MIRA INFORM REPORT

Report No. :	342858
Report Date :	06.10.2015

IDENTIFICATION DETAILS

Name :	COMPAÑIA UNIVERSAL TEXTIL S.A.
Registered Office :	Av. Venezuela 2505, El Cercado Lima
Country :	Peru
Date of Incorporation :	21.06.1989
Legal Form :	SOCIEDAD ANÓNIMA
Line of Business :	Textile Manufacturing Industry
No. of Employee :	843

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 :

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ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Peru	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	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 grew by an average of 5.6% from 2009-13 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%. 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. Growth slipped in 2014, due to weaker world prices for these resources. 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. The HUMALA administration passed several economic stimulus packages in 2014 to bolster growth, including reforms to environmental regulations in order to spur investment in Peru’s lucrative mining sector, a move that was opposed by some environmental groups. 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, El Salvador, India, Indonesia, Turkey and the Trans-Pacific Partnership. Peru also has signed a trade pact with Chile, Colombia, and Mexico, called the Pacific Alliance, that seeks integration of services, capital, investment and movement of people. Since the US-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the United States has doubled.

Source : CIA

STATUTORY INFORMATION
Legal Name:	COMPAÑIA UNIVERSAL TEXTIL S.A.
Trade Name:	COMPAÑIA UNIVERSAL TEXTIL S.A.
RUC:	20100562848
Date Created:	1989
Date Incorporated:	21/06/1989
Legal Address:	Av. Venezuela 2505
	El Cercado Lima,
	Peru
Operative Address:	Av. Venezuela 2505
	El Cercado Lima,
	Peru
Telephone:	51 1 337 5260
Fax:	51 1 337 5270
Legal Form:	SOCIEDAD ANÓNIMA
Email:	postmaster@unitex.com.pe
Registered in:	Peru
Website:	www.universaltextil.com.pe
Contact:	Francisco Javier Seminario de la Fuente, Chief Executive Officer
Staff:	843
Activity:	Textile Manufacturing Industry
BANKS
Banco Central del Peru
The company does not make its banking details public
History
The company was established in 1989
Previous name(s): Confecciones Flyer S.A. (1998)
PRINCIPAL ACTIVITY
Compañía Universal Textil S.A. engages in the manufacture and sale of textile products and apparel in Peru. The Company’s activities include the manufacture, distribution and sale of a variety of woven, knitted and natural fabrics and textiles used in the confection of working clothing and uniforms, as well as men and women apparel.
Products/Services description:	Its activities include the manufacture, distribution and sale of natural fabrics made from cotton and linen fibers, as well as the production of blends and fabrics made from synthetic and artificial fibers, such as polyester and viscose. The company's products also include wool yarns, special wrinkle-fee and anti-stain fabrics, anti-bacterial textiles and textiles with ultraviolet (UV) protection, among others.
Brands:	UT
Sales are:	Wholesale
Clients:	The company distributes its products through retail stores and wholesale distributors, as well as sells clothing to importing firms.
	THE APPAREL GROUP LTD.
	USA
	HAGGAR CLOTHING CO.
	USA
	INDUSTRIAL SHULK CIA LTDA
	Ecuador
	HANNA GEORGES JOSEPH
	Ecuador
Suppliers:	HILANDERIAS UNIVERSAL SAS UNIHILO
	Colombia
Operations area:	National and International
The company imports from	Colombia
The company exports to	USA, Ecuador
The subject employs	843 employees
Payments:	Regular
LOCATION
Headquarters :	Av. Venezuela 2505
	El Cercado Lima,
	Peru
Branches:	*AG. AGENCIA CAL.BARTOLOME HERRERA NRO. 341 (CDRA 18 DE AV PETIT THOUARS)LIMA - LIMA - LINCE -
	*LO. L. COMERCIAL AV. LA ALBORADA NRO. 1085(URB. CHACRA RIOS FBCA. UNIVERSAL TEXTIL)LIMA - LIMA - LIMA -
	*AG. AGENCIA CAL.LOS TALLADORES NRO. 345 URB. EL ARTESANO (ALT. DE LA CDRA. 5 DE LA AV. LOS FRUTALE)LIMA - LIMA - ATE -
	*AG. AGENCIA AV. SANTA ROSA DE LIMA NRO. 1231 URB. RESID.HORIZONTE DE ZARATE (PARADERO CELIMA CDRA 4 DE AV TULISAGOS E)LIMA - LIMA - SAN JUAN DE LURIGANCHO
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	YES
Capital:	53,272
Shareholders:	Directory:
	DIONISIO ROMERO PAOLETTI, Chairman
	LUIS ROMERO BELISMELIS, Vice-Chairman
	JOSÉ ANTONIO ONRUBIA HOLDER, Director
	ENRIQUE PALACIOS REY, Director
	MICHAEL WOODMAN GORBITZ, Director
Management:	Francisco Javier Seminario de la Fuente, Chief Executive Officer
	José Eduardo Acosta Rodríguez - Paiva, Director of Administration and Finance
	Jorge P. Alvarez - Calderón Sehr, Legal Director
	Francisco Javier Murro Florián, Sales Director - Clothing
	Daniel Octavio Delgadillo Amoretti, Director of Production
FINANCIAL INFORMATION
Financial figures for 2014:
Total non-traditional exports in the year 2013 reached US $ 10.929 million FOB in 2014 reached US $ 11.618 million FOB, ie a percentage increase of 6.3%; meanwhile, total exports of textiles and clothing in the year 2013 reached US $ FOB 1.912 million in 2014, it reached US $ FOB 1.741 million, which in turn means a decrease of -9%.
Clothing sold by the company in fiscal year 2014 reached the figure of 689,000 items, of which 123,000 garments were sold in the domestic market and 566,000 units in the garment export market. In the year 2013, total sales of garments reached 676 thousand units, ie, in the year under review an increase of 1.92% was experienced.
The total income from sales of fabrics amounted to S /. 44,082, while the total sales of clothing, came to S /. 37 392 during 2014. Compared with 2013 figures, we have in that year the total sales of fabrics amounted to S /. 45,131 and the sale of clothing S /. 35 881, ie the year in review has been a variation of -2.32% in tissues and an increase of 4.21% in apparel, with reference to the year 2013.
The unit price per linear meter sold in 2014 amounted to S / .16.17 front than in 2013 which reached S /. 15.67; meanwhile, the unit price per garment reached S / .54.27 in 2014, compared to S /. 53.08 unit price of clothing for the year 2013. This positive difference responds to the public with greater purchasing power, which are aimed our products, particularly garments, we manufacture for internationally renowned brands.
With reference to foreign-exchange loss in the year 2014 the company assumed liabilities in foreign currency, which generated losses in the foreign exchange adjustment for S / 709 000 due to the devaluation of the nuevo sol against the US dollar. The weighted exchange rate in 2014 and 2013 were S / .2.989 and S /. 2,796 per US dollar respectively.
All these actions lead to submit to the shareholders, a negative trading result of (S /. 6599).
The balance amounting to (S /. 6599), And added to this figure deferred tax IAS 12 S /. 4760 thousand shows a net loss of (S /. 1839) thousand which combined with retained earnings amounting to S /. 4529, resulting in an accumulated profit of S /. 2'690 thousand.
2012: Exports USD 6,311.20 Thousands
Export connections ('000)
Total(6,311.20)
LEGAL FILINGS
There are no legal connected to the subject
SUMMARY
Compania Universal Textil SA is a Peru-based company principally engaged in the textile industry.
The company has a large sized structure with 26 years of experience in the market.
The financial figures for the subject show regular behaviour and positive profitability.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	No Complaints
CASH FLOW	Normal
STATUS	Active
INTERVIEW
NAME	Luis
POSITION	Administrative
COMMENTS	He confirmed address, branches, staff, managers and activity.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.29
UK Pound	1	Rs.99.31
Euro	1	Rs.54.39

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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