MIRA INFORM REPORT

 

 

Report Date :

05.08.2014

 

IDENTIFICATION DETAILS

 

Name :

GERARDO ORTIZ E HIJOS C. LTDA.

 

 

Registered Office :

A la altura del Km 1.5,  Av. Carlos Julio Arosemena S/N - Guayaquil  Guayas

 

 

Country :

Ecuador

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

16.01.1980

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Sale of goods in general

·         General items such as: raw material, equipment, finished  products, handicrafts, agriculture and building: 

·         imports  hardware, glass, toys, perfumes,  audio and video, home  appliances, construction materials, industrial machinery,  musical instruments, mass consumption products.

 

 

No. of Employees

1,229

 

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.

 

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 Delgado, 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 $9.9 billion in forward oil sales, project financing, and budget support loans as of December 2013. Foreign investment levels in Ecuador continue to be the lowest in the region as a result of an unstable regulatory environment, weak rule of law, and the crowding-out effect of public investments. In 2013, oil output marginally reversed a declining trend and production is expected to increase slightly in 2014, although prices will likely remain lower than in previous years. Faced with a 2013 trade deficit of $1.1 billion, Ecuador erected technical barriers to trade in December 2013, causing tensions with its largest trading partners. Ecuador also decriminalized intellectual property rights violations in February 2014

 

Source : CIA

 

 

 


Company name and address


GERARDO ORTIZ E HIJOS C. LTDA.

 (GERARDO ORTIZ E HIJOS )


A la altura del Km 1.5,  Av. Carlos Julio Arosemena S/N - Guayaquil  Guayas
ECUADOR

Telephone         : 593-7-2882594, 593-7-2887070, 593-7-2887766
Fax                   : 593-7-2883344

E_Mail              : cperalta@gerardoortiz.com; ecarrion@gerardoortiz.com, hcerillo@gerardoortiz.com
Web Site     :     www.gerardoortiz.com

summary

Started                          : 1980
Total Employees            : 1.229
Payments                      : Prompt
Financial Sit.                 : Acceptable
Economic Sit.                : Regular
Sales                            : US$    171.455.654.-
Net worth                      : US$     28.279.270.-
Current profit                  : US$     11.201.756.-
Subscribed Capital          : US$        700.000.-

Sic(s) : 5023 - 5031 - 5064 - 5251 - 5331

Line of Business: Sale of goods in general

 

evaluation



Interpretation at the end of the report.

Credit Recommendation

                                    Dollars
Conservative value :       6.000.000
Liberal value      :       6.600.000

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

Financial indicator


According to last financial statement, subject shows an acceptable financial
situation, as indicated in:

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

Economic situation is regular, as reflected in:

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

According to the SRI the most important figures as of December 31st, 2011 are:

Sales   US$ 158.712.464

Profit US$  11.594.600

According to magazine "Vistazo" Nº 1058 of September 22, 2011, this Company
was part of the "500 largest Companies of the Country" in year 2010, occupying
the 65 place

This partnership was part of the 500 largest Ecuadorian companies in 2009
occupying the 69 position

This partnership was part of the 500 largest Ecuadorian companies in 2008
occupying the 77 position


COMMERCIAL INFORMATION

Commercial Bulletin      : As at 31/12/2013 subject does not register protested
                                     checks in the national central of risk

TRADE REFERENCES (13/03/2014)

Other suppliers denied to bring references trade

Detail of References

Old                   : 5 years
Last purchase    : 01-2014
Terms               : 30-60 days
Payment           : Prompt
Notes                : checks
Credit                : Open
Owes                : Does not Register
Due                  : Does not Register
Paying Comments: Excellent
Purchase Aver. : (Monthly US$) 15.000

Detail of Former Trade References
--------------------------------------------------------------------------------
           Last                                           Credit            Owes
Old        Purch. Payment.    Notes                     (US$)        (US$)
--------------------------------------------------------------------------------
5 years    10-13  Prompt      checks                        Open            None
Since 1995 10-13  Prompt      checks                        Open            None
5 years    07-13  Prompt      checks                        Open            None
7 years    07-13  Prompt      checks                        Open            None
7 years    01-13  Prompt      checks                      60.000               -
10 years   02-13  Prompt      checks                      80.000               -
4 years    11-12  Prompt      checks                        Open            None
Since 1995 11-12  Prompt      checks                        Open            None
10 years   05-12  Prompt      checks                      80.000            None
Since 2005 05-12  Prompt      checks                      59.856            None
Since 2005 02-12  Prompt      checks                      50.700            None
10 years   02-12  Prompt      checks                     100.000            None
Since 1995 12-11  Prompt      checks                        Open            None
Since 1995 07-11  Prompt      checks                        Open            None
3 years    06-11  Prompt      checks                      13.500            None

- Tax Status: Current obligations fulfilled

- Special Taxpayer

- Legal Representative is not prevented from leaving the country

- Legal Representative does not register criminal

- Subject is not part of the Clinton List

- Subject does not appear as failed supplier of de State (INCOP)

- Subject does not appear as a later-payer at IESS to March, 2014

- Subject has prosecutions in the province registered as its legal address

- Special Taxpayer:  It has special features and obligations which allow apply a
better control in then taxes

- Clinton List: A list of companies and persons from all around the world
involved in the drugs traffic and money washign, it is issued by the Office of
Foreign Assets Control (OFAC)of the Treasury Department of the United Sates of
America

- INCOP: Instituto Nacional de Contratación Pública (National Institute of
Government Procurement), state entity.


Detail of Bank References

Bank                     : Banco de Guayaquil S.A.
To expire                : US$ 4.820.974,52

Bank                     : Banco Pichincha C.A.
To expire                : US$ 605.630,60

Total debt up to December 2013 is US$ 5.426.605,12



Average amount of indebtedness registered by the subject, in the National Financial System:
During 2011 was US$ 4.630.784,12
During 2012 was US$ 2.704.290,93
During 2013 was US$ 4.149.395,42



Indebtedness with 2 months past due.
Date                       amount in US$
November, 2011                      8,00

Income tax corresponding to the last years:
Year 2012: US$ 4.687.495
Year 2011: US$ 3.288.486
Year 2010: US$ 2.746.741
Year 2009: US$ 1.793.619




FINANCIAL INFORMATION


                                  S U M M A R Y
                           ( Figures in US$ Dollars )

                                                                      31/12/2012
CURRENT ASSETS                                                        98.477.481
CURRENT LIABILITIES                                                   86.045.154
WORKING CAPITAL                                                       12.432.327
FIXED ASSETS                                                          26.812.606
LONG TERM LIABILITIES                                                 10.965.663
NET WORTH                                                             28.279.270
OPERATING INCOMES                                                    171.455.654
CURRENT PROFIT(LOSS)                                                  11.201.756

                         

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

ASSETS                                                                31/12/2012
Cash                                                                   7.524.845
Sundry Debtors                                                        40.727.654
Inventory                                                             48.742.334
Other Current Assets                                                   1.482.648
CURRENT ASSETS                                                        98.477.481

Net Fixed Asset                                                       26.812.606
FIXED ASSETS                                                          26.812.606

TOTAL ASSETS                                                         125.290.087

LIABILITIES                                                           31/12/2012
Accounts Payable                                                      51.482.659
Notes Payable                                                          7.054.717
Other Current Liabilities                                             27.507.778
CURRENT LIABILITIES                                                   86.045.154

Notes Payable                                                          1.927.973
Other Long Term Liabilities                                            9.037.690
LONG TERM LIABILITIES                                                 10.965.663

Capital & Reserves                                                     1.682.932
Other Reserves                                                         3.931.011
Accumulated Profits                                                   11.463.571
Current Profit (Losses)                                               11.201.756
NET WORTH                                                             28.279.270

TOTAL LIABILITIES                                                    125.290.087

STATEMENTS OF RESULTS                                                 31/12/2012
Operating  Income                                                    171.455.654
Operating Cost                                                      -124.565.233
OPERATING MARGIN                                                      46.890.421

Administration & Sales Expenses                                      -32.090.480
OPERATING RESULT                                                      14.799.941

Other non Operating Incomes                                            3.893.297
NON OPERATING RESULT                                                   3.893.297

Result Before Income Tax                                              18.693.238
Taxes and Employees Participation                                     -7.491.481
NET PROFIT(LOSS)                                                      11.201.757

CURRENT PROFIT(LOSS)                                                  11.201.757

                           ECONOMIC - FINANCIAL RATIOS

                                                                      31/12/2012

Working Capital             ( US$ )                                   12.432.327
Current Liquidity           (Times)                                         1,14
Acid Test                   (Times)                                         0,58
Collection Period Days      ( Days)                                        85,51
Accounts Receivable Turnover(Times)                                         4,21
Inventory Turnover          (Times)                                         2,56
Current Indebtedness        (Times)                                         3,04
Total Indebtedness          (Times)                                         3,43
Solvency                    (Times)                                         1,29
Assets Tying Up             (  %  )                                        21,40
Profitability Over Sales    (  %  )                                         6,53
Profitability Over Assets   (  %  )                                         8,94
Profitability Over Net Worth(  %  )                                        65,59

bank



The main banks are:

-  Banco de Guayaquil S.A.
-  Banco Del Austro S.A. ACCT # 2000297235
-  Banco Del Pacifico S.A. ACCT # 5100003
-  Banco Internacional S.A. ACCT # 800060406
-  Banco Pichincha C.A. ACCT # 9658352

operation

(13/03/2014)

Line of Business : Goods in general trade.

                   eneral items such as: raw material, equipment, finished
                   products, handicrafts, agriculture and building:  imports
                   hardware, glass, toys, perfumes,  audio and video, home
                   appliances, construction materials, industrial machinery,
                   musical instruments, mass consumption products.

                   Registered line of business in the Ecuadorian Internal
                   Revenue Service (SRI) is:  PRODUCTS RANGE WHOLESALE AND
                   RETAIL

                   The Social purpose registered in the Superintendency of
                   Companies  is:  Commercialization of every kind of: raw
                   material, equipment and finished products for home,
                   handicrafts, industry, agriculture and construction.
                   Accordingly, the company will be able to import, export,
                   manufacture and distribute.

Classification according to commercial activity:

Sic: 5023-0000 Homefurnishings
         -0500 Decorative home furnishings and supplies
Sic: 5031-0000 Lumber, plywood, and millwork
         -0100 Building materials, exterior
         -0200 Building materials, interior
Sic: 5064-0000 Electrical appliances, television and radio
         -9903 Electric household appliances
Sic: 5251-0000 Hardware stores
         -0100 Tools
Sic: 5331-0000 Variety stores

Sales

Sales are steady throughout the year

National sales territory

Sales are mainly wholesale. Its main customers are indipendent sub distributors,
located in different cities nationwide.


Customers

Main customers are: Retail,  companies in general,  public in general.
wholesale,

Purchases

Domestic and international purchases

Imports from Germany, Brazil, Colombia, Venezuela, Spain, United States, Mexico,
Far East, Argentina, China.

-  Among Its main suppliers are firms which belong to the same group.

National suppliers


- Adheplast S.A
- Alessa S.A.
- Cartones Nacionales S.A. I Cartopel
- Colgate Palmolive Del Ecuador Sociedad Anonima Industrial Y Comercial
- Industria De Alimentos La Europea Cia. Ltda.
- Kimberly - Clark Ecuador S.A.
- Laminados Y Textiles Lamitex S. A.
- Negocios Industriales Real N.I.R.S.A. S.A.
- Nestle Ecuador S.A.
- Plasticaucho Industrial S.A.
- Productos Familia Sancela Del Ecuador S.A
- Quifatex S.A.
- Sintecuero S.A.

Foreign suppliers (13/03/2014)

- Air Products (United States)
- Basf Corporation (Germany)
- Bayer (Germany)
- Colceramica S.A. (Colombia)
- Copequim (Venezuela)
- LC Internacional
- Lyondel (Brazil)
- Modaplass (Colombia)

Employees: 1.229 employees

Location

-  Official address and a part of the administrative offices are located at A la
   altura del Km 1.5,  Av. Carlos Julio Arosemena S/N Guayaquil Guayas, Ecuador


Branches

-  Circunv. Sur S-N Y Felipe Segundo Cuenca Azuay Ecuador
-  Warehouse located at Gonzalo Dias De Pineda S-N Cuenca Azuay Ecuador
-  Mariscal Sucre 1-73 Y Huayna Capac Cuenca Azuay Ecuador
-  Tarqui 7-50 Y Mariscal Sucre Cuenca Azuay Ecuador
-  Warehouse located at Brevas 10-144 Y De Las Palmeras Quito Pichincha Ecuador
-  Esmeraldas 5-92 Y Tungurahua Ambato Tungurahua Ecuador
-  A part of the Administrative offices and the main branch are located at Av de
   las Americas 6-118 y Nicolas de la Rocha, a la altura del Km 6.5 de la
   Panamericana Sur. Edif. Coralcentro Cuenca Azuay Ecuador
-  Warehouse located at Via a Daule S/N Guayaquil Guayas Ecuador
-  Av. Don Bosco 3256 y La Pinta Cuenca Azuay Ecuador
-  Via Racar Av. Principal S/N Cuenca Azuay Ecuador
-  Autopista Sur Via Turi S/N y Felipe Segundo Cuenca Azuay Ecuador
-  Warehouse located at Carlos Tosi Siri 2-29 Y Calle Principal Cuenca Azuay
   Ecuador
-  Federico González Suarez s/n y Emiliano Zapata Cuenca Azuay Ecuador
-  Warehouse located at Carlos Tosi Siri 2-04 y Primera Transversal Cuenca Azuay
   Ecuador
-  La Pinta 1-126 Cuenca Azuay Ecuador
-  Another part of the administrative and sales offices Av. Las Americas 6-118 y
   Nicolas de Rocha Cuenca Azuay Ecuador

-  Main offices of the group are located in Cuenca.


RELATED COMPANIES


Subject is related to the following companies:

-  Embutidos De Carne De Los Andes Embuandes Cia. Ltda. T A X : 0190330494001
   Cuenca Azuay . Sales as at 31/12/2012 US$ 13.019.662
-  Adheplast S.A T A X : 0190099725001 Cuenca Azuay . Sales as at 31/12/2012 US$
   43.115.442
-  Laminados Y Textiles Lamitex S. A. T A X : 0190104567001 Cuenca Azuay . Sales
   as at 31/12/2012 US$ 41.759.328
-  Industria De Soldaduras y Metales Insomet Cia. Ltda. T A X : 0190114473001
   Cuenca Azuay . Sales as at 31/12/2012 US$ 24.614.849
-  Importadora Comercial Lartizco Cia. Ltda. T A X : 0190117278001 Cuenca Azuay
   . Sales as at 31/12/2012 US$ 18.978.277
-  Sintecuero S.A. T A X : 0190133346001 Cuenca Azuay . Sales as at 31/12/2012
   US$ 11.138.308
-  Ortiz Y Jacome De Comercio Cia. Ltda. T A X : 0190147398001 Cuenca Azuay .
   Sales as at 31/12/2012 US$ 10.434.324
-  Importadora Rolortiz Cia. Ltda. T A X : 0190157075001 Cuenca Azuay
-  Comercial Carlos Roldan Cia. Ltda. T A X : 0190316025001 Cuenca Azuay . Sales
   as at 31/12/2012 US$ 37.910.179

INSURANCES


Insurance Company:

-Qbe Seguros Colonial S.A.


-Seguros Equinoccial S. A.


ADMINISTRATION


President                : Wilson Anibal Andrade Rodriguez TAX:0100870559001
Manager                  : Carlos Enrique Bermeo Calle TAX:0101519064001
Controller General       : Carlos Peralta
Head of personnel        : Diego Alvarez
Imports'supervisor       : Rocio Calderon
Supervisor of Systems    : Humberto Cerillo
Accountant-in-chief      : Eulalia Carrion
Accountant               : Rene Arevalo
Coordinator              : Héctor German Cortazar Solano TAX:0100915420001
Coordinator Logistics    : Ing. Hugo Quezada
Coordinator Payable      : Ing. Ruth Encalada
accounts.
Coordinator Purchases    : Juan Pablo Campana Sáenz
Administrative Assistant : Cecilia Tapia


CURRICULUM


Wilson Anibal Andrade Rodriguez

T A X               : 0100870559001
Civil status        : Married
Birth date          : 10/06/1951 -Ecuador
Position            : President
Mercantile Register : Number 7511 of 28/04/2011
Simultaneously      : Legally registered in the Ecuadorian Internal Revenue
                      Service (SRI) to engage in business as individual since
                      November 22nd de Noviembre 2006 Registered economic
                      activity is: Commissionist. No registered trade name.

Carlos Enrique Bermeo Calle

T A X               : 0101519064001
Civil status        : Divorced
Birth date          : 31/03/1962 -Ecuador
Position            : Manager
Mercantile Register : Number 243 of 04/01/2013
Simultaneously      : Legally registered in the Ecuadorian Internal Revenue
                      Service (SRI) to engage in business as individual since
                      April 17th, 2001  Registered economic activity is: Office
                      activities. Has no a trade name

Héctor German Cortazar Solano

T A X               : 0100915420001
Civil status        : Married
Birth date          : 23/02/1952 -Ecuador
Position            : Coordinator
Simultaneously      : Legally registered in the Ecuadorian Internal Revenue
                      Service (SRI) to engage in business as individual since
                      January 17th, 2001  Registered economic activity is: Other
                      activities of Business Advice and Management. Has no a
                      trade name


LEGAL INFORMATION


Legal Structure       : Limited Liability Partnership (Ecuador)
Constitution date     :  16/01/1980
Authorization         : Resolution Nº 499
Notary                : N° 2, Cuenca Azuay
Term of duration      : 50 Year, ended on 17/01/2030
Legal Address         : Guayaquil - Ecuador
Published in          : Official Gazette dated 10/01/1980

Current Subscribed Capital: US$ 700.000.-contributions US$ 1.-
Paid-in Initial Capital: US$ 12.-
Subscribed Initial Capital: US$ 18.-

Partner :

-  60,00% 0101255594001 Jose Patricio  Ortiz Cornejo
-  20,00% Angel Gerardo Ortiz Cornejo
-  20,00% Carmen Rosa Ortiz Cornejo

Legal representation is held by Manager and President.

Legal changes

By Resolution Nº 266 on 19/08/1994, notary N° 2, Cuenca Azuay, published in the
Official Gazette dated 12/09/1994, capital was increased: by US$ 2.064,80.

By Resolution Nº 561 on 27/09/2004, notary N° 2, Cuenca Azuay, published in the
Official Gazette dated 28/09/2004, Term of duration was extended in its time of
duration of 25 years since January 17th, 2005

By Resolution Nº 10 on 05/01/2007, notary N° 9, Cuenca Azuay, published in the
Official Gazette dated 08/01/2007, the legal address was modified: from Cuenca
to Guayaquil

By Resolution Nº 2752 on 31/05/2012, notary N° 29, Guayaquil Guayas, published
in the Official Gazette dated 04/07/2012, capital was increased: Amounting US$
697.880

Registered trade names are: Gerardo Ortiz e Hijos, Corralcentro, Coral del Rio,
Gerardo Ortiz and Mall del Rio-Coral del Rio.

GERARDO ORTIZ E HIJOS C. LTDA was created based on Mr. Gerardo Ortiz
Peralta's personal business in 1957.

This Company is part of the Business Group GERARDO ORTIZ E HIJOS, which owns
companies such Adheplast, Lamitex, Industria De Soldaduras Y Metales Insomet,
Sintecuero. This Croup has 63 local Companies


PUBLICATIONS


Information regarding subject is supplied as follows

Diario El Comercio .- of 18/04/2007 Business man Gerardo Ortiz Peralta died when
he was 92 years old.  This group is part the 17 most important companies of the
country.  Now the Group has factories to produce textile, plastic, glue, paints,
synthetic leather, mattresses, sheets and duvets.

It has also 2 very large shops named Coral Centro and Coral Rio.  Another
business of this group is Mall del Río with around 66.000 m2. all of them
located in Cuenca city. -

Servicio de Rentas Internas SRI of 31/12/2009 According to the Ecuadorian
Internal Revenue Service (SRI), during fiscal period 2009, Grupo Ortiz
registered 59 companies which incomes were USD 261.948.772 and caused income tax
was USD 4.556.632,32 -

Revista Gestión Economía y Sociedad  Nº 192 of 22/07/2010 This partnership was
part of the largest Ecuadorian importersin 2009, position 47 with  CIF USD.
47.756.030,00. -

Servicio de Rentas Internas SRI of 31/12/2010 According to the SRI, in the
fiscal period 2010, Grupo Ortiz had a total of 57 firms which had incomes for
US$ 327.463.526 and the caused income tax was US$ 6.546.996 -

Revista Gestión Economía y Sociedad  Nº 204 of 01/06/2011 This Company was part
of the 100 largest importers of the Country in 2010 occupying the 64 place with
a CIF value of US$ 54.350.000,00. -

Servicio de Rentas Internas SRI of 31/12/2011 According to the SRI, in the
fiscal period 2011, Grupo Ortiz had a total of 60 firms which had incomes for
US$ 400.335.152 and the caused income tax was US$ 7.320.166. -

Revista Gestión Economía y Sociedad  Nº 216 of 01/06/2012 This Company was part
of the 100 largest importers of the Country in 2011 occupying the 37 place with
a CIF value of US$ 63.270.000,00. -

Servicio de Rentas Internas SRI of 31/12/2012 According to the SRI, in the
fiscal period 2012, Grupo Ortiz had a total of 63 firms which had incomes for
US$ 444.642.776 and the caused income tax was US$ 11.088.922 -

www.elcomercio.com of 20/01/2013 Six groups are expanded with the malls

Malls are in its best moment to expand in Ecuador. Most operate in Quito,
Guayaquil and Cuenca, but the space seems to be growing smaller and now other
counties already have such infrastructures. Machala, Duale, Riobamba, Quevedo,
Manta, Portoviejo, among others are part of the map of the location of malls
built in the last four years. Behind these huge investments, the Internal
Revenue Service (IRS) has identified six economic groups, with a total of 100
that are involved in major shopping centers. Corporations: Favorita, El Rosado,
Banco Pichincha, Gerardo Ortiz, Consorcio Nobis and Quicentros Group are part of
the list and are present throughout the country. -

Revista Gestión Economía y Sociedad  Nº 228 of 01/07/2013 This Company was part
of the 100 largest importers of the Country in 2012 occupying the 72 place with
a CIF value of US$ 56.630.000 -


INFORMATION SOURCES

On 13/03/2014 Mr. Carlos Enrique Bermeo Calle, Manager,  confirmed 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

INTERPRETATION OF RISK LEVEL AND CREDIT RECOMMENDATION

RISK LEVEL

Credit risk assessment is ordered as follows: 1 Minimum Risk, 2 Low Risk, 3
Middle Risk, 4 Middle High Risk, 5 Significant Risk, 6 High Risk.

CREDIT RECOMMENDATION

Credit recommendation amounts are assigned according to criteria usually used in
the commercial credit evaluation.

The amounts are based on the assignment of risk percentages to the following
indicators: Trade references, number of employees, legal structures, data base
of protested bills, operations, insurances, variation of net profit, net worth,
working capital and liquidity.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.02

UK Pound

1

Rs.102.69

Euro

1

Rs.81.91

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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

 

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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%)

 

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.