MIRA INFORM REPORT

Report Date :

28.05.2008

IDENTIFICATION DETAILS

Name :	HERI SANCHEZ DISTRIBUTORS INC.

Registered Office :	Administration and Operative address: Avda.Nativo Alerce, desvío Sur (PO.Box 580), Aguada,

Country :	Republic of Puerto Rico

Date of Incorporation :	1984

Legal Form :	Limited Company

Line of Business :	Wholesale, Retail of School Material, Office Products

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Small Concern

Payment Behaviour :	No Complaints

Litigation :	Clear

Registered Name

HERI SANCHEZ DISTRIBUTORS INC.

Summary

BEGINNER OF ACTIVITIES. INCORPORATED IN 1984. UNDER NO CIRCUMSTANCES, FINANCIAL INFORMATION IS SUPPLIED TO THIRD PARTIES. FOR CREDIT TREATMENT, OPERATE OVER VERY FIRM BASES.

Operations

SCHOOL MATERIAL
OFFICE PRODUCTS
WHOLESALE
RETAIL

Legal Structure

Business type: Limited Company
Incorporated: 1984
Registered: Public Registry of Commerce
Duration: Unlimited
End of fiscal year: December 31st

Contact

Mr Heri Sánchez (General Manager)

Legal address, Administration and Operative address: Avda.Nativo Alerce, desvío Sur (PO.Box 580), Aguada, Republic of Puerto Rico.

Phone: (1-787) 868-3600
E-mail: hsdist@coqui.net

Sales branches in Aguadilla Mol´s and Añasco Plaza.

Partners

General Manager: SANCHEZ KHERI

The mentioned one, as Manager, is in charge of the management and administration of the company, with the use of the social signature.

Corporate Stock

Although we have no detailed information about the company's corporate stock, it is known that most of it is contributed by Mr Heri Sánchez.

Personal Information

SANCHEZ HERI:
Puerto Rican, married and born in 1956.

History

The company was incorporated by mid-1984 with the objective of performing its current activities, operating nowadays in the previously exposed addresses.

It isn’t known if it is member of any economic group or of its directors perform other activities.

Economic-Financial Position

Due to the reluctant attitude shown by the company, it has not been possible to obtain figures or copy of the Balance Sheet.

Therefore it has been necessary to consult other sources. And even in this way, no information about this company was registered.

However, it is known that the subject is a company of reasonable importance on its sector and that operates without apparent problems.

Assets

REAL ESTATE:
------------
It is owner of the property located in the operative address, which has a good realization value.

No title deeds were shown as to verify if its properties are unencumbered.

VEHICLES:
---------
2 trucks Ford model 2007.

Evolution and Results

The company is engaged in the wholesale and retail of school material and office products, operating nowadays in the previously exposed addresses.

It has shops which are well located, installed, stocked and managed by the main directors and 42 employees.

It carries out imports from Argentina, USA, Canada and China, not being known its incursion in the export market.

MAIN SUPPLIERS:
---------------
AMERICAN PAPPER (Puerto Rico)
AMERICAN SCHOOL (USA)

Payment Record and Credit Risk

BANK:
-----
BANCO POPULAR DE PUERTO RICO Branch: Aguada

INSURANCE:
----------
MAPFRE S.A.

Concept

It is commercially related with local and foreign companies. Many of them give it their credit support, not making up to now objections about its payment record.

* FULFILLMENT: WITHOUT OBJECTIONS

Final Opinion

Bearing in mind the fact that it has not been possible to determine the company's current economic-financial situation, for credit treatment we suggest operative over very firm bases.

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