MIRA INFORM REPORT

Report Date :

05.03.2014

IDENTIFICATION DETAILS

Name :	ERCA SPA
Registered Office :	Via Xxv Aprile 17, San Donato Milanese, 20097
Country :	Italy
Financials (as on) :	31.12.2012
Date of Incorporation :	13.12.1984
Com. Reg. No.:	07635330157
Legal Form :	Public Independent
Line of Business :	· Non-specialised wholesale trade · Other Miscellaneous Durable Goods Merchant Wholesalers · Warm Air Heating and Air-Conditioning Equipment and Supplies
No. of Employees :	10

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
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 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

ERCA SPA

Via Xxv Aprile 17
San Donato Milanese, 20097
Italy
Tel:	+39 0251 64021
Fax:	+39 0251 620946

Employees:	10
Company Type:	Public Independent
Incorporation Date:	13-Dec-1984

Financials in:
Fiscal Year End:	31-Dec-2012
Reporting Currency:	Euro
Annual Sales:	4.9
Total Assets:	9.3

Other Address

Via Padergnone 5/7, 24050, Grassobbio, Bergamo, Italy

Business Description

Erca SpA is primarily engaged in specialised wholesale not covered in one of the previous categories; and wholesale of a variety of goods without any particular specialisation.

Industry

Industry	Miscellaneous Wholesale
ANZSIC 2006:	3739 - Other Goods Wholesaling Not Elsewhere Classified
ISIC Rev 4:	4690 - Non-specialized wholesale trade
NACE Rev 2:	4690 - Non-specialised wholesale trade
NAICS 2012:	423990 - Other Miscellaneous Durable Goods Merchant Wholesalers
UK SIC 2007:	4690 - Non-specialised wholesale trade
US SIC 1987:	5075 - Warm Air Heating and Air-Conditioning Equipment and Supplies

Key Executives

Name	Title
Pier Giorgio Mammarella	President
Massimo Meropiali	Member of the board
Lara Rossi	Member of the board

Registered No.(ITA): 07635330157

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 Xxv Aprile 17
San Donato Milanese, 20097
Italy

Tel:	+39 0251 64021
Fax:	+39 0251 620946

Sales EUR(mil):	3.8
Assets EUR(mil):	7.0
Employees:	10
Fiscal Year End:	31-Dec-2012

Industry:	Miscellaneous Capital Goods

Incorporation Date:	13-Dec-1984
Company Type:	Public Independent
Quoted Status:	Not Quoted
Registered No.(ITA):	07635330157

President:	Pier Giorgio Mammarella

Industry Codes

ANZSIC 2006 Codes:
3739	-	Other Goods Wholesaling Not Elsewhere Classified
3339	-	Other Hardware Goods Wholesaling

ISIC Rev 4 Codes:
4690	-	Non-specialized wholesale trade
4663	-	Wholesale of construction materials, hardware, plumbing and heating equipment and supplies

NACE Rev 2 Codes:
4690	-	Non-specialised wholesale trade
4674	-	Wholesale of hardware, plumbing and heating equipment and supplies

NAICS 2012 Codes:
423990	-	Other Miscellaneous Durable Goods Merchant Wholesalers
4237	-	Hardware, and Plumbing and Heating Equipment and Supplies Merchant Wholesalers

US SIC 1987:
5075	-	Warm Air Heating and Air-Conditioning Equipment and Supplies
507	-	Hardware, and Plumbing and Heating Equipment

UK SIC 2007:
4690	-	Non-specialised wholesale trade
4674	-	Wholesale of hardware, plumbing and heating equipment and supplies

Business Description

Erca SpA is primarily engaged in specialised wholesale not covered in one of the previous categories; and wholesale of a variety of goods without any particular specialisation.

Financial Data

Financials in:	EUR(mil)
Revenue:	3.8
Assets:	7.0
Current Assets:	2.3
Total Liabilities:	7.0
Net Worth:	1.3
Date of Financial Data:	31-Dec-2012

1 Year Growth

-18.2%

NA

Subsidiaries

Company	Percentage Owned	Country
Wolf Italia SRL

Key Corporate Relationships

Bank: Cassa di Risparmio di Parma e Piacenza Ag

Executives Report

Board of Directors

Name	Title	Function
Massimo Meropiali	Member of the board	Director/Board Member
Lara Rossi	Member of the board	Director/Board Member

Executives

Name	Title	Function
Pier Giorgio Mammarella	President	President

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	5.1	6.7	8.0
Net sales	4.9	6.5	7.8
Other operating income	0.2	0.2	0.2
Raw materials and consumables employed	2.8	3.8	4.6
Other expenses	1.4	1.8	1.9
Total payroll costs	0.6	0.7	0.7
Fixed asset depreciation and amortisation	0.2	0.2	0.5
Other operating costs	0.2	0.1	0.1
Net operating income	-0.1	0.1	0.1
Total financial income	0.0	0.1	0.0
Total expenses	0.2	0.2	0.2
Profit before tax	-0.2	0.0	-0.1
Extraordinary result	0.3	0.1	-0.3
Profit after extraordinary items and before tax	0.0	0.0	-0.4
Total taxation	0.0	0.1	0.0
Net loss	0.0	0.0	0.4

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	1.8	1.7	1.5
Provision for risks	0.0	-	-
Provision for pensions	0.3	0.3	0.3
Mortgages and loans	0.9	1.3	1.7
Other long-term liabilities	0.1	0.1	0.1
Trade creditors	2.5	2.7	3.8
Bank loans and overdrafts	1.6	1.8	2.2
Other current liabilities	2.0	1.4	1.5
Accruals and deferred income	0.1	0.0	0.0
Total current liabilities	6.2	6.0	7.5
Total liabilities (including net worth)	9.3	9.3	11.0
Intangibles	0.1	0.1	0.0
Buildings	5.1	5.1	5.5
Total tangible fixed assets	5.1	5.1	5.5
Long-term investments	0.6	0.4	0.4
Total financial assets	0.7	0.5	0.5
Receivables due after 1 year	0.3	0.3	0.3
Total non-current assets	6.2	6.0	6.3
Finished goods	0.4	0.4	0.4
Net stocks and work in progress	0.4	0.4	0.4
Trade debtors	2.2	2.6	3.9
Other receivables	0.4	0.2	0.1
Cash and liquid assets	0.0	0.0	0.1
Marketable securities	0.1	0.1	0.1
Accruals	0.0	0.0	0.0
Total current assets	3.1	3.3	4.7
Total assets	9.3	9.3	11.0

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	0.50	0.60	0.60
Quick ratio	0.40	0.50	0.60
Current liabilities to net worth	0.04%	0.03%	0.05%
Sales per employee	0.38	0.42	0.59
Profit per employee	0.00	0.00	-0.03
Average wage per employee	0.05	0.05	0.05
Net worth	1.8	1.7	1.5
Number of employees	10	11	10

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.90
UK Pound	1	Rs.103.26
Euro	1	Rs.85.14

INFORMATION DETAILS

Report Prepared by :

NNA

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.