MIRA INFORM REPORT

Report Date :

24.09.2014

IDENTIFICATION DETAILS

Name :	RAYS S.P.A.
Registered Office :	Via F.Crispi, Localita' Scaricalasino 60027- Osimo (AN)
Country :	Italy
Financials (as on) :	31.12.2012
Date of Incorporation :	09.03.1993
Legal Form :	Joint Stock Company
Line of Business :	Wholesale of Medical and Orthopaedic Products.
No. of Employees :	From 16 to 25

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 – 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

RAYS S.P.A.

Via F.crispi, LOCALITA' SCARICALASINO

60027 - Osimo (AN) -IT-

Summary

Fiscal Code	:	01316780426
Legal Form	:	Joint stock company
start of Activities	:	11/06/1993
Equity	:	Over 2.582.254
Turnover Range	:	25.000.000/35.000.000
Number of Employees	:	from 16 to 25

Activity

Wholesale of medical and orthopaedic products

Legal Data

Legal Form : Joint stock company

Fiscal Code : 01316780426

Chamber of Commerce no. : 123086 of Ancona since 25/03/1993

Chamber of Commerce no. : 208196 of Bolzano

Chamber of Commerce no. : 402281 of Verona

Firms' Register : AN002-21190 of Ancona

V.A.T. Code : 01316780426

Establishment date	: 09/03/1993
Start of Activities	: 11/06/1993
Legal duration	: 31/12/2030
Nominal Capital	: 1.100.000
Subscribed Capital	: 1.100.000
Paid up Capital	: 1.100.000

Members

Marconi

Stefano

Born in Ancona

(AN)

on 08/02/1961

- Fiscal Code : MRCSFN61B08A271B

Residence:

Bernabei

, 13

- 60100

Ancona

(AN)

- IT -

Position	Since	Shares Amount	% Ownership
Director	28/05/2014
Board Chairman	28/05/2014
Managing Director	28/05/2014

No Prejudicial events are reported

No Protests registered

Marconi

Andrea

Born in Loreto

(AN)

on 06/06/1990

- Fiscal Code : MRCNDR90H06E690D

Residence:

Lazzaro Bernabei

, 13

- 60121

Ancona

(AN)

- IT -

Position	Since	Shares Amount	% Ownership
Director	28/05/2014

Guidi

Irene

Born in Ancona

(AN)

on 27/11/1967

- Fiscal Code : GDURNI67S67A271S

Residence:

Pompeo Compagnoni

, 13

- 60027

Osimo

(AN)

- IT -

Position	Since	Shares Amount	% Ownership
Procurator	01/04/2014
Director	28/05/2014
Managing Director	28/05/2014

No Prejudicial events are reported

No Protests registered

Aemme Immobiliare 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.

Marconi

Stefano

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Aemme Immobiliare S.r.l.	Osimo (AN) - IT -	02303870428	Director	Active	Registered
Aemme Immobiliare S.r.l.	Osimo (AN) - IT -	02303870428	Sole Director	Withdrawn	Registered
Aemme Immobiliare S.r.l.	Osimo (AN) - IT -	02303870428	Sole partner	Withdrawn	Registered
Aemme Immobiliare S.r.l.	Osimo (AN) - IT -	02303870428	Board Chairman	Active	Registered
Marconi Stefano Rappresentanze	Osimo (AN) - IT -	MRCSFN61B08A271B	Proprietor	Active	Registered
Innotek Srl In Liquidazione	Ancona (AN) - IT -	02370770428	Director	Withdrawn	Registered
Innotek Srl In Liquidazione	Ancona (AN) - IT -	02370770428	Liquidator	Withdrawn	Registered
Innotek Srl In Liquidazione	Ancona (AN) - IT -	02370770428	Board Chairman	Withdrawn	Registered
Technosafe S.r.l. In Liquidazione	Osimo (AN) - IT -	02310470428	Liquidator	Active	Registered
Mediflex S.r.l.	Osimo (AN) - IT -	02303840421	Sole Director	Withdrawn	Registered
"in4 Hospital Service - Societa' A RespoNsabilita' Limitata"	Roma (RM) - IT -	09943451006	Sole Director	Withdrawn	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
Marconi Stefano	Ancona - IT -	MRCSFN61B08A271B	110.000 .Eur	10,00
Aemme Immobiliare S.r.l.		02303870428	990.000 .Eur	90,00

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
Centro Commerciale Ancona Sud - S.p.a.	Ancona - IT -	00858830425	18.077 .Eur	0,50			Active

Firm's location and structure

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

-	Legal and operative seat

F.crispi

, Loc: LOCALITA' SCARICALASINO

- 60027

- Osimo

(AN)

- IT -

-

Branch

(Warehouse)

since 26/11/2013

Via Stazione

, 51

- 39044

- Egna

(BZ)

- IT -

Employees

: 20

Assistants

: 1

Fittings and Equipment for a value of 100.000

Eur

Stocks for a value of 7.330.000

Eur

Historical Information and/or Firm's Status

EX-MEMBERS / EX-POSITIONS:

Marconi

Stefano

Born in Ancona

(AN)

on 08/02/1961

- Fiscal Code : MRCSFN61B08A271B

Residence:

Bernabei

, 13

- 60100

Ancona

(AN)

- IT -

Ex-Postions

Sole Director

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

Subject is active since 1993

Balance sheets for the years 2011, 2012 and 2013 were analyzed.

During the last years, it achieved profits (r.o.e. 22,86% on 2013) with a remarkable upward trend (+19,33% on 2013 compared to 2012 and +12,84% on 2012 compared to 2011).

The operating result was positive in the last financial year (13,83%) and in line with the sector's average.

The amount of the operating result for the year 2013 is of Eur. 3.102.803 rising (+more then 100%) in relation to the previous year.

A gross operating margine for a value of Eur. 3.783.613 was reached. growing by more then 100% if compared to the year before.

The analysis shows a fair financial position as the indebtedness volume is acceptable (1,31) and decreasing as against 2012.

Subject can manage an equity capital funds for an amount of Eur. 8.318.927 with a growth of 23,84% in 2013.

During the last financial year debts totalled Eur. 13.610.218 (Eur. 1.374.086 of which were m/l term debts) , with no sensible variation.

The company does not exceed in bank borrowings; the recourse to suppliers' credit is also limited below the sector's average.

Payments are supported by good current assets.

As far as the collection of credit goes, the average is high (169,07 days). even higher than the average of the specific sector.

During financial year 2013 the cash flow amounted to Eur. 2.282.256

Labour cost amounts to Eur. 673.458, with a 2,88% incidence on production costs. and a 2,55% incidence on sales volumes.

Limited financial charges in relation to sales volume.

Financial Data

Complete balance-sheet for the year

al 31/12/2012

(in Eur

x 1)

Item Type	Value
Sales	22.154.322
Profit (Loss) for the period	843.722

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 31/12/2012 - 12 Mesi - Currency: - Amounts x 1

Years

2012

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.	1.261
. . Industrial patent rights
. . Concessions,licenses,trademarks,etc.
. . Goodwill	193.061
. . Assets in formation and advance paymen.
. . Other intangible fixed assets	18.396
. Total Intangible Fixed Assets	212.718
. TANGIBLE FIXED ASSETS
. . Real estate	401.715
. . Plant and machinery	153.131
. . Industrial and commercial equipment	8.740
. . Other assets	138.455
. . Assets under construction and advances	102.924
. Total Tangible fixed assets	804.965
. FINANCIAL FIXED ASSETS
. . Equity investments	26.650
. . . Equity invest. in subsidiary companies
. . . Equity invest. in associated companies
. . . Equity invest. in holding companies
. . . Equity invest. in other companies	26.650
. . Financial receivables	173.425
. . . . Within 12 months	52.000
. . . . Beyond 12 months	121.425
. . . 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	173.425
. . . . Within 12 months	52.000
. . . . Beyond 12 months	121.425
. . Other securities
. . Own shares
. . . Total nominal value
. Total financial fixed assets	200.075
Total fixed assets	1.217.758
CURRENT ASSETS
. INVENTORIES
. . Raw materials and other consumables
. . Work in progress and semimanufactured
. . Work in progress on order
. . Finished goods	6.222.477
. . Advance payments	22.615
. Total Inventories	6.245.092
. CREDITS NOT HELD AS FIXED ASSETS
. . Within 12 months	14.687.449
. . Beyond 12 months
. . Trade receivables	14.327.355
. . . . Within 12 months	14.327.355
. . . . 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.	6.008
. . . . Within 12 months	6.008
. . . . Beyond 12 months
. . Fiscal Receivables	35.138
. . . . Within 12 months	35.138
. . . . Beyond 12 months
. . Receivables for anticipated taxes	8.808
. . . . Within 12 months	8.808
. . . . Beyond 12 months
. . Receivables due from third parties	310.140
. . . . Within 12 months	310.140
. . . . Beyond 12 months
. Total Credits not held as fixed assets	14.687.449
. 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	367.199
. . Checks
. . Banknotes and coins	1.590
. Total Liquid funds	368.789
Total current assets	21.301.330
ADJUSTMENT ACCOUNTS
. Discount on loans	73.799
. Other adjustment accounts
Total adjustments accounts	73.799
TOTAL ASSETS	22.592.887
LIABILITIES
STOCKHOLDERS' EQUITY
. Capital stock	1.100.000
. Additional paid-in capital	1.610.000
. Revaluation reserves	426.060
. Legal reserve	190.838
. Reserve for Own shares
. Statute reserves
. Other reserves	45.370
. Accumulated Profits (Losses)	2.501.489
. Profit( loss) of the year	843.722
. Advances on dividends
. Partial loss of the year Coverage
Total Stockholders'Equity	6.717.479
RESERVES FOR RISKS AND CHARGES
. . Reserve for employee termination indem.	49.519
. . Taxation fund, also differed	4.976
. . Other funds
Total Reserves for Risks and Charges	54.495
Employee termination indemnities	118.729
ACCOUNTS PAYABLE
. . . . Within 12 months	14.669.358
. . . . Beyond 12 months	1.001.099
. . Bonds
. . . . Within 12 months
. . . . Beyond 12 months
. . Convertible bonds repayable
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to shareholders for financing	39.467
. . . . Within 12 months	39.467
. . . . Beyond 12 months
. . Due to banks	10.876.966
. . . . Within 12 months	9.876.966
. . . . Beyond 12 months	1.000.000
. . Due to other providers of finance
. . . . Within 12 months
. . . . Beyond 12 months
. . Advances from customers
. . . . Within 12 months
. . . . Beyond 12 months
. . Trade payables	2.928.760
. . . . Within 12 months	2.928.760
. . . . 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	1.485.490
. . . . Within 12 months	1.484.391
. . . . Beyond 12 months	1.099
. . Due to social security and welfare inst.	51.975
. . . . Within 12 months	51.975
. . . . Beyond 12 months
. . Other payables	287.799
. . . . Within 12 months	287.799
. . . . Beyond 12 months
Total accounts payable	15.670.457
ADJUSTMENT ACCOUNTS
. Agio on loans
. Other adjustment accounts	31.727
Total adjustment accounts	31.727
TOTAL LIABILITIES	22.592.887

PROFIT AND LOSS ACCOUNTS

VALUE OF PRODUCTION
. Revenues from sales and services	22.154.322
. Changes in work in progress
. Changes in semi-manufact. products
. Capitalization of internal work
. Other income and revenues	84.105
. . Contributions for operating expenses
. . Different income and revenues	84.105
Total value of production	22.238.427
PRODUCTION COSTS
. Raw material,other materials and consum.	15.816.086
. Services received
. Leases and rentals	3.476.346
. Payroll and related costs	678.252
. . Wages and salaries	471.926
. . Social security contributions	172.646
. . Employee termination indemnities	32.784
. . Pension and similar
. . Other costs	896
. Amortization and depreciation	366.017
. . Amortization of intangible fixed assets	21.858
. . Amortization of tangible fixed assets	119.827
. . Depreciation of tangible fixed assets
. . Writedown of current receiv.and of liquid	224.332
. Changes in raw materials	356.197
. Provisions to risk reserves	4.976
. Other provisions
. Other operating costs	137.060
Total production costs	20.834.934
Diff. between value and cost of product.	1.403.493
FINANCIAL INCOME AND EXPENSE
. Income from equity investments
. . In subsidiary companies
. . In associated companies
. . In other companies
. Other financial income	250.668
. . 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	2.000
. . Financ.income other than the above	248.668
. . . - Subsidiary companies
. . . - Associated companies
. . . - Holding companies
. . . - Other companies	248.668
. Interest and other financial expense	-232.074
. . Towards subsidiary companies
. . Towards associated companies
. . Towards holding companies
. . Towards other companies	232.074
Total financial income and expense	18.594
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	63.967
. . Gains on disposals	2.873
. . Other extraordinary income	61.094
. Extraordinary expense	-149.067
. . Losses on disposals	-145.640
. . Taxes relating to prior years
. . Other extraordinary expense	-3.427
Total extraordinary income and expense	-85.100
Results before income taxes	1.336.987
. Taxes on current income	493.265
. . current taxes	493.265
. . differed taxes(anticip.)
. Net income for the period	843.722
. Adjustments in tax regulations pursuance
. Provisions in tax regulations pursuance
. Profit (loss) of the year	843.722

RATIOS

Ratios	Value Type	as at 31/12/2012	Sector Average
COMPOSITION ON INVESTMENT
Rigidity Ratio	Units	0,05	0,09
Elasticity Ratio	Units	0,94	0,89
Availability of stock	Units	0,28	0,26
Total Liquidity Ratio	Units	0,67	0,54
Quick Ratio	Units	0,02	0,03
COMPOSITION ON SOURCE
Net Short-term indebtedness	Units	2,13	3,95
Self Financing Ratio	Units	0,30	0,17
Capital protection Ratio	Units	0,71	0,62
Liabilities consolidation quotient	Units	0,08	0,10
Financing	Units	2,33	4,85
Permanent Indebtedness Ratio	Units	0,35	0,29
M/L term Debts Ratio	Units	0,05	0,07
Net Financial Indebtedness Ratio	Units	1,57	1,04
CORRELATION
Fixed assets ratio	Units	6,44	2,37
Current ratio	Units	1,45	1,18
Acid Test Ratio-Liquidity Ratio	Units	1,03	0,80
Structure's primary quotient	Units	5,52	1,48
Treasury's primary quotient	Units	0,03	0,04
Rate of indebtedness ( Leverage )	%	336,33	602,26
Current Capital ( net )	Value	6.631.972	191.984
RETURN
Return on Sales (R.O.S.)	%	5,46	2,03
Return on Equity - Net- ( R.O.E. )	%	12,56	6,31
Return on Equity - Gross - ( R.O.E. )	%	19,90	17,00
Return on Investment ( R.O.I. )	%	6,21	4,18
Return/ Sales	%	6,34	3,46
Extra Management revenues/charges incid.	%	60,12	27,96
Cash Flow	Value	1.209.739	44.823
Operating Profit	Value	1.403.493	74.603
Gross Operating Margin	Value	1.774.486	111.383
MANAGEMENT
Credits to clients average term	Days	232,81	113,70
Debts to suppliers average term	Days	54,65	118,14
Average stock waiting period	Days	101,48	72,90
Rate of capital employed return ( Turnover )	Units	0,98	1,25
Rate of stock return	Units	3,55	4,88
Labour cost incidence	%	3,06	8,14
Net financial revenues/charges incidence	%	0,08	-1,38
Labour cost on purchasing expenses	%	3,26	8,25
Short-term financing charges	%	1,48	2,76
Capital on hand	%	101,98	79,85
Sales pro employee	Value	1.054.967	397.742
Labour cost pro employee	Value	32.297	33.267

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	:	461.345
Population living in the region	:	1.518.780
Number of families in the region	:	577.034

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

- per food products	:	496
- per non food products	:	1.837
- per energy consume	:	122

Sector Data

The values are calculated on a base of 9.175 significant companies.

The companies cash their credits on an average of 114 dd.

The average duration of suppliers debts is about 118 dd.

The sector's profitability is on an average of 2,03%.

The labour cost affects the turnover in the measure of 8,14%.

Goods are held in stock in a range of 73 dd.

The difference between the sales volume and the resources used to realize it is about 1,25.

The employees costs represent the 8,25% 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 9.333 protested subjects are found; in the province they count to 2.315.

The insolvency index for the region is 0,62, , while for the province it is 0,51.

Total Bankrupt companies in the province : 855.

Total Bankrupt companies in the region : 6.005.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.87
UK Pound	1	Rs.99.63
Euro	1	Rs.78.23

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	NIT

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.