MIRA INFORM REPORT

Report No. :	510814
Report Date :	24.05.2018

IDENTIFICATION DETAILS

Name :	SERVICIOS INDUSTRIALES LO ESPEJO S.A.

Registered Office :	Avenida Apoquindo 3500 Oficina 1502 Las Condes, Santiago

Country :	Chile

Date of Incorporation :	10.05.1967

Legal Form :	Stock Company

Line of Business :	Manufacture of yarns for textiles and dressmaking of clothes.

No. of Employees :	50

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory

Payment Behaviour :	Slow but Correct

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Chile

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 60% of total exports. Copper is Chile’s top export and provides 20% of government revenue.

From 2003 through 2013, real growth averaged almost 5% per year, despite a slight contraction in 2009 that resulted from the global financial crisis. Growth slowed to an estimated 1.4% in 2017. A continued drop in copper prices prompted Chile to experience its third consecutive year of slow growth.

Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, effective 1 January 2004. Chile has 22 trade agreements covering 60 countries including agreements with the EU, Mercosur, China, India, South Korea, and Mexico. In May 2010, Chile signed the OECD Convention, becoming the first South American country to join the OECD. In October 2015, Chile signed 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 October 2016, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $23.5 billion. Chile used these funds to finance fiscal stimulus packages during the 2009 economic downturn.

In 2014, President Michelle BACHELET introduced tax reforms aimed at delivering her campaign promise to fight inequality and to provide access to education and health care. The reforms are expected to generate additional tax revenues equal to 3% of Chile’s GDP, mostly by increasing corporate tax rates to OECD averages.

Source : CIA

COMPANY NAME AND ADDRESS

COMPANY NAME	SERVICIOS INDUSTRIALES LO ESPEJO S.A.
TRADE NAME	SILESA
TAX ID. TYPE	RUT
TAX ID. NUMBER	92861000-4
CURRENT STATUS	Active
MAIN ADDRESS	Avenida Apoquindo 3500 Oficina 1502 Las Condes
CITY/PROVINCE/STATE	Santiago
PHONE NUMBER(S)	(56-2) 2335.5335/ 2234.1179
EMAIL	comex@silesa.cl
REMARKS OF IDENTIFICATION	No website was found.

CREDIT OPINION

Well known industrial company which seems to be operating satisfactorily in a competitive market.

LEGAL INFORMATION

TYPE OF COMPANY	Stock Company
INCORPORATION DATE	10/05/1967
CITY OF REGISTRATION	Santiago
REGISTRY NUMBER	Pages 3275 No. 1385 of Register of Commerce of Santiago (Year 1967)
TERM	Unlimited
INITIAL CAPITAL	E. 3,000,000.00 Escudos (Old currency of Chile)
PAID UP CAPITAL	Ps$720,377,537.00
LAST CAPITAL INCREASE	29/12/2011 (Notary: Juan Francisco Alarios Ovejero)
VALUE OF SHARES	15000 shares without par value
LISTED AT STOCK EXCHANGE	No

BACKGROUND

Initially, it was established as TEXTILO LO ESPEJO SA, then on 29/12/2011 before Notary Francisco Alarios Ovejero, it changed its company name to the current one.

LEGAL ASPECTS

It is classified as medium-sized enterprise.

BOARD OF DIRECTORS, SENIOR EXECUTIVES AND SHAREHOLDERS

NAME

JOB TITLE

STAKE

MASSU ABOGABIR, SEBASTIAN PATRICIO

Diretor/ Manager

6.125%

MASSU ABOGABIR, FRANCISCO JAVIER

INVERSIONES LOS ALERCES SA

MASSU MASSU, PATRICIO ANTONIO

Director

Shareholder

6.125%

57%

30.75%

DATA OF BOARD OF DIRECTORS, SENIOR EXECUTIVES AND SHAREHOLDERS

MASSU MASSU, PATRICIO ANTONIO

Chilean, RUT 4.460.004-8, Commercial engineer.

OPERATIONS

SECTOR	C- Industrial Manufacturing
ACTIVITY	Manufacture of yarns
ISIC CATEGORY	13- Manufacture of textile Products
ISIC CLASS	1311- Preparation and spinning of textile fibres
MAIN ACTIVITY	Manufacture of yarns for textiles and dressmaking of clothes.
% SALES IN CASH	20%
% SALES ON CREDIT	80% (terms at 30-60 days)
% TERRITORY OF SALES	100% domestic market
N. OF EMPLOYEES	50

LOCATION

ADMINISTRATIVE OFFICES: Located at caption address in a commercial-residential zone of the city with easy access. This office is located in the 15^th floor of a building.

PRODUCTION PLANT: Avenida Lo Espejo 02124, San Bernardo - Santiago, RM Región. Phone (56-2) 2854.2409

COMMENTS AS TO OPERATIONS

It operates directly.

It has a portfolio of 100 active clients.

Main Competitors:

- TEXTIL JADUE LTDA

- DISTRIB.COM.MYNAT S.A.

- TIPY TOWN DISENOS LIMITADA-ARJA TEXTIL LIMITADA

- TEXTIL CIRCUTEX LIMITADA

- TELAS ANTOFAGASTA LIMITADA

It imports yarn of cotton fiber. Direct credit at 30 days.

FOREIGN TRADE

	IMPORTS
YEAR	2018 (January-March)
AMOUNT	US$54,469.00
COUNTRIES	India
NUMBER OF OPERATIONS	2

	IMPORTS
YEAR	2017
AMOUNT	US$244,752.00
COUNTRIES	India, France, Brazil
NUMBER OF OPERATIONS	13

	IMPORTS
YEAR	2016
AMOUNT	US$183,435.00
COUNTRIES	India, Italy
NUMBER OF OPERATIONS	13

	IMPORTS
YEAR	2017
AMOUNT	US$189,650.00
COUNTRIES	India, Argentina, Brazil, China
NUMBER OF OPERATIONS	10

FINANCIAL INFORMATION

We had an interview with Miss Angelina Arias (Management Secretary) who provided commercial data except for financials since she wanted to know the name of inquirer.

No financial figures were found through external sources.

FIXED ASSETS

Circular knitting machines, spinning machineS, furniture and office supplies, computer equipment, etc.

INSURANCE

Not found.

PAYMENTS REFERENCES

FOREIGN SUPPLIERS

Country

Phone Number

Contact Name

BST TEXTILE MILLS PVT LIMITED

NYTEX

India

(91- 22) 4206.3999

COMMENTS OF SUPPLIERS

Local consulted suppliers do not register the company as client paying on credit terms; It seems to be that purchases are in cash.

BANKS

Bank Name

Country

BANCO DE CREDITO E INVERSIONES

BANCO DE CHILE

Chile

BANK REFERENCES

Consulted Banks do not provide information of its clients on grounds of confidentiality.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 68.21
UK Pound	1	INR 91.43
Euro	1	INR 80.24
CLP	1	INR 0.11

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRI

Report Prepared by :	SYL

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.