MIRA INFORM REPORT

Report Date :

21.10.2008

IDENTIFICATION DETAILS

Name :	ACEROS DE AMERICA INC.
Registered Office :	Carretera No.1 Km.25,0 Río Piedras a Caguas, Caguas
Country :	Republica de Puerto Rico
Financial as on :	31.12.2007
Date of Incorporation :	1977
Legal Form :	Limited Company
Line of Business :	Materials for Construction

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 Complains
Litigation :	Clear

Registered Name 

ACEROS DE AMERICA INC.

TAX-ID 660316868

Summary 

BEGINNER OF ACTIVITIES.  INCORPORATED IN 1977. GENERAL BALANCE AS OF DEC 31/2007: BALANCED ECONOMIC SITUATION WITH POSITIVE FINAL PROFIT. APT FOR CURRENT CREDIT WITH GUARANTEES.

Operations 

CONSTRUCTION MATERIALS

> HARDWARE PRODUCTS

> COMMERCIALIZATION

> DISTRIBUTION

Legal Structure 

BUSINESS TYPE:        LIMITED COMPANY
INCORPORATED:         1977
REGITERED:            Cdad.de Caguas
DURATION:             UNLIMITED
END OF FISCAL YEAR:   DEC 31

Contact 

HEAQUARTERS: Carretera No.1 Km.25,0 Río Piedras a Caguas,

Caguas, kM.25.0 hM 0.0.- Puerto Rico.(CENTRAL ADDRESS CONFIRMED) SEE OTHER PAGES

P.O. Box. 363273, San Juan de Puerto Rico 00936-3273

Fax.: (1787) 720-0590

E-mail: abarcon@acerosdeamerica.com

E-mail: ffernández@acerosdeamerica.com

GENERAL E-MAIL: ada@acerosdeamerica.com

Website: www.acerosdeamerica.com

> Puerto Rico Norte - Sr. Juan Ramos T.E. 787.502.3059

> Puerto Rico San Juan Metro, Sr. Luis Lebron T.E. 787.5602.3061

> Puerto Rico Norte Este Sr. Adolfo Rivera T.E. 787.502.3057

(1787) 747-9331

> Puerto Rico Sur: Sr. Luis Sanabria T.E. 787.502.3063

> Puerto Rico Oeste, Sr. Mario Font T.E. 787.502.3052

> Islas Virgenes , Sr. Juan J. Perez T.E. 787.502.3078

> Ventas Internas Sr. Oscar Torres: T.E. 787.747.9331

> Ventas Internas: Sr. Miguel Amaro T.E. 787.720.5842

HOTLINE: 1.800.981.1390.

Partners

President: BARCON LOPEZ ANGEL

Financial Manager: FERNANDEZ FEDERICO

Accountant: DURAND DELGADO NELLY

Sales Manager: DIAZ ISRAEL

Administration: VELAZQUEZ JULIA

Use of signature: President

Corporate Stock

Share capital: u$s. 7.979.211

Contributed by:

> PACO GARCIA ........................... 50 %

> WOLF OTTO ............................. 50 %

History

With the intention of facing explotation of the branches exhibited opportunely.

By mid 1977 it was set up the titular company and that, to the anticipated aims,

is located at the address mentioned opportunely.

It is not of our knowledge that is integral part of some economic group or that

their managers participate simultaneously in some other companies with seat in

those or other places.

Economic-Financial Position

Through managements carried out with Accountant Nelly Durán Delgado, it has been

possible to obtain partial numbers of the General Balance sheet that the holder

practiced to the 31/12/2007, which are expressed in dollars and with the

intention of illustrating to the Sr.Abonado on the individual.

ASSETS: u$s

------ ---

Current total 4.236.942, 00

Fixed 7.369.495, 00

-------------

TOTAL OF ASSETS 11.606.437, 00

=============

LIABILITIES:

------

Current total 2.427.226, 00

Long term 1.200.000, 00

Net patrimony 7.979.211, 00

-------------

TOTAL OF LIABILITIES 11.606.437, 00

=============

EARNINGS STATEMENT:

--------------------

Net sales 19.680.302, 00

Final balance (gain) 7.137.854, 00

To the closing of the set out exercise, the holder had 3.28 of own resources to

take care of each dollar of commitment assumed in favor of third parties,

understanding that was not needed to resort frequently to the support of third

parties in its managements.

from all point of view, thus obtaining means to take care of its current needs

without apparent difficulties.

Assets

BUILDINGS:

---------

To the closing of 31/12/2007, the holder did not register the possession of

real estate to its name, not being well-known that later has incorporated any

type of goods to its assets.

Related to the building that occupies in the address mentioned, it is possible

to make notice that the same is registered under the name of Paco Garcia,

shareholder, having the same one a good market value.

Commercial References Consulted

* CLIENT SINCE 26 YEARS AGO.

PURCHASE: PAINTS.

CREDIT LINE BY u$s.20.000.-

PAYMENT TERMS: 30 DAYS.

CONCEPT AND FULFILLMENT: VERY GOOD.

Evolution and Results

AS MENTIONED BEFORE, THE COMPANY IS DEDICATED TO COMMERCIALIZATION AND

DISTRIBUTION OF CONTRUCTION MATERIALS, FERROUS ITEMS AND SIMILARS, SUCH AS:

Ironworks in general:

- manual and electrical Tools.

- electrical Products.

- PlUMBING.

- Sanitary.

- Accessory for iron doors.

- Posts for barbed wire.

- wood Connectors.

Pipe:

- COOPER.

- Corrugated.

- Electrical.

- Iron door.

- PVC

- Rectangular galvanized and black.

- Square galvanized and black.

- ISO galvanized Light Schedule 40 (black).

Plywood and wood:

- Panels of construction (Plyform).

- Panels for cabinetmakers.

- decorative Panels.

- Doors and marks.

- Hardboard.

- Plywood.

- Wood for construcTiOn treated and without treating.

- Moldings.

Rods:

- All the thicknesses.

- All the lengths.

- IMPORTED and American.

Products of wire:

- Barbed wire.

- Navajia Wire (Concertinas).

- black Wire of curtains ring.

- Cyclone Fence.

- Nails: currents, galvanized and of steel.

- Screens.

- Mooring cables for rods.

Structural and ornamental steel:

- Angular.

- Beams.

- Channels.

- Tolas.

- Planchelas.

- square and round Bars.

- Grating.

Products to put a roof on:

- channeled Zinc.

- smooth Zinc.

- asphalted Cardboard.

- It covers.

- Shingles.

MisceLlANEOUS:

- Cisterns.

- Tools.

- Ironworks.

THE COMPANY HAS a suitable infrastructure and well mounted organization.

The company has representatives in Puerto Rico Norte; San Juan Metro; Puerto

Rico Norte-Este; Puerto Rico Sur; Puerto Rico Oeste, e Islas Vírgenes.

Approximately 40% of its sales are in cash and 60% with facilities of payment

between 30/60 days, being observed that 85% of operations are made in the

national market.

* 55 EMPLOYEES.

Credit Sales: subject to previous request and with the approval of the Credit

Department.

NATIONAL SUPPLIERS:

----------------------

BARTOW SETEAL INTERNATIONAL

INSULAR WIRE PRODUCTS CORP.

LANCO MANUFACTURING CORP.

 Payment Record and Credit Risk 

SCOTIABANK

BANCO POPULAR DOMINICANO

BOTH BANKS STATE THAT THE COMPANY OPERATES SINCE SOME YEARS AGO WITH A NORMAL

CONDUCT.

Concept

NATIONAL AND OUT OF THE COUNTRY COMPANIES SUPPORT THE COMPANY WITH CREDIT

OPERATIONS WITHOUT MAKING ANY OBJECTIONS ON THE WAY PAYMENTS ARE FULFILL.

* FULFILLMENT WITHOUT OBJECTIONS.

Final Opinion

BASED ON THE PREVIOUS REVIEW, THE COMPANY IS VIABLE FOR CURRENT CREDIT

OPERATIONS WITH PROPER GUARANTEES

* APT FOR CREDIT OPERATIONS.

EXTENSION: 17.10.08

NOTE: All the addresses are confirmed from our previous report provided to Mr.

Abonado.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.83
UK Pound	1	Rs.85.12
Euro	1	Rs.65.86

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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