MIRA INFORM REPORT

 

 

Report Date :

24.09.2012

 

IDENTIFICATION DETAILS

 

Name :

ORICA CHEMICALS CHILE S.A.

 

 

Registered Office :

Calle Dos 9463, Loteo Industrial Américo Vespucio – Quilicura, Santiago, XIII Region Metropolitana

 

 

Country :

Chile

 

 

Date of Incorporation :

2001

 

 

Legal Form :

Private Stock Company

 

 

Line of Business :

Chemical industry

 

 

No. of Employees :

120

 

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Chile

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

CHILE - ECONOMIC OVERVIEW

 

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports account for more than one-third of GDP, with commodities making up some three-quarters of total exports. Copper alone provides one-third of government revenue. During the early 1990s, Chile's reputation as a role model for economic reform was strengthened when the democratic government of Patricio AYLWIN - which took over from the military in 1990 - deepened the economic reform initiated by the military government. Since 1999, growth has averaged 4% per year. Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, which took effect on 1 January 2004. Chile claims to have more bilateral or regional trade agreements than any other country. It has 59 such agreements (not all of them full free trade agreements), including with the European Union, Mercosur, China, India, South Korea, and Mexico. Over the past seven years, foreign direct investment inflows have quadrupled to some $15 billion in 2010, but foreign direct investment had dropped to about $7 billion in 2009 in the face of diminished investment throughout the world. The Chilean government conducts a rule-based countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and allowing deficit spending only during periods of low copper prices and growth. As of November 2011, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $18 billion. Chile used this fund to finance fiscal stimulus packages during the 2009 economic downturn. In December 2009, the OECD invited Chile to become a full member, after a two year period of compliance with organization mandates, and in May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD. The economy started to show signs of a rebound in the fourth quarter of 2009, and GDP grew 5.1% in 2010 and 6.5% in 2011. Chile achieved this growth despite the 8.8 magnitude earthquake that struck in February 2010, which was one of the top 10 strongest earthquakes on record. The earthquake and subsequent tsunamis it generated caused considerable damage near the epicenter, located about 70 miles from Concepcion - and about 200 miles southwest of Santiago.

Source : CIA


Company name


ORICA CHEMICALS CHILE S.A.
( QUIMICA ANGLO CHILENA )

T A X : 96.959.480-3

Calle Dos 9463, Loteo Industrial Américo Vespucio - Quilicura
Santiago XIII Region Metropolitana
CHILE

Telephone         : 56-2-3848100, 56-2-3848201
Fax                   : 56-2-6231987
Web Site           : www.oricachemicals.com  
P.O.Box           : 176-D - Santiago-1
Postal Code      : 8710031


SUMMARY

Started                         : 2001
Total Employees            : 120
Payments                                 : Prompt
Capital                          : 000's$      9.210.339.-

Sic(s) : 2819 - 5169

Line of Business: Chemical industry.
                 

EVALUATION

Interpretation at the end of the report.

Credit Recommendation

                                                000's Pesos   000's US$ dollars    000's Euros
Conservative value :                  520.000               1.019                 813
Liberal value      :                       572.000               1.121                 894

If additional information is received or present information is rectified, this
recommendation may be modified.


Financial indicators

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

COMMERCIAL INFORMATION

Commercial Bulletin      : As at 14/09/2012 subject does not register protested
                                    checks, bank drafts nor promissory notes in the
                                    commercial information bulletin

Labor Bulletin                : As at 14/09/2012 does not register labor infringements

Previsional Bulletin        : As at 14/09/2012 does not register pension fund's infringements

Consolidated delinquency : As at 14/09/2012, subject does not register any  delinquent bill


TRADE REFERENCES

Suppliers' trade references are supplied as follows:

Detail of References

Old            : Since 2001
Last purchase  : 04-2012
Terms          : 60 days
Payment        : Prompt
Notes          : invoice
Credit         : (000'sUS$) 65.000
Owes           : (000'sUS$) 50.000
Due            : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly 000's$) 9.000

Old            : Since 2001
Last purchase  : 04-2012
Terms          : 45 days
Payment        : Prompt
Notes          : bank transfer
Credit         : (000'sUS$) 2.000
Owes           : -
Due            : Does not Register
Paying Comments: Good

Old            : Since 2008
Last purchase  : 04-2012
Terms          : 60 days
Payment        : Prompt
Notes          : current account
Credit         : (000'sUS$) 10.000
Owes           : -
Due            : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly 000's$) 2.500

Detail of Former Trade References
--------------------------------------------------------------------------------
           Last                                           Credit            Owes
Old        Purch. Payment.    Notes                     (000'sUS$)        (000'sUS$)
--------------------------------------------------------------------------------
Since 2001 11-11  Prompt      invoice                          -               -
Since 2008 12-11  Prompt      current account             10.000          10.000
Since 2001 12-11  Prompt      bank transfer                2.000               -
Since 2001 09-10  Prompt      bank transfer                2.000            None
Since 2001 03-10  Prompt      bank transfer                2.000            None
Since 2001 02-10  Prompt      invoice                       Open            None
Since 2001 11-08  Prompt      invoice                       Open               -
Since 2001 11-08  Prompt      bank transfer                2.000               -
Since 2001 09-08  Prompt      bank transfer                5.000               -
Since 2001 09-08  Prompt      invoice                       Open               -
Since 2001 07-07  Prompt      invoice                       Open               -
Since 2001 07-07  Prompt      bank transfer                2.000            None
Since 2001 12-06  Prompt      order form                   1.000               -
Since 2001 12-06  Prompt      invoice                       Open               -
Since 2001 07-06  Prompt      invoice                       Open               -
Since 2001 06-06  Prompt      order form                   1.000               -
Since 2001 01-06  Prompt      order form                    Open               -
Since 2001 01-06  Prompt      invoice                       Open               -
Since 2001 05-05  Prompt      invoice                       Open               -
Since 2001 05-05  Prompt      order form                    Open               -
Since 2001 02-05  Prompt      order form                    Open               -
Since 2001 01-05  Prompt      invoice                       Open               -
2 years    10-03  Prompt      checks                        Open               -
1 year     09-03  Prompt      checks                        Open               -

During the last 6 months, the account holder credit history shows 48 credit
review inquiries requested by mining, transportation companies, banks, industry.

The account holder credit report reflects no delinquent payment history, no

protests, and no social security and/or work infringements as of the date of

this report.


AVERAGE PAYMENTS IN CHILE

International Risk and Payment Review reported in June 2011

The local delays in payment average 0-1 month.

BANKS


Subject operates with the following banks:

-  Banco Bice
-  Banco de Chile
-  Banco de Credito e Inversiones
-  Banco Santander Chile


OPERATIONS


Line of Business : Chemical industry. Elaborarion, sale and import of chemical products for industrial areas (construction, celluloses, forest, tannery, shoes, paints, etc.)
                  
CERTIFICATION ISO 9001-2000 and OHSAS 18001:2007


Classification according to commercial activity:

Sic: 2819-0000 Industrial inorganic chemicals
         -0201 Boric acid
         -9901 Catalysts, chemical
Sic: 5169-0000 Chemicals and allied products

Commercializes:

- NOBEL ENTERPRISES
- JOHNSON MATHEY
- US BORAX
- STEPAN
- LUZAQNAC
- OURO BRANCO
- LUCITE
- 3M, etc.

Subject is considered as a large company in this line of business, high
competition


Sales

Sales are steady throughout the year

100% wholesalers

National and international sales territory

Products are sold

National: 95%.

International: 5%.

Exports to Germany, United Arab Emirates, Italy, Japan and Uruguay.

of Exports obtained from Customs'National Service

Country                                     %last year   %Accum.
-------------------------------------------------------
Japan                                       81,24     89,45
Uruguay                                    10,66      0,00
Italy                                          5,59      6,86
Germany                                  1,75      3,18
United Arab Emirates                  0,76      0,48


Historical registries

Total       2010 = 000's$ 116.005             Accumulated 2011 = 000's$ 200.796
Total       2009 = 000's$ 1.520.490
Total       2007 = 000's$ 1.022.483
Total       2006 = 000's$ 205.547
Total       2005 = 000's$ 78.459
Total       2004 = 000's$ 86.923
Total       2003 = 000's$ 45.116


Customers

Main customers are: Mining companies,  forest industry,  laboratories,  footwear
industry,  laboratory of cosmetics.

The 12 most important customers are:

BHP Billiton Chile S.A.,  Anglo American Chile Ltda.,  Sindelen S.A.,  Nestle
Chile S.A.,  Unilever Chile S.A.,  Compañia Siderurgica Huachipato S.A.,
Empresas CMPC S.A.,  Empresa Nacional de Energia Enex S.A.,  Clorox Chile S.A.,
Petrobras Chile Lubricantes S.A.C.,  Cia. Minera Antamina S.A.,  Hexion Quimica.


Purchases

Places orders with multiple suppliers

National: 30%

International: 70%

Purchase conditions: Direct collection.

Imports from Spain.

of Imports obtained from Customs'National Service

Country                            %last year   %Accum.
-------------------------------------------------------
Spain                                  100,00      0,00


Historical registries

Total       2010 = 000's$ 9.141
Total       2009 = 000's$ 10.382.316
Total       2007 = 000's$ 9.880.084
Total       2006 = 000's$ 6.507.665
Total       2005 = 000's$ 4.202.098
Total       2004 = 000's$ 4.387.090
Total       2003 = 000's$ 3.676.860


Main suppliers

- 3M Chile S.A.
- Brenntag Chile Comercial e Industrial Limitada
- Dow Quimica Chilena S.A.
- Greif-Cogas S.A.
- Oxiquim S.A.
- Plasticos Haddad S.A.


Employees

 

120 employees


Location

-  Industrial plant and management offices located at Calle Dos 9463, Loteo
   Industrial Américo Vespucio Quilicura Santiago, Chile, industrial area,
   secondary street of normal traffic, construction in good conditions


Branches


-  Commercial offices at Avda. Antonio Rendic 6990, Fono (55) 483239,
   Antofagasta Chile


RELATED COMPANIES


Subject is related to the following companies:

National

-  Andean Mining & Chemicals Ltda. Agencia en Chile T A X 59014520-3 Quilicura
   Santiago (Inactive)
-  Active Chemicals Chile S.A. T A X 96658510-2 Quilicura Santiago (Inactive)

International

-  Orica Chemicals Peru S.A.C., Peru
-  Orica Chemicals Colombia S.A., Colombia
-  Orica Chemicals Argentina S.A., Argentina
-  Orica Brasil / Productos Quimicos Ltda,, Brazil


FIXED ASSETS

Real estates


Subject does not register real estates

Vehicles

Owns vehicles for the company's use

20 delivery vans (years 2008-2010, via leasing 80% and 20% own vehicles.)

Machinery & Instalations

Equipments and machinery, not specified

INSURANCES

Subject is insured, but name of insurance company is not disclosed

ADMINISTRATION

General Manager          : Roberto Hill Planella
Operations Manager       : Felipe Rivera
Adm. & Finances Manager  : Javier Holgado
General Accountant       : Gerardo Ferreira
Foreign Trade Supervisor : Ana María Montabone


LEGAL INFORMATION

Legal Structure      : Private Stock Company
Constitution date    : 26/06/2001. Registered on leaf 16.424 Nr 13.241, Real
                                    Estate Trade Register, year 2001, under the business name
                                    QUIMICA ANGLO CHILENA S.A. Trade style Q.A.C. S.A.
Notary               : Fernando Alzate Claro, Santiago
Term of duration     : Indefinite
Legal Address        : Santiago - Chile
Published in         : Official Gazette dated 29/06/2001 page Nº 37

Current Social Capital: 000's$ 9.210.339.-Divided to 24.400.- registered shares
                        unique series
Social Initial Capital: 000's$ 354.378.-

Shareholder : 2

-  99,00% 95467000-7 Orica Chile S.A.
-   1,00% Orica Australia

Power of attorney held by General Manager.

Legal changes

Public Deed dated 23/08/2004, notary Fernando Alzate Claro, Santiago, published
in the Official Gazette dated 02/09/2004 page N° 12, statutes were modified:
1)Preferences and differences in shares' series were eliminated. Capital was
divided into 1.200 no par value shares of one series.

2)Article V of statutes was replaced, stating that capital is $354.378.797
divided into 1.200 no par value shares of one series, subscribed & paid as
established in transitory articles of the statutes.

Public Deed dated 25/02/2005, notary Fernando Alzate Claro, Santiago, published
in the Official Gazette dated 08/04/2005 page N° 24, statutes were modified:
1)Articles VI, VII, VIII, IX, XV, XXII of statutes were modified in relation to
board of directors and duration in their positions, frequency of board of
directors' meetings, its constitution and  agreements and sessions of meetings
of shareholders, and

2) Article XVI of statutes was modified in relation to voting in meetings of
shareholdeers.

Public Deed dated 31/05/2006, notary Antonieta Mendoza Escalas, Santiago,
published in the Official Gazette dated 09/06/2006 page N° 26, corporate name
was modified: QUIMICA ANGLO CHILENA S.A. was replaced by ORICA CHEMICALS CHILE
S.A.

It can also use the trade styles QUIMICA ANGLO CHILENA "QAC"., ORICA CHEMICALS
LATIN AMERICA., ORICA CHEMICALS., ORICA CHEMNET.,ORICA., OCLA., ACTIVE and
ACTIVE CHEMICALS.

Public Deed dated 07/08/2007, notary Antonieta Mendoza Escalas, Santiago,
published in the Official Gazette dated 29/08/2007 page N° 29, statutes were
modified: it was unanimously agreed to replace articles VI and IX of statutes in
relation to term of duration and positions of the board of directors.

Public Deed dated 10/11/2011, notary Eduardo Avello Concha, Santiago, published
in the Official Gazette dated 28/11/2011, capital was increased: from
$354.378.797 divided into 1.200 nominal shares, to the amount of
$9.210.339.309.- divided into 24.400 nominal shares. The increase will be made
through the issue of 23.200 shares, completely subscribed by "Orica Chile
S.A.".-

IMPORTANT NOTE

Subject was created as from the division of the company "Inversiones Q.A.C.
S.A.", taxpayer N° 84.114.100-8, established by public deed on December 30, 1974
and registered on leaf 1.642 N°956 of the Santiago Trade Register, year 1975.

INFORMATION SOURCES

On 28/05/2012 Mr. Gerardo Ferreira, General Accountant,  declined financial
figures,  however, submitted the data shown in this report.

-Other outside information sources.

Exchange rate

-As at 29/05/2012 $510,26 Per US$

INTERPRETATION OF RISK LEVEL AND CREDIT RECOMMENDATION

RISK LEVEL

Credit risk assessment is ordered as follows: 1 Minimum Risk, 2 Low Risk, 3
Middle Risk, 4 Middle High Risk, 5 Significant Risk, 6 High Risk.

CREDIT RECOMMENDATION

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

The amounts are based on the risk percentages'assignment to the following
indicators:  Trade references, number of employees, legal structure, protested
bills, labor & welfare infringements, unpaid bills, operations, insurances, net
profit, net worth, working capital and liquidity variations.

INTERPRETATION OF PAYMENT SCORING

The Scoring is arranged as follows: 0 to 40 Delays, 41 to 60 Slow, 61 to 80
Moderate, 81 to 100 Prompt



 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.90

UK Pound

1

Rs.87.60

Euro

1

Rs.70.00

 

 

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.