MIRA INFORM REPORT

Report Date :

25.09.2014

IDENTIFICATION DETAILS

Name :	INDUSNOR S.A.
Registered Office :	Ruta 148 Sur Km 754. 1, Km 754. 1, Villa Mercedes (5730), San Luis
Country :	Argentina
Date of Incorporation :	15.09.1986
Legal Form :	Sociedad Anonima
Line of Business :	Textile Manufacturing Industry
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 – 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

LOCATION FACTS
Government	Republic
Currency	100.00 USD = 841.700 ARS
Economic Risk	Medium
STATUTORY
Order:	INDUSNOR S.A.
Address in the order:	Murillo 749, 1414 Ciudad De Buenos Aires
	The address in the order corresponds to its parent company.
Legal Name:	INDUSNOR S.A.
Trade Name:	INDUSNOR
CUIT:	30-61048807-9
Date Created:	1986
Date Incorporated:	September 15, 1986
Legal Address:	Ruta 148 Sur Km 754. 1, Km 754. 1, Villa Mercedes (5730), San Luis, Argentina
Operative Address:	Ruta 148 Sur Km 754. 1, Km 754. 1, Villa Mercedes (5730), San Luis, Argentina
Telephone:	54 2657 42 2459
Fax:	54 2657 42 2459
Legal Form:	Sociedad Anonima
Email:	indus@csi.vmercedes.com.ar
Registered in:	DISTRITO VILLA MERCEDES PEDERNERA N° 509 5730 SAN LUIS
Website:	http://www.coafi.com/
Manager:	Rubén Ariel Weiser, President
Staff:	85
Activity:	Textile Manufacturing Industry
SIC Codes:	2211 2241
NAICS Codes:	313110 313210
BANKS
	According to Argentinian Central Bank, the company maintains credit lines with the following banks:
BANK	AMOUNT
BANCO INDUSTRIAL	29937,90
BANCO CMF S.A.	18147,20
BANCO SUPERVIELLE S.A.	9954,20
BANCO MACRO S.A.	7397,40
INDUSTRIAL AND COMMERCIAL BANK OF CHINA	4856,80
HSBC BANK ARGENTINA S.A.	3857,60
BANCO DE LA PROVINCIA DE BUENOS AIRES	3290,90
AMERICAN EXPRESS ARGENTINA S.A.	192,60
	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.
HISTORY
	The company started business in 1986. It is a subsidiary of COAFI S.A., Argentina.
MAIN ACTIVITY
	INDUSNOR S.A. is dedicated to the manufacture of polyester yarn
Products/Services:	Polyester yarn
Trademarks:	INDUSNOR
Sales:	Wholesale
Clients:	TRANSNATIONAL FOODS INC. Miami, USA Cloth Manufacturers
Competitors:	Hilandería Independencia S.R.L. Grupo Santino, S.A. El Espartano S.A.
Suppliers	XIAMEN XIANGLU CHEMICAL FIBER CO.LT China
Operations Area:	National & International
The company imports from:	China and India
The company exports to	USA
The company employs	85 people
Payments:	Regular-Made on a 30-45 day basis
LOCATION
Headquarters :	Ruta 148 Sur Km 754. 1, Km 754. 1, Villa Mercedes (5730), San Luis, Argentina
Branches:	The company does not have branches
Business Industry:	The Argentinean government has outlined a master plan on strategic industries and the annual rate of growth for the two textile sectors is earmarked at 7.5 % up to 2020. The two branches of industry benefited in the past of the marked devaluation of the ARP, particularly in 2002. These advantages are no longer valid, since the outside value of the currency devaluated a lot less and this is why the government turned to protective actions against imports. Anti-dumping measures are mostly directed against Chinese imports having had a share of 44 % of all apparel imports. A special agreement was concluded with Brazil to limit trade imbalances. Domestic production grew 146 % from 2002 to 2010 and local consumption of fibres increased from 8 to more than 13 kg per capita. In 2011, textile production increased only by 1.3 % and during the first half of 2012 it declined by 1.8 %.
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Capital:	AR$ 3 000 000 (estimated)
Shareholders %:	The company belongs to. COAFI S.A Murillo 749. Buenos Aires, Argentina The group has several plants to make their processes. In "Indusnor" in villa mercedes, industrial complex yarn is produced to supply its weaving and dry.
Management:	Rubén Ariel Weiser, President Edgardo Gómez, Vicepresident Ignacio Wodka, Director
Subsidiaries companies:	The company does not have subsidiaries
FINANCIAL INFORMATION
	This is a private company that does not make its financial statements publish. The following information has been provided by our outside sources.
Currency	USD
Year	2013
Turnover	26 964 000
Net Income	925 000
The cash flow is	Normal
LEGAL FILINGS
	CARRUM DANIEL C/ INDUSNOR S.A. – DEM.LAB.
	Agreement
	There are no adverse filed for the company or its directors.
RISK:	Low
SUMMARY
	INDUSNOR S.A. is a company located in a strategic area within an industrial park in the province of San Luis, Argentina. The company has amedium sized structure with 85 employees and 28 years of experience in the market. The company belongs to COAFI S.A, which uses the plant to provide them with polyester yarn. The company is well established in business and its revenue is quite high for its size. Its debts are quite high, howerver, it maintains a regular payment behaviour according to the Central Bank of Argentina.

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- The company currently maintains a total debt of AR$ 77637,60 with local financial institutions.
PAYMENTS	Regular-Made on a 30-45 day basis
CASH FLOW	Normal
SUGGESTED CREDIT LINE	USD 50 000

ENTERVIEW
NAME	NA
POSITION	Receptionist
COMMENTS	The person contacted transferred our call to the manager but we reached his operator machine. We left a message asking to call us back, but received no calls from him yet.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.03
UK Pound	1	Rs.99.99
Euro	1	Rs.78.37

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	SHG

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.