MIRA INFORM REPORT

Report No. :	324103
Report Date :	02.06.2015

IDENTIFICATION DETAILS

Name :	LIPESA COLOMBIA S A
Registered Office :	Carretera Central Bogota Tunja Km 30 Frente A Bavaria Tocancipa Cundinamarca, Tocancipa, Bogota D.C.
Country :	Colombia
Date of Incorporation :	03.09.1997
Legal Form :	Joint Stock Company
Line of Business :	Subject is a manufacturer of various chemical products.
No. of Employee :	217

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Colombia	A2	A2

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

COLOMBIA - ECONOMIC OVERVIEW

Colombia's consistently sound economic policies and aggressive promotion of free trade agreements in recent years have bolstered its ability to weather external shocks. Real GDP has grown more than 4% per year for the past four years, continuing almost a decade of strong economic performance. All three major ratings agencies have upgraded Colombia's government debt to investment grade, which helped to attract record levels of investment in 2013 and 2014, mostly in the hydrocarbons sector. Colombia depends heavily on energy and mining exports, making it vulnerable to a drop in commodity prices. Colombia is the world's fourth largest coal exporter and Latin America's fourth largest oil producer. Economic development is stymied by inadequate infrastructure, inequality, poverty, narco-trafficking and an uncertain security situation. Moreover, the unemployment rate of 9.2% in 2014 is still one of Latin America's highest. The SANTOS Administration's foreign policy has focused on bolstering Colombia's commercial ties and boosting investment at home. Colombia has signed or is negotiating Free Trade Agreements (FTA) with more than a dozen countries; the US-Colombia FTA went into force on May 2012. Colombia is also a founding member of the Pacific Alliance - a regional grouping formed in 2012 by Chile, Colombia, Mexico, and Peru to promote regional trade and economic integration. In 2013, Colombia began its ascension process to the OECD. In 2014, Colombia passed a tax reform bill to offset the lost revenue from the global drop in oil prices. The SANTOS administration is also using tax reform to help finance implementation of a peace deal, in the event FARC and the government reach an agreement in 2015. Colombian officials estimate a peace deal may bolster economic growth by almost 2%.

Source : CIA

REGISTERED NAME & COMPANY SUMMARY

IDENTIFICATION
Ordered as:	Lipesa
Address in the order:	Carretera Central Bogota Tunja Km 30 Frente A Bavaria Tocancipa Cundinamarca
Legal Name:	LIPESA COLOMBIA S A
Trade Name:	Lipesa
Legal Address	Carretera Central Bogota Tunja Km 30 Frente A Bavaria Tocancipa Cundinamarca
Postal Town	TOCANCIPA
Post Code	N.A.
Primary Geographic Area	BOGOTA D.C.
Country	CO
Location Status	Headquarters,
Operative Address	Carretera Central Bogota Tunja Km 30 Frente A Bavaria Tocancipa Cundinamarca Colombia
Telephone:	0057 1 8786600	NIT :	830035263 - 2
Fax:	0057 1 8786600	Legal Form:	Sociedad Anonima
Email:	colombia@lipesa.com	Registered in:	CO
Website:	http://www.lipesa.com/colombia/	Date Created:	1997
MANAGERS:	URIBE OCHOA HECTOR JAIME, President	Date Incorporated:	September 3rd 1997
Staff:	217	Stock:	N.A.
		Value:	N.A.
Activity:	Chemical products manufacturer.

DIRECTORS/MANAGEMENT

Management:
	URIBE OCHOA HECTOR JAIME, president and proxy BERNAL LONDOÑO IVAN DARIO, proxy substitute CHAPARRO NIETO SANDRA LUCIA, second proxy substitute VICTOR HERNAN ROCHA ROJAS, accountant ANDREA PARDO, controller

NEGATIVE INFORMATION

Legal Filings

The sources consulted record no detrimental legal or labor court information.

SHARE & SHARE CAPITAL INFORMATION

Na

PAYMENT INFORMATION

PAYMENTS
	made on a 60 days basis - monitored over the last 12 months

GROUP STRUCTURE & AFFILIATED COMPANIES

Shareholders - MANAGERS - RELATED COMPANIES
Shareholders Parent Company(ies):
	LIPESA COLOMBIA SA is a subsidiary of the privately held Venezuelan company LIMPIADORES INDUSTRIALES PETROLEROS S.A. or LIPESA, S.A. LIPESA, SA. Bello Monte Norte, calle Orinoco c/c Baruta, Edf. LIPESA, PH, Caracas-Venezuela. ZP 1050 Phone number: +58 212 9523838

FINANCIAL INFORMATION

FINANCIALS - COMMERCIAL TRENDS AND FORECAST
We have contacted Andrea Pardo, Controller, who provided us with the revenue for 2014. The full financial data for previous years were obtained from an official source, please find them enclosed. For your convenience, we have translated the main figures:
Currency	DATE
COP	2014
Turnover	50 000 000 000
The cash flow is	Normal

Currency	DATE
COP	2013
Turnover	37 998 000 000
Operating Income	3 252 000 000
Net Income	1 353 000 000
Current Assets	25 618 000 000
Non-Current Assets	11 367 000 000
Net worth	14 627 000 000
Liabilities	22 358 000 000
The cash flow is	Normal

Currency	DATE
COP	2012
Turnover	31 697 000 000
Operating Income	1 839 000 000
Net Income	670 000 000
Current Assets	18 716 000 000
Non-Current Assets	9 807 000 000
Net worth	12 070 000 000
Liabilities	16 454 000 000
The cash flow is	Normal

FOREIGN EXCHANGE RATES

Na

ADDITIONAL INFORMATION

POLITICAL DATA	ECONOMIC DATA
Form of Government: Republic Economic Risk: Low	Currency: 100.00 COP = 0.0393031 USD Branch Situation: Stable

BANKS
Name of the Bank	Bancolombia
Comments	This information was confirmed by the interviewee.
BUSINESS HISTORY
	LIPESA COLOMBIA SA is the Colombian branch of the Venezuelan company LIPESA founded in 1980. It was incorporated in Colombia on September 3rd 1997.

PRINCIPAL ACTIVITY
	LIPESA COLOMBIA SA is a manufacturer of various chemical products.
Products/Services description:	LIPESA COLOMBIA SA formulates, develops, manufactures and sells chemicals. The following is an exhaustive list of the chemicals manufactured by the company: Viscosity reducers of new technology recently patented Demulsifiers Reverse emulsion breakers Scale and corrosion inhibitors Antifoulants Surfactants Paraffin and asphaltene dispersants Drilling mud additives Polymers Foam promoters Biocides Oxygen scavengers Oil well stimulation additives H2S scavengers Organic and Inorganic Polymers for Dewatering and Clarification Partially Hydrolyzed Poly Acrylamide (PHPA) Xanthum Gum Water Based Corrosion Inhibitors Oxygen Scavengers Drilling Mud Lubricants Emulsion Preventers Mud Dispersants / Deflocculants Starches Primary and Secondary Emulsifiers Clay Stabilizers Clay Swelling Inhibitor Dissalting demulsifiers Filming and neutralizer corrosion inhibitors Anti-fouling Anti-foams Oil and residuals viscosity reducers Anti-oxidants Oil soluble scale inhibitors Solids wetting agents Sulfur compound scavengers Scale and corrosion inhibitors Dispersants and Bio-dispersants Antifoams Steam Generation Oxygen scavengers Neutralizing and filmic amines Internal chemical treatment Scale inhibitors Dispersant an sludge conditioners Ion exchange resins Resin cleaners Water Clarification, Lime Softening And Waste Water Treatment Coagulants and flocculants Filtration aids Thickening and dewatering polymers Reverse emulsion breakers Digesting additives Pulp bleaching scavengers Scale and corrosion inhibitors Ink removers Fiber softeners Pitch control Retention and drainage aids Optical brightener Dry strength resins Wet strength resins Felt cleaners Coating additives Coating-release Cationic and anionic polymers Sizing additives Cold and hot rolling oils Stranding oils Continuous casting oils Fire resistant Hydraulic fluids Detergents Electrolytic cleaners Acid inhibitors Stool and mold coatings Refractories Atmospheric corrosion protectors Rust inhibitors Dust control
Sales are:
	Wholesale, Retail
Operations area:
	National, International
The company imports from United States, Ecuador, Venezuela
The company exports to Peru, Dominican Republic, United States
Trade References:
	SNF HOLDING COMPANY 1 Chemical Plant Road Riceboro, GA 31323 Telephone: 877.339.8349 Date of beginning of commercial transactions: The company's new informatic system only traces back the relationship to January 1st 2012, but according to the interviewed it is a lot prior to that date. Terms of payment: net 90 Regularity and average sum of transactions: regular basis, every month Maximum credit granted: open terms / no credit limit Short opinion of company as a client: Regular customer, however slow payment
The subject employs 217 employee(s)
Comments on staff:
	This information was confirmed by the interviewee.
LOCATION
Headquarters
	Carretera Central Bogotá Tunja Km 30 Frente A Bavaria Tocancipa Cundinamarca Colombia
Comments on location:
	This information was confirmed by the interviewee.
Branches:	Our searches established several branches of the company in various cities in Colombia. Those branches provide technical and sales services only. The exact addresses were not recovered, here is a list of the cities in which those branches are located: Barrancabermeja Barranquilla Cali Cartagena Medellín Neiva

SUMMARY
FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	GOOD	Public	NO
Indebtedness	CONTROLLED	Payments	REGULAR
Cash	NORMAL

ADVISED CREDIT	RATING
USD 200 000	13/20

NOTES & COMMENTS

Final Opinion

Mid to large Privately held company with more than 18 years of experience in the field. Part of an important international group. International presence through exports. Financially stable, good revenue for its size alongside with a good profitability. The contacted supplier characterized the company's payment as slow. There were no legal fillings found against the company. A credit line may thus be granted for a maximum of USD 200 000

Person Interviewed
	ANDREA PARDO
Position
	Controller
Comments
	She provided us with the following data: Date of creation Date of incorporation Presence of branches Type of sales Management structure Type of operations Exports/Imports Name of suppliers Financial figures Payments terms Bank Number of employees

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.61
UK Pound	1	Rs.97.27
Euro	1	Rs.69.63

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	ASH

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.