MIRA INFORM REPORT

Report Date :

09.01.2013

IDENTIFICATION DETAILS

Name :	AMERICAN SPORTSWEAR S.A.
Registered Office :	Punta Pacífico Calle Punta Granada, Torre Metro Bank, Piso 14, 0831-02177
Country :	Panama
Financials (as on) :	31.03.2012
Date of Incorporation :	09.04.1987
Legal Form :	Joint-Stock Company
Line of Business :	Retail Trade Apparel and Accessory Stores, Boutiques, Bazaars. (Bazaars, Boutiques, Design Houses.)
No. of Employees :	350

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

Status :	Good
Payment Behaviour :	Regular
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 (31.03.2011)	Current Rating (30.06.2012)
Panama	B1	B1

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

PANAMA - ECONOMIC OVERVIEW

Panama's dollar-based economy rests primarily on a well-developed services sector that accounts for more than three-quarters of GDP. Services include operating the Panama Canal, logistics, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. Economic growth will be bolstered by the Panama Canal expansion project that began in 2007 and is scheduled to be completed by 2014 at a cost of $5.3 billion - about 10% of current GDP. The expansion project will more than double the Canal''s capacity, enabling it to accommodate ships that are too large to traverse the existing canal. The United States and China are the top users of the Canal. Panama also plans to construct a metro system in Panama City, valued at $1.2 billion and scheduled to be completed by 2014. Panama''s booming transportation and logistics services sectors, along with aggressive infrastructure development projects, have lead the economy to continued growth in 2011. Strong economic performance has not translated into broadly shared prosperity, as Panama has the second worst income distribution in Latin America. About 30% of the population lives in poverty; however, from 2006 to 2010 poverty was reduced by 10 percentage points, while unemployment dropped from 12% to less than 3% of the labor force in 2011. A US-Panama Trade Promotion Agreement was approved by Congress and signed into law in October 2011. Seeking removal from the Organization of Economic Development''s gray-list of tax havens, Panama has also recently signed various double taxation treaties with other nations.

Source : CIA

IDENTIFICATION

CORRECT COMPANY NAME

AMERICAN SPORTSWEAR S.A.

TAXPAYER REGISTRATION

RUC 21154184190522

MAIN ADDRESS

Punta Pacífico Calle Punta Granada, Torre Metro Bank, Piso 14,

POSTAL CODE

0831-02177

PROVINCE / DEPARTAMENT

Panamá / Panamá

COUNTRY

PANAMA

TELEPHONE

(507) 2060555

E-MAIL

bcortes@thassap.com

WEB

www.thassap.com

SUMMARY
Date of foundation	1987
Capital stock	US$100,000,000.= Dollars
Shareholders' equity	136,500,000.00 US$ Dollars (31MAR2012)
Annual revenues	US$ 168,900,000.00 US$ Dollars (31MAR2012)
Profits (loss)	50,200,000.00 US$ Dollars (31MAR2012)
permanent employees	350
Chief Executive	SOLLY AZRAR, SELIM
Disposition	Excellent.- Full information and updated figures.

LEGAL BACKGROUNDS
LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	09APR1987
PLACE OF REGISTRY	Panama
NOTARY OFFICE	2nd. of Circuit.
DURATION	Indefinite.
REGISTRATION	190522, Vol. 185, Entry 2516/ Deed 12(07/01/1988)
INITIAL CAPITAL	300 non par value shares
CURRENT PAID-IN CAPITAL	US$100,000,000.= Dollars
SHAREHOLDERS EQUITY	136,500,000.00 US$ Dollars (31MAR2012)
CLASS OF SHARES	Registered
LISTED AT STOCK EXCHANGE	No
SHARE VALUE	US$10,000.= Dollars
CURRENT EXCHANGE RATE (US$)	B/.1.= per USD1
COMMENTS	The share capital amounts to US $ 100,000,000. = dollars , divided into 10,000 preferred shares, non-cumulative, registered and no redeemable , with a par value of U.S. $ 10,000. = Dollars each

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
SOLLY AZRAR, SELIM	President	25%
ATTIE DJAMOUS, ISAAC	Vice President
ATTIE, ABRAHAM ALBERTO	Director/Secretary	50%
AZRAK, MOISES	Director / Treasurer	25%
CORTES, BOLIVAR	Financial Manager
VARELA HORNA, SILVIA PATRICIA	Production Coordinator

WHO IS WHO?

SOLLY AZRAR, SELIM

NATIONALITY

Panamanian

D.O.B.

1979

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
FRENCH FASHION CORP		430340033290292	PANAMA

ATTIE, ABRAHAM ALBERTO

NATIONALITY

Panamanian

D.O.B.

1952

PROFESSION

Businessman

BACKGROUND INFORMATION

Person of Hebrew origin.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
NOVATEX INTERNACIONAL S.A.	Executive President	1210499121609	PANAMA

AZRAK, MOISES

NATIONALITY

Panamanian

D.O.B.

1985

VARELA HORNA, SILVIA PATRICIA

NATIONALITY

Panamanian

PROFESSION

University graduate

BACKGROUND INFORMATION

She studied at the Technological University of Panama, specifically has a Degree in Maritime and Port Engineering (2007-2011).
She is earning a Master's degree in Logistics Systems with emphasis in Supply Chain Management (2012 and culminating in 2014).
 
She joined American Sportswear S.A. in March 2012.
 
She is dedicated to perform coordinations of the Tommy Hilfiger line, direct communication with suppliers, paying bills, etc..
 
Formerly worked in Import area of the firm Noritex S.A. (06-2011 to 02-2012 period)

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
NORITEX S.A.		1791811402001	PANAMA
RIPLEY COLOMBIA INVERSIONES S.A.		900513140	COLOMBIA

BUSINESS HISTORY

Signed the Articles of Incorporation:
- Alberto Antebi Missrie.
- Abraham Alberto Attie.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
INCSA S.A.	PANAMA	23654654481	Related
NOVATEX INTERNACIONAL S.A.	PANAMA	1210499121609	Related
PANAMA DEVELOPMENT S.A	PANAMA	7732671485914	Related

BUSINESS

SIC Classification
5 6 - RETAIL TRADE APPAREL AND ACCESSORY STORES, BOUTIQUES, BAZAARS. (Bazaars, Boutiques, Design houses.)

Main activity

Import, representation and distribution of apparel and footwear for men, women and children,
 
Specializing in the line of famous clothing manufacturer Tommy Hilfiger. The company offers a wide selection of clothing at reasonable prices to customers not only in Panama, but throughout Central America, the Caribbean and South America.
 
Subject provides beautiful and fashionable clothes like jeans, shirts, shorts and more.

Import

Yes

Country

USA and China.

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2011	80,000,000.00

Export

Yes

COUNTRY

Central America and the Caribbean.

% CASH SALES / METHOD

50%

% Credit SALES / Terms

50% (Terms: 30, 90 days)

% Ventas exterior (Paises)

85%

% FOREIGN PURCHASES

100%

SELLING TerritorY

15% Domestic market

EMPLOYEES

350

LOCATION
PREMISES	Own
AREA	4,000 m2
OTHER PREMISES	Headquarters operate at the address in the heading of report. LOGISTICS OFFICE: Calle 15 y Avenida Santa Isabel, Colon Foreign Trade Zone, Panama.

Comments

Imports: 90% payments by transfer and 10% with letter of credit.
 
Outside Panama have as client the firm Apparel St Maarten - Puerto Rico.

FINANCIAL INFORMATION

Interviewee(s)

Mr. Bolívar Cortés.

Position(s)

Financial Manager

Disposition

Excellent.- Full information and updated figures.

Information provided

The person interviewed confirmed operational data and indicated that have not undergone major changes and he also gave us a summary of their Balance Sheet for the fiscal period from 01/04/2011 to 31/03/2012, which we place alongside the figures of their previous three years obtained from our files, expressed in U.S. dollars.
 
Some supplementary information of interest has been found in public sources.

BALANCE SHEET
Balance sheet date	31MAR2012	31MAR2011	31MAR2010	31MAR2009
Type of balance sheet	Annual	Annual	Annual	Annual
Period	12 months	12 months	12 months	12 months
Currency	US$ Dollars	US$ Dollars	US$ Dollars	US$ Dollars
Exchange rate per US$	1	1	1	1
A S S E T S
Current Assetsd	124,800,000.00	104,500,000.00	83,700,000.00	100,100,000.00
Fixed	31,600,000.00	34,300,000.00	36,900,000.00	11,200,000.00
Others				23,800,000.00
Total Assets	156,400,000.00	138,800,000.00	120,600,000.00	135,100,000.00
L I A B I L I T I E S
Current liabilities	16,600,000.00	7,300,000.00	22,800,000.00	13,500,000.00
Long term	3,300,000.00	100,000.00	4,700,000.00
TOTAL LIABILITIES	19,900,000.00	7,400,000.00	27,500,000.00
S H A R E H O L D E R S'  E Q U I T Y
Total shareholders equity	136,500,000.00	131,400,000.00	93,100,000.00	121,600,000.00
Total Liab. / Sh. equity	156,400,000.00	138,800,000.00	120,600,000.00	135,100,000.00
Sales	168,900,000.00	129,000,000.00	117,200,000.00	126,000,000.00
Profit (Loss)	50,200,000.00	42,700,000.00	28,400,000.00	38,000,000.00

R A T I O
Liquidity ratio	7.52	Current assets / Current liabilities
Debt-to-equity ratio	822.29 %	(Shareholders' equity / Current liabilities %)
Profitability margin	29.72 %	(Profits / Sales %)
Working capital	108,200,000.00	(Current assets - Current liabilities)

FINANCIAL SITUATION

A+: GOOD
Taking into account the last Financial Statement submitted and/or other analyzed factors, the company's Financial Situation is considered to be GOOD for the following reasons:
- Similar or higher-than-average liquidity ratio in the sector.
- Working capital is positive and allows it an orderly - fulfillment of payments. 
- Shareholders' equity largely exceeds debt.
- Economic and financial results have been satisfactory. 
- It has a positive trend.
- The support of the owners is significant.
 
American Sportswear SA, is a company with a long track record, referred to be a leader in its field, which during the time it has been operating has no been reported operational problems.

Property of company comments

Main fixed assets include computer equipment and software, improvement of premises, vehicles, etc.

INSURANCE

COMPANY	AGAINST	EXPIRATION	AMOUNT
ASSICURAZIONI GENERALI S.P.A. SUCURSAL	All risk	31/03/2012
CIA. INTERNACIONAL DE SEGUROS	All risk

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Supplier: DHL	Tel.: 507 2713451	Country: PANAMA
Goods/Services? : Courier service
Highest credit? : US$ 900.=
Client since? : 2002	Terms? : 30 days	Performance? : Prompt
Supplier: MAERSK PANAMA	Tel.: 507 2062200	Country: PANAMA
Highest credit? : N/A
Comments : The company does not provide trade references.
Supplier: FEDERAL EXPRESS CORP.	Tel.: 507 2713838	Country: PANAMA
Highest credit? : N/A
Comments : The company does not provide trade references.

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

LAWSUITS

No lawsuits have been filed against Subject Company.
 

GENERAL INFORMATION

REPUTATION

NOTHING AGAINST COMPANY

CREDIT OPINION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.33
UK Pound	1	Rs.89.05
Euro	1	Rs.72.57

INFORMATION DETAILS

Report Prepared by :

PRL

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.