MIRA
INFORM REPORT
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Report Date : |
04.07.2007 |
IDENTIFICATION DETAILS
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Name : |
RIEDER AND CIA. S.A.C.I. |
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Registered Office : |
Avda. Artigas Nro. 1945 |
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Country : |
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Date of Incorporation : |
1964 |
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Legal Form : |
Private – Owned Corporation (closed stock company) |
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Line of Business : |
Importer and Saler of motor vehicles in general cars, buses, trucks
and lorries and other commercial vehicles. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 500 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME AND ADRESS
Company's Style : RIEDER & CIA. S.A.C.I.
Trade Name :
Same
Trading Address : Av. Artigas 1945
Town :
Mailing Address :
Telephone :
(595-21)214 114
Telefax :
(595-21)212 021
E-Mail :
rieder@rieder.net.py
URL / Website :
www.rieder.com.py
Sales & Show rooms : - Mariscal Lopez y Juan de Mena,
Asunci¢n
- Mariscal
Lopez 47 esq. Cnel. Bogado
Country :
BACKGROUND INFORMATION & BUSINESS PROFILE
LEGAL STRUCTURE
Legal status : Privately-owned Corporation
(closed stock company)
Formation Date : 1964
Approval of Charter & Bylaws :
30.06.1964, Government Decree 5.880
Public Commercial Registry : 07.07.1964, #192
Period of Legal Life : 100 years
HISTORICAL
It is a successor firm to
CAPITAL STRUCTURE & OWNERSHIP: (figures in G/.
Paraguayan guaranies)
AUTHORIZED
NOMINAL CAPITAL :
G/.60.000.000.000
ISSUED
CAPITAL : G/.48.615.000.000
PAID-UP
CAPITAL : G/.48.615.000.000
Authorized capital is divided into
bearer and ordinary shares of common stock G/.1.000.= par value. It is a
privately-owned company whose shares are no traded on the Stock Exchange, and
whose controlling shareholders are the members of Management. The Rieder family controls approximately 90% of
subject's capital
MANAGEMENT: - Board of Directors:
President Lic.
Juan Rodolfo RIEDER
Vice-President Francisco
RIEDER
Directors Carlos Enrique RIEDER
Lic. Hilda Judith RIEDER
Internal Auditor Dr.
Arnoldo ZAGAIB
No negative occurrences on subject's
principals are recorded.
AUTHORIZED SIGNATURES: the President and/or two Directors together
TYPE OF BUSINESS
TRADER - IMPORTER - WHOLESALER - RETAILER
MAIN BUSINESS LINE
MOTOR VEHICLES, FARM MACHINERY,
ELECTRONICS, ISP OPERATOR
PRINCIPAL ACTIVITIES
Subject is engaged in the import and
sale of motor vehicles in general, cars, buses, trucks and lorries and other
commercial vehicles, automotive spare parts, original equipment, supplies,
replacements and accessories, farm machinery and equipment, electrical and
telephone equipment and materials, electronic equipment and systems, etc. In
addition, it also operates as an ISP/Internet Services Provider, by rendering
internet access services and a wide range of websites design and hosting
services, business portal, e-commerce and e-business solutions and consulting
services, by means of its own network named RIEDER-INTERNET.
It is representative-agent and importer
for Paraguay of RENAULT,
Beginning activity : 1934
Company Size :
Medium-size
Business trend : Stable
Present situation :
Operating normally
Outlook :
Favourable
Organization :
Average. Nor major problems observed.
Reputation :
Long established and well-known family-run 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,
and well defined corporate policy
SALES & TRADING DETAILS
Annual Sales :
USD 45.000.000
Sales trend :
upwards as compared with previous year figures
Selling method :
60 % wholesale - 40 % retail sale
Selling Term :
Retailing sale is 100 % cash. Wholesaling 20 % cash, 80 % on a 30-day open
acct.
credit basis
Sales Seasonality : stable throughout the year
Distribution channels &
points of sale : Sales are direct through its own salespeople.
Sales target :
Sells to other wholesalers, distributors, retailers, industrial &
manufacturing sectors, to
the final consumer, etc. and it also bids for
State and municipal contracts.
Sales branches : Yes, it has 5 sales branches in
Overseas agencies,
branches or r
representative offices : Nil
Market share :
It is considered to be of medium importance within its market segment.
New products or
Services : under study
Market situation : competitive
Advertising means : Press, radio and T.V. advertising,
specialised publications, fairs & expositions
Purchases :
Local sources: 30 % - Overseas
(imports): 70 %
Imports from :
Imports in USD : 15.000.000 per year
Terms imports : L/C, CAD terms, drafts over 90 to 120 days, etc.
STAFF
: 50
BANKERS
Citibank N.A.;
ABN-Amro Bank ;
Banco Corporacion S.A. ;
Lloyds TSB Bank PLC ;
Banco de
INSURERS
Mundo Seguros
TANGIBLE FIXED ASSETS, INVESTMENTS, ETC.
PHYSICAL ASSET HOLDINGS
Owner of premises at the captioned
address where its administrative offices, sales & showroom, and other
facilities are located.
Physical inspection of premises
Condition :
modern
Equipment & facilities :
adequate
Location : subject's premises are located in an urban commercial
section in downtown
Access ways :
adequate
Parking space :
No
Works under construction: No
Works under project :
No
RELATED COMPANIES/SHAREHOLDINGS
Nil
TAX ID RIEA-646540S
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 LCs. and credit lines in USD
for imports until low to mid 6 figures. Local currency working capital loans
and secured credit facilities for receivables discounting until mid 9 figures,
with good experience reported to date. Securities: Accts. receivable &
inventories
Good credit history information and
banker's opinion.
TRADE REFERENCES SURVEY: (in G/.
Paraguayan guaranies)
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Supplier |
Supplies |
Supplies |
Supplies |
Containers |
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Known since |
Years |
Years |
Years |
Years |
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Latest
Purchase Date |
May/2007 |
May/2007 |
May/2007 |
May/2007 |
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Latest Purchase
Amount |
G/. 44.177.813 |
G/. 38.231.103 |
G/. 36.332.171 |
G/. 38.104.210 |
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Highest |
G/. 52.221.385 |
G/. 47.649.133 |
G./ 42.331.628 |
G/. 44.332.415 |
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Buying
terms |
30-day O/A |
30-day O/A |
30-day O/A |
30-day O/A |
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Paying
record |
PROMPT |
PROMPT |
PROMPT |
PROMPT |
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NSF
checks |
NO |
NO |
NO |
NO |
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Delayed
payments |
NO |
NO |
NO |
NO |
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Non-payments |
NO |
NO |
NO |
NO |
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Experience |
GOOD |
GOOD |
GOOD |
GOOD |
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Rating |
GOOD |
GOOD |
GOOD |
GOOD |
PAYMENT ANALYSIS
Type of suppliers :
local trade & service suppliers
Payment patterns :
Good bill-pay habits, within agreed terms
Commercial morality : GOOD - Commitments are
respected
Repayment capacity : Moderate
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.
Past experience : in files since 1995. Good track record.
Maximum credit figure reported : USD 3.715.200
FINAL OPINION
We are reporting upon an important and
well known family-owned company which is considered to be a successful business
operation and a well organized company. It operates on a good scale and enjoys
an ample and well diversified clientele of important companies in different
fields. It is also a financially sound company, well run by experienced staff
and its future outlook is favourable.
The company has a generally prompt
payment record and the operating history appears clear. National banking and
commercial references are favourable and no adverse information was learned, so
the firm appears to be operating normally. Therefore, so business connections
with this company are suitable, and moderate credits are recommended under
normal supervision.
CREDIT QUALITY ANALYSIS
Credit rating :
A - Credit-worthy
Level of riskiness : Standard (Notmal)-risk buyer
Credit soundness :
Good
Credit appraisal :
Recommended
Potebtial credit limit : USD 500.000
Assessment :
Considered to be an initial credit limit
Credit surveillance : Subject to regular review &
supervision
Exchange Rate USD 1 : G/. 5.315. =
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/normal. |
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%)