MIRA INFORM REPORT

 

 

Report No. :

323063

Report Date :

25.05.2015

 

IDENTIFICATION DETAILS

 

Name :

APERAM INOX AMERICA DO SUL S/A

 

 

Registered Office :

Avenida Carandaí,1115 23º Andar – Funcionários, 30130-915 - Belo Horizonte/Mg

 

 

Country :

Brazil

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

31.10.1944

 

 

Legal Form :

Privately Held Corporation

 

 

Line of Business :

Subject is engaged in the steel and iron works, with its core activities being manufacture, mining, sale and export of stainless flat steel, oriented and non-oriented grain flat steel, carbon linked steel, special steel and other related activities.

 

 

No. of Employee :

3000

           

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. Unemployment is at historic lows and Brazil's traditionally high level of income inequality has declined for each of the last 15 years. Rising inflation led the authorities to take measures to cool the economy in 2011; these actions and the deteriorating international economic situation slowed growth in 2011-14. Brazil’s fiscal and current account balances have eroded during the past three years as the government attempted to boost economic growth through targeted tax cuts for industry and incentives to spur household consumption. President Dilma ROUSSEFF has indicated that her government in her second term will pursue more austere fiscal policies to reduce these imbalances and preserve the country’s credit rating.

 

Source : CIA

 

 

 

Company name

 

APERAM INOX AMERICA DO SUL S/A

 

 

ADDRESSES

 

MAIN ADDRESS:

AVENIDA CARANDAÍ,1115 23º ANDAR - FUNCIONÁRIOS

ZIP CODE/CITY:

30130-915 - BELO HORIZONTE/MG

 

 

PHONE:

31 3235-4336

FAX:

31 3235-4336

E-MAIL:

ronaldo.luzia@arcelormittal.com

WEB SITE:

www.acesita.com.br

 

BRANCHES:

 

 

 

ADDRESS:

PRAÇA 1º DE MAIO,9 - CENTRO

ZIP CODE/CITY:

35180-000 TIMÓTEO/MG

PHONE:

31 3849-7000

CNPJ:

33.390.170/0013-12

STATE REGISTER:

687013342.03-52

 

 

ADDRESS:

AVENIDA BRIGADEIRO FARIA LIMA,1355 20º ANDAR

ZIP CODE/CITY:

01452-002 SÃO PAULO/SP

PHONE:

11 3838-1700

CNPJ:

33.390.170/0005-02

 

 

ADDRESS:

RUAQ VISCONDE DE INHAUMA,134 SALAS 1026 E 1027 - CENTRO

ZIP CODE/CITY:

20091-901 RIO DE JANEIRO/RJ

CNPJ:

33.390.170/0011-50

 

 

ADDRESS:

AVENIDA MERCEDES BENZ,1420 - DISTRITO INDUSTRIAL

ZIP CODE/CITY:

13054-750 CAMPINAS/SP

CNPJ:

33.390.170/0004-21

 

 

ADDRESS:

RODOVIA RST 456, KM 2,2 PAVILHÃO C

ZIP CODE/CITY:

95110-690 CAQXIAS DO SUL/RS

CNPJ:

33.390.170/0010-70

 

 

ADDRESS:

AVENIDA DOUTOR ANGELO TEIXEIRA DA COSTA,2164 - CARREIRA COMPRIDA

ZIP CODE/CITY:

33045-170 SANTA LUZIA/MG

CNPJ:

33.390.170/0015-84

 

 

ADDRESS:

AVENIDA ENGENHEIRO JANUÁRIO ALVARENGA SANTOS,247 B, SALA : CLIENTE 2 - VILA IRIS

ZIP CODE/CITY:

33040-220 SANTA LUZIA/MG

CNPJ:

33.390.170/0012-31

 

 

ADDRESS:

RUA XV DE NOVEMBRO,527 - CENTRO

ZIP CODE/CITY:

35180-000 TIMÓTEO/MG

CNPJ:

33.390.170/0016-65

 

THE COMPANY ALSO HAS OTHER BRANCHES LOCATED IN: ÁGUAS VERMELHAS/MG, BOM DESPACHO/MG, SERRA/ES, SUMARÉ/SP AND TIMÓTEO/MG.

 

 

LEGAL DATA

 

MAIN ACTIVITIES:

 

IRON AND STEEL WORKS.

 

LEGAL FORM:

PRIVATELY HELD CORPORATION

 

 

INCORPORATION DATE:

31/10/1944

REGISTER DATE:

31/10/1944

BALANCE SHEET FILING DATE:

31/12

TAX CONTRIBUTOR NUMBER(CNPJ):

33.390.170/0001-89

STATE REGISTER:

EXEMPT

 

 

SHARE CAPITAL:

R$ 2.091.447.820,53

 

BOARD OF DIRECTORS:

 

 

 

FREDERICO AYRES LIMA

PRESIDENT DIRECTOR

MARC LEON ALPHONSE RUPPERT

FINANCIAL DIRECTOR

ILDER CAMARGO DA SILVA

DIRECTOR

CHRISTOPHE FRANCOIS CAREL

INDUSTRIAL DIRECTOR

 

 

AUTHORIZED USE OF SIGNATURE

 

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

 

SHAREHOLDERS / PARTNERS:

 

 

 

APERAM HOLDCO. S.À.R.L.

100%

 

AFFILIATES / SUBSIDIARIES:

 

 

 

ARCELORMITTAL INOX BRASIL LTDA

100%

ACESITA HOLDING BV

100%

ARCELORMITTAL BIOENERGIA LTDA

34%

ARCELORMITTAL INOX BRASIL TUBOS LTDA

100%

ACESITA INTERNATIONAL LTD

100%

ACESITA ARGENTINA S.A.

100%

 

 

COMPANY'S BACKGROUND

 

ACESITA WAS FOUNDED ON OCTOBER 31, 1944, BY THREE ENGINEERS: AMYNTAS JACQUES DE MORAES, PERCIVAL FARQHUAR AND ATHOS LEMOS RACHE. IN APRIL OF THE SUBSEQUENT YEAR, THE COMPANY STARTED OPERATIONS, FOCUSING ITS PRODUCTION ON SPECIAL STEELS TO MEET THE NEEDS OF THE DOMESTIC MARKET.

 

THE CONSTRUCTION OF THE STEEL ROLLING MILL WAS FINANCED BY BANCO DO BRASIL, AND THE LOCATION CHOSEN WAS THE CITY OF TIMÓTEO, ON THE BANKS OF PIRACICABA RIVER. IN 1951, BANCO DO BRASIL CONVERTED ITS CREDIT INTO SHAREHOLDER EQUITY TO BECOME ACESITA'S BIGGEST SHAREHOLDER, HOLDING 79% OF THE CAPITAL STOCK.

 

AT THE START OF OPERATIONS, THE COMPANY WAS CAPABLE OF PRODUCING 60,000 TONS PER YEAR OF SPECIAL STEELS. THE MILL'S POWER CAME FROM THE SÁ CARVALHO HYDROELECTRIC PLANT AND FROM IRON ORE RESERVES.

 

BEFORE REACHING ITS PRESENT CAPACITY OF 850,000 TONS OF STEEL PER YEAR, THE MILL UNDERWENT THREE SIGNIFICANT PLANT EXPANSIONS. AFTER THE FIRST TWO EXPANSIONS, IT STARTED TO PRODUCE CARBON AND MICRO-ALLOYED STEELS AND ALSO SILICON STEELS (GRAIN ORIENTED - GO AND NON-ORIENTED GRAIN - GNO). AFTER THE THIRD EXPANSION, IN 1977, THE MILL BEGAN PRODUCING STAINLESS STEELS. WITH THIS THIRD EXPANSION, AND UPON BECOMING THE SOLE MANUFACTURER OF FLAT STAINLESS STEELS IN SOUTH AMERICA, ACESITA STARTED BUILDING ITS CURRENT CORPORATE HEADQUARTERS. OWNERSHIP REMAINED IN THE HANDS OF THE FEDERAL GOVERNMENT UNTIL OCTOBER 1992, WHEN THE COMPANY WAS PRIVATIZED.

 

THE 1990S WERE A RACE TO THE NEXT CENTURY. TWO YEARS AFTER THE PRIVATIZATION AUCTION, AS ACESITA WAS CELEBRATING ITS FIFTIETH ANNIVERSARY, THE COMPANY BEGAN A DARING INVESTMENT PLAN FOR THE TECHNOLOGICAL MODERNIZATION OF ITS TIMÓTEO PLANT, INCLUDING THE EXPANSION OF ITS OUTPUT CAPACITY OF COLD-ROLLED STAINLESS STEELS. WITH INVESTMENTS OF US$600 MILLION, THE COMPANY CONCLUDED ITS FOURTH EXPANSION PLAN IN THE SECOND QUARTER OF 1998, INCREASING THE STAINLESS STEEL PRODUCTION LINE CAPACITY FROM 120,000 TONS PER YEAR, IN 1993, TO 290,000 TONS. WITH THESE INVESTMENTS, THE COMPANY WAS PREPARED TO ENTER THE GLOBAL MARKET. THE FOLLOWING STEP WAS ACQUIRING A STAKE IN CST (CIA. SIDERÚRGICA DE TUBARÃO). THE DEFINITIVE EMERGENCE INTO THE TWENTY-FIRST CENTURY CAME WITH THE ENTRY OF USINOR INTO ACESITA'S CONTROL GROUP, IN SEPTEMBER OF 1998.

 

THE FRENCH GROUP USINOR, ONE OF THE WORLD'S LARGEST STEEL MANUFACTURERS, WITH A SUBSTANTIAL PRESENCE IN THE SPECIAL STEELS MARKETS, WAS CONSIDERED THE IDEAL PARTNER FOR ACESITA. THE AGREEMENT SIGNED BETWEEN THE PENSION FUNDS, WHO WERE ACESITA'S CONTROLLERS AT THE TIME, AND USINOR OPENED THE WAY FOR THE FRENCH GROUP TO ENTER ACESITA'S CONTROL BLOCK, THROUGH THE INJECTION OF R$1.02 BILLION. AS A RESULT, THE COMPANY STRENGTHENED ITS CAPITAL STRUCTURE, ACCELERATED ITS CORPORATE DEVELOPMENT AND CONSOLIDATED ITS STRATEGIC POSITION AS THE SOLE PRODUCER OF SPECIAL STAINLESS AND SILICON STEELS IN SOUTH AMERICA.

 

ACESITA, WHICH IS HEADQUARTERED IN BELO HORIZONTE, THE CAPITAL OF MINAS GERAIS STATE, HAS A STEEL MANUFACTURING PLANT IN TIMÓTEO, A COUNTY IN THE REGION OF VALE DO AÇO (STEEL VALLEY) IN MINAS GERAIS. THE PLANT IS STRATEGICALLY LOCATED 200 KILOMETERS FROM BELO HORIZONTE, 770 KILOMETERS FROM SÃO PAULO, AND 550 KILOMETERS FROM RIO DE JANEIRO, AND IS CONNECTED BY RAILWAY AND HIGHWAY TO THE MAIN CONSUMER CENTERS OF BRAZIL.

 

THE ACESITA INDUSTRIAL PLANT IS LOCATED CLOSE TO THE AREA KNOWN AS THE QUADRILATERAL IRON RESERVE, A REGION RICH IN IRON ORE, THE BASIC RAW MATERIAL FOR THE PRODUCTION OF STEEL. THE PLANT IS SITUATED NEAR THE BR-381 AND BR-262 HIGHWAYS, WHICH CONNECT MINAS GERAIS TO THE STATES IN THE NORTHEAST AND SOUTH OF BRAZIL, AS WELL AS THE RAILWAY THAT LINKS BELO HORIZONTE WITH THE PORT CITY OF ESPIRITO SANTO.

 

THIS STRATEGIC LOCATION WITHIN BRAZIL AND SOUTH AMERICA ALLOWS THE COMPANY TO COMPETITIVELY DISTRIBUTE ITS PRODUCTS ACROSS THE COUNTRY AND TO INTERNATIONAL MARKETS.

 

ON APRIL 24, 2003, ACCORDING TO RELEVANT NOTE DIVULGED BY ACESITA S/A, ON MARCH 2003, THE SUBJECT DIVESTED ITS DIRECT INVESTMENT IN THE COMPANY COMPANHIA SIDERÚRGICA DE TUBARÃO, AS WELL AS THE SHARES IN CST HELD THROUGH ITS SUBSIDIARY AÇOS PLANOS DO SUL S/A, SHARES WHICH WERE NOT RELATED TO THE SHAREHOLDERS AGREEMENT OF CST, BY THE AMOUNT OF US$ 161,800,000.00.

 

ON NOVEMBER 28, 2003 ACESITA S.A. TOOK OVER THE NET EQUITY RESULTED FROM THE PARTIAL SPLIT OF ACESITA CENTROS DE SERVIÇOS.

 

DURING 2003 ACESITA WAS AWARDED SEVERAL PRIZES AND PUBLIC ACKNOWLEDGMENT, BEING HIGHLIGHTED BY THE MAGAZINE "GUIA EXAME DE BOA CIDADANIA CORPORATIVA" - THE MOST RESPECTED SOCIAL RESPONSIBILITY BRAZILIAN PUBLICATION - AS ONE OF THE 10 COMPANIES WITH MOST SOCIALLY CONCERNED OF THE YEAR.

 

 

IMPORTANT REMARKS

 

ACCORDING TO THE SHAREHOLDERS' MEETING HELD ON NOVEMBER 29, 2007 THE COMPANY ALTERED THE FORM NAME FROM ACESITA S/A TO ARCELORMITTAL INOX BRASIL S/A.

 

IN JUNE 30, 2008 THE COMPANY TOOK OVER ARCELOR AÇOS ESPECIAIS DO BRASIL LTDA, CNPJ 07.174.842-09.

 

THE COMPANY TOOK OVER ACESITA EMPREENDIMENTOS LTDA.

 

ON JANUARY 25, 2011 THE ARCELORMITTAL GROUP APPROVED THE SPIN-OFF OF ITS STAINLESS AND SPECIALTY STEEL BUSINESSES, FORMING A NEW COMPANY NAME APERAM.

 

AS A RESULT OF SUCH SPIN-OFF, IN BRAZIL, ON AUGUST 01, 2011 SUBJECT CHANGED ITS NAME FROM ARCELORMITTAL INOX BRASIL S/A TO THE PRESENT REGISTERED ONE.

 

FURTHER DETAILS ABOUT THE SUBJECT'S HISTORY ARE SO FAR NOT KNOWN.

 

 

PUBLIC INFORMATION

 

PROTESTS:

 

9  PROTESTS,TOTAL AMOUNT R$ 23.382,10

   DATE OF FIRST PROTEST: JULY/2012  R$ 689,67

   DATE OF HIGHEST PROTEST: SEPTEMBER/2014  R$ 7.236,08

 

DETAILS OF LATEST PROTESTS:

 

NOTARY OFFICE:

DATE:

VALUE:

1º CARTÓRIO DE MG-TIMOTEO

25/03/2015

R$ 1.300,00

3º CARTÓRIO DE MG-BELO HORIZONTE

15/04/2015

R$ 4.019,40

1º CARTÓRIO DE MG-TIMOTEO

05/08/2014

R$ 5.960,79

1º CARTÓRIO DE MG-BELO HORIZONTE

23/02/2015

R$ 364,50

3º CARTÓRIO DE MG-BELO HORIZONTE

17/09/2014

R$ 7.236,08

 

LAWSUITS:

 

 

 

DATE:

COURT OF LAW:

 

4

FEDERAL LAWSUITS

10/07/14

23ª VARA DE MG-BELO HORIZONTE

1

STATE LAWSUIT

20/11/13

VARA DE MG-IPATINGA

 

(RESEARCH DATE: 15/05/2015)

 

 


FINANCIAL INFORMATION

 

GENERAL BALANCE SHEETS AS OF 31/12/2014, 31/12/2013 AND 31/12/2012.

( FIGURES ARE IN THOUSANDS OF REAIS ).

 

 

ASSETS

 

 

 

 

CURRENT:

31/12/2014

31/12/2013

31/12/2012

 

 

 

 

CASH AND BANKS

79.867

259.077

127.533

CLIENTS

245.370

236.917

376.153

INVENTORY

575.768

560.179

496.657

RECOVERABLE TAXES

76.948

47.808

38.704

OTHER

65.034

67.630

54.047

 

----------------

----------------

----------------

TOTAL CURRENT ASSETS

1.042.987

1.171.611

1.093.094

 

LONG-TERM RECEIVABLES:

 

 

 

 

 

 

 

RECOVERABLE TAXES

2.664

10.969

8.667

INTERCOMPANY CREDITS

52.016

44.649

37.789

OTHER CREDITS

13.155

14.357

23.252

ASSETS HELD FOR SALE

86.953

166.464

162.743

DEFERRED TAXES

79.992

143.808

165.376

COMPULSORY DEPOSITS

88.201

83.925

92.906

 

----------------

----------------

----------------

TOTAL LONG-TERM RECEIVABLES

322.981

464.172

490.733

 

FIXED ASSETS:

 

 

 

 

 

 

 

INVESTMENTS

484.944

494.620

484.849

FIXED ASSETS

882.618

936.485

1.030.648

INTANGIBLE

1.377.022

1.375.704

1.374.590

 

----------------

----------------

----------------

TOTAL FIXED ASSETS

2.744.584

2.806.809

2.890.087

 

================

================

================

TOTAL ASSETS

4.110.552

4.442.592

4.473.914

 

 

 

 

 

 

LIABILITIES

 

 

 

 

CURRENT:

31/12/2014

31/12/2013

31/12/2012

 

 

 

 

SUPPLIERS

368.701

441.457

394.550

LABOR OBLIGATIONS

68.431

62.056

58.807

TAXES & CONTRIBUTIONS

26.131

20.127

21.223

LOANS AND FINANCING

67.030

82.903

329.894

DIVIDENDS

454

454

454

OTHER

48.420

46.887

54.700

ADVANCE FROM CLIENTS

13.301

 

 

DEBT WITH RELATED PARTIES

14.047

 

 

 

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

606.515

653.884

859.628

 

LONG TERM LIABILITIES:

 

 

 

 

 

 

 

LOANS AND FINANCING

1.358.366

1.588.219

1.514.916

INTERCOMPANY DEBTS

5.289

4.664

4.069

PROVISION FOR CONTINGENCIES

76.758

72.145

84.763

OTHER

17.397

18.391

19.005

 

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

1.457.810

1.683.419

1.622.753

 

NET EQUITY:

 

 

 

 

 

 

 

SHARE CAPITAL

2.091.377

2.201.780

1.917.709

CAPITAL RESERVES

9.228

9.228

9.228

PROFIT RESERVES

42.728

42.728

42.728

OTHER COMPREHENSIVE INCOME

55.530

35.763

33.237

ACCRUED PROFIT (LOSS)

-152.636

-184.210

-11.369

 

----------------

----------------

----------------

TOTAL NET EQUITY

2.046.227

2.105.289

1.991.533

 

================

================

================

TOTAL LIABILITIES

4.110.552

4.442.592

4.473.914

 

PROFIT AND LOSS ACCOUNTS AS OF 31/12/2014, 31/12/2013 AND 31/12/2012.

( FIGURES ARE IN THOUSANDS OF REAIS ).

 

 

31/12/2014

31/12/2013

31/12/2012

 

 

 

 

NET SALES

3.210.701

2.676.796

2.514.011

(-) COST OF SOLD GOODS

2.665.089

2.357.373

2.269.862

 

----------------

----------------

----------------

GROSS PROFIT

545.612

319.423

244.149

OPERATING REVENUE (EXPENSE)

-278.968

-241.490

-186.272

FINANCIAL REVENUE(EXPENSE)

-192.155

-232.460

-122.520

 

----------------

----------------

----------------

OPERATIONAL PROFIT (LOSS)

74.489

-154.527

-64.643

CONTRIBUTION/INCOME TAX

-46.833

-22.428

5.278

 

----------------

----------------

----------------

NET PROFIT (LOSS)

27.656

-176.955

-59.365

 

 

RATIOS

 

 

31/12/2014

31/12/2013

31/12/2012

QUICK RATIO

,77

 

,94

 

,69

 

CURRENT RATIO

1,72

 

1,79

 

1,27

 

ACCOUNTS RECEIVABLE TURNOVER

13,09

TIMES

11,30

TIMES

6,68

TIMES

DAYS' SALES IN RECEIVABLES

27,51

DAYS

31,86

DAYS

53,86

DAYS

INVENTORY TURNOVER

4,63

TIMES

4,21

TIMES

4,57

TIMES

ACCOUNTS PAYABLE PERIOD

49,80

DAYS

67,42

DAYS

62,58

DAYS

RETURN ON ASSETS

,78

TIMES

,60

TIMES

,56

TIMES

SALES TURNOVER ON NET EQUITY

1,57

TIMES

1,27

TIMES

1,26

TIMES

NET WORTH TIE-UP

,43

 

,44

 

,52

 

INDEBTEDNESS

1,01

 

1,11

 

1,25

 

EQUITY RATIO

49,78

%

47,39

%

44,51

%

WORKING CAPITAL RATIO

71,96

%

79,18

%

27,16

%

GENERAL SOLVENCY

1,99

 

1,90

 

1,80

 

RETURN ON NET EQUITY

1,35

%

-8,41

%

-2,98

%

RETURN ON SALES (PROFIT MARGIN)

,86

%

-6,61

%

-2,36

%

GROSS PROFIT MARGIN

16,99

%

11,93

%

9,71

%

OPERATIONAL RESULT

2,32

%

-5,77

%

-2,57

%

SALES TURNOVER ON LIABILITIES

5,29

TIMES

4,09

TIMES

2,92

TIMES

FOREIGN CURRENCY ON ASSETS

 

 

 

 

 

 

FOREIGN CURRENCY ON LIABILITIES

 

 

 

 

 

 

 

 

EXCHANGE RATE

 

US$ 1,00 = R$ 2,98

 - OFFICIAL RATE ON 15/05/2015

US$ 1,00 = R$ 2,65

 - OFFICIAL RATE ON 31/12/2014

US$ 1,00 = R$ 2,34

 - OFFICIAL RATE ON 31/12/2013

US$ 1,00 = R$ 2,04

 - OFFICIAL RATE ON 31/12/2012

 

COMMENTS ON THE FINANCIAL INFORMATION:

 

FOLLOWS ATTACHED WORKSHEET WITH MAIN FINANCIAL RATIOS.

 

THE FIGURES AVAILABLE SHOW A SATISFACTORY FINANCIAL STANDING. IT SHOWS HIGH LEVEL OF INDEBTEDNESS AND MAINLY IS COMPRISED BY LONG TERM FINANCIAL DEBTS BUT IT IS NOTED GOOD CURRENT RATIO AND POSITIVE WORKING CAPITAL. IT IS NOTED HIGH GROWING SALES AND POSTED POSITIVE RESULTS.

 

THE VARIATION THE "FINANCIAL REVENUE (EXPENSE) ACCOUNTS" CAN BE ATTRIBUTED TO THE VARIATION IN THE CURRENCY.

 

IT IS WORTH TO COMMENT THAT THE SUBJECT HAS A HUGE FINANCIAL POWER, THEREFORE, IT IS NOT LIKELY TO FACE FINANCIAL PROBLEMS.

 

 

REAL ESTATE

 

   OWNED PREMISES ARE VALUED AT R$ 136.787.000,00

 

VEHICLES

 

   OWNED VEHICLES ARE VALUED AT R$ 11.996.000,00

 

MACHINES

 

   OWNED MACHINES AND EQUIPMENTS ARE VALUED AT R$ 709.046.000,00

 

 

INSURANCE

 

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

 

 

BANKING REFERENCES

 

 

BRANCH/PHONE:

CITY:

BANCO DO BRASIL S/A

1614-4

RIO DE JANEIRO/RJ

BANCO ALFA DE INVESTIMENTOS

AFONSO PENA1996

 

BANCO ITAÚ S/A

0566

 

BANCO SAFRA S/A

0023

 

BANCO BRADESCO S/A

04626

 

BANCO REAL (SANTANDER) S/A

0037

 

 

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 MAY 15, 2015.

 

 

ACTIVITIES COMMENTS

 

SUBJECT IS ENGAGED IN THE STEEL AND IRON WORKS, WITH ITS CORE ACTIVITIES BEING MANUFACTURE, MINING, SALE AND EXPORT OF STAINLESS FLAT STEEL, ORIENTED AND NON-ORIENTED GRAIN FLAT STEEL, CARBON LINKED STEEL, SPECIAL STEEL AND OTHER RELATED ACTIVITIES.

 

 

IMPORT AND EXPORT:

 

IMPORTS FROM:

SWITZERLAND, CANADA AND CHINA.

 

EXPORTS TO:

NORTH AMERICA, ASIA, EUROPE AND MERCOSUL.

 

MAIN CLIENTS:

 

 

 

 

 

DOMESTIC CLIENTS:

CITY:

 

AMORIM S/A AÇO INOXIDÁVEL

SÃO PAULO/SP

 

DETASA S/A PERFILAM

SÃO PAULO/SP

 

FEITAL INT. REP. IMP. E EXP. LTDA

SÃO B. CAMPO/SP

 

INOX TUBOS

SÃO PAULO/SP

 

SIFCO

JUNDIAÍ/SP

 

TRAMONTINA IND. MET.

FARROUPILHA/RS

 

 

FOREIGN CLIENTS:

COUNTRY:

 

DUFERCO

LUGANO/SWITZERLAND

 

 

STAFF:

 

THE COMPANY HAS: 3000 EMPLOYEE(S)

 

 

CONCEPT AND FULFILMENT

 

THE SUBJECT IS AN OLD AND WELL-ESTABLISHED COMPANY IN BUSINESS SINCE 1944. IT IS WELL-KNOWN AND IS ONE OF THE MOST IMPORTANT COMPANIES IN ITS LINE OF BUSINESS IN BRAZIL.

 

THE COMPANY HAS TRADE RELATIONS WITH SEVERAL SUPPLIERS IN BRAZIL. THE SUPPLIERS EXTEND CREDIT FACILITIES TO THE SUBJECT IN HIGH AMOUNTS ACCORDING TO ITS NEEDS. SO FAR NO PAYMENT PROBLEMS ARE REGISTERED AT ALL.

 

AS MOST OF SUPPLIERS PROMPT PAYMENTS, THUS THE SUBJECT HAS GOOD PAYMENT BEHAVIOR.

 

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. USUALLY THIS KIND OF SUITS DO NOT AFFECT THE COMPANY REPUTATION BUT IN THE SUBJECT SPECIFIC CASE IT IS NOT POSSIBLE TO EVALUATE AS THERE ARE SEVERAL SUITS REGISTERED AND NO DETAILS REGARDING THE AMOUNTS INVOLVED ARE AVAILABLE FOR PUBLIC INSPECTION.

THE PROTESTS FOUND ARE NOT RELEVANT.

 

 

 

 


MAIN SUPPLIERS

 

 

 

 

 

DOMESTIC SUPPLIERS:

CITY:

 

AÇOMINAS

OURO BRANCO/MG

 

ANGLO AMERICAN BRASIL LTDA

 

 

CIA. NÍQUEL TOCANTINS

 

 

CODEMIN

SÃO PAULO/SP

 

FERBASA

 

 

FERBASA

POJUCA/BA

 

MAGNESITA S/A

CONTAGEM/MG

 

MINAS LIGAS

 

 

SUPERGASBRAS

 

 

VALE S/A

RIO DE JANEIRO/RJ

 

 

FOREIGN SUPPLIERS:

COUNTRY:

 

GLENCORE

ZURICH/SWITZERLAND

 

GLENCORE

HONG KONG / PRC

 

NOBLE/IFS

N/A

 

 

 

PAYMENT HISTORY

 

22 SUPPLIERS REPORTED PAYMENTS:

   TOTAL AMOUNT:  R$ 1.676.494,00

 

AMOUNT OF INVOICES PAID: 864

TOTAL OF PROMPT PAYMENTS: 88,6%

TOTAL OF DELAYED PAYMENTS: 11,4%

 

HIGHEST INVOICE: R$ 49.740,00

 

OUTSTANDING INVOICES DUE WITHIN THE NEXT 30 DAYS:

 

---------------------------

SUPPLIERS:

INVOICES:

TOTAL AMOUNT:

DUE WITHIN 30 DAYS

1

28

R$ 28.327,32

 

 

FINAL OPINION

 

THE SUBJECT IS A TRADITIONAL AND WELL-ESTABLISHED COMPANY. IT IS IN ACTIVITIES SINCE 1944 AND IS A LEADING COMPANY IN ITS LINE OF BUSINESS. 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 IN HIGH AMOUNTS ADEQUATE TO THE COMPANY'S LARGE SIZE AND HUGE FINANCIAL STRENGTH.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.57

UK Pound

1

Rs.99.67

Euro

1

Rs.70.93

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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

 

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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.