MIRA INFORM REPORT

Report Date :

08.04.2011

IDENTIFICATION DETAILS

Name :	ARIZAGA BASTARRICA Y CIA SA ”A.B.C

Registered Office :	Poligono Industrial Azitain, 6, 20600 Eibar Guipúzcoa

Country :	Spain

Financials (as on) :	31.12.2009

Date of Incorporation :	25.10.1943

Legal Form :	Joint stock Company

Line of Business :	Manufacturer of machinery for fluid manipulation

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	339.000,00 €
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, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Spain

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

Company name

ARIZAGA BASTARRICA Y CIA SA ”A.B.C.”

TAX NUMBER: A20016440

EXECUTIVE SUMMARY

Identification

Current Business Name: ARIZAGA BASTARRICA Y CIA SA

Commercial name: ABC COMPRESSORS

Other names: YES

Current Address: POLIGONO INDUSTRIAL AZITAIN, 6

20600 EIBAR GUIPÚZCOA

Branches: 3

Telephone number: 943820400 Fax: 943820235

Corporate e-mail: abc@abc-compressors.com

Trade Risk

Credit Appraisal: 339.000,00 €

Incidents: NO

Bank and business defaults of payment - ASNEF INDUSTRIAL: NO

Financial Information

Balance sheet latest sales (2009): 14.836.858,45 € (Trade Register)

Result: -2.432.545,66 €

Total Assets: 22.098.693,71 €

Social Capital: 6.000.000,00 €

Employees: 105

Listed on a Stock Exchange: NO

Commercial Information

Incorporation date: 25/10/1943

Activity: Mfg. of machinery for fluid manipulation

NACE 2009 CODE: 2813

International Operations: Imports and Exports

Corporate Structure

President:

INARRAIRAEGUI GOMEZ JOSE ANTONIO

Participations: 4

Other Complementary Information

Latest act published in BORME: 31/03/2011 Annual Filed Accounts

Latest press article: 23/03/2010 EXPANSIÓN DEL PAIS VASCO (FINANCIAL DATA)

Bank Entities: There are

The date when this report was last updated is 05/04/2011.

The information contained in this report has been investigated and contrasted on 11/02/2011

Credit Appraisal

Maximum Credit

(from 0 to 6,000,000 €)

Favourable to 339.000,00 €

Financial Situation

Exercise:2009

Treasury	Excellent
Indebtedness	Very low
Profitability	Very Negative
Balance	Excellent

Performance

Incidents	None or Negligible
Business Trajectory	Excellent

INCIDENTS

Summary

LEGAL ACTIONS: No legal actions registered

ADMINISTRATIVE CLAIMS: No administrative claims registered

AFFECTED BY: No significant element.

BANK AND BUSINESS DEFAULTS OF PAYMENT - ASNEF INDUSTRIAL

FINANCIAL ELEMENTS AND SECTORIAL COMPARATIVE

FINANCIAL ELEMENTS

The shaded amounts in the following financial statements have been converted to the norms established in the PGC2007 derived from RD 1514/2007 and 1515/2007, this way comparatives could be shown with the amounts of exercises initiated from 1/01/08.

Balance-sheet analysis

Figures given in €

	31/12/2009 (12)	% ASSETS		31/12/2008 (12)	% ASSETS	31/12/2007 (12)	% ASSETS
ASSETS
A) NON CURRENT ASSETS	7.052.947,62	31,92		7.612.760,56	31,83	9.738.418,00	38,68
B) CURRENT ASSETS	15.045.746,09	68,08		16.306.836,05	68,17	15.439.824,00	61,32
LIABILITIES
A) NET WORTH	17.038.446,79	77,10		18.742.872,59	78,36	19.772.654,00	78,53
B) NON CURRENT LIABILITIES	162.003,00	0,73
C) CURRENT LIABILITIES	4.898.243,92	22,17		5.176.724,02	21,64	5.405.588,00	21,47


A) NON CURRENT ASSETS B) CURRENT ASSETS			A) NET WORTH B) NON CURRENT LIABILITIES C) CURRENT LIABILITIES

Balance Sheet Comments

Total assets of the company decreased in 7,61% between 2.008 and 2.009.

This total assets decrease has been reflected in a reduction of non current assets of 7,35%.

Assets reduction is explained by Net Worth decrease of 9,09% and to indebtedness reduction of 2,25%.

Total assets of the company decreased in 5,00% between 2.007 and 2.008.

This decrease has been greater in non current assets that reduced in 21,83%.

Assets reduction is explained by Net Worth decrease of 5,21% and to indebtedness reduction of 4,23%.

Profit and Loss Account Analysis

Figures given in €

	31/12/2009 (12)	% NET TURNOVER	31/12/2008 (12)	% NET TURNOVER	31/12/2007 (12)	% NET TURNOVER
SALES	14.836.858,45		18.768.838,37		21.357.186,00
GROSS MARGIN	6.590.697,69	44,42	8.585.029,05	45,74	8.675.258,00	40,62
EBITDA	-1.337.479,63	-9,01	1.132.088,01	6,03	1.254.871,00	5,88
EBIT	-1.947.619,86	-13,13	171.062,16	0,91	524.135,00	2,45
NET RESULT	-2.432.545,66	-16,40	-313.680,31	-1,67	468.970,00	2,20
EFFECTIVE TAX RATE (%)					24,67	0,00

Profit and Loss Account Comments

The company’s sales figure decreased in 20,95% between 2.008 and 2.009.

The company’s EBIT decreased in 1.238,55% between 2.008 and 2.009.

This evolution implies a reduction in the economic profitability of the company .

The result of these variations is a decrease of the company’s Operating Profitability of 257,07% in the analysed period, being this profitability of -5,78% in the year 2.009.

The Net Result of the company decreased in 675,49% between 2.008 and 2.009.

The company’s Financial Profitability has been positively affected by the financial activities in comparison with EBITs behaviour .

The result of these variations is a reduction of the company’s economic profitability of 787,58% in the analysed period, being equal to -14,29% in the year 2.009 .

The company’s sales figure decreased in 12,12% between 2.007 and 2.008.

The company’s EBIT decreased in 67,36% between 2.007 and 2.008.

This evolution implies a reduction in the economic profitability of the company .

The result of these variations is a decrease of the company’s Operating Profitability of 26,40% in the analysed period, being this profitability of 3,68% in the year 2.008.

The Net Result of the company decreased in 166,89% between 2.007 and 2.008.

The company’s Financial Profitability has been negatively affected by the financial activities in comparison with EBITs behaviour .

The result of these variations is a reduction of the company’s economic profitability of 151,11% in the analysed period, being equal to -1,61% in the year 2.008 .

COMPARATIVE SECTOR ANALYSIS

Values table

Figures expressed in %

	COMPANY (2009)	SECTOR	DIFFERENCE
BALANCE SHEET ANALYSIS: % on the total assets
ASSETS
A) NON CURRENT ASSETS	31,92	25,26	6,66
A) CURRENT ASSETS	68,08	74,74	-6,66
LIABILITIES
A) NET WORTH	77,10	55,25	21,85
B) NON CURRENT LIABILITIES	0,73	4,07	-3,34
C) CURRENT LIABILITIES	22,17	40,68	-18,52

	COMPANY (2009)	SECTOR	DIFFERENCE
PROFIT AND LOSS ACCOUNT ANALYSIS: % on the total operating income
SALES	99,67	99,25	0,42
GROSS MARGIN	44,28	42,65	1,62
EBITDA	-8,99	11,10	-20,08
EBIT	-13,08	7,92	-21,01
NET RESULT	-16,34	5,20	-21,54

Sector Composition

Compared sector (NACE 2009): 2813

Number of companies: 22

Size (Sales Figure): 7,000,000.00 - 40,000,000.00 Euros

Comments on the sectorial comparative

Compared to its sector the assets of the companies show a greater proportion of non current assets. Specifically the difference with the sector average is 6,66% .

In liabilities composition the company appeals on a wider scale to self financing, being the proportion of Net Worth of 21,85% major. As a consequence, external financing sources are less used by the company ( 21,85% less than the sector) .

The proportion that the sales mean to the company’s total ordinary income is 99,67% , an 0,42% higher than in the sector .

The company’s EBIT was negative and equal to -13,08% with regard to the total ordinary income, 21,01% inferior to the one of the sector .

The company’s capacity to generate operating income is inferior to that of the sector as its ratio EBIT/Sales is inferior (-0,13 in comparison with 0,08) .

The company’s net result was negative and equal to -16,34% with regard to the total ordinary income, 21,54% inferior to the one of the sector .

The financial results and the tax impact have had a negative impact on the net result of the company with a worse behaviour that the one of the sector .

OTHER DATA FROM THE ANNUAL FINANCIAL REPORT

Results Distribution

Source: annual financial report 2008

Figures given in €

DISTRIBUTION BASE		APPLICATION A
Profit and Loss	-313.680,31	Legal Reserve	0,00
Carry over	0,00	Voluntary Reserve	0,00
Voluntary reserves	0,00	Prior years losses	-313.680,31
Reserves	0,00	Carry over	0,00
Other concepts	0,00	Other funds	0,00
Total of Amounts to be distributed	-313.680,31	Dividends	0,00
		Other Applications	0,00

company ADDRESSES

Business address

Current Legal Seat Address:

POLIGONO INDUSTRIAL AZITAIN, 6

20600 EIBAR GUIPÚZCOA

Branches

STREET	POSTAL CODE	TOWN	PROVINCE
CALLE LES FLORS, 15	08950	ESPLUGUES DE LLOBREGAT	Barcelona
AVENIDA PRIMER DE MAIG, 9	08120	LA LLAGOSTA	Barcelona
BARRIO ORONSOSPE, 12	31195	AIZOAIN	Navarra

There are 3 branches registered

CORPORATE STRUCTURE

ADMINISTRATIVE LINKS

Main Board members, Directors and Auditor

POSITION	NAME AND SURNAME		APPOINTMENT DATE
PRESIDENT	INARRAIRAEGUI GOMEZ JOSE ANTONIO		13/02/2007
MEMBER OF THE BOARD	ARIZAGA LOPEZ JOSE LUCIO		13/02/2007
MEMBER OF THE BOARD	ARIZAGA SUINAGA LUCIO		13/02/2007
MEMBER OF THE BOARD	ARIZAGA BOLUMBURU BEATRIZ		13/02/2007
MEMBER OF THE BOARD	ARIZAGA BOLUMBURU MARIA ISABEL		13/02/2007
MEMBER OF THE BOARD	BASTARRICA ARIZAGA CRISTINA		13/02/2007
MEMBER OF THE BOARD	GARICANO MARTINEZ JUAN IGNACIO		13/02/2007
AUDITOR		APPOINTMENT DATE
IZE AUDITORES SA		05/01/2011

There are 8 board members, directors and auditors registered

Functional Managers

POSITION	NAME AND SURNAME
Manager	MARTIN ANDRES CARLOS
Exports Director	AZCUNA DIEZ JOSE IGNACIO
Operations Director	URAIN MIKEL

FINANCIAL LINKS

Shareholders

BUSINESS NAME	CIF / COUNTRY	%	SOURCE	DATE REP.
MARTIN ANDRES, CARLOS		Indef.	OWN SOURCES	11/02/2011
INARRAIRAEGUI GOMEZ, JOSE ANTONIO		Indef.	OWN SOURCES	11/02/2011

There are 2 direct financial links through shareholders registered

Participations

BUSINESS NAME	CIF / COUNTRY	%	SOURCE	DATE REP.
MACHARIA 2008 S.L.	B20985743	100,00	TRADE REG.	31/12/2008
EQUIPOS INDUSTRIALES EUROPEOS SA DE CV	MEXICO	30,00	TRADE REG.	31/12/2007
GRUEXVA SA	A20364907	1,00	TRADE REG.	31/12/2007
COMPRESORES ABC SL	B78975547	0,01	TRADE REG.	31/12/2007

There are 4 direct financial links through participations registered

You can obtain business information of foreign companies at the page D&B INTERNATIONAL

Company with rating inferior to 7

CREDIT INFORMATION

Constitution

Incorporation date: 25/10/1943

Origin / Foundation

Establishment date: 01/01/1950

Founder’s Name: Arizaga, Bastarrica y Cia., S.R.C

Activity

Activity: Mfg. of machinery for fluid manipulation

NACE 2009 CODE: 2813

NACE 2009 Activity: Manufacture of other pumps and compressors

Business: FABRICACION, VENTA, GESTION Y REPRESENTACION DE MAQUINARIA, HERRAMIENTAS, UTILLAJE Y TRANSFORMADOS SIDEROMETALURGICOS EN GENERAL, ASI COMO SUS DERIVADOS Y ACCESORIOS.

Activity description: Fabricacion de compresores de aire y gas.

Employees

Latest employees figure: 105 (2011)

% of fixed employees: 94,55%

% of temporary employees: 5,45%

Employees evolution

COMMERCIAL OPERATIONS

PURCHASES

Import Percentage: 9%

Imports from: UE

SALES

Credit collections: 100%

Export Percentage: 57%

Exports to: UE Y RESTO DEL MUNDO

National Distribution: 30%

SUPPLIERS

BUSINESS NAME	INTERNATIONAL
COMPET 2000, SL	NO

There are 1 Suppliers

CLIENTS

BUSINESS NAME	INTERNATIONAL
COMPRESORES ABC SA	NO

There are 1 Clients

Banks

ENTITY	BRANCH	ADDRESS	TOWN OR CITY	PROVINCE
BANCO BILBAO VIZCAYA ARGENTARIA, S.A.	2410	ERREBAL, 7	EIBAR	Guipúzcoa
BANCO GUIPUZCOANO, S.A.	0024	IBARKURUTZE EMPARANTZA, 1	EIBAR	Guipúzcoa
BANCO SANTANDER, S.A.			EIBAR
BANKINTER, S.A.	0354	ERREBAL,17	EIBAR	Guipúzcoa

There are 4 bank entities registered

Brands

FORMER NAMES:

• ARIZAGA BASTARRICA Y CIA SRC

Brand name: ABC COMPRESSORS (Valid)

Type: JOINT Scope: NATIONAL Date: 28/01/2011

Brand name: ABC (Valid)

Type: DENOMINATIVE Scope: NATIONAL Date: 16/09/2005

There are 23 brands, signs and commercial names

LEGAL STRUCTURE

Constitution Data

Register Date: 25/10/1943

Current structure data

Legal form: Joint-stock Company

Social Capital: 6.000.000,00 €

Paid-up capital: 6.000.000,00 €

Legal Aspects

Obligation to fill in Financial Statements: YES

Chamber census: YES (2009)

B.O.R.M.E.

(OFFICIAL COMPANIES REGISTRY GAZETTE)

Summary

· Acts on activity: 0

· Acts on administrators: 42 (Last: 05/01/2011, first: 02/08/1990)

· Acts on capital: 4 (Last: 23/12/1999, first: 20/02/1996)

· Acts on creation: 0

· Acts on filed accounts: 21 (Last: 31/03/2011, first: 01/10/1990)

· Acts on identification: 1 (Last: 05/11/2002)

· Acts on Information: 3 (Last: 05/11/2002, first: 03/02/1993)

Latest acts in B.O.R.M.E.

Other acts

ACT	DATE	NOTICE NUM.	TRADE REGISTER
Re-elections	05/01/2011	3971	Guipúzcoa
Appointments	03/02/2010	44721	Guipúzcoa
Appointments	03/02/2010	44720	Guipúzcoa
Re-elections	03/02/2010	44719	Guipúzcoa
Resignations	28/12/2009	537600	Guipúzcoa
Appointments	02/12/2009	503461	Guipúzcoa
Appointments	02/12/2009	503460	Guipúzcoa
Appointments	02/12/2009	503459	Guipúzcoa

Latest filed accounts

ACT	DATE	NOTICE NUM.	TRADE REGISTER
Annual Filed Accounts (2009)	31/03/2011	118773	Guipúzcoa
Annual Filed Accounts (2008)	19/01/2010	40132	Guipúzcoa
Annual Filed Accounts (2007)	30/01/2009	47346	Guipúzcoa

There are 71 acts registered

PRESS ARTICLES

Press summary by type of information (last five years)

Legal notices: 0

Structural Data: 0

Informative data: 1 (Last: 15/01/2010)

Financial Information: 2 (Last: 23/03/2010, first: 04/09/2009)

Negative information: 0

Business lines: 0

Historical press releases: 3 (Last: 01/03/2002, first: 24/06/1998)

Latest press article published

23/03/2010 EXPANSIÓN DEL PAIS VASCO - FINANCIAL DATA

EL GOBIERNO VASCO HA IMPULSADO LA IMPLANTACION EN EL EXTERIOR DE 6 PYMES VASCAS QUE HAN ABIERTO BRECHA EN PAISES COMO CHINA, INDIA O PANAMA. A TRAVES DEL PROGRAMA GAUZATU 2009, EL EJECUTIVO AUTONOMICO HA DESTINADO CERCA DE 2,52 MM. DE EUROS A FOMENTAR LA APERTURA DE PLANTAS EN EL EXTERIOR O LA COMPRA DE PARTICIPACIONES EN EMPRESAS EXTRANJERAS POR PARTE DE LAS CIAS. ARIZAGA BASTARRICA Y CIA. SA (ABC), ELGETA CARTERA, KIDE, PRODOL MEDITEC, RPK INDUSTRIAL Y TALLERES ZB. ABC RECIBIRA 338.750 MM. PARA IMPULSAR SU PRIMERA IMPLANTACION EN EL EXTERIOR QUE HA SUPUESTO UNA INVERSION DE 1,2 MM. EN CHINA.

15/01/2010 EL DIARIO VASCO - CORPORATE INFORMATION

EL COMITE DE EMPRESA DE ARIZAGA BASTARRICA Y CIA (COMPRESORES ABC), CON SEDE EN EIBAR Y DEDICADA A LA FABRICACION DE COMPRESORES, INICIO EL 14/01/10 UNA HUELGA INDEFINIDA PARA EXIGIR LA READMISION DE SIETE EMPLEADOS DESPEDIDOS Y EL MANTENIMIENTO DE LOS PUESTOS DE TRABAJO.

04/09/2009 DEIA - FINANCIAL DATA

CUATRO EMPRESAS GUIPUZCOANAS INVERTIRAN MAS DE 6 MM. DE EUROS EN IMPLANTACIONES PRODUCTIVAS EN INDIA Y CHINA. AMPO, SAVERA Y METALOCAUCHO SE IMPLANTARAN EN INDIA Y ABC REALIZA EN CHINA SU PRIMERA INCURSION INTERNACIONAL. ESTAS INVERSIONES RECIBIRAN UN APOYO ECONOMICO CONJUNTO DE 355.000 EUROS, POR PARTE DE LA DIPUTACION DE GUIPUZKOA, A TRAVES DEL PROGRAMA DE AYUDAS A LA INTERNACIONALIZACION. ASI, ARIZAGA BASTARRICA Y CIA (ABC) INVERTIRA POR SU PARTE 1,25 MM. DE EUROS EN CHINA, EN LO QUE SUPONE SU PRIMERA FABRICA EN EL EXTRANJERO.

There are 6 press articles registered for this company

Complementary Information

Financial Information

El balance cerrado a 31/12/2009 (Deposito 2009) esta disponible en INFORMA, pero existen datos en los nuevos estados contables incorrectamente presentados.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.22
UK Pound	1	Rs.71.97
Euro	1	Rs.63.23

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

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.

Company name

EXECUTIVE SUMMARY

Trade Risk

Financial Information

Commercial Information

Corporate Structure

Other Complementary Information

Credit Appraisal

Financial Situation

Performance

INCIDENTS

BANK AND BUSINESS DEFAULTS OF PAYMENT - ASNEF INDUSTRIAL

Balance Sheet Comments

Profit and Loss Account Analysis

Profit and Loss Account Comments

COMPARATIVE SECTOR ANALYSIS

Sector Composition

Comments on the sectorial comparative

OTHER DATA FROM THE ANNUAL FINANCIAL REPORT

company ADDRESSES

CORPORATE STRUCTURE

Functional Managers

FINANCIAL LINKS

CREDIT INFORMATION

Employees

Employees evolution

COMMERCIAL OPERATIONS

Banks

LEGAL STRUCTURE

Legal Aspects

B.O.R.M.E.

PRESS ARTICLES

Complementary Information

Unit