MIRA INFORM REPORT

Report No. :	328363
Report Date :	25.06.2015

IDENTIFICATION DETAILS

Name :	ESTABLECIMIENTO LAS MARIAS S A C I F A
Registered Office :	Ruta Nac. 14 - Km 739, Gob. Ing. V. Virasoro, 3342-Corrientes
Country :	Argentina
Date of Incorporation :	31.12.1924
Legal Form :	Sociedad Anónima
Line of Business :	Subject is engaged in growing grass or spices
No. of Employee :	1300

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.

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:	ESTABLECIMIENTO LAS MARIAS S A C I F A
Trade Name:	ESTABLECIMIENTO LAS MARIAS
CUIT:	30-50183535-4
Date Created:	1924
Date Incorporated:	31-12-24
Legal Address:	RUTA NAC. 14 - KM 739
	GOB. ING. V. VIRASORO
	3342-CORRIENTES
Operative Address:	Irala 2021
	Buenos Aires (City); Federal Capital, Argentina
Telephone:	54 (11) 4303-1162/9
Fax:	54 (11) 4303-1162/9
Legal Form:	Sociedad Anónima
Email:	atclientes@lasmarias.com.ar
Registered in:	AGENCIA SEDE POSADAS
	SANTA FE 1880
	3300 MISIONES
Website:	www.lasmarias.com.ar
Contact:	VíCtor Amado Adolfo Navajas Centeno, President
Staff:	1300
Activity:	Growing grass or spices
BANKS According to Argentinian Central Bank, the company maintains credit lines with the following banks:
BANK	AMOUNT IN THOUSANDS AR$
BANCO DE GALICIA Y BUENOS AIRES S.A.	103119
BANCO MACRO S.A.	97109,2
BANCO DE CORRIENTES S.A.	77899,3
HSBC BANK ARGENTINA S.A.	73371,9
BBVA BANCO FRANCES S.A.	68943,3
BANCO DE LA NACION ARGENTINA	62067
BANCO PATAGONIA S.A.	44372,9
BANCO DE LA PROVINCIA DE BUENOS AIRES	40914,1
BANCO DE LA CIUDAD DE BUENOS AIRES	39610,2
BANCO SANTANDER RIO S.A.	38075,2
INDUSTRIAL AND COMMERCIAL BANK OF CHINA	30386
BANCO COMAFI SOCIEDAD ANONIMA	16777,9
BANCO DE INVERSION Y COMERCIO EXTERIOR	15595,1
BANCO ITAU ARGENTINA S.A.	10206,6
AMERICAN EXPRESS ARGENTINA S.A.	859,7
CITIBANK N.A	1,1
	The Argentine Central Bank provides a classification number, according to the entity’s financial situation.
	In this case, company received classification 1:
	This is the highest classification in the system. It confirms that the company is fulfilling correctly its current Credit obligations
REJECTED CHECKS
TOTAL REJECTED CHECKS	1 / 17/10/2011
AMOUNT	160.000,00
History
The Navajas family, which owns Las Marías, started the mate operation in 1924 on their cattle estancia with 38 hectares of planted mate. The raw material was and, largely still is, produced by small holders and subsequently bought by processors and packers. Production at Establecimiento Las Marías is completely vertically integrated, starting with either seedbeds or cuttings from the most productive trees. Raw material is also sourced from vetted growers who are constantly monitored by company technicians both at the farm and at the buying stations. Some highlights of innovation are the development of instant mate in 1964, packing mate in tea bags in 1966, development of high density planting in 1973 and mechanical harvesting in 1981. Product development has continued with the market segmentation created by ‘Union’ the first light flavored mate in 1982, with Taragüi Mate Listo [1] in 1992, which is mate-to-go in a disposable container, needing only water, with a low caffeine product called "Relax", which has a percentage of Ilex Dumosa, a variety with no caffeine which was made commercially viable by Las Marías agricultural engineers, and “Bio” (Unión Bio) the first yerba mate with natural prebiotics
PRINCIPAL ACTIVITY Establecimiento Las Marías is a company specializing in infusions, It develops them all the way from plant to package. It is a source of tea, and its lands are the producers of yerba mate
Products/Services description:	Mate Herb (Yerba Mate)
	Tea
	Tea Mate
Brands:	Establishment Las Marias mainly produces and sells low you mate and brands Taragüi, Union, Marianita, La Merced and CAA Porá
Sales are:	Wholesale
Clients:	VAES GROUP SAC
	Colombia
	MEYER INSTANT FOODS SA
	Paraguay
Suppliers:	KELLOGG DE MEXICO S. DE R.L. DE C.V
	Mexico
	ALIAGA SRL
	Paraguay
Operations area:	National and International
The company imports from	Paraguay, Mexico
The company exports to	Worldwide
The subject employs	1300 employees
Payments:	Regular-made on a 45 day basis
LOCATION
Headquarters :	Irala 2021
	Buenos Aires (City); Federal Capital, Argentina
Branches:	Ruta Nacional Nş 14 Km 739
	Gobernador Ingeniero Valentín Virasoro, Corrientes 3342
	Argentina
Industry:	Argentina produces more than 60% of the world mate, with Brazil in second place, and the third with a very heterogeneous mate, Paraguay.
	In Argentina, the only region where the plant can develop, covers the whole province of Misiones and northern Corrientes (departments of Sao Tome e Ituzaingó).
	This basin collects unique ecological characteristics that enable it to reach a potential production of over 900,000 tons of yerba mate leaves annually. This volume is the amount equivalent to 300,000 tons of yerba mate processing industrial canal.
	The surface implanted, according to the latest satellite survey, is of 194,000 hectares, distributed among 18,000 independent producers, with premises in which 96% have planted an area equal to or less than 30 hectares.
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Capital:	AR$ 4 782 000
Shareholders:	This is a company owned by Las Marias Group:
	Las Marias Group was created in 1995 in order to concentrate on its assets and project in time to the various companies that comprise it. Its main function is to set big goals and set policy to follow, and to determine the operating of each of the companies objectives.
Management:	VíCtor Amado Adolfo Navajas Centeno, President
	VíCtor Jorge Navajas Artaza, Vicepresident
	Estuardo VíCtor Navajas, Director
	Pablo Burton Navajas, Director
	Fernando Navajas Artaza, Director
	Roberto Arturo Navajas, Director
	VíCtor Navajas Nosiglia, Director
	Adolfo Navajas, Director
	Pablo RaúL Navajas Nosiglia, Director
Related Companies:	Fundación Victoria Jean Navajas
	Sector Ganadería y Cabaña Las Marías
	Yerbatera del Nordeste
	Forestal Las Marías
	Estación de Servicio La Posta
FINANCIAL INFORMATION
This is a private company which does not make its financial figures public.
2013 AR$
Revenue	100 000 000
Cash Flow	Normal
AR$ 2011
Assets:	$462,183,094.94
Liabilities:	$309,167,728.48
Net Worth:	$153,015,366.46
Exports
Annual FOB USD
2015	3.160.141
2014	16.245.336
2013	15.981.738
2012	16.125.670
2011	14.094.161
LEGAL FILINGS
There are no legal connected to the subject
SUMMARY
Establecimiento Las Marías is a company specializing in infusions, It develops them all the way from plant to package. The company has 91 years of experience in the market with a large sized structure. It owns well known brands from the industry and distributes worlwide. The company maintains several credit lines with national Banks and financial institutions. According to the Central Bank, it maintain regular payment behaviour. There is one rejected check for AR$ 160 000. The company’s profitability is positive and shows no negative.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	Regular
CASH FLOW	Normal
SUGGESTED CREDIT LINE	USD 1 000 000
STATUS	Active
INTERVIEW
NAME	Francisco
POSITION	Administrative
COMMENTS	He confirmed  plant address, brands, size and owners.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.66
UK Pound	1	Rs.100.50
Euro	1	Rs.71.31

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	ASH

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.