MIRA INFORM REPORT

 

 

Report Date :

02.02.2013

 

IDENTIFICATION DETAILS

 

Name :

FEROSOR AGRICOLA S.A.

 

 

Registered Office :

Los Carreras 643 Osorno X Region De Los Lagos

 

 

Country :

Chile

 

 

Financials (as on) :

31.12.2011       

 

 

Date of Incorporation :

10.12.1996

 

 

Legal Form :

Private Stock Company

 

 

Line of Business :

Agricultural supplies. Marketing of agricultural supplies and machines. Veterinary products, tires and dairy products.

 

 

No. of Employees :

170

 

 

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

(31.03.2011)

Current Rating

(30.06.2012)

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


IDENTIFICATION


 FEROSOR AGRICOLA S.A.
( FEROSOR S.A. )


Los Carreras 643
Osorno
X Region De Los Lagos
CHILE

Telephone                        : 56-64-269200, 56-64-269216, 56-64-269234
Fax                                       : 56-64-629220

E_Mail                                 : ferosor@ferosor.cl
Web Site                             : www.ferosor.cl

 

SUMMARY


Started                                                         : 1996
Total Employees                                             : 170
Payments                                                   : Prompt
Financial Sit.                                              : Normal
Economic Sit.                                          : Acceptable
Sales                                              : 000's$     35.213.744.-
Net worth                                         : 000's$      3.681.616.-
Current profit                                    : 000's$        378.449.-
Capital                                             : 000's$      4.890.455.-

Sic(s) : 5083 - 5999

Line of Business: Agricultural supplies.
                 
Financial indicators

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

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

Economic situation is acceptable, as reflected in:

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

** Low Profitability Over Sales Ratio
** Low Profitability Over Assets Ratio
** High Profitability Over Net Worth Ratio

 

COMMERCIAL INFORMATION


Commercial Bulletin      : As at 29/01/2013 subject does not register protested
                           checks, bank drafts nor promissory notes in the
                           commercial information bulletin

Labor Bulletin           : As at 29/01/2013 does not register work infringements

Previsional Bulletin     : As at 29/01/2013 does not register social security
                           infringements

Consolidated delinquency : As at 29/01/2013, subject does not register any
                           delinquent bill

TRADE REFERENCES

Suppliers' trade references are supplied as follows:

Detail of References

Old            : Since 2008
Last purchase  : 07-2012
Terms          : 30 days
Payment        : Prompt
Notes          : invoice
Credit         : (000'sUS$) 30.000
Owes           : (000'sUS$) 12.000
Due            : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly 000's$) 10.000

Old            : Since 1999
Last purchase  : 07-2012
Terms          : 60-90 days
Payment        : Prompt
Notes          : checks
Credit         : (000'sUS$) 120.000
Owes           : -
Due            : Does not Register
Paying Comments: Good

Old            : Since 2002
Last purchase  : 07-2012
Terms          : 60 days
Payment        : Prompt
Notes          : invoice
Credit         : (000'sUS$) 25.000
Owes           : (000'sUS$) 9.500
Due            : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly 000's$) 4.000
Supplier reported that its high season is from June to December

Detail of Former Trade References
--------------------------------------------------------------------------------
           Last                                           Credit            Owes
Old        Purch. Payment.    Notes                     (000'sUS$)        (000'sUS$)
--------------------------------------------------------------------------------
Since 2008 06-11  Prompt      invoice                     30.000               -
Since 2002 04-11  Prompt      invoice                     25.000           3.500
Since 2002 05-10  Prompt      current account             25.000            None
Since 1999 06-10  Prompt      checks                     120.000            None
9 years    05-08  Prompt      checks                     120.000          90.000
Since 2001 05-08  Prompt      order form                    Open               -
8 years    06-08  Prompt      current account                  -               -
7 years    04-08  Prompt      current account                  -            None
6 years    06-07  Prompt      current account                  -               -
9 years    10-07  Prompt      checks                     120.000          90.000
8 years    10-07  Prompt      current account                  -               -
Since 2001 10-07  Prompt      order form                    Open               -
Since 2001 12-06  Prompt      order form                    Open               -
8 years    12-06  Prompt      current account                  -               -
5 years    12-06  Prompt      checks                        Open               -
5 years    12-06  Prompt      current account                  -               -
8 years    12-06  Prompt      checks                      80.000               -
6 years    12-06  Prompt      current account            760.000               -
5 years    12-06  Prompt      checks                           -               -
5 years    12-06  Prompt      current account                  -               -
8 years    12-06  Prompt      checks                        Open               -
5 years    12-06  Prompt      invoice                       Open               -
5 years    03-05  Prompt      invoice                       Open               -
8 years    03-05  Prompt      checks                        Open               -
5 years    03-05  Prompt      current account                  -               -
5 years    03-05  Prompt      checks                           -               -
6 years    03-05  Prompt      current account            761.700           3.997
8 years    03-05  Prompt      checks                      80.000          47.000
5 years    03-05  Prompt      current account                  -               -
5 years    03-05  Prompt      checks                        Open               -
8 years    03-05  Prompt      current account                  -               -
Since 2001 03-05  Prompt      order form                    Open               -
6 years    10-03  Slow        checks                     527.000         204.000
5 years    09-03  Prompt      invoice                       Open               -
3 years    10-03  Prompt      checks and current               -               -
5 years    09-03  Prompt      checks                        Open               -

During the last 6 months, the account holder credit history shows 88 credit review inquiries requested by companies, businesses in general and financial institutions.-

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.

FINANCIAL INFORMATION

                     C O M P A R A T I V E  -  S U M M A R Y
                  ( Figures in Thousand Pesos, local currency )

                            From  01/01/2011        01/01/2010        01/01/2009
                              To  31/12/2011        31/12/2010        31/12/2009

CURRENT ASSETS                    20.439.576        13.784.107        22.409.392
CURRENT LIABILITIES               18.191.883        11.000.600        16.838.536
WORKING CAPITAL                    2.247.693         2.783.507         5.570.856
FIXED ASSETS                         909.579           345.391         1.307.052
OTHER ASSETS                         556.975           613.544                 0
LONG TERM LIABILITIES                 32.631           311.406                 0
NET WORTH                          3.681.616         3.431.036         6.877.908
OPERATING INCOMES                 35.213.744        22.252.997         2.528.602
CURRENT PROFIT(LOSS)                 378.449           346.142           893.738

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

ASSETS                                         31/12/2011        31/12/2010
Cash                                            436.004           165.314
Notes Receivable                                    15.031.685        10.398.716
Notes & Accts Receivable/Interco.Relations                       387             2.274
Inventory                                       4.768.354         3.155.128
Taxes Recoverable                                       62.946            30.521
Other Current Assets                                           140.200            32.154
CURRENT ASSETS                                      20.439.576        13.784.107

Machineries & Equipments                               909.579           345.391
FIXED ASSETS                                           909.579           345.391

Long Term Debtors                                      556.975           607.604
Other                                                        0             5.940
OTHER ASSETS                                           556.975           613.544

TOTAL ASSETS                                        21.906.130        14.743.042

LIABILITIES                                         31/12/2011        31/12/2010
Oblig.With Banks & Financ.Inst.Short Term           17.900.289        10.683.141
Notes & Accts Payable Related Companies                 45.685            51.597
Provisions                                             245.909           159.517
Other Current Liabilities                                    0           106.345
CURRENT LIABILITIES                                 18.191.883        11.000.600

Oblig.with Banks & Financial Intitutions                32.631           311.406
LONG TERM LIABILITIES                                   32.631           311.406

Paid Capital                                         1.890.455         1.890.455
Other Reserves                                          42.575            50.444
Accumulated Profits                                  1.370.137         1.143.995
Current Profit (Losses)                                378.449           346.142
NET WORTH                                            3.681.616         3.431.036

TOTAL LIABILITIES                                   21.906.130        14.743.042

STATEMENTS OF RESULTS                               31/12/2011        31/12/2010
Operating  Income                                   35.213.744        22.252.997
Operating Cost                                     -32.991.065       -20.534.398
OPERATING MARGIN                                     2.222.679         1.718.599

Administration & Sales Expenses                     -1.990.278        -1.504.513
OPERATING RESULT                                       232.401           214.086

Financial Incomes                                      432.280           271.586
Other non Operating Incomes                             14.919             2.883
Financial Expenses                                    -284.548          -110.862
Exchange difference                                      4.185              -140
NON OPERATING RESULT                                   166.836           163.467

Result Before Income Tax                               399.237           377.553
Income Tax                                             -59.773           -33.654
Monority Interest                                       38.985             2.243
NET PROFIT(LOSS)                                       378.449           346.142

CURRENT PROFIT(LOSS)                                   378.449           346.142

                           ECONOMIC - FINANCIAL RATIOS

                                        31/12/2011     31/12/2010        Average

Working Capital            (000's$)      2.247.693      2.783.507      2.515.600
Current Liquidity           (Times)           1,12           1,25           1,19
Acid Test                   (Times)           0,86           0,97           0,92
Collection Period Days      ( Days)         153,68         168,26         160,97
Accounts Receivable Turnover(Times)           2,34           2,14           2,24
Inventory Turnover          (Times)           6,92           6,51           6,72
Current Indebtedness        (Times)           4,94           3,21           4,08
Total Indebtedness          (Times)           4,95           3,30           4,13
Solvency                    (Times)           1,20           1,30           1,25
Assets Tying Up             (  %  )           4,15           2,34           3,25
Profitability Over Sales    (  %  )           1,07           1,56           1,32
Profitability Over Assets   (  %  )           1,73           2,35           2,04
Profitability Over Net Worth(  %  )          11,46          11,22          11,34

Summary

BANKS

Subject operates with the following banks:

-  Banco Bice
-  Banco Bilbao Vizcaya Argentaria, Chile
-  Banco de Chile
-  Banco de Credito e Inversiones, branch Osorno
-  Banco Santander Chile
-  BancoEstado, branch Osorno
-  Corpbanca, branch Osorno

OPERATIONS

Line of Business : Agricultural supplies. Marketing of agricultural supplies and
                   machines. Veterinary products, tires and dairy products.

                   In process of Certification ISO 9000

Classification according to commercial activity:

Sic: 5083-0000 Farm and garden machinery
Sic: 5999-0000 Miscellaneous retail stores, not elsewhere classified
         -0803 Feed and farm supply
         -0800 Farm equipment and supplies
         -0801 Farm machinery

Commercializes:

- FELLA, Disk harrows, conditioners, rakes.
- WILLIAMSON BALFOUR, New Holland, Ford, Fiat, Case
- RAUTOP, Spare parts and accesories for tractors, disks, colters, harvest
tires, etc.-
- CUNCAN, Regenerators.
- KNIGHT, Mixers and manure carts.
- YOMEL, Fertilizing hoppers.
- WALINGA, Grain vacuums.
- QUIVOGNE, harrow and plows.
- SIGDO TEK, Tractors and industrial machines New Holland, front loaders
Mailleux and Plows Gregoire Besson.
- SARGENT AGRICOLA, Irrigation carts Irtec, sowers Cero Labranza and plows Tatu.
- AGRICOSAN, Vibrocultivating rakes, plows, pulverizers and sprayers.
- COLOSO, Dragging carts.

Subject is considered as the largest company in the line of business, normal
competition

Sales

Sales are steady throughout the year
100% retailers

National sales territory

Products are sold

National: 99%.

Sales conditions: Cash and term payments to 30-60-90-120 days.

International: 1%.

Customers

Main customers are: Farmers in general.

Purchases

Places orders with multiple suppliers

National: 70%

Purchase conditions: Cash and term payments to 30, 60 & 90 days with  checks.

International: 30%

Purchase conditions: Letter of credit.

Imports from Germany, Argentina, Canada, China, Spain, France, Italy, New
Zealand and United States.

of Imports obtained from Customs'National Service

Country                            %last year   %Accum.
-------------------------------------------------------
Argentina                               28,15     32,71
New Zealand                             16,43     18,51
Germany                                 13,46      0,09
United States                           13,14     17,52
France                                   6,79      0,00
Italy                                    6,40      8,65
Spain                                    5,99      0,00
China                                    5,27     20,29
Canada                                   4,39      2,17

Historical registries

Total       2011 = 000's$ 1.540.836                      Accumulated 2012 = 000's$ 676.365
Total       2010 = 000's$ 793.500
Total       2009 = 000's$ 502.552
Total       2007 = 000's$ 0
Total       2006 = 000's$ 316.365
Total       2005 = 000's$ 319.638
Total       2004 = 000's$ 185.357


Main suppliers 

- Basf Chile S.A.
- Bayer S.A.
- Comercial Hydro S.A.
- Comercializadora Crandon Chile Limitada
- Compañia Industrial el Volcan S.A.
- Dow Quimica Chilena S.A.
- Laboratorio Drag Pharma - Chile - Invetec S.A.
- Laboratorios Pfizer de Chile
- Michelin Chile Ltda.
- S.K. Comercial  S.A.
- Sanofi Pasteur S.A.
- Sargent Agricola Ltda.
- Soquimich Comercial S.A.

Employees: 170 employees

Location

-  Administrative offices and sales room (belonging to headquarters) located at
   Los Carreras 643 Osorno, Chile, commercial area, main street of normal
   traffic, construction in good conditions

Branches 

-  Commercial office located at Av. Gramado 1255 Puerto Varas Chile
-  Commercial office located at Brasil 650 Loncoche Chile
-  Commercial office located at Comercio 786 Río Bueno Chile
-  Commercial office located at Av. Pedro Aguirre Cerda 1680 Valdivia Chile
-  Commercial office located at Pedro de Valdivia 259 Temuco Chile
-  Commercial office located at Martinez de Rosas 440 Panguipulli Chile
-  Commercial office located at Bulnes 31 Purranque Chile
-  Commercial office located at Av. Simpson 169 Coyhaique Chile
-  Commercial office located at Westermeir 190 Los Muermos Chile
-  Commercial office located at Quinchilen 1059 Los Lagos Chile

-  Also in Los Lagos.

RELATED COMPANIES 

Subject does not have any related company.

FIXED ASSETS

Real estates 

Subject does not register real estates

Machinery & Instalations 

Equipments and machinery, not specified

INSURANCES 

Insurance Company:

-Compañia de Seguros de Credito Continental S.A.


-Penta Seguros Generales S.A.

Risks            : Earthquake.
Objetive         : Inventory.

BOARD OF DIRECTORS

President                : Hermann Rusch B.

ADMINISTRATION

General Manager           : Christian González Andrade
Finances Mgr                : Cristián Roldán Silva
Accounting & finances    : Andrés Barrientos Bascuñan
supervisor
Operations'supervisor    : Felipe Diaz

LEGAL INFORMATION

Legal Structure      : Private Stock Company
Constitution date    : 10/12/1996. Registered on leaf 520 N° 300, Osorno Trade
                       Registry, year 1996.-
Notary               : Oscar Aníbal Henríquez Marino, Osorno
Term of duration     : Indefinite
Legal Address        : Osorno - Chile
Published in         : Official Gazette dated 14/12/1996 page Nº 12

Current Social Capital: 000's$ 4.890.455.-Divided to 3.200.- registered shares
                        unique series
Social Initial Capital: 000's$ 1.200.000.-

Shareholder : 2

-  99,50% 91237000-3 Feria de Osorno S.A.
-   0,50% 77044200-1 Administradora de Bienes y Servicios Osorno Ltda.

Power of attorney held by General Manager.

Legal changes

Public Deed dated 14/03/1997, notary Oscar Aníbal Henríquez Merino, Osorno,
published in the Official Gazette dated 31/03/1999 page N° 18, statutes were
modified: a new constitution deed text was established.-

Public Deed dated 17/05/2000, notary Oscar A. Henríquez, Santiago, published in
the Official Gazette dated 01/06/2000 page N° 30, board of directors was
modified: the amount of directors was decreased from 5 to 3 members.-

Public Deed dated 17/10/2003, notary Oscar Aníbal Henríquez Marino, Osorno,
published in the Official Gazette dated 31/10/2003 page N° 43, corporate purpose
was modified: to the marketing, distribution, representation, manufacture,
import, export and brokerage of goods and services engaged in the forestry,
farming, livestock and industrial development.-

Provision of training and consultancy services for the areas of management,
administration and finances. Marketing of machinery.

Public Deed dated 07/12/2012, notary Harry Maximiliano Winter Aguilera, Osorno,
published in the Official Gazette dated 22/12/2012, capital was increased: to
$4.890.454.865.- divided into 3.200 shares, same series.

NOTE:

It started activities as the Agricultural department of Feria de Osorno S.A.
In 1997 it became an affiliate company.

INFORMATION SOURCES

Miss. Herta Aron, General Manager Assistant,  submitted the data
shown in this report.  outside sources provided financial figures.

-Other outside information sources.
Exchange rate

-As at 09/08/2012 $477,07 Per US$
-As at 31/12/2011 $521,46 Per US$
-As at 31/12/2010 $468,01 Per US$
-As at 31/12/2009 $507,10 Per US$

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.32

UK Pound

1

Rs.84.60

Euro

1

Rs.72.63

 

 

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.