MIRA INFORM REPORT

 

 

Report No. :

353507

Report Date :

12.12.2015

 

 

IDENTIFICATION DETAILS

 

Name :

FORRATEC ARGENTINA S.A.

 

 

Registered Office :

Av Elguea Roman 1158, Chacabuco , 6740-Buenos Aires

 

 

Country :

Argentina

 

 

Date of Incorporation :

1985

 

 

Legal Form :

Sociedad Anónima

 

 

Line of Business :

The company discovers and develops crop protection, weed management, and plant biotechnology solutions for basic grains, corn, tomatoes, chilies, cotton, fruits and vegetables, horticulture, ornamental, pastures, and forestry.

 

 

No. of Employees :

55

           

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Argentina

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

ARGENTINA - ECONOMIC OVERVIEW

 

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight.

 

A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data.

 

Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits.

The government has taken multiple steps in recent years to deal with these problems. It expanded state intervention in the economy throughout 2012. In May 2012 the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and pre-approval of all imports. In July 2012 the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. In October 2013, the government settled long-standing international arbitral disputes dating back to before and following the 2001 Argentine financial crisis. During 2014, the government continued with expansionary fiscal and monetary policies and foreign exchange and imports controls. Between 2011 and 2013, Central Bank foreign reserves had dropped $21.3 billion from a high of $52.7 billion. In July 2014, Argentina and China agreed on an $11 billion currency swap; the Argentine Central Bank has received the equivalent of $3.2 billion in Chinese yuan, which it counts as international reserves.

 

In 2014, the government also took some measures to mend ties with the international financial community, including engaging with the IMF to improve its economic data reporting, reaching a compensation agreement with Repsol for the expropriation of YPF, and agreeing to pay $9.7 billion in arrears to the Paris Club over five years, including $606 million owed to the United States. In July 2014, Argentina made its first payment to Paris Club creditors since the country's 2001 financial crisis. At the same time, the Argentine government in July 2014 entered a technical default on its external debt after it failed to reach an agreement with holdout creditors in the US. The government's delay in reaching a settlement and the continuation of interventionist and populist policies are contributing to high inflation and a prolonged recession, according to private analysts.

 

Source : CIA

 

 

STATUTORY INFORMATION

 

Legal Name:

FORRATEC ARGENTINA S.A.

Trade Name:

FORRATEC

CUIT:

30-70860365-8

Date Created:

1985

Date Incorporated:

02/12/2003

Legal Address:

Av Elguea Roman 1158
Chacabuco
6740-Buenos Aires

Operative Address:

Av Elguea Roman 1158, Chacabuco (6740), Buenos Aires, Argentina

Telephone:

54 2352 431702 

Fax:

54 2352 428587

Legal Form:

Sociedad Anónima

Email:

info@forratec.com.ar

Registered in:

Distrito Chacabuco (Di Rjun)
12 De Febrero 23
6740 Buenos Aires

Website:

www.forratec.com.ar

Contact:

Martín Alfredo Zingoni, President

Staff:

55

Activity:

Agricultural Industry Wholesale

 

 

Banks:

According to Argentinian Central Bank, the company maintains credit lines with the following banks:

BANK

AMOUNT IN AR$

BANCO DE LA PROVINCIA DE BUENOS AIRES

14055,4

BANCO MACRO S.A.

10444,6

BANCO SANTANDER RIO S.A.

5601,1

BANCO DE GALICIA Y BUENOS AIRES S.A.

5513,8

BANCO ITAU ARGENTINA S.A.

2770,3

BANCO COMAFI SOCIEDAD ANONIMA

2246,1

BANCO PATAGONIA S.A.

2115,8

BANCO INDUSTRIAL

1902,6

BANCO SUPERVIELLE S.A.

1754,8

BBVA BANCO FRANCES S.A.

1495,5

INDUSTRIAL AND COMMERCIAL BANK OF CHINA

1329,3

HSBC BANK ARGENTINA S.A.

1290,6

BANCO DE LA PAMPA S.E.M.

1285,3

BANCO CMF S.A.

794,2

 BANCO CREDICOOP COOPERATIVO LIMITADO

253,1

 BANCO DE LA NACION ARGENTINA

64,8

 

According to the classification of banking relations of Argentina,
the company operates with level: 1.

This is the highest classification in the system. It means that the  company/person is fulfilling correctly its current Credit
obligations.

REJECTED CHECKS:

No of rejected checks

 

 

History:

 

 

Forratec Argentina is a company founded in 1985 as a supplier of forage seed.

 

 

 

In 2010, the complementation agreement with Dow AgroSciences® in the use of corn DUO, allowed them to bring to market high-productivity corn specific for use as silage.

PRINCIPAL ACTIVITY

 

 

The company discovers and develops crop protection, weed management, and plant biotechnology solutions for basic grains, corn, tomatoes, chilies, cotton, fruits and vegetables, horticulture, ornamental, pastures, and forestry .

Products/Services description:

• Synthetic Magna Alfalfas
• Alfalfas hybrid HybriForce®
• Red clover, white clover, Melilotus, Lotus corniculatus and tenuis.
• Grasses as Agropyro, Phalaris, Cebadillas, Festucas, Oats, Rye Grass annual and perennial, Festulolium and orchard grass.
• Sorghum fodder, and grain sorghum Sileros
• DUO corns silage.

Brands:

F Forratec®, HybriForce® DUO 560 HX® DUO 565 HX RR® DUO 548 HX®

Sales are:

Wholesale

Clients:

BRUBAKKEN & REINBOLD INC.
USA

Suppliers:

Dow AgroSciences B.V.

Operations area:

National and International

The company imports from

Europe

The company exports to

USA

The subject employs

55 employees

Payments:

No Complaints

 

 

LOCATION

 

Headquarters :

Av Elguea Roman 1158, Chacabuco (6740), Buenos Aires, Argentina

Branches:

There are no branches

 

 

GROUP STRUCTURE AND SUBSIDIARY COMPANIES

Listed at the stock exchange:

NO

Capital:

$ 12.000

Shareholders:

This is a private company. Major holders are:

Martín Alfredo Zingoni
Alejandro Mario Bartolomé
Luis Rodolfo Klenik
Roberto Normando Brinnand

Management:

Martín Alfredo Zingoni, President
Alejandro Mario Bartolomé, Director
Luis Rodolfo Klenik
Roberto Normando Brinnand
Rolando Meninato, Vicepresident
Elton Batistella Martins, Director
Lino Palacio
Raúl Dante Palmieri

 

 

FINANCIAL INFORMATION

 

 

This is a private company which does not make its financial figures public. The following information has been confirmed by our private sources:

 

 

AR$ 2014

 

Sales

15 000 000

 

 

Annual Exports FOB DOLLAR

 

2015

1.213.315

2014

1.321.575

2013

1.844.621

2012

1.497.944

2011

1.270.803

 

 

LEGAL FILINGS

 

 

 

 

There are no legal issues connected to the subject.

 

 

SUMMARY

 

 

The company discovers and develops crop protection, weed management, and plant biotechnology solutions.

It has 12 years of experience in the market with a small-medium sized structure.

The company has several open credit line with national bank institutions and shows regular payment behaviour.

It distributes from 2010, Dow AgroSciences® products to the market.

The company's last export fisgures show high and regular amounts.

 

 

 

RISK INFORMATION

 

DEBTS

Controlled-High

PAYMENTS

No Complaints

CASH FLOW

Normal

STATUS

Active

 

 

INTERVIEW

 

NAME

Federico

POSITION

Administrative

COMMENTS

The person contacted confirmed address, managers, staff, activity, brands and payment terms.

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.79

UK Pound

1

Rs.101.10

Euro

1

Rs.73.10

ARS

1

Rs.6.91

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.