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Report Date : |
09.03.2013 |
IDENTIFICATION DETAILS
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Name : |
DROGUERIA HERMEL S.A. DE C.V. |
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Registered Office : |
Sierra Madre Norte 20 Bis de la Residencial Montebello |
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Country : |
El Salvador |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
26.04.1993 |
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Legal Form : |
Stock Company of Variable Capital |
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Line of Business : |
Importation, commercialization and distribution of products under two major categories: Inputs for the food industry and end consumer products. |
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No. of Employees
: |
50 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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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
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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El Salvador |
B2 |
B2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EL SALVADOR - ECONOMIC OVERVIEW
The smallest country in Central America
geographically, El Salvador has the third largest economy in the region. With
the global recession in 2009, real GDP contracted by 3.1%. The economy slowed even
further during 2010-12. Remittances accounted for 17% of GDP in 2011 and were
received by about a third of all households. In 2006, El Salvador was the first
country to ratify the Dominican Republic-Central American Free Trade Agreement
(CAFTA-DR), which has bolstered the export of processed foods, sugar, and
ethanol, and supported investment in the apparel sector amid increased Asian
competition. El Salvador has promoted an open trade and investment environment
and has embarked on a wave of privatizations extending to telecom, electricity
distribution, banking, and pension funds. The Salvadoran Government maintained
fiscal discipline during post-war reconstruction and reconstruction following
earthquakes in 2001 and hurricanes in 1998 and 2005. Taxes levied by the
government include a value added tax (VAT) of 13%, income tax of 30%, excise
taxes on alcohol and cigarettes, and import duties. The VAT accounted for about
51.7% of total tax revenues in 2011. El Salvador's external debt amounts to
about one-fourth of GDP. In 2012, El Salvador successfully completed a $461
million compact with the Millennium Challenge Corporation (MCC) - a United
States Government agency aimed at stimulating economic growth and reducing
poverty in the country's northern region, the primary conflict zone during the
civil war, through investments in education, public services, enterprise
development, and transportation infrastructure. In December 2011, the MCC
approved El Salvador's eligibility to develop a proposal for a program for
consideration
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Source
: CIA |
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CORRECT COMPANY NAME |
DROGUERIA
HERMEL S.A. DE C.V. |
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TRADE NAME |
HERMEL
S.A. DE C.V. |
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TAXPAYER REGISTRATION |
NIT 06142604931011 |
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MAIN ADDRESS |
Sierra Madre Norte 20 Bis de la
Residencial Montebello |
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DEPT/PROV/REGION/STATE |
San Salvador / San Salvador |
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COUNTRY |
EL SALVADOR |
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TELEPHONE |
(503) 22180800 - 22749644 |
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E-MAIL |
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WEB |
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LEGAL STATUS |
Stock Company of Variable
Capital |
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DATE OF INCORPORATION |
26APR1993 |
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PLACE OF REGISTRY |
San Salvador |
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REGISTRATION |
N° 23, Book 943 - Registry of
Commerce |
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CURRENT PAID-IN CAPITAL |
US$.478,160.= Dollars |
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SHAREHOLDERS EQUITY |
896,851.10 US$ Dollars
(31DEC2011) |
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CLASS OF SHARES |
Registered |
LISTED AT STOCK EXCHANGE |
No |
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CURRENT EXCHANGE RATE (US$) |
C/.8.75 per USD1.00 |
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MELARA
LARA, SALVADOR WALTER REYNALDO |
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TITLE |
Gen.Manager/Fin.Manager |
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NATIONALITY |
Salvadorian |
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D.O.B. |
30MAR1959 |
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ID |
DUI 00813512-6 |
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CIVIL STATUS |
Married to Ana Del Rosario
Benitez Cisneros |
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PROFESSION |
Business Administrator |
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TAX ID |
0614200359005-7 |
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BACKGROUND INFORMATION |
Parents: Jose Melara Barrera and Anita Lara Ramos.Has business as an individual. |
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BENITEZ
CISNEROS DE MELARA, ANA DEL ROSARIO |
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TITLE |
Shareholder |
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NATIONALITY |
Salvadorian |
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D.O.B. |
1961 |
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CIVIL STATUS |
Married
to Salvador Walter Reynaldo Melara Lara |
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PROFESSION |
Public
Accountant |
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The Company was incorporated to continue operating "DROGUERIA HERMEL" a personal business owned by Salvador Walter Reynaldo Melara Lara, which was founded in 1982; and subsequently contributed for the incorporation of the current company.HERMEL S.A. DE C.V., was founded in San Salvador, El Salvador in April 1987. At the beginning, it was only engaged in the representation of other multinational companies from United States, Germany and Spain, manufacturers of additives and raw materials for the food industry in the Salvadorian market.In 1990, HERMEL started its operations in the distribution and manufacturing of own raw material. The first production line was composed by: coloring, flavoring, essences, chemicals (preservatives) and stabilizers. In 1995, HERMEL invested in a range of products such as baking powder, desserts, spices and mixes for bakery.In 1998, the Company created the export area intended to the Central America market. HERMEL exports directly to Guatemala and Costa Rica through a strategic Alliance with the Brittish company Burns Philip and the manufacturing of Fleischamnn brand. The export to Nicaragua and Honduras is carried out through dealers.In 2000 HERMEL expanded their range of production. Since then, the Company started producing consumer goods like atole, soy beverage (Soyalin), spices, gelatins, etc. During 2004, thanks to USAID-EXPRO support, HERMEL began exports to the United States market by means of contracts with respectable distributors. Likewise, in 2004 a solid alliance with a distributor of the CARICOM zone and Trinidad & Tobago was established. Taking advantage of the opening of the Central American market in exports and the Central American Free Trade Agreement with the United States, HERMEL pioneered in 2006 in exporting products such as atole, gelatins, spices and Soyalin, to the North American market, mainly in cities such as Las Vegas and Los Angeles. In 2007 HERMEL managed to successfully obtain the certification ISO 9001-2000 which is renewed annually, thus guaranteeing great standards of quality to all of their products.In 2008 the star brand "Soyalin" is relaunched with an improved formula and new packing, which was successfully received by the consumer. |
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SIC Classification |
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Main activity |
Importation, commercialization and distribution of products under two major categories: Inputs for the food industry and end consumer products.Main products include: Baking powder, baking mixes, basic dyes, spices, , food flavorings.The consumer category includes soy beverages, gravies, jellies, sauces, spices, among others.Brands: "SOYALIN", "VITARINA", "INSTANT ATOLE", "HERMEL", "GELLI" |
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Import |
Yes |
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Country |
Spain,
Mexico, USA, Holland, Germany, China and France |
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Export |
Yes |
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COUNTRY |
Central
America, Mexico and USA, via bank transfers |
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% CASH SALES / METHOD |
20% |
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% Credit SALES / Terms |
80%
(30 days) |
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% Ventas exterior (Paises) |
25% |
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SELLING TerritorY |
Domestic
market -75% |
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EMPLOYEES |
50 |
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Comments |
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The Company has two commercial units:- CONSUMER PRODUCTS: Sale of instant powder beverage (Atol and vitarina), desserts (jelly, pudding, custard and whipped cream), sauce (Worcestershire sauce, soy, hot sauce), condiments (seasoning, tortilla soup)- INDUSTRIAL PRODUCTS: Flavors, colorings, chemicals for the food industry and supplies for baking (baking powder, custard and whipped cream)Main customer is El Eden Inc (USA)
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Disposition |
Poor. Very few information was
given. Politely. |
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Interviewee(s) |
People at the Accounting
Department |
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Information provided |
Despite the efforts made, it was not possible to contact main executives of the Company.People at the Accounting Department only confirmed general information and said they were very busy to disclose the financials. They only referred that figures for the FY 2012 were not still available.Latest available information in our databases is Balance Sheet for the FY as of 31/12/2011 (12 months), expressed in US$ Dollars. |
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FINANCIAL SITUATION |
Taking into account the last Financial Statement submitted and/or other factors analyzed, we believe that financial Situation of the Company is GOOD due to the following considerations:- Liquidity Ratio is higher or similar than industry average- Positive working capital allows the Company to comply with payments promptly- Shareholders' equity covers its current liabilities largely- Economic results have been positive |
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Property of company comments |
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REAL ESTATES: The Company owns the facilities where it operates: Calle Sierra Madre Norte 20 Bis de la Residencial Montebello, San Salvador.VEHICLES: The Company owns the following vehicles:(01) Motorcycle Brand "Honda", model 2007, plate M57821(01) Panel "CHEVROLET", 2006, plate P84365(01) Automobile trademark "BMW", 2006, plate P114772(01) Truck "ISUZU", 2005, plate C86015(01) Automobile "MITSUBISHI", 2005, plate P131307(01) Automobile brand "TOYOTA", 2004, shooting plate P240740(01) Pick Up "NISSAN", 2003, plate 329919(01) Truck "ISUZU", model 2003, plate P508058(01) Automobile trademark "BMW", 1998, plate P413518(01) Pick Up "TOYOTA", 1996, plate P574359(01) Automobile "CHEVROLET", 1995, plate P277343 |
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INSURANCE |
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TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS
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TRADE REFERENCES |
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Note
: Other suppliers did not provide information or could not be consulted |
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LAWSUITS No legal actions or claims have been initiated against this Company. |
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CREDIT
HISTORY Previous reports show payments made on time. |
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REPUTATION |
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NOTHING AGAINST COMPANY |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.40 |
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1 |
Rs.81.56 |
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Euro |
1 |
Rs.71.23 |
INFORMATION DETAILS
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Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.