MIRA INFORM REPORT

Report Date :

04.08.2014

IDENTIFICATION DETAILS

Name :	ACRINOR - ACRILONITRILA DO NORDESTE S/A
Registered Office :	Rua Hidrogenio, 824 - Pólo Petroquímico 42810-010 - Camaçari/BA
Country :	Brazil
Financials (as on) :	31.12.2013
Date of Incorporation :	23.09.1976
Legal Form :	Privately Held Corporation
Line of Business :	Manufacturer of Petrochemicals
No of Employees :	81

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
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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Brazil	A2	A2

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

BRAZIL - ECONOMIC OVERVIEW

Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, and a rapidly expanding middle class, Brazil's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt. After strong growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in 2008. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. In 2010, consumer and investor confidence revived and GDP growth reached 7.5%, the highest growth rate in the past 25 years. Rising inflation led the authorities to take measures to cool the economy; these actions and the deteriorating international economic situation slowed growth in 2011-13. Unemployment is at historic lows and Brazil's traditionally high level of income inequality has declined for each of the last 14 years. Brazil's historically high interest rates have made it an attractive destination for foreign investors. Large capital inflows over the past several years have contributed to the appreciation of the currency, hurting the competitiveness of Brazilian manufacturing and leading the government to intervene in foreign exchange markets and raise taxes on some foreign capital inflows. President Dilma ROUSSEFF has retained the previous administration's commitment to inflation targeting by the central bank, a floating exchange rate, and fiscal restraint

Source : CIA

COMPANY NAME

ACRINOR - ACRILONITRILA DO NORDESTE S/A

ADDRESSES

MAIN ADDRESS:	RUA HIDROGENIO, 824 - PÓLO PETROQUÍMICO
ZIP CODE/CITY:	42810-010 - CAMAÇARI/BA
PHONE:	71 3878-6335
E-MAIL:	william.matos@unigel.com.br

BRANCHES:

THE COMPANY HAS A BRANCH LOCATED IN: SANTOS/SP

LEGAL DATA

MAIN ACTIVITIES:

MANUFACTURE OF PETROCHEMICALS

LEGAL FORM:	PRIVATELY HELD CORPORATION
INCORPORATION DATE:	23/09/1976
REGISTER DATE:	14/10/1976
BALANCE SHEET FILING DATE:	31/12
TAX CONTRIBUTOR NUMBER(CNPJ):	13.546.353/0001-33
STATE REGISTER:	00.911.567 NO
SHARE CAPITAL:	R$ 92.684.537,00

BOARD OF DIRECTORS:
ROBERTO FIAMENGHI	DIRECTOR
LUIZ ANTONIO DE OLIVEIRA MASCARENHAS	DIRECTOR
ROBERTO NORONHA SANTOS	DIRECTOR

AUTHORIZED USE OF SIGNATURE

THE DIRECTORS ARE AUTHORIZED TO SIGN ON BEHALF OF THE COMPANY.

SHAREHOLDERS / PARTNERS:
UNIGEL S/A	100%

AFFILIATES / SUBSIDIARIES:

PROQUIGEL QUÍMICA

RESARBRÁS ACRÍLICOS

CBE - COMPANHIA BRASILEIRA DE ESTIRENO

POLICARBONATOS DO BRASIL

PQU - PETROQUIMICA UNIAO

POLO FILMS

CARDINALI INDÚSTRIA

ENGEPACK

LATAPACK-BALL EMBALAGENS LTDA

UNIGEL PLÁSTICOS

PLASTIGLAS (MEXICO)

COMPANY'S BACKGROUND

THE SUBJECT WAS ESTABLISHED ON SEPTEMBER 23, 1976 TO BE ENGAGED IN THE SAID LINE OF BUSINESS AND UP TO DATE IT IS STILL OPERATING WITHIN THE GENERAL SCENE REPORTED HEREIN.

TRADE NAME: "ACRINOR"

IT BELONGS TO THE UNIGEL GROUP, WHICH IS COMPRISED BY SEVERAL COMPANIES AND THE RESULT OF THIS ATTITUDE REFLECTS ON THEIR NATIONAL AND INTERNATIONAL MARKETING POSITION MAKING THE GROUP AN IMPORTANT INDUSTRIAL PARTNER. THE UNIGEL GROUP HAS A TURNOVER OF USD 500 MILLION, OF WHICH THE CHEMICAL DIVISION REPRESENTS 60%.

FURTHER DETAILS ARE SO FAR NOT KNOWN.

SHAREHOLDERS:

UNIGEL S/A: HEADQUARTERED AT AV. PRESIDENTE JUSCELINO KUBITSCHEK 1726, 13.AND-CJ.131-A, SAO PAULO/SP, REGISTRATION # CNPJ 05.303.481/0001-28.

THE PREVIOUS NUMBER OF EMPLOYEES (150) WAS INCORRECT.

REMARKS:

--------

WHEN CONTACTING THE SUBJECT WE INTERVIEWED MS. CAMILA, ACCOUNTING DEPARTMENT, WHO INFORMED THAT WOULD NOT DISCLOSE ANY KIND OF INFORMATION UNLESS THE INQUIRING PARTY'S NAME WAS DISCLOSED.

IF IT IS POSSIBLE TO DISCLOSE THE NAME OF THE INTERESTED SUPPLIER OF THE SUBJECT, WE MAY RESUME OUR CONTACTS AND TRY TO OBTAIN FURTHER INFORMATION.

THE DATA CONTAINED HEREIN WERE OBTAINED FROM OUTSIDE SOURCES, OUR DATABASE AND OFFICIAL. NO FURTHER DATA WAS AVAILABLE WITH SEVERAL SOURCES USUALLY INVESTIGATED.

PUBLIC INFORMATION:

PROTESTS:

01 PROTEST, TOTAL AMOUNT R$ 354,35

DETAILS OF PROTEST:

NOTARY OFFICE:	DATE:	VALUE:
CARTÓRIO DE CAMAÇARI/BA	16/12/2011	R$ 354,35

LAWSUITS:
	DATE:	COURT OF LAW:

1	MONITORY SUIT	17/05/12	3ª VARA DE SALVADOR/BA
2	EXECUTIVE LAWSUITS	20/06/11	2ª VARA DE CAMACARI/BA

FINANCIAL INFORMATION

GENERAL BALANCE SHEETS AS OF 31/12/2013, 31/12/2012 AND 31/12/2011.

( FIGURES ARE IN THOUSANDS OF REAIS ).

ASSETS
CURRENT:	31/12/2013	31/12/2012	31/12/2011
CASH AND BANKS	66	29.884	26.269
CLIENTS	11.477	4.343	24.870
INVENTORY	47.130	31.911	11.147
RECOVERABLE TAXES	49.531	28.812	20.954
DEFERRED TAXES	527	1.544	3.256
OTHER CREDITS	61	208	383
CURRENT ACCOUNTS	13.240	3.416	757
PRE PAID EXPENSES	246	307	175
	----------------	----------------	----------------
TOTAL CURRENT ASSETS	122.278	100.425	87.811

LONG-TERM RECEIVABLES:
RECOVERABLE TAXES	107	91	63
DEFERRED TAXES	6.227		13.357
JUDICIAL DEPOSITS	2.421	2.192	1.486
CURRENT ACCOUNT	385.082	311.071	263.995
	----------------	----------------	----------------
TOTAL LONG-TERM RECEIVABLES	393.837	313.354	278.901

FIXED ASSETS:
INVESTMENTS	1.626	1.626	1.626
FIXED ASSETS	74.456	82.107	85.281
DEFERRED			820
INTANGIBLE	139	233	292
	----------------	----------------	----------------
TOTAL FIXED ASSETS	76.221	83.966	88.019
	============	============	============
TOTAL ASSETS	592.336	497.745	454.731

LIABILITIES:
CURRENT:	31/12/2013	31/12/2012	31/12/2011
SUPPLIERS	94.417	46.443	22.038
LOANS AND FINANCING	40.000	13.789	21.723
TAXES & CONTRIBUTIONS	490	1.091	5.247
SALARIES PAYABLE	2.027	1.829	1.161
DIVIDENDS			845
CURRENT ACCOUNTS	678	611	343
INCOME TAX/SOCIAL CONTRIBUTION	4	452
OTHER DEBTS	3.726	2.560	5.411
	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	141.342	66.775	56.768

LONG TERM LIABILITIES:
LOANS AND FINANCING	26.828	55.191	44.729
PROVISION FOR CONTINGENCIES	3.601	2.822	1.334
TAXES AND CONTRIBUTIONS	3.584	3.655	1.247
DEFERRED TAXES		1.188	19.616
CURRENT ACCOUNT	224.818	156.747	109.430
OTHER	4.355	8.969	8.697
	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	263.186	228.572	185.053

NET EQUITY:
SHARE CAPITAL	92.685	92.238	92.238
PROFIT RESERVES	68.275	73.759	80.060
OTHER COMPREHENSIVE INCOME	24.315	33.868	38.079
DIVIDENDS	2.533	2.533	2.533
	----------------	----------------	----------------
TOTAL NET EQUITY	187.808	202.398	212.910
	================	================	================
TOTAL LIABILITIES	592.336	497.745	454.731

PROFIT AND LOSS ACCOUNTS AS OF 31/12/2013, 31/12/2012 AND 31/12/2011.

( FIGURES ARE IN THOUSANDS OF REAIS ).

	31/12/2013	31/12/2012	31/12/2011
NET SALES	267.980	292.180	326.660
(-) COST OF SOLD GOODS	246.036	284.277	301.273
	----------------	----------------	----------------
GROSS PROFIT	21.944	7.903	25.387
OPERATING REVENUE (EXPENSE)	-18.130	-11.153	-8.591
FINANCIAL REVENUE(EXPENSE)	-18.109	-11.679	-18.016
	----------------	----------------	----------------
OPERATIONAL PROFIT (LOSS)	-14.295	-14.929	-1.220
CONTRIBUTION/INCOME TAX	5.088	5.071	1.221
	----------------	----------------	----------------
NET PROFIT (LOSS)	-9.207	-9.858	1

RATIOS:

31/12/2013

31/12/2012

31/12/2011

QUICK RATIO	,53		1,03		1,35
CURRENT RATIO	,87		1,50		1,55
ACCOUNTS RECEIVABLE TURNOVER	23,35	TIMES	67,28	TIMES	13,13	TIMES
DAYS' SALES IN RECEIVABLES	15,42	DAYS	5,35	DAYS	27,41	DAYS
INVENTORY TURNOVER	5,22	TIMES	8,91	TIMES	27,03	TIMES
ACCOUNTS PAYABLE PERIOD	138,15	DAYS	58,81	DAYS	26,33	DAYS
RETURN ON ASSETS	,45	TIMES	,59	TIMES	,72	TIMES
SALES TURNOVER ON NET EQUITY	1,43	TIMES	1,44	TIMES	1,53	TIMES
NET WORTH TIE-UP	,40		,41		,40
INDEBTEDNESS	2,15		1,46		1,14
EQUITY RATIO	31,71	%	40,66	%	46,82	%
WORKING CAPITAL RATIO	-13,49	%	50,39	%	54,68	%
GENERAL SOLVENCY	1,46		1,69		1,88
RETURN ON NET EQUITY	-4,90	%	-4,87	%	,00	%
RETURN ON SALES (PROFIT MARGIN)	-3,44	%	-3,37	%	,00	%
GROSS PROFIT MARGIN	8,19	%	2,70	%	7,77	%
OPERATIONAL RESULT	-5,33	%	-5,11	%	-,37	%
SALES TURNOVER ON LIABILITIES	1,90	TIMES	4,38	TIMES	5,75	TIMES
FOREIGN CURRENCY ON ASSETS
FOREIGN CURRENCY ON LIABILITIES

EXCHANGE RATE:
US$ 1,00 = R$ 2,22	- OFFICIAL RATE ON 24/06/2014
US$ 1,00 = R$ 2,34	- OFFICIAL RATE ON 31/12/2013
US$ 1,00 = R$ 2,04	- OFFICIAL RATE ON 31/12/2012
US$ 1,00 = R$ 1,87	- OFFICIAL RATE ON 31/12/2011

COMMENTS ON THE FINANCIAL INFORMATION:

FOLLOWS ATTACHED WORKSHEET WITH MAIN FINANCIAL RATIOS.

THE FIGURES AVAILABLE SHOW AN UNBALANCED FINANCIAL STANDING. IT HAS LOW LIQUIDITY AND HIGH LEVEL OF INDEBTEDNESS. IT ALSO SHOWS DROP IN SALES AND POSTED LOSS DUE TO THE HIGH FINANCIAL EXPENSES.

REAL ESTATE:

NOT AVAILABLE

VEHICLES:

NOT AVAILABLE

MACHINES:

NOT AVAILABLE

INSURANCE

NOT AVAILABLE

BANKING REFERENCES

	BRANCH/PHONE:	CITY:
BANCO ITAUBANK S/A	0028 / 71 3346- 9864	SALVADOR/BA
BANCO REAL (SANTANDER) S/A	0593 / 11 3174- 6267	CAMAÇARI/BA
BANCO ITAÚ (UNIBANCO) S/A	0349 / 11 3097- 1164	SALVADOR/BA
BANCO SANTANDER (BRASIL) S/A	0135 / 71 3243- 3144	SALVADOR/BA
BANCO BRADESCO S/A	0826 / 71 3327- 7046	CAMAÇARI/BA
BANCO DO BRASIL S/A	2940 / 11 2128- 7199	SALVADOR/BA

REMARKS: IN BRAZIL THE BANKS ARE PROHIBITED BY LAW TO PROVIDE INFORMATION OR ANY KIND OF COMMENTS ABOUT THEIR CLIENTS. DUE TO THIS LAW PROHIBITION WE ARE UNABLE TO PROVIDE ANY BANKING DETAILS.

ACCORDING TO THE CENTRAL BANK OF BRAZIL OFFICIAL REPORT, THE COMPANY HAS NO RETURNED CHECKS UP TO DATE. (IN THE TERMS OF "CIRCULAR 1682 BRAZILIAN CENTRAL BANK").

ACTIVITIES COMMENTS

SUBJECT IS ENGAGED IN THE MANUFACTURE OF PETROCHEMICALS. IT IS THE UNIQUE PRODUCER OF ACRYLONITRILE IN SOUTH AMERICA.

IMPORT AND EXPORT:

IMPORTS FROM:

UNITED STATES, ITALY AND EUROPE.

EXPORTS TO:

ITALY, UNITED STATES AND ARGENTINA.

MAIN CLIENTS:

DOMESTIC CLIENTS:

BASF

NITRIFLEX

PETROFLEX

PROQUIGEL

RADICI FIBRAS

FOREIGN CLIENTS:	COUNTRY:
FISIPE	ITALY
ICC	USA
INNOVENNE	ITALY
PETROBRAS	ARGENTINA
POLIMERI	ITALY

STAFF:

THE COMPANY HAS: 81 EMPLOYEE(S)

CONCEPT AND FULFILMENT

THE SUBJECT IS A WELL-ESTABLISHED COMPANY, OPERATING SINCE 1976. SO FAR IT HAS HIGH SCALE OF ACTIVITIES AND BELONGS TO A LARGE-SIZED GROUP. SO FAR IT HAS A CLEAR TRADE HISTORY AND MODEST PAYMENT BEHAVIOR.

THE COMPANY HAS TRADE RELATIONS WITH SOME LOCAL SUPPLIERS BUT UP TO DATE ONLY SMALL PAYMENTS WERE REPORTED AND THE SUBJECT IS NOT SAID TO BE USER OF TRADE CREDIT FACILITIES.

THE PROTEST FOUND IS CONSIDERED IRRELEVANT.

MAIN SUPPLIERS:

DOMESTIC SUPPLIERS:

BAHIANA DISTRIBUIDORA DE GÁS - BAHIAGAS

BRASKEM S/A

PETROLEO BRASILEIRO S/A- PETROBRAS

PAYMENT HISTORY:

04 SUPPLIERS REPORTED PAYMENTS:

TOTAL AMOUNT: R$ 24.238,00

AMOUNT OF INVOICES PAID: 17

TOTAL OF PROMPT PAYMENTS: 67,8%

TOTAL OF DELAYED PAYMENTS: 32,2%

HIGHEST INVOICE: R$ 2.933,00

HIGHEST CREDIT: R$ 2.140,00

FINAL OPINION

THE SUBJECT IS A WELL-ESTABLISHED COMPANY IN BUSINESS FOR SEVERAL YEARS. UP TO DATE IT HAS AN UNBALANCED FINANCIAL STANDING BUT A CLEAR TRADE HISTORY AND MODESTO PAYMENT BEHAVIOR.

BASED ON THE OVERALL DATA AVAILABLE THE SUBJECT MAY BE CONSIDERED FOR NORMAL BUSINESS COMMITMENTS. CREDIT FACILITIES HOWEVER SHOULD BE GRANTED ON SECURED TERMS ONLY DUE TO THE ABOVE-MENTIONED FINANCIAL STANDING.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.85
UK Pound	1	Rs.102.69
Euro	1	Rs.81.46

INFORMATION DETAILS

Report Prepared by :

TPT

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.