MIRA INFORM REPORT

Report No. :	516608
Report Date :	27.06.2018

IDENTIFICATION DETAILS

Name :	TARKETT S.P.A.
Registered Office :	Via Leone Xiii, 14 20145 - Milano (MI) -IT-
Country :	Italy
Financials (as on) :	31.12.2016
Date of Incorporation :	08.06.1971
Legal Form :	Joint stock company with sole shareholder
Line of Business :	Manufacture of elastic coverings for floorings (vinyl, linoleum)
No. of Employees :	From 131 to 150

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 (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

Company name and address

Tarkett S.p.a.

Via Leone Xiii, 14

20145 - Milano (MI) -IT-

Summary

Fiscal Code	:	00337080022
Legal Form	:	Joint stock company with sole shareholder
start of Activities	:	27/12/1999
Equity	:	Over 2.582.254
Turnover Range	:	35.000.000/50.000.000
Number of Employees	:	from 131 to 150

Activity

Manufacture of elastic coverings for floorings (vinyl, linoleum etc.)

Legal Data

Legal Form : Joint stock company with sole shareholder

Fiscal Code : 00337080022

Chamber of Commerce no. : 828976 of Milano since 05/10/1971

Chamber of Commerce no. : 1588584 of Milano since 30/12/2003

Chamber of Commerce no. : 313812 of Padova

Chamber of Commerce no. : 439997 of Padova

Chamber of Commerce no. : 78621 of Terni

Chamber of Commerce no. : 86391 of Terni

Firms' Register : MI146-191552 of Milano

Firms' Register : MI-2003-277813 of Milano since 30/12/2003

Firms' Register : TR-1999-7106 of Terni

V.A.T. Code : 00777540550

Establishment date	: 08/06/1971
Start of Activities	: 27/12/1999
Legal duration	: 31/12/2050
Nominal Capital	: 11.000.000
Subscribed Capital	: 11.000.000
Paid up Capital	: 11.000.000

Legal mail :

TARKETT@LEGALMAIL.IT

Members

Cioffi

Giuseppe

Born in Vico Equense

(NA)

on 25/10/1957

- Fiscal Code : CFFGPP57R25L845H

Residence:

Sant'anna

, 6

- 05035

Narni

(TR)

- IT -

Position	Since	Shares Amount	% Ownership
Director	23/04/2018

No Prejudicial events are reported

Severino

Elisa Domenica

Born in Martirano

(CZ)

on 29/11/1964

- Fiscal Code : SVRLDM64S69E990I

Residence:

Campomicciolo

, 175

- 05100

Terni

(TR)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney with special power	22/02/2001

No Prejudicial events are reported

No Protests registered

Tarkett Luxembourg S.A.

Born

on 15/00/1910

- Fiscal Code : 97360110155

Position	Since	Shares Amount	% Ownership
Sole partner	04/03/2010

No Prejudicial events are reported

No Protests registered

Silvestri

Marisa

Born in Terni

(TR)

on 10/11/1967

- Fiscal Code : SLVMRS67S50L117K

Residence:

A.murri

, 119

- 05100

Terni

(TR)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney with special power	28/11/2007

No Prejudicial events are reported

No Protests registered

Guerra

Daniele

Born in Terni

(TR)

on 05/04/1973

- Fiscal Code : GRRDNL73D05L117N

Residence:

Alfieri

, 15

- 05100

Terni

(TR)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney with special power	28/11/2007

No Prejudicial events are reported

No Protests registered

Fiocchetti

Fabrizio

Born in Terni

(TR)

on 05/04/1969

- Fiscal Code : FCCFRZ69D05L117B

Residence:

Fiaiola

, 9

- 05035

Narni

(TR)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney with special power	28/11/2007

No Prejudicial events are reported

No Protests registered

Properzi

Paolo

Born in Terni

(TR)

on 06/05/1978

- Fiscal Code : PRPPLA78E06L117Q

Residence:

Sant'anna

, 6

- 05035

Narni

(TR)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney with special power	02/08/2011

No Prejudicial events are reported

No Protests registered

Casas

Ariel Juan

Born in Buenos Aires

( )

on 17/07/1967

- Fiscal Code : CSSRJN67L17Z600P

Residence:

Leone Xiii

, 14

- 20145

Milano

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Director	23/04/2018

Massaccesi

Marco

Born in Castellanza

(VA)

on 21/03/1976

- Fiscal Code : MSSMRC76C21C139W

Residence:

Cappuccini

, SNC

- 01028

Orte

(VT)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney with special power	26/07/2013

No Prejudicial events are reported

No Protests registered

Barthelemy

Fabrice Dominique Robert

Born in Neuilly-sur-seine

( )

on 27/03/1968

- Fiscal Code : BRTFRC68C27Z110Q

Residence:

Telesio Bernardino

, 25

- 20145

Milano

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Director	23/04/2018
Board Chairman	23/04/2018

No Prejudicial events are reported

No Protests registered

Aronica

Tommaso

Born in Palermo

(PA)

on 27/01/1973

- Fiscal Code : RNCTMS73A27G273Q

Residence:

Di Scigliano

, 12

- 05100

Terni

(TR)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney with special power	04/10/2017

No Prejudicial events are reported

No Protests registered

Teixeira

Guillaume Mathieu

Born in Boulogne-billancourt

( )

on 19/04/1981

- Fiscal Code : TXRGLM81D19Z110N

Residence:

Sant'anna

, 6

- 05035

Narni

(TR)

- IT -

Position	Since	Shares Amount	% Ownership
Director	23/04/2018

Companies connected to members *

*checkings have been performed on a national scale.

In this module the companies in which members hold/held positions are listed.

The Members of the subject firm are not reported to be Members in other companies.

Capital Shareholders

Shareholders' list as at date of data collection:

Firm's Style / Name	Seat / Residence	Fiscal Code	Owned Shares	% Ownership
Tarkett Luxembourg S.A.		97360110155		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
Sommer S.p.a.	Narni - IT -	07174830153	2.065.827 .Eur	100,00			Ceased
Sommer S.p.a.	Narni - IT -	00628210551	2.065.827 .Eur	100,00			Ceased
Consorzio Api Energia Soc. Cons. A R.l.	Terni - IT -	01273610558	1.000 .Eur	8,33			Active

Firm's location and structure

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

-	Legal and operative seat

Leone Xiii

, 14

- 20100

- Milano

(MI)

- IT -

Legal mail

: TARKETT@LEGALMAIL.IT

-

Registered office

until 01/08/2011

Dei Missaglia Pal. B

, 97

- 20100

- Milano

(MI)

- IT -

PHONE

: 0289305704

PHONE

: 02893411

-

Branch

(Administrative office)

since 24/11/2003

Sant'anna

, 6

- 05035

- Narni

(TR)

- IT -

-

Branch

(office)

since 13/04/2017

Bernardi

, 1

- 35030

- Rubano

(PD)

- IT -

Employees

: 149

Fittings and Equipment for a value of 2.590.000

Eur

Stocks for a value of 6.860.000

Eur

The firm operates abroad as exporter..

Export represents more than 50% of the global turnover.

Products abroad are placed by :

- national or foreign important buyers

- its own sales net-work

Export is mainly towards:

- Hungary

Historical Information and/or Firm's Status

COMPANY STYLE MODIFICATIONS:

Former Style	New Style	Changement Date
TARKETT SOMMER S.P.A	TARKETT S.P.A.	30/12/2003

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.

Bankers

The firm operates with:

Bank Name	Agency Name	Address	ZIP Code	City	ABI Code	CAB Code
BANCA INTESA - RETE CARIPLO					6070	0

National Real Estates Survey

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

Town	Cadastre	No. Immovables	Up to Date
NARNI (TR)	Buildings	8	21/06/2018
NARNI (TR)	Land	5	21/06/2018

Buildings Details

Cadastre	Title	Location	Sheet No.	Particle No.	Sub No.	Categorie	Classe	Consistence	Cadastrial Rent	Part No.
B	Proprieta' per 1/1	NARNI (TR) VIA SANT' ANNA, 6 Piano T-1 - 2-3	55	41	11	zona1 cat. D/7			Euro: 75.200,00
B	Proprieta' per 1/1	NARNI (TR) VIA SANT' ANNA, Piano T	55	41	5	zona1 cat. D/7			Euro: 784,00
B	Proprieta' per 1/1	NARNI (TR) VIA SANT' ANNA, Piano T	55	41	6	zona1 cat. C/2	7	70 mq	Euro:173,53
B	Proprieta' per 1/1	NARNI (TR) VIA DELLA LIBERTA', 42 Piano T	55	78	1	zona1 cat. C/4	1	373 mq	Euro:828,35
B	Proprieta' per 1/1	NARNI (TR) VIA DELLA LIBERTA', 42 Piano 1	55	78	2	zona1 cat. A/3	4	5,5 vani	Euro:255,65
B	Proprieta' per 1/1	NARNI (TR) VIA DELLA LIBERTA', 42 Piano T	55	78	3	zona1 cat. A/3	4	4,5 vani	Euro:209,17
B	Proprieta' per 1/1	NARNI (TR) VIA DELLA LIBERTA', Piano 1	55	78	5	zona1 cat. A/3	4	5,5 vani	Euro:255,65
B	Proprieta' per 1/1	NARNI (TR) VIA DELLA LIBERTA', Piano 1	55	78	6	zona1 cat. A/3	5	5,5 vani	Euro:298,25

Land Details

Cadastre	Title	Location	Sheet No.	Particle No.	Sub No.	Category	Class	Consistence	Cadastrial Rent	Part No.
L	Proprieta' per 1/1	NARNI (TR)	52	79		BOSCO ALTO	3	10 are 70 ca	R.D.Euro:1,66 R.A. Euro: 0,22	2653
L	Proprieta' per 1/1	NARNI (TR)	55	122		SEMINATIVO	2	5 ca	R.D.Euro:0,03 R.A. Euro: 0,02	10901
L	Proprieta' per 1/1	NARNI (TR)	55	123		SEMINATIVO	2	45 ca	R.D.Euro:0,24 R.A. Euro: 0,21	10901
L	Proprieta' per 1/1	NARNI (TR)	55	35		SEMINATIVO	2	13 are 60 ca	R.D.Euro:7,38 R.A. Euro: 6,32	17839
L	Proprieta' per 1/1	NARNI (TR)	59	72		SEMIN IRRIG	1	29 are 50 ca	R.D.Euro:29,86 (*) R.A. Euro: 16,00	11850

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 1999.

The analysis is based on the latest 3 balance sheets.

During the last years the subject suffered net losses and in 2016 r.o.e. is -56,66%.

A loss is registered as to the operating result (-11,35%).

The operating loss amounts to Eur. -2.973.167 .

At the end of the latest financial year, a negative gross operating margin of Eur. -1.731.671 was registered.

The financial status of the company is fairly balanced with an indebtedness level of 3,15 and falling as against the previous year (6,65).

With regard to equity capital, an amount of Eur. 5.821.334 is registered. , with an upward trend.

During the last financial year debts totalled Eur. 18.825.782 (Eur. 254.065 of which were m/l term debts) showing a stable trend as opposed to 2015 (Eur. 19.553.180).

Bank borrowings' volume is slightly high but the recourse to suppliers' credit is modest below the sector's average.

The liquidity level is positive (1,06).

Trade credits are collected slowly, average term is 90,05 days. but on the same levels as the average of the sector.

A negative cash flow marked the year 2016 totalling Eur. -2.080.838.

In the last financial year labour cost was of Eur. 7.347.411, with a 14,34% incidence on total costs of production. , whereas 16,26% is the incidence on sales revenues.

The financial management has a limited economic impact, equal to -0,72% on the sales.

Financial Data

Complete balance-sheet for the year

al 31/12/2016

(in Eur

x 1)

Item Type	Value
Sales	45.183.630
Profit (Loss) for the period	-2.781.327

Complete balance-sheet for the year

al 31/12/2015

(in Eur

x 1)

Item Type	Value
Sales	45.160.707
Profit (Loss) for the period	-1.514.320

Complete balance-sheet for the year

al 31/12/2014

(in Eur

x 1)

Item Type	Value
Sales	42.142.742
Profit (Loss) for the period	-3.294.321

Complete balance-sheet for the year

al 31/12/2013

(in Eur

x 1)

Item Type	Value
Sales	37.968.052
Profit (Loss) for the period	-4.081.569

Complete balance-sheet for the year

al 31/12/2012

(in Eur

x 1)

Item Type	Value
Sales	36.667.678
Profit (Loss) for the period	-4.868.625

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.	3.659	5.887	8.395
. . Goodwill
. . Assets in formation and advance paymen.
. . Other intangible fixed assets
. Total Intangible Fixed Assets	3.659	5.887	8.395
. TANGIBLE FIXED ASSETS
. . Real estate	3.682.248	3.958.162	4.000.391
. . Plant and machinery	2.584.730	2.614.573	2.679.042
. . Industrial and commercial equipment	5.544	2.663	13.723
. . Other assets	124.299	131.192	107.418
. . Assets under construction and advances	86.356	92.569	182.877
. Total Tangible fixed assets	6.483.177	6.799.159	6.983.451
. 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
. . . . Within 12 months
. . . . 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
. . . . Within 12 months
. . . . Beyond 12 months
. . Other securities
. . Own shares
. . . Total nominal value
. Total financial fixed assets
Total fixed assets	6.486.836	6.805.046	6.991.846
CURRENT ASSETS
. INVENTORIES
. . Raw materials and other consumables	1.012.022	785.689	642.833
. . Work in progress and semimanufactured	2.530.751	2.239.641	1.960.735
. . Work in progress on order
. . Finished goods	3.312.270	2.266.474	1.566.165
. . Advance payments
. Total Inventories	6.855.043	5.291.804	4.169.733
. CREDITS NOT HELD AS FIXED ASSETS
. . Within 12 months	12.549.254	11.707.725	11.430.124
. . Beyond 12 months	17.446	17.446	39.264
. . Trade receivables	11.301.705	10.405.365	11.267.827
. . . . Within 12 months	11.301.705	10.405.365	11.267.827
. . . . Beyond 12 months
. . Receivables due from subsid. comp.
. . . . Within 12 months
. . . . Beyond 12 months
. . Receivables due from assoc. comp.	1.246.549	1.251.625
. . . . Within 12 months	1.246.549	1.251.625
. . . . Beyond 12 months
. . Receivables due from holding comp.		7.647	152.041
. . . . Within 12 months		7.647	152.041
. . . . Beyond 12 months
. . Fiscal Receivables		42.088	31.074
. . . . Within 12 months		42.088	9.256
. . . . Beyond 12 months			21.818
. . Receivables for anticipated taxes
. . . . Within 12 months
. . . . Beyond 12 months
. . Receivables due from third parties	18.446	18.446	18.446
. . . . Within 12 months	1.000	1.000	1.000
. . . . Beyond 12 months	17.446	17.446	17.446
. Total Credits not held as fixed assets	12.566.700	11.725.171	11.469.388
. 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	232.688	187.726	338.978
. . Checks
. . Banknotes and coins
. Total Liquid funds	232.688	187.726	338.978
Total current assets	19.654.431	17.204.701	15.978.099
ADJUSTMENT ACCOUNTS
. Discount on loans			-42.924
. Other adjustment accounts	46.796	17.060	85.848
Total adjustments accounts	46.796	17.060	42.924
TOTAL ASSETS	26.188.063	24.026.807	23.012.869
LIABILITIES
STOCKHOLDERS' EQUITY
. Capital stock	11.000.000	11.000.000	11.000.000
. Additional paid-in capital
. Revaluation reserves
. Legal reserve
. Reserve for Own shares
. Statute reserves
. Other reserves	792.871	792.871	792.871
. Accumulated Profits (Losses)	-3.190.210	-7.375.890	-4.081.569
. Profit( loss) of the year	-2.781.327	-1.514.320	-3.294.321
. Advances on dividends
. Partial loss of the year Coverage
Total Stockholders'Equity	5.821.334	2.902.661	4.416.981
RESERVES FOR RISKS AND CHARGES
. . Reserve for employee termination indem.	159.246	139.554	125.969
. . Taxation fund, also differed
. . Other funds	136.677	153.722	199.533
Total Reserves for Risks and Charges	295.923	293.276	325.502
Employee termination indemnities	1.237.657	1.251.018	1.245.494
ACCOUNTS PAYABLE
. . . . Within 12 months	18.571.717	19.494.584	16.834.534
. . . . Beyond 12 months	254.065	58.596	176.240
. . 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	378.128	179.969	297.813
. . . . Within 12 months	124.063	121.373	121.573
. . . . Beyond 12 months	254.065	58.596	176.240
. . Due to other providers of finance	11.180.960	12.132.009	9.479.510
. . . . Within 12 months	11.180.960	12.132.009	9.479.510
. . . . Beyond 12 months
. . Advances from customers
. . . . Within 12 months
. . . . Beyond 12 months
. . Trade payables	4.058.284	4.137.060	4.510.719
. . . . Within 12 months	4.058.284	4.137.060	4.510.719
. . . . 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	1.080.248	1.130.220
. . . . Within 12 months	1.080.248	1.130.220
. . . . Beyond 12 months
. . Due to holding companies	383.160	105.656	689.035
. . . . Within 12 months	383.160	105.656	689.035
. . . . Beyond 12 months
. . Due to the tax authorities	282.857	300.790	275.738
. . . . Within 12 months	282.857	300.790	275.738
. . . . Beyond 12 months
. . Due to social security and welfare inst.	303.959	321.902	315.718
. . . . Within 12 months	303.959	321.902	315.718
. . . . Beyond 12 months
. . Other payables	1.158.186	1.245.574	1.442.241
. . . . Within 12 months	1.158.186	1.245.574	1.442.241
. . . . Beyond 12 months
Total accounts payable	18.825.782	19.553.180	17.010.774
ADJUSTMENT ACCOUNTS
. Agio on loans
. Other adjustment accounts	7.367	26.672	14.118
Total adjustment accounts	7.367	26.672	14.118
TOTAL LIABILITIES	26.188.063	24.026.807	23.012.869

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	45.183.630	45.160.707	42.142.742
. Changes in work in progress	1.336.907	979.215	303.076
. Changes in semi-manufact. products
. Capitalization of internal work
. Other income and revenues	1.728.929	1.380.127	548.568
. . Contributions for operating expenses	592.034
. . Different income and revenues	1.136.895	1.380.127	548.568
Total value of production	48.249.466	47.520.049	42.994.386
PRODUCTION COSTS
. Raw material,other materials and consum.	31.807.695	29.787.198	27.151.472
. Services received	9.800.150	9.770.156	9.677.709
. Leases and rentals	215.204	210.666	209.067
. Payroll and related costs	7.347.411	7.053.153	6.920.780
. . Wages and salaries	5.264.218	5.021.819	4.984.260
. . Social security contributions	1.696.924	1.654.917	1.609.204
. . Employee termination indemnities	18.368	15.532	17.112
. . Pension and similar	345.393	339.283	291.898
. . Other costs	22.508	21.602	18.306
. Amortization and depreciation	1.217.787	1.375.712	1.615.244
. . Amortization of intangible fixed assets	2.228	3.983	7.600
. . Amortization of tangible fixed assets	1.183.243	1.215.864	1.401.431
. . Depreciation of tangible fixed assets
. . Writedown of current receiv.and of liquid	32.316	155.865	206.213
. Changes in raw materials	226.333	-142.856	102.330
. Provisions to risk reserves	23.709	59.830	82.818
. Other provisions
. Other operating costs	584.344	629.065	216.908
Total production costs	51.222.633	48.742.924	45.976.328
Diff. between value and cost of product.	-2.973.167	-1.222.875	-2.981.942
FINANCIAL INCOME AND EXPENSE
. Income from equity investments
. . In subsidiary companies
. . In associated companies
. . In other companies
. Other financial income	344	284	432
. . 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	344	284	432
. . . - Subsidiary companies
. . . - Associated companies
. . . - Holding companies
. . . - Other companies	344	284
. Interest and other financial expense	-325.802	-291.729	-234.617
. . Towards subsidiary companies
. . Towards associated companies
. . Towards holding companies
. . Towards other companies
Total financial income and expense	-325.458	-291.445	-234.185
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
. . Gains on disposals
. . Other extraordinary income
. Extraordinary expense
. . Losses on disposals
. . Taxes relating to prior years
. . Other extraordinary expense
Total extraordinary income and expense			-36.435
Results before income taxes	-3.298.625	-1.514.320	-3.252.562
. Taxes on current income			41.759
. . current taxes			41.759
. . differed taxes(anticip.)
. Net income for the period	-2.781.327	-1.514.320	-3.294.321
. Adjustments in tax regulations pursuance
. Provisions in tax regulations pursuance
. Profit (loss) of the year	-2.781.327	-1.514.320	-3.294.321

RATIOS

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	0,25	0,28	0,30	0,33
Elasticity Ratio	Units	0,75	0,72	0,69	0,65
Availability of stock	Units	0,26	0,22	0,18	0,14
Total Liquidity Ratio	Units	0,49	0,50	0,51	0,47
Quick Ratio	Units	0,01	0,01	0,01	0,01
COMPOSITION ON SOURCE
Net Short-term indebtedness	Units	3,15	6,65	3,73	2,54
Self Financing Ratio	Units	0,22	0,12	0,19	0,22
Capital protection Ratio	Units	-0,41	-2,27	-0,74	0,74
Liabilities consolidation quotient	Units	0,08	0,07	0,08	0,24
Financing	Units	3,23	6,74	3,85	3,21
Permanent Indebtedness Ratio	Units	0,28	0,18	0,25	0,41
M/L term Debts Ratio	Units	0,06	0,05	0,06	0,13
Net Financial Indebtedness Ratio	Units	1,95	4,18	2,14	1,12
CORRELATION
Fixed assets ratio	Units	1,13	0,62	0,84	1,17
Current ratio	Units	1,06	0,88	0,95	1,10
Acid Test Ratio-Liquidity Ratio	Units	0,69	0,61	0,70	0,82
Structure's primary quotient	Units	0,90	0,43	0,63	0,68
Treasury's primary quotient	Units	0,01	0,01	0,02	0,03
Rate of indebtedness ( Leverage )	%	449,86	827,75	521,01	455,17
Current Capital ( net )	Value	1.082.714	-2.289.883	-856.435	135.108
RETURN
Return on Sales	%	-4,61	-0,31	-3,98	3,71
Return on Equity - Net- ( R.O.E. )	%	-56,66	-52,17	-74,58	2,32
Return on Equity - Gross - ( R.O.E. )	%	-56,66	-52,17	-73,64	8,76
Return on Investment ( R.O.I. )	%	-11,35	-5,09	-12,96	3,87
Return/ Sales	%	-6,58	-2,71	-7,08	3,60
Extra Management revenues/charges incid.	%	n.c.	n.c.	n.c.	16,69
Cash Flow	Value	-2.080.838	-138.608	-1.679.077	147.669
Operating Profit	Value	-2.973.167	-1.222.875	-2.981.942	140.969
Gross Operating Margin	Value	-1.731.671	212.667	-1.283.880	283.954
MANAGEMENT
Credits to clients average term	Days	90,05	82,95	96,25	110,91
Debts to suppliers average term	Days	47,53	48,64	50,54	113,90
Average stock waiting period	Days	54,62	42,18	35,62	47,23
Rate of capital employed return ( Turnover )	Units	1,73	1,88	1,83	1,09
Rate of stock return	Units	6,59	8,53	10,11	7,61
Labour cost incidence	%	16,26	15,62	16,42	15,52
Net financial revenues/ charges incidence	%	-0,72	-0,65	-0,56	-1,76
Labour cost on purchasing expenses	%	14,34	14,47	15,05	15,56
Short-term financing charges	%	1,73	1,49	1,38	3,19
Capital on hand	%	57,96	53,20	54,61	91,39
Sales pro employee	Value	197.308	205.275	195.105	214.336
Labour cost pro employee	Value	32.084	32.059	32.040	32.630

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 2.727 significant companies.

The companies cash their credits on an average of 111 dd.

The average duration of suppliers debts is about 114 dd.

The sector's profitability is on an average of 3,71%.

The labour cost affects the turnover in the measure of 15,52%.

Goods are held in stock in a range of 47 dd.

The difference between the sales volume and the resources used to realize it is about 1,09.

The employees costs represent the 15,56% 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 68.17
UK Pound	1	INR 90.47
Euro	1	INR 79.74
Euro	1	INR 79.91

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

INFORMATION DETAILS

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