MIRA INFORM REPORT

Report Date :

09.12.2014

IDENTIFICATION DETAILS

Name :	INDUSTRIAS ELECTRO QUIMICAS S.A
Registered Office :	Industrias Electro Quimicas S.A Av. Elmer Faucett Nro. 1920 urb. AEROPUERTO II Etapa Prov. Const. Del Callao - prov. Const. Del callao - callao
Country :	Peru
Date of Incorporation :	1963
Legal Form :	Societe Anonyme
Line of Business :	Subject is engaged in the transformation and exportation of zinc mainly aimed at the industrial and automotive industries.
No. of Employees :	444

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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 topography - 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. Peru is the world's second largest producer of silver and third largest producer of copper. The Peruvian economy has been growing by an average of 5.6% for the past five years with a stable exchange rate and low inflation, which in 2013 was just below the upper limit of the Central Bank target range of 1 to 3%. For the last three years, this growth was due partly to high international prices for Peru's metals and minerals exports, which account for almost 60% of the country's total exports. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs makes the economy vulnerable to fluctuations in world prices. Peru's rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by 28 percentage points since 2002, but inequality persists and continues to pose a challenge for the Ollanta HUMALA administration, which has championed a policy of social inclusion and a more equitable distribution of income. Poor infrastructure hinders the spread of growth to Peru's non-coastal areas. 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 EU, the European Free Trade Association, Chile, Thailand, Costa Rica, Panama, Venezuela, concluded negotiations with Guatemala, and begun trade talks with Honduras and El Salvador, Turkey and the Trans-Pacific Partnership. Peru also has signed a trade pact with Chile, Colombia, and Mexico, called the Pacific Alliance, that rivals Mercosur. Since the US-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the United States has doubled. 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

company name and address
Legal Name:	INDUSTRIAS ELECTRO QUIMICAS S.A
Trade Name:	IEQSA
RUC:	20100003512
Date Created:	1963
Date Incorporated:	09/08/1963
Legal Address:	AV. ELMER FAUCETT NRO. 1920 URB. AEROPUERTO II ETAPA PROV. CONST. DEL CALLAO - PROV. CONST. DEL CALLAO - CALLAO
Operative Address:	Av. Elmer Faucett 1920 - Callao. PERU
Telephone:	511572-4444
Fax:	511572-0118
Legal Form:	Sociedad Anónima
Email:	exports@ieqsa.com
Registered in:	Perú
Website:	www.ieqsa.com
Manager:	Carlos Gliksman Latowicka
Staff:	444
Activity:	Industrial Chemical Manufacturing
SIC CODE:	2812 2813
BANKS
Name of the Bank:	Banco del Perú
HISTORY
	The company started business in 1963
PRINCIPAL ACTIVITY
	Industrias Electro Quimicas SA (IEQSA) is a Peru-based company primarily engaged in the transformation and exportation of zinc mainly aimed at the industrial and automotive industries.
Products/Services description:	Its operations include the production of metallurgical zinc derivatives such as alloys, rolled zinc (sheets, strips, coils and plates), zinc discs (calotas or yew) batteries, zinc powder for alkaline batteries, electrochemical sheets for use, plates for zincograbado, anodes for electroplating (zinc electrolyte) and the production of chemicals such as zinc oxide.
Brands:	IEQSA
Sales are:	Wholesale
Clients:	Chemical Indusrty/ Automotive Industry (USA)
Suppliers:	NA
Operations area:	National & International
The company imports from	Europe
The company exports	USA, Italy, Canada, Brazil
The subject employs	444 employees
Payments:	Regular
LOCATION
Headquarters :	Av. Elmer Faucett 1920 - Callao. PERU
Branches:	The company does not have branches
Business Overview:	Companies in this industry manufacture gases, dyes and pigments, chlorine and caustic soda, sulfuric and nitric acids, and organic chemicals. Demand depends on the overall strength of the economy, because most industrial chemicals are used in the manufacture of more-complicated products like fibers, plastics, paints, and paper. The profitability of individual companies is closely linked to efficient operations, because most products are commodities. Big producers have large economies of scale in production, which is why some chemicals are made by just a handful of companies. Small companies can compete effectively by making specialized or highly-purified products. Industrial chemicals include gases like oxygen and nitrogen, dyes and pigments, chlorine and caustic soda, sulfuric and nitric acids, and thousands of organic chemicals. Unlike advanced chemicals that are manufactured through complicated chemical reactions, most industrial chemicals are made by extraction and purification from natural substances, including minerals, natural gas, petroleum, plants, air, and water. Oxygen and nitrogen gas are made by freezing air, phosphates from marine deposits, ethanol by fermenting corn, chlorine from salt water, and a large number of chemicals are made by boiling petroleum.
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	YES-IEQSAI1
Capital:	46'162,016 Common Stock, Par Value of a S /. 1.00 each
Shareholders %:	The major holders are: Parma Holdings S.A. 60.00 % UMICORE 40.00 %
Management:	CORNEJO TORRES JOSE LUIS, Accountant MUSSO VENTO RAUL ALBERTO FRANCISCO, General Manager GLIKSMAN LATOWICKA CARLOS, Director GLIKSMAN GOLDSTEIN ALEX, Attorney RIVERA MINAYA JOSE MANUEL, Executive Officer
Subsidiary Companies:	The company does not have subsidiaries
FINANCIAL INFORMATION
YEAR 2013	CURRENCY: Nuevos Soles Peruanos
National sales:	5,837
Foreign sales:	182.193
Beginning balance of finished products:	10,426
Opening balance of goods in process:	3,942
Raw materials:
Opening Balance:	24.134
Purchase of raw materials:	140.264
Interest on loans and leasing	344
Bank charges:	328
Closing balance of goods in process:	170.454
	The results of 2013, reflecting higher sales in tonnes (1.04%) more compared to the same period last year); Gross margin increased mainly due to a recovery of provision for impairment of inventories by S / is obtained. 3'606,000. The Company recorded a provision for impairment of financial assets up to S / 9.254 million, according to the analysis of impairment indicators established according to IAS 36, "Impairment of Assets" With respect to the exchange difference, a foreign exchange loss caused by the variation kindof change nuevo sol against the US dollar and the euro, the exchange difference was less conrespecto the same period of 2012 is shown. The administrative requirements in terms of percentages and monetary decreased over the same period of 2012. The cost of sales both in terms of percentages and monetary increased over the same period of 2012. The financial costs both in terms of percentages and monetary decreased over the same period of 2012.
LEGAL FILINGS
	There are no legal/crimminal -
	GUARANTEES GRANTED As of September 30, 2013, for loans obtained from its main supplier, the Company has granted the following warranty: Institution: Votorantim Metais SA -Cajamarquilla Warranty type: Mortgage Description:. Property located at Av Elmer Faucett No.1920-Callao Amount US $ 4,000,000
SUMMARY
	Industrias Electro Quimicas SA (IEQSA) is a Peru-based company primarily engaged in the transformation and exportation of zinc mainly aimed at the industrial and automotive industries. The company has a large sized structure and exports its products mainly for the automotive industry to USA and Brazil. Its major holder is a well known company; Parma Holdings S.A. The company is active, and shows no official requirements ommissions in the Peruvian Registry.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	No complaints
CASH FLOW	Normal
ENTERVIEW
NAME	NA
POSITION	Operator
COMMENTS	The person contacted only confirmed activity and manager. He refused to provide us with more data.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.93
UK Pound	1	Rs.96.37
Euro	1	Rs.76.10

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIS

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.