MIRA INFORM REPORT

 

 

Report Date :

04.10.2013

 

IDENTIFICATION DETAILS

 

Name :

SUN CHEMICAL (CHILE) S.A.

 

 

Registered Office :

Santa Bernardita 12035  San Bernardo - Maipo  XIII Region Metropolitana

 

 

Country :

Chile

 

 

Date of Incorporation :

1989

 

 

Legal Form :

Private Stock Company

 

 

Line of Business :

Manufacture of printing ink

 

 

No. of Employees :

180

 

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 approximately one-third of GDP, with commodities making up some three-quarters of total exports. Copper alone provides 19% of government revenue. From 2003 through 2012, real growth averaged almost 5% per year, despite the slight contraction in 2009 that resulted from the global financial crisis. 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 has 22 trade agreements covering 60 countries including agreements with the European Union, Mercosur, China, India, South Korea, and Mexico. Chile has joined the United States and nine other countries in negotiating the Trans-Pacific-Partnership trade agreement. In 2012, foreign direct investment inflows reached $28.2 billion, an increase of 63% over the previous record set in 2011. The Chilean Government has generally followed a countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and generally allowing deficit spending only during periods of low copper prices and growth. As of 31 December 2012, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $20.9 billion. Chile used these funds to finance fiscal stimulus packages during the 2009 economic downturn. In May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD

Source : CIA


 Company name and address


SUN CHEMICAL (CHILE) S.A.


Santa Bernardita 12035  San Bernardo - Maipo  XIII Region Metropolitana CHILE

Telephone    :    56-2-25102000, 56-2-25102027, 56-2-25102059
Fax          :        56-2-25539225
E_Mail       :      alejandra.cruz@sunchemical.com, pedro.sandoval@sunchemical.com
Web Site     :     www.sunchemical.com

 

summary


Started                          :  1989
Total Employees              : 180
Payments                                   : See Commercial Record
Capital                           : 000's$      3.644.224.-

Sic(s) : 2893

Line of Business: Manufacture of printing ink.

EVALUATION

Risk level = 2

Interpretation at the end of the report.

Credit Recommendation

                                            000's Pesos   000's US$ dollars         000's Euros
Conservative value :                    260.000                 509                 387
Liberal value      :                       286.000                 560                 426

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

Payment Scoring = [ 90 ]

Financial indicators

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



 


COMMERCIAL INFORMATION

Commercial Bulletin      :            As at 01/10/2013 subject does not register protested
                                                checks, bank drafts nor promissory notes in the
                                                commercial information bulletin

Labor Bulletin                :           As at 01/10/2013 does not register work infringements

Previsional Bulletin         :           As at 01/10/2013 does not register social security
                                                infringements

Consolidated delinquency :         As at 01/10/2013, subject registers the following
                                                delinquent bill

Detail of Delinquent Debts

Date       : 05/09/2013
Note       : Pay voucher
Value      : Ch$ 40.007,00
Drawer    : Autopista Central S.A.
City         : -

TRADE REFERENCES

Suppliers' trade references are supplied as follows:

Detail of References

Old                    : Since 2004
Last purchase     : 08-2013
Terms               : 60 days
Payment           : Prompt
Notes                : invoice
Credit                : (000'sUS$) 450.000
Owes                : (000'sUS$) 300.000
Due                  : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly 000's$) 125.000
Old                   : Since 2000
Last purchase    : 08-2013
Terms               : 60 days
Payment           : Prompt
Notes                : bank transfer
Credit                : (000'sUS$) 150.000
Owes                : -
Due                  : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly 000's$) 80.000

Detail of Former Trade References
--------------------------------------------------------------------------------
                   Last                                                       Credit                    Owes
Old 

(000'sUS$) Purch         Payment.       Note                  (000'sUS$)
--------------------------------------------------------------------------------
Since 1994   07-11         Prompt      sight draft                      -                  None
Since 2000   11-11         Prompt      bank transfer              150.000               -
Since 1994   07-10         Prompt      sight draft                   Open               None
Since 2000  12-09          Prompt      invoice                       Open               None
Since 1994  12-09          Prompt      sight draft                   Open               None
Since 1994  04-09          Prompt      sight draft                   Open                 -
Since 1992  04-09          Prompt      invoice                       Open               None
Since 2000  04-09          Prompt      invoice                       Open               None
Since 2000  04-09          Prompt      invoice                          -                   None
Since 1994  04-09          Prompt      sight draft                   Open               None
15 years      08-08          Prompt      sight draft                   Open               None
15 years      04-07          Prompt      sight draft                   Open               1.000
Since 1995  05-07          Prompt      order form                  72.000             None
Since 1997  04-07          Prompt      invoice                     20.000               -
10 years      08-06          Prompt      not specified                    -               -
10 years      08-06          Prompt      checks                        Open               -
5 years        08-06         Prompt      invoice                     35.000               -
15 years      08-06          Prompt      sight draft                   Open               -
15 years      03-06          Prompt      sight draft                   Open               -
10 years      03-06          Prompt      checks                        Open               -
5 years        03-06         Prompt      invoice                     35.000               -
10 years      03-06          Prompt      not specified                    -               -
8 years        08-05         Prompt      not specified                    -               -
10 years      08-05          Prompt      checks                        Open               -
15 years      08-05          Prompt      sight draft                   Open               -
5 years        08-05         Prompt      invoice                     35.000               -
5 years        03-05         Prompt      invoice                     35.000               -
15 years      03-05          Prompt      sight draft                   Open               -
10 years     03-05           Prompt      checks                        Open               -
8 years       03-05          Prompt      not specified                    -               -
8 years       11-04          Prompt      not specified                    -               -
5 years       11-04          Prompt      invoice                     35.000               -
15 years     11-04           Prompt      sight draft                   Open               -
10 years     11-04           Prompt      checks                        Open               -
5 years       03-04          Prompt      invoice                     35.000               -
10 years     03-04           Prompt      checks                        Open               -
8 years       03-04          Prompt      not specified                    -               -
15 years     03-04           Prompt      sight draft                   Open               -

During the last 6 months, the account holder credit history shows 30 credit  review inquiries requested by financial institutions, telecommunications  companies, consulting agencies.

Subject registers 1 delinquent payment included in the 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 bank:

-  Banco de Chile
-  Banco Santander Chile


OPERATIONS

Line of Business : Factory of printing, typographic inks, offset, tinplate, flexographic, liquid & paste inks.

 CERTIFICATION ISO 9001:2000

Classification according to commercial activity:

Sic: 2893-0000 Printing ink

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: 98%.

Sales conditions:           Term payments to 30 days and term payments to 60-90 days with
                                   Current Account.

International: 2%.

Sales conditions: Letter of credit.

Exports to Argentina, Bolivia, Brazil, Colombia, El Salvador and Italy.

of Exports obtained from Customs'National Service

Country                            %last year   %Accum.
-------------------------------------------------------
Argentina                               49,44       52,93
Bolivia                                   23,46        36,63
Brazil                                    18,60        1,69
Colombia                              3,32          8,74
El Salvador                           3,25           0,00
Italy                                       1,93         0,00

Historical registries

Total       2012 = 000's$ 504.905             Accumulated 2013 = 000's$ 314.915
Total       2010 = 000's$ 794.681
Total       2009 = 000's$ 480.216
Total       2008 = 000's$ 438.866
Total       2007 = 000's$ 386.032
Total       2006 = 000's$ 402.043
Total       2005 = 000's$ 264.210
Total       2004 = 000's$ 320.897


Customers

Main customers are: Wholesale,  publishing company,  companies in general.

The 4 most important customers are:

Marinetti S.A.,  Editorial Lord Cochrane S.A.,  Envases Impresos S.A. and
Quad/Graphics Chile S.A.

Purchases

Places orders with multiple suppliers

National: 35%

Purchase conditions: Cash and credit with  Current Account.

International: 65%

Purchase conditions: Direct collection.

Imports from Germany, Argentina, Austria, Belgium, Brazil, Canada, China,
Colombia, South Korea, El Salvador, Spain, Finland, France, Netherlands, India,
England, Italy, Mexico, Unknown Origin/Destin., Southafrica, Switzerland,
Taiwan, Thailand, United States and Uruguay.

of Imports obtained from Customs'National Service

Country                            %last year   %Accum.
-------------------------------------------------------
United States                           25,05     22,22
Germany                                   18,23     18,09
Spain                                        10,56      6,46
India                                         9,72     12,94
Finland                                      6,89      7,77
France                                      5,56      7,19
China                                        5,18      8,84
Italy                                          4,53      1,66
South Korea                                          3,04      2,42
Austria                                      1,87      3,69
Belgium                                    1,69      1,09
Argentina                                  1,39      0,14
Canada                                     1,09      0,89
Brazil                                        0,87      2,16
England                                    0,85      2,25
Thailand                                    0,69      0,00
Southafrica                                0,65      1,23
Netherlands                               0,64      0,73
Taiwan                                      0,58      0,00
Mexico                                      0,37      0,12
Unknown Origin/Destin.              0,30      0,00
Colombia                                   0,13      0,00
Uruguay                                    0,08      0,00
Switzerland                              0,02      0,00
El Salvador                                0,02      0,00

Historical registries

Total       2012 = 000's$ 5.996.363                       Accumulated 2013 = 000's$ 3.359.125
Total       2010 = 000's$ 9.020.835
Total       2009 = 000's$ 6.562.745
Total       2008 = 000's$ 9.242.873
Total       2007 = 000's$ 7.458.818
Total       2006 = 000's$ 7.231.209
Total       2005 = 000's$ 7.748.006
Total       2004 = 000's$ 7.472.509


Main suppliers (03/09/2013)

- Basf Chile S.A.
- Brenntag Chile Comercial e Industrial Limitada
- Clariant Colorquimica (Chile) Limitada
- Empresa Nacional de Energia Enex S.A.
- Industrias Quimicas Reno S.A.
- Manufacturas Metalurgicas Rheem Chilena Limitada
- Oxiquim S.A.
- Petrobras Chile Distribución Ltda.

Employees: 180 employees

Location

-  General offices located at Santa Bernardita 12035 San Bernardo, Chile,
   commercial area, street of normal traffic, construction in good conditions

Branches (30/08/2013)

-  Sales room at San Diego 624 Santiago Chile


RELATED COMPANIES

Subject does not have any related company.

FIXED ASSETS

Real estates (30/08/2013)

Subject registers real estates

-  Industry, Avda. Vicuña Mackenna 4525 (Antigua Planta hasta principios del
   2012) San Joaquín Santiago-Chile, Fiscal value of 000's$ 598.450.-, rol Nº
   3600-5
-  Facility, Miraflores 419 Bx. 59 Santiago-Chile, Fiscal value of 000's$
   4.465.-, rol Nº 151-374

Total fiscal appraisal $ 602.915.539.-

Informed that these properties were sold and nowadays are owners of property
located at heading address.

Vehicles

Subject has no vehicles

Machinery & Instalations

Equipments and machinery, not specified


INSURANCES

Insurance Company:

-Liberty Cia. de Seguros Generales S.A.

In force         : Annual
Risks            : All risks.
Objetive         : Assets in general.
Taken out through Aon Corredores de Seguros (Insurance Brokers)


ADMINISTRATION

General Manager                       : Gabriel Silberstein Ortíz TAX:10216195-5
Production Manager                   : Hernán Rodrigo Caro Faundez TAX:8108070-4
Technical Manager                     : Carmen Ureta Zañartu
(Solid inks)
Technical Manager                     : Andrés Luis Donoso Pardo TAX:9907410-8
(Liquid inks)
Adm. & Finances Manager         : Julio Pauliac Pérez
Accountant                                : Pedro Sandoval Jara
Treasurer                                   : José Luis Bobadilla


LEGAL INFORMATION (30/08/2013)

Legal Structure      :       Private Stock Company
Constitution date    :       29/09/1989. Registered on leaf 26.281 N°13.294 Santiago
                                    Trade Register year 1989 under the business name QUIMICAL
                                    SOL S.A.
Notary                           : Alvaro Bianchi Rosas, Santiago
Term of duration             : Indefinite
Legal Address               : Santiago - Chile
Published in                  : Official Gazette dated 06/10/1989 page Nº 10

Current Social Capital: 000's$ 3.644.224.-Divided to 154.745.- registered shares  unique series

Shareholder : 2

-  80,00% Sun Chemical Group Cooperatief U.A. (Netherlands)
-  20,00% Sun Chemical S.R.L. (Spain)

Administration is held by General Manager.

Legal changes

Public Deed dated 21/08/1996, notary Luis Poza Maldonado, Santiago, published in
the Official Gazette dated 31/08/1996 page N° 12, corporate name was modified:
QUIMICA SOL S.A. was replaced by SUN CHEMICAL  (CHILE)S.A.

Public Deed dated 27/01/1997, notary Luis Poza Maldonado, Santiago, published in
the Official Gazette dated 08/02/1997 page N° 11, statutes were modified:
subject agreed to take over the companies QUIMICA FLESH S.A, INDUSTRIA DE TINTAS
Y PINTURAS S.A., and AQUA PRINT S.A. which were automatically dissolved.
Consequently, capital was increased: to $3.644.215.860 divided into 154.745
registered, no par value shares of one same series.


INFORMATION SOURCES

On 30/08/2013 Mr. Pedro Sandoval Jara, Accountant,  declined financial
statements according to policies of the company,  submitted just general
information.

-Other outside information sources.


 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.93

UK Pound

1

Rs.100.44

Euro

1

Rs.84.24

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.