MIRA INFORM REPORT

Report Date :

13.10.2012


Tel. No.:	00571 7430 304 (Ext 116)
Fax No.:	0057 2949 875

IDENTIFICATION DETAILS

Name :	WESCO SA

Registered Office :	Av CI 63 74B-42, Interior 6 Parque Empresarial Normandia Bogota Colombia

Country :	Colombia

Date of Incorporation :	02.10.1972

Legal Form :	Sociedad Anonima

Line of Business :	Distribution and import of stainless steel

No. of Employees :	90 employees

RATING & COMMENTS

MIRA’s Rating :

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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Colombia

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

Colombia - ECONOMIC OVERVIEW

Colombia's consistently sound economic policies and aggressive promotion of free trade agreements in recent years have bolstered its ability to face external shocks. Real GDP grew 5.7% in 2011 and inflation ended 2011 at 3.7%, continuing almost a decade of strong economic performance. All three major ratings agencies have upgraded Colombia''s investment grade. Nevertheless, Colombia depends heavily on oil exports, making it vulnerable to a drop in oil prices. Economic development is stymied by inadequate infrastructure, weakened further by recent flooding. Moreover, the unemployment rate of 10.8% in 2011 is still one of Latin America''s highest. The SANTOS Administration''s foreign policy has focused on bolstering Colombia''s commercial ties and boosting investment at home. The US-Colombia Free Trade Agreement (FTA) was ratified by the US Congress in October 2011 and is pending implementation in 2012. Columbia has signed or is negotiating FTAs with a number of other countries, including Canada, Chile, Mexico, Switzerland, the EU, Venezuela, South Korea, Turkey, Japan, and Israel. Foreign direct investment - notably in the oil sector - reached a record $10 billion in 2008 but dropped to $7.2 billion in 2009, before beginning to recover in 2010, and it appears to have reached a record high $13 billion in 2011. Colombia is the third largest Latin American exporter of oil to the US. Inequality, underemployment, and narcotrafficking remain significant challenges, and Colombia''s infrastructure requires major improvements to sustain economic expansion. In late 2010, Colombia experienced its most severe flooding in decades with damages estimated to exceed $6 billion. The rains resumed in 2011 causing further damages to crops and infrastructure as well as killing hundreds of Colombians and displacing millions.

Source : CIA

GEOPOLITICS

POLITICAL DATA

ECONOMIC DATA

Form of Government: Republic

Economic Risk: Low

Currency: 100.00 COP = 0.0555403 USD

Branch Situation: Stable

IDENTIFICATION

Comments on data supplied:	Please note that the fax number provided in the order was slightly modified with information found on the company’s website.
Legal Name:	WESCO SA
Legal Address	Av CI 63 74B-42, Interior 6 Parque Empresarial Normandia Bogota Colombia.
Operative Address	Av CI 63 74B-42, Interior 6 Parque Empresarial Normandia Bogota Colombia.
Telephone:	+ (571) 7-430-304	NIT :	860527960-9
Fax:	+ (571) 2 949876	Legal Form:	Sociedad Anonima
Email:	ventas@wesco.com.co	Registered in:	Colombia
Website:	www.wesco.com.co	Date Created:	October 2nd 1972.
Manager:	William Escobar Aristizábal, manager	Date Incorporated:	NA
Staff:	90	Stock:	NA
		Value:	NA
Activity:	Distribution and import of stainless steel.

BANKS

Name of the Bank	Bancolombia
Name of the Bank	Banco Davivienda
Name of the Bank	Banco De Bogota
Name of the Bank	Banco De Occidente
Name of the Bank	Citibank

BUSINESS

HISTORY
	This company was created on October 2nd 1972.
PRINCIPAL ACTIVITY
	The structure is dedicated to the import and distribution of stainless steel products. Its sales are wholesale and retail depending on the demand.
Products/Services description:
	STAINLESS STEEL FLAT IN STEEL PIPE STRUCTURAL AND ORNAMENTAL BARS AND STAINLESS STEEL PLATES.
Sales are:
	Wholesale, Retail
Clients:
	Public in general Professionals of the industry.
Operations area:
	National, Local
The company imports from Asia and Europe.
Trade References:
	The person contacted refused to provide the names of their suppliers on grounds of confidentiality.
The subject employs 90 employee(s)
Comments on staff:
	The mentioned information was provided during the interview.
PAYMENTS
	made on a 60 days basis - monitored over the last 12 months
LOCATION
Headquarters
	This company is headquartered at Av CI 63 74B-42, Interior 6 Parque Empresarial Normandia Bogota Colombia.
Branches:
	No additional branches were reported.

Shareholders

Manager - Related Companies

Shareholders Parent Company(ies):
	This company is privately held. Mr. William Escobar Aristizábal is the main shareholder of the company.
Management:
	William Escobar Aristizábal, manager Sebastian Escobar, Purchase Director

Financials

COMMERCIAL TRENDS AND FORECAST

As a private company the subject does not publish any financial statements.
We have contacted Sebastian Escobar, Purchase Director who refused to provide us any financial data on grounds of confidentiality.

Currency	DATE
COP	2011
Turnover	54,331,989,000
Operating Income	6,016,134,000
Net Income	4,469,672,000
Current Assets	70,864,238,000
Fixed Assets	15,941,262,000
Net worth	34,353,282,000
Liabilities	52,452,218,000
Bank liabilities	41,782,409,000
The cash flow is	Medium

Comments on the financial data: According to the information obtained through external sources, the company has a total FOB amount in the range of USD 6,306,210.
Legal Filings
The sources consulted record no detrimental legal or labor court information.

Rating

Local credit bureau gave a correct credit rate.

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

Final Opinion

WESCO SA is a medium sized company with 90 employees.

The structure has 40 years of experience in the area and a solid relation with its European and Chinese suppliers due to the nature of its business.

There were no legal filings found against the company or its legal representatives.

Based on the financial data mentioned on this report, the company had a good profitability for the year 2011.

However, it is important to highlight that the company’s debt were high for last year.

On the other hand, the payment trend remained on a regular basis and the cash flow is medium.

A review within the following months is recommended to check the company’s debt.

SUMMARY

FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	CORRECT	Public	NO
Indebtedness	HIGH	Payments	REGULAR
Cash	MEDIUM

APPENDIX

Person Interviewed
	Sebastian Escobar
Position
	Purchase Director
Comments
	The person contacted provided us with the following data: Length of payments to their suppliers Banks that they work with Staff Places where they import from Name of major shareholder. However, he refused to provide us the name of their suppliers and also refused to confirm the financial data mentioned on this report on grounds of confidentiality.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.70
UK Pound	1	Rs.84.51
Euro	1	Rs.68.16

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.