MIRA INFORM REPORT

Report Date :

26.07.2013

IDENTIFICATION DETAILS

Name :	POLIMETALES S.A.C.
Registered Office :	Argentina 2787 Zona Industrial, Cercado, Lima, 1
Country :	Peru
Financials (as on) :	31.12.2011
Date of Incorporation :	18.10.1969
Com. Reg. No.:	Entry 1, Page 101, Volume 344/License 05459
Legal Form :	Closely-held Corporation
Line of Business :	Subject is engaged in import and trading of stainless steel products like sheets, pipes, bars, mesh, valves, accessories It also provides services of cutting and manufacture of bars, sheets and plates.
No. of Employees :	85

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 – March 31^st 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Peru	A2	A2

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

Peru ECONOMIC OVERVIEW

Peru's economy reflects its varied geography - an arid lowland coastal region, the central high sierra of the Andes, the dense forest of the Amazon, with tropical lands bordering Colombia and Brazil. A wide range of important mineral resources are found in the mountainous and coastal areas, and Peru's coastal waters provide excellent fishing grounds. The Peruvian economy has been growing by an average of 6.4% per year since 2002 with a stable/slightly appreciating exchange rate and low inflation, which in 2013 is expected to be below the upper limit of the Central Bank target range of 1 to 3%. Growth has been in the 6-9% range for the last three years, due partly to a leap in private investment, especially in the extractive sector, which accounts for more than 60% of Peru's total exports. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs subjects the economy to fluctuations in world prices. Poor infrastructure hinders the spread of growth to Peru's non-coastal areas. Peru's rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by 23 percentage points since 2002, but inequality persists and continues to pose a challenge for the new Ollanta HUMALA administration, which has championed a policy of social inclusion and a more equitable distribution of income. Peru's free trade policy has continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the European Free Trade Association, Chile, and four other countries; concluded negotiations with Venezuela, Costa Rica, and Guatemala; and begun trade talks with two other Central American countries and the Trans-Pacific Partnership. Peru also has signed a trade pact with Chile, Colombia, and Mexico called the Pacific Alliance that rivals Mercosur in combined population, GDP, and trade. The US-Peru Trade Promotion Agreement entered into force 1 February 2009, opening the way to greater trade and investment between the two economies. Although Peru has continued to attract foreign investment, political activism and protests are hampering development of some projects related to natural resource extraction.

Source : CIA

IDENTIFICATION
CORRECT COMPANY NAME	POLIMETALES S.A.C.
TAXPAYER REGISTRATION	RUC 20100456495
MAIN ADDRESS	Argentina 2787 Zona Industrial, Cercado,
POSTAL CODE	Lima, 1
DEPT/PROV/REGION/STATE	Lima / Lima
COUNTRY	PERU
TELEPHONE	(511) 6193600
WEB	www.polimetales.com.pe
COMMENTS
Additional E-mails: polimetales@camaralima.org.pe jsanchez@polimetales.com polimetales@infoweb.com lrojas@polimetales.com ghidalgo@polimetales.com

EXECUTIVE SUMMARY
Date of foundation	1969
Capital stock	S/ 20,000,000.= Nuevos Soles
Shareholders' equity	21,591,079.00 Nuevos Soles (31DEC2011)
Annual revenues	US$ 31,372,549.02 Nuevos Soles (31DEC2012)
Profits (loss)	1,039,015.00 Nuevos Soles (31DEC2011)
permanent employees	85*
Chief Executive	CEINO MAZZINI, ACHILLE
Disposition	TF: REPORT PREPARED FROM OUTSIDE SOURCES.
Payments policy	Usually to terms/good
Number of times that this company was required: 18

REPUTATION

Good Taxpaying Company

NOTHING AGAINST COMPANY

LEGAL STRUCTURE
LEGAL STATUS	Closely-held Corporation
DATE OF INCORPORATION	18OCT1969	STARTING DATE	19/10/1969
PLACE OF REGISTRY	Lima
NOTARY OFFICE	Augusto Changanaquí	DURATION	Perpetual
REGISTRATION	Entry 1, Page 101, Volume 344/License 05459
INITIAL CAPITAL	S/.250,000.= Soles
CURRENT PAID-IN CAPITAL	S/ 20,000,000.= Nuevos Soles
SHAREHOLDERS EQUITY	21,591,079.00 Nuevos Soles (31DEC2012)
CURRENT EXCHANGE RATE (US$)	S/.2.71 Nuevos Soles
COMMENTS
Subject was included in the system of "Good Taxpayers" (Resolution No.0210050000395 SUNAT) on 01/03/2006. Sedapal rated subject as a Good Payer, based on punctual payment over the last 3 consecutive months, as reported on 31/05/2013.

DIRECTORS

- EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
VIVANCO DE FRENCH, MARIA LUCRECIA	Director		06/12/2007
CEINO MAZZINI, ACHILLE	General Manager		21/12/2002
ROJAS CARMELINO, ROBERTO	Legal Representative		17/03/2011
HIDALGO VIGIL, GILBERTO	General Accountant
ROJAS ROCA, ROBERTO	Shareholder	93%
CARMELINO HERRERA DE ROJAS, NELLY MARTA	Shareholder	7%

WHO IS WHO?

VIVANCO DE FRENCH, MARIA LUCRECIA

TITLE

Director

NATIONALITY

Peruvian

ID

DNI 10541881

CEINO MAZZINI, ACHILLE

TITLE

General Manager

NATIONALITY

Italian

D.O.B.

07AUG1936

ID

C.Ext. 218327

PROFESSION

Civil Engineer

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
POLIEXPORT S.A.C.	General Manager	20509435775	PERU
POLICONSTRUYE S.A.	General Manager	20514455466	PERU
INDUSTRIA ANDINA DE METALES SAC	General Manager	20154913611	PERU
MAQUINARIAS Y MATERIALES METALICOS SAC	Manager	20101543677	PERU

ROJAS ROCA, ROBERTO

TITLE

Shareholder

NATIONALITY

Peruvian

D.O.B.

03/09/1942 (Huancayo)

ID

DNI 08769316

CIVIL STATUS

Married to Nelly Carmelino Herrera

DOMICILE

Del Sur 280, Monterrico, Lima

TAX ID

10087693169

FATHER'S NAME

Eliseo

MOTHER'S NAME

Elena

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
INDUSTRIA ANDINA DE METALES SAC	President	20154913611	PERU
MAQUINARIAS Y MATERIALES METALICOS SAC	President	20101543677	PERU

CARMELINO HERRERA DE ROJAS, NELLY MARTA

TITLE

Shareholder

NATIONALITY

Peruvian

D.O.B.

29/12/1946 (Huancayo)

ID

DNI 08769318

CIVIL STATUS

Married to Roberto Rojas Roca

DOMICILE

Del Sur 280, Monterrico, Lima ,Lima

FATHER'S NAME

Ernesto

MOTHER'S NAME

Hermelinda

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
MAQUINARIAS Y MATERIALES METALICOS SAC	Director	20101543677	PERU
INDUSTRIA ANDINA DE METALES SAC	Shareholder	20154913611	PERU

BUSINESS HISTORY

Subject was incorporated under the name POLIMETALES S.A.
 

Later, pursuant to Notarial Act dated October 1998, before Notary Velarde Sussoni, Bylaws were amended in compliance with the provisions of the New Business Corporations Act (No.26887), and adopted a new legal status - Closely Held Corporation.

 
POLIMETALES S.A.C. was founded exclusively with the support of Peruvian capital on 18/10/1969 to be engaged in the provision of stainless steel, special steel, ferrous and nonferrous metals used in the metalmechanical industries, fisheries, field industry, drink and food industries, among others as well as its service to architecture and decoration.
 
Likewise, subject supplies orders with particular characteristics through the Department of Imports in collaboration with the USA office. Subject is able to provide products from any country.
 
POLIMETALES S.A.C. is related to the following companies.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
INDUSTRIA ANDINA DE METALES SAC	PERU	20154913611	Related
MAQUINARIAS Y MATERIALES METALICOS SAC	PERU	20101543677	Related

BUSINESS

SIC Classification
5 2 - BUILDING MATERIALS TRADE, HARDWARE (RETAIL). (Lumber and other building materials, paint, glass, hardware stores, wallpaper stores.)

Main activity

 
Subject is engaged in import and trading of stainless steel products like sheets, pipes, bars, mesh, valves, accessories.
It also provides services of cutting and manufacture of bars, sheets and plates.

OPERATIONS

Import

Yes

Country

Brazil, China, Hong Kong, India, Italy, Panama, South Africa, Spain, Ecuador, Taiwan

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2013	4,097,955.43
2012	18,370,382.61
2011	7,030,805.00
2010	14,065,988.00
2009	14,652,772.00
2008	14,527,239.00

Export

Yes

COUNTRY

Panama and Ecuador

Annual exports in US$ (FOB)

YEAR	AMOUNT
2011	367,600.00
2010	414,793.00
2009	1,060,794.00
2008	95,953.00
2007	76,841.00

% CASH SALES / METHOD

35%

% Credit SALES / Terms

65% (Drafts at 30 and 60-day terms)

% Ventas exterior (Paises)

3%

% DOMESTIC PURCHASES

30%

% FOREIGN PURCHASES

70%

SELLING TerritorY

Domestic and international market

EMPLOYEES

85*

LOCATION
PREMISES	Own Settled
AREA	2,400 m2
OTHER PREMISES	Premises are shared with its related companies INDUSTRIA ANDINA DE METALES S.A. and MAQUINARIAS Y MATERIALES METALICOS S.A. Branch: - Av. Separadora Industrial Mza. F1 Lote 10 Z.I. Villa El Salvador, Lima Warehouses: - Jose Celendon Condestabble 973, Lima - Calle José Celendon Condestable No 973, Lima. - Av. El Pacífico 161, Independencia, Lima. Other premises: - Av. El Sol Mza. F1, Lote 1, Zona Industrial, Villa El Salvador.

Comments

Subject sells at 60% in Lima and at 40% in Arequipa, Cuzco, Iquitos, Pucallpa and Trujillo.
 
Subject's main customers include:
- INTERIN S.A.
- SOUTH NAVAL S.A.
- ENCO S.A.
- MATCIN S.R.L.
- GLORIA S.A.
- ABAD INGENIEROS
- FIMA S.A.
- AUSTRAL GROUP S.A., among others.
 
According to SUNAT, subject's main economic business activity is other types of retail sales.
As secondary business activity, subject is engaged in manufacture of iron and steel products, as well as tanks, docks, and metal vessels. 
 
* Dependent workers and/or pensioners for the period 05/2013.
For the period 12/2012, it was stated it had 111 workers.

FINANCIAL INFORMATION

Disposition

TF: REPORT PREPARED FROM OUTSIDE SOURCES.

Interviewee(s)

Gilberto Hidalgo

Position(s)

General Accountant

Information provided

He confirmed general information.
Our request for financial statements was not met. He only mentioned that subject's sales for the fiscal year 2012 amounted to approximately S/.84 million Nuevos Soles. He said that sales decrease was due to a productivity issue, which caused also staff cut.
 
From previous investigations, figures from the Annual Balance Sheet as of 31/12/2011 (12 months) are available. In that opportunity, we were informed that sales drop compared to the fiscal year 2010 was due to an overstock. High prices of products. In the fiscal year 2011, subject sold its products at market prices for not overstocking and for selling products at lower prices.
 
We consulted official sources, where supplementary information was found. Sales indicators found in consulted sources are included in this report.
 

BALANCE SHEET
Balance sheet date	31DEC2011
Type of balance sheet	Annual
Period	12 months
Currency	Nuevos Soles
Exchange rate per US$	2.73
A S S E T S
Current Assetsd	78,269,399.00
Fixed	10,018,736.00
Total Assets	88,288,135.00
L I A B I L I T I E S
Current liabilities	25,489,227.00
Long term	41,207,829.00
TOTAL LIABILITIES	66,697,056.00
S H A R E H O L D E R S'  E Q U I T Y
Total shareholders equity	21,591,079.00
Total Liab. / Sh. equity	88,288,135.00
Sales	89,377,091.00
Profit (Loss)	1,039,015.00

RATIO
Liquidity ratio	3.07	Current assets / Current liabilities
Debt-to-equity ratio	84.71 %	(Shareholders' equity / Current liabilities %)
Profitability margin	1.16 %	(Profits / Sales %)
Working capital	52,780,172.00	(Current assets - Current liabilities)

FINANCIAL SITUATION

B: FAIR
Although no financial statements are available, it could be found out that subject is a big-sized company with many years of operations. Payment performance is good. It is insured.
 

Sales History in US$ (of Balance Sheet, statement of third parties)

Date	Sales (US$)
31/12/2012	31,372,549.02
31/12/2011	32,738,861.17
31/12/2010	38,341,078.57
31/12/2009	31,171,783.97
31/12/2008	22,845,230.52
31/12/2007	28,130,451.18
31/12/2006	13,865,375.00

INSURANCE

COMPANY	AGAINST
RIMAC INTERNACIONAL CIA DE SEGUROS	Import floating policies
MAPFRE PERU CIA DE SEGUROS Y REASEGUROS	Premises and stocks

Insurance Comments

Insurance policy is taken out through Montenegro and Mont S.R.L.

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Supplier: BARRON & ASOCIADOS AGENTES DE ADUANA S.A.C.	Tel.: (511) 5782222	Country: PERU
Goods/Services? : Customs services
Highest credit? : US$ Unlimited
Client since? : 2003	Terms? : 120 days	Performance? : Prompt
Supplier: MULTIMET S.A.	Tel.: (511) 4600023	Country: PERU
Goods/Services? : Steel plates
Highest credit? : DC Unlimited
Client since? : 2000	Terms? : 60 days	Performance? : Prompt
Supplier: C&J ADMINISTRADORES	Tel.: (511) 5330269	Country: PERU
Goods/Services? : Transportation services
Highest credit? : DC Unlimited
Client since? : 2009	Terms? : 15 days	Performance? : Prompt
Supplier: TUBISA S.A.C.	Tel.: (511) 7115000	Country: PERU
Goods/Services? : Steel material
Highest credit? : US$ 600,000.=
Client since? : 2006	Terms? : 60-90 days	Performance? : Prompt
Supplier: FIORELLA REPRESENTACIONES SAC	Tel.: (511) 3196160	Country: PERU
Goods/Services? : Industrial hardware items
Highest credit? : US$ 130,000.=
Client since? : 2008	Terms? : 60 days	Performance? : Prompt
Supplier: ACEROS BOEHLER DEL PERÚ S.A.	Tel.: (511) 6193250	Country: PERU
Goods/Services? : Special steels
Highest credit? : DC 5,000.=
Client since? : 1998	Terms? : 30 days	Performance? : Prompt

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

Supplier	Country
AGENCIA DE ADUANA TRANSCONTINENTAL S A	PERU
COMERCIAL DEL ACERO S.A.	PERU
GUICEVE S.A.C.	PERU
COMFER S.A	PERU
TECNIADUANA S.A.C.	PERU
VALCAZAR INGENIEROS S.A.C.	PERU
AGENCIA DE ADUANAS J Y N ASOCIADOS	PERU
AG. DE AD. RODOLFO BUSTAMANTE	PERU
MAISON F. MATIEU NV	BELGIUM
YIEH CORPORATION LTD	CHINA
ACERINOX	SPAIN
ROLDAN	SPAIN
VIRAJ	INDIA
TEMISA	MEXICO
OTOKUMPU	SWEDEN
CEMET	SOUTH AFRICA
PRIMAMETALIS	VENEZUELA
RODOLFO BUSTAMANTE S.A. AGENTES DE ADUANA	PERU

RISK INFORMATION CENTER

COMMERCIAL DELINQUENCY

Drawer	Document	Protested date	Amount S/.	Amount US$	Payment date
GUICEVE S.A.C.	Draft	03/05/2010	0.00	69,925.80
GUICEVE S.A.C.	Draft	10/05/2010	0.00	15,190.07
GUICEVE S.A.C.	Draft	10/05/2010	0.00	15,190.07
GUICEVE S.A.C.	Draft	08/06/2010	0.00	15,190.07
GUICEVE S.A.C.	Draft	08/06/2010	0.00	15,190.07
GUICEVE S.A.C.	Draft	22/04/2010	0.00	15,190.07

CREDIT BUREAU COMMENTS

In credit risk centers, subject is reported with 9 PROTESTS for a total amount of US$230,992.= Dollars. All of these documents are pending of regularization before the Chamber of Commerce. NOTE: It should be noted that while duly regularization before the Chamber of Commerce, a document may continue to appear as not settled although it has been cancelled. It was not found any on payments in default, written-down portfolio, cancelled credits due to mishandling, or similar issues. Subject is a taxpayer with no tax debt under coercive collection proceeding. No information on tax omission was found in credit risk centers. Consolidated pension-related debts with pension fund administrators: No adverse were found.

SUPERINTENDENCY OF BANK & INSURANCE (SBS)

Debt structure for bank. SBS Latest Consolidated Credit Report as of : 31/05/2013

Bank	Debt Rating (*) See caption	Current Debt
		DOMESTIC CURRENCY	FOREIGN CURRENCY
CONTINENTAL	NORMAL	2,841,892.00
CREDITO	NORMAL	1,149,274.00
INTERBANK	NORMAL	276,662.00
BIF	NORMAL	15,518.00
SCOTIABANK	NORMAL	1.00
Total		4,283,347.00
Guarantees		8,701,779.00

CONSOLIDATED DEBT (ALL BANKS)                              ENTITIES NUMBER : 5                           31/05/2013

		Domestic Currency	Foreign Currency
LOANS	:	3,411,760.00
DISCOUNTS	:	416,052.00
FINANCIAL LEASING	:	317,161.00
OTHER INDIRECT CONTINGENT DEBTS	:	44,139.00
ACCRUALS	:	94,236.00
		--------------------------------------------	--------------------------------------------
TOTAL DEBT	:	4,283,348.00
		=========================	=========================

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.58.94
UK Pound	1	Rs.90.48
Euro	1	Rs.77.87

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.