MIRA INFORM REPORT

Report Date :

22.10.2014

IDENTIFICATION DETAILS

Name :	CLADAN S.A.
Registered Office :	RTA Panam/Col Este Km 56 2099 - Barrio : Loma Verde Escobar 1625-Buenos Aires
Country :	Argentina
Date of Incorporation :	31.03.2002
Legal Form :	Sociedad Anónima
Line of Business :	Manufacturing of Pet Food
No. of Employees :	20

RATING & COMMENTS

MIRA’s Rating :

Ba

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Argentina	B1	B1

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

ARGENTINA - ECONOMIC OVERVIEW

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits. The government expanded state intervention in the economy throughout 2012. In May 2012 the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and pre-approval of all imports. In July 2012 the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. During 2013, the government continued with a mix expansionary fiscal and monetary policies and foreign exchange and imports controls to limit the drain in Central Bank foreign reserves, which nevertheless dropped US $12 billion during the year. GDP grew 3% and inflation remained steady at 25%, according to private estimates. In October 2013, the government settled long-standing international arbitral disputes (including with three US firms) dating back to before and following the 2002 Argentine financial crisis. In early 2014, the government embraced a series of more orthodox economic policies. It devalued the peso 20%, substantially tightened monetary and fiscal policies, and took measures to mend ties with the international financial community, including: engaging with the IMF to improve its economic data reporting, reaching a compensation agreement with Repsol for the expropriation of YPF, and presenting a proposal to pay its arrears to the Paris Club

Source : CIA

STATUTORY INFORMATION

Order:	CLADAN S.A.
Address in the order:	Coelcyora Este N 2099 1625 loma verde Escobon
Legal Name:	CLADAN S.A.
Trade Name:	CLADAN
CUIT:	30-70794361-7
Date Created:	2002
Date Incorporated:
Legal Address:	RTA PANAM/COL ESTE KM 56 2099 - BARRIO : LOMA VERDE ESCOBAR 1625-BUENOS AIRES
Operative Address:	Colectora Este 2099, Ruta 9 Km 56. (1625) Loma Verde / Escobar, Argentina.
Telephone:	54 348 4429250 / 54 348 4460256
Fax:	54 348 4495250
Legal Form:	Sociedad Anónima
Email:	info@cladan.com.ar
Registered in:	AGENCIA PILAR CALLE 12 DE OCTUBRE 574, ACCESO NORTE PILAR KM 53.300 (1629) 1629 BUENOS AIRES
Website:	web.cladan.com.ar
Manager:	José Daniel Cardona, President
Staff:	20
Activity:	Pet Food Manufacturing
SIC Codes:	2047 2048
NAICS Codes:	311111 311119
BANKS
Name of the Bank:	BANCO DE LA PROVINCIA DE BUENOS AIRES
	The company currently maintains an open credit of ARS 6045,40 with this institution.
Name of the Bank:	BANCO SANTANDER RIO S.A.
	The company currently maintains an open credit of ARS 2057,3 with this institution.
Name of the Bank:	BBVA BANCO FRANCES S.A.
	The company currently maintains an open credit of ARS 714,2 with this institution.
Name of the Bank:	HSBC BANK ARGENTINA S.A.
	The company currently maintains an open credit of ARS 693 with this institution.
Name of the Bank:	AMERICAN EXPRESS ARGENTINA S.A.
	The company currently maintains an open credit of ARS 77,4 with this institution.
	According to the classification of banking relations of Argentina, the company operates with the following level: 1. This is the highest classification in the system. It means that the company/person is fulfilling correctly its current Credit obligations. This is therefore positive information that will enable the granting of any line of credit.
	There are no of rejected checks for this client
HISTORY
	The company started business in 2002
PRINCIPAL ACTIVITY
	Cladan is a specialized animal nutrition company. Its product line includes: vitamin mineral cores, additives, premixes for complete balanced poultry, pigs and cattle and laboratory services quality control and technical assistance food. Animal Nutrition Cladan has maintained for more than 10 years a business relationship with a distributor of Dupont Danisco Animal Nutrition products in Argentina.
Products/Services description:	BIRDS Mineral core Core vitamin Premix barbecuers Pre Initiator Premix barbecuers Initiator Terminator Premix barbecuers Premix barbecuers Retreat SWINE Pig Feed lactis replacement Optimix PX F-5 Growth Optimix Phase 6 Terminator Core vitamin Pig Feed recreate PLUS Pig rearing Feed 18/30 Pig Feed Growth 30/70 Finishing Pig Feed 70/110 Pig Gestation Feed -Lactancia Pig Feed Phase 0 MP Pig Feed Phase 1 MPLT Pig Feed Phase 2 MPLT CATTLE Suplemix Lechera Suplemix Lechera PLUS Suplemix Meat FL Initiator Suplemix Meat FL Terminator Suplemix Beef Breeding Optimix Px Good Lechera Optimix Px Good Lechera PLUS Optimix Px Good Meat FL Initiator Optimix Px Good Meat FL Terminator horse ADDITIVES Oxidizes P Improv Avizyme Phyzyme XP / XP TOT Antiempaste MAX NutriQ and Nutrican BETAFIN S1 Oxidizes LE
Brands:	Avizyme® Phyzyme® XP Phyzyme® XP TPT Betafin® Danisco Xylanase SilvaFeed Nutri Q
Sales are:	Wholesale
Clients:	Petfood Stores, Distributors
Competitors:	Silvateam S.p.a. Via Torre, 7 12080 San Michele M.vì (CN) Italy DuPont Corporation Wilmington, DE USA
Suppliers:	Dupont
Operations area:	National
The company imports from	Italy, USA
The company does not export
The subject employs	20 employees
Payments:	Regular-Made on a 30-45 day basis-monitored over the last 6 months
LOCATION
Headquarters :	Colectora Este 2099, Ruta 9 Km 56. (1625) Loma Verde / Escobar, Argentina.
Company's Distributors:	CLADAN LITORAL J.J. Bruno (Km 315 Ex Ruta 39) y 28 del Oeste Norte (3269) - Concepción del Uruguay – Entre Ríos Teléfono: 03442 - 437053 CLADAN PAMPEANO Ovidio Lagos 561 (Ruta 8) (2600) - Venado Tuerto – Santa Fe Teléfono: 03462 - 315225
Branches:	PLANTA ELABORADORA VILLA ROSA D. Prat 2507 Pilar Buenos Aires PLANTA ELABORADORA LOMA VERDE Colectora Este 2099 Escobar Buenos Aires
Business Overview:	Companies in this industry manufacture food for dogs and cats, using grains, oilseed products, and meat products. Pet ownership drives demand. The profitability of individual companies depends heavily on effective marketing. Large companies have advantages of scale in manufacturing, marketing, and distribution. Small companies can compete effectively by offering specialized products or by serving a local market. Major products include dog food, which accounts for about 60 percent of industry revenue, and cat food, which accounts for about 30 percent.
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Capital:	AR$ 160 000
Shareholders %:	This is a private company. The main shareholder is: José Daniel Cardona
Management:	José Daniel Cardona, President Claudia Mabel Pérez, Director M.V. Javier Quintar, Marketing Alfredo Irazusta, Vet Lic. Fernando Fontanilla, Technician Rodrigo Pla, Technician Ing. Agr. Pedro Deluchi Nutr. Carlos Alberto Mayorga M.V. Luis Gay Juana González Chion Lic. Sergio Garay Gabriel Otto
Subsidiary companies:	The company does not have subsidiaries
FINANCIAL INFORMATION
	This is a private company which does not make its financial figures public. The following information has been provided by private sources.
Currency	DATE
USD	2013
Turnover	14 042 000
Net Income	1 114 000
Total Equity	3 979 000
The cash flow is	Good
LEGAL FILINGS
	The sources consulted record no detrimental legal or labor court information.
SUMMARY
	CLADAN S.A. is a company dedicated to the manufacture and distribution of pet food. The company has 12 years pf experience in the market with a small sized struture. It has commercial agreements to distribute DUPONT products in Argentina. The company shows a medium-high banking debt. However; it shows high revenues and good payment behaviour. The company is active in the Registry of commerce and shows no negative.
RISK INFORMATION
	Since July 30th, Argentina entered into a Selective Default. The country failed to accomplish payment to the holdouts but continues to meet other payment obligations. The country is not following the considerations made by the US Supreme Court to pay the holdouts of its debt restructuration process (2005 and 2010). The parts had the opportunity to settle an agreement with the help of a facilitator appointed by the NY Count in which the case was handled in the first place. The period of grace began in June 30th, and was accomplished in July 30th, with no positive results. The country expects to achieve an agreement with the holdouts after December 2014. That is when the RUFO clause is expired. The expiration of Rights Upon Future Offers (RUFO) will exclude the bondholders from the preceding restructuring processes (2005-2010), from claiming a better agreement, should the country had accomplished with the holdouts.
	Since July 30th, Argentina entered into a Selective Default. The country failed to accomplish payment to the holdouts but continues to meet other payment obligations. The country is not following the considerations made by the US Supreme Court to pay the holdouts of its debt restructuration process (2005 and 2010). The parts had the opportunity to settle an agreement with the help of a facilitator appointed by the NY Count in which the case was handled in the first place. The period of grace began in June 30th, and was accomplished in July 30th, with no positive results. The country expects to achieve an agreement with the holdouts after December 2014. That is when the RUFO clause is expired. The expiration of Rights Upon Future Offers (RUFO) will exclude the bondholders from the preceding restructuring processes (2005-2010), from claiming a better agreement, should the country had accomplished with the holdouts.
Payments	Regular-Made on a 30-45 day basis-monitored over the last 6 months
Cash	Good
Indebtedness	Controlled-Total bank debt of AR$ 9587,3
CALL
INTERVIEWEE	Lic. Sergio Garay
POSITION	Sales
COMMENTS	The person contacted confirmed activity, President, brands, plants, he refused to provide financial information.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.30
UK Pound	1	Rs.99.16
Euro	1	Rs.78.59

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	PDT

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.