MIRA INFORM REPORT

Report Date :

23.07.2014

IDENTIFICATION DETAILS

Name :	VITAPELLI LTDA - RECUPERAÇÃO JUDICIAL

Registered Office :	Rodovia Comendador Alberto Bonfiglioli, 8000 Caixa Postal: 4413 - Zona Rural

Country :	Brazil

Date of Incorporation :	04.01.2000

Legal Form :	Limited Liability Company

Line of Business :	Manufacturing, trade, import and export of leather and leather goods

No. of Employees	Not Available

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
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

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

VITAPELLI LTDA - "RECUPERAÇÃO JUDICIAL"

ADDRESSES

MAIN ADDRESS:	RODOVIA COMENDADOR ALBERTO BONFIGLIOLI, 8000 CAIXA POSTAL: 4413 - ZONA RURAL
ZIP CODE/CITY:	19064-000 - PRESIDENTE PRUDENTE/SP

PHONE:	18 2101-7500
FAX:	18 2101-7510
E-MAIL:	rosana.lopes@vitapelli.com.br
WEB SITE:	www.vitapelli.com.br

BRANCHES:

ADDRESS:	AVENIDA MANOEL GOULART, 3920 - JARDIM MONTE ALTO
ZIP CODE/CITY:	19064-000 PRESIDENTE PRUDENTE/SP
PHONE:	18 2101-7400
FAX:	18 2101-7410

LEGAL DATA

MAIN ACTIVITIES:

MANUFACTURING, TRADE, IMPORT AND EXPORT OF LEATHER AND LEATHER GOODS.

LEGAL FORM:	LIMITED LIABILITY COMPANY

INCORPORATION DATE:	04/01/2000
REGISTER DATE:	04/01/2000
BALANCE SHEET FILING DATE:	31/12
TAX CONTRIBUTOR NUMBER(CNPJ):	03.582.844/0001-86
STATE REGISTER:	562.175.147.118

SHARE CAPITAL:	R$ 50.240.000,00
LAST REGISTER OF CAPITAL:	28/10/2009

BOARD OF DIRECTORS:

NILSON RIGA VITALE	ADMINISTRATIVE DIRECTOR
MARINA FUMIE SUGAHARA	FINANCIAL DIRECTOR
CLEIDE NIGRA MARQUES	MANAGING PARTNER

AUTHORIZED USE OF SIGNATURE

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

SHAREHOLDERS / PARTNERS:

NILSON RIGA VITALE	R$ 47.956.364,00
CLEIDE NIGRA MARQUES	R$ 1.141.818,00
MARINA FUMIE SUGAHARA	R$ 1.141.818,00

AFFILIATES / SUBSIDIARIES:

A SCAN THROUGH OUTSIDE SOURCES SHOWED THE SUBJECT AND/OR PARTNERS HAS/HAVE THE FOLLOWING UNCONFIRMED HOLDINGS:

SONGALE ADMINISTRAÇÃO E PARTICIPAÇÃO LTDA
VITAPET COMERCIAL INDÚSTRIA EXPORTADORA LTDA
AGROPECUÁRIA C.L.M.Z. LTDA
VITACOURO LTDA
AGROPASTORIL RIBAS DA LAGOA LTDA

COMPANY'S BACKGROUND

THE SUBJECT WAS ESTABLISHED ON JANUARY 04, 2000 AS VITAPELLI LTDA TO BE ENGAGED IN THE SAID LINE OF BUSINESS. ON APRIL 01, 2009 IT WAS TRANSFORMED INTO STOCK COMPANY AND ALTERED ITS NAME TO VITAPELLI S/A. ON OCTOBER 28, 2009 IT WAS TRANSFORMED INTO LIMITED LIABILITY COMPANY UNDER THE ABOVE-MENTIONED NAME.

LOCATED IN BRAZIL, STATE OF SÃO PAULO, MORE PRECISELY IN THE CENTER-WEST AREA, IN THE CITY OF PRESIDENTE PRUDENTE, WHOSE ECONOMY IS BASICALLY RETURNED TO THE CATTLE PRODUCTION, ARISES VITAPELLI.

WITH INTERNATIONAL REPUTATION, VITAPELLI EXPORTS 95 PERCENT OF THE MANUFACTURED LEATHER TO THE EUROPEAN, ASIAN AND NORTH AMERICAN MARKETS.

WITH A BUILT AREA OF 48 THOUSAND SQUARE METERS, HAVING THE LARGEST PLANT FOR LEATHER TANNING IN THE WORLD, VITAPELLI IS THE SECOND LARGEST EXPORTER OF BRAZIL, GENERATING MORE THAN 1350 DIRECT JOBS

REACHING TO A DAILY PRODUCTION OF 13 THOUSAND LEATHER PIECES, AMOUNTING TO AN ANNUAL MEDIUM PRODUCTION OF MORE THAN 3 MILLION AND 700 THOUSAND PIECES BETWEEN THE AREAS OF WET BLUE AND CRUST LEATHER, VITAPELLI REPRESENTS ONE OF THE LARGEST WORLD NAMES TODAY IN THE LEATHER TANNING AREA.

TRADE NAME: "VITAPELLI".

PARTNERS:

NILSON RIGA VITALE: BRAZILIAN, DIVORCED, INDUSTRIAL, HOLDER OF DOCUMENTS CPF 969.890.848-04 AND RG 8.245.645-4 SSP/SP, RESIDENTIAL ADDRESS AT RODOVIA COMENDADOR ALBERTO BONFIGLIOLI, 8000, ZONA RURAL, PRESIDENTE PRUDENTE/SP;

MARINA FUMIE SUGAHARA: BRAZILIAN, SINGLE, TRADER, HOLDER OF DOCUMENTS CPF 038.793.968-76 AND RG 12.106.607 SSP/SP, RESIDENTIAL ADDRESS AT RUA JOAQUIM JESUS DOS SANTOS, 346, CENTRAL PARK RESIDENCIAL, ZIP CODE 19061-532, PRESIDENTE PRUDENTE/SP;

CLEIDE NIGRA MARQUES: BRAZILIAN, DIVORCED, TRADER, HOLDER OF DOCUMENTS CPF 056.233.018-60 AND RG 17.488.789 SSP/SP, RESIDENTIAL ADDRESS AT ALAMEDA ALBINA MIOLA PETRIN, 406, PARQUE RESIDENCIAL DAMHA I, ZIP CODE 19053-360, PRESIDENTE PRUDENTE/SP.

FURTHER DETAILS ARE SO FAR NOT KNOWN.

REMARKS:

ON FEBRUARY 04, 2010 THE COMPANY'S JUDICIAL RECOVERY WAS ADJUDGED AND ON APRIL 19, 2010 SUBJECT WAS REQUIRED TO ADD "RECUPERAÇÃO JUDICIAL" TO ITS NAME, THEN IN THE MEANTIME SUBJECT IS GOING THROUGH THIS PROCEEDING, THE COMPANY'S NAME SHALL BE "VITAPELLI - RECUPERACAO JUDICIAL".

REMARKS:

--------

WHEN CONTACTING THE SUBJECT WE INTERVIEWED MR. MARCELO - FINANCIAL 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:

07 PROTESTS, TOTAL AMOUNT R$ 7.093.396,18

DATE OF FIRST PROTEST: JANUARY/2013 R$ 1.212.475,32

DATE OF HIGHEST PROTEST: JANUARY/2013 R$ 1.670.590,50

DETAILS OF LATEST PROTESTS:

NOTARY OFFICE:	DATE:	VALUE:
3º CARTORIO DE SP-PRESIDENTE PRUDENTE	03/2014	R$ 1.286.412,27
3º CARTORIO DE SP-PRESIDENTE PRUDENTE	03/2014	R$ 415.645,21
3º CARTORIO DE SP-PRESIDENTE PRUDENTE	03/2014	R$ 1.380.180,09
3º CARTORIO DE SP-PRESIDENTE PRUDENTE	03/2014	R$ 975.886,92
2º CARTORIO DE SP-PRESIDENTE PRUDENTE	02/2014	R$ 152.205,87

LAWSUITS:
	DATE:	COURT OF LAW:

4	EXECUTIVE LAWSUITS	06/08/10	4ª VARA DE SP-PRESIDENTE PRUDENTE
34	STATE LAWSUITS	11/02/14	VARA DE SP-PRESIDENTE PRUDENTE
1	JUDICIAL RECOVERY ADJUDGED	04/02/10	2ª VARA DE SP-PRESIDENTE PRUDENTE
15	FEDERAL LAWSUITS	30/06/13	5º VARA DE SP-PRESIDENTE PRUDENTE

JUDICIAL RECOVERY: ("RECUPERAÇÃO JUDICIAL" UNDER BRAZILIAN BANKRUPTCY LAW)

THE SUBJECT HAS FILED FOR JUDICIAL RECOVERY ON ABOVE MENTIONED DATE. JUDICIAL RECOVERY IS A VOLUNTARY PROCEEDING WHICH MAY BE ADOPTED BY COMPANIES WHICH ARE FACING FINANCIAL PROBLEMS AND NEED THE PROTECTION OF BRAZILIAN BANKRUPTCY LAW BENEFITS IN ORDER TO TRY TO IMPROVE THE FINANCIAL STANDING.

THE JUDICIAL RECOVERY UNDER BRAZILIAN BANKRUPTCY LAW IS SIMILAR TO THE PROCEEDINGS OF CHAPTER 11 OF USA BANKRUPTCY LAW.

THE COMPANY SUBJECT TO JUDICIAL RECOVERY IS REQUIRED TO PRESENT RECOVERY PLAN TO BE APPROVED BY THE MAJORITY OF ITS CREDITORS IN A GENERAL CREDITORS ASSEMBLY. PROVIDED THE RECOVERY PLAN IS APPROVED BY THE CREDITORS THE COURT GRANTS THE COMPANY THE RIGHTS OF OPERATING UNDER THE LAW PROTECTION AND A JUDICIAL ADMINISTRATOR IS APPOINTED TO SUPERVISE THE ACCOMPLISHING OF THE PAYMENT TERMS AND THE EXECUTION OF THE RECOVERY PLAN AS APPROVED.

THE JUDICIAL RECOVERY PROCEEDINGS ARE VERY EFFICIENT TO PROTECT THE COMPANIES AND TO GRANT THEM POSSIBILITIES TO RECOVERY FROM FINANCIAL PROBLEMS BUT THE APPROVAL OF THE CREDITORS AND IN-DEEP ACCOMPLISHMENT OF RECOVERY PLAN IS ESSENTIAL TO MAKE SURE THE COMPANY WILL KEEP THE LAW PROTECTION AS GRANTED BY THE COURT AND WILL BE SUCCESSFUL IN RECOVERING FROM THE FINANCIAL PROBLEMS WHICH LEAD IT TO REQUIRE THE JUDICIAL RECOVERY PROCEEDINGS PROTECTION.

FINANCIAL INFORMATION

DUE TO THE SUBJECT'S LEGAL FORM, IT IS NOT OBLIGED TO PUBLISH THE BALANCE SHEET INFORMATION. WHEN INTERVIEWING SOURCES AT THE SUBJECT COMPANY DECLINED TO PROVIDE ANY KIND OF FINANCIAL INFORMATION.

OUTSIDE SOURCES CONTACTED SHOWED NO FINANCIAL DATA ABOUT THIS COMPANY.

EXCHANGE RATE:

US$ 1,00 = R$ 2,24

- OFFICIAL RATE ON 18/07/2014

COMMENTS ON THE FINANCIAL INFORMATION:

IN THE ABSENCE OF FINANCIAL INFORMATION NO COMMENTS CAN BE MADE ABOUT THE SUBJECT'S CURRENT FINANCIAL STANDING.

REAL ESTATE:

OWNED PREMISES ARE VALUED AT R$ 2.293.000,00

VEHICLES:

OWNED VEHICLES ARE VALUED AT R$ 2.843.000,00

MACHINES:

OWNED MACHINES AND EQUIPMENTS ARE VALUED AT R$ 33.185.000,00

INSURANCE

INSURANCE COMPANY:	NOT AVAILABLE
COVERAGE:	FIRE, RAY, EXPLOSION AND OTHERS
VALUE:	R$ 50.000.000,00

INSURANCE COMPANY:	NOT AVAILABLE
COVERAGE:	AIRCRAFT (CIVIL LIABILITY)
VALUE:	R$ 1.639.000,00

INSURANCE COMPANY:	NOT AVAILABLE
COVERAGE:	VEHICLES
VALUE:	R$ 100.000,00

BANKING REFERENCES

	BRANCH/PHONE:	CITY:
BANCODO BRASIL S/A	18 3221-3466	PRESIDENTE PRUDENTE/SP
BANCO ITAÚ (UNIBANCO) S/A	18 3222-9533	PRESIDENTE PRUDENTE/SP
BANCO ITAUBANK S/A	43 3324-4646

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 NOT RETURNED CHECKS UP TO DATE. (IN THE TERMS OF "CIRCULAR 1682 BRAZILIAN CENTRAL BANK").

ACTIVITIES COMMENTS

THE SUBJECT IS ENGAGED IN THE MANUFACTURE, TRADE, IMPORT AND EXPORT OF LEATHER AND LEATHER GOODS.

PRODUCTION OF WET-BLUE AND SEMI-FINISHED LEATHER AND DOG TOYS.

IMPORT AND EXPORT:

IMPORTS FROM:

ITALY.

EXPORTS TO:

ITALY, SPAIN, PORTUGAL, KOREA, ARGENTINA, CHINA, CANADA, TURKEY AND OTHERS.

FOREIGN CLIENTS:	COUNTRY:
ALCOURO	PORTUGAL
ART A PELLI SRL	ITALY
BAUER SRL	ITALY
CONC MASTROTO	ITALY
CURTIFRANCE S/A	URUGUAY
DUMA SPA	ITALTY
IMPORTRE COM INTN LTDA	PORTUGAL
NATUZZI -NATCO SPA	ITALY
OLIMPIC LEATHERS S/A	ARGENTINA
ROMPA LEDER	ITALY
SANCHEZ AGULLO	SPAIN
SHIN KWANG	KOREA
TS SACHS	CANADA

STAFF:

NOT AVAILABLE

CONCEPT AND FULFILMENT

THE SUBJECT IS A WELL-ESTABLISHED COMPANY, OPERATING SINCE 2000. HOWEVER, ITS TRADE HISTORY WAS BLEMISHED BY SEVERAL PROTESTS AND A JUDICIAL RECOVERY PETITION WAS FILED, SHOWING THAT AT THAT TIME THE COMPANY FAILED TO ACCOMPLISH ITS COMMITMENTS WITH SEVERAL CREDITORS / SUPPLIERS.

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. USUALLY THIS KIND OF SUITS DO NOT AFFECT THE COMPANY REPUTATION BUT IN THE SUBJECT SPECIFIC CASE IT IS NOT POSSIBLE TO EVALUATE AS THERE ARE SEVERAL SUITS REGISTERED AND NO DETAILS REGARDING THE AMOUNTS INVOLVED ARE AVAILABLE FOR PUBLIC INSPECTION.

MAIN SUPPLIERS:

DOMESTIC SUPPLIERS:		PHONE:
BARRA MANSA COM. CARNES DERIV. LTDA		11 3735-0533
BASF S/A		12 528-1200
BAYER S/A		11 5694-5087
CHAPECO CIA INDUSTRIAL ALIMENTICÍA		49 321-2011
CIMENTO MAUÁ S/A		21 3804-3100
CLARIANT		11 5683-7233
COBRASCAL IND. COM. CAL. LTDA		11 7886-1622
CURTUME TOURO LTDA		18 3907-9000
MARFRIO IND. COM. IMP. EXP. LTDA		11 4422-7200
MICHELON FULÕES E MOLIN LTDA		54 224-1055
PLASTOLANDIA IND. COM. DE PLÁSTICOS		11 6914-8533
SERGICOUROS		71 3379-7262
TANQUIMICA INDÚSTRIA E COMÉRCIO LTDA		11 4072-5000
TFL DO BRASIL IND. QUÍMICA		16 3720-1022
VANCOPEL		77 3649-7085

PAYMENT HISTORY:

11 SUPPLIERS REPORTED PAYMENTS:

TOTAL AMOUNT: R$ 362.594,00

AMOUNT OF INVOICES PAID: 60

TOTAL OF PROMPT PAYMENTS: 97,2%

TOTAL OF DELAYED PAYMENTS: 2,8%

HIGHEST INVOICE: R$ 55.965,00

HIGHEST CREDIT: R$ 55.965,00

OUTSTANDING INVOICES DUE WITHIN THE NEXT 30 DAYS:

---------------------------	SUPPLIERS:	INVOICES:	TOTAL AMOUNT:
DUE WITHIN 30 DAYS	1	1	R$ 595,00

FINAL OPINION

TAKING INTO ACCOUNT THE FINANCIAL STANDING SHOWED AND THE HIGH NUMBER OF DETRIMENTAL FILES SHOWED IT WOULD BE RECOMMENDED THAT ANY KIND OF BUSINESS DEALINGS SHOULD BE CARRIED OUT IN CASH OR ADVANCED PAYMENT.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.24
UK Pound	1	Rs.102.87
Euro	1	Rs.81.44

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.