MIRA INFORM REPORT

Report Date :

18.10.2013

IDENTIFICATION DETAILS

Name :	IDEAS TEXTILES S.A.C.
Registered Office :	Mariscal Eloy Ureta 429, Urb. El Pino, San Luis, Lima, 30
Country :	Peru
Financials (as on) :	30.06.2013 (Interim Balance Sheet)
Date of Incorporation :	14.08.2000
Com. Reg. No.:	Record 11204048
Legal Form :	Closely-held Corporation
Line of Business :	· Manufacturer of knitted fabrics. Cotton ginning service, spinning, weaving, dyeing, finishing and printing.
No. of Employees :	947

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)
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	IDEAS TEXTILES S.A.C.
TRADE NAME	IDETEX S.A.C.
TAXPAYER REGISTRATION	RUC 20472498305
MAIN ADDRESS	Mariscal Eloy Ureta 429, Urb. El Pino, San Luis
POSTAL CODE	Lima, 30
DEPT/PROV/REGION/STATE	Lima
COUNTRY	PERU
TELEPHONE	(511) 6128888
CORPORATE E-MAIL	teopat@idetex.com.pe
WEB	www.idetex.com.pe

EXECUTIVE SUMMARY
Date of foundation	2000
Capital stock	S/.128,310,374.= Nuevos Soles
Shareholders' equity	164,468,363.89 Nuevos Soles (31DEC2012)
Annual revenues	US$ 68,867,527.11 Nuevos Soles (31DEC2012)
Profits (loss)	9,216,917.81 Nuevos Soles (31DEC2012)
permanent employees	947
Chief Executive	SIMON CASSIS, MARCO ANTONIO
Disposition	Excellent. Full information and Financial Statements.
Payments policy	Delays but within sector norms
Number of times that this company was required: 7

LEGAL STRUCTURE
LEGAL STATUS	Closely-held Corporation
DATE OF INCORPORATION	14AUG2000
PLACE OF REGISTRY	Lima
NOTARY OFFICE	Isaac Higa Nakamura	DURATION	Indefinite.
REGISTRATION	Record 11204048
INITIAL CAPITAL	S/.50,000.= Nuevos Soles
CURRENT PAID-IN CAPITAL	S/.128,310,374.= Nuevos Soles	LAST CAPITAL INCREASE	12/2011
SHAREHOLDERS EQUITY	164,468,363.89 Nuevos Soles (31DEC2012)
CURRENT EXCHANGE RATE (US$)	S/.2.78 per 1.00 U.S. Dollar
MEMBERSHIP	Lima Chamber of Commerce

COMMENTS

Company incorporated into the scheme of tax withholding agents (RS174-2005) from 01/10/2005.

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
SIMON CASSIS, MARCO ANTONIO	General Manager	98%	01/08/2000
ABUSADA SABA, ALEJANDRO MOISES	Adm.&Finance Manager
DIAZ SEVILLA, MARIO EDUARDO	General Accountant
PATIÑO GABRIEL, TEOFILO	Internal Accountant
CASSIS FATULE, ANGEL	Shareholder	1%
SIMON CASSIS, MAGALI PATRICIA	Shareholder	1%

WHO IS WHO?

SIMON CASSIS, MARCO ANTONIO

TITLE

General Manager

NATIONALITY

Peruvian

D.O.B.

10NOV1973

ID

DNI 09994956

PROFESSION

Businessman

TAX ID

10099949568

BACKGROUND INFORMATION

Business Management Professional.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
INDUSTRIA DE BORDADOS M. S. S.A.		20205621963	PERU
LA COMPETENCIA TEXTIL MODA COLOR S.A.		20295566281	PERU
COTTON LINK S.A.		20389890228	PERU
COMPETENCIA TEXTIL S.A.		20295566281	PERU
ALGODONERA SUDAMERICANA S.A.	Director	20267040908	PERU
TEXTIL PIMA S.A.C.		20384759166	PERU

PARTICIPATED IN

COMPANY	TITLE	COUNTRY	YEAR / REF
M.S.C. INMOBILIARIA S.A.C.		PERU	2005

ABUSADA SABA, ALEJANDRO MOISES

TITLE

Adm.&Finance Manager

NATIONALITY

Peruvian

D.O.B.

20MAR1961

ID

DNI 08231891

DOMICILE

Salaverry 2431, San Isidro, Lima ,Lima

DIAZ SEVILLA, MARIO EDUARDO

TITLE

General Accountant

NATIONALITY

Peruvian

PROFESSION

Chartered Accountant

CASSIS FATULE, ANGEL

TITLE

Shareholder

NATIONALITY

Peruvian

ID

DNI 08776802

CIVIL STATUS

Divorced

PROFESSION

Businessman

SIMON CASSIS, MAGALI PATRICIA

TITLE

Shareholder

NATIONALITY

Peruvian

CIVIL STATUS

Divorced

PROFESSION

Businessman

BUSINESS HISTORY

 
The company was organized by the same current shareholders.
 
Its legal residence is set in Lima, may establish branches in the country or abroad.
 
By agreement of 03/01/2005, IDEAS TEXTILES S.A.C. (RUC 20472498305) absorbed by merger the firm MSC INMOBILIARIA S.A.C. (RUC 20390191597), the latter being dissolved without liquidation, which was published on 22/01/2005.
 
IdeasTextil S.A.C. emerges as a solid 100% Peruvians owned company. Since its founding in August 2000, the company operates in the manufacture of all types of knitted fabrics, with a complete textile complex . The production process is integrated in various processing plants including cotton ginning, spinning, weaving, dyeing, finishing and printing.
 
The business focus is geared to both the local market and export market with customers from several countries throughout the Americas and Europe.

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

 
Manufacture of knitted fabrics.
 
Cotton ginning service, spinning, weaving, dyeing, finishing and printing.
 
Products sold: Suede fabrics, jersey, pique, rib, french terry, flannel, fleece.
 
Trademarks: Ideas Textiles, Amnesia, Meninos, Nude.

OPERATIONS

Import

Yes

Country

Austria, Belgium, Brazil, China, Colombia, Ecuador, Germany, India, Hungary, USA Indonesia, Italy, Korea, Pakistan, Singapore, Spain, Switzerland, Taiwan, Thaila

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2013	19,520,472.00
2012	22,829,751.00
2011	22,219,980.00
2010	16,081,484.00
2009	11,185,780.00

Export

Yes

COUNTRY

Brazil, Chile, Colombia, Ecuador, Italy, USA, Venezuela.

Annual exports in US$ (FOB)

YEAR	AMOUNT
2013	15,317,358.00
2012	23,586,523.00
2011	17,254,169.00
2010	13,323,048.00
2009	15,978,422.00

% CASH SALES / METHOD

20%

% Credit SALES / Terms

80% (terms: Drafts 90-120 days)

% Ventas exterior (Paises)

33%

% DOMESTIC PURCHASES

62%

% FOREIGN PURCHASES

38%

SELLING TerritorY

67% National market sales.

EMPLOYEES

947

LOCATION
PREMISES	Own Settled
AREA	9,750 M2
OTHER PREMISES	The Company has its offices and Plant Nº1 located at heading address. Its production plant includes facilities for weaving, cutting room, sewing and finishing area. PRODUCTON SITES: - Calle General Felipe Salaverry 140, Urbanización El Pino, San Luis (Lima 30). They own this plant as an asset but do not use it, have it rented to third parties. - Jr. Los Eucaliptos Lote 3-4 Z.I. Huertos Sta. Genoveva, Lurin, Lima - Manuel Vega Bogardus 321, Pueblo Nuevo, Chincha, Ica - Av. Los Robles 441 - 447, El Agustino, Lima - Jr. Los Eucaliptos 371, Lote 3-4, Urb. Huertos de Santa Genoveva, Lurin, Lima WAREHOUSES: - Jr. Los Eucaliptos Mza. E Lote 8 Z.I. Huertos Santa Genoveva, Lurin, Lima. - Jr. Los Eucaliptos Mza. E Lote 9 Z.I. Huertos Santa Genoveva, Lurin, Lima. - Jr. Los Eucaliptos Mza. D Lote 9 Z.I. Huertos Santa Genoveva, Lurin, Lima. - Jr. Los Eucaliptos Mza. D Lote 10 Z.I. Huertos Santa Genoveva, Lurin, Lima. - Calle Mariscal Luis de Orbegozo 373, Lote 24, Urb. El Pino, San Luis - Av. Imperial Km.8, Quilmana, Cañete, Lima - Calle Los Eucaiptos Lote A (Sector Santa Genoveva), Lurin, Lima - Av. Felipe Santiago Salaverry 275, Urb. El Pino, San Luis - Av. Felipe Santiago Salaverry 275, Urb. El Pino, San Luis

Comments

The Company's purpose according to its bylaws is the purchase and sale of all kinds of fabrics, textiles import, manufacturing of fabrics and garments, export of all kinds of fabrics and garments in general as well as the provision of all types of services in general.
 
It is the leading importer of textile machinery.
 
On their cotton gin plant they process the best Pima and Tanguis cotton from valleys of Cañete, Pisco, Chincha and Palpa.
 
Spinning: Have a manufacturing capacity for thread sizes 10 / 1 16 / 1, 20 / 1, 24 / 1, 30 / 1, 36 / 1 40 / 1 50 / 1, 70 / 1. Subject works mainly with combed Pima cotton and carded and combed Tanguis cotton, viscose, among others.
 
Weaving: Have over 100 circular machines for jersey, rib, suede, and rectilinear in different gauges.
 
Dyeing: Have modern machinery of latest generation which achieves levels of export quality. Equipment allows dyeing with reactive dyes, disperse and cotton blends, polyester, cotton, viscose, cotton lycra, synthetic fibers, among others.
 
Dyeing machines capacity ranges from 20 kg to 1500 kg
 
Finishes: Treat different varieties of fiber with finishing, compacting, raising, shearing, grinding, rust, tye, dye, Deboré, pleated snow and washing in general.
 
Stamping: Have latest machinery of 8 colors

FINANCIAL INFORMATION

Disposition

Excellent. Full information and Financial Statements.

Interviewee(s)

Teófilo Patiño Gabriel

Position(s)

Internal Accountant

Information provided

Delivered the required information, including the main accounts of the company's balance sheet corresponding to the first six months of 2013
 
From previous research we supply the company's balance sheets closed on 31/12/2012 and 31/12/2011 (12 months each), which are below shown as comparative data:

INTERIM BALANCE SHEET
Balance Sheet Date	30JUN2013
Type of balance sheet	Interim
Period	6 Months
Currency	Nuevos Soles
Exchange Rate per US$	2.75
A S S E T S
Current Assets	95,034,693.00
Fixed	241,464,444.00
Total Assets	336,499,137.00
L I A B I L I T I E S
Current liabilities	94,119,464.00
Long term	70,426,000.00
S H A R E H O L D E R S'  E Q U I T Y
Total shareholders equity	171,953,673.00
Total liab. / Sh. equity	336,499,137.00
Sales	81,663,032.00
Profit (Loss)	7,485,308.00

RATIO
Liquidity ratio		1.01	(Current assets / Current liabilities)
Debt-to-equity ratio		182.70 %	(Shareholders' equity / Current liabilities %)
Profitability ratio		9.17 %	(Profits / Sales %)
Working capital		915,229.00	(Current assets - Current liabilities)
BALANCE SHEET
Balance sheet date	31DEC2012			31DEC2011
Type of balance sheet	Annual			Annual
Period	12 Months			12 Months
Currency	Nuevos Soles			Nuevos Soles
Exchange rate per US$	2.56			2.68
A S S E T S
Cash/bank	4,752,975.56			3,074,026.33
Receivables	35,302,311.58			32,609,447.46
Inventory	34,700,594.64			24,282,936.76
Others	10,338,255.96			16,404,277.48
Current Assetsd	85,094,137.74			76,370,688.03
Fixed	228,456,218.35			198,460,731.08
Others	83,934.40			90,175.56
Total Assets	313,634,290.49			274,921,594.67
L I A B I L I T I E S
Current liabilities	87,539,087.51			68,403,177.77
Long term	61,626,839.09			51,266,970.82
TOTAL LIABILITIES	149,165,926.60			119,670,148.59
S H A R E H O L D E R S'  E Q U I T Y
Total shareholders equity	164,468,363.89			155,251,446.08
Total Liab. / Sh. equity	313,634,290.49			274,921,594.67
Sales	176,300,869.39			158,255,708.83
Profit (Loss)	9,216,917.81			7,379,801.04

RATIO
Liquidity ratio	0.97	Current assets / Current liabilities
Debt-to-equity ratio	187.88 %	(Shareholders' equity / Current liabilities %)
Profitability margin	5.23 %	(Profits / Sales %)
Working capital	-2,444,949.77	(Current assets - Current liabilities)

FINANCIAL SITUATION

FAIR
According to the latest financial statement submitted and/or the Company general conditions, we estimate its financial situation is FAIR because :
- Both liquidity ratio and Working capital are negative. Liabilities exceed shareholders' equity account. Operational results are limited. 

INSURANCE

COMPANY	AGAINST	EXPIRATION
LA POSITIVA SEGUROS Y REASEGUROS	All-risk contract	Annually
RIMAC INTERNACIONAL CIA. DE SEGUROS	All-risk contract	Annually

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Supplier: NEW WORLD ADUANAS SAC	Tel.: (511) 5745995	Country: PERU
Goods/Services? : Customs Service
Highest credit? : US$ Open		Current
Client since? : 2002	Terms? : 60 -90 Days	Performance? : Prompt
Comments : Good customer - prompt / / monthly average 50-80,000 dollars
Supplier: ALIANZA ALGODONERA SA	Tel.: (511) 3261144	Country: PERU
Goods/Services? : Spinning service
Highest credit? : US$ Open		Current
Client since? : 2004	Terms? : 90 Days	Performance? : Prompt
Comments : Was good client-worked together to 2012-average monthly US$200-300,000
Supplier: DEPOSITOS SA	Tel.: (511) 6116363	Country: PERU
Goods/Services? : Storage service
Highest credit? : DC Open		Current
Client since? : 2007	Terms? : 30 Days	Performance? : Prompt
Comments : Good client - prompt / / movement highly variable
Supplier: JAS IMPORT EXPORT	Tel.: 511 2226828	Country: PERU
Goods/Services? : Yarn supplies
Highest credit? : US$ Open		Current
Client since? : 1997	Terms? : 30 Days	Performance? : Prompt
Comments : Good client - prompt //
Supplier: CREDITEX	Tel.: (511) 7157500	Country: PERU
Goods/Services? : Yarns / /
Highest credit? : US$ Not specified		Current
Client since? : 2010		Performance? : Prompt
Comments : Good customer - prompt / / average of low 6 figures

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

Supplier	Country
AGENCIA DE ADUANAS J Y N ASOCIADOS SA	PERU
TECNIADUANA SAC	PERU
CONFECCIONES LANCASTER	PERU
CLARIANT PERÚ	PERU
MANUFACTURAS DEL SUR	PERU
ELECTRO-JET S.A	SPAIN
KEWALRAM TEXTILES PUT LTDA.	INDIA
WINSONE YARNS LIMITED	INDIA
LAMOS EXPORT PUT LTDA.	INDIA
RAWM LIMITED	INDIA
PT.INDOLIBERTY TEXTILES	INDONESIA
KIAN SPA	ITALY
HARVETEX SRL	ITALY
RITE S.P.A. - RICAMBI TESSILI	ITALY
TEX TRE S.R.L	ITALY
WEKO URBAN EQUIPAMIENTOS DE BRASIL LTDA.	BRAZIL
VICUNHA TEXTIL S.A.	BRAZIL
THAI RAYON PUBLIC COMPANY LIMITED	THAILAND
LENZING AG.	AUSTRIA
TBM USA TEXTILES LLC	U.S.A.
EVERLIGHT USA INC.	U.S.A.

RISK INFORMATION CENTER

COMMERCIAL DELINQUENCY

Drawer	Document	Protested date	Amount S/.	Amount US$	Payment date
DEPOSITOS SA	Warrant	28/06/2013	0.00	100,188.86
DEPOSITOS SA	Warrant	05/06/2013	0.00	324,228.69
DEPOSITOS SA	Warrant	28/06/2013	0.00	31,389.76
DEPOSITOS SA	Warrant	13/06/2013	0.00	46,802.76
DEPOSITOS SA	Warrant	10/06/2013	0.00	118,331.25

CREDIT BUREAU COMMENTS

The Risk Bureau reports that the company investigated has 27 protested documents (not paid on their due date) of which it was found that 19 have not been solved yet. The total debt amount is US$1,261,283.= and S/.2,730,308. = (Last 5 are detailed above) Also it was found with AFP Integra SA (Private Pension Fund Administrator) debt in administrative and legal collection for eight arrears amounting to S/.12,362.=

SUPERINTENDENCY OF BANK & INSURANCE (SBS)

Debt structure for bank. SBS Latest Consolidated Credit Report as of : 31/08/2013

Bank	Debt Rating (*) See caption	Current Debt
		DOMESTIC CURRENCY	FOREIGN CURRENCY
CREDITO	NORMAL	52,133,706.00
BIF	NORMAL	29,981,798.00
FINANCIERO	NORMAL	26,822,400.00
BBVA CONTINENTAL	NORMAL	23,526,948.00
SCOTIABANK	NORMAL	14,954,642.00
HSBC BANK PERU	NORMAL	10,333,041.00
SANTANDER PERU	NORMAL	8,634,434.00
INTERBANK	NORMAL	3,741,790.00
COMERCIO	NORMAL	641,854.00
Total		170,770,613.00
Guarantees		215,132,558.00

CONSOLIDATED DEBT (ALL BANKS)                              ENTITIES NUMBER : 09                           31/08/2013

		Domestic Currency	Foreign Currency
LOANS	:	69,477,987.00
DISCOUNTS	:	34,097,194.00
FINANCIAL LEASING	:	1,195,235.00
FOREIGN TRADE	:	42,510,669.00
FACTORING	:	210,977.00
	:	23,278,551.00
		--------------------------------------------	--------------------------------------------
TOTAL DEBT	:	170,770,613.00
		=========================	=========================

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.58
UK Pound	1	Rs.98.51
Euro	1	Rs.83.49

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.