MIRA INFORM REPORT

 

 

Report No. :

347745

Report Date :

07.11.2015

 

IDENTIFICATION DETAILS

 

Name :

SACOS DURAN REYSAC S.A. (REYSAC S.A.) 

 

 

Registered Office :

Via a La Costa a la altura del Km 19.5 , Av. Principal S/N, a 200m de, Electroquil. Edificio Planta Industrial – Guayaquil, Guayas

 

 

Country :

Ecuador

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

04.04.1990

 

 

Legal Form :

Stock Company (Ecuador) 

 

 

Line of Business :

Subject is manufacture and sale of thermo-laminated sacks made with polypropylene for diverse uses 

 

 

No. of Employee :

223 

 

 

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 :

Slow but correct

 

 

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)

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 25% 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 2014, oil output increased slightly and production is expected to remain steady in 2015, 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. In March, 2015 Ecuador imposed tariff surcharges from 5%-45% on an estimated 32% of imports for 15 months.

 

Source : CIA

 

 

Company name and address

 

SACOS DURAN REYSAC S.A. ( REYSAC S.A. ) 

Via a La Costa a la altura del Km 19.5 , Av. Principal S/N, a 200m de, Electroquil. Edificio Planta Industrial – Guayaquil, Guayas, ECUADOR 

Telephone         : 593-4-6023800, 593-4-2046078 

E_Mail              : rochidg@reysac.com;  rreyes@reysac.com;  contabilidad@reysac.com 
Web Site           : http://www.reysac.com/ 

 

SUMMARY 


Started                         : 1990 
Total Employees            : 223 
Payments                                 : Prompt 
Financial Sit.                 : Acceptable 
Economic Sit.                           : Acceptable 
Sales                            : US$     17.561.325.- 
Net worth                      : US$      4.940.963.- 
Current profit                 : US$        -54.292.- 
Subscribed Capital         : US$      1.900.000.- 
Authorized Capital          : US$      3.800.000.- 

Sic(s) : 2393 - 2673 

Line of Business: Manufacture and sale of thermo-laminated sacks made with polypropylene for diverse uses 

Financial indicators 

According to last financial statement, subject shows an acceptable financial 
situation, as indicated in: 

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

Economic situation is acceptable, as reflected in: 

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

** Negative Profitability Over Sales Ratio 
** Negative Profitability Over Assets Ratio 
** Negative Profitability Over Net Worth Ratio 

 

COMMERCIAL INFORMATION 


Commercial Bulletin      : As at 30/09/2015 subject does not register protested checks in the national central of risk 


TRADE REFERENCES

 

(04/11/2015) 

Trade references are supplied as follows: 

Detail of References 

Old                   : 6 years 
Last purchase  : 07-2015 
Terms               : 30 days 
Payment           : Prompt 
Notes               : checks 
Credit               : (US$) 6.000 
Owes                : Does not Register 
Due                  : Does not Register 
Paying Comments: Good 

Detail of Former Trade References 
-------------------------------------------------------------------------------- 
           Last                                           Credit            Owes
 
Old       
 Purch. Payment.    Notes                     (US$)        (US$) 
--------------------------------------------------------------------------------
 
1 year     02-14  Cash        bank transfer                 Open            None
 
8 years    03-14  Prompt      checks                        Open            None
 
7 years    03-13  Prompt      checks                        Open               -
 
13 years   11-11  Prompt      checks                     150.000            None
 
10 years   11-11  Prompt      checks                        Open            None
 
8 years    05-11  Prompt      checks                      40.000            None
 
5 years    04-11  Prompt      checks                       1.000            None
 
Since 2006 09-10  Prompt      checks                       2.000            None
 
3 years    09-10  Prompt      checks                       1.500            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 HAS overdue obligations at IESS (Ecuadorian Institute of Social Security), to November, 2015, for US$ 146,00

Detail of Bank References

Below are the top five financial institutions where this company has current 
credits in the National Financial System.

Bank                              : Banco Bolivariano C.A. 
To expire                      : US$ 1.764.163,48 

Bank                             : Banco de Guayaquil S.A. 
To expire                      : US$ 390.327,23 

Bank                             : Banco Del Pacifico S.A. 
To expire                      : US$ 6.153,72 

Bank                             : Banco Pichincha C.A. 
To expire                      : US$ 88.550,41 

Bank                             : Corporacion Financiera Nacional 
To expire                      : US$ 1.084.500,00

Total debt to September 2015 is US$ 3.508.814,27

Sacos Duran Reysac S.A, had a credit with 2 months of overdue term for US$  128.816,50, registered at the Superintendencyof Companies in February 2015. 

Average amount of indebtedness registered by the subject, in the National Financial System: 
During 2013 was US$ 5.534.625,83 
During 2014 was US$ 4.133.609,38 
During 2015 was US$ 3.657.017,01 

 

Indebtedness with 2 months past due. 
Date                                                     amount in US$ 
February, 2015                          128.816,50 

Income tax corresponding to the last years: 
Year 2014: US$ 91.182 
Year 2013: US$ 165.718 
Year 2012: US$ 221.904 
Year 2011: US$ 175.424 
Year 2010: US$ 0 
Year 2009: US$ 257.363 


FINANCIAL INFORMATION
 

 C O M P A R A T I V E  -  S U M M A R Y ( Figures in US$ Dollars ) 

                                  31/12/2014        31/12/2013        31/12/2012 
CURRENT ASSETS                     9.804.675         9.776.073         7.259.188 
CURRENT LIABILITIES                7.892.045         6.629.819         6.234.273 
WORKING CAPITAL                    1.912.630         3.146.254         1.024.915 
FIXED ASSETS                       7.330.827         7.532.978         8.107.301 
OTHER ASSETS                       473.773           478.774           228.774 
LONG TERM LIABILITIES              4.776.267         6.134.360         3.944.538 
NET WORTH                          4.940.963         5.023.646         5.416.452 
OPERATING INCOMES                  17.561.325        15.901.676        14.270.501 
CURRENT PROFIT(LOSS)                 -54.292           272.732           342.724 

B A L A N C E  S H E E T 

INDIVIDUAL FISCAL YEAR SUMMARIZED 

ASSETS                                                           31/12/2014                    31/12/2013 
Cash                                                                             0                                  663.918 
Sundry Debtors                                                             4.650.711                      4.311.864 
Inventory                                                           3.854.943                      3.743.590 
Other Current Assets                                         1.299.021                      1.056.701 
CURRENT ASSETS                                          9.804.675                      9.776.073 

Net Fixed Asset                                                            7.330.827                      7.532.978 
FIXED ASSETS                                                7.330.827                      7.532.978 

Other                                                                473.773                         478.774 
OTHER ASSETS                                               473.773                         478.774 

TOTAL ASSETS                                               17.609.275                    17.787.825 

LIABILITIES                                                                 31/12/2014                    31/12/2013 
Accounts Payable                                             5.310.588                      4.734.697 
Notes Payable                                                              2.296.490                      1.393.953 
Other Current Liabilities                                      284.967                        501.169 
CURRENT LIABILITIES                                     7.892.045                      6.629.819 

Notes Payable                                                              3.692.043                      5.004.316 
Other Long Term Liabilities                                 1.084.224                      1.130.044 
LONG TERM LIABILITIES                                4.776.267                      6.134.360 

Capital & Reserves                                            1.500.000                      1.500.000 
Other Reserves                                                 245.673                         245.673 
Accumulated Profits                                          3.249.582                      3.005.241 
Current Profit (Losses)                                       -54.292                         272.732 
NET WORTH                                                                 4.940.963                     5.023.646 

TOTAL LIABILITIES                                         17.609.275                    17.787.825 

STATEMENTS OF RESULTS                               31/12/2014                 31/12/2013 
Operating  Income                                                         17.561.325                    15.901.676 
Operating Cost                                                  -14.034.968                   -12.019.644 
OPERATING MARGIN                                       3.526.357                      3.882.032 

Administration & Sales Expenses                       -3.000.626                     -2.992.162 
OPERATING RESULT                                                   525.731                         889.870 

Other non Operating Incomes                            119.316                         64.336 
Other non Operating Expenses                                      -584.049                        -566.780 
NON OPERATING RESULT                                 -464.733                                 -502.444 

Result Before Income Tax                                            60.998                          387.426 
Taxes and Employees Participation                     -115.290                                  -114.694 
NET PROFIT(LOSS)                                          -54.292                         272.732 

CURRENT PROFIT(LOSS)                                   -54.292                                   272.732 

ECONOMIC - FINANCIAL RATIOS 

                                                           31/12/2014     31/12/2013   Average 
Working Capital           ( US$ )                1.912.630      3.146.254      2.529.442 
Current Liquidity           (Times)              1,24                  1,47           1,36 
Acid Test                   (Times)                0,75                  0,91           0,83 
Collection Period Days      ( Days)                     95,34                97,62          96,48 
Accounts Receivable Turnover(Times)     3,78                 3,69           3,74 
Inventory Turnover          (Times)           3,64                  3,21           3,43 
Current Indebtedness        (Times)           1,60                 1,32           1,46 
Total Indebtedness          (Times)                       2,56                  2,54           2,55 
Solvency                    (Times)                1,39                  1,39           1,39 
Assets Tying Up             (  %  )              41,63                42,35          41,99 
Profitability Over Sales    (  %  )             -0,31                 1,72           0,71 
Profitability Over Assets   (  %  )            -0,31                1,53           0,61 
Profitability Over Net Worth(  %  )                      -1,10                 5,43           2,17 

BANKS 


Subject operates with the following financial institutions 

 Banco Bolivariano C.A. ACCT # 90627-2 
 Banco de Guayaquil S.A. 
-  Banco De La Produccion S.A. ACCT # 2006-01258-9 
-  Banco Del Pacifico S.A. 
 Banco Pichincha C.A. 
 Corporacion Financiera Nacional 


OPERATIONS

(04/11/2015) 

Line of Business : Manufacture and sale of thermo-laminated sacks made with polypropylene for diverse uses according to the specifications of customers

They are used to pack diverse products: food , poultry, aquaculture, construction, agricultural, etc.

additionally, it manufactures multilayer sacks made with kraft paper used in the sugar packing

The line of business registered at the Internal Revenue Services(IRS) is: ACTIVITIES OF MANUFACTURE OF PLASTIC PRODUCTS.
                                                                              
 Social objective registered at the Superintendency of Companies is: Manufacture, commercialization, and distribution of paper and cardboard. 

Classification according to commercial activity: 

Sic: 2393-0000 Textile bags 
         -0100 Canvas bags 
Sic: 2673-0000 Bags, plastic, laminated and coated 

Sales 

Sales are steady throughout the year 

National and international sales territory 

Exports to Chile. 

Customers 

Main customers are: Foreign companies.  companies in general, 

Purchases 

Domestic and international purchases 

Imports from Argentina, United States, Korea, Brazil, Taiwan, India. Venezuela 

National suppliers (04/11/2015) 

- Explast, Extrusiones Plasticas S.A. 
- Hivimar S.A 
- Indura Ecuador S.A. 
- L. Henriques & Cia. S.A. 
- Migplas S.A. 
- Milanplastic S.A. 
- Nutec Representaciones S.A. 
- Provelan Proveedora Industrial Latinoamericana Cia. Ltda 
- Quimica Comercial Quimicial C Ltda 
- Quimicos Paper Plus S.A. 

Foreign suppliers (04/11/2015) 

- Montachem International (Colombia) 
- Montachem International (United States) 
- Propilco (Colombia) 

Employees: 223 employees 

Location 

-  Its production plant is located at Via a La Costa a la altura del Km 19.5,  Av. Principal S/N, a 200m De Electroquil. Edificio Planta Industrial Guayaquil Guayas, Ecuador 

Branches (04/11/2015) 

-  Vía Samborondon Km. 2.5, Edificio Samborondon Plaza, Piso 1 Oficina 111 Samborondón Guayas Ecuador 


RELATED COMPANIES

 

(04/11/2015) 

Subject is related with the following company: 

-  Inmobiliaria Destino S.A. Indestisa T A X : 0992182407001 

 


INSURANCES

 

(04/11/2015) 

Insurance Company: 

-La Union Compañia Nacional de Seguros S.A. 


ADMINISTRATION


General Manager          : Rosalia Duran Guzman TAX:0910303478 
President                      : Carlos Xavier Duran Dyer TAX:0904171055001 
Production Manager       : Carlos Quinde 
Accountant                   : Roxana Reyes 
Department of Imports   : Adriana Arraiga 
Department Of Human   : Fernanda Bermeo 
Resorces 
Secretary                      : Cinthia Rios 

CURRICULUM 

Rosalia Duran Guzman 

T A X               : 0910303478 
Civil status        : Single 
Birth date          : 12/09/1981 -Ecuador 
Position            : General Manager 
Mercantile Register : Number 3195 of 28/11/2013 

Carlos Xavier Duran Dyer 

T A X               : 0904171055001 
Civil status        : Married 
Birth date          : 28/02/1951 -Ecuador 
Titled as           : Engineer 
Position            : President 
Mercantile Register : Number 20277 of 15/11/2011 
Simultaneously      : He is legally registered at the IRS to perform personal business since  05-02-2014. His registered business activity is: Advisory and Management.  He does not have a trade name 


LEGAL INFORMATION

(04/11/2015) 

Legal Structure              : Stock Company (Ecuador) 
Constitution date           :  04/04/1990 
Authorization                 : Resolution Nº 58109 
Notary                          : N° 24, Guayaquil Guayas 
Term of duration            : 50 Year, ended on 04/04/2040 
Legal Address               : Guayaquil - Ecuador 
Published in                  : Official Gazette dated 28/04/1990 

Current Subscribed Capital: US$ 1.900.000.-Divided to 1.900.000.- common shares unique series amounting US$ 1.- 
Authorized Current Capital: US$ 3.800.000.- 
Subscribed Initial Capital: US$ 80.- 
Paid-in Initial Capital: US$ 20.- 

Shareholders : 2 

-  99,99% 0992182407001 Inmobiliaria Destino S.A. Indestisa 
-   0,01% Xavier Enrique Duran Guzman 

Legal representation is held by General Manager, President.. 

Legal changes 

By Resolution Nº 4579 on 21/08/1996, notary N° 29, Guayaquil Guayas, published in the Official Gazette dated 27/11/1996, corporate name was modified: from Nexcorp S.A. to the current name: Sacos Duran Reysac S.A. 

By Resolution Nº 0 on 05/12/1997, notary N° 21, Guayaquil Guayas, published in the Official Gazette dated 05/12/1997, capital was increased: by USD 20.000,00. 

By Resolution Nº 5403 on 17/08/2007, notary N° 11, Guayaquil Guayas, published in the Official Gazette dated 13/09/2007, capital was increased: by US$ 431.920,00 of National Investment 

By Resolution Nº 8387 on 02/12/2010, notary N° 11, Guayaquil Guayas, published in the Official Gazette dated 13/12/2010, capital was increased: by US$. 
1.000.000,00 

By Resolution Nº 0 on 12/08/2015, published in the Official Gazette dated 12/08/2015, capital was increased: by US$. 400.000,00 

This company was established based on the personal business of Mr. Jorge Duran Wauge open since 1942 with the name of "Jorge Duran Wauge - Fabrica de Sacos", the raw material used initially was sisal and jute, imported from India.

The Superintendency of Companies has approved the registration of the holder on the Stock Exchange. Currently maintains a current issue under the name of PRIMERA TITULARIZACION DE FLUJOS REYSAC, approved by Resolution No. 
SC-IMV-Dayr-DJMV-G-13-3926 of 08/07/2013 for a total amount of US $. 
3,500,000.00. 


PUBLICATIONS

(04/11/2015) 

Information regarding subject is supplied as follows 

 

INFORMATION SOURCES 

Miss. Cinthia Rios, Secretary,  confirmed 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 

RISK LEVEL 

Credit risk assessment is ordered as follows: 1 Minimum Risk, 2 Low Risk, 3 Middle Risk, 4 Middle High Risk, 5 Significant Risk, 6 High Risk. 


CREDIT RECOMMENDATION
 

Credit recommendation amounts are assigned according to criteria usually used in the commercial credit evaluation. 

The amounts are based on the assignment of risk percentages to the following indicators: Trade references, number of employees, legal structures, data base 
of protested bills, operations, insurances, variation of net profit, net worth, working capital and liquidity. 


INTERPRETATION OF PAYMENT SCORING

The Scoring is arranged as follows: 0 to 40 Delays, 41 to 60 Slow, 61 to 80 Moderate, 81 to 100 Prompt 

Macroeconomic Information


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

Basic Rate of Central Bank                    ( % ) 0,20

Legal                                                    ( % ) 9,11

Maximum conventional                          ( % ) 9,33


Inflation Ratio                          

Yearly Inflation                                      ( % ) 3,78 Sep/2015

Monthly Inflation                                    ( % ) 0,26 Sep/2015

Accumulated                                         ( % ) 3,26 Sep/2015

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.79

UK Pound

1

Rs.99.95

Euro

1

Rs.71.55

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.