MIRA INFORM REPORT

 

 

Report Date :

05.08.2014

 

IDENTIFICATION DETAILS

 

Name :

OVERSEA WARP KNITTING CORPORATION

 

 

Registered Office :

Mayer Knitting Corp.   37 Damar Loop, Damar Village, Balintawak, Quezon City, Metro Manila, Philippines 1115

 

 

Country :

Philippines

 

 

Financials (as on) :

2013

 

 

Date of Incorporation :

24.05.1971

 

 

Legal Form :

Private Corporation

 

 

Line of Business :

Manufacture of all kinds of knitted fabrics.

 

 

No. of Employees

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 :

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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Philippines

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

PHILIPPINES - ECONOMIC OVERVIEW

 

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 has received several credit rating upgrades on its sovereign debt, and has had little difficulty tapping domestic and international markets to finance its deficits. 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

 

Company:                 OVERSEA WARP KNITTING CORPORATION

Address:                   Mayer Knitting Corp.   37 Damar Loop, Damar Village, Balintawak,

        Quezon City, Metro Manila, PHILIPPINES 1115

Service Type:            Normal

 

 

FINDINGS

 

We conducted research and investigation on OVERSEA WARP KNITTING CORPORATION and showed the following, viz:

 

VERIFICATION WITH SECURITIES & EXCHANGE COMMISSION (SEC):  OVERSEA WARP KNITTING

CORPORATION

 

Legal Entity       -     PRIVATE CORPORATION

 

 

REGISTRATION

 

Certificate No.           :      0000044243

Date                          :      May 24, 1971

Term                         :      Fifty (50) years

Corporate Tax No.     :     000-297-011

Telephone No.          :      (63) 2 9836836  

 

Address :     223 Ny Compound, Bo. Bagbaguin, Kalookan City, Metro Manila

 

 (Note:  Currency in Philipine Peso, unless otherwise specified)

           

     

CAPITALIZATION

 

Authorized Capital Stock                           -      4,500,000.        45,000.  Shares Common

 

Amount Subscribed & Paid Up                  -      4,500,000.

    

Par value per share                                -               100.

 

 

PRIMARY PURPOSE

 

Manufacture of all kinds of knitted fabrics.

 

STOCKHOLDERS/DIRECTORS/OFFICERS

 

 

              Name / Nationality

Position

Amount  Paid Up

1.  Mary Cheung,  Pilipino

Treasurer / Director

     1,800,000.

2.  Andrew Cheung,  Pilipino

President / Director

        450,000.

3.  Candice Cheung,  Pilipino

Director

        450,000.

4.  Catherine Cheung,  Pilipino

Director

        450,000.

5.  Cheryl Chan,  Pilipino

Director

        450,000.

6.  LILY SEE,  CHINESE

Director

        450,000.

7.  Grace Tagudin,  Pilipino

Corp. Secretary / Director

        450,000.

                                                                           Total                                   4,500,000.  

                                                                                                                    vvvvvvvvvv

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS ACTIVITY:  As gathered from Online search, subject firm is an importer of knitting fabrics and considered one of the leading supplier in the local garment industry. As reported, its business address is at No. 8 Ny Compound, Bagbaguin Road, Kaloocan City. Telephone No. (63) 2 9393455; Fax No. (63) 2 9396885.

 

(Note: Subject’s, as provided us, in Mayer Knitting Corp. upon verification, disclosed that said company is a duly registered firm, owned, managed and operated by the group involved with Oversea Warp Knitting. It has the same set of stockholders, Directors & Officers. For other information, please see Other Information below.)

 

 

FINANCIAL CONDITION

 

(Audited Financial Statement for years 2013, 2012, & 2011, as compiled)

 

Balance Sheet

 

 

                                                                   ASSETS

         

         2013

        2012

       2011

          Current Assets

 

 

 

Cash & Cash Equivalent

         673,775.

        567,226.

     1,032,237.

Trade & Other Receivabes

      3,959,659.

     3,736,168.

         NIL

Inventories

  114,100,591.

 117,818,288.

 120,977,987.

Pre Payments

      9,292,830.

     9,120,685.

     9,859,538.

         Total Current Assets

  128,026,855.

 131,242,367.

 131,869,762.

 

 

 

 

         Non – Current Assets

 

 

 

Property, Plant  and Equipment, Net

    24,822,490.

    27,131,035.

   27,680,015.

         Total Non-Current Assets

    24,822,490.

    27,131,035.

   27,680,015.

         Total Assets

  152,849,345.

vvvvvvvvvvvv

  158,373,402.

vvvvvvvvvvvvv

 159,549,777.

vvvvvvvvvvvv

                                               

                                                   LIABILITIES AND EQUITY

 

         Current Liabilities

 

 

 

Loans & Borrowings

    58,000,000.

    58,000,000.

   58,000,000.

Trade & Other Payables

    53,523,296.

    63,456,191.

   68,366,635.

Income Tax Payable

         489,518.

         521,292.

        339,368.

          Total Current Liabilities

  112,012,814.

  121,977,483.

 126,706,003.

 

 

 

 

          Equity

 

 

 

Capital Stock

      4,500,000.

      4,500,000.

     4,500,000.

Retained Earnings

 

 

 

    Appropriated

    22,000,000.

    22,000,000.

   22,000,000.

    Unappropriated

    14,336,531.

      9,995,918.

     6,343,774.

          Total Equity

    40,836,531.

    36,495,918.

   32,843,774.

          Total Liabilities & Equity

  152,849,345.

  vvvvvvvvvvv

  158,473,402.

  vvvvvvvvvvv

 159,549,777.

 vvvvvvvvvvv

 

Income Statement

 

Sales

   66,452,434.

    57,579,257.

    54,081,400.

Gross Profit

   10,942,566.

    10,391,188.

      9,492,100.

Operating Expenses

(    4,741,691.)

(     5,173,899.)

(     5,148,341.)

Net Income before tax

     6,200,875.

      5,217,289.

      4,343,760.

NET INCOME

     4,340,613.

     vvvvvvvvv

      3,652,144.

      vvvvvvvvv

      3,040,632.

      vvvvvvvvv

 

 

OTHER INFORMATION  

 

MAYER KNITTING CORPORATION is a duly registered corporation, per registration certificate no. AS92001095 dated January 1, 1992, and business address at Tindalo Road, Sta. Clara, Sta. Maria, Bulacan. Business activity is manufacture of all kinds of knitted fabrics. It has an authorized capital stock of 50 Million with Ms. Mary Cheung as the majority stockholder. 2013 financial highlight, showed the following, as compiled 

 

Total Current Assets              -     43,182,799.

Total Assets                            -    80,243,286.

Total Liabilities                       -    60,692,359.

Total Equity                            -    19,550,927.

Sale                                       -    34,170,576.

Net Income                            -      2,303,485.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.02

UK Pound

1

Rs.102.69

Euro

1

Rs.81.91

                

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SDA

               

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.