MIRA INFORM REPORT

 

 

Report Date :

12.11.2012

 

IDENTIFICATION DETAILS

 

Name :

AMBAGRO S.A.

 

 

Registered Office :

Calle Cinco S/N y Calle D, Parque Industrial Sector Izamba - Ambato
Tungurahua

 

 

Country :

Ecuador

 

 

Date of Incorporation :

21.07.1993

 

 

Legal Form :

Stock Company

 

 

Line of Business :

Agricultural raw material and inputs trade.

 

 

No. of Employees :

15

 

 

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                            

AMBAGRO S.A.


Calle Cinco S/N y Calle D, Parque Industrial Sector Izamba - Ambato
Tungurahua
ECUADOR

Telephone         : 593-3-2452828, 593-3-2854197
Fax                   : 593-3-2452828

E_Mail              : ambagro@andinanet.net   
Web Site            www.ambagro.com  
Postal Code      : 180116

SUMMARY


Started                          : 1993
Total Employees              : 15
Payments                                 : Prompt
Subscribed Capital           : US$        250.000.-

Sic(s) : 5191

Line of Business: Agricultural raw material and inputs trade.


Financial indicators

As updated financial statements could not be obtained, the company's financial
situation cannot be determined


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            : Since 2001
Last purchase  : 10-2012
Terms          : 30 days
Payment        : Prompt
Notes          :
Credit         : (US$) 35.000
Owes           : -
Due            : Does not Register
Paying Comments: Excellent
Purchase Aver. : (Monthly US$) 3.000
Last purchase amount USD 700,00

Old            : 12 years
Last purchase  : 08-2012
Terms          : 90-120-150 days
Payment        : Prompt
Notes          : checks
Credit         : Open
Owes           : -
Due            : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly US$) 20.000
Last purchase amount USD 8.000,00

Detail of Former Trade References
--------------------------------------------------------------------------------
           Last                                           Credit            Owes
Old        Purch. Payment.    Notes                     (US$)        (US$)
--------------------------------------------------------------------------------
Since 2000 09-10  Prompt      checks                       3.000            None
12 years   09-10  Prompt      checks                        Open            None
10 years   10-10  Prompt      checks                      20.000            None
10 years   01-07  Prompt      checks                      39.000               -
Since 2000 01-07  Prompt      checks                       3.000              63

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

Detail of Bank References

Bank                     : Banco de Guayaquil S.A.
To expire                : US$ 31.044,73

Bank                     : Banco Internacional S.A.
To expire                : US$ 136.895,50

Bank                     : Diners Club del Ecuador S.A. Sociedad Financiera
Credit Card              : Credit Card
To expire                : US$ 3.814,24

Total debt up to August 2012 is US$ 171.754,47

Credit history

Maximum amount of indebtedness registered by the subject during the last 3 years, in the National Financial System was US$ 388.902,73 in October, 2010

Average amount of indebtedness registered by the subject, in the National Financial System:
During 2010 was US$ 337.562,59
During 2011 was US$ 279.943,24
During 2012 was US$ 224.673,87

Income tax corresponding to the last years:
Year 2011: USD 26.512
Year 2010: USD 18.770
Year 2009: USD  8.826
Year 2008: USD 27.452


BANKS

Subject operates with the following banks:

Banco de Guayaquil S.A. ACCT # 7171277
Banco Internacional S.A. ACCT # 5000610602
Banco Pichincha C.A. ACCT # 3145847104


OPERATIONS

Line of Business : Agricultural raw material and inputs trade.

                   Such as insecticides and bio-stimulants.

                   Registered line of business in the Ecuadorian Internal
                   Revenue Service (SRI) is:  AGRICULTURAL INPUTS WHOLESALE AND
                   RETAIL.

                   Registered social purpose in the Ecuadorian
                   Superintendencia de Compaņías is:  agricultural raw
                   materials, machinery, inputs, and finished products import
                   and trade.

Classification according to commercial activity:

Sic: 5191-0000 Farm supplies
         -0100 Fertilizers and agricultural chemicals


Sales

Sales are steady throughout the year

Regional sales territory


Customers

Main customers are: Farmers in general.

The 6 most important customers are:

Camacho Barrero Sixto Wilfrido,  Agropecuarios Figueroa, 
Llagua Rujel Segundo
Byron,  Inca
Paucar Hector Rene,  Camacho Tobar Jenny Carmelina,  Altamirano
Lopez Martha Virginia.


Purchases

Domestic and international purchases

Imports from Germany, Israel, China, Spain, Costa Rica.


National suppliers

- Arilec S.A.
- Brenntag Ecuador S.A.
- Celoplast S.A.
- Latienvases S.A.
- Plastiempaques S.A.
- Profiandina S.A.

Foreign suppliers

- Cat Saigner - Agrar Plantas del Sur (Spain)
- DVA - Iprochem Company Limited (China)
- Industrias Bioquim (Costa Rica)
- Mackteshim Chemicals Works Ltd. (Israel)

Employees: 15 employees

According to the last report issued in December 2010, this company had 12
employees; to date it hired 3 employees more

Location

-  Administrative offices and warehouse are located at Calle Cinco S/N y Calle
   D, Parque Industrial Sector Izamba Ambato Tungurahua, Ecuador


Branches

Subject does not have any branch

-  Two warehouses in San Gabriel and Quito were confirmed
-  Industrial plant has a total area of 1700 M2 and cover and are rented by the
   owner.
-  The exact name, which is legally registered is Ambagro S.A. and not Ambargo
   S.A. as is in the order form


RELATED COMPANIES

Subject does not have any related company.


INSURANCES

Insurance Company:

-Rio Guayas
Compaņia de Seguros y Reaseguros S.A.

Risks            : Explosions. floods and water damage,
Objetive         : Warehouses.

-La Union Compaņia Nacional de Seguros S.A.

Risks            : Fire,
Objetive         :
Merchandise.

-Aseguradora del Sur C. A.

Risks            : Explosions.
Objetive         : Vehicles,


ADMINISTRATION

General Manager          : Juan Fernando Caicedo Mafla TAX:1801352939001
President                : Gabriel Augusto Naranjo Roman TAX:1800590851001
Captain Main.            : Victor Hugo Calero Vallejo TAX:1801091834001
Accounting Assistant     : Tatiana Chavez


CURRICULUM

Juan Fernando Caicedo Mafla

T A X               : 1801352939001
Civil status        : Married
Birth date          : 15/12/1957 -Ecuador
Position            : General Manager
Mercantile Register : Number 817 of 13/08/2012
Simultaneously      : Officially registered in the Ecuadorian Internal Revenue
                      Service (SRI) to engage in business as a natural person
                      since March 3rd 1997.  His registered economic activity
                      is:  pool chemicals wholesale and retail. His registered
                      trade name is: Aqua Star.

Gabriel Augusto Naranjo Roman

T A X               : 1800590851001
Civil status        : Married
Birth date          : 29/06/1949 Ambato Tungurahua-Ecuador
Position            : President
Mercantile Register : Number 505 of 08/08/2012

Victor Hugo Calero Vallejo

T A X               : 1801091834001
Birth place         : Ecuador
Position            : Captain Main.
Mercantile Register : Number 237 of 17/04/2008
Simultaneously      : Officially registered in the Ecuadorian Internal Revenue
                      Service (SRI) to engage in business as a natural person
                      since February 1st 1996. His registered economic activity
                      is:  Pharmaceuticals, medicines retail.  His trade name is
                      Farmacia Presidencial.


LEGAL INFORMATION

Legal Structure              : Stock Company
Constitution date            : 21/07/1993
Authorization                 : Resolution Nš 44
Notary                                       : N° 1, Ambato Tungurahua
Term of duration             : 50 Year, ended on 21/07/2043
Legal Address               : Ambato - Ecuador
Published in                  : Official Gazette dated 05/08/1993

Current Subscribed Capital: US$ 250.000.-Divided to 250.000.- common shares
                            unique series amounting US$ 1.-
Subscribed Initial Capital: US$ 2.000.-
Paid-in Initial Capital: US$ 500.-

Shareholders : 4

-  52,61% 1800590851001 Gabriel Augusto Naranjo Roman
-  26,33% Klever Ernesto Figueroa Espin
-  18,87% 1801352939001 Juan Fernando Caicedo Mafla
-   2,19% Aida Herminia  Hernandez Gavilanez

Legal representation is held by General Manager.

Legal changes

By Resolution Nš 244 on 27/10/2004, notary N° 1, Ambato Tungurahua, published in
the Official Gazette dated 20/11/2004, capital was increased: by USD 30.000,00
national and foreigher direct investment.

By Resolution Nš 204 on 02/07/2007, notary N° 1, Ambato Tungurahua, published in
the Official Gazette dated 09/07/2007, capital was increased: by USD $ 80.000,00

By Resolution Nš 307 on 11/08/2008, notary N° 1, Ambato Tungurahua, published in
the Official Gazette dated 21/08/2008, capital was increased: by USD $ 50.000,00

By Resolution Nš 465 on 23/12/2010, notary N° 5, Ambato Tungurahua, published in
the Official Gazette dated 25/12/2010, capital was increased: by US$. 60.000,00


INFORMATION SOURCES

On 05/11/2012 Miss. Tatiana Chavez, Accounting Assistant, confirmed 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

INTERPRETATION OF RISK LEVEL AND CREDIT RECOMMENDATION

RISK LEVEL

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.54.34

UK Pound

1

Rs.86.96

Euro

1

Rs.69.24

 

 

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.