MIRA INFORM REPORT

Report Date :

10.12.2014

IDENTIFICATION DETAILS

Name :	EUROSCARPA SOCIETA' A RESPONSABILITA' LI MITATA
Registered Office :	Via Fonte Giugliano, 5, 63812- Montegranaro (FM)
Country :	Italy
Financials (as on) :	31.12.2013
Date of Incorporation :	24.08.1976
Legal Form :	Limited Liability Company
Line of Business :	Wholesaler of Sewing and Knitting Machines for the Textile Industry
No of Employees :	13

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

Status :	Satisfactory
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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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 & address

Euroscarpa Societa' A Responsabilita' Li Mitata

Via Fonte Giugliano, 5

63812 - Montegranaro (FM) -IT-

Summary

Fiscal Code	:	00344770441
Legal Form	:	Limited liability company
start of Activities	:	14/01/1977
Equity	:	1.000.000
Turnover Range	:	3.000.000/3.750.000
Number of Employees	:	13

Activity

Wholesaler of Sewing and Knitting Machines for the Textile Industry

Legal Data

Legal Form : Limited liability company

Fiscal Code : 00344770441

Chamber of Commerce no. : 82280 of Ascoli Piceno since 12/10/1976

Chamber of Commerce no. : 82280 of Fermo since 27/02/2009

Chamber of Commerce no. : 125241 of Macerata

Firms' Register : AP019-1133 of Ascoli Piceno since 19/02/1996

V.A.T. Code : 00344770441

Foundation date	: 24/08/1976
Establishment date	: 24/08/1976
Start of Activities	: 14/01/1977
Legal duration	: 31/12/2020
Nominal Capital	: 46.800
Subscribed Capital	: 46.800
Paid up Capital	: 46.800

Members

Camerlengo

Enzo

Born in Montegranaro

(AP)

on 11/07/1946

- Fiscal Code : CMRNZE46L11F522G

Residence:

Montegranarese

, 4360

- 63811

Sant'Elpidio a Mare

(FM)

- IT -

Position	Since	Shares Amount	% Ownership
Sole Director	16/10/2014

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.

Camerlengo

Enzo

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Si.de.pel S.p.a.	Montegranaro (FM) - IT -	01131790444	Sole Director	Active	Registered
Progetto Espansione	Corridonia (MC) - IT -	01084100435	Director	Withdrawn	Registered
Progetto Espansione	Corridonia (MC) - IT -	01084100435	Baord of Directors' member	Withdrawn	Registered
Lucana Calzature S.r.l.	Maratea (PZ) - IT -	01436150443	Responsible	-	Bankrupt
Ottagono S.p.a.	Porto San Giorgio (FM) - IT -	01918150440	Assistant board Chairman	Withdrawn	Registered
X Bacco S.r.l - In Liquidazione	Torre San Patrizio (FM) - IT -	01608880447	Director	Withdrawn	In liquidation

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
Camerlengo Enzo	Sant'Elpidio a Mare - IT -	CMRNZE46L11F522G	25.740 .Eur	55,00
CAMPETELLA ORLANDO	Montegranaro - IT -	CMPRND46A07F482Q	9.360 .Eur	20,00
MORELLI FRANCO	Montegranaro - IT -	MRLFNC50L09F549R	9.360 .Eur	20,00
Mazzaferro Emilio	Montegranaro - IT -	MZZMLE51R29D760C	2.340 .Eur	5,00

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
Euro G. Srl - In Liquidazione		01815210446	7.500 .Eur	50,00			Active
C.r.a.m. (consorzio Regionale Accessori Macchine)	Fermo - IT -	01335670442					Active

Firm's location and structure

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

-	Legal and operative seat

Fonte Giugliano

, 5

- 63014

- Montegranaro

(FM)

- IT -

PHONE

: 0734/890890

PHONE

: 0734890820

FAX	: 0734890111

-

Branch

(Workshop)

since 02/10/1995

Madonna Di Loreto,

, SCN

- 62015

- Monte San Giusto

(MC)

- IT -

PHONE

: 073353961

Employees

: 13

Assistants

: 1

Fittings and Equipment for a value of 55.000

Eur

Stocks for a value of 1.100.000

Eur

Historical Information and/or Firm's Status

EX-MEMBERS / EX-POSITIONS:

Mazzoni

Rolando

Born in Fermo

(AP)

on 19/09/1972

- Fiscal Code : MZZRND72P19D542T

Residence:

Donizetti

, 20

- 63900

Fermo

(FM)

- IT -

Ex-Postions

Temporary Auditor

Cardinali

Sergio

Born in Monte San Martino

(MC)

on 10/01/1955

- Fiscal Code : CRDSRG55A10F622F

Residence:

Vecchiotti

, 12

- 63023

Fermo

(AP)

- IT -

Ex-Postions

Permanent Auditor

Marzialetti

Clarissa

Born in Montegiorgio

(AP)

on 22/02/1949

- Fiscal Code : MRZCRS49B62F520G

Residence:

Copernico

, 5

- 63025

Montegiorgio

(AP)

- IT -

Ex-Postions

Chairman of the Board of Aud.

Ercoli

Marcella

Born in Fermo

(AP)

on 25/12/1955

- Fiscal Code : RCLMCL55T65D542O

Residence:

Norcia

, 2

- 63023

Fermo

(AP)

- IT -

Ex-Postions

Temporary Auditor

Tomassini

Massimo

Born in Fermo

(AP)

on 17/04/1960

- Fiscal Code : TMSMSM60D17D542J

Residence:

C.colombo

, 99

- 63018

Porto Sant'Elpidio

(FM)

- IT -

Ex-Postions

Permanent Auditor

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.

Financial and Economical Analysis

Company's starting of activities dates back to 1977.

The economic-financial analysis has been made on the base of the b/s of the latests three years.

Under an economic point of view, profits were registered during the last years with a r.o.e. of 2,08% in 2013 but without a significant increase in the turnover.

The operating result was positive in the last financial year (4,57%) falling within the field's average.

An operating result of Eur. 192.365 has been registered. on stable levels if compared to the previous year.

The gross operating margin of the latest financial year is of Eur. 211.504 ,with no change if compared to the year before.

The analysis shows a fair financial position as the indebtedness volume is acceptable (3,17) yet on the increase as against the previous accounting period.

With regard to equity capital, an amount of Eur. 887.992 is registered. , unchanged as opposed to the preceding year.

During the last financial year total debts volume reached Eur. 3.138.813 (Eur. 321.926 were m/l term ones) showing a stable trend as opposed to 2012 (Eur. 2.915.937).

Current liquid assets is positive.

Eur. 37.594 is the value of cash flow during the year 2013

Labour cost expenses amount to Eur. 380.954 , representing 12,51% on the total of production costs. , whereas the incidence on sales revenues is of 12,15%.

Finacial chareges are high: the incidence on sales volume amounts to -4,52%

Financial Data

Complete balance-sheet for the year

al 31/12/2013

(in Eur

x 1)

Item Type	Value
Sales	3.135.705
Profit (Loss) for the period	18.455

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 31/12/2013 - 12 Mesi - Currency: - Amounts x 1

Years

2013

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
. TANGIBLE FIXED ASSETS
. . Real estate
. . Plant and machinery
. . Industrial and commercial equipment
. . Other assets
. . Assets under construction and advances
. Total Tangible fixed assets	662.738
. 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	9.824
Total fixed assets	672.562
CURRENT ASSETS
. INVENTORIES
. . Raw materials and other consumables
. . Work in progress and semimanufactured
. . Work in progress on order
. . Finished goods
. . Advance payments
. Total Inventories	1.103.055
. CREDITS NOT HELD AS FIXED ASSETS
. . Within 12 months	2.353.721
. . Beyond 12 months
. . Trade receivables
. . . . Within 12 months
. . . . 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
. . . . Within 12 months
. . . . Beyond 12 months
. . Receivables for anticipated taxes
. . . . Within 12 months
. . . . Beyond 12 months
. . Receivables due from third parties
. . . . Within 12 months
. . . . Beyond 12 months
. Total Credits not held as fixed assets	2.353.721
. 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	68.234
. LIQUID FUNDS
. . Bank and post office deposits
. . Checks
. . Banknotes and coins
. Total Liquid funds	2.594
Total current assets	3.527.604
ADJUSTMENT ACCOUNTS
. Discount on loans
. Other adjustment accounts	6.951
Total adjustments accounts	6.951
TOTAL ASSETS	4.207.117
LIABILITIES
STOCKHOLDERS' EQUITY
. Capital stock	46.800
. Additional paid-in capital
. Revaluation reserves	445.238
. Legal reserve	19.158
. Reserve for Own shares
. Statute reserves
. Other reserves	390.817
. Accumulated Profits (Losses)	-32.476
. Profit( loss) of the year	18.455
. Advances on dividends
. Partial loss of the year Coverage
Total Stockholders'Equity	887.992
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	150.532
ACCOUNTS PAYABLE
. . . . Within 12 months	2.816.887
. . . . Beyond 12 months	321.926
. . Bonds
. . . . Within 12 months
. . . . Beyond 12 months
. . Convertible bonds repayable
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to shareholders for financing
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to banks
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to other providers of finance
. . . . Within 12 months
. . . . Beyond 12 months
. . Advances from customers
. . . . Within 12 months
. . . . Beyond 12 months
. . Trade payables
. . . . Within 12 months
. . . . 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
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to social security and welfare inst.
. . . . Within 12 months
. . . . Beyond 12 months
. . Other payables
. . . . Within 12 months
. . . . Beyond 12 months
Total accounts payable	3.138.813
ADJUSTMENT ACCOUNTS
. Agio on loans
. Other adjustment accounts	29.780
Total adjustment accounts	29.780
TOTAL LIABILITIES	4.207.117

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	3.135.705
. Changes in work in progress	-25.964
. Changes in semi-manufact. products
. Capitalization of internal work
. Other income and revenues	128.615
. . Contributions for operating expenses
. . Different income and revenues	128.615
Total value of production	3.238.356
PRODUCTION COSTS
. Raw material,other materials and consum.	2.295.307
. Services received
. Leases and rentals	322.711
. Payroll and related costs	380.954
. . Wages and salaries	272.266
. . Social security contributions	85.285
. . Employee termination indemnities	22.110
. . Pension and similar
. . Other costs	1.293
. Amortization and depreciation	19.139
. . Amortization of intangible fixed assets
. . Amortization of tangible fixed assets	19.139
. . Depreciation of tangible fixed assets
. . Writedown of current receiv.and of liquid
. Changes in raw materials
. Provisions to risk reserves
. Other provisions
. Other operating costs	27.880
Total production costs	3.045.991
Diff. between value and cost of product.	192.365
FINANCIAL INCOME AND EXPENSE
. Income from equity investments
. . In subsidiary companies
. . In associated companies
. . In other companies
. Other financial income	8.850
. . 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	8.850
. . . - Subsidiary companies
. . . - Associated companies
. . . - Holding companies
. . . - Other companies	8.850
. Interest and other financial expense	-150.643
. . Towards subsidiary companies
. . Towards associated companies
. . Towards holding companies
. . Towards other companies	150.643
Total financial income and expense	-141.793
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	33.132
. . Gains on disposals
. . Other extraordinary income	33.132
. Extraordinary expense	-9.235
. . Losses on disposals
. . Taxes relating to prior years
. . Other extraordinary expense	-9.235
Total extraordinary income and expense	23.897
Results before income taxes	74.469
. Taxes on current income	56.014
. . current taxes	56.014
. . differed taxes(anticip.)
. Net income for the period	18.455
. Adjustments in tax regulations pursuance
. Provisions in tax regulations pursuance
. Profit (loss) of the year	18.455

RATIOS	Value Type	as at 31/12/2013	Sector Average
COMPOSITION ON INVESTMENT
Rigidity Ratio	Units	0,16	0,10
Elasticity Ratio	Units	0,84	0,87
Availability of stock	Units	0,26	0,21
Total Liquidity Ratio	Units	0,58	0,61
Quick Ratio	Units	0,02	0,03
COMPOSITION ON SOURCE
Net Short-term indebtedness	Units	3,17	4,04
Self Financing Ratio	Units	0,21	0,16
Capital protection Ratio	Units	0,93	0,59
Liabilities consolidation quotient	Units	0,17	0,11
Financing	Units	3,53	4,85
Permanent Indebtedness Ratio	Units	0,32	0,26
M/L term Debts Ratio	Units	0,11	0,07
Net Financial Indebtedness Ratio	Units	n.c.	1,01
CORRELATION
Fixed assets ratio	Units	2,02	2,12
Current ratio	Units	1,25	1,16
Acid Test Ratio-Liquidity Ratio	Units	0,86	0,88
Structure's primary quotient	Units	1,32	1,40
Treasury's primary quotient	Units	0,03	0,04
Rate of indebtedness ( Leverage )	%	473,78	620,22
Current Capital ( net )	Value	710.717	131.414
RETURN
Return on Sales (R.O.S.)	%	1,20	2,27
Return on Equity - Net- ( R.O.E. )	%	2,08	6,70
Return on Equity - Gross - ( R.O.E. )	%	8,39	18,85
Return on Investment ( R.O.I. )	%	4,57	4,76
Return/ Sales	%	6,13	3,70
Extra Management revenues/charges incid.	%	9,59	28,15
Cash Flow	Value	37.594	39.655
Operating Profit	Value	192.365	63.123
Gross Operating Margin	Value	211.504	99.042
MANAGEMENT
Credits to clients average term	Days	n.c.	119,16
Debts to suppliers average term	Days	n.c.	116,83
Average stock waiting period	Days	126,64	58,39
Rate of capital employed return ( Turnover )	Units	0,75	1,36
Rate of stock return	Units	2,84	6,14
Labour cost incidence	%	12,15	8,98
Net financial revenues/charges incidence	%	-4,52	-1,08
Labour cost on purchasing expenses	%	12,51	8,98
Short-term financing charges	%	4,80	2,60
Capital on hand	%	134,17	73,17
Sales pro employee	Value	285.064	394.001
Labour cost pro employee	Value	34.632	34.340

Market / Territory Data

Population living in the province	:	1.518.780
Population living in the region	:	0
Number of families in the region	:	0

Monthly family expenses average in the region (in .) :

- per food products	:	0
- per non food products	:	0
- per energy consume	:	0

Sector Data

The values are calculated on a base of 2.551 significant companies.

The companies cash their credits on an average of 119 dd.

The average duration of suppliers debts is about 117 dd.

The sector's profitability is on an average of 2,27%.

The labour cost affects the turnover in the measure of 8,98%.

Goods are held in stock in a range of 58 dd.

The difference between the sales volume and the resources used to realize it is about 1,36.

The employees costs represent the 8,98% of the production costs.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.88
UK Pound	1	Rs.96.90
Euro	1	Rs.76.29

INFORMATION DETAILS

Analysis Done by :	RAS
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%)

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.