MIRA INFORM REPORT

Report No. :	335766
Report Date :	10.08.2015

IDENTIFICATION DETAILS

Name :	8 SOURCES, INC.

Registered Office :	22 Road 15 cor. Villa Socorro St., Project 8, Quezon City

Country :	Philippines

Financials (as on) :	2014

Date of Incorporation :	02.02.2007

Legal Form :	Private Corporation

Line of Business :	Subject company is a dynamic enterprise in the business of sourcing, marketing and distribution of chemical commodities allied in the field of health sciences

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 :	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 – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Philippines

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 shocks better than its regional peers due to less 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 outsourcing industry. The current account balance has recorded consecutive surpluses since 2003, international reserves remain at comfortable levels, and the banking system is stable; the stock market resumed an upward trajectory in 2014, climbing to new record highs during the first four months of 2015. Efforts to improve tax administration and management of expenditures have helped ease the Philippines' tight fiscal situation and reduce debt levels. Nevertheless, government taxation and spending remain weak. The Philippines has received investment-grade credit ratings on its sovereign debt under the AQUINO administration and has had little difficulty financing its deficits. Economic growth has accelerated, averaging 6.0% per year from 2011-2014, compared with 4.5% under the MACAPAGAL-ARROYO government; competitiveness has improved; and foreign direct investment hit a historic high in 2014, although it continues to lag compared with the rest of the region. Unemployment has remained high, hovering at around 7% of the population, and underemployment is nearly 20%. At least 40% of the employed work in the informal sector and poverty afflicts about a quarter of the population. The AQUINO administration has been working to boost expenditures for education, health, transfers to the poor, and other social spending programs. Infrastructure remains underfunded and the government is relying on the private sector to help with major projects under its Public-Private Partnership program. Other long term challenges include reforming governance, the judicial system, and the regulatory environment, and improving the ease of doing business. The Philippine Constitution and other laws restrict foreign ownership in important activities/sectors - such as land ownership and public utilities. Some progress has been made in establishing a Customs Modernization Act to meet international standards and commitments.

Source : CIA

ANTECEDENT INFORMATION

Company: 8 SOURCES, INC.

Address: 22 Road 15 cor. Villa Socorro St., Project 8,

Quezon City

Country: Philippines

Telephone Nos.: (632) 332 1212; 401 8794

Service Type: Normal

FINDINGS

We conducted research and investigation on 8SOURCES, INC. and showed the following, viz:

VERIFICATION WITH SECURITIES & EXCHANGE COMMISSION (SEC): 8SOURCES, INC.

Legal Entity       -     PRIVATE CORPORATION

REGISTRATION – (Per General Information Sheet (GIS) for Year 2014)

a) Certificate No. : CS200701532

b) Date : February 02, 2007

c) Term : Fifty (50) years

d) Corporate Tax No. : 006 613 793

e) Company Type : Stock Corporation

f) Industry Classification : Medical, Surgical & Dental Supplies, Retailing

g) Telephone No. : (63) 2 454 9474

h) Website : www.8sources.com

i) Email : info@8sources.com

Address: No. 22 Road 15 Villa Socorro, Project 8, Bahay Toro, Quezon City

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

CAPITALIZATION - (As of 2014)

Authorized Capital Stock - 5,000,000. – 50,000 Shares Common

Amount Subscribed - 5,000,000.

Amount Paid Up - 5,000,000.

Par value per Share - 100.

PRIMARY PURPOSE: Trading

STOCKHOLDERS/DIRECTORS/OFFICERS (As of 2014)

Name / Nationality	Position	Amount Paid Up
Enrico G. Villanueva	President	1,000,000.
Raquel P. Villanueva	Director	750,000.
Ronald G. Villanueva	Director	750,000.
Manuel G. Asensi	Chairman/Treasurer	1,000,000.
Cherry G. Asensi	Director	750,000.
Trisha C. Asensi	Director	740,000.
Virginia D. Del Rosario	Director	10,000.
	TOTAL	5,000,000. vvvvvvvvvvvvvv

BUSINESS ACTIVITY

As gathered, subject company is a dynamic enterprise in the business of sourcing, marketing and distribution of chemical commodities allied in the field of health sciences. Started in 1994 as an entrepreneurial business – a trusted market partner known for providing high performance products and reliable supply solutions in the Phils. It has trade coverage spanning the diverse Phil. pharmaceutical, veterinary, food & cosmetics industries. Products include – Pharma Bulk Drugs; Veterinary Raw Materials; Extract Products; Food Ingridients; and Complementary Health Chemicals.

The Phil. FDA has issued an LTO No. CFRR-NCR-FI-5538 with validity up to Oct. 23, 2016, under Class F I.

Contact Person: Enrico G. Villanueva info@8sources.com 09228562966

Address: #22 Road 15, Project 8, Quezon City, NCR 1106 Philippines

Telephone Nos.: (63) 2 332-1212/ 401-8794/ 454-9474

FINANCIAL CONDITION

(Audited Financial Statement for years 2014, 2013, & 2012, as compiled)

Balance Sheet

ASSETS
	2014	2013	2012
Current Asset
Cash in Hand & in Bank	3,851,167.	2,928,883.	1,985,702.
Accounts Receivable	6,082,949.	4,237,749.	6,305,796.
Inventories	6,907,263.	1,792,842.	843,555.
Pre-Payments	1,017,329.	1,187,031.	NIL
Total Current Assets	17,858,708.	10,146,505.	9,135,053.

Non- Current Asset
Property & Equipment, net	11,404,624.	3,612,185.	3,939,580.
Total Non Current Assets	11,404,624.	3,612,185.	3,939,580.
Total Assets	29,263,332. vvvvvvvvvvvv	13,758,690. vvvvvvvvvvvvv	13,074,633. vvvvvvvvvvvvv
LIABILITIES AND STOCKHOLDER’S EQUITY
Liabilities
Loan Payable	4,807,915.	1,315,743.	2,923,872.
Income Tax Payable	1,722,546.	206,850.	138,368.
Total Liabilities	6,530,461.	1,522,593.	3,062,240.

Stockholder’s Equity
Capital Stock	5,000,000.	5,000,000.	3,000,000.
Retained Earnings	17,732,871.	9,236,097.	7,012,393.
Total Stockholder’s Equity	22,732,871.	12,236,097.	10,012,393.
Total Liabilities & Equity	29,263,332. vvvvvvvvvvvvv	13,758,690. vvvvvvvvvvvvv	13,074,633. vvvvvvvvvvvvv

INCOME STATEMENT

Sales	202,764,967.	151,702,877.	139,055,544.
Gross Profit	31,336,753.	16,101,954.	13,109,780.
Operating & Administrative Expenses	( 19,198,505.)	( 10,068,091.)	( 9,340,580.)
Net Income Before Tax	12,138,248.	6,033,863.	3,796,200.
NET INCOME	8,496,774. vvvvvvvvvvvv	4,223,704. vvvvvvvvvvvvv	2,638,439. vvvvvvvvvvvvv

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.81
UK Pound	1	Rs.98.93
Euro	1	Rs.69.66

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	TRU

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%)

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