MIRA INFORM REPORT

 

 

Report Date :

22.12.2012

 

IDENTIFICATION DETAILS

 

Name :

SETA SA - EXTRATIVA TANINO DE ACÁCIA

 

 

 

 

Registered Office :

Avenida 1º De Maio, 1109 - Bairro Das Rosas 93600-000 - Estância Velha/Rs

 

 

Country :

Brazil

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

14.11.1941

 

 

Legal Form :

Privately Held Corporation

 

 

Line of Business :

Manufacture of Chemicals.

 

 

No. of Employees :

266

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

Litigation :

--

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

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, 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. In 2008, Brazil became a net external creditor and two 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. Rising inflation led the authorities to take measures to cool the economy; these actions and the deteriorating international economic situation slowed growth to 2.7% for 2011 as a whole, though forecasts for 2012 growth are somewhat higher. Despite slower growth in 2011, Brazil overtook the United Kingdom as the world's seventh largest economy in terms of GDP. Urban unemployment is at the historic low of 4.7% (December 2011), and Brazil's traditionally high level of income inequality has declined for each of the last 12 years. Brazil's high interest rates make it an attractive destination for foreign investors. Large capital inflows over the past several years have contributed to the appreciation of the currency, hurting the competitiveness of Brazilian manufacturing and leading the government to intervene in foreign exchanges markets and raise taxes on some foreign capital inflows. President Dilma ROUSSEFF has retained the previous administration's commitment to inflation targeting by the central bank, a floating exchange rate, and fiscal restraint.

Source : CIA


Company name

 

SETA S/A - EXTRATIVA TANINO DE ACÁCIA

 

 

ADDRESSES

 

MAIN ADDRESS:

AVENIDA 1º DE MAIO, 1109 - BAIRRO DAS ROSAS

ZIP CODE/CITY:

93600-000 - ESTÂNCIA VELHA/RS

 

 

PHONE:

51 3561-2233

FAX:

51 3561-2424 / 51 3561-2366

E-MAIL:

teresa.ribas@seta-sa.com.br

WEB SITE:

www.seta-sa.com.br

 

BRANCHES:

 

 

 

ADDRESS:

RUA RUDOLFO SCHMELLING, 163 - CAIEIRA

ZIP CODE/CITY:

95860-000 TAQUARI/RS

PHONE:

51 3653-1155

CNPJ:

89.717.268/0002-33

STATE REGISTER:

142/0005879

 

 

ADDRESS:

AV 1º DE MAIO, 1171 - RINÇÃO DA SAUDADE

ZIP CODE/CITY:

93600-000 ESTÂNCIA VELHA/RS

PHONE:

51 3561-2673

CNPJ:

89.717.268/0003-14

STATE REGISTER:

042/0014136

 

 

LEGAL DATA

 

MAIN ACTIVITIES:

 

MANUFACTURE OF CHEMICALS.

 

LEGAL FORM:

PRIVATELY HELD CORPORATION

 

 

INCORPORATION DATE:

14/11/1941

REGISTER DATE:

12/12/1941

BALANCE SHEET FILING DATE:

31/12

TAX CONTRIBUTOR NUMBER(CNPJ):

89.717.268/0001-52

STATE REGISTER:

042/0002502

 

 

SHARE CAPITAL:

R$ 42.495.194,18

 

BOARD OF DIRECTORS:

 

 

 

CARLOS ALFREDO LEUCK

PRESIDENT DIRECTOR

ROBERTO LUZ

DIRECTOR

DIOGO CARLOS LEUCK

DIRECTOR

 

 

AUTHORIZED USE OF SIGNATURE

 

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

 

SHAREHOLDERS / PARTNERS:

 

 

 

SETAPAR S/A

68,85%

OTHERS

31,15%

 

AFFILIATES / SUBSIDIARIES:

 

 

 

AGROSETA S/A

 

ACQUAQUIMICA LTDA

 

TOPFIX REPRESENTAÇÕES LTDA

 

CURTIDORA ÁQUILA S/A

 

 

 

COMPANY'S BACKGROUND

 

THE SUBJECT WAS ESTABLISHED ON NOVEMBER 14, 1941 AS S/A EXTRATIVA TANINO DE ACACIA TO BE ENGAGED IN THE SAID LINE OF BUSINESS. LATER IT ADOPTED THE ABOVE MENTIONED NAME.

 

ABOUT SETA GROUP:

 

SETA GROUP HAS BEEN LOCATED IN ESTÂNCIA VELHA CITY IN RIO GRANDE DO SUL STATE IN BRAZIL SINCE ITS FOUNDATION IN 1941.

 

AT THIS PLANT, IT IS CENTERED THE ADMINISTRATION OF THE WHOLE GROUP, AS WELL AS THE PRODUCTION OF VEGETABLE TANNIN, CHEMICAL SPECIALITIES, COMMERCIALIZING AND STOCKING OF SETA'S LINE OF PRODUCTS AND ITS PARTNERS.

 

COMPANIES, WHICH BELONG TO THE GROUP ARE:

 

SETA S/A - EXTRATIVA TANINO DE ACÁCIA IS ITS NAME (EXTRACTIVE INDUSTRY OF TANNIN OF ACACIA), IT PRODUCES TANNIN AND OTHER CHEMICAL PRODUCTS TO SUPPLY THE LEATHER MARKET. ITS MAIN OFFICE IS LOCATED IN ESTÂNCIA VELHA CITY IN RIO GRANDE DO SUL STATE (RS) IN BRAZIL. THERE IS A BRANCH IN TAQUARI CITY IN RIO GRANDE DO SUL STATE.

 

MITA LTDA., A JOINT VENTURE COMPOSED OF SETAPAR AND MITSUBISHI CORPORATION, CIA THAT PRODUCES WOODCHIPS TO THE CELLULOSE WORLDWIDE INTERNATIONAL MARKET.

 

ACQUAQUÍMICA LTD. PRODUCES CHEMICAL SPECIALTIES BASED ON TANNIN TO SEVERAL INDUSTRIAL SEGMENTS.

 

RIVER CHIMICA INDUSTRIALE S.P.A. MANAGES THE REPRESENTATIVE AND COMMERCIALIZING MATTERS OF CHEMICAL PRODUCTS.

 

SETAPAR S/A IS THE GROUP'S HOLDING COMPANY.

 

FURTHER DETAILS ARE SO FAR NOT KNOWN.

 

WHEN CONTACTING THE SUBJECT WE INTERVIEWED MISS LURDES, FINANCIAL DEPARTMENT, WHO INFORMED THAT WOULD NOT DISCLOSE ANY KIND OF INFORMATION UNLESS THE INQUIRING PARTY'S NAME WAS DISCLOSED.

 

IF IT IS POSSIBLE TO DISCLOSE THE NAME OF THE INTERESTED SUPPLIER OF THE SUBJECT, WE MAY RESUME OUR CONTACTS AND TRY TO OBTAIN FURTHER INFORMATION.

 

THE DATA CONTAINED HEREIN WERE OBTAINED FROM OUTSIDE SOURCES, OUR DATABASE AND OFFICIAL. NO FURTHER DATA WAS AVAILABLE WITH SEVERAL SOURCES USUALLY INVESTIGATED.

 

PUBLIC INFORMATION:

 

LAWSUITS:

 

 

 

DATE:

COURT OF LAW:

 

1

FEDERAL LAWSUIT

12/08/11

VARA DE ESTÂNCIA VELHA/RS

 

 

FINANCIAL INFORMATION

 

GENERAL BALANCE SHEETS AS OF 31/12/2011, 31/12/2010 AND 31/12/2009.

( FIGURES ARE IN THOUSANDS OF REAIS ).

 

ASSETS

 

 

 

CURRENT:

31/12/2011

31/12/2010

31/12/2009

 

 

 

 

CASH AND BANKS

338

2.766

5.969

CLIENTS

15.027

18.777

17.901

INVESTMENTS

14.041

549

4

RECOVERABLE TAXES

493

385

237

ADVANCE TO SUPPLIERS

163

261

928

INVENTORY

6.799

4.827

6.500

PREPAID EXPENSES

31

101

147

OTHER CREDITS

2.062

322

287

 

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

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

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

TOTAL CURRENT ASSETS

38.954

27.988

31.973

 

LONG-TERM RECEIVABLES:

 

 

 

 

 

 

 

JUDICIAL DEPOSITS

572

47

495

INTERCOMPANY CREDITS

7.828

9.967

 

TRIBUTARY CREDITS

138

176

121

OTHER CREDITS

244

243

243

 

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

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

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

TOTAL LONG-TERM RECEIVABLES

8.782

10.433

859

 

FIXED ASSETS:

 

 

 

 

 

 

 

INVESTMENTS

18.652

19.089

5.536

FIXED ASSETS

25.051

24.285

25.094

INTANGIBLE

1.880

1.577

1.087

 

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

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

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

TOTAL FIXED ASSETS

45.583

44.951

31.717

 

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

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

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

TOTAL ASSETS

93.319

83.372

64.549

 

LIABILITIES:

 

 

 

CURRENT:

31/12/2011

31/12/2010

31/12/2009

 

 

 

 

SUPPLIERS

2.336

1.628

1.942

SOCIAL / LABOR OBLIGATIONS

1.321

1.157

1.050

TRIBUTARY OBLIGATIONS

2.345

1.379

1.836

COMMISSIONS DUE

1.707

968

1.141

ADVANCE FROM CLIENTS

41

4

27

SALES FOR FUTURE DELIVERY

43

324

 

DIVIDENDS

3.181

 

 

OTHER DEBTS

234

612

1.287

 

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

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

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

TOTAL CURRENT LIABILITIES

11.208

6.072

7.283

 

LONG TERM LIABILITIES:

 

 

 

 

 

 

 

LOANS AND FINANCING

10.797

10.797

71.189

TRIBUTARY OBLIGATIONS

12.647

14.960

15.456

PROVISION FOR CONTINGENCIES

1.139

1.222

 

PROV./LOSSES IN INVESTMENTS

1.952

4.261

 

OTHER

 

27

285

 

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

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

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

TOTAL LONG TERM LIABILITIES

26.535

31.267

86.930

 

NET EQUITY:

 

 

 

 

 

 

 

SHARE CAPITAL

42.495

19.956

15.715

CAPITAL RESERVES

 

67.768

87

REVALUATION RESERVES

3.294

3.538

7.125

ACCRUED PROFIT (LOSS)

9.787

-45.229

-52.591

 

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

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

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

TOTAL NET EQUITY

55.576

46.033

-29.664

 

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

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

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

TOTAL LIABILITIES

93.319

83.372

64.549

 


 

PROFIT AND LOSS ACCOUNTS AS OF 31/12/2011, 31/12/2010 AND 31/12/2009.

( FIGURES ARE IN THOUSANDS OF REAIS ).

 

 

31/12/2011

31/12/2010

31/12/2009

 

 

 

 

GROSS SALES

64.005

60.714

57.967

(-) TAXES ON SALES

5.087

5.036

4.799

 

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

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

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

NET SALES

58.918

55.678

53.168

(-) COST OF SOLD GOODS

32.052

30.031

27.834

 

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

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

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

GROSS PROFIT

26.866

25.647

25.334

OPERATING REVENUE (EXPENSE)

-11.785

-23.571

-14.247

FINANCIAL REVENUE(EXPENSE)

-78

-10.902

-11.389

 

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

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

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

OPERATIONAL PROFIT (LOSS)

15.003

-8.826

-302

CONTRIBUTION/INCOME TAX

-2.279

 

 

 

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

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

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

NET PROFIT (LOSS)

12.724

-8.826

-302

 

RATIOS:

31/12/2011

31/12/2010

31/12/2009

 

QUICK RATIO

2,87

 

3,81

 

3,50

 

CURRENT RATIO

3,48

 

4,61

 

4,39

 

ACCOUNTS RECEIVABLE TURNOVER

3,92

TIMES

2,97

TIMES

2,97

TIMES

DAYS' SALES IN RECEIVABLES

91,82

DAYS

121,41

DAYS

121,21

DAYS

INVENTORY TURNOVER

4,71

TIMES

6,22

TIMES

4,28

TIMES

ACCOUNTS PAYABLE PERIOD

26,24

DAYS

19,52

DAYS

25,12

DAYS

RETURN ON ASSETS

,63

TIMES

,67

TIMES

,82

TIMES

SALES TURNOVER ON NET EQUITY

1,06

TIMES

1,21

TIMES

-1,79

TIMES

NET WORTH TIE-UP

,45

 

,53

 

-,85

 

INDEBTEDNESS

,68

 

,81

 

-3,18

 

EQUITY RATIO

59,55

%

55,21

%

-45,96

%

WORKING CAPITAL RATIO

247,56

%

360,94

%

339,01

%

GENERAL SOLVENCY

2,47

 

2,23

 

,69

 

RETURN ON NET EQUITY

22,89

%

-19,17

%

1,02

%

RETURN ON SALES (PROFIT MARGIN)

21,60

%

-15,85

%

-,57

%

GROSS PROFIT MARGIN

45,60

%

46,06

%

47,65

%

OPERATIONAL RESULT

25,46

%

-15,85

%

-,57

%

SALES TURNOVER ON LIABILITIES

5,26

TIMES

9,17

TIMES

7,30

TIMES

FOREIGN CURRENCY ON ASSETS

 

 

 

 

 

 

FOREIGN CURRENCY ON LIABILITIES

 

 

 

 

 

 

 


 

EXCHANGE RATE:

 

 

US$ 1,00 = R$ 2,09

 - OFFICIAL RATE ON 18/12/2012

US$ 1,00 = R$ 1,87

 - OFFICIAL RATE ON 31/12/2011

US$ 1,00 = R$ 1,66

 - OFFICIAL RATE ON 31/12/2010

US$ 1,00 = R$ 1,74

 - OFFICIAL RATE ON 31/12/2009

 

COMMENTS ON THE FINANCIAL INFORMATION:

 

FOLLOWS ATTACHED WORKSHEET WITH MAIN FINANCIAL RATIOS

 

THE FIGURES AVAILABLE SHOW A SATISFACTORY FINANCIAL STANDING. IT HAS HIGH LIQUIDITY AND GOOD WORKING CAPITAL, AS WELL AS ACCEPTABLE LEVEL OF INDEBTEDNESS. IT ALSO SHOWS GROWING SALES AND POSTED PROFIT, REVERSING THE PRIOR YEAR’S LOSS.

 

REAL ESTATE:

 

   OWNED PREMISES ARE VALUED AT R$ 16.140.000,00

 

DETAIL OF OWNED REAL ESTATE:

 

QUANTITY:

1

TYPE:

PLANT

TOTAL AREA:

39.018,80 SQ MTS

VALUE:

R$ 11.085.000,00

ADDRESS:

ESTÂNCIA VELHA PLANT

 

 

QUANTITY:

1

TYPE:

PLANT

TOTAL AREA:

169.544,98 SQ MTS

VALUE:

R$ 11.210.900,00

ADDRESS:

TAQUARI PLANT

 

 

QUANTITY:

1

TYPE:

OTHERS

TOTAL AREA:

55.540 SQ MTS

VALUE:

R$ 4.084.700,00

ADDRESS:

ESTÂNCIA VELHA PLANT

 

 

QUANTITY:

1

TYPE:

OTHERS

TOTAL AREA:

10.000 SQ MTS

VALUE:

R$ 1.942.400,00

ADDRESS:

ESTÂNCIA VELHA CHEMICAL BRANCH

 

VEHICLES:

 

   OWNED VEHICLES ARE VALUED AT R$ 368.000,00

 

MACHINES:

 

   NOT AVAILABLE

 

 

INSURANCE

 

THE COMPANY ADOPTS THE POLICY TO CONRACT INSURANCE COVERAGE FOR ASSETS SUBJECT TO RISKS BY AMOUNTS CONSIDERED SUFFICIENT TO COVER POSSIBLE LOSES, CONSIDERING THE NATURE OF ITS ACTIVITY.

 

 

BANKING REFERENCES

 

 

BRANCH/PHONE:

CITY:

BANCO ITAÚ S/A

51 3594-1004

NOVO HAMBURGO/RS

BANCO BRADESCO S/A

51 3594-1132

NOVO HAMBURGO/RS

BANCO SANTANDER (BRASIL) S/A

51 3562-2888

ESTÂNCIA VELHA/RS

 

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").

 

 

ACTIVITIES COMMENTS

 

SUBJECT IS ENGAGED IN THE MANUFACTURE OF CHEMICALS FOR LEATHER TANNING.

 

IMPORT AND EXPORT:

 

   IMPORTS FROM:

NOT AVAILABLE.

 

   EXPORTS TO:

ITALY, MEXICO, UNITED STATES, INDIA AND CHINA.

 

MAIN CLIENTS:

 

 

 

 

 

DOMESTIC CLIENTS:

 

PHONE:

A.P. MULLER S/A

 

51 3562-1000

CURTIDORA NOSSA SENHORA APARECIDA LTDA

 

35 3531-1775

INDÚSTRIAS REUNIDAS IRMÃOS SCARABEL LTDA

 

19 3651-4122

WYNY DO BRASIL IND. E COM. DE COUROS LTDA

 

43 3258-3635

 


 

STAFF:

 

THE COMPANY HAS: 266 EMPLOYEE(S)

 

 

CONCEPT AND FULFILMENT

 

THE SUBJECT IS AN OLD-ESTABLISHED COMPANY, OPERATING SINCE 1966. SO FAR IT HAS A CLEAR TRADE HISTORY AND NO PAYMENT PROBLEMS ARE NOTED.

 

THE COMPANY HAS TRADE RELATIONS WITH SEVERAL SUPPLIERS IN BRAZIL. THE SUPPLIERS EXTEND CREDIT FACILITIES TO THE SUBJECT IN TERMS AND AMOUNTS ACCORDING TO THE COMPANY'S NEEDS AND SO FAR NO PAYMENT PROBLEMS ARE NOTED.

 

THE LAWSUIT REPORTED IS NOT RELATED WITH TRADE DEBT. IT IS RELATED TO TAX DEBT THAT FOR ANY REASON THE COMPANY HAS NOT YET PAID. NEVERTHELESS WE POINT OUT THAT THE SAID LAWSUIT DOES NOT AFFECT THE COMPANY'S TRADE REPUTATION.

 

MAIN SUPPLIERS:

 

 

 

 

 

DOMESTIC SUPPLIERS:

 

PHONE:

ABADIR DISTR. E IMPORT. DE ROLAMENTOS E PEÇAS

 

1 3477-1650

DEMUTH MÁQUINAS INDUSTRIAIS LTDA

 

51 3587-4011

PEDRAS BRANCAS INDÚSTRIA QUÍMICA LTDA

 

54 3228-1377

 

PAYMENT HISTORY:

 

6 SUPPLIERS REPORTED PAYMENTS:

   TOTAL AMOUNT:  R$ 231.184,00

 

AMOUNT OF INVOICES PAID: 71

TOTAL OF PROMPT PAYMENTS: 100%

HIGHEST INVOICE: R$ 12.012,00

HIGHEST CREDIT: R$ 21.560,00

 

OUTSTANDING INVOICES DUE WITHIN THE NEXT 60 DAYS:

 

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

SUPPLIERS:

INVOICES:

TOTAL AMOUNT:

DUE WITHIN 30 DAYS

3

5

R$ 27.570,00

DUE WITHIN 60 DAYS

1

1

R$ 1.675,00

ALL

3

6

R$ 29.245,00

 

 

FINAL OPINION

 

BASED ON THE GENERAL INFORMATION AVAILABLE IT IS BELIEVED THAT GOOD TRADE RELATIONS MAY BE ESTABLISHED. CREDIT FACILITIES MAY BE EXTENDED WITHIN TERMS AND AMOUNTS ADEQUATE TO THE COMPANY'S FINANCIAL STRENGTH.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.08

UK Pound

1

Rs.89.53

Euro

1

Rs.72.77

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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%)

 

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.