MIRA INFORM REPORT

Report Date :

18.11.2011

IDENTIFICATION DETAILS

Name :	DISTRIBUIDORA Y CONVERTIDORA INDUSTRIAL S.A. DE C.V.
Registered Office :	San Francisco 12, Col. San Francisco Cuautlapan 53560 Naucalpan Estado de Mexico
Country :	Mexico
Financials (as on) :	31.12.2009
Date of Incorporation :	18.07.1985
Legal Form :	Stock Company of Variable Capital
Line of Business :	Marketing of dyes and chemicals of high quality.

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 :	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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Mexico	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

IDENTIFICATION

CORRECT COMPANY NAME	DISTRIBUIDORA Y CONVERTIDORA INDUSTRIAL S.A. DE C.V.
TRADE NAME	DICOISA
TAXPAYER REGISTRATION	RFC DCI-850718-EL8
MAIN ADDRESS	San Francisco 12, Col. San Francisco Cuautlapan
POSTAL CODE	53560
CITY / PROVINCE	Naucalpan
DEPARTAMENT / STATE	Estado de Mexico
COUNTRY	MEXICO
TELEPHONE	(5255) 53571725
FAX	(5255) 53571609
E-MAIL	hugomendez@dicoisa.com.mx
WEB	www.dicoisa.com.mx
COMMENTS	Other email: elimonjarasd@dicoisa.com.xmx info@dicoisa.com.mx
SUMMARY Date of foundation 1985 Capital stock No specified Shareholders' equity 29,159,404.00 Pesos (31DEC2009) Annual revenues US$ 12,848,262.49 Pesos (31DEC2009) Profits (loss) 2,028,756.00 Pesos (31DEC2009) permanent employees Employs 35 people Chief Executive MORALES PONCE, ERNESTO Disposition MODERATE (Some general information and some figures). Payments policy P2 Usually to terms/good Credit (**) Within Average. Satisfactory.

LEGAL BACKGROUNDS

LEGAL STATUS	Stock Company of Variable Capital
DATE OF INCORPORATION	18JUL1985
STARTING DATE	1985
PLACE OF REGISTRY	Mexico F.D.
DURATION	99 years
CURRENT PAID-IN CAPITAL	No specified
SHAREHOLDERS EQUITY	29,159,404.00 Pesos (31DEC2009)
CLASS OF SHARES	Registered
LISTED AT STOCK EXCHANGE	No
SHARE VALUE	Ps$1.= Peso
CURRENT EXCHANGE RATE (US$)	Ps$13.72 per US$1.00 Dollar
COMMENTS	Shareholder structure could not be obtained directly or from other source.

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
MORALES PONCE, ERNESTO	Director General
MORALES MONJARAS, ERNESTO	Director of Sales.
MENDEZ DIAZ, HUGO	Comptroller

WHO IS WHO?
MORALES PONCE, ERNESTO
NATIONALITY	Mexican
PROFESSION	Industrial Engineer by profession
MORALES MONJARAS, ERNESTO
NATIONALITY	Mexican
CIVIL STATUS	Married
PROFESSION	Engineer

BUSINESS HISTORY

Distribuidora y Convertidora Industrial S.A. de C.V. is a 100% Mexican company which was founded in Mexico City in the year 1985 marketing dyes.
Three years after starting its operations Dicoisa set in one of the industrial buildings currently occupied, which is located north of Mexico City.
In early 2000 began to build what is today the building of corporate offices of Dicoisa located in the Industrial Park of Naucalpan, Mexico state.
 
 
Related Companies:
 
The subject is not related with any other companies.
 

BUSINESS

Main activity

Company is engaged to the marketing of dyes and chemicals of high quality.
Also provide technical assistance to the industry, focused on the development of new products, matches of color shades and tones.
Industrial Products
Basic Dyes - Taiacryl
Modified Basic Dyes - Taiacryl
Acid Dyes - Cobacid
Direct Dyes - F / Paper, Light P / P
Pigment pastes - Elyocell
Iron Oxides-Dycoferro
Titanium dioxide for paints, plastics, paper, ink, ceramics, textiles
 
Optical Whitener for Paper (Tetrasulfonated - OptiCell B200; disulfonic - OptiCell DW420; Hexasulfonated - OptiCell HW)
 
Optical Brightener OptiCell for: plastics, detergents, acrylic, cotton.
Water-Based Flexographic Inks - Bioflex
Wet strength resins - Byocell RH
Yankee Resins - YK Byocell
Release - Release BYC 350
Softeners: Paper Soft, Acrylsoft Pac
Defoamers
Aids Retention - VH Dyfloc
Sodium hydrosulfite - hydrosols
Sodium chlorite - Clorosoll
Water Treatment Products: Flocculants - Dyfloc, Cationizing Agents - Dypax, Coagulants - Dycoug
 
Food
Soluble dyes
Aluminum lacquer
Dispersions
Natural dyes
Auxiliaries: Titanium Dioxide: Food Grade, USP Grade, Cosmetic Grade. Anhydrous citric acid, potassium sorbate, potassium benzoate.

Import

Yes

Country

From India, Czech Republic, China through direct credit at 30-90 days in advance)

Export

No

% CASH SALES / METHOD

05%

% Credit SALES / Terms

95% (30-60-day terms)

% DOMESTIC PURCHASES

5%

% FOREIGN PURCHASES

95%

SELLING TerritorY

Domestic market - 100%

EMPLOYEES

Employs 35 people

LOCATION
PREMISES	Rented
VALORIZED IN	Ps$60,000.= Pesos
AREA	3,000 m2
OTHER PREMISES	At caption address we find the administrative offices, sales, warehouse and tax domicile of the company. The company pays a rent of about Ps$ 60,000 Pesos monthly for occupying those facilities with a surface area of approximately 3,000 square meters. As reference they are located between Toluca Boulevard and Boulevard Adolfo Lopez Mateos in a semi-industrial district. OTHER LOCATION: The company has no other premises.

Comments

Customers: The company primarily serves the food industry as well as paper and cardboard industry, textile, leather, paints, inks, plastics, cleaning and detergent, such as:
-Maseca
-Bachoco
-Effem México
-Minsa

FINANCIAL INFORMATION

Interviewee(s)

Hugo Mendez Diaz

Position(s)

Comptroller

Disposition

MODERATE (Some general information and some figures).

Information provided

We interviewed the C.P.A.Hugo Méndez Díaz (Comptroller) who assisted us by providing the data contained in this report.
 
With regard to our request for financial statements, he only stated the company sells Ps$.15 million Pesos monthly on average.
 
For your information report contains Balance Sheet of company as of 31/12/2009 (12 months), obtained in prior research.

BALANCE SHEET
Balance sheet date	31DEC2009
Type of balance sheet	Annual
Period	12 months
Currency	Pesos
Exchange rate per US$	13.01
A S S E T S
Current Assetsd	30,326,845.00
Fixed	40,048,893.00
Total Assets	70,375,738.00
L I A B I L I T I E S
Current liabilities	41,216,334.00
Long term	0.00
TOTAL LIABILITIES	41,216,334.00
S H A R E H O L D E R S'  E Q U I T Y
Total shareholders equity	29,159,404.00
Total Liab. / Sh. equity	70,375,738.00
Sales	167,155,895.00
Profit (Loss)	2,028,756.00

RATIO
Liquidity ratio	0.74	Current assets ÷ Current liabilities
Debt-to-equity ratio	70.75 %	(Shareholders' equity ÷ Current liabilities %)
Profitability margin	1.21 %	(Profits ÷ Sales %)
Working capital	-10,889,489.00	(Current assets - Current liabilities)

Property of company comments

The company has:
 -Transportation Equipment
 -Machinery and equipment
 -Furniture and office equipment
 -Computer equipment

PAYMENTS RECORD: TRADE REFERENCES

(Confidential Information)

Supplier: Sun Chemical S.A. de C.V.	Tel.:	Country: MEXICO
Goods/Services? : Inks
Highest credit? : n/a	Outstanding debt? :
Client since? : years	Terms? : 30 days	Performance? : Prompt
Comments : Monthly Ave. Purchase: Ps$230,000
Supplier: Envases de Papel Aventis S.A. de C.V. ENPASA	Tel.: (55) 26204303	Country: MEXICO
Goods/Services? : Paper containers
Highest credit? : n.a.	Outstanding debt? :
Client since? : years	Terms? : 30 days	Performance? : Prompt
Comments : Monthly Ave. Purchase: varying amou
Supplier: Cartones y Corrugados Industriales S.A. de C.V	Tel.: (55) 53174178	Country: MEXICO
Goods/Services? : Paper packaging
Highest credit? : n.a.	Outstanding debt? :
Client since? : years	Terms? : 30 days	Performance? : Prompt
Comments : Monthly Ave. Purchase: varying amou

Note : Other suppliers did not provide information or could not be consulted

Supplier	Telephone	Country	Comment
Bhavi International Ltd.		INDIA
Nantong Lisi Organic Chemical Co. Ltd.		CHINA
Agrofert Holding A.S.		CZECH REPUBLIC

BANKING INFORMATION

Bank

NACIONAL DE MÉXICO S.A.

BBVA BANCOMER S.A.

Subject is a client of the above-mentioned banks. No additional information on this matter was obtained.

GENERAL INFORMATION

REPUTATION

NOTHING AGAINST COMPANY

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.72
UK Pound	1	Rs.79.88
Euro	1	Rs.68.46

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	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
--	NB	New Business	--

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

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