MIRA INFORM REPORT

Report Date :

14.06.2008

IDENTIFICATION DETAILS

Name :	CAFES LA VIRGINIA S.A.
Registered Office :	Vélez Sarsfield 1163 (2000), Rosario, Santa Fe Province
Country :	Argentina
Date of Incorporation :	1955.
Legal Form :	Public Limited Company
Line of Business :	Roasting and Grinding of Coffee

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

Registered Name 

CAFES LA VIRGINIA S.A.

CUIT: 30-50107713-1

 Summary 

INCORPORATED IN 1955. BEGINNER OF ACTIVITIES. REFUSED TO SUPPLY FINANCIAL INFORMATION. DATA EXPOSED HEREBY WAS OBTAINED FROM THIRD PARTIES. GOOD LEVEL OF IMPORTANCE. IT DOESN'T REGISTER NEGATIVE. FULFILLMENT: WITHOUT OBJECTIONS. FIT FOR CURRENT CREDITS WITH THE ADOPTION OF APPROPRIATE GUARANTEES.

 Operations 

ROASTING AND GRINDING OF COFFEE
ELABORATION OF TEA
ELABORATION OF AROMATIC HERBS AND SPICES
COMMERCIALIZATION

Legal Structure 

Business type:      Public Limited Company
Incorporated:       13/08/1955
Registered:         18/08/1955
Register #:         50 (Registry of Santa Fe Province)
Duration:           Until 03/08/2054
End of fiscal year: June 30th

Contact 

Legal address: Juan Pablo II Bis No.1340 (2000), Rosario, Santa Fe Province, Argentine Republic.

Operative address and Administration: Vélez Sarsfield 1163 (2000), Rosario, Santa Fe Province, Argentine Republic.

Phone: (54-0341) 437-8300
Fax: (54-0341) 437-8301
E-mail: gerencia@lavirginia.com.ar
Website: www.lavirginia.com.ar

Warehouses: Don Bosco 287 y 290, Rosario, Santa Fe Province, Argentine Republic.

SALES BRANCHES:
---------------
Calle 529 nº 2452, La Plata, Buenos Aires Province.
Avda. Juan B. Justo 4821, Mar del Plata, Buenos Aires Province.
Avda. Colon 1717/34, Bahia Blanca, Buenos Aires Province.
Vicente Chrestia 65, Neuquen.
Mariano Moreno 1951, Junin, Buenos Aires Province.
Gral. Levalle 475, Avellaneda, Provincia de Buenos Aires.
Primera Junta 3939, Santa Fe, Santa Fe Province.
Avda. Las Malvinas 5050, Cordoba, Cordoba Province.
Emilio Civit 1201, San Jose de Guaymallen, Mendoza Province.
Republica Ooriental del Uruguay 2760, Posadas, Misiones Province.
Miguel Ortiz 433/435, Salta, Salta Province.
Gral. Gregorio Lavalle 2340/48, San Miguel, Tucuman Province.
Avda. Belgrano 1223, Santiago, Santiago del Estero Province.
Avda. 25 de Mayo 526/542, Resistencia, Chaco Province.

Partners 

President:      RODRIGUEZ VICENTE BENEDICTO
Vice-president: RODRIGUEZ MANUEL
Secretary:      MORI VERONICA
Director:       RODRIGUEZ ANA MARIA

The first two mentioned ones, as Managers, are in charge of the management and administration of the company, with the use of the social signature.

Corporate Stock 

The company's corporate stock is established in $ 271.900, which has been totally subscribed and paid in. It is represented by 2.719 common shares of par value $1,00 each and with one vote per share.

Personal Information 

RODRIGUEZ VICENTE BENEDICTO:
Lawyer, LE. 7.634.372.

RODRIGUEZ MANUEL:
Lawyer, LE. 6.068.372.

MORI VERONICA:
Lawyer, DNI. 21.962.094.

RODRIGUEZ ANA MARIA:
Lawyer, LC. 5.883.062

History 

According to our registered information, these commercial activities were directly started in 1911 by other companies.

They operated until 1955, year in which CAFES LA VIRGINA S.A. was incorporated as follower of activities, operating nowadays in the previously exposed addresses.

Some time ago it acquired one of the main leader companies in the market of specias in Uruguay, which is LA MANCHEGA S.A., adding to the ditribution of its traditional line of products, the one of "La Virginia" and "Alicante".

Economic-Financial Position 

Contact has been taken with the Accountant Miguel Angel Yucio, who explaied that the company doesn't supply information, much less financial data.

Therefore, data exposed in this report was obtained from third parties.

It has a good level of importance and doesn't register negative records.

Assets 

REAL ESTATE:
------------
Vélez Sarsfield 1151/63, Rosario, Santa Fe Province.
Don Bosco 290, Rosario, Santa Fe Province.
Don Bosco 287, Rosario, Santa Fe Province.

Parent/Related Companies 

LA MANCHEGA S.A.
J.G.PADILLA Y CIA. S.A.

Evolution and Results 

The company is engaged in the roasting and grinding of coffee, the elaboration of tea, aromatic herbs and species, operating nowadays in the previously exposed addresses.

MAIN PRODUCTS:
--------------
Flavoring tea "La Virginia".
Tea "Virginia Island".
Tea "Earl Grey".
Maté "Litoral".
Instant cappuccino "La Virginia".
Soft instant cappuccino "La Virginia".
Sweetener "Tuy".
Coffee "La Virginia Express".
Flavoring clear soup "Alicante".
Ground coffee "La Virginia".
Spices "Alicante"

It has an important infrastructure, mainly represented by its modern equipments and facilities, which are managed by the directors together with the necessary staff.

It carries out exports to Chile and USA.

* 1.400 EMPLOYEES

FOREIGN TRADE:
--------------
In the last twelve months it has carried out imports for a total value of US$ 41.576.611 from the following countries:

BRAZIL .......................... US$ 31.846.262
CHILE ........................... US$  1.872.828
GERMANY ......................... US$  1.510.309
OTHERS .......................... US$  6.347.212

Branches

 Payment Record and Credit Risk 

BANKS:
------
NUEVO BANCO SANTA FE           Branch: Rosario
BANCO PROVINCIA DE CORDOBA     Branch: Rosario
BANCO SANTANDER RIO             Branch: Rosario
BANCO DE LA NACION ARGENTINA   Branch: Rosario
BANCO DE GALICIA Y BS.AIRES     Branch: Rosario
BBVA BANCO FRANCES             Branch: Rosario

INSURANCE:
----------
LA MERIDIONAL CIA.ARGENTINA DE SEGUROS S.A.
COLUMBIA CIA.DE SEGUROS S.A.
LA SEGUNDA S.A.

CREDIT RISK:
------------
March/2008

BANCO SANTANDER     $ 567.300 - SITUATION 1
BANCO FRANCES       $ 133.600 - SITUATION 1

SITUATION 1: NORMAL FULFILLMENT.

 Concept 

Up to now there are no elements that could affect the company's commercial concept.

According to our consultations, it complies in due time the commitments taken.

* FULFILLMENT: WITHOUT OBJECTIONS

 Final Opinion 

We consider feasible the credit treatment with this company by amounts of current importance with the adoption of appropriate guarantees.

* FIT FOR CREDIT TREATMENT

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