MIRA INFORM REPORT

 

 

Report No. :

326411

Report Date :

15.06.2015

 

IDENTIFICATION DETAILS

 

Name :

LIPEQ S.A.

 

 

Registered Office :

Vicente Duque N73-193 y Jose Andrade, sector Carcelen Industrial. – Quito, Pichincha

 

 

Country :

Ecuador

 

 

Financials (as on) :

31.12.2014

 

 

Year of Establishment :

1992

 

 

Legal Form :

Public Company

 

 

Line of Business :

Subject is engaged in production of chemicals for domestic and industrial use

 

 

No. of Employee :

Not Available

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. Furthermore, the CORREA administration is considering de-dollarizing the economy to allow the government to use monetary policy tools to stabilize growth.

 

Source : CIA

 

IDENTIFICATION                            

                                                          
LIPEQ S.A.


Vicente Duque N73-193 y Jose Andrade, sector Carcelen Industrial. – Quito, Pichincha, ECUADOR

Telephone    : 593-2-2472342, 593-2-5140402

E_Mail       : contabilidad.ecuador@lipesa.com
Web Site     : http://www.lipesa.com/


SUMMARY


TAX                              : 1791231104001
Started                         : 1992
Payments                     : Prompt
Financial Sit.                 : Normal
Economic Sit.                : Normal
Sales                            : US$      4.474.312.-
Net worth                      : US$      1.084.550.-
Current profit                 : US$        372.461.-

Sic(s) : 5169

Line of Business: Production of chemicals for domestic and industrial use.

 

EVALUATION

 

Interpretation at the end of the report.


Credit Recommendation

 

Dollars
Conservative value        :        320.000
Liberal value                  :         350.000

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


Financial indicators

 

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

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

Economic situation is normal, as reflected in:

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

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


COMMERCIAL INFORMATION


Commercial Bulletin      : As at 30/04/2015 subject does not register protested
                                                            checks in the national central of risk


TRADE REFERENCES

 

Consulted suppliers declined to submit references

- Tax Status: Current obligations fulfilled

- 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 June, 2015

- Subject does not have prosecutions in the province registered as its legal address

Detail of Bank References

Bank                     : Banco Amazonas S.A.
To expire                : US$ 23.899,80

Bank                     : Banco De La Produccion S.A.
To expire                : US$ 31.052,02

Bank                     : Diners Club del Ecuador S.A. Sociedad Financiera
Credit Card              : Credit Card
To expire                : US$ 624,33

Total debt up to April 2015 is US$ 55.576,15

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

Average amount of indebtedness registered by the subject, in the National Financial System:
During 2015 was US$ 43.293,23

Income tax corresponding to the last years:
Year 2014: US$ 118.463
Year 2013: US$ 56.378
Year 2012: US$ 24.861
Year 2011: US$ 7.725


FINANCIAL INFORMATION

 

COMPARATIVE -  SUMMARY
                                                            ( Figures in US$ Dollars )

                                   
      31/12/2014        31/12/2013        31/12/2012
CURRENT ASSETS                     1.958.741         1.648.533         1.819.799
CURRENT LIABILITIES                1.183.496         1.024.270         1.532.257
WORKING CAPITAL                      775.245           624.263           287.542
FIXED ASSETS                         428.518           135.973           107.298
OTHER ASSETS                          12.917            10.562             7.963
LONG TERM LIABILITIES                132.130            28.631            19.741
NET WORTH                          1.084.550           742.167           383.062
OPERATING INCOMES                  4.474.312         3.669.928         3.169.946
CURRENT PROFIT(LOSS)                 372.461           164.446            76.045


BALANCE  SHEET

 

INDIVIDUAL FISCAL YEAR SUMMARIZED

ASSETS                                              31/12/2014        31/12/2013
Cash                                                    62.845             1.391
Sundry Debtors                                         688.246           625.311
Inventory                                            1.066.558           788.143
Other Current Assets                                   141.092           233.688
CURRENT ASSETS                                       1.958.741         1.648.533

Net Fixed Asset                                        428.518           135.973
FIXED ASSETS                                           428.518           135.973

Other                                                   12.917            10.562
OTHER ASSETS                                            12.917            10.562

TOTAL ASSETS                                         2.400.176         1.795.068

LIABILITIES                                         31/12/2014        31/12/2013
Accounts Payable                                       886.044           791.997
Notes Payable                                           87.790            32.565
Other Current Liabilities                              209.662           199.708
CURRENT LIABILITIES                                  1.183.496         1.024.270

Notes Payable                                           85.557            21.248
Other Long Term Liabilities                             46.573             7.383
LONG TERM LIABILITIES                                  132.130            28.631

Capital & Reserves                                     600.000           491.009
Other Reserves                                          27.458            11.014
Accumulated Profits                                     84.631            75.698
Current Profit (Losses)                                372.461           164.446
NET WORTH                                            1.084.550           742.167

TOTAL LIABILITIES                                    2.400.176         1.795.068

STATEMENTS OF RESULTS                               31/12/2014        31/12/2013
Operating  Income                                    4.474.312         3.669.928
Operating Cost                                      -2.466.824        -2.208.558
OPERATING MARGIN                                     2.007.488         1.461.370

Administration & Sales Expenses                     -1.433.052        -1.181.556
OPERATING RESULT                                       574.436           279.814

Other non Operating Incomes                             33.492             2.727
Other non Operating Expenses                           -30.370           -22.747
NON OPERATING RESULT                                     3.122           -20.020

Result Before Income Tax                               577.558           259.794
Taxes and Employees Participation                     -205.097           -95.348
NET PROFIT(LOSS)                                       372.461           164.446


CURRENT PROFIT(LOSS)                                   372.461           164.446


ECONOMIC - FINANCIAL RATIOS

 

                                    31/12/2014     31/12/2013        Average
Working Capital             ( US$ )        775.245        624.263        699.754
Current Liquidity           (Times)           1,66           1,61           1,64
Acid Test                   (Times)           0,75           0,84           0,80
Collection Period Days      ( Days)          55,38          61,34          58,36
Accounts Receivable Turnover(Times)           6,50           5,87           6,19
Inventory Turnover          (Times)           2,31           2,80           2,56
Current Indebtedness        (Times)           1,09           1,38           1,24
Total Indebtedness          (Times)           1,21           1,42           1,32
Solvency                    (Times)           1,82           1,70           1,76
Assets Tying Up             (  %  )          17,85           7,57          12,71
Profitability Over Sales    (  %  )           8,32           4,48           6,40
Profitability Over Assets   (  %  )          15,52           9,16          12,34
Profitability Over Net Worth(  %  )          34,34          22,16          28,25


BANKS

 

The main banks are:

-  Banco Amazonas S.A.
-  Banco De La Produccion S.A.
-  Banco Pichincha C.A.

OPERATIONS (09/06/2015)

Line of Business : Production of chemicals for domestic and industrial use.

                   The line of business registered at the Internal Revenue
                   Services(IRS) is: CHEMICALS PRODUCTION AND COMMERCIALIZATION


                   Social objective registered at the Superintendence of
                   Companies is: Production, blending, commercialization,
                   distribution, representation, research, import, export of
                   chemicals for domestic and industrial cleaning.

Classification according to commercial activity:

Sic: 5169-0000 Chemicals and allied products


Sales

 

Sales are steady throughout the year

National sales territory


Customers

 

Main customers are: Public in general.


Purchases

 

Domestic and international purchases

Imports from France, United States, China, Colombia,


Main suppliers

 

- Quimica Industrial Montalvo Aguilar Quimasa S.A.
- Solvesa Ecuador S.A.


Employees

 

Number of employees unknown


Location

 

-  The administrative offices and industrial plant are located at Vicente Duque
   N73-193 y Jose Andrade, sector Carcelen Industrial. Quito Pichincha, Ecuador


Branches


-  Financial Advice Office located at: Calle D 63-252 y Nazacota Puento, Barrio
   El Rosario Quito Pichincha Ecuador


RELATED COMPANIES

 

Subject is related with the following company:
International

-  Lipesa Colombia S.A., Colombia


INSURANCES

 

Subject is insured, but name of insurance company is not disclosed


ADMINISTRATION

 

General Manager          : Luis Eduardo Sabogal Monroy TAX:79209695
President                      : Norma Guillermina Carrillo Rodriguez TAX:0601209190
Coordinator Supplying.   : Pamela Lugmaña
Department Acounting     : Victor Hugo Samaniego


CURRICULUM

 

Luis Eduardo Sabogal Monroy

TAX                              : 79209695
Birth place                    : Colombia
Position                                    : General Manager
Mercantile Register        : Number 7751 of 19/05/2015

Norma Guillermina Carrillo Rodriguez

TAX               : 0601209190
Civil status        : Married
Birth date          : 24/07/1957 -Ecuador
Position            : President
Mercantile Register : Number 810 of 20/01/2015

Ivan Dario Bernal Londoño

TAX               : 12150043
Birth place         : Venezuela
Position            : Shareholder

Antonio Des Trigas

TAX               : 8469829
Birth place         : Venezuela
Position            : Shareholder

Pedro Hernandez Latuff

Birth place         : Venezuela

Williams Hernendez Latuff

Birth place         : Venezuela
Position            : Shareholder

Guido Mazza Manari

Birth place         : Venezuela
Position            : Shareholder

Brinolfo Marquez Leon

Birth place         : Venezuela
Position            : Shareholder


LEGAL INFORMATION

 

Legal Structure              : Stock Company
Constitution date           : 15/07/1992
Authorization                 : Resolution Nº 1013
Notary                          : N° 2, Quito Pichincha
Term of duration            : 50 Year, ended on 15/07/2042
Legal Address               : Quito - Ecuador
Published in                  : Official Gazette dated 25/07/1992

Initial Paid-in Capital: US$ 200.-Divided to 600.000.- common shares unique
                         series amounting US$ 1.-
Subscribed Initial Capital: US$ 400.-
Subscribed Initial Capital: US$ 600.000.-
Authorized Initial Capital: US$ 1.200.000.-


Shareholders

-  67,21% Lipesa Colombia S.A. (Colombia)
-  25,64% Guido Mazza Manari
-   3,05% Pedro Hernandez Latuff
-   2,00% 8469829 Antonio Des Trigas
-   0,88% 12150043 Ivan Dario Bernal Londoño
-   0,81% Williams Hernendez Latuff
-   0,38% Otros.
-   0,03% Brinolfo Marquez Leon

Legal representation is held by General Manager.


Legal changes

 

By Resolution Nº 2873 on 12/11/1998, published in the Official Gazette dated
16/11/1998, capital was increased: By US$ 33.080

By Resolution Nº 533 on 04/02/2005, published in the Official Gazette dated
27/07/2005, capital was increased: By US$ 262.870.

By Resolution Nº 0 on 29/12/2014, published in the Official Gazette dated
02/02/2015, capital was increased: By US$ 303.650.

This company has a total of 11 sthareholders among individuals and legal persons


INFORMATION SOURCES

On 09/06/2015 Mr. Pamela Lugmaña, Coordinator Supplying, 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


INTERPRETATION OF RISK LEVEL AND CREDIT RECOMMENDATION

Macroeconomic Information

Interest Rate for the week of      03/06/2015 - 09/06/2015

Ref. Active Rate for Operations     ( % ) 8,70

Ref. Passive Rate for Operations    ( % ) 5,48

Basic Rate of Central Bank          ( % ) 0,20

Legal                               ( % ) 8,70

Maximum conventional                ( % ) 9,33


Inflation Ratio                          

Yearly Inflation                    ( % ) 4,55 May/2015

Monthly Inflation                   ( % ) 0,18 May/2015

Accumulated                         ( % ) 2,66 May/2015

The information  herein  contained is confidential and exclusively intended for
its  addressee. Unauthorized use, copying  and/or  disclosure of the information
contained  in  this  transmission   may  result  in  legal  punishment.  If  you
receive  this  document  by error, please  delete it  and notify  to  the  email
address: operaciones@twsecuador.com.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.03

UK Pound

1

Rs.99.27

Euro

1

Rs.71.90

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

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.