MIRA INFORM REPORT

Report No. :	355954
Report Date :	21.12.2015

IDENTIFICATION DETAILS

Name :	INDUSTRIAS DE PASCALE S.A.
Registered Office :	Virgilio 434 Piso:2 Dpto:I, 1407-Ciudad Autonoma Buenos Aires
Country :	Argentina
Year of Establishment :	1972
Legal Form :	Sociedad Anónima
Line of Business :	Subject is manufacture and process of leather, to finish its products: leather gloves.
No. of Employee :	40

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 :	Slow but correct
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)
Argentina	C1	C1

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. In October 2013, the government settled long-standing international arbitral disputes dating back to before and following the 2001 Argentine financial crisis. During 2014, the government continued with expansionary fiscal and monetary policies and foreign exchange and imports controls. Between 2011 and 2013, Central Bank foreign reserves had dropped $21.3 billion from a high of $52.7 billion. In July 2014, Argentina and China agreed on an $11 billion currency swap; the Argentine Central Bank has received the equivalent of $3.2 billion in Chinese yuan, which it counts as international reserves.

In 2014, the government also took some 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 agreeing to pay $9.7 billion in arrears to the Paris Club over five years, including $606 million owed to the United States. In July 2014, Argentina made its first payment to Paris Club creditors since the country’s 2001 financial crisis. At the same time, the Argentine government in July 2014 entered a technical default on its external debt after it failed to reach an agreement with holdout creditors in the US. The government’s delay in reaching a settlement and the continuation of interventionist and populist policies are contributing to high inflation and a prolonged recession, according to private analysts.

Source : CIA

STATUTORY INFORMATION
Legal Name:	INDUSTRIAS DE PASCALE S.A.
Trade Name:	INDUSTRIAS DE PASCALE
CUIT:	30-70778429-2
Date Created:	1972
Date Incorporated:	12/09/2001
Legal Address:	VIRGILIO 434 Piso:2 Dpto:I
	1407-CIUDAD AUTONOMA BUENOS AIRES
Operative Address:	Defensa 2391
	Aldo Bonzi, Buenos Aires 1785
	Argentina
Telephone:	114 442-3773
Fax:	114 442-2505
Legal Form:	SOCIEDAD ANÓNIMA
Email:	info@depascale.com.ar
Registered in:	AGENCIA NRO 47
	AV. ALVAREZ JONTE N° 2376
	1416 CIUDAD AUTONOMA BUENOS AIRES
Website:	www.depascale.com.ar
Contact:	Cayetano José De Pascale, President
Staff:	40
Activity:	Apparel Accessories Manufacturing Industry
BANKS
According to Argentinian Central Bank, the company maintains credit lines with the following banks:
BANK	AMOUNT IN AR$
BANCO DE LA NACION ARGENTINA	14735
BANCO CREDICOOP COOPERATIVO LIMITADO	7891,9
BANCO DE LA PROVINCIA DE BUENOS AIRES	6351
According to the classification of banking relations of Argentina, the company operates with level: 1.
This is the highest classification in the system. It means that the company/person is fulfilling correctly its current Credit
obligations.
There are no rejected checks
History
1972: Mr. Cayetano De Pascale's who founded the company engaged in the manufacture of industrial gloves in cowhide to third.
1978: The company incorporates the Aldo Bonzi plant located in the Province of Buenos Aires, the place where they are now.
PRINCIPAL ACTIVITY
The company is dedicated to the manufacture and process of leather, to finish its products: leather gloves.
Products/Services description:	Leather Gloves
Brands:	DE PASCALE
Sales are:	Wholesale
Clients:	PATHFINDER LEATHER LLC
	USA
Suppliers:	NA
Operations area:	National and International
The company imports from	India
The company exports to	USA
The subject employs	40 employees
Payments:	Regular-made on a 45 day basis-according to the BCRA
LOCATION
Headquarters :	Defensa 2391
	Aldo Bonzi, Buenos Aires 1785
	Argentina
Branches:	The company does not have branches
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Capital:	AR$ 150 000
Shareholders:	Major holder is the De Pascale family.
Management:	President, Cayetano José De Pascale
	Director, Pablo Daniel De Pascale
	Director, Ana Bernardette De Pascale
Related Companies:	There are no subsidiary companies
FINANCIAL INFORMATION
This is a private company which does not make its financial public.
AR$
2014	5 000 000
Cash Flow	Good
Exports FOB DOLLAR
2015	1.597.322
2014	5.545.641
2013	5.950.448
2012	4.102.779
2011	228.641
2010	347.625
LEGAL FILINGS
There are nolegal connected to the subject
SUMMARY
The company is dedicated to the manufacture and process of leather, to finish its products: leather gloves.
It has more than 30 years of experience in the market with a small sized structure and no negative records.
The company’s exports have increased significantly from 2013, and show regular export amounts.
The company maintains open Credit lines with national financial institutions, and show slow but correct paymen behaviour; however, its debts are high.
RISK INFORMATION
DEBTS	Controlled-high
PAYMENTS	Skow but correct
CASH FLOW	Normal
STATUS	This Corporation is in Good Standing
INTERVIEW
NAME	Valeria
POSITION	Administrative
COMMENTS	She confirmed address, managers, owners, staff and activity.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.42
UK Pound	1	Rs.99.17
Euro	1	Rs.72.14
ARS	1	Rs.5.05

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	TPT

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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