MIRA INFORM REPORT

Report Date :

21.05.2014

IDENTIFICATION DETAILS

Name :	SOPRANO ELETROMETALURGICA E HIDRÁULICA LTDA
Registered Office :	Rodovia Estadual RS 122 - S/Nº. KM 61 Distrito Industrial, 95180-000 - Farroupilha/RS
Country :	Brazil
Financials (as on) :	31.12.2013
Date of Incorporation :	04.08.1954
Legal Form :	Limited Liability Company
Line of Business :	Manufacturer Of Other Fabricated Metal Products; Metalworking Service Activities.
No of Employees :	1300

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, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
Brazil	A2	A2

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

BRAZIL - ECONOMIC OVERVIEW

Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, and a rapidly expanding middle class, Brazil's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt. After strong growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in 2008. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. In 2010, consumer and investor confidence revived and GDP growth reached 7.5%, the highest growth rate in the past 25 years. Rising inflation led the authorities to take measures to cool the economy; these actions and the deteriorating international economic situation slowed growth in 2011-13. Unemployment is at historic lows and Brazil's traditionally high level of income inequality has declined for each of the last 14 years. Brazil's historically high interest rates have made it an attractive destination for foreign investors. Large capital inflows over the past several years have contributed to the appreciation of the currency, hurting the competitiveness of Brazilian manufacturing and leading the government to intervene in foreign exchange markets and raise taxes on some foreign capital inflows. President Dilma ROUSSEFF has retained the previous administration's commitment to inflation targeting by the central bank, a floating exchange rate, and fiscal restraint.

Source : CIA

COMPANY NAME

SOPRANO ELETROMETALURGICA E HIDRÁULICA LTDA

ADDRESSES

MAIN ADDRESS:	RODOVIA ESTADUAL RS 122 - S/Nº. KM 61 DISTRITO INDUSTRIAL
ZIP CODE/CITY:	95180-000 - FARROUPILHA/RS
PHONE:	54 2109-6338
FAX:	54 2109-6413
E-MAIL:	alessandrocolombo@soprano.com.br
WEB SITE:	www.soprano.com.br

BRANCHES:
ADDRESS:	RODOVIA BR 101 SUL KM 130 GALPÃO A1 DISTRITO INDUSTRIAL
ZIP CODE/CITY:	55500-000 ESCADA/PE
PHONE:	81 3534-1666
CNPJ:	88.634.977/0015-07
STATE REGISTER:	18.1.465.0266221
ADDRESS:	ESTRADA ESTADUAL RS 122 – KM 60 DISTRITO INDUSTRIAL
ZIP CODE/CITY:	95180-000 FARROUPILHA/RS
PHONE:	54 2109-6200
FAX:	54 2109-6216
CNPJ:	88.634.977/0008-88
STATE REGISTER:	045/0030377
ADDRESS:	RODOVIA RS 122 – KM 01 DISTRITO INDUSTRIAL
ZIP CODE/CITY:	95180-000 CAXIAS DO SUL/RS
PHONE:	54 3268-3555
CNPJ:	88.634.977/0009-69
STATE REGISTER:	029/0229766
ADDRESS:	RUA JOÃO ALVES FIGUEIREDO, 20 SALA 04A PLANTA QUISSISSANA
ZIP CODE/CITY:	83085-120 SÃO JOSÉ DOS PINHAIS/PR
CNPJ:	88.634.977/0017-79
STATE REGISTER:	90378647-70
ADDRESS:	AVENIDA DAS INDUSTRIAS, 4000 DISTRITO INDUSTRIAL
ZIP CODE/CITY:	95180-000 FARROUPILHA/RS
PHONE:	54 2109-6000
FAX:	54 2109-6420
CNPJ:	88.634.977/0010-00
ADDRESS:	RODOVIA EDEGAR LOPES DE FARIAS BR 262 KM 361 PAVILHÃO A4 NÚCLEO INDUSTRIAL
ZIP CODE/CITY:	79108-547 CAMPO GRANDE/MS
PHONE:	67 2107-6200
FAX:	67 2107-4227
CNPJ:	88.634.977/0007-05

THE COMPANY ALSO HAS OTHER BRANCHES LOCATED IN: CAMPO GRANDE/MS, FARROUPILHA/RS, CAXIAS DO SUL/RS, SÃO JOSÉ DOS PINHAIS, SÃO PAULO/SP, CAMANDUCAIA/MG, BELO HORIZONTE/MG, ESCADA/PE AND RIO DE JANEIRO/RJ.

LEGAL DATA

MAIN ACTIVITIES:

MANUFACTURE OF OTHER FABRICATED METAL PRODUCTS; METALWORKING SERVICE ACTIVITIES.

LEGAL FORM:	LIMITED LIABILITY COMPANY
INCORPORATION DATE:	04/08/1954
REGISTER DATE:	16/08/1954
BALANCE SHEET FILING DATE:	31/12
TAX CONTRIBUTOR NUMBER(CNPJ):	88.634.977/0001-01
STATE REGISTER:	045/0005810
SHARE CAPITAL:	R$ 185.436.177,00
LAST REGISTER OF CAPITAL:	13/02/2014

BOARD OF DIRECTORS:
LEONARDO MIOTTI	DIRECTOR
GUSTAVO MIOTTI	DIRECTOR

AUTHORIZED USE OF SIGNATURE

THE DIRECTORS ARE AUTHORIZED TO SIGN ON BEHALF OF THE COMPANY.

SHAREHOLDERS / PARTNERS:
PACO INDÚSTRIA METALÚRGICA S/A	R$ 185.105.560,00
LOURDES MARIA VANIN MIOTTI	R$ 102.029,00
RODRIGO MIOTTI	R$ 57.147,00
GUSTAVO MIOTTI	R$ 57.147,00
LEONARDO MIOTTI	R$ 47.147,00
JANAÍNA MIOTTI	R$ 57.147,00

AFFILIATES / SUBSIDIARIES:

A SCAN THROUGH OUTSIDE SOURCES SHOWED THE SUBJECT AND/OR DIRECTORS HAS/HAVE THE FOLLOWING UNCONFIRMED HOLDINGS:

ABILITY PART. SOCIETÁRIAS E EMPREENDIMENTOS

INSTITUTO ADELINO MIOTTI

NSF EMPREENDIMENTOS IMOBILIARIOS LTDA

TRES NETOS PARTICIPAÇÕES SOCIETARIAS E EMPREENDIMENETOS LTDA

REFRIGERAÇÃO TIPI LTDA

INSIEME PART. SOCIETÁRIAS E EMPREENDIMENTOS

RJ E FAMÍLIA PART.SOCIETÁRIAS E EMPREENDIMENTOS

RLDI PARTIC. SOCIETÁRIAS E EMPREENDIMENTOS

LME PARTIC. SOCIETÁRIAS E EMPREENDIMENTOS LTDA

NSC PARTIC. SOCIETÁRIAS E EMPREENDIMENTOS LTYDA

COMPANY'S BACKGROUND

1954 - SOPRANO, A BRAZILIAN BASED COMPANY, STARTED ITS ACTIVITIES, ON AUGUST 4TH, IN THE CITY OF CAXIAS DO SUL - RIO GRANDE DO SUL STATE, AS MANUFACTURER OF ACCORDIONS.

1968 - WITH THE DECREASING OF ACCORDIONS MARKET, THE COMPANY STOPPED THE PRODUCTION OF THOSE MUSICAL INSTRUMENTS AND STARTED TO GIVE TECHNICAL ASSISTANCE TO THE THOUSANDS OF ACCORDIONS THAT HAD PLACED IN THE DOMESTIC TERRITORY. IN THE SAME YEAR THE COMPANY MOVED TO A WOODEN HOUSE WITH ONLY 200M² OF AREA AND THREE EMPLOYEES.

1969 - THE MAJORITY OF THE COMPANY'S CAPITAL IS NEGOTIATED WITH A GROUP OF PEOPLE, WHO HAD GIVEN A NEW ROUTE TO THE COMPANY, TRANSFORMING IT INTO A METALLURGIC - CALLED METALÚRGICA SOPRANO LTDA. THE COMPANY STARTED TO MANUFACTURE WINDOWS AND GATES HARDWARE AND ACCESSORIES FOR THE FURNITURE INDUSTRY. FROM THIS YEAR SOPRANO BEGAN TO OFFER SCHOLARSHIP TO ITS EMPLOYEES.

1972 - THE COMPANY INITIATED THE CONSTRUCTION OF A NEW PLANT WITH 1200M², IN A LAND DONATED BY THE LOCAL GOVERNMENT OF FARROUPILHA CITY. SOPRANO WAS THE FIRST COMPANY TO MOVE IN THE NEW INDUSTRIAL DISTRICT. IN JUNE, OF THE SAME YEAR, SOPRANO MOVED TO ITS NEW HEADQUARTERS AT THE INDUSTRIAL DISTRICT.

1973 - SOPRANO ENTERED IN TWO NEW BUSINESS SEGMENTS: ELECTRICAL MATERIAL MARKET - WITH CIRCUIT BREAKERS, INITIALLY IMPORTED OF ARGENTINA AND UNITED STATES AND POLYESTER FILMS MARKET, USED IN THE INSULATION OF ELECTRIC ENGINES. 1977 - IN THIS YEAR IS CREATED THE HOLDING SOPRANO ADMINISTRAÇÕES E PARTICIPAÇÕES S.A.

1979 - FROM A JOINT VENTURE WITH THE NORTH AMERICAN COMPANY GOULD - MANUFACTURERS OF ITE CIRCUIT BREAKERS, SOPRANO ABSORBS MANUFACTURE TECHNOLOGY AND PASSES TO PRODUCE ITS OWN CIRCUIT BREAKERS. ALSO, IN THIS YEAR SOPRANO ADMINISTRAÇÕES E PARTICIPAÇÕES S.A. ACQUIRED THE SHAREHOLDING MAJORITY OF A NEW COMPANY CALLED CORAL EQUIPAMENTOS HIDRÁULICOS LTDA- A MANUFACTURER OF HYDRAULIC EQUIPMENTS FOR THE TRUCK INDUSTRY.

1981 - LOOKING FOR NEW CHALLENGES ON THE CONSTRUCTION BUSINESS SEGMENT, SOPRANO BEGAN THE MANUFACTURE OF DOOR LOCKS.

1986 - PIONEER IN THE IMPLANTATION OF A RESULTS PARTICIPATION SYSTEM, SOPRANO INITIATED IN THIS YEAR THE PROGRAM OF PARTICIPATION IN RESULTS-PPR.

1992 - SOPRANO INCORPORATED THE COMPANY CORAL EQUIPAMENTOS HIDRÁULICOS LTDA AND FORTIFIED ITS PRESENCE AT THE AUTOMOTIVE MARKET WITH THE INDUSTRIALIZATION OF CYLINDERS AND HYDRAULIC BOMBS AND OTHER COMPONENTS.

1995 - DETERMINED TO BETTER SUPPORT THE FURNITURE INDUSTRY THE COMPANY CREATED A NEW STRATIGICAL BUSINESS UNIT: FURNITURE ACCESSORIES BUSINESS UNIT.

1997 - WITH THE ASCENDING GROWTH OF HOUSE WARE UTILITIES SEGMENT, SOPRANO STARTED TO COMMERCIALIZE PRODUCT AS PLASTIC MUGS, THERMAL BOTTLES. IN THIS YEAR SOPRANO RECEIVED ISO 9001 CERTIFICATION.

1998 - A NEW BUSINESS UNIT IS CREATED: FILMS AND INSULATIONS BUSINESS UNIT, WHICH BECAME SPECIALIZED IN THE COMMERCIALIZATION OF FILMS FOR ELECTRIC INSULATION, GRAPHICAL AND PACKING USE.

IT WAS ALSO IN THIS YEAR THAT THE HOUSE WARE BUSINESS UNIT INTENSIFIED ITS PRESENCE IN THE MARKET WITH THE ACQUISITION OF A NEW COMPANY CALLED TEKCOR UTILIDADES DOMÉSTICAS- ONE OF THE LEADER COMPANIES IN THE THERMAL PLATES MARKET.

WITH THE LAUNCHING OF NEW DOOR LOCK- CALLED METALIX-SOPRANO RECEIVED A TECHNOLOGICAL INNOVATION PRIZE FROM FEDERATION AND CENTER OF INDUSTRIES FOR THE STATE OF RIO GRANDE DO SUL. THE PRIZE WAS JUSTIFIED BY THE INNOVATIVE FEATURES OF THE PRODUCT AND ITS BENEFITS TO THE CONSUMER. THE METALIX DOOR LOCKS HAD BEEN DEVELOPED IN THERMOPLASTIC MATERIAL THAT GUARANTEES HIGHER PERFORMANCE AND DURABILITY OF THE PRODUCT. ITS INNOVATIVE COMPOSITION ALLOWED THE REUSED OF ITS RUBBISH, THUS PRESERVING THE ENVIRONMENT.

BY IMPLEMENTING A LOGISTIC THAT WOULD BETTER SUPPORT THE NATIONAL MARKET, SOPRANO OPENED A DISTRIBUTION CENTER AND MANUFACTURE PLANT IN THE NORTHEAST REGION OF BRAZIL- IN THE CITY OF ESCADA LOCATED IN PERNAMBUCO STATE.

1999 - IN THIS YEAR SOPRANO CREATED TWO MORE BUSINESS UNITS: RESINS AND METALS UNIT - DEDICATED TO IMPORT AND COMMERCIALIZE THERMOPLASTIC RESINS AND METALS FOR GALVANIC PLATING AND SPECIAL HARDWARE UNIT - WITH STARTED TO MANUFACTURE SPECIALS HARDWARE FOR UP AND ALUMINUM WINDOWS AND BLINDS AND GLASSES ACCESSORIES.

2000 - SOPRANO ACQUIRED THE PLASTIC INDUSTRY PNS PLÁSTICOS. PNS WAS ONE OF THE PIONEERING COMPANIES TO BE SPECIALIZED IN THE MANUFACTURE OF HOUSE WARE UTILITIES, AND THE FIRST ONE TO LAUNCH THE THERMAL PLATE.

SOPRANO RECEIVED THE QS 9000 CERTIFICATION, QUALIFYING EVEN MORE THE HYDRAULIC EQUIPMENTS BUSINESS UNIT ON THE PRODUCTION OF HYDRAULIC CYLINDERS AND OTHER EQUIPMENTS FOR THE HEAVY AUTOMOTIVE INDUSTRY.

2001 - WORRIED ABOUT THE SOCIAL SITUATION OF THE LOCAL COMMUNITY, THE SOPRANO INITIATES A SOCIAL PROJECT CALLED "YOUNG KIDS AT THE LUNCH ". THE PROJECT CONSISTS OF BRINGING GROUPS OF CARELESS CHILDREN TO DAILY MAKE A HEALTHFUL MEAL ON THE COMPANY'S RESTAURANT. MOREOVER, DURING THE 15 DAYS THAT EACH GROUP FREQUENTS THE COMPANY, THE CHILDREN RECEIVE ORIENTATION FROM EDUCATORS AND PSYCHOLOGISTS, HAVING ALSO THE OPPORTUNITY TO BETTER KNOW HOW A COMPANY WORKS.

2002 - SOPRANO FORTIFIES EVEN MORE ITS PRESENCE IN THE NORTHEAST REGION OF BRAZIL AND STARTED THE CONSTRUCTION OF A NEW PLANT FOR ITS NORTHEAST MANUFACTURER AND DISTRIBUTION CENTER. WITH A TOTAL AREA OF 13500M², THE PLANT HAS BEEN PROJECTED TO OFFER NATURAL THERMAL COMFORT THROUGH THE MAXIMUM EXPLOITATION OF THE NATURAL LIGHT. IT IS AN ADEQUATE PROJECT TO THE CLIMATE NORTHEASTERN AND THE PRINCIPLES OF ENERGY ECONOMY.

TODAY - CURRENTLY THE SOPRANO GROUP HAS EIGHT STRATEGIC BUSINESS UNITS ACTING IN THE FOLLOWING BUSINESS MARKETS: ACCESSORIES FOR THE FURNITURE INDUSTRY; HYDRAULIC EQUIPMENTS FOR THE TRUCK INDUSTRY; DOOR LOCKS, HARDWARE AND PADLOCKS FOR THE CONSTRUCTION INDUSTRY; ELECTRIC MATERIALS AS CIRCUIT BREAKERS; HOUSE WARE UTILITIES AND PROMOTIONAL ITEMS; FILMS AND INSULATIONS FOR THE GRAPHIC USER AND ELECTRICAL ENGINE ISOLATION; THERMOPLASTIC RESINS FOR INJECTION AND METALS FOR GALVANIC PLATING; AND SPECIAL HARDWARE FOR UPVC AND ALUMINUM WINDOWS.

SINCE ITS FOUNDATION, SOPRANO HAS GROWN RAPIDLY AND HAS TURNED INTO A WORLD-LEADING MANUFACTURER, EXPORTING ITS PRODUCTS TO THE MOST DIVERSE REGIONS OF EUROPE, AFRICA AND AMERICAS. AS MAIN INTERNATIONAL CUSTOMERS ARE DISTINGUISHED COUNTRIES AS USA, BOLIVIA, MEXICO, PERU, URUGUAY, VENEZUELA, CHILE, GERMANY AND SOUTH AFRICA.

COUNTING WITH MORE THAN 1,500 EMPLOYEES SOPRANO HAS ITS MANUFACTURING ORGANIZATION DIVIDED IN: NEW MOULDS AND DIES, THERMOPLASTIC PARTS AND ASSEMBLING AND METALLIC PARTS AND GALVANIC PLATING. THE COMPANY ALSO OPERATES WITH THREE DISTRIBUTION CENTER STRATEGICALLY LOCATED AT SOUTH REGION OF BRAZIL- IN THE CITIES OF CAXIAS DO SUL AND FARROUPILHA AT RIO GRANDE DO SUL STATE- ; SOUTHEAST REGION- CITY OF CAMANDUCAIA AT MINAS GERAIS STATE- AND NORTHEAST REGION - CITY OF ESCADA AT PERNAMBUCO STATE.

DIRECTORS:

GUSTAVO MIOTTI: BRAZILIAN, MARRIED, ENTREPRENEUR, HOLDER OF DOCUMENTS RG 2038198814 SSP/RS AND CPF 551.308.950-53, RESIDENTIAL ADDRESS AT AVENIDA RIO BRANCO, 1530, APTO 61, RIO BRANCO, ZIP CODE 95096-000, CAXIAS DO SUL/RS;

LEONARDO MIOTTI: BRAZILIAN, MARRIED, ENTREPRENEUR, HOLDER OF DOCUMENTS RG 4038198828 SSP/RS AND CPF 919.096.000-91, RESIDENTIAL ADDRESS AT RUA JUSCELINO KUBITSCHEK DE OLIVEIRA, 450, BAIRRO DESCIO RIZZO, ZIP CODE 95110-500, CAXIAS DO SUL/RS.

FURTHER DETAILS ABOUT THE SUBJECT'S HISTORY ARE SO FAR NOT KNOWN.

PUBLIC INFORMATION:

LAWSUITS:
	DATE:	COURT OF LAW:

1

STATE LAWSUIT

14/04/14

VARA DE DF-BRASÍLIA

FINANCIAL INFORMATION

GENERAL BALANCE SHEETS AS OF 31/12/2013, 31/12/2012 AND 31/12/2011.

( FIGURES ARE IN THOUSANDS OF REAIS ).

ASSETS
CURRENT:	31/12/2013	31/12/2012	31/12/2011
CASH AND BANKS	34.479	16.137	833
INVESTMENTS	13.349
CLIENTS	54.264	45.133	26.178
INVENTORY	58.486	58.548	64.356
RECOVERABLE TAXES	4.763	9.356	6.037
ADVANCE TO SUPPLIERS		8.425	2.893
OTHER	787	1.112	624
	----------------	----------------	----------------
TOTAL CURRENT ASSETS	166.128	138.711	100.921

LONG-TERM RECEIVABLES:
JUDICIAL DEPOSITS	1.070	1.848	1.721
INTERCOMPANY CREDITS	10.217	10.038	75
RECOVERABLE TAXES	788	812	679
DEFERRED TAXES			29.546
	----------------	----------------	----------------
TOTAL LONG-TERM RECEIVABLES	12.075	12.698	32.021

FIXED ASSETS:
FIXED ASSETS	125.474	117.068	122.170
INTANGIBLE	420	408	162
	----------------	----------------	----------------
TOTAL FIXED ASSETS	125.894	117.476	122.332
	================	================	================
TOTAL ASSETS	304.097	268.885	255.274

LIABILITIES:
CURRENT:	31/12/2013	31/12/2012	31/12/2011
SUPPLIERS	9.211	9.036	11.447
LOANS AND FINANCING	8.641	8.556	10.276
TAX LIABILITIES	4.028	1.648	669
ADVANCE FROM CLIENTS	1.556	865	584
SOCIAL OBLIGATIONS	7.261	5.758	6.197
INSTALLMENTS TAXES PAYABLE	2.970	3.192	3.192
OTHER DEBTS	1.078	1.755	780
	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	34.745	30.810	33.145

LONG TERM LIABILITIES:
LOANS AND FINANCING	25.542	22.425	4.091
CONTROLLED COMPANIES		18
INSTALLMENTS TAXES PAYABLE	35.438	36.528	45.189
DEFERRED TAXES			30.155
PROVISION FOR CONTINGENCIES	12.377	13.491	41.192
OTHER	632
	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	73.989	72.462	120.627

NET EQUITY:
SHARE CAPITAL	173.468	173.451	123.189
ACCRUED PROFIT (LOSS)	-45.726	-64.903	-80.222
SUBVENTION RESERVES	11.968
OTHER COMPREHENSIVE INCOME	55.653	57.065	58.535
	----------------	----------------	----------------
TOTAL NET EQUITY	195.363	165.613	101.502
	================	================	================
TOTAL LIABILITIES	304.097	268.885	255.274

PROFIT AND LOSS ACCOUNTS AS OF 31/12/2013, 31/12/2012 AND 31/12/2011.

( FIGURES ARE IN THOUSANDS OF REAIS ).

	31/12/2013	31/12/2012	31/12/2011
NET SALES	249.719	199.377	196.226
(-) COST OF SOLD GOODS	172.776	151.792	164.799
	----------------	----------------	----------------
GROSS PROFIT	76.943	47.585	31.427
OPERATING REVENUE (EXPENSE)	-37.311	-22.217	-51.079
FINANCIAL REVENUE(EXPENSE)	-3.135	11.379	-16.889
	----------------	----------------	----------------
OPERATIONAL PROFIT (LOSS)	36.497	36.747	-36.541
CONTRIBUTION/INCOME TAX	-6.764	-11.043	10.149
	----------------	----------------	----------------
NET PROFIT (LOSS)	29.733	25.704	-26.392

RATIOS:

31/12/2013

31/12/2012

31/12/2011

QUICK RATIO	3,10		2,60		1,10
CURRENT RATIO	4,78		4,50		3,04
ACCOUNTS RECEIVABLE TURNOVER	4,60	TIMES	4,42	TIMES	7,50	TIMES
DAYS' SALES IN RECEIVABLES	78,23	DAYS	81,49	DAYS	48,03	DAYS
INVENTORY TURNOVER	2,95	TIMES	2,59	TIMES	2,56	TIMES
ACCOUNTS PAYABLE PERIOD	19,19	DAYS	21,43	DAYS	25,01	DAYS
RETURN ON ASSETS	,82	TIMES	,74	TIMES	,77	TIMES
SALES TURNOVER ON NET EQUITY	1,28	TIMES	1,20	TIMES	1,93	TIMES
NET WORTH TIE-UP	,64		,71		1,20
INDEBTEDNESS	,56		,62		1,52
EQUITY RATIO	64,24	%	61,59	%	39,76	%
WORKING CAPITAL RATIO	378,14	%	350,21	%	204,48	%
GENERAL SOLVENCY	2,80		2,60		1,66
RETURN ON NET EQUITY	15,22	%	15,52	%	-26,00	%
RETURN ON SALES (PROFIT MARGIN)	11,91	%	12,89	%	-13,45	%
GROSS PROFIT MARGIN	30,81	%	23,87	%	16,02	%
OPERATIONAL RESULT	14,62	%	18,43	%	-18,62	%
SALES TURNOVER ON LIABILITIES	7,19	TIMES	6,47	TIMES	5,92	TIMES
FOREIGN CURRENCY ON ASSETS
FOREIGN CURRENCY ON LIABILITIES

EXCHANGE RATE:
US$ 1,00 = R$ 2,21	- OFFICIAL RATE ON 14/05/2014
US$ 1,00 = R$ 2,34	- OFFICIAL RATE ON 31/12/2013
US$ 1,00 = R$ 2,04	- OFFICIAL RATE ON 31/12/2012
US$ 1,00 = R$ 1,87	- OFFICIAL RATE ON 31/12/2011

COMMENTS ON THE FINANCIAL INFORMATION:

FOLLOWS ATTACHED WORKSHEET WITH MAIN FINANCIAL RATIOS.

THE FIGURES AVAILABLE SHOW GOOD A FAIR FINANCIAL STANDING. IT HAS HIGH LIQUIDITY RATIOS AND IMPORTANT WORKING CAPITAL, AS WELL AS ACCEPTABLE LEVEL OF INDEBTEDNESS. IT ALSO SHOWS GROWING SALES AND POSTED PROFIT.

REAL ESTATE:

NOT AVAILABLE

VEHICLES:

NOT AVAILABLE

MACHINES:

NOT AVAILABLE

INSURANCE

NOT AVAILABLE

BANKING REFERENCES

	BRANCH/PHONE:	CITY:
BANCO BANRISUL S/A	215	FARROUPILHA/RS
BANCO BRADESCO S/A	1775-2	FARROUPILHA/RS
BANCO DO BRASIL S/A	0486-3	FARROUPILHA/RS
BANCO ITAÚ S/A	1438-4	FARROUPILHA/RS
BANCO SAFRA S/A	039	FARROUPILHA/RS

REMARKS: IN BRAZIL THE BANKS ARE PROHIBITED BY LAW TO PROVIDE INFORMATION OR ANY KIND OF COMMENTS ABOUT THEIR CLIENTS. DUE TO THIS LAW PROHIBITION WE ARE UNABLE TO PROVIDE ANY BANKING DETAILS.

ACCORDING TO THE CENTRAL BANK OF BRAZIL OFFICIAL REPORT, THE COMPANY HAS NO RETURNED CHECKS UP TO DATE. (IN THE TERMS OF "CIRCULAR 1682 BRAZILIAN CENTRAL BANK").

ACTIVITIES COMMENTS

SUBJECT IS ENGAGED IN MANUFACTURE OF OTHER FABRICATED METAL PRODUCTS; METALWORKING SERVICE ACTIVITIES.

PRODUCT LINE:

FURNITURE ACCESSORIES, CASING INDUSTRIES, HYDRAULIC EQUIPMENTS AND ROAD LINE UNIT, VALVES, FILMS, RESINS AND METAL, ELECTRIC MATERIAL, CIVIL CONSTRUCTION TRADE, UTILITARY ETC.

IMPORT AND EXPORT:

IMPORTS FROM:

ARGENTINA, UNITED STATES, CHINA, CHILE, EL SALVADOR, MEXICO, PERU, KOREA, PARAGUAY, PANAMA AND URUGUAY.

EXPORTS TO:

MEXICO, ARGENTINA, CHILE, CHINA, UNITED STATES, PANAMA, PARAGUAY, URUGUAY AND SPAIN.

MAIN CLIENTS:
DOMESTIC CLIENTS:	CITY:
ACEBLAS IND METALURGICAS	BENTO GONÇALVES/RS
ALIANÇA PRODUTOS SIDERURGICOS	MONSENHOR PAULO/MG
BIGFER IND COM FERRAGENS LTDA	FARROUPILHA/RS
CARREFOUR COM E IND LTDA	SÃO PAULO/SP
DIFERPAN COM IMP EXP LTDA	PORTO ALEGRE/RS
EQUITRAN EQUIP P/TRANSPORTES	EXTREMA/MG
INDUSTRIAS FACCHINI LTDA	SÃO JOSÉ RO DIO PRETO/SP
IRMÃOS DOMARCO LTDA	SÃO JOSÉ DO RIO PRETO/SP
IRMÃOS THONNINGS & CIA	CARAZINHO/RS
IVO PAULO SUSIN	CAXIAS DO SUL/RS
KIRCHER HILLMANN ATACADO	PORTO ALEGRE/RS
KOHLBACH MOTORES LTDA	JARAGUÁ DO SUL/SC
MECAL IND E COM LTDA	CASCA/RS
MEPAR MERCADO DE PARAFUSOS	CHAPECÓ/SC
METALPAN IND COM LTDA	MIRASSOL/SP
RANDON S/A IMPLEMENTOS E SISTEMAS	CAXIAS DO SUL/RS
RANDON VEICULOS LTDA	CAXIAS DO SUL/RS
TUPAN CONTR IND E COM	SERRA TALHADA/PE
VEGUI DISTRIB MAT ELETR LTDA	PORTO ALEGRE/RS

FOREIGN CLIENTS:	COUNTRY:
ABS	PARAGUAY
ATLANTIC	PARAGUAY
BRANOR S/A	URUGUAY
DEA IMPORT	PARAGUAY
FERRETERIA NIKA	PARAGUAY
INCONEC	CHILE
INDUSTRIAS BACCO	ARGENTINA
INDUSTRIAS BIANCCHI	ARGENTINA
ISAPY S R L	PARAGUAY
METALURGICA VISCAZO	URUGUAY
OSCAR ALBERTO LORESI	ARGENTINA
PACIFIC IMPORT	PARAGUAY
SATECI	PERU

STAFF:

THE COMPANY HAS: 1300 EMPLOYEE(S)

CONCEPT AND FULFILMENT

THE SUBJECT IS AN OLD-ESTABLISHED COMPANY, OPERATING SINCE 1954. SO FAR IT HAS A CLEAR TRADE HISTORY AND NO PAYMENT PROBLEMS ARE NOTED.

THE COMPANY HAS TRADE RELATIONS WITH SEVERAL SUPPLIERS IN BRAZIL. THE SUPPLIERS EXTEND CREDIT FACILITIES TO THE SUBJECT IN TERMS AND AMOUNTS ACCORDING TO THE COMPANY'S NEEDS AND SO FAR NO PAYMENT PROBLEMS ARE NOTED.

THE LAWSUIT REPORTED IS NOT RELATED WITH TRADE DEBT. IT IS RELATED TO TAX DEBT THAT FOR ANY REASON THE COMPANY HAS NOT YET PAID. NEVERTHELESS WE POINT OUT THAT THE SAID LAWSUIT DOES NOT AFFECT THE COMPANY’S TRADE REPUTATION.

MAIN SUPPLIERS:
DOMESTIC SUPPLIERS:	CITY:	PHONE:
ACESITA CIA AÇOS ESPECIAIS ITABIRA	PORTO ALEGRE/RS	51 226-4422
AÇOS FINOS PIRATINI S/A	CAXIAS DO SUL/RS	54 223-1119
ALCOMETAL IND COM IMP EXP	NOVO HAMBURGO/RS	51 587-8787
BAQ INDUSTRIA E COMÉRCIO LTDA	SUZANO/SP	11 4748-4888
CIA PARAIBUNA DE METAIS	SÃO PAULO/SP	11 7604-7569
COMPANHIA MINEIRA DE METAIS	PORTO ALEGRE/RS	51 479-1111
DEGUSSA S/A	GUARULHOS/SP	11 601-1331
MANNESMAN COMERCIAL S/A	PORTO ALEGRE/RS	51 330-8177
MECÂNICA INDL COLAR LTDA	CAXIAS DO SUL/RS	54 213-1188
PANATLANTICA S/A	GRAVATAÍ/SP	51 489-1222
PARKER HANNISINN DO BRASIL LTDA	SÃO PAULO/SP	11 847-1222
ROLAMENTOS SCHAEFLER DO BRASIL S/A	PORTO ALEGRE/RS	51 222-9576
TERMOMECANICA SÃO PAULO S/A	PORTO ALEGRE/RS	51 342-1599
TROMBINI PAPEL E EMBALAGENS S/A	FARROUPILHA/RS	54 268-3266
USIMINAS S/A	PORTO ALEGRE/RS	51 328-1777

FOREIGN SUPPLIERS:	COUNTRY:
BRAININ	MEXICO
CHINA ANHUI	CHINA
CHINA MACHINERY	CHINA
DOE RUN PERU	PERU
GARITEN	TAIWAN
IMPHY	FRANCE
INCO	CANADA
MAB MASELIS	ITALY
MARTAS ENTERPRISE	TAIWAN
MEI KAO	HONG KONG
MITSUBISHI	GERMANY
PETROQ CUYO	ARGENTINA
REPSOL QUÍMICA	SPAIN
WUI KAI	HONG KONG

PAYMENT HISTORY:

12 SUPPLIERS REPORTED PAYMENTS:

TOTAL AMOUNT: R$ 82.699,00

AMOUNT OF INVOICES PAID: 152

TOTAL OF PROMPT PAYMENTS: 86,9%

TOTAL OF DELAYED PAYMENTS: 13,1%

HIGHEST INVOICE: R$ 5.292,00

HIGHEST CREDIT: R$ 5.292,00

OUTSTANDING INVOICES DUE WITHIN THE NEXT 30 DAYS:

---------------------------	SUPPLIERS:	INVOICES:	TOTAL AMOUNT:
DUE WITHIN 30 DAYS	1	1	R$ 966,00

FINAL OPINION

THE SUBJECT IS A WELL-ESTABLISHED COMPANY IN BUSINESS FOR SEVERAL YEARS. UP TO DATE IT HAS GOOD FINANCIAL STANDING BUT A CLEAR TRADE HISTORY AND GOOD PAYMENT BEHAVIOR.

BASED ON THE GENERAL INFORMATION AVAILABLE IT IS BELIEVED THAT GOOD TRADE RELATIONS MAY BE ESTABLISHED. CREDIT FACILITIES MAY BE EXTENDED WITHIN TERMS AND AMOUNTS ADEQUATE TO THE COMPANY'S FINANCIAL STRENGTH.

AN INITIAL CREDIT LIMIT OF US$ 5.000.000,00 MAY BE CONSIDERED. EVEN HIGHER AMOUNTS MAY BE CONSIDERED DEPENDING ON THE BUSINESS BEING ESTABLISHED WITH THE SUBJECT.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 58.74
UK Pound	1	Rs. 98.77
Euro	1	Rs. 80.52

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	DPT

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.