MIRA INFORM REPORT

Report No. :	349064
Report Date :	18.11.2015

IDENTIFICATION DETAILS

Name :	RICOLTEX SRL
Registered Office :	Alsina Adolfo 2899, 1207-Ciudad Autonoma Buenos Aires
Country :	Argentina
Date of Incorporation :	01.04.1986
Legal Form :	Sociedad de Responsabilidad Limitada
Line of Business :	The company is dedicated to the manufacture of textile items for the industry.
No. of Employee :	190

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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Argentina	C1	C1

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 has taken multiple steps in recent years to deal with these problems. It 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. In October 2013, the government settled long-standing international arbitral disputes dating back to before and following the 2001 Argentine financial crisis. During 2014, the government continued with expansionary fiscal and monetary policies and foreign exchange and imports controls. Between 2011 and 2013, Central Bank foreign reserves had dropped $21.3 billion from a high of $52.7 billion. In July 2014, Argentina and China agreed on an $11 billion currency swap; the Argentine Central Bank has received the equivalent of $3.2 billion in Chinese yuan, which it counts as international reserves.

In 2014, the government also took some 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 agreeing to pay $9.7 billion in arrears to the Paris Club over five years, including $606 million owed to the United States. In July 2014, Argentina made its first payment to Paris Club creditors since the country's 2001 financial crisis. At the same time, the Argentine government in July 2014 entered a technical default on its external debt after it failed to reach an agreement with holdout creditors in the US. The government's delay in reaching a settlement and the continuation of interventionist and populist policies are contributing to high inflation and a prolonged recession, according to private analysts.

Source : CIA

STATUTORY INFORMATION
Legal Name:	RICOLTEX SRL
Trade Name:	GRUPO RITEX
CUIT:	30-61211333-1
Date Created:	1986
Date Incorporated:	01/04/1986
Legal Address:	ALSINA ADOLFO 2899
	1207-CIUDAD AUTONOMA BUENOS AIRES
Operative Address:	Adolfo Alsina 2899
	Buenos Aires, 1207
	Argentina
Telephone:	115 950-5950
Fax:	115 950-5900
Legal Form:	Sociedad de Responsabilidad Limitada
Email:	administracion@ritexweb.com
Registered in:	AGENCIA NRO 46
	CASTRO BARROS 755/761/769
	1217 CIUDAD AUTONOMA BUENOS AIRES
Website:	www.ritexweb.com.ar
Contact:	Armenak Ekserciyan, Director
Staff:	190
Activity:	Textile Manufacturing Industry
Banks
According to Argentinian Central Bank, the company maintains credit lines with the following banks:
BANK	AMOUNT IN AR$
HSBC BANK ARGENTINA S.A.	10424,6
BANCO PATAGONIA S.A.	2839,8
BANCO SANTANDER RIO S.A.	849,3
BANCO DE GALICIA Y BUENOS AIRES S.A.	503,9
According to the classification of banking relations of Argentina,
the company operates with level: 1.
This is the highest classification in the system. It means that the company/person is fulfilling correctly its current Credit
obligations.
There are no rejected checks
History
The company was founded in 1986
PRINCIPAL ACTIVITY
The company is dedicated to the manufacture of textile items for the industry.
Products/Services description:	Unbleached
	Color yarn
	Knitted: Oil and Color
Brands:	MELKA
Sales are:	Wholesale
Clients:	TEXTIL COLORES SRL
	Paraguay
Suppliers:	Lycra
Operations area:	National and Internatioal
The company imports from	India
The company exports to	Paraguay
The subject employs	190 employees
Payments:	No Complaints
LOCATION
Headquarters :	Adolfo Alsina 2899
	Buenos Aires, 1207
	Argentina
Branches:	Parque Industrial de la Ciudad de la Rioja
	Ruta Nacional Nro. 38 y Ruta Provincial Nro. 5
	La Rioja
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Capital:	NA
Shareholders:	Major holders are:
	Armenak Ekserciyan
	Bogos Asadur Ekserciyan
	Alex Eduardo Ekserciyan
Management:	Armenak Ekserciyan, Director
	Bogos Asadur Ekserciyan, Director
	Alex Eduardo Ekserciyan, Director
FINANCIAL INFORMATION
The Company does not publish its financial statements. The following information has been provided by our trade source
USD 2014
Revenue	46 114 000
Net Income	3 386 000
Total Equity	14 337 800
Exports
Annual FOB USD
2015	7.065
2014	515
2013	163.178
2012	335.055
2011	75.908
2010	158.201
LEGAL FILINGS
There are no legal connected to the subject
SUMMARY
The company is dedicated to the manufacture of textile items for the industry.
It has 30 years of experience in the market with a large sized structure.
The comapny maintains various open credit lines with national banks and shows regular payment behaviour.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	No Complaints
CASH FLOW	Normal
STATUS	Active
INTERVIEW
NAME	Jorge
POSITION	Administrative
COMMENTS	He confirmed address, managers, activity, clients and brands.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.98
UK Pound	1	Rs.100.11
Euro	1	Rs.70.35

INFORMATION DETAILS

Analysis Done by :	DIV
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%)

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