MIRA INFORM REPORT

 

 

Report No. :

319954

Report Date :

06.05.2015

           

IDENTIFICATION DETAILS

 

Name :

PF GROUP S.A. 

 

 

Registered Office :

Calle De las Avellanas E1-101 Y Av. Panamericana Norte, Sector Parque de los Recuerdos N66A - Quito 

 

 

Country :

Ecuador

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

1988 

 

 

Legal Form :

Public company

 

 

Line of Business :

Production of automotive sealants, masterbatches, textile binders, automotive carpets, sale of technical plastics

 

 

No. of Employee :

116 

 

 

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

 

company name and address


PF GROUP S.A. 


Calle De las Avellanas E1-101 y Av. Panamericana Norte, Sector Parque de los 
Recuerdos N66A - Quito 
Pichincha 
ECUADOR 

Telephone         : 593-2-2478572/300, 593-2-2484648, 593-2-2484650 
Fax                   : 593-2-2481207 

E_Mail              : mevalarezo@pfgroup-ec.com , secapol@pfgroup-ec.com  


SUMMARY 


Started                         : 1988 
Total Employees             : 116 
Payments                      : Prompt 
Financial Sit.                 : Normal 
Economic Sit.                  : Normal 
Sales                            : US$      9.683.338.- 
Net worth                      : US$      6.704.648.- 
Current profit                 : US$        682.394.- 
Subscribed Capital          : US$      3.800.000.- 

Sic(s) : 2891 - 2899 

Line of Business: Production of automotive sealants, masterbatches, textile binders, automotive carpets, sale of technical plastics. 


Financial indicators 


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

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

Economic situation is normal, as reflected in: 

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

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


COMMERCIAL INFORMATION

 

Commercial Bulletin      : As at 31/03/2015 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                               : 10 years 
Last purchase               : 03-2015 
Terms                           : 45-60 days 
Payment                       : Prompt 
Notes                           : checks 
Credit                           : Open 
Owes                            : Does not Register 
Due                              : Does not Register 
Paying Comments         : Excellent 
Purchase Aver.              : (Monthly US$) 7.000 

Old                               : 11 years 
Last purchase               : 03-2015 
Terms                           : 30 days 
Payment                       : Prompt 
Notes                           : checks 
Credit                           : Open 
Owes                            : Does not Register 
Due                              : Does not Register 
Paying Comments         : Excellent 
Purchase Aver.              : (Monthly US$) 3.500 
Last purchase value US$ 1.600 

Detail of Former Trade References 
-------------------------------------------------------------------------------- 
                        Last                                                      Credit                Owes 
Old                   Purch.  Payment.    Notes                     (US$)                (US$) 
-------------------------------------------------------------------------------- 
4 years             06-14  Prompt      checks                           -                   None 
10 years            05-14  Prompt      checks                        Open               None 
5 years             06-13  Prompt      checks                       5.000                None 
9 years             08-13  Prompt      checks                        Open               None 
15 years            08-13  Prompt      checks                        Open               None 
2 years             08-11  Prompt      checks                        Open               None 
Since 2005        09-11  Prompt      checks                      12.000               None 
8 years             09-11  Prompt      checks                      30.000               2.387 
8 years             08-11  Prompt      bank transfer             Open                 None 
6 years             08-10  Prompt      invoice                       Open                None 
13 years            09-10  Prompt      bank transfer              30.000              None 
1 year               09-10  Prompt      bank transfer              30.000              None 
1 year               05-10  Prompt      invoice                      6.000                None 
13 years            06-10  Prompt      checks                      25.000              None 
10 years            04-10  Prompt      invoice                                   Open                None 
3 years             08-09  Prompt      bank transfer                2.000              None 
15 years            09-09  Prompt      checks                                  32.000              None 
6 years             08-09  Prompt      checks                        Open               None 
5 years             05-09  Prompt      checks                        Open               None 
3 years             06-09  Prompt      checks                                   2.000                None 
5 years             06-09  Prompt      checks                        Open               None 
5 years             10-07  Prompt      checks                        Open               None 
3 years             10-07  Prompt      checks                       1.000                None 
20 years            08-07  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 April, 2015 

Detail of Bank References 

Bank                             : Banco De La Produccion S.A. 
To expire                      : US$ 1.513.363,14 

Bank                             : Banco Del Pacifico S.A. 
To expire                      : US$ 379,04 

Bank                             : Banco Internacional S.A. 
To expire                      : US$ 108.360,00 

Total debt up to March 2015 is US$ 1.622.102,18 

Credit history 

PF Group 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$ 2.742.176,19 in May, 2014 

Average amount of indebtedness registered by the subject, in the National Financial System: 
During 2012 was US$ 56.807,85 
During 2013 was US$ 941.882,31 
During 2014 was US$ 1.756.128,31 
During 2015 was US$ 1.429.209,41 

Income tax corresponding to the last years: 
Year 2013: US$ 157.055 
Year 2012: US$ 254.755 
Year 2011: US$ 239.702 
Year 2010: US$ 228.495 


FINANCIAL INFORMATION 


C O M P A R A T I V E  -  S U M M A R Y 

(Figures in US$ Dollars) 

                                                            30/09/2014        31/12/2013        31/12/2012 
CURRENT ASSETS                               7.824.080        10.816.936         8.358.886 
CURRENT LIABILITIES                           5.582.832         7.188.354         3.294.739 
WORKING CAPITAL                              2.241.248         3.628.582         5.064.147 
FIXED ASSETS                                    7.049.626         5.270.070         2.136.602 
OTHER ASSETS                                   4.031.334         4.031.334         4.031.334 
LONG TERM LIABILITIES            6.617.560         6.903.356         6.216.277 
NET WORTH                                         6.704.648         6.026.630         5.015.806 
OPERATING INCOMES                         9.683.338        12.406.171        12.281.188 
CURRENT PROFIT(LOSS)                      682.394         1.010.824         1.206.401 


                                                B A L A N C E  S H E E T

 

                                INDIVIDUAL FISCAL YEAR SUMMARIZED 

ASSETS                                              30/09/2014        31/12/2013 
Cash                                                     374.609            2.466.572 
Sundry Debtors                                                 2.231.670         2.397.970 
Inventory                                               4.388.146         5.507.923 
Other Current Assets                                829.655           444.471 
CURRENT ASSETS                                 7.824.080        10.816.936 

Net Fixed Asset                                                7.049.626         5.270.070 
FIXED ASSETS                                       7.049.626         5.270.070 

Other                                                    4.031.334         4.031.334 
OTHER ASSETS                                      4.031.334         4.031.334 

TOTAL ASSETS                                       18.905.040        20.118.340 

LIABILITIES                                                     30/09/2014        31/12/2013 
Accounts Payable                                    1.926.763         1.516.674 
Notes Payable                                                  2.808.140         3.189.646 
Other Current Liabilities                           847.929           2.482.034 
CURRENT LIABILITIES                          5.582.832         7.188.354 

Notes Payable                                                  5.558.790         5.927.637 
Other Long Term Liabilities                      1.058.770         975.719 
LONG TERM LIABILITIES                      6.617.560         6.903.356 

Capital & Reserves                                   2.900.000         2.900.000 
Other Reserves                                         711.717                     610.635 
Accumulated Profits                                  2.410.537         1.505.171 
Current Profit (Losses)                              682.394                     1.010.824 
NET WORTH                                            6.704.648         6.026.630 

TOTAL LIABILITIES                                18.905.040        20.118.340 

STATEMENTS OF RESULTS                   30/09/2014        31/12/2013 
Operating  Income                                    9.683.338          12.406.171 
Operating Cost                                                  -7.069.248         -8.907.206 
OPERATING MARGIN                             2.614.090          3.498.965 

Administration & Sales Expenses             -1.529.214         -1.752.459 
OPERATING RESULT                               1.084.876         1.746.506 

Other non Operating Incomes                       83.946              0 
Other non Operating Expenses                    -486.428          -372.531 
NON OPERATING RESULT                         402.482          -372.531 

Result Before Income Tax                            682.394         1.373.975 
Taxes and Employees Participation                0                 -363.151 
NET PROFIT(LOSS)                                       682.394         1.010.824 

CURRENT PROFIT(LOSS)                            682.394          1.010.824 


                                                     ECONOMIC - FINANCIAL RATIOS 

                                                                       30/09/2014     31/12/2013        Average 

Working Capital                         ( US$ )             2.241.248      3.628.582      2.934.915 
Current Liquidity                          (Times)                       1,40               1,50              1,45 
Acid Test                                  (Times)           0,62               0,74              0,68 
Collection Period Days                ( Days)          62,23             69,58            65,90 
Accounts Receivable Turnover   (Times)             4,34               5,17              4,76 
Inventory Turnover                     (Times)             1,61              1,62               1,62 
Current Indebtedness                 (Times)             0,83              1,19               1,01 
Total Indebtedness                    (Times)             1,82              2,34               2,08 
Solvency                                  (Times)             1,55              1,43              1,49 
Assets Tying Up                                    (  %  )              37,29           26,20             31,75 
Profitability Over Sales              (  %  )               7,05              8,15               7,60 
Profitability Over Assets            (  %  )              3,61              5,02               4,32 
Profitability Over Net Worth       (  %  )               10,18            16,77            13,48 


BANKS 

 

The main banks are: 

-  Banco de Guayaquil S.A. ACCT # 000580781-6 
-  Banco De La Produccion S.A. ACCT # 02-00515651-1 
-  Banco Del Pacifico S.A. ACCT # 203330-5 
-  Banco Internacional S.A. 



 

OPERATIONS


Line of Business : Automotive sealants, master batchs, automotive carpets, technic plastics production and marketing.

Registered line of business in the Internal Revenue   Service (SRI) is: MANUFACTURE AND MARKETING OF CHEMICALS, PLASTICS, TEXTILES AND OTHERS.

Social objective registered at the Superintendence of Companies is: import, export, manufacture, purchasse, sale, and distribution of mall kinds of chemicals, plastics,  and others, both for industry in general and for direct consumption. 

Classification according to commercial activity: 

Sic: 2891-0000 Adhesives and sealants 
            -0200 Adhesives 
            -0100 Sealants 
Sic: 2899-0000 Chemical preparations 

Commercializes: 

- Celcon 
- Polylac 
- Wonderlite 
- Porene 
- Nylosoft 
- Grilon 
- Grivory 
- Makrolon 

- Softylon 
- Togoplast 
- Togotec 
- Polymelt 
- Tecnopol 
- Secaplast 

Sales 

Sales are steady throughout the year 

National sales territory 

Customers 

Main customers are: Line of business' distributors.  car industry, 

The 4 most important customers are: 

Omnibus Bb Transportes S.A.,  Manufacturas Armadurias Y Repuestos Ecuatorianos 
S.A. Maresa,  Aymesa S.A.,  Plasticos Ecuatorianos S.A. 

Purchases 

Domestic and international purchases 

Imports from United States, Germany, Belgium, Switzerland, Colombia, Peru, 
Taiwan, China. 

Main suppliers

- Brenntag Ecuador S.A. 
- Cevallos Calisto C. Ltda. 
- Comercial Treones S.A. 
- Disan Ecuador S.A. 
- Fabridor Fabricato Del Ecuador S.A. 
- Ingamp S.A. 
- Lanafit SA 
- Merck C.A 
- Minerva S.A. 
- Montgar C.A. 
- Nutec Representaciones S.A. 
- Pasamaneria S.A. 
- Peña Herrera Leopoldo Victor Manuel 
- Quifatex S.A. 
- Quimica Comercial Quimicial C. Ltda. 
- Resiquim S. A. 
- Solvesa Ecuador S.A. 
- Textiles Texsa S.A. 

Employees: 116 employees 

Location 

-  Administrative offices and factory are located at Calle De las Avellanas 
   E1-101 y Av. Panamericana Norte, Sector Parque de los Recuerdos N66A Quito 
   Pichincha, Ecuador 

Branches

-  Interestatal 35 Via Pifo-Colibri Km. 16 1/2 s/n Quito Pichincha Ecuador 
-  Km. 11.5 via a Daule Guayaquil Guayas Ecuador 


RELATED COMPANIES


Subject is related to the following companies: 

-  Afgo Management S.A. T A X : 1792357853001 
-  Ingamp S.A. T A X : 1791279921001 
-  Poxicoat S.A. T A X : 1792098882001 


INSURANCES


Insurance Company: 

-Seguros Equinoccial S. A. 

Risks            : Total cover. 
Objetive         : All assets. 


ADMINISTRATION 


General Manager          : Mauricio Friedman Offermann TAX:1703935807001 
President                      : Abraham Friedman Pastenak TAX:1702389881 
Accountant                   : Jessica Freire 
General Manager          : Toya Vivanco 
Assistant 
Deparment of Payroll     : Jackeline Andrade 


CURRICULUM 


Mauricio Friedman Offermann 

T A X               : 1703935807001 
Civil status        : Married 
Birth date          : 05/10/1973 Quito Pichincha-Ecuador 
Position            : General Manager 
Mercantile Register : Number 5554 of 19/04/2013 
Simultaneously      : Legally registered in the Ecuadorian 
                      Internal Revenue Service (SRI) to engage in business as 
                      individual since February 5th.2001.  His registered 
                      economic activity is: other activities: Vehicle parks, 
                      shopping assistants, astrology and spiritism, shoe shiners, porters, luggage, etc. No 
                      registered trade name. 

Abraham Friedman Pastenak 

T A X               : 1702389881 
Civil status        : Married 
Birth date          : 09/03/1947 -Ecuador 
Position            : President 
Mercantile Register : Number 5555 of 19/04/2013 
Simultaneously      : Legally registered in the Ecuadorian Internal Revenue 
                      Service (SRI) to engage in business as individual since 
                      January 28th,2009.  Registered economic activity is: 
                      Professional services.  No registered commercial name. 


LEGAL INFORMATION


Legal Structure              : Stock Company (Ecuador) 
Constitution date           :  29/11/1988 
Authorization                 : Resolution Nº 1870 
Notary                          : N° 1, Quito Pichincha 
Term of duration            : 71 Year, ended on 01/07/2059 
Legal Address               : Quito - Ecuador 
Published in                  : Official Gazette dated 03/12/1988 

Current Subscribed Capital: US$ 3.800.000.-Divided to 3.800.000.- common shares 
                            unique series amounting US$ 1.- 
Subscribed Initial Capital: US$ 80.- 
Paid-in Initial Capital: US$ 20.- 

Shareholders : 

-  60,83% 1702389881 Abraham Friedman Pastenak 
-   8,18% Gabriale Amtonire Offermann Koch 
-   6,79% 1703935807001 Mauricio Friedman Offermann 
-   1,90% Yoceli Yamilca Valecillos Asuaje 
-   0,40% Patricio Daniel Friedman Offerman 
-   0,18% Ingrid Ortega Blanco 
-   0,17% Hector Fernando Chavez Cevallos 
-   0,16% Marco Morejon Hernandez 

Legal representation is held by General Manager. 

Legal changes 

By Resolution Nº 2333 on 26/05/2003, notary N° 18, Quito Pichincha, published in 
the Official Gazette dated 07/07/2003, capital was increased: by USD. 80.000 in 
National Investment. 

By Resolution Nº 1220 on 24/03/2009, notary N° 1, Quito Pichincha, published in 
the Official Gazette dated 01/07/2009, taking over was carried out According to 
Resolution Nº 2333 on 26/05/2003 in Notary No. 18 in Quito - Pichincha an 
increase in social capital by  USD. 80.000 in National Investmen was published 
in the Oficial Record on 07/07/2003.

According to Resolution Nº 2617 on 12/06/2006 in Notary No.1 in Quito - 
Pichincha an increase in social capital by 150.000  in National Investment was 
publishen in the Oficial Record on 22/08/2006.

According to Resolution Nº 1220 on 24/03/2009 in Notary No. 1 in Quito 
Pichincha, published in the Official Journal on 01/07/2009, Secapol S.A.  merged 
companies Tecnopolimeros S.A., EPG Engineering Polimers Group S.A., Micropol 
S.A., Tepol S.A., Bonditex S.A., Kiipis S.A. and Alquimiaserad S.A declaring the 
dissolution without liquidation of the acquired companies.

Additionally trade name changed into the present PF Group S.A. extending its 
life period and increased capital by USD 585.000,00. 

By Resolution Nº 2473 on 08/06/2011, notary N° 1, Quito Pichincha, published in 
the Official Gazette dated 22/06/2011, last capital increase was performed by 
US$ 300.000,00 

By Resolution Nº 6585 on 18/12/2012, published in the Official Gazette dated 
18/12/2012, capital was increased: By US$ 400.000 

By Resolution Nº 3954 on 05/08/2013, notary N° 40, Quito Pichincha, published in 
the Official Gazette dated 16/08/2013, capital was increased: By US$ 800.000,00 

By Resolution Nº 0 on 13/10/2014, notary N° 40, Quito Pichincha, published in 
the Official Gazette dated 17/09/2014, capital was increased: By US$ 900.000. 

By resolution Nº Q.IMV.2013.2025 on April 19th, 2013, the Superintendency of 
Companies approved the registration of this Company in the Stock Exchange. 
Currently it holds issued values for US$ 5.000.000 


INFORMATION SOURCES 


Miss. Jackeline Andrade, Deparment of Payroll, confirmed just 
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 

Macroeconomic Information

Interest Rate for the week of                              05/04/2015 - 11/04/2015

Ref. Active Rate for Operations              ( % )    8,21

Ref. Passive Rate for Operations           ( % )     4,98

Basic Rate of Central Bank                     ( % )    0,20

Legal                                                                ( % )     8,21

Maximum conventional                                       ( % )    9,33


Inflation Ratio                          

Yearly Inflation                          ( % )     3,76 Mar/2015

Monthly Inflation                        ( % )     0,41 Mar/2015

Accumulated                             ( % )     1,63 Mar/201


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.52

UK Pound

1

Rs.95.96

Euro

1

Rs.70.54

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

ANK

 


 

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%)

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.