MIRA INFORM REPORT

 

 

Report Date :

09.11.2012

 

IDENTIFICATION DETAILS

 

Name :

KRONOS LABORATORIOS C. LTDA.

 

 

Registered Office :

A la altura del Km. 8.5 Via a Daule, Av. Principal entre la Calle Segunda y Tercera, lotización San Francisco - Guayaquil
Guayas

 

 

Country :

Ecuador

 

 

Date of Incorporation :

05.06.1978

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Production and sale of pharmaceuticals for human use, such as  medicines, nutritional supplements (vitamins) y other related products

 

 

No. of Employees :

180

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Ecuador

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

ECUADOR - ECONOMIC OVERVIEW

 

Ecuador is substantially dependent on its petroleum resources, which have accounted for more than half of the country's export earnings and approximately two-fifths of public sector revenues in recent years. In 1999/2000, Ecuador suffered a severe economic crisis as a result of a banking crisis with GDP contracting by 5.3%. Poverty increased significantly and Ecuador defaulted on some of its external debt. In March 2000, the Congress approved a series of structural reforms that also provided for the adoption of the US dollar as legal tender. Dollarization stabilized the economy, and positive growth returned in the years that followed, helped by high oil prices, remittances, and increased non-traditional exports. From 2002-06 the economy grew an average of 5.2% per year, the highest five-year average in 25 years. After moderate growth in 2007, the economy reached a growth rate of 7.2% in 2008, in large part due to high global petroleum prices and increased public sector investment. President Rafael CORREA, who took office in January 2007, defaulted in December 2008 on Ecuador's sovereign debt, which, with a total face value of approximately US$3.2 billion, represented about 30% of Ecuador's public external debt. In May 2009, Ecuador bought back 91% of its "defaulted" bonds via an international reverse auction. Economic policies under the CORREA administration - including an announcement in late 2009 of its intention to terminate 13 bilateral investment treaties, including one with the United States - have generated economic uncertainty and discouraged private investment. The Ecuadorian economy slowed to 0.4% growth in 2009 due to the global financial crisis and to the sharp decline in world oil prices and remittance flows. Growth picked up to a 3.6% rate in 2010 and 6.5% in 2011. The government in 2011 signed a $2 billion loan with the state-owned China Development Bank, received $1 billion under a two-year forward sale of an oil contract, negotiated $571 million in financing with China's Eximbank for a new hydroelectric project, and announced plans to obtain further Chinese loans in 2012. China has become Ecuador's largest foreign bilateral lender since Quito defaulted in 2008, allowing the government to maintain a high rate of social spending

Source : CIA


IDENTIFICATION                            

 

KRONOS LABORATORIOS C. LTDA.

A la altura del Km. 8.5 Via a Daule, Av. Principal entre la Calle Segunda y
Tercera, lotización San Francisco - Guayaquil
Guayas
ECUADOR

Telephone         : 593-4-2251445, 593-4-2263947, 593-4-2253143
Fax                   : 593-4-2251446

E_Mail       : asantos@kronoslaboratorios.com , mmendoza@kronoslaboratorios.com 
Web
Site     : www.kronoslaboratorios.com 
Postal
Code  : 09-01-3403


SUMMARY

Started                          : 1978
Total
Employees             : 180
Payments                                 : Prompt
Social Capital               : US$          2.000.-

Sic(s) : 2833 - 2834

Line of Business: Production of pharmaceuticals for human use


Financial indicators

Financial statements could not be obtained, thus financial analysis can not be
carried out

According to the Superintendence of Companies the most important figures as of
December 31st, 2010 are:

Sales:   US$. 9.617.433  
Assets: US$. 5.360.918  
Liabilities: US$. 4.609.609           
Equity:      US$.   751.309

Profit:    US$.   438.008




COMMERCIAL INFORMATION

Commercial Bulletin      : As at 31/08/2012 subject does not register protested checks in the national central of risk


TRADE REFERENCES


Suppliers' trade references are supplied as follows:

Detail of References

Old            : 3 years
Last purchase  : 10-2012
Terms          : 60 days
Payment        : Prompt
Notes          : checks
Credit         : (US$) 35.000
Owes           : -
Due            : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly US$) 20.000
Last purchase value US$ 1.000,00

Old            : 2 years
Last purchase  : 10-2012
Terms          : 30-45 days
Payment        : Prompt
Notes          : checks
Credit         : Open
Owes           : -
Due            : Does not Register
Paying Comments: Excellent
Purchase Aver. : (Monthly US$) 6.000
Last purchase value US$ 2.000,00

Detail of Former Trade References
--------------------------------------------------------------------------------
           Last                                           Credit            Owes
Old        Purch. Payment.    Notes                     (US$)        (US$)
--------------------------------------------------------------------------------
Since 2007 04-12  Prompt      checks                      25.000               -
3 years    07-12  Prompt      checks                      35.000            None
2 years    07-12  Prompt      checks                        Open            None
Since 2000 09-11  Prompt      checks                      35.000            None
Since 2003 08-11  Prompt      checks                        Open            None
Since 2003 02-11  Prompt      checks                        Open            None
11 years   02-11  Prompt      checks                      35.000            None

This company is part of the ''White listing'' of the Internal Revenue Service
(IRS).   It means that tax obligations are promptly met.

Taxpayer status: Special

Detail of Bank References

Bank                     : Banco De La Produccion S.A.
To expire                : US$ 432.662,12

Bank                     : Banco Pichincha C.A.
To expire                : US$ 69.158,78

Bank                     : Diners Club del Ecuador S.A. Sociedad Financiera
Credit Card              : International Credit Card
To expire                : US$ 8.398,43

Total debt up to August 2012 is US$ 510.219,33

Credit history

Kronos Laboratorios C. Ltda.,has no negative references at the National Financial System

Maximum amount of indebtedness registered by the subject -, in the National Financial System was US$ 701.258,58 in March, 2012

Average amount of indebtedness registered by the subject, in the National Financial System:
During 2009 was US$ 196.449,43
During 2010 was US$ 227.420,18
During 2011 was US$ 171.378,17
During 2012 was US$ 414.877,34

Income tax corresponding to the last years:
Year 2011: USD 120.039
Year 2010: USD 123.121
Year 2009: USD  52.704


BANKS

The main banks are:

Banco De La Produccion S.A. ACCT # 2006007577
Banco Pichincha C.A. ACCT # 3116916904
-  Lloyds TSB Bank PLC. ACCT # 514039

 

OPERATIONS


Line of Business : Production and sale of pharmaceuticals for human use, such as
                   medicines, nutritional supplements (vitamins) y other related
                   products; import of raw material of chemical or botanic
                   origin.

                   The line of business registered at the Internal Revenue
                   Services(IRS) is: PRODUCTION OF PHARMACEUTICALS FOR HUMAN USE.


                   Social objective registered at the Superintendence of
                   Companies is: Production, purchase and sale of
                   pharmaceuticals, it could perform import and
                   commercialization activities related to its social
                   objective.

                   It has the ISO 9001 and GMP (Good Manufacturing
                   Practices) certifications

Classification according to commercial activity:

Sic: 2833-0000 Medicinals and botanicals
         -0100 Medicinal chemicals
Sic: 2834-0000 Pharmaceutical preparations
         -0201 Analgesics
         -0801 Antibiotics, packaged
         -9910 Tablets, pharmaceutical
         -0700 Vitamin, nutrient, and hematinic preparations for human use

Commercializes:

- Kro-Femikol
- Kro Bactrol
- Kronvit Mineral
- Kro Salburol
- Kronodryl
- Kronafel


Sales

Sales are steady throughout the year

National sales territory

According to the interviewee, the approximate monthly sales average is US$
1.000.000,00

According to the company's information, the projected sales amount to
December 31st, 2012 is US$ 12.000.000,00


Customers

Main customers are: Private hospitals.  drugstores,  hospitals,


Purchases

Domestic and international purchases

Imports from Germany, Colombia, Spain, Italy, United States, India.


National suppliers


-
Corrugadora Nacional Cransa S.A.
-
Crecicorp S.A.
-
Flexoprint C. Ltda.
-
Latienvases S.A.
- Materias
Quimicas Materquim C.A.
-
Milempro S.A.
-
Multiservicios Graficos Alcivar Grafalci C. Ltda.
-
Plasticos Koch C Ltda
- Proveedores
Quimicos Provequim C.A.
-
Quifatex S.A.
-
Resiquim S. A.
-
Tecnoplast Del Ecuador Cia. Ltda.

Foreign suppliers (29/10/2012)

- Farma International (United States)
- Farmacapsulas (Colombia)
- I.Q.A (Colombia)
- Klaus Evers (Germany)
- Wendt Ceime (Germany)
- West Pharmaceutical (Colombia)

Employees: 180 employees

Location

-  Administrative offices and laboratories are located at A la altura del Km.
   8.5 Via a Daule, Av. Principal entre la Calle Segunda y Tercera, lotización
   San Francisco Guayaquil Guayas, Ecuador


Branches

-  Warehouse is locate at Via a Daule a la altura del Km 8.5 Mz. 4 Solar 49
   Guayaquil Guayas Ecuador


RELATED COMPANIES


The interviewee did not provide any information about it, so it was impossible to check if there is any existing subsidiary.


INSURANCES

Insurance Company:


ADMINISTRATION

Manager General          : Renato Felipe Carlo Paredes TAX:0905440228
Assistant General        : Luis Francisco Carlo Paredes TAX:0908090749001
Manager
President                : Francisca Aglae Paredes Ortega TAX:0904393261
Accountant               : Maria Lourdes Mendoza
Imports'supervisor       : Javier Fernando Alcivar Mendoza TAX:0910659002001
General Manager          : Maria Cristina Bunces
Assistant


CURRICULUM

Renato Felipe Carlo Paredes

T A X               : 0905440228
Civil status        : Married
Birth date          : 13/07/1957 -Ecuador
Position            : Manager General
Mercantile Register : Number 13123 of 25/06/2008
Curriculum          : He is also legally registered as Vice President since
                      August 1st, 2007 with registration number 15997; but it
                      was confirmed that no longer plays this role.

Luis Francisco Carlo Paredes

T A X               : 0908090749001
Civil status        : Married
Birth date          : 25/08/1962 -Ecuador
Position            : Assistant General Manager
Mercantile Register : Number 13401 of 24/07/2003
Simultaneously      : Legally registered at the IRS to
                      perform personal business since October 8, 2001. His
                      registered business activity is: Higher education in
                      general (culminating in obtaining a university degree or
                      equivalent). Has no a trade name.

Francisca Aglae Paredes Ortega

T A X               : 0904393261
Civil status        : Single
Birth date          : 17/12/1925 -Ecuador
Position            : President
Mercantile Register : Number 5908 of 25/03/2008
Simultaneously      : Legally registered at the IRS to perform personal business
                      since July 1st, 1967. His registered business activity is:
                      Pharmaceuticals and medicines retail. No trade name

Javier Fernando Alcivar Mendoza

T A X               : 0910659002001
Civil status        : Married
Birth date          : 20/07/1974 -Ecuador


LEGAL INFORMATION

Legal Structure      : Limited Liability Partnership
Constitution date    : 05/06/1978
Authorization        : Resolution Nº 4520
Notary               : N° 1, Guayaquil Guayas
Term of duration     : 50 Year, ended on 05/06/2028
Legal Address        : Guayaquil - Ecuador
Published in         : Official Gazette dated 23/05/1978

Current Social Capital: US$ 2.000.-
Subscribed Initial Capital: US$ 16.-

Partner :

-  28,00% 0905440228 Renato Felipe Carlo Paredes
-  15,00% 0902884097001
Nicolas Ramon Carlo Mejia
-  15,00% 0904393261 Francisca
Aglae Paredes Ortega
-  14,00% 0908090749001 Luis Francisco  Carlo Paredes
-  14,00% 0902884097001
Nicolas Ramon Carlo Paredes
-  14,00% 0990358753001 Pedro
Nicolas Carlo Paredes

Legal
representation is held by Manager General..

Legal changes

By Resolution Nº 2108 on 16/07/1990, notary N° 25, Guayaquil Guayas, published
in the Official Gazette dated 20/07/1990, capital was increased: amounting US$
1.714,00

Promoters to create the company were Dr. Nicolas Carlo Mejia and wife Mrs.
Francisca Aglae Paredes de Carlo.


PUBLICATIONS

Information regarding subject is supplied as follows

Diario El Comercio of 04/11/2009 Luis Monteverde,Quality Control Chief said that
this lab uses only the 40% production capacity manufacturing 150 products such
as: syrups, tablets, antiseptic powders, anti.inflammatories. 60% of them are
generic products, the rest are own brands.

At present, it produces 75 million tablets of different generic brands and
it  is the third industry in the local market, according its production levels. -


INFORMATION SOURCES

On 24/10/2012 Miss. Maria Cristina Bunces, General Manager Assistant,  declined
financial information as she is not authorized to provide it,  however,
submitted general information.

-Other outside information sources.


Exchange rate


-Since September 9th, 2000, official currency in Ecuador
  is the US$ dollar
-Until then, the currency was the sucre.
  Exchange rate was s/. 25.000 X US$ 1.00




CREDIT RECOMMENDATION

Credit recommendation amounts are assigned according to criteria usually used in
the commercial credit evaluation.

The amounts are based on the assignment of risk percentages to the following
indicators: Trade references, number of employees, legal structures, data base
of protested bills, operations, insurances, variation of net profit, net worth,
working capital and liquidity.


Macroeconomic Information


Interest Rate for the week of             01/10/2012 - 07/10/2012

Ref. Active Rate for Operations     ( % ) 8,17

Ref. Passive Rate for Operations    ( % ) 4,53

Basic Rate of Central Bank          ( % ) 0,20

Legal                               ( % ) 8,17

Maximum conventional                ( % ) 9,33


Inflation Ratio

Yearly Inflation                    ( % ) 5,22 Sep/2012

Monthly Inflation                   ( % ) 1,12 Sep/2012

Accumulated                         ( % ) 4,12 Sep/2012



 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.44

UK Pound

1

Rs.87.00

Euro

1

Rs.69.47

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.