MIRA INFORM REPORT

 

 

Report No. :

350747

Report Date :

25.11.2015

 

IDENTIFICATION DETAILS

 

Name :

MAGNITOS - MAGNAGO GRANITOS LTDA

 

 

Registered Office :

Rodovia Gumercindo Moura Nunes, S/Nº,0 Fazenda Cachoeira Alegre - Bairro Soturno, 29300-970 - Cachoeiro De Itapemirim/Es

 

 

Country :

Brazil

 

 

Date of Incorporation :

21.10.2003

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

The subject is engaged in cutting, shaping and finishing of stones

 

 

No. of Employee :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

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)

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. GDP growth has slowed since 2011, due to several factors, including: overdependence on exports of raw commodities, low productivity, high operational costs, persistently high inflation, and low levels of investment. After reaching historic lows of 4.5% in early 2014, the unemployment rate remains low, but is rising. Brazil's traditionally high level of income inequality has declined for each of the last 15 years.

Brazil’s fiscal and current account balances have eroded during the past four years as the government attempted to boost economic growth through targeted tax cuts for industry and incentives to spur household consumption. After winning reelection in October 2014 by a historically narrow margin, President Dilma ROUSSEFF appointed a new economic team led by Finance Minister Joaquim LEVY, who introduced a fiscal austerity package intended to restore the primary account surplus to 1.2% of GDP and preserve the country's investment-grade sovereign credit rating.

Brazil seeks to strengthen its workforce and its economy over the long run by imposing local content and technology transfer requirements on foreign businesses, by investing in education through social programs such as Bolsa Familia and the Brazil Science Mobility Program, and by investing in research in the areas of space, nanotechnology, healthcare, and energy.

 

Source : CIA

 

Company name

 

MAGNITOS - MAGNAGO GRANITOS LTDA

 

 

ADDRESSES

 

MAIN ADDRESS:

RODOVIA GUMERCINDO MOURA NUNES, S/Nº,0 FAZENDA CACHOEIRA ALEGRE - BAIRRO SOTURNO

ZIP CODE/CITY:

29300-970 - CACHOEIRO DE ITAPEMIRIM/ES

 

 

PHONE:

28 2101-8300

FAX:

28 2101-8300

E-MAIL:

financeiro@magnitos.com.br

 

BRANCHES:

 

 

 

ADDRESS:

CORREGOS PAULISTINHA, S/Nº,0 - VILA PAULISTA

ZIP CODE/CITY:

29815-000 BARRA DE SÃO FRANCISCO/ES

CNPJ:

06.025.749/0002-50

 

 

ADDRESS:

FAZENDA MORRO BRANCO, S/Nº,0 - ZONA RURAL

ZIP CODE/CITY:

46190-000 PARAMIRIM/BA

 

 

ADDRESS:

FAZENDA PERSEVERANÇA, S/Nº,0 - CÓRREGO DO FERRUGEM

ZIP CODE/CITY:

45970-000 ITANHÉM/BA

 

 

LEGAL DATA

 

MAIN ACTIVITIES:

 

CUTTING, SHAPING AND FINISHING OF STONES.

 

LEGAL FORM:

LIMITED LIABILITY COMPANY

 

 

INCORPORATION DATE:

21/10/2003

REGISTER DATE:

21/10/2003

BALANCE SHEET FILING DATE:

31/12

TAX CONTRIBUTOR NUMBER(CNPJ):

06.025.749/0001-70

STATE REGISTER:

082.265.45-3

 

 

SHARE CAPITAL:

R$ 250.000,00

 

BOARD OF DIRECTORS:

 

 

 

EDVALDO MAGNAGO

MANAGING PARTNER

ALEXANDRE ANDRIÃO MAGNAGO

MANAGING PARTNER

 

 

AUTHORIZED USE OF SIGNATURE

 

THE MANAGING PARTNERS ARE AUTHORIZED TO SIGN ON BEHALF OF THE COMPANY.

 

SHAREHOLDERS / PARTNERS:

 

 

 

EDIVALDO MAGNAGO

80%

ALEXANDRE ANDRIÃO MAGNAGO

20%

 

AFFILIATES / SUBSIDIARIES:

 

A SCAN THROUGH OUTSIDE SOURCES SHOWED THE SUBJECT AND/OR DIRECTORS HAS/HAVE THE FOLLOWING UNCONFIRMED HOLDINGS:

 

 

MINERAÇÃO CEDROS LTDA

 

GRANGOLD GRANITOS LTDA

 

PLANALTO URBANO SPE LTDA

 

EMIBRA MINERAÇÃO LTDA

 

MINERAÇÃO MAGNAGO LTDA

 

MINERAÇÃO SERTÃO LTDA

 

MINERAÇÃO RECÔNCAVO LTDA

 

MINERAÇÃO CASTELO LTDA

 

MINERAÇÃO MIL STONE LTDA

 

 

 

COMPANY'S BACKGROUND

 

THE SUBJECT WAS ESTABLISHED ON OCTOBER 21, 2003 TO BE ENGAGED IN THE SAID LINE OF BUSINESS.

 

THE COMPANY OPERATES WITH THE TRADE NAME, MAGNITOS.

 

THE PARTNERS:

 

EDVALDO MAGNAGO: BRAZILIAN, MARRIED, ENTREPRENEUR, HOLDER OF DOCUMENTS, RG 748.362 SSP/ES AND CPF 903.926.397-34, RESIDENTIAL ADDRESS AT DR. DEOLINDO, 209 BAIMINAS - CACHOEIRO DE ITAPEMIRIM/ES;

 

ALEXANDRE ANDRIÃO MAGNAGO: BRAZILIAN, MARRIED, ENTREPRENEUR, HOLDER OF DOCUMENTS, RG 1.057.276 SSP/ES AND CPF 009.801.997-00, RESIDENTIAL ADDRESS AT JOSÉ ALVES DA SILVA, BAIRRO ALTO MONTE CRISTO - CACHOEIRO DE ITAPEMIRIM/ES.

 

FURTHER DETAILS ARE SO FAR NOT KNOWN.

 

REMARKS:

--------

 

WHEN CONTACTING THE SUBJECT WE INTERVIEWED MISS. VALDIANA, FINANCIAL DEPARTMENT, WHO INFORMED THAT WOULD NOT DISCLOSE ANY KIND OF INFORMATION UNLESS THE INQUIRING PARTY'S NAME WAS DISCLOSED.

 

IF IT IS POSSIBLE TO DISCLOSE THE NAME OF THE INTERESTED SUPPLIER OF THE SUBJECT, WE MAY RESUME OUR CONTACTS AND TRY TO OBTAIN FURTHER INFORMATION.

 

THE DATA CONTAINED HEREIN WERE OBTAINED FROM OUTSIDE SOURCES, OUR DATABASE AND OFFICIAL. NO FURTHER DATA WAS AVAILABLE WITH SEVERAL SOURCES USUALLY INVESTIGATED.

 

PUBLIC INFORMATION:

 

LAWSUITS:

 

 

 

DATE:

COURT OF LAW:

 

1

EXECUTIVE LAWSUIT

20/12/10

4ª VARA DE ES-CACHOEIRO DE ITAPEMIRIM

 

 

FINANCIAL INFORMATION

 

DUE TO THE SUBJECT'S LEGAL FORM, IT IS NOT OBLIGED TO PUBLISH THE BALANCE SHEET INFORMATION. WHEN INTERVIEWING SOURCES AT THE SUBJECT COMPANY DECLINED TO PROVIDE ANY KIND OF FINANCIAL INFORMATION.

 

OUR INVESTIGATION THROUGH THE OUTSIDE SOURCES SHOWED NO FINANCIAL DATA ABOUT THE SUBJECT.

 

EXCHANGE RATE:

 

 

US$ 1,00 = R$ 3,70

 - OFFICIAL RATE ON 20/11/2015

 

COMMENTS ON THE FINANCIAL INFORMATION:

 

IN THE ABSENCE OF FINANCIAL INFORMATION NO COMMENTS CAN BE MADE ABOUT THE SUBJECT'S CURRENT FINANCIAL STANDING.

 

REAL ESTATE:

NOT AVAILABLE

 

VEHICLES:

NOT AVAILABLE

 

MACHINES:

NOT AVAILABLE

 

 

INSURANCE

 

NOT AVAILABLE

 

 

BANKING REFERENCES

 

 

BRANCH/PHONE:

CITY:

BANCO BANESTES S/A

AG: 010     /  28 3521-3979

CACHOEIRO DO ITAPEMIRIM/ES

BANCO BRADESCO S/A

AG: 0553-3  /  28 3521-0211

CACHOEIRO DO ITAPEMIRIM/ES

 

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

 

 

ACTIVITIES COMMENTS

 

THE SUBJECT IS ENGAGED IN CUTTING, SHAPING AND FINISHING OF STONES.

 

IMPORT AND EXPORT:

 

IMPORTS FROM:

ITALY.

 

EXPORTS TO:

UNITED STATES.

 

MAIN CLIENTS:

 

 

 

 

 

DOMESTIC CLIENTS:

 

PHONE:

GRANITO ZUCCHI

 

27 3252-3345

PEMAGRAN

 

28 2101-8000

 

STAFF:

   NOT AVAILABLE

 

 

CONCEPT AND FULFILMENT

 

THE SUBJECT IS A WELL-ESTABLISHED COMPANY, OPERATING SINCE 2003. SO FAR IT HAS A CLEAR TRADE HISTORY AND MODEST PAYMENT BEHAVIOUR.

 

THE COMPANY HAS TRADE RELATIONS WITH SOME LOCAL SUPPLIERS BUT UP TO DATE ONLY SMALL PAYMENTS WERE REPORTED AND THE SUBJECT IS NOT SAID TO BE USER OF TRADE CREDIT FACILITIES.

 

THE LAWSUIT REPORTED IS NOT RELATED WITH TRADE DEBT. IT IS RELATED TO TAX DEBT THAT FOR ANY REASON THE COMPANY HAS NOT YET PAID. NEVERTHELESS WE POINT OUT THAT THE SAID LAWSUIT DOES NOT AFFECT THE COMPANY'S TRADE REPUTATION.

 

MAIN SUPPLIERS:

 

 

 

 

 

DOMESTIC SUPPLIERS:

 

PHONE:

GRANASA MINAS IND. E COMÉRCIO LTDA

 

3521-1665

INAMAQ IND. NACIONAL DE MAQUINAS LTDA

 

28 3511-2146

METISA S/A

 

 

MINERAÇÃO CEDROS

 

27 3735-5115

SFERA ROLAMENTOS

 

28 3155-5811

TRACBEL

 

 

 

PAYMENT HISTORY:

 

1 SUPPLIER REPORTED PAYMENTS:

   TOTAL AMOUNT:  R$ 6.555,00

 

AMOUNT OF INVOICES PAID: 16

TOTAL OF PROMPT PAYMENTS: 100%

HIGHEST INVOICE: R$ 770,05

HIGHEST CREDIT: R$ 770,00

 

 

FINAL OPINION

 

BASED ON THE OVERALL DATA AVAILABLE THE SUBJECT MAY BE CONSIDERED FOR NORMAL BUSINESS COMMITMENTS. CREDIT FACILITIES, HOWEVER, SHOULD BE GRANTED ON FULLY SECURED TERMS ONLY DUE TO THE ABSENCE OF FINANCIAL DATA.

 

 


DIAMOND INDUSTRY – INDIA

 

-            From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-            The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-            The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-            Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-            Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-            Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-            Excerpts from Times of India dated 30th October 2010 is as under –

 

-            Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

 

-            The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.38

UK Pound

1

Rs.100.45

Euro

1

Rs.70.55

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

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.