|
Report Date : |
22.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
ELECTRODOS OERLIKON DE
COLOMBIA LTDA. |
|
|
|
|
Trade
Name: |
LINCOLN ELECTRIC INTERNATIONAL HOLDING COMPANY |
|
|
|
|
Registered Office : |
Calle 6 A No 33-23, Bogota DC |
|
|
|
|
Country : |
Colombia |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
15.01.1960 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacture of electrodes for electric welding. |
|
|
|
|
No. of Employees |
100 |
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Colombia |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
COLOMBIA - ECONOMIC OVERVIEW
Colombia's consistently sound
economic policies and aggressive promotion of free trade agreements in recent
years have bolstered its ability to weather external shocks. Real GDP has grown
more than 4% per year for the past three years, continuing almost a decade of
strong economic performance. All three major ratings agencies have upgraded
Colombia's government debt to investment grade. Nevertheless, Colombia depends
heavily on energy and mining exports, making it vulnerable to a drop in
commodity prices. Colombia is the world's fourth largest coal exporter and
Latin America’s fourth largest oil producer. Economic development is stymied
by inadequate infrastructure and an uncertain security situation. Moreover, the
unemployment rate of 9.7% in 2013 is still one of Latin America's highest. The
SANTOS Administration's foreign policy has focused on bolstering Colombia's
commercial ties and boosting investment at home. Colombia has signed or is
negotiating Free Trade Agreements (FTA) with more than a dozen countries; the
US-Colombia FTA went into force on May 2012. Colombia is also a founding member
of the Pacific Alliance - a regional grouping formed in 2012 by Chile,
Colombia, Mexico, and Peru to promote regional trade and economic integration.
In 2013, Colombia began its ascension process to the OECD. The annual level of
foreign direct investment - notably in the oil and gas sectors - reached a
record high of $16.8 billion in 2013, an increase of 7% over 2012. Inequality,
poverty, and narcotrafficking remain significant challenges, and Colombia's
infrastructure requires major improvements to sustain economic expansion
|
Source
: CIA |
|
IDENTIFICATION |
|
|
COMPANY NAME |
ELECTRODOS OERLIKON DE COLOMBIA LTDA. |
|
TRADE NAME |
LINCOLN ELECTRIC INTERNATIONAL HOLDING COMPANY |
|
TAX ID TYPE |
NIT |
|
TAX ID NUMBER |
8600003320 |
|
CURRENT STATUS |
Active |
|
MAIN ADDRESS |
Calle 6 A No 33-23 |
|
CITY/PROVINCE/STATE |
Bogota DC, Colombia |
|
PHONE NUMBER(S) |
(57-1) 2470585 |
|
E-MAIL |
jenny.espinosa@lincolnelectric.com.co |
|
WEB SITE |
www.lincolnelectric.com.co |
|
CR-RATING |
LOW RISK |
|
COMMENTS OF IDENTIFICATION.- |
This report was requested with company name: LINCOLN
SOLDADURAS DE COLOMBIA LTDA. Please be advised that the correct company name
is the one above. |
|
BOARD
OF DIRECTORS-EXECUTIVES |
||
|
NAME |
JOB TITLE |
% STAKE |
|
SHANNON MATTHEW, JAY |
Director |
|
|
VERMEJI CHAMY, PAUL |
Director |
|
|
EARL MCMILLIN, JR DANIEL |
Director |
|
|
BARONA FLAMENCO, JULIO CESAR |
General Manager/Legal Rep. |
|
|
VASQUEZ GARCIA, CARLOS ALFONSO |
Under Manager/ Alternate Legal Representative |
|
|
LOPEZ RINCON, LEIDY |
Costs Manager |
|
|
ACEVEDO, CAROLINA |
Human Relations Co-ordinator |
|
|
MARY PULIDO, JOHN |
Public Accountant |
|
|
ERNST Y YOUNG AUDIT LTDA. |
Auditor |
|
|
WHO
IS WHO? |
|
BARONA FLAMENCO, JULIO CESAR |
|
C.I., 4.129.040, . |
|
VASQUEZ GARCIA, CARLOS ALFONSO |
|
C.I., 372.621, . |
|
LITIGATIONS |
|
It holds a lawsuit dated 13/02/2004 found filed against the
subject at 31 Civil Court of Bogota. Plaintiff: COLVANES SAS. |
|
PAID-UP CAPITAL |
Ps$ 7,903,209,750.00 Pesos |
|
SHAREHOLDERS |
||
|
NAME |
JOB TITLE |
% STAKE |
|
LINCOLN ELECTRONIC INTERNATIONAL HOLDING COMPANY |
Shareholder |
95% |
|
LINCOLN ELECTRONIC HOLDINGS INC. |
Shareholder |
5% |
|
PAYMENT HISTORY |
EP. E: WITHOUT CREDIT EXPERIENCE |
|
% CASH SALES/PAYMENT METHOD |
30% |
|
% CREDIT SALES/TERMS |
70% (Terms: 30 days) |
|
TERRITORY OF SALES |
100% (Domestic market) |
|
IMPORTS |
|
|
YEAR |
2012 |
|
AMOUNT |
US$ 9,682,178.00 |
|
EXPORTS |
|
|
YEAR |
2012 |
|
AMOUNT |
US$ 3,747,009.00 |
|
PAYMENTS |
|
|
TRADE
REFERENCES |
|
|
TYPE OF SUPPLIER |
NATIONAL |
|
SUPPLIER FROM |
Since 2012 |
|
DEADLINES |
Invoices at 30 days |
|
RATING |
PROMPT |
|
|
|
|
TYPE OF SUPPLIER |
NATIONAL |
|
CREDIT FACILITIES |
No current operations limit |
|
SUPPLIER FROM |
Since 1994 |
|
DEADLINES |
Invoices at 30 days |
|
RATING |
PROMPT |
|
|
|
|
TYPE OF SUPPLIER |
NATIONAL |
|
SUPPLIER FROM |
Since 1997 |
|
DEADLINES |
Promissory note at 30 days |
|
RATING |
PROMPT |
|
|
|
|
CREDIT FILES |
|
|
Other consulted suppliers just confirmed subject as
client, without disclosing further details. |
|
|
LOCAL
SUPPLIERS |
||
|
Name |
Contact |
Telephone |
|
ATLAS COPCO COLOMBIA LTDA |
|
(57-1) 4199200 |
|
COLTRANS SAS |
|
(57-1) 4239300 |
|
EDITORIAL BOCHICA LTDA. |
|
(57-1) 2885077 |
|
EMPACOR SA |
|
(57-1) 2627799 |
|
EMPRESA COLOMBIANA DE MINERALES SAS |
|
(57-1) 8400077 |
|
ERNST & YOUNG AUDIT LTDA. |
|
(57-1) 4847000 |
|
LEGISLACION ECONOMICA SA |
|
(57-1) 4255255 |
|
LOGISTICA Y CARGA LTDA |
|
|
|
MULTI IMPACTO EDITORES LTDA. |
|
(57-1) 2741430 |
|
RELATED
COMPANIES |
||
|
NAME |
TAX ID. NUMBER |
COUNTRY |
|
LINCOLN ELECTRIC HOLDINGS INC. |
|
U.S.A. |
|
LINCOLN ELECTRIC INTERNATIONAL HOLDING COMPANY |
|
U.S.A. |
|
FINANCIAL
INFORMATION |
|
CONTENT.- |
|
The data herein has been totally obtained from outside
sources in view that main executives declined to collaborate with us. Through
outside sources, we obtained the balance sheets as of 31/12/2013 and
31/12/2012 (12 months) in Colombian Pesos, as follows: |
|
GENERAL
BALANCE SHEET |
|||
|
Balance Date |
31/12/2013 |
31/12/2012 |
|
|
Currency |
Colombian
Peso |
Colombian
Peso |
|
|
Exchange Rate |
1,926.83 |
1,771.54 |
|
|
.Current Total |
26,846,374,000.00 |
21,944,222,000.00 |
22.34 |
|
.Net Fixed |
5,638,422,000.00 |
5,993,193,000.00 |
-5.92 |
|
.Other Assets |
6,001,698,000.00 |
1,957,842,000.00 |
206.55 |
|
.Total Assets |
38,486,494,000.00 |
29,895,257,000.00 |
28.74 |
|
.Total Current Liabilities |
11,293,804,000.00 |
6,475,746,000.00 |
74.40 |
|
.Long Term Accounts |
13,236,172,000.00 |
12,332,195,000.00 |
7.33 |
|
Total Liabilities |
24,529,976,000.00 |
18,807,941,000.00 |
30.42 |
|
Total Equity |
13,956,518,000.00 |
11,087,316,000.00 |
25.88 |
|
Total Liabilities and Equity |
38,486,494,000.00 |
29,895,257,000.00 |
28.74 |
|
PROFIT
AND LOSS ACCOUNT |
|||
|
Balance Date |
31/12/2013 |
31/12/2012 |
|
|
Currency |
Colombian
Peso |
Colombian
Peso |
|
|
Exchange Rate |
1,926.83 |
1,771.54 |
|
|
Net Sales |
35,145,705,000.00 |
45,356,874,000.00 |
-22.51 |
|
Net Income(Net Loss) |
525,480,000.00 |
1,086,911,000.00 |
-51.65 |
|
RATIOS
FINANCIAL |
|||
|
PERIOD |
2,013.00 |
2,012.00 |
0.00 |
|
.NET WORKING CAPITAL |
15,552,570,000.00 |
15,468,476,000.00 |
0.01 |
|
.LIQUIDITY RATIO |
2.38 |
3.39 |
-0.30 |
|
.CONTENTS OF THE ACID TEST |
0.00 |
0.00 |
|
|
.INDEBTEDNESS |
1.57 |
1.59 |
-0.01 |
|
.LIABILITIES, CAPITAL |
0.00 |
0.00 |
|
|
.TOTAL ASSET TURNOVER |
0.91 |
1.52 |
-0.40 |
|
.RETURN ON EQUITY |
0.00 |
0.00 |
|
|
.NET RETURN ON SALES |
0.00 |
0.00 |
|
|
FINANCIAL
COMMENTS.- |
|||
|
The subject is a trading firm in business since 1960 which
has been operating normally. COUNTRY CONTEXT - COLOMBIA: The below Country
comments were obtained from a highly regarded public source that issues
economic comments on all of World` s countries. Taxes: · Colombian income
tax: 38.5% on the net profit-business:. · Tax agreements with the Andean
Community and Spain which allow residents in this countries to have a special
tax treatment. · Alphabetic currency code for every country, established by
the International Organization for Standardization (ISO) 4217: Colombian Peso
(COP) Main economic indicators: · External debt: US$85.83 billion (31
December 2013 est.) · International reserves: US$43.74 billion (31 December
2013 est.) · Inflation rate : 2.2% (2013 est.) · GDP growth rate: 4.2% (2013
est.) · Annual GDP per capita: US$11,100 (2013 est.) GDP - composition, by
sector of origin: agriculture: 6.6% industry: 37.8% services: 55.6% (2013
est.) · Labour force of 23.08 million people (2013 est.) divided by:
agriculture: 17% industry: 21% services: 62% Unemployment rate: 9.7% (2013
est.) Productive sectors: Agriculture - products: coffee, cut flowers,
bananas, rice, tobacco, corn, sugarcane, cocoa beans, oilseed, vegetables;
shrimp; forest products Industries: textiles, food processing, oil, clothing
and footwear, beverages, chemicals, cement; gold, coal, emeralds Foreign
trade: Exports: $58.7 billion (2013 est.) country comparison to the world: 56
$59.85 billion (2012 est.) Exports - commodities: petroleum, coal, emeralds,
coffee, nickel, cut flowers, bananas, apparel Exports - partners: US 36.6%,
China 5.5%, Spain 4.8%, Panama 4.7%, Venezuela 4.4%, Netherlands 4.1%
Imports: $53.5 billion (2013 est.) country comparison to the world: 54 $54.64
billion (2012 est.) Imports - commodities: industrial equipment,
transportation equipment, consumer goods, chemicals, paper products, fuels,
electricity Imports - partners: US 24.2%, China 16.3%, Mexico 10.9%, Brazil
4.8% Country risks: Commercial Country Risk: MEDIUM Political Country Risk:
LOW |
|||
|
INSURANCE.- |
|||
|
An all-risk insurance policy is held with SEGUROS
GENERALES SURAMERICANA SA. (Unspecified coverage amount and maturity date). |
|||
|
RATE OF EXCHANGE |
US$1.00 = Ps$1,919.00 as of report date |
|
LEGAL
ASPECTS |
|
|
LEGAL STATUS |
Limited Liability Company |
|
INCORPORATION DATE |
15/01/1960 |
|
REGISTERED IN |
Mercantile Registry |
|
DURATION |
31/12/2060 |
|
NOTARY OFFICE |
5th Notary of Bogota |
|
REGISTRATION |
Certificate No. 0003748 |
|
NET WORTH |
13,956,518.00 Pesos (31/12/2013) |
|
LISTED AT STOCK EXCHANGE |
NO |
|
BACKGROUND (HISTORY).- |
|
|
It was originally established as ELECTRODOS OERLIKON DE
COLOMBIA LTDA on 15/01/1960 by Public Deed No. 104. On 11/04/2006, by Public
Deed No. 489 the company changed its company name to LINCOLN SOLDADURAS DE
COLOMBIA LTDA. |
|
|
COMMENTS ON LEGAL ASPECTS .- |
|
|
NBC 10033242 |
|
|
OPERATIONS |
|
|
SECTOR |
1.-INDUSTRY |
|
ACTIVITY |
ELECTRICAL PRODUCTS |
|
ISIC CATEGORY |
D-MANUFACTURING INDUSTRIES (ELABORATION, MANUFACTURING,
PRODUCTION, PUBLISHING, CASTING, CONSTRUCTION) |
|
ISIC CLASS |
2922-Manufacture of machine-tools |
|
MAIN ACTIVITY |
Manufacture of electrodes for electric welding. |
|
N. OF EMPLOYEES |
100 employees |
|
LOCATION |
|
HEAD OFFICE: at heading address in a business zone of the
city. In good repair. It has branches in Bogota, Bodega, Barranquilla. |
|
COMMENTS OF OPERATIONS.- |
|
Imports are made from USA, China, Brazil, Poland, Mexico
and Canada. Wholesaler 100%. It was awarded the ISO 9001:2000 certification
by the ICONTEC. |
|
BANK COMENTS |
|
The consulted banks do not disclose any data on clients on
the grounds of confidentiality. |
---
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.77 |
|
|
1 |
Rs.99.01 |
|
Euro |
1 |
Rs.80.56 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
PDT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.