MIRA INFORM REPORT

Report Date :

16.01.2012

IDENTIFICATION DETAILS

Name :	APERAM STAINLESS SERVICES & SOLUTIONS ARGENTINA S.A.
Formerly Known As :	M.T.MAJDALANI Y CIA.S.A
Registered Office :	Carlos Pellegrini 1069, piso 11o., Ciudad de Buenos Aires,
Date of Incorporation :	22.07.1970
Com. Reg. No.:	19/10/1970 NO. 223.215
Legal Form :	Public Limited Company
Line of Business :	Stainless Steel Import Elaboration
No. of Employees :	75 Employees

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 :	Good
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, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Argentina	B1	B1

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

 Registered Name 

APERAM STAINLESS SERVICES & SOLUTIONS ARGENTINA S.A.

BEFORE: M.T.MAJDALANI Y CIA.S.A.

C.U.I.T.: 30-54179576-2

 Summary 

INCORPORATED IN 1970. SHARE CAPITAL $ 11.097.000.- BALANCE SHEET AS OF 31/12/2010. NORMAL EVOLUTION. STABLE PERSPECTIVES. FULFILLMENT WITHOUT OBJECTIONS. FIT FOR NEW CREDITS WITH THE ADOPTION OF APPROPRIATE GUARANTEES.

 Operations 

STAINLESS STEEL
IMPORT
ELABORATION

 Legal Structure 

Business type:      Public Limited Company
Incorporated:       22/07/1970
Registered:         19/10/1970 NO. 223.215
Duration:           22/07/2069
End of fiscal year: December 31st

 Contact 

Legal address: Carlos Pellegrini 1069, piso 11o., Ciudad de Buenos Aires, República Argentina.

HEADQUARTERS: Avda. Descartes 4200 (1667), Parque Industrial Tortuguitas, Provincia de Buenos Aires, República Argentina.

Tel: (54-02320) 55-5555
Fax: (54-02320) 55-5556
E-Mail: ventas@mtmajdalani.com.ar

 Partners 

PRESIDENT:        SERGIO AUGUSTO CARDOSO MENDEZ
V.PRESIDENT:      ROBERTO D´ALESSANDRO

DIRECTORS:        MIGUEL TUFIK MAJDALANI
SEBASTIAN ADOLFO RICCHERI

USE OF SIGNATURE: President AND V.President

 Corporate Stock 

According to publications performed in the Official Bulletin No. 31180 of the 21/06/2007, according to what was Approved in the General Assembly of Shareholders the  voluntary decrease of the capital stock of the business from $ 15.000.000 to $ 11.097.000 effective retroactive to the 31/12/1999, by means of the cancellation of shares of own emission in  approved portfolio by the Assembly of Shareholders celebrated the 09/05/2000.  

95% of the same is contributed by:

ARCELOR SPAIN HOLDING S.L.
LEGAL ADDRESS: Uruguay 705,11o.p.Cdad.de Bs.Aires.
ACTIVITY: Holding syderometalic.

Minority Shareholder:
ARCELORMITTAL STAINLESS SERVICE IBERICA S.L.

 Personal Information 

MAJDALANI MIGUEL TUFIK (H)
Argentinian, 44 yrs old, Business Administrator, married, DNI. 17.715.548, with address in  Volta s/n., Olivos Golf, Pablo Nogués, Pcia.de Buenos Aires.

D´ALESSANDRO ROBERTO:
BRAZILEAN, MARRIED, ENGINEER, 60 YRS OLD, Passport CV 111.586 ADDRESS AT Ruggeri 2944 10o."C", Cdad. de Buenos Aires.

RICCHERI SEBASTIAN ADOLFO:
ARGENTINE, MARRIED, LAWYER, 52 YRS OLD, DNI.No.
12.276.354 ADDRESS AT  Thames 91, Boulogne, Pcia.de Buenos Aires.

 History 

Fits to highlight that these activities were started by Mr Miguel Majdalani in the course of 1941 who was succeeded by the holder.

Its original address was in Av.Corrientes 6277, Buenos Aires City, highlighting that it has been mentioned that  it moved to the current address.

On date 7.12.2007 was sold the total share packet of the company to a biggest group of siderurgic in the world, ARCELOR MITTAL, not having details on the amount of the opertion nor the conditions of the purchase.

On 08.04.2011 the notice was published having reformed the Articles 5, 9,10 and 11 of its Statute, the company formerly known as M.T. MAJDALANI Y CIA S.A. spent should be renamed APERAM STAINLESS SERVICES Y SOLUTIONS ARGENTINA S.A. Agentin with registered office in the City of Buenos Aires.

 Economic-Financial Position 

BALANCE GENERAL AS 31.12.2010 EXPRESSED IN PESOS ARGENTINOS.
EXCHANGE: 1 DOLAR = $ 4,30

CASH AND INVESTMENTS, LOANS AND OTHERS.                          60.679.671
INVENTORIES                       68.363.959
ACTIVO CURRENT                   129.043.630
ACTIVO NON-CURRENT                 16.367.424
TOTAL ASSETS                     145.411.054

DEBTS                             88.118.563
SALARIES AND SOCIAL CHARGES        3.318.777
LIABILITIES CURRENT               91.437.340
LIABILITIES NON-CURRENT            6.380.521
TOTAL LIABILITIES                 97.817.861
NET WORTH                         47.593.193
TOTAL GENERAL                    145.411.054

NET SALES                         176.316.768
COST OF SALES                -   142.572.746
GROSS PROFIT (LOST)         33.744.022
EXPENSES COMERCIALIZATION           6.983.616
EXPENSES ADMINISTRATION      -     7.334.883
SUB TOTAL                         19.425.523
OTHERS INCOMES AND EXPENSES   -     9.295.748

FINAL RESULT                       10.129.775

 Assets 

REAL ESTATE:
------------
THE FIXED ASSETS OF THE COMPANY INCLUDE THE LOT AND BUILDINGS LOCATED AT Avda. Descartes 42, Parque Industrial Tortuguitas, Provincia de Buenos Aires.

 Parent/Related Companies 

ACINDAR INDUSTRIA ARGENTINA DE ACEROS S.A.
ARCELORMITTAL INOX BRASIL S.A.
INOXTUBOS
CINTER
ARCELOR MITTAL STAINLESS EUROPE S.A.
ACESITA SERVICIOS

 Evolution and Results 

It is a company of reasonable importance in its sector which ocupies buildings of 12.000 m2 covered surface in a lot of 27.000 m2 where it is located its General Manager offices, Commercial Management, Adminstration, Delivery, and a modern and fast service center.

MAIN PRODUCTS:
--------------
SHEETS
COILS
SPRINGS
ANGLES
ELECTRODES
BARS
ACCESSORIES
PIPES
TUBES

In the last twelve months it has carried out imports for a total value of u$s 1.102.692 from the following countries:

> CHINA...............U$S   747.633
> URUGUY..............U$S   155.145
> BRASIL..............U$S   125.264

MAIN SUPPLIERS:
---------------
> KISWELL WELDING PRODUCTS DE COREA

* 75 EMPLOYEES

 Branches 

DISTRIBUITORS/REPRESENTATIVES:
-----------------------------
EBINOX S.R.L.
Sánchez de Bustamante 265, Rosario, Santa Fé.

RODOLFO O.TERRAGNI S.R.L.
Cno.Jesús María 7237, Villa Lastenia, Córdoba.

ACEROS CUYO S.R.L.
Belgrano 650, Godoy Cruz, Mendoza.

MIGUEL CRISTOFARO
Saenz Peña 131, S.M.de Tucumán, Tucumán.

PRENZ REPRESENTACIONES S.R.L.
O´Higgins 1602, Bahía Blanca, Pcia.de Bs.Aires.

FRIOTOTAL
Avda.Falucho 685, Tandil, Pcia.de Bs.Aires.

ALEJANDRO TALLONE
Gaboto 4749, Mar del Plata, Pcia.de Bs.Aires.

 Payment Record and Credit Risk 

STANDARD BANK
CITIBANK
BBVA BANCO FRANCES
BANCO PATAGONIA SUDAMERIS
BANCO SANTANDER
BANCO DE LA NACION ARGENTINA

INSURANCE:
----------
BERKLEY CIA. DE SEGUROS S.A.
CHUBB ARGENTINA DE SEGUROS S.A.

CREDIT RISK:
-----------
NOVEMBER 2011

FRANCES        11/11    U$S  32.800 SITUATION 1

Situation 1: Normal Fulfillment

 Concept 

To the present  the company does not  registered  negative antecedents of any kind and arises from the inquiries that have been performed, that maintains a correct attention of the general obligations that assumes.  

* COMPLIANCE WITHOUT OBJECTIONS

 Final Opinion 

We Consider that is a company to which can be  relate in operations of credit, within sums current and with the guarantees of practices.  

ELIGIBLE FOR NEW CREDITS.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.43
UK Pound	1	Rs.79.10
Euro	1	Rs.66.17

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.