MIRA INFORM REPORT

 

 

Report No. :

347744

Report Date :

16.11.2015

 

IDENTIFICATION DETAILS

 

Name :

SACOPLAST S.A.

 

 

Registered Office :

Via Daule, a la altura del Km 16.5,  frente a Pinturas Unidas, Parque Industrial
Pascuales, Parroquia Pascuales

 

 

Country :

Ecuador

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

16.07.1987

 

 

Legal Form :

Stock Company (Ecuador)

 

 

Line of Business :

Manufacture of polypropylene's plastic sacks.

 

 

No. of Employee :

143

 

 

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

SACOPLAST S.A.

Via Daule, a la altura del Km 16.5,  frente a Pinturas Unidas, Parque Industrial
Pascuales, Parroquia Pascuales - Guayaquil
Guayas
ECUADOR

Telephone         : 593-4-2162019, 593-4-2162017, 593-4-2162016
Fax                   : 593-4-5001555

E_Mail              : mcontabilidad@sacoplast.net;   compras@sacoplast.net,  aozeki@hotmail.com;  caja@sacoplast.net;  contraloria@sacoplast.net


SUMMARY


Started                           : 1987
Total Employees              : 143
Payments                       : Prompt
Financial Sit.                   : Good
Economic Sit.                             : Normal
Sales                              : US$      7.631.895.-
Net worth                        : US$      3.769.277.-
Current profit                   : US$        308.454.-
Subscribed Capital          : US$        112.400.-
Authorized Capital          : US$        224.800.-

Sic(s) : 2393 - 2673

Line of Business: Manufacture and sale of polypropylene sacks


CREDIT RECOMMENDATION

                                    Dollars
Conservative value        :         460.000
Liberal value                  :         520.000

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 good financial situation,
as indicated in:

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

Economic situation is normal, as reflected in:

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

** Low Profitability Over Sales Ratio
** Low Profitability Over Assets Ratio
** Normal 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

Consulted suppliers declined to submit references

Detail of Former Trade References
--------------------------------------------------------------------------------
           Last                                                                                      Credit                   Owes
Old        Purch.                         Payment.          Notes                         (US$)                              (US$)
--------------------------------------------------------------------------------
10 years    12-14            Prompt             bank transfer              200.000               None
8 years      12-14           Prompt             checks                         250.000             None
10 years    12-14            Prompt             checks                        Open                  None
10 years    11-10            Prompt             checks                        Open                  None
Since 2006 01-11           Prompt             checks                         500                    None
10 years     07-09           Prompt             checks                        60.000                None
8 years       08-07          Prompt             checks                         Open                 -
6 years       08-07          Prompt             checks                         Open                 -
13 years     08-07           Prompt             checks                         Open                 -

- Tax Status: With outstanding obligations

- 4 to November 2015 Subject US$ 13855,66 the Internal Revenue Service. No
recorded objections.

Firm debt is an obligation that has not been paid after it has been imposed by
the IRS or determined by the taxpayer

- 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 November, 2015

Detail of Bank References

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

Bank                     : Banco De La Produccion S.A.
To expire                : US$ 612.961,17

Bank                     : Banco Del Pacifico S.A.
To expire                : US$ 751,86

Bank                     : Banco Internacional S.A.
To expire                : US$ 760.094,89

Bank                     : Banco Pichincha C.A.
To expire                : US$ 239.533,16

Total debt to September 2015 is US$ 2.403.062,95

Mercantil Sacosplast C. Ltda. 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 2012 was US$ 1.339.483,46
During 2013 was US$ 1.636.204,44
During 2014 was US$ 2.323.763,41
During 2015 was US$ 2.454.637,49

Income tax corresponding to the last years:
Year 2014: US$ 182.851
Year 2013: US$ 137.782
Year 2012: US$ 111.913
Year 2011: US$ 135.798
Year 2010: US$ 85.677

 

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                     4.591.799         3.811.885         3.950.393
CURRENT LIABILITIES                2.684.373         2.301.117         2.409.850
WORKING CAPITAL                    1.907.426         1.510.768         1.540.543
FIXED ASSETS                          2.871.808         3.076.912         3.128.346
OTHER ASSETS                           427.560            361.340                 0
LONG TERM LIABILITIES            1.437.517         1.488.196         1.528.489
NET WORTH                                3.769.277         3.460.824         3.140.400
OPERATING INCOMES                7.631.895         8.196.656         7.373.359
CURRENT PROFIT(LOSS)            308.454           320.423           273.996

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

ASSETS                                              31/12/2014        31/12/2013
Cash                                                     943.416             827.200
Sundry Debtors                                       2.177.705                   1.830.113
Inventory                                               1.191.848           624.960
Other Current Assets                               278.830              529.612
CURRENT ASSETS                                4.591.799           3.811.885

Net Fixed Asset                                                2.871.808         3.076.912
FIXED ASSETS                                       2.871.808         3.076.912

Other                                                    427.560           361.340
OTHER ASSETS                                     427.560           361.340

TOTAL ASSETS                                      7.891.167         7.250.137

LIABILITIES                                         31/12/2014        31/12/2013
Accounts Payable                                  1.083.896                     1.110.668
Notes Payable                                        1.406.839           841.107
Other Current Liabilities                          193.638           349.342
CURRENT LIABILITIES                         2.684.373           2.301.117

Notes Payable                                                  1.233.709         1.488.196
Other Long Term Liabilities                      203.808             0
LONG TERM LIABILITIES                      1.437.517         1.488.196

Capital & Reserves                                  243.553           243.553
Other Reserves                                       1.443.775         1.443.775
Accumulated Profits                                1.773.495         1.453.073
Current Profit (Losses)                            308.454            320.423
NET WORTH                                          3.769.277         3.460.824

TOTAL LIABILITIES                             7.891.167          7.250.137


STATEMENTS OF RESULTS                              31/12/2014      31/12/2013


Operating  Income                                             7.631.895         8.196.656
Operating Cost                                                              -5.966.328        -6.419.992
OPERATING MARGIN                                       1.665.567         1.776.664

Administration & Sales Expenses                                   -868.923            -983.835
OPERATING RESULT                                                   796.644             792.829

Other non Operating Incomes                             278.297             0
Other non Operating Expenses                                      -496.936            -253.765
NON OPERATING RESULT                               -218.639            -253.765

Result Before Income Tax                               578.005             539.064
Taxes and Employees Participation                     -269.552                      -218.641
NET PROFIT(LOSS)                                          308.453              320.423

CURRENT PROFIT(LOSS)                                   308.453           320.423


                                                          ECONOMIC - FINANCIAL RATIOS

                                                                        31/12/2014        31/12/2013        Average

Working Capital                                     ( US$ )              1.907.426          1.510.768          1.709.097
Current Liquidity                        (Times)             1,71                  1,66                  1,69
Acid Test                                  (Times)             1,27                  1,38                  1,33
Collection Period Days              ( Days)             102,72              80,38                91,55
Accounts Receivable Turnover   (Times)             3,50                  4,48                  3,99
Inventory Turnover                     (Times)             5,01                  10,27                7,64
Current Indebtedness                 (Times)             0,71                  0,66                  0,69
Total Indebtedness                    (Times)             1,09                  1,09                  1,09
Solvency                                  (Times)             1,91                  1,91                  1,91
Assets Tying Up                        (  %  )               36,39                42,44                39,42
Profitability Over Sales              (  %  )               4,04                  3,91                  3,98
Profitability Over Assets            (  %  )               3,91                  4,42                  4,17
Profitability Over Net Worth       (  %  )               8,18                  9,26                  8,72

 

BANKS

 

The main banks are:

Banco Bolivariano C.A. ACCT # 0005180356
Banco De La Produccion S.A. ACCT # 02006025516
Banco Del Pacifico S.A.
Banco Internacional S.A.
Banco Pichincha C.A. ACCT # 02006025516

 

OPERATIONS

 

Line of Business : Manufacture of polypropylene's plastic sacks

                   The line of business registered at the Internal Revenue
                   Services(IRS) is: MANUFACTURE AND SALE OF POLYPROPYLENE
                   SACKS

                   Social objective registered at the Superintendency of
                   Companies is:Import, export, trading, manufacture,
                   distribution and marketing of all kind of products, machinery
                   related to the plastic industry and its derivatives.

Classification according to commercial activity:

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

Commercializes:

- Sacoplast

Sales


Sales are steady throughout the year

National sales territory

According to the interviewee, the approximate monthly sales average is US$
700.000

 

Customers


Main customers are: Line of business' distributors,  agricultural companies,
food industry.

The 2 most important customers are:

Arrocera La Palma (
Arrozpalma) Cia. Ltda.,  Agroindustrias Dajahu S.A.. 

 

Purchases


Places orders with multiple suppliers

Imports from China, Thailand, Colombia, Peru,
Brazil.


NATIONAL SUPPLIERS

-
Fomasal Sa
-
Hivimar S.A
-
Indubras Ecuador S.A.
-
Nutec Representaciones S.A.
-
Provelan Proveedora Industrial Latinoamericana Cia. Ltda
-
Quimica Comercial Quimicial C Ltda
-
Quimpac Ecuador S.A Quimpacsa

FOREIGN SUPPLIERS

-
Ciplas (Colombia)
-
Norsac (Peru)
-
Polipropileno Del Caribe Propilco (Colombia)

Employees: 143 employees

Location


-  Administrative offices are located at Via Daule, a la altura del Km 16.5,
   frente a Pinturas Unidas, Parque Industrial Pascuales, Parroquia Pascuales
   Guayaquil Guayas, Ecuador

 

Branches


Subject does not have any branch

-  Main facilities have a total covered area of 3.383 m2 which are occupied by
   offices and warehouse.

 

RELATED COMPANIES


Subject is related to the following companies:

Construkigal S.A. T A X : 0992643722001, 20,80% Participation
Herramientas Japon S.A. Ferrejapon T A X : 0992711833001
Plasticos Estrategicos S.A. Estraplas T A X : 0992802936001
Disquisa S.A. T A X : 0990990018001 Guayaquil Guayas
Euroagriculture Investments S.A. T A X : 0992679476001 Guayaquil Guayas

 

INSURANCES


Insurance Company:

-Seguros Equinoccial S. A.

ADMINISTRATION


Manager General          : Alfredo Masahiro
Ozeki Campos TAX:0908829468
President                : Maria Veronica Davila
Cobos TAX:0913214235
Accountant               : Milton
Solorzano
Department Purchasing    : Andres Lara

CURRICULUM


Alfredo Masahiro
Ozeki Campos

T A X               : 0908829468
Civil status        : Married
Birth date          : 01/04/1971 Guayaquil Guayas-Ecuador
Position            : Manager General
Mercantile Register : Number 6040 of 14/05/2015

Maria Veronica Davila
Cobos

T A X               : 0913214235
Civil status        : Married
Birth date          : 13/12/1976 -Ecuador
Position            : President
Mercantile Register : Number 19690 of 28/10/2011

Akemi
Ozeki Davila

T A X               : 0929598548
Civil status        : Single
Birth date          : 19/07/2008 -Ecuador

Naoki
Ozeki Davila

T A X               : 0930051719
Civil status        : Single
Birth date          : 29/12/2006 -Ecuador

LEGAL INFORMATION


Legal Structure              : Stock Company (Ecuador)
Constitution date            :  16/07/1987
Authorization                  : Resolution Nº 2400
Notary                           : N° 21, Guayaquil Guayas
Term of duration             : 50 Year, ended on 16/07/2037
Legal Address                : Guayaquil - Ecuador
Published in                   : Official Gazette dated 13/07/1987

Current Subscribed Capital: US$ 112.400.-Divided to 112.400.- common shares
                            unique series amounting US$ 1.-
Authorized Current Capital: US$ 224.800.-
Subscribed Initial Capital: US$ 80.-
Subscribed Initial Capital: US$ 40.-

Shareholders : 3

-  99,92% 0908829468 Alfredo Masahiro
Ozeki Campos
-   0,04% Naoki
Ozeki Davila
-   0,04% Akemi
Ozeki Davila

Legal representation is held by Manager General, President..

Legal changes

By Resolution Nº 842 on 24/04/1992, notary N° 21, Guayaquil Guayas, published in
the Official Gazette dated 24/04/1992, capital was increased: amounting USD
80,00 of National Investment

By Resolution Nº 588 on 11/02/1994, notary N° 29, Guayaquil Guayas, published in
the Official Gazette dated 27/02/1994, capital was increased: by US$. 2.240

By Resolution Nº 2482 on 15/04/2010, notary N° 27, Guayaquil Guayas, published
in the Official Gazette dated 05/05/2010, corporate name was modified: from
Mercantil Sacoplast Cia. Ltda. to Sacoplast S.A.

By Resolution Nº 8011 on 19/12/2012, notary N° 39, Guayaquil Guayas, published
in the Official Gazette dated 21/12/2012, capital was increased: By US$
110.000.


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.


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 69

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.14

UK Pound

1

Rs.100.55

Euro

1

Rs.71.26

 

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

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%)

 

 

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.