MIRA INFORM REPORT

Report No. :	493710
Report Date :	22.02.2018

IDENTIFICATION DETAILS

Name :	CARLO GAVAZZI AUTOMATION S.P.A.
Registered Office :	Viale Lunigiana, 46 20125 – Milano (MI) -IT-
Country :	Italy
Financials (as on) :	31.03.2017
Date of Incorporation :	08.04.1987
Legal Form :	Joint stock company with sole shareholder
Line of Business :	Manufacture of other electrical equipment n.e.c.
No. of Employees :	51 to 70

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+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
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 records. 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

Carlo Gavazzi Automation S.p.a.

Viale Lunigiana, 46 20125 – Milano (MI) -IT-

Summary

Fiscal Code	:	08759780151
Legal Form	:	Joint stock company with sole shareholder
start of Activities	:	08/04/1987
Equity	:	Over 2.582.254
Turnover Range	:	7.750.000/9.000.000
Number of Employees	:	from 51 to 70

Activity

Manufacture of other electrical equipment n.e.c.

Legal Data

Legal Form : Joint stock company with sole shareholder

Fiscal Code : 08759780151

Foreign Trade Reg. no. : 56008 of Milano since 19/12/1991

Chamber of Commerce no. : 1242640 of Milano since 15/04/1987

Firms' Register : MI146-269009 of Milano

V.A.T. Code : 08759780151

Tribunal Co. Register : 269009 of since 14/11/1988

Foundation date	: 09/03/1987
Establishment date	: 09/03/1987
Start of Activities	: 08/04/1987
Legal duration	: 31/12/2050
Nominal Capital	: 7.180.000
Subscribed Capital	: 7.180.000
Paid up Capital	: 7.180.000

Legal mail :

CARLOGAVAZZIAUTOMATION@LEGALMAIL.IT

Members

Bernardi

Michele

Born in Belluno

(BL)

on 10/08/1958

- Fiscal Code : BRNMHL58M10A757B

Residence:

Meassa

, 312

- 32100

Belluno

(BL)

- IT -

Position	Since	Shares Amount	% Ownership
Procurator	06/10/1992
Director	23/07/2015

No Prejudicial events are reported

No Protests registered

Premoli Trovati

Stefano

Born in Milano

(MI)

on 01/12/1971

- Fiscal Code : PRMSFN71T01F205H

Residence:

Pietro Tamburini

, 13

- 20123

Milano

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Director	23/07/2015
Board Chairman	23/07/2015

No Prejudicial events are reported

No Protests registered

Nuzzi

Vincenzo

Born in Bollate

(MI)

on 15/01/1971

- Fiscal Code : NZZVCN71A15A940K

Residence:

Alfonso Lamarmora

, 29

- 20015

Parabiago

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Procurator	24/06/1999

No Prejudicial events are reported

No Protests registered

Rossi

Vittorio

Born in Verbania

(NO)

on 08/05/1958

- Fiscal Code : RSSVTR58E08L746E

Residence:

Zanotti

, 37

- 28040

Borgo Ticino

(NO)

- IT -

Position	Since	Shares Amount	% Ownership
General Director	04/06/2009
Director	23/07/2015

No Prejudicial events are reported

No Protests registered

Frigerio

Massimo

Born in Monza

(MB)

on 04/09/1956

- Fiscal Code : FRGMSM56P04F704N

Residence:

Silvio Pellico

, 12

- 20035

Lissone

(MB)

- IT -

Position	Since	Shares Amount	% Ownership
General Director	22/12/2006
Attorney with special power	16/09/2014

No Prejudicial events are reported

No Protests registered

Carlo Gavazzi Participation A/s

Position	Since	Shares Amount	% Ownership
Sole partner

No Protests registered

Carlo Gavazzi Participation A/s

Position	Since	Shares Amount	% Ownership
Partner

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.

Premoli Trovati

Stefano

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Bel Italia S.p.a.	Milano (MI) - IT -	00751500158	Permanent Auditor	Active	Registered
Bel Italia S.p.a.	Milano (MI) - IT -	00751500158	Temporary Auditor	Withdrawn	Registered
Via Delle Perle S.p.a.	Carpi (MO) - IT -	01555040367	Temporary Auditor	Active	Registered
Avery Dennison Italia S.r.l.	Milano (MI) - IT -	00805690153	Temporary Auditor	Active	Registered
Panariagroup Industrie Ceramiche S.p.a.	Finale Emilia (MO) - IT -	01865640369	Permanent Auditor	Withdrawn	Registered
Carlo Gavazzi Logistics S.p.a.	Milano (MI) - IT -	04528910153	Director	Active	Registered
Eurofinleading Fiduciaria Spa	Milano (MI) - IT -	08526080158	Director	Active	Registered
Immobiliare Pierluigi S.p.a.	Milano (MI) - IT -	03146250158	Chairman of the Board of Aud.	Active	Registered
Reale Compagnia Italiana S.p.a.	Milano (MI) - IT -	03385260157	Director	Active	Registered
Wolford Italia S.r.l.	Milano (MI) - IT -	10609270151	Temporary Auditor	Active	Registered
Barguzin Italiana Srl	Milano (MI) - IT -	10336470157	Sole Director	Active	Registered
Adespan S.r.l.	Milano (MI) - IT -	02038521205	Permanent Auditor	Active	Registered
Global Selection Societa' Di Gestione Del Risparmio S.p.a. O In F Orma Abbreviat	Milano (MI) - IT -	13435660157	Director	Active	Registered
Virgin Active Italia - Societa' SportivaDilettantistica Lucrativ A Per Azioni O	Corsico (MI) - IT -	03641880962	Temporary Auditor	Active	Registered
Pomini Rubber E Plastics S.r.l. O In Forma Abbreviata Pomini Rep S.r.l.	Rescaldina (MI) - IT -	05699990965	Permanent Auditor	Active	Registered
Panem Italia S.p.a. In Liquidazione	Terni (TR) - IT -	04026130965	Permanent Auditor	Withdrawn	Bankrupt
Panem Italia S.p.a. In Liquidazione	Terni (TR) - IT -	04026130965	Temporary Auditor	Withdrawn	Bankrupt
Ceresio - Societa' Di Intermediazione Mobiliare Per Azioni O In Forma Abbreviata	Milano (MI) - IT -	04456340969	Director	Active	Registered
Stefano Premoli Trovati	Cantello (VA) - IT -	PRMSFN71T01F205H	Proprietor	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
Carlo Gavazzi Participation A/s				100,00

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
CARLO GAVAZZI FEME S.P.A.	Milano - IT -	06068000014	4.163.000.000 .Eur	100,00			Active
Carlo Gavazzi Logistics S.p.a.	Milano - IT -	04528910153		100,00			Active

Firm's location and structure

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

-

Legal and operative seat

since 21/12/1989

Lunigiana

, 46

- 20100

- Milano

(MI)

- IT -

Total Surface: 250 Sq.mt.

Legal mail

: CARLOGAVAZZIAUTOMATION@LEGALMAIL.IT

-

Branch

since 01/07/2000

Milano

, 13

- 20020

- Lainate

(MI)

- IT -

Trading Style: CARLO GAVAZZI

PHONE

: 02931761

-

Branch

(Factory)

since 01/01/2007

Como

, 2

- 20020

- Lainate

(MI)

- IT -

Employees

: 57

Fittings and Equipment for a value of 350.000

Eur

Stocks for a value of 720.000

Eur

Furniture and fittings for a value of 1.720.000

Eur

Vehicles for a value of 200.000

Eur

The firm operates abroad as importer / exporter..

To purchase foreign products the firm uses the following channels :

- direct orders to foreign companies

Export represents from 20% to 50% of the global turnover.

Products abroad are placed by :

- direct orders from foreign companies

Historical Information and/or Firm's Status

CEASINGS/INCORPORATIONS/MERGES:

The firm absorbed by merging of

Date

:

29/09/1988

Project of merging by taking over of

CARLO GAVAZZI FEME S.P.A.

GALLARATE

, 150

, 20100

, Milano

(MI)

- IT -

Fiscal Code: 06068000014

Date

Merging/splitting-up project:

21/07/2006

The firm absorbed by merging of

CARLO GAVAZZI FEME S.P.A.

GALLARATE

, 150

, 20100

, Milano

(MI)

- IT -

Fiscal Code: 06068000014

Date

:

20/12/2006

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.

National Real Estates Survey

The requested subject is not present c/o the CADASTRE OFFICES.

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

Subject is active since 1987

The economic-financial analysis has been made on the base of the b/s of the latests three years.

During the last years, it recorded positive net results (r.o.e. 4,35% in 2017) with a stable trend in the turnover.

The operating result in 2017 was positive (4,01%) and in line with the sector's average.

The amount of the operating result is equal to Eur. 479.678 showing a downwards trend equal to -38,93% if compared to the value of the financial year 2016.

The gross operating margin of the latest financial year is of Eur. 702.268 recording a -32,32% decrease.

Indebtedness is scanty since debts are lower than liquidity.

It's shareholders funds amount to Eur. 8.172.158 on stable levels.

Total indebtedness totalled Eur. 1.956.968, with no important change.

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

Payments are supported by good current assets.

Accounts receivable average term is 25,23 days. , a value lower than the sector's average.

Eur. 578.292 is the value of cash flow during the year 2017

In the last financial year labour cost was of Eur. 5.147.408, with a 59,51% incidence on total costs of production. , whereas 57,65% is the incidence on sales revenues.

Financial incomes cover financial charges.

Financial Data

Complete balance-sheet for the year

al 31/03/2017

(in Eur

x 1)

Item Type	Value
Sales	8.928.709
Profit (Loss) for the period	355.702

Complete balance-sheet for the year

al 31/03/2016

(in Eur

x 1)

Item Type	Value
Sales	9.592.613
Profit (Loss) for the period	576.617

Complete balance-sheet for the year

al 31/03/2015

(in Eur

x 1)

Item Type	Value
Sales	8.175.078
Profit (Loss) for the period	417.308

Complete balance-sheet for the year

al 31/03/2014

(in Eur

x 1)

Item Type	Value
Sales	9.308.353
Profit (Loss) for the period	852.985

Complete balance-sheet for the year

al 31/03/2013

(in Eur

x 1)

Item Type	Value
Sales	10.175.527
Profit (Loss) for the period	568.100

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 31/03/2017 - 12 Mesi - Currency: - Amounts x 1

- Balance Sheet as at 31/03/2016 - 12 Mesi - Currency: - Amounts x 1

- Balance Sheet as at 31/03/2015 - 12 Mesi - Currency: - Amounts x 1

Years

2017

2016

2015

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.
. . Industrial patent rights	23.492	56.810	77.086
. . Concessions,licenses,trademarks,etc.
. . Goodwill
. . Assets in formation and advance paymen.
. . Other intangible fixed assets	30.501	37.407	31.551
. Total Intangible Fixed Assets	53.993	94.217	108.637
. TANGIBLE FIXED ASSETS
. . Real estate
. . Plant and machinery	35.077	45.160	50.571
. . Industrial and commercial equipment	313.448	340.216	372.650
. . Other assets
. . Assets under construction and advances
. Total Tangible fixed assets	348.525	385.376	423.221
. FINANCIAL FIXED ASSETS
. . Equity investments
. . . Equity invest. in subsidiary companies
. . . Equity invest. in associated companies
. . . Equity invest. in holding companies
. . . Equity invest. in other companies
. . Financial receivables	215.000	215.000	545.000
. . . . Within 12 months			545.000
. . . . Beyond 12 months
. . . 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			545.000
. . . . Within 12 months			545.000
. . . . Beyond 12 months
. . Other securities
. . Own shares
. . . Total nominal value
. Total financial fixed assets	215.000	215.000	545.000
Total fixed assets	617.518	694.593	1.076.858
CURRENT ASSETS
. INVENTORIES
. . Raw materials and other consumables	167.952	259.924	205.703
. . Work in progress and semimanufactured	477.895	513.257	596.521
. . Work in progress on order
. . Finished goods	74.496	22.371	46.612
. . Advance payments
. Total Inventories	720.343	795.552	848.836
. CREDITS NOT HELD AS FIXED ASSETS
. . Within 12 months	5.991.485	5.923.145	6.473.318
. . Beyond 12 months	119.679	117.720	246.200
. . Trade receivables	625.659	794.578	637.897
. . . . Within 12 months	625.659	794.578	637.897
. . . . Beyond 12 months
. . Receivables due from subsid. comp.
. . . . Within 12 months
. . . . Beyond 12 months
. . Receivables due from assoc. comp.	4.965.163	4.863.338
. . . . Within 12 months	4.965.163	4.863.338
. . . . Beyond 12 months
. . Receivables due from holding comp.
. . . . Within 12 months
. . . . Beyond 12 months
. . Fiscal Receivables	314.925	159.620	272.048
. . . . Within 12 months	272.914	117.609	101.210
. . . . Beyond 12 months	42.011	42.011	170.838
. . Receivables for anticipated taxes	71.185	76.956	74.825
. . . . Within 12 months	71.185	76.956	74.825
. . . . Beyond 12 months
. . Receivables due from third parties	134.232	146.373	5.734.748
. . . . Within 12 months	56.564	70.664	5.659.386
. . . . Beyond 12 months	77.668	75.709	75.362
. Total Credits not held as fixed assets	6.111.164	6.040.865	6.719.518
. 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	4.354.025	4.235.018	2.813.460
. . Checks
. . Banknotes and coins	1.105	731	1.431
. Total Liquid funds	4.355.130	4.235.749	2.814.891
Total current assets	11.186.637	11.072.166	10.383.245
ADJUSTMENT ACCOUNTS
. Discount on loans			162.979
. Other adjustment accounts	163.912	155.987
Total adjustments accounts	163.912	155.987	162.979
TOTAL ASSETS	11.968.067	11.922.746	11.623.082
LIABILITIES
STOCKHOLDERS' EQUITY
. Capital stock	7.180.000	7.180.000	7.180.000
. Additional paid-in capital
. Revaluation reserves
. Legal reserve	595.561	566.730	545.865
. Reserve for Own shares
. Statute reserves
. Other reserves	40.895	67.509	30.066
. Accumulated Profits (Losses)
. Profit( loss) of the year	355.702	576.617	417.308
. Advances on dividends
. Partial loss of the year Coverage
Total Stockholders'Equity	8.172.158	8.390.856	8.173.239
RESERVES FOR RISKS AND CHARGES
. . Reserve for employee termination indem.
. . Taxation fund, also differed	71	168	78
. . Other funds
Total Reserves for Risks and Charges	71	168	78
Employee termination indemnities	1.838.870	1.741.615	1.693.663
ACCOUNTS PAYABLE
. . . . Within 12 months	1.956.968	1.790.107	1.752.394
. . . . Beyond 12 months
. . 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
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to other providers of finance
. . . . Within 12 months
. . . . Beyond 12 months
. . Advances from customers
. . . . Within 12 months
. . . . Beyond 12 months
. . Trade payables	743.546	600.284	744.422
. . . . Within 12 months	743.546	600.284	744.422
. . . . 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	35.854	34.263
. . . . Within 12 months	35.854	34.263
. . . . Beyond 12 months
. . Due to holding companies
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to the tax authorities	89.178	138.529	78.672
. . . . Within 12 months	89.178	138.529	78.672
. . . . Beyond 12 months
. . Due to social security and welfare inst.	123.983	113.184	117.275
. . . . Within 12 months	123.983	113.184	117.275
. . . . Beyond 12 months
. . Other payables	964.407	903.847	812.025
. . . . Within 12 months	964.407	903.847	812.025
. . . . Beyond 12 months
Total accounts payable	1.956.968	1.790.107	1.752.394
ADJUSTMENT ACCOUNTS
. Agio on loans
. Other adjustment accounts			3.708
Total adjustment accounts			3.708
TOTAL LIABILITIES	11.968.067	11.922.746	11.623.082

MEMORANDUM ACCOUNTS

Third party goods
Investment accounts
Risk accounts	447.947
Civil and fiscal norms relation

PROFIT AND LOSS ACCOUNTS

VALUE OF PRODUCTION
. Revenues from sales and services	8.928.709	9.592.613	8.175.078
. Changes in work in progress	16.763	-107.505	20.510
. Changes in semi-manufact. products
. Capitalization of internal work
. Other income and revenues	184.023	287.009	351.902
. . Contributions for operating expenses
. . Different income and revenues	184.023	287.009	351.902
Total value of production	9.129.495	9.772.117	8.547.490
PRODUCTION COSTS
. Raw material,other materials and consum.	702.849	1.201.783	733.782
. Services received	2.061.195	1.967.225	2.012.980
. Leases and rentals	365.543	456.233	459.105
. Payroll and related costs	5.147.408	5.063.919	4.518.629
. . Wages and salaries	3.758.959	3.708.859	3.268.097
. . Social security contributions	1.103.231	1.111.169	977.838
. . Employee termination indemnities	281.746	236.557	269.418
. . Pension and similar
. . Other costs	3.472	7.334	3.276
. Amortization and depreciation	222.590	252.172	342.299
. . Amortization of intangible fixed assets	55.773	62.374	130.422
. . Amortization of tangible fixed assets	166.817	189.798	211.877
. . Depreciation of tangible fixed assets
. . Writedown of current receiv.and of liquid
. Changes in raw materials	91.972	-54.221	7.571
. Provisions to risk reserves
. Other provisions
. Other operating costs	58.260	99.466	58.699
Total production costs	8.649.817	8.986.577	8.133.065
Diff. between value and cost of product.	479.678	785.540	414.425
FINANCIAL INCOME AND EXPENSE
. Income from equity investments
. . In subsidiary companies
. . In associated companies
. . In other companies
. Other financial income	91.287	120.665	158.593
. . 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	91.287	120.665	158.593
. . . - Subsidiary companies
. . . - Associated companies
. . . - Holding companies
. . . - Other companies	2.474	6.237	158.593
. Interest and other financial expense	-4.062	3.354	9.117
. . Towards subsidiary companies
. . Towards associated companies
. . Towards holding companies
. . Towards other companies
Total financial income and expense	87.225	124.019	167.710
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			200.909
. . Gains on disposals
. . Other extraordinary income			200.909
. Extraordinary expense			-19.633
. . Losses on disposals
. . Taxes relating to prior years			-379
. . Other extraordinary expense			-19.254
Total extraordinary income and expense			181.276
Results before income taxes	566.903	909.559	763.411
. Taxes on current income	211.201	332.942	346.103
. . current taxes	205.527	334.983	361.902
. . differed taxes(anticip.)			-15.799
. Net income for the period	355.702	576.617	417.308
. Adjustments in tax regulations pursuance
. Provisions in tax regulations pursuance
. Profit (loss) of the year	355.702	576.617	417.308

RATIOS	Value Type	as at 31/03/2017	as at 31/03/2016	as at 31/03/2015	Sector Average
COMPOSITION ON INVESTMENT
Rigidity Ratio	Units	0,05	0,06	0,09	0,19
Elasticity Ratio	Units	0,93	0,93	0,89	0,79
Availability of stock	Units	0,06	0,07	0,07	0,20
Total Liquidity Ratio	Units	0,87	0,86	0,82	0,52
Quick Ratio	Units	0,36	0,36	0,24	0,03
COMPOSITION ON SOURCE
Net Short-term indebtedness	Units	n.c.	n.c.	n.c.	3,31
Self Financing Ratio	Units	0,68	0,70	0,70	0,18
Capital protection Ratio	Units	0,08	0,08	0,07	0,66
Liabilities consolidation quotient	Units	0,94	0,97	0,97	0,18
Financing	Units	0,24	0,21	0,21	4,09
Permanent Indebtedness Ratio	Units	0,84	0,85	0,85	0,33
M/L term Debts Ratio	Units	0,15	0,15	0,15	0,11
Net Financial Indebtedness Ratio	Units	0,00	0,00	0,00	0,61
CORRELATION
Fixed assets ratio	Units	16,21	14,59	9,16	1,80
Current ratio	Units	5,72	6,19	5,93	1,23
Acid Test Ratio-Liquidity Ratio	Units	5,35	5,74	5,44	0,86
Structure's primary quotient	Units	13,23	12,08	7,59	1,12
Treasury's primary quotient	Units	2,23	2,37	1,61	0,07
Rate of indebtedness ( Leverage )	%	146,45	142,09	142,21	541,00
Current Capital ( net )	Value	9.229.669	9.282.059	8.630.851	380.064
RETURN
Return on Sales	%	6,48	8,64	9,29	3,59
Return on Equity - Net- ( R.O.E. )	%	4,35	6,87	5,11	4,82
Return on Equity - Gross - ( R.O.E. )	%	6,94	10,84	9,34	19,04
Return on Investment ( R.O.I. )	%	4,01	6,59	3,57	4,67
Return/ Sales	%	5,37	8,19	5,07	4,49
Extra Management revenues/charges incid.	%	74,15	73,40	100,70	25,43
Cash Flow	Value	578.292	828.789	759.607	134.539
Operating Profit	Value	479.678	785.540	414.425	158.212
Gross Operating Margin	Value	702.268	1.037.712	756.724	292.137
MANAGEMENT
Credits to clients average term	Days	25,23	29,82	28,09	103,46
Debts to suppliers average term	Days	89,66	63,01	83,59	128,84
Average stock waiting period	Days	29,04	29,86	37,38	68,68
Rate of capital employed return ( Turnover )	Units	0,75	0,80	0,70	1,11
Rate of stock return	Units	12,40	12,06	9,63	5,22
Labour cost incidence	%	57,65	52,79	55,27	19,05
Net financial revenues/ charges incidence	%	0,98	1,29	2,05	-1,26
Labour cost on purchasing expenses	%	59,51	56,35	55,56	19,40
Short-term financing charges	%	0,21	n.c.	n.c.	2,64
Capital on hand	%	134,04	124,29	142,18	90,11
Sales pro employee	Value	55.804	60.712	57.979	181.347
Labour cost pro employee	Value	32.171	32.050	32.047	33.314

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	:	3.839.216
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 1.330 significant companies.

The companies cash their credits on an average of 103 dd.

The average duration of suppliers debts is about 129 dd.

The sector's profitability is on an average of 3,59%.

The labour cost affects the turnover in the measure of 19,05%.

Goods are held in stock in a range of 69 dd.

The difference between the sales volume and the resources used to realize it is about 1,11.

The employees costs represent the 19,40% of the production costs.

Statistical Detrimental Data

Statistcally the trade activity shows periods of crisis.

The area is statistically considered lowly risky.

In the region 50.886 protested subjects are found; in the province they count to 24.765.

The insolvency index for the region is 0,55, , while for the province it is 0,66.

Total Bankrupt companies in the province : 22.523.

Total Bankrupt companies in the region : 39.612.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.81
UK Pound	1	INR 90.66
Euro	1	INR 79.94
Euro	1	INR 79.89

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

INFORMATION DETAILS

Analysis Done by :	VIV
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)

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.