MIRA INFORM REPORT

Report Date :

08.12.2014

IDENTIFICATION DETAILS

Name :	BORGHI S.P.A.
Registered Office :	Via Cristoforo Colombo, 12 41013 - Castelfranco Emilia (MO)
Country :	Italy
Date of Incorporation :	29.04.2014
Legal Form :	Joint Stock Company
Line of Business :	Manufacture of other mechanic products and other general-purpose machinery
No. of Employees :	From 176 to 200

RATING & COMMENTS

MIRA’s Rating :

NB

RATING		STATUS	PROPOSED CREDIT LINE
--	NB	New Business	--

Status :	New Business
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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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, highly subsidized, agricultural south, where unemployment is higher. 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 its exceptionally high public debt and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, topping 133% of GDP in 2013, but investor concerns about Italy and the broader euro-zone crisis eased in 2013, bringing down Italy's borrowing costs on sovereign government debt from euro-era. The government still faces pressure from investors and European partners to sustain its efforts to address Italy's long-standing structural impediments to growth, such as labor market inefficiencies and widespread tax evasion. In 2013 economic growth and labor market conditions deteriorated, with growth at -1.8% and unemployment rising to 12.4%, with youth unemployment around 40%. Italy's GDP is now 8% below its 2007 pre-crisis level.

Source : CIA

Company Name and address

BORGHI S.P.A.

Via Cristoforo Colombo, 12

41013 - Castelfranco Emilia (MO) -IT-

Summary

Fiscal Code	:	03575150366
Legal Form	:	Joint stock company
start of Activities	:	01/06/2014
Number of Employees	:	from 176 to 200

Activity

Manufacture of other mechanic products and other general-purpose machinery

Legal Data

Legal Form : Joint stock company

Fiscal Code : 03575150366

Chamber of Commerce no. : 399708 of Modena since 05/05/2014

V.A.T. Code : 03575150366

Establishment date	: 29/04/2014
Start of Activities	: 01/06/2014
Legal duration	: 31/12/2050
Nominal Capital	: 2.000.000
Subscribed Capital	: 2.000.000
Paid up Capital	: 2.000.000

Members

Officina Borghi S.p.a.

Residence:

Cristoforo Colombo

, 12

- 41013

Castelfranco Emilia

(MO)

- IT -

Position	Since	Shares Amount	% Ownership
Sole partner	29/04/2014

No Prejudicial events are reported

No Protests registered

Ferrari

Enzo

Born in Castelfranco Emilia

(MO)

on 29/01/1950

- Fiscal Code : FRRNZE50A29C107E

Residence:

Galileo Galilei

, 25

- 41013

Castelfranco Emilia

(MO)

- IT -

Position	Since	Shares Amount	% Ownership
Board Chairman	02/09/2014
Director	02/09/2014

No Prejudicial events are reported

No Protests registered

Roversi

Gianpaolo

Born in Castelfranco Emilia

(MO)

on 13/06/1967

- Fiscal Code : RVRGPL67H13C107T

Residence:

Rosario Livatino

, 26

- 41018

San Cesario sul Panaro

(MO)

- IT -

Position	Since	Shares Amount	% Ownership
Director	02/09/2014

Boucherie

Bart Gerard

Born in Izegem

( )

on 22/08/1961

- Fiscal Code : BCHBTG61M22Z103J

Residence:

Ambachtenstraat

, 84

- 08870

Izegem

- IT -

Position	Since	Shares Amount	% Ownership
Director	02/09/2014

Clarysse

Dirk

Born in Roeselare

( )

on 08/11/1957

- Fiscal Code : CLRDRK57S08Z103Y

Residence:

Ten Brielensesteenweg

, 109

- 08940

Wervik

- IT -

Position	Since	Shares Amount	% Ownership
Director	02/09/2014

Officina Borghi S.p.a.

Position	Since	Shares Amount	% Ownership
Partner

No Prejudicial events are reported

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 have holded positions.

Ferrari

Enzo

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Officina Borghi S.p.a.	Castelfranco Emilia (MO) - IT -	01346250366	Director	Active	Registered
Officina Borghi S.p.a.	Castelfranco Emilia (MO) - IT -	01346250366	Assistant board Chairman	Withdrawn	Registered
Officina Borghi S.p.a.	Castelfranco Emilia (MO) - IT -	01346250366	Board Chairman	Withdrawn	Registered
Unimac S.r.l.	Castelfranco Emilia (MO) - IT -	03279300374	Director	Active	Registered
Techno Plastic S.r.l.	Castelfranco Emilia (MO) - IT -	02579000361	Director	Active	Registered
Consorzio Area Industriale Cavazzona	Castelfranco Emilia (MO) - IT -	02736490364	Assistant board Chairman	Active	Registered

The indication "REGISTERED" as Firm Status could refer to Firms in Liquidation, Active, Inactive, etc.

For more information, in this case, we advise to request further investigations.

Capital Shareholders

Shareholders' list as at date of data collection:

Firm's Style / Name	Seat / Residence	Fiscal Code	Owned Shares	% Ownership
Officina Borghi S.p.a.		01346250366	2.000.000 .Eur	100,00

Direct Participations

The Company under review has participations in the following Companies:

Firm's Style	Seat	Fiscal Code	Owned Shares Amount	% Ownership	since	until	Share Status
BELLUCCI S.R.L.	SPILAMBERTO - IT -	02777550365	25.000 .Eur	50,00			Active

Firm's location and structure

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

-	Legal and operative seat

Cristoforo Colombo

, 12

- 41013

- Castelfranco Emilia

(MO)

- IT -

Employees

: 176

Protests

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

Data Base Prejudicial Events Search

Search performed on a National Scale

Prejudicial Events Search Result: NEGATIVE

Search performed on a specialized data base.

Legal Procedures

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

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.

3) Risk evaluation and Credit Opinion have been performed on the base of the actual data at the moment of their availability.

Market / Territory Data

Population living in the province	:	659.925
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 1.964 significant companies.

The companies cash their credits on an average of 111 dd.

The average duration of suppliers debts is about 127 dd.

The sector's profitability is on an average of 3,79%.

The labour cost affects the turnover in the measure of 18,94%.

Goods are held in stock in a range of 63 dd.

The difference between the sales volume and the resources used to realize it is about 1,10.

The employees costs represent the 18,99% 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 3.557.

The insolvency index for the region is 0,46, , while for the province it is 0,55.

Total Bankrupt companies in the province : 2.526.

Total Bankrupt companies in the region : 14.698.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.85
UK Pound	1	Rs.96.73
Euro	1	Rs.76.53

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	NIT

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.