MIRA INFORM REPORT

Report Date :

25.09.2014

IDENTIFICATION DETAILS

Name :	MARZULLO S.A.
Registered Office :	Presidente Eduardo Frei Montalva 3899, Conchali Santiago / XIII Región Metropolitana
Country :	Chile
Date of Incorporation :	April 1983
Legal Form :	Joint-Stock Company
Line of Business :	Subject is engaged in pigment concentrates (Masterbach) for plastic industry
No. of Employees :	120

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)
Chile	A2	A1

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

CHILE - ECONOMIC OVERVIEW

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports of goods and services account for approximately one-third of GDP, with commodities making up some three-quarters of total exports. Copper alone provides 19% of government revenue. From 2003 through 2013, real growth averaged almost 5% per year, despite the slight contraction in 2009 that resulted from the global financial crisis. Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, which took effect on 1 January 2004. Chile has 22 trade agreements covering 60 countries including agreements with the European Union, Mercosur, China, India, South Korea, and Mexico. Chile has joined the United States and nine other countries in negotiating the Trans-Pacific-Partnership trade agreement. The Chilean Government has generally followed a countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and generally allowing deficit spending only during periods of low copper prices and growth. As of 31 December 2012, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $20.9 billion. Chile used these funds to finance fiscal stimulus packages during the 2009 economic downturn. In May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD

Source : CIA

Company name and address

CORRECT COMPANY NAME	MARZULLO S.A.
TRADE NAME	TOPCOLOR
TAXPAYER REGISTRATION	RUT 894074000
MAIN ADDRESS	Presidente Eduardo Frei Montalva 3899, Conchali,
DEPT/PROV/REGION/STATE	Santiago / XIII Región Metropolitana
COUNTRY	CHILE
TELEPHONE	(562) 25307600
CORPORATE E-MAIL	contacto@topcolor.com
WEB	www.topcolor.com
COMMENTS
Fax: 25307690 Other e-mail: antoniomorales@topcolor.com

EXECUTIVE SUMMARY
Date of foundation	1983
Capital stock	US$15,000,000.= Dollars
Shareholders' equity	15,250,000.00 US$ Dollars (31DEC2013)
Annual revenues	US$ 18,800,000.00 US$ Dollars (31DEC2013)
Profits (loss) Net	1,000,000.00 US$ Dollars (31DEC2013)
permanent employees	120
Chief Executive	MARZULLO GARCIA, ENZO MARCELO
Disposition	Moderate. Some data and figures were confirmed.
Financial Situation	SATISFACTORY
Payments policy	Usually to terms / good
Company Size	(GE) LARGE COMPANY
Number of times that this company was required: 3

LEGAL STRUCTURE
LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	04/1983
PLACE OF REGISTRY	Santiago
NOTARY OFFICE	Martín Vásquez Cordero	DURATION	Perpetual
INITIAL CAPITAL	Ps$2,045,641,194.= Pesos
CURRENT PAID-IN CAPITAL	US$15,000,000.= Dollars
SHAREHOLDERS EQUITY	15,250,000.00 US$ Dollars (31DEC2013)
CURRENT EXCHANGE RATE (US$)	Ps$595.80 per 1 USD
COMMENTS
Subject was initially incorporated MARZULLO Y CIA. LTDA. On August 30, 2000, Subject changed its legal status into MARZULLO S.A.

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
MARZULLO GARCIA, ENZO MARCELO	General Manager	0.50%
MORALES BRIONES, ANTONIO	Adm. & Fin. Manager
SANDOVAL, EDY	Operations Manager
MARZULLO VARELA, ENZO	Commercial Manager
VARELA SABANDO, MARIA ANGELICA CLEOPATRA	Shareholder	0.50%
INVERSIONES TOP CIA. LTDA.	Majority Shareholder (Parent Company)	99.00%

BUSINESS HISTORY

Marzullo S.A is a Chilean company engaged in pigment concentrates (Masterbach) for plastic industry. Operations started in April 1983, being pioneers in the manufacturing of this product in the country.

Subject is a family company. It was found by the spouses Marcelo Marzullo Garcia and Maria Angelica Varela Sabando.

To date, Subject is only related to parent company: INVERSIONES TOP Y CIA. LTDA, Chilean company in which the above-mentioned people and their children have shares.

BUSINESS

SIC Classification
T - PROD. QUIMICOS- PLASTICOS- VETERINARIOS-AGROQUIMICOS (Industria quimica en general, Produccion y comercializacion de plasticos y derivados, Veterinarios y agroquímicos, Reactivos)

Main activity

Subject is engaged in the manufacturing and trading of pigment concentrates for plastic industry, such as TOPCOLOR concentrates, ADITOP solid and liquid additives and RESITOP thermoplastic resins, such as: LDPE, LLDPE, PS, PP, ABS, PC, POM, PBT, PET, PA y PAVC, 10 which are supplies for the manufacturing of industrial containers, packages for food, agricultural products, pharmaceutical products, house line, blown film and plastic sheeting.

O P E R A T I O N S

Import

Yes

Country

USA, India, Mexico, Argentina, Brazil.

Export

Yes

COUNTRY

Peru, Uruguay Ecuador, Brasil

% CASH SALES / METHOD

10%

% Credit SALES / Terms

90% (75 days-terms)

% Ventas exterior (Paises)

10%

% DOMESTIC PURCHASES

2%

% FOREIGN PURCHASES

98%

SELLING TerritorY

Domestic and international market

EMPLOYEES

120

LOCATION
PREMISES	Rented
OTHER PREMISES	Subject monthly pays Ps$22,000,000.= Pesos for rent.

Comments

Among international clients: PERUANA DE MOLDEADOS S.A. from Peru.

Monthly payroll amounts to Ps$120,000,000.= Pesos.

FINANCIAL INFORMATION

Disposition

Moderate. Some data and figures were confirmed.

Interviewee(s)

Antonio Morales Briones

Position(s)

Adm. & Fin. Manager

Information provided

Mr. Antonio Morales Briones kindly provided general information, including round figures of the Annual Balance Sheet closed as of 2013. He also stated that sales decreased in 2013 since one of its customers stopped paying them, and stopped purchasing a product which was deemed exclusive for this company (written-down stock). A legal proceeding is being carried out for collection.

Based on preceding investigations, we have figures of Annual Balance Sheet closed as of December 31, 2012 (12 months/not including profitability).

BALANCE SHEET
Balance sheet date	31DEC2013	31DEC2012
Type of balance sheet	Annual	Annual
Period	12 months	12 months
Currency	US$ Dollars	US$ Dollars
Exchange rate per US$	1	1
A S S E T S
Current Assetsd	13,300,000.00	18,107,000.00
Fixed	3,900,000.00	4,314,000.00
Others	520,000.00
Total Assets	17,720,000.00	22,421,000.00
L I A B I L I T I E S
Current liabilities	1,900,000.00	6,550,000.00
Long term	570,000.00
TOTAL LIABILITIES	2,470,000.00	6,550,000.00
S H A R E H O L D E R S'  E Q U I T Y
Total shareholders equity	15,250,000.00	15,871,000.00
Total Liab. / Sh. equity	17,720,000.00	22,421,000.00
Sales	18,800,000.00	21,321,000.00
Profit (Loss) Net	1,000,000.00

R A T I O
Liquidity ratio	7.00	Current assets / Current liabilities
Debt-to-equity ratio	802.63 %	(Shareholders' equity / Current liabilities %)
Profitability margin	5.32 %	(Profits / Sales %)
Working capital	11,400,000.00	(Current assets - Current liabilities)

FINANCIAL SITUATION

SATISFACTORY

Based on the last submitted Financial Statement, Company's Financial Situation is considered as SATISFACTORY, due to the following reasons:

-Liquidity ratio is acceptable. Working capital keeps a satisfactory margin. Shareholders' equity covers its debts promptly. Results have been moderate.

INSURANCE

COMPANY	AGAINST
LIBERTY COMPAÑIA DE SEGUROS GENERALES SA	All risks

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Supplier: TRICON CHILE S.A.	Tel.: 562-25808418	Country: CHILE
Goods/Services? : Resins
Highest credit? : US$ 30,000
Client since? : 2008	Terms? : 30-60-120 days	Performance? : Prompt
Supplier: AGENCIA DE ADUANA FELIPE SANTIBAÑEZ	Tel.: 562-25664300	Country: CHILE
Goods/Services? : Customs service
Highest credit? : Not specified
Client since? : 2009	Terms? : 30 days	Performance? : Prompt

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

Supplier	Country
DUPONT CHILE S.A.	CHILE
OMYA CHILE	CHILE
BASF ALEMANIA	GERMANY

THE FOLLOWING INFORMATION IS REPORTED BY RISK INFORMATION CENTER

No inhibitions, demands, notices, bankruptcies, auction, forfeiture of accounts, delinquent operations were found.

Comments :

BANCO DE CHILE BANCO DEL ESTADO SCOTIABANK Banks refused to provide references under the Bank Secrecy Act, which allows them to reserve all information on their clients.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.02
UK Pound	1	Rs.99.99
Euro	1	Rs.78.37

INFORMATION DETAILS

Analysis Done by :	DIV
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.