MIRA INFORM REPORT

Report Date :

17.09.2014

IDENTIFICATION DETAILS

Name :	AUSTRALTEX SA
Registered Office :	Combate De Montevideo 1348 (9420) Rio Tierra Del Fuego,
Country :	Argentina
Date of Incorporation :	18.08.1981
Legal Form :	Private Company
Line of Business :	Manufacturer of Woolen Clothing.
No. of Employees	260

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Argentina	B1	B1

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

ARGENTINA ECONOMIC OVERVIEW

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits. The government expanded state intervention in the economy throughout 2012. In May 2012 the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and pre-approval of all imports. In July 2012 the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. During 2013, the government continued with a mix expansionary fiscal and monetary policies and foreign exchange and imports controls to limit the drain in Central Bank foreign reserves, which nevertheless dropped US $12 billion during the year. GDP grew 3% and inflation remained steady at 25%, according to private estimates. In October 2013, the government settled long-standing international arbitral disputes (including with three US firms) dating back to before and following the 2002 Argentine financial crisis. In early 2014, the government embraced a series of more orthodox economic policies. It devalued the peso 20%, substantially tightened monetary and fiscal policies, and took measures to mend ties with the international financial community, including: engaging with the IMF to improve its economic data reporting, reaching a compensation agreement with Repsol for the expropriation of YPF, and presenting a proposal to pay its arrears to the Paris Club

Source : CIA

Company name and address

Order:	AUSTRALTEX SA
Address in the order:	Combate De Montevideo 1348 (9420) Rio Tierra Del Fuego, Argentina

Legal Name:	AUSTRALTEX S.A.
Trade Name:	AUSTRALTEX
RFC:	30-58739747-8
Date Created:	1981
Date Incorporated:	August 18, 1981
Legal Address:	Combate De Montevideo 1348, Rio Grande (9420), Tierra Del Fuego, Argentina
Operative Address:	Combate De Montevideo 1348, Rio Grande (9420), Tierra Del Fuego, Argentina
Telephone:	02964 42-5440
Fax:	02964 42-5440
Legal Form:	Sociedad Anónima
Email:	info@australtex.com.ar
Registered in:	DISTRITO RIO GRANDE ESPORA N° 523 9420 TIERRA DEL FUEGO
Website:	www.australtex.com.ar
Manager:	Carlos Aiello
Staff:	260
Activity:	Woolen Clothing - Manufacturers
SIC Codes:	2251
NAICS Codes:	315110

BANKS

	The company currently maintains open credits with the following institutions:
BANK	AMOUNT IN AR$
BANCO INDUSTRIAL	33722,9
BANCO MACRO S.A.	29124,4
BANCO SUPERVIELLE S.A.	21011,9
BANCO ITAU ARGENTINA S.A.	10484,5
BANCO DE SERVICIOS Y TRANSACCIONES S.A.	10028,3
INDUSTRIAL AND COMMERCIAL BANK OF CHINA	7319,9
BANCO DE LA CIUDAD DE BUENOS AIRES	4046,3
METROPOLIS COMPAÑIA FINANCIERA S.A.	2667,8
BANCO FINANSUR S.A.	1442,3
BANCO MERIDIAN S.A.	995,1
AMERICAN EXPRESS ARGENTINA S.A.	28,3
	According to the classification of banking relations of Argentina, the company operates with the following level: 1. This is the highest classification in the system. It means that the company/person is fulfilling correctly its current Credit obligations. This is therefore positive information that will enable the granting of any line of credit.
	There are no of rejected checks for this client

HISTORY

	The company started business in 1981. Press Release: 2008 Workers rejected preliminary agreement with Australtex Workers at the firm Australtex rejected the draft agreement signed by union leaders and employers, which was signed in the presence of government officials, legislators and councilors. In the morning the end of the conflict was announced, but during the afternoon the assembly rejected the offer and continue the crackdown. Anyway clarified that the parties continue negotiations, trying to solve the conflict.
MAIN ACTIVITY
	Australtex S.A. is a company with two factories in Rio Grande, Tierra del Fuego: A Weaving point factory and a Drying factory. Imported inputs are weaving cotton yarn, polyester or blends brought from Southeast Asia and Brazil. The raw fabric yarn (undyed) is woven and sent to Buenos Aires to pursue other production processes. In the dry cleaners, imported inputs are raw knits (polar) or woven fabrics (corduroy, batista - shirting - jean, etc) that are dyed before being delivered directly to customers. Production levels: 950,000 kg. knitted and 1,000,000 mts. of woven fabrics per month.
Products/Services:	Severals "BATISTA" FOR SHIRTS LAB COAT/WHITE COAT CORDUROY SARGE Co. 100% 6/8 Onz. POLAR FLEECE Mod. Pe. 100% CREEPE CHIFFON CREPE
Trademarks:	AUSTRALTEX
Sales:	Wholesale
Clients:	Distributors Local clothes stores Clothes manufactures
Competitors:	BADISUR S.R.L. CORDONSED S.A CORDONSED S.A.
Suppliers	ATLANTIC YARNS INC. 2600 MATHESON BLVD. EAST MISSISSAUGA, ON, L4W 4J1 ONTARIO, CANADA. Latin Eco S.A Carlos Pellegrini 961 Ciudad Autónoma de Buenos Aires Argentina AMIEN S.A. Río Gallegos-Santa Cruz Argentina Bertazza Nicolini Corti y Asociados S.A. Hipólito Yrigoyen 1628 4º piso C1089AAF - C.A.B.A. A & L Equipamientos Av. Regimiento de Patricios 858 PB Of. A (C1265AEN) Buenos Aires – Argentina
Operations Area:	National
The company imports from:	Southeast Asia Brazil Canada Imported products: - Cotton Yarn; - Chemicals; - Packing material; - Materials and spare hardware.
The company does not export
The company employs	260 employees
Payments:	made on a 60 days basis - monitored over the last 12 months
Trade References:	AMIEN S.A. Río Gallegos-Santa Cruz Argentina The person contacted refused to confirm information for confidential reasons.
LOCATION
Headquarters :	Combate De Montevideo 1348, Rio Grande (9420), Tierra Del Fuego, Argentina
Size:	14450 M2
Branches:	Libertador General San Martín 1370 B1650HWL General San Martín, Provincia de Buenos Aires Phone: (011) 4754-9450, 4754-9540
Business Industry:	The major sheep-producing area in Argentina is the Patagonia region in the south where there is around 10.5 million sheep, of which 75 per cent are Merino. But the area suffered a major drought in 2007 and 2008 that reversed some of these achievements. Lamb production in the area was strongly influenced by the harsh climate of the region and structural limitations and as a result led to this industry, which was complementary to the wool industry, being relegated. In regards to wool production, ewe greasy fleece weights were around 3.5kg-4 kg, clean yield was 60pc and fibre diameter was 20.3 microns. Stocking rates vary from 0.5 sheep a hectare with the best areas located in the more humid parts of the south and west to 0.125 sheep a hectare in the dry central Patagonia.
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Capital:	AR$ 1 000 000 (estimated)
Shareholders %:	This is a private company. The capital would be divided into shares owned by workes, the below mentioned company and others. Ghemi S.A 47,5 %
Management:	Carlos Aiello, Manager Jorge Leone, Manager Adriana Galle, International Sales Ricardo Marino, International Sales
Subsidiaries:	The company does not have subsidiaries

FINANCIAL INFORMATION

	This is a private company which does not make its financial figures public. The information mentioned below has been provided by our outside sources.
Currency	DATE
ARS	2013
Turnover	80,000,000
Bank liabilities	120,871,7
The cash flow is	Normal
Currency	DATE
ARS	2012
Turnover	95,200,000
Operating Income	5,400,000
Net Income	3,900,000
Net worth	19,000,000
Liabilities	18
The cash flow is	Good
Currency	DATE
ARS	2011
Turnover	94,010,000
Bank liabilities	21,679,300
The cash flow is	Normal
LEGAL FILINGS
	LEASING CONTRACT Expte. No. 1540-1511 - "Trejo, Luis Alberto and Other c / s and another Australtex SA / Damages "- STJ OF TIERRA DEL FUEGO -. 08/02/2012 On lease. The Dial, 30/3/2012. Parties: "GALLE ANUNCIACION ADRIANA C / AUSTRALTEX SA AND OTHERS S / DISMISSAL " Date: Buenos Aires, 22/12/2010 Matter: Labour
SUMMARY
	Australtex S.A. is an Argentinian factory providing wool cloth weaving and drying services. The company has a big sized structure and is located within a National Working Park, together with other important factories. The company imports mainly from Asia and India raw materials for then manufacture within the country. It has gone thorugh a labour crisis in 2008, with several strikes organized by workers. The company has a good payment behavious and maintains several credit lines with national banks. Its current total debts are for AR$ 120.871,70. The company is well established and has more than 30 years of experience in the market. However, it is important to consider that in the last years Argentinian local production has decreased in comparison with some years ago and demand has been affected by this situation and is lower
RISK INFORMATION
	Since July 30th, Argentina entered into a Selective Default. The country failed to accomplish payment to the holdouts but continues to meet other payment obligations. The country is not following the considerations made by the US Supreme Court to pay the holdouts of its debt restructuration process (2005 and 2010). The parts had the opportunity to settle an agreement with the help of a facilitator appointed by the NY Count in which the case was handled in the first place. The period of grace began in June 30th, and was accomplished in July 30th, with no positive results. The country expects to achieve an agreement with the holdouts after December 2014. That is when the RUFO clause is expired. The expiration of Rights Upon Future Offers (RUFO) will exclude the bondholders from the preceding restructuring processes (2005-2010), from claiming a better agreement, should the country had accomplished with the holdouts. Restriction systems for the purchase of foreign currency and restrainement of international trade. Inflation. Possible economic recession for the second half of the year.
DEBTS	Controlled
PAYMENTS	made on a 60 days basis - monitored over the last 12 months
FLOW OF MONEY	Normal
ENTERVIEW
NAME	Paula
POSITION	Administrative
COMMENTS	The person contacted confirmed address, maangers, activity, imports, staff. She refused to confirm financial information for confidentiality.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.10
UK Pound	1	Rs.99.04
Euro	1	Rs.79.03

INFORMATION DETAILS

Analysis Done by :	SUB
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.