MIRA INFORM REPORT

Report Date :

04.09.2014

IDENTIFICATION DETAILS

Name :	FERTILIZANTES DEL SUR S.A.C.
Registered Office :	Carlos Núñez del Arco 110, Urb. Industrial La Chalaca (Cruce Calle Guillermo Ronald)
Country :	Peru
Financials (as on) :	31.12.2011
Date of Incorporation :	22.10.2005
Legal Form :	Closely-held Corporation
Line of Business :	Production, distribution and marketing of fertilizers and chemical inputs for the agricultural, mining and chemical sectors (sulfate, urea, acids, nitrates, zinc dust, hydrogen peroxide, sulfur, bentonite).
No of Employees :	26

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 :	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 – June 01, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Peru	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

PERU - ECONOMIC OVERVIEW

Peru's economy reflects its varied topography - an arid lowland coastal region, the central high sierra of the Andes, the dense forest of the Amazon, with tropical lands bordering Colombia and Brazil. A wide range of important mineral resources are found in the mountainous and coastal areas, and Peru's coastal waters provide excellent fishing grounds. Peru is the world's second largest producer of silver and third largest producer of copper. The Peruvian economy has been growing by an average of 5.6% for the past five years with a stable exchange rate and low inflation, which in 2013 was just below the upper limit of the Central Bank target range of 1 to 3%. For the last three years, this growth was due partly to high international prices for Peru's metals and minerals exports, which account for almost 60% of the country's total exports. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs makes the economy vulnerable to fluctuations in world prices. Peru's rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by 28 percentage points since 2002, but inequality persists and continues to pose a challenge for the Ollanta HUMALA administration, which has championed a policy of social inclusion and a more equitable distribution of income. Poor infrastructure hinders the spread of growth to Peru's non-coastal areas. Peru's free trade policy has continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the EU, the European Free Trade Association, Chile, Thailand, Costa Rica, Panama, Venezuela, concluded negotiations with Guatemala, and begun trade talks with Honduras and El Salvador, Turkey and the Trans-Pacific Partnership. Peru also has signed a trade pact with Chile, Colombia, and Mexico, called the Pacific Alliance, that rivals Mercosur. Since the US-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the United States has doubled. Although Peru has continued to attract foreign investment, political activism and protests are hampering development of some projects related to natural resource extraction.

Source : CIA

IDENTIFICATION
CORRECT COMPANY NAME	FERTILIZANTES DEL SUR S.A.C.
TRADE NAME	FERTISUR S.A.C.
TAXPAYER REGISTRATION	RUC 20512122311
MAIN ADDRESS	Carlos Núñez del Arco 110, Urb. Industrial La Chalaca (Cruce Calle Guillermo Ronald)
DEPT/PROV/REGION/STATE	Callao, 1
COUNTRY	PERU
TELEPHONE	(511) 6690791
CORPORATE E-MAIL	gerencia@fertisur.com
WEB	www.fertisur.com
COMMENTS
We further recall that your order was forwarded without phone number to expedite the investigation.

EXECUTIVE SUMMARY
Date of foundation	2005
Capital stock	S/.1,926,834.= Nuevos Soles
Shareholders' equity	5,204,287.00 Nuevos Soles (31DEC2011)
Annual revenues	US$ 13,412,773.51 Nuevos Soles (31DEC2012)
Profits (loss) Net	675,033.00 Nuevos Soles (31DEC2011)
permanent employees	26
Chief Executive	ROSADIO ROJAS, JOSE CARLOS
Disposition	FAIR
Payments policy	Usually to terms / good
Credit (**)	MODERATE RISK. (Acceptable financial situation but limited).
Number of times that this company was required: 12

LEGAL STRUCTURE
LEGAL STATUS	Closely-held Corporation
DATE OF INCORPORATION	22OCT2005	STARTING DATE	08/12/2005
PLACE OF REGISTRY	Lima
NOTARY OFFICE	Jaime Murguía Cavero	DURATION	Indefinite
REGISTRATION	Electronic Entry 11852837
CURRENT PAID-IN CAPITAL	S/.1,926,834.= Nuevos Soles
SHAREHOLDERS EQUITY	5,204,287.00 Nuevos Soles (31DEC2012)
CURRENT EXCHANGE RATE (US$)	S/.2.80 per 1 USD
MEMBERSHIP	International Fertilizer Industry Association (IFA)
COMMENTS
By act of the General Meeting of 02/11/2013 and 29/04/2014 it was agreed: 1 Accept the resignation of General Manager Jose Carlos Rosadio Rojas ID 40433258 and revoke all powers granted to date. 2 Appoint General Manager of the company to Leonardo Aranda Panay ID 10342918 who single signature and representation of the company, may exercise the powers contained in the scale of powers of society except for those contained in subsections C and D contained in the fifth clause of the deed of incorporation and registered in entry A00001 of electronics item11852837 of registration of legal persons of Lima. 3 To appoint as proxy to Jose Carlos Rosadio Rojas, who at one firm and representation of the company may exercise all powers contained in the scale of powers contained in the fifth clause of the deed of constitution and work recorded in entry A00001of electronic certification No 11852837 of legal persons of Lima. By certified copy of 15/04/2014 and 30/04/2014 provided by notary Renzo Sierra Alberti Sierra in Lima also told in the minutes No 1 on pages 39-41 dated 19/04/2006 legalized under No 39295 before the notary Javier Murguia Cavero. The company declined to provide more information related to shareholders and current holdings. Only indicated that Mr. Javier Eduardo Buendia Aservi is the main shareholder of the company.

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
ARANDA PANAY, LEONARDO	General manager
ROSADIO ROJAS, JOSE CARLOS	Representative
BUENDIA ASERVI, JAVIER EDUARDO	shareholder	YES

WHO IS WHO?

ARANDA PANAY, LEONARDO

TITLE

General manager

NATIONALITY

Peruvian

D.O.B.

01AUG1974

ID

DNI 10342918

DOMICILE

T :15 GR :19 MZ :L SC :3, Villa El Salvador, Lima

TELEPHONE

2870419

PROFESSION

Public accountant

TAX ID

10103429183

BACKGROUND INFORMATION

On 02/06/2014 was awarded by The JGACC as General Manager for a single firm can delegate powers and execute any document on behalf of parents who can perform acts only with the company MC & M SA (ruc 20273962752)

ROSADIO ROJAS, JOSE CARLOS

TITLE

Representative

NATIONALITY

Peruvian

D.O.B.

05JUN1979

ID

DNI 40433258

DOMICILE

RIO MANTARO 641 URB VILLA NORTE, LOS OLIVOS, Lima

PROFESSION

Economist

BACKGROUND INFORMATION

He did his studies at the Catholic University of Peru 
Master in Finance ESAN 2009 to 2012.

REFERENCES

ENTITIES - Consolidated S/. (Jun - 14)
B. Credito 9,486 NORMAL
B. ScotiaBank 26,444 NORMAL
B. Falabella 15,269 NORMAL
Cartera Endosada 
por Incasa a Invita 
Insurances  338,390 NORMAL

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
ALMALOG S.A.C.		20555931833	PERU

PARTICIPATED IN

COMPANY	TITLE	COUNTRY	YEAR / REF
REACTIVOS MINEROS SAC		PERU	2011

BUENDIA ASERVI, JAVIER EDUARDO

TITLE

shareholder

NATIONALITY

Peruvian

D.O.B.

01JUN1977

ID

DNI 10585667

CIVIL STATUS

Single

DOMICILE

Almagro 556, Jesus Maria, Lima

TELEPHONE

2438659

TAX ID

10105856674

BACKGROUND INFORMATION

Was appointed General Manager of REACTIVOS MINEROS SAC in meeting of date 08.06.2000, confirmed by General Meeting of date 15.12.2000 as shown in the Public Registry Certificate Nº 11074263, Entry C 0001 (29.12.2000).
 

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
CONSORCIO LI MA		20510009861	PERU
CONSORCIO RE SER		20509366862	PERU

PARTICIPATED IN

COMPANY	TITLE	COUNTRY	YEAR / REF
REACTIVOS MINEROS SAC		PERU	2011

BUSINESS HISTORY

FERTILIZANTES DEL SUR S.A.C. is a Peruvian Company that operates in agriculture, mining and chemical line; it produces, distributes and exports products for the above-mentioned line. Subject also supply to domestic and international market. 

BUSINESS

SIC Classification

0 - ACTIVIDAD NO BIEN IDENTIFICADA (Actividades No bien especificadas y/o mixtas no determinadas.)

Main activity

Production, distribution and marketing of fertilizers and chemical inputs for the agricultural, mining and chemical sectors (sulfate, urea, acids, nitrates, zinc dust, hydrogen peroxide, sulfur, bentonite). 
 
It is the exclusive representative of HAIFA CHEMICALS LTD. from Israel 
 
The company is a wholesale distributor of chemicals and fertilizers. 
 
The company conducts its business through three business lines: 
 
AGRICOLE- 
 
Soluble products.- 
Boric acid, phosphoric acid, dipotassium phosphate, monoammonium phosphate, monopotassium fosofato, calcium nitrate, magnesium nitrate soluble, potassium nitrate crystals, pentahidradato copper sulfate, magnesium sulfate heptahydrate, manganese sulfate monohydrate, soluble potassium sulfate, sulfate zinc heptahydrate, ferrous sulphate heptahydrate. 
 
Generic products.- 
Standard potassium chloride, diammonium phosphate, ammonium nitrate stabilized, granulated calcium nitrate, potassium nitrate granules, ammonium sulfate, granulated potadio sulfate, sulpomag, triple superphosphate, agricultural urea.
 
 
MINING.- 
 
- Nitric acid 55% 
- Aerofalt 
- Borax 
- Activated Carbon 
- Sodium cyanide 
- Calcium Hydroxide 
- Potassium Hydroxide or caustic soda 
- Sodium metabisulfite 
- 50% Hydrogen Peroxide 
- Zinc Dust Standard 
- Caustic Soda in microbeads or flakes 
- Aluminium sulphate 
- Copper sulfate pentahydrate 25% 
- Zinc sulfate monohydrate 35% 
- Zinc sulphate heptahydrate 
- Ferrous sulfate heptahydrate 
- Sodium Sulfide 
- X-11 Xanthate 
- Xanthate X-6
 
CHEMICAL
- Glacial acetic acid 
- Hydrogen Peroxide 
- Sulphur 
- Bentonite 
- Sodium bisulfite 
- Hydrated lime or calcium hydroxide 
- Quicklime or calcium oxide 
- Sodium cyanide 
- Calcium chloride 
- Sodium hydrosulphite 
- Copper Hydroxide 
- Sodium metabisulfite 
- Ammonium nitrate stabilized 
- Sodium nitrate 
- Lead nitrate 
- Zinc nitrate 
- Copper oxychloride 
- Zinc Oxide 
- Zinc dust 
- Caustic Potash 
- Industrial salt 
- Caustic Soda 
- Caustic Soda liquid 
- Aluminum sulfate type A and B 
- Magnesium sulfate anhydrous 
- Soluble potassium sulfate 
- Standard potassium sulfate

OPERATIONS

Import

Yes

Country

Belgium, Chile, China, Germany, Korea, Russia, Taiwan, Guatemala

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2014	1,373,162.00
2013	5,096,722.00
2012	3,399,245.00
2011	4,847,016.00
2010	3,437,892.00
2009	2,472,858.00

Export

Yes

COUNTRY

Chile, Ecuador, Panama, Dominican Republic and USA.

Annual exports in US$ (FOB)

YEAR	AMOUNT
2014	84,220.00
2013	203,974.00
2012	240,346.00
2011	651,872.00
2010	681,368.00
2009	4,092,299.00

% CASH SALES / METHOD

20%

% Credit SALES / Terms

80% (Terms: 60 days)

% Ventas exterior (Paises)

20%

% DOMESTIC PURCHASES

20%

% FOREIGN PURCHASES

80%

SELLING TerritorY

Domestic Market (80%)

EMPLOYEES

26

LOCATION
PREMISES	Rented
OTHER PREMISES	The Headquarters and plant operate at the heading address. Administration Offices: Avenida Circunvalacion del Club Golf Los Incas 202-204, Avenida Javier Prado Este Oficina 503. Tel. (511) 669-0791 Warehouses: - Mz. F, Lote 26, Urb. Villa Etransa, Subtanjalla, Ica - Calle Los Laureles Km. 518 A.H. California, La Libertad, Viru. - Punta Pariñas 772 S/N Jto (Calle Punta Pariñas 143 Fundo Bocanegra), Callao Until 05/2014 the company had its administrative offices at the following address: Avenida Jose Pardo No 601 Oficina 1203-1204 Miraflores - Tel. (511) 619-9200

Comments

Its main client is the company Consorcio Ganandino S.A.
 
Its main imports of chemical supplies come from China, South Korea, Chile, Israel, Taiwan and Russia. 
 
Its main exports are carried to Chile, Ecuador, Panama and the Dominican Republic

Import:
No.Nandina Product Kg Net U$ CIF U$ CIF/ Kg 
1.-2827200000 CALCIUM CHLORIDE. 100,000 35,898 0.36
2.-2833296000 ZINC.  54,000 29,368 0.54
3.-2833299000 Other sulphates (eg .: CADMIUM). 54,000 38,069 0.70
4.-2834291000 MAGNESIUM NITRATE 52,000 18,378 0.35
5.-2834299000 OTHER NITRATE 150,000 57,930 0.39
6.-2915121000 Sodium formate 297,835 133,036 0.45
7.-3104300000 SULFATO DE POTASIO 626,055 422,226 0.67
 TOTAL:FERTISUR S.A.C. 1,333,890 734,905 0.55

FINANCIAL INFORMATION

Disposition

Poor. Very few information was given. Politely.

Interviewee(s)

Cesar Ramos

Position(s)

Finance department

Information provided

We contacted the company and waited on Mr. Ramos who acceded to providing general information about the company, current administrative representation, business activities and confirming suppliers. 
 
We have completed our 2013 request for financial information to senior management. In case of delivery of information, a supplement will be added. 
 
This report is also supplemented by reliable official and third party sources where we could have access to the 2012 estimated annual sales of the company. 
 
From previous research we have its Balance Sheets closed at 31/12/2011 and 31/12/2010, the main accounts detailed in the corresponding section.

BALANCE SHEET
Balance sheet date	31DEC2011	31DEC2010
Type of balance sheet	Annual	Annual
Period	12 months	12 months
Currency	Nuevos Soles	Nuevos Soles
Exchange rate per US$	2.68	2.8
A S S E T S
Cash/bank		1,036,814.00
Receivables		8,829,847.00
Inventory		7,542,999.00
Others		1,068,884.00
Current Assetsd	18,294,389.00	18,478,544.00
Fixed		640,487.00
Others	387,978.00
Total Assets	18,682,367.00	19,119,031.00
L I A B I L I T I E S
Bank/Suppliers		1,330,910.00
Others		18,664.00
Current liabilities	11,985,562.00	1,349,574.00
Long term	1,492,518.00	11,060,345.00
Others		179,858.00
TOTAL LIABILITIES	13,478,080.00	12,589,777.00
S H A R E H O L D E R S'  E Q U I T Y
Capital		1,926,834.00
Profits (Loss) Net		3,648,677.00
Others		953,743.00
Total shareholders equity	5,204,287.00	6,529,254.00
Total Liab. / Sh. equity	18,682,367.00	19,119,031.00
Sales	35,946,233.00	35,410,138.00
Profit (Loss) Net	675,033.00	953,743.00

R A T I O
Liquidity ratio	1.53	Current assets / Current liabilities
Debt-to-equity ratio	43.42 %	(Shareholders' equity / Current liabilities %)
Profitability margin	1.88 %	(Profits / Sales %)
Working capital	6,308,827.00	(Current assets - Current liabilities)

FINANCIAL SITUATION

FAIR
Taking into account the last Financial Statement submitted and/or other factors analyzed, we believe that financial Situation of the Company is EXTENDED due to the following considerations:
- Liquidity Ratio is very weak
- Working capital is short.
- Indebtedness is higher than equity account 
- Operating results are very limited.

Sales History in US$ (of Balance Sheet, statement of third parties)

Date	Sales (US$)
31/12/2012	61,000,000.00

INSURANCE

COMPANY	AGAINST
Rimac Internacional Cia de Seguros y Rea	Various risks

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Supplier: ACERO DEL CIBAO S.A.	Tel.: (1809) 2472222	Country: DOMINICAN REP.
Goods/Services? : Zinc ash
Highest credit? : US$ 150,000
Client since? : 2005	Terms? : 45 days	Performance? : Prompt
Supplier: VAPOR PROCESOS S.A.	Tel.: (56 2) 24787100	Country: CHILE
Goods/Services? : Copper sulfate
Highest credit? : US$ Not specified
Client since? : sv.years	Terms? : Cash	Performance? : No experience
Supplier: SOCIEDAD CHILENA DE LITIO	Tel.: (56 55) 2351000	Country: CHILE
Goods/Services? : Potassium chloride
Highest credit? : US$ Not specified
Client since? : 2009	Terms? : 90 days	Performance? : Prompt
Supplier: SAVAR AGENTES DE ADUANA	Tel.: (511) 6137070	Country: PERU
Goods/Services? : Customs service
Highest credit? : US$ Not specified
Client since? : 2010	Terms? : 30 days	Performance? : Prompt
Supplier: TRANSPORTES ENCISO S.A.C.	Tel.: (511) 4307946	Country: PERU
Goods/Services? : Freight service
Highest credit? : DC Not specified
Client since? : sv.years	Terms? : 30 days	Performance? : Prompt

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

Supplier	Country
TRAMITES ADUANEROS S.A.C.	PERU
INDUSTRIA GALVANIZADORA INGASA S.A.	GUATEMALA
AGENCIA DE ADUANA TRANSCONTINENTAL	PERU
MOLINOS & CIA. S.A.	PERU
FARMEX S.A.	PERU
TRANSEL AG. ADUANAS	PERU
NEW CHINA CHEMICALS CO. LTD	CHINA
AGRO LAS DUNAS EIRL	PERU
FUNDO SAN FERNANDO S.A	PERU
PREMIUN TECHNOLOGY SERVICE S.R.L	PERU
VELEBIT GROUP SAC	PERU
KG CHEMICAL CORP	RUSSIA
ADUAMÉRICA S.A.	PERU
ACC RESOURCES CO. LP	U.S.A.
BLG	CHILE
HEARTYCHEM CORP	CHINA
RIZE INTERNATIONAL LTD	CHINA
UNISON INTERNATIONAL TRADING CO. LTD	CHINA
JSC VOSKRESENSKIYE MINERALNIYE	GERMANY
BOHIGH ZINC PRODUCT CO LTD	CHINA

CREDIT BUREAU COMMENTS

No recorded negative history of protest of letters, checks and / or notes 
 
The company registered an account unpaid with America Movil by the amount of S/.19.= (Period 29/11/2013)

SUPERINTENDENCY OF BANK & INSURANCE (SBS)

Debt structure for bank. SBS Latest Consolidated Credit Report as of : 31/07/2014

Bank	Debt Rating (*) See caption	Current Debt
		DOMESTIC CURRENCY	FOREIGN CURRENCY
INTERBANK	NORMAL	48.00	456,163.00
SCOTIABANK	NORMAL		1,324,748.00
BIF	NORMAL		431,691.00
COMERCIO	NORMAL		62,064.00
SANTANDER PERU	NORMAL		534,880.00
BANCO GNB	NORMAL		290,563.00
Total		48.00	3,100,109.00
Guarantees		9,342,504.00

CONSOLIDATED DEBT (ALL BANKS)                              ENTITIES NUMBER : 06                           31/03/2013

		Domestic Currency	Foreign Currency
LOANS	:	1,236,050.00
DISCOUNTS	:	3,240,548.00
FINANCIAL LEASING	:	1,627,807.00
FOREIGN TRADE	:	2,809,898.00
	:	1,331,507.00
		--------------------------------------------	--------------------------------------------
TOTAL DEBT	:	10,245,810.00
		=========================	=========================

RATING DESCRIPTION ACCORDING TO THE SBS (Caption)
Normal	Good Financial Situation, Prompt payments, Consistent information. Increasing Trend, Creditworthy.
Potential Problem	Satisfactory Financial Situation but cash flow can be weak. Irregular payments. Irregular Trend.
Deficient	Fair Financial Situation, cash problems, profits shortage, delayed and overdue payments.
Doubtful	Heavy Financial Situation, liquidity shotage, notorious delayed payments, Judicial Collection, Bad Management.
Loss	Bad Financial Situation, Insufficient funds, declared bankruptcy, debt default.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.54
UK Pound	1	Rs.99.73
Euro	1	Rs.79.54

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	SMN

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.