MIRA INFORM REPORT

 

 

Report Date :

12.11.2012

 

IDENTIFICATION DETAILS

 

Name :

DUPOCSA PROTECTORES QUIMICOS PARA EL CAMPO S. A.

 

 

Registered Office :

Vía Duran - Tambo, a la altura del  Km. 1 ½ , S/N - Durán Guayas

 

 

Country :

Ecuador

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

19.05.1987

 

 

Legal Form :

Stock Company

 

 

Line of Business :

Sale of agrochemicals products and pesticides

 

 

No. of Employees :

135

 

 

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                            

 

DUPOCSA PROTECTORES QUIMICOS PARA EL CAMPO S. A.
( DUPOCSA, AGRIPOWER )


Vía Duran - Tambo, a la altura del  Km. 1 ½ , S/N - Durán
Guayas
ECUADOR

Telephone         : 593-4-2809450, 593-4-2809428
Fax                   : 593-4-2809460

E_Mail       : mtoro@dupocsa.com ; c.alvarez@crystalchemical.com.ec , jparrales@dupocsa.com 
Web Site     : www.dupocsa.com 


SUMMARY

Started                          : 1987
Total Employees              : 135
Payments                                 : Prompt
Financial Sit.                 : Acceptable
Economic Sit.                : Regular
Sales                            : US$     16.950.321.- (31/12/2011)
Net worth                      : US$      3.530.580.-
Current profit                  : US$        183.837.-
Subscribed Capital           : US$        500.000.-

Sic(s) : 2875 - 2879 - 5169

Line of Business: Sale of agrochemicals
                 

Financial indicators

According to last financial statement, subject shows an acceptable financial
situation, as indicated in:

** Low Working Capital
** Good Current Liquidity Ratio
** Regular Acid Test Ratio

Economic situation is regular, as reflected in:

** Very High Current Indebtedness Ratio
** Very High Total Indebtedness Ratio
** Good Solvency Ratio

COMMERCIAL INFORMATION

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


TRADE REFERENCES

Other suppliers denied to bring references trade

Detail of References

Old            : 20 years
Last purchase  : 10-2012
Terms          : 45-60 days
Payment        : Prompt
Notes          : checks
Credit         : (US$) 30.000
Owes           : Does not Register
Due            : Does not Register
Paying Comments: Excellent
Purchase Aver. : (Monthly US$) 15.000
Last purchase USD 4.800

Detail of Former Trade References
--------------------------------------------------------------------------------
Last                                           Credit            Owes
Old        Purch. Payment.    Notes                     (US$)        (US$)
--------------------------------------------------------------------------------
Since 1993 07-12  Prompt      checks                      30.000            None
5 years    07-12  Prompt      bank transfer               18.000            None
4 years    01-12  Prompt      bank transfer               16.500            None
Since 1996 02-12  Prompt      invoice                       Open            None
Since 1993 02-12  Prompt      checks                      30.000            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

Below are listed the top 2 banks in which this company has credits in the
National Financial System.

Bank                     : Banco Internacional S.A.
To expire                : US$ 83.826,52

Bank                     : Diners Club del Ecuador S.A. Sociedad Financiera
Credit Card              : International Credit Card
To expire                : US$ 6.258,33
credit card quota        : US$ 20.000,00

Total debt as of August 2012 is USD 105.122,22.

Credit history

Dupocsa Protectores Quimicos Para El Campo S. A. has no negative background in the National Financial System.

Maximum amount of indebtedness registered by the subject -, in the National Financial System was US$ 1.707.287,68 in December, 2011

Average amount of indebtedness registered by the subject, in the National Financial System:
During 2009 was US$   692.066,63

During 2010 was US$   608.871,29
During 2011 was US$ 1.308.960,42
During 2012 was US$   445.733,28

Income tax corresponding to the last years:
Year 2011: USD 95.128
Year 2010: USD 76.844
Year 2009: USD 72.617


FINANCIAL INFORMATION

                    
C O M P A R A T I V E  -  S U M M A R Y
                           ( Figures in US$ Dollars )

                                                            31/12/2011        31/12/2010        30/12/2009
CURRENT ASSETS                    14.958.980         8.725.752         6.908.900
CURRENT LIABILITIES               13.504.838         7.619.757         5.634.508
WORKING CAPITAL                    1.454.142         1.105.995         1.274.392
FIXED ASSETS                       2.375.434         1.256.217         1.123.911
OTHER ASSETS                          68.686           132.015           195.867
LONG TERM LIABILITIES                367.682         1.116.965         1.173.879
NET WORTH                          3.530.580         1.377.262         1.420.291
OPERATING INCOMES                 16.950.321        13.272.919        10.946.884
CURRENT PROFIT(LOSS)                 183.837           353.306           105.934

                            B A L A N C E  S H E
E T
                        INDIVIDUAL FISCAL YEAR SUMMARIZED

ASSETS                                              31/12/2011        31/12/2010
Cash                                                   335.316           605.115
Sundry Debtors                                       5.524.947         3.755.374
Inventory                                            8.481.123         4.069.992
Other Current Assets                                   617.594           295.271
CURRENT ASSETS                                      14.958.980         8.725.752

Net Fixed Asset                                      2.375.434         1.256.217
FIXED ASSETS                                         2.375.434         1.256.217

Other                                                   68.686           132.015
OTHER ASSETS                                            68.686           132.015

TOTAL ASSETS                                        17.403.100        10.113.984

LIABILITIES                                         31/12/2011        31/12/2010
Accounts Payable                                    11.491.732         5.952.325
Notes Payable                                        1.315.602         1.187.676
Other Current Liabilities                              697.504           479.756
CURRENT LIABILITIES                                 13.504.838         7.619.757

Notes Payable                                          367.682         1.116.965
LONG TERM LIABILITIES                                  367.682         1.116.965

Capital & Reserves                                   1.552.481           250.000
Other Reserves                                         762.020           741.088
Accumulated Profits                                  1.032.242            32.868
Current Profit (Losses)                                183.837           353.306
NET WORTH                                            3.530.580         1.377.262

TOTAL LIABILITIES                                   17.403.100        10.113.984

STATEMENTS OF RESULTS                               31/12/2011        31/12/2010
Operating  Income                                   16.950.321        13.272.919
Operating Cost                                     -12.803.926        -9.753.759
OPERATING MARGIN                                     4.146.395         3.519.160

Administration & Sales Expenses                     -3.842.362        -3.408.830
OPERATING RESULT                                       304.033           110.330

Other non Operating Incomes                             24.160           242.977
NON OPERATING RESULT                                    24.160           242.977

Result Before Income Tax                               328.193           353.307
Taxes and Employees Participation                     -144.357                 0
NET PROFIT(LOSS)                                       183.836           353.307

CURRENT PROFIT(LOSS)                                   183.836           353.307

                           ECONOMIC - FINANCIAL RATIOS

                                        31/12/2011     31/12/2010        Average

Working Capital             ( US$ )      1.454.142      1.105.995      1.280.069
Current Liquidity           (Times)           1,11           1,15           1,13
Acid Test                   (Times)           0,48           0,61           0,55
Collection Period Days      ( Days)         117,34         101,86         109,60
Accounts Receivable Turnover(Times)           3,07           3,53           3,30
Inventory Turnover          (Times)           1,51           2,40           1,96
Current Indebtedness        (Times)           3,83           5,53           4,68
Total Indebtedness          (Times)           3,93           6,34           5,14
Solvency                    (Times)           1,25           1,16           1,21
Assets Tying Up             (  %  )          13,65          12,42          13,04
Profitability Over Sales    (  %  )           1,08           2,66           1,87
Profitability Over Assets   (  %  )           1,06           3,49           2,28
Profitability Over Net Worth(  %  )           5,49          34,50          20,00


BANKS

The main banks are:

Banco de Guayaquil S.A.
-  Banco De La Produccion S.A.
-  Banco de Machala S.A. ACCT # 1290001680
-  Banco Del Pacifico S.A. ACCT # 192481-8
-  Banco Internacional S.A.
Banco Pichincha C.A.
Banco Promerica S.A.


OPERATIONS

Line of Business : Sale of agrochemicals products and pesticides

                   Agrochemicals import, export, manufacture and trading
                   such as: pesticides, herbicides, insecticides, fungicides,
                   fertilizers.

                   Import, elaboration, marketing and export of agrochemical
                   products, such as pesticides, herbicides, insecticides,
                   fungicides, fertilizers.

                   Registered line of business in the Ecuadorian Internal
                   Revenue Service (SRI) is:  FUNGICIDES MANUFACTURE.

                   Registered social purpose in the Ecuadorian
                   Superintendencia de Compañías is: every kind of chemicals
                   for industrial and agriculture use manufacture, processing,
                   import, export, packaging, distribution and marketing.

                   50% activities are trading, 48% manufacturing and 2%
                   services.

                   Subject was audited in 2006 by SGS, achieving ISO
                   9001:2000 Certification
                  

Classification according to commercial activity:

Sic: 2875-0000 Fertilizers, mixing only
Sic: 2879-0000 Agricultural chemicals
         -9903 Fungicides, herbicides
         -0106 Insecticides, agricultural or household
         -0100 Insecticides and pesticides
         -0107 Pesticides, agricultural or household
Sic: 5169-0000 Chemicals and allied products
         -9907 Industrial chemicals

Commercializes:

- Biosafe
- Glifonox
- Tol
- Zero
- Cipertox
- Crisodrin
- Crismarom

- Crystal Chemical


Sales

Sales are steady throughout the year

National and international sales territory

Exports to Bolivia, Peru, Colombia, Dominican Republic, Panama, Costa Rica,
Colombia.

According to the interviewed person, the approximate monthly sales average is
US$ 980.000,00


Customers

Main customers are: Line of business' distributors, industry in general.

8 customers International 6 customers National

National Customers: Solagro S.A. Solagremsa,  Reyes Argudo Vinicio,  Febres
                    Cordero
Compania De Comercio S.A.,  Interoc S.A.,  Agripac
                    S.A., 
Incoagro C. Ltda..

International
Customers: ACEITE ADM SAO Bolivia Central Agricola Panama
                         Comercial Silvestre
Peru Croptech Colombia Colombia
                        
Innovagro S.A. Dominican Republic Interagro Bolivia
                         Proyectos Agroindustriales
Panama San Miguel Industrial
                        
Peru


Purchases

Domestic and international purchases

Imports from United States, China, Taiwan, India, Argentina, Colombia,
Guatemala, Panama, Venezuela, Brazil. Germany, Italy,


National suppliers

- Agripac S.A.
- Brenntag Ecuador S.A.
- Disan Ecuador S.A.
-
Laquinsa Andina S.A.
-
Latienvases S.A.
-
Plastiempaques S.A.
- Productora Cartonera S.A.
-
Quimica Industrial Montalvo Aguilar Quimasa S.A.
-
Resiquim S. A.
-
Solvesa Ecuador S.A.
-
Tecnoplast Del Ecuador Cia. Ltda.

Foreign suppliers

-
Crystal Chemical Interamerica (United States)
-
Crystal Chemical Interamerica (Taiwan)
-
Crystal Chemical Interamerica (India)
-
Crystal Chemical Interamerica (Argentina)
-
Gilmore (China)
-
Tecnoquim (Colombia)
-
Westrade (Guatemala)

Employees: 135 employees


Location

Administration offices and warehouses are located at Vía Duran - Tambo, a la
   altura del  Km. 1 ½ , S/N Durán Guayas, Ecuador



Branches

-  A la altura del Km 1.5 Las Avellanas E2-25 y Cipreses, Juncales Quito
   Pichincha Ecuador
Via Chone Km 2 S/N Santo Domingo de Los Colorados Santo Domingo de los
  
Tsachilas Ecuador
Via A San Carlos Km 1.5 S/N Quevedo Los Ríos Ecuador


RELATED COMPANIES

Subject is related with the following company:

Rilmi S.A. T A X : 0991387862001
Agripower S.A. T A X : 0992258667001 Guayaquil Guayas


INSURANCES

Insurance Company:

-
Qbe Seguros Colonial S.A.


ADMINISTRATION

President                                  : Loy L Amack Perez TAX:0920133360
General Manager                       : Juan Manuel Perez Echeverria TAX:0920144011001
Assistant General                      : Maria Mendoza
Manager
Imports Dept Supervisor              : Miriam Toro
Finances Manager                                 : Jose Parrales
Administrator                             : Cinthya Alvarez
Accountant                                : Geovanny Pilalo
Secretary                                  : Mayuri Barzola

CURRICULUM


Loy L Amack Perez

T A X               : 0920133360
Civil status        : Married
Birth date          : 22/10/1957 -United States
Position            : President
Mercantile Register : Number 75 of 01/03/2011

Juan Manuel Perez Echeverria

T A X               : 0920144011001
Civil status        : Married
Birth date          : 31/05/1956 -Ecuador
Position            : General Manager
Mercantile Register : Number 74 of 01/03/2011
Simultaneously      : Officially registered in the Ecuadorian Internal Revenue
                      Service (SRI) to engage in business as individual since
                      April 4th 2008. Registered economic activity is: business
                      advice.  No registered trade name.


LEGAL INFORMATION

Legal Structure      : Stock Company
Constitution date    : 19/05/1987
Authorization        : Resolution Nº 1408
Notary               : N° 4, Guayaquil Guayas
Term of duration     : 50 Year, ended on 19/05/2037
Legal Address        : Duran - Ecuador
Published in         : Official Gazette dated 26/05/1987

Current Subscribed Capital: US$ 500.000.-Divided to 500.000.- common shares
                            unique series amounting US$ 1.-
Subscribed Initial Capital: US$ 80.-
Paid-in Initial Capital: US$ 20.-

Shareholders :

-  99,99% 0920144011001 Juan Manuel Perez Echeverria
-   0,01% 0991387862001 Rilmi S.A.

Legal representation is held by General Manager.

Legal changes

By Resolution Nº 517 on 09/12/2004, notary N° 16, Guayaquil Guayas, published in
the Official Gazette dated 25/01/2005, last capital increase was performed by
45.000,00 national investments.

By Resolution Nº 2075 on 01/03/2005, notary N° 16, Guayaquil Guayas, published
in the Official Gazette dated 11/04/2005, the legal address was modified: from
Guayaquil to Duran, in Guayas province.

By Resolution Nº 4730 on 19/07/2010, notary N° 29, Guayaquil Guayas, published
in the Official Gazette dated 10/11/2010, capital was increased: in USD.
50.000,00

By Resolution Nº 7458 on 30/12/2011, notary N° 29, Guayaquil Guayas, published
in the Official Gazette dated 18/01/2012, capital was increased: in USD.
400.000,00

Initial capital stock in Sucres was S/2.000.000,00

Registered trade name:Dupocsa.

It is known that main shareholder is Mr. Juan Manuel Perez Echeverria.

Registered official name is DUPOCSA PROTECTORES QUIMICOS PARA EL CAMPO S.A.,
however for commercial purposes it uses the name CRYSTAL CHEMICAL a brand of one
of its foreign suppliers.

By Resolution No SC-IMVDJMV-DAYR-G-11-7168, December 23th 2011 the
Superintendency of Companies of Ecuador approved the registration of the Company
on the Stock Market. It currently holds a issued value of USD 5.000.000.


INFORMATION SOURCES

On 31/10/2012 Miss. Cinthya Alvarez, Administrator, 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


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.