MIRA INFORM REPORT

 

 

Report No. :

357635

Report Date :

31.12.2015

 

IDENTIFICATION DETAILS

 

Name :

ARTIC-FOREST PRODUCTS  INC.

 

 

Registered Office :

Sangandaan, Tandang Sora Ave., Postal code & City 1116

 

 

Country :

Philippines

 

 

Financials (as on) :

2013

 

 

Date of Incorporation :

04.06.2008

 

 

Legal Form :

Private Corporation

 

 

Line of Business :

Importation, distribution & installation of finished wood materials.               

 

 

No. of Employee :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

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 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

 

ANTECEDENT INFORMATION:

 

Company             :                  ARTIC-FOREST PRODUCTS  INC.

Address               :                  Sangandaan, Tandang Sora Ave., Postal code & City 1116

Phone No.           :                   2 - 453 0367

Fax No.                :                  2 - 453 7746

Service Type        :                  Normal     

Country                :                  Philippines

 

 

FINDINGS

 

We conducted research and verification on ARCTIC-FOREST DEVELOPMENT INC. Hereunder our report, viz:

 

 

LEGAL ENTITY 

 

Private Corporation

 

 

VERIFICATION WITH SECURITIES & EXCHANGE COMMISSION (SEC)

 

ARCTIC-FOREST PRODUCTS INC.

 

 

REGISTRATION –  (Per General Information Sheet for the Year 2014, filed Sept. 10, 2015)

 

a)     Certificate No.      :        CS200808674

b)    Date                     :        June 04, 2008

c)     Term                    :        Fifty (50) years.                 

d)    Corp. Tax No.      :        007 050 982 000

e)     Type of

Organization         :       Stock Corporation 

f)     Email                    :       info@arcticfp.com

g)    Fax No.                :        (63) 2 453 0367

h)     Telephone No.     :        (63) 2 453 7746   

 

                                                            

Office/Business Address :    No. 22 Tandang Sora Avenue, Baesa, Quezon City, Metro Manila                

 

           

PRIMARY PURPOSE     

 

 Importation, distribution & installation of finished wood materials.               

                                                         

 

CAPITALIZATION                                              

                                                                                                                    (Php)

                                                          No. of Shares           Par Value/share             Amount                                                                             

                        

Authorized Capital Stock :        

 

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

                                                                                                                  vvvvvvvvv

 

  Subscribed Capital       -          50,000           -           P100.00               -        5,000,000. 

                                                                                                                          vvvvvvvvv

    

Paid Up Capital            -          25,325           -           P100.00               -        2,532,500.

                                                                                                                 vvvvvvvvv  

        

SHAREHOLDERS/DIRECTORS/OFFICERS (*)

 

            Name/Designation

  Paid – Up (Php)  

1.Hannu Tapani Virtanen      -   Chairman

        336,875.

2.Pirjo Hannele Virtanen       -   Director

          15,625.

3.Richard G. Yang                -   Director

               100.

4. Leonard Tiong                  -   Corp. Sec./Treasurer

         250,000.

5.Maritess R. Guevarra         -   President

         250,000.

6.Florante M. Nieves             -   Director

         226,875.

7.ARVOKAS Holdings Inc.    -    

      1,453,025.

                          TOTAL

      2,532,500.  

      vvvvvvvvv

 

                       

BUSINESS ACTIVITY   

    

Since inception, continue to engage in the business trading on wholesale basis and importing of goods such as wood by products & wood materials, including but not related products, as well as providing necessary services such as installation and set up thereof. The company was established to meet large demand for beautiful, durable & affordable wood products which can be used for outdoor & indoor, The best type of wood to meet these needs are from “finnish pine tree”, which are harvested at the average age of 70 years for high density (hard texture) and beautiful wood grain.

 

 

            Email: infoarcticforestproductsinc.@gmail.com

             Address: 83 AB Quirino Highway, Brgy. Balon Bato, Quezon City

            Website:  www.arcticfp.com

 

 

FINANCIAL CONDITION

 

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

 

Balance Sheet

 

          2013 (Php)

        2012 (Php)

          2011 (Php)

                             Assets

 

 

 

Current Assets

 

 

 

     Cash & Cash Equivalent

           1,298,103.

          2,335,566.

              2,822,014.

     Merchandise Inventory

           6,381,199.

          7,745,294.

              5,368,141.

     Account Receivables

           4,457,078.

          2,564,381.

              1,694,538.     

     Amount owed by Related Parties

                NIL

              266,795.

              1,304,118.

     Prepayments & Other Current Assets

                 38,775.

                12,389.

                 296,943.

             Total Current Assets

         12,175,155.

        12,924,425.

           11,485,754.

 

 

 

 

Non - Current Assets

 

 

 

     Property & Equipment

            1,440,775.

          1,509,102.

                 572.468.

     Other Current Assets

                452,071.

             404,641.

                 NIL          

              Total Non Current Assets

            1,892,846.

          1,913,761.

                 572,468.

TOTAL ASSETS

          14,068,001.

         vvvvvvvvvvv              

        14,838,168.

       vvvvvvvvvvv

           12,058,222.

           vvvvvvvvvvv

 

 

 

 

                   Liabilities & Stockholder’s Equity

 

 

 

Current Liabilities

 

 

 

       Accounts Payable & Accrued Expenses

             5,997,122.

         3,114,887.

            6,68,162.

       Current Portion of Loan Payable

            1,900,879.

         3,550,125.

            4,754,104.

       Income Tax Payable

                  NIL

              79,738.

                 NIL

       Advances from Stockholders

                  NIL        

            149,500.

                 NIL         

            Total Current Liabilities

            7,898,001.

         6,894,250.

           11,022,266.

 

 

 

 

Non-Current Liabilities

 

 

 

        Deposit fo future stocks subscription

            2,780,000.

         5,000,000.

                  NIL

        Deferred Tax Liability

                  18,347.

               NIL

                   NIL

        Loan Payable – non current portion

            1,773,136.

         2,586,559.

                371,488.

            TOTAL NON CURRENT LIABILITIES

            4,571,483.

         7,586,559.

           11,393,754.

            TOTAL LIABILITIES

          12,469,484.

       14,480,809.

           11,393,754.

 

                                                                        

Stockholder’s Equity

 

 

 

       Capital Stock

            2,532,500.

              312,500.

                 312,500.

       Retained Earnings (Deficit)         

         (     933,983.)

                44,877.

                 351,968.

            Total Stockholder’s Equity

            1,598,517.

              357,377.

                 664,468.

TOTAL LIABILITIES &   STOCKHOLDERS

           EQUITY

          14,068,001.

           vvvvvvvvvv

        14,838,186.

       vvvvvvvvvvv

           12,058,222.  

           vvvvvvvvvvv

 

 

                                                                    Income Statement

Sales

           27,962,764.

         28,090,379.

          20,583,314.

Gross Profit

           11,880,245.

         13,667,976.

          10,648,480.

General & Administrative Expenses

         (10,948,210.)

        (12,416,457.)

         (  8,779,649.)

Selling & Marketing Expenses

          (  1,267,431.)

        (     928,232.)

         (  1,295,997.)

Net Income/(Loss) from operation

                 335,396.

              323,827.

                592,834.

Other Income/(Charges)

           (   387,022.)

        (     357,018.)

         (     271,573.)

Net Income/(Loss) before Income Tax

           (   722,418.)

        (       33,731.)

         (     301,261.)

NET INCOME/(LOSS)

           (   978,860.)

           vvvvvvvvvvv

        (     307,091.)

        vvvvvvvvvvvv

                220,147.

          vvvvvvvvvvv

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.42

UK Pound

1

Rs.98.55

Euro

1

Rs.72.60

PHP

1

Rs.1.41

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.