MIRA INFORM REPORT

Report Date :

13.02.2012

IDENTIFICATION DETAILS

Name :	NEOSUL S.A.

Registered Office :	Aizpurúa 2092, 11400, Montevideo

Country :	Uruguay

Financials (as on) :	30.06.2011

Date of Incorporation :	1962

Legal Form :	Joint-Stock Company

Line of Business :	Manufacture and trading of plastic fabrics and PVC films for several uses.

No. of Employees :	27

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	US$.50,000
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)

Uruguay

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

IDENTIFICATION

CORRECT COMPANY NAME

NEOSUL S.A.

TAXPAYER REGISTRATION

RUT 210057630011

MAIN ADDRESS

Aizpurúa 2092

POSTAL CODE

11400

PROVINCE / DEPARTAMENT

Montevideo

STATE / REGION

Montevideo

COUNTRY

URUGUAY

TELEPHONE

(598) 25086201

E-MAIL

neosul@neosul.com.uy

WEB

www.neosul.com.uy

COMMENTS

Email:hdonner @neosul.com.uy

SUMMARY
Date of foundation	1962
Capital stock	Ps$19,000,000.= Pesos
Shareholders' equity	23,330,593.00 Pesos (30JUN2011)
Annual revenues	US$ 2,236,216.28 Pesos (30JUN2011)
Profits (loss)	128,226.00 Pesos (30JUN2011)
permanent employees	27
Chief Executive	DONNER BLOCK, HUGO ALBERTO
Disposition	Excellent.- Full information and updated figures.
Payments policy	P2 Usually to terms/good
Credit ()**	(B): Risk is Moderate. Within Average. Satisfactory.

CREDIT OPINION
Requested credit	MAXIMUM?
*Suggested credit ()**	US$.50,000.=
(*) After analyzing different factors and other opinions.

LEGAL BACKGROUNDS


LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	1962
PLACE OF REGISTRY	Montevideo
DURATION	Perpetual
CURRENT PAID-IN CAPITAL	Ps$19,000,000.= Pesos
SHAREHOLDERS EQUITY	23,330,593.00 Pesos (30JUN2011)
CLASS OF SHARES	Registered
LISTED AT STOCK EXCHANGE	No
CURRENT EXCHANGE RATE (US$)	Ps$19.02 per 1 USD

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
*DONNER BLOCK, HUGO ALBERTO*	CEO	50%	01/09/79
DONNER JEKEL, HERBERT	Shareholder	50%	01/03/62

WHO IS WHO?


DONNER BLOCK, HUGO ALBERTO
NATIONALITY	Uruguayan
D.O.B.	26JUN1955
ID	CI 1.224.202-6


DONNER JEKEL, HERBERT
NATIONALITY	Uruguayan
D.O.B.	31AUG1929
ID	CI 533.044-2
PROFESSION	Civil Engineer
BACKGROUND INFORMATION	He managed the industrial area of the venture founded by his relatives (uncle and cousin) who then sold their part. He specialized in plastics with the original suppliers of the equipment in Germany. He has quit the activity 10 years ago, and his son Hugo Donner, joined the company when he still was a student. He was in charge of the company's management before his father left the company. President of the Uruguayan Association of Plastic Industries and the Latin American Association of Plastic Industries, Vice President of the Uruguayan Chamber of Industries and Director of Laboratorio Tecnológico del Uruguay.

BUSINESS HISTORY


The company's Annual Validity Certificate appears as AUTHORIZED in the General Tax Bureau.

BUSINESS

Main activity

Manufacture and trading of plastic fabrics and PVC films for several uses.

Brands sold: "NEOSUL", "NEOSKAI", "NEOVIN", "NEOSKIN", "NEOFILM".

Import

Yes

Country

Argentina, China, Brazil and Taiwan (10% in cash and 90% on credit with 30-day terms)

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2011	234,051.34
2010	394,858.80
2009	288,067.93
2008	259,050.84
2007	524,292.24

Export

Yes

COUNTRY

Paraguay and Argentina.

Annual exports in US$ (FOB)

YEAR	AMOUNT
2011	94,620.74
2010	205,668.20
2009	365,654.36
2008	746,532.42
2007	757,401.13

% Credit SALES / Terms

100% (Short-term facilities)

% Ventas exterior (Paises)

10%

% DOMESTIC PURCHASES

75%

% FOREIGN PURCHASES

25%

SELLING TerritorY

90%

EMPLOYEES

LOCATION
PREMISES	Own
TIME OCCUPIED	1962
AREA	5,000 m2
OTHER PREMISES	Facilities has a 5,000 m2 area, from which 3,500 are built and the rest is a free area.

Comments

Products sold by Subject Company are used as inputs for the automotive, pharmaceutical industries, leather goods, garments, packaging, footwear, construction, decoration industries, toys, advertising, document cases, book binding, etc.

Sales terms: 100% on credit to be paid in up to 7 days, but for some clients Subject sells from 90-120 to 150 days (according to the purchase volume).

FINANCIAL INFORMATION

Interviewee(s)

Hugo Donner

Position(s)

CEO

Disposition

Excellent.- Full information and updated figures.

Information provided

We spoke with Hugo Donner, CEO, who kindly provided the required information, including the main accounts of the Balance Sheets as of 30/06/2011, 30/06/2010 and 30/06/2009 (12 months each), which are detailed below:

BALANCE SHEET
Balance sheet date	30JUN2011	30JUN2010	30JUN2009
Type of balance sheet	Annual	Annual	Annual
Period	12 months	12 months	12 months
Currency	Pesos	Pesos	Pesos
Exchange rate per US$	18.3	18.35	23.17
A S S E T S
Current Assetsd	13,771,571.00		13,824,168.00
Fixed	20,847,901.00	20,650,580.00	22,142,665.00
Total Assets	34,619,472.00	20,650,580.00	35,966,833.00
L I A B I L I T I E S
Current liabilities	10,251,551.00	11,186,835.00	14,384,107.00
Long term	1,037,328.00	1,423,683.00	1,435,055.00
TOTAL LIABILITIES	11,288,879.00	12,610,518.00	15,819,162.00
S H A R E H O L D E R S' E Q U I T Y
Total shareholders equity	23,330,593.00	22,525,350.00	20,147,671.00
Total Liab. / Sh. equity	34,619,472.00	35,135,868.00	35,966,833.00
Sales	40,922,758.00	49,752,340.00	52,581,188.00
Profit (Loss)	128,226.00	2,612,781.00	597,892.00

R A T I O
Liquidity ratio	1.34	Current assets / Current liabilities
Debt-to-equity ratio	227.58 %	(Shareholders' equity / Current liabilities %)
Profitability margin	0.31 %	(Profits / Sales %)
Working capital	3,520,020.00	(Current assets - Current liabilities)

FINANCIAL SITUATION

SATISFACTORY

According to the last Financial Statement, the company's Financial Standing is considered to be Satisfactory as it has an adequate liquidity ratio. Working capital is positive and allows an orderly fulfillment of payments. Debt-to-equity ratio is acceptable. Economic results have been satisfactory.

The external situation and lack of credit will determine a small reduction in profitability and sales volume, expecting a small but positive result. The gradual replacement of manufacture by import at low cost and addind new lines of business oriented to the same clients' database will improve results for 2011-2012 fiscal year.

NEOSUL S.A. is an industrial company with a solid history and image in Uruguay and in the region.

In the past years, it has gone through a reduction process in view of the loss of competitiveness for growing industrial costs and industrial scale and domestic market reasons. Such process is complemented with the entry to the commercial activity as bulk import of finished products, mainly from orient. The strategy is having positive results, but it becomes slow because of the lack of credit.

Property of company comments

Subject is referred to have its own property appraised at US$700,000.=, in addition to industrial equipment.

INSURANCE

COMPANY	AGAINST	EXPIRATION	AMOUNT
RSA	All risk	30/06/2012	US$1,000,000.=

PAYMENTS RECORD: TRADE REFERENCES

(Confidential Information)

Supplier: LAJA S.A.	Tel.: 598 22096464	Country: URUGUAY
Goods/Services? : PVC Compounds
Highest credit? : US$ 30,000.=	Outstanding debt? : US$16,160.98
Client since? : 2000	Terms? : 60 days	Performance? : Prompt
Comments : Good Client
Supplier: SOLVAY-INDUPA	Tel.: 5411 43162354	Country: ARGENTINA
Goods/Services? : PVC
Highest credit? : UNLIMITED
Client since? : 2002	Terms? : 90 days	Performance? : Prompt
Comments : Good Client.
Supplier: TEX-FABRIC	Tel.: 5423 23428729	Country: ARGENTINA
Goods/Services? : Fabrics
Highest credit? : UNLIMITED
Client since? : 10 years	Terms? : 30, 60, 90 days	Performance? : Prompt
Comments : Good Client.
Supplier: BMD	Tel.: 54911 33764675	Country: ARGENTINA
Goods/Services? : Fabrics
Highest credit? : UNLIMITED
Client since? : 12 years	Terms? : 70 days	Performance? : Prompt
Comments : Good Client.

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

Supplier	Country	Comment
INTERQUIMICA S.A.	URUGUAY
TORRENTE - RIOLSA	URUGUAY	Good Client.
BMD Textiles	BRAZIL

BANKING INFORMATION

Bank

ITAÚ URUGUAY SA

DISCOUNT BANK (LATIN AMERICA)

BILBAO VIZCAYA ARGENTARIA URUG

BCO. REP. ORIENTAL DEL URUGUAY

The following information is registered as of 30/12/2011: BANCO DE LA REPÚBLICA ORIENTAL DEL URUGUAY RATING: 2B PS$ US$ CURRENT - NON SELF-LIQUIDATING 131,218.98 0.00 NON COMPUTABLE GUARANTEE 0.00 25,000.00 TOTAL ALLOWANCES 9,185.30 0.00 BANCO ITAÚ URUGUAY SA RATING: 2B CURRENT - NON SELF-LIQUIDATING 0.00 82,170.52 COMPUTABLE GUARANTEES 0.00 132,564.08 NON COMPUTABLE GUARANTEES 0.00 197,435.92 TOTAL ALLOWANCES 1,250.00 600.00 CONTINGENCIES 250,000.00 37,829.48 DISCOUNT BANK (LATIN AMERICA) S.A. RATING: 1A CURRENT - CREDITS WITH SELF-LQUIDATING GUARANTEES 0.00 162,707.03 COMPUTABLE GUARANTEES 0.00 160,808.23 NON COMPUTABLE GUARANTEES 0.00 320,391.77 BANCO BILBAO VIZCAYA ARGENTARIA URUGUAY S.A. RATING: N/R NON COMPUTABLE GUARANTEES 0.00 545,000.00 RATINGS: 1C: Debtors with strong creditworthiness. They are very likely to fulfill with their obligations on due time and manner. 2B: Potential Problem; due balance of up to 59 days.

GENERAL INFORMATION

REPUTATION
NOTHING AGAINST COMPANY

CREDIT OPINION

Comnsulted Credit Amount :	MAXIMUM?
Suggested Credit :	US$.50,000.=
NOTE : The opinion given is confidential, referential and with out liability.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.64
UK Pound	1	Rs.78.35
Euro	1	Rs.65.79

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.