MIRA INFORM REPORT

 

 

Report Date :

29.05.2014

 

IDENTIFICATION DETAILS

 

Name :

TEXTILES EL RAYO S.A.

 

 

Registered Office :

Panamericana Norte, a la altura del  Km 12 y Via a Llano Grande. - Quito
Pichincha

 

 

Country :

Ecuador

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

27.12.1978

 

 

Com. Reg. No.:

27.12.1978

 

 

Legal Form :

Stock Company

 

 

Line of Business :

Manufacture of socks / stockings for women, men & children

 

 

No. of Employees

500

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Ecuador

B2

B2

 

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

 


 

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

 

 

 


IDENTIFICATION  

                          
T A X : 1790389219001
TEXTILES EL RAYO S.A.
( MEDIAS ROLAND )

Panamericana Norte, a la altura del  Km 12 y Via a Llano Grande. - Quito
Pichincha
ECUADOR

Telephone         : 593-2-2824797, 593-2-2824796
Fax                   : 593-2-2826384

E_Mail              : ventas2@elrayo.com, vaguirre@elrayo.com, tvega@elrayo.com.ec


SUMMARY

Started                       : 1978
Total Employees              : 500
Payments                     : Prompt
Financial Sit.               : Excellent
Economic Sit.                : Normal
Sales                        : US$     18.410.647.- (31/12/2013)
Net worth                    : US$      8.705.560.-
Current profit               : US$      1.876.019.-
Subscribed Capital           : US$      1.450.000.-
Authorized Capital           : US$      2.900.000.-

Sic(s) : 2252 - 5136 - 5137


Line of Business: Manufacturing of socks/stockings for women, men & children.-

EVALUATION


Interpretation at the end of the report.

Credit Recommendation

                             Dollars
Conservative value :       1.000.000
Liberal value      :       1.200.000

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

Financial indicators

 

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

** High Working Capital
** Excellent Current Liquidity Ratio
** Excellent Acid Test Ratio

Economic situation is normal, as reflected in:

** Low Current Indebtedness Ratio
** Acceptable Total Indebtedness Ratio
** Good Solvency Ratio

** Normal Profitability Over Sales Ratio
** Normal Profitability Over Assets Ratio
** Excellent Profitability Over Net Worth Ratio

According to the Internal Revenue Service the most important figures as of
December 31st, 2012 are:

Sales    US$ 18.190.837
Profit    US$  2.149.614

According to the Internal Revenue Service the most important figures as of
December 31st, 2011 are:

Sales    US$ 17.584.917
Profit    US$  1.699.710

According to the Superintendence of Companies the most important figures as
of December 31st, 2010 are:

Sales    US$ 13.921.285
Assets US$ 11.466.279
Liabilities US$  8.332.478
Equity   US$  3.133.801
Profit    US$    889.553


COMMERCIAL INFORMATION

Commercial Bulletin      : As at 30/04/2014 subject does not register protested
                           checks in the national central of risk



TRADE REFERENCES

Suppliers' trade references are supplied as follows:

Detail of References

Old            : 7 years
Last purchase  : 05-2014
Terms          : 60 days
Payment        : Prompt
Notes          : checks
Credit         : Open
Owes           : Does not Register
Due            : Does not Register
Paying Comments: Excellent
Purchase Aver. : (Monthly US$) 3.100

Old            : 15 years
Last purchase  : 05-2014
Terms          : 30 days
Payment        : Prompt
Notes          : checks
Credit         : (US$) 5.000
Owes           : Does not Register
Due            : Does not Register
Paying Comments: Excellent
Purchase Aver. : (Monthly US$) 2.500
This supplier said that they buy as a Group

Detail of Former Trade References
--------------------------------------------------------------------------------
           Last                                           Credit            Owes
Old        Purch. Payment.    Notes                     (US$)        (US$)
--------------------------------------------------------------------------------
10 years   05-13  Prompt      invoice                       Open            None
10 years   06-13  Prompt      checks                        Open            None
15 years   02-10  Prompt      checks                        Open            None
12 years   12-09  Prompt      invoice                      8.000            None
8 years    02-10  Prompt      invoice                       Open          17.000
8 years    10-07  Prompt      invoice                     10.000               -
Since 1993 03-07  Prompt      invoice                     25.000            None
5 years    08-07  Prompt      cash                             -            None

- Tax Status: Current obligations fulfilled

- Special Taxpayer

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

- Subject is not part of the Clinton List

- 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

Detail of Bank References

Bank                     : Banco De La Produccion S.A.
To expire                : US$ 4.597.177,42

Bank                     : Banco Internacional S.A.
To expire                : US$ 262,46

Total debt up to April 2014 is US$ 4.597.439,88

Credit history

Textiles El Rayo S.A. does not have negative references at the National Financial System in the last three years.

Maximum amount of indebtedness registered by the subject -, in the National Financial System was US$ 4.963.213,73 in February, 2014

Average amount of indebtedness registered by the subject, in the National Financial System:
During 2011 was US$ 2.160.325,60
During 2012 was US$ 1.974.236,09
During 2013 was US$ 3.699.326,71
During 2014 was US$ 4.620.771,01

Income tax corresponding to the last years:
Year 2013: US$ 392.301
Year 2012: US$ 430.982
Year 2011: US$ 362.394
Year 2010: US$ 211.200
Year 2009: US$ 224.540


FINANCIAL INFORMATION


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

                                                                      31/12/2013
CURRENT ASSETS                                                         9.778.855
CURRENT LIABILITIES                                                    3.735.038
WORKING CAPITAL                                                        6.043.817
FIXED ASSETS                                                           8.827.175
OTHER ASSETS                                                             149.148
LONG TERM LIABILITIES                                                  6.314.580
NET WORTH                                                              8.705.560
OPERATING INCOMES                                                     18.410.647
CURRENT PROFIT(LOSS)                                                   1.876.019

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

ASSETS                                                                31/12/2013
Cash                                                                     169.654
Sundry Debtors                                                         5.463.597
Inventory                                                              3.007.109
Other Current Assets                                                   1.138.495
CURRENT ASSETS                                                         9.778.855

Net Fixed Asset                                                        8.827.175
FIXED ASSETS                                                           8.827.175

Other                                                                    149.148
OTHER ASSETS                                                             149.148

TOTAL ASSETS                                                          18.755.178

LIABILITIES                                                           31/12/2013
Accounts Payable                                                       3.060.479
Notes Payable                                                            674.559
CURRENT LIABILITIES                                                    3.735.038

Notes Payable                                                          6.314.580
LONG TERM LIABILITIES                                                  6.314.580

Capital & Reserves                                                     1.450.000
Other Reserves                                                           710.660
Accumulated Profits                                                    4.668.881
Current Profit (Losses)                                                1.876.019
NET WORTH                                                              8.705.560

TOTAL LIABILITIES                                                     18.755.178

STATEMENTS OF RESULTS                                                 31/12/2013
Operating  Income                                                     18.410.647
Operating Cost                                                       -12.990.381
OPERATING MARGIN                                                       5.420.266

Administration & Sales Expenses                                       -2.770.861
OPERATING RESULT                                                       2.649.405

Other non Operating Incomes                                               16.326
NON OPERATING RESULT                                                      16.326

Result Before Income Tax                                               2.665.731
Taxes and Employees Participation                                       -789.710
NET PROFIT(LOSS)                                                       1.876.021

CURRENT PROFIT(LOSS)                                                   1.876.021

                           ECONOMIC - FINANCIAL RATIOS

                                                                      31/12/2013
Working Capital             ( US$ )                                    6.043.817
Current Liquidity           (Times)                                         2,62
Acid Test                   (Times)                                         1,81
Collection Period Days      ( Days)                                       106,83
Accounts Receivable Turnover(Times)                                         3,37
Inventory Turnover          (Times)                                         4,32
Current Indebtedness        (Times)                                         0,43
Total Indebtedness          (Times)                                         1,15
Solvency                    (Times)                                         1,87
Assets Tying Up             (  %  )                                        47,07
Profitability Over Sales    (  %  )                                        10,19
Profitability Over Assets   (  %  )                                        10,00
Profitability Over Net Worth(  %  )                                        27,47

BANKS

The main banks are:

Banco De La Produccion S.A.
Banco Internacional S.A.
Banco Pichincha C.A.

OPERATIONS

Line of Business : Manufacture of socks / stockings for women, men & children.

                   The economic activity registered in the IRS is: 
                   MANUFACTURE OF TEXTILE PRODUCTS

                   The social objective registered at the Superintendency of
                   Companies is:  Manufacture, distribution and sale of textile
                   products, zipper, socks, plastics as well as export of same
                   elaborated products.

Classification according to commercial activity:

Sic: 2252-0000 Hosiery
Sic: 5136-0000 Men's and boy's clothing
         -0403 Hosiery, men's and boys'
Sic: 5137-0000 Women's and children's clothing
         -0407 Hosiery: women's, children's, and infants'

Commercializes:

- Roland

Sales

Sales are steady throughout the year

National and international sales territory

Exports to Venezuela, Chile, Colombia, Panama.

Customers

Main customers are: Line of business' distributors.

Purchases

Domestic and international purchases

Imports from Spain, Germany, Italy, Korea.

National suppliers

- Engoma Adhesivos Cia. Ltda
- Enkador S.A.
- Graficas Imago Cia. Ltda.
- Hivimar S.A
- Montgar C.A.
- Productos Plasticos Moanplast C Ltda
- Wael Alam Etiquetas Internacionales Cia. Ltda.

Foreign suppliers (26/05/2014)

- Dralon Gmbh (Germany)
- Hanwoo (Korea)
- Hilados Dusol (Spain)
- Radisifil (Italy)

Employees: 500 employees

Some of their employees are shared by the group companies.

Location

-  Administrative offices & production plant are located at Panamericana Norte,
   a la altura del  Km 12 y Via a Llano Grande. Quito Pichincha, Ecuador

Branches


-  Colon 206 y Pichincha Guayaquil Guayas Ecuador

-  Offices and plant are built on a 5.000 m2 area.  These facilities are also
   shared by another companies of the group.-


RELATED COMPANIES

Subject is related to the following companies:

Ribel S.A. T A X : 1791067371001 Quito Pichincha
Interfibra S.A. T A X : 1791255291001 Quito Pichincha
Corpmunab Cia. Ltda. T A X : 1791341899001 Quito Pichincha
Hiltexpoy S.A. T A X : 1791436210001 Quito Pichincha


INSURANCES

Insurance Company:

-Mapfre Atlas Compañia de Seguros S.A.


ADMINISTRATION

Imports Assistant        : Tatiana Vega
Manager                  : Jorge Alberto Abedrabbo Larach TAX:1704890845001
General Manager          : Viviana Aguirre
Assistant
President                : Roberto Munir Abedrabbo Larach TAX:0601011778001
Accountant               : Carmen Osorio


CURRICULUM

Jorge Alberto Abedrabbo Larach


T A X               : 1704890845001
Civil status        : Married
Birth date          : 15/09/1958 -Ecuador
Position            : Manager
Mercantile Register : Number 3241 of 16/03/2011
Previously          : Legally registered at the IRS to carry out businesses by
                      his own account, since Jun 26, 1995 until Aug 31, 1997.- 
                      His registered economic activity was:  Retail of different
                      products, food, beverages, tobacco,such as:  Household and
                      wares, hardware store and jewelry products,  sports
                      accesories, cosmetics, toys, furnishing, clothing, etc.
                      In non specialized stores (Home department with a variety
                      of products).  It did not have a commercial name.-


Roberto Munir Abedrabbo Larach

T A X               : 0601011778001
Civil status        : Married
Birth date          : 23/06/1966 -Ecuador
Position            : President
Mercantile Register : Number 3240 of 16/03/2011
Curriculum          : He was legally registered at the IRS to perform personal
                      business from 26/06/1995 to 31/08/1997. His registered
                      business activity was: Retail of diverse products. No
                      registered trade name such as Home appliances, hardware
                      store items, jewelry, sports items, cosmetics, toys,
                      furniture, apparel, etc., in non specialized stores (big
                      stores). He did not have a trade name. At present it is in Definite
                      Suspension.


LEGAL INFORMATION

Legal Structure       : Stock Company
Constitution date     :  27/12/1978
Authorization         : Resolution Nº 4959
Notary                : N° 20, Quito Pichincha
Term of duration      : 75 Year, ended on 12/11/2053
Legal Address         : Quito - Ecuador
Published in          : Official Gazette dated 05/12/1978

Current Subscribed Capital: US$ 1.450.000.-Divided to 1.450.000.- common shares
                            unique series amounting US$ 1.-
Authorized Current Capital: US$ 2.900.000.-
Subscribed & paid-in Initial Capital: US$ 20.-

Shareholders :

-  99,99% 0601011778001 Roberto Munir Abedrabbo Larach
-   0,01% 0600870174001 Maha Abedrabbo Larach

Legal representation is held by Manager.

Legal changes

By Resolution Nº 3629 on 26/08/2004, notary N° 12, Quito Pichincha, published in
the Official Gazette dated 01/10/2004, capital was increased: USD 140.000,00 of
nacional investment.

By Resolution Nº 4799 on 25/10/2006, notary N° 12, Quito Pichincha, published in
the Official Gazette dated 14/12/2006, capital was increased: USD 150.000,00 of
nacional investment.

By Resolution Nº 1741 on 27/04/2009, notary N° 37, Quito Pichincha, published in
the Official Gazette dated 05/05/2009, corporate structure was modified: from a
Limited Liability Company and Stock Company

By Resolution Nº 2999 on 07/07/2011, notary N° 16, Quito Pichincha, published in
the Official Gazette dated 18/07/2011, capital was increased: by US$ 810.000

The initial capital in Sucres was S/ 500.000

INFORMATION SOURCES

Miss. Alexandra Cifuentes, Administrative department,  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.

INTERPRETATION OF PAYMENT SCORING

The Scoring is arranged as follows: 0 to 40 Delays, 41 to 60 Slow, 61 to 80
Moderate, 81 to 100 Prompt

Macroeconomic Information



Interest Rate for the week of             04/05/2014 - 10/05/2014

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                    ( % ) 3,23 Apr/2014

Monthly Inflation                   ( % ) 0,30 Apr/2014

Accumulated                         ( % ) 1,83 Apr/2014







 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.07

UK Pound

1

Rs.99.20

Euro

1

Rs.80.53

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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.