MIRA INFORM REPORT

 

 

Report Date :

15.10.2012

 

IDENTIFICATION DETAILS

 

Name :

FERNA CORPORATION

 

 

Registered Office :

16 Bernardo Street, San Rafael Village, Navotas City 1485, Metro Manila

 

 

Country :

Philippines

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

26.08.1996

 

 

Com. Reg. No.:

A199604945

 

 

Legal Form :

Corporation

 

 

Line of Business :

 

 

 

 

No. of Employees :

40 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Status :

Moderate

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Philippines

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Philippines - ECONOMIC OVERVIEW

 

Philippine GDP grew 7.6% in 2010, spurred by consumer demand, a rebound in exports and investments, and election-related spending, before cooling to 3.7% in 2011. The economy weathered the 2008-09 global recession better than its regional peers due to minimal exposure to troubled international securities, lower dependence on exports, relatively resilient domestic consumption, large remittances from four- to five-million overseas Filipino workers, and a growing business process outsourcing industry. Economic growth in the Philippines averaged 4.5% during the MACAPAGAL-ARROYO administration (January 2001 - June 2010). Despite this growth, however, poverty worsened during her presidency. The AQUINO administration is working to reduce the government deficit from 3.9% of GDP, when it took office, to 2% of GDP by 2013. The government has had little difficulty issuing debt, both locally and internationally, to finance the deficits. The AQUINO Administration reduced public debt to below 50% of GDP and obtained several ratings upgrades on sovereign debt so that the Philippines is now close to investment grade. However, the lack of government spending, especially on infrastructure, was one of several factors which slowed GDP growth in the second half of 2011, leading the government to announce a stimulus effort and increased public spending on infrastructure in 2012. AQUINO's first budget emphasized education, health, conditional cash transfers for the poor, and other social spending programs, relying mostly on the private sector to finance important infrastructure projects. Weak tax collection, exacerbated by new tax breaks and incentives, has limited the government's ability to address major challenges. The AQUINO administration has vowed to focus on improving tax collection efficiency, rather than imposing new taxes, as a part of its good governance platform. The economy still faces several long-term challenges, including reliance on energy imports and foreign demand for overseas Filipino workers.

 

 

Source : CIA

 

Company Details

 

Company Name:

FERNA CORPORATION

Supplied Name:

FERNA CORPORATION

Trading Address:

16 Bernardo Street, San Rafael Village, Navotas City 1485, Metro Manila Philippines

Supplied Address:

16 Bemardo St. San Rafael Village Novotas 1485 Metro Manila

Telephone Number:

+63 2 253-6136; 251-5534

Fax Number:

+63 2 253-5920; 253-6192; 253-5290

E-mail:

www.ferna.com.ph

Website:

info@ferna.com.ph

 

Note:

The accurate address of subject is as above mentioned.

 

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

 

Company Identification Details

 

Company Name:

FERNA CORPORATION

Registered Number:

A199604945

Legal Form:

Corporation

Date Incorporated:

08/26/1996

Authorized Capital Stock:

PHP 40,000,000.00 (USD 963,607)

(As of 2012.10, 1 PHP= 0.02409 USD)

Staff:

Employs about 40 including administrative, sales, plant and support staff.

 

Note:                  Amounts in Philippine Peso unless otherwise specified.

 

History

 

CORPORATION

Verification with the local registry revealed the following correct registration details as of (November 8, 2011).

 

Company Background

Regulatory Agency

Date Registered

 

 

Term

Securities and Exchange Commission

08/26/1996

A199604945

50 years

 

As of (08/12/2011)

Type

Share

Par Value

Authorized Capital

40,000,000.00

100.00

Subscribed and Paid Up Capital

18,000,000.00

100.00

Capital structure per latest available Amended Articles of Incorporation (increase in capital stock).

 

Increase in authorized capital stock from 10,000,000 to 40,000,000 was approved by the Securities and Exchange Commission on August 12, 2011.

 

 

Corporate Structure

 

AFFILIATE: Purechem Corporation

 

 

Shareholders

 

Stockholders:

1

Name:

CO, FERNANDO G.

% of Holdings:

40%

Capital Type:

Subscribed and Paid Up

Nationality:

Filipino

2

Name:

CO, GIOVANNI K.

% of Holdings:

20%

Capital Type:

Subscribed and Paid Up

Nationality:

Filipino

3

Name:

CO, FERNANDO K. JR.

% of Holdings:

20%

Capital Type:

Subscribed and Paid Up

Nationality:

Filipino

4

Name:

CO, JEANETTE N

% of Holdings:

10%

Capital Type:

Subscribed and Paid Up

Nationality:

Filipino

5

Name:

CO-CHIU, SHARON

% of Holdings:

10%

Capital Type:

Subscribed and Paid Up

Nationality:

Filipino

 

 

Management Information

 

Management:

1

Name:

CO, FERNANDO G.

Position:

Chairman

Address:

245 Encarnacion St., Navotas City

2

Name:

CO, GIOVANNI K.

Position:

President / Director

Address:

245 Encarnacion St., Navotas City

3

Name:

CO-CHIU, SHARON

Position:

Treasurer / Corporate Secretary

Address:

245 Encarnacion St., Navotas City

4

Name:

CO, FERNANDO K. JR.

Position:

Director

Address:

245 Encarnacion St., Navotas City

5

Name:

CO, JEANETTE N.

Position:

Director

Address:

245 Encarnacion St., Navotas City

 

 

Operation

 

Activities

Engaged in importing, buying, manufacturing, selling and trading of food flavoring and chemicals and other related items.

Premises

Located at the above address.

 

 

Balance Sheet

 

Unit: PHP

 

2011-12-31

2010-12-31

TotalCurrentAssets

146,671,849.76

111,300,625.80

Cash

643,290.95

714,136.61

Receivable

12,329,825.82

11,742,691.26

Inventory

125,649,473.27

95,623,647.85

OtherCurrentAssets

8,049,259.72

3,220,150.08

FixedAssetsTotal

20,502,161.93

8,826,351.77

FixedAssets

20,502,161.93

8,826,351.77

TotalAssets

167,174,011.69

120,126,977.57

TotalCurrentDebt

143,711,760.01

99,228,603.33

AccountsPayable

143,437,570.16

99,127,553.67

OtherCurrentLiability

274,189.85

101,049.66

TotalLiability

143,711,760.01

99,228,603.33

TotalEquity

23,462,251.68

20,898,374.24

TotalEquity (USD)

565,210

503,445

ShareCapital

18,000,000.00

10,000,000.00

RetainedEarning

5,462,251.68

10,898,374.24

TotalLiabilityAndEquity

167,174,011.69

120,126,977.57

TotalLiabilityAndEquity(USD)

503,445

2,893,880

WorkingCapital

-2.71

4.91

 

Attached are the 2011-2010 audited financial statements.

 

 

Profit/ Loss Accounts

 

Unit: PHP

 

2011

2010

SalesRevenue

201,224,783.63

167,752,732.29

SalesRevenue (USD)

4,847,540

4,041,190

TotalRevenue

201,224,783.63

167,752,732.29

SalesCost

163,487,439.14

130,471,944.02

GrossProfit

37,737,344.49

37,280,788.27

ManagementExpenses

33,427,257.35

33,719,730.73

TotalExpenses

196,914,696.49

164,191,674.75

OperatingProfit

4,310,087.14

3,561,057.54

ProfitBeforeTax

4,310,087.14

3,561,057.54

Tax

1,293,026.14

1,068,317.26

NetProfit

3,017,061.00

2,492,740.28

NetProfit (USD)

72,681.5

60,050.5

 

 

CashFlow

 

 

2011

2010

OperatingNetCash

14,159,519.24

685,110.92

InvestmentNetCash

-14,230,364.90

-1,401,205.36

 

 

Bankers

 

No dealings based on credit exposure report with one million and above dealings under the name “FERNA CORPORATION” as of June 30, 2012.

Public

 

No negative (court cases, credit cards cancelled and delinquent accounts) found under the name “FERNA CORPORATION” in available database as of October 12, 2012.

 

 

Special Note

 

Above information were based on the subject’s 2012 General Information Sheet, the latest available at the Securities and Exchange Commission, latest available audited financial statements and available databases.

 

We interviewed with Ms. Rochelle Leyte (Front Desk Clerk ) who give us the address verification information.

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.70

UK Pound

1

Rs.84.51

Euro

1

Rs.68.16

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED  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.