MIRA INFORM REPORT

Report Date :

11.07.2014

IDENTIFICATION DETAILS

Name :	CELULOSE IRANI S/A
Registered Office :	Rua General João Manoel, 157 9º Andar - Sala 903 Centro Rua General João Manoel, 157 9º Andar - SALA 903 Centro
Country :	Brazil
Financials (as on) :	31.03.2014
Date of Incorporation :	06.06.1971
Legal Form :	Publicly Held Corporation
Line of Business :	Manufacture and trade of paper, fiberwood, corrugated cardboard boxes, furniture and sawn wood.
No. of Employees	2500

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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Brazil	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 and address

CELULOSE IRANI S/A

ADDRESSES

MAIN ADDRESS:	RUA GENERAL JOÃO MANOEL, 157 9º ANDAR - SALA 903 CENTRO
ZIP CODE/CITY:	90010-030 - PORTO ALEGRE/RS
PHONE:	51 3220-3535
FAX:	51 3220-3535
E-MAIL:	export@irani.com.br
WEB SITE:	www.irani.com.br

BRANCHES:
ADDRESS:	VILA CAMPINA DA ALEGRIA - BR 153 – KM 47
ZIP CODE/CITY:	89675-000 VARGEM BONITA/SC
PHONE:	49 3441-9000
CNPJ:	92.791.243/0002-94
STATE REGISTER:	250.168.464
ADDRESS:	VILA CAMPINA REDONDA - BR 153 – KM 6
ZIP CODE/CITY:	89675-000 VARGEM BONITA/SC
PHONE:	49 3456-1199
CNPJ:	92.791.243/0007-07
STATE REGISTER:	251.724.093
ADDRESS:	ESTRADA DOS ROMEIROS 943 - KM 39,5
ZIP CODE/CITY:	06500-000 SANTANA DE PARNAÍBA/SP
PHONE:	11 4154-8200
CNPJ:	92.791.243/0011-85
STATE REGISTER:	623.019.886.119
ADDRESS:	VILA CAMPINA DA ALEGRIA - BR 153 - KM,47
ZIP CODE/CITY:	89675-000 VAGEM BONITA/SC
PHONE:	49 3441-9000
CNPJ:	92.791.243/0014-28
STATE REGISTER:	254.148.182
ADDRESS:	RUA FRANCISCO LINDNER, 477 - CENTRO
ZIP CODE/CITY:	89600-000 JOAÇABA/SC
PHONE:	49 3527-5117
REQUESTED ADDRESS:	ESTRADA RS 040, S/N, KM 92
ZIP CODE/CITY:	36820-100 PINHAL/RS

THE COMPANY ALSO HAS BRANCHES LOCATED IN: VARGEM BONITA - SC E MINAS GERAIS - MG, INDAIATUBA - SP, BALNEÁRIO PINHAL - RS AND SÃO JOSÉ DO NORTE - RS. IT ALSO HAS OFFICES IND SÃO PAULO – SP AND JOAÇABA - SC.

LEGAL DATA

MAIN ACTIVITIES:

MANUFACTURE AND TRADE OF PAPER, FIBERWOOD, CORRUGATED CARDBOARD BOXES, FURNITURE AND SAWN WOOD.

LEGAL FORM:	PUBLICLY HELD CORPORATION
INCORPORATION DATE:	06/06/1941
REGISTER DATE:	06/06/1941
BALANCE SHEET FILING DATE:	31/12
TAX CONTRIBUTOR NUMBER(CNPJ):	92.791.243/0001-03
STATE REGISTER:	096/2093572
SHARE CAPITAL:	R$ 151.894.847,81
LAST REGISTER OF CAPITAL:	16/04/2014

BOARD OF DIRECTORS:
PERICLES PEREIRA DRUCK	PRESIDENT DIRECTOR
ODIVAN CARLOS CARGNIN	INVESTORS RELATIONS DIRECTOR
TÚLIO CARLOS REIS GOMES	DIRECTOR
SÉRGIO LUIZ COTRIM RIBAS	DIRECTOR

AUTHORIZED USE OF SIGNATURE

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

SHAREHOLDERS / PARTNERS:
IRANI PARTICIPAÇÕES S/A	59,12%
HABITASUL DESENVOLVIMENTOS IMOBILIÁRIOS S.A.	16,57%
COMPANHIA HABITASUL DE PARTICIPAÇÕES	12,92%
COMPANHIA COMERCIAL DE IMÓVEIS	1,27%
EMPRESA RIOGRANDENSE DESENV. URBANO LTDA	0,10%
CIACOI ADM DE IMOVEIS LTDA	0,26%
SHARES IN TREASURY	0,02%
OTHERS	9,74%

AFFILIATES / SUBSIDIARIES:
HABITASUL FLORESTAL S.A.	100,0%
IRANI TRADING S.A.	99,98%
MEU MÓVEL DE MADEIRA LTDA	99,93%
HGE - GERAÇÃO DE ENERGIA SUSTENTÁVEL	99,98%

COMPANY'S BACKGROUND

CELULOSE IRANI IS A BRAZILIAN COMPANY FOUNDED IN 1941 BY THE SOCIEDADE VINÍCOLA RIOGRANDENSE (A WINERY CORPORATION IN THE RIO GRANDE DO SUL STATE), UNDER OWNERSHIP OF THE TRADITIONAL RIO GRANDE DO SUL FAMILIES, MANDELE, PITTI, OLIVEIRA, AND VELLINHO. AT THE TIME, IT WAS GREETED AS THE SAVIOR OF THE REGION OF JOAÇABA, IN THE STATE OF SANTA CATARINA, BECAUSE OF THE HUGE FOREST RESERVE OF 400,000 PINES THAT ITS 32,000 HECTARES OF LAND SHELTERED.

THE COMPANY DEVELOPED SATISFACTORILY IN THE FACE OF AN UNSTABLE AGRICULTURAL AND INDUSTRIAL POLICY. STARTING IN 1992, IT UNDERWENT AN IMPORTANT RESTRUCTURING PROCESS.

BASED SOLELY ON THE OPTIMIZATION OF EXISTING MATERIAL AND HUMAN RESOURCES, THAT RESTRUCTURING, IN 1994, HAD ALREADY TRIPLED PRODUCTIVITY PER EMPLOYEE AND DOUBLED THE MONTHLY PRODUCTION VOLUME.

TODAY, 59 YEARS OLD AND WITH A DAILY PRODUCTION OF 220 TONS, CELULOSE IRANI IS ONE OF THE MOST IMPORTANT TAXPAYERS OF THE WESTERN REGION OF THE STATE OF SANTA CATARINA. IT IS A REJUVENATED COMPANY WITH 30% OF THE BRAZILIAN MARKET, LEADING THE SECTOR OF LOW GRAMMAGE KRAFT PAPER, MUCH VALUED IN THE PACKAGING AND FOOD PRODUCTS SECTORS.

FURTHER DETAILS ABOUT THE SUBJECT'S HISTORY ARE SO FAR NOT KNOWN.

PUBLIC INFORMATION:

LAWSUITS:
	DATE:	COURT OF LAW:

1	MUNICIPAL LAWSUIT	09/05/13	VARA DE SP-BARUERI
1	FEDERAL LAWSUIT	11/01/11	VARA DE SP-BARUERI

FINANCIAL INFORMATION

GENERAL BALANCE SHEETS AS OF 31/03/2014, 31/12/2013 AND 31/12/2012.

( FIGURES ARE IN THOUSANDS OF REAIS ).

ASSETS
CURRENT:	31/03/2014	31/12/2013	31/12/2012
CASH AND BANKS	49.980	122.300	95.051
INVESTMENTS	1.246	1.161	931
CLIENTS	162.235	127.967	93.785
DIVIDENDS RECEIVABLES	7.987	7.987	5.307
INVENTORY	53.194	51.031	38.064
RECOVERABLE TAXES	4.266	5.133	4.083
OTHER CREDITS	11.815	9.956	12.309
	----------------	----------------	----------------
TOTAL CURRENT ASSETS	290.723	325.535	249.530

LONG-TERM RECEIVABLES:
BIOLOGICAL ASSETS	133.804	146.638	159.912
INTERCOMPANY CREDITS	1.049	1.005	1.553
RECOVERABLE TAXES	3.502	3.207	2.766
JUDICIAL DEPOSITS	645	628	574
ACCOUNTS RECEIVABLES	4.704	6.692	6.806
	----------------	----------------	----------------
TOTAL LONG-TERM RECEIVABLES	143.704	158.170	171.611

FIXED ASSETS:
INVESTMENTS	361.260	349.221	270.809
FIXED ASSETS	582.826	588.111	537.075
INTANGIBLE	1.029	1.016	1.220
	----------------	----------------	----------------
TOTAL FIXED ASSETS	945.115	938.348	809.104
	================	================	================
TOTAL ASSETS	1.379.542	1.422.053	1.230.245

LIABILITIES:
CURRENT:	31/03/2014	31/12/2013	31/12/2012
SOCIAL / LABOR OBLIGATIONS	23.703	30.261	23.369
SUPPLIERS	104.626	121.325	60.155
TAX LIABILITIES	15.390	16.426	11.170
BANKING DEBTS	148.628	136.564	109.398
DIVIDENDS	2.859	19.772	9.957
ADVANCE FROM CLIENTS	1.088	562	955
OTHER DEBTS	9.646	10.670	10.871
	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	305.940	335.580	225.875

LONG TERM LIABILITIES:
LOANS AND FINANCING	299.946	301.930	340.702
INSTALLMENTS TAXES PAYABLE	650	1.560	6.245
TRIBUTARY OBLIGATIONS	17.617	16.911	16.005
DEFERRED TAXES	143.685	143.247	149.684
PROVISIONS	33.010	33.908	37.735
DEBENTURES	89.787	100.688
	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	584.695	598.244	550.371

NET EQUITY:
SHARE CAPITAL	116.895	116.895	103.976
CAPITAL RESERVES	960	960	377
PROFIT RESERVES	150.243	151.280	106.405
OTHER COMPREHENSIVE INCOME	220.809	219.094	243.241
	----------------	----------------	----------------
TOTAL NET EQUITY	488.907	488.229	453.999
	================	================	================
TOTAL LIABILITIES	1.379.542	1.422.053	1.230.245

PROFIT AND LOSS ACCOUNTS AS OF 31/03/2014, 31/12/2013 AND 31/12/2012.

( FIGURES ARE IN THOUSANDS OF REAIS ).

	31/03/2014	31/12/2013	31/12/2012
NET SALES	162.975	575.365	462.443
(-) COST OF SOLD GOODS	129.964	434.769	318.270
	----------------	----------------	----------------
GROSS PROFIT	33.011	140.596	144.173
OPERATING REVENUE (EXPENSE)	-23.279	-22.082	-69.259
FINANCIAL REVENUE(EXPENSE)	-14.557	-51.510	-52.190
	----------------	----------------	----------------
OPERATIONAL PROFIT (LOSS)	-4.825	67.004	22.724
CONTRIBUTION/INCOME TAX	1.581	404	-879
	----------------	----------------	----------------
NET PROFIT (LOSS)	-3.244	67.408	21.845

RATIOS:

31/03/2014

31/12/2013

31/12/2012

QUICK RATIO	,78		,82		,94
CURRENT RATIO	,95		,97		1,10
ACCOUNTS RECEIVABLE TURNOVER	1,00	TIMES	4,50	TIMES	4,93	TIMES
DAYS' SALES IN RECEIVABLES	89,59	DAYS	80,07	DAYS	73,01	DAYS
INVENTORY TURNOVER	2,44	TIMES	8,52	TIMES	8,36	TIMES
ACCOUNTS PAYABLE PERIOD	72,45	DAYS	100,46	DAYS	68,04	DAYS
RETURN ON ASSETS	,12	TIMES	,40	TIMES	,38	TIMES
SALES TURNOVER ON NET EQUITY	,33	TIMES	1,18	TIMES	1,02	TIMES
NET WORTH TIE-UP	1,19		1,20		1,18
INDEBTEDNESS	1,82		1,91		1,71
EQUITY RATIO	35,44	%	34,33	%	36,90	%
WORKING CAPITAL RATIO	-4,97	%	-2,99	%	10,47	%
GENERAL SOLVENCY	1,55		1,52		1,58
RETURN ON NET EQUITY	-,66	%	13,81	%	4,81	%
RETURN ON SALES (PROFIT MARGIN)	-1,99	%	11,72	%	4,72	%
GROSS PROFIT MARGIN	20,26	%	24,44	%	31,18	%
OPERATIONAL RESULT	-2,96	%	11,65	%	4,91	%
SALES TURNOVER ON LIABILITIES	,53	TIMES	1,71	TIMES	2,05	TIMES
FOREIGN CURRENCY ON ASSETS
FOREIGN CURRENCY ON LIABILITIES

EXCHANGE RATE:
US$ 1,00 = R$ 2,21	- OFFICIAL RATE ON 08/07/2014
US$ 1,00 = R$ 2,26	- OFFICIAL RATE ON 31/03/2014
US$ 1,00 = R$ 2,34	- OFFICIAL RATE ON 31/12/2013
US$ 1,00 = R$ 2,04	- OFFICIAL RATE ON 31/12/2012

COMMENTS ON THE FINANCIAL INFORMATION:

FOLLOWS ATTACHED WORKSHEET WITH MAIN FINANCIAL RATIOS.

THE FIGURES AVAILABLE IN 2013 SHOWED A SATISFACTORY FINANCIAL STANDING. IT HAD LOW LIQUIDITY AND HIGH LEVEL OF INDEBTEDNESS. ON THE OTHER HAND, IT SHOWS GROWING SALES AND POSITIVE RESULT.

THE QUARTERLY FIGURES FOR MARCH 2014 STILL SHOW HIGH LEVEL OF INDEBTEDNESS AND LOW LIQUIDITY. IT SHOWS GROWING SALES BUT THE HIGH OPERATING AND FINANCIAL EXPENSES DROVE THE COMPANY TO MAKE LOSS.

REAL ESTATE:

NOT AVAILABLE

VEHICLES:

NOT AVAILABLE

MACHINES:

NOT AVAILABLE

INSURANCE

THE INSURANCE COVERAGE IS DETERMINED ACCORDING TO THE NATURE OF THE ASSET RISKS, AND IS CONSIDERED SUFFICIENT TO COVER POSSIBLE LOSSES ARISING FROM DAMAGES. AS AT MARCH 31, 2014, THE COMPANY HAD CORPORATE INSURANCE AGAINST FIRE, LIGHTNING, EXPLOSION, ELECTRIC DAMAGES AND WINDSTORM FOR PLANTS, RESIDENTIAL LOCATIONS AND OFFICES, INCLUDING GENERAL CIVIL LIABILITY COVERAGE AND COVERAGE OF LIABILITIES OF OFFICERS AND DIRECTORS (D&O), IN THE TOTAL AMOUNT OF R$ 488.145.000,00. THE COMPANY ALSO CONTRACTED GROUP LIFE INSURANCE FOR EMPLOYEES WITH A MINIMUM COVERAGE OF R$ 24 AND A MAXIMUM COVERAGE OF R$ 500, IN ADDITION TO INSURANCE FOR THE FLEET OF VEHICLES AT MARKET VALUE.

THE RISK ASSUMPTIONS ADOPTED, IN VIEW OF THEIR NATURE, ARE NOT PART OF THE SCOPE OF THE AUDIT OR REVIEW OF THE FINANCIAL STATEMENTS AND, THEREFORE, WERE NOT AUDITED/REVIEWED BY OUR INDEPENDENT AUDITORS.

WITH RESPECT TO THE FORESTS, THE COMPANY ASSESSED THE EXISTING RISKS AND ELECTED NOT TO CONTRACT INSURANCE COVERAGE BECAUSE THE PREVENTIVE MEASURES AGAINST FIRE AND OTHER FOREST RISKS HAVE PROVED EFFICIENT. MANAGEMENT UNDERSTANDS THAT THE RISK MANAGEMENT STRUCTURE RELATED TO FOREST ACTIVITIES IS APPROPRIATE TO ENSURE THE CONTINUITY OF THE COMPANY AS A GOING CONCERN.

BANKING REFERENCES

	BRANCH/PHONE:
BANCO DO BRASIL S/A	010-8
BANCO BRADESCO S/A	0433-2
BANCO SAFRA S/A	400-9

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

CELULOSE IRANI S.A. (THE "COMPANY") AND ITS SUBSIDIARIES MANUFACTURE PAPER, CORRUGATED CARDBOARD PACKAGING, AND GUM ROSIN AND TURPENTINE EXTRACTED FROM WOOD RESINS, AS WELL AS SALE OF FURNITURE PREDOMINANTLY OF WOOD. THE COMPANY IS ALSO ENGAGED IN FORESTATION AND REFORESTATION AND USE THE WOOD FROM THEIR OWN REFORESTATION AREAS.

THE COMPANY DECIDED FOR THE CLOSURE OF FURNITURE MANUFACTURING OPERATIONS AS WELL AS THE SELLING OF ITS ASSETS DUE TO CURRENT ECONOMIC CONDITIONS OF THE FURNITURE MARKET FOR EXPORTS AND ALSO DUE TO THE SMALL REPRESENTATIVENESS OF THIS BUSINESS IN THE GROSS REVENUE OF THE COMPANY, THAT ACCOUNT FOR LESS THAN 3% IN THE FIRST HALF OF 2010.

IMPORT AND EXPORT:

IMPORTS FROM:

NOT AVAILABLE.

EXPORTS TO:

HOLLAND, ARGENTINA, SAUDI ARABIA, SOUTH AFRICA, FRANCE, PORTUGAL, CHILE, PARAGUAY, NORWAY, PERU, TURKEY, INDIA, BOLIVIA, VENEZUELA, GERMANY, UAE AND COLOMBIA.

MAIN CLIENTS:
DOMESTIC CLIENTS:	CITY:
ADAMI MADEIRAS S/A	CAÇADOR/SC
ADESI IND. COM. ADESIVOS LTDA	ARAUCÁRIA/PR
ALVACARIM CIA LTDA	CASCAVEL/PR
CURIPEL EMBALAGENS LTDA	PORTO AMAZONAS/PR
FRANGOSUL S/A	MONTENEGRO/RS
IMBALLAGGIO LTDA	BELO HORIZONTE/MG
INDÚSTRIA NACIONAL DE EMBALAGENS LTDA	JABOATÃO DOS GUARARAPES/PE
MOSCHETTI S/A	CANOAS/RS
SACOTEM EMBALAGENS LTDA	PENAPOLIS/SP
SEEBER FASTIPLAS LTDA	DIADEMA/SP
STRAPACK EMBALAGENS LTDA	DIADEMA/SP

FOREIGN CLIENTS:	COUNTRY:
AL -TRUYA FACTORY FOR AND PLASTIC	SAUDI ARABIA
BAHAMDAIN EST. FRO TRADE CONT. AND IND.	SAUDI ARABIA
BOLSI PAPELERA SARANDI S/A	PARAGUAY
CENTRO SERVIZE CARTA SRL	ITALY
CIA PAPELARIA SARANDI S/A	ARGENTINA
DAIEI PAPERS CORP	UNITED STATES
EDWARDS DUNLOP PAPER	AUSTRALIA
INTERNATIONAL FORESTRY INDUSTRIE CC	SOUTH AFRICA
NORSE PAPER A S	NIGERIA

STAFF:

THE COMPANY HAS: 2500 EMPLOYEE(S)

CONCEPT AND FULFILMENT

THE SUBJECT IS AN OLD-ESTABLISHED COMPANY, OPERATING SINCE 1941. SO FAR IT HAS A CLEAR TRADE HISTORY AND NO PAYMENT PROBLEMS ARE NOTED.

THE COMPANY HAS TRADE RELATIONS WITH SEVERAL SUPPLIERS IN BRAZIL. THE SUPPLIERS EXTEND CREDIT FACILITIES TO THE SUBJECT IN TERMS AND AMOUNTS ACCORDING TO THE COMPANY'S NEEDS AND SO FAR NO PAYMENT PROBLEMS ARE NOTED.

THE LAWSUITS REPORTED ARE NOT RELATED WITH TRADE DEBTS. THEY ARE RELATED TO TAX DEBTS THAT FOR ANY REASON THE COMPANY HAS NOT YET PAID. NEVERTHELESS WE POINT OUT THAT THE SAID LAWSUITS DO NOT AFFECT THE COMPANY’S TRADE REPUTATION.

MAIN SUPPLIERS:
DOMESTIC SUPPLIERS:	CITY:
AÇOS GERAIS COMÉRCIO DE METAIS LTDA	CACHOEIRINHA/SC
AGOROSE COM. APARAS DE PAPEIS LTDA	CURITIBA/PR
ALBANY INT. FELTROS E TELAS IND. LTDA	INDAIAL/SC
DALQUIM INDÚSTRIA QUÍMICA LTDA	TRÊS BARRAS/RS
DOW QUÍMICA DO NORDESTE LTDA	ITAJAÍ/SC
FERRAMENTAS GERAIS COM. IMPORT. S/A	PORTO ALEGRE/RS
HERGEN S/A MÁQUINAS E EQUIPAMENTOS	RIO DO SUL/SC
PETROBRAS DISTRIBUIDORA S/A	ARAUCÁRIA/PR
VOITH S/A MÁQUINAS E EQUIPAMENTOS	SÃO PAULO/SP
WEG INDÚSTRIA LTDA	JARAGUÁ DO SUL/SC

PAYMENT HISTORY:

45 SUPPLIERS REPORTED PAYMENTS:

TOTAL AMOUNT: R$ 8.302.341,00

AMOUNT OF INVOICES PAID: 1383

TOTAL OF PROMPT PAYMENTS: 97,8%

TOTAL OF DELAYED PAYMENTS: 2,2%

HIGHEST INVOICE: R$ 270.826,00

HIGHEST CREDIT: R$ 288.227,00

OUTSTANDING INVOICES DUE WITHIN THE NEXT 60 DAYS:

---------------------------	SUPPLIERS:	INVOICES:	TOTAL AMOUNT:
DUE WITHIN 30 DAYS	8	13	R$ 18.411,17
DUE WITHIN 60 DAYS	2	4	R$ 16.026,37

FINAL OPINION

THE SUBJECT IS A WELL-ESTABLISHED COMPANY IN BUSINESS FOR SEVERAL YEARS. UP TO DATE IT HAS A CLEAR TRADE HISTORY AND GOOD PAYMENT BEHAVIOR.

BASED ON THE GENERAL INFORMATION AVAILABLE IT IS BELIEVED THAT GOOD TRADE RELATIONS MAY BE ESTABLISHED. CREDIT FACILITIES MAY BE EXTENDED WITHIN TERMS AND AMOUNTS ADEQUATE TO THE COMPANY'S FINANCIAL STRENGTH.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.88
UK Pound	1	Rs.102.59
Euro	1	Rs.81.69

INFORMATION DETAILS

Analysis Done by :	RAS
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.