MIRA INFORM REPORT

 

 

Report Date :

22.09.2013

 

IDENTIFICATION DETAILS

 

Name :

RAYOVAC GUATEMALA SA

 

 

Registered Office :

Colonia Santa Isabel Jocotales, Zona 6 Guatemala City

 

 

Country :

Guatemala

 

 

Date of Incorporation :

February 1961

 

 

Legal Form :

Stock Company

 

 

Line of Business :

Manufacture of batteries (dry) and in a lesser extent release paper used in the manufacture of batteries.

 

 

No. of Employees :

220

 

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 :

Slow but correct

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)

Guatemala

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

GUATEMALA - ECONOMIC OVERVIEW

 

Guatemala is the most populous country in Central America with a GDP per capita roughly one-half that of the average for Latin America and the Caribbean. The agricultural sector accounts for 13% of GDP and 38% of the labor force; key agricultural exports include coffee, sugar, bananas, and vegetables. The 1996 peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, and since then Guatemala has pursued important reforms and macroeconomic stabilization. The Dominican Republic-Central American Free Trade Agreement (CAFTA-DR) entered into force in July 2006 spurring increased investment and diversification of exports, with the largest increases in ethanol and non-traditional agricultural exports. While CAFTA-DR has helped improve the investment climate, concerns over security, the lack of skilled workers and poor infrastructure continue to hamper foreign direct investment. The distribution of income remains highly unequal with the richest 20% of the population accounting for more than 51% of Guatemala's overall consumption. More than half of the population is below the national poverty line and 13% of the population lives in extreme poverty. Poverty among indigenous groups, which make up 38% of the population, averages 73% and extreme poverty rises to 28%. Nearly one-half of Guatemala's children under age five are chronically malnourished, one of the highest malnutrition rates in the world. Given Guatemala''s large expatriate community in the United States, it is the top remittance recipient in Central America, with inflows serving as a primary source of foreign income equivalent to nearly two-fifths of exports or one-tenth of GDP. Economic growth fell in 2009 as export demand from US and other Central American markets dropped and foreign investment slowed amid the global recession. The economy gradually recovered in 2010-12

Source : CIA


REGISTERED NAME & COMPANY SUMMARY

 

IDENTIFICATION

COMPANY NAME

RAYOVAC GUATEMALA SA

TRADE NAME

RAYOVAC GUATEMALA

TAX ID TYPE

NIT

TAX ID NUMBER

33196-1

CURRENT STATUS

Active

MAIN ADDRESS

Colonia Santa Isabel Jocotales, Zona 6

CITY/PROVINCE/STATE

Guatemala City

PHONE NUMBER(S)

(502)2422.8000

FAX NUMBER

(502)2289.1765/2422.8049

E-MAIL

cortiz@gt.rayovac.com

WEB SITE

www.la.rayovac.com (Group's website)

PAYMENT HISTORY

EP. A: PAYMENTS USUALLY PROMPT

COMMENTS OF IDENTIFICATION.-

Another e-mail address: productos@gt.rayovac.com The present report was ordered as: RAY O VAC. Please be advised that the correct name of the subject is as shown in the heading. Also, it was ordered with address: 28 Calle B Final Lote 2, Colonia San Rafael Zona 6, 01006 Guatemala City, which corresponds to a branch of the subject. Please note that the main address of the subject is the one shown in caption.

 

LEGAL ASPECTS

LEGAL STATUS

Stock Company

INCORPORATION DATE

February 1961

REGISTERED IN

Guatemala City

DURATION

Unlimited

REGISTRATION

No.255, Folio No.5, Book 2

PAID-UP CAPITAL

Q.3,500,000.00 Quetzales

TYPE OF SHARES

Registered shares

LISTED AT STOCK EXCHANGE

NO

RATE OF EXCHANGE

US$1.00 = Q.7.91 (as of report date)

BACKGROUND (HISTORY).-

The subject was originally incorporated in February 1961, with company name DURALUX SA. Later, on 20/05/1971, subject was registered in the Public Registry , and on 16/10/1971, it was entered into the Commercial Registry. By Public Deed, dated 13/04/2000, before Notary Anabella Bruni de Bermudez, subject changed its company name to current one shown in caption: RAYOVAC GUATEMALA SA.

COMMENTS RELATED COMPANIES

The subject is subsidiary of RAYOVAC CORPORATION (USA), which in turn is subsidiary of SPECTRUM BRAND Group. RAYOVAC CORPORATION is a corporation with companies around the world. It also has distribution centers in the USA, Canada, Hong Kong and Latin America, as well as sales offices in the USA, Canada, Hong Kong, Argentina, Chile, Colombia, Dominican Republic, El Salvador, Grand Cayman Island, Guatemala, Mexico, Honduras and Venezuela. It is a global company of consumer products.

 

 

CREDIT RECOMMENDATION

 

Current Credit Limit: maximum credit figure of US$250,000.00 Dollars

 

CREDIT OPINION

COMMENT: The subject is an industrial company with 52 years in the market, which seems to be operating normally. It holds good equity back up and it is part of a solid business group. Besides, it counts with positive trading references. Hence, we consider it is suitable for a maximum credit figure of US$250,000.00 Dollars.

 

CREDIT OPINION

COMMENT: The subject is an industrial company with 52 years in the market, which seems to be operating normally. It holds good equity back up and it is part of a solid business group. Besides, it counts with positive trading references. Hence, we consider it is suitable for a maximum credit figure of US$250,000.00 Dollars.

 

 

DIRECTORS/MANAGEMENT

 

BOARD OF DIRECTORS-EXECUTIVES-SHAREHOLDERS

NAME

JOB TITLE

% STAKE

JONES, DAVID

President

 

FLORES SALAS, LUIS EDUARDO

Production Manager

 

ORTIZ, CARLOS ALFREDO

Commercial Manager

 

DOMINGUEZ OAJACA, CLAUDIA PATRICIA

Proxy

 

CABALLEROS POLANCO, JUAN JOSE ULISES

Proxy

 

MONTES MARROQUIN, RENE

Proxy

 

SANCHEZ , HELEM

Accountant

 

RAYOVAC CORPORATION (USA)

Shareholder

100%

 

 

NEGATIVE INFORMATION

 

LITIGATIONS

No detrimental against the subject were found.

 

SHARE & SHARE CAPITAL INFORMATION

 

PAID-UP CAPITAL

Q.3,500,000.00 Quetzales

TYPE OF SHARES

Registered shares

 

SHAREHOLDERS

NAME

JOB TITLE

% STAKE

RAYOVAC CORPORATION (USA)

Shareholder

100%

 

 

PAYMENT INFORMATION

 

PAYMENTS

TRADE REFERENCES

TYPE OF SUPPLIER

NATIONAL

ACCOUNT OPENED

Since 25 years ago

CREDIT FACILITIES

Q.500,000.00 Quetzales

MONTHLY AVERAGE

Q.200,000.00 Quetzales

DEADLINES

Terms at 30 days

PRODUCTS SOLD

Packing material

RATING

PROMPT

COMMENTS.-

Payments by checks.

 

TYPE OF SUPPLIER

NATIONAL

ACCOUNT OPENED

Since July 2004

CREDIT FACILITIES

Q.3,000,000.00 Quetzales

MONTHLY AVERAGE

Q.1,400,000.00 Quetzales

DEADLINES

Terms at 60 days

PRODUCTS SOLD

Packing material

RATING

PROMPT

COMMENTS.-

Payments via bank transfers. Last Purchase: August 2013

 

TYPE OF SUPPLIER

INTERNATIONAL

ACCOUNT OPENED

Since 2010

CREDIT FACILITIES

In cash

PRODUCTS SOLD

Mechanical products

RATING

WITHOUT CREDIT EXPERIENCE

COMMENTS.-

Rated as Good Client.

 

CREDIT FILES

Other consulted suppliers did not provide information about their clients as per confidentiality policies.

 

LOCAL SUPPLIERS

Name

Contact

Telephone

CAJAS Y EMPAQUES DE GUATEMALA SA

Marco Tulio Delgado

(502) 2424.3300

TAPAMETAL DE GUATEMALA

Edwin Amado

(502) 6628.0500

CENTRAL DE EMPAQUES SA

Monica Maza

(502) 2326.5600

BIC DE GUATEMALA

Cindy Alvizur

(502)2422.8000

 

FOREIGN SUPPLIERS

Name

Contact

Telephone/fax

Country

INTERMEC SA

Angela Corrales

(57-1) 742.8300

COLOMBIA

GRILLO WERKE AKTIENGESELLSCH AFT

 

 

GERMANY

OTTO WOOLF

 

 

GERMANY

SIFA PLAST SPA

 

 

ITALY

CIA. MINERA AUTLAN SA DE CV

 

(52-81) 8152.1500

MEXICO

DALAS GROUP

 

 

U.S.A.

EURO CONTROL

 

 

SPAIN

UNION MINES

 

 

BELGIUM

MITSUICO

 

 

JAPAN

CHEVRON CHEMICAL

 

 

U.S.A.

RAY-O-VAC

 

 

JAPAN

ASIA TRADING

 

 

TAIWAN

RAYOVAC DE MEXICO SA DE CV

 

(52-55) 5565.5000

MEXICO

DAISCHI CARBON

 

 

JAPAN

DRIFELL TRADING

 

 

SOUTH AFRICA

MICROLITE SA

 

(55-11) 2147-2111

BRAZIL

OVERSEAS TRADING CONRAD JACOBSON GMBH

 

 

GERMANY

JIAOZUO XINDA CHEMICAL INDUSTRY CO LTD

 

 

CHINA

PANASONICCARBON ANYANG CO LTD

 

 

CHINA

DENKA SINGAPORE PTE LTD

 

 

SINGAPORE

DELTA EMD PTY LTD

 

 

SOUTH AFRICA

 

 

GROUP STRUCTURE & AFFILIATED COMPANIES

 

RELATED COMPANIES

NAME

TAX ID. NUMBER

COUNTRY

DISTRIB. RAYOVAC GUATEMALA SA

32121-4

GUATEMALA

INDUSTRIAS DE PILAS SA

HE9LX-4

HONDURAS

RAYOVAC CHILE SOC. COM. LTDA

77.373.620-0

CHILE

RAYOVAC DE MEXICO SA DE CV

ROV-730726-UYO

MEXICO

RAYOVAC DE VENEZUELA SA

J-07506682-0

VENEZUELA

RAYOVAC DOMINICANA SA

10100952-7

DOMINICAN REPUBLIC

RAYOVAC EUROPA LIMITED

 

ENGLAND

RAYOVAC FAR EAST LIMITED

 

HONG KONG

RAYOVAC-VARTA SA

890803029

COLOMBIA

COMMENTS ON LEGAL ASPECTS .-

The subject is member of the Chamber of Industry of Guatemala. Besides, it is member of the American Chamber of Commerce in Guatemala.

 

 

FINANCIAL INFORMATION

 

FINANCIAL INFORMATION

CONTENT.-

We had an interview with Miss Brenda de Cano (Accounting Department), who only supplied general data on the subject, declining to furnish commercial data for considering it as confidential. Therefore, we had to consult the outside sources; however, they did not provided us with financial statements, neither. The subject is an industrial company with long experience in business which registers no detrimentals regarding its trade operations. The subject is an industrial company incorporated in 1961, which registers no detrimentals regarding its commercial operations. COUNTRY CONTEXT - GUATEMALA: The below information has been obtained from a highly regarded public source that issues comments on all of worlds? countries. Taxes: · Guatemalan income tax: 5% on the net profit-business: · Alphabetic currency code for every country by the International Organization for Standardization (ISO) 4217:Quetzal (GTQ). Main economic indicators: · External debt: US$16.17 billion (31 December 2012 est.) · International net reserves: US$6.311 billion (31 December 2012 est.) · Inflation rate forecasted : 4% (2012 est.) · GDP real growth rate: 3.1% (2012 est.) · Annual GDP per capita: US$5,200 (2012 est.) GDP - composition by sector: agriculture: 13% industry: 23.8% services: 63.2% (2012 est.) · Labuor force of 5.571 million people divided by: agriculture: 38% industry: 14% services: 48% Unemployment rate: 4.1% (2011 est.) Productivity sectors: Agriculture - products: sugarcane, corn, bananas, coffee, beans, cardamom; cattle, sheep, pigs, chickens · Industrial- products:: sugar, textiles and clothing, furniture, chemicals, petroleum, metals, rubber, tourism Foreign trade: Exports: US$9.864 billion (2012 est.) country comparison to the world: 95 Exports - commodities: coffee, sugar, petroleum, apparel, bananas, fruits and vegetables, cardamom Exports - partners: US 37.9%, El Salvador 10.5%, Honduras 6.8%, Mexico 5.1% Imports: US$15.57 billion (2012 est.) country comparison to the world: 86 Imports - commodities: fuels, machinery and transport equipment, construction materials, grain, fertilizers, electricity, mineral products, chemical products, plastic materials and products Imports - partners: US 40.4%, Mexico 11.6%, China 8.2%, El Salvador 4.5% Final Brief: Commercial Country Risk: LOW Political Country Risk: LOW

INSURANCE.-

The subject holds an insurance policy against all-risk, with SEGUROS EL ROBLE SA, valid until 30/09/2013, with a coverage amount of US$25,000,000.00 Dollars.

 

 

FOREIGN EXCHANGE RATES

 

RATE OF EXCHANGE

US$1.00 = Q.7.91

 

 

ADDITIONAL INFORMATION

 

OPERATIONS

SECTOR

1.-INDUSTRY

ACTIVITY

ELECTRICAL MATERIALS

ISIC CATEGORY

D-MANUFACTURING INDUSTRIES (ELABORATION, MANUFACTURING, PRODUCTION, PUBLISHING, CASTING, CONSTRUCTION)

ISIC CLASS

3140-Manufacture of accumulators, primary cells and primary batteries

MAIN ACTIVITY

The subject is engaged in the manufacture of batteries (dry) and in a lesser extent release paper used in the manufacture of batteries. Products: batteries (alkaline batteries, dry electric batteries). House brand: "RAY-O-VAC"

% CASH SALES/PAYMENT METHOD

5%

% CREDIT SALES/TERMS

95% (Terms at 30, 45 and 60 days)

TERRITORY OF SALES

62% (Domestic market)

% FOREIGN SALES

38%

N. OF EMPLOYEES

220

 

LOCATION

ADMINISTRATIVE OFFICES and INDUSTRIAL PLANT: Located at the address shown in caption, in an industrial zone of the city. Owned premises with a total area of 30,000sq.m. ANOTHER PREMISE: - 28 Calle B, Lt.2, Finca San Rafael, Jocotales, Zona 6.

COMMENTS OF OPERATIONS.-

The subject imports raw material from Germany, Colombia, Italy, USA, South Africa, Brazil, China, Singapore, Belgium, England, Spain, Japan and Mexico. Likewise, it exports batteries and release paper to France, Colombia, Mexico, Costa Rica, Nicaragua, Chile, Dominican Republic, Honduras and El Salvador. The 87% of raw material used in the manufacture of batteries is imported, being main ones: manganese, zinc, lampblack, asphalts, paper, etc. Imports are made against credit at 45, 60 days. Products are distributed 100% on a wholesale basis. In national market it operates through distributor: DISTRIBUIDORA RAYOVAC DE GUATEMALA SA. Likewise, in foreign market it also sells through distributors. The subject covers all the Guatemalan Republic, some of its clients are supermarkets, malls among others.

 

BANKERS / REFERENCE

Bank Name

Account Number

Account Officer

Telephone

Country

BANCO INDUSTRIAL SA

 

 

 

GUATEMALA

BANCO UNO SA

 

 

 

GUATEMALA

CITIBANK DE GUATEMALA SA

 

 

 

GUATEMALA

BANK COMENTS

The subject performs trade and bank operations through the above banks, which reported well managed accounts. Without further details.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.24

UK Pound

1

Rs.99.90

Euro

1

Rs.84.23

 

 

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.