MIRA INFORM REPORT

 

 

Report Date :

23.12.2013

 

IDENTIFICATION DETAILS

 

Name :

RAINBOW  PHILIPPINES

 

 

Registered Office :

(A Division of KKC SERVICES, INC.)

7F Makati Executive Center, 114 L.P. Leviste corner V.A. Rufino Streets, Salcedo Village, Makati City 1127

 

 

Country :

Philippines

 

 

Date of Incorporation :

06.03.1997

 

 

Legal Form :

A Private Limited Company

 

 

Line of Business :

Master Franchisee in the Phils. of Roto Rooter Plumbing Services, USA.

 

 

No. of Employees :

Not Available

 

 

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

 

Status :

Moderate

Payment Behaviour :

Slow

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 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 growth, which cooled from 7.6% in 2010 to 3.9% in 2011, expanded to 6.6% in 2012 - meeting the government's targeted 6%-7% growth range. The 2012 expansion partly reflected a rebound from depressed 2011 export and public sector spending levels. The economy has weathered global economic and financial downturns 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 rapidly expanding business process outsourcing industry. The current account balance had recorded consecutive surpluses since 2003; international reserves are at record highs; the banking system is stable; and the stock market was Asia's second best-performer in 2012. Efforts to improve tax administration and expenditure management have helped ease the Philippines' tight fiscal situation and reduce high debt levels. The Philippines received several credit rating upgrades on its sovereign debt in 2012, and has had little difficulty tapping domestic and international markets to finance its deficits. Achieving a higher growth path nevertheless remains a pressing challenge. Economic growth in the Philippines averaged 4.5% during the MACAPAGAL-ARROYO administration but poverty worsened during her term. Growth has accelerated under the AQUINO government, but with limited progress thus far in bringing down unemployment, which hovers around 7%, and improving the quality of jobs. Underemployment is nearly 20% and more than 40% of the employed are estimated to be working in the informal sector. The AQUINO administration has been working to boost the budgets for education, health, cash transfers to the poor, and other social spending programs, and is relying on the private sector to help fund major infrastructure projects under its Public-Private Partnership program. Long term challenges include reforming governance and the judicial system, building infrastructure, improving regulatory predictability, and the ease of doing business, attracting higher levels of local and foreign investments. The Philippine Constitution and the other laws continue to restrict foreign ownership in important activities/sectors (such as land ownership and public utilities)

Source : CIA


ANTECEDENT INFORMATION

 

Tradestyle:                RAINBOW  PHILIPPINES

Company:                 (A Division of KKC SERVICES, INC.)

Address:                   7F Makati Executive Center, 114 L.P. Leviste corner

        V.A. Rufino Streets, Salcedo Village, Makati City 1127

Country:                    Philippines

Service Type:            Normal

Phone:                      +63 2 893 8678

Fax No.:                    +63 2 812 9009

Contact Person:         Victor G. Puyat

 

 

FINDINGS

 

We conducted research and verification on  RAINBOW PHILIPPINES, a Tradestyle, a Division of KKC SERVICES, INC. Hereunder our report, viz:

 

On-line verification with Securities & Exchange Commission disclosed that Rainbow Philippines has no record with the Commission. Likewise, 3 other companies, such as, Asiac operation-Rainbow Phils. Inc., registration Revoked; Rainbow Phils. International Co. Ltd.; and Rainbow Phils. International Corp., has no with the Commission.

 

Gathered that Rainbow Phils. is a registered general distributor of “Rainbow” Cleaning System in the Phils., by Rexair LLC, Michigan, USA. Further gathered that Rexair LLC, sent a letter dated Sept. 27, 2012 to Victor G. Puyat of KKC Services Inc. pertaining to the 2012-2013 Renewal of Rainbow International Distributor Agreement. Website: www.rainbowphilippines.com

 

 

VERIFICATION WITH SECURITIES & EXCHANGE COMMISSION (SEC):  KKC SERVICES, INC.

 

-                 REGISTRATION –  (Per 2013 SEC General Information Sheet)

                                                        

a)                  Certificate No.     :        A199704153

b)                  Date                    :        March 6, 1997

c)                   Term                   :        Fifty (50) years.

 

Address                           :        6F Makati Executive Center, 114 L.:P. Leviste corner V. A. Rufino

                                                Streets, Salcedo Village, Makati City

 

            Telephone No.                  :        +63 2 - 893 8688 / - 893 8693 / - 750 1370 / -535 2165

  

            Fax No.                            :        +63 2 – 812 9009

 

 

-              PRIMARY PURPOSE      :         To establish, conduct, maintain and carry on business.

 

CAPITALIZATION  

 

(Per 2013 SEC General Information Sheet)                                          

                                                                                                                                                                  (Php)  

                                                                No. of Shares           Par Value/share                    Amount   

                                                                          

               Authorized Capital Stock  -                                                                                       

 

                          Common              -               50,000               -        P100.00                 -          5,000,000                         

 

             Subscribed & Paid Up       -                12,500         -        P100.00                 -          1,250,000

 

           

 SHAREHOLDERS

 

(Per 2013 SEC General Information Sheet)

 

 

        Names                      No. of Shares     

  Paid – Up (Php)

  (2013 SEC-GIS)

KKC Holdings Inc.                  12,495

      1,249,500

Victor G. Puyat                                1

               100

Antoniette T. Puyat                          1

               100

Victor Mark T. Puyat                        1

               100

John Christopher Arnaldo                1

               100

Michael John T. Puyat                     1

               100

 

      1,250,000

      vvvvvvvvv

 

 

DIRECTORS/OFFICERS

 

(Per 2013 SEC General Information Sheet)

 

            Name                                Nationality

       Designation

Victor G. Puyat                                  Pil.

      Chairman

Antoniette T. Puyat                            Pil.

      Treasurer

Victor Mark T. Puyat                          Pil.

      President

Ma. Monica T. Puyat – Leonor           Pil.

      Corporate Secretary

Antonina T. Puyat – Santiago            Pil.

      Asst. Corp. Sec.

 

Victor G. Puyat -  A member of a political family from Pampanga and involved in various  businesses, particularly, in banking and real estate. The son of a former Senator  of the Republic of the Phils. Currently, Chairman/President of KKC Inc.

 

As President of Group Developers Inc. (GDI), he was involved as one of the

Respondents in a Supreme Court case No. GR 159189.

 

BUSINESS ACTIVITY   

 

Master Franchisee in the Phils. of Roto Rooter Plumbing Services, USA.

 

 

FINANCIAL CONDITION

 

(Audited Financial Statement for years 2012, 2011, & 2010, as compiled)

 

BALANCE SHEET

 

 

              2012 (Php)

              2011 (Php)

             2010 (Php)

                             Assets

 

 

 

Current Assets

 

 

 

     Cash on Hand and in Banks

369,052

298,834

                    288,216

     Trade & Other Receivables

6,611,452

9,374,031

                 6,077,689

     Other current assets

6,825,485

6,326,469

                 4,303,954

        Total Current Assets

13,805,989

15,972,334

               10,669,859

 

 

 

 

Non-Current Assets

 

 

 

     Property & Equipment, NET

2,430,049

2,809,394

                 1,895,178

     Other Non Current Assets

469,558

563,876

                    693,634

         Total Non-Current Assets

2,899,607

3,373,270

                 2,588,812

TOTAL ASSETS

16,705,596

 

19,345,604

 

              13,258,670

 

 

         Liabilities & Stockholder’s Equity

 

 

 

Current Liabilities

 

 

 

      Trade & other Payables

2,499,242

2,793,615

                    278,900

      Other current liabilities

                     138,744

                     857,061

                    336,495

            Total Current Liabilities

2,637,986

                3,650,676

                    615,395

 

 

 

 

Non Current Liabilities

 

 

 

      Advances from Affiliates

                25,032,756

                23,608,890

               20.938,299

           Total Non Current Liabilities

                25,032,756

                23,608,890

               20.938,299

TOTAL LIABILITIES

27,670,742

27,259,566

               21,553,694

 

 

 

 

 Equity

 

 

 

       Paid Up Capital

1,250,000

1,250,000

                1,250,000

      Retained Earnings (Deficit)

(  12,215,146)

(  9,163,962)

             (  9,545,023)

             Total  Equity

(  10,965,146)

(  7,913,962)

                8,295,023)

TOTAL LIABILITIES &  EQUITY

               16,705,596

 

               19,345,604

 

              13,258,670

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                  

 

 INCOME STATEMENT

 

Revenues

              14,210,727

              14,970,627

          9.978,216

Gross Profit

                4,993,074

                7,694,323

           4,907,249

General  & Admin Expenses

(  8,044,258)

             (  7,150,666)

        (   4,639,909)

Net Income (Loss) before Tax

(  3,051,184)

                  543,657

              276,340

Net Income (Loss) for the Year

(  3,051,184)

 

                  381,061

 

              178,195

 

 

 

 

 

 

 

 

                                                            END OF REPORT


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.24

UK Pound

1

Rs.101.80

Euro

1

Rs.84.87

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.