MIRA INFORM REPORT

Report Date :

10.03.2012

IDENTIFICATION DETAILS

Name :	COLORTEX PERU S.A.
Registered Office :	Salaverry 3115, San Isidro, Post code Lima,27
Country :	Peru
Financials (as on) :	31.12.2010
Date of Incorporation :	22.08.2000
Com. Reg. No.:	Electronic Record 11210152
Legal Form :	Joint Stock Company
Line of Business :	Marketing of fabrics
No. of Employees :	16

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$150,000.
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^th, 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	COLORTEX PERU S.A.
TAXPAYER REGISTRATION	RUC 20475309899
MAIN ADDRESS	Salaverry 3115, San Isidro
POSTAL CODE	Lima,27
PROVINCE / DEPARTAMENT	Lima / Lima
STATE / REGION	Lima
COUNTRY	PERU
TELEPHONE	(511) 2643355/2640960
E-MAIL	monica.osorio@colortexperu.com
WEB	www.colortexperu.com.pe

SUMMARY
Date of foundation	2000
Capital stock	S/.14,395,557.= Nuevos Soles
Shareholders' equity	27,307,040.00 Nuevos Soles (31DEC2010)
Annual revenues	US$ 22,600,386.43 Nuevos Soles (31DEC2010)
Profits (loss)	6,040,322.00 Nuevos Soles (31DEC2010)
permanent employees	16
Chief Executive	ATUN LEON, JAIME VICTOR
Disposition	Satisfactory.- Important data and some figures.
Payments policy	P2 Usually to terms/good
Credit (**)	(B): Risk is Moderate. Within Average. Satisfactory.

CREDIT OPINION
Requested credit	CREDIT LIMIT
Suggested credit (*)	US$150,000.=
(*) After analyzing different factors and other opinions.

LEGAL BACKGROUNDS
LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	22AUG2000
STARTING DATE	22/10/1990
PLACE OF REGISTRY	Lima
NOTARY OFFICE	Manuel Reátegui Tomatis
DURATION	Indefinite.
REGISTRATION	Electronic Record 11210152
CURRENT PAID-IN CAPITAL	S/.14,395,557.= Nuevos Soles
SHAREHOLDERS EQUITY	27,307,040.00 Nuevos Soles (31DEC2010)
LISTED AT STOCK EXCHANGE	No
CURRENT EXCHANGE RATE (US$)	S/.2.68 per 1.00 USADollar
COMMENTS	Since its establishment Subject Company has not changed in its name. According to SUNAT, the company under investigation is incorporated into the scheme of VAT Withholding Agents (RS174-2005) from 01/10/2005.

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
ATUN LEON, JAIME VICTOR	General Manager	50%	22/09/00
ATUN LEON, ANTHONY ALBERT	Manager	50%	22/09/00

WHO IS WHO?

ATUN LEON, JAIME VICTOR

NATIONALITY

Peruvian

D.O.B.

26DEC1966

ID

DNI 08272540

CIVIL STATUS

Married to Fortune Levy Fleischman

PROFESSION

Industrial Engineer

TAX ID

10082725402

BACKGROUND INFORMATION

Sets up tax domicile in Av. Salaverry 3119, San Isidro/Lima,27.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
LUMICENTER S.A.		20175346962	PERU

ATUN LEON, ANTHONY ALBERT

NATIONALITY

Peruvian

D.O.B.

07JAN1973

ID

DNI 09342820

CIVIL STATUS

Married to Elit Redensky Galsky

DOMICILE

Aurelio Miro Quesada 520 Dpto. 901, San Isidro, Lima

PROFESSION

Industrial Engineer

TAX ID

10093428205

BACKGROUND INFORMATION

Reports tax domicile in Av. Salaverry 3115, San Isidro/Lima,27.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
LUMICENTER S.A.		20175346962	PERU

BUSINESS HISTORY

The origins date back to 1968, year when Mr. Gabriel Atún founded Comercial Elsie S.A. At that time the company was dedicated exclusively to the importation and marketing of linings for sacks.
 
During the next 3 decades the business has incorporated some new product lines aimed basically to the same customers, but after the crisis caused by the El Niño Phenomenon of 1998, Comercial Elsie had to develop new business lines that would allow access to other customers, whereas becomes the first company to import denim.
 
Their new products were very successful in the market, achieving introduction of major brands in Peru.
 
In 2000, his sons decided to found the company under investigation COLORTEX PERU S.A.
 
In the Articles of Incorporation appear as founders of this Company, Messrs. Jaime Víctor Atún León and Anthony Albert Atún León.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
LUMICENTER S.A.	PERU	20175346962	Related

BUSINESS

SIC Classification
2 2 - TEXTILE MILL PRODUCTS (Weaving mills, cotton, Synthetics, hosiery, woven carpets and rugs, yarn, fabrics, etc.)

Main activity

Marketing of fabrics. Subject has 4 lines of business: Sport wear, Fashion wear, Elegant Winter and Winter EWEAR.
 
Products: Denim, corduroy, drill, fabrics for dresses, skirts, pants and blouses, fabrics for suits, fashion knits, cotton, and all kinds of prints.
 
Wholesaler 100%
 
 

Import

Yes

Country

China, Germany, Morocco, Pakistan, Panama, Taiwan, Thailand

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2012	1,007,099.00
2011	16,775,461.00
2010	16,068,220.00
2009	9,682,837.00
2008	13,723,623.00
2007	13,907,121.00

Export

No

% CASH SALES / METHOD

50%

% Credit SALES / Terms

50%drafts 90 days

% FOREIGN PURCHASES

100%

SELLING TerritorY

Domestic market 100%

EMPLOYEES

16

LOCATION

OTHER PREMISES

Tax Domicile / Administrative Offices: Salaverry 3115, San Isidro, Lima / Lima 27. Tel.: (511) 2643355/2640960 Store: Antigua Carretera Panamericana Sur Km.19.2, Fundo Villa, Villa El Salvador/Lima,43. Tel: (511) 7153900 Warehouses: - Av. Bolognesi 501, Int. B2, Urb. Los Ficus, Santa Anita/Lima,43 - Av. Néstor Gambeta s/n ex-Fundo La Tabuada (Av. N. Gambetta Cdra.47), Callao/Callao,1 - Av. Guardia Chalaca Km. 1802, Bellavista/Callao,2 - Av. Néstor Gambeta km. 14.5 (lt1-2), Bellavista/Callao,2 - Av. República de Argentina 344, Callao/Callao,1 - Pasaje El Sol Km. 130, Callao/Callao,1 - Calle 1, Mza. D, Lte. 3, Urb. Industrial Bocanegra, Callao/Callao,1 - Av. República de Argentina 4006, Urb. Tarapacá, Callao/Callao,1 - Calle Centenario s/n, Pasaje Néstor Gambeta (Sub Lote 3), Callao/Callao,1 - Av. Bocanegra 274, Z.I. Bocanegra, Callao/Callao,1 - Carretera Panamericnaa Sur Antigua Km. 19.2, Fundo Villa (Lt. Naranjal 2 alt.cruce huaylas y panam) Villa El Salvador/Lima,43 - Av. Oquendo Mz. H-l, Lt. 0, Callao/Callao,1 - Jr. Abtao 649, La Victoria/Lima,13

Comments

Their customers are basically clothing makers, distributors, wholesalers and retailer companies.

FINANCIAL INFORMATION

Interviewee(s)

Magaly Cruz

Position(s)

Accountant

Disposition

Satisfactory.- Important data and some figures.

Information provided

The Accountant gave us operational and commercial details and key figures of the last balance sheet available at 31/12/2010 (12 months), expressed in Nuevos Soles.
 
It should be noted we also resorted to various indirect sources to complete information.

BALANCE SHEET
Balance sheet date	31DEC2010
Type of balance sheet	General
Period	12 months
Currency	Nuevos Soles
Exchange rate per US$	2.8
A S S E T S
Current Assetsd	49,486,198.00
Fixed	3,667,005.00
Total Assets	53,153,203.00
L I A B I L I T I E S
Current liabilities	25,846,163.00
Long term	0.00
TOTAL LIABILITIES	25,846,163.00
S H A R E H O L D E R S'  E Q U I T Y
Total shareholders equity	27,307,040.00
Total Liab. / Sh. equity	53,153,203.00
Sales	63,281,082.00
Profit (Loss)	6,040,322.00

RATIO
Liquidity ratio	1.91	Current assets / Current liabilities
Debt-to-equity ratio	105.65 %	(Shareholders' equity / Current liabilities %)
Profitability margin	9.55 %	(Profits / Sales %)
Working capital	23,640,035.00	(Current assets - Current liabilities)

FINANCIAL SITUATION

SATISFACTORY
According to the last Financial Statement, the company's Financial Situation is considered to be Satisfactory as it shows an adequate higher-than-average liquidity ratio. Working capital is positive and allows an orderly fulfillment of payments. Debt-to-equity ratio is acceptable. Economic results have been satisfactory. 
 
Besides, the Subject is well reputed In business circles.
 
Also, Subject's credit experience with financial sector entities is normal, according to latest report from the SBS (Superintendency of Banking and Insurance).

INSURANCE

COMPANY	AGAINST	EXPIRATION	AMOUNT
MAPFRE PERU CIA. DE SEG. Y REASEG.	Not specified.	Not specif	Not specified.

PAYMENTS RECORD: TRADE REFERENCES

(Confidential Information)

Supplier: Agencia de Aduana José Alfonso Silva López	Tel.: (511) 6138400	Country: PERU
Goods/Services? : Customs service
Highest credit? : Unlimited	Outstanding debt? : 0
Client since? : 6 years	Terms? : 90 days	Performance? : Prompt
Supplier: Orbis Agente de Aduana S.A.C	Tel.: (511) 4571166	Country: PERU
Goods/Services? : Customs service
Highest credit? : Unlimited	Outstanding debt? : 0
Client since? : 7 years	Terms? : 120 days	Performance? : Prompt
Supplier: Aduamérica S.A.	Tel.: (511) 6255000	Country: PERU
Goods/Services? : Customs service
Highest credit? : Unlimited	Outstanding debt? : 0
Client since? : 2007	Terms? : 30,60,90 days	Performance? : Prompt

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

Supplier	Country	Comment
Agencia de Aduana J y N Asociados	PERU

CREDIT HISTORY

The names of the foreign suppliers they deal with was not revealed.
 
Foud no of protested documents, accounts closed, canceled credit cards against this company. Also no coercive debt collection is reported or omissions in the payment of their taxes/contributions to the stateand/or arrears in compulsory payment to pension fund administrators.

BANKING INFORMATION

Bank

CONTINENTAL

SCOTIABANK

The subject is a customer of those banks, which when consulted told us that in compliance with current legal regulations, can not provide data on their customer movements out of respect to banking secrecy. However, through other sources researched we know that Subject Company makes use of banking facilities without adverse information.

SUPERINTENDENCY OF BANK & INSURANCE (SBS)

Debt structure for bank. SBS Latest Consolidated Credit Report as of : 31/01/2012

Bank	Debt Rating	Current Debt
		S/.	US$
CREDITO	NORMAL	245,363.00	3,397,969.00
SCOTIABANK	NORMAL	1,360,538.00	1,548,243.00
CONTINENTAL	NORMAL	4,497,997.00	4,274,546.00
Total		6,103,898.00	9,220,758.00
Guarantees			1,021,990.00

CONSOLIDATED DEBT (ALL BANKS)                              ENTITIES NUMBER : 3                           31/01/2012

		Domestic Currency	Foreign Currency
LOANS	:		488,667.00
DISCOUNTS	:	6,042,068.00
FINANCIAL LEASING	:		27,965.00
FOREIGN TRADE	:		8,027,684.00
OTHER INDIRECT CONTINGENT DEBTS	:		640,121.00
	:	61,830.00	36,321.00
		--------------------------------------------	--------------------------------------------
TOTAL DEBT	:	6,103,898.00	9,220,758.00
		=========================	=========================

Comments :

The SBS gives 100%NORMAl rating from 31/12/2009.

RATING DESCRIPTION ACCORDING TO THE SBS (Caption)
Normal	Good Finantial Situation, Prompt payments, Consistent information. Increasing Trend, Creditworthy.
Potential Problem	Satisfactory Finantial Situation but cash flow can be weak. Irregular payments. Irregular Trend.
Deficient	Fair Finantial Situation, cash problems, profits shortage, delayed and overdue payments.
Doubtful	Heavy Finantial Situation, liquidity shotage, notorious delayed payments, Judicial Collection, Bad Management.
Loss	Bad Finantial Situation, Insufficient funds, declared bankruptcy, debt default.

GENERAL INFORMATION

REPUTATION

NOTHING AGAINST COMPANY

CREDIT OPINION

Consulted Credit Amount :	CREDIT LIMIT
Suggested Credit :	US$150,000.=
NOTE : The opinion given is confidential, referential and with out liability.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.02
UK Pound	1	Rs.79.00
Euro	1	Rs.66.18

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.