MIRA INFORM REPORT

Report Date :

08.02.2014

IDENTIFICATION DETAILS

Name :	MIROGLIO FASHION SRL
Registered Office :	Via Santa Barbara 11 Alba, 12051
Country :	Italy
Financials (as on) :	31.12.2012
Date of Incorporation :	31.07.2008
Com. Reg. No.:	03232400048
Legal Form :	Private Subsidiary
Line of Business :	Subject is engaged in retail sale of floor coverings; retail sale of photographic, optical and precision equipment, office supplies and equipment (including computers); retail sale of jewellery, clocks and watches; retail sale of sports goods, games and toys, stamps and coins; retail sale in commercial art galleries; retail sale by opticians; retail sale of mobile telephones
No. of Employees :	3,376

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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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 high. 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 126% of GDP in 2012, and investor concerns about the broader euro-zone crisis at times have caused borrowing costs on sovereign government debt to rise to euro-era. During the second half of 2011 the government passed three austerity packages to reduce its budget deficit and help bring down borrowing costs. 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 sustain its recent efforts to address Italy's long-standing structural impediments to growth, such as labor market inefficiencies and widespread tax evasion. In 2012 economic growth and labor market conditions deteriorated, with growth at -2.3% and unemployment rising to nearly 11%, with youth unemployment around 35%. The government has undertaken several reform initiatives designed to increase long-term economic growth. Italy's GDP is now 7% below its 2007 pre-crisis level

Source : CIA

Company name and address

MIROGLIO FASHION SRL

Via Santa Barbara 11
Alba, 12051
Italy
Tel:	39 (0173) 299111
Fax:	+39 0173 361465

Employees:	3,376
Company Type:	Private Subsidiary
Corporate Family:	10 Companies
Ultimate Parent:	Miroglio SpA
Incorporation Date:	31-Jul-2008

Fiscal Year End:	31-Dec-2012
Reporting Currency:	Euro
Annual Sales:	670.6
Total Assets:	431.1

Business Description

Miroglio Fashion SRL is primarily engaged in retail sale of floor coverings; retail sale of photographic, optical and precision equipment, office supplies and equipment (including computers); retail sale of jewellery, clocks and watches; retail sale of sports goods, games and toys, stamps and coins; retail sale in commercial art galleries; retail sale by opticians; retail sale of mobile telephones; and other retail sale in specialised stores not elsewhere classified.

Industry

Industry	Clothing and Apparel Manufacturing
ANZSIC 2006:	1351 - Clothing Manufacturing
ISIC Rev 4:	1410 - Manufacture of wearing apparel, except fur apparel
NACE Rev 2:	1413 - Manufacture of other outerwear
NAICS 2012:	315210 - Cut and Sew Apparel Contractors
UK SIC 2007:	14132 - Manufacture of women's outerwear, other than leather clothes and workwear
US SIC 1987:	2335 - Women's, Misses', and Juniors' Dresses

Key Executives

Name	Title
Giuseppe Miroglio	President
Piero Abellonio	Purchasing Manager
Giorgio Babbiotti	Purchasing Manager
Mario Battistel	Purchasing Manager
Mauro Davico	Communications Manager

News

Title	Date
USPTO grants trade mark "FOR.ME ELENA MIRO" to MIROGLIO FASHION S.R.L (ITALY). US Official News (134 Words)	16-Nov-2013
USPTO grants trade mark "FOR.ME ELENA MIRO" to MIROGLIO FASHION S.R.L (ITALY) Plus Patent News (141 Words)	16-Nov-2013
USPTO ISSUES TRADEMARK: MOTIVI U.S. Fed News (203 Words)	16-Oct-2013
Profile of Miroglio: A Leading Vertically Integrated Textile and Apparel Group in Italy Research and Markets (295 Words)	6-Feb-2013

>> View All

Registered No.(ITA): 03232400048

1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7782366

2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.7566

Corporate Overview

Location
Via Santa Barbara 11
Alba, 12051
Italy

Tel:	39 (0173) 299111
Fax:	+39 0173 361465

www.mirogliogroup.com

Sales EUR(mil):	521.9
Assets EUR(mil):	326.2
Employees:	3,376
Fiscal Year End:	31-Dec-2012

KeyID^SM:	104254062
Industry:	Apparel and Accessories

Incorporation Date:	31-Jul-2008
Company Type:	Private Subsidiary
Quoted Status:	Not Quoted
Registered No.(ITA):	03232400048

President:

Giuseppe Miroglio

Industry Codes

ANZSIC 2006 Codes:
1351	-	Clothing Manufacturing

ISIC Rev 4 Codes:
1410	-	Manufacture of wearing apparel, except fur apparel

NACE Rev 2 Codes:
1413	-	Manufacture of other outerwear

NAICS 2012 Codes:
315210	-	Cut and Sew Apparel Contractors
315240	-	Women’s, Girls’, and Infants’ Cut and Sew Apparel Manufacturing

US SIC 1987:
2335	-	Women's, Misses', and Juniors' Dresses
2337	-	Women's, Misses', and Juniors' Suits, Skirts, and Coats
2331	-	Women's, Misses', and Juniors' Blouses and Shirts

UK SIC 2007:
14132	-	Manufacture of women's outerwear, other than leather clothes and workwear

Business Description

Manufacture of women's clothing

More Business Descriptions

Miroglio Fashion SRL is primarily engaged in retail sale of floor coverings; retail sale of photographic, optical and precision equipment, office supplies and equipment (including computers); retail sale of jewellery, clocks and watches; retail sale of sports goods, games and toys, stamps and coins; retail sale in commercial art galleries; retail sale by opticians; retail sale of mobile telephones; and other retail sale in specialised stores not elsewhere classified.

Financial Data

Financials in:	EUR(mil)
Revenue:	521.9
Assets:	326.2
Current Assets:	200.4
Total Liabilities:	326.2
Net Worth:	200.0
Date of Financial Data:	31-Dec-2012

1 Year Growth

-13.3%

NA

Subsidiaries

Company	Percentage Owned	Country
Miroglio France SAS	100%	FRANCE

Key Corporate Relationships

Bank:

Ubi Banca Regionale Europea Ag, Banca Popolare di Novara Ag, Intesa Sanapolo Ag

Corporate Structure News

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Miroglio SpA	Parent	Alba, CN	Italy	Holding Companies	0.0	227
Miroglio Fashion Srl	Subsidiary	Alba	Italy	Clothing and Apparel Manufacturing	670.6	3,376
Miroglio Romania Srl	Subsidiary	Bucuresti	Romania	Clothing and Apparel Stores	2.4	76
Miroglio Textile Srl	Subsidiary	Alba, CN	Italy	Textile Manufacturing	173.0	630
Miroglio France SAS	Subsidiary	Roissy CDG	France	Clothing and Apparel Manufacturing	31.2	275
Miroglio España Sa	Subsidiary	Barcelona	Spain	Clothing and Apparel Wholesale	18.6	184
Miróglio Portugal, Comércio De Pronto-A-Vestir, LDA	Subsidiary	Lisboa, Lisboa	Portugal	Clothing and Apparel Wholesale	5.0	48
Ulmia Stoffe GmbH	Subsidiary	Ravensburg	Germany	Textile Manufacturing		10
Langhe E Roero Power SpA	Subsidiary	Govone, Cuneo	Italy	Electricity Generation and Distribution	13.0	4
Mirinvest SRL	Subsidiary	Alba, Cuneo	Italy	Holding Companies		1

Executives Report

Executives

Name	Title	Function
Giuseppe Miroglio	President	President
Giuseppe Maurizio	General manager	Division Head Executive
Paolo Matteini	Managing director	Managing Director
Mauro Davico	Communications Manager	Corporate Communications Executive
Piero Abellonio	Purchasing Manager	Purchasing Executive
Giorgio Babbiotti	Purchasing Manager	Purchasing Executive
Mario Battistel	Purchasing Manager	Purchasing Executive
Lorenzo Boffano	Purchasing Manager	Purchasing Executive
Paola Cassinelli	Purchasing Manager	Purchasing Executive
Edoardo Cavallotto	Purchasing Manager	Purchasing Executive
Massimo Cenini	Purchasing Manager	Purchasing Executive
Mario Cravanzola	Purchasing Manager	Purchasing Executive
Fabrizio Dell'arte	Purchasing Manager	Purchasing Executive
Andrea Ferrero	Purchasing Manager	Purchasing Executive
Fulvio Ferrero	Purchasing Manager	Purchasing Executive
Maria Paola Giachelli	Purchasing Manager	Purchasing Executive
Giorgio Ravera	Purchasing Manager	Purchasing Executive
Mauro Sarotto	Purchasing Manager	Purchasing Executive
Ubertino Lorenzo Sona	Purchasing Manager	Purchasing Executive
Roberto Spertino	Purchasing Manager	Purchasing Executive

News

USPTO grants trade mark "FOR.ME ELENA MIRO" to MIROGLIO FASHION S.R.L (ITALY). US Official News (134 Words)	16-Nov-2013
USPTO grants trade mark "FOR.ME ELENA MIRO" to MIROGLIO FASHION S.R.L (ITALY) Plus Patent News (141 Words)	16-Nov-2013
USPTO ISSUES TRADEMARK: MOTIVI U.S. Fed News (203 Words)	16-Oct-2013
Profile of Miroglio: A Leading Vertically Integrated Textile and Apparel Group in Italy Research and Markets (295 Words)	06-Feb-2013

Annual Profit & Loss

	31-Dec-2012	31-Dec-2011	31-Dec-2010
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate (Period Average)	0.778237	0.71919	0.755078
Consolidated	No	No	No
Total income	667.1	842.3	864.0
Net sales	670.6	837.1	824.8
Other operating income	7.8	8.3	7.3
Raw materials and consumables employed	210.5	276.9	280.8
Other expenses	264.8	299.0	272.5
Total payroll costs	181.3	202.0	195.1
Fixed asset depreciation and amortisation	40.3	55.5	59.1
Other operating costs	9.7	10.9	8.5
Net operating income	-39.5	-2.0	47.9
Total financial income	14.3	65.8	10.4
Total expenses	0.0	0.0	-
Profit before tax	-25.2	63.7	58.3
Extraordinary result	-34.5	-15.6	-7.4
Profit after extraordinary items and before tax	-59.7	48.2	50.9
Total taxation	6.0	6.0	21.5
Net profit	-	42.2	29.4
Net loss	65.7	-	-

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.7566	0.770327	0.745406
Consolidated	No	No	No
Total stockholders equity	264.3	358.4	355.2
Provision for risks	13.6	14.9	17.3
Provision for pensions	17.0	22.4	26.5
Trade creditors	88.9	92.0	112.2
Bank loans and overdrafts	0.1	1.1	0.5
Other current liabilities	46.9	46.0	60.1
Accruals and deferred income	0.3	2.4	0.8
Total current liabilities	136.1	141.6	173.6
Total liabilities (including net worth)	431.1	537.3	572.6
Intangibles	15.9	23.2	37.5
Total tangible fixed assets	63.1	85.4	90.9
Long-term investments	56.1	51.4	18.1
Total financial assets	87.3	70.6	24.0
Loans to associated companies	27.5	18.2	4.9
Total non-current assets	166.2	179.2	152.5
Finished goods	60.9	65.5	69.8
Net stocks and work in progress	77.2	78.6	85.3
Trade debtors	69.6	73.6	92.3
Other receivables	104.2	196.0	232.9
Cash and liquid assets	5.0	0.7	0.6
Accruals	8.9	9.2	9.0
Total current assets	264.8	358.0	420.2
Total assets	431.1	537.3	572.6

Annual Ratios

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.7566	0.770327	0.745406
Consolidated	No	No	No
Current ratio	2.00	2.50	2.40
Quick ratio	1.40	2.00	1.90
Current liabilities to net worth	0.01%	0.00%	0.01%
Sales per employee	0.11	0.12	0.13
Profit per employee	-0.01	0.01	0.01
Average wage per employee	0.03	0.03	0.03
Net worth	264.3	358.4	355.2
Number of employees	4,884	4,950	4,778

DIAMOND INDUSTRY – INDIA

- From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

- The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

- The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

- Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

- Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

- Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

- Excerpts from Times of India dated 30^th October 2010 is as under –

- Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

- The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.32
UK Pound	1	Rs.101.78
Euro	1	Rs.84.68

INFORMATION DETAILS

Report Prepared by :

NIS

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.