MIRA INFORM REPORT

Report Date :

30.12.2014

IDENTIFICATION DETAILS

Name :	LEGNOMARKET S.R.L.
Registered Office :	Via Per Meda, 33, 22060 – Novedrate (CO)
Country :	Italy
Financials (as on) :	31.12.2013
Date of Incorporation :	28.12.1976
Legal Form :	Sole-Member Limited Liability Company
Line of Business :	· Engaged in dealing wood veneer including burls and Curls (Crotches) which can be utilized for Decorative Panels, Furniture, Marketry, Car Dashboards & Musical Instruments. · Engaged as Wholesaler of Wood, Semi-Finished in Wood and Artificial Wood
No of Employees :	22

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 :	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 – 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

Legnomarket S.r.l.

Via Per Meda, 33

22060 - Novedrate (CO) -IT-

Summary

Fiscal Code	:	00616140133
Legal Form	:	Sole-Member Limited Liability Company
start of Activities	:	08/06/1977
Equity	:	Over 2.582.254
Turnover Range	:	5.000.000/6.500.000
Number of Employees	:	22

Activity

· Engaged in dealing wood veneer including burls and Curls (Crotches) which can be utilized for Decorative Panels, Furniture, Marketry, Car Dashboards & Musical Instruments.

· Engaged as Wholesaler of wood, semi-finished in wood and artificial wood

Legal Data

Legal Form : Sole-Member Limited Liability Company

Fiscal Code : 00616140133

Foreign Trade Reg. no. : CO024661 since 18/02/1992

Foreign Trade Reg. no. : 24661 of Como since 18/02/1992

Chamber of Commerce no. : 153471 of Como since 17/01/1977

Chamber of Commerce no. : 1397121 of Monza e Brianza

Chamber of Commerce no. : 1397121 of Milano

Firms' Register : CO075-10163 of Como since 19/02/1996

V.A.T. Code : 00616140133

R. E. C. no. : 18743 of Como

Tribunal Co. Register : 10163 of

Foundation date	: 28/12/1976
Establishment date	: 28/12/1976
Start of Activities	: 08/06/1977
Legal duration	: 31/12/2090
Nominal Capital	: 46.800
Subscribed Capital	: 46.800
Paid up Capital	: 46.800

Members

Marson

Alfredo

Born in Chions

(PN)

on 18/04/1953

- Fiscal Code : MRSLRD53D18C640E

Residence:

Vecchia Canturina

, 16

- 22060

Novedrate

(CO)

- IT -

Position	Since	Shares Amount	% Ownership
Board Chairman	29/02/2012

No Prejudicial events are reported

No Protests registered

Marson

Giorgia

Born in Cantu'

(CO)

on 25/03/1981

- Fiscal Code : MRSGRG81C65B639V

Residence:

Della Ferriera

, 19D

- 22060

Figino Serenza

(CO)

- IT -

Position	Since	Shares Amount	% Ownership
Managing Director	29/02/2012

No Prejudicial events are reported

No Protests registered

Gialfin S.r.l.

:

Vecchia Canturina

, 16

- 22060

Novedrate

(CO)

- IT -

Position	Since	Shares Amount	% Ownership
Sole partner	29/10/2012

No Prejudicial events are reported

No Protests registered

Gialfin S.r.l.

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.

Marson

Alfredo

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Il Gabbiano, Societa' Cooperativa Sociale Per Azioni - Onlus	Cantu' (CO) - IT -	01269870133	Director	Active	Registered
Il Gabbiano, Societa' Cooperativa Sociale Per Azioni - Onlus	Cantu' (CO) - IT -	01269870133	Board Chairman	Withdrawn	Registered
Mia S.r.l.	Figino Serenza (CO) - IT -	02278890138	Limited Partner	Withdrawn	Registered
Antiqua S.n.c. Di Brusati E Marson	Novedrate (CO) - IT -	02042240131	Partner	Withdrawn	Ceased
Nordlegno Srl	Lentate sul Seveso (MI) - IT -	07159770150	Liquidator	Withdrawn	Ceased
Bitipo - Societa' Cooperativa Sociale -O.n.l.u.s. In Liquidazion E	Novedrate (CO) - IT -	03120060136	Assistant board Chairman	Withdrawn	Registered
Bitipo - Societa' Cooperativa Sociale -O.n.l.u.s. In Liquidazion E	Novedrate (CO) - IT -	03120060136	Liquidator	Active	Registered
Consorzio Sport Cantu' - S.c.r.l.	Cantu' (CO) - IT -	02666440132	Director	Active	Registered
Gialfin S.r.l.	Novedrate (CO) - IT -	03343260133	Board Chairman	Active	Registered
Casamia S.r.l.	Novedrate (CO) - IT -	03261820132	Director	Active	Registered

Marson

Giorgia

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Mia S.r.l.	Figino Serenza (CO) - IT -	02278890138	General Partner	Withdrawn	Registered
Rehacom Di Marson Giorgia	Novedrate (CO) - IT -	MRSGRG81C65B639V	Proprietor	Withdrawn	Registered
Gialfin S.r.l.	Novedrate (CO) - IT -	03343260133	Director	Active	Registered
Casamia S.r.l.	Novedrate (CO) - IT -	03261820132	Responsible technician	Active	Registered
Casamia S.r.l.	Novedrate (CO) - IT -	03261820132	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
Gialfin S.r.l.	Novedrate - IT -	03343260133		100,00

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

since 28/12/1976

Per Meda

, 33

- 22060

- Novedrate

(CO)

- IT -

PHONE

: 031790670

-

Branch

(Warehouse)

since 02/01/2003

Lombardia

, 81

- 22063

- Cantu'

(CO)

- IT -

-

Branch

(Store)

since 04/03/2013

Provinciale

, 46

- 22060

- Novedrate

(CO)

- IT -

PHONE

: 0362740349

Employees

: 22

Fittings and Equipment for a value of 120.000

Eur

Stocks for a value of 5.170.000

Eur

Furniture and fittings for a value of 36.000

Eur

Vehicles for a value of 150.000

Eur

Trade organization: direct or by agents.

The company sells in Italy and abroad.

The firm operates abroad as importer / exporter..

To purchase foreign products the firm uses the following channels :

- distributors

- direct orders to foreign companies

Export represents up to 20% of the global turnover.

Products abroad are placed by :

- importers

- direct orders from foreign companies

Company generally accepts payments with terms of 60/90 days.

Subject usually collects by cash order and drafts.

Purchase terms: 60-90-120 days.

Payments are settled by cash order and drafts.

Import comes generally from the following nations:

- Greece

- Austria

- Germany

Traded Brands / Suppliers

- legno4 srl

Historical Information and/or Firm's Status

CHANGES TO THE LEGAL FORM:

Former legal form	New legal form	Changement Date
General partnership	Limited liability company	29/12/1990

COMPANY STYLE MODIFICATIONS:

Former Style	New Style	Changement Date
Legno Market di Marson Alfredo e Ivano S.n.c.		29/12/1990

EX-MEMBERS / EX-POSITIONS:

Marson

Alfredo

Born in Chions

(PN)

on 18/04/1953

- Fiscal Code : MRSLRD53D18C640E

Residence:

Vecchia Canturina

, 16

- 22060

Novedrate

(CO)

- IT -

Ex-Postions

Chairman

Marson

Ivano

Born in Chions

(PN)

on 01/01/1955

- Fiscal Code : MRSVNI55A01C640H

Residence:

Vecchia Canturina

, 18

- 22060

Novedrate

(CO)

- IT -

Ex-Postions

Managing Director

Managing Director

Director

Managing Director

Salvioni

Gilberto

Born in Mariano Comense

(CO)

on 04/08/1955

- Fiscal Code : SLVGBR55M04E951B

Residence:

F. Meda

, 6

- 22066

Mariano Comense

(CO)

- IT -

Ex-Postions

Chairman of the Board of Aud.

Rocca

Emilio

Born in Giussano

(MB)

on 10/12/1947

- Fiscal Code : RCCMLE47T10E063H

Residence:

Brianza

, 11

- 22060

Carugo

(CO)

- IT -

Ex-Postions

Permanent Auditor

Perciballi

Giuseppe

Born in Boville Ernica

(FR)

on 16/02/1940

- Fiscal Code : PRCGPP40B16A720Q

Residence:

Magenta

, 4

- 22100

Como

(CO)

- IT -

Ex-Postions

Permanent Auditor

Bozzini

Giovanni

Born in Mantova

(MN)

on 06/11/1949

- Fiscal Code : BZZGNN49S06E897Z

Residence:

Direzione Cascina Caviggiolo

, 2

- 22050

Calco

(LC)

- IT -

Ex-Postions

Temporary Auditor

Benelli

Michele Franco

Born in Zeri

(MS)

on 27/09/1955

- Fiscal Code : BNLMHL55P27M169G

Residence:

Piave

, 13

- 22040

Anzano del Parco

(CO)

- IT -

Ex-Postions

Temporary 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.

Bankers

The firm operates with:

Bank Name	Agency Name	Address	ZIP Code	City	ABI Code	CAB Code
SANPAOLO IMI S.P.A. FUS. INTESA SAN PAO	AGENZIA	VIA ISIMBARDI, 3	22060	Novedrate	1025	51600

Financial and Economical Analysis

The company is active since 1977

The analysis is based on the latest 3 balance sheets.

Under an economic point of view, profits were registered during the last years with a r.o.e. of 17,44% in 2013

The operating result in 2013 was positive (9,35%) and reflects the field's average.

The amount of the operating result for the year 2013 is of Eur. 1.246.924 showing an upward trend more then 100% compared to the previous financial year.

The G.O.M. amounted to Eur. 1.457.652 showing an upward trend if compared to 2012.

The analysis shows a fair financial position as the indebtedness volume is acceptable (1,44) with an improving trend as on the decrease.

Subject can manage an equity capital funds for an amount of Eur. 3.891.015 , unchanged as opposed to the preceding year.

Total indebtedness was equal to Eur. 9.130.851 (Eur. 2.971.372 was the value of m/l term debts) with no important change.

Liquidity is good.

As far as the cash flow is concerned during the latest financial year it amounted to Eur. 889.291

During 2013 financial year labour costs amounted to Eur. 732.730, with a 14,08% incidence on production costs. , with a 11,4% incidence on turnover.

High incidence of financial charges on turnover.

Financial Data

Complete balance-sheet for the year

al 31/12/2013

(in Eur

x 1)

Item Type	Value
Sales	6.426.943
Profit (Loss) for the period	678.563

Complete balance-sheet for the year

al 31/12/2012

(in Eur

x 1)

Item Type	Value
Sales	6.927.772
Profit (Loss) for the period	454.855

Complete balance-sheet for the year

al 31/12/2011

(in Eur

x 1)

Item Type	Value
Sales	8.382.832
Profit (Loss) for the period	131.928

Complete balance-sheet for the year

al 31/12/2010

(in Eur

x 1)

Item Type	Value
Sales	8.485.976
Profit (Loss) for the period	122.516

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

- Balance Sheet as at 31/12/2012 - 12 Mesi - Currency: - Amounts x 1

- Balance Sheet as at 31/12/2011 - 12 Mesi - Currency: - Amounts x 1

Years

2013

2012

2011

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	29.093	19.398	109.810
. TANGIBLE FIXED ASSETS
. . Real estate
. . Plant and machinery
. . Industrial and commercial equipment
. . Other assets
. . Assets under construction and advances
. Total Tangible fixed assets	4.746.304	4.884.995	4.259.215
. 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	856	856	856
Total fixed assets	4.776.253	4.905.249	4.369.881
CURRENT ASSETS
. INVENTORIES
. . Raw materials and other consumables
. . Work in progress and semimanufactured
. . Work in progress on order
. . Finished goods
. . Advance payments
. Total Inventories	5.167.606	4.029.499	3.476.022
. CREDITS NOT HELD AS FIXED ASSETS
. . Within 12 months	2.722.464	3.124.718	3.131.225
. . Beyond 12 months	65.826	74.619	12.911
. . 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	2.788.290	3.199.337	3.144.136
. 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	553.408	5.702	328.239
Total current assets	8.509.304	7.234.538	6.948.397
ADJUSTMENT ACCOUNTS
. Discount on loans
. Other adjustment accounts	43.413	8.134	46.198
Total adjustments accounts	43.413	8.134	46.198
TOTAL ASSETS	13.328.970	12.147.921	11.364.476
LIABILITIES
STOCKHOLDERS' EQUITY
. Capital stock	46.800	46.800	46.800
. Additional paid-in capital
. Revaluation reserves	2.051.042	2.051.042	2.051.042
. Legal reserve	9.360	9.360	9.360
. Reserve for Own shares
. Statute reserves
. Other reserves	1.105.250	880.393	748.466
. Accumulated Profits (Losses)
. Profit( loss) of the year	678.563	454.855	131.928
. Advances on dividends
. Partial loss of the year Coverage
Total Stockholders'Equity	3.891.015	3.442.450	2.987.596
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	257.910	246.923	209.279
ACCOUNTS PAYABLE
. . . . Within 12 months	6.159.479	7.140.162	7.206.261
. . . . Beyond 12 months	2.971.372	1.259.101	910.141
. . 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	9.130.851	8.399.263	8.116.402
ADJUSTMENT ACCOUNTS
. Agio on loans
. Other adjustment accounts	49.194	59.285	51.199
Total adjustment accounts	49.194	59.285	51.199
TOTAL LIABILITIES	13.328.970	12.147.921	11.364.476

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	6.426.943	6.927.772	8.382.832
. Changes in work in progress
. Changes in semi-manufact. products
. Capitalization of internal work
. Other income and revenues	25.552	14.999	48.723
. . Contributions for operating expenses
. . Different income and revenues	25.552	14.999	48.723
Total value of production	6.452.495	6.942.771	8.431.555
PRODUCTION COSTS
. Raw material,other materials and consum.	3.716.461	4.370.681	6.067.998
. Services received
. Leases and rentals	1.506.744	1.468.124	1.700.499
. Payroll and related costs	732.730	776.246	749.872
. . Wages and salaries	525.770	544.808	542.113
. . Social security contributions	163.940	169.410	157.953
. . Employee termination indemnities	43.020	45.220	44.289
. . Pension and similar
. . Other costs		16.808	5.517
. Amortization and depreciation	210.728	325.675	425.564
. . Amortization of intangible fixed assets	9.061	105.752	227.457
. . Amortization of tangible fixed assets	188.411	203.911	182.579
. . Depreciation of tangible fixed assets
. . Writedown of current receiv.and of liquid	13.256	16.012	15.528
. Changes in raw materials	-1.124.874	-553.077	-1.103.240
. Provisions to risk reserves
. Other provisions
. Other operating costs	163.782	99.267	129.143
Total production costs	5.205.571	6.486.916	7.969.836
Diff. between value and cost of product.	1.246.924	455.855	461.719
FINANCIAL INCOME AND EXPENSE
. Income from equity investments	8	8	7
. . In subsidiary companies
. . In associated companies
. . In other companies	8	8	7
. Other financial income	3.256	563	1.706
. . 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	3.256	563	1.706
. . . - Subsidiary companies
. . . - Associated companies
. . . - Holding companies
. . . - Other companies	3.256	563	1.706
. Interest and other financial expense	-183.299	-246.370	-153.061
. . Towards subsidiary companies
. . Towards associated companies
. . Towards holding companies
. . Towards other companies	183.299	246.370	153.061
Total financial income and expense	-180.035	-245.799	-151.348
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		545.000
. . Gains on disposals
. . Other extraordinary income		545.000
. Extraordinary expense		-64	-2
. . Losses on disposals
. . Taxes relating to prior years		-64
. . Other extraordinary expense			-2
Total extraordinary income and expense		544.936	-2
Results before income taxes	1.066.889	754.992	310.369
. Taxes on current income	388.326	300.137	178.441
. . current taxes	388.326	315.669	193.973
. . differed taxes(anticip.)		-15.532	-15.532
. Net income for the period	678.563	454.855	131.928
. Adjustments in tax regulations pursuance
. Provisions in tax regulations pursuance
. Profit (loss) of the year	678.563	454.855	131.928

RATIOS	Value Type	as at 31/12/2013	as at 31/12/2012	as at 31/12/2011	Sector Average
COMPOSITION ON INVESTMENT
Rigidity Ratio	Units	0,36	0,40	0,38	0,11
Elasticity Ratio	Units	0,64	0,60	0,61	0,87
Availability of stock	Units	0,39	0,33	0,31	0,22
Total Liquidity Ratio	Units	0,25	0,26	0,31	0,56
Quick Ratio	Units	0,04	0,00	0,03	0,02
COMPOSITION ON SOURCE
Net Short-term indebtedness	Units	1,44	2,07	2,30	3,81
Self Financing Ratio	Units	0,29	0,28	0,26	0,17
Capital protection Ratio	Units	0,81	0,85	0,94	0,65
Liabilities consolidation quotient	Units	0,52	0,21	0,16	0,12
Financing	Units	2,35	2,44	2,72	4,72
Permanent Indebtedness Ratio	Units	0,53	0,41	0,36	0,30
M/L term Debts Ratio	Units	0,24	0,12	0,10	0,07
Net Financial Indebtedness Ratio	Units	n.c.	n.c.	n.c.	1,28
CORRELATION
Fixed assets ratio	Units	1,49	1,01	0,94	2,06
Current ratio	Units	1,38	1,01	0,96	1,16
Acid Test Ratio-Liquidity Ratio	Units	0,54	0,45	0,48	0,84
Structure's primary quotient	Units	0,81	0,70	0,68	1,28
Treasury's primary quotient	Units	0,09	0,00	0,05	0,03
Rate of indebtedness ( Leverage )	%	342,56	352,89	380,39	591,61
Current Capital ( net )	Value	2.349.825	94.376	-257.864	219.071
RETURN
Return on Sales	%	13,84	11,27	6,65	2,22
Return on Equity - Net- ( R.O.E. )	%	17,44	13,21	4,42	6,27
Return on Equity - Gross - ( R.O.E. )	%	27,42	21,93	10,39	15,95
Return on Investment ( R.O.I. )	%	9,35	3,75	4,06	4,19
Return/ Sales	%	19,40	6,58	5,51	3,42
Extra Management revenues/charges incid.	%	54,42	99,78	28,57	29,26
Cash Flow	Value	889.291	780.530	557.492	61.669
Operating Profit	Value	1.246.924	455.855	461.719	95.558
Gross Operating Margin	Value	1.457.652	781.530	887.283	144.934
MANAGEMENT
Credits to clients average term	Days	n.c.	n.c.	n.c.	120,94
Debts to suppliers average term	Days	n.c.	n.c.	n.c.	120,04
Average stock waiting period	Days	289,46	209,39	149,28	61,92
Rate of capital employed return ( Turnover )	Units	0,48	0,57	0,74	1,27
Rate of stock return	Units	1,24	1,72	2,41	5,74
Labour cost incidence	%	11,40	11,20	8,95	7,77
Net financial revenues/ charges incidence	%	-2,80	-3,55	-1,81	-1,26
Labour cost on purchasing expenses	%	14,08	11,97	9,41	7,90
Short-term financing charges	%	2,01	2,93	1,89	2,67
Capital on hand	%	207,39	175,35	135,57	78,39
Sales pro employee	Value	292.133	288.657	364.470	437.713
Labour cost pro employee	Value	33.305	32.343	32.603	33.928

Market / Territory Data

Population living in the province	:	560.941
Population living in the region	:	9.393.092
Number of families in the region	:	3.858.736

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

- per food products	:	460
- per non food products	:	2.090
- per energy consume	:	114

Sector Data

The values are calculated on a base of 6.137 significant companies.

The companies cash their credits on an average of 121 dd.

The average duration of suppliers debts is about 120 dd.

The sector's profitability is on an average of 2,22%.

The labour cost affects the turnover in the measure of 7,77%.

Goods are held in stock in a range of 62 dd.

The difference between the sales volume and the resources used to realize it is about 1,27.

The employees costs represent the 7,90% of the production costs.

Statistical Detrimental Data

Statistically the trade activity shows periods of crisis.

The area is statistically considered moderately risky.

In the region 50.886 protested subjects are found; in the province they count to 3.842.

The insolvency index for the region is 0,55, , while for the province it is 0,70.

Total Bankrupt companies in the province : 2.010.

Total Bankrupt companies in the region : 39.612.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.65
UK Pound	1	Rs.99.14
Euro	1	Rs.77.60

INFORMATION DETAILS

Analysis Done by :	KAR
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.