MIRA INFORM REPORT

Report No. :	504202
Report Date :	17.04.2018

IDENTIFICATION DETAILS

Name :	ITALIAN LEATHER GROUP S.P.A.
Registered Office :	Via Marina Del Mondo, N.C. 70043 – Monopoli (BA) -IT-
Country :	Italy
Financials (as on) :	31.12.2016
Date of Incorporation :	14.10.1993
Legal Form :	Joint stock company
Line of Business :	Preparation and tanning of leather; dressing and dyeing of fur
No. of Employees :	201 to 250

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Good
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Italy	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

ITALY - ECONOMIC OVERVIEW

Italy’s economy compromises a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, agricultural south, with a legacy of unemployment and underdevelopment. 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, reaching 131% of GDP in 2017. 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 longstanding structural economic problems, including labor market inefficiencies, a sluggish judicial system, and a weak banking sector. Italy’s economy returned to modest growth in late 2014 for the first time since 2011. In 2015-16, Italy’s economy grew at about 1% each year, and in 2017 growth accelerated to 1.5% of GDP. In 2017, overall unemployment was 11.4%, but youth unemployment remained high at 37.1%.

Source : CIA

Company Name And Address

Italian Leather Group S.p.a.

Via Marina Del Mondo, N.C.

70043 – Monopoli (BA) -IT-

Summary

Fiscal Code	:	04492910726
Legal Form	:	Joint stock company
start of Activities	:	14/10/1993
Equity	:	Over 2.582.254
Turnover Range	:	35.000.000/50.000.000
Number of Employees	:	from 201 to 250

Activity

Preparation and tanning of leather; dressing and dyeing of fur

Legal Data

Legal Form : Joint stock company

Fiscal Code : 04492910726

Foreign Trade Reg. no. : 031879 of Bari since 02/10/1997

Chamber of Commerce no. : 319589 of Bari since 10/12/1993

Chamber of Commerce no. : 371607 of Vicenza

Firms' Register : 30941 of Bari

Firms' Register : BA006-30941 of Bari since 19/02/1996

V.A.T. Code : 04492910726

Establishment date	: 14/10/1993
Start of Activities	: 14/10/1993
Legal duration	: 31/12/2050
Nominal Capital	: 7.500.000
Subscribed Capital	: 7.500.000
Paid up Capital	: 7.500.000

Legal mail :

ECOLEATHER@LEGALMAIL.IT

Members

---

Violante

Giovanni

Born in Bari

(BA)

on 05/05/1975

- Fiscal Code : VLNGNN75E05A662U

Residence:

Riccardo Ciusa

, 12

- 70132

Bari

(BA)

- IT -

Position	Since	Shares Amount	% Ownership
Procurator	21/03/2013

No Prejudicial events are reported

No Protests registered

Settanni

Giuseppe

Born in Bari

(BA)

on 12/08/1965

- Fiscal Code : STTGPP65M12A662J

Residence:

Parco Rosetio

, 55

- 70016

Noicattaro

(BA)

- IT -

Position	Since	Shares Amount	% Ownership
Board Chairman	29/04/2016
Director	28/10/2015

No Prejudicial events are reported

No Protests registered

Kulch

:

Marina Del Mondo

, N.C.

- 70043

Monopoli

(BA)

- IT -

Position	Since	Shares Amount	% Ownership
Partner

No Prejudicial events are reported

No Protests registered

Anastasia

Antonio

Born in Grottaglie

(TA)

on 30/07/1963

- Fiscal Code : NSTNTN63L30E205K

Residence:

Paganini

, 45

- 74023

Grottaglie

(TA)

- IT -

Position	Since	Shares Amount	% Ownership
Director	29/04/2016

Conese

Roberto

Born in Bari

(BA)

on 12/10/1957

- Fiscal Code : CNSRRT57R12A662E

Residence:

Vittorio Veneto

, 8

- 70123

Bari

(BA)

- IT -

Position	Since	Shares Amount	% Ownership
Managing Director	28/10/2015
Director	28/10/2015

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.

Conese

Roberto

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Conceria Venetorum S.p.a.	Vestenanova (VR) - IT -	00326470242	Chairman	Withdrawn	Ceased
Italian Leather S.p.a. - In Liquidazione-	Monopoli (BA) - IT -	03499080723	Managing Director	Withdrawn	In liquidation
Italian Leather S.p.a. - In Liquidazione-	Monopoli (BA) - IT -	03499080723	Director	Withdrawn	In liquidation
Italian Leather S.p.a. - In Liquidazione-	Monopoli (BA) - IT -	03499080723	Sole Director	Withdrawn	In liquidation
Italian Leather S.p.a. - In Liquidazione-	Monopoli (BA) - IT -	03499080723	Liquidator	Withdrawn	In liquidation
Italian Leather S.p.a. - In Liquidazione-	Monopoli (BA) - IT -	03499080723	Managing Director	Withdrawn	In liquidation
Italcutting S.r.l.	Monopoli (BA) - IT -	03528370723	Chairman	Withdrawn	In liquidation
Italservice S.r.l. (in Liquidazione)	Bitonto (BA) - IT -	04039290723	Liquidator	Withdrawn	Registered
CO.CA. DI ELIO CONESE eamp; C. S.A.S.	Bari (BA) - IT -	02955470725	Limited Partner	Withdrawn	Registered
Co.ca. Di Elio Conese E C. S.a.s.	Bari (BA) - IT -	02955470725	Limited Partner	Withdrawn	Ceased
Libra S.r.l.	Monopoli (BA) - IT -	05502790727	Sole Director	Active	Registered
Italthierry Auto Leather S.p.a.	Monopoli (BA) - IT -	06087940729	Director	Active	Registered
Italthierry Auto Leather S.p.a.	Monopoli (BA) - IT -	06087940729	Board Chairman	Active	Registered

Settanni

Giuseppe

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Waste Recycling S.p.a.	Santa Croce sull'Arno (PI) - IT -	01187730500	Director	Withdrawn	Registered
Defil S.r.l.	Bari (BA) - IT -	04263850721	Director	Active	Registered
Italthierry Auto Leather S.p.a.	Monopoli (BA) - IT -	06087940729	Director	Active	Registered
Sopraf S.r.l.	Bari (BA) - IT -	07281890728	Director	Active	Registered
Remarketing S.r.l.	Bari (BA) - IT -	01821790472	Sole Director	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
Kulch	Monopoli - IT -	00317550721	5.452.800 .Eur	72,70
Libra S.r.l.	Monopoli - IT -	05502790727	547.200 .Eur	7,29
Settanni Giuseppe	Noicattaro - IT -	STTGPP65M12A662J	1.500.000 .Eur	20,00

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
Italthierry Auto Leather S.p.a.	Monopoli - IT -	06087940729	.Eur	50,00			Active

Firm's location and structure

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

-	Legal and operative seat

Marina Del Mondo

, N.C.

- 70043

- Monopoli

(BA)

- IT -

PHONE

: 0804183411

FAX	: 0804183412

Legal mail

: ECOLEATHER@LEGALMAIL.IT

-

Branch

(Warehouse)

since 01/01/2016

Strada

, 16/Z

- 36071

- Arzignano

(VI)

- IT -

Employees

: 210

Assistants

: 1

Fittings and Equipment for a value of 990.000

Eur

Stocks for a value of 16.950.000

Eur

Historical Information and/or Firm's Status

CHANGES TO THE LEGAL FORM:

Former legal form	New legal form	Changement Date
Limited liability company	Joint stock company	31/07/2003

CEASINGS/INCORPORATIONS/MERGES:

Project of merging by taking over of

Italian Leather Group S.p.a.

Degli Ulivi

, 178

, 70016

, Noicattaro

(BA)

- IT -

Fiscal Code: 05560270729

Date

Merging/splitting-up project:

07/04/2014

The firm absorbed by merging of

Italian Leather Group S.p.a.

Degli Ulivi

, 178

, 70016

, Noicattaro

(BA)

- IT -

Fiscal Code: 05560270729

Date

:

24/07/2014

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:

Legal Mortgage on 30/03/2011. for an amount of 695.044 Euro. Event writing-off

 EQUITALIA ETR S. P. A

Search performed on a specialized data base.

Legal Procedures

None reported, standing to the latest received edition of the Official Publications.

National Real Estates Survey

The firm under review, by the reported percentages, owns the following real estates:

Town	Cadastre	No. Immovables	Up to Date
BITONTO (BA)	Buildings	1	13/04/2018
MONOPOLI (BA)	Buildings	4	13/04/2018

Buildings Details

Cadastre	Title	Location	Sheet No.	Particle No.	Sub No.	Categorie	Classe	Consistence	Cadastrial Rent	Part No.
B	Proprieta' per 1/1	BITONTO (BA) STRADA DETTA SPINETO MISCIANO, Piano T	52	472		cat. F/1
B	Proprieta' per 1/1	MONOPOLI (BA) VIA MARINA DEL MONDO, NC Piano T-S1	6	361	10	cat. D/7			Euro: 47.810,00
B	Proprieta' per 1/1	MONOPOLI (BA) VIA MARINA DEL MONDO, NC Piano T-S1	6	361	7	cat. D/7			Euro: 24.424,00
B	Proprieta' per 1/1	MONOPOLI (BA) VIA MARINA DEL MONDO, NC Piano T-1 - 2-3	6	361	8	cat. A/10	1	118 vani	Euro:31.689,80
B	Proprieta' per 1/1	MONOPOLI (BA) VIA MARINA DEL MONDO, NC Piano T-S1	6	361	9	cat. D/7			Euro: 56.744,00

All responsibilities are declined regarding any possible omissions concerning the given results. Therefore, we advise to request for "Hypothecating Survey Inspection" c/o the locally competent RR.II. Immovables Registry, as this service doesn't fully guarantees the actual title of the Real Estates of the requested Subject.

Financial and Economical Analysis

Company's starting of activities dates back to 1993.

Balance sheets for the years 2014, 2015 and 2016 were analyzed.

Unstable economic results mark the company's financial state of affairs. yet with a positive result in the 2016 (r.o.e. 0,25%). The turnover is growing in the last financial year (+41,46%).

The operating result in 2016 was positive (2,98%) falling within the field's average.

The amount of the operating result for the year 2016 is of Eur. 1.737.920 on stable levels if compared to the previous year.

The economic management produced a gross operating margin of Eur. 2.729.971 ,with no change if compared to the year before.

The analysis shows a fair financial position as the indebtedness volume is acceptable (1,07) even though on the increase if compared to 2015.

The management generated equity capital for an amount of Eur. 22.381.245 on the same levels as the year before.

Total indebtedness was equal to Eur. 31.707.164 (Eur. 6.376.159 was the value of m/l term debts) , with no sensible variation.

The company does not exceed in bank credits; payments average period is instead slightly high (93,22 gg.) even if it still falls within the sector's average.

It shows a good range of liquidity.

Accounts receivable average term is 40,14 days. , shorter than the sector's average.

As far as the cash flow is concerned during the latest financial year it amounted to Eur. 1.046.958

Subordinate employment cost is of Eur. 7.582.412, i.e. 21,05% on total production costs. , whereas the incidence on sales revenues is of 21,16%.

High incidence of financial charges on turnover.

Financial Data

Complete balance-sheet for the year

al 31/12/2016

(in Eur

x 1)

Item Type	Value
Sales	35.827.039
Profit (Loss) for the period	54.907

Complete balance-sheet for the year

al 31/12/2015

(in Eur

x 1)

Item Type	Value
Sales	25.325.890
Profit (Loss) for the period	932.473

Complete balance-sheet for the year

al 31/12/2014

(in Eur

x 1)

Item Type	Value
Sales	32.706.654
Profit (Loss) for the period	-4.111.863

Complete balance-sheet for the year

al 31/12/2013

(in Eur

x 1)

Item Type	Value
Sales	39.678.538
Profit (Loss) for the period	-5.636.328

Complete balance-sheet for the year

al 31/12/2012

(in Eur

x 1)

Item Type	Value
Sales	49.659.801
Profit (Loss) for the period	-5.362.866

Financials

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 31/12/2016 - 12 Mesi - Currency: - Amounts x 1

- Balance Sheet as at 31/12/2015 - 12 Mesi - Currency: - Amounts x 1

- Balance Sheet as at 31/12/2014 - 12 Mesi - Currency: - Amounts x 1

Years

2016

2015

2014

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.	571.245	490.274	457.144
. . Industrial patent rights
. . Concessions,licenses,trademarks,etc.	9.095	9.816	3.037
. . Goodwill
. . Assets in formation and advance paymen.
. . Other intangible fixed assets	54.387	39.087	22.238
. Total Intangible Fixed Assets	634.727	539.177	482.419
. TANGIBLE FIXED ASSETS
. . Real estate	14.559.837	14.833.724	19.983.393
. . Plant and machinery	948.660	690.008	775.529
. . Industrial and commercial equipment	36.954	28.345	26.521
. . Other assets	170.564	153.949	164.064
. . Assets under construction and advances
. Total Tangible fixed assets	15.716.015	15.706.026	20.949.507
. FINANCIAL FIXED ASSETS
. . Equity investments	3.324.659	3.324.659	3.261.150
. . . Equity invest. in subsidiary companies	255.339	255.339	229.354
. . . Equity invest. in associated companies	3.066.732	3.066.732	3.029.208
. . . Equity invest. in holding companies
. . . Equity invest. in other companies	2.588	2.588	2.588
. . Financial receivables	84.798	92.424	99.108
. . . . Within 12 months			6.801
. . . . Beyond 12 months	84.798	92.424	92.307
. . . Receivab due from subsidiaries			5.801
. . . . Within 12 months			5.801
. . . . 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	84.798	92.424	93.307
. . . . Within 12 months			1.000
. . . . Beyond 12 months	84.798	92.424	92.307
. . Other securities
. . Own shares
. . . Total nominal value
. Total financial fixed assets	3.409.457	3.417.083	3.360.258
Total fixed assets	19.760.199	19.662.286	24.792.184
CURRENT ASSETS
. INVENTORIES
. . Raw materials and other consumables	9.506.456	7.933.531	7.387.757
. . Work in progress and semimanufactured	2.528.281	1.886.544	1.145.637
. . Work in progress on order
. . Finished goods	4.919.916	4.934.062	3.427.614
. . Advance payments		9.350	75.914
. Total Inventories	16.954.653	14.763.487	12.036.922
. CREDITS NOT HELD AS FIXED ASSETS
. . Within 12 months	10.208.098	10.440.074	7.964.276
. . Beyond 12 months	10.074.746	10.887.552	13.516.103
. . Trade receivables	3.994.986	4.139.161	3.300.032
. . . . Within 12 months	3.994.986	4.139.161	3.300.032
. . . . Beyond 12 months
. . Receivables due from subsid. comp.	1.046.570	876.994	1.250.526
. . . . Within 12 months	1.046.570	876.994	1.250.526
. . . . Beyond 12 months
. . Receivables due from assoc. comp.	703.791	1.641.573	1.478.035
. . . . Within 12 months	703.791	1.641.573	1.478.035
. . . . Beyond 12 months
. . Receivables due from holding comp.	10.291.159	10.354.466	10.385.082
. . . . Within 12 months	695.093	3.059	3.059
. . . . Beyond 12 months	9.596.066	10.351.407	10.382.023
. . Fiscal Receivables	169.834	177.332	235.800
. . . . Within 12 months	169.834	177.332	235.800
. . . . Beyond 12 months
. . Receivables for anticipated taxes	3.232.702	3.140.629	3.134.080
. . . . Within 12 months	3.232.702	3.140.629
. . . . Beyond 12 months			3.134.080
. . Receivables due from third parties	843.802	997.471	1.696.824
. . . . Within 12 months	365.122	461.326	1.696.824
. . . . Beyond 12 months	478.680	536.145
. Total Credits not held as fixed assets	20.282.844	21.327.626	21.480.379
. 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	1.320.430	1.422.591	485.278
. . Checks
. . Banknotes and coins	6.869	2.385	2.368
. Total Liquid funds	1.327.299	1.424.976	487.646
Total current assets	38.564.796	37.516.089	34.004.947
ADJUSTMENT ACCOUNTS
. Discount on loans		4.577	3.954
. Other adjustment accounts	13.293
Total adjustments accounts	13.293	4.577	3.954
TOTAL ASSETS	58.338.288	57.182.952	58.801.085
LIABILITIES
STOCKHOLDERS' EQUITY
. Capital stock	7.500.000	7.500.000	6.000.000
. Additional paid-in capital	1.135.000	1.135.000
. Revaluation reserves	8.379.148	8.379.148	12.130.229
. Legal reserve	964.932	918.308	1.144.001
. Reserve for Own shares
. Statute reserves
. Other reserves	4.347.258	3.818.409	9.522.496
. Accumulated Profits (Losses)			-5.636.328
. Profit( loss) of the year	54.907	932.473	-4.111.863
. Advances on dividends
. Partial loss of the year Coverage
Total Stockholders'Equity	22.381.245	22.683.338	19.048.535
RESERVES FOR RISKS AND CHARGES
. . Reserve for employee termination indem.
. . Taxation fund, also differed	2.876.152	3.016.793	4.013.406
. . Other funds	28.000	28.000	1.241.195
Total Reserves for Risks and Charges	2.904.152	3.044.793	5.254.601
Employee termination indemnities	527.640	521.789	622.836
ACCOUNTS PAYABLE
. . . . Within 12 months	25.331.005	25.095.055	26.577.136
. . . . Beyond 12 months	6.376.159	4.946.609	5.853.510
. . Bonds	1.500.000
. . . . Within 12 months
. . . . Beyond 12 months	1.500.000
. . Convertible bonds repayable
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to shareholders for financing			500.000
. . . . Within 12 months			500.000
. . . . Beyond 12 months
. . Due to banks	21.233.663	20.265.770	22.875.511
. . . . Within 12 months	16.357.504	15.319.161	17.022.001
. . . . Beyond 12 months	4.876.159	4.946.609	5.853.510
. . Due to other providers of finance
. . . . Within 12 months
. . . . Beyond 12 months
. . Advances from customers
. . . . Within 12 months
. . . . Beyond 12 months
. . Trade payables	5.236.402	5.569.429	3.334.913
. . . . Within 12 months	5.236.402	5.569.429	3.334.913
. . . . Beyond 12 months
. . Securities issued
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to subsidiary companies	142.545	103.199	118.098
. . . . Within 12 months	142.545	103.199	118.098
. . . . Beyond 12 months
. . Due to associated companies	1.248.797	1.917.723	3.022.832
. . . . Within 12 months	1.248.797	1.917.723	3.022.832
. . . . Beyond 12 months
. . Due to holding companies	795.447	246.271	686.019
. . . . Within 12 months	795.447	246.271	686.019
. . . . Beyond 12 months
. . Due to the tax authorities	216.412	363.247	182.322
. . . . Within 12 months	216.412	363.247	182.322
. . . . Beyond 12 months
. . Due to social security and welfare inst.	566.196	646.704	567.654
. . . . Within 12 months	566.196	646.704	567.654
. . . . Beyond 12 months
. . Other payables	767.702	929.321	1.143.297
. . . . Within 12 months	767.702	929.321	1.143.297
. . . . Beyond 12 months
Total accounts payable	31.707.164	30.041.664	32.430.646
ADJUSTMENT ACCOUNTS
. Agio on loans
. Other adjustment accounts	818.087	891.368	1.444.467
Total adjustment accounts	818.087	891.368	1.444.467
TOTAL LIABILITIES	58.338.288	57.182.952	58.801.085

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	35.827.039	25.325.890	32.706.654
. Changes in work in progress	597.214	2.247.355	-866.793
. Changes in semi-manufact. products
. Capitalization of internal work	671.231	226.322	121.037
. Other income and revenues	656.004	818.250	366.837
. . Contributions for operating expenses	63.364	518.975	120.294
. . Different income and revenues	592.640	299.275	246.543
Total value of production	37.751.488	28.617.817	32.327.735
PRODUCTION COSTS
. Raw material,other materials and consum.	21.434.382	16.103.660	16.815.425
. Services received	7.047.790	5.047.529
. Leases and rentals	186.307	123.768	4.925.341
. Payroll and related costs	7.582.412	4.760.140	5.889.831
. . Wages and salaries	5.236.755	3.600.300	4.221.832
. . Social security contributions	1.834.677	911.771	1.424.809
. . Employee termination indemnities	370.398	248.069	243.190
. . Pension and similar
. . Other costs	140.582
. Amortization and depreciation	992.051	1.050.021	1.023.662
. . Amortization of intangible fixed assets	274.440	203.366	215.337
. . Amortization of tangible fixed assets	605.466	654.006	735.825
. . Depreciation of tangible fixed assets		5.801
. . Writedown of current receiv.and of liquid	112.145	186.848	72.500
. Changes in raw materials	-1.572.925	-545.774	5.613.840
. Provisions to risk reserves
. Other provisions
. Other operating costs	343.551	322.046	362.341
Total production costs	36.013.568	26.861.390	34.630.440
Diff. between value and cost of product.	1.737.920	1.756.427	-2.302.705
FINANCIAL INCOME AND EXPENSE
. Income from equity investments	357.000	357.000	410.000
. . In subsidiary companies
. . In associated companies	357.000	357.000	410.000
. . In other companies
. Other financial income	1.400	5.083	136
. . 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	1.400	5.083	136
. . . - Subsidiary companies
. . . - Associated companies
. . . - Holding companies
. . . - Other companies	1.400	5.083	136
. Interest and other financial expense	-1.418.020	-1.907.361	-2.159.501
. . Towards subsidiary companies
. . Towards associated companies			-84.087
. . Towards holding companies
. . Towards other companies			2.159.501
Total financial income and expense	-1.059.620	-1.545.278	-1.749.365
ADJUSTMENTS TO FINANCIAL ASSETS
. Revaluations
. . Of equity investments
. . Of financ.fixed assets not repres.E.I.
. . Of securities incl.among current assets
. Devaluation		-3.820	-25.754
. . Of equity investments		-3.820	-25.754
. . Of financial fixed assets (no equity inv)
. . Of securities included among current ass
Total adjustments to financial assets		-3.820	-25.754
EXTRAORDINARY INCOME AND EXPENSE
. Extraordinary income		1.372.129	243.907
. . Gains on disposals		325.661
. . Other extraordinary income		1.046.468	243.907
. Extraordinary expense		-602.858	-1.958.137
. . Losses on disposals
. . Taxes relating to prior years
. . Other extraordinary expense		-602.858	-1.958.137
Total extraordinary income and expense		769.271	-1.714.230
Results before income taxes	678.300	976.600	-5.792.054
. Taxes on current income	623.393	44.127	-1.680.191
. . current taxes	766.550	149.355
. . differed taxes(anticip.)		-105.228	-664.575
. Net income for the period	54.907	932.473	-4.111.863
. Adjustments in tax regulations pursuance
. Provisions in tax regulations pursuance
. Profit (loss) of the year	54.907	932.473	-4.111.863

RATIOS	Value Type	as at 31/12/2016	as at 31/12/2015	as at 31/12/2014	Sector Average
COMPOSITION ON INVESTMENT
Rigidity Ratio	Units	0,34	0,34	0,42	0,18
Elasticity Ratio	Units	0,66	0,66	0,58	0,80
Availability of stock	Units	0,29	0,26	0,20	0,20
Total Liquidity Ratio	Units	0,37	0,40	0,37	0,51
Quick Ratio	Units	0,02	0,02	0,01	0,02
COMPOSITION ON SOURCE
Net Short-term indebtedness	Units	1,07	1,04	1,37	2,38
Self Financing Ratio	Units	0,38	0,40	0,32	0,24
Capital protection Ratio	Units	0,66	0,63	0,90	0,68
Liabilities consolidation quotient	Units	0,27	0,22	0,24	0,18
Financing	Units	1,42	1,32	1,70	2,86
Permanent Indebtedness Ratio	Units	0,50	0,49	0,43	0,38
M/L term Debts Ratio	Units	0,12	0,10	0,11	0,11
Net Financial Indebtedness Ratio	Units	0,96	0,83	1,20	1,00
CORRELATION
Fixed assets ratio	Units	1,48	1,43	1,03	1,78
Current ratio	Units	1,52	1,49	1,28	1,25
Acid Test Ratio-Liquidity Ratio	Units	0,85	0,91	0,83	0,84
Structure's primary quotient	Units	1,13	1,15	0,77	1,07
Treasury's primary quotient	Units	0,05	0,06	0,02	0,03
Rate of indebtedness ( Leverage )	%	260,66	252,09	308,69	408,81
Current Capital ( net )	Value	13.233.791	12.421.034	7.427.811	312.424
RETURN
Return on Sales	%	2,92	7,83	-9,44	2,67
Return on Equity - Net- ( R.O.E. )	%	0,25	4,11	-21,59	3,20
Return on Equity - Gross - ( R.O.E. )	%	3,03	4,31	-30,41	8,58
Return on Investment ( R.O.I. )	%	2,98	3,07	-3,92	4,36
Return/ Sales	%	4,85	6,94	-7,04	3,63
Extra Management revenues/charges incid.	%	3,16	53,09	n.c.	23,99
Cash Flow	Value	1.046.958	1.982.494	-3.088.201	112.609
Operating Profit	Value	1.737.920	1.756.427	-2.302.705	127.644
Gross Operating Margin	Value	2.729.971	2.806.448	-1.279.043	230.719
MANAGEMENT
Credits to clients average term	Days	40,14	58,84	36,32	101,46
Debts to suppliers average term	Days	93,22	132,61	118,59	94,66
Average stock waiting period	Days	170,37	209,86	132,49	56,34
Rate of capital employed return ( Turnover )	Units	0,61	0,44	0,56	1,34
Rate of stock return	Units	2,11	1,72	2,72	6,30
Labour cost incidence	%	21,16	18,80	18,01	12,44
Net financial revenues/ charges incidence	%	-2,96	-6,10	-5,35	-1,48
Labour cost on purchasing expenses	%	21,05	17,72	17,01	12,90
Short-term financing charges	%	4,47	6,35	6,66	3,49
Capital on hand	%	162,83	225,79	179,78	74,43
Sales pro employee	Value	151.809	171.120	177.753	253.464
Labour cost pro employee	Value	32.128	32.163	32.009	32.147

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	:	1.594.109
Population living in the region	:	4.068.167
Number of families in the region	:	1.407.246

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

- per food products	:	476
- per non food products	:	1.433
- per energy consume	:	85

Sector Data

The values are calculated on a base of 923 significant companies.

The companies cash their credits on an average of 101 dd.

The average duration of suppliers debts is about 95 dd.

The sector's profitability is on an average of 2,67%.

The labour cost affects the turnover in the measure of 12,44%.

Goods are held in stock in a range of 56 dd.

The difference between the sales volume and the resources used to realize it is about 1,34.

The employees costs represent the 12,90% of the production costs.

Statistical Detrimental Data

Statistically the trade activity passes through serious crises.

The area is statistically considered remarkably risky.

In the region 41.341 protested subjects are found; in the province they count to 14.510.

The insolvency index for the region is 1,02, , while for the province it is 0,92.

Total Bankrupt companies in the province : 8.292.

Total Bankrupt companies in the region : 15.496.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.45
UK Pound	1	INR 93.28
Euro	1	INR 80.74
Euro	1	INR 81.30

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VAR
Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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