MIRA INFORM REPORT

 

 

Report No. :

354900

Report Date :

22.12.2015

 

IDENTIFICATION DETAILS

 

Name :

CATHAY PACIFIC STEEL CORPORATION

 

 

Registered Office :

F. P. Felix Avenue, Cainta,  Rizal

 

 

Country :

Philippines

 

 

Financials (as on) :

2014

 

 

Date of Incorporation :

20.11.1987

 

 

Legal Form :

Private Corporation

 

 

Line of Business :

Subject engage in the business of manufacturing, smelting and processing of steel products

 

 

No. of Employee :

476

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 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

 

Company naem and address

 

Company:                 CATHAY PACIFIC STEEL CORPORATION

Address:                   F. P. Felix Avenue, Cainta,  Rizal

Country:                    Philippines

Service Type:            Normal

                      

 

FINDINGS

 

We conducted research and verification on CATHAY PACIFIC STEEL CORPORATION. Hereunder our report, viz:

 

 

LEGAL ENTITY 

 

Private Corporation

 

 

VERIFICATION WITH SECURITIES & EXCHANGE COMMISSION (SEC)

 

REGISTRATION –  (Per General Information Sheet for the Year 2014, filed April 21, 2015)

 

a)     Certificate No.     :        0000146425

b)    Date                    :        November 20, 1987

c)     Term                   :        Fifty (50) years. Stock Corporation                

d)    Corp. Tax No.      :        000 090 225 000

e)     Type of

            Organization    :         Stock Corporation

 

Address                          :          F. P. Felix Avenue, Cainta, Rizal       

 

Telephone No.                 :        655 2271 / 633 8033

 

Fax No.                          :          655 2280 / 633 8048 

 

No. of Officers             

& Supervisors               :           20

 

No. of Rank & File

Employees                   :            476

PRIMARY PURPOSE    :         Manufacturing Steel Products

 

                                      

CAPITALIZATION                                            

                                                                                                                                       (Php)

                                                                No. of Shares           Par Value/share                    Amount                                                                               

Authorized Capital Stock :        

 

        Common                         -           100,000,000       -        P10.00                 -   1,000,000,000.

                                                                                                                                   vvvvvvvvvvvvv

 

        Subscribed & Paid Up       -             34,059,400         -        P10.00                 -      340,594,000.

                                                                                                                                     vvvvvvvvvvv   

        

 

SHAREHOLDERS/DIRECTORS/OFFICERS (*)

 

            Name/Nationality/Designation

  Paid – Up (Php)  

1.Olivia T. Ng               -    Chairperson    

         17,029,700.

2.Pacita O. Chua          -    Co-Chairperson

         54,495,040.

3.David O. Chua           -    President

           4,257,420.

4.Anthony O. Chua       -    Treasurer

           4,257,420.

5.Michael T. Ng            -    Corporate Secretary

         16,736,800.

6.Paterno Ong Hong     -    Senior Vice President

           6,811,880.

 

7.BENGOLD HOLDINGS INC.

   102,178,200.

8.Jose Balonan

     27,247,520.

9.Pedro Balonan

     20,435,640.

10.Evelyn Balonan

       9,059,800.

11.Fe Tan

       3,405,940.

12.Rosario Balonan

       3,405,940.

13.Jefrey T. Ng

     24,175,350.

14.James L. Uy

       6,811,880.

15.Ronald L. Uy

       6,811,880.

16.John T. Ng, Jr.

     16,736,790.

17.Oliver James T. Ng

     16,736,790.

                            TOTAL

   340,594,000.

   vvvvvvvvvvv

 

(*) All Filipinos

 

 

BUSINESS ACTIVITY 

 

Subject company, continue to engage in the business of manufacturing, smelting and processing of steel products. One of the leading manufacturer of long steel and rebar, high beam. Has 3 manufacturing plant sites in Cainta, Rizal & Novaliches, Quezon City, Metro Manila. Established in 1973,  incorporated in 1987.

 

Its company President, David O Chua is a Chinese-Filipino businessman and a  Stockbroker. Served as Director of Philippine Stock Exchange; Asia Pacific Capital Equities & Securities Corp. 

 

Email Address:  cepasco@compass.com.ph

Telephone No. 63-2 633 8033

Office address:  25/F Galeria Corp. Center, Ortigas Avenue corner EDSA, Pasig, 

                              Metro Manila

 

 

FINANCIAL CONDITION

 

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

 

Balance Sheet

 

 

          2014 (Php)

        2013 (Php)

          2012 (Php)

                             Assets

 

 

 

Current Assets

 

 

 

     Cash & Cash equivalent

       318,423,196.

      530,283,549.

         158,250,997.

      Receivables

       120,463,184.

        44,981,397.

         142,380,780.

     Inventories 

       896,018,708.

      869,113,317.

         871,866,515.

     Other Current Assets

       163,731,312.

      225,077,100.

         206,143,540.

             Total Current Assets

    1,498,636,400.

   1,669,455,363.

      1,378,641,832.

 

 

 

 

Non - Current Assets

 

 

 

     Available for Sale financial assets

            1,249,500.

          1,249,500.

             1,249,500.

     Property, Plant & Equipment

        610,470,617.

     672,057,087.

        760,657,754.

     Deferred Tax Assets

            4,371,039.

          3,621,039.

             2,961,039.

     Other Non Current Assets

          13,214,392.

        11,696,757.

           15,538,320.

           Total Non-Current Assets

        629,305,548.

      688,623,901.

         780,406,613.

TOTAL ASSETS

    2,127,941,948.

    vvvvvvvvvvvvv              

  2,358,079,264.

  vvvvvvvvvvvvv

      2,159,048,445.

      Vvvvvvvvvvvvv

 

 

 

 

                   Liabilities & Stockholder’s Equity

 

 

 

Current Liabilities

 

 

 

       Accounts & Other Payables

       944,516,667.

     476,239,837.

          752,804,651.

       Acceptance Payable

        470,281,699.

     999,759,171.

          716,923,904.

       Other Current Liabilities

          29,388,116.

     168,811,490.

              7,321,486.

            Total Current Liabilities

    1,444,186,482.

  1,644,810,498.

      1,477,050,041.

 

 

 

 

Non - Current Liabilities

 

 

 

       Retirement Benefit Obligation

         14,570,127.

        12,070,127.

              9,870,127.

       Advances from Affiliates

               250,000.

              250,000.

                 250,000.

             Total Non Current Liabilities

          14,820,127.

        12,320,127.

           10,120,127.

TOTAL LIABILITIES

    1,459,006,609.

   1,657,130,625.

      1,487,170,168.

 

                                                                        

 

 

 

 

                   Stockholder’s Equity

 

 

 

       Capital Stock

        340,594,000.

      340,594,000.

         340,594,000.

       Retained Earnings         

        328,341,339.

      360,354,639.

         331,284,277.

           Total Stockholder’s Equity

        668,935,339.

      700,948,639.

         671,878,277.

TOTAL LIABILITIES &   STOCKHOLDERS

           EQUITY

    2,127,941,948.

    vvvvvvvvvvvvv

   2,358,079,264.

  vvvvvvvvvvvvvv

      2,159,048,445.

      vvvvvvvvvvvvv

 

 

 

 

Income Statement

Sales

    5,098,218.958.

   4,750,315,655.

     3,114,566,344.

Gross Profit

        276,830,835.

      247,072,961.

         173,677,277.

Selling & Administrative Expenses

     ( 203,035,310.)

  (   197,844,725.)

     (   172,083,735.)

Operating Profit

          73,795,525.

        49,228,236.

              1,593,542

Other Income / Charges

     (   29,030,346.)

  (       7,748,985.)

            27,230,046.

Profit Before Tax

         44,765,179.

        41,479,251.

            28,823,588.

 Profit

         31,338,576. 

      vvvvvvvvvvvv

        29,070,362.   

    vvvvvvvvvvvv

            20,211,678.

      vvvvvvvvvvvvv

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.32

UK Pound

1

Rs.98.99

Euro

1

Rs.72.13

PHP

1

Rs.1.40

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

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%)

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.