MIRA INFORM REPORT

 

 

Report Date :

17.09.2014

 

IDENTIFICATION DETAILS

 

Name :

DAPRIS FASHION S.A.

 

 

Registered Office :

A la Altura Del Km 3.5 Av. Juan Tanca Marengo s/n, Lotización Satiron, Frente al, Registro Civil. – Guayaquil, Guayas

 

 

Country :

Ecuador

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

19.03.2009

 

 

Legal Form :

Stock Company

 

 

Line of Business :

Subject is engaged in Elaboration and Commercialization of Garments.

 

 

No of Employees :

80

 

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Ecuador

B2

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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


COMPANY Name & address

DAPRIS FASHION S.A.


A la altura del Km 3.5 Av. Juan Tanca Marengo s/n, Lotización Satiron, Frente al
Registro Civil. - Guayaquil
Guayas
Ecuador

Telephone    : 593-4-6026750

Email       : auditaria@daprisfashion.com

SUMMARY

Started                                       : 2009
Total Employees                        : 80
Payments                                  : Prompt
Financial Sit.                              : Normal
Economic Sit.                             : Regular
Sales                                        : US$      1.380.181.-
Net worth                                  : US$        113.287.-
Current profit                               : US$         68.417.-
Subscribed Capital                     : US$            800.-
Authorized Capital                      : US$          1.600.-

Sic(s) : 5611 - 5621

Line of Business: Elaboration and commercialization of garments

EVALUATION

Risk level = 3


Interpretation at the end of the report.

Financial indicators

According to last financial statement, subject shows a normal financial
situation, as indicated in:

** Normal Working Capital
** Excellent Current Liquidity Ratio
** Regular Acid Test Ratio

72% of current assets corresponds to the inventory, accounts receivable
decreased in $ 210 thousand in year 2013

According to the status of the cash flow, resources from the operation
increased in $ 39 thousand, in the same way the founding is increased by $ 107
thousand while cash was used in investment activities which decreases in $ 131
thousand

Economic situation is regular, as reflected in:

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

84% of the asset is financed by liabilities, mainly financial debts for $ 133
thousand and long term debt with related companies for $ 129

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

In year 2013 sales increased in $ 188 thousand, this situation caused the
utility is increased by $ 68 thousand.

COMMERCIAL INFORMATION

Commercial Bulletin      : As at 31/08/2014 subject does not register protested
                           checks in the national central of risk

TRADE REFERENCES

Trade references are supplied as follows:

Detail of References

Old            :                  8 years
Last purchase  :             09-2014
Terms          :                30 days
Payment        :              Prompt
Notes          :                 Checks
Credit         :                  (US$) 2.000
Owes           :                Does not Register
Due            :                 Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly US$) 1.500

- Tax Status: With outstanding obligations

- 10 to September 2014 Subject US$ 2470,68 the Internal Revenue Service. No
recorded objections.

Firm debt is an obligation that has not been paid after it has been imposed by
the IRS or determined by the taxpayer

- This Subject DOES NOT have obligations at IESS (Ecuadorian Institute of Social Security) , to September, 2014

It was not possible to verify if this company has delayed payments at IESS
(Ecuadorian Institute of Social Security)

Detail of Bank References

Bank                     : Banco Amazonas S.A.
To expire                : US$ 499.031,57

Bank                     : Banco Bolivariano C.A.
To expire                : US$ 7.554,74

Bank                     : Banco de Guayaquil S.A.
To expire                : US$ 109.597,05

Bank                     : Banco Pichincha C.A.
To expire                : US$ 2.390,92

Total debt up to July 2014 is US$ 618.574,28

Dapris Fashion S.A. had a credit with 2 months of overdue term for US$ 5.854,49 at the national Financial System registered in April 2013

Average amount of indebtedness registered by the subject, in the National Financial System:
During 2013 was US$ 103.641,03
During 2014 was US$ 410.000,93



Indebtedness with 2 months past due.
Date                       amount in US$
April, 2013                     5.854,49

Income tax corresponding to the last years:
Year 2013: US$ 19.297
Year 2012: US$ 10.453
Year 2011: US$ 10.545

FINANCIAL INFORMATION

                    
C O M P A R A T I V E  -  S U M M A R Y
                           (Figures in US$ Dollars)

                                                    31/12/2013        31/12/2012
CURRENT ASSETS                                         652.977           676.698
CURRENT LIABILITIES                                    333.283           470.051
WORKING CAPITAL                                        319.694           206.647
FIXED ASSETS                                            56.106            48.670
LONG TERM LIABILITIES                                  262.513           210.447
NET WORTH                                              113.287            44.870
OPERATING INCOMES                                    1.380.181         1.191.762
CURRENT PROFIT(LOSS)                                    68.417              -260

                            BALANCE  SHEET
                        INDIVIDUAL FISCAL YEAR SUMMARIZED

ASSETS                                              31/12/2013        31/12/2012
Cash                                                    49.185            34.557
Sundry Debtors                                          97.227           307.944
Inventory                                              470.254           322.994
Other Current Assets                                    36.311            11.203
CURRENT ASSETS                                         652.977           676.698

Net Fixed Asset                                         56.106            48.670
FIXED ASSETS                                            56.106            48.670

TOTAL ASSETS                                           709.083           725.368

LIABILITIES                                         31/12/2013        31/12/2012
Accounts Payable                                       209.657           335.182
Notes Payable                                           23.797                 0
Other Current Liabilities                               99.829           134.869
CURRENT LIABILITIES                                    333.283           470.051

Notes Payable                                          262.513                 0
Other Long Term Liabilities                                  0           210.447
LONG TERM LIABILITIES                                  262.513           210.447

Capital & Reserves                                      16.642            16.642
Other Reserves                                           1.438             1.438
Accumulated Profits                                     26.790            27.050
Current Profit (Losses)                                 68.417              -260
NET WORTH                                              113.287            44.870

TOTAL LIABILITIES                                      709.083           725.368

STATEMENTS OF RESULTS                               31/12/2013        31/12/2012
Operating  Income                                    1.380.181         1.191.762
Operating Cost                                        -669.340          -463.042
OPERATING MARGIN                                       710.841           728.720

Administration & Sales Expenses                       -588.897          -726.902
OPERATING RESULT                                       121.944             1.818

Other non Operating Expenses                           -18.751            -2.078
NON OPERATING RESULT                                   -18.751            -2.078

Result Before Income Tax                               103.193              -260
Taxes and Employees Participation                      -34.776                 0
NET PROFIT(LOSS)                                        68.417              -260

CURRENT PROFIT(LOSS)                                    68.417              -260

                           ECONOMIC - FINANCIAL RATIOS

                                        31/12/2013     31/12/2012        Average

Working Capital             ( US$ )        319.694        206.647        263.171
Current Liquidity           (Times)           1,96           1,44           1,70
Acid Test                   (Times)           0,55           0,75           0,65
Collection Period Days      ( Days)          25,36          93,02          59,19
Accounts Receivable Turnover(Times)          14,20           3,87           9,04
Inventory Turnover          (Times)           1,42           1,43           1,43
Current Indebtedness        (Times)           2,94          10,48           6,71
Total Indebtedness          (Times)           5,26          15,17          10,22
Solvency                    (Times)           1,19           1,07           1,13
Assets Tying Up             (  %  )           7,91           6,71           7,31
Profitability Over Sales    (  %  )           4,96          -0,02           2,47
Profitability Over Assets   (  %  )           9,65          -0,04           4,81
Profitability Over Net Worth(  %  )         152,48          -0,58          75,95


BANKS

The main banks are:

-  Banco Amazonas S.A.
-  Banco Bolivariano C.A.
-  Banco de Guayaquil S.A.
-  Banco Pichincha C.A.

OPERATIONS

Line of Business : The line of business registered at the Internal Revenue
                   Services(IRS) is:  MANUFACTURE OF CLOTHING

                                                                             
                   Social objective registered at the Superintendency of
                   Companies is: Production, import, purchase, sale,
                   elaboration, repairing, industrialization and export of
                   uniforms, clothing in general, pants, shirts, etc.

Classification according to commercial activity:

Sic: 5611-0000 Men's and boys' clothing stores
Sic: 5621-0000 Women's clothing stores

Sales

Sales are steady throughout the year

National sales territory

Customers

Main customers are: Line of business' distributors.

Purchases

Domestic and international purchases

Imports from Germany, Colombia.

Main suppliers

- Wilttex S.A.

Employees: 80 employees

Location

-  The administrative offices are located at A la altura del Km 3.5 Av.
Juan
   Tanca Marengo s/n, Lotización Satiron, Frente al Registro Civil.
Guayaquil
   Guayas, Ecuador

Branches

Subject does not have any branch

RELATED COMPANIES

Subject is related to the following companies:

-  Importadora Macocorp S.A. T A X : 0992700912001
-  Pridasotex S.A. T A X : 0992616466001

INSURANCES (11/09/2014)

Insurance details were declined.

ADMINISTRATION

General Manager          : Hernan David Maura Cordero TAX:0916525843001
Auditor                  : Judith Castillo
Accounting Assistant     : Suani Ruiz

CURRICULUM


Hernan David Maura Cordero

T A X               : 0916525843001
Civil status        : Single
Birth date          : 18/12/1985 Guayaquil Guayas-Ecuador
Position            : General Manager
Mercantile Register : Number 8582 of 11/05/2009
Simultaneously      : He is legally registered at the IRS to perform personal
                      business since January 06, 2009. His registered business
                      activity is: Business and Management advice  He does not
                      have a trade name

LEGAL INFORMATION

Legal Structure       : Stock Company
Constitution date     :  19/03/2009
Authorization         : Resolution Nº 1522
Notary                : N° 7, Guayaquil Guayas
Term of duration      : 100 Year, ended on 19/03/2109
Legal Address         : Guayaquil - Ecuador
Published in          : Official Gazette dated 23/03/2009

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 : 4

-  25,00% Blanca Irene Cordero Hernandez
-  25,00% 0916525843001 Hernan David Maura Cordero
-  25,00% Priscilla Stephanie Maura Cordero
-  25,00% Irene Sofia Maura Cordero

Legal representation is held by General Manager.
INFORMATION SOURCES

On 11/09/2014 Miss. Suani Ruiz, Accounting Assistant,  declined financial
information as she is not authorized to provide it,  however, submitted 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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.10

UK Pound

1

Rs.99.05

Euro

1

Rs.79.03

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 

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.