MIRA INFORM REPORT

Report Date :

04.04.2012

IDENTIFICATION DETAILS

Name :	INDUSTRIAS CAVALIER S.A. DE C.V.
Registered Office :	Centeno 71, Col. Granjas Esmeraldas, Delg. Iztapalapa, 09810 Mexico DF, Distrito Federal
Country :	Mexico
Financials (as on) :	30.06.2011
Date of Incorporation :	28.08.1968
Legal Form :	Stock Company of Variable Capita
Line of Business :	Manufacture and trading of clothing and apparel for men, such as: shirts, pants, coats, suits, ties, bath robes, socks, etc.
No. of Employees :	1,000

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

Maximum Credit Limit :	US$815,000.=
Status :	Good
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

INDUSTRIAS CAVALIER S.A. DE C.V.

TRADE NAME

CAVALIER COLLECTION

TAXPAYER REGISTRATION

RFC ICA-791210-P19

MAIN ADDRESS

Centeno 71, Col. Granjas Esmeraldas, Delg. Iztapalapa

POSTAL CODE

09810

PROVINCE / DEPARTAMENT

Mexico DF

STATE / REGION

Distrito Federal

COUNTRY

MEXICO

TELEPHONE

(5255) 54450600

E-MAIL

ryanez@cavalier.com.mx

WEB

www.cavalier.com.mx

SUMMARY

Date of foundation	1968
Capital stock	Ps$116,815,825.= Pesos
Annual revenues	US$ 42,304,886.94 (31DEC2011)
permanent employees	1,000
Chief Executive	LEVY AMSELLE, MICHEL PIERRE
Disposition	Moderate.- Only some data and some figures.
Payments policy	Usually to terms/good
Credit (**)	Risk is Moderate. Within Average. Satisfactory.

CREDIT OPINION

Requested credit	MAXIMUM CREDIT (?)
Suggested credit (*)	US$815,000.=
(*) After analyzing different factors and other opinions.

LEGAL BACKGROUNDS

LEGAL STATUS	Stock Company of Variable Capital
DATE OF INCORPORATION	28AUG1968
PLACE OF REGISTRY	Mexico DF
NOTARY OFFICE	No.114, Rafael Del Paso R.
DURATION	99 years
REGISTRATION	Pages No.411-437, Volume No.174 (31/01/1969)
CURRENT PAID-IN CAPITAL	Ps$116,815,825.= Pesos
LAST CAPITAL INCREASE	31/03/2004
CLASS OF SHARES	Registered
LISTED AT STOCK EXCHANGE	No
SHARE VALUE	Ps$1.= Peso
CURRENT EXCHANGE RATE (US$)	Ps$12.78 per US$1.= Dollar
COMMENTS	Subject is a member of the following entities: - CAMARA NACIONAL DE LA INDUSTRIA DEL VESTIDO - AMERICAN CHAMBER OF COMMERCE OF MEXICO AC - INTERNATIONAL ASSOCIATION CLOTHING DESIGNERS AND EXECUTIVES - IACDE - CAMARA FRANCO MEXICANA DE COMERCIO E INDUSTRIA AC The remaining 1% of shares is controlled by a minority shareholder, whose name was not specified.

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
LEVY BLOCH, JORGE	President
LEVY AMSELLE, MICHEL PIERRE	General Director
YAÑEZ PORTUGAL, RAFAEL	FinanceManager/Legal Rep.
GARCÍA FERNÁNDEZ, JUAN	Manager
GARCIA CUEVAS, ASENCION	Human Resources Manager
OPERADORA INDUSTRIAL COYOACAN S.A. DE C.V.	Parent Co.	99%

WHO IS WHO?

LEVY BLOCH, JORGE
NATIONALITY	Mexican
LEVY AMSELLE, MICHEL PIERRE
NATIONALITY	Mexican
PROFESSION	Engineer

BUSINESS HISTORY

- Industrias Cavalier S.A.de C.V. is a 100% Mexican company that was incorporated on 28/08/1968 under the corporate name Industrias Cavalier S.A.
- By Notarial Act No.32, 332 of 05/11/1980, before the Notary No.113 of Federal District, Mr. Roberto Prieto Del Valle, subject adopted the current name: Industrias Cavalier S.A. de C.V.
- Over its history, Industrias Cavalier S.A. de C.V. has taken over by merger the companies: Confecciones de Primera Calidad S.A. de C.V., Distribuidora Cavalier S.A. de C.V., Industria Cortadora S.A. de C.V., Distribuidoras Colier S.A. de C.V., and Matimex S.A. de C.V.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
ASOCIACION DE DIFUSIONES EN ACTUALIDAD S.A. DE C.V.	MEXICO
OPERADORA INDUSTRIAL COYOACAN S.A. DE C.V.	MEXICO	OIC-831207-R56	Parent Co.

BUSINESS

Main activity

Subject is engaged in manufacture and trading of clothing and apparel for men, such as: shirts, pants, coats, suits, ties, bath robes, socks, etc.
 
Sold brands: CAVALIER (own); CHRISTIAN DIOR, CLAIBORNE, HARTMAX, GUY LAROCHE, TOMY HILFIGER, THEO FRAZIER (third-party brands)

Import

Yes

Country

Canada, USA

Export

Yes

COUNTRY

Italy and USA

% CASH SALES / METHOD

40%

% Credit SALES / Terms

60% (30-day terms)

% Ventas exterior (Paises)

30%

% DOMESTIC PURCHASES

10%

% FOREIGN PURCHASES

90%

SELLING TerritorY

Domestic and international market

EMPLOYEES

1,000

LOCATION OTHER PREMISES

Subject's registered office, general offices, cutting area, raw material warehouse and finished product warehouse are located on the above-mentioned address. It is a three-floor building in a semi-industrial area in Mexico city. Subject's production sites are on: - Calle de París No.119 esquina Av. Centenaro, Colonia Del Carmen, Delegación Coyoacán, CP.04,100, México DF. Tel.5554.7100, Fax.5554.5986 (Jacket sewing area) - Calzada de La Viga No.1337, Colonia El Retoño, Delegación Iztapalapa, Cp.09,940, México DF. Tel. (55) 56337016, Fax.56336876 (Shirt sewing area) - Tomas Medina Ugarte No.515, Colonia Gremial, CP.20, 330, Aguascalientes, Aguascalientes. Tel.(449)912.4643, Fax.(449)914.5826 (Pants sewing area) - It has a factory in Rincón de Romos (Pant sewing area) - It also has a maquila factory for ties in Morelia.

Comments

Subject imports Australian wool, oriental and Italian silks, Egyptian cotton, European poplin and linen, European and South American cashimire, European leather, interlining, lining, threads, bottons, fabrics for ties, fabrics for shirts, fabrics for suits and pants, etc.
 
Its monthly production capacity is 80,000 pieces.
 
Its main customers include:
- EL PALACIO DE HIERRO S.A. DE C.V.
- DISTRIBUIDORA LIVERPOOL S.A. DE C.V.
- SEARS ROEBUCK DE MEXICO S.A. DE C.V.

FINANCIAL INFORMATION

Interviewee(s)

Mr. Rafael Yañez Portugal

Position(s)

Finance Manager

Disposition

Moderate.- Only some data and some figures.

Information provided

He verified general information and said that figures from the Annual Balance Sheet for the fiscal year 2011 were not available. He only mentioned that subject's total sales for 2011 amounted to Ps$580 million dollars.
 
It is included the figures from the Interim Balance Sheet as of 30/06/2011 (6 months) that are expressed in Pesos.
 
We consulted third-party sources and official, where it was found information included in this report.
 
This is a privately-held Mexican company that has operated for many years in the market. It is engaged in making clothing. It is considered as a big-sized company within its line of business. It has required resources to develop its activitiy. It is an insured company.

 INTERIM BALANCE SHEET

Balance Sheet Date	30JUN2011
Type of balance sheet	Interim
Period	6 months
Currency	Pesos
Exchange Rate per US$	11.73
A S S E T S
Current Assets	347,342,301.00
Fixed	16,997,697.00
Others	23,613,910.00
Total Assets	387,953,908.00
L I A B I L I T I E S
Current liabilities	155,649,482.00
Long term	18,896,169.00
S H A R E H O L D E R S'  E Q U I T Y
Total shareholders equity	213,408,257.00
Total liab. / Sh. equity	387,953,908.00
Sales	304,277,379.00
Profit (Loss)	47,178,379.00
ratio Liquidity ratio		2.23	(Current assets / Current liabilities)
Debt-to-equity ratio		137.11 %	(Shareholders' equity / Current liabilities %)
Profitability ratio		15.51 %	(Profits / Sales %)
Working capital		191,692,819.00	(Current assets - Current liabilities)

SALES

US$ 42,304,886.94 (31DEC2011)

FINANCIAL SITUATION

SATISFACTORY
Based on the last Financial Statement, this company's Financial Situation is deemed to be Satisfactory because its liquidity ratio is appropriate and above average. Its working capital is positive, which allows the company to pay appropriately. Its debt-to-equity ratio is acceptable. Economic results have been satisfactory.

Property of company comments

Subject's fixed assets include:
- Office furniture and equipment
- Computer equipment
- Fax
- Designing and cutting machines, brand: LECTRA
- Sewing machines
- Single needle machines
etc.

INSURANCE

COMPANY	AGAINST	EXPIRATION	AMOUNT
AIG México Seguros Interamericana S.A. d	Several risks

PAYMENTS RECORD: TRADE REFERENCES

(Confidential Information)

Supplier: ENTRETELAS BRINCOS.A. DE C.V.	Tel.: (5255) 58705020.	Country: MEXICO
Goods/Services? : Interlining
Highest credit? : Ps$ 500,000.=
Client since? : 1992	Terms? : 60 days	Performance? : Prompt
Comments : Good customer
Supplier: OST INDUSTRIAS DE MEXICO S. DE R.L. DE C.V.	Tel.: (55) 53601518	Country: MEXICO
Goods/Services? : Textile products
Highest credit? : Ps$ 200,000.=
Client since? : 1998	Terms? : 30 days	Performance? : Prompt
Comments : Very good customer
Supplier: NEGOCIACION FABRIL DE SORIA S.A. DE C.V.	Tel.: (5255) 55781300	Country: MEXICO
Goods/Services? : Textile products
Highest credit? : US$ 20,000.=
Client since? : 2002	Terms? : 30 days	Performance? : Prompt
Comments : Good customer

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

Supplier	Country	Comment
YKK MEXICANA S.A. DE CV	MEXICO	It could not be contacted.
GRUPO LAFI S.A. DE C.V	MEXICO	It could not be contacted.
PAYLANA S.A.	URUGUAY	It could not be contacted.
Mainetti S.p.A.	ITALY
Lectra S.A.	FRANCE

CREDIT HISTORY

At a local level, subject makes use of credit facilities under various conditions, which it pays appropriately, deserving to be given a good rating. Subject is an old customer. It was not found any unpaid and/or protested documents.

LAWSUITS

It was not found any adverse records on prohibitions, lawsuits, summons, bankruptcies, auctions, cancelled accounts, delinquent operations against subject.

BANKING INFORMATION

Bank

SCOTIABANK INVERLAT S.A.

BBVA BANCOMER S.A.

Subject is a client of the above-mentioned banking entities, which did not provide any information on subject's banking movements under bank secrecy.

GENERAL INFORMATION

REPUTATION

NOTHING AGAINST COMPANY

CREDIT OPINION

Comnsulted Credit Amount :	MAXIMUM CREDIT (?)
Suggested Credit :	US$815,000.=
NOTE : The opinion given is confidential, referential and with out liability.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.56
UK Pound	1	Rs.81.04
Euro	1	Rs.67.48

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%)

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