MIRA INFORM REPORT

Report No. :	302142
Report Date :	08.01.2015

IDENTIFICATION DETAILS

Name :	SS COMMERCIAL INC.

Formerly Known as :	SHIV SHAKTI COMMERCIAL INC.

Registered Office :	2575 Ganesh Tower, Manila

Country :	Philippines

Financials (as on) :	2013

Date of Incorporation :	28.02.2008

Legal Form :	Sole Proprietorship

Line of Business :	Wholesale / Retail of Garments & Sports Wear.

No. of Employee :	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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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 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: SS COMMERCIAL INC.

Address: 2575 Ganesh Tower, Manila, Philippines

Service Type: Normal

Telephone No.: 00 63 2 7761486

FINDINGS

We conducted research and investigation on SS COMMERCIAL INC. (Formerly Shiv Shakti Commercial Inc.) and showed the following, viz:

VERIFICATION WITH SECURITIES & EXCHANGE COMMISSION (SEC):   SS COMMERCIAL, INC.

(Formerly SHIV SHAKTI COMMERCIAL INC.)

Legal Entity       -     PRIVATE CORPORATION

REGISTRATION

a) Certificate No. : CS200520293

b) Date : February 28, 2008

c) Term : Fifty (50) years

d) Corporate Tax No. : 242-702-642-000

e) Telephone No. : (63) 2 834-6711

Address : 1) SEW # 5 Sanford Compound.

2) 2575 Espiritu Street, Vito Cruz, Manila

Telephone No.: (63) 2 523 6011

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

CAPITALIZATION (As of 2013)

Authorized Capital Stock - 2,000,000. – 20,000. Shares Common

Amount Subscribed & Fully Paid Up - 500,000.

Par value per share - 100.

PRIMARY PURPOSE: Wholesale / Retail of Garments & Sports wear.

STOCKHOLDERS / DIRECTORS / OFFICERS (As of 2013)

Name / Nationality	Position	Amount Paid Up
Rosana A. Mohnani, Pilipino	Chairperson/President	100,000.
Dinesh A. Mohnani, Pilipino	Treasurer	100,000.
Mukesh Mohnani, Pilipino	Corporate Secretary	100,000.
Murli Mohnani, Indian	Director	100,000.
Leena Mohnani, Indian	Director	100,000.
		500,000. vvvvvvv

BUSINESS ACTIVITY

The business was originally formed on March 10, 1988 as a Sole Proprietorship, located at 2575 Espiritu cor. Consuelo Streets, Singalong, Brgy. 760, Zone 082, Sta. Ana, Manila. Was engaged as wholesaler, retailer & importer of electronic items, house ware items such as, kitchen wares, glass & plastic wares & stainless products. It has acquired license to import frozen meat products from US, Canada & Germany. Household appliances, electronics (Nokina brand), corporate giveaways, souvenirs on wholesale/retail basis, sporting goods (Voit, Bollinger, Nixon brands) & foods (biscuits, cooking oil, chocolate & related products), stainless steel products (555 & Bregner brands).

Address: 1) 2575 Espiritu cor. Consuelo Streets, Singalong, Brgy. 760, Zone 082, Sta. Ana, Manila.

2) 2575 Ganesh Tower, Espiritu St., Singalong, Manila City.

Telephone Nos. – 0917 841 7587 / (63) 02 523 6881 / 523 1984

Fax No. - (63) 02 3030651

Email: sscom@pworld.net.ph

Website: ss commercial.com

FINANCIAL CONDITION

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

Balance Sheet

ASSETS
	2013	2012	2011
Current Asset
Cash & Cash Equivalent	2,195,750.	1,899,335.	1,589,450.
Trade Receivable	4,005,298.	4,441,602.	3,077,656.
Inventories	9,634,602.	7,596,136.	5,613,252.
Other Current Asset	80,230.	86,519.	81.537.
Total Current Assets	15,915,880.	14,023,592.	10,361,895.

Non- Current Asset
Property & Equipment, net	808,297.	892,499.	976,701.
Other Non Current Assets	85,900.	85,900.	85,900.
Total Non Current Assets	894,197.	978,399.	1,062,601.
Total Assets	16,810,077. vvvvvvvvvvvv	15,001,991. vvvvvvvvvvvv	11,424,496. Vvvvvvvvvvvv
LIABILITIES AND STOCKHOLDER’S EQUITY
Current Liabilities
Trade Payable	9,690,768.	9,450,356.	6,366.602.
Income Tax Payable	87,060.	125,129.	92,300.
Other Current Liabilities	56,486.	57,060.	100,144.
Total Current Liabilities	9,834,314.	9,632,545.	6,559,046.

Non-Current Liabilities
Advances from Stockholders	2,500,000.	2,500,000.	2,500,000.
Total Non Current Liabilities	2,500,000.	2,500,000.	2,500,000.
Total Liabilities	12,334,314.	12,132,545.	9,059,046.

Stockholder’s Equity
Authorize Capital Stock – 2,000,000	4,475,763.	2,869,446.	2,365,450.
Total Stockholder’s Equity	4,475,763.	2,869,446.	2,365,450.
Total Liabilities & Equity	16,810,077. vvvvvvvvvvvv	15,001,991. vvvvvvvvvvvv	11,424,496. vvvvvvvvvvvvv

Income Statement

Sales	29,609,272.	36,322,618.	34,821,790.
Gross Profit	9,091,474.	9,594,705.	9,980,174.
Less: Operating Expenses
Distribution Cost	( 3,644,369.)	( 4,747,075.)	( 5,138,391.)
Administrative Expense	( 4,580,938.)	( 4,127,636.)	( 4,155,533.)
Net Profit before Income tax	866,167.	719,994.	686,250.
NET INCOME	806,317. vvvvvvvvvvvvv	503,996. vvvvvvvvvvvvv	480,375. vvvvvvvvvvvvvv

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.45
UK Pound	1	Rs.95.99
Euro	1	Rs.75.28

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	ANK

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