MIRA INFORM REPORT

Report Date :

30.10.2014

IDENTIFICATION DETAILS

Name :	SAVELLI S.P.A.
Registered Office :	Via Cacciamali, 4 25050 – Brescia (BS) – IT -
Country :	Italy
Financials (as on) :	31.12.2013
Date of Incorporation :	06.07.1970
Legal Form :	Joint stock company
Line of Business :	Manufacture of metal structures and structure parts Manufacture of metal central heating radiators and boilers Manufacture of ovens, furnaces and burners
No. of Employees :	201 to 250

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 – 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

Savelli S.p.a.

Via

Cacciamali,

4

25050

- Brescia

(BS)

-IT-

Summary

Fiscal Code	:	00304000177
Legal Form	:	Joint stock company
start of Activities	:	11/11/1970
Equity	:	Over 2.582.254
Turnover Range	:	25.000.000/35.000.000
Number of Employees	:	from 201 to 250

Activity

Manufacture of metal structures and structure parts

Manufacture of metal central heating radiators and boilers

Manufacture of ovens, furnaces and burners

Legal Data

Legal Form : Joint stock company

Fiscal Code : 00304000177

Foreign Trade Reg. no. : BS012895 since 17/12/1991

Foreign Trade Reg. no. : 12895 of Brescia since 17/12/1991

Chamber of Commerce no. : 175993 of Brescia since 16/07/1970

Firms' Register : BS029-8685 of Brescia since 19/02/1996

V.A.T. Code : 00304000177

Tribunal Co. Register : 8685 of

Foundation date	: 06/07/1970
Establishment date	: 06/07/1970
Start of Activities	: 11/11/1970
Legal duration	: 31/12/2020
Nominal Capital	: 1.768.000
Subscribed Capital	: 1.768.000
Paid up Capital	: 1.768.000

Members

Savelli

Luigi

Born in Passirano

(BS)

on 01/08/1943

- Fiscal Code : SVLLGU43M01G361C

Residence:

Europa

, 32

- 25040

Monticelli Brusati

(BS)

- IT -

Position	Since	Shares Amount	% Ownership
Board Chairman	24/05/2013
Director	24/05/2013
Managing Director	24/05/2013

No Prejudicial events are reported

No Protests registered

Savelli

Severino

Born in Passirano

(BS)

on 05/02/1946

- Fiscal Code : SVLSRN46B05G361T

Residence:

Pietro Bulloni

, 5

- 25050

Passirano

(BS)

- IT -

Position	Since	Shares Amount	% Ownership
Director	24/05/2013
Managing Director	24/05/2013

No Prejudicial events are reported

No Protests registered

Savelli

Giuseppe

Born in Passirano

(BS)

on 16/10/1948

- Fiscal Code : SVLGPP48R16G361R

Residence:

Ronco

, 24

- 25080

Polpenazze del Garda

(BS)

- IT -

Position	Since	Shares Amount	% Ownership
Director	24/05/2013
Managing Director	24/05/2013

No Prejudicial events are reported

No Protests registered

D'amico

Fulvio

Born in Macerata

(MC)

on 08/11/1939

- Fiscal Code : DMCFLV39S08E783H

Residence:

Due Torri

, 3

- 25122

Brescia

(BS)

- IT -

Position	Since	Shares Amount	% Ownership
Director	24/05/2013

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.

Savelli

Luigi

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Area Impianti S.p.a.	Albignasego (PD) - IT -	02420970283	Director	Withdrawn	Registered
Savelli Impianti S.r.l.	Brescia (BS) - IT -	03145840173	Chairman	Active	Registered
Savelli Impianti S.r.l.	Brescia (BS) - IT -	03145840173	Managing Director	Active	Registered
Vuzeta Group S.r.l.	Brescia (BS) - IT -	02830300980	Director	Withdrawn	Registered
Savelli Immobiliare Di Savelli SeverinoE C. Snc	Brescia (BS) - IT -	01248460170	Partner	Active	Registered

Savelli

Severino

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Savelli Impianti S.r.l.	Brescia (BS) - IT -	03145840173	Managing Director	Active	Registered
Savelli Immobiliare Di Savelli SeverinoE C. Snc	Brescia (BS) - IT -	01248460170	Partner	Active	Registered

Savelli

Giuseppe

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Savelli Impianti S.r.l.	Brescia (BS) - IT -	03145840173	Managing Director	Active	Registered
Savelli Immobiliare Di Savelli SeverinoE C. Snc	Brescia (BS) - IT -	01248460170	Partner	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
Savelli S.p.a.	Brescia - IT -	00304000177	176.800 .Eur	10,00
Savelli Luigi	Monticelli Brusati - IT -	SVLLGU43M01G361C	530.400 .Eur	30,00
Savelli Severino	Passirano - IT -	SVLSRN46B05G361T	530.400 .Eur	30,00
Savelli Giuseppe	Polpenazze del Garda - IT -	SVLGPP48R16G361R	530.400 .Eur	30,00
Savelli S.p.a.		00304000177	176.800 .Eur	10,00

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
Savelli S.p.a.	Brescia - IT -	00304000177	176.800 .Eur	10,00			Active
Vuzeta Group S.r.l.	Brescia - IT -	02830300980	5.019 .Eur	4,21			Active
Consorzio Bresciano Per La Ricerca Appli Cata E L'innovazione Tecnologica Nel Set	Brescia - IT -	03067310171	2.600 .Eur	0,29			Active
Savelli Impianti S.r.l.	Brescia - IT -	03145840173	79.050 .Eur	100,00			Active
Savelli Immobiliare Di Savelli Severino E C. Snc	Brescia - IT -	01248460170	46.481 .Eur				Active

Firm's location and structure

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

-	Legal and operative seat

Cacciamali

, 4

- 25100

- Brescia

(BS)

- IT -

Total Surface: 30.000 Sq.mt.

Covered Surface: 15.000 Sq.mt.

PHONE

: 0303533345

FAX	: 0303534113

Website

: www.savelli.it

-

Branch

since 23/11/2012

Bulloni

, 16

- 25050

- Passirano

(BS)

- IT -

PHONE

: 030750164

Employees

: 243

Fittings and Equipment for a value of 79.000

Eur

Stocks for a value of 8.980.000

Eur

Work in progress for a value of 5.710.000

Eur

The firm has a direct commercial organization

The company 's mainly customers are companies.

The firm operates abroad as importer / exporter..

Products abroad are placed by :

- direct orders from foreign companies

Financial means used for sale: bank transfers and bank orders.

Main used payment modalities are by cash orders and bank transfers.

Import comes generally from the following nations:

- Europa

Export is mainly towards:

- TUTTO IL CONTINENTE

Traded Brands / Suppliers

- Area Impianti spa

- Euroimpianti Spa

- Amafond

Historical Information and/or Firm's Status

CHANGES TO THE LEGAL FORM:

Former legal form	New legal form	Changement Date
General partnership	Joint stock company	03/10/1985

EX-MEMBERS / EX-POSITIONS:

Moniga

Gianluigi

Born in Paderno Franciacorta

(BS)

on 15/11/1939

- Fiscal Code : MNGGLG39S15G217D

Residence:

Kennedy

, 1

- 25050

Paderno Franciacorta

(BS)

- IT -

Ex-Postions

Chairman of the Board of Aud.

Quarantini

Eugenio

Born in Corzano

(BS)

on 23/12/1940

- Fiscal Code : QRNGNE40T23D082S

Residence:

Bonardi Trav. Iv

, 7

- 25049

Iseo

(BS)

- IT -

Ex-Postions

Permanent Auditor

Savelli

Luigi

Born in Passirano

(BS)

on 01/08/1943

- Fiscal Code : SVLLGU43M01G361C

Residence:

Europa

, 32

- 25040

Monticelli Brusati

(BS)

- IT -

Ex-Postions

Chairman and Managing Director

Managing Director

Savelli

Severino

Born in Passirano

(BS)

on 05/02/1946

- Fiscal Code : SVLSRN46B05G361T

Residence:

Pietro Bulloni

, 5

- 25050

Passirano

(BS)

- IT -

Ex-Postions

Managing Director

Managing Director

Savelli

Giuseppe

Born in Passirano

(BS)

on 16/10/1948

- Fiscal Code : SVLGPP48R16G361R

Residence:

Ronco

, 24

- 25080

Polpenazze del Garda

(BS)

- IT -

Ex-Postions

Managing Director

Managing Director

Germinario

Vito

Born in Bari

(BA)

on 06/03/1971

- Fiscal Code : GRMVTI71C06A662B

Ex-Postions

Director

Tampalini

Giuseppe

Born in Brescia

(BS)

on 22/12/1936

- Fiscal Code : TMPGPP36T22B157G

Residence:

Aldo Moro

, 5

- 25124

Brescia

(BS)

- IT -

Ex-Postions

Permanent Auditor

Minervini

Antonio

Born in Brescia

(BS)

on 12/04/1938

- Fiscal Code : MNRNTN38D12B157A

Residence:

S.urbano

, 14

- 25100

Brescia

(BS)

- IT -

Ex-Postions

Temporary Auditor

Rovetta

Mario

Born in Brescia

(BS)

on 08/12/1934

- Fiscal Code : RVTMRA34T08B157A

Residence:

Pindemonte

, 7

- 25100

Brescia

(BS)

- IT -

Ex-Postions

Managing Director

Genovese

Luigi

Born in Cazzago San Martino

(BS)

on 17/07/1938

- Fiscal Code : GNVLGU38L17C408V

Residence:

Gallo

- 25046

Cazzago San Martino

(BS)

- IT -

Ex-Postions

Temporary Auditor

CEASINGS/INCORPORATIONS/MERGES:

Project of merging by taking over of

EUROIMPIANTI S.P.A.

, Cologne (bs)

- IT -

Fiscal Code: 01924350174

Date

Merging/splitting-up project:

03/11/1997

The firm absorbed by merging of

EUROIMPIANTI S.P.A.

, Cologne (bs)

- IT -

Fiscal Code: 01924350174

Date

:

20/12/1997

Project of merging by taking over of

Savelli Impianti S.r.l.

Cacciamali

, 4

, 25050

, Brescia

(BS)

- IT -

Fiscal Code: 03145840173

Date

Merging/splitting-up project:

28/11/2006

Resolution of merging of

EUROIMPIANTI S.P.A.

, Cologne (bs)

- IT -

Fiscal Code: 01924350174

Date

:

20/12/1997

Resolution of merging of

EUROIMPIANTI S.P.A.

, Cologne (bs)

- IT -

Fiscal Code: 01924350174

Date

:

09/07/1998

Protests

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

Negativities

In the name of the firm the following events are registered:

Type	Expiry Date	Amount in	Reason	Result	Closure Date
Inquiry before contentious procedure	06/04/2012

Data Base Prejudicial Events Search

Search performed on a National Scale

Prejudicial Events Search Result:

Prejudicial Events found with cancellations*

Legal Mortgage on 20/05/2010. for an amount of 1.755.106 Euro. Event writing-off

 ESATRI ESAZIONE TRIBUTI S.P.A.

Legal Mortgage on 05/08/2010. for an amount of 224.790 Euro. Event writing-off

 ESATRI ESAZIONE TRIBUTI S.P.A.

Search performed on a specialized data base.

*Concerns also partially erased events.

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
UNICREDIT BANCA D'IMPRESA S.P.A.	BRESCIA CEFALONIA	VIA CEFALONIA, 55	25100	Brescia (BS)	3226	11201
B.CA NAZIONALE DEL LAVORO SPA					1005	0
BANCO DI BRESCIA S. PAOLO CAB SPA					3500	0

Financial and Economical Analysis

Subject is active since 1970

The eonomic-financial analysis is based on the latest 3 b/s.

Under the financial profile unstable results are noted. with a loss in the last financial year. Business volume is falling in the last financial year.

The operating result was positive in the last financial year (1,1%) and reflects the field's average.

The amount of the operating result is equal to Eur. 507.431 , on more or less the same values as in the year before.

During the latest financial year the gross operating margin amounted to Eur. 1.590.832 , stable if compared to the year before.

The financial position is not well balanced as the volume of debts is fairly remarkable if compared to shareholder's equity, in fact total debts are 8,86 which is decreasing.

The management generated equity capital for an amount of Eur. 2.622.697 on the same levels as the year before.

In the year 2013 total debts amounted to Eur. 39.699.283 showing a stable trend as opposed to 2012 (Eur. 41.745.329).

As far as financial debts are concerned the rate is high; the average payments' period is slighlty high even if it still falls within the sector's average.

Liquidity is good (1,23)

Due from customers average term is high and equal to 162,16 days. and higher than the average of the sector.

Eur. 756.844 is the value of cash flow during the year 2013

During 2013 financial year labour costs amounted to Eur. 7.778.118, with a 24,13% incidence on production costs. , with a 23,26% incidence on turnover.

The financial management is marked by a high incidence of financial charges in relation to sales revenues (-1,89%).

Financial Data

Complete balance-sheet for the year

al 31/12/2013

(in Eur

x 1)

Item Type	Value
Sales	33.433.996
Profit (Loss) for the period	-326.557

Complete balance-sheet for the year

al 31/12/2012

(in Eur

x 1)

Item Type	Value
Sales	46.548.742
Profit (Loss) for the period	-752.260

Complete balance-sheet for the year

al 31/12/2011

(in Eur

x 1)

Item Type	Value
Sales	57.313.632
Profit (Loss) for the period	2.203.162

Complete balance-sheet for the year

al 31/12/2010

(in Eur

x 1)

Item Type	Value
Sales	22.226.521
Profit (Loss) for the period	-298.853

Complete balance-sheet for the year

al 31/12/2009

(in Eur

x 1)

Item Type	Value
Sales	22.292.888
Profit (Loss) for the period	-6.519.827

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.	737.272	993.308	1.502.280
. . Industrial patent rights
. . Concessions,licenses,trademarks,etc.	27.065	11.494	21.382
. . Goodwill
. . Assets in formation and advance paymen.	1.970.858	1.969.358	1.969.358
. . Other intangible fixed assets		200.641	401.281
. Total Intangible Fixed Assets	2.735.195	3.174.801	3.894.301
. TANGIBLE FIXED ASSETS
. . Real estate	12.825.551	13.218.186	13.610.822
. . Plant and machinery	49.903	60.738	84.026
. . Industrial and commercial equipment	28.652	20.661	27.456
. . Other assets	59.817	72.067	126.343
. . Assets under construction and advances
. Total Tangible fixed assets	12.963.923	13.371.652	13.848.647
. FINANCIAL FIXED ASSETS
. . Equity investments	829.357	706.857	706.857
. . . Equity invest. in subsidiary companies	315.692	315.692	315.692
. . . Equity invest. in associated companies	122.500
. . . Equity invest. in holding companies
. . . Equity invest. in other companies	391.165	391.165	391.165
. . Financial receivables	500.238	516.067	495.191
. . . . Within 12 months
. . . . Beyond 12 months	500.238	516.067	495.191
. . . Receivab due from subsidiaries	490.000	490.000	490.000
. . . . Within 12 months
. . . . Beyond 12 months	490.000	490.000	490.000
. . . 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	10.238	26.067	5.191
. . . . Within 12 months
. . . . Beyond 12 months	10.238	26.067	5.191
. . Other securities
. . Own shares	311.858	311.858	311.858
. . . Total nominal value
. Total financial fixed assets	1.641.453	1.534.782	1.513.906
Total fixed assets	17.340.571	18.081.235	19.256.854
CURRENT ASSETS
. INVENTORIES
. . Raw materials and other consumables	1.268.437	1.616.000	1.699.360
. . Work in progress and semimanufactured	1.996.949	1.389.149	970.615
. . Work in progress on order	5.714.814	7.536.990	11.195.050
. . Finished goods
. . Advance payments
. Total Inventories	8.980.200	10.542.139	13.865.025
. CREDITS NOT HELD AS FIXED ASSETS
. . Within 12 months	19.377.626	19.293.591	27.265.162
. . Beyond 12 months	171.935	171.935	5.654
. . Trade receivables	15.060.597	11.839.043	18.330.189
. . . . Within 12 months	15.060.597	11.839.043	18.330.189
. . . . Beyond 12 months
. . Receivables due from subsid. comp.	669.217	666.217	665.105
. . . . Within 12 months	669.217	666.217	665.105
. . . . 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	1.939.308	4.808.478	4.754.167
. . . . Within 12 months	1.767.373	4.636.543	4.748.513
. . . . Beyond 12 months	171.935	171.935	5.654
. . Receivables for anticipated taxes	670.647	614.272	423.645
. . . . Within 12 months	670.647	614.272	423.645
. . . . Beyond 12 months
. . Receivables due from third parties	1.209.792	1.537.516	3.097.710
. . . . Within 12 months	1.209.792	1.537.516	3.097.710
. . . . Beyond 12 months
. Total Credits not held as fixed assets	19.549.561	19.465.526	27.270.816
. 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	260.089	138.335	701.249
. . Checks
. . Banknotes and coins	63.973	36.377	44.173
. Total Liquid funds	324.062	174.712	745.422
Total current assets	28.853.823	30.182.377	41.881.263
ADJUSTMENT ACCOUNTS
. Discount on loans	57.699	18.647
. Other adjustment accounts			48.354
Total adjustments accounts	57.699	18.647	48.354
TOTAL ASSETS	46.252.093	48.282.259	61.186.471
LIABILITIES
STOCKHOLDERS' EQUITY
. Capital stock	1.768.000	1.768.000	1.768.000
. Additional paid-in capital
. Revaluation reserves	761.223	1.513.483
. Legal reserve	110.158	110.158
. Reserve for Own shares	309.874	309.874
. Statute reserves			309.874
. Other reserves	-1	1
. Accumulated Profits (Losses)			-579.521
. Profit( loss) of the year	-326.557	-752.260	2.203.162
. Advances on dividends
. Partial loss of the year Coverage
Total Stockholders'Equity	2.622.697	2.949.256	3.701.515
RESERVES FOR RISKS AND CHARGES
. . Reserve for employee termination indem.
. . Taxation fund, also differed	2.940.213	2.371.734	2.382.933
. . Other funds
Total Reserves for Risks and Charges	2.940.213	2.371.734	2.382.933
Employee termination indemnities	985.565	1.067.769	1.196.711
ACCOUNTS PAYABLE
. . . . Within 12 months	23.551.508	28.844.146	40.388.331
. . . . Beyond 12 months	16.147.775	12.901.183	13.269.974
. . 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	19.686.023	23.221.120	21.405.280
. . . . Within 12 months	11.541.125	12.320.537	9.249.013
. . . . Beyond 12 months	8.144.898	10.900.583	12.156.267
. . Due to other providers of finance
. . . . Within 12 months
. . . . Beyond 12 months
. . Advances from customers	655.743	402.560	6.933.723
. . . . Within 12 months	655.743	402.560	6.933.723
. . . . Beyond 12 months
. . Trade payables	8.453.276	9.838.072	18.446.554
. . . . Within 12 months	8.453.276	9.838.072	18.446.554
. . . . 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	7.339.484	5.752.052	4.648.801
. . . . Within 12 months	952.936	3.751.452	3.579.369
. . . . Beyond 12 months	6.386.548	2.000.600	1.069.432
. . Due to social security and welfare inst.	2.710.853	1.780.139	1.343.065
. . . . Within 12 months	1.094.524	1.780.139	1.298.790
. . . . Beyond 12 months	1.616.329	1.616.329	44.275
. . Other payables	853.904	751.386	880.882
. . . . Within 12 months	853.904	751.386	880.882
. . . . Beyond 12 months
Total accounts payable	39.699.283	41.745.329	53.658.305
ADJUSTMENT ACCOUNTS
. Agio on loans
. Other adjustment accounts	4.335	148.171	247.007
Total adjustment accounts	4.335	148.171	247.007
TOTAL LIABILITIES	46.252.093	48.282.259	61.186.471

MEMORANDUM ACCOUNTS

Third party goods
Investment accounts
Risk accounts	-30.373.188
Civil and fiscal norms relation

PROFIT AND LOSS ACCOUNTS

VALUE OF PRODUCTION
. Revenues from sales and services	33.433.996	46.548.742	57.313.632
. Changes in work in progress	607.800	418.534	-624.622
. Changes in semi-manufact. products	-1.822.176	-3.658.060	5.218.675
. Capitalization of internal work	103.822		271.328
. Other income and revenues	413.233	164.913	135.633
. . Contributions for operating expenses
. . Different income and revenues	413.233	164.913	135.633
Total value of production	32.736.675	43.474.129	62.314.646
PRODUCTION COSTS
. Raw material,other materials and consum.	13.215.905	16.559.272	34.840.254
. Services received			13.364.511
. Leases and rentals	9.052.228	15.856.485	136.320
. Payroll and related costs	7.778.118	7.812.783	7.421.617
. . Wages and salaries	5.469.743	5.476.956	5.188.492
. . Social security contributions	1.807.866	1.824.781	1.726.956
. . Employee termination indemnities	357.522	373.804	358.065
. . Pension and similar
. . Other costs	142.987	137.242	148.104
. Amortization and depreciation	1.083.401	1.301.992	1.374.181
. . Amortization of intangible fixed assets	557.437	729.891	833.309
. . Amortization of tangible fixed assets	450.964	511.601	490.872
. . Depreciation of tangible fixed assets
. . Writedown of current receiv.and of liquid	75.000	60.500	50.000
. Changes in raw materials	347.563	83.360	259.788
. Provisions to risk reserves
. Other provisions
. Other operating costs	752.029	1.344.743	871.969
Total production costs	32.229.244	42.958.635	58.268.640
Diff. between value and cost of product.	507.431	515.494	4.046.006
FINANCIAL INCOME AND EXPENSE
. Income from equity investments
. . In subsidiary companies
. . In associated companies
. . In other companies
. Other financial income	93.948	1.220	7.366
. . 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	286	2
. . Financ.income other than the above	93.662	1.218
. . . - Subsidiary companies
. . . - Associated companies
. . . - Holding companies
. . . - Other companies	93.662	1.218
. Interest and other financial expense	-726.367	-1.464.084	-1.138.854
. . Towards subsidiary companies
. . Towards associated companies
. . Towards holding companies
. . Towards other companies	726.367	1.464.084
Total financial income and expense	-632.419	-1.462.864	-1.131.488
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		231.014	2
. . Gains on disposals
. . Other extraordinary income		231.014	2
. Extraordinary expense	-4.405	-1.000	-3.033
. . Losses on disposals
. . Taxes relating to prior years	-2.185
. . Other extraordinary expense	-2.220	-1.000	-3.033
Total extraordinary income and expense	-4.405	230.014	-3.031
Results before income taxes	-129.393	-717.356	2.911.487
. Taxes on current income	197.164	34.904	708.325
. . current taxes	259.731	236.729	549.235
. . differed taxes(anticip.)	-62.567	-201.825	159.090
. Net income for the period	-326.557	-752.260	2.203.162
. Adjustments in tax regulations pursuance
. Provisions in tax regulations pursuance
. Profit (loss) of the year	-326.557	-752.260	2.203.162

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	0,37	0,37	0,31	0,18
Elasticity Ratio	Units	0,62	0,63	0,68	0,79
Availability of stock	Units	0,19	0,22	0,23	0,21
Total Liquidity Ratio	Units	0,43	0,41	0,46	0,52
Quick Ratio	Units	0,01	0,00	0,01	0,03
COMPOSITION ON SOURCE
Net Short-term indebtedness	Units	8,86	9,72	10,71	3,01
Self Financing Ratio	Units	0,06	0,06	0,06	0,19
Capital protection Ratio	Units	0,45	0,66	-0,07	0,66
Liabilities consolidation quotient	Units	0,73	0,48	0,36	0,16
Financing	Units	15,14	14,15	14,50	3,56
Permanent Indebtedness Ratio	Units	0,43	0,35	0,30	0,34
M/L term Debts Ratio	Units	0,37	0,29	0,24	0,10
Net Financial Indebtedness Ratio	Units	7,38	7,81	5,58	0,69
CORRELATION
Fixed assets ratio	Units	1,14	0,94	0,94	1,65
Current ratio	Units	1,23	1,05	1,04	1,18
Acid Test Ratio-Liquidity Ratio	Units	0,84	0,68	0,69	0,86
Structure's primary quotient	Units	0,15	0,16	0,19	1,02
Treasury's primary quotient	Units	0,01	0,01	0,02	0,06
Rate of indebtedness ( Leverage )	%	1763,53	1637,10	1653,01	509,92
Current Capital ( net )	Value	5.302.315	1.338.231	1.492.932	330.495
RETURN
Return on Sales	%	2,26	1,18	6,24	3,79
Return on Equity - Net- ( R.O.E. )	%	-12,45	-25,51	59,52	6,70
Return on Equity - Gross - ( R.O.E. )	%	-4,93	-24,32	78,66	18,82
Return on Investment ( R.O.I. )	%	1,10	1,07	6,61	4,89
Return/ Sales	%	1,52	1,11	7,06	4,78
Extra Management revenues/charges incid.	%	-64,35	-145,93	54,45	29,96
Cash Flow	Value	756.844	549.732	3.577.343	165.166
Operating Profit	Value	507.431	515.494	4.046.006	225.594
Gross Operating Margin	Value	1.590.832	1.817.486	5.420.187	376.080
MANAGEMENT
Credits to clients average term	Days	162,16	91,56	115,14	111,07
Debts to suppliers average term	Days	136,66	109,26	137,37	127,44
Average stock waiting period	Days	96,69	81,53	87,09	62,88
Rate of capital employed return ( Turnover )	Units	0,72	0,96	0,94	1,10
Rate of stock return	Units	3,72	4,42	4,13	5,58
Labour cost incidence	%	23,26	16,78	12,95	18,94
Net financial revenues/ charges incidence	%	-1,89	-3,14	-1,97	-1,15
Labour cost on purchasing expenses	%	24,13	18,19	12,74	18,99
Short-term financing charges	%	1,83	3,51	2,12	2,55
Capital on hand	%	138,34	103,72	106,76	90,89
Sales pro employee	Value	137.588	190.773	415.316	199.007
Labour cost pro employee	Value	32.008	32.019	53.779	34.820

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	:	1.169.259
Population living in the region	:	9.393.092
Number of families in the region	:	3.858.736

Monthly family expences 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 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 moderately risky.

In the region 50.886 protested subjects are found; in the province they count to 5.551.

The insolvency index for the region is 0,55, , while for the province it is 0,48.

Total Bankrupt companies in the province : 3.452.

Total Bankrupt companies in the region : 39.612.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.31
UK Pound	1	Rs.99.00
Euro	1	Rs.78.14

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	PDT

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.