MIRA INFORM REPORT

Report No. :	335794
Report Date :	08.08.2015

IDENTIFICATION DETAILS

Name :	VOLKSWAGEN DO BRASIL INDÚSTRIA DE VEÍCULOS AUTOMOTORES LTDA
Registered Office :	Estrada Marginal Da Via Anchieta - S/Nº. - Km 23,5, Ala,17 - Bairro Demarchi 09823-990 - São Bernardo Do Campo/Sp
Country :	Brazil
Date of Incorporation :	12.07.1955
Legal Form :	Limited liability company
Line of Business :	Manufacture Of Motor Vehicles
No. of Employee :	15000

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 :	Good
Payment Behaviour :	Regular
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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Brazil	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	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. Since 2008, Brazil became a net external creditor and all three of the major 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. After reaching historic lows of 4.5% in early 2014, the unemployment rate remains low, but is rising. Brazil's traditionally high level of income inequality has declined for each of the last 15 years. GDP growth has slowed since 2011, due to several factors, including: overdependence on exports of raw commodities, low productivity, high operational costs, persistently high inflation, and low levels of investment. Brazil’s fiscal and current account balances have eroded during the past four years as the government attempted to boost economic growth through targeted tax cuts for industry and incentives to spur household consumption. After winning re-election in October 2014 by a historically narrow margin, President Dilma ROUSSEFF appointed a new economic team led by Finance Minister Joaquim LEVY, who introduced a fiscal austerity package intended to restore the primary account surplus to 1.2% of GDP and preserve the country’s investment-grade sovereign credit rating. Brazil seeks to strengthen its workforce and its economy over the long run by imposing local content and technology transfer requirements on foreign businesses, by investing in education through social programs such as Bolsa Familia and the Brazil Science Mobility Program, and by investing in research in the areas of space, nanotechnology, healthcare, and energy.

Source : CIA

Company name

VOLKSWAGEN DO BRASIL INDÚSTRIA DE VEÍCULOS AUTOMOTORES LTDA

ADDRESSES

MAIN ADDRESS:	ESTRADA MARGINAL DA VIA ANCHIETA - S/Nº. - KM 23,5, ALA,17 - BAIRRO DEMARCHI
ZIP CODE/CITY:	09823-990 - SÃO BERNARDO DO CAMPO/SP
PHONE:	11 4347-2355
FAX:	11 4347-5305
WEB SITE:	www.volkswagen.com.br

BRANCHES:
ADDRESS:	RUA VOLKSWAGEN,291 - 9º ANDAR
ZIP CODE/CITY:	04344-020 SÃO PAULO/SP
ADDRESS:	AVENIDA CARLOS PEDROSO DA SILVEIRA,10000
ZIP CODE/CITY:	12043000 TAUBATÉ/SP
CNPJ:	591044220
ADDRESS:	RUA VOLKSWAGEM,100 - RODOVIA PRESIDENTE DUTRA - KM 296
ZIP CODE/CITY:	RESENDE/RJ
ADDRESS:	RODOVIA LUIZ AUGUSTO OLIVEIRA,0 - S/Nº. - SP 215 KM 148,8
ZIP CODE/CITY:	SÃO CARLOS/SP
ADDRESS:	RUA ABIGAIL DO AMARAL CARNEIRO,1 - SALA 302
ZIP CODE/CITY:	ENSEADA DO SUÁ/ES
ADDRESS:	AVENIDA SELMA PARADA,201 - BLOCO 02 - 5º ANDAR
ZIP CODE/CITY:	CAMPINAS/SP
ADDRESS:	RUA SETE DE SETEMBRO,730 - CENTRO HISTÓRICO
ZIP CODE/CITY:	90010-190 PORTO ALEGRE/RS
ADDRESS:	AVENIDA DAS AMÉRICAS,3434 - SALAS 605, 606 E 607 - BLOCO 7 - CENTRO EMP. H. SIMONSE - BARRA DA TIJUCA
ZIP CODE/CITY:	12043000 RIO DE JANEIRO/RJ

LEGAL DATA

MAIN ACTIVITIES:

MANUFACTURE OF MOTOR VEHICLES.

LEGAL FORM:	LIMITED LIABILITY COMPANY
INCORPORATION DATE:	12/07/1955
REGISTER DATE:	12/07/1955
BALANCE SHEET FILING DATE:	31/12
TAX CONTRIBUTOR NUMBER(CNPJ):	59.104.422/0001-50
STATE REGISTER:	EXEMPT
SHARE CAPITAL:	R$ 942.844.310,00
LAST REGISTER OF CAPITAL:	27/09/2007

BOARD OF DIRECTORS:
DAVID CHRISTIAN POWELS	PRESIDENT DIRECTOR
HOLGER KARL WILHELM RUST	DIRECTOR
JOSEF BAUMANN	DIRECTOR
OTTO MANFRED JOOS	DIRECTOR
JUTTA ELLEN DIERKS	DIRECTOR
OSMAIR ANTONIO HERRERIA GARCIA	DIRECTOR
JORGE IGNACIO PORTUGUAL	DIRECTOR

AUTHORIZED USE OF SIGNATURE

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

SHAREHOLDERS / PARTNERS:
VOLKSWAGEN FINANCE LUXEMBURG S.A.	R$ 942.844.309,00
EDUARDO DE AZEVEDO BARROS	R$ 1,00

AFFILIATES / SUBSIDIARIES:

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

BANCO VOLKSWAGEN S/A

VOLKSWAGEN COMÉRCIO E PARTICIPAÇÕES LTDA

CONSÓRCIO NACIONAL VOLKSWAGEN LTDA

FRANCO NORTE AGROINDUSTRIAL S/A

VOLKSWAGEN LOGISTICS PREST. DE SERV. DE LOGÍSTICA E TRAN. LTDA

AUTOVISÃO BRASIL DESENVOLVIMENTO DE NEGÓCIOS LTDA

THYSSENKRUPP MÓDULOS AUTOMOTIVOS DO BRASIL LTDA.

MAB - MÓDULOS AUTOMOTIVOS DO BRASIL LTDA

FUNDAÇÃO VOLKSWAGEN

COMPANY'S BACKGROUND

THE SUBJECT WAS ESTABLISHED ON JULY 12, 1955 AS VOLKSWAGEN DO BRASIL INDÚSTRIA DE AUTOMÓVEIS LTDA. TO BE ENGAGED IN THE SAID LINE OF BUSINESS. ON DECEMBER 11, 1970 IT CHANGED THE REGISTERED NAME TO VOLKSWAGEN DO BRASIL S/A.

ON DECEMBER 29, 1995 THE SUBJECT CHANGED THE LEGAL FORM FROM PRIVATELY HELD CORPORATION TO LIMITED LIABILITY COMPANY AND ADOPTED THE CURRENT REGISTERED NAME.

THE SUBJECT IS A LARGE-SIZED COMPANY AND IS ONE OF THE LEADING COMPANIES IN BRAZIL IN THIS LINE OF BUSINESS.

IT IS A SUBSIDIARY OF VOLKSWAGEN AG FROM GERMANY, ONE OF THE WORLD'S MOST IMPORTANT AUTOMOTIVE COMPANIES.

FORMERLY THE COMPANY OPERATED WITH THE REGISTERED NAME VOLKSWAGEN DO BRASIL LTDA - INDÚSTRIA DE VEÍCULOS AUTOMOTORES. ON MAY 30, 2005 IT CHANGED THE REGISTERED NAME TO VOLKSWAGEN DO BRASIL INDÚSTRIA DE VEÍCULOS AUTOMOTORES LTDA.

PARTNERS / DIRECTORS:

VOLKSWAGEN FINANCE LUXEMBURG S.A.: WITH HEAD OFFICE AT 291, TOUT D'ARLON, L-115, REPRESENTED BY ITS ATTORNEY, MR. EDUARDO AZEVEDO BARROS, AS BELOW MENTIONED.

EDUARDO DE AZEVEDO BARROS, BRAZILIAN, HOLDER OF DOCUMENTS, CPF 471.962.468-53 AND RG 4131703 SSP/SP, WITH ADDRESS AT RUA VOLKSWAGEN, 291, 1º ANDAR, JABAQUARA - SÃO PAULO/SP.

DAVID CHRISTIAN POWELS: SOUTH AFRICAN, MARRIED, ENTREPRENEUR, HOLDER OF DOCUMENTS PASSPORT M00114539, WITH ADDRESS AT ESTRADA MARGINAL DA VIA ANCHIETA, S/N, KM. 23,5 - AL, DEMARCHI, , SAO BERNARDO DO CAMPO - SP, ZIP CODE 09823-901.

HOLGER KARL WILHELM RUST, GERMAN, HOLDER OF DOCUMENTS CPF: 236.020.718-04, RG/RNE: V889192C, WITH ADDRESS AT ESTRADA MARGINAL DA VIA ANCHIETA, S/N, KM. 23,5 - AL, DEMARCHI, , SAO BERNARDO DO CAMPO - SP, ZIP CODE 09823-901.

JOSEF BAUMANN, GERMAN, HOLDER OF DOCUMENTS CPF: 236.450.518-64, RG/RNE: V9402714, WITH ADDRESS AT ESTRADA MARGINAL DA VIA ANCHIETA, S/N, KM. 23,5 - AL, DEMARCH, SAO BERNARDO DO CAMPO - SP, ZIP CODE 09823-901.

JUTTA ELLEN DIERKS, GERMAN, HOLDER OF DOCUMENTS CPF: 234.483.678-00, RG/RNE: V7208651, WITH ADDRESS AT ESTRADA MARGINAL DA VIA ANCHIETA, S/N, KM 23,5 - ALA, DEMARCHI, , SAO BERNARDO DO CAMPO - SP, ZIP CODE 09823-901,

OSMAIR ANTONIO HERRERIA GARCIA, BRAZILIAN, HOLDER OF DOCUMENTS CPF: 047.880.908-56, RG/RNE: 14265587 - SP, WITH ADDRESS AT ESTRADA MARGINAL DA VIA ANCHIETA, S/N, KM. 23,5 - AL, DEMARCHI, SAO BERNARDO DO CAMPO - SP, ZIP CODE 09823-901.

OTTO MANFRED JOOS, GERMAN, HOLDER OF DOCUMENTS CPF: 234.483.718-31, RG/RNE: V712699P, WITH ADDRESS AT ESTRADA MARGINAL DA VIA ANCHIETA, S/N, KM. 23,5 - AL, DEMARCHI, , SAO BERNARDO DO CAMPO - SP, ZIP CODE 09823-901.

JORGE IGNACIO PORTUGUAL, ARGENTINE, HOLDER OF DOCUMENTS CPF: 237.966.818-32, WITH ADDRESS AT ESTRADA MARGINAL DA VIA ANCHIETA, S/N, KM 23,5, DEMARCHI, SAO BERNARDO DO CAMPO - SP, ZIP CODE 09823-901.

FURTHER DETAILS ARE SO FAR NOT KNOWN.

REMARKS:

--------

WHEN CONTACTING THE SUBJECT WE INTERVIEWED MR. CARLOS, CONTROLLER DEPARTMENT, WHO INFORMED THAT WOULD NOT DISCLOSE ANY KIND OF INFORMATION UNLESS THE INQUIRING PARTY'S NAME WAS DISCLOSED.

IF IT IS POSSIBLE TO DISCLOSE THE NAME OF THE INTERESTED SUPPLIER OF THE SUBJECT, WE MAY RESUME OUR CONTACTS AND TRY TO OBTAIN FURTHER INFORMATION.

THE DATA CONTAINED HEREIN WERE OBTAINED FROM OUTSIDE SOURCES, OUR DATABASE AND OFFICIAL. NO FURTHER DATA WAS AVAILABLE WITH SEVERAL SOURCES USUALLY INVESTIGATED.

PUBLIC INFORMATION:

PROTESTS:

402 PROTESTS, TOTAL AMOUNT R$ 4.478.467,04

DATE OF FIRST PROTEST: 08/2010 R$ 1,826,60

DATE OF HIGHEST PROTEST: 10/2014 R$ 339.440,50

DETAILS OF LATEST PROTESTS:

NOTARY OFFICE:	DATE:	VALUE:
2º CARTORIO DE SSAO BERNARDO DO CAMPO/SP	14/07/2015	R$ 58.598,65
1º CARTORIO DE SSAO BERNARDO DO CAMPO/SP	30/07/2015	R$ 516,80
2º CARTORIO DE SSAO BERNARDO DO CAMPO/SP	30/07/2015	R$ 705,93
2º CARTORIO DE SSAO BERNARDO DO CAMPO/SP	14/07/2015	R$ 561,79
2º CARTORIO DE SSAO BERNARDO DO CAMPO/SP	08/07/2015	R$ 1.226,77

LAWSUITS:
	DATE:	COURT OF LAW:

5	EXECUTIVE LAWSUITS	15/07/15	1ª VARA DE SP-TAUBATE
1	MUNICIPAL LAWSUIT	26/07/13	1ª VARA DE SP-GARÇA
8	FEDERAL LAWSUITS	07/07/15	2ª VARA DE SP-SÃO BERNARDO DO CAMPO
15	STATE LAWSUITS	11/02/15	1ª VARA DE CE-FORTALEZA
2	BANKRUPTCY PETITION	05/07/15	1ª VARA DE SP-SÃO BERNARDO DO CAMPO

FINANCIAL INFORMATION

DUE TO THE SUBJECT'S LEGAL FORM, IT IS NOT OBLIGED TO PUBLISH THE BALANCE SHEET INFORMATION. WHEN INTERVIEWING SOURCES AT THE SUBJECT COMPANY DECLINED TO PROVIDE ANY KIND OF FINANCIAL INFORMATION.

OUTSIDE SOURCES CONTACTED SHOWED NO FINANCIAL DATA ABOUT THIS COMPANY.

EXCHANGE RATE:
US$ 1,00 = R$ 3,53	- OFFICIAL RATE ON 06/08/2015

COMMENTS ON THE FINANCIAL INFORMATION:

THE COMPANY IS REPORTED TO HAVE HUGE FINANCIAL POWER. HOWEVER, IN THE ABSENCE OF FINANCIAL INFORMATION NO COMMENTS CAN BE MADE ABOUT THE SUBJECT'S CURRENT FINANCIAL TANDING.

REAL ESTATE:

NOT AVAILABLE

VEHICLES:

NOT AVAILABLE

MACHINES:

NOT AVAILABLE

INSURANCE

THE SUBJECT IS SAID TO HOLD INSURANCE POLICIES BUT DETAILS WERE NOT DISCLOSED.

BANKING REFERENCES

	BRANCH/PHONE:	CITY:
HSBC BANK BRASIL S/A BANCO MÚLTIPLO	JABAQUARA	SÃO PAULO/SP
BANCO ITAÚ S/A	JABAQUARA	SÃO PAULO/SP
DEUTSCHE BANK S/A - BANCO ALEMÃO	SANTO AMARO	SÃO PAULO/SP
BANCO DO BRASIL S/A	JABAQUARA	SÃO PAULO/SP
BANCO SAFRA S/A	S.B. DO CAMPO	SÃO BERNARDO DO CAMPO/SP

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"). DATE RESEARCHED AUGUST 06, 2015.

ACTIVITIES COMMENTS

THE SUBJECT IS ENGAGED IN THE MANUFACTURE OF MOTOR VEHICLES. IT IS ONE OF THE MOST IMPORTANT MANUFACTURERS OF CARS, PICK-UPS, TRUCKS, PARTS AND ACCESSORIES.

IMPORT AND EXPORT:

IMPORTS FROM:

IMPORTS FROM AND EXPORTS TO SEVERAL COUNTRIES.

MAIN CLIENTS:

DOMESTIC CLIENTS:

NOT AVAILABLE.

STAFF:

THE COMPANY HAS: 15000 EMPLOYEE(S)

CONCEPT AND FULFILMENT

THE SUBJECT IS ONE OF THE MOST IMPORTANT COMPANIES IN BRAZIL IN ITS LINE OF BUSINESS AND IS PART OF A GROUP WITH AN EXCELLENT REPUTATION WORLDWIDE.

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 DELAYS REPORTED ARE CONSIDERED NORMAL AND DO NOT AFFECT THE SUBJECT'S PAYMENT RECORD. MOST OF THE SUPPLIERS WHICH PROVIDED INFORMATION REPORTED PROMPT PAYMENTS AND THE SUBJECT HAS AN EXCELLENT TRADE REPUTATION.

THE LAWSUITS REPORTED ARE NOT RELATED WITH TRADE DEBTS. THEY ARE RELATED TO TAX DEBTS THAT FOR ANY REASON THE COMPANY HAS NOT YET PAID. NEVERTHELESS WE POINT OUT THAT THE SAID LAWSUITS DO NOT AFFECT THE COMPANY'S TRADE REPUTATION.

OUR INVESTIGATION THROUGH THE PUBLIC RECORDS SHOWED SEVERAL PROTESTS AGAINST THE SUBJECT BUT DESPITE THE HIGH AMOUNT OF PROTESTED BILLS THE SUBJECT STILL HAVE A GOOD TRADE REPUTATION AND SUPPLIERS EXTEND CREDIT FACILITIES TO IT NORMALLY.

MAIN SUPPLIERS:

DOMESTIC SUPPLIERS:

CREMER S/A

DENSO DO BRASIL LTDA

MAGNETI MARELLI BRASIL IND. COMÉRCIO LTDA

PETROBRAS DISTRIBUIDORA S/A

RCN INDS. METALÚRGICAS S/A

ROBERT BOSCH LTDA

TCA TECNOLOGIA COMPON. AUTOMOTIVA LTDA

USIMINAS - USINA SIDERÚRGICA DE MINAS GERAIS S/A

PAYMENT HISTORY:

28 SUPPLIERS REPORTED PAYMENTS:

TOTAL AMOUNT: R$ 11.914.678,00

AMOUNT OF INVOICES PAID: 1692

TOTAL OF PROMPT PAYMENTS: 92,6%

TOTAL OF DELAYED PAYMENTS: 7,4%

HIGHEST INVOICE: R$ 555.652,00

HIGHEST CREDIT: R$ 555.652,00

OUTSTANDING INVOICES DUE WITHIN THE NEXT 30 DAYS:

---------------------------	SUPPLIERS:	INVOICES:	TOTAL AMOUNT:
DUE WITHIN 30 DAYS	3	6	R$ 21.193,12

FINAL OPINION

THE SUBJECT IS A TRADITIONAL AND WELL-ESTABLISHED COMPANY WHICH BELONGS TO A MULTINATIONAL GROUP WITH EXCELLENT TRADE REPUTATION WORLDWIDE. IT HAS A HIGH SCALE OF OPERATIONS AND A HUGE FINANCIAL POWER.

BASED ON THE OVERALL 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 SIZE AND FINANCIAL STRENGTH.

DESPITE THE ABSENCE OF FINANCIAL DATA, FOR HIGHER AMOUNTS IT WOULD BE RECOMMENDED DEMANDING A COLLATERAL OF THE SHAREHOLDERS.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.81
UK Pound	1	Rs.98.93
Euro	1	Rs.69.66

INFORMATION DETAILS

Analysis Done by :	KAS
Report Prepared by :	ANK

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.