MIRA INFORM REPORT

 

 

Report Date :

08.04.2014

 

IDENTIFICATION DETAILS

 

Name :

ECUAWOOD S.A.

 

 

Registered Office :

Av. Septima 300 y Calle Tercera, sector de Mapasingue Oeste – Guayaquil Guayas

 

 

Country :

Ecuador

 

 

Date of Incorporation :

27.01.2005

 

 

Legal Form :

Stock Company (Ecuador)

 

 

Line of Business :

Export of wood

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

Payment Behaviour :

Delayed

Litigation :

Exist

 


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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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. 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 and address

ECUAWOOD S.A.

Av. Septima 300 y Calle Tercera, sector de Mapasingue Oeste – Guayaquil Guayas ECUADOR

Telephone    : 593-09-89153043

E_Mail       : mjbv05@gmail.com

SUMMARY

Started                           : 2005
Payments                       : Slow
Subscribed Capital           : US$            800.-
Authorized Capital           : US$          1.600.-

Sic(s)                            : 5031

Line of Business           : Export of wood

Financial indicators

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

COMMERCIAL INFORMATION

Commercial Bulletin      : As at 28/02/2014 subject does not register protested checks in the national central of risk


TRADE REFERENCES (02/04/2014)

Since all information on suppliers was declined, credit experiences could not be obtained


- Tax Status: Current obligations fulfilled

Up to April 02, 2014 (last available report) this company HAS delayed paymnents in the IESS (Ecuadorian Institute of Social Security), in the amount of US$ 3,519.88.

Detail of Bank References

Bank                     : Banco Pichincha C.A.
Law Suit                 : US$ 5.331,00
Expired                  : US$ 5.331,00


Ecuawood S.A. has overdue debts for US$ 10.662,00, and US$ 5.331,00 of them are in a judicial lawsuit registered up to February 2014

Average amount of indebtedness registered by the subject, in the National Financial System:
During 2013 was US$ 9.784,36



Indebtedness with 9 months past due.
Date                             amount in US$
February, 2012                  4.436,01

BANKS

The main bank is:

Banco Pichincha C.A.

OPERATIONS (02/04/2014)

Line of Business : Wood exportation

The line of business registered at the Internal Revenue Services(IRS) is: ACTIVITIES OF CONSTRUCTION IN GENERAL     

Social objective registered at the Superintendency of Companies is: This Company will be engaged in the  exportation of all kind of wood either in natural state or processed

Classification according to commercial activity:

Sic: 5031-0000 Lumber, plywood, and millwork

Sales


Sales are steady throughout the year

International sales territory

Exports to China, Israel.

They informed that they export to several countries of the world without giving more details. They also said not to remember Woodstar Wood Solutions (2010), because they have many customers in Israel.

Customers

Main customers are: Foreign companies.

Employees:  Number of employees unknown

Location

-  The administrative offices are located at Av. Septima 300 y Calle Tercera, sector de Mapasingue Oeste  Guayaquil Guayas, Ecuador

Branches (02/04/2014)

Subject does not have any branch

-  The phone number 005093-4200022 supplied in the order form does not belong to the company

RELATED COMPANIES (02/04/2014)

Subject is related with the following company:

Bazurto Vargas Alicia Brigida T A X : 0904644077001

INSURANCES (02/04/2014)

Insurance details were declined.

 


ADMINISTRATION


General Manager            : Manuel Jose Basurto Vargas TAX:0991097872001

President                        : Alicia Brigida Bazurto Vargas TAX:0904644077001



CURRICULUM


Manuel Jose Basurto Vargas


T A X               : 0991097872001

Position               : General Manager

Mercantile Register : Number 8299 of 06/05/2010

Previously                     : He was legally registered at the IRS to perform personal business from 12-12-1990 until 13-09-2006. His registered business activity was: Sale of food and beverages in bars,     restaurants, seafood restaurants, He did not have a trade name.  Currently, it is in Definite Suspension


Alicia Brigida Bazurto Vargas


T A X               : 0904644077001
Civil status        : Widow
Birth date          : 20/09/1940 -Ecuador
Position            : President
Mercantile Register : Number 8108 of 05/05/2010
Simultaneously      : She is legally registered at the IRS to perform personal business since January 26, 2000. Her registered business activity is: Activities of garment tailored production.  Her trade name is: "Taller Alicia"


LEGAL INFORMATION (02/04/2014)


Legal Structure       : Stock Company (Ecuador)
Constitution date     :  27/01/2005
Authorization         : Resolution Nº 7006
Notary                   : N° 7, Guayaquil Guayas
Term of duration      : 50 Year, ended on 27/01/2055
Legal Address         : Guayaquil - Ecuador
Published in          : Official Gazette dated 18/01/2005

Current Subscribed Capital: US$ 800.-Divided to 800.- common shares unique
                                    series amounting US$ 1.-
Authorized Current Capital: US$ 1.600.-
Subscribed Initial Capital: US$ 800.-
Paid-in Initial Capital: US$ 200.-
Authorized Initial Capital: US$ 1.600.-



Shareholders :

-  98,00% 0991097872001 Manuel Jose Basurto Vargas

-   2,00% 0904644077001 Alicia Brigida Bazurto Vargas


Legal representation is held by General Manager, President..


Legal changes


By Resolution Nº 4674 on 07/08/2009, published in the Official Gazette By  resolution Nº 4674 dated on 07/08/2009, the Superintendency of Companies decided  to declare inactive to the company Vidlet S.A., because it is immerse in the  causal of Art. 359 of the Companies ' Law, which says that the Superintendency
will be able to declare "inactive" to the companies under its control which have not been operating for two consecutive years. This inactivity is presumed when the company has not complied, in this period of time, with the requirements set out in the Art. 20 of this Law


Art. 20.- Companies established in Ecuador, under the control of the  Superintendency of Companies, will send to this institution, in the first quarter of each year the following information:


a.) Authorized copies of Annual Balance Sheet, State Income, as well as the  reports of the Administrators and Supervising Agencies.


b.) The list of Administrators, Legal Representatives and partners or shareholders


c.) All other information set out in the regulation issued by the Superintendency of Companies.


Rescind:

By resolution Nº 3370 dated 26/05/2010, the Superintendency of Companies decided:


Rescind the resolution Nº 4674 dated 07/08/2009 because the company has issued its Balance Sheets, therefore, it is no longer immersed in the reasons of inactivity or closing down.


INFORMATION SOURCES


On 02/04/2014 Mr. Manuel Jose Basurto Vargas, General Manager, declined 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


Macroeconomic Information

Interest Rate for the week of             10/03/2014 - 18/03/2014

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                          ( % ) 2,85 Feb/2014

Monthly Inflation                        ( % ) 0,11 Feb/2014

Accumulated                             ( % ) 0,83 Feb/2014




 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.95

UK Pound

1

Rs.99.36

Euro

1

Rs.82.15

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.