MIRA INFORM REPORT

Report No. :	492819
Report Date :	23.02.2018

IDENTIFICATION DETAILS

Name :	PERONI POMPE S.P.A.
Registered Office :	Via Tacito, 4 - 3 20094 - Corsico (MI) -IT-
Country :	Italy
Financials (as on) :	31.12.2016
Date of Incorporation :	24.10.1920
Legal Form :	Joint stock company
Line of Business :	· Manufacture of fluid dynamics equipment · Manufacture of other taps and valves
No. of Employees :	From 111 to 130

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. 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

Peroni Pompe S.p.a.

Via Tacito, 4 - 3

20094 - Corsico (MI) -IT-

Summary

Fiscal Code	:	00745820159
Legal Form	:	Joint stock company
start of Activities	:	06/11/1989
Equity	:	Over 2.582.254
Turnover Range	:	50.000.000/75.000.000
Number of Employees	:	from 111 to 130

Activity

Manufacture of fluid dynamics equipment

Manufacture of other taps and valves

Legal Data

Legal Form : Joint stock company

Fiscal Code : 00745820159

Foreign Trade Reg. no. : MI098638 since 14/01/1992

Chamber of Commerce no. : 107301 of Latina

Chamber of Commerce no. : 75439 of Milano since 24/11/1920

Firms' Register : MI146-15840 of Milano since 19/02/1996

V.A.T. Code : 00745820159

Foundation date	: 24/10/1920
Establishment date	: 24/10/1920
Start of Activities	: 06/11/1989
Legal duration	: 31/12/2030
Nominal Capital	: 3.350.000
Subscribed Capital	: 3.350.000
Paid up Capital	: 3.350.000

Legal mail :

AMMINISTRAZIONE@PEC.PERONIPOMPE.IT

Members

Tonna

Paolo Leo

Born in Milano

(MI)

on 17/06/1961

- Fiscal Code : TNNPLL61H17F205V

Residence:

Delle Forze Armate

, 310

- 20147

Milano

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney General	24/07/2001

No Prejudicial events are reported

No Protests registered

Manara

Adriano

Born in Imola

(BO)

on 11/09/1939

- Fiscal Code : MNRDRN39P11E289R

Residence:

Modena Gustavo

, 2

- 20129

Milano

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Director	25/05/2015

Finalto S.p.a.

:

Valparaiso

, 1

- 20144

Milano

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Partner

Legal Mortgage - 24/02/2010. - 39.552 Euro. Event writing-off

 EQUITALIA ESATRI S. P. A.

No Protests registered

Rocco

Filippo

Born in Santi Cosma e Damiano

(LT)

on 25/08/1957

- Fiscal Code : RCCFPP57M25I339A

Residence:

Risorgimento

, 7

- 04021

Castelforte

(LT)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney General	12/05/1999

No Prejudicial events are reported

No Protests registered

Zecchel

Bruno

Born in Seraing

( )

on 10/09/1940

- Fiscal Code : ZCCBRN40P10Z103U

Residence:

Dei Tigli

, 20

- 20020

Arese

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Director	25/05/2015
Board Chairman	25/05/2015
Managing Director	25/05/2015

No Prejudicial events are reported

No Protests registered

Zecchel

Leonardo

Born in Milano

(MI)

on 02/05/1976

- Fiscal Code : ZCCLRD76E02F205I

Residence:

Albani Francesco

, 11

- 20149

Milano

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Director	25/05/2015
Managing Director	25/05/2015

No Prejudicial events are reported

No Protests registered

Zecchel

Alessandro

Born in Milano

(MI)

on 01/02/1975

- Fiscal Code : ZCCLSN75B01F205H

Residence:

Dei Tigli

, 20

- 20020

Arese

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Director	25/05/2015
Managing Director	25/05/2015

No Prejudicial events are reported

No Protests registered

Patrini

Marco

Born in Gallarate

(VA)

on 17/05/1974

- Fiscal Code : PTRMRC74E17D869T

Residence:

Goffredo Mameli

, 15/A

- 21013

Gallarate

(VA)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney General	01/12/2006

No Prejudicial events are reported

No Protests registered

Manara

Luciano

Born in Milano

(MI)

on 07/09/1975

- Fiscal Code : MNRLCN75P07F205D

Residence:

Carlo Goldoni

, 41

- 20129

Milano

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Director	25/05/2015

Zecchel

Riccardo Enrico

Born in Milano

(MI)

on 22/01/1985

- Fiscal Code : ZCCRCR85A22F205U

Residence:

Gramsci

, 8

- 20154

Milano

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Director	03/01/2018

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.

Zecchel

Bruno

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Ascon S.p.a.	Bollate (MI) - IT -	00800830150	Director	Withdrawn	Ceased
Ascon S.p.a.	Bollate (MI) - IT -	00800830150	Procurator	Withdrawn	Ceased
Ascon -s.p.a.	Bollate (MI) - IT -	08841450151	Board Chairman	Withdrawn	Ceased
Fondazione Happy Child	Arese (MI) - IT -	93532310153	Board Chairman	Active	Registered
Zetafin Societa' A Responsabilita' Limitata Abbreviata: Zetafin Srl	Milano (MI) - IT -	06241560967	Sole Director	Withdrawn	Registered
Ascon Tecnologic S.r.l.	Vigevano (PV) - IT -	02374940183	Director	Active	Registered
Ascon Tecnologic S.r.l.	Vigevano (PV) - IT -	02374940183	Board Chairman	Active	Registered
Heila Cranes S.p.a.	Poviglio (RE) - IT -	02475650350	Director	Withdrawn	Registered
Heila Cranes S.p.a.	Poviglio (RE) - IT -	02475650350	Board Chairman	Withdrawn	Registered

Zecchel

Leonardo

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Elsi S.r.l.	Lainate (MI) - IT -	05079630157	Sole Director	Active	Registered
Ascon -s.p.a.	Bollate (MI) - IT -	08841450151	Managing Director	Withdrawn	Ceased
Ascon -s.p.a.	Bollate (MI) - IT -	08841450151	Director	Withdrawn	Ceased
Finalto S.p.a.	Milano (MI) - IT -	08850140156	Managing Director	Active	Registered
Ascon Tecnologic S.r.l.	Vigevano (PV) - IT -	02374940183	Director	Active	Registered
Ascon Tecnologic S.r.l.	Vigevano (PV) - IT -	02374940183	Managing Director	Active	Registered

Zecchel

Alessandro

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Ascon -s.p.a.	Bollate (MI) - IT -	08841450151	Director	Withdrawn	Ceased
Heila Cranes S.p.a.	Poviglio (RE) - IT -	02475650350	Managing Director	Withdrawn	Registered
Heila Cranes S.p.a.	Poviglio (RE) - IT -	02475650350	Director	Active	Registered
Heila Cranes S.p.a.	Poviglio (RE) - IT -	02475650350	Managing Director	Active	Registered
Heila Cranes S.p.a.	Poviglio (RE) - IT -	02475650350	Board Chairman	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
Manara Adriano	Milano - IT -	MNRDRN39P11E289R	502.500 .Eur	15,00
Finalto S.p.a.	Milano - IT -	08850140156	2.345.000 .Eur	70,00
Manara Luciano	Milano - IT -	MNRLCN75P07F205D	502.500 .Eur	15,00

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
Sabi Pompe E Impianti S.r.l.	Milano - IT -	12025700159	21.600 .Eur	51,42			Active

Firm's location and structure

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

-	Legal and operative seat

Tacito

, 4 - 3

- 20094

- Corsico

(MI)

- IT -

PHONE

: 02489401

FAX	: 0248910287

Legal mail

: AMMINISTRAZIONE@PEC.PERONIPOMPE.IT

-

Branch

(Factory)

since 02/10/1995

Mariano Mandolesi

, 18

- 04024

- Gaeta

(LT)

- IT -

Employees

: 125

Fittings and Equipment for a value of 1.060.000

Eur

Stocks for a value of 25.130.000

Eur

Furniture and fittings for a value of 110.000

Eur

Vehicles for a value of 41.000

Eur

Work in progress for a value of 22.080.000

Eur

The firm operates abroad as importer / exporter..

To purchase foreign products the firm uses the following channels :

- distributors

- direct orders to foreign companies

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

Products abroad are placed by :

- its own sales net-work

- its own agents

- direct orders from foreign companies

Export is mainly towards:

- Italy

- Gabon

-

Historical Information and/or Firm's Status

CEASINGS/INCORPORATIONS/MERGES:

The firm absorved

Megafin Srl

, MILANO

- IT -

Date

:

02/10/1995

The firm absorved

F. Peroni Sud S.p.A.

Forte Emilio Savio

, 18

, 04024

, Gaeta

(LT)

- IT -

Fiscal Code: 01069560595

Date

:

02/10/1995

The firm absorbed by merging of

Megafin Srl

, MILANO

- IT -

Date

:

02/10/1995

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

Town	Cadastre	No. Immovables	Up to Date
GAETA (LT)	Buildings	4	14/02/2018
GAETA (LT)	Land	4	14/02/2018

Buildings Details

Cadastre	Title	Location	Sheet No.	Particle No.	Sub No.	Categorie	Classe	Consistence	Cadastrial Rent	Part No.
B	Proprieta'	GAETA (LT) VIA FORTE EMILIO, 18 Piano T	19	1111		cat. F/1
B	Proprieta'	GAETA (LT) VIA FORTE EMILIO, 18 Piano T	19	938	3	zona2 cat. D/7			Euro: 57.138,00
B	Oneri	GAETA (LT) VIA FORTE EMILIO, SNC Piano T-1 - 2	19	943	1	zona2 cat. A/7	3	11 vani	Euro:1.136,21
B	Oneri	GAETA (LT) VIA FORTE EMILIO, SNC Piano S1	19	943	2	zona2 cat. C/2	3	86 mq	Euro:88,83

Land Details

Cadastre	Title	Location	Sheet No.	Particle No.	Sub No.	Category	Class	Consistence	Cadastrial Rent	Part No.
L	Proprieta'	GAETA (LT)	19	122		FABB RURALE		42 ca	R.D.Euro: R.A. Euro:	7672
L	Proprieta'	GAETA (LT)	19	838		FU D ACCERT		12 ca	R.D.Euro: R.A. Euro:	14881
L	Proprieta'	GAETA (LT)	19	852		FU D ACCERT		1 are 4 ca	R.D.Euro: R.A. Euro:	14881
L	Proprieta'	GAETA (LT)	19	868		ORTO IRRIG	21	10 ca	R.D.Euro:0,45 R.A. Euro: 0,17	7237

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 1989.

The analysis is based on the latest 3 balance sheets.

Under an economic point of view, profits were registered during the last years with a r.o.e. of 18,09% in 2016 but without a significant increase in the turnover.

The operating result was positive in the last financial year (17,59%) and in line with the sector's average.

The amount of the operating result for the year 2016 is of Eur. 12.239.550 , with no sizeable change as opposed to the year before.

A gross operating margine for a value of Eur. 13.067.788 was reached. , stable if compared to the year before.

Very good financial situation: shareholder's equity covers short-terms debts with an indebtedness level equal to 0,09 and with an upward trend compared to the previous year.

It's shareholders funds amount to Eur. 48.325.903 , unchanged as opposed to the preceding year.

Total debts recorded amounted to Eur. 19.156.223 (Eur. 416.666 of which were m/l term debts) , with a fall of -28,87%.

Bank and suppliers credit recourse is limited, 61,23 gg. is payment average period which is also lower than the sector average.

Payments are supported by good current assets.

Credits are collected in 61,7 days on the average. , lower than the sector's average.

Eur. 9.570.443 is the value of cash flow during the year 2016

Labour cost expenses amount to Eur. 7.997.199 , representing 18,97% on the total of production costs. , with a 14,6% incidence on turnover.

Financial incomes cover financial charges.

Financial Data

Complete balance-sheet for the year

al 31/12/2016

(in Eur

x 1)

Item Type	Value
Sales	54.793.862
Profit (Loss) for the period	8.742.205

Complete balance-sheet for the year

al 31/12/2015

(in Eur

x 1)

Item Type	Value
Sales	55.984.780
Profit (Loss) for the period	9.254.799

Complete balance-sheet for the year

al 31/12/2014

(in Eur

x 1)

Item Type	Value
Sales	68.001.016
Profit (Loss) for the period	12.222.057

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.
. . Industrial patent rights
. . Concessions,licenses,trademarks,etc.	10.882	26.233	46.684
. . Goodwill
. . Assets in formation and advance paymen.
. . Other intangible fixed assets	18.617	50.616	82.616
. Total Intangible Fixed Assets	29.499	76.849	129.300
. TANGIBLE FIXED ASSETS
. . Real estate	4.587.197	4.760.316	3.371.484
. . Plant and machinery	1.015.443	1.319.483	1.609.195
. . Industrial and commercial equipment	45.506	60.227	37.335
. . Other assets	170.799	212.272	247.722
. . Assets under construction and advances			1.441.244
. Total Tangible fixed assets	5.818.945	6.352.298	6.706.980
. FINANCIAL FIXED ASSETS
. . Equity investments	1.048.993	872.059	872.059
. . . Equity invest. in subsidiary companies	1.048.993	872.059	872.059
. . . Equity invest. in associated companies
. . . Equity invest. in holding companies
. . . Equity invest. in other companies
. . Financial receivables	2.218	54.155	4.155
. . . . Within 12 months		50.000
. . . . Beyond 12 months	2.218	4.155	4.155
. . . Receivab due from subsidiaries		50.000
. . . . Within 12 months		50.000
. . . . 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	2.218	4.155	4.155
. . . . Within 12 months
. . . . Beyond 12 months	2.218	4.155	4.155
. . Other securities
. . Own shares
. . . Total nominal value
. Total financial fixed assets	1.051.211	926.214	876.214
Total fixed assets	6.899.655	7.355.361	7.712.494
CURRENT ASSETS
. INVENTORIES
. . Raw materials and other consumables	1.386.565	1.890.868	1.698.791
. . Work in progress and semimanufactured	1.312.247	1.537.775	1.690.224
. . Work in progress on order	22.076.169	22.916.209	25.275.654
. . Finished goods
. . Advance payments	358.110	815.665	723.322
. Total Inventories	25.133.091	27.160.517	29.387.991
. CREDITS NOT HELD AS FIXED ASSETS
. . Within 12 months	13.197.326	22.618.145	26.795.971
. . Beyond 12 months	169.388	174.801	228.769
. . Trade receivables	9.391.325	13.052.161	13.434.483
. . . . Within 12 months	9.391.325	13.052.161	13.434.483
. . . . Beyond 12 months
. . Receivables due from subsid. comp.	2.042.687	1.402.978	868.913
. . . . Within 12 months	2.042.687	1.402.978	868.913
. . . . Beyond 12 months
. . Receivables due from assoc. comp.
. . . . Within 12 months
. . . . Beyond 12 months
. . Receivables due from holding comp.	625.041	6.262.139	10.047.369
. . . . Within 12 months	546.263	6.183.361	9.968.591
. . . . Beyond 12 months	78.778	78.778	78.778
. . Fiscal Receivables	722.080	1.158.764	1.744.785
. . . . Within 12 months	631.470	1.062.741	1.594.794
. . . . Beyond 12 months	90.610	96.023	149.991
. . Receivables for anticipated taxes	545.490	738.044	755.519
. . . . Within 12 months	545.490	738.044	755.519
. . . . Beyond 12 months
. . Receivables due from third parties	40.091	178.860	173.671
. . . . Within 12 months	40.091	178.860	173.671
. . . . Beyond 12 months
. Total Credits not held as fixed assets	13.366.714	22.792.946	27.024.740
. 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	9.479.111
. Total Financial Assets	9.479.111
. LIQUID FUNDS
. . Bank and post office deposits	14.402.618	14.364.458	6.255.516
. . Checks
. . Banknotes and coins	6.141	3.282	2.881
. Total Liquid funds	14.408.759	14.367.740	6.258.397
Total current assets	62.387.675	64.321.203	62.671.128
ADJUSTMENT ACCOUNTS
. Discount on loans		394.370	446.991
. Other adjustment accounts	297.406
Total adjustments accounts	297.406	394.370	446.991
TOTAL ASSETS	69.584.736	72.070.934	70.830.613
LIABILITIES
STOCKHOLDERS' EQUITY
. Capital stock	3.350.000	3.350.000	3.350.000
. Additional paid-in capital
. Revaluation reserves	370.988	370.988	370.988
. Legal reserve	670.000	670.000	670.000
. Reserve for Own shares
. Statute reserves
. Other reserves		95.479	67.755
. Accumulated Profits (Losses)	35.192.710	28.555.935	21.386.603
. Profit( loss) of the year	8.742.205	9.254.799	12.222.057
. Advances on dividends
. Partial loss of the year Coverage
Total Stockholders'Equity	48.325.903	42.297.201	38.067.403
RESERVES FOR RISKS AND CHARGES
. . Reserve for employee termination indem.
. . Taxation fund, also differed	206.371	227.770	238.064
. . Other funds	951.779	1.677.285	1.379.780
Total Reserves for Risks and Charges	1.158.150	1.905.055	1.617.844
Employee termination indemnities	934.406	922.962	1.006.083
ACCOUNTS PAYABLE
. . . . Within 12 months	18.739.557	25.962.821	27.068.154
. . . . Beyond 12 months	416.666	972.222	3.027.778
. . 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	972.957	1.527.890	3.958.566
. . . . Within 12 months	556.291	555.668	930.788
. . . . Beyond 12 months	416.666	972.222	3.027.778
. . Due to other providers of finance	67.869	45.163	54.022
. . . . Within 12 months	67.869	45.163	54.022
. . . . Beyond 12 months
. . Advances from customers	11.185.436	13.987.519	11.797.115
. . . . Within 12 months	11.185.436	13.987.519	11.797.115
. . . . Beyond 12 months
. . Trade payables	5.250.002	9.853.311	9.781.072
. . . . Within 12 months	5.250.002	9.853.311	9.781.072
. . . . Beyond 12 months
. . Securities issued
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to subsidiary companies	196.251	24.229	124.786
. . . . Within 12 months	196.251	24.229	124.786
. . . . Beyond 12 months
. . Due to associated companies
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to holding companies	30.000	83.766	2.657.332
. . . . Within 12 months	30.000	83.766	2.657.332
. . . . Beyond 12 months
. . Due to the tax authorities	218.633	311.152	693.238
. . . . Within 12 months	218.633	311.152	693.238
. . . . Beyond 12 months
. . Due to social security and welfare inst.	417.384	375.282	351.200
. . . . Within 12 months	417.384	375.282	351.200
. . . . Beyond 12 months
. . Other payables	817.691	726.731	678.601
. . . . Within 12 months	817.691	726.731	678.601
. . . . Beyond 12 months
Total accounts payable	19.156.223	26.935.043	30.095.932
ADJUSTMENT ACCOUNTS
. Agio on loans
. Other adjustment accounts	10.054	10.673	43.351
Total adjustment accounts	10.054	10.673	43.351
TOTAL LIABILITIES	69.584.736	72.070.934	70.830.613

MEMORANDUM ACCOUNTS

Third party goods
Investment accounts	20.099.811	20.643.476
Risk accounts	12.860.082
Civil and fiscal norms relation

PROFIT AND LOSS ACCOUNTS

VALUE OF PRODUCTION
. Revenues from sales and services	54.841.905	55.984.780	68.001.016
. Changes in work in progress	-330.705	-152.750	84.444
. Changes in semi-manufact. products	-840.040	-2.359.445	-1.339.495
. Capitalization of internal work
. Other income and revenues	732.853	747.813	339.970
. . Contributions for operating expenses	226.340	336.654	205.498
. . Different income and revenues	506.513	411.159	134.472
Total value of production	54.404.013	54.220.398	67.085.935
PRODUCTION COSTS
. Raw material,other materials and consum.	19.113.203	19.464.580	24.937.372
. Services received	12.529.107	11.664.125	13.801.808
. Leases and rentals	557.496	447.679	375.851
. Payroll and related costs	7.997.199	7.695.579	7.725.281
. . Wages and salaries	6.184.336	5.950.119	6.056.390
. . Social security contributions	1.372.239	1.320.783	1.240.477
. . Employee termination indemnities	16.555	14.084	15.036
. . Pension and similar	319.240	306.074	298.435
. . Other costs	104.829	104.519	114.943
. Amortization and depreciation	828.238	807.776	1.082.573
. . Amortization of intangible fixed assets	59.351	61.094	62.765
. . Amortization of tangible fixed assets	684.548	681.682	631.821
. . Depreciation of tangible fixed assets
. . Writedown of current receiv.and of liquid	84.339	65.000	387.987
. Changes in raw materials	399.125	-192.378	-83.309
. Provisions to risk reserves		588.992	600.000
. Other provisions
. Other operating costs	740.095	394.394	576.337
Total production costs	42.164.463	40.870.747	49.015.913
Diff. between value and cost of product.	12.239.550	13.349.651	18.070.022
FINANCIAL INCOME AND EXPENSE
. Income from equity investments	111.111	120.556	28.286
. . In subsidiary companies	111.111	120.556	28.286
. . In associated companies
. . In other companies
. Other financial income	7.106	11.361	20.706
. . 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	7.106	11.361	20.706
. . . - Subsidiary companies
. . . - Associated companies
. . . - Holding companies
. . . - Other companies	7.106	11.361	20.706
. Interest and other financial expense	-95.182	-348.424	127.365
. . Towards subsidiary companies
. . Towards associated companies
. . Towards holding companies
. . Towards other companies
Total financial income and expense	23.035	-216.507	176.357
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		132.261
. . Gains on disposals
. . Other extraordinary income		132.261
. Extraordinary expense		-65.616	-13.035
. . Losses on disposals
. . Taxes relating to prior years
. . Other extraordinary expense		-65.616	-13.035
Total extraordinary income and expense		66.645	-13.035
Results before income taxes	12.262.585	13.199.789	18.233.344
. Taxes on current income	3.520.380	3.944.990	6.011.287
. . current taxes	3.378.913	3.937.808	6.227.843
. . differed taxes(anticip.)		7.182	-216.556
. Net income for the period	8.742.205	9.254.799	12.222.057
. Adjustments in tax regulations pursuance
. Provisions in tax regulations pursuance
. Profit (loss) of the year	8.742.205	9.254.799	12.222.057

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	0,10	0,10	0,11	0,26
Elasticity Ratio	Units	0,90	0,89	0,88	0,73
Availability of stock	Units	0,36	0,38	0,41	0,23
Total Liquidity Ratio	Units	0,54	0,52	0,47	0,44
Quick Ratio	Units	0,34	0,20	0,09	0,02
COMPOSITION ON SOURCE
Net Short-term indebtedness	Units	0,09	0,27	0,55	1,74
Self Financing Ratio	Units	0,69	0,59	0,54	0,29
Capital protection Ratio	Units	0,75	0,70	0,59	0,64
Liabilities consolidation quotient	Units	0,07	0,07	0,15	0,22
Financing	Units	0,40	0,64	0,79	2,30
Permanent Indebtedness Ratio	Units	0,71	0,61	0,59	0,46
M/L term Debts Ratio	Units	0,02	0,03	0,06	0,11
Net Financial Indebtedness Ratio	Units	0,00	0,00	0,00	0,49
CORRELATION
Fixed assets ratio	Units	7,20	6,01	5,46	1,63
Current ratio	Units	3,33	2,48	2,32	1,32
Acid Test Ratio-Liquidity Ratio	Units	1,99	1,43	1,23	0,86
Structure's primary quotient	Units	7,00	5,75	4,94	1,05
Treasury's primary quotient	Units	1,27	0,55	0,23	0,04
Rate of indebtedness ( Leverage )	%	143,99	170,39	186,07	349,01
Current Capital ( net )	Value	43.648.118	38.358.382	35.602.974	753.266
RETURN
Return on Sales	%	17,47	17,97	19,57	5,13
Return on Equity - Net- ( R.O.E. )	%	18,09	21,88	32,11	7,27
Return on Equity - Gross - ( R.O.E. )	%	25,37	31,21	47,90	15,95
Return on Investment ( R.O.I. )	%	17,59	18,52	25,51	5,36
Return/ Sales	%	22,34	23,85	26,57	5,57
Extra Management revenues/charges incid.	%	71,43	69,33	67,64	42,11
Cash Flow	Value	9.570.443	10.062.575	13.304.630	344.143
Operating Profit	Value	12.239.550	13.349.651	18.070.022	359.008
Gross Operating Margin	Value	13.067.788	14.746.419	19.752.595	705.726
MANAGEMENT
Credits to clients average term	Days	61,70	83,93	71,12	101,37
Debts to suppliers average term	Days	61,23	113,57	115,63	115,52
Average stock waiting period	Days	165,13	174,65	155,58	80,62
Rate of capital employed return ( Turnover )	Units	0,79	0,78	0,96	1,07
Rate of stock return	Units	2,18	2,06	2,31	4,40
Labour cost incidence	%	14,60	13,75	11,36	16,91
Net financial revenues/ charges incidence	%	0,04	-0,39	0,26	-1,19
Labour cost on purchasing expenses	%	18,97	18,83	15,76	17,25
Short-term financing charges	%	0,50	1,29	n.c.	2,71
Capital on hand	%	126,99	128,73	104,16	93,00
Sales pro employee	Value	220.055	233.269	282.161	223.920
Labour cost pro employee	Value	32.117	32.064	32.055	35.625

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 918 significant companies.

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

The average duration of suppliers debts is about 116 dd.

The sector's profitability is on an average of 5,13%.

The labour cost affects the turnover in the measure of 16,91%.

Goods are held in stock in a range of 81 dd.

The difference between the sales volume and the resources used to realize it is about 1,07.

The employees costs represent the 17,25% 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 65.05
UK Pound	1	INR 90.41
Euro	1	INR 79.83
Euro	1	INR 79.76

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

INFORMATION DETAILS

Analysis Done by :	NIS
Report Prepared by :	TRU

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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