MIRA INFORM REPORT

Report Date :

08.11.2013

IDENTIFICATION DETAILS

Name :	TECHNOENDS S.A.
Registered Office :	800 Mts. Norte de Fábrica de galletas Pozuelo, San José / San José
Country :	Costa Rica
Date of Incorporation :	03.01.2010
Legal Form :	Joint-Stock Company
Line of Business :	Subject is engaged in manufacture, distribution and trading of easy-open end of full open (EOE Full Open) in both tin and chrome steel
No. of Employees :	100

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 :	Satisfactory
Payment Behaviour :	Slow but correct
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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Costa Rica	B1	B1

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

COSTA RICA - ECONOMIC OVERVIEW

Prior to the global economic crisis, Costa Rica enjoyed stable economic growth. The economy contracted 1.3% in 2009 but resumed growth at about 4.5% per year in 2010-12. While the traditional agricultural exports of bananas, coffee, sugar, and beef are still the backbone of commodity export trade, a variety of industrial and specialized agricultural products have broadened export trade in recent years. High value-added goods and services, including microchips, have further bolstered exports. Tourism continues to bring in foreign exchange, as Costa Rica's impressive biodiversity makes it a key destination for ecotourism. Foreign investors remain attracted by the country's political stability and relatively high education levels, as well as the incentives offered in the free-trade zones; and Costa Rica has attracted one of the highest levels of foreign direct investment per capita in Latin America. However, many business impediments remain, such as high levels of bureaucracy, legal uncertainty due to overlapping and at times conflicting responsibilities between agencies, difficulty of enforcing contracts, and weak investor protection. Poverty has remained around 20-25% for nearly 20 years, and the strong social safety net that had been put into place by the government has eroded due to increased financial constraints on government expenditures. Unlike the rest of Central America, Costa Rica is not highly dependent on remittances as they only represent about 2% of GDP. Immigration from Nicaragua has increasingly become a concern for the government. The estimated 300,000-500,000 Nicaraguans in Costa Rica legally and illegally are an important source of mostly unskilled labor but also place heavy demands on the social welfare system. The US-Central American-Dominican Republic Free Trade Agreement (CAFTA-DR) entered into force on 1 January 2009 after significant delays within the Costa Rican legislature. CAFTA-DR has increased foreign direct investment in key sectors of the economy, including the insurance and telecommunications sectors recently opened to private investors. President CHINCHILLA was not able to gain legislative approval for fiscal reform, her top priority, though she continued to pursue fiscal reform in 2012. President CHINCHILLA and the PLN were successful in passing a tax on corporations to fund an increase for security services

Source : CIA

IDENTIFICATION

CORRECT COMPANY NAME

TECHNOENDS S.A.

TAXPAYER REGISTRATION

CJ 3101559620

MAIN ADDRESS

800 Mts. Norte de Fábrica de galletas Pozuelo

DEPT/PROV/REGION/STATE

San José / San José

COUNTRY

COSTA RICA

TELEPHONE

(506) 22912464

CORPORATE E-MAIL

rzumbado@envasescomeca.com

WEB

www.technoends.com

COMMENTS

NOTE: In Costa Rica, every address is "informal" because it is based on variable points of reference. This means that there is not any formal or official system for giving address of a place both in the city and in the field.
 
Therefore, an address can have two different points of reference.
 
In some cities, streets and avenues have names, but very few people use or understand this scheme.
 
Fax: (506)22912736

EXECUTIVE SUMMARY
Date of foundation	2010
Shareholders' equity	2,909,986,000.00 Colones (30SEP2011)
Annual revenues	US$ 17,248,933.77 Colones (30SEP2011)
Profits (loss)	1,026,429,000.00 Colones (30SEP2011)
permanent employees	100
Chief Executive	MESALLES CEBRIA, VICTOR ALEJANDRO
Disposition	Very few information was given. Politely.
Payments policy	Usually to terms / good
Number of times that this company was required: 4

REPUTATION

NOTHING AGAINST COMPANY

LEGAL STRUCTURE

LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	03JAN2010	STARTING DATE	05/01/2010
PLACE OF REGISTRY	San Jose
REGISTRATION	Volume 578, Entry 19754
INITIAL CAPITAL	C/.10,000.= Colones
SHAREHOLDERS EQUITY	2,909,986,000.00 Colones (30SEP2011)
CURRENT EXCHANGE RATE (US$)	C/.500.33 per US$1.= Dollar

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
MESALLES CEBRIA, VICTOR ALEJANDRO	President	100%
MESALLES VARGAS, JAIME	Director
ZAMORA CANTILLANO, JORGE LUIS	Director
CAPRA RAMOS, ERIC	Director
MESALLES VARGAS, VICTOR ALEJANDRO	Director
RODRIGUEZ DIAZ, ELIEXIS	General Manager
ZUMBADO SOTO, RODOLFO	Admin. & Finance Manager

WHO IS WHO?

ZAMORA CANTILLANO, JORGE LUIS

TITLE

Director

NATIONALITY

Costa Rican

D.O.B.

1957

CIVIL STATUS

Married

PROFESSION

Industrial Engineer

BACKGROUND INFORMATION

He has worked for GRUPO COMECA S.A. since 1986.
 

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
METALES FLIX S.A.	Controller	310103110229	COSTA RICA
GRUPO COMECA S.A.	Adm. & Finance Director	3101188766	COSTA RICA

CAPRA RAMOS, ERIC

TITLE

Director

NATIONALITY

Costa Rican

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
GRUPO COMECA S.A.	Cardboard Section Dir.	3101188766	COSTA RICA

RODRIGUEZ DIAZ, ELIEXIS

TITLE

General Manager

NATIONALITY

Costa Rican

D.O.B.

1956

ID

CI 8-022-101

BACKGROUND INFORMATION

He is a Costa Rican citizen, but he was born in Spain.
 
He has a Master's Degree in Industrial Engineer. He is the main founder of the Grupo Comeca and the main executive and shareholders of its companies.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
ENVASES COMECA S.A.	General Manager	3101038116	COSTA RICA

PARTICIPATED IN

COMPANY	TITLE	COUNTRY	YEAR / REF
VIDRIERA CENTROAMERICANA S.A.		COSTA RICA	2012

BUSINESS HISTORY

TECHNOENDS S.A. is engaged in manufacture of easy-open ends of full open (EOE Full Open) in both tin and chrome steel. It was established as a part of the expansion process of the tin division of the Comeca Group and as the axis for searching new markets abroad.
 
It is part of the COMECA Group, which has a good economic support and commercial solvency. With companies based in Mexico, Guatemala, Honduras, El Salvador, Nicaragua, Ecuador, Peru and Bolivia.
 
The group was born in 1978 when Victor Mesalles Cebria (current president) decided to engaged in the business of packages, adquiring Envases Comeca located in Costa Rica which formed part of Conglomerate Multinational American of America. 
 
The group has 4 business units: Tin and plastic containers; Corrugated, folding and Kraft paper packings; Supermarket and food industry; and Real estate in the tourism sector.
 
The holding company is the company GRUPO COMECA S.A., which carries out the administrative activities, direction and strategy of all of the companies of the group. The group has 30 companies at a local level.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
ENVASES COMECA S.A.	COSTA RICA	(AC) 3101038116	Related

BUSINESS

SIC Classification
3 4 - METAL-MECHANIC INDUSTRY (EXCEPT MACHINERY AND TRANSPORT EQUIPMENT). (Manuf. Metal cans, cutlery, tools, hand saws, hardware, plumbing, wire.)

Main activity

Subject is engaged in manufacture, distribution and trading of easy-open end of full open (EOE Full Open) in both tin and chrome steel.

O P E R A T I O N S

Import

Yes

Country

USA

Export

Yes

COUNTRY

Central America, Europe, Asia, Africa, Mexico

% Credit SALES / Terms

100% (Terms: 60, 90 days)

% Ventas exterior (Paises)

75%

% DOMESTIC PURCHASES

20%

% FOREIGN PURCHASES

80%

SELLING TerritorY

25% (Domestic market)

EMPLOYEES

100

LOCATION
PREMISES	Own Settled
OTHER PREMISES	Subject's head offices are located on the above-mentioned address. These premises are located on the above-mentioned address. The new plant has a land area of 11,999 m² and a built area of 4555.93 m², from which 2098.75 m² are for production areas, 1413.06 m² for storage of finished products, and the remaining area for administrative and related activities.

Comments

Subject's main customers are industrial manufacturers.
 
TECHNOENDS S.A. has an operating capacity of more than 50 million of easy-open ends monthly, and it expects to increase its capacity in the future. The company is capable of manufacturing easy-open ends in 5 different diameters: 202, 211, 300, 307, and 401, which allows it to meet most of needs of its customers.

FINANCIAL INFORMATION

Disposition

Poor. Very few information was given. Politely.

Interviewee(s)

Claudia Salazar Gutierrez

Position(s)

Corporate Accounting Coordinator

Information provided

The interviewed person confirmed general information and mentioned that provision of financial information was under consideration. If financial information is provided, we will send you a; otherwise, please consider this report as final.
 
Additionally, we consulted various external sources, but we could not find any updated balance sheets or accounting figures.
 
In our files, there are figures from the Annual Balance Sheet as of 30/09/2011 (12 months), which are expressed in Colones and detailed below as references.
 

BALANCE SHEET
Balance sheet date	30SEP2011
Type of balance sheet	Annual
Period	12 months
Currency	Colones
Exchange rate per US$	505.52
A S S E T S
Current Assetsd	5,292,580,000.00
Fixed	3,555,401,000.00
Total Assets	8,847,981,000.00
L I A B I L I T I E S
Current liabilities	5,937,995,000.00
Long term	0.00
TOTAL LIABILITIES	5,937,995,000.00
S H A R E H O L D E R S'  E Q U I T Y
Total shareholders equity	2,909,986,000.00
Total Liab. / Sh. equity	8,847,981,000.00
Sales	8,719,681,000.00
Profit (Loss)	1,026,429,000.00

R A T I O
Liquidity ratio	0.89	Current assets / Current liabilities
Debt-to-equity ratio	49.01 %	(Shareholders' equity / Current liabilities %)
Profitability margin	11.77 %	(Profits / Sales %)
Working capital	-645,415,000.00	(Current assets - Current liabilities)

FINANCIAL SITUATION

B: FAIR
Although no updated financial statements are available, it should be mentioned that the figures to 30/09/2011 showed a negative liquidity ratio and working capital, a higher debt than its shareholders' equity; however, profits were 11.77% on its sales.
 
Regarding subject's payment performance, it should be mentioned that recent trade references suggest punctuality.

INSURANCE

COMPANY	AGAINST	EXPIRATION
I.N.S.	All risk	In force

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Supplier: AGENCIA ADUANAL SAMESA S.A.	Tel.: (506) 22152536	Country: COSTA RICA
Goods/Services? : Customs services
Highest credit? : DC 100,000,000.=
Client since? : 2000	Terms? : 30 days	Performance? : Prompt
Supplier: ENVASES COMECA S.A.	Tel.: (506) 25202707	Country: COSTA RICA
Goods/Services? : Raw material
Highest credit? : US$ 5,000,000.=
Client since? : 2009	Terms? : 45 days	Performance? : Prompt
Supplier: VALSPAR MEXICANA S.A. DE C.V.	Tel.: (52-81) 81242000	Country: MEXICO
Goods/Services? : Paints
Highest credit? : DC Not specified
Client since? : 2005	Terms? : 60 days	Performance? : Prompt

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

Supplier	Country
DISTRIBUIDORA RAMM S.A.	COSTA RICA

GENERAL INFORMATION

Explanation about commercial reputation

PRESS RELEASES

No. 373-2009 THE PRESIDENT OF THE REPUBLIC AND THE MINISTER OF FOREIGN TRADE,
 
In compliance with Articles 140, paragraph 3) and 18) and 146 of the Political Constitution; Numbers 25, 27, paragraph 1), 28, paragraph 2), subparagraph b) of the General Law of Public Administration, Law No.6227 of 2 May 1978; the Law of Free Trade Zone System; Law No.7210 of 23 November 1990 and its amendments; the Law on Establishment of the Ministry of Foreign Trade and Promoter of Foreign Trade of Costa Rica; Law No.7639 of 30 October 1996; and the Executive Decree No.34739-COMEX-H of 29 August 2008 called Regulations to the Law of Free Trade Zone Regime; and
 
Whereas,
 
1. Mr. Victor Mesalles Cebria, of legal age, married once, businessman, with ID card No.8-022-101, inhabitant of San Jose, as President with general powers over the company without restriction whatsoever of Technoends S.A., tax ID No.3-101-559620, submitted an application to have recourse to the Law of Free Trade Zones to the Promoter of Foreign Trade of Costa Rica (hereinafter called PROCOMER), in accordance with the Law No.7210, its amendments and its Regulations.
 
2. The Administration of PROCOMER, in accordance with the Agreement adopted by the Board of Directors of PROCOMER in the session No.177-2006 of 30 October 2006, accepted the application submitted by the company Technoends S.A., and based on technical and legal considerations contained in the report of the Management of Operations of PROCOMER No.15-2009 of 15 May 2009, agreed to recommend to the Executive the granting of Free Trade Zone Regime to the above-mentioned company in accordance with the provisions of the Law No.7210, its amendments and its Regulations.
 
3. The Ministry of Foreign Trade, by official document DM-00409-09 of 25 May 2009, requested the Ministry of the Treasury the favorable compulsory opinion, in accordance with the Article 18, paragraph ch) of the Law No.7210 and its amendments, without to date it expresses its opposition;
 
4. The statutory procedure has been complied with. Therefore,
 
AGREE,
 
1. To grant the Free Trade Regime to the company Technoends S.A., with tax ID No.3-101-559620, (hereinafter called the Grantee), rating it as Export Processing Industry, in accordance with the paragraph a) of the Article 17 of the Law No.7210 and its amendments.
 
2. The Grantee's activity will be production of common metal tops and bottoms for containers.
 
3. The Grantee will operate outside the industrial park, specifically at La Uruca, de la fábrica Pozuelo 800 metros al norte carretera a Heredia, provincia de San Jose.
 
4. The Grantee will be granted incentives and benefits provided in the Law No.7210 and its amendments, under limitations and conditions as set forth in this Law, and in accordance with regulations provided by the Executive and PROCOMER.
 
Terms and conditions of benefits granted under the Law No.7210 are subject to commitments assumed by Costa Rica in international conventions related to the World Trade Organization (WTO), including the Agreement on Subventions and Compensatory Measures (ASCM) and the decisions made by WTO bodies in accordance with the Article 27, paragraph 4 of ASCM. In particular, it is provided that the Costa Rican State will not grant benefits provided in the Law No.7210 that in accordance with the ASCM are prohibited subventions beyond terms for granting extensions provided in Article 27, paragraph 4 of ASCM to specific developing countries, as provided in the decision of the WTO Ministerial Conference of 14 November 2001.
 
For the purposes of exemptions granted, it should be taken into account the provisions of Articles 62 and 64 of the Code of Tax Rules and Procedures, Law No.4755 of 3 May 1971 and its amendments, as applicable.
 
5. In accordance with the provisions of Article 20, paragraph g) of the Law of Free Trade Zone Regime, the Grantee will be granted exemption from all of taxes to profits, as well as any others, tax base of which is determined regarding gross or net profits, with dividends paid to shareholders or income or sales, according to differentiations contained in this regulation. However, those exemptions will be not applicable when the potential grantees can discount in their country of origin the taxes exempted in Costa Rica or when they develop trading activities, in this case the income tax exemption will be reduced in the same proportion.
 
The said Grantee may only introduce its products to the local market, observing strictly the requirements provided for this purpose in the Article 22 of the Law No.7210 and its amendments, particularly those related to payment of respective taxes.
 
6. The Grantee undertakes to comply with a minimum level of employment of 50 workers, not later than 1 March 2010. Also, it undertakes to make a new initial investment in fixed assets of at least US$2,000,000 (two million dollars, US currency) not later than 2 November 2010, and to make and maintain a total minimum investment of US$2,500,000 (two million five thousand dollars, US currency) not later than 1 October 2011. Finally, the Grantee undertakes to keep a minimum percentage of national value added of 52.90%.
 
PROCOMER will monitor the compliance with the levels of new initial investment in fixed assets and total minimum investment of the Grantee, in accordance with criteria and paramenters provided in the Regulations to the Law of Free Trade Zone Regime. Such authority will be provided in the corresponding Contract of Operations to be signed by the Grantee, as an undertaking assumed by it. Consequently, the Executive may revoke the Regime to the said company if, in accordance with those paramenters, the company does not comply with the above-mentioned minimum levels of investment.
 
7. Once the Contract of Operations is signed, the company is obliged to pay the monthly tax for the right of use of the Free Trade Zone Regime. The intended date for the beginning of productive operations is 1 October 2009. If under any circumstances the Grantee does not begin the said production stage in the said date, it will continue to pay the said tax, so that PROCOMER will continue to take as references for calculation the projections of industrial area as mentioned in its respective application.
 
For the purpose of tax collection, the company should inform PROCOMER about increases made in the industrial area. Failure of this obligation will cause the retroactive tax collection from the date of the last measurement made by the said Promoter, which will take as a base the new measurment to make calculation.
 
8. The Grantee undertakes to comply with environmental regulations required by the Ministry of Environment, Enery and Telecommunications (MINAET) and the National Environmental Technical Secretaria (SETENA), and it should submit to the said entities or the Ministry of Health, as applicable, the studies and documents required. Also, the Grantee undertakes to comply with all of regulations on the protection of environment provided in the Costa Rican and international legislations for the sustainable development of business activities, which will be verified by competent authorities.
 
9. The Grantee undertakes to submit to PROCOME an annual report on operations, in forms and in accordance with the conditions established by PROCOMER, within the four months after the end of the fiscal year. Also, the Grantee will be obliged to provide PROCOMER, and if applicable, to the Ministry of the Treasury, all the information and facilities required to supervise and control the use of the Free Trade Zone Regime and of the incentives granted. Also, it should allow that PROCOMER officials enter its facilities, when they consider it appropriate, and without a prior notice, to verify the compliance with the obligations of the Law of Free Trade Zone Regime and its Regulations.
 
10. If the Grantee does not comply with the conditions of this Agreement or applicable laws, regulations and guidelines, the Executive may impose fines, withdraw for one month to one year one or several incentives mentioned in the Article 20 of the Law No.7210, or revoke the granting of the Free Trade Zone Regime, without any responsibility for the State, in accordance with the provisions of the Law No.7210, its amendments and its Regulations. The possible imposition of those sanctions will be without detriment of other administrative, civil or criminal responsibilities of the Grantee or its representatives.
 
11. Once this Agreement is communicated, the Grantee should sign with PROCOMER a Contract of Operations. If the company does not show up to sign the Contract of Operations and does not provide reasonable excuses for this, PROCOMER will develop an Agreement that will render null and void that agreement granting the company the Regime.
 
For the beginning of productive operations under this Regime, the company should have been authorized by the General Directorate of Customs as an auxiliary body for customs public function, according to the provisions of the General Law of Customs and its Regulations.
 
12. Guidelines for promotion, administration and supervision of the Regime, issued by PROCOMER, will be compulsory for grantees and persons who are directly or indirectly related to them or PROCOMER.
 
13. Inappropriate use of exempted goods or services will be sufficient cause for the Ministry of the Treasury liquidates exempted or returned taxes and carries out other measures provided in the Code of Tax Rules and Procedures regarding tax evasion, without detriment of other sanctions under the Law No.7210 and its amendments and other applicable laws.
 
14. The Grantee undertakes to comply with all of requirements provided in the Law No.7210, its amendments and its regulations, as well as its obligations as an auxiliary body for customs public function.
 
15. In accordance with the Article 74 of the Law on Establishment of the Costa Rican Social Security Fund, Law No.17 of 22 October 1973 and its amendments, the non-compliance with obligations to the social security may be a cause to lose granted exemptions and incentives, upon prior administrative procedure. Also, the company should be registered as an employer in the system that the Costa Rican Social Security Fund considers convenient from the date that the entry to the Free Trade Zone Regime is notified.
 
16. As it is a company located outside the industrial park, the said company is obliged to implement measures required by PROCOMER or customs authorities to establish an appropriate control system on entering, staying and leaving of persons, vehicles and goods.
 
17. It is in force as from its communication.
 
To be communicated and published.
 
Signed in the Presidency of the Republic - San Jose, on 18 June 2009.
 
OSCAR ARIAS SANCHEZ, Minister of Foreign Trade, Marco Vinicio Ruiz Gutierrez - 1 time - (62472)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.57
UK Pound	1	Rs.100.62
Euro	1	Rs.84.62

INFORMATION DETAILS

Report Prepared by :

PDT

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.