MIRA INFORM REPORT

 

 

Report Date :

26.09.2014

 

IDENTIFICATION DETAILS

 

Name :

MAI S.A.

 

 

Registered Office :

Solis 8250, Argentina, Mar Del Plata Sur (7600), Buenos Aires,

 

 

Country :

Argentina

 

 

Date of Incorporation :

07.01.1976

 

 

Legal Form :

Sociedad Anonima

 

 

Line of Business :

Manufacture of packaging machines, especially teabagging machines.

 

 

No. of Employees :

110

 

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

 

 

 

 

company name and address

 

Order:

MAI S.A.

Address in the order:

SOLIS 8250-MAR DEL PLATA SUR, BUENOS AIRES

ARGENTINA

Legal Name:

MAI S.A.

Trade Name:

MAISA

CUIT:

30-55982694-0

Date Created:

1976

Date Incorporated:

January 7, 1976

Legal Address:

Solis 8250, Argentina, Mar Del Plata Sur (7600), Buenos Aires, Argentina

Operative Address:

Solis 8250, Argentina, Mar Del Plata Sur (7600), Buenos Aires, Argentina

Telephone:

(54 223) 482-1817/5151

Fax:

(54 223) 481-0234

Legal Form:

Sociedad Anonima

Email:

mdp@maisa.com.ar

Registered in:

AGENCIA-SEDE N.2 MAR DEL PLATA AV. INDEPENDENCIA N° 2375/77 7600 BUENOS AIRES, ARGENTINA

Website:

www.maisa.com.ar

Manager:

Guillermo Enrique Mai, Manager

Staff:

110

Activity: SIC Codes:

Machinery Manufacturing Industry

3433 3443

NAICS Codes:

333111 333112

BANKS

 

 

According to Argentinian Central Bank, the company maintains credit lines with the following banks:

BANK

AMOUNT IN AR$

BANCO CREDICOOP COOPERATIVO LIMITADO

837,2

BANCO PATAGONIA S.A.

619,9

BBVA BANCO FRANCES S.A.

446,1

AMERICAN EXPRESS ARGENTINA S.A.

46,3

 

 

 

 

 

 

 

 

 

 

 

 

 

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 rejected checks for the company.

 

 

HISTORY

 

 

MAI S.A. was started in 1976 by Pablo Enrique Mai -- an operation technician who worked on some of the very first models for teabagging machines.

With his company's research, Mai pioneered the many mechanical designs for industrial equipment manufacturing, laying down the groundwork for an industry with then little movement but which held much promise.

 

 

MAIN ACTIVITY

 

 

MAI S.A. is a company dedicated to the manufacture of packaging machines, especially teabagging machines.

It has a team of over 100 professionals, such as engineers and technicians.

ISO and CE Standards

Since 2002, MAI SA has certified its quality management and environment system under ISO 9001 and ISO 14001.

Also by the same date, MAI SA began to manufacture its machines according to the quality and safety standards required by European standards CE.

Products/Services:

Product Line:
Packers which make bags naked and with different types of outer envelopes make production. Different stacking options and cartoning systems and automate the complete fully.
Accessories
Technical Support

Trademarks:

MAISA

 

Sales:

Wholesale

 

Clients:

AGRICOLA HIMALAYA S.A.
Colombia

VIAMCO, INC., 
USA

TOTAL PACK SAC
Peru

TRIPLE LEAF TEA INC.
USA

Competitors:

Envaflex
Doping Maquinaria Automatización
CERCOR SG

Suppliers

Luis A. Martínez y Asociados
Santiago del Estero 2489 PB A
Mar del Plata (0223) 495-9009

ALSINA Comercial
Av. Jacinto Peralta Ramos 2242
Mar del Plata

Operations Area:

National & International

 

The company imports from:

China

 

The company exports to

USA, Europe, Asia, India, Latin America

 

The company employs

110 people

 

Payments:

Regular-Made on a 30 day basis

 

 

LOCATION

 

 

Headquarters  :

 

Solis 8250, Argentina, Mar Del Plata Sur (7600), Buenos Aires, Argentina

 

Branches:

Ofice in Buenos Aires:
Agrelo 3323
C1224ABE Buenos Aires
Argentina
Tel. (54 11) 4957-4682
Fax (54 11) 4956-1167
baires@maisa.com.ar

 

Business Industry:

The Argentina metallurgical industry consists mainly of small and medium-owned firms with significant experience in the market and shopping whose structure is highly concentrated in a few supplier firms.

In the last five years its main strategies have combined the privileged to the domestic market with the implementation of major bets on export activity, with the majority at an embryonic stage of internationalization but constitute a not insignificant for work on this critical mass.

 

 

 

 

 

 

 

 

 

GROUP STRUCTURE AND SUBSIDIARY COMPANIES

 

 

 

Listed at the stock exchange:

NO

 

Capital:

 

USD 3 000 000 (estimated)

Shareholders %:

This is a private company.

The main shareholder is Enrique Mai.

The company was founded by his father, Guillermo Mai, who died and left the company to his son.

Management:

Enrique Mai, Manager

 

Ubaldo Schwerdt, Electronics Manager

 

 

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

7 500 000

The cash flow is

Normal

 

 

EXPORTS-ANUAL FOB

 

2009

7.890.687

2010

7.735.262

2011

9.121.219

2012

8.725.218

2013

7.134.902

2014

2.589.265 (up to now)

 

 

LEGAL FILINGS

 

 

 

There are no legal/criminal connected to the company.

 

 

 

SUMMARY

 

 

MAI S.A. is a company with 38 years of experience in the market, lcoated in the city of Mar del Plata, Buenos Aires.

The company was founded in 0976 by Pablo Mai, a technician who worked on a teabagging machine and after his death, the comapny has been managed by his son.

The company company provides teabagging machines worldwide, it owns specifici models called MAI Tea Machines which are sold in different countries.

It has a medium sized structure with 110 employees and there are no negative founded.

The credit line suggested is provided considering the company's income, experience and the current situation of exports in 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- Total Bank Debt of AR$ 1.949.500,00

 

PAYMENTS

Regular-Good payment Behaviour

 

CASH FLOW

Normal

 

 

 

 

 

ENTERVIEW

 

 

NAME

 

Ubaldo Schwerdt

 

POSITION

Electronics

 

COMMENTS

The person contacted confirmed activity, he refused to confirm any information about the company.

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.02

UK Pound

1

Rs.99.42

Euro

1

Rs.77.84

 

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.