MIRA INFORM REPORT

Report Date :

15.12.2011

IDENTIFICATION DETAILS

Name :	FLOWSERVE S.A. DE C.V.
Registered Office :	Vía Morelos No. 437, Col. Santa Clara, Postal Code 55,540, Ecatepec de Morelos, Estado de México
Country :	Mexico
Date of Incorporation :	10.09.1998
Legal Form :	Stock Company of Variable Capital
Line of Business :	purchase and sale of flow management systems, pumps and mechanical seals.
No. of Employees :	300

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 – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Mexico	a2	a2

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

IDENTIFICATION

CORRECT COMPANY NAME

FLOWSERVE S.A. DE C.V.

TRADE NAME

FLOWSERVE

TAXPAYER REGISTRATION

RFC FLO-980910-PKA

MAIN ADDRESS

Vía Morelos No. 437, Col. Santa Clara,

POSTAL CODE

55,540

PROVINCE / DEPARTAMENT

Ecatepec de Morelos

STATE / REGION

Estado de México

COUNTRY

MEXICO

TELEPHONE

(5255) 56991000 - 56991106 - 55677170

E-MAIL

lestrada@flowserve.com

WEB

www.flowserve.com

COMMENTS

Fax: (55) 55697139 - 56991085 - 55674224

SUMMARY
Date of foundation	1998
Capital stock	No specified
permanent employees	Employs 300 people approximately
Chief Executive	LÓPEZ, EDUARDO
Disposition	Poor.- Only general information without figures.
Payments policy	Usually to terms/good

LEGAL BACKGROUNDS
LEGAL STATUS	Stock Company of Variable Capital
DATE OF INCORPORATION	10SEP1998
PLACE OF REGISTRY	Ecatepec de Morelos, state of Mexico
DURATION	99 years
CURRENT PAID-IN CAPITAL	No specified
CURRENT EXCHANGE RATE (US$)	Ps$13.93 per 1.00 USADollar

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
LÓPEZ, EDUARDO	Director General
CESAR JASSO, JOSÉ LUIS	Sales Manager
ESTRADA ULLOA, LEOBARDO	General Accountant
FLOWSERVE CORPORATION	Parent Co.	Maj.Sharehol

WHO IS WHO?
LÓPEZ, EDUARDO
NATIONALITY	Mexican
PROFESSION	Engineer by profession
SEX	Male
CESAR JASSO, JOSÉ LUIS
NATIONALITY	Mexican
SEX	Male
ESTRADA ULLOA, LEOBARDO
NATIONALITY	Mexican
PROFESSION	Certified Public Accountant
SEX	Male
FLOWSERVE CORPORATION
BUSINESS BACKGROUND Corporate Office: 5215 N. O'ConnorBlvd., Suite 2300, Irving, TX 75039, Tel: (972) 443-6500, USA.

BUSINESS HISTORY

Flowserve S.A. de C.V. is a U.S. owned company which was incorporated on September 10, 1998 in the municipality of Ecatepec de Morelos, Mexico state since its foundation has not changed its legal structure. 
 
The subject is a subsidiary of "Flowserve Corporation" which was founded in 1997 following the merger of two leading companies in flow motion and control: BW / IP and Durco International. 
It is a recognized world leader in the area of supplying pumps, valves, seals automation and services to the energy industry, oil, gas and chemical industries, among others. 
This company has over 14,000 employees in over 56 countries, combining global reach with a local presence. 
The people, processes and experience of "Flowserve Corporation" help companies in more than 70 countries around the world.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	RELATION %
FLOWSERVE CORPORATION	U.S.A.		Parent Co.

BUSINESS

Main activity

ACTIVITY: The Subject is engaged to the purchase and sale of flow management systems, pumps and mechanical seals. 
TRADEMARKS: The company has the following logo and brand: FLOWSERVE (see foot of report)
 

Import

Yes

Country

From the United States, through direct credit

Export

No

% CASH SALES / METHOD

50%

% Credit SALES / Terms

50% (terms: 30 days)

% DOMESTIC PURCHASES

40%

% FOREIGN PURCHASES

60%

SELLING TerritorY

National market 100%

EMPLOYEES

Employs 300 people approximately

LOCATION

OTHER PREMISES

At the above listed address the administrative offices, production plant , warehouse can be found. This address is their tax domicile too. The place is owned by the company which consists of a single level facility and has an area of 5,000 square meters approximately. Previously the company was located in Paseo de la Reforma No. 30, 2° Piso, Col. Centro, Delegación Cuauhtémoc, C.P. 06,040, México D.F. OTHER LOCATION: The company has other facilities in Col. Industrial Vallejo (Mexico DF), Guadalajara and Veracruz.

Comments

Clients: Major clients include:
-Petróleos Mexicanos - Pemex
-Comisión Federal de Electricidad-CFE

FINANCIAL INFORMATION
Interviewee(s)	C.P.A. Leobardo Estrada Ulloa
Position(s)	General Accountant
Disposition	Poor.- Only general information without figures.
Information provided	We interviewed C.P.A. Leobardo Estrada Ulloa (General Accountant), who assisted us by providing general information regarding the company contained in this report. Figures of the Consolidated Balance Sheet of "Flowserve Corporation" and subsidiaries as of December 31, 2010 were obtained by external sources of information.
Comments	Consolidated Balance Sheet of "Flowserve Corporation" and its subsidiaries at December 31, 2010 Expressed in U.S. dollars Current Assets 2,523,744,000.= Non Current Assets 1,936,166,000.= Total Assets 4,459,910,000.= Current Liabilities 1,456,375,000.= Long-Term Liabilities 890,502,000.= Stockholders' Equity 2,113,033,000.= Total Liabilities & Equity 4,459,910,000.= Net Sales Revenue 4,032,036,000.= Net Profit of Flowserve Corporation 388,290,000.=
Property of company comments	The company has: -Transportation Equipment -Machinery and Equipment -Furniture and Office Equipment -Computers Equipment

PAYMENTS RECORD: TRADE REFERENCES

(Confidential Information)

Supplier: Aceros Palmexico S.A. de C.V.	Tel.: (0155) 57290900.	Country: MEXICO
Goods/Services? : Steel
Highest credit? : No specified
Client since? : years	Terms? : 60 days	Performance? : Prompt
Comments : Monthly Ave. Purchase: varying amou
Supplier: Carpenter Aceros Fortuna S.A. de C.V.	Tel.: (0155) 50104820.	Country: MEXICO
Goods/Services? : Steel
Highest credit? : No specified
Client since? : years	Terms? : 60 days	Performance? : Prompt
Comments : Monthly Ave. Purchase: Ps$400,000.=

Note : Other suppliers did not provide information or could not be consulted

Supplier	Telephone	Country	Comment
Fabricaciones, Importaciones y Representacione	(55) 53914027.	MEXICO	Declined trade reference
Servicios Técnicos y Automatización Industr	(55) 58685917.	MEXICO	Declined a trade reference.
General Electric Co.		U.S.A.
TECO-Westinghouse Motor Company		U.S.A.
Voith		GERMANY
Hysong Corporation		SOUTH COREA

CREDIT HISTORY

Our investigation through the public records did not show any adverse information or payment default.

BANKING INFORMATION

Bank

NACIONAL DE MÉXICO S.A.

The subject is a customer of that bank, which when consulted told us that in compliance with current legal regulations, can not provide data on their customer movements out of respect to banking secrecy.

GENERAL INFORMATION

REPUTATION

NOTHING AGAINST COMPANY

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.58
UK Pound	1	Rs.82.97
Euro	1	Rs.69.89

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%)

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.