MIRA INFORM REPORT

Report Date :

22.01.2014

IDENTIFICATION DETAILS

Name :	DOBAC INTERNACIONAL S.A.

Registered Office :	Costa Del Este, Plaza del Este Of. 12-13-14

Country :	Panama

Financials (as on) :	31.12.2013

Date of Incorporation :	1993

Legal Form :	Joint-Stock Company

Line of Business :	Importation and commercialization of security systems, spares for vehicles, cars, heavy equipment.

No. of Employees :	38

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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 – September 30, 2013

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Panama

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

PANAMA - ECONOMIC OVERVIEW

Panama's dollar-based economy rests primarily on a well-developed services sector that accounts for more than three-quarters of GDP. Services include operating the Panama Canal, logistics, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. Economic growth will be bolstered by the Panama Canal expansion project that began in 2007 and is estimated to be completed by 2015 at a cost of $5.3 billion - about 10-15% of current GDP. The expansion project will more than double the Canal's capacity, enabling it to accommodate ships that are too large to traverse the existing canal. The United States and China are the top users of the Canal. Panama is also constructing a metro system in Panama City, valued at $1.2 billion and scheduled to be completed by 2014. Panama''s booming transportation and logistics services sectors, along with aggressive infrastructure development projects, have lead the economy to continued high growth in 2012. Foreign investment, at around 10% of GDP in both 2011 and 2012, has continued to be a source of growth. Strong economic performance has not translated into broadly shared prosperity, as Panama has the second worst income distribution in Latin America. About 30% of the population lives in poverty; however, from 2006 to 2012 poverty was reduced by 10 percentage points, while unemployment dropped from 12% to 4.4% of the labor force in 2012. The US-Panama Trade Promotion Agreement was approved by Congress and signed into law in October 2011, and entered into force in October 2012. Panama also achieved removal from the Organization of Economic Development''s gray-list of tax havens by signing various double taxation treaties with other nations.

Source : CIA

IDENTIFICATION

CORRECT COMPANY NAME	DOBAC INTERNACIONAL S.A.
TAXPAYER REGISTRATION	RUC 3797135269766
MAIN ADDRESS	Costa Del Este, Plaza del Este Of. 12-13-14,
POSTAL CODE	8321319WTC
DEPT/PROV/REGION/STATE	Panamá / Corregimiento Juan Diaz
COUNTRY	PANAMA
TELEPHONE	(507) 2714300 - 2714319
CORPORATE E-MAIL	dobac@redfujimoto.com
COMMENTS
Emails: finanzas@redfujimoto.com ventas@redfujimoto.com mercadeo@redfujimoto.com

EXECUTIVE SUMMARY

Date of foundation	1993
Shareholders' equity	11,953,083.00 US$ Dollars (31DEC2013)
Annual revenues	US$ 19,140,788.00 US$ Dollars (31DEC2013)
Profits (loss)	866,278.00 US$ Dollars (31DEC2013)
permanent employees	38
Chief Executive	CARBONELL C., JORGE LUIS
Disposition	Excellent. Full information and Financial Statements.
Payments policy	Usually to terms / good
Number of times that this company was required: 2

REPUTATION

NOTHING AGAINST COMPANY

LEGAL STRUCTURE

LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	01MAR1993
NOTARY OFFICE	Third-circuit	DURATION	Perpetual
REGISTRATION	Card 269766, Volume 219, Entry 10854
INITIAL CAPITAL	US$.10,000.= Dollars
SHAREHOLDERS EQUITY	11,953,083.00 US$ Dollars (31DEC2013)
CURRENT EXCHANGE RATE (US$)	B/.1.= per USD.1.00
COMMENTS
Registered Agent: VICENTE GONZALEZ CORONADO

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
CARBONELL C., JORGE LUIS	Chairman	100%

WHO IS WHO?

CARBONELL C., JORGE LUIS
TITLE	Chairman
NATIONALITY	Panamanian
D.O.B.	11DEC1968
DOMICILE	Residencial Balmoral, Casa 17-S, Costa del Este
PROFESSION	Business Administrator
BACKGROUND INFORMATION	Professional with 25 years of experience.

BUSINESS HISTORY

Organized on 01/03/1993, in accordance with Notarial Act 2011.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
FRENOS Y EMBRAGUES DE PANAMA S.A.	PANAMA	(AC) 10423311179	Related

BUSINESS

SIC Classification

5 5 - AUTOMOTIVE DEALERS AND GASOLINE SERVICE STATIONS. (New and Used Car Dealers, auto and home supply stores, gasoline service stations.)

Main activity

Importation and commercialization of security systems, spares for vehicles, cars, heavy equipment.

Products: Pads, shoes, rotors and drums, hydraulic gear, shock absorbers.

Brands: KASHIMA, KBI, IZUMO

O P E R A T I O N S

Import

Yes

Export

Yes

% CASH SALES / METHOD

70%

% Credit SALES / Terms

30% at 60, 90, 120 days

% Ventas exterior (Paises)

70%

% DOMESTIC PURCHASES

% FOREIGN PURCHASES

95%

SELLING TerritorY

Domestic market and abroad

EMPLOYEES

LOCATION
PREMISES	Rented
OTHER PREMISES	Rented premises. They pay a rent of US$.14,000.= Dollars monthly.

Comments

They offer solutions in Active Safety Systems (SAS) with warranty and durable quality (ISO/TS16949) to automotive service workshops.

FINANCIAL INFORMATION

Disposition

Excellent. Full information and Financial Statements.

Interviewee(s)

Yariela Mendoza

Position(s)

Accountant

Information provided

Ms. Mendoza kindly supplied commercial and operating data, as well as the Balance Sheet for the FY as of 31/12/2013.

Additional information was obtained from official sources.

BALANCE SHEET
Balance sheet date	31DEC2013
Type of balance sheet	Annual
Period	12 months
Currency	US$ Dollars
Exchange rate per US$	1
A S S E T S
Current Assetsd	17,274,565.00
Fixed	10,686,238.00
Total Assets	27,960,803.00
L I A B I L I T I E S
Current liabilities	13,104,316.00
Long term	2,903,404.00
TOTAL LIABILITIES	16,007,720.00
S H A R E H O L D E R S' E Q U I T Y
Total shareholders equity	11,953,083.00
Total Liab. / Sh. equity	27,960,803.00
Sales	19,140,788.00
Profit (Loss)	866,278.00

R A T I O
Liquidity ratio	1.32	Current assets / Current liabilities
Debt-to-equity ratio	91.21 %	(Shareholders' equity / Current liabilities %)
Profitability margin	4.53 %	(Profits / Sales %)
Working capital	4,170,249.00	(Current assets - Current liabilities)

FINANCIAL SITUATION

SATISFACTORY

Taking into account the last Financial Statement submitted and/or other factors analyzed, we believe that financial Situation of the Company is SATISFACTORY due to the following considerations:

Liquidity Ratio is acceptable. Working capital shows a positive margin. Shareholders' equity covers acceptably its liabilities. Final results are moderate.

Main fixed assets of the company (general detail)

They have insured their asssets up to the amount of US$3 Million Dollars, to be expired in December 2014.

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Supplier: SUPREME OVERSEAS CORP	Tel.: (507) 4303572	Country: PANAMA
Goods/Services? : Cargo services
Highest credit? : US$ Unlimited
Client since? : 2003	Terms? : 30 days	Performance? : Prompt
Supplier: AIR SEA WORLD	Tel.: (507) 2698988	Country: PANAMA
Goods/Services? : Transpor of cargo
Highest credit? : US$ Unlimited
Client since? : 2003	Terms? : 60 days	Performance? : Prompt

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

Supplier	Country
LELING SHANDONG GOLD PHOENIX	CHINA
HINDUSTAN COMPOSITES	INDIA

Comments :

It banks with BANCO GENERAL DE PANAMA.

GENERAL INFORMATION

Explanation about commercial reputation

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.54
UK Pound	1	Rs.101.08
Euro	1	Rs.83.38

INFORMATION DETAILS

Report Prepared by :

NNA

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.