MIRA INFORM REPORT

 

 

Report No. :

301953

Report Date :

09.01.2015

 

IDENTIFICATION DETAILS

 

Name :

ELECTROCABLES C.A. 

 

 

Registered Office :

Via a Daule a la altura del  Km 11,5  Parque Industrial El Sauce - Guayaquil  Guayas Ecuador 

 

 

Country :

Ecuador

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

25.09.1981

 

 

Legal Form :

Stock Company

 

 

Line of Business :

Manufacturer of Electrical and Telephone Cables.

 

 

No. of Employee :

200

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Ecuador

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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                            

ELECTROCABLES C.A. 

Via a Daule a la altura del  Km 11,5  Parque Industrial El Sauce - Guayaquil  Guayas Ecuador 

Telephone    : 593-2-2829113, 593-2-2829114, 593-4-3705460 

E_Mail       : info@electrocable.com, quito@electrocable.com 
Web Site     : www.electrocable.com 

SUMMARY 

Started                                     : 1981 
Total Employees                       : 200 
Payments                                : Prompt 
Financial Sit.                             : Normal 
Economic Sit.                                       : Acceptable 
Sales                                        : US$     71.903.427.- 
Net worth                                  : US$     20.875.400.- 
Current profit                             : US$      4.482.626.- 
Subscribed Capital                    : US$     12.106.593.- 

Sic(s) : 3315 - 3351 

Line of Business: Manufacture of electrical and telephone cables. 

FINANCIAL INDICATORS 

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

** Acceptable Working Capital 
** Good Current Liquidity Ratio 
** Normal Acid Test Ratio 

Economic situation is acceptable, as reflected in: 

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

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

Commercial Bulletin      : As at 31/12/2014 subject does not register protested 
                           checks in the national central of risk 

TRADE REFERENCES

Consulted suppliers declined to submit references 

Detail of Former Trade References 
-------------------------------------------------------------------------------- 
                        Last                                                                              Credit            Owes 
Old                   Purch.   Payment.          Notes                           (US$)           (US$) 
-------------------------------------------------------------------------------- 
Since 1985        07-14  Prompt               checks                          Open            None 
13 years            06-14  Prompt               checks                          Open            None 
14 years            01-14  Prompt               checks                        Open            None 
13 years            10-13  Prompt               bank transfer                 Open            None 
Since 1991        11-13  Prompt               checks                          Open            None 
Since 1991        04-13  Prompt               checks                        Open            None 
7 years             03-13  Prompt               checks                        Open            None 
Since 2005        03-12  Prompt               checks                         12.000            None 
12 years            03-12  Prompt               checks                        Open            None 
20 years            11-11  Prompt               checks                          Open            None 
20 years            03-11  Prompt               checks                          Open            None 
Since 2005        02-11  Prompt               checks                          12.000            None 
20 years            10-10  Prompt               invoice                         Open            None 
30 years            10-10  Prompt               checks                          Open            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 

- Legal Representative is not prevented from leaving the country 

- Legal Representative does not register criminal 

- 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 

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

- SERCOP: National Service of Public Procurement: public law regulatory agency 
that controls the national public procurement system. 

- This Subject DOES NOT have obligations at IESS (Ecuadorian Institute of Social Security) , to January, 2015 

Detail of Bank References

Below are listed the main three banks in which this company has credits in the 
National Financial System.

Bank                     : Banco Bolivariano C.A. 
To expire                : US$ 1.366.711,71 

Bank                     : Banco de Machala S.A. 
To expire                : US$ 590.138,25 

Bank                     : Corporacion Financiera Nacional 
To expire                : US$ 12.751.358,34

Total debt to November 2014 is US$ 19.400.407,30.

Credit history 

Electrocables C.A. had a credit with 2 months of overdue term for US$ 717.896,57 in May 2013 at the National Financial System 

Maximum amount of indebtedness registered by the subject -, in the National Financial System was US$ 26.570.252,32 in May, 2014 

Average amount of indebtedness registered by the subject, in the National Financial System: 
During 2011 was US$ 18.982.589,00 
During 2012 was US$ 25.133.451,00 
During 2013 was US$ 20.403.016,43 
During 2014 was US$ 21.426.356,17 

Records 

Indebtedness with 2 months past due. 
Date                       amount in US$ 
May, 2013                     717.896,57 

Income tax corresponding to the last years: 
Year 2013: US$ 839.018 
Year 2012: US$ 596.306 
Year 2011: US$ 1.260.899 
Year 2010: US$ 1.026.131 
Year 2009: US$ 858.008 

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        31/12/2011 
CURRENT ASSETS                    46.423.794        47.250.043        51.025.622 
CURRENT LIABILITIES               31.252.967        33.361.110        32.709.134 
WORKING CAPITAL                   15.170.827        13.888.933        18.316.488 
FIXED ASSETS                                                         7.434.778         9.118.562           6.492.414 
OTHER ASSETS                         187.820           187.820              187.820 
LONG TERM LIABILITIES              1.918.025         2.369.325           3.271.925 
NET WORTH                                                            20.875.400        20.825.990        21.724.797 
OPERATING INCOMES                 71.903.427        70.232.365        73.274.691 
CURRENT PROFIT(LOSS)               4.482.626         4.433.216           5.389.661 

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

ASSETS                                              31/12/2013        31/12/2012 
Cash                                                   549.723           253.797 
Sundry Debtors                                      24.651.273        30.723.672 
Inventory                                           16.206.171        12.538.316 
Other Current Assets                                 5.016.627         3.734.258 
CURRENT ASSETS                                      46.423.794        47.250.043 

Net Fixed Asset                                      7.434.778         9.118.562 
FIXED ASSETS                                         7.434.778         9.118.562 

Other                                                  187.820           187.820 
OTHER ASSETS                                           187.820           187.820 

TOTAL ASSETS                                        54.046.392        56.556.425 

LIABILITIES                                         31/12/2013        31/12/2012 
Accounts Payable                                    19.365.988        16.031.605 
Notes Payable                                       11.886.979        17.329.505 
CURRENT LIABILITIES                                 31.252.967        33.361.110 

Notes Payable                                        1.918.025         2.369.325 
LONG TERM LIABILITIES                                1.918.025         2.369.325 

Capital & Reserves                                  12.715.703        12.715.703 
Other Reserves                                             605               605 
Accumulated Profits                                  3.676.466         3.676.466 
Current Profit (Losses)                              4.482.626         4.433.216 
NET WORTH                                           20.875.400        20.825.990 

TOTAL LIABILITIES                                   54.046.392        56.556.425 

STATEMENTS OF RESULTS                               31/12/2013        31/12/2012 
Operating  Income                                   71.903.427        70.232.365 
Operating Cost                                     -57.990.653       -56.646.630 
OPERATING MARGIN                                    13.912.774        13.585.735 

Administration & Sales Expenses                     -8.637.437        -9.152.517 
OPERATING RESULT                                     5.275.337         4.433.218 

Other non Operating Incomes                            506.053                 0 
NON OPERATING RESULT                                   506.053                 0 

Result Before Income Tax                             5.781.390         4.433.218 
Taxes and Employees Participation                   -1.298.763                 0 
NET PROFIT(LOSS)                                     4.482.627         4.433.218 

CURRENT PROFIT(LOSS)                                 4.482.627         4.433.218 

                           ECONOMIC - FINANCIAL RATIOS 

                                        31/12/2013     31/12/2012        Average 

Working Capital             ( US$ )     15.170.827     13.888.933     14.529.880 
Current Liquidity           (Times)           1,49           1,42           1,46 
Acid Test                   (Times)           0,97           1,04           1,01 
Collection Period Days      ( Days)         123,42         157,48         140,45 
Accounts Receivable Turnover(Times)           2,92           2,29           2,61 
Inventory Turnover          (Times)           3,58           4,52           4,05 
Current Indebtedness        (Times)           1,50           1,60           1,55 
Total Indebtedness          (Times)           1,59           1,72           1,66 
Solvency                    (Times)           1,63           1,58           1,61 
Assets Tying Up             (  %  )          13,76          16,12          14,94 
Profitability Over Sales    (  %  )           6,23           6,31           6,27 
Profitability Over Assets   (  %  )           8,29           7,84           8,07 
Profitability Over Net Worth(  %  )          27,35          27,04          27,20 

BANKS 

Subject operates with the following financial institutions 

 Banco Bolivariano C.A. 
 Banco de Machala S.A. 
 Corporacion Financiera Nacional 

OPERATIONS

Line of Business : Manufacture of electrical and telephone cables.

                   THE LINE OF BUSINESS REGISTERED AT THE INTERNAL REVENUE 
                   SERVICES(IRS) IS: Activities of manufacture of electric 
                   cables and related products

                   Social objective registered at the Superintendence of 
                   Companies is: Manufacture and sale of materials for all kinds 
                   of electric installations and related goods, through various 
                   systems 

Classification according to commercial activity: 

Sic: 3315-0000 Steel wire and related products 
         -0309 Wire, steel: insulated or armored 
         -0300 Wire and fabricated wire products 
Sic: 3351-0000 Copper rolling and drawing 
         -9907 Wire, copper and copper alloy 
         -9904 Extruded shapes, copper and copper alloy 

Commercializes: 

- Electrocables 

Sales 

Sales are steady throughout the year 

National and international sales territory 

Exports to United States, Puerto Rico, Venezuela, Panama, Costa Rica. 

Customers 

Main customers are: Line of business' distributors, electric companies, 
companies in general,  telecommunications' companies. 

The 2 most important customers are: 

Subdireccion de Aviacion Civil del Litoral 

Purchases 

Domestic and international purchases 

Imports from Italy, Canada, United States, Germany, China, Colombia, Peru, 
Belgium, Denmark, France. 

Main suppliers

- Almacenes Boyaca S.A. 
- Doltrex S.A. 
- Ideal Alambrec S.A. 
- Kobrec Corporacion Ecuatoriana Del Cobre S.A. 
- Pica Plasticos Industriales C.A. 

Employees: 200 employees 

Location 

 The administrative offices are located at Via a Daule a la altura del  Km 
   11,5  Parque Industrial El Sauce Guayaquil Guayas, Ecuador 

Branches (07/01/2015) 

-  Panamericana Norte a la altura del Km 14.5 y Viteri, barrio San Alfonso Quito 
   Pichincha Ecuador 
-  Av. Gil Ramirez Davalos S/N y El Pedregal Cuenca Azuay Ecuador 

RELATED COMPANIES

Subject is related to the following companies: 

 Tuberias Pacifico S.A. Tupasa T A X : 0992532475001 Guayaquil Guayas . Sales 
   as at 31/12/2013 US$ 13.506.512 
 Pharmacaps Del Ecuador Pharmacaps S.A. T A X : 0992578734001 
 Doltrex S.A. T A X : 0991349588001 Guayaquil Guayas . Sales as at 31/12/2013 
   US$ 5.891.438 
 Kobrec Corporacion Ecuatoriana Del Cobre S.A. T A X : 0991428844001 
 Inzerkel S.A. T A X : 0992413638001 
 Cluba Club Azul S.A. T A X : 0990943346001 

INSURANCES (07/01/2015) 

Insurance Company: 

-Confianza Compañia de Seguros y Reaseguros S.A. 

-Mapfre Atlas Compañia de Seguros S.A. 

-Serviseguros S.A. 

BOARD OF DIRECTORS 

Executive Vice President : Nassib Jose Neme Anton TAX:0904906146 

ADMINISTRATION 

Finances Manager         : Veronica Miranda 
Imports Assistant        : Ruth Constantine 
General Manager          : Marcia Herrera 
Assistant of Quito 
Secretary                : Karen Cuero 
General Manager          : Jorge Neme Anton TAX:0990884129001 
Secretary                : Lorena Perez 
Manager                  : Cheme Alfredo Neme Macchiavello TAX:0909661183 
Manager                  : Carlos Enrique Ramirez Gonzalez TAX:0904088911001 
Manager                  : Luis Andres Neme Macchiavello TAX:0909661175001 
Secretary                : Ligia Posligua 

CURRICULUM 


Jorge Neme Anton 

T A X               : 0990884129001 
Position            : General Manager 
Mercantile Register : Number 9037 of 10/07/2014 
Previously          : He was legally registered at the IRS for engaging in business as an 
                      individual since 12-11-19987 until 13-09-2006.  His 
                      economic activity registered was:  Manufacturing of jewels 
                      of precious metals, gemstones, or mixtures of them or 
                      other materials. Activities were definitely suspended.

Cheme Alfredo Neme Macchiavello 

T A X               : 0909661183 
Civil status        : Married 
Birth date          : 19/04/1979 -Ecuador 
Position            : Manager 
Mercantile Register : Number 8991 of 10/07/2014 

Carlos Enrique Ramirez Gonzalez 

T A X               : 0904088911001 
Civil status        : Married 
Birth date          : 15/07/1950 -Ecuador 
Position            : Manager 
Mercantile Register : Number 9036 of 10/07/2014 
Simultaneously      : He is legally registered at the IRS to perform personal 
                      business since August 30, 1999. His registered business 
                      activity is: Activities of Electrical Engineering.  He 
                      does not have a trade name. 

Luis Andres Neme Macchiavello 

T A X               : 0909661175001 
Civil status        : Married 
Birth date          : 26/07/1980 -Ecuador 
Position            : Manager 
Mercantile Register : Number 9889 of 28/07/2014 
Simultaneously      : He is legally registered at the IRS to perform personal 
                      business since September 15 2009. His registered business 
                      activity is: Sale of diverse products for consummer.  He 
                      does not have a trade name 

LEGAL INFORMATION

Legal Structure       : Stock Company 
Constitution date     : 25/09/1981 
Authorization         : Resolution Nº 1070 
Notary                : N° 18, Guayaquil Guayas 
Term of duration      : 50 Year, ended on 25/09/2031 
Legal Address         : Guayaquil - Ecuador 
Published in          : Official Gazette dated 06/10/1981 

Current Subscribed Capital: US$ 12.106.593.-Divided to 12.106.593.- common 
                            shares unique series amounting US$ 1.- 
Paid-in Initial Capital: US$ 5.- 
Subscribed Initial Capital: US$ 20.- 

Shareholders : 

-  25,02% 0992578734001 Pharmacaps Del Ecuador Pharmacaps S.A. 
-  23,11% 0904906146 Nassib Jose Neme Anton 
-  14,99% 0990884129001 Jorge Neme Anton 
-  12,50% Jacqueline Nehme Anton 
-  12,40% Tarruz Guadalupe Neme Anton 
-   5,95% 0909661183 Cheme Alfredo Neme Macchiavello 
-   5,94% 0909661175001 Luis Andres Neme Macchiavello 
-   0,05% 0905653051001 Aquiles Ramon Guerrero Mosquera 
-   0,04% Wadih Alfredo Anton Achi 

Legal representation is held by Executive Vice President. 

Legal changes 

By Resolution Nº 4684 on 23/05/2005, notary N° 30, Guayaquil Guayas, published 
in the Official Gazette dated 26/09/2005, capital was increased: by USD 
6.498.330,00 of National Investment and Direct Foreign Investment 

By Resolution Nº 4048 on 22/12/2006, notary N° 30, Guayaquil Guayas, published 
in the Official Gazette dated 11/08/2006, capital was increased: by USD 
300.000,00 of National Investment and Direct Foreign Investment 

By Resolution Nº 7722 on 31/07/2007, notary N° 30, Guayaquil Guayas, published 
in the Official Gazette dated 20/12/2007, last capital increase was performed by 
USD 1.768.263,00 of National Investment 

By Resolution Nº 6352 on 10/11/2011, notary N° 12, Guayaquil Guayas, published 
in the Official Gazette dated 14/11/2011, capital was increased: By US$ 
2.900.000,00 

Since its date of incorporation, until now there have been a total of 10 capital 
increases.

This company is part of a business group called Grupo Electrocable which 
includes other companies aimed to perform complementary activities.

By resolution Nº 04-G-IMV-3319 on June 18 , 2004, the Superintendency of 
Companies approved the registration of this Company in the Stock Exchange. 
Currently it does not have issued values. 

PUBLICATIONS

Information regarding subject is supplied as follows 

Revista Gestion No 192 of 01/06/2010 This Company was part of the "500 largest 
Companies of the Country" in year 
2009, ranked in the 167 place

Revista Vistazo No. 1058 of 22/09/2011 The production per month of this Company 
reaches 2.000 tons of cupper cable and 800 tons of aluminum cable, and their 
destinations are 12 international markets, among them are: Puerto Rico, United 
States and Panama, demanding the ecological medium voltage cables - 

Servicio de Rentas Internas of 31/12/2012 According to the S.R.I. information, 
in the fiscal period of 2012, the Electrocables Group had a total of 17 firms 
which had incomes for US$. 159.990.042 the caused income tax was US$. 1.613.219 - 

Revista Gestión Economía y Sociedad  Nº 228 of 01/07/2013 This Company was part 
of the 100 Largest importers of the Country in year 2012, occupying the 92 place 
with a CIF value of US$ 49.140.000 - 

Servicio de Rentas Internas of 31/12/2013 According to the S.R.I. information, 
in the fiscal period of 2013, the Electrocables Group had a total of 17 firms 
which had incomes for US$. 168.588.993 the caused income tax was US$. 1.293.553 - 

Revista Gestión Nº 240 of 10/06/2014 This Company was part of the 100 Largest 
importers of the Country in year 2013, occupying the 99 place with a CIF value 
of US$ 42,29 million - 

Revista Vistazo  Nº 1130 of 25/09/2014 This Company was part of the 700 Largest 
Companies of the Country in year 2013 occupying the 239 place with a sales 
increase of 3% compared to year 2012 - 

INFORMATION SOURCES 

On 06/01/2015 Miss. Ligia Posligua, Secretary,  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.62.97

UK Pound

1

Rs.94.97

Euro

1

Rs.74.43

 

 

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.