MIRA INFORM REPORT

Report Date :

09.08.2014

IDENTIFICATION DETAILS

Name :	DISTRIBUIDORA METALICA S.A. DE C.V.

Registered Office :	Año de Juárez 387 Col. Granjas San Antonio 09070

Country :	Mexico

Date of Incorporation :	1947

Legal Form :	Stock Company of Variable Capital

Line of Business :	Subject is engaged in purchase and sale of steel and metals.

No. of Employees :	280

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 01, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Mexico

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

MEXICO - ECONOMIC OVERVIEW

Mexico's $1.3 trillion economy has become increasingly oriented toward manufacturing in the 20 years since the North American Free Trade Agreement (NAFTA) entered into force. Per capita income is roughly one-third that of the US; income distribution remains highly unequal. Mexico has become the United States' second-largest export market and third-largest source of imports. In 2013, two-way merchandise trade reached nearly $507 billion. Mexico has free trade agreements with over 50 countries including Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan - putting more than 90% of trade under free trade agreements. In 2012 Mexico formally joined the Trans-Pacific Partnership negotiations and formed the Pacific Alliance with Peru, Colombia and Chile. Mexico's current government, led by President Enrique PENA NIETO, emphasized economic reforms during its first year in office, passing education, energy, financial, fiscal and telecommunications reform legislation. The three-party "Pact for Mexico" reform agenda aims to improve competitiveness and economic growth across the Mexican economy

Source : CIA

IDENTIFICATION

CORRECT COMPANY NAME

DISTRIBUIDORA METALICA S.A. DE C.V.

TRADE NAME

TAXPAYER REGISTRATION

RFC DME670413CU8

MAIN ADDRESS

Año de Juárez 387 Col. Granjas San Antonio

POSTAL CODE

09070

DEPT/PROV/REGION/STATE

México DF / Distrito Federal

COUNTRY

MEXICO

TELEPHONE

(5255) 54904424 - 54904400

CORPORATE E-MAIL

dmcont@metalica.com.mx

WEB

www.metalica.com.mx

EXECUTIVE SUMMARY
Date of foundation	1947
permanent employees	280
Chief Executive	NAVA FUENTES, MIGUEL MARCOS
Disposition	SATISFACTORY
Payments policy	Usually to terms / good
Credit ()**	Risk is Minimal, Solvent, Satisfactory Financial Situation.
Number of times that this company was required: 10

LEGAL STRUCTURE


LEGAL STATUS	Stock Company of Variable Capital
DATE OF INCORPORATION	1947
PLACE OF REGISTRY	Mexico, DF
NOTARY OFFICE		DURATION	99 years
REGISTRATION	Mexico DF Public Registry on 13/04/1967
CURRENT EXCHANGE RATE (US$)	Ps$13.21 Pesos per US$1.= Dollar
MEMBERSHIP	NATIONAL CENTER FOR THE DEVELOPMENT OF STEEL. CANACO

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
*NAVA FUENTES, MIGUEL MARCOS*	General Director	50%
NAVA FUENTES, EUGENIO	Treasurer	50%
CAMARA GONZALEZ, HUGO	Administrative manager
JIMENEZ MORENO, JAIME	Purchasing Head
LOPEZ, VENANCIO PEDRO	General Accountant
RAMIREZ, MARCELA	Controller
CUELI JIMÉNEZ, RAFAEL	Commercial director

WHO IS WHO?

NAVA FUENTES, MIGUEL MARCOS

TITLE

General Director

NATIONALITY

Mexican

PARTICIPATED IN

COMPANY	TITLE	COUNTRY	YEAR / REF
COMERCIAL IDASA S.A. DE CV	Manager	MEXICO	1993

NAVA FUENTES, EUGENIO

TITLE

Treasurer

NATIONALITY

Mexican

BUSINESS HISTORY

Subject started operating in 1947 in Mexico City under the corporate name DISTRIBUIDORA METALICA S.R.L. DE C.V. It changed its legal status on 13/04/1967 to Open-End Stock Corporation in order to be engaged in purchase and sale of steel and metals.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
ACTIVIDADES ADMINISTRATIVAS INTEGRADAS S.A.	MEXICO		Related
IDASA INTERNACIONAL DE ACEROS S.A. DE C.V.	MEXICO		Related
INMOBILIARIA ESTRELLA DEL SUR S.A. DE C.V.	MEXICO		Related

BUSINESS

SIC Classification
L - INDUSTRIA MANUFACTURERA DIVERSA - CONFECCIONES (Industria manufacturera diversa de productos y artículos de consumo y utilitarios, vestidos, camisas, confecciones)

Main activity

Subject is engaged in purchase and sale of steel and metals.

Sold products: Smooth sheet, grooved sheet, plate, stainless fitting and valves, wires, welding, metal mesh, etc.

Brands: THYSEENKRUPP, CUPRUM, NACOBRE, TERNIUM, WALTER, HYPERTHERM, PROARC, etc.

O P E R A T I O N S

Import

Yes

Country

United States, South America and Europe (40%)

Export

% CASH SALES / METHOD

10%

% Credit SALES / Terms

90% (Terms: 30 days)

SELLING TerritorY

Domestic market

EMPLOYEES

280

LOCATION
PREMISES	Own Settled
AREA	1,430 m2
OTHER PREMISES	Subject's registered office, administrative offices, warehouse, and point of sale are located on the above-mentioned address. BRANCHES: Subject has 9 branches located on: QUERETARO Av. 5 de Febrero No. 1264 Col. La Piedad, Querétaro, Querétaro * NAUCALPAN Av. 16 de Sept. No. 68-B Col. Alce Blanco, Naucalpan, Estado de México * TOLUCA 1° de Mayo Ote. No. 1706 Col. Zona Industrial, Toluca, Estado de México * PUEBLA Gran Avenida No. 3672 Col. Las Cuartillas, Puebla, Puebla * TORREON Av. Arista No. 1515 Col. Centro, Torreón, Coahuila * GUADALAJARA Av. Lázaro Cárdenas No. 1345 Col. Fracc. El Álamo Industrial, Guadalajara, Jalisco * MONTERREY Pablo A. Glez. No. 911-A Pte Col. Parque Industrial Carlos Ruiz Corti, Guadalupe, Nuevo León * VALLEJO Poniente 116 No. 441 Col. Industrial Vallejo, México, Distrito Federal * LEON Avenida Transportistas 335-5 Col. Unidad Obrera, León, Guanajuato

Comments

Subject sells at 20% on a retail basis and at 80% on a wholesale basis.

FINANCIAL INFORMATION

Disposition

Very few information was given. Politely.

Interviewee(s)

Venancio Pedro López

Position(s)

General Accountant

Information provided

We contacted Mr. Venancio Pedro López, General Accountant, who declined to provide financial information of the company on grounds of confidentiality.

SALES

US$ 0.00 ()

FINANCIAL SITUATION

SATISFACTORY

It was not possible to obtain financial information about the operations of the company. Its suppliers expressed in good terms about it, no negative history are recorded in the following databases.

As detailed above, and historical experience, we can predict that the fact to prove investigated company by amounts consistent with their ability to pay and with the usual guarantees of this type of operation, is not a higher than average risk.

Property of company comments

Real Properties: Subject reports the property as owned premises, with a total area of 1,430 m2, divided into administrative offices, warehouse and point of sale.

Vehicles: They have 10 vehicles including trucks and vans but does not provide brands or models.

Machinery and Equipment: Subject has desks, shelves, computer equipment, office equipment, telephones, fax, line-related machinery, etc. Everything owned by the company.

INSURANCE

COMPANY	AGAINST
SEGUROS MAPFRE TEPEYAC SA DE CV	Various risks

Main fixed assets of the company (general detail)

Subject is covered by the mentioned insurance company.

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Supplier: ACEROPCIS, S.A. DE C.V.	Tel.: +52 55 57051258	Country: MEXICO
Goods/Services? : Stainless steel, wire, steel bars
Highest credit? : US$ 50,000.00
Client since? : 2004	Terms? : 30 days	Performance? : Prompt
Comments : Monthly average: Ps$35,000.00
Supplier: IDASA INTERNACIONAL DE ACEROS, S.A. DE C.V.	Tel.: +52 55 54904400	Country: MEXICO
Goods/Services? : Steel Pipe
Highest credit? : Open
Client since? : 1973	Terms? : 30 days	Performance? : Prompt
Comments : Monthly average: Ps$500,000.00
Supplier: TREFILADOS INOXIDABLES DE MÉXICO, S.A. DE C.V.	Tel.: +52 55 57051258	Country: MEXICO
Goods/Services? : Stainless steel
Highest credit? : Open
Client since? : 2002	Terms? : 30 days	Performance? : Prompt
Comments : Monthly average: Ps$200,000.00
Supplier: CASA SOMMER, S.A. DE C.V.	Tel.: +52 55 26298080	Country: MEXICO
Goods/Services? : Steel
Highest credit? : Open
Client since? : 2003	Terms? : 30 days	Performance? : Prompt
Comments : Monthly average:USD4,000.00

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

Supplier	Country
THYSSENKRUP MEXINOS, S.A. DE C.V	MEXICO
TUBOS Y BARRAS HUECAS SA DE CV	MEXICO
KJ STEEL AND ALUMINIUM SA DE CV	MEXICO
MEXINOX SA DE CV	MEXICO
NACOBRE S.A. DE C.V.	MEXICO
CUPRUM, S.A. DE C.V.	MEXICO
VIRAJ	INDIA
SALZGITTER, AG	GERMANY
NAS MEXICO, S.A. DE C.V.	MEXICO
NACIONAL DE COBRE, S.A. DE C.V.	MEXICO
LA PALOMA CIA DE METALES, S.A. DE C.V.	MEXICO

Comments :

BANCO NACIONAL DE MEXICO BBVA BANCOMER SA Subject is a client of the above-mentioned bank, which did not provided any references under bank secrecy.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.55
UK Pound	1	Rs.103.50
Euro	1	Rs.82.41

INFORMATION DETAILS

Analysis Done by :	SUB

Report Prepared by :	PDT

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.