MIRA INFORM REPORT

Report Date :

06.11.2012

IDENTIFICATION DETAILS

Name :	DISTRIBUIDORA Y CONVERTIDORA INDUSTRIAL S.A. DE C.V.

Registered Office :	San Francisco No. 12,Col. San Francisco Cuautlalpan, 53560 Municipio Naucalpan

Country :	Mexico

Date of Incorporation :	18.07.1985

Legal Form :	Stock Company of Variable Capital

Line of Business :	Marketing of dyes and chemicals of high quality.

No. of Employees :	38

RATING & COMMENTS

MIRA’s Rating :

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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Mexico

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

MEXICO - ECONOMIC OVERVIEW

Mexico has a free market economy in the trillion dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is roughly one-third that of the US; income distribution remains highly unequal. Since the implementation of the North American Free Trade Agreement (NAFTA) in 1994, Mexico's share of US imports has increased from 7% to 12%, and its share of Canadian imports has doubled to 5%. Mexico has free trade agreements with over 50 countries including Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan - putting more than 90% of trade under free trade agreements. In 2007, during its first year in office, the Felipe CALDERON administration was able to garner support from the opposition to successfully pass pension and fiscal reforms. The administration passed an energy reform measure in 2008 and another fiscal reform in 2009. Mexico''s GDP plunged 6.2% in 2009 as world demand for exports dropped, asset prices tumbled, and remittances and investment declined. GDP posted positive growth of 5.4% in 2010 and 3.8% in 2011, with exports - particularly to the United States - leading the way. The administration continues to face many economic challenges, including improving the public education system, upgrading infrastructure, modernizing labor laws, and fostering private investment in the energy sector. CALDERON has stated that his top economic priorities remain reducing poverty and creating jobs.

Source : CIA

IDENTIFICATION

CORRECT COMPANY NAME

DISTRIBUIDORA Y CONVERTIDORA INDUSTRIAL S.A. DE C.V.

TRADE NAME

DICOISA

TAXPAYER REGISTRATION

RFC DCI850718EL8

MAIN ADDRESS

San Francisco No. 12,Col. San Francisco Cuautlalpan

POSTAL CODE

53560

PROVINCE / DEPARTAMENT

Municipio Naucalpan

STATE / REGION

Estado de Mexico

COUNTRY

MEXICO

TELEPHONE

(5255) 53571725

E-MAIL

elimonjarasd@dicoisa.com.mx

WEB

www.dicoisa.com.mx

COMMENTS

Other email:

hugomendez@dicoisa.com.mx

zsantana@dicoisa.com.mx

info@dicoisa.com.mx

admindicoisa@dicoisa.com.mx

SUMMARY
Date of foundation	1985
Capital stock	No specified
Annual revenues	US$ 12,848,262.49 (31DEC2009)
permanent employees	38
Chief Executive	MORALES PONCE, ERNESTO
Disposition	MODERATE (Some general information and some figures).
Payments policy	Usually to terms/good

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
LISTED AT STOCK EXCHANGE	No
CURRENT EXCHANGE RATE (US$)	Ps$12.90 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*	C.E.O.
MORALES MONJARAS, ERNESTO	Sales Director
MENDEZ DIAZ, HUGO	General Comptroller

WHO IS WHO?


MORALES PONCE, ERNESTO
NATIONALITY	Mexican
PROFESSION	Eng.


MORALES MONJARAS, ERNESTO
NATIONALITY	Mexican
CIVIL STATUS	Married
PROFESSION	Eng.


MENDEZ DIAZ, HUGO
NATIONALITY	Mexican
PROFESSION	C.P.A.

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 it currently occupies, 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

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

Export

% CASH SALES / METHOD

25%

% Credit SALES / Terms

75% (30-45-60-days)

% DOMESTIC PURCHASES

10%

% FOREIGN PURCHASES

90%

SELLING TerritorY

Domestic market - 100%

EMPLOYEES


PREMISES	Rented
VALORIZED IN	Ps$60,000.= Pesos
AREA	3,000 m2
OTHER PREMISES	The address in the identification corresponds to the administrative and sales offices, warehouse and tax domicile of the company. The company pays a rent of about Ps$ 60,000 Pesos monthly for occupying those facilities. Property has a surface area of approximately 3,000 square meters. As reference they are located between Toluca Boulevard and Adolfo Lopez Mateos Boulevard, 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:

-Industrias Maseca

-Industrias Bachoco

-Effem México

-Minsa

-Caminos y Puentes Federales de Ingresos y Servicios Conexos

FINANCIAL INFORMATION


Interviewee(s)	Zyzlila Santana
Position(s)	Purchase Co-ordinator
Disposition	MODERATE (Some general information and some figures).
Information provided	We interviewed Ms. Zyzlila Santana (Purchases Coordinator) who assisted us by confirming and updating general information regarding the company contained in this report. Stated per orders of the Management can not provide financial statements of the company as that information is considered confidential. Only stated the company is selling $15.7 million pesos monthly on average.


SALES	US$ 12,848,262.49 (31DEC2009)
FINANCIAL SITUATION	NN: UNDETERMINED Subject's Financial Position is considered UNDETERMINED, since there are no financial figures allowing a financial analysis of the results in its last fiscal year.
Property of company comments	-Transportation equipment -Machinery and equipment -Furniture and office equipment -Computer equipment Etc.
Insurance Comments	We could not access into that kind of information.

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Supplier: SUN CHEMICAL S.A. DE C.V.	Tel.: (55) 53332284.	Country: MEXICO
Goods/Services? : Inks
Highest credit? : No specified
Client since? : Sev.Yrs	Terms? : Transfer 30 days	Performance? : Prompt
Comments : Average Monthly Purchase: Ps$350,000.= GOOD CLIENT
Supplier: ENVASES DE PAPEL AVENTIS S.A. DE C.V. ENPASA	Tel.: (55) 26204303.	Country: MEXICO
Goods/Services? : Paper containers
Highest credit? : n.a.
Client since? : years	Terms? : 30 days	Performance? : Prompt
Comments : Average Monthly Purchase: Varying amounts, GOOD CUSTOMER
Supplier: CARTONES Y CORRUGADOS INDUSTRIALES S.A. DE C.V	Tel.: (55) 53174178.4178.	Country: MEXICO
Goods/Services? : Paper packaging
Highest credit? : No specified
Client since? : Sev.Yrs.	Terms? : 30 days	Performance? : Prompt
Comments : Average Monthly Purchase: Varying amounts; GOOD CUSTOMER

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

Supplier	Country	Comment
BHAVI INTERNATIONAL LTD.	INDIA
NANTONG LISI ORGANIC CHEMICAL CO. LTD.	CHINA
AGROFERT HOLDING A.S.	CZECH REPUBLIC
AJANTA CHEMICAL INDUSTRIES	INDIA

BANKERS

Banking is with:

Banco Nacional de México S.A.

BBVA Bancomer S.A.

GENERAL INFORMATION


REPUTATION
NOTHING AGAINST COMPANY

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.08
UK Pound	1	Rs.86.69
Euro	1	Rs.69.37

INFORMATION DETAILS

Report Prepared by :

MNL

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.