.1	0.1
Net operating income	0.9	0.1	1.1
Total financial income	-0.4	0.4	-0.2
Total expenses	0.1	0.1	0.1
Profit before tax	0.4	0.4	0.8
Extraordinary result	0.0	0.0	-0.1
Profit after extraordinary items and before tax	0.4	0.3	0.7
Total taxation	0.2	0.1	0.3
Net profit	0.2	0.2	0.4

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	5.9	5.9	6.1
Provision for risks	0.2	0.2	0.2
Provision for pensions	0.1	0.1	0.1
Trade creditors	1.4	1.6	2.0
Bank loans and overdrafts	6.4	6.3	8.1
Other current liabilities	0.2	0.2	0.2
Accruals and deferred income	0.0	0.0	0.0
Total current liabilities	8.0	8.0	10.4
Total liabilities (including net worth)	14.2	14.3	16.8
Intangibles	0.0	0.0	0.0
Total tangible fixed assets	0.2	0.2	0.3
Long-term investments	0.0	0.0	0.0
Total financial assets	0.1	0.1	0.1
Total non-current assets	0.3	0.3	0.3
Finished goods	5.0	2.4	2.3
Net stocks and work in progress	5.2	2.6	2.5
Trade debtors	7.6	10.1	12.1
Other receivables	0.3	0.3	0.1
Cash and liquid assets	0.7	0.9	1.5
Accruals	0.1	0.1	0.2
Total current assets	14.0	14.0	16.5
Total assets	14.2	14.3	16.8

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	1.80	1.70	1.60
Quick ratio	1.10	1.40	1.30
Current liabilities to net worth	0.01%	0.01%	0.02%
Sales per employee	0.58	0.75	0.91
Profit per employee	0.02	0.01	0.03
Average wage per employee	0.03	0.03	0.03
Net worth	5.9	5.9	6.1
Number of employees	18	17	16

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.44
UK Pound	1	Rs.87.00
Euro	1	Rs.69.43

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.