MIRA INFORM REPORT

Report Date :

24.01.2012

IDENTIFICATION DETAILS

Name :	MODAS DIVERSAS DEL PERU S.A.C.
Registered Office :	Azángaro 246, Cercado Lima,1
Country :	Peru
Financials (as on) :	31.12.2010
Date of Incorporation :	29.01.1999
Com. Reg. No.:	Entry No.11081153 (04.03.1999)
Legal Form :	Closely-held Corporation
Line of Business :	Manufacture of garments, such as pants, jackets, overalls, jumpers, shorts, blouses, Bermuda shorts, sneakers, etc.
No. of Employees :	900-1000

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$401,000
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)
Peru	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

MODAS DIVERSAS DEL PERU S.A.C.

TRADE NAME

MODIPSA

TAXPAYER REGISTRATION

RUC 20423925028

MAIN ADDRESS

Azángaro 246, Cercado

POSTAL CODE

Lima,1

PROVINCE / DEPARTAMENT

Lima

STATE / REGION

Lima

COUNTRY

PERU

TELEPHONE

(511) 4275009 - 4275006 - 4582374

E-MAIL

mzapata@modipsa.com.pe

WEB

www.modipsa.com.pe

COMMENTS

The address Av. Lurigancho 1349, Mangomarca Zárate, included in your request is from the registered office and clothing workshop of the Subject Company. The offices operate at the address in the identification heading.

SUMMARY
Date of foundation	1999
Capital stock	S/.6,368,023.= Nuevos Soles
Shareholders' equity	18,487,007.00 Nuevos Soles (31DEC2010)
Annual revenues	US$ 20,056,028.57 Nuevos Soles (31DEC2010)
Profits (loss)	2,042,687.00 Nuevos Soles (31DEC2010)
permanent employees	900-1000
Chief Executive	DIAZ DIAZ, SEGUNDO LUIS
Disposition	Report prepared through third-party sources.
Payments policy	Usually to terms/good
Credit (**)	Risk is Moderate. Within Average. Satisfactory.

CREDIT OPINION
Requested credit	MAXIMUM
Suggested credit (*)	US$401,000.=
(*) After analyzing different factors and other opinions.

LEGAL BACKGROUNDS
LEGAL STATUS	Closely-held Corporation
DATE OF INCORPORATION	29JAN1999
STARTING DATE	01.04.1999
PLACE OF REGISTRY	Lima
NOTARY OFFICE	Manuel Reátegui Tomatis.
DURATION	Perpetual
REGISTRATION	Entry No.11081153 (04.03.1999)
INITIAL CAPITAL	S/.14,700.= Nuevos Soles
CURRENT PAID-IN CAPITAL	S/.6,368,023.= Nuevos Soles
SHAREHOLDERS EQUITY	18,487,007.00 Nuevos Soles (31DEC2010)
CLASS OF SHARES	Registered
LISTED AT STOCK EXCHANGE	No
CURRENT EXCHANGE RATE (US$)	S/.2.69 per 1 USD

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
DIAZ DIAZ, SEGUNDO LUIS	Executive President	99.98%	29.01.99
DIAZ TAPIA, LUIS OMAR	Shareholder	0.01%
DIAZ TAPIA, YOHANA MERCEDES	Shareholder	0.01%
TAPIA OLORTEGUI, DORA FELICITAS	Director/Admin. Manager
VARGAS BENITES, BERNARDO	Proxy		29.01.99
FELIPA CARRION, JORGE LUIS	Chief Financial Officer
DUEÑAS OCHOA, VICTOR EULOGIO	General Accountant

WHO IS WHO?

DIAZ DIAZ, SEGUNDO LUIS

NATIONALITY

Peruvian

D.O.B.

08APR1953

ID

DNI 09216673

CIVIL STATUS

Married to Felicita Tapia Olórtegui

TELEPHONE

4593018

BACKGROUND INFORMATION

We consulted in the Registry of Ownership of Lima and Callao where 7 real estate were registered under the company name:
- property located in Cercado de Lima
 Registered in File card 320891, Entry 324961, Entry 40523294
- Property located in Cercado de Lima.
 Registered in File card 320891, Entry 40204709
- Property located in Nuevo San Juan.
 Registered in File card 134340, Entry 43042890.
- Property located in Nuevo San Juan.
 Registered in File card 330107, Entry 42880264.
- Property located in Nuevo San Juan.
 Registered in File card 336082, Entry 43152181
- Property located in Nuevo San Juan.
 Registered in File card 134339, Entry 43042882
- Property located in Cercado de Lima.
 Registered in File Card 422876, Entry 40313036

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
MANUFACTURAS SAN ISIDRO SAC		20101298851	PERU

DIAZ TAPIA, LUIS OMAR

NATIONALITY

Peruvian

D.O.B.

31JUL1980

ID

DNI 40671552

DIAZ TAPIA, YOHANA MERCEDES

NATIONALITY

Peruvian

ID

DNI 40983684

TAPIA OLORTEGUI, DORA FELICITAS

NATIONALITY

Peruvian

D.O.B.

06OCT1958

ID

DNI 09216922

VARGAS BENITES, BERNARDO

NATIONALITY

Peruvian

D.O.B.

02AUG1960

ID

DNI 08381874

FELIPA CARRION, JORGE LUIS

NATIONALITY

Peruvian

D.O.B.

15MAY1964

ID

DNI 08721164

BUSINESS HISTORY

Subject Company was incorporated on January 29, 1999 as MODAS DIVERSAS DEL PERU SA.
On March 14, 2001, its legal status was changed to Closely-Held Corporation (S.A.C.), and consequently, its corporate name was changed to the current name, MODAS DIVERSAS DEL PERU S.A.C.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
MANUFACTURAS SAN ISIDRO SAC	PERU	20101298851	Related

BUSINESS

SIC Classification
2 3 - APPAREL AND OTHER FINISHED PRODUCTS MADE FROM FABRICS AND SIMILAR MATERIALS (Suits, coats, shirts, underwear, trousers, blouses, embroideries, etc.)

Main activity

Subject Company is engaged in the manufacture of garments, such as pants, jackets, overalls, jumpers, shorts, blouses, Bermuda shorts, sneakers, etc. under its own brands SQUEZZE", "PIONER", "GZUCK", "NORTON".

Import

Yes

Country

Argentina, Brazil, Canada, Chile, China, Colombia, France, Germany, India, Italy, Japan, Mexico, Pakistan, Spain, Switzerland, Taiwan, Thailand, UK, USA)

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2011	1,643,749.00
2010	3,594,513.00
2009	2,363,226.00
2008	2,521,434.00
2007	1,695,835.00
2006	965,065.00

Export

Yes

COUNTRY

Argentina, Colombia, Ecuador and USA.

Annual exports in US$ (FOB)

YEAR	AMOUNT
2011	1,214,933.00
2010	1,134,680.00
2009	454,574.00
2008	1,114,936.00
2007	1,025,614.00
2006	1,147,811.00

% CASH SALES / METHOD

40%

% Credit SALES / Terms

60% / Draft payable at 60 days

% Ventas exterior (Paises)

05%

SELLING TerritorY

95% (Lima 35%, Provinces 60%)

EMPLOYEES

900-1000

LOCATION
PREMISES	Rented
FLOORS	2
AREA	600 m2
OTHER PREMISES	The above premises that is located in the address in the heading, is owned by MANUFACTURAS SAN ISIDRO S.A. Registered domicile and Clothing Workshop: Av. Lurigancho 1349, Urbanización Industrial Zárate (Mz.N, Lote 1-A) San Juan de Lurigancho (Lima,36). Telef.459.5152/427.5009/458.2374. Branch: Calle Real 999, Sector 17 (No.993) Huancayo - Junín. Another Production Site: Mz.I, Lote 6, Urb. Campoy (frente Calle 7 y Secundario Calle 17) San Juan de Lurigancho (Lima 36).

Comments

MODIPSA has its own plant, with modern and state-of-the-art machinery for making of plain weave like denim, corduroy or twill.
 
It imports denim and inputs for making garments, such as buttons, zippers, rivets, among others, through letters of credti at 90-120 days.
 
MAJOR CLIENTS:
- Manufacturas San Isidro SA (related company)
- Topy Top SA
- La Fábrica
- Hipermercados Metro SA

FINANCIAL INFORMATION

Interviewee(s)

Margarita Zapata

Position(s)

Financial Assistant

Disposition

Report prepared through third-party sources.

Information provided

We spoke with Margarita Zapata (Financial Assistant) who kindly validated operating data, claiming that there have been no further changes. She provided a summary of the last Balance Sheet as of 31/12/2010, expressed in Nuevos Soles (S/.), which is placed next to the previous fiscal year, which was also obtained from direct sources. 
 
Some supplementary information was obtained through third parties and public sources.

BALANCE SHEET
Balance sheet date	31DEC2010	31DEC2009	31DEC2008
Type of balance sheet	Annual	Annual	Annual
Period	12 months	12 months	12 months
Currency	Nuevos Soles	Nuevos Soles	Nuevos Soles
Exchange rate per US$	2.8	2.88	3.1
A S S E T S
Current Assetsd	25,697,571.00	19,280,853.00	17,780,973.00
Fixed	15,936,235.00	14,355,751.00	15,748,132.00
Total Assets	41,633,806.00	33,636,604.00	33,529,105.00
L I A B I L I T I E S
Current liabilities	17,226,796.00	9,664,406.00	8,853,273.00
Long term	5,920,003.00	7,527,879.00	9,411,937.00
TOTAL LIABILITIES	23,146,799.00
S H A R E H O L D E R S'  E Q U I T Y
Total shareholders equity	18,487,007.00	16,444,319.00	15,263,895.00
Total Liab. / Sh. equity	41,633,806.00	33,636,604.00	33,529,105.00
Sales	56,156,880.00	48,588,617.00	45,616,614.00
Profit (Loss)	2,042,687.00	1,180,425.00	1,577,213.00

RATIO
Liquidity ratio	1.49	Current assets / Current liabilities
Debt-to-equity ratio	107.32 %	(Shareholders' equity / Current liabilities %)
Profitability margin	3.64 %	(Profits / Sales %)
Working capital	8,470,775.00	(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 higher-than-average liquidity ratio. Working capital is positive and allows it an orderly fulfillment of payments. Debt-to-equity ratio is acceptable. Economic results have been satisfactory. 

Property of company comments

Subject's assets basically include the following:
- Straight stitch sewing machines and meshing machines.
- A premises located in Jr. de La Unión, rented to its related company Manufacturas San Isidro SAC.

INSURANCE

COMPANY	AGAINST	EXPIRATION	AMOUNT
La Positiva	All risk	Yearly	Not specified

PAYMENTS RECORD: TRADE REFERENCES

(Confidential Information)

Supplier: Coast Cadena	Tel.: (511)3623885	Country: PERU
Goods/Services? : Industrial threads
Highest credit? : US$ 80,000.=	Outstanding debt? : 0.=
Client since? : 1979	Terms? : Draft/60 days	Performance? : Prompt
Supplier: Etiquetas Zalaquett del Perú	Tel.: (511)3492433	Country: PERU
Goods/Services? : Labels
Highest credit? : Open	Outstanding debt? : 0.=
Client since? : 10 years	Terms? : Draft/60 days	Performance? : Prompt

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

Supplier	Telephone	Country	Comment
Química Suiza	(511)2114000	PERU
Industrias Textiles SAC	(511)3261309	PERU
Cía. Industrial Nuevo Mundo	(511)3368110	PERU
Sitamsa	5622373	PERU
Noreste Vicunha		BRAZIL
Multiherrajes		COLOMBIA
Apolo		ARGENTINA

BANKING INFORMATION

Bank

BANCO DE CREDITO DEL PERU

BBVA BANCO CONTINENTAL

CONTINENTAL

Subject's financial transactions are carried out through the above mentioned banks which gave us good references on Subject's accounts and its payment compliance of the assumed obligations. No further details were given.

SUPERINTENDENCY OF BANK & INSURANCE (SBS)

Debt structure for bank. SBS Latest Consolidated Credit Report as of : 30/09/2011

Bank	Debt Rating	Current Debt
		S/.	US$
CREDITO	NORMAL	6,155,233.00
CONTINENTAL	NORMAL	307,427.00
Total		6,462,660.00
Guarantees		4,082,579.00

CONSOLIDATED DEBT (ALL BANKS)                              ENTITIES NUMBER : 2                           30/11/2011

		Domestic Currency	Foreign Currency
FINANCIAL LEASING	:	5,405,604.00
CREDIT CARDS	:	4,362.00
OTHER INDIRECT CONTINGENT DEBTS	:	1,031,478.00
	:	21,216.00
		--------------------------------------------	--------------------------------------------
TOTAL DEBT	:	6,462,660.00
		=========================	=========================

CREDIT OPINION

Comnsulted Credit Amount :

MAXIMUM

Suggested Credit :

US$401,000.=

NOTE : The opinion given is confidential, referential and with out liability.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.24
UK Pound	1	Rs.78.13
Euro	1	Rs.64.79

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.