MIRA INFORM REPORT

 

 

Report Date :

07.12.2013

 

IDENTIFICATION DETAILS

 

Name :

HILACRIL S.A.

 

 

Registered Office :

Vía Interoceánica a la altura del Km. 18 y Calle Rio San Pedro E7-167, Sector El, Arenal en Tumbaco, al Oriente de Quito – Quito, Pichincha 

 

 

Country :

Ecuador

 

 

Financials (as on) :

30.04.2012

 

 

Date of Incorporation :

1974

 

 

Legal Form :

Stock Company 

 

 

Line of Business :

Manufacture and sale of textiles

 

 

No. of Employees :

238

 

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 :

Regular

 

 

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Ecuador

B2

B2

 

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's economy suffered from a banking crisis, with GDP contracting by 5.3% and poverty increasing significantly. 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 4.3% per year, the highest five-year average in 25 years. After moderate growth in 2007, the economy reached a growth rate of 6.4% in 2008, buoyed by 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 - for example, 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 1% 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 3.3% rate in 2010 and nearly 8% in 2011, before falling to 5% in 2012. China has become Ecuador's largest foreign lender since Quito defaulted in 2008, allowing the government to maintain a high rate of social spending; Ecuador contracted with the Chinese government for more than $9 billion in oil for cash and project loans as of December 2012.

Source : CIA


COMPANY NAME & ADDRESS

                                                          
HILACRIL S.A. 



Vía Interoceánica a la altura del Km. 18 y Calle Rio San Pedro E7-167, Sector El 
Arenal en Tumbaco, al Oriente de Quito - Quito
 
Pichincha
 
ECUADOR
 

Telephone    :    593-2-2044004, 593-2-2044193
 
Fax             :     593-2-2044008
 
E_Mail        :     ivonne.novoa@hilacril.com, info@hilacril.com, fausto.flores@hilacril.com
 
Web Site     :     www.hilacril.com
 
Postal Code  :   17 01 3234
 


SUMMARY 

Started   :                      1974
 
Total Employees  :         238
 
Payments :                   Prompt
 
Financial Sit :                Good
 
Economic Sit.:               Excellent
 
Sales  :                         US$      1.689.450.-
 (30/04/2012)
Net worth  :                   US$      5.813.997.- 
Current profit  :               US$        112.870.- 
Subscribed Capital :       US$      5.500.000.- 

Sic(s) : 2253 - 2311 

Line of Business: Manufacture and sale of textiles. 


EVALUATION 

Risk level = 3 

Interpretation at the end of the report. 

Credit Recommendation 

                                                Dollars 
Conservative value :                    370.000 
Liberal value      :                       400.000 

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

Payment Scoring = [ 100 ] 

Financial indicators 

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

** Normal Working Capital 
** Excellent Current Liquidity Ratio 
** Good Acid Test Ratio 

Economic situation is excellent, as reflected in: 

** Low Current Indebtedness Ratio 
** Low Total Indebtedness Ratio 
** Excellent Solvency Ratio 


COMMERCIAL INFORMATION 

Commercial Bulletin      :            As at 31/10/2013 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            :                  12 years 
Last purchase  :             12-2013 
Terms          :                60 days 
Payment        :              Prompt 
Notes          :                 checks 
Credit         :                  Open 
Owes           :                Does not Register 
Due            :                 Does not Register 
Paying Comments:        Excellent 
Purchase Aver. :            (Monthly US$) 3.000 



Detail of Former Trade References 

-------------------------------------------------------------------------------- 
 Owes              Last                                                                  Credit  

Old  

Payment        Purch..   

          Notes   

                                                            (US$)        (US$) 
-------------------------------------------------------------------------------- 
20 years   07-12  Prompt      invoice                     10.000            None 
5 years    07-12  Prompt      invoice                     10.000            None 
2 years    06-11  Prompt      checks                      10.000               - 
5 years    07-11  Prompt      checks                        Open            None 
8 years    06-11  Prompt      checks                        Open            None 
6 years    09-10  Prompt      checks                        Open            None 
8 years    10-10  Prompt      checks                        Open            None 
2 years    09-10  Prompt      checks                         500            None 
8 years    03-10  Prompt      checks                       5.000            None 
15 years   03-10  Prompt      checks                        Open            None 
Since 1991 04-09  Prompt      checks                       6.000            None 
Since 2002 11-09  Prompt      checks                      50.000            None 
5 years    10-08  Prompt      checks                      15.000               - 
15 years   01-09  Prompt      checks                        Open               - 
15 years   03-08  Prompt      checks                        Open            None 
20 years   04-08  Prompt      checks                       1.500            None 
20 years   04-08  Prompt      checks                       1.000            None 
10 years   04-07  Prompt      checks                        Open               - 
Since 2003 03-07  Prompt      checks                        Open               - 
Since 2002 02-07  Prompt      checks                        Open               - 
4 years    04-06  Prompt      checks                      50.000               - 
12 years   04-06  Prompt      checks                         500               - 
12 years   04-06  Prompt      checks                       2.000               - 

- Tax Status: Current obligations fulfilled 
- Special Taxpayer 
- Special Taxpayer:  It has special features and obligations which allow apply a 
better control in then taxes 

Detail of Bank References 

Following are detailed the three main banks where this company has current 
credits in the National Financial System.

Bank                     : Banco Cofiec S.A. 
To expire                : US$ 284.265,58 

Bank                     : Banco de Guayaquil S.A. 
To expire                : US$ 600.000,00 

Bank                     : Banco Pichincha C.A. 
To expire                : US$ 1.177.787,49 

Bank                     : Diners Club del Ecuador S.A. Sociedad Financiera 
Credit Card              : Credit Card 
To expire                : US$ 918,01

Total debt as of October 2013 is US$ 2.350.831,77

Credit history 

Hilacril S.A not have in the last three years negative history in the National Financial System. 

Maximum amount of indebtedness registered by the subject -, in the National Financial System was US$ 2.350.831,77 in October, 2013 

Average amount of indebtedness registered by the subject, in the National Financial System: 
During 2010 was US$ 1.279.028,92 
During 2011 was US$ 1.954.273,02 
During 2012 was US$ 1.803.369,79 
During 2013 was US$ 2.187.959,33 

Income tax corresponding to the last years: 
Year 2012: US$ 37.617 
Year 2011: US$ 65.862 
Year 2010: US$ 53.320 
Year 2009: US$ 60.857 


FINANCIAL INFORMATION 

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

                                                                     30/04/2012        31/12/2011        31/12/2010 
CURRENT ASSETS                     3.376.610         3.112.883         3.416.967 
CURRENT LIABILITIES                1.685.662           624.843           839.610
 
WORKING CAPITAL                    1.690.948         2.488.040         2.577.357
 
FIXED ASSETS                       4.816.860         4.659.909         4.602.580
 
OTHER ASSETS                               0           121.279            38.000
 
LONG TERM LIABILITIES                693.811         1.462.560         1.342.090
 
NET WORTH                          5.813.997         5.806.668         5.875.847
 
OPERATING INCOMES                  1.689.450         5.191.012         4.694.710
 
CURRENT PROFIT(LOSS)                 112.870           116.706           197.310
 

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

ASSETS                                              30/04/2012        31/12/2011 
Cash                                                   186.610           103.684 
Sundry Debtors                                       2.239.130         2.071.056
 
Inventory                                              869.490           767.473
 
Other Current Assets                                    81.380           170.670
 
CURRENT ASSETS                                       3.376.610         3.112.883
 

Net Fixed Asset                                      4.816.860         4.659.909
 
FIXED ASSETS                                         4.816.860         4.659.909
 

Other                                                        0           121.279
 
OTHER ASSETS                                                 0           121.279
 

TOTAL ASSETS                                         8.193.470         7.894.071
 

LIABILITIES                                         30/04/2012        31/12/2011
 
Accounts Payable                                       363.615           265.135
 
Notes Payable                                        1.092.777                 0
 
Other Current Liabilities                              229.270           359.708
 
CURRENT LIABILITIES                                  1.685.662           624.843
 

Notes Payable                                          693.811         1.462.560
 
LONG TERM LIABILITIES                                  693.811         1.462.560
 

Capital & Reserves                                   5.500.000         5.500.000
 
Other Reserves                                         201.127           189.962
 
Current Profit (Losses)                                112.870           116.706
 
NET WORTH                                            5.813.997         5.806.668
 

TOTAL LIABILITIES                                    8.193.470         7.894.071
 

STATEMENTS OF RESULTS                               30/04/2012        31/12/2011
 
Operating  Income                                    1.689.450         5.191.012
 
Operating Cost                                      -1.373.920        -4.308.602
 
OPERATING MARGIN                                       315.530           882.410
 

Administration & Sales Expenses                       -214.260          -749.923
 
OPERATING RESULT                                       101.270           132.487
 

Other non Operating Incomes                             11.600            82.299
 
NON OPERATING RESULT                                    11.600            82.299
 

Result Before Income Tax                               112.870           214.786
 
Taxes and Employees Participation                            0           -98.079
 
NET PROFIT(LOSS)                                       112.870           116.707
 

CURRENT PROFIT(LOSS)                                   112.870           116.707
 

                           ECONOMIC - FINANCIAL RATIOS 

                                        30/04/2012     31/12/2011        Average 
Working Capital             ( US$ )      1.690.948      2.488.040      2.089.494 
Current Liquidity           (Times)           2,00           4,98           3,49
 
Acid Test                   (Times)           1,49           3,75           2,62
 
Collection Period Days      ( Days)         477,13         143,63         310,38
 
Accounts Receivable Turnover(Times)           0,75           2,51           1,63
 
Inventory Turnover          (Times)           1,58           5,61           3,60
 
Current Indebtedness        (Times)           0,29           0,11           0,20
 
Total Indebtedness          (Times)           0,41           0,36           0,39
 
Solvency                    (Times)           3,44           3,78           3,61
 
Assets Tying Up             (  %  )          58,79          59,03          58,91
 
Profitability Over Sales    (  %  )           6,68           2,25           4,47
 
Profitability Over Assets   (  %  )           1,38           1,48           1,43
 
Profitability Over Net Worth(  %  )           1,98           2,05           2,02
 


BANKS 

Subject operates with the following financial institutions 

-  Banco Cofiec S.A. ACCT # 1300052 
-  Banco de Guayaquil S.A. 
-  Banco Pichincha C.A. ACCT # 30187429-04 


OPERATIONS


Line of Business :          Manufacture and sale of textiles


The line of business registered at the Internal Revenue Services(IRS) is: MANUFACTURE OF COTTON YARN OR THREAD, WOOL FIBER SYNTHETIC OR ARTIFICIAL 

Social objective registered at the Superintendency of Companies is: The production and textile products manufacturing and may engage in any act or contract trade. 


Classification according to commercial activity: 

Sic: 2253-0000 Knit outerwear mills 
            -0207 Sweaters and sweater coats, knit 
            -0205 Shawls, knit 
Sic: 2311-0000 Men's and boy's suits and coats 
            -0200 Coats, overcoats and vests 


Commercializes: 

- D & Bond 



Sales 

Sales are steady throughout the year 

National and international sales territory 

Exports to Mexico, Colombia, Chile, United States, Bolivia, Canada. 

Estimated average monthly sales are US$. 450.000 

Customers 

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

Main customer is: 

Importadora, Exportadora Y Comercializadora Davila & Bond C.A.
 

Purchases 

Domestic and international purchases 

Imports from Peru, Germany, Panama, Italy, Spain. 

National suppliers


- Botoperla S.A. 
- Corporacion Ekazipper del Ecuador S.A. 
- Marquillas Fast S.A. 
- Quifatex S.A. 

Foreign suppliers

- Fibras Nacionales de Acrilicos (Mexico) 
- Huntsman (Panama) 
- Stoll (Germany) 
- Sudamericana de Fibras (Peru) 

Employees: 238 employees approx. 

Location 

-  The administrative offices and factory are in the Vía Interoceánica a la altura del Km. 18 y Calle Rio San Pedro E7-167, Sector El Arenal en Tumbaco, al Oriente de Quito Quito Pichincha, Ecuador 

Branches


Subject does not have any branch 



RELATED COMPANIES

Subject is related with the following company: 

-  Importadora, Exportadora Y Comercializadora Davila & Bond C.A. T A X : 
   1791354419001 

INSURANCES


Insurance Company: 

-Liberty Seguros S.A. 

ADMINISTRATION 

President                :                 Luis Fernando Davila Pinto TAX:1703005445 
Manager                  :                 Charles Fernando Davila Bond TAX:1703764405001 
Human Resources Manager  :     Fernando Javier Davila Bond TAX:1706455233 
Finances Manager         :           Fausto Flores 
Accounting Assistant     :           Ivonne Noboa 


CURRICULUM 

Luis Fernando Davila Pinto 

T A X               :                        1703005445 
Civil status        :                       Married 
Birth date          :                       24/06/1945 -Ecuador 
Position            :                       President 
Mercantile Register :                  Number 9569 of 30/06/2011 

Charles Fernando Davila Bond 

T A X               :                        1703764405001 
Civil status        :                       Married 
Birth date          :                       07/06/1969 -Ecuador 
Position            :                       Manager 
Mercantile Register :                  Number 9568 of 30/06/2011 
Previously          :                      He was legally registered at the IRS to perform personal business from 11-06-

1997until 11-06-1997. His registered business activity was: sale of accessories for clothing: hats, belts. Trade name was Fashionlana. At present, it is in Definite Suspension.

Fernando Javier Davila Bond 

T A X               :                        1706455233 
Civil status        :                       Married 
Birth date          :                       15/06/1977 


LEGAL INFORMATION
Legal Structure       :                  Stock Company 
Constitution date     :                  02/05/1974 
Authorization         :                   Resolution Nº 3931 
Notary                :                      N° 11, Quito Pichincha 
Term of duration      :                  50 Year, ended on 02/05/2024 
Legal Address         :                 Quito - Ecuador 
Published in          :                   Official Gazette dated 03/05/1974 

Current Subscribed Capital: US$ 5.500.000.-Divided to 55.000.- common shares unique series amounting US$ 100.- 
Subscribed & paid-in Initial Capital: US$ 414.- 

Shareholders : 

-  65,00% 1703005445 Luis Fernando Dávila Pinto 
-   6,73% Jorge Anibal Vergara Narvaez 
-   5,74% Christina Louice Davila Bond 
-   5,74% 1706455233 Fernando Javier Davila Bond 
-   5,19% John Alexander Davila Bond 
-   4,50% Arturo Eduardo Davila Bond 
-   4,50% 1703764405001 Charles Fernando Davila Bond 
-   3,73% Flavio Leonardo Noboa Estupiñan 
-   3,40% Bolivar Jaime Guarderas Alomia 

Legal representation is held by Manager, President. 

Legal changes 

By Resolution Nº 1279 on 16/06/1986, notary N° 9, Quito Pichincha, published in the Official Gazette dated 05/07/1986, corporate name was modified: of Hilaturas Acrilicas S.A. Hilacril to Hilacril S.A.. 

By Resolution Nº 4944 on 21/12/2004, notary N° 9, Quito Pichincha, published in the Official Gazette dated 27/12/2004, capital was increased: in US$. 500.000,00 

By Resolution Nº 3033 on 18/07/2005, notary N° 9, Quito Pichincha, published in the Official Gazette dated 02/08/2005, capital was increased: in USD 500.000,00 

El capital social inicial (constitucion) en Sucres fue de S/ 10.360.000

Registered trade name: Hilacril S.A.

This company is controlled by members of a family of Pinto surname, long tradition in textiles, as known, is the third generation that today manages Hilacril SA Fashion and other named Lana Cia works in a local by the owner. 
PUBLICATIONS

Information regarding subject is supplied as follows 

www.aite.com.ec of 07/10/2010 Hilacril SA participated in Colombiamoda 2010

The company has maintained a steady growth which places it at the time, with a production of 80 tons of acrylic yarn per month, of which 50 used in the production of 40,000 knitted garments such as jackets and sweaters, and 7000 in flat woven products such as scarves, shawls and collars - 


INFORMATION SOURCES 

On 03/12/2013 Mr. Fernando Javier Davila Bond, Human Resources Manager, 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 

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 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. 


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 


Macroeconomic Information


Interest Rate for the week of            22/10/2013 - 28/10/2013

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                                         ( % ) 2,04 Oct/2013

Monthly Inflation                                     ( % ) 0,41 Oct/2013

Accumulated                                            ( % ) 2,09 Oct/2013



The information  herein  contained is confidential and exclusively intended for its  addressee. Unauthorized use, copying  and/or  disclosure of the information contained  in  this  transmission   may  result  in  legal punishment.  If  you receive  this  document  by error, please  delete it  and notify  to  the  email address: peraciones.ecuador@tws.cl. 



 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.67

UK Pound

1

Rs.100.65

Euro

1

Rs.84.25

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.