MIRA INFORM REPORT

 

 

Report Date :

23.04.2013

 

IDENTIFICATION DETAILS

 

Name :

QUIMICA ARISTON DEL ECUADOR COMPANIA LIMITADA

 

 

Registered Office :

Joaquín Mancheno OE1 - 209 y Francisco García, a la altura del Km 6 ½ Panamericana Norte, Sector de Carcelen - Quito  Pichincha 

 

 

Country :

Ecuador

 

 

Financials (as on) :

31.12.2012       

 

 

Date of Incorporation :

14.06.1972

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Manufacturing of pharmaceutical products for humans

 

 

No. of Employees :

250 Approximately

 

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 :

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

(31.03.2011)

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     

QUIMICA ARISTON DEL ECUADOR COMPAÑIA LIMITADA

Joaquín Mancheno OE1 - 209 y Francisco García, a la altura del Km 6 1/2
Panamericana Norte, Sector de Carcelen - Quito
Pichincha
ECUADOR

Telephone         : 593-2-2470984, 593-5-2627090, 593-7-2835262, 593-2-2470817
Fax                   : 593-2-2470983

E_Mail              : ivela@qariston.com, cbarreto@qariston.com
Web Site           : www.quimicaariston.com
Postal Code      : 17-1104932

SUMMARY

Started                          : 1972
Total Employees              : 250
Payments                                 : Prompt
Financial Sit.                 : Normal
Economic Sit.                 : Regular
Sales                            : US$      9.410.990.- (31/12/2012)
Net worth                      : US$      1.293.755.-
Current profit                   : US$       -250.796.-
Subscribed Capital           : US$      1.200.000.-

Sic(s) : 2834 - 5122

Line of Business  : Manufacturing of pharmaceutical products for humans.

EVALUATION

Financial indicators

According to last financial statement, subject shows a normal financial situation,
as indicated in:


**
Acceptable Working Capital
** Good
Current Liquidity Ratio  
** Acceptable
Acid Test Ratio

Economic situation is Regular, as reflected in:

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

ANTECEDENTES COMERCIALES

Boletín Comercial        : As at 31/03/2013 the account holder credit report        reflects no protests.

 

TRADE REFERENCES  

Trade references are supplied as follows:
 

Detail of References

Old             : Since 1994
Last purchase   : 01-2013
Terms           : 30 days
Payment         : Prompt
Notes           : checks
Credit          : (US$) 45.000
Owes            : -
Due             : Does not Register
Paying Comments : Good
Purchase Aver.  : (Monthly US$) 5.000
Latest purchase : US$ 2.000,00

Old             : 9 years
Last purchase   : 03-2013
Terms           : 45 days
Payment         : Prompt
Notes           : checks
Credit          : Open
Owes            : -
Due             : Does not Register
Paying Comments : Excellent
Purchase Aver.  : (Monthly US$) 45.000
Latest purchase :US$ 4.000,00

Detail of Former Trade References
--------------------------------------------------------------------------------
           Last                                         Credit       Owes
Old        Purch. Payment.    Notes                     (US$)        (US$)

--------------------------------------------------------------------------------
8 years    04-12 
Prompt     checks                    Open              No
7 years    08-11 
Prompt     checks                    5.000           2.000
SInce 2004 05-11 
Prompt     checks                    Open              No

- Tax payer status: prompt
-
Taxpayer status: Special

Detail of Bank References

Bank                             : Banco Amazonas S.A.
To expire                       : US$ 24.044,53

Bank                             : Banco Bolivariano C.A.
To expire                       : US$ 916.664,07

Bank                             : Banco De La Produccion S.A.
To expire                       : US$ 124.385,93

Bank                             : Banco Pichincha C.A.
To expire                       : US$ 28.654,02

Bank                             : Diners Club del Ecuador S.A. Sociedad Financiera
Credit Card                    : Credit Card
To expire                       : US$ 68.191,40

Total debt up to Februuary 2013 is US$ 1.161.939,95

Quimica Ariston Del Ecuador Compañia Limitada, in the last 3 years,
does not register any credit in the Ecuadorian National Financial System.  

Average amount of indebtedness registered by the subject, in the National Financial System:

During 2010 was US$ 900.413,81
During 2011 was US$ 1.188.738,13
During 2012 was US$ 1.344.597,44
During 2013 was US$ 1.230.917,03

Income tax corresponding to the last years:
Year 2011: US$  82.220
Year 2010: US$  52.520
Year 2009: US$  55.725

FINANCIAL INFORMATION  

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

                                  31/12/2012        31/12/2011        31/12/2010
CURRENT ASSETS                  5.716.826         4.226.048         3.057.677
CURRENT LIABILITIES             3.779.209         3.040.441         2.234.991
WORKING CAPITAL                 1.937.617         1.185.607           822.686
FIXED ASSETS                    2.213.520         2.395.928         2.389.262
OTHER ASSETS                      769.450            75.166                 0
LONG TERM LIABILITIES           3.626.832         2.112.150         1.719.526
NET WORTH                       1.293.755         1.544.551         1.492.422
OPERATING INCOMES               9.410.990         9.808.848        10.334.257
CURRENT PROFIT(LOSS)             -250.796            36.330                 0

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


ASSETS                                              31/12/2012        31/12/2011
Cash                                                21.110            51.032
Sundry Debtors                                     2.513.749         1.367.723
Inventory                                          2.809.189         2.451.307
Other Current Assets                                 372.778           355.986
CURRENT ASSETS                                     5.716.826         4.226.048

Net Fixed Asset                                    2.213.520         2.395.928
FIXED ASSETS                                       2.213.520         2.395.928

Other                                                769.450            75.166
OTHER ASSETS                                         769.450            75.166

TOTAL ASSETS                                        8.699.796         6.697.142

LIABILITIES                                         31/12/2012       31/12/2011
Accounts Payable                                   1.650.839         1.723.868
Notes Payable                                      1.576.839           638.995
Other Current Liabilities                            551.531           677.578
CURRENT LIABILITIES                                3.779.209         3.040.441

Notes Payable                                      1.723.187           665.453
Other Long Term Liabilities                        1.903.645         1.446.697
LONG TERM LIABILITIES                              3.626.832         2.112.150

Capital & Reserves                                 1.200.000         1.200.000
Other Reserves                                        73.863            72.046
Accumulated Losses                                   270.688           236.175
Current Profit (Losses)                             -250.796            36.330
NET WORTH                                          1.293.755         1.544.551

TOTAL LIABILITIES                                  8.699.796         6.697.142

STATEMENTS OF RESULTS                               31/12/2012       31/12/2011
Operating  Income                                  9.410.990         9.808.848
Operating Cost                                    -4.963.852        -4.386.579
OPERATING MARGIN                                   4.447.138         5.422.269

Administration & Sales Expenses                   -5.319.369        -5.391.856
OPERATING RESULT                                    -872.231            30.413

Other non Operating Incomes                          621.436            20.630
NON OPERATING RESULT                                 621.436            20.630

Result Before Income Tax                            -250.795            51.043
Taxes and Employees Participation                          0           -14.710
NET PROFIT(LOSS)                                    -250.795            36.333

CURRENT PROFIT(LOSS)                                -250.795            36.333

                        
ECONOMIC - FINANCIAL RATIOS

                                         31/12/2012     31/12/2011       Promedio

Working Capital              ( US$ )       1.937.617      1.185.607      1.561.612
Current Liquidity            (Times)            1,51           1,39           1,45
Acid Test                    (Times)            0,77           0,58           0,68
Collection Period Days       (Days)            96,16          50,20          73,18
Accounts Receivable Turnover (Times)            3,74           7,17           5,46
Inventory Turnover           (Times)            1,77           1,79           1,78
Current Indebtedness         (Times)            2,92           1,97           2,45
Total Indebtedness           (Times)            5,72           3,34           4,53
Solvency                     (Times)            1,17           1,30           1,24
Assets Tying Up              (  %  )           25,44          35,78          30,61
Profitability Over Sales     (  %  )           -2,66           0,37          -1,15
Profitability Over Assets    (  %  )           -2,88           0,54          -1,17
Profitability Over Net Worth (  %  )          -16,24           2,41          -6,92

BANKS

The main banks are:  

-  Banco Amazonas S.A.
-  Banco Bolivariano C.A.
-  Banco De La Produccion S.A.
-  Banco Pichincha C.A.

OPERATIONS  

Line of Business  : Manufacture of pharmaceutical products for humans and the    
                   import of these articles.

                  
The line of business registered at the Internal Revenue
                   Services(IRS) is:
MANUFACTURE OF PHARMACEUTICAL PRODUCTS
                   FOR HUMANS, BOTH GENERIC AND REGISTERED BRAND AND FOR SALE
                   TO GENERAL PUBLIC.
                  
Social objective registered at the Superintendency of
                   Companies is:
Import, manufacture, marketing and distribution
                   of chemical, pharmaceutical, cosmetic, veterinary products, both           
                   at national and international level.

                   This company has the following certifications: BPM (buenas
                   practicas) de manufactura and ISO 9001:2008

Classification according to commercial activity:

Sic: 2834-0000 Pharmaceutical preparations 
Sic: 5122-0000 Drugstore, pharmaceutical specialties
         -0308 Pharmaceuticals

Brands:

- CeVit
- Dalavit
- Dolovan
- Katrina
- Venostasin

Sales

Sales/services are steady throughout the year.

Sale territory: domestic and international level

Exports to Panamá.

Customers

Main customers are: pharmaceutical distributors, drugstores.

The 3 most important customers are:

Instituto Ecuatoriano de Seguridad Social Direccion General Quito,  Junta De
Beneficencia De Guayaquil, Ministerio de Salud Publica,

Purchases

Domestic and abroad purchases


Imports from Italia, England, Germany, Colombia. U.S.A., India,

Common Suppliers   

- Disan Ecuador S.A.
- Induauto Sa
- Interoc S.A.
- Linexpress S.A.
- Quifatex S.A.
- Resimon S.A.

Employees: 250 Employees approx.

Location

-  Management offices and plant are located at calle Joaquín Mancheno OE1 - 209 y   Francisco García, a la altura del Km 6 1/2 Panamericana
   Norte, Sector de Carcelen Quito Pichincha, Ecuador

Branches  

-  Av.de las Americas 3180 y Los Naranjos Cuenca Azuay Ecuador
-  Pasaje Cormoran 119 y Pasaje Charles Darwin, Ciudadela Albatros Guayaquil
   Guayas Ecuador
-  Calle 28 #208 y Av. Flavio Reyes Barrio Umiña Manta Manabí Ecuador

-  Correct numbers of management offices are OE1-209, instead of OEI-255 as the order indicated.

RELATED COMPANIES 

The interviewee did not provide any information about its subsidiaries.

INSURANCES  

Insurance Company:

-Panamericana del Ecuador S. A. Compañia de Seguros y Reaseguros


ADMINISTRATION

General Manager          : Roberto Carlos Enrique Hahn Klinge RUC:1707454698001
President                      : Rodolfo Alfredo Gerardo Hahn Klinge RUC:354139
Finance Manager          : Elizabeth Gertie Hahn Krol
Manager for sales          : Cid Barreto
Import Chief                   : Vette Vela
Accountant                    : Oscar Chiriboga
Reception Secretary      : Consuleo Chavez

CURRICULUM

Roberto Carlos Enrique Hahn Klinge

RUC Nº              : 1707454698001
Civil status        : Divorced
Birth date          : 20/09/1953 - Germany
Position            :
General Manager
Mercantile Register : Number 8688 of 28/07/2009
Simultaneously      : Legally registered in the Ecuadorian Internal Revenue
                     
Service (SRI) to engage in business as individual since
                      Febrero 28, 2002.
His registered economic activity is: Work activities carry out in the private sector.
                     
No business name.

Rodolfo Alfredo Gerardo Hahn Klinge

RUC Nº                         : 354139
Birth date                                  : Germany
Position                                    :
President
Mercantile Register        : Number 14768 of 20/10/2011

LEGAL INFORMATION

Legal Structure              : Limited Liability Partnership
Constitution date             : 14/06/1972
Authorization                 : Resolution Nº 498
Notary                                       : N° 16 Quito Pichincha
Term of duration              : 50 year, ended on 14/06/2022
Legal Address                : Quito - Ecuador
Published in                  : Official Gazette dated 13/02/2006

Current Subscribed Capital: US$ 1.200.000.-aportes US$ 1.000.-
Subscribed Initial Capital: US$ 2.-

Partner:

-  96,08% 1707454698001 Roberto Carlos Enrique Hahn Klinge
-   3,75% Elizabeth Gertie Hahn Krol
-   0,17% Christian Roberto Hahn Krol

Legal representation is held by: General Manager.

Legal changes

By Resolution Nº 498 on 08/02/2006 notary N° 16 Quito Pichincha,
published in the Official Gazette dated 03/02/2006, capital increased in USD 370.000,00.

By Resolution Nº 2691 on 17/07/2008 notary N° 16 Quito Pichincha,
published in the Official Gazette dated 22/07/2008, capital increased in USD 330.000,00 by domestic and international (direct) investment. Statutes were modified by public deed before Notary Décimo Sexto.

By Resolution Nº3257 on 09/08/2010 notary N° 31 Quito Pichincha,
published in the Official Gazette dated 16/08/2010, capital increased USD. 300.000,00

Registered trade style: Quimica Ariston Del Ecuador Cia. Ltda.

Partnership founded by the Dr. Rodolfo Hahn, son of the Dr. Alfredo
Hahn, founded of Quimica Ariston Argentina in 1950.

Since 1978 until the current day, the company belongs to the Dr. Roberto
Hahn, founder´s brother, who manages partnership.

By Resolution Nº Q.IMV.2012.1946 on April 24, 2012. The Superintendency of companies approved the inscription of subject in the stock exchange. Nowadays company keeps a value issued by the amount of US$. 1.500.000

INFORMATION SOURCES

Mr. Consuleo Chavez, Secretary, 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 sucres = USD 1.00

INTERPRETATION OF RISK LEVEL AND CREDIT RECOMMENDATION


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.




 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.16

UK Pound

1

Rs.82.45

Euro

1

Rs.70.70

 

 

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.