MIRA INFORM REPORT

Report No. :	494307
Report Date :	05.03.2018

IDENTIFICATION DETAILS

Name :	SCIARADA INDUSTRIA CONCIARIA S.P.A.
Registered Office :	Via De' Fabbri, 1 56022 - Castelfranco di Sotto (PI) -IT-
Country :	Italy
Financials (as on) :	31.12.2016
Date of Incorporation :	03.11.1987
Legal Form :	Joint stock company
Line of Business :	Preparation and tanning of leather; dressing and dyeing of fur
No. of Employees :	From 36 to 50

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 :	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

Sciarada Industria Conciaria S.p.a.

Via De' Fabbri, 1

56022 - Castelfranco di Sotto (PI) -IT-

Summary

Fiscal Code	:	01047170509
Legal Form	:	Joint stock company
start of Activities	:	01/03/1988
Equity	:	Over 2.582.254
Turnover Range	:	20.000.000/25.000.000
Number of Employees	:	from 36 to 50

Activity

Preparation and tanning of leather; dressing and dyeing of fur

Legal Data

Legal Form : Joint stock company

Fiscal Code : 01047170509

Foreign Trade Reg. no. : 1399 of Pisa since 26/11/1991

Foreign Trade Reg. no. : 001399 of Pisa since 26/11/1991

Chamber of Commerce no. : 96385 of Pisa since 17/12/1987

Firms' Register : PI026-12193 of Pisa since 19/02/1996

V.A.T. Code : 01047170509

Tribunal Co. Register : 12193 of

Foundation date	: 03/11/1987
Establishment date	: 03/11/1987
Start of Activities	: 01/03/1988
Legal duration	: 31/12/2035
Nominal Capital	: 1.500.000
Subscribed Capital	: 1.500.000
Paid up Capital	: 1.500.000

Legal mail :

SCIARADA@PEC.IT

Members

Castellani

Ezio

Born in Santa Croce sull'Arno

(PI)

on 13/05/1948

- Fiscal Code : CSTZEI48E13I177P

Residence:

M. Curie

, 7/9

- 56029

Santa Croce sull'Arno

(PI)

- IT -

Position	Since	Shares Amount	% Ownership
Procurator	17/05/2002
Sole Director	09/06/2016

No Prejudicial events are reported

No Protests registered

Puccini

Cristina

Born in Fucecchio

(FI)

on 12/09/1964

- Fiscal Code : PCCCST64P52D815H

Residence:

Di Ripa

, 33

- 56029

Santa Croce sull'Arno

(PI)

- IT -

Position	Since	Shares Amount	% Ownership
Procurator	17/05/2002

No Prejudicial events are reported

No Protests registered

Lotti

Federica

Born in Vinci

(FI)

on 12/07/1968

- Fiscal Code : LTTFRC68L52M059Y

Residence:

Buonarroti

, 48/A

- 50054

Fucecchio

(FI)

- IT -

Position	Since	Shares Amount	% Ownership
Procurator	17/09/2010

No Prejudicial events are reported

No Protests registered

Macelloni

Mauro

Born in Pontedera

(PI)

on 26/05/1967

- Fiscal Code : MCLMRA67E26G843Y

Residence:

Capponi

, 9/H

- 56028

San Miniato

(PI)

- IT -

Position	Since	Shares Amount	% Ownership
Procurator	17/09/2010

No Prejudicial events are reported

No Protests registered

Castellani

Maria Serena

Born in Fucecchio

(FI)

on 13/11/1975

- Fiscal Code : CSTMSR75S53D815E

Residence:

Maria Curie

, 7

- 56029

Santa Croce sull'Arno

(PI)

- IT -

Position	Since	Shares Amount	% Ownership
Procurator	17/09/2010

No Prejudicial events are reported

No Protests registered

Tina S.r.l.

:

Privata Giovacchini

, 18

- 56029

Santa Croce sull'Arno

(PI)

- IT -

Position	Since	Shares Amount	% Ownership
Partner

No Prejudicial events are reported

No Protests registered

Companies connected to members *

*checkings have been performed on a national scale.

In this module are listed the companies in which members hold or have holded positions.

Castellani

Ezio

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Lanusse S.r.l.	Santa Croce sull'Arno (PI) - IT -	00368010500	Director	Active	Registered
Automax Collection Snc Di Castellani Ezio E Zocchi Massimo	Santa Croce sull'Arno (PI) - IT -	02296120484	Partner	Active	Registered
Tina S.r.l.	Santa Croce sull'Arno (PI) - IT -	01666020506	Procurator	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
Sciarada Industria Conciaria S.p.a.	Castelfranco di Sotto - IT -	01047170509	150.000 .Eur	10,00
Castellani Ezio	Santa Croce sull'Arno - IT -	CSTZEI48E13I177P	675.000 .Eur	45,00
BERTI SIMONETTA	Santa Croce sull'Arno - IT -	BRTSNT48R64A241H	75.000 .Eur	5,00
Tina S.r.l.	Santa Croce sull'Arno - IT -	01666020506	600.000 .Eur	40,00

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
Sciarada Industria Conciaria S.p.a.	Castelfranco di Sotto - IT -	01047170509	150.000 .Eur	10,00			Active
Consorzio Depuratore Di Santa Croce Sull 'arno S.p.a.	Santa Croce sull'Arno - IT -	00652790502	1.718 .Eur	1,05			Active

Firm's location and structure

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

-

Legal and operative seat

since 20/10/1993

De' Fabbri

, 1

- 56022

- Castelfranco di Sotto

(PI)

- IT -

Legal mail

: SCIARADA@PEC.IT

-

Branch

(Factory)

since 07/01/2008

De'calzolari

, 15/17

- 56022

- Castelfranco di Sotto

(PI)

- IT -

-

Branch

(Store)

since 01/08/2011

A. Di Pietro

, 2

- 56022

- Castelfranco di Sotto

(PI)

- IT -

-

Branch

(Warehouse)

since 04/01/2012

Delle Confina

, 29

- 56022

- Castelfranco di Sotto

(PI)

- IT -

-

Branch

(Warehouse)

since 19/09/2016

Campania

, 5

- 56029

- Santa Croce sull'Arno

(PI)

- IT -

-

Branch

(Store)

since 01/09/2017

De' Calzolari

, 11

- 56022

- Castelfranco di Sotto

(PI)

- IT -

Employees

: 46

Assistants

: 1

Fittings and Equipment for a value of 550.000

Eur

Stocks for a value of 4.730.000

Eur

Vehicles for a value of 36.000

Eur

The firm operates abroad as exporter..

To purchase foreign products the firm uses the following channels :

- its own agents

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

Products abroad are placed by :

- its own agents

Export is mainly towards:

- Bulgaria

- Austria

- Italy

- Belgium

- Greece

- Ireland

Historical Information and/or Firm's Status

CHANGES TO THE LEGAL FORM:

Former legal form	New legal form	Changement Date
Limited liability company	Joint stock company	22/10/1999

CEASINGS/INCORPORATIONS/MERGES:

Project of splitting-up and tranfer into

Lanusse S.r.l.

Privata Giovacchini

, 18

, 56029

, Santa Croce sull'Arno

(PI)

- IT -

Fiscal Code: 00368010500

Date

Merging/splitting-up project:

25/06/2010

Splitting-up and transfer of assets to

Lanusse S.r.l.

Privata Giovacchini

, 18

, 56029

, Santa Croce sull'Arno

(PI)

- IT -

Fiscal Code: 00368010500

Date

Splitting-up:

30/11/2010

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
CASTELFRANCO DI SOTTO (PI)	Buildings	1	26/02/2018
CASTELFRANCO DI SOTTO (PI)	Land	2	26/02/2018
SANTA CROCE SULL'ARNO (PI)	Buildings	1	26/02/2018

Buildings Details

Cadastre	Title	Location	Sheet No.	Particle No.	Sub No.	Categorie	Classe	Consistence	Cadastrial Rent	Part No.
B	Proprieta' per 1/1	CASTELFRANCO DI SOTTO (PI) VIA DEI CALZOLARI, Piano T-1	45	520		cat. D/7			Euro: 3.732,00
B	Proprieta' per 1/1	SANTA CROCE SULL'ARNO (PI) VIA CAMPANIA, Piano T	14	403	1	cat. C/3	4	307 mq	Euro:1.458,68

Land Details

Cadastre	Title	Location	Sheet No.	Particle No.	Sub No.	Category	Class	Consistence	Cadastrial Rent	Part No.
L	Proprieta' per 1/2	CASTELFRANCO DI SOTTO (PI)	38	533		SEMIN ARBOR	2	21 are 80 ca	R.D.Euro:10,70 R.A. Euro: 6,19	14023
L	Proprieta' per 1/2	CASTELFRANCO DI SOTTO (PI)	38	538		SEMIN ARBOR	2	41 are 39 ca	R.D.Euro:20,31 R.A. Euro: 11,76	8728

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 1988

An eco-fin analysis has been made on the base od the b/s fo the years 2014, 2015 and 2016.

During the last years, it achieved profits (r.o.e. 7,69% on 2016) but without a significant increase in the turnover.

The operating result in 2016 was positive (4,77%) falling within the field's average.

The amount of the operating result for the year 2016 is of Eur. 1.046.347 with a -32,89% drop.

The G.O.M. amounted to Eur. 1.402.392 showing a downward trend as opposed to the previous year.

Very good financial situation: shareholder's equity covers short-terms debts with an indebtedness level equal to 0,98 and with an upward trend compared to the previous year.

The equity capital is equal to Eur. 9.702.239 on stable levels.

Total indebtedness was equal to Eur. 11.094.213 (Eur. 247.509 was the value of m/l term debts) showing a stable trend as opposed to 2015 (Eur. 11.486.773).

The company does not exceed in bank credits; payments average period is instead slightly high (143,93 gg.) besides being higher than sector's average.

It shows a good range of liquidity.

Trade credits average terms are slow, on average 106,82 days. but in line with the sector.

The financial management generated a cash flow of Eur. 1.102.416.

Subordinate employment cost is of Eur. 2.957.498, i.e. 12,53% on total production costs. and a 12,37% incidence on sales volumes.

The financial charges do not negatively affect the management, as they are covered by the incomes.

Financial Data

Complete balance-sheet for the year

al 31/12/2016

(in Eur

x 1)

Item Type	Value
Sales	23.917.485
Profit (Loss) for the period	746.371

Complete balance-sheet for the year

al 31/12/2015

(in Eur

x 1)

Item Type	Value
Sales	23.721.233
Profit (Loss) for the period	1.203.104

Complete balance-sheet for the year

al 31/12/2014

(in Eur

x 1)

Item Type	Value
Sales	29.946.418
Profit (Loss) for the period	2.549.769

Complete balance-sheet for the year

al 31/12/2013

(in Eur

x 1)

Item Type	Value
Sales	26.555.566
Profit (Loss) for the period	1.019.490

Complete balance-sheet for the year

al 31/12/2012

(in Eur

x 1)

Item Type	Value
Sales	23.168.509
Profit (Loss) for the period	1.014.799

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.	5.329	2.928	2.484
. . Goodwill
. . Assets in formation and advance paymen.
. . Other intangible fixed assets	4.306	7.386	18.254
. Total Intangible Fixed Assets	9.635	10.314	20.738
. TANGIBLE FIXED ASSETS
. . Real estate	1.057.595	885.808	894.002
. . Plant and machinery	209.070	309.752	365.370
. . Industrial and commercial equipment	341.652	437.831	433.487
. . Other assets
. . Assets under construction and advances
. Total Tangible fixed assets	1.608.317	1.633.391	1.692.859
. FINANCIAL FIXED ASSETS
. . Equity investments	440.130	501.545	492.546
. . . Equity invest. in subsidiary companies	8.628	8.628	8.628
. . . Equity invest. in associated companies	283.398	357.733	357.733
. . . Equity invest. in holding companies
. . . Equity invest. in other companies	148.104	135.184	126.185
. . Financial receivables	1.037.274	984.416	877.222
. . . . Within 12 months	1.000.841	947.983	778.985
. . . . Beyond 12 months	36.433	36.433	98.237
. . . 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	1.037.274	984.416	877.222
. . . . Within 12 months	1.000.841	947.983	778.985
. . . . Beyond 12 months	36.433	36.433	98.237
. . Other securities
. . Own shares		470.000	470.000
. . . Total nominal value
. Total financial fixed assets	1.477.404	1.955.961	1.839.768
Total fixed assets	3.095.356	3.599.666	3.553.365
CURRENT ASSETS
. INVENTORIES
. . Raw materials and other consumables	923.011	925.883	1.218.218
. . Work in progress and semimanufactured	2.571.010	2.469.524	2.778.597
. . Work in progress on order
. . Finished goods	1.240.231	717.187	1.028.385
. . Advance payments
. Total Inventories	4.734.252	4.112.594	5.025.200
. CREDITS NOT HELD AS FIXED ASSETS
. . Within 12 months	9.336.936	9.449.896	10.891.431
. . Beyond 12 months	60.626	92.366	103.736
. . Trade receivables	7.096.534	6.982.943	8.425.195
. . . . Within 12 months	7.096.534	6.982.943	8.425.195
. . . . Beyond 12 months
. . Receivables due from subsid. comp.	738.525	959.306	1.188.863
. . . . Within 12 months	738.525	959.306	1.188.863
. . . . Beyond 12 months
. . Receivables due from assoc. comp.	118.618	104.988	75.890
. . . . Within 12 months	118.618	104.988	75.890
. . . . Beyond 12 months
. . Receivables due from holding comp.
. . . . Within 12 months
. . . . Beyond 12 months
. . Fiscal Receivables	935.983	979.764	751.110
. . . . Within 12 months	935.983	979.764	751.110
. . . . Beyond 12 months
. . Receivables for anticipated taxes	65.233	73.870	76.766
. . . . Within 12 months	65.233	73.870	76.766
. . . . Beyond 12 months
. . Receivables due from third parties	442.669	441.391	477.343
. . . . Within 12 months	382.043	349.025	373.607
. . . . Beyond 12 months	60.626	92.366	103.736
. Total Credits not held as fixed assets	9.397.562	9.542.262	10.995.167
. 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	3.343.345	3.445.466	3.907.000
. Total Financial Assets	3.343.345	3.445.466	3.907.000
. LIQUID FUNDS
. . Bank and post office deposits	1.276.719	1.167.685	639.351
. . Checks
. . Banknotes and coins	32.254	28.866	25.939
. Total Liquid funds	1.308.973	1.196.551	665.290
Total current assets	18.784.132	18.296.873	20.592.657
ADJUSTMENT ACCOUNTS
. Discount on loans		56.893	57.646
. Other adjustment accounts	70.972
Total adjustments accounts	70.972	56.893	57.646
TOTAL ASSETS	21.950.460	21.953.432	24.203.668
LIABILITIES
STOCKHOLDERS' EQUITY
. Capital stock	1.500.000	1.500.000	1.500.000
. Additional paid-in capital	41.317	41.317	41.317
. Revaluation reserves
. Legal reserve	300.000	300.000	300.000
. Reserve for Own shares		470.000	470.000
. Statute reserves
. Other reserves	1.783.925	1.344.189	1.192.700
. Accumulated Profits (Losses)	5.330.626	4.542.513	2.959.231
. Profit( loss) of the year	746.371	1.203.104	2.549.769
. Advances on dividends
. Partial loss of the year Coverage
Total Stockholders'Equity	9.702.239	9.401.123	9.013.017
RESERVES FOR RISKS AND CHARGES
. . Reserve for employee termination indem.	168.930	148.391	128.124
. . Taxation fund, also differed	18.958	19.597	48.232
. . Other funds
Total Reserves for Risks and Charges	187.888	167.988	176.356
Employee termination indemnities	965.981	897.240	822.674
ACCOUNTS PAYABLE
. . . . Within 12 months	10.821.956	10.649.486	12.961.291
. . . . Beyond 12 months	272.257	837.287	1.228.120
. . 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	2.507.292	5.388.523	5.523.731
. . . . Within 12 months	2.235.035	4.551.236	4.295.611
. . . . Beyond 12 months	272.257	837.287	1.228.120
. . Due to other providers of finance
. . . . Within 12 months
. . . . Beyond 12 months
. . Advances from customers
. . . . Within 12 months
. . . . Beyond 12 months
. . Trade payables	7.795.960	5.236.797	7.147.153
. . . . Within 12 months	7.795.960	5.236.797	7.147.153
. . . . 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
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to holding companies
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to the tax authorities	180.811	185.456	894.827
. . . . Within 12 months	180.811	185.456	894.827
. . . . Beyond 12 months
. . Due to social security and welfare inst.	238.765	244.988	244.250
. . . . Within 12 months	238.765	244.988	244.250
. . . . Beyond 12 months
. . Other payables	371.385	431.009	379.450
. . . . Within 12 months	371.385	431.009	379.450
. . . . Beyond 12 months
Total accounts payable	11.094.213	11.486.773	14.189.411
ADJUSTMENT ACCOUNTS
. Agio on loans
. Other adjustment accounts	139	308	2.210
Total adjustment accounts	139	308	2.210
TOTAL LIABILITIES	21.950.460	21.953.432	24.203.668

MEMORANDUM ACCOUNTS

Third party goods
Investment accounts	857.457
Risk accounts
Civil and fiscal norms relation

PROFIT AND LOSS ACCOUNTS

VALUE OF PRODUCTION
. Revenues from sales and services	23.913.529	23.721.233	29.946.418
. Changes in work in progress	624.531	-620.271	1.043.571
. Changes in semi-manufact. products
. Capitalization of internal work
. Other income and revenues	110.099	104.801	66.201
. . Contributions for operating expenses
. . Different income and revenues	110.099	104.801	66.201
Total value of production	24.648.159	23.205.763	31.056.190
PRODUCTION COSTS
. Raw material,other materials and consum.	11.359.242	9.650.885	13.640.464
. Services received	7.788.152
. Leases and rentals	414.403	7.794.729	9.109.163
. Payroll and related costs	2.957.498	2.872.834	2.912.272
. . Wages and salaries	2.158.817	2.071.957	2.127.659
. . Social security contributions	656.534	661.290	655.453
. . Employee termination indemnities	142.147	139.587	129.160
. . Pension and similar
. . Other costs
. Amortization and depreciation	356.045	388.418	387.796
. . Amortization of intangible fixed assets	6.449	15.769	12.923
. . Amortization of tangible fixed assets	334.443	356.301	355.797
. . Depreciation of tangible fixed assets
. . Writedown of current receiv.and of liquid	15.153	16.348	19.076
. Changes in raw materials	2.872	292.336	487.533
. Provisions to risk reserves
. Other provisions
. Other operating costs	723.600	647.334	849.364
Total production costs	23.601.812	21.646.536	27.386.592
Diff. between value and cost of product.	1.046.347	1.559.227	3.669.598
FINANCIAL INCOME AND EXPENSE
. Income from equity investments
. . In subsidiary companies
. . In associated companies
. . In other companies
. Other financial income	86.129	241.864	201.285
. . Financ.income from receivables	26.285	23.979
. . . Towards subsidiary companies
. . . Towards associated companies
. . . Towards holding companies
. . . Towards other companies	26.285	23.979
. . Financ.income from secur. t.f.assets
. . Financ.income from secur. cur.assets	59.626	13.889	12.514
. . Financ.income other than the above	218	203.996	188.771
. . . - Subsidiary companies
. . . - Associated companies
. . . - Holding companies
. . . - Other companies	218	203.996	188.771
. Interest and other financial expense	-48.945	-131.807	-165.253
. . Towards subsidiary companies
. . Towards associated companies
. . Towards holding companies
. . Towards other companies		-131.807	-165.253
Total financial income and expense	37.184	110.057	36.032
ADJUSTMENTS TO FINANCIAL ASSETS
. Revaluations
. . Of equity investments
. . Of financ.fixed assets not repres.E.I.
. . Of securities incl.among current assets
. Devaluation		-6.394
. . Of equity investments
. . Of financial fixed assets (no equity inv)
. . Of securities included among current ass		-6.394
Total adjustments to financial assets		-6.394
EXTRAORDINARY INCOME AND EXPENSE
. Extraordinary income		83.019	143.678
. . Gains on disposals
. . Other extraordinary income		83.019	143.678
. Extraordinary expense		-44.853	-42.902
. . Losses on disposals
. . Taxes relating to prior years
. . Other extraordinary expense		-44.853	-42.902
Total extraordinary income and expense		38.166	100.776
Results before income taxes	1.083.531	1.701.056	3.806.406
. Taxes on current income	337.160	497.952	1.256.637
. . current taxes	348.892	509.309	1.253.809
. . differed taxes(anticip.)		-11.357	2.828
. Net income for the period	746.371	1.203.104	2.549.769
. Adjustments in tax regulations pursuance
. Provisions in tax regulations pursuance
. Profit (loss) of the year	746.371	1.203.104	2.549.769

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	0,14	0,16	0,15	0,18
Elasticity Ratio	Units	0,86	0,83	0,85	0,80
Availability of stock	Units	0,22	0,19	0,21	0,20
Total Liquidity Ratio	Units	0,64	0,65	0,64	0,51
Quick Ratio	Units	0,21	0,21	0,19	0,02
COMPOSITION ON SOURCE
Net Short-term indebtedness	Units	0,98	1,01	1,36	2,38
Self Financing Ratio	Units	0,44	0,43	0,37	0,24
Capital protection Ratio	Units	0,77	0,71	0,55	0,68
Liabilities consolidation quotient	Units	0,11	0,16	0,16	0,18
Financing	Units	1,14	1,22	1,57	2,86
Permanent Indebtedness Ratio	Units	0,50	0,51	0,46	0,38
M/L term Debts Ratio	Units	0,06	0,08	0,08	0,11
Net Financial Indebtedness Ratio	Units	0,12	0,45	0,54	1,00
CORRELATION
Fixed assets ratio	Units	3,53	3,09	3,11	1,78
Current ratio	Units	1,73	1,72	1,59	1,25
Acid Test Ratio-Liquidity Ratio	Units	1,30	1,33	1,20	0,84
Structure's primary quotient	Units	3,13	2,61	2,54	1,07
Treasury's primary quotient	Units	0,43	0,44	0,35	0,03
Rate of indebtedness ( Leverage )	%	226,24	233,52	268,54	408,81
Current Capital ( net )	Value	7.937.428	7.647.387	7.631.366	312.424
RETURN
Return on Sales	%	4,61	6,71	9,81	2,67
Return on Equity - Net- ( R.O.E. )	%	7,69	12,80	28,29	3,20
Return on Equity - Gross - ( R.O.E. )	%	11,17	18,09	42,23	8,58
Return on Investment ( R.O.I. )	%	4,77	7,10	15,16	4,36
Return/ Sales	%	4,37	6,57	12,25	3,63
Extra Management revenues/charges incid.	%	71,33	77,16	69,48	23,99
Cash Flow	Value	1.102.416	1.591.522	2.937.565	112.609
Operating Profit	Value	1.046.347	1.559.227	3.669.598	127.644
Gross Operating Margin	Value	1.402.392	1.947.645	4.057.394	230.719
MANAGEMENT
Credits to clients average term	Days	106,82	105,98	101,28	101,46
Debts to suppliers average term	Days	143,93	108,06	113,10	94,66
Average stock waiting period	Days	71,26	62,41	60,41	56,34
Rate of capital employed return ( Turnover )	Units	1,09	1,08	1,24	1,34
Rate of stock return	Units	5,05	5,77	5,96	6,30
Labour cost incidence	%	12,37	12,11	9,72	12,44
Net financial revenues/ charges incidence	%	0,16	0,46	0,12	-1,48
Labour cost on purchasing expenses	%	12,53	13,27	10,63	12,90
Short-term financing charges	%	0,44	1,15	1,16	3,49
Capital on hand	%	91,78	92,55	80,82	74,43
Sales pro employee	Value	259.972	266.530	329.081	253.464
Labour cost pro employee	Value	32.146	32.279	32.002	32.147

Remarks

1) Protests checking (relative to the last five years) performed by crossing and matching the members names and the Firm's Style with the reported addresses, is supplied by the Informatic Registry managed by the Italian Chamber of Commerce. If the fiscal code is not indicated, the eventual homonymous cases are submitted to expert staff evaluation in order to limit wrong matching risks.

2) The Legal Data, supplied and retrived from the Firm's Registry of the Italian Chamber of Commerce, are in line with the last registered modifications.

3) Risk evaluation and Credit Opinion have been performed on the base of the actual data at the moment of their availability.

Market / Territory Data

Population living in the province	:	394.101
Population living in the region	:	3.598.269
Number of families in the region	:	1.474.681

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

- per food products	:	444
- per non food products	:	2.009
- per energy consume	:	122

Sector Data

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

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

The average duration of suppliers debts is about 95 dd.

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

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

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

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

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

Statistical Detrimental Data

Statistically the trade activity passes through serious crises.

The area is statistically considered moderately risky.

In the region 24.960 protested subjects are found; in the province they count to 2.664.

The insolvency index for the region is 0,70, , while for the province it is 0,68.

Total Bankrupt companies in the province : 1.648.

Total Bankrupt companies in the region : 20.423.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.23
UK Pound	1	INR 89.71
Euro	1	INR 79.50
Euro	1	INR 80.31

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

INFORMATION DETAILS

Analysis Done by :	PRA
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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