MIRA INFORM REPORT

Report Date :

10.10.2013

IDENTIFICATION DETAILS

Name :	SOLANDA ENTERPRISES, INC.

Registered Office :	730 Anda cor. Solana & Magallanes Sts., Intramuros, Manila

Country :	Philippines

Financials (as on) :	2011

Date of Incorporation :	28.03.1979

Com. Reg. No.:	85368

Legal Form :	Private Company

Line of Business :	· Subject is a regional distributor of replacement parts and fishing accessories. · distributor of small gasoline engine

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

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^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Philippines

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

Company name & address

Company: SOLANDA ENTERPRISES, INC.

Address: Anda Cor. Magallanes Sts., Intra Muros Manila 1002

Country: Philippines

Service Type: Normal

FINDINGS

We conducted research and verification on SOLANDA ENTERPRISES, INC. Hereunder our report, viz:

VERIFICATION WITH SECURITIES & EXCHANGE COMMISSION (SEC):  SOLANDA ENTERPRISES, INC.

REGISTRATION –

a) Certificate No. : 85368

b) Date : March 28, 1979

c) Term : Fifty (50) years

Address : 730 Anda cor. Solana & Magallanes Sts., Intramuros, Manila

Telephone No. : (632) 527-8262

CAPITALIZATION -

- Authorized Capital Stock (Original) - P60,000,000.

- Amount Subscribed (Original) - P 2,000,000.

- Amount Paid Up (Original) - P 500,000.

- Par Value Per Share - P 1,000.

Primary Purpose - To buy, sell, lease, distribute, repair, assemble, import, export, trade and deal in

any and all kinds of goods, hardware, merchandise, appliances, machineries and products of the Phils.

and other countries, whether brand new, second-hand or used.

- INCORPORATORS/SHAREHOLDERS

Name/Nationality/Residence	Paid – Up (As of Year 1979)	Paid - Up (As of Year 2012)
Antonio G. Ngo - Filipino	P 87,500.	NIL
Patrick S. Ngo – Filipino 54 Tel Aviv St., Multinational Vill., Paranaque City	NIL	P 2,583,000
Betty Ngo - Filipino	P 50,000.	NIL
Paterson Y. Ngo – Filipino	NIL	P 2,583,000
Vicente G. Ngo – Filipino Samar cor. Romblon St., Asia World Complex, Paranaque City	P 87,500.	P 9,500,000.
Kenneth S. Ngo – Filipino 5 Mathew St., Multinational Vill., Paranaque	NIL	P 2,583,000.
Thomas Ngo – Filipino 706 Victorias St., Intramuros, Manila	P 100,000.	P 5,334,000.
Richardson Y. Ngo - Filipino	NIL	P 2,583,000.
Jose Ngo - Filipino	P 175,000.	P 5,334,000
Alexander S. Ngo - Filipino	NIL	P 3,125,000.
TOTAL	P 500,000. vvvvvvvvvv	P33,625,000. vvvvvvvvvvvv

BUSINESS ACTIVITY

Started its business as a regional distributor of replacement parts and fishing accessories. As business

progresses, it has become a major distributor of small gasoline engine. Through the years, the company

was awarded exclusive distributorship of different product lines and brands.

Product Lines includes –

a. Concrete Mixers g. Solar Energy

b. Plate Compactors h. Impact Drill

c. Porta Lift

d. Vibrating Screed

e. Power Tools

f. Power Generators

SITE INSPECTION: 730 Anda corner Solana & Magallanes Sts., Intramuros, Manila

The business site is situated in a residential/commercial area. It is accessible to all types of land transportation, both public & private. A four (4) storey concrete building protected with high concrete fence and steel gate. No signage on the premises.

Email Address : solanda@solanda.com

Telephone nos. : (632) 527 8261 / (632) 328 5351 to 56

Fax No. : (632) 527 1314 to 15922 2684

FINANCIAL CONDITION (Audited Financial Statement for years 2011, 2010, & 2009, as compiled) showed –

BALANCE SHEET

ASSETS	2011	2010	2009

Current Assets-
Cash	P 122,985.	P 115,457.	P 2.738,423.
Receivables	41,878,010.	52,662,403.	57,254,655.
Inventory	85,807,611.	42,857,362.	17,575,239.
Other Current Assets	521,222.	654.090.	428,257.
Total Current Assets	P128,329,828.	P 96,289,931.	P 77,996,575.

Non – Current Assets
Property & Equipment	P 14,607.871.	P15,339,617.	P15,490,010.
Total Non – Current Assets	P 14,607.871.	P15,339,617.	P15,490,010.

TOTAL ASSETS	P142,937,699. vvvvvvvvvvvvv	P111,628,931. vvvvvvvvvvvvv	P93,486,586. vvvvvvvvvvvv

LIABILITIES & STOCKHOLDERS EQUITY

Current Liabilities
Trade Payables	P 50,330,687.	P 17,337,910.	P 7,606,773.
Income Tax Payables	321,631.	394,399.	18,621.
Other Payables	211,192.	274,747.	637,689.
Total Current Liabilities	P 50,863,510.	P 18,007,058.	P 8,263,083.

Non – Current Liabilites
Accrued Benefit Cost	P 5,114,059.	P 3,744,552.	P 1,846,507.
Total Non – Current Liabilites	P 5,114,059.	P 3,744,552.	P 1,846,507.

TOTAL LIABILITIES	P 55,977,569.	P 21,751,611.	P 10,109,591

STOCKHOLDER’S EQUITY

Authorized Capital Stock – P60,000,000.

Subscribed & Paid Up	P 40,000,000.	P 40,000,000.	P 40,000,000.
Cummulative Profits	P 46,960,130.	P 49,877,320.	P 43,376,995.
Total Stockholder’s Equity	P 86,960,130.	P 89,887,320.	P 83,376,995.

TOTAL LIABILITIES & STOCKHOLDER’S EQUITY	P142,937,699. vvvvvvvvvvvvv	P111,628,931. vvvvvvvvvvvvv	P 91,486,586. vvvvvvvvvvvvv

INCOME STATEMENT

	2011	2010	2009
Revenues	P452,881,124.	P427,124,007.	P325,096,817.
Gross Profit	51,319,181.	50,048,172.	38,171,269.
Other Income	1,224,318.	1,317,268.	1,685,672.
Gross Income	52,543,500.	51,365,441.	39,857,311.
Distribution Cost	( 17,915,155.)	( 16.416,646.)	( 11,661,605.)
Admin Expenses	( 23,351,235.)	( 25,660,616.)	( 19,531,421.)
Net Income before Tax	11,277,110.	9,286,178.	8,664,284.
NET INCOME FOR THE YEAR	P 7,893,976. vvvvvvvvvvvvv	P 6,500,325. vvvvvvvvvvvvv	P 6,064,998. vvvvvvvvvvvvv

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.92
UK Pound	1	Rs.99.45
Euro	1	Rs.83.92

INFORMATION DETAILS

Report Prepared by :

MNL

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