MIRA INFORM REPORT

 

 

Report Date :

20.08.2012

 

IDENTIFICATION DETAILS

 

Name :

EMPRESAS LA POLAR S.A. 

 

 

Registered Office :

Av. Pdte. Eduardo Frei Montalva 520 – Renca, Santiago, XIII Region Metropolitana, Postal Code  8641154

 

 

Country :

Chile

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

13.11.1998

 

 

Com. Reg. No.:

Not Available 

 

 

Legal Form :

Public Stock Company

 

 

Line of Business :

Department stores

 

 

No. of Employees :

7.350  employees

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small


 

Status :

Moderate

Payment Behaviour :

Slow

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Chile

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


IDENTIFICATION                            

 

TAX :                96.874.030-K

 

EMPRESAS LA POLAR S.A.

 

Av. Pdte. Eduardo Frei Montalva 520 - Renca

Santiago

XIII Region Metropolitana

Postal Code      : 8641154

CHILE

 

Telephone         : 56-2-3833000, 56-2-3833025

Fax                   : 56-2-6410508

Web Site           : www.lapolar.cl  

 

 

company SUMMARY

 

Started                      : 1998

Total Employees       : 7.350

Payments                  : See Commercial Record

Capital                       : 000's$    247.392.432.-

 

Sic(s) : 5311 - 5945

Line of Business: Department stores.

 

                 

Financial indicators

 

According to last financial statement, subject shows an insufficient financial

situation, as indicated in:

 

** Negative Working Capital

** Insufficient Current Liquidity Ratio

** Insufficient Acid Test Ratio

 

Economic situation is regular, as reflected in:

 

** Acceptable Current Indebtedness Ratio

** High Total Indebtedness Ratio

** Acceptable Solvency Ratio

 

** Negative Profitability Over Sales Ratio

** Negative Profitability Over Assets Ratio

** Negative Profitability Over Net Worth Ratio


IMPORTANT NOTE TO CONSOLIDATED BALANCE SHEETS

 

When entering consolidated balance sheets into the evaluation system,

 

they are not taken into account for assessment purposes as they do not

represent  the actual

 

situation of the subject company, therefore, they are not considered for

credit recommendation purposes.

 

 

COMMERCIAL INFORMATION

 

Commercial Bulletin      : As at 16/08/2012 subject registers the following

                           protested documents in the commercial information

                           bulletin

 

Detail of Protests

Date            : 09/06/2011

Note            : Promissory note

Value           : US$ 321.088,00

Bulletin        : 0 Página : 0

Drawer          : HSBC Bank (Chile)

City            : Santiago

 

Date            : 09/06/2011

Note            : Promissory note

Value           : US$ 233.463,00

Bulletin        : 0 Página : 0

Drawer          : HSBC Bank (Chile)

City            : Santiago

 

Date            : 09/06/2011

Note            : Promissory note

Value           : US$ 375.906,00

Bulletin        : 0 Página : 0

Drawer          : HSBC Bank (Chile)

City            : Santiago

 

Date            : 09/06/2011

Note            : Promissory note

Value           : US$ 369.541,00

Bulletin        : 0 Página : 0

Drawer          : HSBC Bank (Chile)

City            : Santiago

 

Date            : 09/06/2011

Note            : Promissory note

Value           : US$ 367.905,00

Bulletin        : 0 Página : 0

Drawer          : HSBC Bank (Chile)

City            : Santa Bárbara

 

Date            : 09/06/2011

Note            : Promissory note

Value           : US$ 432.232,00

Bulletin        : 0 Página : 0

Drawer          : HSBC Bank (Chile)

City            : Santiago

 

Date            : 09/06/2011

Note            : Promissory note

Value           : US$ 424.775,00

Bulletin        : 0 Página : 0

Drawer          : HSBC Bank (Chile)

City            : Santiago

 

Date            : 09/06/2011

Note            : Promissory note

Value           : US$ 429.016,00

Bulletin        : 0 Página : 0

Drawer          : HSBC Bank (Chile)

City            : Santiago

 

Date            : 09/06/2011

Note            : Promissory note

Value           : US$ 580.268,00

Bulletin        : 0 Página : 0

Drawer          : HSBC Bank (Chile)

City            : Santiago

 

Date            : 09/06/2011

Note            : Promissory note

Value           : US$ 502.506,00

Bulletin        : 0 Página : 0

Drawer          : HSBC Bank (Chile)

City            : Santiago

 

Date            : 09/06/2011

Note            : Promissory note

Value           : US$ 462.446,00

Bulletin        : 0 Página : 0

Drawer          : HSBC Bank (Chile)

City            : Santiago

 

Subject registers 61 Promissory notes amounting M$ 4.760.162 . Only the latest have been here above detailed..

 

Labor Bulletin           : As at 16/08/2012 does not register labor infringements

Previsional bulletin     : As At 16/08/2012 registers pension fund's

                           infringements

 


Previsional Detail

 

Date     :11/06/2012

Reason   :Undeclared payrolls                    

Value    :Ch$ 1.160.698,00.-

Months   :7         

Bulletin :136

Page     :132332

Drawer   : AFP Cuprum                                                          

 

Date     :11/06/2012

Reason   :Undeclared payrolls                    

Value    :Ch$ 79.622,00.-

Months   :9        

Bulletin :136

Page     :132332

Drawer   : Adm. Fondos de Cesantia                                             

 

 

Consolidated delinquency : As at 16/08/2012, subject registers the following delinquent bills

 

Detail of Delinquent Debts

 

Date      : 31/05/2012

Note      : Delinquent payment

Value     : Ch$ 12.400,00

Drawer    : Propam

City      : -

 

Date      : 31/05/2012

Note      : Delinquent payment

Value     : Ch$ 12.400,00

Drawer    : Propam

City      : -

 

Date      : 25/03/2012

Note      : Delinquent payment

Value     : Ch$ 93.000,00

Drawer    : Propam

City      : Santiago

 

Date      : 13/12/2011

Note      : Delinquent payment

Value     : Ch$ 113.986.836,00

Drawer    : Scotiabank

City      : -

 

Date      : 11/07/2012

Note      : Pay voucher

Value     : Ch$ 37.604,00

Drawer    : Autopista Central

City      : -

 

Date      : 31/05/2012

Note      : Delinquent payment

Value     : Ch$ 12.400,00

Drawer    : Propam

City      : -

 

Date      : 25/07/2011

Note      : Delinquent payment

Value     : Ch$ 5.061.500.000,00

Drawer    : Corpbanca

City      : Santiago

 

 

TRADE REFERENCES

 

Suppliers' trade references are supplied as follows:

 

Detail of References

 

Old            : Since 2000

Last purchase  : 04-2012

Terms          : 60 days

Payment        : Prompt

Notes          : invoice

Credit         : (000'sUS$) 90.000

Owes           : -

Due            : Does not Register

Paying Comments: Good

Purchase Aver. : (Monthly 000's$) 60.000

 

Old            : Since 2000

Last purchase  : 04-2012

Terms          : 30 days

Payment        : Prompt

Notes          : invoice

Credit         : -

Owes           : -

Due            : Does not Register

Paying Comments: Good

Purchase Aver. : (Monthly 000's$) 30.000

 

Old            : Since 2006

Last purchase  : 04-2012

Terms          : 90 days

Payment        : Prompt

Notes          : checks

Credit         : -

Owes           : -

Due            : Does not Register

Paying Comments: Good

 

Old            : Since 2002

Last purchase  : 04-2012

Terms          : 120 days

Payment        : Prompt

Notes          : checks

Credit         : (000'sUS$) 250.000

Owes           : -

Due            : Does not Register

Paying Comments: Good

 

Old            : Since 2000

Last purchase  : 05-2012

Terms          : 120 days

Payment        : Prompt

Notes          : order form

Credit         : -

Owes           : (000'sUS$) 45.000

Due            : Does not Register

Paying Comments: Good

Purchase Aver. : ( 000's$) 25.000

Seasonal purchases.

 

Detail of Former Trade References

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

           Last                                           Credit            Owes

Old        Purch. Payment.    Notes                     (000'sUS$)       

(000'sUS$)

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

Since 2006 01-12  Prompt      checks                           -               -

Since 2000 01-12  Prompt      order form                       -          70.000

Since 2002 01-12  Prompt      checks                     250.000               -

Since 2002 05-11  Prompt      sight draft                400.000               -

Since 2000 08-11  Prompt      order form                  30.000               -

Since 2000 07-10  Prompt      invoice                     50.000          21.000

Since 2000 09-10  Prompt      invoice                     50.000            None

Since 2002 09-10  Prompt      invoice                    100.000               -

Since 2005 09-10  Prompt      invoice                     10.000            None

Since 1999 09-10  Prompt      invoice                     50.000            None

Since 2000 09-10  Prompt      invoice                       Open            None

Since 1999 09-10  Prompt      invoice                       Open            None

Since 1999 09-10  Prompt      invoice                       Open            None

Since 2003 09-10  Prompt      invoice                     30.000            None

Since 2000 09-10  Prompt      invoice                       Open            None

Since 2000 04-10  Prompt      invoice                       Open            None

Since 1999 04-10  Prompt      invoice                       Open            None

Since 2000 03-10  Prompt      invoice                       Open            None

Since 1999 04-10  Prompt      invoice                     50.000            None

Since 1999 04-10  Prompt      invoice                       Open            None

Since 2003 03-10  Prompt      invoice                     30.000            None

Since 2002 04-10  Prompt      invoice                       Open            None

Since 2000 03-10  Prompt      invoice                     50.000            None

Since 2005 03-10  Prompt      invoice                     10.000            None

Since 2002 03-09  Prompt      invoice                       Open            None

Since 1999 02-09  Prompt      invoice                       Open            None

Since 2000 02-09  Prompt      invoice                       Open            None

Since 2002 02-09  Prompt      invoice                          -            None

Since 2002 09-08  Prompt      invoice                          -               -

Since 2001 10-08  Prompt      order form                 200.000               -

Since 1992 09-08  Prompt      invoice                          -               -

Since 2000 10-08  Prompt      invoice                       Open               -

Since 2001 04-08  Prompt      order form                 200.000               -

Since 2000 04-08  Prompt      invoice                       Open               -

Since 1992 03-08  Prompt      invoice                          -               -

Since 2002 04-08  Prompt      invoice                          -            None

Since 2002 08-07  Prompt      invoice                          -            None

15 years   09-07  Prompt      invoice                          -               -

Since 2000 08-07  Prompt      invoice                       Open           6.000

Since 2001 09-07  Prompt      checks                     200.000               -

Since 2000 02-07  Prompt      invoice                       Open          15.000

Since 2002 03-07  Prompt      invoice                          -               -

Since 2001 04-07  Prompt      checks                     600.000         288.000

Since 2001 04-07  Prompt      checks                     100.000               -

10 years   04-07  Prompt      not specified                    -               -

Since 1997 04-07  Prompt      checks                     500.000               -

6 years    02-06  Prompt      bank draft                    Open               -

8 years    02-06  Prompt      not specified                    -               -

5 years    02-06  Prompt      checks                     100.000               -

5 years    02-06  Prompt      bank draft                    Open               -

5 years    02-06  Prompt      checks                           -               -

5 years    02-06  Prompt      checks                           -               -

5 years    11-05  Prompt      checks                           -               -

5 years    11-05  Prompt      checks                           -               -

5 years    11-05  Prompt      bank draft                    Open               -

5 years    11-05  Prompt      not specified                    -               -

5 years    11-05  Prompt      bank draft                 100.000               -

6 years    11-05  Prompt      bank draft                    Open               -

5 years    11-05  Prompt      bank draft                       -               -

Since 2000 11-05  Prompt      bank draft                       -               -

Since 2000 05-05  Prompt      bank draft                       -               -

5 years    06-05  Prompt      bank draft                       -               -

6 years    06-05  Prompt      bank draft                    Open               -

5 years    06-05  Prompt      bank draft                 100.000               -

5 years    06-05  Prompt      not specified                    -               -

5 years    06-05  Prompt      bank draft                    Open               -

5 years    06-05  Prompt      checks                           -               -

5 years    06-05  Prompt      checks                           -               -

5 years    02-05  Prompt      bank draft                       -               -

10 years   02-05  Prompt      checks                           -               -

5 years    02-05  Prompt      bank draft                    Open               -

5 years    02-05  Prompt      bank draft                 100.000               -

5 years    02-05  Prompt      not specified                    -               -

6 years    02-04  Prompt      bank draft                       -            None

Since 2000 01-05  --          bank draft                 100.000          13.500

5 years    10-03  Prompt      invoice                     80.000               -

5 years    10-03  Prompt      checks                        Open               -

5 years    10-03  Prompt      bank draft                    Open               -

5 years    10-03  Prompt      invoice                       Open               -

5 years    10-03  Prompt      checks                           -               -

 

During the last 6 months, the account holder credit history shows 258 credit

review inquiries requested by banks, credit reporting agencies,

telecommunications companies, industries, insurance companies, health insurance

companies, hardware stores, and businesses in general.-

 

Its credit report reflects 61 overdue protested notes, 22 delinquent

documents for 000's $ 9.660.151.- and  2 security and work infringements as of

the date of this report.

 

AVERAGE PAYMENTS IN CHILE

International Risk and Payment Review reported in June 2011

 

The local delays in payment average 0-1 month.

 

 

FINANCIAL INFORMATION

 

                     COMPARATIVE - SUMMARY

                  ( Figures in Thousand Pesos, local currency )

 

                            From  01/01/2011        01/01/2010        01/01/2009

                              To  31/12/2011        31/12/2010        31/12/2009

 

CURRENT ASSETS                   208.760.085       584.985.904       561.923.873

CURRENT LIABILITIES              548.223.404       259.789.344       217.254.219

WORKING CAPITAL                 -339.463.319       325.196.560       344.669.654

FIXED ASSETS                      68.620.863       370.689.305       242.645.802

OTHER ASSETS                      57.429.569                 0                 0

LONG TERM LIABILITIES             14.594.689       328.343.412       255.208.188

NET WORTH                       -228.007.576       367.542.453       332.107.268

OPERATING INCOMES                165.993.824       561.257.507       472.541.039

CURRENT PROFIT(LOSS)             -10.199.753        30.928.058        47.911.639

 

                            BALANCE SHEET

                        CONSOLIDATED FISCAL YEAR COMPLETE

 

ASSETS                                              31/12/2011        31/12/2010

Cash                                                13.126.473        84.038.366

Term Deposits                                       21.861.171                 0

Sales Debtors                                      105.679.537                 0

Sundry Debtors                                               0       443.070.943

Inventory                                           44.150.000        44.855.751

Taxes Recoverable                                   16.775.185         4.752.112

Other Current Assets                                 7.167.719         8.268.732

CURRENT ASSETS                                     208.760.085       584.985.904

 

Land                                                         0        36.068.358

Contructions & Infrastructure Works                          0        72.023.648

Other Fixed Assets                                           0       262.597.299

Net Fixed Asset                                     68.620.863                 0

FIXED ASSETS                                        68.620.863       370.689.305

 

Long Term Debtors                                   26.040.768                 0

Intangibles                                         17.189.157                 0

Other                                               14.199.644                 0

OTHER ASSETS                                        57.429.569                 0

 

TOTAL ASSETS                                       334.810.517       955.675.209

 

LIABILITIES                                         31/12/2011        31/12/2010

Oblig.With Banks & Financ.Inst.Short Term          469.789.939                 0

Accounts Payable                                    67.620.685                 0

Sundry Creditors                                     5.832.028        33.147.652

Notes & Accts Payable Related Companies                      0           690.162

Provisions                                           1.281.176         6.127.962

Withholdings                                         3.656.136                 0

Deferred Tax                                                 0        11.837.643

Other Current Liabilities                               43.440       207.985.925

CURRENT LIABILITIES                                548.223.404       259.789.344

 

Oblig.with Banks & Financial Intitutions             5.819.782                 0

Provisions                                           8.774.907                 0

Other Long Term Liabilities                                  0       328.343.412

LONG TERM LIABILITIES                               14.594.689       328.343.412

 

Paid Capital                                       171.947.033       178.652.967

Other Reserves                                      18.834.114        17.981.918

Accumulated Profits                                          0       139.979.510

Accumulated Losses                                -408.588.970                 0

Current Profit (Losses)                            -10.199.753        30.928.058

NET WORTH                                         -228.007.576       367.542.453

 

TOTAL LIABILITIES                                  334.810.517       955.675.209

 

STATEMENTS OF RESULTS                               31/12/2011        31/12/2010

Operating  Income                                  165.993.824       561.257.507

Operating Cost                                    -133.049.079      -395.224.018

OPERATING MARGIN                                    32.944.745       166.033.489

 

Administration & Sales Expenses                    -52.203.364      -121.084.625

OPERATING RESULT                                   -19.258.619        44.948.864

 

Financial Incomes                                      632.675         1.149.460

Profit Investmens Related Companies                         36                 0

Other non Operating Incomes                          1.998.376                 0

Financial Expenses                                  -9.705.262        -4.742.067

Other non Operating Expenses                                 0        -1.960.714

Exchange difference                                          0        -3.703.147

NON OPERATING RESULT                                -7.074.175        -9.256.468

 

Result Before Income Tax                           -26.332.794        35.692.396

Income Tax                                          15.370.339        -4.764.339

Monority Interest                                      762.702                 0

NET PROFIT(LOSS)                                   -10.199.753        30.928.057

 

CURRENT PROFIT(LOSS)                               -10.199.753        30.928.057

 

                           ECONOMIC - FINANCIAL RATIOS

 

                                        31/12/2011     31/12/2010        Average

Working Capital            (000's$)   -339.463.319    325.196.560     -7.133.380

Current Liquidity           (Times)           0,38           2,25           1,32

Acid Test                   (Times)           0,30           2,08           1,19

Collection Period Days      ( Days)         229,19         284,19         256,69

Accounts Receivable Turnover(Times)           1,57           1,27           1,42

Inventory Turnover          (Times)           3,01           8,81           5,91

Current Indebtedness        (Times)           1,40           0,71           1,06

Total Indebtedness          (Times)           1,47           1,60           1,54

Solvency                    (Times)           0,59           1,62           1,11

Assets Tying Up             (  %  )          20,50          38,79          29,65

Profitability Over Sales    (  %  )          -6,14           5,51          -0,32

Profitability Over Assets   (  %  )          -3,05           3,24           0,10

Profitability Over Net Worth(  %  )          -4,68           9,19           2,26

 

 

BANKS

 

Subject operates with the following banks:

 

-  Banco Bice, main office Teatinos 220, Santiago

-  Banco Bilbao Vizcaya Argentaria, Chile, main office Huérfanos 1234, Santiago

-  Banco de Chile, main office Ahumada 251, Santiago

-  Banco de Credito e Inversiones, main office Huérfanos 1134, Santiago

-  Banco Itau Chile, main office

-  Banco Santander Chile, main office Bandera 140, Santiago

-  Banco Security, main office Av. Apoquindo 3150, Las Condes

-  BancoEstado, main office Av. Libertador Bdo. O"Higgins 1111, Santiago

-  Corpbanca, main office

-  Scotiabank Chile, main office Morandé 226, Santiago


 

OPERATIONS

 

Line of Business : Department store, home articles, electronic appliances, clothes, shoes, toys, household wares, sport articles, etc.

 

It is the 4th largest department store in Chile, market share is 10% app.

 

Classification according to commercial activity:

 

Sic: 5311-0000 Department stores

Sic: 5945-0000 Hobby, toy, and game shops

 

Subject is considered as a large company in this line of business, strong

competition

 

Sales

 

Sales are steady throughout the year

100% retailers

 

National and international sales territory

 

Products are sold

 

National: 99%.

 

Sales conditions: Cash and credit.

 

International: 1%

 

Exports to Colombia.

 

of Exports obtained from Customs'National Service

 

Country                            %last year   %Accum.

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

Colombia                               100,00      0,00

 

Historical registries

 

Total       2011 = 000's$ 114.813

Total       2010 = 000's$ 99.907

Total       2004 = 000's$ 29.377

 

Customers

Main customers are: Public in general.


Purchases

Places orders with multiple suppliers

 

National: 65%

 

Purchase conditions: Cash and term payments to 30 & 60 days.

 

International: 35%

 

Purchase conditions: Letter of credit.

 

Imports from Argentina, Bangladesh, Brazil, Cape Verde, China, Colombia,

Honduras, India, Indonesia, England, Italy, Mexico, Pakistan, Peru, Dominican

Republic, Netherlands Antilles, Thailand, United States, Uruguay and Vietnam.

 

Records of Imports obtained from Customs'National Service

 

Country                            %last year   %Accum.

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

China                                   92,14     96,12

India                                    1,72      0,00

Bangladesh                               1,48      0,26

Pakistan                                 1,13      2,02

Brazil                                   1,08      0,29

Peru                                     1,05      0,29

United States                            0,39      0,00

Argentina                                0,34      0,00

Netherlands Antilles                     0,17      0,64

Uruguay                                  0,13      0,34

Honduras                                 0,13      0,00

Indonesia                                0,07      0,00

Colombia                                 0,06      0,00

Italy                                    0,04      0,00

Mexico                                   0,03      0,00

Vietnam                                  0,03      0,00

Dominican Republic                       0,01      0,00

England                                  0,01      0,00

Thailand                                 0,00      0,00

Cape Verde                               0,00      0,00

 

Historical registries

 

Total       2011 = 000's$ 45.012.267          Accumulated 2012 = 000's$ 10.480.331

Total       2010 = 000's$ 30.257.297

Total       2009 = 000's$ 27.228.721

Total       2007 = 000's$ 29.479.762

Total       2006 = 000's$ 27.044.032

Total       2005 = 000's$ 19.683.304

Total       2004 = 000's$ 15.972.203

Total       2003 = 000's$ 14.364.071

 

 

Main suppliers 

 

- Adidas Chile Ltda.

- C.T.I. Compañia Tecno Industrial S.A.

- Colchones Rosen S.A.I.C.

- Comercial Mabe Chile Limitada

- Comercial Windsor Limitada

- Computacion Olidata Limitada

- Del Pilar S.A.

- Forus S.A.

- Gasei S.A.

- Importadora y Comercial Tam Limitada

- Importadora y Exportadora Chile Business Group Limitada

- Industria Textil Monarch S.A.

- Jimenez y Cia. Ltda.

- Manufactura de Calzado San Miguel Ltda.

- Manufacturas Interamericana S.A.

- Maui & Sons S.A.

- Nike de Chile S.A.

- Procesos Fotograficos S.A.

- Sindelen S.A.

- Somela S.A.

- Sony Chile Limitada

- T.J.C. Chile S.A.

- Valle Digital S.A.

- VF Chile S.A.

 

Employees: 7.350 employees, including all branches

 

 

Location

 

-  Administrative offices located at Av. Pdte. Eduardo Frei Montalva 520 Renca

   Santiago, Chile, commercial area, main avenue of busy traffic, construction

   in good conditions

 

Branches

 

-  Bilbao 444 esquina Aldunate Coquimbo Chile

-  Av. Francisco Bilbao 8750 - Mall Portal La Reina Las Condes Santiago Chile

-  Manuel A Matta 437 - Mall Plaza San Valentín Quilicura Santiago Chile

-  Avda. José Miguel Carrera 6150 - Centro Comercial Gran Avenida San Miguel

   Santiago Chile

-  Ramirez 1076 Osorno Chile

-  Uno Sur 1450 Talca Chile

-  Independencia 538 Rancagua Chile

-  Warehouses at Issa Pichara 830 Renca Santiago Chile

-  Camilo Henríquez 520-524 Valdivia Chile

-  Avda. Bdo. O"Higgins 540 Copiapó Chile

-  Avda. Eduardo Frei Montalva 01110, Mall Los Pioneros, Punta Arenas Chile

-  Yungay 688 Curicó Chile

-  Av. Libertador Bernardo OHiggins 2812-2848 Estación Central Santiago Chile

-  Carretera General San Martín 068 Colina Chile

-  Av. Santa Teresa 683 Local 2 Los Andes Chile

-  Eyzaguirre 551 San Bernardo Chile

-  Irarrázaval 2906 Ñuñoa Santiago Chile

-  Avda. Freire 2411,  Centro Comercial El Belloto Quilpué Chile

-  Puente 552 Santiago Chile

-  Av. Pdte. Edo. Frei Montalva 500 Renca Santiago Chile

-  Av. Héroes de la Concepción 2555 Mall Las Américas Iquique Chile

-  5 de Abril 828 Chillán Chile

-  Av. Lib. B. O"Higgins 3470 local3 Estación Central Santiago Chile

-  Av. Jose Miguel Carrera 10375 El Bosque Santiago Chile

-  Avda. Concha y Toro 126, 130, 134 Puente Alto Chile

-  Ahumada 167 Santiago Chile

-  Viña Shopping 15 Norte Viña del Mar Chile

-  Arturo Prat 446 Antofagasta Chile

-  Freire 407 Concepción Chile

-  Av. Américo Vespucio 399 - Mall Arauco Maipú Maipú Santiago Chile

-  Warehouses at Maule 848 - 858 Santiago Chile

-  Av. León Bustos 280 Linares Chile

-  Avda. Vicuña Mackenna 6100 Local 1200 - Mall Florida Center La Florida

   Santiago Chile

-  Autpista Concepción, Talcahuano 9.200 Hualpén Chile

-  Alameda 5199 Local 2 Santiago Chile

-  Av. Argentina 151 esquina Pasaje Quillota Valparaíso Chile

-  Avda. Francisco Bilbao 8750, Mall Portal La Reina, La Reina Santiago Chile

-  Vicuña Mackenna 2 Ovalle Chile

-  Illapel N° 10 - Mall Paseo Costanera Puerto Montt Chile

-  Warehouses at Puerto Madero 9710 Pudahuel Santiago Chile

-  Colón 471 Los Angeles Chile

-  Av. Pdte. Jorge Alessandri 20040 local 3 Mall Plaza Sur Santiago Chile

-  Av. Irarrázaval 2906 Ñuñoa Santiago Chile

-  Cordovez 575 La Serena Chile

 

-  Total of 39 department stores.

 

 

RELATED COMPANIES 

 

Subject is related to the following companies:

 

-  Inversiones SCG S.A. T A X 96874020-2 Renca Santiago, 99,99% Participation

-  Corpolar S.A. T A X 76586380-5, 99,90% Participation

-  La Polar Internacional Ltda., 99,90% Participation

-  Conexion S.A. T A X 96878730-6, 99,50% Participation

-  Collect S.A. T A X 96876380-6, 99,00% Participation (Collections)

-  La Polar Corredores de Seguros Ltda. T A X 79633210-7, 99,00% Participation

-  Asesorias y Evaluaciones S.A. T A X 96876370-9, 99,00% Participation

   (credits)

-  Tecnopolar S.A. T A X 96948700-4, 99,00% Participation (Computer &

   administration services)

 

FIXED ASSETS

 

Real estates (24/05/2012)

 

Subject registers real estates

 

-  Home, Maule 868 Santiago-Chile, Fiscal value of 000's$ 9.934.-, rol Nº

   3.464-42

-  Industry, Maule 864 Santiago-Chile, Fiscal value of 000's$ 11.548.-, rol Nº

   3464-41

-  Premises, San Diego 224 Depto. 8 Santiago-Chile, Fiscal value of 000's$

   16.313.-, rol Nº 478-228

-  Branch, Maule 848 - 858 Santiago-Chile, Fiscal value of 000's$ 222.643.-, rol

   Nº 3.464-40

 

Total fiscal appraisal : $260.437.972.-

 

Machinery & Instalations (24/05/2012)

 

Own equipment

 

-  Office installations .

 

 

INSURANCES

 

Insurance Company:

 

-RSA Seguros Chile S.A.

 

Due              : Unspecified due dates

In force         : Annual

 

 

-Chartis Compania de Seguros Generales

 

Due              : Unspecified due dates

In force         : Annual

 

 

BOARD OF DIRECTORS

 

President                : César Jorge Barros Montero TAX:5814302-2

Director                 : Alberto Marraccini Valenzuela TAX:7037927-9

Director                 : Georges Antoine de Bourguignon Arndt TAX:7269147-4

Director                 : Jorge Id Sanchez TAX:8951459-2

Director                 : Fernando Tisne Maritano TAX:11625013-6

Director                 : Juan Pablo Vega Walker TAX:10341217-K

Director                 : Aldo Motta Camp TAX:12488665-1

 

ADMINISTRATION

 

General Manager                        : Patricio Juan Lecaros Paul TAX:7034563-3

Human Resources Manager         : María Olivia Brito Bahamonde TAX:10006501-0

Risks Manager                           : Sergio López Carrasco TAX:6691656-1

(Financial risk)

Business Manager                      : Andrés Molina Vial TAX:7011402-K

Clothing & Footwear      

Manager Controller                      : Gino Manríquez Ossandón TAX:10626204-7

Collections Manager                    : Jorge Enrique Vitar Fajre. TAX:8439101-8

Data Manager                             : Ricardo Rubio Stuardo TAX:8128775-9

Adm. & Finances Manager         : Alvaro Patricio Araya Zamorano TAX:13219705-9

 

CURRICULUM

 

César Jorge Barros Montero

 

T A X               : 5814302-2

Titled as           : Agricultural Engineer.

 

Alberto Marraccini Valenzuela

 

T A X               : 7037927-9

Studies             : Graduated at Universidad Católica de Chile -Chile.

Titled as           : Commercial Engineer.

 

LEGAL INFORMATION (24/05/2012)

 

Legal Structure      : Public Stock Company

Constitution date    : 13/11/1998. Registration at the Register of Securities

                              and Insurances N°806.

Notary               : Andres Allende Vial, suplente René Benavente Cash,

                           Santiago

Term of duration     : Indefinite

Legal Address        : Santiago - Chile

Published in         : Official Gazette dated 17/11/1998 page Nº 17

 

Current Social Capital: 000's$ 247.392.432.-Divided to 998.617.522.- registered

                        shares unique series

 

Shareholder :

 

-  18,38% 96571220-8 Banchile Corredores de Bolsa S.A.

-   7,94% Celfin Capital S.A. Corredores de Bolsa

-   7,92% Banco de Chile por Cuenta de Terceros Ca.

-   5,00% 96571890-7 Cia. de Seguros CorpVida S.A.

-   5,00% Compañia de Seguros Corpseguros S.A.

-   4,83% 96899230-9 Euroamerica Corredores de Bolsa S A

-   4,56% 80537000-9 Larrain Vial S.A. Corredores de Bolsa

-   4,52% Moneda S.A.A.F.I. para Pionero F.I.M.

-   3,29% Santander S.A. Corredores de Bolsa

-   3,20% Banco Santander Por Cuenta de Inv. Extranjeros

-   2,81% AFP Habitat S.A. Fondo Tipo C

-   2,79% Banco Itau por Cuenta de Inversionistas

 

Power of attorney held by General Manager.

 

Legal changes

 

Public Deed dated 10/02/1999, notary Enrique Mira Gazmuri, suplente Raúl

Undurraga Laso, Santiago, published in the Official Gazette dated 16/03/1999

page N° 14, capital was increased: from $100.000 to $4.389.300.000 divided into

4.389.300 registered and no par value shares.

 

Public Deed dated 17/03/1999, notary Raúl Undurraga Laso, Santiago, published in

the Official Gazette dated 10/04/1999 page N° 10, statutes were modified:

modifications not detailed in the extract.

 

Public Deed dated 22/03/1999, notary Raúl Undurraga Laso, Santiago, published in

the Official Gazette dated 05/04/1999 page N° 29, corporate structure was

modified: former deed was rectified.

 

Public Deed dated 02/07/1999, notary Raúl Undurraga Laso, Santiago, published in

the Official Gazette dated 20/07/1999 page N° 31, capital was increased: from

$4.389.400.100 divided into 4.389.400 registered and no par value shares, to

$10.305.400.100 divided into 10.305.400 no par value shares.

 

Public Deed dated 25/05/2000, notary Raúl Undurraga Laso, Santiago, published in

the Official Gazette dated 16/06/2000 page N° 20, capital was increased: from

$10.305.400.100 divided into 10.305.400 registered and no par value shares of

same value, to $11.647.400.100 divided into 11.647.400 shares, through the

issuance of 1.342.000 shares to be paid within 3 years.

 

Public Deed dated 26/05/2000, notary Raúl Undurraga Laso, Santiago, published in

the Official Gazette dated 17/06/2000 page N° 9, capital was increased: from

$11.647.400.100 divided into 11.647.400 registered and no par value shares, to

$13.425.858.403 divided into 13.257.687 shares.

 

Public Deed dated 13/03/2001, notary María Loreto Lynch Lillo, Santiago,

published in the Official Gazette dated 21/03/2001 page N° 13, corporate purpose

was modified: it was extended to the current one.

 

Public Deed dated 15/04/2002, notary Raúl Undurraga Laso, Santiago, published in

the Official Gazette dated 06/06/2002 page N° 11, capital was increased: from

$14.023.354.662 (revalued) divided into 13.257.687 no par value shares, to

$17.297.304.662 divided into 16.531.637 no par value shares.

 

Public Deed dated 28/03/2003, notary Raúl Undurraga Laso, Santiago, published in

the Official Gazette dated 05/04/2003 page N° 31, statutes were modified: number

of shares was increased to 165.316.370 shares, capital was not increased.

Established new text of statutes, term of duration: Indefinite, capital

$18.263.989.517 divided into 165.316.370 shares.

 

Public Deed dated 21/04/2003, notary Raúl Undurraga Laso, Santiago, published in

the Official Gazette dated 24/04/2003 page N° 26, capital was increased: from

$18.263.989.517 to $36.644.057.795 divided into 206.645.463 shares.

 

Public Deed dated 17/06/2003, notary Raúl Undurraga Laso, Santiago, published in

the Official Gazette dated 24/06/2003 page N° 13, statutes were modified:

regarding issues not detailed.

 

Public Deed dated 07/07/2003, notary Raul Undurraga Laso, Santiago, published in

the Official Gazette dated 09/07/2003 page N° 12, capital was increased: it was

agreed to correct, in accordance with law 19.499, dated Apr 21, 2003, the

increase of capital  from $18.263.989.517 to $36.644.057.795 divided into

206.645.463 registered shares.

 

Public Deed dated 10/05/2004, notary María Loreto Zaldívar, Santiago, published

in the Official Gazette dated 27/05/2004 page N° 12, capital was increased: from

$36.644.057.795 to $52.716.482.695 divided into 229.606.070 shares.

 

Public Deed dated 10/05/2005, notary Patricio Zaldívar Mackenna, Santiago,

published in the Official Gazette dated 25/05/2005 page N° 19, corporate name

was modified: "Comercial Siglo XXI S.A." by "Empresas La Polar S.A."

 

Public Deed dated 20/11/2006, notary Raúl Undurraga Laso, Santiago, published in

the Official Gazette dated 24/11/2006 page N° 32, statutes were modified:

capital increase approved on Apr 27, 2004 was set invalid. capital was

increased: from $39.199.892.865 to $72.199.892.865 divided into 222.522.144 no

par value shares.

 

Public Deed dated 24/08/2009, notary Raúl I. Perry Pefaur, Santiago, published

in the Official Gazette dated 31/08/2009 page N° 15, capital was increased: in

$50.000.000.000 by the issuance of 28.681.730 cash shares. Consequently, capital

remained in the amount of $134.517.100.616 divided into 251.203.874 ordinary and

no par value shares.

 

Public Deed dated 09/07/2012, notary Ulises Aburto Spitzer Suplente Notaria Ivan

Perry Pefaur, Santiago, published in the Official Gazette dated 13/07/2012,

capital was increased: to  $247.392.432.300.- divided in 998.617.522 registered,

no par value shares, same value.

 

JUDICIAL RELEASES

 

ARRANGEMENTS

 

NOTIFICATION: Arbitration Court Luz María Jordán Astaburuaga. Extract from

complete text  Judicial Preventive Arrangement with creditors  EMPRESAS LA POLAR

S.A. taxpayer N° 96.874.030-K.

 

Purpose: Effective continuity  and total change of industrial, commercial and

economic activities as from the date of  submittal of propositions at the

Arbitration Court. A new deadline is stipulated for the payment of total

liabilities. Creditors: Natural or juridical persons, national or foreign credit

grantor of any nature against Empresas La Polar S.A.  For updates and to keep a

uniform currency credits will be expressed in pesos.

 

(Published in the official gazette dated Sep. 3, 2011 page 28).

 

JUDICIAL PREVENTIVE ARRANGEMENT WITH CREDITORS: The company's board of

directors, in session of Jul. 28, 2011, agreed to initiate the legal proceedings

to a judicial arrangements with creditors and its contents in order to

renegotiate the assets of the company with its creditors. For this purpose, the

company's legal advisors have been instructed to carry out the corresponding

legal presentations  as soon as possible.

 

NOTIFICATION

 

Judge Arbitrator Mrs. Luz María Jordán Astaburuaga, as on the writ of the

judicial preventive agreement of "Empresas La Polar S.A.", taxpayer ID

96.874.030-K dated January 04, 2012, on leaf 1378 it was stated the following

resolution:  Stated on leaf 1376 as required: Let the judicial preventive

agreement between subject and creditors, published on the official gazette as of

March 3, 2012 page, be approved.

 

PUBLICATIONS (24/05/2012)

 

The following information regarding the subject was published in press

 

DIARIO LA TERCERA of 10/06/2011

 

La Polar's financial scandarl hits the Stock Exchange and PFA's seek for legal

steps

 

The retailer announced yesterday its risking up to US$430 million due to

practices non-authorized by the board of directors on credits to its

customers.

 

In one day it lost almost half of its value in the stock exchange, a 42%,

and took the IPSA rate to a daily fall of 1.18%, after it revealed to the market

that its provisions -non-recoverable risk credits - might be higher than almost

ten times the ones of 2010. The last year they amounted to $22 billions. An

initital estimation of the new financial risk was considered by the company to

be between $150 billion (US$321 million) and $200 billion (US$428 million).

 

La Polar's board of directors met on Monday and Wednesday to analyse this

topic. Yesterday they revealed that during these sessions it was informed of

"practices" in the management of its credit portfolio - associated with the

restructuring  of debts of credit cards holders - non-authorized by the board of

directors.

 

The company did not detailed what kind of practices they were, but in the

industry it is believed that are related to  unilateral restructuration of

delinquent credit debts, which caused a collective demand filled  last week by

the Consumers' National Service (SERNAC). "This allows to account delinquent

debtors as current" - an agent of the market stated.

 

La Polar stated that the facts spread yesterday do not affect "their

business model". Besides, it adopted a number of measures which were

communicated to different agents of the market. Among them, it is the

appointment of Eduardo Bizama as the new general manager replacing Martín

González, who will take back the commercial management; and also the dismissal

of the Financial Products Manager, Julián Moreno, who will be replaced by Hernán

Arancibia as Manager of Credits (instead of its current position of Manager of

the Credit Risk Division of Banco de Chile. Besides, the company designated

Ernst & Young as an external auditor instead of PwC.

 

The alert of this case was known in the Superintendency of Securities and

Insurances (SVS) on Friday 3 of June, when the shareholders represented by the

law firm Gutiérrez y Silva placed an inquiry regarding the balance sheets of La

Polar. SVS gave a term of 5 days to La Polar to inform and on last Wednesday it

commanded to do so yesterday.

 

Shareholders

 

For the Pension Funds Administrators (PFAs) the disconformity is at global

level. They own the 24% of a firm which lacks of controller, which for some

could explain the problem. Investment, however, represents only the 0.2% of the

assets of the system. Habitat, Cuprum, Provida and Capital will study legal

steps. Habitat affirmed that this facts impact on the public trust given to the

company, since financial statements shall be reliable.

 

Provida expressed its indignation and Cuprum said that they will follow

administrative and judicial steps to safeguard the interest of its affiliates.

"These steps may involve directors, administrators, external auditors, risk

classifiers" - warned the PFA of Group Penta.

 

As from today, the PFAs will coordinate among themselves and with other

partners of the company in order to ask for an extraordinary meeting of

shareholders and require the minutes of the board of directors of La Polar,

headed by Pablo Alcalde since 2009. -

 

www.emol.cl of 27/10/2011 Losses for US$100 millions a year during the last 10

years registered by La Polar were informed by its current president, Cesar

Barros

 

The magnitude of the losses experimented by the company in the last decade

was  severily  defined by Barros, who said that La Polar "never had profits".

 

According to the financial statement of La Polar submitted today, the company

accumulates losses for US$892 millions while its assets amount to US$744

millions. Liabilities reach the US$1, 221 millions.

 

Thus, the negative net worth of the company reaches the US$477 millions.

 

At the same time, provisions, which in April amounted to $198,877 millions,

had decreased to $126,000 millions in July.

 

Fake profits

 

Barros revealed that the profits declared by the company in the last years

were false. He added that if it declares itself bankrupted, both banks and

creditors could only recover a 7% of the company's value.

 

In this context, the executive insisted that he keeps the hope of a

stabilization of La Polar for 2014, which would depend on the approval of the

judicial preventive agreement that is currently in study. -

 

Economía y Negocios El Mercurio Cuerpo B Pag 5 of 12/11/2011

 

La Polar inaugurates fourth store in Colombia

 

Despite the current delicate situation of La Polar, the department store

chain has kept its chronogram of store openings in Colombia. Yesterday, the

company inaugurated its fourth store located in the shopping center Cafam

Floresta in Bogotá, with 6,500 m2 and 200 employees.

 

La Polar opened its first store in the capital of Colombia in October 2010,

while the other two were established in the city of Medellín.

 

The business plan reported by the company two weeks ago sets the strategical

axis as growing in this market with the opening of 11 stores within the next

three years. As informed in that opportunity, the locations have been already

defined  and the negotiations with developers and/or land proprietors are

advanced. -

 

Economía y Negocios El Mercurio Cuerpo B Pag7 of 31/03/2012

 

La Polar registers losses for $10,200 million

 

The department store chain La Polar registered losses for $10,200 million

for the period between August and December 2011, according to its report to the

Superintendecy of Securities and Insurances last night.

 

Its revenues for ordinary activities reached $165,994 million represented,

where $132,914 million correspond to retail revenues, and $33,080 to the

financial business. Administration costs reached $52,203 million representing

the 31.4% of the ordinary activities' turnaround. The EBITDA of the period of 5

months ended as of Dec. 31, 2011 reached losses for $12,329 million -

 

DIARIO FINANCIERO of 23/05/2012

 

The Minister of Economy and the National Consumer Service (SERNAC) detailed

the implications of the agreement reached with La Polar in relation to the

compensatory plan for the customers that were victims of unilateral

renegotiations.

 

In this context, they informed that that plan is for a total of US$651

million, an amount with no precedents in the history of Chile in matters of

consumers' compensations.

 

This huge amount is divided as follows: "compensation bonus" of $15,000.-

for around one million customers, which totals US$30 million. The other point is

"returnings to customers that paid" which totals US$35 million. The item

"discounts, comissions and insurances unproperly hired", on the other hand,

reached US$52 million.

 

As informed by SERNAC,  after long meeting that ended on May 22 at 5 AM, it

was agreed that La Polar must pay the two first items from its cash, which

totals US$65 million.

 

The rest of this compensatory plan would impact directly the financials

statements of the company corresponding to the fourth quarter.

 

"The fulfillment of these commitments will be supervised through audits, and

if any consumer considers that suffered a greater damage, the correspondingcourt

indemnizations may be carried out" - SERNAC stated.

 

Now, shares of La Polar are increased in a 3.68% rankedas the second more

profitable in the Santiago Stock Exchange.

 

Results of La Polar

 

According to the consolidated financial statements of the company  standing

(proforma statement, not audited) sent by La Polar to the Superintendency of

Securities and Insurances, during 2011 they registered losses for US$1,130,

which is compared to the profits of $29,167 million registered in 2010.

 

According to this report, the company hardly keeps US$25 millions cash, and

has to face a shot-term debt of US$1,055 million.

 

On the other hand, the stock-market share of the retailer reaches the

US$192.24 million. -

 

INFORMATION SOURCES

 

Management declined to submit any kind of information. outside sources provided

Consolidated balance sheets.

 

-Other outside information sources.

 

Exchange rate

 

-As at 25/05/2012 $507,83 Per US$

-As at 31/12/2011 $521,46 Per US$

-As at 31/12/2010 $468,01 Per US$

-As at 31/12/2009 $507,10 Per US$

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.70

UK Pound

1

Rs.87.55

Euro

1

Rs.68.85

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.