MIRA INFORM REPORT

Report Date :

16.05.2011

IDENTIFICATION DETAILS

Name :	LIONKING INDUSTRIAL CORPORATION
Registered Office :	1117 Escoda Street, Paco, Manila, Zip Code 1009
Country :	Philippines
Financials (as on) :	31.12.2009
Date of Incorporation :	02.04.1997
Com. Reg. No.:	A199701611
Legal Form :	Joint Stock Company
Line of Business :	Wholesaler and retailing of industrial chemicals.

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	20,000 GBP
Status :	Moderate
Payment Behaviour :	Unknown
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, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Philippines	b1	b1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

REGISTERED NAME & COMPANY SUMMARY

IDENTIFICATION
Given
Subject Name:	Lionking Industrial Corporation
Address:	1117 J. L. Escoda Street
Town:	Paco
State/province:	Manila
Zip/postal code:	1009
Country:	Philippines
Verified
Subject Name:	LIONKING INDUSTRIAL CORPORATION
Address:	1117 Escoda Street
Town:	Paco
State/province:	Manila
Zip/postal code:	1009
Country:	Philippines
Telephone:	+63 (2) 5223453 / 5238717
Fax:	+63 (2) 5243205
Email:	lkcolors@info.com.ph
EXECUTIVE SUMMARY
Date registered:	02-04-1997
Legal form:	Joint Stock Company
Authorised Capital:	PHP 1,000,000
Sales turnover:	PHP 53,240,874 (12 months, 31/12/2009)
Main activities:	Wholesaler and retailing of industrial chemicals.
Employees:	7
REGISTRY DATA
Key Facts
Date registered:	02-04-1997
Legal form:	Joint Stock Company
Registration no:	A199701611
Registry auth.	Philippines Register of Companies
Fiscal/tax code:	TIN No. : 004-590-840
Registry status:	Live/Active

CREDIT RECOMENDATION

Current Credit Limit: 20,000 GBP

DIRECTORS/MANAGEMENT

MANAGEMENT & STAFF
Key Managers
Name:	Robert O. Yao
Job Title:	President
Name:	Adrain Ang
Job Title:	Director
Name:	Ma. Grace Yao Uy
Job Title:	Director
Name:	Brenda Leoh Yao
Job Title:	Company Secretary
Name:	Susan Choy
Job Title:	Treasurer
Key Advisors
Auditor:	FLORENCIO Y. ROJAS JR. ASSOCIATES #45 Oval Street Mabuhay Subd. Lucia Pasig City Philippines
Staff
No of employees	7
BOARD OF DIRECTORS / OTHER APPOINTMENTS
Appointments
Name:	Robert O. Yao
Board function:	President
ID Number:	100-886-572
Address:	2241 Guad. Mansion J.P Rizal Guadalupe Makati Philippines
Name:	Adrain Ang
Board function:	Director
ID Number:	197-721-77
Address:	1445 Looban Street Paco Manila Philippines
Name:	Ma. Grace Yao Uy
Board function:	Director
ID Number:	129-475-903
Address:	1452 San Marcelino Street Paco Manila Philippines
Name:	Brenda Leoh Yao
Board function:	Company Secretary
ID Number:	140-522-583
Address:	2241 Guad. Mansion J.P Rizal Guadalupe Makati Philippines
Name:	Susan Choy
Board function:	Treasurer
ID Number:	206-709-576
Address:	222 Roxas Seafront Gardens Roxas Boulevard Pasay City Philippines

NEGATIVE INFORMATION

LEGAL FILINGS
Bankruptcy Filings:	None
Court Judgements:	None
Tax Liens:	None
Other:	None

SHARE & SHARE CAPITAL INFORMATION

SHARE CAPITAL
Composition
Authorised:	PHP 1,000,000
Number/type:	10,000 common shares
Share value:	PHP 100
Issued:	PHP 250,000
Paid-up:	PHP 250,000
Shareholders/Owners
How Listed	Full List
Composition
Name:	Robert O. Yao
No. of shares:	1,000 common shares
Address:	2241 Guad. Mansion J.P Rizal Guadalupe Makati Philippines
Name:	Brenda Leoh Yao
No. of shares:	700 common shares
Address:	2241 Guad. Mansion J.P Rizal Guadalupe Makati Philippines
Name:	Adrain Ang
No. of shares:	600 common shares
Address:	1445 Looban Street Paco Manila Philippines
Name:	Ma. Grace Yao Uy
No. of shares:	175 common shares
Address:	1452 San Marcelino Street Paco Manila Philippines
Name:	Susan Choy
No. of shares:	25 common shares
Address:	222 Roxas Seafront Gardens Roxas Boulevard Pasay City Philippines

PAYMENT INFORMATION

PAYMENTS
Purchase Terms
Local:	Cash Credits 14-30 days
Imports:	L/Cs Credits 30 days net
Sales Terms
Local:	Cash Credits 14-30 days
Exports:	L/Cs Credits 30 days net
Debt Collections / Judgements	No negative information was found.
Payment Experience
Payment Behaviour:	As trade references were not supplied, the Subject's payment track record history CANNOT BE ACCURATELY DETERMINED, but payments are believed to be PROMPT.

GROUP STRUCTURE & AFFILIATED COMPANIES

CORPORATE AFFILIATIONS
Comments	None reported.

FINANCIAL INFORMATION

FINANCIAL ACCOUNTS
Description
Required to file:	Yes
Source:	Commercial Registry Filings
Presentation:	Attached to this report / Summarised below
Date of accounts:	31-12-2009
Type of accounts:	Full audited
Currency:	Philippines Peso (PHP)
Exchange rate:	USD 1 = PHP 42.67 as of 02-May-11
Summarised
	31-12-2009	31-12-2008
Period:	12 months	12 months
Sales turnover:	53,240,874	34,588,986
Gross profit:	5,429,971	3,871,206
Profit before tax:	966,538	532,135
Profit after tax:	676,577	345,889
Non-current assets:	1,458,283	1,847,239
Current assets:	16,467,282	15,097,898
Inventories:	11,697,439	12,464,894
Total assets:	17,925,565	16,945,137
Current liabilities:	5,959,124	4,055,273
Non-current liabilities:	7,000,000	8,600,000
Total liabilities:	12,959,124	12,655,273
Shareholders' equity:	4,966,441	4,289,865

LIONKING INDUSTRIAL CORPORATION
COMPARATIVE BALANCE SHEET
AS AT 31 DEC
	2009 PHP	2008 PHP
ASSETS
Current Assets
Cash and Cash Equivalents	673,982	387,942
Accounts Receivable	3,811,097	2,069,428
Inventories	11,697,439	12,464,894
Prepayments	284,765	175,634
Total Current Assets	16,467,282	15,097,896
Noncurrent Assets
Property and equipment- net	2,427,152	2,427,152
Less Accumulated Depreciation	968,869	579,913
Net Property & Equipment	1,458,284	1,847,239.00
TOTAL ASSETS	17,925,565	16,945,137
LIABILITIES AND Stockholder’s EQUITY
Current Liabilities
Accounts payable and accrued expenses	5,959,124	4,055,273
Noncurrent Liability
Advances from stockholders	7,000,000	8,600,000
Total liabilities	12,959,124	12,655,273
Stockholders’ Equity
Capital Stock-Authorized value
10.000 shares at P100.00 par	1,000,000	1,000,000
Paid-up Capital	250,000	250,000
Retained Earnings	4,716,441	4,039,865
Total Stockholders Equity	4,966,441	4,289,865
TOTAL LIABILITIES AND STOCKHOLDERS
EQUITY	17,925,565	16,945,137

LIONKING INDUSTRIAL CORPORATION
STATEMENT OF INCOME AND EXPENSES
AS AT 31 DEC
	2009 PHP	2008 PHP
Net Sales	53,240,874	34,588,986
Cost of goods sold	47,810,903	30,717,780
Gross Income	5,429,971.00	3,871,206
Operating expenses	4,463,433	3,339,071
Profit before Income tax	966,538	532,135
Provision for Income Tax	289,961	188,247
Net Profit After Tax	676,577	345,889
Earning Per Share	3	1

Financial Ratios
	31-12-2009	31-12-2008	Trend
PROFITABILITY [%]
Gross Margin	10.2%	11.19%	-8.85 %
Gross Profit / Revenue * 100
Operating Margin	N/A	N/A	N/A
Operating Income / Revenue * 100
Net Profit Margin	1.27%	1%	27 %
Profit After Tax / Revenue * 100
Return On Equity (ROE)	13.62%	8.06%	68.98 %
Profit After Tax / Equity * 100
Return On Assets (ROA)	3.77%	2.04%	84.8 %
Profit After Tax / Total Assets * 100
Return On Investment (ROI)	19.46%	12.4%	56.94 %
Profit Before Tax / Equity * 100
EFFICIENCY [%]
Asset Turnover	297.01%	204.12%	45.51 %
Revenue / Total Assets * 100
Inventory Turnover	455.15%	277.49%	64.02 %
Revenue ./ Inventory * 100
LIQUIDITY [%]
Current Ratio (CR)	276.34%	372.3%	-25.77 %
Current Assets ./ Current Liabilities * 100
Quick Ratio (QR)	80.04%	64.93%	23.27 %
(Current Assets – Inventory) ./ Current Liabilities * 100
DEBT [%]
Debt Ratio	72.29%	74.68%	-3.2 %
Total Liabilities ./ Total Assets * 100
Long-Term Debt Ratio	140.95%	200.47%	-29.69 %
Long-Term Liabilities ./ Equity * 100

FOREIGN EXCHANGE RATES

Na

ADDITIONAL INFORMATION

OPERATIONS & HISTORY
Activities
Full description:	The Subject is engaged in wholesaling and retailing of industrial chemicals and general merchandise.
PROPERTY & ASSETS
Premises	The Subject operates from premises located at the heading address, consisting of a shop and an office.
ATTACHMENTS
Attachments:		Financial statements and ratios

NOTES & COMMENTS

INVESTIGATIVE NOTES
Sources:	Interviews and material provided by the Subject Other official and local business sources

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.91
UK Pound	1	Rs.73.06
Euro	1	Rs.64.03

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.