MIRA INFORM REPORT

Report Date :

24.10.2013

IDENTIFICATION DETAILS

Name :	PERU LYCRA S.A.C.
Registered Office :	Unanue 868, int. 201, La Victoria Lima, 13 Lima
Country :	Peru
Financials (as on) :	31.12.2012
Date of Incorporation :	22.05.2007
Legal Form :	Closely-held Corporation
Line of Business :	Subject is engaged in import, trade, distribution of yarns, clothing, textile products and raw materials. Moreover, Subject outsources dressmaking.
No. of Employees :	16

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 :	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

PERU LYCRA S.A.C.

TRADE NAME

PERU LYCRA

TAXPAYER REGISTRATION

RUC 20516180251

MAIN ADDRESS

Unanue 868, int. 201, La victoria

POSTAL CODE

Lima, 13

DEPT/PROV/REGION/STATE

Lima

COUNTRY

PERU

TELEPHONE

(511) 7199353 - 7199349

CORPORATE E-MAIL

chcubas@perulycra.com; gpalacios@perulycra.com

WEB

www.perulycra.com

COMMENTS

This is a of the one issued previously.

EXECUTIVE SUMMARY
Date of foundation	2007
Shareholders' equity	1,291,511.00 Nuevos Soles (31DEC2012)
Annual revenues	US$ 4,770,505.47 Nuevos Soles (31DEC2012)
Profits (loss)	435,818.00 Nuevos Soles (31DEC2012)
permanent employees	16
Chief Executive	CUBAS CUBAS, JOSEPH CHARLES
Number of times that this company was required: 1

LEGAL STRUCTURE

LEGAL STATUS	Closely-held Corporation
DATE OF INCORPORATION	22MAY2007
PLACE OF REGISTRY	Lima
NOTARY OFFICE	Mario Gino Benvenuto Murguia	DURATION	Perpetual
INITIAL CAPITAL	S/.26,400.= Nuevos Soles
SHAREHOLDERS EQUITY	1,291,511.00 Nuevos Soles (31DEC2012)
CURRENT EXCHANGE RATE (US$)	S/.2.76 per 1 USD
COMMENTS
Subject was incorporated as FERELI TEXTILE TRADERS SAC - FETT SAC. On 08/10/2009, Subject changed its legal name into the current.

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
CUBAS MOLINA, JOSE FERNANDO	Shareholder	85%
ECHEVARRIA LOPEZ, ELIA YANETH	Shareholder	15%
CUBAS CUBAS, JOSEPH CHARLES	General Manager
PALACIOS ATARAMA, GUILLERMO	General Accountant

WHO IS WHO?

CUBAS MOLINA, JOSE FERNANDO

TITLE

Shareholder

NATIONALITY

Peruvian

D.O.B.

051946

ID

DNI 09072145

TAX ID

10090721459

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
PERU JACKARD S.A.C.		20502368975	PERU

ECHEVARRIA LOPEZ, ELIA YANETH

TITLE

Shareholder

NATIONALITY

Honduran

ID

DNI C.Ext. 000053948

CUBAS CUBAS, JOSEPH CHARLES

TITLE

General Manager

NATIONALITY

Peruvian

D.O.B.

111973

ID

DNI 07507854

CIVIL STATUS

Married to ECHEVARRIA LOPEZ,ELIA YANETH

PROFESSION

Business Administrator

TAX ID

10075078540

BUSINESS

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

Main activity

Subject is engaged in import, trade, distribution of yarns, clothing, textile products and raw materials. Moreover, Subject outsources dressmaking.

O P E R A T I O N S

Import

Yes

Country

Germany, India, Pakistan

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2013	5,152,386.00
2012	6,937,160.00
2011	4,046,296.00

Export

No

% CASH SALES / METHOD

40%

% Credit SALES / Terms

60% 30, 60 days

% DOMESTIC PURCHASES

10%

% FOREIGN PURCHASES

90%

EMPLOYEES

16

LOCATION
OTHER PREMISES	Business premises: ABTAO 1231, 2do. piso, la VICTORIA, lima Business premises: AMERICA 567, LA VICTORIA, lima

FINANCIAL INFORMATION

Disposition

A: Excellent. Full information and Financial Statements.

Interviewee(s)

Guillermo palacios

Position(s)

Accountant

Information provided

Mr. Guillermo Palacios provided the Annual Balance Sheet as of 12/31/2012 (12 months).

BALANCE SHEET
Balance sheet date	31DEC2012
Type of balance sheet	Annual
Period	12 months
Currency	Nuevos Soles
Exchange rate per US$	2.56
A S S E T S
Current Assetsd	6,229,246.00
Fixed	112,798.00
Total Assets	6,342,044.00
L I A B I L I T I E S
Current liabilities	5,050,533.00
Long term	0.00
TOTAL LIABILITIES	5,050,533.00
S H A R E H O L D E R S'  E Q U I T Y
Total shareholders equity	1,291,511.00
Total Liab. / Sh. equity	6,342,044.00
Sales	12,212,494.00
Profit (Loss)	435,818.00

R A T I O
Liquidity ratio	1.23	Current assets / Current liabilities
Debt-to-equity ratio	25.57 %	(Shareholders' equity / Current liabilities %)
Profitability margin	3.57 %	(Profits / Sales %)
Working capital	1,178,713.00	(Current assets - Current liabilities)

FINANCIAL SITUATION

Based on the last submitted Financial Statement and/or general conditions, Subject's Financial Position is considered to be FAIR due to:

-Liquidity ratio is very week.

-Working capital is short.

-Indebtedness is over than its shareholders' equity.

-Operating results are very limited.

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

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

Supplier	Country
TRANSEL AGENCIA DE ADUANA S.A.	PERU
1818 S.A.C.	PERU
TEJIDOS JORGITO S.R.L.	PERU
BIRLA TEXTILE MILLS	INDIA
LAHOTI OVERSEAS LTD	INDIA

RISK INFORMATION CENTER

COMMERCIAL DELINQUENCY

Drawer	Document	Protested date	Amount S/.	Amount US$	Payment date
JESEPH CHARLES CUBAS CUBAS		30/04/2010	0.00	3,229.10	06/02/2012

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
CONTINENTAL	NORMAL	3,677,079.00
CREDITO	NORMAL	2,005,101.00
SCOTIABANK	NORMAL	940,744.00
INTERBANK	NORMAL	877,123.00
BIF	NORMAL	696,734.00
Total		8,196,781.00
Guarantees		10,279,134.00

CONSOLIDATED DEBT (ALL BANKS)                              ENTITIES NUMBER : 5                           31/08/2013

		Domestic Currency	Foreign Currency
LOANS	:	3,541,873.00
DISCOUNTS	:	1,950,477.00
FINANCIAL LEASING	:	73,042.00
FOREIGN TRADE	:	2,508,522.00
CREDIT CARDS	:	5,014.00
	:	117,854.00
		--------------------------------------------	--------------------------------------------
TOTAL DEBT	:	8,196,782.00
		=========================	=========================

RATING DESCRIPTION ACCORDING TO THE SBS (Caption)

Normal Good Finantial Situation, Prompt payments, Consistent information. Increasing Trend, Creditworthy.

Potential Problem Satisfactory Finantial Situation but cash flow can be weak. Irregular payments. Irregular Trend.

Deficient Fair Finantial Situation, cash problems, profits shortage, delayed and overdue payments.

Doubtful Heavy Finantial Situation, liquidity shotage, notorious delayed payments, Judicial Collection, Bad Management.

Loss Bad Finantial Situation, Insufficient funds, declared bankruptcy, debt default.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.53
UK Pound	1	Rs.99.75
Euro	1	Rs.84.75

INFORMATION DETAILS

Report Prepared by :

NIS

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.