MIRA INFORM REPORT

Report Date :

18.04.2008

IDENTIFICATION DETAILS

Name :	ESTABLECIMIENTO LAS MARIAS S.A.C.I.F.A.
Registered Office :	Lrala 2021, Ciudad de Bs .Aires
Country :	Argentina
Financials (as on) :	31.12.2006
Date of Incorporation :	02.01.1958
Legal Form :	Limited Company
Line of Business :	Cultivation. Production and Commercialization of Tea, Mate and Similars.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Status :	Good
Payment Behaviour :	No Complaints
Litigation :	Clear

Registered Name 

ESTABLECIMIENTO LAS MARIAS S.A.C.I.F.A.

C.U.I.T. 30-50183535-4

 Summary 

INCORPORATED IN 1958. BALANCE SHEET AS OF 31/12/2006.  SOLID ECONOMIC STRUCTURE AND POSITIVE PROFIT.  FAVORABLE PERSPECTIVE.  APT FOR CREDIT OPERATIONS.

Operations 

CULTIVATION. PRODUCTION AND COMMERCIALIZATION OF TEA, MATE AND SIMILARS.

 Legal Structure 

BUSINESS TYPE:    LIMITED COMPANY
INCORPORATED:     02/01/1958
REGISTERED:       12/03/1959
DURATION:         12/03/2058
END OF FISCAL YR: 31/12

Contact 

Accountant: Marcelo Falcon

LEGAL ADDRESS AND HEADQUARTERS: Irala 2021, Ciudad de Bs.Aires, Argentina.

PHONE: (54-11) 4303-1162/1169

PLANT AND RURAL SITE: Ruta Nacional 14, Gobernador Virasoro, Provincia de Corrientes.
Tel. (54-03756) 481807

BRANCH: Avda. Guacurari 1998, Posadas, Provincia de Misiones.

 Partners 

President:           NAVAJAS CENTENO VICTOR AMADO
Vicepresident:       NAVAJAS ARTAZA VICTOR JORGE
Director:            NAVAJAS EDUARDO VICTOR
Director:            NAVAJAS ARTAZA FERNANDO
Director:            NAVAJAS ROBERTO ARTURO
Director:            NAVAJAS NOSIGLIA VICTOR
Director:            BURTON NAVAJAS PAUL
Director:            NAVAJAS (h)ADOLFO
Director:            NAVAJAS NOSIGLIA PABLO RAUL

USE OF SIGNATURE: IN CHARGE OF President AND V.President.

 Corporate Stock 

SHARE CAPITAL SUBSCRIBED AND PAID IN: $ 3.300.000.-

PARENT COMPANY:

GRUPO LAS MARIAS S.A.
ADDRESS: Irala 2021, Ciudad de Bs.As.
ACTIVITIES: FINANCIAL AND INVESTMENTS

PARTICIPATION OVER NET WORTH: 99,94%

 Personal Information 

NAVAS ARTAZA VICTOR JORGE
(CUIT 20-10263139-1)

ARGENTINIAN, BORN IN  26/10/1951, D.N.I. No. 10.263.139.

REGISTERED AT THE FOLLOWING COMPANIES:

ABATI S.A.
President

TOPANE S.A.
Vicepresident

LAS MARIAS TECNOLOGICA S.A.
President

ASOCIACION PRODUCTORES MOLINEROS DE CORRIENTES
President

YERBATERA DEL NORDESTE S.A.
President

 History 

THE COMPANY INITIATED ACTIVITIES IN 1908 BY THE FAMILY NAVAJAS CENTENO, WHICH THROUGH THE YEARS OBTAINED IMPORTANT OUTCOMES EVOLVING IN A NATIONAL ENTERPRISE.

THE COMPANY IN REVIEW IS THE FOLLOWER OF ACTIVITIES INCORPORATED IN MARCH 12, 1959.

Economic-Financial Position 

BALANCE SHEET AS OF  31.12.2006.

GENERAL STRUCTURE:
------------------
CURRENT ASSETS     $ 129.018.722,47

NONCURRENT ASSETS  $  84.715.883,25

CURRENT LIABILITEIS     $  71.973.959,49

NONCURRENT LIABILITIES  $  32.667.565,58

NET WORTH          $ 109.093.080,65

THE NUMBERS SHOW A WELL SATISFACTORY ECONOMIC POSITION WHERE THE FUNDS GROUPES IN THE NET WORTH HAVE AN AMPLE COVERAGE FOR THE AMOUNT OF ASSUMED COMMITMENTS HAVING A GOOD ENDORSEMENT FROM THE CURRENT ASSETS RATED AS OF NORMAL REALIZATION SHORT AND MEDIUM TERM.

SALES OF INDUSTRIAL GOODS:
----------------------------
NET VALUES.
INTERNAL MARKET       $ 184.062.674,26
EXTERNAL MARKET       $  32.619.143,17
________________
   $ 216.681.817,43
================

SALES OF INDUSTRIAL SERVICES:
-------------------------------
NET VALUES
INTERNAL MARKET       $      46.711,58
EXTERNAL MARKET       $   1.499.153,62
________________
$   1.545.865,20
================

AGRICULTURAL PRODUCTS:
-----------------------
Valores netos
INTERNAL MARKET       $  14.963.374,47
EXTERNAL MARKET       $     895.438,92
________________
$  15.858.813,39
================

AGRICULTURAL SERVICES:
-----------------------
INTERNAL MARKET       $     308.678,94
________________
$     308.678,94
================  

COMMERCIALIZATION:

INTERNAL MARKET.

THE YEAR 2006 IS DEFINED AS A POSITIVE ONE IN REGARDS THE SALES VOLUME FORECASTED OF ALL PRODUCTS, EVENTHOUGH A DECREASE IN PROFITS DUE TO COSTS EVOLUTION AND RESTRICTIONS DUE TO INFLATION.

THE OVER-OFFER IN ITS MAIN RAW MATERIAL MATE, BROUGHT POSITIVE POSITIONING IN THE PRICES.

90% OF EXPORTS ARE TO : Chile, Siria, SPAIN, EE.UU. AND Paraguay.

THOSE COUNTRIES ARE THE MOST IMPORTANT IN SALES AND VOLUME BUT THEIR TRADEMARKS ARE DISTRIBUTES AMONG THE FIVE CONTINENTS.

THE EXERCISE GAVE AN PROFIT OF  $ 6.023.963,54, DISTRIBUTED AS FOLLOWS:

LEGAL RESERVE        $ 301.198,18
DIRECTORY/TRUSTEES   $ 426.000,00
DIVIDENDS           1.400.000,00
RESEVE DIVIDENDS    3.896.765,36    

 Balance Sheet 

Balance Sheet/s	31/12/2006	31/12/2005	31/12/2004
Total Assets	$ 213.734.605,72	$ 206.220.839,52	$ 176.255.799,88
Current Assets	$ 129.018.722,47	$ 123.399.589,70	$ 97.804.121,19
Banks	$ 2.496.705,00	$ 1.596.390,65	$ 1.188.074,57
Accounts Receivables	$ 31.362.072,00	$ 30.301.450,48	$ 23.540.785,51
Inventory	$ 85.081.254,00	$ 79.140.733,21	$ 63.185.383,45
Fixed Assets	$ 52.279.171,00	$ 51.183.135,37	$ 49.640.205,27
Non-Current Assets	$ 84.715.883,25	$ 82.821.249,82	$ 78.451.678,69
Investments	$ 1.269.692,00	$ 0,00	$ 0,00
Total Liabilities	$ 104.641.525,07	$ 102.163.722,41	$ 74.507.787,59
Current Liabilities	$ 71.973.959,49	$ 64.801.847,82	$ 44.915.101,04
Non-Current Liabilities	$ 32.667.565,58	$ 37.361.874,59	$ 29.592.686,55
StockHolders Equity	$ 109.093.080,65	$ 104.057.117,11	$ 101.748.012,29
Net Sales	$ 309.903.791,24	$ 203.685.113,71	$ 174.487.258,10
Cost of Good Sold	$ 254.559.924,13	$ 143.663.032,82	$ 117.708.572,94
Gross Result	$ 55.343.867,11	$ 60.022.080,89	$ 56.778.685,16
Administrative Expenses	$ 18.106.200,48	$ 16.232.454,46	$ 13.768.632,55
Selling Expenses	$ 36.620.738,04	$ 40.542.978,56	$ 39.240.741,14
Financial Income	$ 1.857.329,92	$ 0,00	$ 0,00
Other Expenses	$ 7.264.364,87	$ 874.202,95	$ -299.101,31
Final Result	$ 6.023.963,54	$ 4.120.850,82	$ 3.470.210,16

 Balance Sheet Analysis 

Indexes	31/12/2006	31/12/2005	31/12/2004
Current Ratio	179,26 %	190,43 %	217,75 %
Quick Ratio	61,05 %	68,30 %	77,08 %
Short Term Indebtedness	65,97 %	62,28 %	44,14 %
Debt to Equity Ratio	95,92 %	98,18 %	73,23 %
Long Term Assets to Total Assets	39,64 %	40,16 %	44,51 %
Fixed Assets to Equity	47,92 %	49,19 %	48,79 %
Total Assets to Total Liabilities	204,25 %	201,85 %	236,56 %
Debt Ratio	48,96 %	49,54 %	42,27 %
Equity Ratio	51,04 %	50,46 %	57,73 %
Investments to Assets Ratio	39,81 %	38,38 %	35,85 %
Current Investment	60,36 %	59,84 %	55,49 %
Stocks Aging Days	121,99 días	201,07 días	195,93 días
Day Sales	36,94 días	54,30 días	49,24 días
Trade Debtors To Assets	14,67 %	14,69 %	13,36 %
Total Assets Turnover	144,99 %	98,77 %	99,00 %
Net Worth Aging	284,07 %	195,74 %	171,49 %
Fixed Assets Aging	592,79 %	397,95 %	351,50 %
Gross Profit	82,14 %	70,53 %	67,46 %
Financial Expenses on Sales Ratio	0,60 %	0,00 %	0,00 %
Commercial Exp. on Sales Ratio	11,82 %	19,90 %	22,49 %
Administrative Exp. on Sales Ratio	5,84 %	7,97 %	7,89 %

 Assets 

RESULTANT NET VALUE $ 52.279.171,71, AS FOLLOWS:

LOTS AND FIELDS       $ 12.314.770,79
IMPROVEMENT IN FIELDS $    296.519,62
PLANTATION            $ 13.889.597,85
BUILDINGS             $ 16.341.842,29
Installations         $  5.472.896,14
MACHINES AND TOOLS    $  1.167.655,72
FURNITURE AND SUPPLIES$    123.207,68
VEHICLES              $  1.105.155,84
COMPUTERS             $    314.096,84
SUPPLIERS ADVANCES    $     13.020,27
CURRENT PROJECTS      $  1.240.408,67

AS OF 31.12.2006, THERE WERE GOODS ENDORSING BANK LIABILITIES AS FOLLOWS:

LOTS AND FIELDS
MORTGAGE IN 1ST DEGREE IN FAVOR OF BANCO RIO DE LA PLATA S.A. $ 5.546.104,13.

LOTS AND FIELDS
MORTGAGE IN 1ST DEGREE IN FAVOR OF BBCVA BANCO FRANCES $ 2.382.675,17.

LOTS AND FIELDS
MORTGAGE IN 1ST DEGREE IN FAVOR OF BANCO DE GALICIA
AND BUENOS AIRES $ 7.157.841,67.

LOTS AND FIELDS
MORTGAGE IN 1ST DEGREE IN FAVOR OF HSBC BANK $
950.975,40.

LOTS AND FIELDS
MORTGAGE IN 1ST DEGREE IN FAVOR OF NUEVO BANCO BISEL $ 2.600.198,52.

RAW MATERIALS
WARRANT IN FAVOR OF BBVA BANCO FRANCES $ 4.109.027,39.

RAW MATERIALS
WARRANT IN FAVOR OF BANCO MACRO  $ 2.039.452,05.

VEHICLES
IN FAVOR OF  BANK BOSTON  $ 947.602,48

 Parent/Related Companies 

GRUPO LAS MARIAS S.A. (PARENT COMPANY)
TOPANE S.A. (CONTROLLED)
YERBATERA DEL NORDESTE S.A. (Related)
LA POSTA S.A. (Related)
FORESTAL LAS MARIAS S.A. (related)
LAS MARIAS TECNOLOGICA S.A. (related)

 Evolution and Results 

THE COMPANY IS DEDICATED TO THE CROP AND COMMERCIALIZATION OF MATE, TEA, HAVING TRADEMARKS AS  TARAGUI (MOST IMPORTANT), MAÑANITA, LA MERCED, UNION, etc.

* 1.400 employees.

IT IS LEADER IN ITS SECTOR, NORMAL EVOLUTION AND STEADY PERSPECTIVES.

FOREIGN TRADE
-----------------

IN THE LAST 12 MONTHS, IMPORTS OF u$s 2.869.224, AS FOLLOWS:

EE.UU.                1.744.941
BRAZIL                  268.825
REP.DOMINICANA          252.071
OTHERS                  603.387

MAIN IMPORTED PRODUCTS: PREPARED AND CONSERVED GARDEN PRODUCE, PACKING AND SIMILARS.

MAIN SUPPLIERS:
----------------------
CARTOCOR S.A.
ZUCAMOR S.A.

 Payment Record and Credit Risk 

BANCO MACRO BANSUD
BANCO DE LA NACION
STANDARD BANK
BANCO SANTANDER RIO
HSBC BANK ARGENTINA
BANCO SUPERVIELLE
BBVA BANCO FRANCES
BANCO PATAGONIA-SUDAMERIS
BANCO DE GALICIA

CREDIT RISK -
DEC 2007

BANCO FRANCES     $ 12.029.200   SITUATION 1
BANCO MACRO       $  8.908.400      "
HSBC BANK         $  7.321.200      "
BANCO PATAGONIA   $  6.052.500      "
STANDARD BANK     $  6.029.700      "
BANCO GALICIA     $  5.828.600      "
BANCO COMAFI      $  5.424.200      "
INV, Y COM,EXTE.  $  3.866.000      "
BANCO SANTANDER   $  3.636.000      "
BANCO CORRIENTES  $  3.024.100      "
BANCO BISEL       $  1.452.100      "
BANCO SUPERVIELLE $    488.400      "
FF BEST LEASING   $    119.100      "
SERV Y TRANSAC.   $    115.800      "
PSA FINANCE       $     78.000      "
FF BEST LEASING   $     37.900      "
FF BEST LEASING   $     29.900      "
FF BEST LEASING   $     17.200      "
AMEX              $      3.000      "

SITUATION 1: NORMAL FULFILLMENT.

INSURANCES:
-------
WITH SEVERAL LOCAL COMPANIES.
GENERAL RISKS.  

 Concept 

THE COMPANY DOES NOT HAVE ANY NEGATIVE ANTECEDENTS THAT COULD AFFECT ITS COMMERCIAL CONCEPT, AND IT PAYS ON TIME ITS COMMITMENTS.

FULFILLMENT WITHOUT OBJECTIONS.

 Final Opinion 

THE COMPANY IS VIABLE FOR CREDIT OPERATIONS WITHIN CURRENT SUMS WITH GUARANTEES.

APT FOR CREDIT OPERATIONS.

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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 and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions