MIRA INFORM REPORT

Report No. :	517056
Report Date :	25.06.2018

IDENTIFICATION DETAILS

Name :	LOMBARDI CONVERTING MACHINERY S.R.L.
Registered Office :	Via Del Mella 61/63, 25131 Brescia
Country :	Italy
Financials (as on) :	31.12.2016
Date of Incorporation :	29.06.1988
Com. Reg. No.:	BS0312086
Legal Form :	Limited liability company - SRL
Line of Business :	Manufacture of other special-purpose machinery n.e.c.
No. of Employees :	28

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 :	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

Country Name	Previous Rating (31.12.2017)	Current Rating (01.04.2018)
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 comprises 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

Summary

Company name	LOMBARDI CONVERTING MACHINERY S.R.L.
Operative address	Via Del Mella 61/63, 25131 Brescia, Italy
Risk	Average risk
Status	Active

Legal form	Limited liability company - SRL
Registration number	Trade register number: BS0312086
VAT-number	IT03021170174
Year	2016	Mutation	2015	Mutation	2014
Fixed assets	1.580.952	321,22	375.328	55,58	241.239
Total receivables	2.123.149	-1,27	2.150.511	743,95	254.814
Total equity	150.141	26,87	118.343	24,59	94.987
Short term liabilities	4.323.273	9,25	3.957.074	105,20	1.928.424
Net result	31.798	36,14	23.356	414,90	4.536
Working capital	759.823	11,91	678.934	-23,10	882.928
Quick ratio	0,67	-6,94	0,72	300,00	0,18

Contact information

Company name	Lombardi Converting Machinery S.R.L.
Operative address	Via Del Mella 61/63 25131 Brescia Italy
Correspondence address	Via Del Mella 61/63 25131 Brescia Italy

Telephone number	+39 0303580531
Website	www.lombardi.it

Registration

Registration number	Trade register number: BS0312086
VAT-number	IT03021170174
Status	Active
Establishment date	1988-06-29

Legal form	Limited liability company - SRL
Subscribed share capital	EUR 98.800

Activities

NACE	2899: Manufacture of other special-purpose machinery n.e.c.

Relations

Shareholders

ULTIMATE GLOBAL SHAREHOLDER Name: MR CLAUDIO LOMBARDI Address: VIA FANTASINA 4/C City: CELLATICA Country: IT Type: One or more named individuals or families Share direct: 80.00% SHAREHOLDERS Name: MR CLAUDIO LOMBARDI Address: VIA FANTASINA 4/C City: CELLATICA Country: IT Type: One or more named individuals or families Share direct: 80.00% Name: MRS MARGHERITA RENZI Address: VIA FANTASINA 4/C City: CELLATICA Country: IT Type: One or more named individuals or families Share direct: 20.00%

Management

Management

Fullname: Mr Claudio Lombardi Type: Individual Gender: Male date of birth: 1945/05/13 Age: 73 Country: Italy Number of involvements: 1 Function: Chairman of the Board of Directors Level of responsibility: President / Chairman Appointment date: 2015/03/02 Fullname: Mr Claudio Lombardi Type: Individual Gender: Male date of birth: 1945/05/13 Age: 73 Country: Italy Number of involvements: 1 Function: Managing Director Level of responsibility: Unspecified executive Appointment date: 2015/03/02 Fullname: Mr Claudio Lombardi Type: Individual Gender: Male date of birth: 1945/05/13 Age: 73 Country: Italy Number of involvements: 1 Function: Adviser Level of responsibility: Senior Management employee Appointment date: 2015/03/02 Fullname: Mr Lorenzo Lombardi Type: Individual Gender: Male date of birth: 1975/04/23 Age: 43 Country: Italy Number of involvements: 3 Function: Managing Director Level of responsibility: Unspecified executive Appointment date: 2015/03/02 Fullname: Mr Lorenzo Lombardi Type: Individual Gender: Male date of birth: 1975/04/23 Age: 43 Country: Italy Number of involvements: 3 Function: Adviser Level of responsibility: Senior Management employee Appointment date: 2015/03/02 Fullname: Mr Massimo Lombardi Type: Individual Gender: Male date of birth: 1981/06/04 Age: 37 Country: Italy Number of involvements: 1 Function: Managing Director Level of responsibility: Unspecified executive Appointment date: 2015/03/02 Fullname: Mr Massimo Lombardi Type: Individual Gender: Male date of birth: 1981/06/04 Age: 37 Country: Italy Number of involvements: 1 Function: Adviser Level of responsibility: Senior Management employee Appointment date: 2015/03/02 Fullname: Mr Nicola Lombardi Type: Individual Gender: Male date of birth: 1987/02/27 Age: 31 Country: Italy Number of involvements: 1 Function: Managing Director Level of responsibility: Unspecified executive Appointment date: 2015/03/02 Fullname: Mr Nicola Lombardi Type: Individual Gender: Male date of birth: 1987/02/27 Age: 31 Country: Italy Number of involvements: 1 Function: Adviser Level of responsibility: Senior Management employee Appointment date: 2015/03/02

Employees

Year	2016	2015	2014	2013	2012
Annual	28	26	20	14	14

Financial analysis

Trend	Fluctuating
Profitability	Limited
Solvability	Limited
Liquidity	Limited
Show amount in	Euro

Key figures

Year	2016	2015	2014	2013	2012
Quick ratio	0,67	0,72	0,18	0,31	0,57
Current ratio	1,18	1,17	1,46	1,24	1,09
Working capital/ balance total	0,11	0,14	0,29	0,19	0,08
Equity / balance total	0,02	0,02	0,03	0,03	0,03
Equity / Fixed assets	0,09	0,32	0,39	0,89	1,11
Working capital	759.823	678.934	882.928	504.031	209.908
Equity	150.141	118.343	94.987	90.451	84.357
Mutation equity	26,87	24,59	5,01	7,22
Mutation short term liabilities	9,25	105,20	-7,39	-9,12
Return on total assets (ROA)	1,43	1,64	14,52	1,50	-2,17
Return on equity (ROE)	63,27	69,46	466,68	44,68	-66,21
Gross profit margin	1,11	1,21	7,66	1,24	-0,93
Net profit margin	0,25	0,24	0,07	0,13	-1,67
Average collection ratio	2,98	2,46	3,40	2,19	1,47
Average payment ratio	6,07	4,52	25,74	8,53	3,11
Equity turnover ratio	85,78	82,11	69,06	50,44	39,80
Total assets turnover ratio	1,93	1,94	2,15	1,70	1,30
Fixed assets turnover ratio	8,15	25,89	27,19	44,80	44,28
Inventory conversion ratio	5,95	5,50	2,67	2,36	2,83
Turnover	12.879.455	9.717.041	6.560.152	4.562.321	3.357.763
Operating result	142.788	117.135	502.462	56.720	-31.386
Net result after taxes	31.798	23.356	4.536	6.095	-56.197
Cashflow	169.588	108.785	40.791	30.896	-39.888
Gross profit	1.880.555	1.594.926	1.256.855	1.091.874	893.433
EBITDA	280.578	202.564	538.717	81.521	-15.077
Summary	The 2016 financial result structure is a postive working captial of 759.823 euro, which is in agreement with 11 % of the total assets of the company. The working capital has increase with 11.91 % compared to previous year. The ratio with respect to the total assets of the company has however, declined. The improvement between 2015 and 2016 has mainly been caused by a change of the current assets. The current ratio of the company in 2016 was 1.18. When the current ratio is below 1.5, the company may have problems meeting its short-term obligations. The quick ratio in 2016 of the company was 0.67. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities. The 2015 financial result structure is a postive working captial of 678.934 euro, which is in agreement with 14 % of the total assets of the company. The working capital has diminished with -23.1 % compared to previous year. The ratio, with respect to the total assets of the company has however, declined. The deterioration between 2014 and 2015 has mainly been caused by a change of the current liabilities. The current ratio of the company in 2015 was 1.17. When the current ratio is below 1.5, the company may have problems meeting its short-term obligations. The quick ratio in 2015 of the company was 0.72. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities.

Financial statement

Last annual account	2016
Remark annual account	The company is obliged to file its financial statements.
Type of annual account	Corporate
Annual account	Lombardi Converting Machinery S.R.L. Via Del Mella 61/63 25131 Brescia Italy

Balance

Year	2016	2015	2014	2013	2012
End date	2016-12-31	2015-12-31	2014-12-31	2013-12-31	2012-12-31
Type of annual account	Corporate	Corporate	Corporate	Corporate	Corporate
Intangible fixed assets	173.749	158.993	55.161	35.183
Tangible fixed assets	1.405.317	215.460	185.252	65.856	74.497
Other fixed assets	1.886	875	826	807	1.331
Fixed assets	1.580.952	375.328	241.239	101.846	75.828
Total stock	2.165.129	1.768.000	2.459.102	1.936.569	1.185.000
Total receivables	2.123.149	2.150.511	254.814	534.734	1.078.420
Liquid funds	603.840	454.514	706	663	85.103
Other current assets	190.978	262.983	96.730	114.418	152.736
Current assets	5.083.096	4.636.008	2.811.352	2.586.384	2.501.259
Total assets	6.664.048	5.011.336	3.052.591	2.688.230	2.577.087
Total equity	150.141	118.343	94.987	90.451	84.357
Long term liabilities	2.190.634	935.919	1.029.180	515.426	201.379
Accounts payable	2.534.733	2.663.418	983.574	643.660	700.279
Liabilities towards credit institutes	886.303	425.200	485.938	859.125	607.275
Other short term liabilities	902.237	868.456	458.912	579.568	983.797
Short term liabilities	4.323.273	3.957.074	1.928.424	2.082.353	2.291.351
Total liabilities	6.664.048	5.011.336	3.052.591	2.688.230	2.577.087
Summary	The total assets of the company increased with 32.98 % between 2015 and 2016. The total asset increase is retrievable in the fixed asset growth of 321.22 %. In 2016 the assets of the company were 23.72 % composed of fixed assets and 76.28 % by current assets. The assets are being financed by an equity of 2.25 %, and total debt of 97.75 %. The total assets of the company increased with 64.17 % between 2014 and 2015. The fixed asset growth of 55.58 % is lower than the total asset growth. In 2015 the assets of the company were 7.49 % composed of fixed assets and 92.51 % by current assets. The assets are being financed by an equity of 2.36 %, and total debt of 97.64 %.

Profit and loss

Year	2016	2015	2014	2013	2012
Revenues	11.043.181	10.071.719	5.940.480	4.218.325	3.018.702
Net turnover	12.879.455	9.717.041	6.560.152	4.562.321	3.357.763
Wages and salaries	1.599.153	1.414.523	1.063.449	1.012.272	896.670
Amorization and depreciation	137.790	85.429	36.255	24.801	16.309
Production costs	9.471.626	6.986.396	4.008.007	2.350.368	1.561.855
Operating result	142.788	117.135	502.462	56.720	-31.386
Financial income	513	597	231	817	11.841
Financial expenses	48.313	35.531	59.403	17.119	36.310
Financial result	-47.800	-34.934	-59.172	-16.302	-24.469
Result on ordinary operations before taxes	94.988	82.201	443.290	40.418	-55.855
Taxation on the result of ordinary activities	63.190	42.011	94.147	32.631	341
Result of ordinary activities after taxes	31.798	40.190	349.143	7.787	-56.196
Extraordinary income		12.000	6.204
Extraordinary expense		28.834	350.811	1.692	1
Extraordinary result before taxation		-16.834	-344.607	-1.692	-1
Net result	31.798	23.356	4.536	6.095	-56.197
Summary	The turnover of the company grew with 32.55 % between 2015 and 2016. The operating result of the company grew with 21.9 % between 2015 and 2016. This evolution implies an increase of the company's economic profitability. The result of these changes is a reduction of the company's Economic Profitability of -12.8 % of the analysed period, being equal to 1.43 in the year 2016. Despite the decline the assets turnover did not change, the index remained the same at 1.93. The Net Result of the company increased by 36.14 % between 2015 and 2016. The company's Financial Profitability has been positively affected by the financial activities in comparison to the EBITs behaviour. The result of these variations is a profitability increase of -8.91 % of the analysed period, being 63.27 in the year 2016. The company's financial profitability has been positively affected by its financial structure. The turnover of the company grew with 48.12 % between 2014 and 2015. The operating result of the company declined with -76.69 % between 2014 and 2015. This evolution implies an decrease of the company's economic profitability. The result of these changes is a reduction of the company's Economic Profitability of -88.71 % of the analysed period, being equal to 1.64 in the year 2015. This fall has contributed to a asset turnover decrease, whose index evolved from -9.77 to a level of 1.94. The Net Result of the company increased by 414.9 % between 2014 and 2015. The company's Financial Profitability has been positively affected by the financial activities in comparison to the EBITs behaviour. The result of these variations is a profitability increase of -85.12 % of the analysed period, being 69.46 in the year 2015. The company's financial profitability has been positively affected by its financial structure.

Country information

Population	60.7 million
GDP per capita	30507 USD
Country risk	Below average
Company risk	Low

Publications

Remarks

Status: Active Category: Large company Last year: 2016 Turnover last year: 12.879.455 EUR Result last year: 31.798 EUR TOTAL assets last year: 6.664.048 EUR Number of employees: 28 Number of shareholders: 2 Number of subsidiaries: 0 Number of branches: 0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.77
UK Pound	1	INR 89.96
Euro	1	INR 78.86
Euro	1	INR 79.51

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

INFORMATION DETAILS

Analysis Done by :	NIS
Report Prepared by :	SDA

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.