MIRA INFORM REPORT

Report Date :

05.10.2013

IDENTIFICATION DETAILS

Name :	TEXTILES BUSTAMANTE S.A.
Registered Office :	Los Plásticos 235, Urb. Vulcano, Ate, Lima, 3 Lima
Country :	Peru
Date of Incorporation :	01.03.1992
Com. Reg. No.:	Card 9233, Entry 00368954
Legal Form :	Joint-Stock Company
Line of Business :	Subject is engaged in preparation and spinning of textile fibers, knitting of textile and knitted products
No. of Employees :	570

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Peru	A2	A2

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

Peru ECONOMIC OVERVIEW

Peru's economy reflects its varied geography - an arid lowland coastal region, the central high sierra of the Andes, the dense forest of the Amazon, with tropical lands bordering Colombia and Brazil. A wide range of important mineral resources are found in the mountainous and coastal areas, and Peru's coastal waters provide excellent fishing grounds. The Peruvian economy has been growing by an average of 6.4% per year since 2002 with a stable/slightly appreciating exchange rate and low inflation, which in 2013 is expected to be below the upper limit of the Central Bank target range of 1 to 3%. Growth has been in the 6-9% range for the last three years, due partly to a leap in private investment, especially in the extractive sector, which accounts for more than 60% of Peru's total exports. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs subjects the economy to fluctuations in world prices. Poor infrastructure hinders the spread of growth to Peru's non-coastal areas. Peru's rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by 23 percentage points since 2002, but inequality persists and continues to pose a challenge for the new Ollanta HUMALA administration, which has championed a policy of social inclusion and a more equitable distribution of income. Peru's free trade policy has continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the European Free Trade Association, Chile, and four other countries; concluded negotiations with Venezuela, Costa Rica, and Guatemala; and begun trade talks with two other Central American countries and the Trans-Pacific Partnership. Peru also has signed a trade pact with Chile, Colombia, and Mexico called the Pacific Alliance that rivals Mercosur in combined population, GDP, and trade. The US-Peru Trade Promotion Agreement entered into force 1 February 2009, opening the way to greater trade and investment between the two economies. Although Peru has continued to attract foreign investment, political activism and protests are hampering development of some projects related to natural resource extraction.

Source : CIA

IDENTIFICATION
CORRECT COMPANY NAME	TEXTILES BUSTAMANTE S.A.
TRADE NAME	BUSATEX
TAXPAYER REGISTRATION	RUC 20106784478
MAIN ADDRESS	Los Plásticos 235, Urb. Vulcano, Ate,
POSTAL CODE	Lima, 3
DEPT/PROV/REGION/STATE	Lima / Lima
COUNTRY	PERU
TELEPHONE	(511) 3487516 - 3480910 - 3368046 - 3366846
CORPORATE E-MAIL	contabilidad@busatexperu.com
WEB	www.busatexperu.com
COMMENTS
Other e-mails: administracion@busatexperu.com

EXECUTIVE SUMMARY
Date of foundation	1992
permanent employees	570
Chief Executive	BUSTAMANTE RIMARACHIN, RODOLFO
Disposition	Declined. Needed to know the requestor's name.
Payments policy	Usually to terms / good
Number of times that this company was required: 6

REPUTATION

NOTHING AGAINST COMPANY

LEGAL STRUCTURE
LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	10MAR1992	STARTING DATE	01/04/1992
PLACE OF REGISTRY	Lima
NOTARY OFFICE	Leonardo Bartra Valdivieso.	DURATION	Perpetual
REGISTRATION	Card 9233, Entry 00368954
INITIAL CAPITAL	S/.30,000.= Nuevos Soles
CURRENT EXCHANGE RATE (US$)	S/.2.71 per 1 USD
COMMENTS
According to SUNAT, from 11/01/2012, Subject was incorporated in the Good Taxpayer Regime (R.S.228-2012).

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
BUSTAMANTE RIMARACHIN, RODOLFO	General Manager	50%	02.04.1992
CAMPOS TEJADA, RUBEN EFRAIN	Administrative Manager
VILLENA, ELIACER	Commercial Manager
RODRIGUEZ ZAPATA, ANGEL RICHARD	Representative
BUSTAMANTE RIMARACHIN, TELESFORO	Shareholder	30%
BUSTAMANTE RIMARACHIN, SEGUNDO PEDRO	Shareholder	20%
HUAMANI, MARILU	Accountant

WHO IS WHO?

BUSTAMANTE RIMARACHIN, RODOLFO

TITLE

General Manager

NATIONALITY

Peruvian

D.O.B.

041955

ID

DNI 16417609

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
CORPORACION E INVERSIONES PIERINA S.A.C.	General Manager	20517424197	PERU

RODRIGUEZ ZAPATA, ANGEL RICHARD

TITLE

Representative

NATIONALITY

Peruvian

D.O.B.

05MAY1969

ID

DNI 16636837

BACKGROUND INFORMATION

He was appointed Representative of TEXTILES BUSTAMANTE SA "BUSATEX SA" on February 2, 2008, to represent the company before the administrative authorities of the Ministry of Labor and Promotion of Employment, presenting every kind of documentation, writings, discharges, appeals, statements, applications; especially he could give notice of claims, reviews, appeals, that is, all kinds of challenges allowed by law. He may also represent the company in all kinds of audiences, including the conciliation established by the Ministry of Labor and Promotion of Employment, being able to reconcile, compromise, negotiating conditions for the payment of social benefits and workers' compensation if appropriate; as recorded in entry 00368954, Page 21/21 of the Trade Registry of Lima.

BUSTAMANTE RIMARACHIN, TELESFORO

TITLE

Shareholder

NATIONALITY

Peruvian

D.O.B.

031948

ID

DNI 16527410

CIVIL STATUS

Married

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
COMERCIAL MICELI S.A.		20545192064	PERU
CONSORCIO TEXTIL BUSTAMANTE S.A.C.	General Manager	20492056431	PERU

BUSTAMANTE RIMARACHIN, SEGUNDO PEDRO

TITLE

Shareholder

NATIONALITY

Peruvian

D.O.B.

051957

ID

DNI 17527507

BUSINESS HISTORY

Founders: Rodolfo Bustamante Rimachin, Telésforo Bustamante Rimachin and Segundo Pedro Bustamante Rimachín.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
CORPORACION E INVERSIONES PIERINA S.A.C.	PERU	(AC) 20517424197	Related
INDUSTRIAS TEXTILES ENZO S.A.	PERU	20419659160	Related

BUSINESS

SIC Classification
2 2 - TEXTILE INDUSTRY. FLAT YARNS AND CONFECTIONARY RAW MATERIAL. (Manuf.Weaving mills, cotton, Synthetics, hosiery, woven carpets and rugs, yarn, fabrics, etc.)

Main activity

Subject is engaged in preparation and spinning of textile fibers, knitting of textile and knitted products.
Subject works with business partners of the leader brands in the clothing industry. 

OPERATIONS

Import

Yes

Country

Germany, Argentina, Brazil, China, France, India, Indonesia, Italy, Japan, Korea, Spain, Switzerland, Taiwan, Thailand and USA

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2013	4,385,222.00
2012	9,219,507.00
2011	7,899,210.00
2010	6,242,702.00
2009	3,742,111.00

Export

Yes

COUNTRY

Colombia

Annual exports in US$ (FOB)

YEAR	AMOUNT
2013	7,958.00
2011	60,367.00
2010	234,765.00
2009	200,179.00

% CASH SALES / METHOD

30%

% Credit SALES / Terms

70% Short-term facilities

% DOMESTIC PURCHASES

10%

% FOREIGN PURCHASES

90%

SELLING TerritorY

Domestic and international market

EMPLOYEES

570

LOCATION
PREMISES	Own Settled
OTHER PREMISES	Registered offices and main offices operate in the address stated in the identification field. Branches: - Calle San Francisco 886, Urb. Azcarrun, San Juan de Lurigancho, Lima (Lima,36) - Av. Tomas Alva Edison, Asociación Santa Rosa, Ate (Lima,3) - Av. Materiales 2375 (Alt. cuadra 25 de la Av.Argentina/Pas. Dueñas) Lima (Lima,1) Telefono: 3366846. - Calle Las Magnolias Mz.G1, Lote 8A (Lotización La Capitana), Lurigancho, Lima 15 - Jr. San Enrique 950, Urb. Azcarrunz, San Juan de Lurigancho, Lima 36. - Calle C S/N, Urb. Lotificación Pre-Nieveria (Mz-F , Lote 04) Complejo, Cajamarquilla) Lurigancho. - Manuel Valle Mz.H, Lote. 1, Pachacamac, Lima.

Comments

Textiles Bustamante is obtaining the ISO 9001:2000 Certification. It has a quality system. 
 
MAIN CLIENTS:
- Textiles Dayana SRL
- Comercial Textil Keren Mass SAC
- Confecciones Ritzy SA
- Creselsa Imporr EIRL
- Grupo Solucion Textil SAC, etc

FINANCIAL INFORMATION

Disposition

Declined. Needed to know the requestor's name.

Interviewee(s)

Srta. Marilu Huamán.

Position(s)

Accountant

Information provided

After knowing about our investigation, we were informed that due to internal policies and security measures, they are not authorized to reveal confidential information; therefore we were suggested sending a written request specifying the requesting party's identity. Although we met said requirement, we have no received a reply to date.
 
We have prepared this report based on data obtained from third reliable sources and public. No updated balance sheets were available, except for some sales referential figures. 

SALES

US$ 0.00 ()

FINANCIAL SITUATION

A-: SATISFACTORY
No financial statements were available to assess its results in its last fiscal year. We only learnt sales figures during 2012 which amounted to S/.97,000,000.= Nuevos Soles and which represent an increase of 47.90% with respect to former year, when sales amounted to S/.65,586,000.= Nuevos Soles.
 
Textiles Bustamante S.A. is a wide experience textile industry. Subject is a family company, engaged in spinning of fibers, weaving of textile products and knitting. Subject has grown considerably due to its quality policy and diversification of products and services. 
 
No negative background against Subject was found. Subject's credit with financial entities are rated as Normal according to the Banking and Insurances Superintendency. 

Sales History in US$ (of Balance Sheet, statement of third parties)

Date	Sales (US$)
31/12/2012	37,890,625.00
31/12/2011	24,472,388.06
31/12/2010	17,142,857.14

INSURANCE

COMPANY	AGAINST
RIMAC CIA DE SEGUROS Y REAS.	All risk

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Supplier: TEXCOPE SAC	Tel.: (511) 6309494	Country: PERU
Goods/Services? : Threads
Highest credit? : DC Open		Current
Client since? : 2008	Terms? : 45 days	Performance? : Prompt
Comments : Good client- prompt //

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

Supplier	Country
AGENCIA DE ADUANA TRANSCONTINENTAL	PERU
MANUFACTURAS DEL SUR S.A.	PERU
POST MAR SA	PERU
DHL EXPRESS ADUANAS PERU SAC	PERU
RAVENNA INDUSTRIAL LTDA.	COLOMBIA
TEXCHEM KOREA CO. LTD.	SOUTH COREA
BUXADERAS	SPAIN
LAKSHMI CARD CLOTHING MFG CO.	INDIA
ALOK INDUSTRIES LTD.	INDIA
MODERN PETRO FILS	INDIA
LEIGH FIBER INC.	U.S.A.

CREDIT BUREAU COMMENTS

To date, no protested documents, closed accounts and lawsuits against Subject were found. No coercive collection or tax omissions with the State were found. Moreover, Sedapal referred Subject as a Good payer. Subject has paid promptly in the past three months (Report as of 07/26/2013).

SUPERINTENDENCY OF BANK & INSURANCE (SBS)

Debt structure for bank. SBS Latest Consolidated Credit Report as of : 31/07/2013

Bank	Debt Rating (*) See caption	Current Debt
		DOMESTIC CURRENCY	FOREIGN CURRENCY
CONTINENTAL	NORMAL	17,064,959.00
CREDITO	NORMAL	14,013,387.00
SCOTIABANK	NORMAL	10,576,548.00
INTERBANK	NORMAL	7,348,466.00
BIF	NORMAL	451.00
Total		49,003,811.00
Guarantees		64,487,714.00

CONSOLIDATED DEBT (ALL BANKS)                              ENTITIES NUMBER : 5                           31/07/2013

		Domestic Currency	Foreign Currency
LOANS	:	16,647,004.00
DISCOUNTS	:	20,587,612.00
FOREIGN TRADE	:	3,490,000.00
CREDIT CARDS	:	11,163.00
OTHER INDIRECT CONTINGENT DEBTS	:	8,133,941.00
	:	134,091.00
		--------------------------------------------	--------------------------------------------
TOTAL DEBT	:	49,003,811.00
		=========================	=========================

Comments :

SBS has rated Subject as a 100% NORMAL since 12/31/2010.

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

GENERAL INFORMATION

Explanation about commercial reputation

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.41
UK Pound	1	Rs.99.29
Euro	1	Rs.83.68

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%)

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