MIRA INFORM REPORT

 

 

Report No. :

324105

Report Date :

26.05.2015

           

IDENTIFICATION DETAILS

 

Name :

TANAC S/A

 

 

Registered Office :

Rua Torbjorn Weilbull,199 - Bairro Tanac, 95780-000 - Montenegro/RS

 

 

Country :

Brazil

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

26.08.1948

 

 

Legal Form :

Privately Held Corporation

 

 

Line of Business :

Manufacture and trade of wood and wooden products and vegetable essences for industrial usage

 

 

No. of Employees :

407 Employees

 

 

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)

Brazil

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 


 

BRAZIL - ECONOMIC OVERVIEW

 

Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, and a rapidly expanding middle class, Brazil's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. Since 2008, Brazil became a net external creditor and all three of the major ratings agencies awarded investment grade status to its debt. After strong growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in 2008. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. In 2010, consumer and investor confidence revived and GDP growth reached 7.5%, the highest growth rate in the past 25 years. Unemployment is at historic lows and Brazil's traditionally high level of income inequality has declined for each of the last 15 years. Rising inflation led the authorities to take measures to cool the economy in 2011; these actions and the deteriorating international economic situation slowed growth in 2011-14. Brazil’s fiscal and current account balances have eroded during the past three years as the government attempted to boost economic growth through targeted tax cuts for industry and incentives to spur household consumption. President Dilma ROUSSEFF has indicated that her government in her second term will pursue more austere fiscal policies to reduce these imbalances and preserve the country’s credit rating.

 

 

Source : CIA

 

Company name and address

 

TANAC S/A

 

 

ADDRESSES

 

MAIN ADDRESS:

RUA TORBJORN WEILBULL,199 - BAIRRO TANAC

ZIP CODE/CITY:

95780-000 - MONTENEGRO/RS

 

 

PHONE:

51 3632-4055

FAX:

51 3632-2499

E-MAIL:

aaheinen@tanac.com.br

WEB SITE:

www.tanac.com.br

 

BRANCHES:

 

 

 

ADDRESS:

RUA B, S/Nº,0 - DISTRITO INDUSTRIAL

ZIP CODE/CITY:

96200-970 RIO GRANDE/RS

PHONE:

53 3234-1360

 

 

LEGAL DATA

 

MAIN ACTIVITIES:

 

MANUFACTURE AND TRADE OF WOOD AND WOODEN PRODUCTS AND VEGETABLE ESSENCES FOR INDUSTRIAL USAGE.

 

LEGAL FORM:

PRIVATELY HELD CORPORATION

 

 

INCORPORATION DATE:

26/08/1948

REGISTER DATE:

26/08/1948

BALANCE SHEET FILING DATE:

31/12

TAX CONTRIBUTOR NUMBER(CNPJ):

91.359.711/0001-02

STATE REGISTER:

078/0007484

 

 

SHARE CAPITAL:

R$ 102.000.000,00

 

BOARD OF DIRECTORS:

 

 

 

OTÁVIO GUIMARÃES DECUSATI

SUPERVISING DIRECTOR

DIORGE OTAVIO PAGANI

ADM./FINANCIAL DIRECTOR



 

AUTHORIZED USE OF SIGNATURE

 

THE DIRECTORS ARE AUTHORIZED TO SIGN ON BEHALF OF THE COMPANY.

 

SHAREHOLDERS / PARTNERS:

 

 

 

CIA AGRICOLA SÃO BENTO DA ESMERALDA

99,99%

OTHER

0,01%

 

 

AFFILIATES / SUBSIDIARIES:

 

 

 

TANAGRO S/A

100%

 

 

COMPANY'S BACKGROUND

 

TANAC'S VEGETABLE TANNING EXTRACTS HAVE BEEN USED BY THE LEATHER INDUSTRY IN VARIOUS STAGES OF THE PRODUCTION PROCESS SINCE 1948 AND, TODAY, WE OUTPUT APPROXIMATELY 30 THOUSAND TONS OF BLACK WATTLE EXTRACTS ANNUALLY.

 

FOUNDED IN 1948, AT THAT TIME A SMALL TANNIN FACTORY, TANAC PRODUCED 2,000 TONS OF EXTRACTS A YEAR, EMPLOYING 60 COLLABORATORS. AFTER 59 YEARS, IT HAS BECOME THE GREATEST AND MOST MODERN UNIT OF PRODUCTION OF TANNINS AND ITS DERIVATIVES ALONE IN THE WORLD, WITH A PRODUCTION CAPACITY OF 30,000 TON/YEAR, AT THE MOMENT PROVIDING 330 DIRECT JOBS AT THE UNIT LOCATED IN MONTENEGRO, RIO GRANDE DO SUL.

 

TANAC IS THE GREATEST INDIVIDUAL BLACK ACACIA PRODUCER IN THE WORLD, WITH MORE THAN 27,500 HECTARES OF ITS OWN FORESTS. IN THE ACTIVITIES INVOLVING FOREST MANAGEMENT THERE ARE ABOUT 650 EMPLOYEES, DEVELOPING THEIR ACTIVITIES ACCORDING TO THE PRINCIPLES AND CRITERIA OF FSC-FOREST STEWARDSHIP COUNCIL.

 

1995 THE COMPANY DIVERSIFIED ITS ACTIVITIES, INAUGURATING A BLACK ACACIA WOODCHIP MILL UNIT IN THE CITY OF RIO GRANDE, IN THE EXTREME SOUTH OF BRAZIL. AROUND 750,000 TONS OF CHIPS ARE EXPORTED, ANUALLY, TO THE ASIAN MARKET.

 

IN 1996 THE COMPANY AWARDED THE NBR ISO 9001.

 

IN 2000 THE COMPANY AWARDED THE NBR ISO 14001.

 

FURTHER DETAILS ARE SO FAR NOT KNOWN.

 

PUBLIC INFORMATION:

 

NO DETRIMENTAL FILES WERE FOUND.

(RESEARCH DATE: 24/05/2015)

 


FINANCIAL INFORMATION

 

GENERAL BALANCE SHEETS AS OF 31/12/2014, 31/12/2013 AND 31/12/2012.

( FIGURES ARE IN THOUSANDS OF REAIS ).

 

ASSETS

 

 

 

CURRENT:

31/12/2014

31/12/2013

31/12/2012

 

 

 

 

CASH AND BANKS

74.373

23.009

23.066

CLIENTS

22.542

19.812

19.387

INVENTORY

32.551

32.957

30.340

RECOVERABLE TAXES

5.683

3.196

998

ACCOUNTS RECEIVABLE

1.927

1.289

2.165

PRE PAID EXPENSES

950

651

329

 

----------------

----------------

----------------

TOTAL CURRENT ASSETS

138.026

80.914

76.285

 

LONG-TERM RECEIVABLES:

 

 

 

 

 

 

 

JUDICIAL DEPOSITS

1.038

1.057

1.133

RECOVERABLE TAXES

591

822

43

PRE PAID EXPENSES

1.352

 

2.538

 

----------------

----------------

----------------

TOTAL LONG-TERM RECEIVABLES

2.981

1.879

3.714

 

FIXED ASSETS:

 

 

 

 

 

 

 

INVESTMENTS

164.950

163.942

154.346

FIXED ASSETS

60.619

45.288

41.934

INTANGIBLE

172

197

229

 

----------------

----------------

----------------

TOTAL FIXED ASSETS

225.741

209.427

196.509

 

================

================

================

TOTAL ASSETS

366.748

292.220

276.508

 

LIABILITIES:

 

 

 

CURRENT:

31/12/2014

31/12/2013

31/12/2012

 

 

 

 

SUPPLIERS

8.341

5.916

5.806

LOANS AND FINANCING

44.843

25.895

20.550

LABOR OBLIGATIONS

5.357

6.380

6.157

TAXES & CONTRIBUTIONS

642

537

1.310

DIVIDENDS

612

857

1.224

OTHER DEBTS

1.886

1.160

1.717

BANKING DEBTS

1.636

1.133

162

 

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

63.317

41.878

36.926

 

LONG TERM LIABILITIES:

 

 

 

 

 

 

 

LOANS AND FINANCING

121.649

62.434

49.568

PROVISION FOR CONTINGENCIES

904

656

2.086

DEFERRED TAXES

5.788

7.506

9.698

 

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

128.341

70.596

61.352

 

NET EQUITY:

 

 

 

 

 

 

 

SHARE CAPITAL

102.000

102.000

102.000

PROFIT RESERVES

61.793

65.539

62.753

OTHER COMPREHENSIVE INCOME

11.297

12.207

13.477

 

----------------

----------------

----------------

TOTAL NET EQUITY

175.090

179.746

178.230

 

================

================

================

TOTAL LIABILITIES

366.748

292.220

276.508

 

PROFIT AND LOSS ACCOUNTS AS OF 31/12/2014, 31/12/2013 AND 31/12/2012.

( FIGURES ARE IN THOUSANDS OF REAIS ).

 

 

31/12/2014

31/12/2013

31/12/2012

 

 

 

 

NET SALES

213.169

203.042

230.765

(-) COST OF SOLD GOODS

151.780

129.132

144.635

 

----------------

----------------

----------------

GROSS PROFIT

61.389

73.910

86.130

OPERATING REVENUE (EXPENSE)

-47.517

-50.446

-47.775

FINANCIAL REVENUE(EXPENSE)

-11.392

-11.961

-10.404

 

----------------

----------------

----------------

OPERATIONAL PROFIT (LOSS)

2.480

11.503

27.951

CONTRIBUTION/INCOME TAX

1.548

-1.138

-6.274

 

----------------

----------------

----------------

NET PROFIT (LOSS)

4.028

10.365

21.677

 

RATIOS:

31/12/2014

31/12/2013

31/12/2012

 

QUICK RATIO

1,67

 

1,15

 

1,24

 

CURRENT RATIO

2,18

 

1,93

 

2,07

 

ACCOUNTS RECEIVABLE TURNOVER

9,46

TIMES

10,25

TIMES

11,90

TIMES

DAYS' SALES IN RECEIVABLES

38,07

DAYS

35,13

DAYS

30,24

DAYS

INVENTORY TURNOVER

4,66

TIMES

3,92

TIMES

4,77

TIMES

ACCOUNTS PAYABLE PERIOD

19,78

DAYS

16,49

DAYS

14,45

DAYS

RETURN ON ASSETS

,58

TIMES

,69

TIMES

,83

TIMES

SALES TURNOVER ON NET EQUITY

1,22

TIMES

1,13

TIMES

1,29

TIMES

NET WORTH TIE-UP

,35

 

,25

 

,24

 

INDEBTEDNESS

1,09

 

,63

 

,55

 

EQUITY RATIO

47,74

%

61,51

%

64,46

%

WORKING CAPITAL RATIO

117,99

%

93,21

%

106,59

%

GENERAL SOLVENCY

1,91

 

2,60

 

2,81

 

RETURN ON NET EQUITY

2,30

%

5,77

%

12,16

%

RETURN ON SALES (PROFIT MARGIN)

1,89

%

5,10

%

9,39

%

GROSS PROFIT MARGIN

28,80

%

36,40

%

37,32

%

OPERATIONAL RESULT

1,16

%

5,67

%

12,11

%

SALES TURNOVER ON LIABILITIES

3,37

TIMES

4,85

TIMES

6,25

TIMES

FOREIGN CURRENCY ON ASSETS

 

 

 

 

 

 

FOREIGN CURRENCY ON LIABILITIES

 

 

 

 

 

 

 

EXCHANGE RATE:

 

 

US$ 1,00 = R$ 2,65

 - OFFICIAL RATE ON 31/12/2014

US$ 1,00 = R$ 2,34

 - OFFICIAL RATE ON 31/12/2013

US$ 1,00 = R$ 2,04

 - OFFICIAL RATE ON 31/12/2012

US$ 1,00 = R$ 3,12

 - OFFICIAL RATE ON 25/05/2015

 

COMMENTS ON THE FINANCIAL INFORMATION:

 

FOLLOWS ATTACHED WORKSHEET WITH MAIN FINANCIAL RATIOS.

 

THE FIGURES AVAILABLE SHOW A NORMAL FINANCIAL STANDING. THE LEVEL OF INDEBTEDNESS IS SOMEHOW HIGH BUT IT IS NOTED GOOD LIQUIDITY RATIOS AND POSITIVE WORKING CAPITAL AMOUNT. IN ADDITION IT SHOWS GROWING SALES AND PROFITABILITY.

 

REAL ESTATE:

 

   OWNED PREMISES ARE VALUED AT R$ 31.989.000,00

 

VEHICLES:

 

   OWNED VEHICLES ARE VALUED AT R$ 2.897.000,00

 

MACHINES:

 

   OWNED MACHINES AND EQUIPMENTS ARE VALUED AT R$ 61.324.000,00

 

 

INSURANCE

 

THE SUBJECT IS SAID TO HOLD INSURANCE POLICIES BUT DETAILS WERE NOT DISCLOSED.

 

 

BANKING REFERENCES

 

 

 

CITY:

BANCO DO BRASIL S/A

 

MONTENEGRO/RS

 

REMARKS: IN BRAZIL THE BANKS ARE PROHIBITED BY LAW TO PROVIDE INFORMATION OR ANY KIND OF COMMENTS ABOUT THEIR CLIENTS. DUE TO THIS LAW PROHIBITION WE ARE UNABLE TO PROVIDE ANY BANKING DETAILS.

 

ACCORDING TO THE CENTRAL BANK OF BRAZIL OFFICIAL REPORT, THE COMPANY HAS NO RETURNED CHECKS UP TO DATE. (IN THE TERMS OF "CIRCULAR 1682 BRAZILIAN CENTRAL BANK"). DATE RESEARCHED MAY 24, 2015.

 

 

ACTIVITIES COMMENTS

 

 

MANUFACTURE AND TRADE OF TANNIN WOOD AND WOODCHIPS, VEGETABLE ESSENCES, AS WELL AS FOREST HANDLING FOR INDUSTRIAL USAGE.

 

 

IMPORT AND EXPORT:

 

   IMPORTS FROM:

NOT AVAILABLE.

 

   EXPORTS TO:

ASIA.

 

MAIN CLIENTS:

 

 

 

 

 

DOMESTIC CLIENTS:

 

 

NOT AVAILABLE.

 

 

 

STAFF:

 

THE COMPANY HAS: 407 EMPLOYEE(S)

 

 

CONCEPT AND FULFILMENT

 

THE SUBJECT IS AN OLD AND WELL-ESTABLISHED COMPANY. IT HAS A CLEAR TRADE HISTORY AND GOOD REPUTATION.

 

THE SUBJECT HAS TRADE RELATIONS WITH SEVERAL LOCAL SUPPLIERS AND OUR INVESTIGATION THROUGH OUTSIDE SOURCES HAS SHOWED THAT THE SUPPLIERS EXTEND CREDIT FACILITIES TO THE SUBJECT IN AMOUNTS AND TERMS ACCORDING TO ITS NEEDS.

 

MAIN SUPPLIERS:

 

 

 

 

 

DOMESTIC SUPPLIERS:

 

 

BARALDI MATERIAL DE CONSTRUÇÃO LTDA

 

 

DISTRIBUIDORA DE PRODUTOS DE PETROLEO IPIRANGA S/A

 

 

FERRAMENTAS GERAIS COMÉRCIO DE IMPORTAÇÃO S/A

 

 

SANDVIK DO BRASIL S/A IND E COMÉRCIO

 

 

 

PAYMENT HISTORY:

 

18 SUPPLIERS REPORTED PAYMENTS:

   TOTAL AMOUNT:  R$ 81.626,00

 

AMOUNT OF INVOICES PAID: 119

TOTAL OF PROMPT PAYMENTS: 96,1%

TOTAL OF DELAYED PAYMENTS: 3,9%

 

HIGHEST INVOICE: R$ 11.571,00

HIGHEST CREDIT: R$ 2.066,00

 

OUTSTANDING INVOICES DUE WITHIN THE NEXT 30 DAYS:

 

---------------------------

SUPPLIERS:

INVOICES:

TOTAL AMOUNT:

DUE WITHIN 30 DAYS

1

7

R$ 2.666,92

DUE WITHIN 60 DAYS

1

2

R$ 1.160,43

ALL

1

9

R$ 3.827,35

 

 

FINAL OPINION

 

THE SUBJECT IS A WELL-ESTABLISHED COMPANY IN BUSINESS SINCE 1948 AND UP TO DATE IT HAS A CLEAR TRADE HISTORY AND A GOOD PAYMENT BEHAVIOR.

 

BASED ON THE GENERAL INFORMATION AVAILABLE ITS IS BELIEVED THAT GOOD TRADE RELATIONS MAY BE ESTABLISHED. CREDIT FACILITIES MAY BE EXTENDED WITHIN TERMS AND AMOUNTS ADEQUATE TO THE COMPANY'S FINANCIAL STRENGTH.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.62

UK Pound

1

Rs.98.51

Euro

1

Rs.69.93

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

VNT

 

               

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.