MIRA
INFORM REPORT
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Report Date : |
14.08.2007 |
IDENTIFICATION DETAILS
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Name : |
INTERNATIONAL
BUREAU OF DYES S.A. |
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Registered Office : |
Av. Cassanello,
Predios 9 Y 10, Zona Franca Colonia, Colonia |
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Country : |
Uruguay |
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Date of Incorporation : |
2001 |
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Legal Form : |
Private Stock Corporation |
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Line of Business : |
Free Zone User & Operator |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 50.000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Company's Style
INTERNATIONAL BUREAU OF DYES S.A.
Trade Name
Same
Trading Address
Av. Cassanello,
predios 9 y 10, Zona Franca Colonia
Town :
COLONIA
Country :
BACKGROUND
INFORMATION & BUSINESS
PROFILE
LEGAL STRUCTURE :
-
Legal
Status :
Private Stock Corporation created under of the umbrella of the Act #15.921
which regulates the free zones in
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Date
established : 2001
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Public
Commercial Registry : 12.03.2001, # 2679
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Period
of legal life : 100 years
REGULATORY FRAMEWORK
: Subject operates under the umbrella of the Free Zones Act #
Such companies are legally forbidden to operate outside
the free zone area.
On the other hand, this companies enjoy full tax
exemptions (except the Income Tax). All merchandises imported to the free zone
are considered to be "in transit" and for being re-exported and
re-shipped to other countries, so such goods are imported on a duty-free entry
basis, but if such merchandises are transported outside the free zone and to
the national territory of Uruguay, they have to pay all customs duties and
import tariffs like any conventional and common import.
CAPITAL STRUCTURE : (in $, Uruguayan pesos)
AUTHORIZED NOMINAL CAPITAL : $ 1.000.000
ISSUED CAPITAL
: $ 1.000.000
PAID-IN CAPITAL :
$ 1.000.000
Its
stock is divided into bearer and ordinary shares $ 1.= par-value each one. It
is a privately-owned company whose shares are no traded on the Stock Exchange,
and whose controlling shareholders are undisclosed foreign investors
MANAGEMENT : DOVAT, CARRIQUIRY & ASOCIADOS (accounting
firm)
It
is an accounting and auditing firm hired by subject's foreign owners to run the
company on their behalf.
TYPE OF BUSINESS : TRADE / IMPORTER
BUSINESS CATEGORY: FREE ZONE USER &
OPERATOR
PRINCIPAL ACTIVITY :
This company operates as an
international trading company and free zone user and operator, under the
regulation of the Free Zone Act #15.921. Therefore, all its business and
commercial activities are concentrated INSIDE "Zona Franca de
Colonia", the Colonia town-based
free zone. By taking advantage of such strategic location, subject is
engaged in the import of industrial chemicals, dyestuffs, etc. on a
"duty-free" entry basis, which are stored inside the free zone to be
later re-exported and re-shipped to other South American countries.
The company is
also engaged in re-invoicing
and/or triangulated trade operations, which means that the subject company buys
general merchandises or products from
Annual
business volume is estimated in USD 2.500.000
·
Company Size : Moderate-sized
·
Business trend : Stable
·
Present situation : Operating normally
·
Outlook :
Favourable
·
Organization : Average. No major problems observed.
·
Reputation : well-known company of good reputation.
An active company in its line. Good market
position.
·
Management standard: The management consists of well-known businessmen
of good repute, and with years
of experience in related fields.
·
Traditional methods of management with good forward planning, well
defined corporate policy
Purchases :
Overseas (imports): 100 %
Imports
from :
Imports
in USD : 1.000.000 per year
Terms
imports : L/C, CAD terms, drafts over 90
to 120 days, etc.
STAFF :
3
BANKERS : BankBoston Uruguay S.A. (Banco Itau)
INSURERS : Banco de Seguros del Estado
TANGIBLE FIXED
ASSETS, INVESTMENTS, ETC.
PHYSICAL ASSET
HOLDINGS :
No real estate properties
RELATED
COMPANIES:
nil
CREDIT STANDING
BANKING RECORD : Banks reported properly
managed checking accounts (local currency and USD), also foreign trade
operations, collections of bills of exchange, negotiation of LC's. and credit
lines in USD for imports until 6 figures. Good credit history information and
banker's opinion.
TRADE REFERENCES SURVEY : In virtue of the nature of its business
operations its local credit transactions are seldom. Therefore, commercial
sources consulted in the marketplace report that they are unable to establish
subject's payment performance and general reputation regarding commitments
contracted as same it is little known as making use of credit facilities,
although occasional commitments have been met promptly and well.
·
Negative facts check : No defaults, delinquencies, legal
suits, judgements, collection claims, protested
items, returned checks or other
detrimental record or adverse references are
traced against the subject.
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Past information : in files since 2005. Maximum credit figure
reported: USD 21.250
FINAL OPINION
We are reporting
upon a moderate-size firm, which operates on a satisfactory scale and enjoys a
good clientele. The company is a free zone operator and user so its business
activities are concentrated exclusively inside the geographic area of
"Zona Franca de Colonia" (the Colonia town- based free zone). It
imports goods in transit to be re-shipped and re-exported to other neighbour
countries. It seems to be well run by experienced staff so its future outlook
is estimated to be favourable. As there are no visible assets, and taking into
account also that it is unknown as making use of credit facilities, credit in
general must be regarded as a matter of confidence, and amounts of certain
importance would have to be secured by collateral.
CREDIT QUALITY
ANALYSIS
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Level of riskiness : Standard (
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Credit soundness : Good
·
Credit appraisal : Recommended
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Potential credit limit : USD 50.000
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Assessment : It is considered to be an initial credit
limit
·
Credit surveillance : Subject to
regular review & supervision
Exchange
Rate USD 1 : $ 24.₧
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)